Questions and Replies

Reply:

Government has initiated a rescue plan to revitalise fifteen mining towns in five provinces that were experiencing a prolonged economic slump exacerbated by mining, industrial, commercial or agricultural shedding of jobs. Twelve of labour sending areas in two provinces have also been prioritised for the revitalisation of distressed mining communities.

 

MINING TOWNS
PROVINCE	DISTRICT MUNICIPALITY	LOCAL MUNICIPALITY
Limpopo	Sekhukhune	Fetakgomo, Greater Tubatse, Elias Motsoaledi
	Waterberg	Lephalele
Gauteng	West Rand	Westonaria, Randfontein, Mogale City, Merafong
North West	Bojanala	Rustenburg, Moses Kotane, Madibeng
	Dr Kenneth Kaunda	Matlosana
Mpumalanga	Nkangala	Emalahleni, Steve Tshwete
Free State	Lejweleputswa	Matjhabeng

Twelve labour sending areas in two provinces have been prioritised for the revitalisation of distressed mining communities.

LABOUR SENDING AREAS
PROVINCE	DISTRICT MUNICIPALITY	LOCAL MUNICIPALITY
Eastern Cape	OR Tambo	King Sabata Dalindyebo, Nyandeni, Nquza Hill, Mhlontlo, Port St Johns
	Alfred Nzo	Mbizana, Ntabankulu
KwaZulu Natal	Zululand	AbaQulusi, eDumbe, Nongoma, Ulundi, uPhongolo

An integrated strategy and Back to Basics Programme was approved by the Inter-Ministerial Committees (IMC), late last year for the different work streams to address the socio economic conditions in mining towns and labour sending areas holistically. Various Programmes are in place and being implemented. The Department of Cooperative Governance (DCoG) is coordinating the national departments, provinces and municipalities. The following departments/institutions participate in the work of the Economic Work Stream:

• The Department of Trade and Industry – overall strategy is to promote Industrial Development through Special Economic Zones and Industrial Parks in Bojanala District Municipality (DM), Greater Tubatse and Lejweleputswa.
• Economic Development Department through Industrial Development Corporation conducted economic assessments in 6 Districts to assist municipalities attract investment and job opportunities to their regions by creating enabling economic development in West Rand, Sekhukhune, Lejweleputswa, Bojanala, Waterberg and Nkangala.
• South African Local Government Association (SALGA) – Small Town Regeneration – developed a comprehensive strategy to address the socio economic decline of towns. It is currently working in the following towns across the 9 provinces focusing on Mining and Industrial Towns, Tourism Towns, Transit and Commuter Towns: Lukhanji, Port St Johns, Letsemeng, Matjhabeng, Randfontein, Bela Bela, Emalahleni, Matlosana, Zululand, Umkhanyakude, Madibeng etc.
• DCoG – Establishment of Business Development Forums to stimulate large scale employment at a local level through private sector driven catalytic business ventures Bojanala DM, Greater Tubatse DM, Matlosana LM and Waterberg DM. Furthermore, the Municipal Infrastructure Grant (MIG) in mining towns and labour sending areas has been aligned to respond to Back to Basics priorities.

Progress has been made in diversifying the economies of mining towns by conducting economic assessments to identify investment opportunities in the following Provinces:

In Limpopo, sectoral opportunities in agriculture, mining and quarrying, manufacturing, wholesale and retail, and tourism has been identified in Sekhukhune and anticipated to attract investments at De Hoop Dam tourism development, Potlake Nature Reserve, fresh produce market, Tubatse special economic zone, R55 doubling and tarring, De Hoop augmentation, mining sector support businesses, bio diesel production, vegetable processing plant, flag boshielo dam development, Mountain Resort Linked to Drakensburg Escarpment Cluster of Projects and Tsate heritage site.

Sectoral opportunities in Waterberg District Municipality were also identified in agriculture, mining and quarrying, manufacturing and tourism. The envisaged investment attraction include agricultural hubs, logistics hub, opportunities linked to mining expansion in the region, mining product beneficiation opportunities, water sorting plant ( green economy), and tourism projects linked to biosphere and nature reserves.

