Questions and Replies

Reply:

The IDC posted a profit of R 223 million for the year ended 31 March 2016 compared to a profit of R1, 65 billion for the year ended 31 March 2015. The main contributor to the reduced profits for the year was increased levels of impairments (an increase of R 1, 6 billion) caused by difficult operating conditions including the impact of the drought.

The CEO of the IDC provided details of the impact at the public release of the IDC’s financial results on 30 August 2016 and he noted that these operating conditions mainly impacted the IDC’s clients in the manufacturing, mining and agricultural sectors. A number of IDC clients were affected by market conditions and requested restructuring of their facilities and / or assistance with drought relief funding. The impairment levels reflect the IDC commitment to play a counter-cyclical role in the economy as well as supporting high risk sectors and business unattractive to commercial financiers.

A considerable effort has gone towards implementing various impairment interventions which are expected to reduce the impairment levels over the medium to long-term.

-END-

Reply:

(1)(a-b) On 10 September 2013 the 10th SA-UK Bilateral Forum was held in Cape Town. At this meeting the two parties agreed that the United Kingdom would send a UK experts group to access South Africa’s passport and border security processes. The honourable Minister of International Relations and Cooperation, Ms Maite Nkoana-Mashabane co-chaired the meeting with Britain’s then Foreign Secretary, Mr William Hague. This meeting was followed up by eight Senior Officials meetings, three of which took place in 2013, two in 2015 and three in 2016.

During the 2013 meetings the UK authorities informed the South African counterparts of its intention to review their visa policy towards South Africa. It was agreed that a road map be developed for the lifting of visa restrictions for South African diplomatic and official passport holders. This was followed by a UK experts team assessment of South African passport issuance and border management processes, which assessment recognised the improvements made by South Africa.

The 2015 meetings focussed on the United Kingdom seeking response from South Africa on their decision to lift visa restrictions for South African diplomatic passport holders. South Africa’s response was that we would only consider reciprocity if the United Kingdom lifted visa restrictions for all South African passport holders.

The 2016 meetings concerned the continuing requests for the lifting of visa restrictions for all South African passport holders. The UK counterparts are now awaiting the new government’s visa policy where after they will inform the South African authorities accordingly.

(2)(a-b) All efforts made to engage the British government to understand the rationale behind its decision or to at least reconsider by exempting South African diplomatic and official passport holders were in vain.

Reply:

No.

Section 103 of the Constitution of the Republic of South Africa, 1996 (“the Constitution”), read with Schedule 1A, provides for the boundaries of the Provinces.

The movement of the Matatiele Local Municipality from the Eastern Cape Province to the KwaZulu-Natal Province, or the movement of any municipality from one province to another, therefore requires an amendment to the Constitution.

As the Minister of Justice and Correctional Services is the custodian of the Constitution, it is that Minister who will table legislation in this regard, should such a decision be taken to move the Matatiele Local Municipality to the KwaZulu-Natal Province.

Reply:

The response below was provided by the province:

1. (a) There has been no investigation instituted against the former Municipal Manager of Emfuleni Local Municipality, Mr Sam Shabalala. Mr Shabalala voluntarily resigned from the municipality.

   (b) No investigation has been conducted with regard to the financial affairs of the Emfuleni Local Municipality.

2. There has been no disciplinary or criminal charges laid against any individual in relation to the investigation.

Reply:

The IDC will be subscribing for 35% shareholding in the project and has committed a funding package totalling R1,5 billion for this purpose. This funding package is made up of subscription of ordinary shares, shareholder’s loan and shareholder guarantees proportional to its envisaged 35% shareholding in the project company. The rest of the funding for the project costs will be invested by the BAIC Group, local and international banks.

-END-

Reply:

On assumption of this responsibility after the 2014 National elections I have developed a programme to engage society through the sectoral engagement on matters that relate to nation building and social cohesion. In every province there are Social Cohesion Advocates who continuously engage various sectors of society on these matters. Education is amongst the sectors of society that are engaged.

Amongst others in discharging this programme, partner departments in outcome 14 like Basic Education and Justice and Constitutional Development are on board.

Reply:

As I have indicated in my response to question 1760 that I have developed a programme to engage society through the sectoral engagement on matters that relate to nation building and social cohesion. In every province there are Social Cohesion Advocates who continuously engage various sectors of society on these matters.

