Questions and Replies

Reply:

(1) (a) The current plan of the Department of Small Business Development (DSBD) regarding the Red Tape Reduction Programme is to revisit the piloted municipalities to assess progress made in relation to the following: complaints notification system, 30 payment system, building plan approval processes, business registration permits, by-laws and communication of small business information to SMMEs and Cooperatives. Specifically for Moses Kotane Local Municipality in North West, the turnaround times for payment to small businesses have been reduced to the required 30 days period.

(b) There is no record of unnecessary (i) policies, (ii) by-laws and (iii) regulations rescinded in the specific municipality. The total number of policies, by-laws and regulations that impede the development and promotion of small businesses will only be outlined upon the conclusion of the proposed study on regulatory protocols affecting small businesses to be conducted by DSBD during the 2016/17 financial year. However, in terms of Moses Kotane Local Municipality the by-laws are reviewed every two years.

(c) The current assessment did not consider the administration costs. However, the improvement on turnaround times as well as communication on compliance will reduce Red Tape in each of the identified municipalities ultimately reducing costs experienced by SMMEs.

2. Some of the examples that can be referred to regarding how the red tape has been reduced include: improvement on turnaround times regarding complains on service delivery from 48 to 24 hours.

Reply:

The World Economic Forum (WEF) meeting in Davos is a premier global marketing opportunity, bringing together Heads of State and Government and global business executives and owners to discuss the state of the global economy.

WEF traditionally provides an excellent opportunity for South Africa to market itself as an investment destination. The January 2016 meeting was important, given the depressed global economic climate. We met global captains of commerce and industry to brief them on the various interventions that we have undertaken to reignite growth and create jobs, especially the Nine Point Plan that I introduced during the 2015 State of the Nation Address, within the framework of the National Development Plan. The engagements went well as Team South Africa, both government and business, was able to send out a common message that South Africa is open for business.

I was accompanied by my wife Ms Bongekile Zuma as well as the Ministers of Finance, Planning, Monitoring and Evaluation, Energy, Trade and Industry, Economic Development, Health, Water and Sanitation. Officials from the Presidency included Ms Lakela Kaunda, the Chief Operations Officer; Mr Silas Zimu; the Special Advisor to the President; Dr Bongani Ngqulunga, Deputy Director-General in the Private Office of the President. In addition, the support staff responsible for research, protocol, communication and general included Ms Grace Mason, Mr Bongani Majola; Ms Milka Bosoga; Mr Pride De Lange; Mr T Sekano; Mr K Sebata; Ms T Khambane; Ms N Dlamini and Mr G Moloisi. Ministers were also accompanied by a limited number of support staff. The cost of travel, accommodation and transport is still awaited and will be available after final reconciliation.

I am not aware of any family member of a delegate being on the visit as well. Other than my wife, no other delegate from the Presidency travelled with a family member.

None of the government delegates were required to pay the amount mentioned. Accommodation for participants and support teams in Davos is arranged through a WEF-appointed travel agency in Davos. There are no individual country arrangements.

The visit to Davos contributed immensely to the drive by government to assure investors and to promote the country as an investment destination.

Reply:

1. During the State of the Nation Address I announced a far reaching programme that is aimed at reigniting our economy and creating jobs for our people. The programme I announced, details of which were further announced in more detail in the Budget Speech by the Minister of Finance, includes measures government is taking to reduce wastage of resources in the state. I believe that if this turnaround and fiscal consolidation strategy is fully implemented, we will successfully address the matters you raise in your question.

One of the main contributors to cost is keeping two capitals, one in Pretoria and the other in Cape Town. I made a call to Members of Parliament to look into this matter and ensure that it is addressed with the urgency it deserves.

The State of the Nation Address as well as the Budget Speech contain details of our government’s plan to address wastage in the state.

Reply:

The Minister sees no possible conflict of interest between allegations relating to employment in one role and the pursuance of employment in another.

(a) If the question is asking whether allegations against an employee in one role are compromising to his employment in a second, in this case that of the CEO of SA Rugby, the Minister is satisfied that the Federation has properly exercised its fiduciary responsibility and would point the questioner to the legal opinion provided by Fanie Cilliers, S.C. and Professor Michael Katz. They advised that it would be unfair labour practice to take action against an employee on perceptions of third parties or on the basis of a report of which the facts have not been tested in court.

(b) Based on the above advice, the Minister will not be taking any action against Mr Roux.

Reply:

a) 18 applications were received by the Human Resource Unit of Boxing SA.

b) 3 candidates were shortlisted.

c) at this moment the names and other details required of the applicants cannot be revealed as the process of appointment is still in progress and the approval from Minister of Finance as per the Boxing Act is still awaited.

Reply:

1. Government is committed to remaining within overall expenditure ceilings which were initially introduced in 2012. The main driver of growth in the past in the government wage bill has been the implementation of above inflation salary increases. However, careful reprioritisation of spending since 2012 has led to a reduction in the share of compensation of employees from 36.1 per cent in 2012/13 to a revised estimate of 34.5 per cent in 2015/16.

In the 2016 Budget Speech, the Minister of Finance announced measures to curtail growth in the wage bill, including reducing compensation budgets by R25 billion over the next three years. An additional R7.2 billion has been shifted out of compensation budgets over the medium term to other spending priorities. The National Treasury, the Department of Public Service and Administration, and the Department of Planning, Monitoring and Evaluation are working on proposals to reform wage negotiation processes. Appointments to non-critical posts will be blocked on the payroll system. However, to protect service delivery, teachers, nurses, doctors, police officers and other critical posts will be excluded from this process. To further restrain growth in wage bill, the 2016 Appropriation Bill proposes earmarking compensation budgets. The success of these interventions will be assessed during the next three-year period.

