Questions and Replies

Reply:

i) Former Minister Mmamoloko ‘Nkensani’ Kubayi, 01 June 2019- 05 August 2021, used vehicles purchased by the Department in 2013 until the purchase of new vehicles in 2020.

	07 June 2020- 5 August 2021	07 June 2020 – 5 August 2021
a) Make	VOLVO BASED IN CAPE TOWN	VOLVO BASED IN PRETORIA
b) Model	XC60 D4 AWD G/T INSCRIPTION	XC60 D4 AWD G/T INSCRIPTION
c) Year of manufacture	2020	2020
d) Cost	R700 000.00	R700 000.00
e) Purchase date	2020/06/07	2020/06/07

	01 June 2019 – 7 June 2020	01 June 2019 – 7 June 2020
f) Make	Mercedes Benz BASED IN CAPE TOWN	Mercedes Benz BASED IN PRETORIA
g) Model	GL 350 Blue Tech	GL 350 Blue Tech
h) Year of manufacture	2013	2013
i) Cost	R951 626.90	R951 626.90
j) Purchase date	2013	2013

ii) Former Minister Lindiwe Nonceba Sisulu, 05 August 2021 – 06 March 2023, used the same vehicles purchased by the Department in 2020.

	05 August 2021– 06 March 2023	05 August 2021– 06 March 2023
k) Make	VOLVO BASED IN CAPE TOWN	VOLVO BASED IN PRETORIA
l) Model	XC60 D4 AWD G/T INSCRIPTION	XC60 D4 AWD G/T INSCRIPTION
m) Year of manufacture	2020	2020
n) Cost	R700 000.00	R700 000.00
o) Purchase date	2020/06/07	2020/06/07

iii) Minister Patricia De Lille, 2023 – to date has continued to use the same vehicles purchased by the Department in 2020.

	06 March 2023 to date	06 March 2023 to date
p) Make	VOLVO BASED IN CAPE TOWN	VOLVO BASED IN PRETORIA
q) Model	XC60 D4 AWD G/T INSCRIPTION	XC60 D4 AWD G/T INSCRIPTION
r) Year of manufacture	2020	2020
s) Cost	R700 000.00	R700 000.00
t) Purchase date	2020/06/07	2020/06/07

ii Deputy Minister Fish Amos Mahlalela (29 May 2019 – to date)

	18 May 2021- to date	18 May 2021- to date
a) Make	VOLVO XC D4 BASED IN CAPETOWN	VOLVO XC D4 BASED IN PRETORIA
b) Model	XC40 D4-AWD G/T Momentum	XC40 D4-AWD G/T Momentum
c) Year of manufacture	2021	2021
d) Cost	R700 000.00	R700 000.00
e) Purchase date	2021/03/18	2021/03/18

	8 May 2019 – 18 May 2021	8 May 2019 – 18 May 2021
a) Make	MERCEDES-BENZ BASED IN CAPETOWN	AUDI Q7 BASED IN PRETORIA
b) Model	MERCEDES-BENZ E350	AUDI Q7 SUV
c) Year of manufacture	2015	2015
d) Cost	R762 443.00	R878 700.00
e) Purchase date	2015/03/18	2015/03/18

Reply:

	Minister	Deputy Minister
(a)	N/A	i) BMW ii) BMW
(b)	N/A	i) X3 XDRIVE 20D ii) X3 XDRIVE 20D
(c)	N/A	i) 2021 ii) 2021
(d)	N/A	(i)12/10/2021 (ii)20/12/2021
(e)	N/A	i) R761 199.40 ii) R768 666.99

Reply:

According to the information received from Transnet:

The Port of Maputo serves two roles to South Africa: as an extension of the South African complementary port system and as a competitor.

In the role as an extension of the South African complementary port system, the Port of Maputo provides import and export capacity that cannot be met by Transnet Port Terminals thus assisting with maintaining fluidity in the South African freight logistics system. Transnet allocates cargo to Maputo on an equitable basis to ensure that the system doesn’t choke, i.e., Richards Bay and Durban cannot accommodate all cargo from the hinterland, therefore, the Port of Maputo provides an alternative to execute Customer demand, especially when Transnet Port Terminals are oversubscribed.

Over the past three years, the Port of Maputo recorded significant growth in bulk commodities like Chrome, Coal and Magnetite, and negligible growth in the container business. Transnet is implementing strategies to improve the availability and reliability of plant and equipment to enable the clawing-back of cargo volumes that migrated to Maputo port due to operational inefficiencies.