These engagements will culminate in a national convention that will developed a social compact to build social cohesion and strengthen efforts against racism.

Reply:

I have drawn to the IDC’s attention the need to fast-track a turnaround strategy for Scaw Metals and Foskor and requested the IDC Board to regularly review progress with such turnaround strategy. Both companies are in significant sectors of the economy, namely in the metal and fertiliser value-chains and their products are used in downstream industries.

The Chief Executive Officer of the IDC advises the following in respect of the two investments:

(a) Scaw Metals is in the process of finalizing the restructuring of the group, which will result in the introduction of Strategic Equity Partners (SEPs) in some or all of the four steel operations. The SEP’s are expected to add the necessary operational expertise to turn around the businesses. This process is underway and the decision will be made towards the end of the current financial year after evaluating all the proposals. The interested SEP’s have similar businesses and their core competencies are aligned to that of Scaw businesses.

(b) Foskor’s financial performance is dependent on market prices for its products, which are largely commodities. Global prices have softened since their peak in 2008-2010 as a result of supply and demand dynamics. Although this is substantially outside Foskor’s control, there are opportunities to upgrade equipment and improve production efficiencies to place it on a firmer footing. Foskor has therefore developed an investment and performance improvement plan, which also entails IDC finance. Although this will result in improved competitiveness, the timing to achieve sustainable levels of profitability will remain dependent on the speed of recovery of market prices.

-END-

Reply:

The recommended personnel strength for the Tembisa Police Station Detective Service according to the Fixed Establishment is 93. The actual personnel strength of the Detective Service is 84.

The following posts were advertised and filled:

• 1 x Sub Section Commander: Detective Service (salary level 10)
• 1 x Salary level 8

Two experienced re-enlisted members were placed at the Detective Service.

Gauteng province is currently busy with a project where police stations with a surplus of members within the Visible Policing environment are instructed to identify and redeploy members to their Detective Service environment where there is a shortage of members. Tembisa Police Station has a surplus of 7 personnel within the Visible Policing environment and should therefore identify and redeploy 7 members to their Detective Service environment where there is currently a shortage of members.

Police stations are also instructed to redeploy experienced Visible Policing members to the Detective Service environment when they receive their new entry level constable allocation. Tembisa Police Station received 1 new entry level constable.

Reply:

The recommended personnel strength for the Sebenza Police Station Detective Service according to the Fixed Establishment is 17. The actual personnel strength of the Detective Service is 19. The Sebenza Police Station Detective Service is over capacitated.

Reply:

Seven members attended the detective course. Only four members still have to attend the course. These members will be sent as soon as there are courses available and members are called up to attend.

Reply:

Yes. A meeting was held with the Department of Justice and a possible solution is that members should be briefed during parades on the correct search and arrest procedures. The Forensic Science Laboratory is working on backlogs to improve the turnaround time. Arrangements will be made with members specialising in drug identification to workshop other members at police stations in recognising habit forming substances.

Reply:

On 31 August 2016, the South African Police Service Efficiency Index System that is used to manage all physical resources, reflected as follows for the Norkem Park Police Station:

Current detective personnel strength: 35

Current detective vehicle strength: 16

Ideal number of vehicles for 35 detectives: 18

Current shortage of vehicles: -2

New vehicles purchased for the Norkem Park Police Station will be issued by 31 January 2017.

Reply:

(a) Performance bonuses were paid for the last time in the South African Police Service during the 2009/2010 financial year in respect of the 2008/2009 evaluation period. Safety and Security Sectoral Bargaining Council (SSSBC) Agreement 2 of 2011 discontinued the payment of performance bonuses. The following number of senior management service members received performance bonuses in the financial years:

1. 2009/10 financial year: 137 members.
2. 2010/11 financial year: No member.
3. 2011/12 financial year: No member.
4. 2012/13 financial year: No member.
5. 2013/14 financial year: No member.
6. 2014/15 financial year: No member.
7. 2015/16 financial year: No member.

(b) The total amount paid in performance bonuses in the specified financial years was:

1. 2009/10 financial year: R4 775 000,00
2. 2010/11 financial year: Nil.
3. 2011/12 financial year: Nil.
4. 2012/13 financial year: Nil.
5. 2013/14 financial year: Nil.
6. 2014/15 financial year: Nil.
7. 2015/16 financial year: Nil.

