Questions and Replies

Reply:

There has been no attempt to persuade the Minister of Finance to establish a Tourism Development Fund. The tourism development aspects raised in the question are funded through existing funding mechanisms in the department provided for by the National Treasury within the current appropriated budget. These include inter alia the Tourism Incentive Programme (TIP), the Social Responsibility Implementation (SRI) Programme and the Strategic Partners in Tourism initiative.

Reply:

It is the duty of the political parties to ensure that their voters turn out to vote on Election Day.

Reply:

(1) Buffalo City Metropolitan Municipality (BCMM) was allocated R713.1 million for the 2015/16 financial year and R285.3 million was transferred to the municipality on the 9th of July 2015. The municipality spent an amount of R69.1 million on Urban Settlements Development Grant (USDG) programmes as outlined in the table below as at 30 September 2015. The National Department of Human Settlements is therefore not aware of any funds allocated to BCMM in the 2015-16 financial year that have been utilised for activities or programmes or purposes for which they were not intended.

The departmental information is that the funds were budgeted and spent for the purposes which are illustrated below as at 30 September 2015:

(2) The department has utilises the USDG Framework and Division of Revenue Act No.1 of 2015 to regulate the use of its grants. The Grant Framework and the USDG Policy clearly outlines and guides municipalities on the scope of the utilisation of the USDG and this includes:

• Increase in bulk infrastructure capacity
• Increase in the basic services to poor households, specifically in informal settlements, including water, sanitation, electricity, refuse removal and transport access
• Increase in land provision for informal settlement upgrading, subsidy housing, or mixed use development in support of catalytic projects
• Increase in access to socio-economic amenities
• Improved dwelling unit densities within an improved spatial integration framework

The Division of the Revenue Act Section 17 (1) states that “despite anything to the contrary in any other legislation, an allocation referred to in Schedules 4 to 7 may only be utilised for the purpose stipulated in the Schedule concerned and in accordance with the applicable framework section”. Section 18(1) states that “a transferring officer may withhold the transfer of a schedule 4 or 5 allocation or any portion thereof, for a period not exceeding 30 days if (a) the province or municipality does not comply with any provision of this Act.

It is to be noted that in terms of relevant procedure, the Auditor-General also audits expenditure and application of grants by Provinces and Municipalities and these reports are provided to the Department and will be used take corrective action if there is misuse of the grants.

The Department through its Financial and Monitoring and Evaluation units also undertake quarterly visits as well as quarter review sessions with municipalities and provinces, and these also present the Department with an early warning opportunity if there is inappropriate use of grants.

(3) No. However, the Honourable member is encouraged to provide me with details regarding his area of concern.

Reply:

(1)(a) According to the Correctional Services Act, Act 111 of 1998 offenders sentenced to life incarceration before 1 October 2004 had to serve a minimum detention period of 20 years before being eligible for consideration for placement on parole. However, on 15 July 2011 the North Gauteng High Court handed down a judgment in the Van Wyk case which had the effect to change the minimum detention period for offenders sentenced to life incarceration before 1 October 2004 prior to them being eligible for consideration for placement on parole. The implication was that the previous credit system was also applicable to those offenders sentenced to life sentences from 1 August 1993 up to 30 September 2004 and after allocation of the maximum number of credits advanced their consideration dates from 20 years to 13 years and 4 months.

(1)(b)(i) & (ii) Section 63 of the Correctional Services Act, Act 8 of 1959; and section 136 of the Correctional Services Act, No 111 of 1998 determines the minimum periods of sentence that must be served before consideration may be given for possible placement.

(2) The mentioned offender was sentenced to life imprisonment on 11 January 2002 and is eligible for consideration for possible parole. However, parole applications are submitted in accordance with and in compliance to section 42(2) (d) of the Correctional Services Act, Act 111 of 1998, as amended. As soon as the requirements of the aforementioned section are complied with, the Case Management Committee will submit the profile report to the Correctional Supervision and Parole Board (CSPB). The CSPB will then make a submission to the National Council for Correctional Services for a recommendation to the Minister.

