Questions and Replies

Reply:

The Gauteng Department of Human Settlements appointed Contractors to construct houses for Phases 1 and 2 at Obed Nkosi. During 2013, a total of 300 houses were completed and allocated to the qualifying beneficiaries. Phase 2 consist of 1 033 houses and the construction of these houses was completed during August 2015. The Lesedi Local Municipality then requested the Provincial Department that none of these houses should be allocated to beneficiaries without electricity. As the electrification of houses is the responsibility of the Municipality, the Provincial Department had to wait for the houses to be provided with electricity before allocation could start. To date, 695 houses in Phase 2 have been electrified and allocated.

The allocation of the houses with electricity is an on-going process and the Provincial Department has indicated that a further 88 houses will be allocated to the beneficiaries by 6 April 2016. The Lesedi Local Municipality is attending to the electrification of the outstanding houses, and once the houses have been electrified, allocations to the qualifying beneficiaries will commence.

 

Reply:

(1) A verification search against the Housing Subsidy System (HSS) as at 13 March 2016, indicates that the person referred to by the Honourable Member does not appear as a subsidy applicant or as an approved beneficiary of a state housing subsidy on the HSS. The North West Provincial Department of Human Settlements has since confirmed this finding. This implies that a subsidy application for the ID number provided was not captured on HSS to date or a subsidy application was not completed by the person or household to access a government housing subsidy.

In terms of the verification of ID numbers when processing applications for housing subsidies, there are set Standard Operating Procedures (SOPs) that are followed before an application is captured on the system before being approved to benefit from a housing subsidy. A subsidy is linked to a household (applicant and / or spouse) and a specific site. The ID numbers (applicant/spouse/dependants) indicated on a subsidy application form is captured on HSS against a specific site number as contained in the deed of sale and specific project.

The captured application is then verified to ensure that the details on the application form have been captured correctly on HSS. The verified application is then submitted for searches via an automated process on the ID against other databases including the Population Register in the Dept. of Home Affairs, and the Deeds Register, in the Department of Rural Development and Land Reform, as well as the Department Audit Database to ensure that the applicant did not previously benefit from a state housing subsidy.

The application is tagged for approval only if it passes all the aforementioned verification and search processes.

(2) In respect of the alleged selling of housing subsidy material by the named councillor, the Department of Human Settlements views such activity in a serious light, and will investigate and take appropriate steps based on the findings when the full and exact details, including documentary or other evidence relating to such activity are provided and obtained by the Department.

Reply:

The Thokoza Hostel is situated in the Gauteng Province and falls within the jurisdiction of the Ekurhuleni Metropolitan Municipality.

(a) The budget allocated for the 2015/16 financial year was R19 730 000.00. This was for the provision of temporary residential units, for accommodation of residents pending the redevelopment. The budget allocated for the 2016/17 financial year is R61 000 000.00, this funding is for the demolition of the existing buildings as well as for the installation of engineering services up to phase one of the development.

(b) The hostel comprises of forty-one (41) hostel blocks in a dormitory formation, which were deemed not suitable for human habitation and will be demolished and replaced by three storeys of Community Residential Units. These three storeys will yield two thousand, six hundred and twenty one (2621) units.

(i) & (ii) Tenders for demolition of the existing buildings and installation of services were advertised during March 2016. This project will consist of seven phases and will be implemented in a phased approach over a period of approximately eight (8) years subject to the availability of the required funding.

Reply:

(a) The Department of Public Service and Administration's total procurement percentage is as follows:

(i) 34% of total procurement initiatives per respective categories were sourced from SMMEs,

(ii) The department has not procured any goods/services from co-operatives.

(b) The National School of Government’s total procurement percentage is as follows:

  (i) The National School of Government (NSG) has purchased 14.15% of its total procurement from SMMEs from 1 April 2015 up to 24 March 2016

  (ii) The National School of Government has not procured any goods/services from co-operatives

Reply:

(1) There are no incentives provided to encourage the legal use of electricity. Eskom makes use of the Operation Khanyisa Campaign to inform and educate customers about how to better manage electricity usage.

(2)(a) We assume all non-technical energy loss to be attributed to theft. Non-technical losses in Eskom amounted to R4.7bn for 2014/15 FY.

(b) The amount stated in (2)(a) above represents the collective loss across all provinces. Eskom estimates non-technical losses at a national level, a breakdown per province therefore not available.

Reply:

Yes, it is anticipated that the relocation of beneficiaries of the Kliptown Informal Settlement will be completed by the end of 2020. The City of Johannesburg Metropolitan Municipality has indicated that the project comprises of six precincts, namely Kliptown Extensions 2, 6, 7 and 11, Pimville Zone 9 and Sector 2, which will be independently proclaimed as townships.

The project is in progress and is in various stages of implementation. To date, 1 089 beneficiaries of the Kliptown Informal Settlement have been allocated fully subsidised freehold housing units known as BNG houses at Pimville Zone 9 and Klipspruit Extension 2. An estimated 200 BNG houses at Klipspruit Extension 11 will be allocated to the beneficiaries by the end of April 2016.

Reply:

(1)(a)(i) In terms of the Coal Supply Agreement, Optimum Coal Mine (Proprietary) Limited ("Optimum") was obliged to supply and deliver to the Hendrina power station coal which complies with, amongst others, the following quality specification:

• All coal must have an ash content which shall not exceed 28.8% in order to ensure that the calorific value of the coal is not less than 23.0MJ/kg (calculated on a moisture free basis);
• a monthly average size distribution of:
• not more than 55% of coal supplied will be smaller than 6mm;
• not more than 35% of coal supplied will be smaller than 2.38mm; and
• not more than 15% of coal supplied will be smaller than 0.81mm.
• The Second Addendum amended the quality parameters in respect of the Abrasiveness Index (pursuant to an arbitration with Optimum) to be <423 mgFe on a 7 day weighted rolling average basis.

(ii) The coal that was received by Eskom was within contractual specifications with regard to the Calorific Value but out of specification in respect of Abrasive Index and Sizing.

(iii) The coal currently being received by Eskom meets the contractual specifications with regard to the Calorific Value except for Abrasive Index.

(b) The price of coal paid by Eskom is R174.41/ton as at February 2016.

(2) The coal supplied by Optimum Coal prior to the imposition of the fine was outside the quality specification for Hendrina Power Station in terms of Abrasive Index and Sizing. For the 1 March 2012 to 31 May 2015, Optimum Coal, failed to supply and deliver to Eskom coal which meets the quality parameter as set out in the Coal Supply Agreement. The coal supplied and delivered to Eskom, amongst others, failed to comply with the sizing specification, in that 20% to 45% of the coal supplied and delivered to Eskom by Optimum on a monthly basis, during the period of supply was smaller than 0.81mm. Despite this failure by Optimum, Eskom has, without prejudice to its right in terms of clause 3.6 of the First Addendum, paid Optimum for such coal, without applying any adjustment or reduction to the payment, for Optimum's failure to comply with the quality parameters.

(3) The coal currently received by Hendrina Power Station is within the contractual specifications in respect of Calorific Value except for the Abrasive Index and the Sizing. Since Optimum is currently under business rescue, the parties have in terms of the interim agreement agreed to suspend the application of penalties until the business rescue process is finalised. Of critical importance to note is that Eskom has issued Summons against Optimum for failing to supply coal that meets the quality specification of the station. Optimum has since disputed the penalties. Once the business rescue process has been finalised, the legal proceedings will continue to run its course.

(4) High Abrasive Index causes high wear rate of the plant and sizing affects the material flow frequency causing hang-ups which results in load losses. The wear rate causes accelerated wear of parts. This negatively affects the energy output from the station thus the total energy capacity available for dispatch into the grid. In order to compensate Eskom for the capacity loss occasioned as a result of these quality parameters being out of specification, penalty provisions in terms of the contract apply.

(5) (a) Since Optimum is currently under business rescue, the parties have in terms of the interim agreement agreed to suspend the application of penalties until the business rescue process is finalized.

(b) No. Not applicable.

 

Reply:

(1)(a)(i)

• Calorific value (moisture free): 24,3 Mj/kg (base value) and between 23,3 and 25,4 Mj/kg
• Total moisture: 7,0 – 9,0% (range) and between 7,0 and 9,0%
• Ash content (moisture free): 23,0% (base value) and between 17,0 and 31,0%
• Volatile content (moisture free): 24,0% (base value) and between 21,0 and 29,0%
• Abrasiveness index: 375 mg Fe (base value) and between 325 and 425 mg Fe

(ii) The coal received by Eskom was within the contractual specifications range as per (i) above.

(b) The price of coal paid by Eskom at the expiry of the Agreement was R944.61/ton.

(c) The contract was not cancelled but expired on 31 December 2015.

(2)(a)(i) The coal contracted for Arnot Power Station is a better quality specification compared to the Arnot expired contract and is as follows:

Quality parameter	Unit	Quality Expected	Quality Specifications	Quality Rejection Limit	Measurement basis
Calorific Value	MJ/kg	24.0	≥22.5	<22.5	Air Dried
Total Moisture	%	8	≤9.0	>9.0	As Received
Inherent Moisture	%	4.1			As Received
Ash	%	20.2	≤24.3	>24.3	Air Dried
Abrasive Index (Eskom Mining House Method)	mgFe/4kg	<450	<450	>450	Air Dried
Sulphur	%	1.19	≤1.19	>1.19	Air Dried
Volatiles	%	21.7	≥19.5	<19.5	Air Dried
AFT (Initial deformation)	ºC	1380	>1380	<1380	N / A
Sizing: (cumulatve) %					N / A
	+60mm	0	0	>0
	+50mm -6.35mm	5 50	5 50	>5 >50
	-3.35mm	30	30	>30
	-1mm	15	15	>15

(ii) The coal received by Eskom is within the contractual specifications as per (i) above.

(b) The contractual price is R470/ton to Arnot Power Station.

(c) The coal is suitable for Arnot Power Station as it meets the quality specification for the station.

Reply:

(1) Yes. The Directive (Circular No: HRD 1 of 2012) mandates the National School of Government (NSG) to develop and roll out the compulsory induction programme (CIP).

(2) (a) Departments are expected to pay a total cost of R1876 (if NSG facilitator, venue and IICs costs are excluded), R8875 (if NSG internal satff is used and venue excluded) or R16275 (if IICs is used and venue is excluded) per employee

(b) the services included in the fee cover Programme management and administration, materials production and delivery, capacity building, professional support, monitoring and evaluation, and

(c) (i) (ii) factors are as follows, readiness of departments to implement the programme, absence of trainer policies to maximise trainer capacities developed by the NSG and use of cost-recovery model;

(3) (a) The NSG has ensured that the compulsory induction programme accommodates the diverse needs of public service staff members living with disabilities by availaing materials in Word to those who are visually impaired and collaborating with departments in securing the Braille services and of sign-language specialists.

(b) No. The NSG striven to ensure that staff living with disability are not be discriminated against with the introduction of the compulsory induction programme for public servants.

 

Reply:

As per attached table.

