Questions and Replies

Reply:

a) (i) and (ii)

Complicated or unnecessary processes and procedures which impede or delay service delivery or decision making.

b) Boxing South Africa (BSA) is currently reviewing its standard operating procedures.

South African Institute of Drug free Sport (SAIDS) is experience no red tapes.

Reply:

The following information is supplied by the Northern Provincial Government:

1. (a)The total amount of outstanding debt owed to Northern Cape municipalities is R2.7 billion as at end of June 2015

(b) The table below specified the amount owed to each municipality

(c ) (i) (ii)& (iii) (d) (i) The amount of debt owed by households amounts to R1.7 billion, organs of state R426 million, commercial R373 million and other category of debt amounted to R191 million. The table below illustrates the debt in terms of consumer types and age analysis.

(2) (a) the reasons for government departments not settling outstanding debt are following:

• Incorrect invoices sent by municipalities to departments;
• Late issuing of invoices to departments;
• Payments made by Departments not using a reference number so municipalities cannot identify payments made;
• Inaccurate billings and interest charged on inaccurate accounts;
• Claims not timeously submitted to National Department of Public Works

(b) The department in collaboration with National Task team on payment of outstanding government debt has appointed a service provider to undertake verification and auditing of outstanding debt in all municipalities for possible payments upon confirmation.

3. (a) The information has been requested from the Province; they are in the process of collecting the information from the municipalities. The information will be forwarded to the honourable member as soon as it becomes available.

(b) The department through Provincial COGHSTA and Provincial Treasury has established Provincial Debt Management Committees to mediate and assist municipalities in collecting outstanding debt. Continuous interaction with sector departments and municipalities to assess and verify correct billing for timeous payments.

Reply:

The investigation of the blog and related matters on African Intelligence leak is at an advanced stage and the team is expected to conclude the remaining scope of the investigation as soon as possible.

Reply:

Yes, educators who resign from the employ of any provincial education department can be re-employed at a later stage in each province under the same conditions of employment stipulated in section 4 of the Employment of Educators Act, 1998 which states:

“Salaries and other conditions of service of educators

4. (1) Notwithstanding anything to the contrary contained in any law but subject to the provisions of this section, the Labour Relations Act or any collective agreement concluded by the Education Labour Relations Council, the Minister shall determine the salaries and other conditions of service of educators.

(2) Different salaries and conditions of service may be so determined in respect of different ranks and grades of educators, educators appointed at or outside educational institutions or educators appointed in different sectors of education.

(3) A determination of the Minister under this section involving expenditure from the National Revenue Fund may only be made with the concurrence of the Minister of Finance.”

Reply:

The replies as received from the Provinces are specified in the attached table (Annexure A).

Reply:

1.

(a)	(b)
R6 706 495,32	1596

2.

(a)	(b)
R1 377 154,53	R381 595,41

Reply:

1. Yes, the National Treasury does promote broader empowerment objectives through the Financial Sector Charter and financial inclusion policies, as outlined in the policy document “A safer financial sector to serve South Africa better” published in February 2011. The policy aims at increased access to affordable, convenient and appropriate financial services for all South Africans, particularly the poor and vulnerable, and takes into account the legacy of both racial and gender exclusion policies of the past.

Progress has been made in improving financial inclusion in South Africa, resulting in 80% of South Africans using some form of financial services from a regulated financial institution in 2014, up from 55 per cent in 2005. More will be done by setting stretched targets for the financial sector in the Financial Sector Code (FSC) (first adopted in 2003), and focused initiatives by National Treasury’s Cooperative Banks Development Agency (CBDA) established by the Co-operative Banks Act (No. 40 of 2007).

Through the FSC, the National Treasury advocates and promotes the advancement of women via specific targets in respect of access to finance and enterprise and supplier development for women as entrepreneurs and owners of small enterprises. For example:

• The target for procurement spend on suppliers that are 30% black women is 8% of total procurement spend
• The target for transformational infrastructure, black SME financing, black agricultural financing and affordable housing is R48 billion for banks and R17 billion for long-term insurers with recognition levels for certain types of beneficiary entities including 150% for 30% black-women-owned exempt microenterprises (EMEs), 100% for 30% black-women owned qualifying small enterprises (QSEs)

With regard to co-operatives, the CBDA has the mandate to regulate and supervise as well as provide capacity building to deposit taking financial co-operatives, commonly known as Co-operative Financial Institutions (CFIs). The Honourable Member should note that the financial sector is a highly regulated sector to protect both depositors, customers and taxpayers, and this cannot be regarded as overly stringent regulation as suggested by the Honourable Member in the original Question 336 on 26 August 2015 to my colleague the Honourable Minister of Women in The Presidency. The objective of the CBDA includes capacity building, to ensure that the CFI sector is adequately capacitated and therefore facilitates the growth of financial co-operatives.