(3) See (2) above

(4) See (2) above

Reply:

(a) My understanding of red tape is that it is bureaucratic delays in the administration processes that impede and hamper service delivery. We have simplified all business processes for the work of my Department in order to have swifter turnaround times for example, processing of water use licenses. We have reduced the turnaround times for decision makers with regards to Supply chain processes for bid evaluation and bid adjudication processes.

Refer below for response from Entities:

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Reply:

The Department of Home Affairs does not have information about this alleged appeal. A request from an organisation such as Cage Africa to the South African government should follow proper channels and be submitted through the Department of International Relations and Cooperation (DIRCO).

Reply:

(1) I wish to advise the Honourable member that the legal responsibility for recovering monies belonging to government and which have been misappropriated lies with the heads of the provincial departments affected. This recovery can be done once an investigation has established legal liability on the part of the relevant contractors and officials. The details that the Honourable member seeks cannot be provided at this stage because the SIU submits its reports to the President in terms of the SIU Act. My department has not received a copy of the reports. A proper assessment will be conducted once the full reports have been received. In the meantime, the SIU has advised my department that an estimated amount of R747 530 961. 75 has been identified by the SIU as the amount that can be considered by the affected provincial departments recoverable from the liable contractors and/or officials. The SIU further advises that those departments have been informed of their options regarding these matters.

(2) (a) The SIU advises that it has referred a total of thirty-two (32) cases against implicated individuals and/or entities, that are not state owned entities or employed by the state, to law enforcement agencies, for criminal investigation and possible prosecution. It does not have further details of progress in that regard

(b) (i) & (ii) The SIU has further referred a total of thirty-five (35) cases against implicated government officials to law enforcement agencies, for criminal investigation and possible prosecution.

(3) (a) The SIU has further advised that it has finalised 30 investigations in respect of 91 low cost housing projects.

(b) One investigation in respect of a subsidised housing project in the Western Cape has not yet been completed, as the services of a Quantity Surveyor has had to be procured to conduct a value-for-money exercise in respect of this subsidised housing project, to complete the investigation report.

Reply:

Yes, the National Treasury has formally written to all national and provincial departments who have outstanding debts with municipalities. Please note that the notification was done through a letter by the Director-General: National Treasury who wrote to all Directors-General on 21 July 2015 conveying the message and I reiterated the matter with correspondence on 13 August 2015 to all the executive authorities alerting them of the arrears owed to municipalities.

It is important to understand that the process of addressing these unsettled accounts is being co-ordinated through the President’s Co-ordinating Council (PCC), where Premiers of provinces, Cabinet Ministers, and Accounting Officers of departments have committed to directly address the issue and give regular feedback to the PCC. The written communication from the National Treasury to departments and provinces is part of this high-level process.

The Section 71 of Municipal Finance Management Act (Act No. 56 of 2003) report for June 2015 shows that various departments owed municipalities as per the table below.

Table 1: Age analysis of debt owed to municipalities by National Departments

Section 71 of Municipal Finance Management Act (Act No. 56 of 2003) for June 2015 see the link: http://www.pmg.org.za/files/RNW4066-151210TABLE.docx

Section 71 of Municipal Finance Management Act (Act No. 56 of 2003) for June 2015 see the link: http://www.pmg.org.za/files/RNW4066-151210TABLE.docx

(a) All departments listed above were written to by the Minister of Finance on 13 August 2015.

(b) At the time of writing, the following debts were owed to municipalities by national departments amounted to R1.7 billion and provinces owed R2.5 billion.

(c) In addition, the report shows that a majority of the debt has been outstanding for more than 90 days.

(d) The Department of Public Works has initiated a process to verify the outstanding amounts owed by government in order to resolve problems with contested bills. This process is being undertaken to ensure that all outstanding amounts reported by municipalities are legitimately due by the named departments and to correct any undue errors. This process of verification is a work-in-progress and the outcome is not yet available. The report will also indicate a more accurate picture of progress made with payments of outstanding amounts by departments and province.

(e) Once the outcome of the work done by Public Works is made available, this will inform the actions to be taken.

Reply:

1. The Chairperson of the Municipal Demarcation Board (MDB) wrote to the Minister of Finance on 16 March 2015 requesting the National Treasury to provide the MDB with inputs on a number of matters including a definition of municipal viability, indicators to measure viability and an analysis of the potential impact of each of the proposed boundary re-determinations.