High-level initiatives to enable volume claw-back include, but are not limited to:

• long-term partnerships with Original Equipment Manufacturers to reduce response time to plant and equipment failures

• implementing a reliability-based maintenance regime

• implementing continuous improvement initiatives as identified in the turnaround plan to drive the achievement of terminals-wide performance norms

• introduction of the 4th shift operation philosophy to improve throughput, performance levels and ultimately Customer satisfaction.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

Find reply here

Reply:

1. SAA has cash reserves with which the airline absorbs losses incurred. Moreover, several of the expenditure items that contributed to SAA losses are non-cash items and thus would not have a direct impact on SAA’s available cash reserves. Non-cash expenses (Depreciation and Amortisation) amounted to R109 million for the first three quarters of the financial year. During the same period, SAA generated a total income of R4.4 billion which helped defray operating costs and foreign exchange losses.

2. As of 31 December 2023, SAA had Total Assets of R11.309 billion, Total Liabilities of R6.025 billion resulting in a positive equity value of R5.284 billion. The airline’s assets exceeded its liabilities and therefore the indication is that it is solvent.

Reply:

Section 32 of the Constitution of the Republic of South Africa, 1996, grants the right of access to any information held by the State and provides that national legislation must be enacted to give effect to this right.

However, the Promotion of Access to Information Act No. 2 of 2000 (PAIA) provides the grounds for refusal of requested information as contemplated in Chapter 4 of the Act. In terms of Section 41, if disclosing information prejudices the defence of the Republic, the security of the Republic and/or the international relations of the Republic, such information is then protected under PAIA.

Section 41 reads as follows:

“41. (1) The information officer of a public body may refuse a request for access to a record of the body if its disclosure—

(a) could reasonably be expected to cause prejudice ~

(i) the defence of the Republic; 25

(ii) the security of the Republic; or

(iii) subject to subsection (3), the international relations of the Republic; or

(b) would reveal information—

(i) supplied in confidence by or on behalf of another state or an international organisation;

(ii) supplied by or on behalf of the Republic to another state or an international organisation in terms of an arrangement or international agreement, contemplated in section 231 of the Constitution, with that state or organisation which requires the information to be held in confidence; or

(iii) required to be held in confidence by an international agreement or customary international law contemplated in section 231 or 232, respectively, of the Constitution.”

PAIA allows access to be refused to information supplied in confidence by, or on behalf of another State or international organisation, or that is required to be held in confidence by an international agreement or customary international law. It is on this legislative basis that the minutes of the meetings held between the President of the Republic, Mr MC Ramaphosa, and other Heads of State and officials from foreign governments, cannot be disclosed.

Reply:

I have been advised by the Department as follows:

 

The Non-Executive Directors of Boards of State-Owned Entities reporting to the Ministry of Communications and Digital Technologies do not have salary grades except for the Film and Publication Board which is categorised as Category B1 as per the National Treasury Board Remuneration Guidelines.

The salary grades for the Executive Directors of State-Owned Entities where CEOs, CFOs and/or COOs are ex-officio members of the Board are as follows:

 

State Owned- Entity	Executive Director	Salary Grade	Additional notes
Broadband Infraco (BBI)	Chief Executive Officer	Paterson Band F 2	The Paterson Job Evaluation System grades jobs based on decision-making complexity, ranging from Bands A to F, with Band F being the highest. Each band, except A, is subdivided into lower and upper parts, with specific subgrades
	Chief Financial Officer	Paterson Band E 5
Film and Publication Board (FPB)	Chief Executive Officer	Paterson Band F1
National Electronic Media Institute of South Africa (NEMISA)	Chief Executive Officer	Level 15	Department of Public Service and Administration Framework for Remuneration of public servants
Postbank	Chief Executive Officer	Paterson Band F2
	Chief Financial Officer	Paterson Band E4
Sentech	Chief Executive Officer	Hay Grade Level: 25	Using the correlation table hay grade level 25 on the following evaluation systems is: Peromnes: 1++, Paterson: F4/F5
	Chief Operations Officer	Hay Grade Level: 23	Peromnes: 1, Paterson: F1
	Chief Financial Officer	Hay Grade Level: 23	Peromnes: 1, Paterson: F1
State Information Technology Agency (SITA)	Chief Executive Officer	Above Paterson Band F3, which is equivalent to F4/F5
	Chief Financial Officer	Paterson Band-F1
South African Broadcasting Corporation (SABC)	Chief Executive Officer	Paterson Band- F3
	Chief Financial Officer	Paterson Band- F1
	Chief Operations Officer	Paterson Band- F1
South African Post Office (SAPO)	Chief Executive Officer	Paterson band F4/5
	Chief Financial Officer	Paterson Band F2
	Chief Operations Officer	N/A	Vacant
Universal Service and Access Agency of South Africa (USAASA)	Chief Executive Officer	Level 15	Department of Public Service and Administration Framework for Remuneration of public servants