Based on the sectoral analysis done by the CBDA, as at February 2015 women were empowered by CFIs as follows:

• The 26 CFIs serviced an estimated 7,274 females versus an estimated total of 17,318 members. This ultimately means that there is a 42% women ownership in the registered CFIs.
• CFIs are required to elect board members, for efficient and effective governance. 47% of an estimated 167 board members elected are women.
• 73% of an estimated total of 60 people employed by the CFIs are women.

The capacity building programmes developed and conducted covers a vast number of women particularly from the rural areas. Women have been empowered through financial management training and other training courses and coaching provided by the CBDA.

2. Yes, National Treasury is working with the Department of Women through the CBDA. For example, on 31 July 2015, the CBDA team met with officials in the Department of Women in the Presidency about the overall mandate of the CBDA and capacity building programmes for the CFI sector and discussed possible areas of collaboration. The CBDA will continue to work closely with both the Departments of Women and Small Business Development to assist vulnerable women to set up co-operatives and co-operative financial institutions thereby ensuring the financial empowerment and economic inclusion of these women.

National Treasury in line with its broader financial inclusion objectives, will work towards ensuring all South Africans have access to the benefits of using financial services both as part of the broader development agenda and to address poverty and the inequalities in South African society.

Reply:

1. The department has established a paypoint in Tsakane where beneficiaries can draw their cash - grants over the first five days of the months and it is a kilometer away from Tsakane Mall.
2. & (3) There is no pay point at Tsakane Mall in Brakpan. Because of the multiple options and benefits beneficiaries derives in receiving their grants, other distribution channels exist and in this regard there are 3 merchants stores which are pay out centres. The beneficiaries opting these pay – out centres not only withdraw money but also access other services in the mall. The department is constant contact with the service provider to improve queue management during the pay days.

Reply:

RSR RESPONSE

1 a) The Board of Enquiry set up into the train accident at Denver Station has concluded its work. The main finding of the Board of Enquiry is that the driver of the Express Train passed the ‘signal at danger’, and rear ended train number 0600 that was stationery at Denver train station.

b) The cost of the damage is R22 million.

2. PRASA has started implementing the recommendations of the Board of Enquiry, in order to prevent a recurrence of an incident of a similar nature.

Reply:

The collective bargaining for local government is under the auspices of the South African Local Government Bargaining Council (SALBC). SALBC recently entered into a 3 year salary and wage agreement. The agreement reached is as follows:

• 2015/16       -     7%
• 2016/17       -     average CPI (February 2015- Jan 2016) + 1%
• 2017/2018   -     average CPI (February 2016- Jan 2017) + 1%

                             

The following responses were provided by SALGA:

a) (i) The total cost of the negotiated 3 year collective agreement is estimated by SALGA to amount to approximately R16.682 billion. This increases the national wage bill for local government from R77.888 billion in 2014/15 to R94.570 billion in 2017/18. This calculation is based on the assumption of an average CPI of 5% for the 2016/17 year and an average CPI of 5.5% for the 2017/18 financial year.

 

(aa) 2015/16 - R5.884 billion; and

(bb) 2016/17 - R5.026 billion; and

(cc) 2017/18 - R5.772 billion

 

(b) The requested detail is not available per municipality. However, SALGA estimates that the increases applicable to each municipality’s current wage bill will be as follows:

 

2015/16 - 7.55%;and

2016/17 - 6.00% and

2017/18 - 6.5%

 

(c) These increases in the respective wage bills of municipalities will be funded from municipal income generated from property rates, trading services such as electricity, water and other related service charges such as refuse removal and sanitation charges coupled with equitable share transfers from national government.

Reply:

National Treasury has not yet approved my Department’s request for rollovers of R1 600 899 000 for Programme 1, 2, 4 and 5; and R1 557 184 000 in respect of each economic classification from the 2014-15 to the 2015-16 financial year.

National Treasury will only communicate the outcome of the rollover process on or before 11 September 2015 through the approved allocation letters as per the Guidelines of 2015 Adjustment Estimates of National Expenditure.

The non-approval of the requested rollover funds will necessitate the need for my Department to reprioritise the existing allocations for 2015/16 financial year within the programmes. This will result in the rescheduling of some of the infrastructure projects earmarked for the current year.

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Reply:

Question 1: Preliminary indications are that the 2015 public sector wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 is for medical assistance and R11.4 billion is for housing allowance.

Salary negotiations are taking place at the Public Service Coordinating Bargaining Council (PSCBC), which is established in terms of section 35 of Labour Relations Act 66 of 1995. The main purpose of the PSCBC is to allow Public Service parties to negotiate on transverse matters including terms and conditions of employment, resolve disputes and facilitate hearings to resolve disputes that arise in the Public Service. This excludes matters pertaining to Constitutional Institutions and Public Entities.

Question 2: National Treasury is certain that the agreement can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required from Departments and provinces.

National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament in October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the wage agreement will be financed.