In reply to the specific questions asked:

(i) No date was specified for the requested information to be provided to the MDB.

(ii) The Municipal Demarcation Board published notices in provincial gazettes in early July 2015 formally announcing the details of proposed re-demarcations that they were consulting on. The National Treasury conducted a thorough analysis of these proposals and the Minister of Finance wrote to the Chairperson of the MDB on 6 August 2015 to provide the Board with the information requested.

(iii) National Treasury did not make recommendations to the MDB. The inputs submitted provided information on the affected municipalities and analysis about potential impacts of the proposed boundary redeterminations, noting that in advance of the actual implementation of the proposals it is not possible to know with certainty what the impact will be. This information was provided, at the request of the MDB, to contribute further to the information on which the Board made its decisions.

2. The report compiled by the National Treasury and submitted to the MDB explored a number of different aspects of municipal viability that could be affected by boundary redeterminations. These included financial viability, institutional viability, economic viability and service delivery viability. Again, no recommendations were made to the MDB.

Reply:

1. Yes, the Correctional Supervision and Parole Board considered the mentioned offender and his profile report was received by Head Office during September 2015 and submitted it to the National Council for Correctional Services (NCCS). As soon as the recommendation of the NCCS is available, it will be submitted to the Minister for consideration.

(2)(a) & (b) See (1) above.

(3)(a)&(b) The offender was not denied to be considered for possible parole placement by the (a) Minister and (b) Correctional Supervision and Parole Board.

(3)(i) & (ii) Parole applications are submitted in accordance with and in compliance to section 42(2) (d) of the Correctional Services Act, Act 111 of 1998, as amended. Amongst others, during the said period the offender did not participate in Victim Offender Dialogue and the Department in collaboration with the offender was in the process of tracing his victims. Furthermore, his support system was also not positively confirmed.

Reply:

There are no records of any investigation pertaining specifically to the entity in question at any of the DPCI Components.

Reply:

(a) Three (3) sectors.

(b) SECTOR 1: (Township), Jiyana, Isivana, Isishjetweni, Ibaxa, Welamlambo, Ethafeni

SECTOR 2: (Informal Settlement) Vusimuzi and hostels, Vusimuzi squatter camp, Enhlanzeni,Tembisa Plaza, Thiteng and Tembisa Taxi Rank, Mpho and Lekaneng.

SECTOR 3: (Township) Moedi, Khatamping, Endayini, Umnonjaneni, Esiqongweni, Entshonalanga, Umthambeka Ext 5, Umfuyaneni.

(c) The total population of Tembisa South policing area is 111 926. The population figures per sector is not available.

(d)

Reply:

The total costs incurred to date amounts to R1 717 351-52 calculated as follows:

Disciplinary hearing R1 088 193-54

Review of the disciplinary hearing (SAPS) R 226 062-00

Review of the arbitration (Maj Gen Booysen) R 403 095-98

TOTAL R1 717 351-52

Reply:

Visible policing in Vusimusi informal settlement is usually conducted by means of foot patrol mostly during the weekends. The 4 X 4 double cabs are also utilized to patrol the area.

Reply:

Due to the voluminous nature of the information requested, I would recommend that the member approaches the Chairperson of the Portfolio Committee on Defence and Military Veterans and request to have this information tabled in a meeting of the Portfolio Committee in one of their sessions in 2016

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

Due to the nature of the information that is required, SAPS is not able to provide the full details within the given time frame as some information is still being processed. A request is hereby made for an extension of time in order to SAPS to provide quality and correct information as soon as it is ready.

Reply:

This information has been requested from the Ekurhuleni Metropolitan Municipality and will be communicated to the Honorable Member when it is available.

Reply:

1. Yes
2. (a)(i) The process underway has been initiated by Armscor to test the market for information through the issuance of RFI (Request for Information).

At this stage Armscor has only done the RFI (Request for Information), depending on the findings from the RFI, the process can stop or be moved to the next step which will be a request for Offer (RFO).

(ii) Same as previous answer.

(b)(i) There is no specific amount allocated to the project, the request for information will assist in terms of the budget.

(ii) As above.