The process of determining salaries of public representatives and office bearers is undertaken by the Independent Commission for the Remuneration of Office Bearers (“the Commission). The Commission is an independent statutory body mandated in terms of section 8 (4) and (5) of the Commission’s Act (Act No. 20 of 1998), to make annual recommendations relating to salaries, allowances, benefits and making submissions to the President for consideration. A number of factors are taken into consideration with the objective of restraining expenditure. Such factors include affordability, economic conditions, and inflation forecasts, amongst other. These factors are carefully considered by the President prior to taking a decision on the Commission’s recommendations. The process also involves consultation with various stakeholders including the Legislative Sector Forum (LSF) and the Minister of Finance. A case in point is the recently announced cost-of-living adjustments for public office bearers nationally and provincially. The Commission had recommended between 5% and 6% for main categories of public office bearers but the President, after due consideration, determined a below inflation increase, (i.e. Consumer Price Index minus 1% which translates to 4.4%) for the 2015/16 financial year.

Reply:

The National Development Plan (NDP) is a coherent policy framework that is used to achieve alignment and co-ordination across government.

A number of implementation strategies are in place. They include addressing the growth path challenges to the creation of more jobs, and implementing industrial and agriculture policies. Our Medium-term Strategic Framework puts timeframes to specific actions in these strategies.

In order to ensure that our planning and our policies do in fact achieve what we want them to, we have, amongst other initiatives, strengthened the role of Parliament in the budget through the Money Bills Amendment Act, and established a Department of Performance Monitoring and Evaluation.

To improve the ease of doing business, we are now conducting socio-economic impact assessments on new legislation to enable the true costs and benefits to be known.

A large share of public sector spending, is aimed at establishing and maintaining conditions in which the private sector can invest. Public investment levels are robust and contributed to creation of jobs and opportunities for industrialisation.

As regards regulation, we have recently amended our visa regime to better balance the various policy objectives and to help the growth of tourism. Government departments are committed to helping municipalities cut red tape and provide a range of support measures for small businesses.

Many of our largest municipalities are participating in a programme intended to reduce red tape for business in areas such as getting construction permits, obtaining electricity connections and registering property.

To develop and strengthen a vibrant partnership with key economic stakeholders, we have engaged foreign and domestic investors, trade unions and community leaders. NEDLAC continues to remain an important body which facilitates consensus and cooperation between Government, Labour, Business and the Community in dealing with South Africa’s socio-economic challenges.

In the run up to this year’s State of the Nation, I met with business leaders to hear their concerns and exchange views on what each social partner can do to lift the rate of inclusive growth and job creation. We met again on the 9th of May and announced to the nation a package of interventions to unlock growth.

These measures that I have outlined are part of our efforts to build a capable, developmental state. While are stepping up efforts to improve the performance of the state, a number new investment commitments by the private sector, including foreign investors, point to examples of successful implementation of polices by the state. These include the automobile production sector as well as renewable energy plants.

Reply:

1. The National Development Plan (NDP) was formulated through a thorough consultative process. Various stakeholders and members of the public were consulted in several road shows and extensive public engagement programmes by the National Planning Commission. The Plan was adopted by Parliament in 2013 with the objective to accelerate economic growth, eliminate poverty and reduce inequality by 2030. The Plan is already being implemented. The 2013 Budget was the first to be tabled within the framework of the National Development Plan (NDP). The NDP remains the cornerstone of all our budget allocation decisions. The Plan has been translated into a five year Medium Term Strategic Framework (MTSF), which is government’s five year programme of action. In this way, it forms part of the strategic plan of every government department.

The key priority for South Africa at the moment is to remove all possible impediments to implementation. The government cluster system ensures that there is alignment, facilitation and monitoring of implementation of priority programmes which feed from the NDP. Parliament is also able to monitor the implementation through the normal parliamentary oversight processes.

We have also introduced innovative programmes such as the Operation Phakisa Big Fast Results methodology. The programme is being implemented in a few sectors such as the ocean economy, information and communication technologies in schools, health and mining. Operation Phakisa is proving to be an effective implementation mechanism. Other programmes such as the Industrial Policy Action are also aimed at implementing the NDP, in order to promote inclusive growth and create jobs.

Every member of the Executive subscribes to the NDP. All government programmes are informed by the NDP.

Reply:

(1) (a) The MDDA has, since inception, funded 68 Small Commercial Media Print Projects

(b) 45 Small Commercial Media Print projects are currently receiving both financial (disbursement) and non-financial support (fully disbursed)

(2) (a) The MDDA has funded 103 Community Radio Stations since 2004

(b) 99 stations are fully operational

(3) 36 Small Commercial Media publications and 27 community radio stations as follows:

Small Commercial Print

1. Genuine Magazine
2. Isibane News
3. Maputaland Mirror
4. Phumelela Express
5. Seipone/Xivoni/Tshivhoni
6. Taxi Talk
7. Uxhumano/Ziwaphi
8. Bravo,
9. Free State News
10. Winelands Echo
11. Rainbow News
12. Hope Community
13. Coal City
14. Chalkline
15. Northwest on Sunday
16. Masilonyana
17. Ngoho News
18. Dizindaba News
19. Eastern Cape Women Magazine
20. Ezakwazulu News
21. Lema Printing and Media house
22. Die Horison
23. Religious News
24. Nkomazi Observer
25. Mmaiseng News
26. Metro News
27. Multi – Purpose Magazine
28. North Western Times
29. Langa Media
30. Ikhwezi
31. Mmega Dikgang
32. Zithethele
33. Treasure Magazine
34. Gulova Magazine
35. Alex Pioneer
36. Nthavela

Community Radio

1. Barberton Community Radio
2. Vukani Community Radio
3. Eastern Cape Community Radio Hub (NCRF)
4. Indonsakusa Community Radio
5. Maputaland Community Radio
6. Mokopane Community Radio
7. Moutse Community Radio
8. Moletjie Community Radio
9. Radio Teemaneng
10. eKhepheni community Radio
11. Ermerlo Community Radio
12. Makhado radio station
13. Greater Giyani community radio
14. Umgungundlovu community radio
15. Inanda FM,
16. Vibe FM,
17. Mohodi CR,
18. Sekhukhune CR,
19. Radio Riverside
20. Bushbuckridge CR
21. Voice of Tembisa
22. Alex FM
23. Alfred Nzo CR
24. Bush Radio
25. NFM
26. Koepel FM
27. Motheo CR