Reply:

1. Yes. Not all training offered to public servants takes place through the National School of Government. There is no regulation that mandates departments to send public servants to the National School of Governement to be trained.

Mandatory training programmes are the Compulsory Induction Programmes (CIP) for newly appointed public servants from salary levels 1 to 16 as per the Directives issued by the Minister for Public Service and Administration namely;

  (a) Amendments to the Directive on the Implementation of the Compulsory Induction Programme (CIP) in the public service, April 2015

  (b) Directive on Compulsory Capacity Development, Mandatory Training Days and Minimum entry requirements for Senior Management Services (SMS).

    (i) CIP 1-12 focuses on newly appointed public servants on salary levels 1 to 12. This CIP 1-12 is divided into two programmes, namely CIP 1-5 and CIP 6-12 with dedicated focus on the unique requirements of knowledge, skills, values and competencies that is relevant and responsive at these salary levels respectively.

   (ii) CIP 13-14 focuses on newly appointed public servants on salary levels 13 and 14, namely Directors and Chief Directors. These programmes focus on the unique requirements of knowledge, skills, values and competencies that are relevant and responsive at these salary levels.

   (iii) CIP 15-16 or the Executive Inductive Induction Programme (EIP) focuses on newly appointed public servants on salary levels 15 and 16, namely Deputy-Director Generals and Director-Generals. This programme focuses on the unique requirements of knowledge, skills, values and competencies that are relevant and responsive at these salary levels.

2. Yes. All the training programmes are focused on a specific target group or salary level of public servants.

   (a) The department that identified the training needs decides what training should be carried out.

   (b) The guidelines that inform the training programmes are the Learning Provision Cycle and the Learning Programme Design Matrix. The Learning Provision Cycle provides the strategic framework for planning, design, development, approval, delivery and monitoring and evaluation of the training programmes. The Design Matrix provide the specific guidelines with regard to the specific/enabling outcomes, assessment criteria, learning statements, assessment activities, and related critical cross filed outcomes to ensure integration of learning.

   (c) The National School of Government is responsible for the quality of training that is selected and offered. It does this using its Quality Management and Monitoring and Evaluation Systems. The Quality Management System involves the Quality Management System Policies with accompanying implementation toolkits. The Monitoring and Evaluation processes include the 100% monitoring of all NSG programmes, regular on-site visits and evaluation reports as well as application or learning studies focusing on selected National School of Government programmes.

3. (a) Every training programme has assessment requirements to ensure the effectiveness of training.

   (b) Training is monitored and evaluated on a regular basis. The National School of Government conducts evaluations of the training programmes and the application of learning thereof in the workplace to establish (i) whether training is achieving its intended objectives and (ii) whether training is resulting in expected changes in the workplace; and if so, what these changes mean to the public.

4. (a) The National School of Government is continually analysing the Report on National Skills Development Strategy of South Africa from the Human Resource Development Council of South Africa, and also the Workplace Skills Plans of departments, in order to recommend training offered through the NSG as an appropriate mechanism to improve performance where performance weaknesses are identified;

(b) The Public Service Commission has released reports on the “State of the Public Service” as well as reports such as “ Assessing the effectiveness of training provided by PALAMA in improving skills and competencies of public service leadership with a view to inform curriculum development by the National School of Government, September 2014” . The recommendations provided in these AMPAT reports inform the training offered through the NSG as an appropriate mechanism to improve performance where performance weaknesses are identified.

Reply:

The HPCSA is an independent organisation, as such, it has a legal obligation to adhere to all Constitutional and relevant legislative prescripts in the exercise of its mandate. The implementation of the recommendation made in the Ministerial Task Team Report on the Health Professions Council of South Africa (HPCSA) is therefore subject to adherence to these prescripts. I am being kept informed by the HPCSA on the progress in this regard.

  (a) At this point, I have not been informed by the HPCSA that any of the recommendations of the Ministerial Task Team have been rejected;

   (b) Not applicable;

     (i) Not applicable;

     (ii) A final implementation report is expected by the end of April 2016

END.

Reply:

1. During the period 1 July 2015 to 31 January 2016, GCIS placed advertisements to the value of R153 138 655.73 on behalf of its clients (national and provincial departments and entities reporting to these departments). R22 187 761.61 of this advertising expenditure was allocated to community media (community radio stations, community print media, community television stations and small commercial publications), representing 14% of the allocated budget. A detailed breakdown follows below:

(a)(i) 13% of advertising allocated by national departments as listed in the accompanying table

(ii) 12% of advertising allocated by provincial departments as listed in the accompanying table

(b) 18% of advertising allocated by all entities reporting to specified departments as listed in the accompanying table

2. Community media offers government the opportunity to direct communications messages at specific and highly localised audiences. Whilst this is adequate for tactical interventions on community print or community television, interactive campaigns requiring the targeting of multiple communities simultaneously are best suited to community radio.

The Government Communication and Information System primarily focuses on such high reach multi-site campaigns which often use interactive phone-in community radio programmes. In this advertising format, a minimum of 75 community radio stations are connected via satellite to enable a single interview to be broadcast to multiple community radio stations. In turn, listeners resident in the broadcast footprint of any of the participating community radio stations can call in to the GCIS studio and interact live with the studio guests.

This capability is not available on other forms of community media as detailed in the question.

MR D LIPHOKO

[ACTING] DIRECTOR GENERAL

GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM

DATE:

MS AF MUTHAMBI, MP

MINISTER OF COMMUNICATIONS

DATE:

Reply:

1. NERSA does not use the marginal cost based method for electricity tariffs but rather the revenue requirement method. The Electricity Regulation Act requires that NERSA allow an efficient operator to recover its cost plus a reasonable return. This method is applied fully for Eskom. In case of Municipalities, this method has just been approved for implementation. It has therefore not been applied for municipal regulation. The cost of supply studies will be performed by municipalities and submitted to NERSA for review and consideration when municipal tariff applications are considered.
2. Please refer to (1) above.

Reply:

a) The department is only responsible for managing the local government equitable share which provides for the subsidization of the provision of basic services to poor households. In the Local Government Equitable Share formula a monthly household income equal to two old age pensioners’ grant of R2 300 per month is used to define the formula’s affordability threshold. It should be noted that the threshold is not an official poverty line or a required level to be used by municipalities in their own indigent policies. However, should municipalities choose to provide fewer households with free basic services than they are funded for through the local government equitable share, their budget documentation should clearly indicate why they have made this choice and how they have consulted with their community during the budget process.

b) With regard to the Local Government Equitable Share (LGES) formula, the basic services component of the formula provides for the subsidisation of the provision of basic services to poor households. The subsidy includes funding for the provision of free basic water (6 kiloliters per household per month), energy (50 kilowatt-hours per household per month) and sanitation and refuse (based on the service levels as defined national policy). The basic services component provides a subsidy of R313.76 per month in 2015/16 for the cost of providing basic services to each of these households. The monthly amount provided to each service is provided in the Explanatory Memorandum to the 2015 Division of Revenue Bill.

c) According to the STATSSA Non-Financial Census released in August 2015, the total nationwide number of indigent households registered with municipalities is 3 482 260. The table below captures registered indigent households per metro:

Table 1: Total Number of Indigent Households Registered in each Metropolitan Municipality

Province	Metropolitan Municipality	Indigent Households
Gauteng	City of Johannesburg	288, 209
	Tshwane	96, 883
	Ekurhuleni	36,526
Free State	Mangaung	20, 105
KwaZulu Natal	Ethekwini	589, 605
Eastern Cape	Buffalo City	61, 960
	Nelson Mandela Bay	85,022
Western Cape	City of Cape Town	288, 724
Total		1,467,034

d) The basic services component of the local government equitable share is worth
R33.3 billion in 2015/16 financial year and accounts for 74.9 per cent of the total value of the local government equitable share.

e)

• • 1. The eligibility for indigent subsidy is determined via application. All households who qualify in terms of the criteria set by the municipality visit municipal offices and/ or other registration points established by the municipality to complete and lodge applications for subsidy consideration.
    2. The eligibility for indigent subsidy is not determined automatically via Property valuation. Instead, it is determined via application process as in (i) above. Property valuation is just but one of the many targeting methods that municipalities can use to target indigent households as spelt out in the national indigent Policy framework and the implementation guidelines.

Reply:

1. No.

South Africa enjoys a strong cordial relationship with the US. Various channels of communication are open for both sides should they see the need to discuss any issue. The two Ministers normally do so under the auspices of Strategic Dialogue which they co-chair.

2. No.

 

UNQUOTE

Reply:

a)  The Department does support SMMEs, Co-operatives, as well as Township and rural enterprises through their procurement spent.

b) The procurement spent for SOEs was mainly on SMMEs and they are detailed below as follows.

Entity	Report
NNR	15% of R51 million total Expenditure year to date on goods & services
SANEDI	R3,313770.00 being 19% of total cash and accrued operating expenses
CEF	R 3,847,260,039.37 spent on BBEE including SMME (CEF Group does not report specifically on SMMEs and Co-operatives or categories these suppliers separate from the BEE spend.
NECSA	37% of the total procurement spend (R 86 million) was spent on Qualifying Small Enterprises (QSEs= Annual revenue of less than 10 million 25% of the total procurement spend ( R 58 million ) was spent on Exempt Micro Enterprises (EME=Annual revenue of less that R 50 million ) NB: In terms of the BBBEE Act, SMME’s are now referred to as QSEs and EMEs.
NERSA	More than 40% of R60 million (NERSA’s procurement spend for 2015/16) went to service providers with a BBBEE Level 3 and above.
NRWDI	NRWDI is not yet operational; this is not applicable to the Institute.

Reply:

The Chief Executive Officer of the IDC was quoted in a local newspaper in February 2016, as noting that the IDC needs to restructure some of the debt that it holds.

This restructuring would be on the asset, not liability side of the IDC’s balance sheet, ie money owed to the Corporation by local companies.

The purpose of the debt restructuring is to assist IDC clients and business partners that are affected by the downturn in the macro-economic environment, particularly those that are negatively impacted by the slump in commodity prices. In this regard further details will be provided in my budget vote speech, or as soon as the IDC has completed the technical work on the matter.

-END-

Reply:

According to information received from Tlokwe City Local Municipality, as at Dec 2015.

(1) (a) Two (2) officials are currently on suspension.

(b) (i) (aa) Position of suspended official	(bb) Reason for suspension	(ii) Period of suspension	(iii) Total remuneration during period of suspension
Senior Librarian	Harassment and intimidation of subordinates, failure to report theft by a subordinate and gross misconduct (abuse of power).	One (1) month (27 October 2015)	R 49 762.30
Senior Admin Officer	Disruption of normal operations of the employer, displaying rude and aggressive behaviour to fellow employees, wilful absence from performing tasks and responsibilities allocated to him.	One (1) month (2 October 2015)	R 39 172.29

(2) No severance packages were paid to any municipal official.