 

Authorised for submission by

 

 

 

                                                                       

MS NONKQUBELA JORDAN-DYANI

DIRECTOR-GENERAL

DATE:

 

 

Recommended/not recommended

 

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

 

 

 

________________________________           

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Reply:

Find reply here

 

 

Reply:

1. National Treasury (NT) during the many forums, intergovernmental forums and consultation processes always caution organs of state against fiscal dumping. Fiscal dumping is perceived when sector departments (transferring officers), that administrate and monitor municipal performance, transfer huge amounts of money during the last month of the national financial year (March). However, it should be noted that in terms of the division of nationally raised revenue that appropriates money through the Division of Revenue Act (DoRA), NT is of the view that the national departments are unable to ‘dump’ funding to municipalities because all transfers to municipalities are made in terms of the approved payment schedule and follow a project plan.

Municipalities also implement in-year budget adjustments changes in the last month of the national financial year, between January and March annually which is another process that may also appear to imply fiscal dumping of the funds to the local government sphere.

Additionally, NT conducts another process in terms of section 18 of the DoRA which is a mid-year process of assessing progress of municipalities in terms of their DoRA allocated funds. This process is undertaken during the middle of the municipal financial year, 31 December annually. The implication of this process is that should funds against slow moving municipalities be stopped in terms of section 18 of DoRA and be reallocated to fast moving municipalities in terms of section 19 of DoRA, the recipient municipalities would receive additional funding during the last month (March) of the national financial year, allowing a municipality three months to spend the additional amounts.

2. NT is not considering motivating the financial year-end of all spheres of government to be at the same time.

The national / provincial budget process involves managing the following simultaneously: the Medium-Term Strategic Framework (MTSF), the medium-term fiscal framework, the division of revenue process, and the budget processes of national government and the nine provincial governments.

The separation of national / provincial financial years from the local government financial years allows for a proper sequencing of the national / provincial and the local government processes. The MTSF, the fiscal framework, the division of revenue and the national and provincial conditional transfers to local government are all in place and certain by mid-February which is when municipalities begin compiling their budgets. This means that municipalities can compile their budgets with accurate awareness of what resources they will be receiving from the equitable share and in the form of national and provincial conditional transfers.

From the municipal perspective, the alignment of the municipal financial year with the national and provincial financial year will:

a) place enormous pressure on municipalities already strained financial management capacity.

b) impact negatively on the quality of municipal budgets, as they will not have access to the final equitable share and conditional transfer numbers until right at the end of the process.

c) undermine the community consultation and participation processes around municipal budgets, as they would have to happen during the same period while the national and provincial budgets are being compiled and changed; and

d) undermine the scope for effective coordination of national, provincial and local government planning, as the municipalities would be required to develop and revise their integrated development plans, at the same time the national and provincial departments are still doing their own planning.

The net result would be to condense coordination of national, provincial and local government planning which would inevitably result in gaps and weaker spending outcomes, particularly in relation to conditional grants and will generally impact negatively on the move towards improved planning and execution.

A further key factor to consider is the ability of the Office of the Auditor-General to audit all national departments and their entities, all provincial departments and their entities, municipalities and their entities, within two months after the end of the financial year. The current staggering of financial years means the work is spread over a four-month period and there are sufficient auditors to meet the requirements.

Reply:

I have been informed by the SABC as follows:

The SABC is in the process of amending the current repeat fee strategy. This process has not been finalised as consultations with all relevant and key stakeholders are ongoing.

The proposed amendments to the current strategy have been approved by the SABC Board in 2018. In its current form, this strategy is unsustainable as payments have been structured in such a way that they are implemented for an indefinite period.

The strategy was introduced in 1996 by the Performers Artists Workers Union (PAWE). The union was established with the aim of engaging the new SABC dispensation to redress the struggles encountered by black actors under the Apartheid regime for not receiving equitable treatment as their white counterparts from mainly white-owned production companies.

In 1997 the SABC’s Department of Programme Policy, Planning and Co-Production agreed with PAWE that content production houses commissioned by the SABC be required to use a Standard Performers’ Agreement when performers entered into contracts. This came into effect on 1 September 1997.