(c) Additional funding is recommended taking consideration of the escalating printing and distribution costs, providing opportunity to the publication to increase market share such moving from publishing monthly to fortnightly and increasing the distribution footprint, funding allocated for 12 months is not sufficient for the businesses to break even and establish themselves in the market. (including Cities) in South Africa.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

1. (a) The Legal Metrology Act, Act 9 of 2014 is an improvement on the Trade Metrology Act, Act 77 of 1973. The Act expands trade metrology to the legal metrology domain for trade, health care and the environment amongst others, which were previously excluded from appropriate administrative control.

(b) In circumstances where standards have not been developed yet, for any metrology instrument, the CEO of the NRCS, in consultation with the user, may set interim requirements and conditions for the use of such an instrument until such time that relevant standards are developed.

2. (a) The Act makes provision for specified metrology instruments to be used in the absence of specified standards according to the stipulated process outlined above.

(b) The interpretation of the Department of Trade and Industry is that revenue generated in circumstances where there is not yet a standard, is legally permissible.

3. Section 18(1) of the Legal Metrology Act 9 of 2014 confers powers to the NRCS to take appropriate action against a defaulting party who has utilized an instrument, product or service that does not conform to legal metrology technical regulations (standards). The Act allows the NRCS to direct in writing any non-compliant instrument, product or service to be brought into compliance with the relevant standards, failing which the instrument or product may be confiscated, destroyed or returned to the country of origin.

4. Section 17(1) of the Legal Metrology Act, 9 of 2014 states that no person may import, manufacture, sell or supply a measuring instrument or product, or render a service, to which a legal metrology technical regulation applies. Costs incurred by the National Regulator for the confiscation, destruction of non-compliant measuring instrument, product or service may be recovered from the person using such measuring instrument or product, or rendering such service.

Reply:

	Minister
(1)	No
(a)	Not applicable
(b)	Not applicable
(c)	Not applicable
(d)	Not applicable

	(a)spouse	(b)children	(c)close family
(2)	No	No	No
(i)	Not applicable	Not applicable	Not applicable
(ii)	Not applicable	Not applicable	Not applicable
(iii)	Not applicable	Not applicable	Not applicable
(iv)	Not applicable	Not applicable	Not applicable

Reply:

(1) Yes, the SABC has an audio bouquet, it currently sits on the DSTV bouquet

(2) Yes, all 19 SABC radio stations will be carried, this includes 15 PBS Radio stations, 3 PCS Radio stations as well as Channel Africa.

(3) Not yet, Community Broadcast Services will decide on how many TV and Radio services there will be on their portion of MUX1. All TV and Radio Services on DTT (SABC and Community) will also be available on the Direct to Home (DTH) Satellite platform that has a 100% National footprint.

 

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE:

Reply:

(1) The orders placed on VR Laser as of 29 April 2016 on the Badger vehicle programme amount to R236 646 034.

(2) I do not approve sub-contracts

 (a) Awarding of contracts is a business operational matter within the mandate of Management and the Board of Directors, depending on Delegations of Authority.

(b) Management awarded the contract in line with Denel’s procurement prescripts. The contract was awarded to VR Lazer as it presented the best value proposition to Denel for the services required.

 

Reply:

No, the Executive Directors of all the entities reporting to the Ministry of Communications do not sign performance agreements with the Minister. The legal framework for Brand South Africa; South African Broadcasting Corporate Services SoC Ltd; Films and Publications Board; and Media Development and Diversity Agency (MDDA) requires them to report to the Boards which are the Accounting Authorities for the entities.

Only ICASA’s Chairperson and the other Councillors are required - in terms of section 6A of the ICASA Act, No 13 of 2000, as amended - to sign a performance agreement with the Minister. In this regard, the 2016/17 performance agreements between the Chairperson, other Councillors and the Minister have been developed and are ready for signature.

 

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

1. (a) The Legal Metrology Act, Act 9 of 2014 is an improvement on the Trade Metrology Act, Act 77 of 1973. The Act expands trade metrology to the legal metrology domain for trade, health care and the environment amongst others, which were previously excluded from appropriate administrative control.

(b) In circumstances where standards have not been developed yet, for any metrology instrument, the CEO of the NRCS, in consultation with the user, may set interim requirements and conditions for the use of such an instrument until such time that relevant standards are developed.

2. (a) The Act makes provision for specified metrology instruments to be used in the absence of specified standards according to the stipulated process outlined above.

(b) The interpretation of the Department of Trade and Industry is that revenue generated in circumstances where there is not yet a standard, is legally permissible.

3. Section 18(1) of the Legal Metrology Act 9 of 2014 confers powers to the NRCS to take appropriate action against a defaulting party who has utilized an instrument, product or service that does not conform to legal metrology technical regulations (standards). The Act allows the NRCS to direct in writing any non-compliant instrument, product or service to be brought into compliance with the relevant standards, failing which the instrument or product may be confiscated, destroyed or returned to the country of origin.

4. Section 17(1) of the Legal Metrology Act, 9 of 2014 states that no person may import, manufacture, sell or supply a measuring instrument or product, or render a service, to which a legal metrology technical regulation applies. Costs incurred by the National Regulator for the confiscation, destruction of non-compliant measuring instrument, product or service may be recovered from the person using such measuring instrument or product, or rendering such service.