Reply:

(a)(b) Zero-rated supplies of goods and/or services are taxable supplies on which VAT is levied at a rate of 0%. Any VAT incurred to make zero rated supplies may be deducted as input tax.

Some examples of zero rated supplies include certain basic foodstuffs; fuel levy goods; paraffin: certain farming goods; the export of goods and services in certain instances; international transport and municipal property rates.

The zero rating of basic food items are intended to provide relief to low-income groups.

The list of zero rated food items includes the following:

Brown bread Brown bread flour (excluding wheaten bran) Dried mealies, and mealie rice Samp Maize meal Dried beans Lentils Edible legumes.

Rice Vegetable cooking oil (Excluding olive oil) Fresh fruit and vegetables Hen's eggs Milk, cultured milk, milk powder and dairy powder blend Pilchards or sardinella in tins or cans

The zero-rate is also applicable to goods or services that are exported provided the relevant legislative provisions are met. This is in line with the destination principle of South Africa’s VAT system whereby exports are free of domestic VAT as consumption of these goods and services takes place outside South Africa and the import of goods attracts VAT.

(i)(ii)(iii) The National Treasury publishes a tax expenditure estimate in the annual Budget Review. The tax revenue forfeited on zero rated items according to Budget 2015 for 2010-11, 2011-12 and 2012-13 are set out in the table below:

Tax expenditure estimates (R million)

Fiscal Year                                         2009/10               2010/11   2011/12   2012/13      

Value-added tax                                  

Zero-rated supplies                             

19 basic food items                                            14 258                   15 497   17 106   18 628  

Petrol                                                                       9 660                    10 845   13 797   15 343

Diesel                                                                         903                      1 107      1 532      1 759

Paraffin                                                                      519                          367        585         611

Municipal property rates                                     3 973                       6 032     7 568      9 598

Reduced inclusion rate for commercials              127                          147       153          175

Accommodation

Subtotal zero-rated supplies                          29 440                   33 989    40 742   46 115

1. Vat relief in respect of basic food items based on National Treasury research of 2010/11 and expenditure survey data
2. Based on fuel volumes and average retail selling prices

Because petrol, diesel and illuminating paraffin are zero-rated for VAT purposes, the resulting difference from a standard rating, when used by final consumers, is regarded as tax expenditure. It was assumed that 20 per cent of petrol sales was used for business purposes (by VAT vendors) and would have qualified as input tax should VAT have been levied at the standard rate. For diesel, it was assumed that 90 per cent of sales was used for business purposes and would have qualified for input VAT should VAT have been levied at the standard rate.

(iv)(v) 2013-14 and 2014-15 expenditure is not available as yet and is expected to only be tabled in the 2016 and 2017 Budget Reviews respectively.

The revenue foregone in respect of exports that qualify to be zero rated was not calculated.

 

Reply:

(a) (i) The total amount spent on direct charges against the National Revenue Fund is   R 512 465 319 000 and the breakdown is listed in the table below. The audit for the National Revenue Fund for the 2014-15 financial year has not yet been finalized. These figures are therefore unaudited. 

(ii) and (b)

Department	Unaudited Amount (R’000)	Legal authority
Presidency – President’s salary	4,830	Sections 2(7) and 3(7) of the Remuneration of Public Office Bearers Act, 1998 (Act No 20 of 1998)
Parliament – Members of Parliament salaries	481,781
Provinces – Equitable share	362,468,075	Schedule 2 of the Division of Revenue Act (Dora Bill)
General Fuel levy	10,190,162	Schedule 1(2) of the Taxation Laws Amendment Act 17 of 2009
State Debt Interest Management Cost of raising loans	114,703,789 37,937 8,245,351	Section 73 of the Public Finance Management Act (PFMA) (Act no1 of 1999)
Higher Education and Training – SETA funds collected	13,838,798	Section 6(4) of the Skills development Levies Act, 1999 (Act No 9 of 1999)
Justice and Constitutional development – Salaries and allowances of Judges and magistrates	2,494,596	Section 2 of Judges’ Remuneration and Conditions of Employment Act, 1989 (Act 88 of 1989) and Section 12 of Magistrates Act, 1993 (Act No. 90 of 1993)

Reply:

1. (a) (i) (aa) 1

(bb) 1

(cc) 0

(dd) 0

(b) (i) (aa) 0

(bb) 0

(cc) 0

(dd) 0

(ii) 0

2. (a) (i) Sao Paulo, South America

(ii) N/A

(b) Possession

(i) 8 years imprisonment

(ii) None

(c) None

3. No, this is an operational matter of the company that management and the board can deal with.

 

Reply:

The Government has policies and programmes on economic empowerment which all Departments should implement, the Department of Labour policies and programmes are derived from those of National Government. With regards to Ministry of women, there is no collaboration at this stage.