At the time the SABC was the sole commissioner and producer of local content and agreed to a Standard Performers’ Agreement that contained two clauses namely: Clause 5 on repeat fees payable to Principal Performers of drama productions and Clause 7 on exploitation fees payable to Principal Performers on the licensing of commissioned productions.

Twenty-eight (28) years later there is a requirement that the strategy be aligned to the SABC’s various financial and legislative requirements. It must be stressed that intention behind the new proposal is not to disempower performers but to ensure that all parties benefit.

Authorised for submission by

 

______________________________________

MS. NONKQUBELA JORDAN-DYANI DIRECTOR-GENERAL

DATE:

 

 

Recommended/not recommended

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

________________________________

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Reply:

1. With regard to the objectives and purposes of the Skills Development Act, Act 97 of 1998, what total amount has been paid by employers in skills development levies since the inception of the Skills Development Levy, National Skills Fund (NSF) and the implementation of the specified Act;

Employers have the direct relationship through the mandatory grant process. The NSF as a catalytic funder focuses on skills development across the value chain of SA and has a direct relationship with stakeholders and/or implementing agents such as Skills Development Providers, Government Departments, PSET institutions none of which pay a levy to the NSF.

 

2. what (a) total amount has been raised by the NSF in reliance upon the Act, in particular section 27, and (b) is the source of the funding in reliance upon section 27(2)(a) to (f);

The pilot project underway through the Presidency called the Presidential Youth Employment Initiative (PYEI) is the only source of additional funding and this has been included in the MTSF (through DHET).

Background

“Section 27 (1) of the Skills Development Act (SDA) states that the National Skills Fund is hereby established and section (2) further state that the Fund must be credited with:

• 1. 20 per cent of the skills development levies, interest and penalties collected in respect of every SETA, as required by sections 8 (3) (a) and 9 (a) of the Skills Development

Levies Act (SDL Act);

• 1. the skills development levies, interest and penalties collected by the Commissioner from employers which do not fall within the jurisdiction of a SETA, as required by section 8 (3) (c) of the SDL Act.
  2. money appropriated by Parliament for the Fund;
  3. interest earned on investments contemplated in section 29 (3);
  4. donations to the Fund; and
  5. money received from any other source.”

2 a) The total amount has been raised by the NSF in reliance upon the Act, in particular, section 27.

With reference to the Act and the question raised, the NSF was established in 1999 in terms of section 27 of the SDA without legal persona.

From that period of its establishment to the period of 2010, the NSF was placed under the Department of Labour (DOL) as a chief directorate /Directorate and the total amount that was raised by the NSF during this period was R 8 439 078 000.

In 2010-11 NSF was transferred to the Department of Higher Education and Training (DHET) and in 2011-12 the NSF was listed as Schedule 3A Public Entity in terms of the PFMA, retrospectively effective from 1 April 2012. From the period of 2011 to 2023 the total amount that was raised by the NSF during this period was R49 464 097 000.

In summary and in total considering the period when the NSF was in DOL and the NSF in the DHET, the NSF received a total amount of R57 903 175 000.

 

2 b) The source of the funding in reliance upon section 27(2)(a) to (f)

With reference to the section 27 of the SDA and the question raised, the NSF current main revenue sources are:

1. 20% of the skills development levies as contemplated in the SDL Act; and
2. Interest earned on investments held at the Public Investment Corporation (PIC); and
3. Money received from any other sources - uncommitted surplus from the SETAs and to certain extend interest received from the Skills Development Providers (but the amount is not material).

The NSF may also receive revenue from the following sources as per section 27 of the SDA (but this is not prevalent as NSF has not received any of the amount listed below):

1. The skills development levies collected and transferred to the NSF, in terms of the SDL Act in respect of those employers or sectors for which there is no sector education and training authority (SETA)
2. Money appropriated by Parliament for the NSF
3. Donations to the NSF

With reference to the 20% of the skills development levies as contemplated in the Skills Development Levies Act, 1999 (Act 9 of 1999) (SDL Act) as per section 27 (2) (a), the NSF has accounted for R45 996 000 000.

With reference interest earned on investments contemplated in section 29 (3) of the SDA and as per section 27 (2) (d), the NSF has accounted for R6 789 000 000.

With reference to the funds received as a results uncommitted surplus from the SETAs that are transferred to the NSF in terms of SETA grant regulation 3(12) the NSF has accounted for R4 126 000 000.

With reference to section 27 (1) (f) “money received from other sources” / Other income the NSF has accounted for R 992 000 000 (for example transfers from DHET for special projects and

Finance income from advance payments to skills development programmes and projects)

3 a) Current value of the total amount raised.