Reply:

Indeed Honourable member, we have taken considerable strides in transforming apartheid established townships and we are determined to do more still in order to reverse the apartheid spatial planning and its legacy. For instance, in Soweto we have provided sports facilities, built malls, and paved roads. I invite the Honourable member to visit Cosmo City, which is one amongst our success stories. Evidence of our projects can be seen in many apartheid established townships nationally, places like Kwa-Mashu, Umlazi, Langa, Khayelitsha, Mamelodi and Atteridgeville are a few examples where our footprint can be seen.

We have managed to transform approximately 98% of all our projects to be representative of a human settlement, which includes access to amenities like schools, medical facilities, shopping centres, places of worship, points of transportation and access to roads.

The table below indicates the Human Settlements’ footprint.

Number of projects reflecting characteristics of a Human Settlements
	Number of projects being implemented (2014/15)	Amenities: Schools, Medical Facilities, Shopping Centres, Places of Worship, Transportation (Bus-, Taxi-, Railway Points)	Access to roads
Province		1 km Radius	5km Radius	10km Radius	1km Radius	5km Radius
EC	977	829	941	942	904	942
FS	1538	1282	1507	1521	1476	1521
GP	1276	1156	1274	1274	1266	1274
KZN	942	735	924	925	877	925
LP	1251	882	1198	1224	1070	1224
MP	1666	1208	1563	1581	1499	1583
NC	573	354	433	448	430	467
NW	473	436	544	555	542	560
WC	1540	1438	1511	1516	1494	1516
Total	10236	8320	9895	9986	9558	10012
% of projects within specific distances from the project, with characteristics of a human settlement		81%	97%	98%	93%	98%

It is further important to note that out of a total of 10 236 projects, only 70 projects (0.68%), fall outside a designated town boundary. That is due to the fact that they are projects that focus on rural communities and self-help projects (PHP).

Additionally, we have referenced and profiled a few of the largest towns in the country in relation to the above analysis (Annexure A). From this list there are none of these large towns that cannot be classified as a human settlement based on the definition of a human settlement.

Reply:

DAFF has engaged Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs (DARDLE). They provided the following answers:-

1.The DARDLE has collected all the tractors that used to be allocated to cooperatives into one central place after realizing that there were challenges in this method when it comes to servicing farmers on the ground who were not members of the cooperatives. Furthermore, the maintenance of the tractors was also a challenge. Mzinti Training Centre was then selected for the safekeeping of the collected tractors. This move assisted the department to be able to evaluate the current status of all the tractors that were collected.

The centre currently has 58 tractors, of which 16 are in good working condition, which comprises of 4 new tractors bought in 2015 and 12 tractors that were repaired.

DARDLE acknowledges that 42 tractors are not functioning. This fleet was bought in 2006/07 financial year and has not been properly serviced all these years as they were with the cooperatives. The assessment conducted by the department revealed that 14 have serious mechanical challenges like engine replacements, gearboxes etc and this will require huge sums of money to repair. The DARDLE has therefore requested the Mpumalanga Department of Public works Roads and Transport to auction them so that they can be cleared in our asset register. The department is awaiting the auction date.

2. Yes, the DARDLE has set aside budget to continue servicing the operational tractors and also to repair the 28 tractors that could not be repaired during the last financial year.

3. The impact is minimal due to the fact that the department has in the centre 16 operational tractors. DARDLE has in the past financial year 2015/16 appointed 14 private service providers to complement the existing fleet, to ensure that farmers receive the expected services from the department.

Reply:

The 2014/15 annual report has already been published in September 2015, and all audit findings were addressed accordingly as remedial actions which will be included in the 2015/16 annual report currently being drafted.

 

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

The requested information relates to a period that spans 11 years, which exceeds the period that the NEF stores records of the nature requested once audited. In terms of National Treasury Regulations, the NEF is required to keep records containing the requested information for a maximum period of 5 years.

It is therefore not possible at this point in time to respond comprehensively to the question as this is an onerous task by virtue of the considerable time that has lapsed since appointment of the CEO in 2005. Over the last few years the NEF has responded to similar questions relating to its CEO from the DA and has provided all necessary information as that related to information which was within its possession. We would also like to bring the Hon. Bagraim’s attention to the fact that the Hon. McPherson asked a similar question about the CEO of the NEF on 15 April 2016 and the NEF has provided responses thereto.

It is therefore regrettable that the NEF has had to contend with this volume and frequency of questions that relate to the same matter as this distracts valuable care and attention from the core business of the NEF. The latest request might necessitate the appointment of an external service provider to review NEF records and compile the report required by Hon. Bagraim.

Reply:

The Protocol Agreement between the Department of Agriculture, Forestry and Fisheries and Ezemvelo KZN Wildlife is in force until 31 July 2016. In preparation for the termination of this agreement, the Department has already entered into a Memorandum of Agreement with an organisation called Amagagasoshintsho for the implementation of the Small-scale Fisheries programme in the province as well as for the deployment and management of the Catch Data Monitors for the Small-scale fishery. In addition, the Department will redirect the financial resources currently spent on the Ezemvelo KZN contract to ensure that there will be monitoring, control and surveillance capacity in KZN post July 2016.

Reply:

The Department of Environmental Affairs continues to have a contract with Ezemvelo KwaZulu-Natal Wildlife and iSimangaliso Wetland Park Authority. The Department of Environmental Affairs has structured monitoring plans and arrangements with Ezemvelo KwaZulu-Natal Wildlife. These include monitoring the KwaZulu-Natal Marine Protected Areas and the New Proposed Marine Protected Areas included in the recently gazetted 22 Network of Marine Protected Areas (for public comments) under Operation Phakisa: Ocean Economy.

The plan in this financial year 2016/2017 from 15 to 19 August 2016 is for the Department of Environmental Affairs to host another training programme for officials of Ezemvelo KwaZulu-Natal on the management of the Marine Protected Areas.

---ooOoo---

Reply:

(a) The Department (DIRCO) does not charge other Government Departments for the usage of the State Protocol Lounges by Ministers.

The Department (DIRCO) does not pay for any chauffeur services at the Airport for Ministers.