(c) This will dependent on whether we go ahead with the project in the first place. So far no such decision has been made.

3. The outcome of the findings will provide guidance on the way forward.

4. No statement will be made

DATE OF SUBMISSION: 07 DECEMBER 2015

Reply:

Due to the nature of the information that is required, SAPS is not able to provide the full details within the given time frame as the information is not readily available. A request is hereby made for an extension of time in order for SAPS to provide quality and correct information as soon as it is received.

Reply:

This information has been requested from the Ethekwini Metropolitan Municipality and will be communicated to the Honorable Member when it is available.

Reply:

This information has been requested from the metropolitan municipalities and will be communicated to the Honorable Member when it is available.

Reply:

1. I made the statement that the ANC comes first at an ANC Provincial Conference in my capacity as the President of the ANC. Since its founding in 1912 the ANC has been at the forefront of the struggles to defeat apartheid colonialism, and since its election into power in 1994, to liberate South Africans from the triple challenge of poverty, unemployment and inequality.

Like many South Africans, I joined the ANC to contribute to the achievement of its historic mission of building a non-racial, non-sexist, prosperous and democratic society. Given this important role that the ANC has played and still plays in leading this society towards the achievement of these goals, and considering that a large number of citizens have put their faith and hopes on the ANC to lead them to a better life for all, it is important that the work of building the ANC into a stronger organization that can continue to lead society is vigorously pursued.

There is therefore nothing wrong or untoward in saying the ANC comes first. It does not mean I love my country any less. It is in fact because of the love of my country and my commitment to its success that I believe that the ANC should be stronger so that it can lead us to a united and prosperous society.

2. The statement I made does not devalue the Constitution of the Republic in any way, nor does it contradict the Oath of Office which I took when I was sworn in as the President of the Republic of South Africa. There is therefore no reason to retract the statement I made.

Reply:

This information has been requested from Tlokwe Local Municipality and will be communicated to the Honorable Member when it is available.

Reply:

The question concerns matters that are currently before the Constitutional Court in the case of the EFF v the Speaker of the National Assembly and Others.   I cannot respond at this stage in deference to the courts.

Reply:

1. The Lead Entity has not been appointed yet because the Department is following due process.

(2)(a)(i) Current infrastructure roll-out is fragmented, it leads to duplication of efforts and resources, and also focuses on urban areas. Additionally, the roll-out of parallel and competing networks especially in rural areas is considered not feasible or viable because of the socio-economic profile of the rural areas and demand for services. The criteria for designating a Lead Entity took into consideration the extent of fibre infrastructure in the country and the national network scope and scale that can be leveraged to reduce the cost and distances to connect facilities to existing infrastructure. Furthermore, the entity should have the capacity to coordinate other State-Owned Entities (SOEs) in order to leverage and efficiently use State assets and investments to expedite broadband roll-out, particularly in rural areas, in a cost effective manner.

(ii) Refer to (i) above

(b) The appointment of the Lead Agency will be announced once the appointment process has been finalised.

Reply:

The information required is classified and the response to the above questions can be provided in a closed session of the Joint Standing Committee on Defence.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

This information has been requested from the Province and will be communicated to the Honorable Member when it is available.

Reply:

The general principle is that all political and other disputes should be resolved through discussion, negotiation, mediation, and other forms of non-adversarial dispute resolution mechanisms. We should only resort to the courts when these channels have failed. Parties should refrain from using the courts to resolve political disputes. Parliament has various mechanisms in place to resolve disputes between parties in terms of its Rules, and all parties should make optimal use of those Rules to resolve disputes.

Reply:

The information can be processed through the Portfolio Committee on Defence and Military Veterans in the new year, as the beneficiaries names are considered confidential.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

This information has been requested from the metropolitan municipalities and will be communicated to the Honorable Member when it is available.

Reply:

This information has been requested from the Mbombela Local Municipality and will be communicated to the Honorable Member when it is available.

Reply:

(1) (a) There are currently a total of 16 358 active reservists in the SA Police Service.

(b) There are currently a total of 2 031 active reservists in the SA Police Service in the Eastern Cape as on 13 November 2015.