Reply:

Yes. In most cases suspects are arrested with small quantities of dagga and those cases are not placed on the court roll. Intensive operations are then conducted to trace the dealers and sellers. This includes the involvement of the Community Policing Forums to provide information on places where dagga is sold. During the meetings with Department of Justice it was envisaged that suspects be convicted even with smaller amounts of dagga.

Reply:

Yes. Reports on cases referred for diversion on the South African National Institute for Crime Prevention and the Reintegration of Offenders (NICRO) are long outstanding. Arrangements have been made with the Senior Public Prosecutor to communicate with the Department of Social Development to speed up the long outstanding diversion programme reports.

Reply:

(1)(a) The investigation in the case docket Benoni CAS 459/12/2015(Theft of a motor vehicle) was concluded. The stolen vehicle was recovered on 12 August 2016 and on 26 August 2016 the case docket was closed off as undetected and filed at the Benoni Police Station. No suspect(s) have yet been identified or arrested.

(1)(b) A case docket of Theft of motor vehicle was registered and investigated.

(1)(c) (i) and (ii)- The details of investigating officers cannot be disclosed to allow investigations to be conducted without fear or favour.

(2) Yes, feedback on the progress with the investigation was provided to the complainant on 6 February 2016 and on 12 February 2016.

Reply:

The recommended personnel strength for the Bedfordview Police Station Detective Service according to the Fixed Establishment is 36. The actual personnel strength of the Detective Service is 35. One experienced re-enlisted member was placed at the Detective Service.

Gauteng province is currently busy with a project where police stations with a surplus of members within the Visible Policing environment are instructed to identify and redeploy members to their Detective Service environment where there is a shortage of members. Bedfordview Police Station has a surplus of one member within the Visible Policing environment and should therefore identify and redeploy one member to their Detective Service environment where there is a shortage of members.

Police stations are also instructed to redeploy experienced Visible Policing members to the Detective Service environment when they receive their new entry level constable allocation.

Reply:

Question 1 (a) (i)

As at 31 August 2016 the number of outstanding appeals are 957.

Question 1 (a) (ii)

At 1 April 2016, the number of outstanding appeals were 943.

Question 1 (b)

The following number of appeals were final ised in the months as indicated

April 2016 - 4 Appeals

(i) Appeals granted - 1

(ii) Appeals dismissed - 3

May 2016 - 6 Appeals

(i) Appeals Granted - 4

(ii) Appeals Dismissed – 2

June 2016 - 31 Appeals

(i) Appeals granted - 27

(ii) Appeals dismissed - 4

July 2016 - 20 Appeals

(i) Appeals granted - 10

(ii) Appeals dismissed – 10

August 2016 - 10 Appeals

(i) Appeals granted - 4

(ii) Appeals dismissed – 6

Question 2(a)

Considering the timeframes provided for in Regulation 74, it takes approximately 120 days to process and finalise internal appeals in the prescribed manner. The attainment of this period is dependent on the number of appeals received during a given period as well as the complexity of such appeals and capacity constraints. The 2010 Constitutional Court judgment in Bengwenyama held that internal remedies must be exhausted before judicial review proceedings may be instituted. This led to the lodgement of significantly more appeals than before as more applicants were required to exercise internal remedies.

Question 2(b)

Action Plans:

• There is continuous liaison with internal and external parties involved to expedite conclusion of the Regulation 74 process which appears to be yielding positive results.
• From time to time, the Office of the State Attorney is requested to assist with the finalisation of certain appeals.

• While implementing the above measures, historic appeals are prioritised.

• Draft regulations to significantly streamline the appeal process has already been formulated and is to be promulgated soon.

Approved/not approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-.. . .... ....... . .. ./. .. ......... ..... ./2016

Reply:

The recommended personnel strength for the Primrose Police Station Detective Service according to the Fixed Establishment is 35. The actual personnel strength of the Detective Service is 35. One experienced re-enlisted member was placed at the Detective Service. The Primrose Police Station Detective Service is fully capacitated.

Reply:

With reference to the Norkem Park Police Station, the call up instruction for the detective course is awaited from the Gauteng Provincial Human Resource Development and identified members will be prioritised.