Reply:

(1) As at 31 December 2015, an amount of R47.864 million was spent on the adjusted allocation of R132.717 million for capital assets in the normal voted funds (operational budget) of the Department. The details of each item cost, and the location thereof are outlined in Annexure A.

• Machinery and Equipment: These assets which can be used continuously or repeatedly in production for at least one year. Examples of Machinery and Equipment are Water laboratory equipment, construction and maintenance equipment, auto visual equipment, photographic equipment, office furniture, computer hardware, printing equipment, etc

• Software and Intangible Assets are the identifiable non-monetary asset without any physical substance. Examples of intangible fixed assets are mineral exploration rights; computer software; literary and artistic originals; and miscellaneous other intangible fixed assets. To qualify as a fixed asset, the item must be intended for use in production for more than one year and its use must be restricted to the units that have established ownership rights over it or to units licensed by the owner. (The units that have established ownership rights refer to the entity that created the software for example “Microsoft” and units licensed by the owner refers to the unit buying a license to use or the right to use the software, but will not be able to change the software).

(2) Refer below for full details of the plans that have been put in place to ensure that her department achieves its targets by the end of the 2015-16 financial year without resorting to fiscal dumping:

• Reallocation of budget within projects for improved level of expenditure between the slow and fast moving projects;
• This will assist to expedite service delivery and improve expenditure. Over and above this, the following actions were to be taken;
• Dedicated efforts to collect outstanding invoices from all suppliers (Including municipalities) for work completed;
• Drive and expedite the recruitment and selection processes for the recently advertised positions;
• Improve working relations between line function, finance and municipalities to improve supply chain management processes;
• Perform an internal expenditure review and provide more realistic cash flow projections and practical measures (recovery plans) to put in place to ensure adherence to the cash flow projections (At project level, for all programmes).

(3) As at 31 December 2015, an amount of R1.021 billion was spent on the adjusted allocation of R1.428 billion for Compensation of Employees, refer to Annexure B.

(4) The Water Trading Entity spent the allocated funds in line with Treasury Regulations and Departmental Policy regarding the Budget.

(5) The Department’s operation and maintenance expenditure is reflected under operational clusters in the third quarter report. According to the report, there is no overspending reflected therein. The Audited financial statement for the 2014/15 financial year as reflected on the comprehensive income does not show any over expenditure on operation and maintenance.

---00O00---

Annexure A

The details of each item cost, and the location thereof are outlined in the table below:

OFFICE	MACHINERY AND EQUIPMENT	SOFTWARE & INTANGIBLE ASSETS	Adjusted Budget	Spent 31 Dec 15	% Spent
	Adjusted Budget	Spent 31 Dec 15	% Spent	Adjusted Budget	Spent 31 Dec 15	% Spent
EASTERN CAPE	8,019	2,082	26%	-	-	0%	8,019	2,082	26%
FREE STATE	5,684	1,089	19%		-	0%	5,684	1,089	19%
GAUTENG	2,742	1,372	50%		-	0%	2,742	1,372	50%
KWAZULU-NATAL	1,865	985	53%		-	0%	1,905	985	52%
LIMPOPO	18,216	3,644	20%		-	0%	18,216	3,644	20%
MPUMALANGA	3,874	1,164	30%		-	0%	3,874	1,164	30%
HEAD OFFICE	40,838	24,354	60%	40, 370	10,306	33%	81,168	34,661	43%
NORTH WEST	1,229	327	27%		-	0%	1,229	327	27%
NORTHERN CAPE	2,758	829	30%		-	0%	2,758	829	30%
WESTERN CAPE	7,122	1,706	24%		-	0%	7,122	1,706	24%
GRAND TOTAL	92,347	7,557	41%	40,370	10,306	33%	132,717	47,864	36%

Annexure B

The details for Compensation of Employees are outlined in the table below:

Classification Item	Programme	Adjusted Budget	Spent 31 Dec 15	% Spent
COMPENSATION OF EMPLOYEES	ADMINISTRATION	645,589	481,719	75%
	WATER PLANNING & INFORMATION MAN	350,644	244,837	70%
	WATER INFRASTRUCTURE DEV	114,679	60,237	53%
	WATER & SANITATION SERVICES	148,102	96,939	65%
	WATER SECTOR REGULATION	169,383	137,694	81%
Grand Total		1,428,397	1,021,427	72%

The funds allocated to the department for each salary scale and) level of employment are as follows:

Salary Level	Number of officials	Original Budget per Salary Level
1	1	98
2	305	22,750
3	381	56,326
4	165	23,912
5	744	169,567
6	423	126,911
7	524	143,440
8	450	146,085
9	299	109,661
10	371	149,050
11	290	145,574
12	287	216,925
13	116	115,818
14	35	45,546
15	9	14,582
16	3	5,888
Total	4,404	1,492,133

Reply:

1. (a) The capital cost for the Mthatha One Stop Centre was approximately R5 million and the recurrent costs amounted to approximately R9.2 million until the end of March 2016. The capital cost for the Carletonville One Stop Centre was R5.2 million and the recurrent costs were approximately R9.4 million until the end of March 2016. The costs are approximate as they cover the costs of personnel and diagnostic services such as chest X-rays, lung function tests and TB tests.

(b) The sources of funding for the Mthatha One Stop Centre were the National Department of Health for the capital costs, the Eastern Cape Department of Health for the recurrent costs and the World Bank for the project manager. The sources of funding for the Carletonville One Stop Centre were the Chamber of Mines and the National Department of Health for the capital costs, the Gauteng Department of Health and the Chamber of Mines for the recurrent costs and the World Bank for the project manager.

(c) The National Department of Health has contributed R5.5 million, the Chamber of Mines R8.7 million, the Eastern Cape Department of Health R7.8 million, the Gauteng Department of Health R4 million and the World Bank R2.8 million.

2. (a) The total number of workers and ex-workers seen at Mthatha from April 2014 to March 2016 was 4 306 and at Carletonville was 4 674.