Reply:

a) Yes, the current installed capacity of the Renewable Energy Independent Power Producer (REIPP) Programme is 2.48 GW and the maximum simultaneous contribution recorded is 1.59 GW.

b) Yes, the REIPP programme has been run and is delivering in a world class way comparable to the best in the world. Time expectations have been met and although there is not a “budget” in the strictest sense of the word, the energy prices for the programme have come down via the competitive tendering process, exceeding expectations. There is significant confidence in the industry, which can be seen in the large amounts of money being invested.

c) No, it was never an objective of the REIPP programme to make a case for or against the argument that renewable energy will not meet base load. The decisions around the requirements for base load or peaking energy is made in the Integrated Resource Plan (IRP) process. At the same time it can be stated that the country’s electricity demand profile requires a large portion of base-load generation, which is generation that is predictably available throughout the day for every day of the week. Unfortunately, renewables cannot supply this base load as they are inherently extremely variable and large scale storage, to smooth out this variability, is not yet economically viable. Either nuclear or fossil (coal or gas) or hydro (unfortunately only in a limited way in South Africa) generation must provide this base load. Put differently, a large scale renewable wind programme can provide a degree of base load if geographically well diversified but will need to be supplemented with storage and other dispatchable generation technologies. Concentrated Solar Power (CSP) can provide base load if built with enough storage but the cost of this far exceeds the other base load options.

d) Yes, the REIPP programme has already demonstrated its viability. From an integrated power system point of view, the renewable energy contributed to the grid every day, significantly reducing the need for Eskom to use open cycle gas turbines and as such is preventing load shedding as well.

e) Yes, the electricity supplied from renewables is currently being used by all customers and is thus suitable and available for all. The nature of the country’s integrated power system is such that all generation, regardless of technology or origin, is effectively pooled and all customers draw from this pool. It is not impossible for any customer to determine the generator(s) sourcing its electricity.

Reply:

(1) An unused sub-site on the Government Communication and Information System website that housed a redundant contact database was hacked exploiting an SQL injection vulnerability.

(a) No restricted area of the website was accessed. All the information on the sub-site database is public information and the log files of the content management system (CMS) of the sub-site database indicate that none of the exposed user information was used to log onto the CMS before the vulnerability was closed.

(b) No data was lost.

(c) The vulnerability was removed, all redundant accounts on the user table were locked and active accounts were reset.

(2) The Department’s website and the websites of the entities reporting to it have not been hacked over the past 12 months.

 

 

MR DONALD LIPHOKO

DIRECTOR GENERAL [ACTING]

GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM

DATE:

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

a) Kurara FM received a total grant funding of R 1,575,946.59 from the Media Development & Diversity Agency in October 2010 which was to cover the Purchasing of a digital broadcast studio; Transmission costs; Stipends; and Operational costs. The allocated funds were to be disbursed to the station on a tranche payment basis, meaning for every tranche of the funds released, the station was or is contractually obligated to submit a comprehensive financial and narrative report accompanied by supporting documents. The station could not adequately report on the first tranche of the funds and the Agency sent an official to the station to assist with the report. As a result, the station was then able to receive its second of the four tranche payments.

Subsequently, as contractually required, the station once again could not submit a thorough report and the Agency once more visited the station to intervene and assist the station. Upon the Agency’s engagement with the project, it learnt that the station had undergone a change in management and the management, together with its board, declared that the station had no records of the funds. As such, it claimed, it could not furnish the Agency with the required report, a key prerequisite before any further funds could be disbursed to the project. In light of this impasse, the Agency has since advised the station to request that the grant be written-off and reapply for another grant with the Agency. The station is yet to respond after the last engagement with the Agency. It should be noted that the recommendation to the station from the Agency’s officials is based on the fact that the station has declared that it cannot account for and has no record whatsoever of the funds in question.

Radio Teemaneng received a total grant funding of R 954,773.62 from the Media Development & Diversity Agency in July 2011 which was to cover Equipment and Operational costs. The station has so far received two payments of the four tranches as per its contract with the Agency. While the Agency has tried to assist the station to adequately report on the latest funds it received, the contract the station has with the Agency lapsed as a result of slow reporting from the station. It also emerged that the station could not provide the Agency with a valid tax clearance certificate. As part of requirements, before any payment can be made to any entity or beneficiary, a valid tax clearance must be submitted to the Agency, and the station is yet to do so do date. As it stands, the Agency has given the station an opportunity to resolve its tax certificate issues with SARS before any further payment can be made. The process will also require that the station’s contract with the Agency be extended, provided that the station can adequately report on its previous tranche and also provide a valid tax clearance certificate.

(b)(i) A total number of 57 community radio stations have been assisted by the Media Development & Diversity Agency from the period 1st January 2012 to 31st of December 2015, as follows: Limpopo (10); North West (9); KZN (12); Eastern Cape (5); Western Cape (4); Free State (3); Mpumalanga (7); Northern Cape (3); Gauteng (4).

(ii) The stations were funded for various line items and the breakdown per province is as follows:

Limpopo Province

1. Maruleng FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
2. Giyani Community Radio (Digital broadcast studios, operational costs, audio streaming and stipends, Programme Production)
3. Greater Tzaneen FM ((Digital broadcast studios, transmission costs, operational costs, and stipends)
4. Sekhukhune FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
5. Botlokwa FM (Programme production)
6. Lephalale Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
7. Mohodi FM (Programme Production and stipends)
8. Malamulele FM (Digital broadcast studios, operational costs and stipends)
9. Tshepo ya Sechaba Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
10. Hlanganani FM (Digital broadcast studios, transmission costs, operational costs and stipends)

North West

1. Kgatleng FM (Digital broadcast studios, operational costs, audio streaming and stipends)
2. Madibogo Community Radio (Digital broadcast studios, operational costs, audio streaming and stipends)
3. Mafikeng Community Radio (Digital broadcast studios, operational costs, audio streaming and stipends)
4. Mmabatho FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
5. Radio Mafisa (Transmission equipment, operational cost)
6. Village FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
7. Motsitle Community Radio(Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
8. Aganang Community Radio (Digital broadcast studios, transmission costs, operational costs, stipends and programme production)
9. Star FM (Operational Costs, Office Equipments, Salaries and Programme production)

KwaZulu Natal

1. ICORA (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
2. Ngquthu Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
3. Nqubeko Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
4. Umgungundlovu Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
5. KZN Capital Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
6. Inanda FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
7. Ugu Youth Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
8. Siyathuthuka Community Radio ( Transmission equipment, operational costs and stipends)
9. Maputaland Community Radio
10. Vibe FM ((Digital broadcast studios, transmission costs, operational costs and power back- up)
11. Radio Khwezi (Programme Production)
12. Nongoma FM(Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)

Eastern Cape

1. Mdantsane FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
2. Kumkani FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
3. Izwilethemba Community Christian Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
4. Isajonisi Youth Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
5. LA FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)

 

Western Cape

1. Radio KC (Digital broadcast studios, transmission costs, security costs, marketing costs, operational costs, audio streaming and stipends)
2. Bush Radio (Digital broadcast studios, transmission costs, operational costs, audio and stipends)
3. Radio Kaapsepunt (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
4. Radio Namakwaland (Programme production)

Free State

1. Koepel Stereo (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
2. Naledi Community Radio(Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
3. Mozolo Community Radio(Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)

Mpumalanga

1. Mash FM (Digital broadcast studios, transmission costs, operational costs and stipends)
2. Emalahleni Community Radio (Digital broadcast studios, transmission costs, operational costs, stipends and Programme production)
3. Bushbuckridge Community Radio (Digital broadcast studios and signage)
4. Nkangala Community Radio(Digital broadcast studios, transmission costs and operational costs)
5. MP East Community Radio (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
6. Nkomazi FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
7. Kanyamazane Community Radio(Digital broadcast studios, transmission costs, operational costs, stipends and Programme production)

Northern Cape

1. Radio Riverside (Digital broadcast studios, transmission costs, operational costs, audio streaming, stipends and audio streaming)
2. N FM (Digital broadcast studios, transmission costs, operational costs, audio streaming, stipends and audio streaming)
3. Revival FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)

Gauteng

1. Eldos (Digital broadcasting equipment, Transmitter, Training and Operational Costs)
2. Hweletsa Hope FM (Digital broadcast studios, transmission costs, operational costs, audio streaming and stipends)
3. Ekasi Connexion (Power back up, Digital Broadcasting Equipment)
4. Bagaka FM(Digital broadcast studios, transmission costs, operational costs)

 

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

1. No, NERSA develops rules not regulations. We are in the process of developing Licensing Regulations, which will enable NERSA to implement Small-Scale Embedded Generation (SSEG) rules that they have developed.
2. (a) It is the responsibility of the Department to ensure organised development in the electricity industry and the development of licensing regulations is meant to facilitate government policy objectives. Incidentally, it is municipal constraints relating to the wheeling of power that pose the biggest risk to SSEG.

(b) The Regulations are still under development and are expected to be published for public comments.

Reply:

(a) Minister was not invited to the World Economic Forum in Davos.

 

(b) (i) not applicable

(ii) not applicable

 

(c) (i) not applicable

(ii) not applicable

 

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

The information requested by the Honourable Member is not readily available within the department. We will however engage the affected provincial department responsible, to solicit the relevant information from the municipality. The Honourable Member will be kept updated on the process.

Reply:

NO	(b), (c)Period:	(i) What No of Times	(ii) Amount:
A	April 2012 to March 2013	1	R45,131.18
B	April 2013 to March 2014	2	R1,038,466.70
C	April 2014 to March 2015	1	R305,208.41

Grand total R1 388 806.29

Reply:

Since the advent of load shedding and the creation of the war room in 2014, the DoE commissioned a study in conjunction with the CSIR to quantify the extent of the cost savings emanating from the deployment of renewable energy technology, including solar, in the place of diesel and this was estimated at R3.6bn.

The DoE made a proposal to accelerate the cheaper alternative of using solar technology to replace diesel-fired power generation. This alternative is based on the generation of solar energy using solar plants that have been procured under the Renewable Energy Independent Power Producers Programme (REIPPP). The DoE further made a determination under Section 34 of the Electricity Regulation Act to procure additional solar generation capacity through an expedited procurement process given that there was evidence that this option would assist in reducing the cost of generation of diesel fired turbines, especially during peak periods.

The process for the expedited procurement of an addition 1800MW of solar power generation was concluded under the REIPPP with bid submissions closing on 11 November 2015. The commissioning of these power stations is expected within two years and it can therefore be expected that less and less diesel will be required during periods when solar power is generated.

Reply:

The Economic Development Department is not involved in this project. The Gauteng Department of Economic Development is overseeing the project.

-END-

Reply:

1. Yes, the Minister requested the SARS Commissioner to discontinue the restructuring of SARS operational restructuring to enable him to review and consult with the team on the matter.
2. The National Treasury does not have an oversight role of SARS.

Reply:

1. Yes, (a) accounting officers and oversight committees have responsibilities to ensure that the directors at any local government operate within their designated (i) operating and (ii) capital budgets in line with Chapter 8 of the Local Government Municipal Finance Management Act, 56 of 2003. Further, section 79 of the Local Government Structures Act gives municipal councils the power to establish one or more committees necessary for the effective and efficient performance of any of its functions or the exercise of its powers.