Reply:

The Minister of Public Works

(1)(a)(i) R290 379.07

(ii) 41

(b)(i) and (ii)(aa) and (bb) R0.00

(2)(a)(i) R451 441.74

(ii) 57

(b)(i) and (ii)(aa) and (bb) R0.00

 

___________________________________________________________________

Reply:

The relevant provincial authorities are empowered in law to take action; hence the report was handed to the Premier of the Free State as the executive head of the provincial administration.

Reply:

1. Preliminary indications are that the 2015 wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 billion is for medical assistance and R11.4 billion is for housing allowance.

Line departments at national and provincial level are being engaged to assess the magnitude of shifts required for reprioritisation.

2. National Treasury is certain that the agreements can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required.

3. National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament on 21 October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the public sector wage agreement will be financed.

Reply:

Arrangements that apply to retiring members of the Government Employees Pension Fund (GEPF) are governed by rule 12.3 of its rules, which provides that "if a member resigns, retires or dies as contemplated in rules 14.3.2, 14.4.1 or 14.5.1, he or she has the right to transfer his or her actuarial interest in the Fund to an approved retirement fund: Provided that such transfer shall be subject to the provisions of rule 14.4.1(b)...".

A pensioner who is already receiving a pension from the GEPF after retiring would have had more than 10 years of pensionable service, and would have received a gratuity/lump sum on retirement and a monthly pension or annuity – the pensioner would thus have had the opportunity to invest elsewhere (or spend) the gratuity/lump sum received on retirement as he or she sees fit, but cannot do so with the portion invested in an annuity. It should be noted that there are benefits to an annuity as they provide a monthly income to the retiree, and in most cases, the benefits of the GEPF after retirement are good for members as they provide significant value compared to other annuities on the market. Further, there is no investment risk for retirees, as the GEPF is a defined benefit fund.

For those members still employed and contributing to the GEPF, only those members with more than 10 years of pensionable service will be able to qualify for the gratuity/lump sum and the monthly pension. These members cannot transfer their actuarial interests to an approved retirement fund if they retire from the GEPF.

Members with less than 10 years of pensionable service do not qualify for a monthly pension or annuity but can purchase an annuity/pension with an approved retirement fund of their choice with the gratuity/lump sum provided by the GEPF upon reaching retirement. Therefore, pensioners who fall within the provision of rule 14.3.2, which applies to pensioners with less than 10 years of pensionable service, are entitled to transfer their pension benefit to an approved retirement fund of their choice on retirement.

I would like the Honourable Member to join me in encouraging South Africans to preserve their retirement savings, given the risks and vulnerabilities they face when resigning from their jobs and cashing out their pensions prematurely. Government last year expressed its concern when some members of the GEPF were resigning from their jobs, probably because they were over-indebted or falling for false rumours on retirement reforms. Those resigning were not only giving up on their pension fund benefits (which are far better than most private pension funds), but also on certain non-contributory benefits (e.g. post-retirement medical benefits), which are funded by Government as the employer. No law has changed with regard to members’ access to their pension benefits; meaning that members of the GEPF will always be entitled to a gratuity/lump sum and an annuity, as per the Fund rules. Further, members resigning from pension funds before retirement will still be able to withdraw their benefits, though the withdrawal may attract higher tax liabilities.

Reply:

Prior to the introduction of legislation and legislative amendments, the Department assess the socio-economic impact of legislation, including its impact on jobs and the labour market. This was done in respect of the amendments to the Labour Relations Act through a regulatory impact assessment conducted in 2010.

Reply:

The hounourable member should get this information from the Department’s annual report as tabled in Parliament.

 

Reply:

Question 1: Preliminary indications are that the 2015 public sector wage agreement will cost as much as R63.9 billion over and above what is provided for this purpose in the budget baseline over the 2015 MTEF. Of the above amount R41.5 billion is for cost of living adjustments, R11.1 is for medical assistance and R11.4 billion is for housing allowance.

Salary negotiations are taking place at the Public Service Coordinating Bargaining Council (PSCBC), which is established in terms of section 35 of Labour Relations Act 66 of 1995. The main purpose of the PSCBC is to allow Public Service parties to negotiate on transverse matters including terms and conditions of employment, resolve disputes and facilitate hearings to resolve disputes that arise in the Public Service. This excludes matters pertaining to Constitutional Institutions and Public Entities.

Question 2: National Treasury is certain that the agreement can be accommodated within the current expenditure limits. Contingency reserves will play a role in accommodating higher compensation budgets this year, and so will resources available due to projected underspending. Some reprioritisation from other budget lines will also be required from Departments and provinces.

National Treasury is currently coordinating the budget process in preparation for the Medium Term Budget Policy Statement (MTBPS) in Parliament in October 2015. The Minister of Finance will make an announcement at the MTBPS on how costs of the wage agreement will be financed.

Reply:

The hounourable member should get this information from the Department’s annual reports as tabled in Parliament

Reply:

All the statistics that the Honourable Member is requesting already exist within specific breakdowns. The records are accessible from each Department.