(2) (a-c) The following number of reservists were in the SA Police Service in the Eastern Cape, as indicated per year in the table below:

Since 2006 a total of approximately 13 000 reservists were permanently employed in the South African Police Service, either as permanent members, security guards or Public Service Act members.

In addition, following the adoption of the voluntary nature of the new reservists system without any remuneration several reservists no longer reported for duty due to the fact that the primary reason for joining was to secure permanent employment in the South African Police Service and not to voluntarily serve their communities.

(3) No reservists have been recruited in the Eastern Cape since the beginning of 2015. The primary aim of the revised reservist system is to recruit quality reservists to establish a professional reservist system with integrity.

The posts for reservists in the Eastern Cape Province were advertised during March 2015, with the closing date of 13 March 2015. A total of 45 applications were received, all of which were not conforming to the set requirements to be enlisted as reservists in the South African Police Service.

(4) None of the current reservists in the Eastern Cape are being paid for services. The new reservist National Instruction provides for volunteers from the community to take responsibility for the safety of their communities as part of the Community Policing philosophy without any remuneration for services rendered.

However, the South African Reserve Police Service Amendment Regulations: No 36922 dated 15 October 2015, paragraph 5(1) to 5(3), determines that the National Commissioner may approve the call up of reservists to perform duties to achieve the objectives as referred to in Section 205(3) of the Constitution of South Africa, for which they may receive remuneration in accordance with the following predetermined scales:

Reply:

1. (a) On 13 October 2015, I made the following appointments: Statutory Directors (Director Military Judges, Directory Military Prosecutions, Director Military Defence Counsel and Director Military Judicial Reviews); Reserve Force Military Judges (2 Senior Military Judges and 4 Military Judges).

(b) Regular Force Military Judges will be appointed as soon as their secret security clearances are in place.

(2) (a) As indicated above, I have appointed Statutory Directors and Reserve Force Military Judges to deal with cases in the military justice system.

(b) Once vetting is completed of Regular Force Military Judges these appointments will further alleviate pressure on the system.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

1. The widespread incidents of violence and destruction of property during protests is a cause for major concern. I have spoken about this matter many times in public platforms. The violence in our society is inherited from the violence perpetrated during the apartheid system and the violence response it engendered.

There are studies that have been undertaken to understand factors that contribute to a culture of violence in our society. Some of the studies have been undertaken by organisations outside government. Others have been commissioned by government itself. For instance, a few years ago the Justice, Crime Prevention and Security Cluster contracted the Centre for the Study of Violence and Reconciliation to undertake research on the violent nature of crime in South Africa.

The critical step that we need to take is not so much to commission more studies because there is already some research that has been undertaken. What is important is taking steps to turn the tide against violent protests and the destruction of property.

2. There are various important initiatives government will implement to address the matter next year. These include educating society about the rights and responsibilities of citizenship. This education campaign about rights and responsibilities of citizenship is important considering that next year (2016) will be the 20th anniversary of the signing of the Constitution of the Republic by former President Nelson Mandela. It will also be the 40th anniversary of 16 June 1976 student uprisings.

Studies show that violence in our society affects mostly women and children. Government will use the year 2016, which is the 60th anniversary of the Women’s March to the Union Buildings to mobilise society against violence that is committed against women and children.

Other measures will be announced in due course.

Reply:

The President of the Republic of Sudan did not attend the Forum of China-Africa Cooperation Summit, (FOCAC).

Reply:

(1)(a) The rollout will commence after all preparations for implementation have been finalised.

(b) Refer to (a) above

(c) Refer to (b) above

(2) The National Treasury requested an implementation plan from the Department in order to release the funds.

Reply:

(1) (a) King James Advertising

(b) Advertising

(c) Quoted amounts for retainer fees and invoiced amounts did not correspond, invoiced amounts were much higher than quoted amounts

(2) The matter is being investigated

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE:

Reply:

This information has been requested from Tlokwe Local Municipality and will be communicated to the Honorable Member when it is available.

Reply:

This information has been requested from Tlokwe Local Municipality and will be communicated to the Honorable Member when it is available.