After the municipal council approves the budget, the Budget and Treasury Office (BTO) ensures that each director within the municipality manages their own budget. On a weekly basis cash flow plans as well as expenditure plans are distributed amongst directors to avoid over expenditure on budget votes. Councillors also play an oversight role due to the fact that expenditure reports are tabled to the council on a quarterly basis.

2. Three (3) municipalities reported in line with Section 32 of Local Government Municipal Finance Management Act, expenditures to MEC: Cooperative Governance, Human Settlements and Traditional Affairs in Northern Cape in the last financial year. The municipalities which reported are Tsantsabane Local Municipality, Sol Plaatjie Local Municipality and ZF Mgcawu District Municipality.

 (a) Municipalities do not report regularly to the Province on unauthorised, irregular or fruitless and wasteful expenditure. Such expenditure is reported to council and the necessary steps are taken to recover the losses. The actual amount of unauthorised, irregular or fruitless and wasteful expenditure can only be determined at the end of the municipal financial year. Municipalities also reports to the National Treasury on a monthly basis in line with Section 71 of the Local Government Municipal Finance Management Act, Act 56 of 2003.

 (b) Municipal Councils have the responsibility to recover monies from the responsible directors and political office bearers. In addition, where political leaders and senior officials are found to have ignored their mandates or disregard legislation, the Code of Conduct for Political Leaders and the procedures provided for in the Municipal Systems Act, 2000 (Act No 32 of 2000), as amended are invoked, respectively. Members of the Executive Council (MECs) have been sensitized on the matter and were urged to take the necessary steps to apply the said provisions, as and when required.

Reply:

(a) Vhembe District Municipality has been identified as one of the municipalities that is supported in terms of Back to Basics programme. Support that is currently provided by the department includes filling of vacant senior management positions, namely: (1) Municipal Manager; (2) Director: Community Services; and (3) Director: Technical services.

(b) According to the information received from the Limpopo Provincial Department of Cooperative Governance, Human Settlement and Traditional Affairs, the Vhembe District municipal council resolved that the employment of the municipal manager should not continue as she refused to sign an employment contract. The Council indicated that the terms of the employment contract which the municipal manager refused to agree with are reasonable and in the best interest of the municipality. The department is in the process of seconding an acting municipal manager as requested by the municipal council.
 

Reply:

The following information is provided by South African Revenue Service (SARS):

1. (a)(b)
   Yes, the South African Revenue Service is mandated and as such do perform Enforcement and Criminal Investigations.

(i)(aa)(bb)(aaa)(bbb)

Within the current SARS structure there are Group Executives responsible for the investigative capacity. These Group Executives report directly to respective Chief Officers.

(ii)(aa)(bb)(aaa)(bbb)(aaaa)(bbbb)

There are currently 1599 Enforcement Auditors who conduct enforcement investigations, and 381 Criminal investigators. They range from junior investigators to Senior Specialist investigators.  Unfortunately we cannot provide names of these officials for their safety due to the nature of their work.

(2)(a)(b)

In terms of the SARS Act no. 34 of 1997 the South African Revenue Service is legally mandated and authorised to conduct Enforcement Investigations (investigative audits) and Criminal Investigations in pursuit of its mandate to collect all moneys due to the fiscus and to combat non-compliance and tax evasion. Moreover, the SARS Act makes the Commissioner, as chief executive officer, responsible in particular for the formation and development of an efficient administration and the effective deployment and utilisation of staff to achieve maximum operational results.

Furthermore in terms of the Tax Administration Act no. 28 of 2011 under Chapter 5, Part A and B, SARS is mandated to perform such investigations.

Reply:

(1) How many (a) direct and (b) indirect jobs respectively have been created in the tourism industry in (i) 2013, (ii) 2014 and (iii) 2015 respectively;

(a) Direct contribution to jobs

The latest figures available from Statistics South Africa (StatsSA) are provisional figures for 2014. Estimates from the World Travel and Tourism Council were used to report on 2015.

Job Creation	2013	2014	2015 estimate
Direct Jobs	655 587	680 817	705,600

Source: 2013 and 2014: Tourism Satellite Account, StatsSA. 2015: WTTC 2015 estimates.

(b) Total contribution to employment (direct and indirect)

It should be noted that StatsSA does not measure the total contribution of tourism to employment (direct and indirect contribution). Figures and estimates from WTTC were used to report on this indicator. However, WTTC does not release figures on the indirect contribution alone, therefore figures reported below is for total contribution which includes both direct and indirect contribution.

Job Creation	2013	2014	2015 estimate
Total contribution to employment (Direct and indirect)	1 437 500	1 497 600	1 551 400

Source: WTTC

(2) how much did tourism contribute to the country’s gross domestic product during (a) 2013, (b) 2014 and (c) 2015 respectively

It should be noted that the contribution of tourism to GDP is reported for direct as well as for total contribution (direct and indirect). StatsSA only measures the direct contribution to GDP and the latest figures available are 2014 provisional figures. Therefore figures reported below for direct contribution in 2013 and 2014 were sourced from StatsSA. WTTC estimates were used to report on the direct contribution to GDP for 2015 as well as the direct and indirect contribution from 2013 to 2015.

Contribution to GDP	2013	2014	2015 estimate
Direct	R101,7 billion	R111,6 billion	R117,8 billion
Direct and indirect	R345,7 billion	R357,0 billion	R369.3 billion

Source: Source: 2013 and 2014: Tourism Satellite Account, StatsSA. 2015: WTTC 2015 estimates.

(3) International tourist arrivals

Airport	2013	2014	2015
Cape Town International Airport	461,186	524,131	557,050
OR Tambo International Airport	2,656,222	2,001,365	1,932,096
King Shaka International Airport	35,920	38,449	37,162

Source: Statistics SA

Reply:

Thus far, responses have been received from three Metropolitan Municipalities, namely; Buffalo City, Nelson Mandela Bay and City of Cape Town. We are still awaiting responses from the other 5 Metropolitan Municipalities.

The responses below are from the 3 Metropolitan Municipalities mentioned above:

( 1 ) The three Metropolitan Municipalities stated that all Councillors of their municipalities are required to declare their financial interest.

( 2 ) The three Metropolitan Municipalities stated that the financial interest of the Councillors are made available to the public.

The table below illustrates the response per municipality:

Metropolitan Municipality	Method of publication of Financial interest of the Councillors
Buffalo City	The Annual Report of the municipality
City of Cape Town	The website of the municipality.
Nelson Mandela Bay	The Declaration of Interest form consists of two categories, of which only category B is made available for public scrutiny, in line with Council resolution. The financial interest of the Councillors' are published in Council agendas, public libraries throughout the Metropolitan area and hard copies are made available at Council meetings.
City of Johannesburg	Awaiting response from the municipality.
City of Tshwane	Same as above.
Ekurhuleni	Same as above.
eThekwini	Same as above
Mangaung	Same as above

Reply:

According to the report compiled by the National Treasury in terms of section 71 of the MFMA, as at September 2015, the categories of debtors set out below have arrears on electricity and other services including sewerage, refuse removal and water. The debtor amounts reflected below are exclusive of interest.

1. (a) Individuals

Service	Arrears on service fees excluding interest (R ‘000)
Electricity	R3,772,823 billion
Any other services (excluding property rates)	R20,110,377 billion

(1) (b) Businesses

Service	Arrears on service fees excluding interest (R ‘000)
Electricity	R5,102,455 billion
Any other services (excluding property rates)	R2,983,647 billion

(1) (c) Sate Institutions

Service	Arrears service fees excluding interest (R ‘000)
Electricity	602,587 million
Any other services (excluding property rates)	989,179 million

2. My department, in consultation with other stakeholders, has taken various initiatives to curtail the non-payment of municipal arrear debt. These initiatives include auditing and verification of the outstanding government debt, the verification entails confirming whether invoices that are contested by government departments are correct. The team is also ensuring that municipalities have enforceable credit control policies and by-laws.

I will consider whether or not to make a statement in due course.

Reply:

(1) (a) Eskom has issued nine public notifications of partial disconnection of electricity supply by 31 December 2015. (b) There are no municipalities that have received notices from the Waterboards due to non-payment.

(ii)The following municipalities are affected have been issued with disconnection notices by Eskom. The detailed breakdown of debt owed by each is illustrated in the table below:

PROVINCE	MUNICIPALITY	TOTAL DEBT OWED R’000 (Million)
Eastern Cape	Gariep	R56.8
	Maletswai	R59.2
	Nxuba	R43
	Ikwezi	R13.9
Northern Cape	Kha-ima	R5.7
	Dikgatlong	R23.1
	Ubuntu	R16.8
	Thembelihle	R22.7
	Magareng	R17.5

(iii) Aligned to the approach taken by the Department of Cooperative Governance and Traditional Affairs, (COGTA) Public Enterprises (DPE) and SALGA, Eskom in conjunction with the national task team is visiting affected municipalities, as well as those that were disconnected in December 2015 and January 2016. The objective is to assess the challenges faced by the municipalities and provide Eskom with the opportunity to enter into sustainable payment arrangements.

(2) I have not yet considered an intervention in the defaulting municipalities, in terms of section 139(5) of the Constitution, the power to intervene in municipalities rests with the relevant provincial executives. It is only when a provincial executive cannot or does not adequately exercise the powers or perform the functions referred to in subsection (5) that the national executive is permitted to intervene in a municipality.

Reply:

The following information is provided by South African Revenue Service (SARS) and cannot be verified by the Minister:

It is not within the SARS mandate to administer such activities directly.

(a)(b)(i)(ii)(aa)(bb)(cc) With the information at SARS disposal no such requests were made or approved either directly by SARS or indirectly through a third party.

Reply:

1. Yes, Minister Gordhan attended formal WEF meetings. He also attended a number of bilateral meetings with his international counterparts, prominent economists and business people to discuss challenges facing the South African economy and steps being taken by government to build confidence.

    (a) Minister Gordhan attended seven formal meetings. They were:

    (b) (1) South Africa Briefing

A round table discussion with South African Investors, civil society and heads of corporate South Africa.

(2) South Africa Issue Briefing: South Africa’s Economic Outlook

Televised one-on-one session with Minister Gordhan on South Africa’s Economy moderated by Oliver Cann; attended by local and international media. The following is a link to the interview: http://www.weforum.org/events/world-economic-forum-annual-meeting-2016

(3) Press Conference: How can we finance the Sustainable Development Goals?

Other Speakers: 

• Georg Schmitt, 
• Chrystia Freeland, 
• Bertrand Badre

See: https://webcasts.weforum.org/widget/1/davos2016?p=1&pi=1&ms=1&th=2&s=w

(4) Productivity growth slowdown in the age of the fourth industrial revolution.