Gauteng sectoral opportunities in agriculture, tourism, green economy, economic infrastructure, transport and logistics were identified and hope to attract the following investments to West Rand:

• Establishment of the Food Hubs ( Agro- processing Park)
• Development of Logistics hub/ Park
• Development of Township Industrial Parks/ Enterprise Hubs
• Development of a Municipal Precinct
• Smart city ( Broad band network)
• The Lanseria Airport City

Free State’s sectoral opportunities were identified in agriculture, mining, tourism, automotive/transportation and energy, hope to attract the following investments in Lejeleputswa:

• The Processing Plant (Hides processing plant & Agro-processing)
• Redevelopment of existing Airport
• Methane gas extraction

Sectoral opportunities in agriculture and agro processing, mining, chemicals/electronics and automotive, manufacturing and trade and tourism have been identified in the North West Province and anticipated to attract investments into Bojanala District in the following areas:

• Catalytic Converter manufacturing plants
• Distribution and Logistics Hub
• International Convention Centers
• Traditional Art Gallery and cultural information centre
• Implementation of Heritage Park
• Establishment of an incubator network and Development Agency
• Rural Integrated Energy Centre
• Lurcene Plant
• Bio-fuel plant
• Sisal Farming Project (Pella)
• Further development of tourism facilities around Sun City node
• Commercialization of small scale farming and agro-processing
• Development of tourism facilities at Borakolalo Reserve (Klipvoordam) jointly with Madibeng
• Upgrading of Phapatso cultural village and establishment of incubator for arts, crafts and cultural industries.
• Pilot waste collection and recycling

Sectoral opportunities in Mpumalanga have been identified in agriculture, mining, food products, wood products, chemicals, and automotive and hope to attract the following investments into Nkangala District Municipality:

• A catalytic convertor component manufacturing plant;
• A truck port/ logistics hub;
• An agro-processing bio-fuel production facility;
• An international convention centre;
• The Moloto corridor rail system;
• Delmas International Cargo Airport – linked to a Free Trade/ Special Economic Zone.
• Loskop-Zithabiseni tourism belt development;
• Rust de Winter tourism development;
• Kusile Power Station project.

Reply:

	Travel Cost	Number of trips	Accommodation Cost
(a) Minister Pravin Gordhan	R R256 971.00	44	R0.00
(b)	Deputy Minister Nel	R 252 538.00	35	R0.00
	Deputy Minister Bapela	R 282 437.00	51	R0.00

Reply:

I draw the attention of the Honourable Member to my remarks during the debate on the state of the economy, held in the National Assembly on 18 August 2015, available in Hansard. For ease of reference, an extract form the speech follows:

“These two global storms, in the mineral and steel sectors, are what we have to navigate with as little damage as possible, recognising that production and job losses in these sectors can have a multiplier effect on the economy.

So what are we doing to respond to these conditions and to address the still-continuing high levels of unemployment?

First, we are maintaining a high level of public investment in infrastructure, which is a true game-changer for the economy. We are spending close to a quarter trillion a year, or R1 billion rand per working day, on economic, industrial and social infrastructure. The BRICS New Development Bank is a major potential source of new funding for South African and regional infrastructure.

Second, we are expanding trade with the rest of Africa, particularly exports of South African made cars, machinery, iron and steel and food products.

Honourable Members will be pleased to note that exports to the rest of the continent now account for 244 000 direct jobs and it has been estimated as much as 885 000 total jobs; that last year, Zambia was our number one global export market for televisions, Zimbabwe for plastic products, Mozambique for clothing and the DRC for electrical equipment.

Third, we are implementing actions in the domestic economy, summed up in the 9-point plan announced by the President in the State of the Nation Address in February.

The nine priorities are:

1. Resolving the energy challenges through practical actions, including cogeneration, new IPPs and completing the public energy-build programme
2. Revitalising the agriculture and agro-processing value chain
3. Advancing beneficiation through adding value to our mineral wealth
4. More effective implementation of a higher impact Industrial Policy Action Plan
5. Unlocking the potential of small business, cooperatives and township and rural enterprises
6. Stabilising the labour market
7. Scaling up private sector investment
8. Growing the Oceans Economy and
9. Diversifying and boosting the economy through science, technology and innovation, expanding transport, water and ICT infrastructure and reforming state-owned companies.