(b) The workers and ex-workers who have had Benefit Medical Examinations (medical assessments) are (i) 2 660 at Mthatha and 3 303 at Carletonville, and (ii) 1 564 medical assessment reports were submitted to the MBOD from Mthatha and 1 660 submitted from Carletonville to the MBOD.

3. The workers and ex-workers who attend the One Stop Centres were also assessed for non-occupational health-related problems and referred to the hospital for care. The reasons for non-submission of the medical assessment reports to the MBOD include lack of record of service of the claimant and missing documents such as bank account forms. Many of the workers and ex-workers also visit the One Stop Centres to seek information on the status of their claim.

END.

Reply:

1. The companies that participated in the tender process were Regiments, Old Mutual and Colourfields.
2. The Board of Trustees appointed Regiments based on the outcome of the technical evaluation process during the tender process.
3. The company’s background and achievements were evaluated and scored during the tender process conducted by a technical task team consisting of the Chairperson of the Board of Trustees, Principal Officer, Trustee, Actuary, Investment Consultant and a Transnet Representative.
4. The appointment of the specified company was based, inter alia, on the fact that they are well established as a financial company managing this specific type of liability-driven mandate and the team executing the mandate are all experts in their field. In addition, during the due diligence process carried out by the technical team, their risk management structure and practices were found to be compliant with industry standards.

 

Reply:

(a) No.

(b) No.

(i) Not applicable

(ii) Not applicable

Reply:

(1)(a). The former Registrar of Labour Relations is not reinstated to his full task because the Labour Court decision has been appealed to the Labour Appeals Court.

(b). There is no need for the Deputy Registrar to be reinstated because her status has never been revoked at any point.

(2)has she complied with the court action regarding the Registrar of Labour Relations; if not, (a) why not and (b) what are the further relevant details in this regard; if so, what are the relevant details;

Minister of Labour replied:

(2)(a). Because the Labour Court decision is suspended pending the outcome of the appeal lodged with the Labour Appeal Court.

(3) has she met with any leaders of a certain federation (name furnished) in Geneva, Switzerland and/or South Africa to discuss the actions of the Registrar of Labour relations; if not, what is the position in this regard; if so, what requests did the representatives of the specified federation make to her in this regard?  

Minister of Labour replied:

There is no need to discuss the Registrar of Labour Relations case with any Federation.

Reply:

The contract of employment commenced on 1 June 2014

Reply:

The amount stated above as Central Energy Fund’s (CEF) projection that its expenditure would increase to R117 billion in the 2014-15 financial year with a revenue of R118 billion due to Irene and other projects coming online on page 688 of her department’s 2014-15 Budget Vote, is not correct and the correct amount is stipulated below as follows:

 (a) The turnover for CEF in 2014/15 was R18.5billion, cash from operations was R4.4billion and cash balance was R10billion.

 (b) Project Irene did not come to fruition because it could not secure funding.

 (c) Project Ikhwezi was approved by the PetroSA Board 2011 as a five-well drilling program. As at the end of the 2014/15 financial year, only 25 BcF of commercial gas reserves was expected, 10% of the initial expected gas. This then shortened the commercial life of the GTL refinery to 2017.

Reply:

(1) (a). The Department has appointed Mr. Eugene Nhlanhla Nqaba Ngcobo as Senior Nuclear Specialist;

(b). Mr. Ngcobo was appointed on 24 November 2015;

(c). his professional qualification is a Masters of Science (Engineering); and

(d). the total remuneration is R1 267 806 per annum (all-inclusive package).

(2) (a). Mr. Ndabenhle Goodwill Ngwane was appointed as a Senior Procurement Specialist;

(b). on 24 November 2015;

(c) his professional qualification is a Bachelor of Commerce; and

(d). the total remuneration is R 1 267 806 per annum (all-inclusive package)

Reply:

(a) No

(b) No

(c) No

Reply:

We are still sourcing information from SAFA (South African Football Association) in this regard

Reply:

According to the Provincial Departments of Health concerned, the following table reflects the details in this regard:

Table 1.

Municipality	No. of ambulances allocated to the Municipality	Operational Ambulances	Operational Ambulance that are staffed in accordance with the correct Health Professionals Council requirements
Nelson Mandela Bay	37	16	16
City of Tshwane	102	75	Yes
City of Johannesburg	143	65	Yes
City of Cape Town Municipality	110	68	68
Tlokwe Local Municipality	5	4	4

END.

Reply:

(1)(a)(i)(ii) To promote mining and address company issues relating to investment climate in the country in general, and to mitigate imminent of retrenchments.

(b) The Department is not at liberty to disclose the identity of persons involved outside of its employment.

(c) No person in particular. I identify challenges and act upon them in a manner I deem appropriate.

(2) As previously indicated, the Minister was accompanied by a senior official of the Department.  It is not normal practice for the Department to disclose the identity of officials who travel and accompany the Minister in their official capacity, as it may potentially compromise the performance of their official duties.

NA QUESTION FOR WRITTEN REPLY

QUESTION NUMBER: 287 : CO582E

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER:

INTERNAL QUESTION PAPER NUMBER:

287. Mr J S Malema (EFF) to ask the Minister of Mineral Resources:

(a) What was the purpose of his recent trip to Switzerland, (b) who was part of the delegation and (c) how much did the trip cost the department? NW294E

Reply

1. To promote mining and investment opportunities in South Africa
2. Minister was accompanied by an official from the department.
3. R347 000, 00.

Approved/not approved

Mr MJ Zwane

Minister of Mineral Resources

Date Submitted:-……………/………………/2016

Reply:

The response below was provided by the Makana Local Municipality:

(a) Following the recommendations of the Kabuso forensic report, the employment contracts of the Municipal Manager and Strategic Manager in the Office of the Mayor were terminated. Further, a committee was established consisting of councillors to address issues implicating councillors and an action plan was also submitted to Council in order to address issues implicating officials. This process is being coordinated by the Administrator.