A round table discussion with the following experts:

• Alicia Bárcena Ibarra, Executive Secretary, United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Santiago
• Douglas W. Elmendorf, Dean, Harvard Kennedy School, Harvard University, USA
• Ian Goldin, Professor of Globalization and Development, and Director, Oxford Martin School, University of Oxford, United Kingdom
• Edmund S. Phelps, Director, The Center on Capitalism and Society, Columbia University, USA Nouriel Roubini, Professor of Economics and International Business, Leonard N. Stern School of Business, New York University, USA
• Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA
• Bruno Sánchez-Andrade Nuño, Data Scientist, Innovation Labs, World Bank, Washington DC
• Arun Sundararajan, Professor of Business; Rosen Faculty Fellow, New York University, USA
• Rodrigo Valdés Pulido, Minister of Finance of Chile

(5) Business Interaction Group on South Africa

A closed session in which Government briefed South African Business and International Investors on the South African economy; followed by a question and answer session. Government was represented by the President, and Ministers Gordhan, Davies, Patel, Motsoaledi and Radebe.

(6) Accelerating Access to Capital

Minister Gordhan was a discussion leader in the above mentioned session with the following experts:

• Bambang Brodjonegoro, Minister of Finance of Indonesia
• Thomas Finke, Chairman and Chief Executive Officer, Babson Capital, USA
• Adena Friedman, President, Global Corporate and Information Technology Solutions, NASDAQ, USA
• Ben J. Kruger, Joint Executive Officer, Standard Bank Group, South Africa
• Michael Drexler, Head of Investors Industries, Member of Management Committee, World Economic Forum
• Alison Tarditi, Chief Investment Officer, Commonwealth Superannuation Corporation, Australia

(7) Africa’s Next Challenge

Minister Gordhan was a participant in this session.

Panelists were:

• Hailemariam Dessalegn, Prime Minister of Ethiopia
• Hans Vestberg, President and Chief Executive Officer, Telefonaktiebolaget LM Ericsson
• Akinwumi Ayodeji Adesina, President of the African Development Bank
• Yemi Osinbajo,  Vice-President of Nigeria
• Paul Kagame, President of Rwanda

2. The World Economic Forum presents an opportunity for government to interact with government, business and civil society leaders from around the world. South Africa uses the Forum to advance its national interests in areas of Foreign Direct Investment, building investor confidence, cooperation with other national governments and best practices in policy development. For the Ministry and the department, building investor confidence and assuring the markets of our commitment to fiscal discipline and economic growth was a key objective in Davos in 2016.

Minister Gordhan’s presence at WEF Davos in 2016 was especially important after the change in leadership in the Ministry of Finance in December 2015. In numerous radio and television interviews, formal sessions, bilateral and other meetings, the Minister was asked to respond to questions on the future of the South African economy. The Minister’s discussions with business and investors centered on measures being taken by government to grow the South African economy; reasons why South Africa is a desirable investment destination and steps being taken to avoid a sovereign rating downgrade.

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 Moretele Local Municipality in North West, the turnaround times for payment of 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 Moretele Local Municipality the by-laws are reviewed every two years.

(c) The current assessment did not consider the administration costs. But the reduction of Red Tape in each of the identified areas will lead to the reduction of costs in of turnaround times, improvement of communication on compliance will also reduce costs experienced by SMMEs.

2. Some of the examples that can be referred to regarding how the red tape has been reduced include: The establishment of the Moretele call centre to receive, capture and provide status report on general community queries.

Reply:

Please find here: Reply

Reply:

(1) Sections 51, 52, 53 and 54 of the Financial Management Parliament and Provincial Legislatures Act, 2009 (Act No. 10 of 2009), as amended (herein called “the Act”), took effect on 19 April 2009. The Act was amended by the Financial Management of Parliament Amendment Act, 2014 (Act No. 34 of 2014), which took effect on 1 April 2015. The mentioned sections of the Act were not amended by Act No. 34 of 2014.

(2) The Act does not confer authority on the National Treasury to grant exemptions from compliance with any of its provisions to Parliament. The National Treasury is not seized with the administration of the Act and ensuring compliance with its provisions. Sections 51 to 53 of the Act impose obligations on the Accounting Officer of Parliament, i.e. the Secretary to Parliament, while section 54 of the Act imposes obligations on the Executing Authority of Parliament, i.e. the presiding officers of the National Assembly and the National Council of Provinces, acting jointly, and also on Parliament. The oversight mechanism envisaged in section 4 of the Act is tasked with maintaining oversight of the financial management of Parliament.

 

Reply:

Yes, the response with respect to each metropolitan municipality is as reflected in the tables below.

Given that the granting of rate rebates is one of the three instruments municipalities utilise in granting relief to property owners, for completeness we have included information pertaining to the granting of reductions on the market values of properties and exemptions where applicable. This is because municipalities use any combination of these three relief measures (according to their individual preference). Thus, by merely looking at only one of these three relief measures in isolation of the other two, one cannot get a full picture as to how each metropolitan municipality approaches the issue of granting relief to property owners.

The information below is sourced from municipal rates policies and other relevant municipal budget related documents which contain detailed information (such indigent policies and resolutions levying rates), and therefore this response does not provide all detailed information (e.g. with respect to criteria) as reflected in those documents because to do so would amount to duplicating information in those municipal documents which are ordinarily published in municipal websites for any interested person to obtain detailed information without the risk of these being summarised by someone else (as is the case now by the Department) in a manner which can fail to do justice to those detailed public documents.

Buffalo City

Rebates

(a) The elderly: (i) Criteria Be the owner of a property categorized as residential Occupy the property as his/her primary residence Must apply for the rebate Must be in receipt of gross monthly income (excluding medical contributions) not exceeding R10,500.00 from all sources including income of spouse Must be at least 60 years of age on 1 July of the financial year concerned, and If the applicant turns 60 in that financial year the rebate will be granted on a pro rata basis from the date on which the applicant turns 60 (ii) Relief in each specified case 100% rebate : Income R0 - R3000 85% rebate : Income R3001 – R4500 70% rebate : Income R4501 – R6000 55% rebate : Income R6001 – R7500 40% rebate : Income R7501 – R9000 25% rebate : Income R9000 – R10500 (b) People with disability: (i) Criteria The first 4 bullets in (a) above applies Disabled persons must be in receipt of a disability grant and submit proof e.g. letter from SASSA (ii) Relief in each specified case Same as in (a) above. (c) Low income property owners: (i) Criteria The owner may not own any property in addition to the property in respect of which indigent support is provided Property of indigent household may be inspected annually to determine validity of application or indigency The property must be categorized as residential (ii) Relief in each specified case 100% rebate if the value of the property does not exceed R120, 000. (d) Other persons and/or organisations: 1. Newly developed commercial/industrial properties (i) Criteria The property must be categorized as commercial/industrial in the valuation roll The property must be developed The value of the development must be R50,000,000.00 or above (this requirement does not apply to East London Industrial Development zone property owners). (ii) Relief in each specified case Rebate is phased out over a period of 5 years Year 1 – 50% Year 2 – 40% Year 3 – 30% Year 4 – 20% Year 5 – 10%, thereafter, full rates will be payable 2. Differential rebate (i) Criteria Areas where some or all of the services are not offered by the municipality (ii) Relief in each specified case Water – 22.50% rebate Electricity – 15.00% rebate Sewerage – 15.00% rebate Refuse – 7.50% rebate Constructed roads – 15.00% rebate 3. Public Benefit Organisations (PBOs) (i) Criteria Various properties owned by PBOs, for example, used exclusively as a home catering for persons with disabilities, a hospital, clinic, metal institution, frail care centre, orphanage, old age homes or any other benevolent institutions, provided that any profits from the use of such properties are used entirely for the benefit of the institution. (ii) Relief in each case May qualify for 100% rebate on application.

Exemptions

The following properties are exempted from rating: Municipal owned properties non-rateable Religious or places of places of public worship and special property (e.g. museums, libraries) Rural communal land

Ekurhuleni

Rebates	(a) The elderly: (i) Criteria Owner reached the age of 60 years or more Own property concerned which must be residential farm property used for residential purposes smallholdings used for residential purposes total monthly income from all sources including income of spouse of owner must not exceed an amount determined by the Council from time to time (see table below for amounts) Once-off application for the duration of valuation roll Not be in receipt of indigent assessment rate rebate Must reside permanently on the concerned property Property must consist of one dwelling only and no part thereof is sub-let (ii) Relief in each specified case Additional reduction of R150,000 of the market value of property Additional rebate based on household income: Average monthly earnings in respect of preceding 12 months Rebate in percentage on assessment rates R0.00 – R2,700.00 (2 x state pensions) 100% R2,700.01 – R5,250.00 85% R5,250.01 – R6,840.00 70% R6,840.01 – R8,470.00 55% R8,470.01 – R12,750.00 40%   (b) People with disability: 1. Disability grantees and/or medically boarded persons (i) Criteria Same as (a) above. (ii) Relief in each specified case Additional reduction of R150,000 of the market value of property Additional rebate based on household income: Average monthly earnings in respect of preceding 12 months Rebate in percentage on assessment rates R0.00 – R2,700.00 (2 x state pensions) 100% R2,700.01 – R5,250.00 85% R5,250.01 – R6,840.00 70% R6,840.01 – R8,470.00 55% R8,470.01 – R12,750.00 40% (c) Low income property owners Refer to reductions and exemptions below. (d) Other persons and/or organisations: 1. Natural disasters (i) Criteria Property damaged by a natural disaster as defined in terms of the Disaster Management Act, 57 of 2002 Apply to the Council (ii) Relief in each specified case Council may fully or partially suspend the levying or rates 2. Sporting bodies (i) Criteria Apply to be granted a rebate For purposes of amateur sport and any social activities which are connected to sport Subject to existing agreements between club and Council (ii) Relief in each specified case 90% rebate 3. Public and private schools, universities and colleges (i) Criteria Public schools which are state funded Private schools not funded in terms of South African Schools Act, 84 of 1996 and are registered as independent schools Universities Technical and other colleges (ii) Relief in each specified case Rebate on private (independent) primary and secondary schools is in accordance with percentage after net profit: Net profit after tax Rebate 0.00% – 10.00% 100% 10.01% – 20.00% 90% 20.01% – 30.00% 80% 30.01% – 40.00% 70% 20% rebate on private (independent) universities and colleges, registered as educational institutions not subsidized by state 100% rebate on crèches registered as educational institutions 4. Vacant unimproved land (i) Criteria Dwelling units being constructed which will be used for residential purposes Rebate granted for a maximum period of eighteen months from the date the approved building plan is supplied Occupation certificate be supplied at the end of the eighteen months period Failure to supply the occupational certificate will result in reversal of rebate already granted (ii) Relief in each specified case 75% rebate
Reductions	(a) The elderly, (b) people with disability, (c) low income property owners, (d) other persons and/or organisations (i) Criteria Residential property (ii) Relief in each specified case The first R150, 000 of the market value of property is deducted.
Exemptions	(c) Low income property owners: 1. Indigent households (i) Criteria Own residential property Apply to access the relief provided the combined household income of all occupants/ residents and/or dependents residing on the property and are over the age of 18 years, is less than two (2) state monthly pension grants. (ii) Relief in each specified case Exempted if property does not exceed maximum value of R150 000. 2. Child headed households (i) Criteria Headed by child and registered in terms of Council’s approved indigent policy Apply to access the relief provided the combined household income of all occupants/ residents and/or dependents residing on the property and are over the age of 18 years, is less than two (2) state monthly pension grants. (ii) Relief in each specified case Exempted if property does not exceed maximum value of R150 000. (d) Other persons and/or organisations   1. Public benefit organisation / non-governmental organization and cultural organisations (i) Criteria May be exempted from paying rates if fall within: welfare and humanitarian institutions animal welfare cultural Once-off application for the duration of valuation roll (ii) Relief in each specified case Exempted