Reply:

(a)(b) Exempt supplies are supplies of goods or services where VAT is not chargeable at either the standard or zero rate. A person who only makes exempt supplies is not allowed to register as a vendor, charge VAT on supplies over deduct input tax incurred on its acquisitions.

Some examples of exempt supplies include:

• Financial services, including life insurance policies
• Residential accommodation in a dwelling;
• Passenger transport in South Africa by taxi, bus or train;
• Educational services provided by recognised educational institutions;
• Childcare services provided at crèches and after-school care centres;
• Services supplied by a bargaining council to any of its members; and
• Goods and services supplied by a political party to the extent of membership contribution.

The National Treasury publishes a tax expenditure estimate in the annual Budget Review. Included in this tax expenditure is the estimated cost of exemption of VAT in respect of public transport and education. The estimated cost reflects the net of the VAT that would have been charged and the input tax that is not refunded.

Estimates are not available for the other exemptions. It should be noted however that financial services is not purely exempt. South Africa introduced VAT on certain supplies of fee based financial services in 1996 which has resulted in a net output tax payable by the affected financial institutions.

 

The tax revenue forfeited on public transport and education according to Budget 2015 amounted to:

(i) 2010-11 - R999 million

(ii) 2011-12 - R1 088 million

(iii) 2012-13 - R1 175 million

(iv)(v) 2013-14 and 2014-15 is not available as yet and is expected to only be tabled in the 2016 and 2017 Budget Reviews respectively.

Reply:

The matter is part of the budget process and consideration, if any, will be part of the Medium Term Budget Policy Statement (MTBPS) which will be announced by the Minister on 21 October 2015.

Reply:

The information requested by the Honorable Member is an element that forms part of the more aggregated figure used to prepare the regular reports on the current account and on the financial account, both of which are published in the Reserve Bank Quarterly Bulletin.

The South African Reserve Bank (“SARB”) records all inward and outward transactions for goods and services, for residents and non-residents through, “BOPCUS” - the “Balance of Payments Customer Transaction Reporting Electronic Message System”. Authorised Dealers in foreign exchange report all such transactions to SARB via the BOPCUS system, according to balance of payments categories.

The most recent SARB Quarterly Bulletin published (in September 2015) published the following figures for the first two quarters for 2015 (Table; page 34).

At the aggregated level, this shows the total outflow on the ‘net service, income and current transfer payments’ account of R138 billion on a seasonally adjusted and annualised basis. These are flows on the current account that are not related to trade flows. Indeed, the trade balance recorded a small (R14 billion) surplus on a seasonally adjusted and annualized basis.

Taken together with the services, income and current transfer payments, the balance on the current account has improved every quarter since 2014Q2; and now stands at 3.1 per cent of GDP.

On the financial account, however, financial inflows reached 2.9 per cent of GDP in the first half of 2015 from 5.9 per cent in 2014, as net outflows in ‘foreign direct investment’ and ‘other investment’ rose. Net portfolio inflows far exceeded total 2014 inflows of R49.5 billion, with demand for equities particularly robust.

a) (i) (ii) According to the information provided to me by the Reserve Bank, outward cross-border payments from non-resident rand accounts totalled 52,000 transactions amounting to R30 billion in 2013 (all figures are rounded off in this response); and 47,000 transactions amounting to R144 billion in 2014. These outflows were transferred to 161 countries in 2013 and to 138 countries in 2014. The average transaction value for 2013 was R586,000 and R3 million in 2014.

The Honourable Member should note that this should be compared to inward cross-border receipts, as they are linked in the sense that no inward flows are possible unless outward flows are allowed. Inward cross-border receipts into non-resident rand accounts totaled 42,000 transactions, amounting to R93 billion in 2013 and 40,000 transactions amounting to R194 billion in 2014; averaging R2 million and R5 million per transaction respectively.

b) (i) (ii) Table 1 sets out the highlights for the top 7 destination countries for transactions over R1 billion per annum.

In 2013, the top 7 destination countries represented 86% of the total transaction value, R26 billion, through 33 thousand transactions, averaging R778 000 per transaction. In 2014, the top 7 destination countries represented 96% of the total transaction value, R139 billion through 31 000 transactions, averaging R4,5 million per transaction.

 

Table 1

Outward Cross-Border transactions over R1 billion from Non-Resident Rand Accounts in top 7 countries

	2013	2014
	R billion	No. of transactions	R billion	No. of transactions
United Kingdom	16,3	17,319	102,6 *	16,686
United States	1,3	4,124	27,0	3,643
Germany	4,0	2,266	1,7	1,958
Switzerland	2,0	456	2,0	293
Australia	0,83	8,297	2,7	7,102
Thailand	0,2	82	1,1	84
Ireland	1,1	698	1,7	871
Total	25,7	33,242	138,7	30,637

* A sharp increase in outflows during 2014 was due to increased transfers to the UK resulting from the “Disinvestment of money market instruments by a non-resident” category.