Reply:

On 31 August 2016, the South African Police Service Efficiency Index System that is used to manage all physical resources, reflected as follows for the Tembisa Police Station:

Current detective personnel strength: 71

Current detective vehicle strength: 26

Ideal number of vehicles for 71 detectives: 36

Current shortage of vehicles: -10

New vehicles purchased for the Tembisa Police Station will be issued by 31 January 2017.

Reply:

Yes, by increasing crime prevention operations and enhancing proper investigation of dockets by investigation officers. The drug conviction rate has improved for this financial year, due to the high density crime prevention operations and proper investigation of dockets.

Reply:

The recommended personnel strength for the Tembisa South Police Station Detective Service according to the Fixed Establishment is 36. The actual personnel strength of the Detective Service is currently at 36.

The following posts were advertised and filled:

• 1 x Sub Section Commander: Detective Service (salary level 10)
• 1 x Salary level 8

The Tembisa South Police Station Detective Service is fully capacitated.

Reply:

The recommended personnel strength for the Norkem Park Police Station Detective Service according to the Fixed Establishment is 38. The actual personnel strength of the Detective Service is 37.

Gauteng province is currently busy with a project where police stations with a surplus of members within the Visible Policing environment are instructed to identify and redeploy members to their Detective Service environment where there is a shortage of members.

Police stations are also instructed to redeploy experienced Visible Policing members to the Detective Service environment when they receive their new entry level constable allocation.

Signed LIEUTENANT GENERAL

PROVINCIAL COMMISSIONER: GAUTENG

DS DE LANGE

Date: 13 September 2016

Reply to question 1853 recommended

Original signed LIEUTENANT GENERAL

ACTING NATIONAL COMMISSIONER: SOUTH AFRICAN POLICE SERVICE

JK PHAHLANE

Date: 14 September 2016

Reply to question 1853 approved/not approved

MINISTER OF POLICE

NPT NHLEKO, MP

Date:

Reply:

The recommended personnel strength for the Edenvale Police Station Detective Service according to the Fixed Establishment is 37. The actual personnel strength of the Detective Service is 36.

Gauteng province is currently busy with a project where police stations with a surplus of members within the Visible Policing environment are instructed to identify and redeploy members to their Detective Service environment where there is a shortage of members. Edenvale Police Station has a surplus of 1 member within the Visible Policing environment and should therefore identify and redeploy 1 member to their Detective Service environment where there is a shortage of members.

Police stations are also instructed to redeploy experienced Visible Policing members to the Detective Service environment when they receive their new entry level constable allocation.

Reply:

Nineteen members have attended the detective course, including officers.

Twelve members have not yet attended the detective course.

There are no members currently attending the detective course. Members will be sent as soon as there are courses available and members are called up to attend the course.

Reply:

The case docket Piet Retief CAS 208/08/2016 relates to a charge of Culpable Homicide (motor vehicle collision). The motor vehicle collision occurred on 22 August 2016 on the N2 road between Piet Retief and Ermelo. A marked police vehicle of SAPS Piet Retief and a private motor vehicle were involved in a head-on collision in which two police officers and a member of the public, who was a complainant in a criminal matter, sustained serious injuries. The civilian who was a passenger in the police vehicle died in hospital on 23 August 2016 due to injuries sustained during the collision. The two passengers in the private motor vehicle also sustained serious injuries during the incident. Several witness statements must still be obtained and the investigation has not yet been concluded. The allegation that the security convoy detail who was escorting the Executive Mayor of the Mkhondo Local Municipality caused the collision is still under investigation and has not yet been substantiated by means of prima facie evidence.

Reply:

(a) The case docket, Lothair CAS 31/12/2015 (Culpable Homicide) was received back on 29 January 2016 at Lothair Detective Service for further investigation. The investigation was then conducted and concluded and on 12 March 2016 the case docket was referred to the Senior Public Prosecutor for a decision on prosecution. On 21 July 2016 the case docket was received back from the Senior Public Prosecutor with certain requests. These requests were concluded and on 22 July 2016 the case docket was sent back to the Senior Public Prosecutor, who then requested a further report from a forensic expert. On 26 August 2016 the report of the forensic expert was received and the case docket handed back to the Senior Public Prosecutor for a decision on prosecution. This decision has not been made and the case docket is currently still with the Senior Public Prosecutor.