Reply:

Due to the voluminous nature of the information requested, I would recommend that the member approaches the Chairperson of the Portfolio Committee on Defence and Military Veterans and request to have this information tabled in a meeting of the Portfolio Committee in one of their sessions in 2016.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

(a) Subject to sub-regulation (2), of Section 22 of the MDDA Act 14 of 2002, funds contemplated in section 15(2)(a) of the Act must be allocated by the Board in accordance with the following percentages:

• Community media projects: at least 60%
• Small Commercial media projects: at least 25%
• Research projects: 5%

(b) The reason for giving community media projects more funding is informed by Regulations in terms of Section 22 of the Media Development and Diversity Agency Act of 2002, as enacted in the Government Gazette No. 22570 of 10 October 2003.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

a) Yes, there has been progress in job creation in the South African economy, although the unemployment rate remains unacceptably high.

The most recent Quarterly Labour Force Survey released by Statistics SA puts total employment in September 2015 at 15 828 000. This is an increase of some 2 500 000 over the September 2011 QLFS estimate of 13 318 000 employed persons. It should be noted, however, that a new Master Sample based on the 2011 census data was introduced in 2015, and Statistics SA therefore cautions that year-on-year changes should be interpreted with care. Notwithstanding this caution, the data indicate that if the rate of increase in employment over the past years is continued over the period ahead, approximately 5 million jobs will be created by 2020.

It is also apparent from the QLFS data that the rate of increase in the labour force has exceeded the rate of job creation, and so the unemployment rate has remained broadly unchanged. In September 2011 the estimated rate of unemployment was 25.7 per cent, and in September 2015 it was 25.5 per cent.

b) With respect to the question whether decent jobs have been created on an incremental basis annually, Government is mindful that wages are low and employment opportunities are irregular in some parts of the economy. Between 2011 and 2015, formal non-agricultural employment increased by approximately 1.5 million. In the September 2015 QLFS, informal sector work accounts for 2.7 million jobs, agriculture employment is 900 000 and private households account for 1.28 million jobs. These are important and sizeable shares of the employment total, and working conditions are varied in these sectors.

Programmes and policy initiatives that are aimed at improving conditions amongst lower-income workers include sectoral wage determinations by the Minister of Labour, investment in training and skills development and small enterprise support programmes. Government’s main direct contribution to the expansion of job opportunities is through the Expanded Public Works Programme and the Community Work Programme, and the youth employment incentive has been introduced to encourage firms to create work opportunities for first-time young work seekers.

The objective of the Jobs Fund is to support innovative approaches to employment creation and work seeker support, thereby contributing to evidence and learning about effective employment initiatives and strategies. The Jobs Fund aims to create 150 000 sustainable jobs and will contribute to evidence-based policy making.

To date the Jobs Fund has issued 5 calls for proposals, and approved 108 project applications of which 85 are currently being implemented. R5.6 billion in grants has been committed to the 108 projects. These project partners have committed R7.9 billion in matched funding. To date R2.78 billion in grants have been disbursed to implementing projects and R4.2 billion in matched funding has already been leveraged from these partners. The 85 projects being currently implemented have to date created 60 675 new permanent jobs and an additional 30 358 persons have been placed in vacant positions on a permanent basis. 16 124 short term jobs have been created, 13 291 persons completed internships and 128 196 persons has received work readiness/technical training.

Most of the jobs created have been entry level jobs for which the salary ranges between the sectoral minimum wage and R3500. Most of those employed are youth in their first jobs. Jobs have also been created in the salary cohort of R3500- R8800 with a few jobs created at salary levels in excess of R8000 per month. Jobs are evidenced through the submission of contracts of employment and payroll amongst others.

Reply:

Due to the voluminous nature of the information requested, I would recommend that the member approaches the Chairperson of the Portfolio Committee on Defence and Military Veterans and request to have this information tabled in a meeting of the Portfolio Committee in one of their sessions in 2016

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

This matter is currently the subject of litigation between the Department and the company concerned and as such any comments at this stage are likely to prejudice the Department’s case.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

The Minister of Public Works

(1)(a) The Department of Public Works (DPW) confirms that it did not sidestep or circumvent the provisions of the Public Finance Management Act, (Act No. 1 of 1999), (PFMA) when awarding tenders. However, there are situations where deviations are permitted in terms of the applicable legislation, regulations and policy prescripts. All tenders awarded were done in accordance with prescribed and legislated procurement methods and within the duly approved procurement systems of the DPW.