To respond to the steel industry's problems:

• We fast-tracked a tariff investigation by the trade authorities on three steel products
• We completed a competition commission probe into steel pricing by the dominant company
• We extended short-term industrial funding of R150 million to one steel-mill to give it the space to restructure rather than close its doors
• We appointed a panel of steel industry experts to identify options for steel that would not damage downstream factory users, and
• We are meeting with business and labour to identify further steps to be taken,

To respond to the mining industry's problems:

• We convened a dialogue with stakeholders to consider options to reduce or avoid job losses
• We are investing in technologies and innovation to boost demand and localisation, such as platinum fuel-cell pilot projects
• We have initiated a Mining Phakisa to address the future of the industry

To respond to the clothing and industry's challenges:

• We implemented a tariff increase on finished products at the start of the previous administration
• We set a reference price on imported clothing to identify smuggling and import-fraud
• We created a competitiveness fund that has already invested over R3 billion in new technologies and work organisation to boost output and jobs.

More generally, the IDC expanded its industrial funding envelope over the past five years, particularly in green energy, putting some R14 billion into the Independent Power Producer programme that has already seen almost 2000 megawatts of energy coming onto the grid.

The IDC is now focusing on expanding investment in manufacturing, agro-processing and new industries.

During a time of declining mineral exports in dollar value, our auto exports have actually accelerated after 2011 and now constitute one of our top five exports, speaking to the success of the partnership built with investors.

To boost competitiveness, the competition authorities have acted against monopolies and cartels in sectors such as fertilisers, bread and poultry, steel, construction and telecomms.

To promote partnership, the Deputy President has led discussions with the business community and trade unions on reducing workplace conflict, including the role of strike ballots, action against violence in strikes and picketing rules. To reduce income inequality in the workplace, proposals for a national minimum wage are under discussion.

To boost youth employment, government is revamping its skills and entrepreneurship support programmes to make them more effective. The President convened a meeting with the business community 10 days ago at which stronger partnerships on skills development and work placement were considered.

…as we navigate our way through the minerals and steel turbulence and storms generated by falling global demand, we need to pull South Africans together, address domestic challenges such as energy and labour-business partnerships and speak with one voice.”

-END-

Reply:

The following information was provided by the John Taolo Gaetsewe District Municipality:

The John Taolo Gaetsewe District Municipality entered into an agreement with the service provider (Buhle Buzile Investments) to screen the memorials and funeral of the late former President of the country, Mr Nelson R Mandela, in villages across the three local municipalities in the district (Joe Morolong, Ga-Segonyana and GaMagara) in December 2014. The purpose of the screening of the memorial was to ensure that deprived members of the community in these municipalities also get an opportunity to be part of the proceedings to bid farewell to the former President. The service was delivered as agreed upon.

The initial agreement that each Local Municipality within the District Municipality contributes a pro rata amount towards the cost, did not materialize due to financial constraints, resulting in payment delays. This delay caused the service provider to institute a civil claim against the municipality in the Kimberley High Court (Case No. 1589/2014) and the court ordered the District Municipality to make payment of a specified amount to the service provider. The matter has been tabled before the John Taolo Gaetsewe District Council for a resolution authorising the payment to the service provider. The Council is to consider the matter during its October 2015 sitting.

Reply:

1. (a) and (b)

Traditional Leaders are involved in various development programs as part of job creation and improving the socio-economic well-being of their communities. The following are examples:

• Empangisweni Traditional Community: INKOSI ZONDO
• Stock farming – in Nguni cattle. The project has resulted in the capacitation of many black farmers.
• Soil utilization – particularly maize. This project has resulted in the employment of many locals and their capacitation.

