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) 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:

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:

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:

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 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:

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 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:

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 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:

The new full-strength Board brings a wealth of skills and expertise, making them well positioned to oversee the turnaround of the airline. These skills include: finance, risk management, treasury management, investment management, project management, business strategy, marketing and business management, legal, banking, stakeholder management, communication and social development.

Ms Duduzile Myeni was appointed by Cabinet as Chairperson. The Minister of Finance has stated publicly that the appointment of Ms Myeni, for a period of only one year, is aimed at ensuring continuity at the SAA.

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:

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:

(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:

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:

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:

(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 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.

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 Minister has approved to allocate funding over a period of three years to the amount of R150 million in order to address illegal connections in the Nelson Mandela Bay Municipality (NMBM) as a pilot programme. The allocation, like all electrification allocations, is only made available to the implementing agent (municipality or Eskom) upon approving of a formal business plan regarding the technical and financial details of a project/programme.

Reply:

(a) 44 142 complaints have been received and 38 357 were since resolved and blocked not to allow any further deductions from recurring. Five

thousand seven hundred and eighty five (5 785) of these cases have been refunded to the beneficiaries.

(b) The nature of the complaints is airtime, electricity and loan deductions.

(c) (i) and (ii) SASSA developed and implemented a Dispute Resolution Mechanism as a recourse system to deal with the rising number of deductions against social grants. The Dispute Resolution Mechanism has a built-in Communication Strategy that focuses on beneficiary education and awareness. In addition to this system, a Ministerial Task Team was established to play a monitoring, oversight and also propose interventions to deal with this challenge. This system has since reflected and improvement in dealing with this.

Reply:

(1) (a) In April 2016, the Department of Public Service and Administration (DPSA) undertook a study visit to Canada. The purpose of the visit was to benchmark against existing institutional mechanisms in Canada, to gather information that will assist in establishing the Public Administration

Ethics, Integrity and Disciplinary Technical Assistance Unit (EIDTAU), focusing on specific lessons and experiences with regards to structures, regulations, procedures, tools and systems. The DPSA interacted with a number of institutions operating at three levels of government. One of the institutions that the DPSA engaged with is the Treasury Board Secretariat (TBS), which is similar to the DPSA with regards to mandate.

 (i) TBS is responsible for accountability and ethics, HR and administrative management. financial, comptrollership, approving regulations and translating the policies and programmes approved by Cabinet into reality and by providing departments with the resources and the administrative support they need to do their work. TBS implements a number of instruments for promoting ethics in the Public Service at Federal level such as:

• Public Servants Disclosure Protection Act (PSDPA) which protects public servants who disclose acts of wrongdoing. This piece of legislation enables departments to implement an internal mechanism for reporting allegations of unethical conduct or corruption. However, the Act does not prevent employees from reporting to the Office of the Public Sector Integrity Commissioner of Canada, which is an agency of Parliament similar to the Public Protector of South Africa.

• Values and Ethics Code for the Public Sector- general code of conduct for all Federal public service employees. The Code constitutes part of the terms and conditions of employment for all Federal employees. Failure to adhere can lead to disciplinary action up to and including termination of employment; and

• Policy on conflict of Interest and Post-Employment. This Policy prescribes restrictions that public servants in designated positions should adhere to in order to avoid actual, potential or perceived conflict of interest, when they leave the public service.

In June 2013, the DPSA also undertook a study visit to the United Republic of Tanzania. The purpose of the study visit was to achieve the following outcomes:

• Clear conceptualization of the institutional model that can best address corruption challenges in the public administration of South Africa;

• Delineation of the mandate and functions of such a model;

• In-depth understanding of the resource allocation implications and

• The design of an organizational structure that matches the functions and mandate.

The DPSA delegation interacted with the Prevention and Combating of Corruption Bureau (PCCB) and the Ethics Secretariat. The PCCB is a constitutional body that investigates and prosecute acts of corruption in both public and private sector. It is an independent anti-corruption agency as contemplated in Articles 6 and 36 of the United Nations Convention against Corruption (UNCAC). The Ethics Secretariat receives and verifies declarations of assets and liabilities which are required to be made by public leaders under the Constitution of the United Republic of Tanzania. Moreover, this constitutional body is empowered to initiate and conduct any investigation in respect of breach of ethics prescribed under the Public Leadership Code of Ethics Act. No. 13 of 1995.

(ii) The following is my position regarding each of the initiatives implemented by TBS of Canada and the Government of the United Republic of Tanzania.

Initiative	My position
Public Servants Disclosure Protection Act (PSDPA) (Canada)	The internal reporting mechanism implemented by departments is an excellent practice. This is an idea that we are exploring as we proceed with the establishment of the EIDTAU.
Values and Ethics Code for the Public Sector (Canada)	This Code is similar to our Code of Conduct for Public Servants, which we have implemented since 1997. We have recently refined the Code as part of the new amendments we made in the Public Service Regulations, 2016.
Policy on conflict of Interest and Post- Employment (Canada)	We studied this practice since 2007. While this practice is desirable, we believe that the enforcement will pose more challenges.
Prevention and Combating of Corruption Bureau (PCCB) (Tanzania	In establishing the EIDTAU, we are cognizant that South Africa has adopted a multi-agency system to fighting corruption, which is viewed by the National Development Plan as the appropriate model for the country. Although the work of PCCB is commendable, we believe its approach is similar to the DPCI.
The Ethics Secretariat (Tanzania)	A central system for disclosure of financial interests of all public officials (elected and appointed) is a very unique. However, this model cannot be replicated in South Africa. We already have a decentralised system that separates categories of public officials. In the Public Service, the Public Service Commission verifies all financial disclosures of senior officials.