The current value from 1 April 2023 to 31 Dec 2023 is the total of R4 152 000 000.

1. 20% of the skills development levies as contemplated in the SDL Act is R 3 313 000 000 and
2. Interest earned on investments held at the PIC as per section 27 (2) (d) is R838 000 000.

3b) The total monetary value of unspent skills development levies being held by NSF is R14,916 billion.

in terms of Section 29(3) of the SDA, the unexpended balance in the NSF at the end of the financial year must be carried forward to the next financial year as a credit to the NSF.

The unspent funds are currently invested investments held at the Public Investment Corporation (PIC) as per section 29 (2) of the SDA that state that Any money in the Fund not required for immediate use may be invested in accordance with an investment policy approved by the Director-General that complies with the requirements of the Public Finance Management Act and may be withdrawn when required.

The total value of the unspent skills development levies being held of R14 916 000 000 is intended to be utilised for:

• 1. The 200 committed skills development programme and projects that the NSF has entered contract with the cash commitment of R 11 196 000 000.
  2. The 204 earmarked committed skills development programme and projects that have not yet been contract of about R 10 000 000 000.

The NSF in terms of its strategic plan and annual performance plan intends to support and respond to the National Skills Development Plan (NSDP)/MTSF/WP-PSET/NP-PSET and also responding to the other projects of national priorities by funding projects that are :

• 1. Identified to increase production of occupations in high demand (skills development programme and projects such Artisanal development etc)
  2. Link education and the workplace (skills development programme and projects - Work integrated learning /Learnerships/ Internships etc)
  3. Improve the level of skills in the South African workforce (skills development programme and projects such Worker education related interventions)
  4. Increase access to occupationally directed programmes (skills development programme and projects with the 50 TVET Colleges / 9 CET colleges / State SOCs such as NECSA etc)
  5. Skills development support for entrepreneurship and cooperative development (skills development programme and projects such SEDA related interventions),
  6. The human resource development strategy (support to the secretariate work of NSA /HRDC)

4. what is the total number of accredited qualifications that have been funded by the (a) skills development levies and (b) NSF;

The National Skills Fund has funded various programmes in relation to the Skills Development Act and National Skills Development Plan. The table below provides the reader with number of qualifications in the financial years 22/23 and 23/24.

 

Qualification	22/23	23/34
	Number	Number
Learnerships	10775	10818
Apprenticeship / Artisans	7071	5888
Bursaries (incl. Int)	813	1426

 

In addition to the numbers above, as a value add included are learners trained in:

• • • Occupations in High Demand (OIHD),
    • Persons with Disability and
    • Beneficiaries coming from rural communities.

5. What are the reasons that the money, raised through levies on employers and other sources of funding, has not been spent on skills development

1. Currently NSF has skills development programme and projects of contract values of R23 264 000 000 and cash commitments of R11 196 000 000 that still need to be disbursed based on the budget projections beyond 2024 financial year and
2. The NSF also has earmarked skills development programme and projects of 204 earmarked committed skills development programme and projects that have not yet been contract of about R10 000 000 000 disbursed.

The NSF in terms of its strategic plan and annual performance plan intends to support and respond to the National Skills Development Plan (NSDP)/MTSF/WP-PSET/NP-PSET and responding to the other projects of national priorities by funding projects that are:

1. Identified to increase production of occupations in high demand (skills development programme and projects such Artisanal development etc)
2. Link education and the workplace (skills development programme and projects - Work integrated learning /Learnerships/ Internships etc)
3. Improve the level of skills in the South African workforce (skills development programme and projects such Worker education related interventions)
4. Increase access to occupationally directed programmes (skills development programme and projects with the 50 TVET Colleges / 9 CET colleges / State SOCs such as NECSA etc)
5. Skills development support for entrepreneurship and cooperative development (skills development programme and projects such SEDA related interventions),
6. The human resource development strategy (support to the secretariate work of NSA / HRDC)

Reply:

I am informed by the Department that no events are planned by the Department of Tourism, before the 29 May elections, to celebrate 30 years of democracy in the Republic of South Africa.