(b) The investigation has been concluded and the case docket is with the Senior Public Prosecutor for a decision on prosecution.

(c) This part of the question should be responded to by the Independent Police Investigative Directorate (IPID).

Reply:

On 31 August 2016, the South African Police Service Efficiency Index System that is used to manage all physical resources, reflected as follows for the Kempton Park Police Station:

Current detective personnel strength: 63

Current detective vehicle strength: 30

Ideal number of vehicles for 63 detectives: 32

Current shortage of vehicles: -2

New vehicles purchased will be issued to the Kempton Park Police Station by 31 January 2017.

Reply:

On 31 August 2016, the South African Police Service Efficiency Index System that is used to manage all physical resources, reflected as follows for the Sebenza Police Station:

Current detective personnel strength: 19

Current detective vehicle strength: 6

Ideal number of vehicles for 19 detectives: 10

Current shortage of vehicles: -4

New vehicles purchased for the Sebenza Police Station will be issued by 31 January 2017.

Reply:

There are currently two members attending the detective course. The remaining nine members must still attend the detective course.

The stations are controlled via the intake of facilitators of the course. The intake usually accommodates one or two members at a time and a course lasts for three months.

Reply:

I have been advised by the Department as follows:-

(a)The department has developed a draft language policy which is currently being consulted within the department. The draft policy will be approved by the Department’s Executive Committee for gazetting after 30 September 2016.

(b) The Department does not have a language unit in existence. As this is a new Department, a review process of the Department’s organizational structure in line with the new mandate is underway. Once the review process is complete and a new structure approved, the Department will fill all relevant posts.

Reply:

One member was transferred back to Visible Policing at his own request.

One member successfully completed the detective course.

One member is currently attending the detective course.

The remaining three members will be trained as soon as courses and seats are available.

Reply:

On 31 August 2016, the South African Police Service Efficiency Index System that is used to manage all physical resources, reflected as follows for the Edenvale Police Station:

Current detective personnel strength: 36

Current detective vehicle strength: 17

Ideal number of vehicles for 36 detectives: 18

Current shortage of vehicles: -1

New vehicles purchased for the Edenvale Police Station will be issued by 31 January 2017.

Reply:

With reference to the Tembisa Police Station, the call up instruction for the detective course is awaited from Gauteng Provincial Human Resource Development and identified members will be prioritised.

Reply:

On 31 August 2016, the South African Police Station Efficiency Index System that is used to manage all physical resources, reflected as follows for the Bedfordview Police Station:

Current detective personnel strength: 31

Current detective vehicle strength: 17

Ideal number of vehicles for 31 detectives: 16

There is currently no shortage of vehicles at the Bedfordview Police Station Detective Service.

Reply:

The Presidency was informed by the Public Protector that she has received complaints and requests that she should investigate this matter or related allegations.  The Public Protector’s investigation is still continuing.

Reply:

This refers to the above request as follows:

1. (a) Details of tenders issued/awarded in the past three financial years and (b) value of each specified tender.

Table 1 below illustrate details and values of tenders issued and awarded in the 2015/2016 financial year:

Table 1 below illustrate details and values of tenders issued and awarded in the 2015/2016 financial year:

Table 2 below illustrate details and values of tenders issued and awarded in the 2014/2015 financial year:

Table 3 below illustrate details of tenders issued and awarded in the 2013/2014 financial year.

2) 

• No tender was awarded in the past three financial year without following proper tender processes. The ATNS SCM Policy provides suppliers with the opportunity to compete for business in an open and transparent manner within the confines of the law.

       (a) No value of contract awarded without following proper tender process

       (b) No supplier was awarded a tender without following proper tender processes.

      (c) All contract followed the proper tender processes

Reply:

Air Traffic and Navigation Services SOC Limited (ATNS)

(a) Air Traffic and Navigation Services (ATNS) started to implement Enterprise Development (ED) initiatives in 2014 and spent about R11million for the financial year 2014/2015 and 2015/2016. The budget is in line with the Broad Based Black Economic Empowerment legislation which requires that 3% of the Net Profit After Tax (NPA) should be channelled towards Enterprise Development.