eThekwini

Rebates	(a) The elderly: (i) Criteria Owner reached age of 60 years or more during financial year Own residential property concerned or property owned solely by either spouse The property being a primary residential Value of property must not exceed R3 million Apply for renewal of rebate annually (ii) Relief in each specified case A rebate not exceeding R3, 623 or such lesser amount (b) People with disability: 1. Disability grantees or medically boarded persons (i) Criteria Owner physically or mentally disabled Own residential property concerned or property owned solely by either spouse Reside in the property concerned Annually apply for a rebate (ii) Relief in each specified case A rebate not exceeding R3, 623 or such lesser amount (c) Low income property owners: 1. Child headed households (i) Criteria Property headed by a minor (person under age of 21) Property owned by terminally ill parent or a child or deceased estate of the parent Value of property must not exceed a value determined by Council at its annual budget Minors must reside permanently on the property Apply for renewal of rebate annually (ii) Relief in each specified case A rebate not exceeding R3, 623 or such lesser amount (d) other persons and/or organisations: 1. Life rights schemes and retirement villages/complexes (i) Criteria The scheme must be registered in terms of Housing Development Scheme for Retired Persons Act, 65 of 1988 The Scheme must be registered with and regulated by the South African Association of Homes for the Aged (SAHA) Title deeds of the property must be appropriately endorsed Apply for a rebate (ii) Relief in each specified case 25% rebate 2. Commercial accommodation (i) Criteria Owner of property must permanently reside on the property Bed and breakfast, guesthouses, and back-packers lodges must have a valid registration certificate issued by the Municipality Apply for a rebate annually (ii) Relief in each specified case 50% rebate for bed and breakfast 25% rebate for guesthouses Rebate not exceeding 50% for backpacker lodges, holiday accommodation and student accommodation with up to 40 beds available Rebate not exceeding 25% for backpacker lodges, holiday accommodation and student accommodation with up to 80 beds available 25% rebate for property let-out for purposes of holiday accommodation for reward 25% rebate for property let-out for purposes of student accommodation (learners of higher education and above) 3. Schools not for gain (i) Criteria The schools not for gain on the business and commercial category Use of land or buildings, or any part thereof shall not be for the private pecuniary benefit of any individual whether as a shareholder in a company or otherwise Apply for a rebate (ii) Relief in each specified case 50% rebate 4. Natural and other disasters (i) Criteria Property damaged by a natural disaster as defined in terms of the Disaster Management Act, 57 of 2002 Property damaged by causes other than that defined by the Disaster Management Act, 57 of 2002 and such damage renders the property uninhabitable Damage to property caused by arson is excluded Apply for a rebate (ii) Relief in each specified case 75% temporary rebate for a period of six months or a portion thereof Thereafter, a further 75% temporary rebate for a period not exceeding six months 5. Economic development (i) Criteria Developments as indicated in the Incentive Policy of Council Rebates shall be for defined period Developer shall be under contractual obligation to complete property within a defined period Apply for a rebate (ii) Relief in each specified case Green field development and brown field development receive rebates: Value of development R (Millions) Rebate on rates payable in percentage 0 – 50 15% 51 – 150 25% 151 – 300 50% 301 and above 65%
Reductions	(a) the elderly, (b) people with disability, (c) low income property owners, (d) other persons and/or organisations (i) Criteria Residential property (ii) Relief in each specified case The first R120, 000 of the market value for property exceeding R185, 000 (d) other persons and/or organisations 1. Vacant land (i) Criteria Land outside the urban development phasing line which is vacant (ii) Relief in each specified case Reduction of R30, 000
Exemptions	(d) other persons and/or organisations 1. Residential property with a value of up to R185,000 is exempted. 2. Public benefit organisations (i) Criteria May be exempted from paying rates if fall within: welfare and humanitarian institutions health care institutions animal welfare Schools and organisations for the mentally and physically challenged cemeteries heritage sites Use of land or buildings, or any part thereof shall not be for the private pecuniary benefit of any individual whether as a shareholder in a company or otherwise Apply for exemption (ii) Relief in each specified case Exempted 3. sporting bodies (i) Criteria Apply for exemption, and aapplicants must produce a tax exemption certificate issued by the South African Revenue Services (SARS) as contemplated in Part 1 of the Ninth Schedule of the Income Tax Act, 1962 (Act 58 of 1962). (ii) Relief in each specified case Rated on value of building area only The building area shall exclude change rooms and store rooms necessary for the sport.

City of Cape Town

Rebates	(a) The elderly: (i) Criteria Occupy the property as his/her primary residence Must be at least 60 years of age Must apply Must be in receipt of gross monthly household income not exceeding R12,000.00 The applicant and/or spouse and/or life partner should not be the owner of more than one property nationally (ii) Relief in each specified case 100% rebate : Income R0 – R3500 95% rebate : Income R3501 – R5000 90% rebate : Income R5001 – R6000 80% rebate : Income R6001 – R7000 70% rebate : Income R7001 – R8000 60% rebate : Income R8001 – R8500 50% rebate : Income R8501 – R9000 40% rebate : Income R9001 – R9500 30% rebate : Income R9501 – R10000 20% rebate : Income R10001 – R11000 10% rebate : Income R11001 - R12000 (b) People with disability: (i) Criteria Same as (a) above. (ii) Relief in each specified case Same as (a) above. (c) Low income property owners: (i) Criteria Same as (a) above. (ii) Relief in each specified case May qualify for 100% rebate. (d) Other persons and/or organisations: 1. Agricultural properties (i) Criteria Bona fide farming properties Contribute to the local economy Assists in meeting the service delivery and development obligations of the city Contribution to the social and economic welfare of farm workers Must apply for the rebate (ii) Relief in each specified case 80% rebate on the rate levied on residential properties 2. Nature reserves, special nature reserves and national parks (i) Criteria May apply for the rebate Private property contracted into the Table Mountain National Park in terms of the Protected Areas Act Private property exhibiting sensitive ecological areas/features, identified by the City’s Environmental Management Resources Department Owners of properties with formal in perpetuity conservation agreements of over 10 hectares (ii) Relief in each specified case May be granted a 100% rebate 3. Religious organisations (i) Criteria Property used primarily as an office of a religious organization Property used as parking facilities, halls used for religious purposes Accommodation for missionaries, camping sites not operated for gain and cemeteries for that religious community (ii) Relief in each specified case May be granted a 100% rebate 4. Non-Profit Organisations (NPOs)/ Public Benefit Organisations (PBOs) (i) Criteria Must have a constitution which does not preclude any resident of the City from being a member Must be open to the general public May apply for the rebate Be registered as NPOs under the Non-Profit Organisations Act or be PBO that qualify for tax exemption as contemplated by Part 1 of section 30 of the Ninth Schedule of the Income Tax Act Must be organisations with limited resources Health and welfare institutions Educational institutions National/Provincial/ Local Heritage Site /Historical Monuments Charitable institutions Cemeteries and crematoria Cultural institutions Museums, libraries, art galleries and botanical gardens War veterans organisations Youth development organisations Animal protection Sporting bodies Homeless people shelters Early childhood development (ii) Relief in each specified case May be granted a 100% rebate
Reductions	Criteria Residential properties Relief in each specified case Maximum reduction of up to R200,000.00 granted to every individually-valued residential property
Exemptions	Criteria Any private road or any other property where the market value of the property is equal to or less than R50,000.00

City of Johannesburg

Rebates

(a) The elderly: (i) Criteria Owner reached age of 60 years Own and occupy property concerned Value of property may not exceed R2, 000, 000 Apply to Council for the rebate (ii) Relief in each specified case 100% rebate if pensioner receives National Social Security Grant 100% rebate if pensioner is age 70 years and above irrespective of income 100% rebate if pensioner has gross monthly income below or equal to R7, 850 50% rebate if pensioner has gross monthly income above R7, 850 but less than or equal to R13, 458 (b) People with disability: 1. Emanating from injury (i) Criteria Must have been injured on duty serving: South African National Defence Force South African Policy Service Emergency Services Johannesburg Metropolitan Police Own and occupy property concerned Value of property may not exceed R2, 000, 000 Apply to Council for the rebate (ii) Relief in each specified case 100% rebate if pensioner receives National Social Security Grant 100% rebate if pensioner is age 70 years and above irrespective of income 100% rebate if pensioner has gross monthly income below or equal to R7, 850 provided pensioner is at least 60 years of age 50% rebate if pensioner has gross monthly income above R7, 850 but less than or equal to R13, 458 provided pensioner is at least 60 years of age (c) Low income property owners: 1. Extended social package (i) Criteria Apply to municipality every six months Own and occupy property concerned Property value not exceeding R450, 000 (ii) Relief in each specified case 70% rebate of current monthly rates when Johannesburg Poverty Index is greater than zero but not exceeding 34 points 100% rebate of current monthly rates when Johannesburg Poverty Index is greater than 35 points 2. State’s Social Security Grant (i) Criteria Own and occupy residential property concerned Owner is dependent on a State’s Social Security Grant in terms of Social Assistance Act, 59 of 1992 State’s Social Security Grant is their sole source of income (ii) Relief in each specified case 100% rebate 3. Child headed households (i) Criteria Property occupied by a household headed by a minor Value of property may not exceed R2, 000, 000 Property owned by terminally ill parent or a child or deceased estate of the parent Terminally ill parent or their child must apply annually for the rebate (ii) Relief in each specified case Rebate shall be maximum of 100% of the current monthly rates (d) other persons and/or organisations: 1. Heritage properties (i) Criteria Declared heritage site in terms of section 27 of the National Heritage Resources Act, 25 of 1999 Designated as protected areas in terms of section 28 of the National Heritage Resources Act, 25 of 1999 Designated as heritage area in terms of section 31 of the National Heritage Resources Act, 25 of 1999 Apply to Council for approval of rebate annually (ii) Relief in each specified case Rebate shall be maximum of 20% of the current monthly rates 2. Residential sectional title (i) Criteria High density residential development including sectional title units (ii) Relief in each specified case 5% rebate of the currently monthly rates 3. Protection of animals (i) Criteria Property registered in the name of any institution or organization which has as its exclusive objective the protection of animals Apply to Council for approval of rebate/exemption (ii) Relief in each specified case Rebate shall be maximum of 100% of the current monthly rates 4. Disaster areas (i) Criteria Property situated within an area affected by a disaster within the meaning of the Disaster Management Act, 57 of 2002 Apply to Council for approval of rebate (ii) Relief in each specified case Rebate shall be maximum of 100% of the current monthly rates 5. Vacant land (i) Criteria Land outside the urban development boundary which is vacant Rebate only available if property could not be developed due to unavailability of bulk infrastructure and/or bulk services Apply to Council for the rebate (ii) Relief in each specified case Rebate shall be maximum of 50% of the current monthly rates 6. Housing development schemes for retired persons (i) Criteria Properties owned by juristic persons that fall under the Housing Development Schemes for Retired Persons Act, 65 of 1988 as amended Owner of property shall pass on the benefits of the rates rebate to the registered holder/s of the right to occupation in the Scheme (ii) Relief in each specified case Rebate shall be maximum of 50% of the current monthly rates 7. Registered social landlords (i) Criteria Properties owned by individuals or entities designated as Registered Social Landlords under the Registered landlord Policy of the City (ii) Relief in each specified case 40% rebate on the current monthly rates where property is zoned for commercial use and is rated accordingly 8. New building incentive (i) Criteria New building development that would take place within the identified Corridors of Freedom in line with the Growth and Development Strategy 2040 Development must be in line with the development requirements set out by the City Proposed developments must follow all planning by-laws (ii) Relief in each specified case Property owner will pay a quarter of the rate as per the category of land for a period not exceeding two years during the construction Property owner will pay half the rates on the first year of operation as per the category of land 9. Private sports club (i) Criteria Owned by private sports club Used primarily for sporting purposes (ii) Relief in each specified case 40% rebate 10. Provision and/or promotion of youth development (i) Criteria Property registered in the name of any institution or organization which has as its exclusive objective the provision and/or promotion of youth development (ii) Relief in each specified case 100% rebate