(b) The municipality’s legal representatives are engaging with those implicated with a view to recover the financial losses incurred by the municipality.

(c) The Administrator is dealing with this matter and would adhere to such a request.

 

Reply:

The forensic report has been released to relevent role players for their attention and action.

Reply:

1. All Members of Parliament do declare as required through Members Interests Office and such declarations are made public.

2. The forms used for declarations in the Members Interest Office specify who else should reflect.

Reply:

The lease will expire on 30 September 2016. CCMA intending to extend the existing lease to allow for sufficient time to go for tender.

Reply:

(a) (aa) (cc))(b)

The Minister and his Deputy Ministers have never met with members, employee and/or close associates of the Gupta family in their official capacities.  

(aa)(bb)(aaa)(bbb)(aaaa)(bbbb)(ccc) Not applicable

Reply:

Two sets of Regulations relating to the powers of the Office of Health Standards Compliance have been developed for the implementation of Section 79 of the National Health Act, 2003 (Act No. 61 of 2003), namely (i) The Norms and Standards Regulations in terms of Section 90 (1)(b) and (c) of the National Health Act, 2003 (Act No. 61 of 2003), applicable to certain categories of health establishments, and (ii) The Procedural Regulations pertaining to the functioning of the Office of Health Standards Compliance and its Board. These two sets of Regulations were certified by the Chief State Law Advisor and have since been referred for translation.

The Regulations will be submitted to the Minister of Health for approval and for final publication in the Government Gazette as soon as the Department of Health receives the two translated versions of the Regulations.

END.

Reply:

(a) No

(b)

(i) The Department of Environmental Affairs received editorial, advertising and media coverage services from The New Age Media (TNA) Media related to the implementation of the United Nations Conference on Environment and Development (UNCED) Rio+20 Summit Communications and Stakeholder Engagement Strategy.

South African National Parks utilised the services of Comair Flight Services on 11 April 2014.

South African Biodiversity Institute, iSimangaliso, and South African Weather Service have not awarded any contracts to Sahara Holdings, Comair, Oakbay Investments, Islandsite Investments, Afripalm Horizons Stakes, The New Age Media, JIC Mining Services and Vusizwe Media in the specified period.

(ii) The payment amounts to TNA Media (The New Age Media) and Comair Flight Services are reflected in the relevant financial reports of the Department.

---ooOoo---

Reply:

(1) Advertising: 2013/14 – April 2016

Department of Energy: R38 709 229

Entities: R65 897 944

(2) Consulting: 2013/14 – April 2016

Department of Energy: R101 454 801

Entities: R416 699 483

(3) Transport: 2013/14 – April 2016

Department of Energy: R99 735 984

Entities: R191 009 784

Reply:

The requested information is not readily available within the department. We have however, since requested these municipalities to provide the information and will therefore submit to you as soon as it becomes available.

Reply:

(a) (i) 55;

(ii) 64;

(iii) 49.

(b) Data on cervical cancer screening is collated nationally, however data on cases treated are not collated nationally.

END.

Reply:

According to the information provided by the Eastern Cape Department of Local Government and Traditional Affairs:

a) (i) The total cost to the Department of Local Government and Traditional Affairs in the Eastern Cape for the services of Ms Pam Yako, who was the Administrator in the municipality for a total period of nine months, was R3 089 928 .96.

(ii) Her replacement, a Senior Manager in the employ of the same department, was (and still is) remunerated at the normal level applicable to public servants at senior managerial level (Salary Level 13), because he is currently performing his functions in the municipality on secondment by the department.

b) According to the information we received from the abovementioned department, Ms Yako was paid an amount of R2 014 133. 76 for the first six months of her contract in the municipality. The payment was for work performed for four days per week for the first three months, each day calculated at eight hours at the DPSA rate of R2 568 per hour. It was also for work performed for three days per week for the second three months, each day still calculated at eight hours at the same DPSA rate of R2 568 per hour. Her contract was later extended for a period of three months. For this period (the last three months), she was remunerated at the DPSA rate of R 1 966 per hour for work performed for five days per week, each day constituting eight hours of work as usual, which amounts to R1 075 795. 20. When both amounts are combined, she was paid a total amount of R3 089 928 .96, as already reflected above.

As already stated, Ms Yako’s successor is remunerated at his current salary level (Salary Level 13) applicable to him as an employee of the provincial department occupying a senior managerial post.

c) In respect of the current legal status of the intervention, this intervention is still legal because it was approved by both my predecessor (Minister Pravin Gordhan) and the NCOP, in terms of the provisions of section 139(2) of the Constitution. The approval by Minister Gordhan and the NCOP came after the intervention was reinstated by the Provincial Executive a few weeks after it had been withdrawn following its disapproval by the NCOP.

Reply:

The loan agreement that was concluded between the Minister of Finance and Eskom, as required in terms of the Eskom Subordinated Loan Special Appropriation Act (2008/09-2010/11 Financial Years), provided for the loan to be repaid over a 30-year period. Consequently, there was no requirement for Eskom to have repaid any portion of the loan as yet.

The loan agreement also provided for a market-related interest rate to be payable, but, taking into account the medium-term impact of Eskom’s capital investment plan on Eskom’s balance sheet as required in the Act, the interest was only payable in those financial years where Eskom’s financial results reflected both a leverage ratio of better than 12.5% and an interest multiple above 2.5 times. Both ratios were to be calculated after considering any interest that would be payable on the loan. These provisions enabled the appropriated funding to strengthen Eskom’s balance sheet in a way that would be similar to, although not exactly the same as, equity.

As a result of Eskom’s weak financial position, at no point since the inception of the loan have both of the ratios been above the set thresholds and hence no interest was payable. Moreover, forward projections indicate that Eskom’s financial position is expected to remain weak for some time and that it was unlikely that the company would be required to pay interest on the loan over that period. Specifically, Eskom’s 2016 Corporate Plan indicates that the company anticipates that some key credit metrics will only reach the targetted levels by around 2026.