(b) In the financial year 2014/2015, ATNS supported Emerging Micro Enterprises (EMEs) where they were requested to register their business requirements through the ATNS website. ATNS furnished these suppliers with resources that they needed to be able to run their businesses; this enabled the respective suppliers to focus on their core businesses. In the financial year 2015/2016, ATNS focussed its Enterprise Development (ED) approach towards a more sustainable programme where the ED budget was channelled towards creating an Incubation Programme for twenty (20) Engineering Suppliers. The programme is intended to identify gaps and close them through relevant interventions.

(c) The programme is monitored by assessing how many suppliers have graduated from Enterprise Development to Supplier Development for both programmes.

(d) This programme yielded good outcomes in that the intention was that the beneficiaries should participate as active Suppliers to ATNS and some are already offering services to ATNS which means that they have already graduated from Enterprise Development to Supplier Development. This also helps in monitoring the number of those that are in the Supplier Development pool.

 

Reply:

a) Yes, SANRAL adheres to the applicable legislative prescripts including that of the PPPFA. However, the honourable member may recall an instance reported in the Annual Report under the Auditor General’s report that in the opinion of the AG it was not. This was reported and discussed in the Portfolio Committee in October 2015. The honourable member may recall that the difference of opinion related to the interpretation of the phrase “lowest acceptable price”. We make use of this opportunity to once again clarify the matter. It is brought to the attention of the honourable member that neither the PPPFA nor its Regulations define the phrase “lowest acceptable price”. The Regulations define the terms “comparative price, “firm price” and “non-firm price”.

The PPPFA Act (No. 5 of 2000) requires SANRAL to award contracts to the tenderer with the “lowest acceptable tender”. It has been SANRAL’s experience that when awarding a tender at the lowest price (at face value), where the objective is to promote the development of SMMEs, they either underprice with unviable tenders to get the job or the main contractors exploit the sub-contractors by pushing for unrealistic pricing. Moreover, this opens up opportunities for collusive practices.

SANRAL therefore developed and introduced a statistical method to establish the lowest acceptable price for each RRM contract. The tenderer with the price closest to this computed price was considered for award after giving due merit to other evaluation criteria such as preference points, including the price offered. Upon establishing the “price”, all tenders were further evaluated in accordance with the applicable regulations. Thus maintaining the requirements of the PPPFA. This discouraged collusion among contractors and ensured the sustainability of SMMEs. This method was in use for over 11 years – the AG was aware of the rationale and method of award and there were no findings from the AG and/or complaints from the contractors.

In 2013, for the first time, the AG raised the finding that the statistical methodology was not compliant with the requirements of the PPPFA Act. This is notwithstanding that the AG could not show in terms of which clause of the Act the statistical method was non-compliant. The AG also noted that that the method was used to protect SMMEs and recommended that SANRAL apply for an exemption from this applicable section of the PPPFA from the Minister of Finance which SANRAL did.

SANRAL applied for an exemption in terms of section 3(c) of the PPPFA. The rationale for the request was explained. The exemption was not granted. SANRAL requested for a condonation of the irregular expenditure subsequently, which was also not granted. Consequently, the AG’s report has included a note on irregular expenditure in this regard and will be noted till 2016.

Of importance is for the honourable member to note that:

• SANRAL has stopped awarding contracts on this basis, and has reverted to awarding contracts to the lowest price at face value, after due consideration of all other evaluation criteria; and

• the above has been explained to the Minister of Transport and to the Portfolio Committee on Transport as recent as October 2015 and other stakeholders who queried this.

• The honourable member is referred to the Annual Reports: Report of the auditor-general to Parliament on SANRAL.

(b) Yes, we have. (i) & (ii) Please see above.

 

Reply:

I received an objection to the signing of the bill from the Progressive Professionals Forum. When I get petitioned not to sign a bill, I have to consider the merits of such objection focusing mainly on whether the interested parties raise valid constitutional issues.

It is not the first time that I have taken time to consider a bill for similar reasons. Currently, I have not signed the Expropriation Bill, the Private Security Industry Regulation Amendment Bill and the Protection of State Information Bill, because various parties petitioned me not to do so, citing concerns about their constitutionality. All these concerns are being looked into.

Reply:

The statement issued by the Minister of Mineral Resources, Mr Mosebenzi Zwane on 1 September 2016, on the work of the task team established to consider the implications of the decisions of certain banks and audit firms to close down the accounts and withdraw audit services from the company named Oakbay Investments, was issued in his personal capacity and not on behalf of the task team or Cabinet.