Numerous projects have been launched to ensure that procurement systems are intact and leasing processes are clear, transparent and well-articulated. This includes, amongst others, the introduction of a standardised lease agreement that ensures that all salient matters of the lease are captured clearly. The signing of leases has been centralised at the Head Office to the Head of the Property Management Trading Entity (PMTE) and other delegated officials at Deputy Director-General level. Due to the unique nature of the property and construction environments, the Supply Chain Management (SCM) processes for leasing and construction procurement are also in the process of being revised, where unique SCM processes for each of these fields will apply.

(1)(b) Yes, purchases were made and services were procured as part of the DPW’s obligation to render services to clients. However, in light of Government’s drive to reduce expenditure, the DPW focused on areas where spending could be reduced. On furniture, costs were reduced by 80% compared to the previous year: from R8 400 504.62 in 2014/15 to R1 679 383.33 as at end October 2015.

On renovation/upgrades costs were reduced by 30% compared to the previous year: from R176 017 074.00 in 2014/15 to R123 108 435.00 as at end of October 2015.

(1)(c) No money has been spent on the extension, maintenance or upkeep of the President’s private residence in Nkandla during the period 1 March 2012 to 31 October 2015.

(1)(d) The DPW embarked on an Immovable Asset Register (IAR) Enhancement Programme to provide certainty on the extent of immovable assets, and validate completeness and accuracy of immovable assets under its custodianship. As a continuous exercise to ensure that the Department’s IAR is complete and accurate, the Department’s IAR was reconciled against the Deeds records and other National and Provincial IAR’s for both the interim and annual financial statements during the past three financial years (2012/13, 2013/14 and 2014/15).

(1)(e) The Department’s programme to rebuild its Immovable Asset Register (IAR) that complies with the Generally Recognised Accounting Practice (GRAP) by 31 March 2016 is making good progress, as indicated below:

• The physical verification of specifically identified land parcels by DPW has been concluded. To date the Department has verified 36 852 of the identified land parcels in the 2013/14 financial year.
• The remaining 6900 land parcels are being verified and assessed during the 2015/16 financial year.
• The Department’s State Domestic Facilities not on State land have been identified and accounted for.
• Approximately 60% of DPW’s properties have had municipal values applied to them in the 2014/15 financial year with the remainder to be completed by 31 March 2016 in line with the GRAP phase-in process as permitted by the Accounting Standards Board (ASB) Directive 2. This has resulted in the disclosure of DPW’s properties at R78.1 billion for the year ending 31 March 2015, compared to the R10.3 billion in the 2013/14 financial year.
• There was no audit qualification pertaining to the Department’s IAR in 2013/14 and 2014/15 financial years.

The above key indicators highlight the significant advances made to enhance the Department’s IAR.

(2) (a) and (b) Government’s policies are not neo-liberal. In the current global and national context, necessary measures to ensure fiscal consolidation have been collectively agreed upon by Cabinet and I fully support these measures. Naturally, these measures have impacted upon the line budgets of all Government departments and, as indicated above, the DPW has accordingly implemented a range of cost-cutting interventions.

_______________________________________________________________

Reply:

The information can be processed through the Portfolio Committee on Defence and Military Veterans in the new year, as the beneficiaries names are considered confidential.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

This matter is currently the subject of litigation between the Department and the company concerned and as such any comments at this stage are likely to prejudice the Department’s case.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

Due to the voluminous nature of the information requested, I would recommend that the member approaches the Chairperson of the Portfolio Committee on Defence and Military Veterans and request to have this information tabled in a meeting of the Portfolio Committee in one of their sessions in 2016

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

The Department of Defence was not involved in the travel arrangements for the diplomatic visit to the Republic of Cuba by the Deputy President, Mr C Ramaphosa, and his entourage during the month of October 2015.

Please refer your question to the Presidency.

DATE OF SUBMISSION: 08 DECEMBER 2015

Reply:

The information can be processed through the Portfolio Committee on Defence and Military Veterans in the new year, as the beneficiaries names are considered confidential.

DATE OF SUBMISSION: 08 DECEMBER 2015