Moreover, the weak financial position resulted in Eskom credit rating being downgraded to sub-investment grade; reducing access and increasing the cost of funding resulting in the utility having to rely more heavily on the government guarantees. The conversion to equity of the subordinated loan through the replacement of the Eskom Subordinated Loan Special Appropriation Act (2008/09-2010/11 Financial Years) with the Eskom Special Appropriation Act (2008/09-2010/11 Financial Years), 2008 as well as the allocation of a further R23 billion in equity through the Eskom Special Appropriation Act, 2015 served to improve Eskom’s financial position thereby better enabling the company to stablise electricity supply, undertake required maintenance and complete the build programme.

Reply:

(a) The matter is still in progress and engagements in respect of the proposed rule amendments are currently underway. The process will be finalised as soon as consultation between the relevant parties have been completed.

(b) Once the issues surrounding the proposed amendments have been resolved and the rule amendments are approved by me, with the concurrence of the Minister of Finance, they can be immediately implemented by the Transport Pension Fund: Transnet Sub Fund and the Transnet Second Defined Benefit Fund in line with their governance processes.

(c) In terms of the proposed amendment to the Special Rules of the Transport Pension Fund: Transnet Sub Fund and the Rules of the Transnet Second Defined Benefit Fund provision will be made for the granting of additional pension increases (over and above the statutory 2%) from time to time, subject to affordability, certification by the relevant Fund’s actuary and approval by the Employer.

 

Reply:

The requested information is not readily available within the department. We have however, since requested these municipalities to provide the information and will therefore submit to you as soon as it becomes available.

Reply:

Between 2008/09 and 2011/12, compensation and goods and services budgets grew in real terms by 8.4 per cent and 5.1 per cent respectively. After the introduction of the expenditure ceiling in 2012, real spending on compensation of employees averaged 2.5 per cent over the period 2012/13 – 2015/16 and is projected to fall to 1.1 per cent real growth over the 2016 MTEF. Goods and services spending has also been sharply reduced, with non-essential items such as travel, subsistence, catering and entertainment declining in real terms. Over the 2016 MTEF, total goods and services spending is projected to grow at 0.6 per cent in real terms.

As a share of total consolidated spending, compensation has declined from 36.1 per cent to 35.3 per cent between 2012/13 and 2014/15. Goods and services spend has declined from 17.1 per cent to 16.8 per cent over the same period. From 2016/17 onwards, government will close its current deficit – the difference between current revenue and spending on compensation, goods and services, interest, and current transfers and subsidies. The resultant savings are expected to reach 1.7 per cent of GDP in 2018/19, equivalent to 44 per cent of government’s budgeted capital spending.

Project name	Date	Contract duration	Project value (R billion)
Statistics South Africa Head Office Accommodation PPP project	April 2014	25 years	10.3
Independent Power Producer’s Programme 3rd window submission	December 2014	20 years	26*
Municpal capital expenditure funded through borrowings	2014/15 financial year	-	9.4
Municpal capital expenditure funded through borrowings	2015/16 financial year	-	12.1**
Total			57.8

NB: Most State Owned Companies finance their Infrastructure programmes from their own revenue and borrowings backed by government guarantees and they are excluded from a list of the above mentioned projects.

* PThe programmeis funded by private sector capital raised from financial institutions. The private sector takes the risk associated with the completion of the project and it in turn benefits from unitary payments made by Eskom/government over the duration of the project.

**Planned borrowings for the entire year ending in June 2016.

The table above shows some of the projects where the private sector has provided financing. Some are PPP projects whereas others are municipal projects.

• Government is also stepping up its work with municipalities, in partnership with the private sector. A series of transformative projects valued at over R128 billion has been identified for potential investment in large cities, supported by a project preparation facility at the Development Bank of Southern Africa (DBSA). To broaden funding streams, city governments will focus on improving their systems for revenue collection, expenditure management and land-use zoning.

• Cornubia, a mixed-income commercial and residential development in eThekwini, is under construction. A total of 28 500 housing units, 18 clusters of community facilities and 2.3 million square metres of commercial floor space are planned. The city has also developed a densification plan to complement commuter rail modernisation between Umlazi and Bridge City. Private-sector contributions will amount to R15.4 billion of the total development cost of R25.8 billion.

• In 2013, the DBSA completed a successful restructuring. Over the medium term, government expects the DBSA to help develop South Africa’s municipal debt market as part of broader efforts to reshape the urban landscape. New initiatives will leverage private-sector investment to complement the DBSA’s own loan disbursements, which total R17.8 billion over the next three years.

• The NHFC disbursed R675 million in loans for affordable housing development, and leveraged R2.2 billion in co-financing from the private sector to support these projects.

Reply:

The Department made an assessment on a number of factors that were contributing to delays in processing of recommendations to the Department of Home Affairs on corporate and individual work visa applications. The Department is not responsible for recommending approval of general visas to the Department of Home Affairs.

To improve the processing of corporate and individual work visas applications we have put the following measures in place:

• We have advised and secured approval from Department of Home Affairs that Sports, Arts, Culture and Religious applications will no longer be processed by the Department of Labour as from 01st April 2015.

• We have publicized guidelines on our website for corporate and individual work visa applicants to check requirements before they submit applications to the department.

• We trained staff in our Labour Centres not to accept any applications that are incomplete or are not corporate or individual work visa related.

• Applications submitted by employers found to be non-compliant with our labour laws will be negatively recommended immediately on receipt of inspector’s report.

• We set a target of 30 working days within which we are going to process applications.

• As from 06th June 2016 we intend testing and piloting a new on-line system for the submission of applications.

• At Head Office, the adjudication committee meets every Friday of the week to review and finalize documentation received from Provincial Offices and to make a final recommendation to the Department of Home Affairs.