Reply:

There are 14 Technical Vocational Education and Training colleges as follows:

NO	REGION	NAME OF COLLEGE
	Gauteng & Free State	Ekurhuleni Central Johannesburg Maluti
2.	Western Cape & Northern Cape	False Bay
3.	Mpumalanga & North West	Gert Sibanda Taletso
4.	Kwa Zulu Natal	Coastal KZN Umfolozi Esayidi
5.	Eastern Cape	Buffalo City Ingwe King Hintsa King Sabata Dalindyebo Port Elizabeth

Reply:

(1) (a) What is the rationale behind the decision of the Land Bank to advertise the sale of its loan book, (b) what specific criteria were employed to determine which loans would be included in the sale and (c) which clients would be excluded;

Land Bank’s Response:

At the outset, it should be noted that a write-off of non-performing loans is an accounting term and a function of International Financial Reporting Standards (IFRS) 9. In terms of IFRS 9 a debt may be written off in its entity “if an entity has no reasonable expectations of recovering the contractual cash flows on a financial asset”. When a debt is written off by the Bank, it does not mean that the Bank can no longer enforce its rights in respect of that particular loan. In addition, it does not mean forgiving the debt. The debtor still owes money to the Bank, however, the Bank has derecognized this asset from its financial statements due to the low prospects of recovery. In case the borrower resumes servicing its debt, or the exposure is sold, a recovered amount would be directly recorded as profit in the books of the Bank.

The Bank issued a tender notice for the sale of its written-off loan assets for the submissions of expressions of interest. This sale relates to accounts where the Bank does not have reasonable prospects of recovering the debt, and where the Bank has consequently written off these amounts in line with the Bank’s policies and applicable laws. The disposal of already written off accounts is a standard practice within the financial services sector and there is nothing unique about the Bank’s intention in this regard. It is also important to note that this written off assets are NOT accounted for as part of the current loan book assets due to the fact that they have been written off, as such this tender does not have any links to the current loan book asset. As stated above, when a debt is written off by the Bank, it does not mean that the Bank will not continue to recover debt owed to it using the normal legal processes within the purview of the country’s laws. In this particular instance, the proceed of the successful sale of these written-off loan assets will be synonymous with the recovery of an amount of the written off assets. The tender process is currently underway and it is expected to be completed in the next few months.

(2) what is the (a) estimated timeline for concluding the sale of the loan book and (b) anticipated total amount of proceeds expected from the specified sale;

Land Bank’s Response:

As stated above, this is a tender process and it is still at its early stage as the closing date for the submissions of expressions of interest was on 23 February 2024. We expect to complete the process in the next few months. Given that the envisaged sale is being conducted through a tender process, the anticipated total amount of the proceeds cannot be disclosed. This is about the recovery from the written off assets which no longer form part of the reported value of the current loan book. Disclosing value of written off assets which the tender aims to recover will have a negative impact on the recovery process of the written off book.

(3) whether the sale is an effort to ensure the sustainability of the Land Bank in the long run; if not, what is the position in this regard; if so, what are the relevant details?

Land Bank’ Response:

The objective of the sale is to try and maximize the recovery on the bad debt that has already been written off. The proceeds of such a sale will contribute to the augmentation of the Bank’s liquidity position and profitability.

Reply:

I have been informed as follows:

The process of concluding the Broadband Infraco (BBI) acquisition is at an advanced stage pending the revision of BBI’s Turnaround Plan to establish funding requirements. The necessary acquisition processes were concluded with a sale offer by the SENTECH Board that was accepted by the BBI Board. This followed a due diligence inquiry and engagements with relevant authorities such as ICASA, Takeover Regulatory Panel, Competition Commission and National Treasury. There have been ongoing discussions with the Industrial Development Corporation (IDC), which is a 26% shareholder of BBI, on their role post the acquisition.

To conclude the BBI acquisition by Sentech the following are recommended:

1. SENTECH and BBI to revise the BBI Turnaround Plan to establish funding requirements.
2. The State, as the sole shareholder of SENTECH, to provide SENTECH with funding based on the approved Turnaround Plan.
3. The Minister to approve the sale of 74% of shares of BBI to SENTECH by signing the Sale of Shares Agreement (SSA) submitted by Sentech to the Minister with applicable terms and conditions. Suspensive conditions that can be fulfilled or waived must also be determined.
4. The BBI Memorandum of Incorporation (MOI) be amended in line with the Sale Agreement.
5. SENTECH to conclude the integration of BBI as its subsidiary.

SITA, meanwhile, is in the process of developing a roadmap for the review of its business model. The details of the review is expected to be submitted to the Department by the end of the current financial year. Once complete, the implementation of the new SITA business model and roadmap will commence in the new financial year and continue thereafter. The Department would then monitor progress through performance reports submitted by SITA.