(2) In terms of the Public Administration Management Act, 2015 (PAMA), all public servants will be required to disclose financial interests of spouses. This requirement will come in to effect once I have issued the Regulations to support the implementation of PAMA.

(3) We have been implementing the electronic disclosure system since 2015 and we have seen a remarkable improvement in terms of compliance rate. Below is an overview electronic disclosures by SMS members as at 30 April 2016.

Institution	No. of SMS	No. submitted	%
National Departments	4988	4532	91%
National Components	684	660	96%
Eastern Cape	580	459	79%
Free State	379	330	87%
Gauteng	811	803	99%
KZN	605	605	100%
Limpopo	484	479	99%
Mpumalanga	262	230	88%
Northern Cape	262	262	100%
North West	250	199	80%
Western Cape	384	384	100%
Total	9689	8943	92%

We have strengthened the requirement to disclose electronically in the PSR, 2016. Employees will disclose manually only under exceptional circumstances, which will have to be authorised by respective heads of departments. The Public Service Commission retains the responsibility to conduct verification of financial disclosures and manage any conflicts of interest for all members of Senior Management Service

Reply:

In its adoption of the new approach towards Public Participation Programmes on 24 March 2010, Cabinet resolved that Ministers and Deputy Ministers are required to commit to at least ten (10) public engagements per year. These would include repeats and follow up visits and will be informed by their departmental outcomes and targets. The main focus of the public participation programmes was on rural areas, townships and villages.

Minister Adv. Ngoako Ramatlhodi

01 June 2016.

Engagement with young unemployed graduates in the Eastern Cape Province was held in Mdantsane Sisa Dukashe Stadium. The Minister’s engagement was to assist graduates into candidacy programme as the launch of Youth Month.

09 June 2016

In partnership with the NYDA, SETA’s, Department of labour and Private Sector, the Minister was involved in taking government services to young people in Gauteng Province (Fochville Popo Molefe Stadium). Issues raised by young people included inter alia youth unemployment which leads to drug abuse and addiction, access to higher learning and internet connection.

21 July 2016

Engagement with Learners in Wedela where the Minister donated a mini library at Thabo Merafong Home Based Care Center.

Deputy Minister Ayanda Dlodlo

23 April 2016

The Imbizo was held at Civic Centre Hall, Riversdale, Hessequa Local Municipality

Report back Imbizo on issues raised by youth engagement on 20 June 2015.

The report included the number of 807 unemployed young people who were registered by the Department of Labour and 606 who received Employment Counseling; the increased Home Affairs services per month i.e. twice a month in Albertinia, Stilbaai and Heidelberg, youth entrepreneurial development programme Small Enterprise Development Agency (SEDA) trained 150 young people in areas of marketing, production and human resources management; Southern Cape College TVET College, PetroSA and Transnet provided skill Youth Career Expo in the municipality.

10 July 2016

Oudtshoorn Youth Outreach Programme was held at New Bridgeton Stadium, Oudtshoorn.

Shared information on education and economic development opportunities, encouraged them to talk about issues they are confronted with and what support they need to improve their lives, encouraged youth to make the Public Service their career of choice. This was in partnership with the South Cape TVET College, Department of Home Affairs, SASSA, Department of Health, South African National Defence Force and Local Municipality. These partners provided information on available youth development opportunities.

20 June 2016

Open Government Partnership youth dialogue was held at UNISA, Pretoria.

The purpose of the youth dialogue was to discuss how land reform and expropriation relates to youth unemployment and economic empowerment. Issues covered included necessary skills needed, access to information on land reform, youth involvement in national discourse, establishment of Commission of Enquiry on the land that was taken from black people.

30 June 2016

Open Government Partnership youth dialogue on Land Reform, Youth Unemployment and Economic Empowerment in Nelspruit, Mpumalanga.

The purpose of the youth dialogue was to solicit the opinions of young people on the subject of land and agrarian reform. Furthermore the dialogue strived to establish solutions for the challenges facing the youth of South Africa namely, unemployment and economic disempowerment. Issues that came from the discussions include lack of knowledge and awareness of land reform legislation and initiatives, lack of employment opportunities available, need for funding policy reform and greater monitoring and control of funds within development agencies.

Reply:

(1) (a) (i) Legislative Policy Requirements Management

(ii) Information and Business Systems and Banking Services

(iii) Benefits and Local Economic Development

(iv) Change and Stakeholder Management

(v) Human Resource Management

(b) (i) The Legislative Policy Requirements Management is to provide comprehensive legal advice to SASSA and other in relation to the future Work Stream payment system focusing on legislative management policy requirements, contract development, design and

of the new system.

(ii) The Information and Business Systems and Banking Services is to facilitate for the insourcing of an ICT platform that will integrate the application of payment management system for social assistance and related social security benefits.

(iii) The Benefits and Local Economic Development is to identify the benefits and economic develop initiatives to be implemented with the delivery of the comprehensive security system.

(iv) The Change and Stakeholder Management is to provide guidance to the change management and stakeholder engagement.

(v) The Facilitate the development of integrated process that will support the new proposed functions to be institutionalized within SASSA.

(c) (i) and (ii) No staff member has been employed.

 

(2) (a) (i) and (ii) None

(b) Not applicable

(c) Not applicable

 

Reply:

The Department plans to present a Bill (draft legislation framework) to Cabinet to solicit gazetting approval for 60 days public consultations during 2016/17 financial year. Thereafter, inputs from the public consultations will be consolidated and a revised Bill will be resubmitted to Cabinet for approval by end of September 2017. Following the Cabinet approval, the Bill is anticipated to be tabled in Parliament by end of 2017/18 financial year. Upon promulgation of the Bill into a legislation, the Transport Economic Regulator establishment will commence.