Reductions

(a) The elderly, (b) people with disability, (c) low income property owners, (d) other persons and/or organisations (i) Criteria Residential property Properties used for multiple purposes, provided one or more components of the property are used for residential purpose (ii) Relief in each specified case The first R200, 000 of the market value of the property.

Mangaung

Rebates	(a) The elderly: (i) Criteria The property must be registered in the name of the applicant Must be at least 60 years of age Must occupy the relevant property In a case of a semi-detached house, of which a section is rented out, only rates paid for that section occupied by the owner is subject to rebates If the owner due to medical reasons had to take early retirement the age requirement of 60 years will not apply The property owner must apply (ii) Relief in each specified case The rebate on the first R250,000.00 of the rateable value for residential properties of qualifying senior citizens will only be applicable on properties with a value that does not exceed R2 ,000,000.00 (b) People with disability: (i) Criteria Same as (a) above. Must be in receipt of a disability pension from the Department of Welfare and Population Development (ii) Relief in each specified case The rebate on the first R250,000.00 of the rateable value for residential properties of qualifying disabled persons will only be applicable on properties with a value that does not exceed R2 ,000,000.00 (c) Low income property owners: (i) Criteria Occupy the property as his/her primary residence and must be registered as indigents in terms of the adopted indigent policy of the municipality The rebate will automatically apply and no further application is thus required (ii) Relief in each specified case May qualify for 100% rebate (d) Other persons and/or organisations: 1. Child headed families (i) Criteria The head of the child headed family must occupy the property as his/her normal residence Must not be older than 18 years of age Must still be a scholar or jobless Must be in receipt of a total monthly income from all sources not exceeding an amount to be determined by the municipality Must apply for the rebate (ii) Relief in each specified case May qualify for 100% rebate
Reductions	Disaster related matters Criteria Partial or total destruction of a property Disasters as defined in the Disaster Management Act Owner must apply Relief Maximum reduction of 80% Residential properties Criteria No requirement for lodging an application. Relief in each specified case In addition to the mandated first R15,000.00 of the market value of residential properties, and additional R55,000.00 reduction is applicable to all residential properties
Exemptions	Public Benefit organisations (PBOs) Criteria Property owned by public benefit organisations and used for any specified public benefit activity listed in item 1(welfare and humanitarian), item 2 (health care) and item 4 (education and development) of part 1 of the Ninth Schedule to the Income Tax Act Must apply PBO must attach a SARS tax exemption certificate issued by the South African Revenue Services Relief May be exempted

Nelson Mandela Bay

Rebates	(a) The elderly: (i) Criteria Be a natural person Be the owner of the property Occupy the property as his/her normal residence Must be at least 60 years of age on 1 July of the financial year concerned, or if the owner turns 60 during the year the rebate will be granted on a pro rata basis from the date on which the applicant turned 60 Submit pension statements Not be a receipt of an indigent subsidy Ensure that his/her accounts are not in arrears before applying for a rebate Be in receipt of a total gross annual income not exceeding R118,700 (ii) Relief in each specified case Rebate is based on the total annual household income 85% rebate : Income between two state pensions and R54,000 70% rebate : Income between R54,001 and R66,900 55% rebate : Income between R66,901 and R79,800 40% rebate : Income between R79,801 and R92,800 25% rebate : Income between R92,801 and R105,700 10% rebate : income between R105,701 and R118,700 (b) People with disability: (i) Criteria Same as (a) above. Must be in receipt of a disability grant/pension and submit proof and nature of disability, and submit SASSA statements with the application. (ii) Relief in each specified case Same as (a) above. (c) Low income property owners (i) Criteria The household income of applicants, from all sources, shall not exceed the equivalent of two State welfare pensions The applicant must be an account holder and must reside on the property in respect of which assistance is sought and must apply in person. The applicant must not own more than one fixed property within the metro (ii) Relief in each specified case A full credit for property rates. (d) Other persons and/or organisations: 1. Sporting bodies (Professional) (i) Criteria Property must be owned/leased for sporting purposes May be for gain and not-for -gain Profits earned must be invested in the betterment of the organization and not be for private gain Must apply for the rebate (ii) Relief in each specified case May qualify for 40% rebate 2. Social Housing (i) Criteria Property registered in the name of an institution accredited in terms of the Social Housing Act 16 of 2008 which provides or intends to provide rental of cooperative housing options for households with a gross monthly household income less than the maximum housing subsidy Accounts of the applicant must be up to date or arrangements must be made to pay outstanding balances before any rebate will be granted (ii) Relief in each specified case May qualify to be rated at the same rate as public benefit organisations in terms of the Rate Ratios Regulations Between Residential and Non-Residential Properties.
Reductions	None, and for properties affected by disasters, such properties are re-valued to get the revised their market values for rating purposes.
Exemptions	Sporting bodies (Amateur) Criteria Property must be owned/leased for sporting purposes May be for gain and not-for -gain Profits earned must be invested in the betterment of the organization and not be for private gain Must apply for the rebate Relief in each specified case May be exempted PBOs and Not For Gain institutions or organisations Criteria Must apply for the exemption Properties used exclusively as hospitals, clinics, mental hospitals, orphanages, retirement villages, old age homes or any other benevolent institutions Properties belonging to not-for-gain institutions (organisations) that perform charitable work Land used exclusively for cemeteries and crematoriums Properties owned by a declared institution in terms of the Cultural Institutions Act Museums, libraries, art galleries and botanical gardens registered in the name of private persons and open to the public Properties registered in the name of a trust/trusts and/or organisations as defined in the Social Aid Act Properties owned/used by youth organisations for the promotion and development of the youth Properties owned, or used by institutions or organisations the exclusive aim of which is to protect birds, reptiles, fish and animals not-for-gain Properties registered in the name of and used primarily as a place of public worship by a religious community Relief May be exempted

Tshwane

Rebates	(a) The elderly: (i) Criteria Owner reached age of 60 years or more during financial year Own residential property concerned Property concerned must be occupied only by the pensioner and his/her spouse, if any, and by dependents without income (ii) Relief in each specified case A further maximum/total rebate of 50% (on the remaining property rates, after the applicable residential rebates have been granted) if total gross income of the pensioner and/or spouse does not exceed an amount equal to twice the annual state pension (2 x R1,410 or 2 x R1,430 if older than 75) for a financial year A further maximum/total rebate of 40% (on the remaining property rates, after the applicable residential rebates have been granted) if joint income of the pensioner and/or spouse does not exceed R130, 000 for a financial year (b) People with disability: 1. Physically or mentally disabled (i) Criteria Owner physically or mentally disabled Own residential property concerned Property concerned must be occupied only by the pensioner and his/her spouse, if any, and by dependents without income (ii) Relief in each specified case A further maximum/total rebate of 50% subject to total gross annual social pension for a financial year, which amount may be reviewed during the City’s annual budget process A further maximum/total rebate of 40% if joint income of the pensioner and/or spouse exceeds an amount equal to twice the annual state pension (2 x R1,410 or 2 x R1,430 if older than 75) for a financial year, but does not to exceed R130, 000 for a financial year (c) Low income property owners: 1. Indigent households (i) Criteria Gross monthly income of all members of the household does not exceed the joint amount of two state old age pensions excluding child support grant and foster care grant Applicant as well as any other member of the household does not own other fixed property than one in which they reside (ii) Relief in each specified case 100% rebate 2. Owner temporarily without income: indigent criteria may be applied in terms of Indigent Policy of City of Tshwane (i) Criteria Same as indigent households above. (ii) Relief in each specified case 100% rebate (d) Other persons and/or organisations: 1. Grants-in-aid (i) Criteria Registered in the name of an institution or organization in terms of Non-profit Organizations Act, 71 of 1997 Hospitals, clinics and institutions for mentally ill person which are not operated with intention to make profit Cemeteries and crematoriums which are registered in the name of private persons and which are used exclusively for burials and cremations Museum, art galleries, libraries and botanical gardens which are registered in the name of private persons and which are open to public, whether admission is charged or not Rateable property registered in the name of a trustee or any organization which is being maintained for the welfare of war veterans as defined in section 1 of the Social Aid Act (House of Assembly), 37 of 1989 Sports grounds used for the purpose of amateur sport and any social activities which are connected with the sport Rateable property registered in the name of the Boy Scouts, Girl Guides, Sea Scouts, Voortrekkers or any organization which is in the opinion of the municipality similar or, any rateable property let by a municipality to any such organization Rateable property registered in the name of a declared institution as defined in section 1 of the Cultural Institutions Act, 29 of 1969, or the cultural Institutions Act (House of Assembly), 66 of 1989 Apply to Chief Financial Officer (ii) Relief in each specified case 100% rebate 2. Owners of land alienated by the municipality after January 2015 (i) Criteria Owners of land alienated by the municipality (ii) Relief in each specified case Rebates in terms of the Development Investment Incentive Policy of the City 3. Owners of catalytic investment properties (i) Criteria Owners of catalytic investment properies (ii) Relief in each specified case Rebates in terms of the Development Investment Incentive Policy of the City 4. Independent school (i) Criteria Application does not meet the criteria for Public Benefit Organisation property as defined Apply for the rebate (ii) Relief in each specified case 20% rebate
Reductions	(a) the elderly, (b) people with disability, (c) low income property owners, (d) other persons and/or organisations (i) Criteria Residential property (ii) Relief in each specified case First part of value of property up to R75, 000 of the market value
Exemptions	(d) Other persons and/or organisations 1. Public Service infrastructure 2. Places of public worship 3. Protected areas 4. State trust land

Reply:

Yes, all Ministers are subject to 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 government’s 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 website.