I reassured the public, the banking sector as well as domestic and international investors of Government’s unwavering commitment to the letter and spirit of the country’s Constitution as well as in the sound fiscal and economic fundamentals that underpin our economy.

I also informed parliament on 13 September that I was engaging Minister Zwane regarding his statement.

Reply:

Yes, All Ministers enter into Performance Agreements with the President.

(a) The Performance Management Framework for Ministers is the Medium Term Strategic Framework (MTSF) for 2014-2019, which is the first 5-year implementation plan of the National Development Plan (NDP) 2030. The performance targets and indicators are derived from the 14 Outcomes which government seeks to achieve.

These outcomes and targets constitute governments Programme of Action (POA), against which performance is tracked and reported at least on a quarterly basis. POA reports are publicly available on government’s websites.

(b) to (e) Cabinet closely monitors the implementation of the NDP 2030/MTSF 2014-2019 through POA Reports. These reports tabled before an Implementation Forum of a Cluster of Ministers collectively responsible for MTSF outcomes, and then submitted to Cabinet, where progress is noted, bottlenecks to implementation are discussed, and recommendations to address bottlenecks are considered and approved.

Reply:

(a) Yes, the Airports Company South Africa has applied the preference points and prescribed formula system in the awarding of all contracts within supply chain and procurement as expressed in section 2(1)(a) of the Preferential Procurement Policy Framework Act 5 of 2000 (“PPPFA”) and;

(b) Yes, the Airports Company South Africa has applied section 51(1)(a)(iii) of the Public Finance Management Act 1 of 1999 (“PFMA”), as amended.

   (i) A document has been attached illustrating the contracts that have been awarded from 01 April to 31 July 2016.

   (ii) The rand value of contracts is reported in the attached document referred to in (i) above.

Reply:

The Presidency did not employ the services of Mchunu Attorneys to provide any form of legal advice and/or advisory services in respect of the mentioned Public Protector’s Reports. The briefing of any counsel or giving of instructions to any private attorneys to act on behalf of the President is done through the office of the state attorney.   

Reply:

The Inter-Ministerial Committee chaired by Deputy President Ramaphosa remains responsible for overseeing the stabilisation and reform of state-owned entities. The IMC has proposed the establishment of a Presidential SOC Council. The proposal arises from the report of the Presidential SOE Review Council released in 2013, which called for the establishment of an SOE Council of Ministers.

The Council is aimed at ensuring improved oversight and coordination of state owned companies in the similar manner in which the Presidential Infrastructure Coordinating Commission coordinates infrastructure development across the three spheres of government or the IMC on Investment Promotion.

This IMC proposal is still to be discussed further in Cabinet. At this stage no finality has been reached and there are no terms of reference and no governance structure for the Council that has been finalised. Government welcomes any inputs from stakeholders on this important task of improving SOEs so that they assist in driving economic transformation and improve the lives of our people.

It should be noted that the work of coordinating structures is only to coordinate and supervise and ensure that all work together and not in isolation. It is not to directly run projects or takeover responsibilities of line function departments. The Department of Public Enterprises thus continues to perform its task as the shareholder to the state entities that report to it.

Reply:

(1)(a) PRASA operates within the legislated regulatory framework, all contracts for goods, services and works are acquired through proper Supply Chain Management processes. Procurement requirements are defined in the Procurement Plan with estimates costs for the provision of the required goods, services or works. This is in order to determine and stipulate the appropriate preference point system to be utilized in the evaluation and adjudication of the bids and to ensure that the prices paid are market related. Based on the procurement requirements, the relevant preference point system (80/20 or 90/10) to be utilized for the evaluation of the bid are specified in the bid documents

Contracts are acquired in any of the following competitive bid methods: Term contracts, Panel of service providers, and Public Private Partnership; whichever way procurement process is used, all acquisitions serve through conventional Bid Committees. In the preparation of the bid documents for an invitation it is determine if the required goods, service or works has been designated for local production and content in terms of Regulation 9 of the Preferential Procurement Regulations. This will entail the inclusion of a specific condition in the bid documents that only locally produced services, works or goods or locally manufactured goods with a stipulated minimum threshold for local production and content will be considered, subsequently it will have a direct impact on the evaluation of the bid.