Table 2

Outward transactions over R1 billion from Non-Resident Rand Accounts in 25 countries with the most transactions per annum

Table 2 reflects a further breakdown by the most active continents, i.e. Africa, Asia and Europe. Together with the top seven destination countries listed in table 1, in 2014, the transactions comprise 98% of the total transaction value (2013: 94%).

	2013	2014
Africa	Rm	No. of transactions	Rm	No. of transactions	2Y average R'000
Malawi	2	73	5.2	94	39
Zimbabwe	85	762	48.8	486	106
Namibia	36	260	109.6	213	327
Swaziland	57	101	11.5	90	346
Botswana	488	782	122.2	229	579
Mauritius	273	225	342.5	193	1495
Mozambique	439	198	513.7	208	2343
Total	1380	2,401	1153.5	1,513	5234

Asia
India	81	584	82.2	393	174
Taiwan	15	22	17.0	94	433
China	36	278	157.5	148	597
Singapore	53	115	329.0	90	2059
Total	186	999	585.6	725	3263
Europe
Poland	2	151	2.2	172	14
Portugal	30	2,130	42.4	2,272	16
Czech Republic	1	111	3.5	129	20
New Zealand	160	4,024	209.0	3,693	48
Canada	140	2,561	119.7	2,471	52
Israel	69	738	99.6	657	123
Spain	25	226	38.9	260	129
Italy	86	439	30.1	425	134
Greece	5	132	49.8	163	172
France	58	431	109.1	469	183
Austria	58	161	49.9	144	352
Netherlands	200	922	985.5	907	651
Sweden	133	164	176.9	109	1218
Jersey C.I	320	119	69.8	98	1703
Total	1288	12,309	1986.4	11,969	4815

Reply:

 

1. A contract for the provision of professional and technical services was signed on 18 August 2014 and runs until March 2016. It must be categorically stated that this is not a contract for “certain trades or professions to find work in South Africa”, but is a skills exchange programme over a specific time period.
2. The agreement identifies three areas of professional and technical services involving 93 Cuban specialists. Transport: 57 members working on maintenance, repair and preservation of military vehicles; Airforce: 18 engineers responsible for technical assistance on systems of combat aircrafts, transport aircrafts and helicopters; Military health services: 7 specialists advising on the improvement of military medical professional training.
3. It was not necessary to undergo such verification given that these contracts are focused on skills exchange and not employment.

I will not make a statement on the matter.

Reply:

 

1. Yes

(a)(i) and (ii) 93 Cuban nationals form part of a skills exchange programme not a contract of employment

(b) and (c) Transport: 57 members working on maintenance, repair and preservation of military vehicles; Airforce: 18 engineers responsible for technical assistance on systems of combat aircrafts, transport aircrafts and helicopters; Military health services: 7 specialists advising on the improvement of military medical professional training.

(d) This is not a contract of employment but an exchange of professional and technical skills.

(e) For the 2015/16 financial year a total of R150 million has been budgeted for this contract.

Reply:

(a)(i) Due to avionic obsolesce and interior degradation due to age.

(ii) Full avionic refurbishment and interior refurbishment.

(iii) Avionic refurbishment was R10.2 million and the interior refurbishment was R381000.

b) (i) Never before

(ii) No future refurbishment is planned.

Reply:

The three indicators were removed during the 2015/16 financial year in response to guidance received from DPME and the Framework for Strategic Planning and Annual Performance Plans of the Department, in an effort for the Department to create performance indicators that are aligned to the national outcomes and reflect value for money.

Reply:

The Secretary of Defence cooperated with the Office of the Auditor General in relation to this matter.

Reply:

The tender for the awarding of the development of Portion 87, 148, 149 and the remainder of Portion 1 of the farm Rietfontein 61 IR was done through the Department of Local Government and Housing. Since the Department of Health is not involved in the planned development on the site except for the relocation of the Sizwe Tropical Disease Hospital, any legislative requirements and compliance relating to future development of the land (including but not limited to soil tests) would not be handled by this Department and all queries regarding this can be referred to the Department of Local Government and Housing.

END.

Reply:

I responded to this question during the debate on the Adjustments Appropriation Bill of 2014, held on 20 November 2014, and I refer you to the Hansard and my detailed response to this question as captured therein.

Reply:

The Department of Health acknowledges that skin lighteners are as much a social problem as a medical problem. The public regards skin lighteners as cosmetics and do not see the harm in the use of these products.

a) Previously the Department of Health conducted awareness campaigns on the dangers of using specific hydroquinone containing products through posters and pamphlets, sensitizing the public in this regard. It is the intention of the Department to continue with these awareness campaigns.

b) The Department, in conjunction with Commercial Crime, Directorate for Priority Crime Investigation, SARS, Interpol, SAPS, National Regulator for Compulsory Specifications (NRCS) and the Company of Intellectual Property Commission (CIPC) ran joint operations in Pretoria, Johannesburg, Durban, Port Elizabeth and Cape Town from 19-21 August 2015. During the raids, illegal counterfeit and skin lighteners to the value of about R26m were confiscated, people arrested and a number of case dockets opened.