 

Authorised for submission by

 

 

                                                                       

MS NONKQUBELA JORDAN-DYANI

DIRECTOR-GENERAL

DATE:

 

 

Recommended/not recommended

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

 

 

________________________________           

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Reply:

In July 2023 government launched an Energy One Stop Shop to assist Independent Power Producers (IPPs) with a streamlined process for various authorisations. The One Stop Shop falls under the stewardship of the Department of Trade Industry and Competition (DTIC) and the Department of Mineral Resources and Energy (DMRE) only provides necessary support. To avoid duplication of effort, the DMRE does not intend to establish a similar function within government which will serve the same purpose but will continue to provide support to the DTIC.

Reply:

 

Find reply here

Reply:

The Minister of Home Affairs was indeed informed in writing about service delivery challenges at the Phuthaditjhaba office. Water supply to the building was affected by a burnt water pressure pump on the galvanized water tank on top of the building. Municipal water supply was not reaching the building because there was no pressure at all. All bathrooms were not working due to no water supply.

As a result, and due to occupational health and safety considerations, the office started servicing clients from 07h30 in the morning and at 11h00 the office use to take the last group and close the door and serve the clients until they are all served, sometimes up to 14h30 or 15h30. However, the water supply to the building has been resolved and the office operates normal working hours until 16:00.

END.

Reply:

(i) No official vehicle has been purchased for use for the Minister since 08 May 2019.

(ii) Approval was obtained for the procurement of official vehicles for both Deputy Ministers on 14 October 2021. Official orders were placed on 01 December 2021 with the approved suppliers for both vehicles:

Deputy Minister Mashego Dlamini

(a) Toyota

(b) Fortuner 2.8 GD-6 VX A/T

(c) 2022

(d) R667 333.50

(e) Vehicle delivered in June 2022

Deputy Minister Botes

(a) Audi

(b) Q5 TDI QUATTRO S TRONIC

(C) 2022

(d) R718 459.99

(e) Vehicle delivered in September 2022

Reply:

According to the information received from SAA:

(1)(i) The license was revised on 14 February 2020 after adding new codeshare destinations to Kenya.

(1)(ii) The basis on which the International Air Services License (IASL) was issued may best be answered by the International Air Services Council.

2. We are unable to share the Management accounts as it contains commercially sensitive information on the airline. The information will be shared once the Annual Financial Statements are audited and tabled in Parliament.

3. The Board remains the accounting authority of SAA. The application was submitted to the International Air Services Council by the Interim CEO, Prof. John Lamola.

The Department and the Board are currently in the process of reviewing all aspects of SAA in order to strengthen its capacity to implement the strategic direction which has been set for it by the shareholder.

 

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

Find reply here

Reply:

The investigation is still underway and will be finalised by the end of March 2024.

Reply:

On 21st February 2024, the Minister of Finance announced 2024 MTEF allocation of R848 billion for the health sector which is inclusive of the following obligations:

• Payment of current employees and the impact of the wage bill agreement
• Provision of the health services in all facilities
• Medical equipment and consumables
• Maintenance and construction of new facilities

The consolidated assessment of equipment and consumables was not undertaken, however, health facilities do develop a demand plan for their equipment and consumables. Upon the budget allocation by the Provincial Treasury, Provincial Departments of health allocates the budgets and develop annual procurement plans.. The total allocated budget over the 2024 MTEF is R15,5 billion for machinery and equipment combined and R7.2 billion for consumables of which are medical supplies and laboratory services. Due to budgetary constraints, it is possible that the equipment and consumables needs will not be met based on the allocated budget.

END.

Reply:

I have been advised by the Department as follows:-

The total counsel fees, as paid for by the Office of the State Attorney to date, is R738 875,00.

Authorised for submission by

______________________________________

MS. NONKQUBELA JORDAN-DYANI DIRECTOR-GENERAL

DATE:

 

Recommended/not recommended

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

________________________________

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Reply:

1. No.

Employees and businesses operating in South Africa are generally subject to taxation in SA on the income derived from those SA activities. This is because the originating cause of the amount being received as income is the physical work that is undertaken to generate that income, which is located in SA (known as income from an SA source). However, most jurisdictions, including SA, also tax persons based on their being resident in those jurisdictions (known as residence-based taxation).

This could result in double taxation for the person concerned, as income may be taxed in SA based on that income being from an SA source while also being taxed in the jurisdiction where the person is a resident. To alleviate the problem of double taxation, SA has entered into a network of 79 tax treaties (23 jurisdictions in Africa and 56 jurisdictions in the rest of the world, mostly with SA’s main trading partners). Although the treaties are based on the OECD and UN models, there are variations between them depending on their age and the outcome of the negotiations between SA and the other jurisdictions. A list of the jurisdictions with which SA has tax treaties is available on the SARS website.