• Dzumeri Traditional Community: HOSI DZUMERI
• Hosi Dzumeri awarded 50 wheelchairs to needy men, women children, not only from Dzumeri, but even other neighboring communities as well.
• Hosi has committed himself to increasing the number to over 100.
• Bakgatla Ba Kgafela Traditional Community: KGOSI PILANE
• Mining – has resulted in the employment of many locals and the development of the area.
• Mphebatho Museum – a major tourist attraction and a source of employment.
• Clothing factory – has resulted in the employment of many locals. It supplies major clothing retailers (e.g. Truworths ) with raw material.
• Farming – include goat farming. The aim with the project is to utilise available resources and land to make available employment opportunities to the community.
• Hospitality industry – to advance job creation and sustainable economic development.
• Moruleng Shopping Centre – the state of the art shopping center is a major source of employment for the community in Moruleng.
  • Road construction: The TC through its development wing constructed a road (tar road)

2. (a)(i)

Ehlanzeni District Municipality

The support provided by the District Municipality to nine (9) traditional leaders participating in Municipal Councils includes, sitting allowances and the provision of communication tools. All traditional leaders within the district are provided with financial assistance towards holding of traditional/cultural ceremonies (Immemo).The special designated seating arrangements for royalty in the council chambers and joint formal procession with the speaker into the chamber during council meetings are some of the protocol matters that are highly appreciated within the traditional institution.

Meetings that precede council meetings are held regularly between the district municipality speaker and the traditional leaders participating in municipal councils. Traditional leaders also participate in an IDP forum constituted by all mayors from local and the district municipalities in the region which focuses on development and other service delivery issues.

3. (a)(ii)

Gert Sibande District Municipality

The support provided by the District Municipality to seven (7) Traditional Leaders participating in Municipal Councils includes, sitting and cell phone allowances and other communication tools as well as office accommodation and office furniture. Traditional leaders have been enrolled on a training programme for leadership development by the district at the University of Zululand.

All traditional leaders within the district are also provided with financial assistance towards holding of traditional/cultural ceremonies (Immemo).Traditional leaders are part of the mayoral imbizo which is held annually. There is also an IDP forum constituted by traditional leaders and all mayors from local and the district municipalities in the region which focuses on development and other service delivery matters.

b) Other Provinces

In KwaZulu-Natal Province in the ILembe District and its local municipalities of Ndwedwe, Maphumulo, Mandeni and KwaDukuza, the strengthening of participation of traditional leadership in Municipal Councils proceedings is commendable. The Provincial CoGTA traditional leaders are not only attending meetings of full municipal council, but the municipalities have allocated seats for traditional leaders in Portfolio Committees of Municipal Councils. This enables traditional leaders to deliberate on policy matters.

Furthermore, the following effective partnerships with the traditional communities focusing on cooperatives, health and welfare, education, enterprise development, supply chain focusing on local procurement have been established in both Limpopo and North West within the platinum belt:

In Limpopo Province, R27 million has been invested in building a school, which is yet to be handed to the traditional community in Magadimana-Ntweng Traditional Council in Serafa Village within the Greater Tubatse Municipality. Traditional communities in Mapela, Ga-Chaba, Gamolekana, Phofola, Rooibok Sterkfontein in Mokopane are benefiting R39, 8 million agriculture projects. A market has been created for these flourishing projects. These farms supply their produce to the informal sector, local fruit and vegetable retailers and wholesalers including fresh produce markets. These projects are run by community structures supported by the traditional leaders and external capability to ensure high level of effectiveness and productivity.

Working with both Kgoshikgolo Thulare Thulare and Kgoshikgolo KK Sekhukhune and various other community leaders the ARM Broad Based Empowerment Trust built the Mampuru Thulare Primary School for R2.3 million in 2010. The school, which is currently being attended by approximately 700 pupils, has 8 classrooms and 6 ablution blocks and has been a positive catalyst for development in the area with children from the area now spared the hardship of walking long distances to school every day.

In 2014 the Trust spent a further R1.4 million on renovations and building a nutritional centre at the school. The Limpopo Rural Upliftment Trust has also been hard at work providing water to communities around the province. The Trust has spent approximately R1.2 million drilling and equipping 18 boreholes in the province. The boreholes now supply clean drinking water to these communities

In North West Province a SEDA Platinum project of glass beads jewelry has been established. The required machinery has been purchased and the cooperative members have been trained. At the moment, about R2,3 million is invested for this project. The second project is a craft hub called Tsakane Arts Cooperative. This project targets the youth and provides an opportunity for them to further explore the skills in arts and crafts and to have sustainable source of income. Almost R4.1 million has been invested in this project. Almost 7 people who were farming pigs on a casual subsistence basis have been assisted through the partnership by commercializing the farms into income generating activity at a higher scale. Almost R3.4 million has been spent to upgrade infrastructure, training for farmers on business development, product quality control, marketing and administration.