As per the legal processes, these matters will be attended to by the courts with appropriate fines imposed to the traders selling these products.

c) Recently in a case brought by the Department in a matter against traders selling illegal medicines in the Tembisa Magistrate’s Court (1 September 2015), the court found the accused guilty as charged with a fine of 1 year imprisonment or payment of a fine of R10 000.

END.

Reply:

 

1. Armscor is not aware of an indemnity provided to Denel by Government. The contract between Armscor and Airbus was cancelled and Airbus duly refunded Armscor its advanced payments accordingly and therefore no obligations on the part of Armscor arose as a consequence of the cancellation. Armscor is not aware of Denel and Government’s obligations.
2. Armscor is not aware of the claims made by Denel and the amount paid for the claims. The query should be referred to Denel.
3. Armscor is not aware of whether an oversight has taken place in respect to Denel’s claims. The question should be referred to Denel.

Reply:

Integration has long been closed.

Reply:

This matter is the subject of ongoing litigation at present.

Reply:

1. The matter of communicating how the proposed development will impact the nearby residents is not the responsibility of the Department of Health. Such assessments and communication of the impact to the nearby residents will be done by the Developer and the Department of Local Government and Housing.

(2) The proposed development was initiated by the Department of Local Government and Housing. Any consultation and notifications as to the dangers and potential health risks posed by the proposed development will be dealt with by them and not the Department of Health.

END.

Reply:

As of 1 October 2015 I have appointed a turnaround team at the Department of Military Veterans to focus on all the short comings of this Department and amongst others they will focus on the cleaning up of the database through verification.

Reply:

Stolen over the period 2013/14: 5 weapons

Lost over the period 2013/14: 3 weapons

Stolen over the period 2014/15: 8 weapons

Lost over the period 2014/15: 2 weapons

Total of 18 weapons were reported to Military Police Division:

(i) 8 x Z88 9 mm pistol

(ii) 1 x Star 9mm pistol

(iii) 1 x Baretta 9 mm pistol

(iv) 2 x 303 hunting rifle

(v) 6 x R4 rifles

(2) Ammunition lost or stolen over period 2013/14: 32 956 rounds

Ammunition lost or stolen over period 2014/15: 19 rounds

Types of ammunition: 9 mm sharp point; 5.56 mm and R4 rifle ammunition

(3) 12 people have been charged

(i) 1 x 9mm Z88 pistol stolen from Northern Military Police Region Head Quarters Duty room on 23/11/14.

• Weapon was recovered by Special Investigation Branch two weeks after it was stolen. Suspect was arrested and charged and sentenced to five years imprisonment.

(ii) 1 x 9mm Z88 pistol with 30 rounds of ammunition was stolen on 28/08/13:

• Suspect was charged and disciplinary action instituted. Outcome of criminal prosecution still awaited.

(iii) 1 x Z88 9 mm pistol lost on 16/12/13

• Military Police investigating the case

(iv) 1 x R4 rifle without ammunition was stolen on 08/11/13

• Weapon was recovered but the docket is still at LEGSATO for a decision

(v) 3 x R4 rifles, 1 x 9mm Star pistol and 1 x 9 mm Z88 pistol without ammunition was stolen on 11/06/14

• The case is at LEGSATO for a decision

(vi) 1 x R4 rifle lost on 31/5/14

• Suspect was found guilty and sentenced by Court of Military Judge

(vii) 2 x 3030 rifles were stolen on 11/01/14

• The docket is still under investigation and the member was declared unfit to possess a firearm

(viii) 1 x 9mm Z88 pistol was lost on 26/07/13

• Suspect found guilty and sentenced to R1500 fine and 180 days detention suspended for 3 years

(ix) 5 x 9mm rounds of ammunition was stolen and found on 30/10/14

• Suspect has already been charged and case is proceeding to trial

(x) 1 x Baretta pistol lost on 16/9/13

• Case still under investigation

(xi) 32400 x R4 sharp point ammunition stolen on 13/04/13

• 5 suspects arrested and the trial is ongoing in Lenasia Magistrate Court

(xii) 3 x 9mm Z88 pistols without ammunition stolen on 18/07/14

• Case is still under investigation

(xiii) 1 x R4 rifle lost on 23/01/15

• Case is still under investigation

(xiv) 556 x 45 mm blank ammunition stolen on 01/03/14

• Case docket sent to LEGSATO for a decision

(xv) 14 x cartridges box LMG belt links, Bomb stand attachments and bay stripping spring bellets stolen on 12/02/15

• Suspects have been charged and case still under investigation

Reply:

 