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

Reply:

1. IMPROVED SUSTAINABLE LIVELIHOOD OPPORTUNITIES FOR YOUNG PEOPLE IN SOUTH AFRICA

KEY PROGRAMME AREA 1: ECONOMIC PARTICIPATION
Strategic Objective 1.1.1	To enhance the participation of young people in the economy.
Objective statement	Assist and facilitate youth participation leading to improvement of livelihoods through NYDA grants as financial support and non-financial support interventions.
Justification	Youth Economic participation is a key challenge in the South African economy. The programme addresses this by enabling youth to acquire entrepreneurial skills, leading to sustainable self-employment, and creation of youth owned businesses.

 

KEY PROGRAMME AREA 2: EDUCATION AND SKILLS DEVELOPMENT
Strategic Objective 1.2.1	To facilitate and implement education opportunities in order to improve the quality education attainment for the youth
Objective Statement	The NYDA will place approximately 18,517 learners in education opportunities, these will be young people who want to re-write their matric.
Justification	An estimated 70% of matriculants fail or pass with marks that exclude them from enrolling with higher education institutions in the country; these young people require a second chance to improve their subject grades NYDA offers that opportunity to these young people. Some young people require financial assistance to enroll in higher education institutions; NYDA is also contributing to these young people so that they can pursue their educational careers in higher education institutions locally and abroad.
Strategic Objective 1.2.2	To facilitate and implement skills programmes
Objective Statement	To mobilise young people to : Participate in technical skills programmes Provide job preparedness, life skills and job placement support.
Justification	Youth skills development programmes provide an opportunity for young people to learn skills at the same time provide them with practical experience of applying their acquired skills whilst they are still on training. The programmes focuses on lower end skills required by local development economies such as artisans, community workers and auxiliary workers in various fields. In addition young people will be provided with job preparedness and life skills training and job placement support with the aim of sourcing job opportunities for these young people.

2. ENHANCED PARTICIPATION OF YOUTH IN SOCIAL COHESION TOWARDS NATION BUILDING

This outcome area is implemented though the following programme area:

 a) Health and Wellbeing

KEY PROGRAMME AREA 4: HEALTH AND WELLBEING
Strategic Objective 2.1.1	To provide health and well- being interventions to young people.
Objective Statement	To increase awareness on the healthy lifestyles that promote good health practices amongst the youth of South Africa, including dangers of substance abuse, unprotected sex, nutrition, sexual transmitted diseases and the impact of HIV Infection and Aids among young people in South Africa.
Justification	South Africa has a high substance (drugs, alcohol, smoking) abuse problem amongst the youth, have a very high HIV infection rate amongst the youth, have a high death rate due to injury and trauma amongst the youth, therefore the NYDA needs to contribute in national efforts to improve the health conditions of young people in the country.

3. ENHANCED ENABLING ENVIRONMENT THAT PROMOTES YOUTH DEVELOPMENT IN ALL SECTORS OF SOUTH AFRICAN SOCIETY

KEY PROGRAMME AREA 5: KNOWLEDGE MANAGEMENT
Strategic Objective 3.1.1	To create and produce information and knowledge for better youth development planning and decision making
Objective statement	Generate information and knowledge that inform innovation of project and programme implementation to all stakeholders
Justification	This objective will contribute in generating new evidence and information on how to better plan, review programme models and set relevant and realistic indicators for youth development in South Africa.
Strategic Objective 3.1.2	To Lobby Key Stakeholders to support and implement youth development programmes
Objective Statement	To lobby External stakeholders to provide support to and collaborate with the NYDA in delivering Youth Development Work.
Justification	To mainstream and integrate youth development across all sectors of society.
Strategic Objective 3.1.3	To create a platform for youth to participate and benefit from democratic processes
Objective Statement	To create a platform for young people to promote social cohesion.
Justification	To mainstream and integrate youth development across all sectors of society. The National Youth Service Programme will play a coordination role into ensuring that stakeholders and government institutions implementation National Youth Service Programme (including the private sector and CSOs)
Strategic Objective 3.1.4	To mobilise and leverage financial resources from key stakeholders
Objective Statement	To mobilise and leverage financial contributions from key stakeholders to implement programmes outlined in the NYDA ACT so as to increase the numbers of young people benefiting from youth development programmes in the country
Justification	To mobilise and leverage financial contributions from key stakeholders to implement programmes outlined in the NYDA ACT so as to increase the numbers of young people benefiting from youth development programmes in the country

4. DEVELOP AND ENHANCE A CREDIBLE AND CAPABLE AGENCY FOR YOUTH DEVELOPMENT

KEY PROGRAMME AREA 6: GOVERNANCE
STRATEGIC OBJECTIVE 4.1.1	To establish a credible, efficient and effective organisation in terms of the identified NYDA Governance identified areas
Objective statement	To ensure that all NYDA systems and process support NYDA products and services for effective service delivery
Justification	To ensure that all NYDA systems and process support NYDA products and services for effective service delivery. The following KPI’s will be not be measures after 2017/18 Financial Efficient and effective IT systems to support youth development Review of identified policies and processes for increased efficiency
Strategic Objective 4.1.2	To provide access to information and create awareness on youth development programmes.
Objective statement	Provide information and knowledge to all stakeholders and including the youth to inform youth development processes for policy, planning, implementation and review.
Justification	This objective will improve the access to critical up-to-date information and lessons that can be used in improving youth development programmes and interventions.

(2)

The jobs that are created through the grant programme fall under two categories, the first category is the beneficiary him/herself that is able to create self-employment through the receipt of the grant. The second category is where they create an additional job within the business. Verification of these jobs is through NYDA jobs verification template where the employee completes the template and signs it. Furthermore the NYDA performs aftercare visits to these business which enables the organisation to track performance of the business over time.

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 Buffalo City Metropolitan Council in the Eastern Cape, upgrading of traffic congestion measures of the Metro to help decrease traffic volumes as well as high accidents is the priority.

(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, the informal business by-laws are currently being reviewed including the enforcement.

(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 30 day payment and customer notification systems.

Reply:

No.

END.

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 Ephraim Mogale Local Municipality in Limpopo, the Department is to consider the procedures and systems in terms of payment of SMMEs within 30 days as the prioritised red tape issue.

(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, specific to Ephraim Mogale, by-laws related to small business promotion are currently being reviewed.

(c) The current assessment did not consider the administration costs. However, the reduction of Red Tape in each of the identified areas will lead to the reduction of costs of the turnaround times, improvement on communication on compliance and also reduce 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 the building plan approval processes. This also has a positive impact on reducing the costs experienced by small businesses related to building plans applications.

Reply:

NATIONAL TREASURY

(a) (i) 17%

(a) (ii) N/A.

ACCOUNTING STANDARDS BOARD

(b) (i) 85%

(b) (ii) 0%

CO-OPERATIVE BANKS DEVELOPMENT AGENCY

The Co-operative Banks Development Agency has utilised the National Treasury (NT) supply chain management unit (SCM) in relation to all its procurement matters due to not having sufficient resources to carry out this function independently.

DEVELOPMENT BANK OF SOUTHERN AFRICA

(i) The Development Bank of South Africa tracks data in line with the BEE scorecard and certificates. Hence, data is available pertaining to Black Owned, Black Women Owned; EME and QSE.

This analysis is based on spend data from 1 April 2015 to 24 February 2016.

Classification	Value	%
Total Spend	R 169,962,314	100%
EME Spend	R 16,828,529	10%
QSE Spend	R 17,331,976	10%

(ii) The Bank does not record details pertaining to co-operatives.

FINANCIAL INTELLIGENCE CENTRE

(b) (i) 9.72%

(b) (ii) 0%

 

FINANCIAL SERVICES BOARD

During the period 1 April 2015 to 31 December 2015 the Financial Services Board has disbursed approximately 20% to SMMEs for goods / services procured.

GOVERNMENT EMPLOYEES PENSION FUND

(b) (i) 36%

(b) (ii) 0%

 

GOVERNMENT PENSIONS ADMINISTRATIVE AGENCY

(b) (i) 10.63%

(b) (ii) 0%

INDIPENDENT REGULATORY BOARD FOR AUDITORS

(b) (i) 6.7%

(b) (ii) 0%

PENSION FUNDS ADJUDICATOR

(b) (i) 17.3%

(b) (ii) 0%

LAND BANK

(b) (i) 100%

(b) (ii) 0%

OFFICE OF THE OMBUD FOR FINANCIAL SERVICES PROVIDERS

(b) (i) 35%

(b) (ii) 0%

PUBLIC INVESTMENT CORPORATION

(b) (i) 21%

(b) (ii) 0%

SOUTH AFRICAN AIRWAYS

(b) (i) 2.29%

(b) (ii) 0%

SOUTH AFRICAN REVENUE SERVICES

(b) (i) 12%

(b) (ii) 0%

SASRIA

(b) (i) 6.93%

(b) (ii) 0%

TAX OMBUD

The Office of the Tax Ombud was established in terms of the Tax Administration Act 28 of 2011 and reports to the Minister of Finance. In terms of the section 15(4) of this Act the expenditure connected with the functions of the Tax Ombud is paid out of the funds of SARS. For this reason all procurement for this office follows SARS’ procurement procedure through SARS’s procurement structures.

The amount spent in the designated categories will vary among entities depending on the services and goods procured. However, I will direct each entity to more actively promote the role of SMMEs and Co-operatives in the procurement process.

Reply:

(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 Elias Motsoaledi Local Municipality in Limpopo, additional staff is allocated for the processing of invoices.

(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.

(c) The current assessment did not consider the administration costs. But the reduction of Red Tape in each of the identified areas will lead to the reduction of costs of turnaround times, improvement on communication on compliance will also reduce costs experienced by SMMEs.

(2) Some of the examples that can be referred to regarding how the red tape has been reduced include: improvement of building plans applications processes. This also has a positive impact on reducing the costs experienced by small businesses.

Reply:

An independent inquiry is not necessary, since the causes for poor performance of learners in the KwaZulu Natal, Limpopo and Eastern Cape provinces are fully understood, and an inquiry will not reveal any new findings. However, if the notion of the joint task team, referred to by the Honourable Mr Davis, emanates from the article in the Sunday Times, dated 6 March 2016, which stated that “The Department of Basic Education has called for a probe into the process used to standardise matric exam marks after last year's upward adjustment of scores in 30 subjects”, it needs to be stated that this is part of the mischievous reporting on the part of the Sunday Times, which may have created this idea that a joint task team was being established between the DBE and Umalusi. This information emanates from a leaked document that was prepared for a meeting of the Council of Education Ministers (CEM), where the reasons for the decline in the performance of the learners in the 2015 NSC examination was being discussed. On an annual basis the DBE together with the PEDs reviews the performance of learners in the previous examination, with a view to establishing improvement plans for the current year. However, for 2016, it was considered necessary to also engage Umalusi in a bilateral discussion to discuss the reasons for the drop in the performance in the 2015 NSC examination, given their quality assurance role. Hence, there is no task team established between the DBE and Umalusi, but as part of the DBE`s ongoing initiatives to improve learner performance, it will meet with the Quality Assurance Council, Umalusi, on this matter.