Anglo Platinum has agreed to appoint a professional videographer to capture all the projects to promote sustainable development and self-reliance in rural communities.

In the Eastern Cape Province R12 million to date has been distributed to the Eastern Cape Rural Upliftment Trust.Two new child care centers, the Kwathamsana Child Care Centre and the Zanci Child Care Centre were built in the Mqanduli area in the Eastern Cape to the value of R1.7 million. The Zanci Child Centre which was proposed by Nkosi Phatekile Holomisa benefits approximately 160 infants from the Zanci Village.

At the Ntabakandoda Secondary School, located in the Ngcamngeni Village the Trust built a soup kitchen at a cost of R200 000. The kitchen caters for 500 students and [will] cater for children from the Ntabakandoda School as well as primary school and pre-school children within the village.The Trust has spent a further R4.5 million building and renovating schools throughout the province.

Agriculture has also been a key focus for the trust in the Eastern Cape. The Manguzela Crop Production Project, in the Matatiele area, received in excess of R800 000 for farming equipment and supplies for crop production.

The Mpumalanga/ Northern Cape Rural Upliftment Trust has received approximately R7.3 million to date. In Mpumalanga, the Ipopeng Agricultural and Chicken Project received a total of R790 000 for the vegetable garden and for chicken farming. A tractor, a plough, a diesel cart, a trailer and a ploughing disc have been bought for the vegetable garden. Members of the community have been able to benefit from this project as poor families identified by the tribal council are able to receive vegetables and or chickens free of charge from the project. In addition the ARM Broad-Based Economic Empowerment Trust drilled and equipped 7 boreholes in various communities in the Ekhangala district.

The Mamathlake Vegetable Project has also been a great success having been developed in 2012 by the Trust at a cost of R780 000.The Trust’s projects in Mpumalanga also include the provision of water to the Xanthia High School in Thulamahashe, the Ngungunyane High School in Bushbuckridge, and the JP Khoza Primary School in Thulamahashe at a total cost of R198 000.

In the Northern Cape the African Rainbow Minerals (ARM) Broad Based Economic Empowerment Trust renovated and erected fencing around the Ikageng High School in John Taolo Gaetsewe and funded the purchase of 100 bicycles for learners from various schools in the area. In Kuruman a vegetable and chicken project for the Batlhaping Ba- Ga Phetlhu has been allocated R974 000.

In addition to the projects of the ARM Broad-Based Empowerment Trust R 736 million has been spent by ARM’s operations through Local Economic Development and Social Labor Plans in the preceding 5 years. The Trust continues to be committed to working with our local community leaders, government, church groups, trade unions, women and youth groups to develop sustainable projects that will improve the living conditions and standards of living of all our people.

Since inception, the ARM Broad Based Economic Empowerment Trust has distributed a total of R120 million to its beneficiaries for projects in education, health, water, enterprise development, farming, agriculture and rural development initiatives throughout South Africa.

Five provincial rural development trusts led by trustees who are key leaders in their respective communities and provinces were created for the purpose of uplifting and benefiting rural communities. The partnership between community leaders and the Trust assists in identifying the needs of the communities to ensure that projects undertaken by the provincial trusts have maximum impact in the upliftment and development of communities.

Traditional leaders, especially kingships have had partnerships with the Motsepe Foundation and the Department of Agriculture, Fisheries and Forestry. The Department of Traditional affairs will be engaging the Motsepe Foundation, Department of Agriculture, Fisheries and Forestry to extend and establish partnership relations as they operate within our sector. Furthermore, the DTA will also try to synchronize the work that other stakeholders are doing within the traditional communities to ensure effective and efficient service delivery and desired impact.

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:

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:

(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:

(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:

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:

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:

(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. 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:

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 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:

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:

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 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:

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:

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:

(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:

Colonel Nhlanhla Dube left the employment of the South African Air Force in 2013, thus rendering the remainder of the question irrelevant.

Reply:

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

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 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:

 

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:

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:

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:

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:

 

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:

This matter is the subject of ongoing litigation at present.

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:

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

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. 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:

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.