1. Members of the Advisory Council have been appointed as of 1 October 2015 for a period of five years.
2. The functions of the Council are set out in section 10 of the Military Veterans Act, 2011. Members of the Council serve part time and those not in the full time employment of the State receive an hourly remuneration rate set by National Treasury for Boards.
3. and (4)

Name	Current Occupation
Mr Andile Apleni	Mkmva
Mr Kabelo Bokala	Aznla
Mr Tembile Magingxa	Sanmva
Ms P.M. Kubu	Mkmva
Mr Mbulelo Fihla	Aplamva
Mr Obbey Mabena	Mkmva
Ms Dudu Phama	Aplamva
Mr Mzwandile Vena	Private Business
Ms Ntsikelelo Khwezi	Mkmva
Mr Snuki Zikalala	Cosatu
Mr Miki Xayiya	Private Business
Ms Thandi Ndlovu-Molokwane	Private Business
Ms Vuyiswa Lieta	Mkmva
Mr Alex Mahapa	Dpsa

Reply:

The environmental Assessment report has cleared the development at Rietfontein. There is no basis for concern over the small pox infection as suggested. The residents have no reason to be concerned about small pox.

END.

Reply:

1. The Department of Environmental Affairs does not condone hunting practices (including driven hunts) which are not conducted in a responsible manner, that is, within the parameters of applicable legislation, and in a manner which protects and promotes the sustainable utilisation of wildlife.

2. It was found during a recent driven hunt in Limpopo, that measures had been implemented to sufficiently monitor the hunt at all times, to ensure that the number of wounded animals were minimised and to ensure that wounded animals were tracked and put down as quickly as possible. Therefore, the Department of Environmental Affairs is in a process of initiating an assessment of the scope of this method of hunting in South Africa in order to obtain a proper understanding of its impact on biodiversity. The need for legislative review to ban, or regulate this method of hunting, either through regulations, norms and standards or any other mechanism will require thorough consideration arising from an assessment of the scope on this method as alluded to above.

(3)

(a) The Department of Environmental Affairs received complaints from a range of parties and non-governmental organisations in addition to numerous media queries.

(b) (i) The complaints received by the department emanated from the National Society for the Prevention of Cruelty to Animals (NSPCA) alert/media release and the complainants therefore based their concerns on the manner in which this hunting practice was described by the NSPCA as part of their scope of work which deals with the animal welfare issues.

(ii) The Department of Environmental Affairs sent a national Environmental Management Inspector to attend and monitor the hunt during its remaining duration. No complaints have been received subsequent to the hunt when our inspector was present.

---ooOoo---

Reply:

Power outages at Camden Military Base experienced during the month of August have not been in line with load shedding. The power outages at Camden Military Base are attributed to the following: a) electrical copper cable theft and b) illegal electricity connections.

Reply:

1. (a) The sale of Portion 87, 148, 149 was sold by the Department of Local Government and Housing. The Land Availability Agreement that was signed between the Department and Local Government requires that the Department signs a relocation agreement for the Sizwe Tropical Disease Hospital. This agreement between the Developer and the department of Health is not yet finalised.

(b) The agreement to relocate would not have been captured in the Final Environmental Impact Assessment report. As per the Land Availability Agreement, the sale was for the whole of Portion 87, 148,149 for the development of residential houses which necessitated the relocation of the hospital to make way for the proposed residential development.

2. There has not been any consultation with the residents nearby the new site as yet. The Department has not finalised the relocation agreement with the developer and all necessary consultations will be done as part of the stakeholders’ engagement on the project which has not commenced as yet.

(3) The proposed relocation site is government owned. It is part of the Edenvale hospital site portion 87 Rietfoitein No 61-IR.

END.

Reply:

As of 1 October 2015 I have appointed a turnaround team at the Department of Military Veterans to focus on all the short comings of this Department and amongst others they will focus on the cleaning up of the database through verification. At present those military veterans who have been verified receive benefits and as the database is cleaned up more veterans will enjoy these benefits.

Reply:

1. (a) Pension, military pension, leave credits, Group Life Insurance Scheme; Injury on Duty (Rule 15)

(b)Pension, military pension, leave credits, injury on duty (Rule 15)

2. (a) Pension benefit: paid to the Master of the High Court and beneficiaries in June 2012 (details of payment not kept by DOD).

(b) Military pension – spouse is receiving it since November 2011

(c) Leave credits – set off against member’s outstanding departmental debt

(d) Group life insurance scheme – benefit paid on 12 January 2012

(e) Injury on duty – monthly amount paid since July 2014 as well as gratuity to spouse

(3) (a) Pension benefit: Pension benefit paid in various installments over the period October 2009 and August 2011. Gratuity and monthly pension payable.

(b) Military pension – being paid to beneficiaries since September 2009

(c) Leave credits - set off against member’s outstanding departmental debt

(d) Injury on duty – Spouse was paid gratuity and is receiving monthly pension since November 2014

Reply:

This matter is the subject of ongoing litigation at present and therefore I will not make a statement on the matter at this stage.