All bids specifications are approved before issued to bidders. Bids received are evaluated as per the preference point system outlined in the approved specification. Depending on the functional criteria the weight and points are calculated using a prescribed formula system and ensure that evaluations of bids are fair and transparent. When we invite bids that will also be evaluated on the basis of functionality as a criterion, the following aspects in the bid documents are mandatory:

• Evaluation criteria for measuring functionality;
• Weight of each criterion;
• Applicable value; and
• Minimum qualifying score for functionality.

Once bids have been evaluated using the aforementioned criterion a contract is awarded to the bidder with the highest points as per the prescribed Preferential Procurement Policy Framework Act, Act 5 of 2000, and

(b) section 51 of the Public Finance Management Act, Act 1 of 1999 using basic Supply Chain Management principles.

(i) Number of Contracts awarded 01 April 2015 – 31 March 2016

Entity	BBBEE Level
	0	1	2	3	4	5	6	7	8	Total
Autopax-CPT	2	17	7	20	10	4	2	2	1	65
Autopax-HO	5	19	19	29	10		4			86
Autopax-JHB	5	15	13	32	16	4	5		2	92
Autopax-Pta	5	19	16	38	16	4	2	1	2	103
Intersite-HO	1	6	10	12	4	2	1			36
MetroRail-E-Cape	6	18	15	38	28	5	2	1	1	114
MetroRail-Gauteng	27	44	34	126	50	13	3	3	3	303
MetroRail-HO	1	13	13	45	11	5	1	2	1	92
MetroRail-KZN	5	40	34	64	43	11	14	3	3	217
MetroRail-W-Cape	5	48	47	62	43	5	3	1	1	215
Prasa Cres-Gauteng	9	37	14	99	37	1	1		1	199
Prasa Cres-Head Office	11	45	28	119	36	5	1	1	1	247
Prasa Cres-KZN	8	39	13	43	27	1		1	1	133
Prasa Cres-W.Cape	7	22	12	67	22	1			2	133
PRASA TECH HO	1	16	21	41	9	6	4	1	1	100
PRASA-HO	17	27	35	61	32	4	8	2	1	187
ShosMeyl-CPT	0	14	8	16	13	3	4	1	2	61
ShosMeyl-GP-South	5	24	6	47	11	6	1		2	102
ShosMeyl-HO	5	21	8	51	12	3	2		1	103
Total	125	484	353	1010	430	83	58	19	26	2589

(ii) Rand Value Contracts Awarded 01 April 2015 – 31 March 2016

Entity	Rand Value
	Total
Autopax-CPT	R 69 473 933.06
Autopax-HO	R 79 622 337.06
Autopax-JHB	R 170 091 612.00
Autopax-Pta	R 151 475 615.81
Intersite-HO	R 9 030 512.79
MetroRail-E-Cape	R 137 991 514.15
MetroRail-Gauteng	R 825 748 045.45
MetroRail-HO	R 630 731 669.79
MetroRail-KZN	R 319 624 039.75
MetroRail-W-Cape	R 357 997 773.69
Prasa Cres-Gauteng	R 264 009 908.79
Prasa Cres-Head Office	R 1 125 500 625.63
Prasa Cres-KZN	R 267 700 985.70
Prasa Cres-W.Cape	R 190 407 810.48
PRASA TECH HO	R 1 892 628 020.65
PRASA-HO	R 1 790 159 755.47
ShosMeyl-CPT	R 22 774 876.13
ShosMeyl-GP-South	R 97 763 179.60
ShosMeyl-HO	R 1 038 915 431.48
Total Spending	R 9 441 647 647.48

Reply:

At this stage no finality has been reached and there are no terms of reference or any other governance structure for the Council that has been finalised.

The Inter-Ministerial Committee chaired by Deputy President Ramaphosa remains responsible for overseeing the stabilisation and reform of state-owned entities.

The proposal to establish the Presidential SOCs Coordinating Council is aimed at assisting to ensure improved oversight and coordination of state owned companies.

Reply:

The appointment of members of the National Executive of Government is the prerogative of the President of the Republic. Ministers and Deputy Ministers are well aware of the fact that they serve at the pleasure of the sitting President of the Republic.

Having said that, I would caution against the spreading of rumours of this nature. The Department functions well and continues to meet its mandate under the leadership of Minister Davies.