Under SA domestic law, SA will have the right to tax the employment income generated from the services rendered in SA. However, one of the rules generally found in a tax treaty, which will take precedence over domestic law, is that if the remote worker is in SA working for a foreign employer for less than 183 days in a twelve-month period, the employee’s country of residence will have the sole right to tax that income. No tax will be payable in SA and the remote worker should not register with SARS for income tax purposes. There are some exceptions to this rule, such as if the remote worker’s foreign employer has a tax presence (generally, a fixed place of business known for tax purposes as a “permanent establishment”) in SA; or if a South African business carries the cost of the remote worker’s employment by means of, for example, a cost recharge or service fee. In such cases, SA will have the right to tax the remote worker from day one.

Where the remote worker is in South Africa for more than 183 days in a twelve-month period, South Africa has a right to tax the remote worker on the income derived from working in SA, even if the foreign employer has no connection to SA. The remote worker will, therefore, have to register with SARS for income tax purposes and pay tax in SA on that income. As the foreign employer will not be deducting employees’ tax, the remote worker will be required to pay provisional tax every six months. The relevant provisions for the relief from double taxation in the employee’s jurisdiction of residence, set out in the tax treaty or the legislation of the jurisdiction of residence, will then come into play.

If there is no tax treaty between SA and the remote worker’s home jurisdiction, SA will tax the remote worker on the income generated in SA from day one.

A similar but not identical analysis applies if the remote worker is not an employee but instead renders independent personal services, such as a consultant with multiple foreign clients.

2. (a) The 1st phase of the SARS Traveller Management System was implemented during November 2022. As part of the implementation plan, the Communication and Marketing strategy included extensive public and private stakeholders’ engagements with, amongst other, the Department of Tourism; Department of Sports, Arts and Culture; Inter Ministerial Consultative Committee (IMCC); Border Technical Committee; Department of International Relations and Cooperation (DIRCO); Financial Intelligence Centre (FIC); Continental and Regional structures such as Southern African Development Community (SADC) and African Union (AU); WesGrow; Tourism Business Council of South Africa (TBCSA); and the Southern Africa Tourism Service Association (SATSA).

Furthermore, as part of making it easy for travelers to comply with their legal obligation, SARS also embarked on education and awareness initiatives such as a Traveller management webinar, digital advertising platforms, and a Traveller management webpage. Post implementation feedback sessions were also held with public and private stakeholders as part of continuous improvement.

The system was rolled out to all airports by September 2023 followed by specific land (Beitbridge and Skilpadshek), and seaports (Cape Town harbour) as pilot implementation. We are in process of finalizing roll-out at remaining ports. In order to make compliance easier a mobile app was implemented in December 2023, and we are currently developing additional functionality such as an online payment module, temporary import permits and the registration of goods for reimportation.

At this stage completion of the electronic Traveller Declaration is voluntary, and once the necessary legal provisions have been approved, it will be enforced as mandatory during the course of 2024.

b) The online Traveller declaration system enables travellers entering or leaving the Republic to meet their legal obligation to declare goods including currency in their possession before travelling and paying applicable taxes. The online declaration system is accessible through SARS website, Mobi-App and mobile device applications. Through this approach,

• The system creates a seamless process for compliant travellers at ports of entry/exit through providing the facility for pre-arrival automated declarations supported through integrated risk management and 3rd party data systems.
• Provides for the possibility of a coordinated border or whole of government approach to strengthen controls to detect and deter illicit activities such as illicit financial flows, prohibited and restricted goods, etc.
• Create awareness and provide clarity to build a culture of voluntary compliance.  

Reply:

Find reply here

Reply:

1. Detailed list of the 14 infrastructure projects recommended for a forensic investigation as highlighted by the Auditor-General’s report of 2019

	Project
1	Rock Art Tourism Phase 2, Eastern cape
2	Building of a Guest House 1 & 2, Free State
3	Sentinel Peal Car Access, Free State
4	Mnisi, Limpopo
5	VhaTsonga 1 & 2, Limpopo
6	Kamiesburg, Northern Cape
7	Nyandeni, Eastern Cape
8	Mthonsi Lodge, eastern cape
9	Qatywa, Eastern cape
10	Six Day Hiking Trail, Eastern Cape
11	Muzi Pan, Kwazulu-Natal
12	Sekhukhune, Limpopo
13	Tisane, Limpopo
14	Manyane Lodge, North West

(2)(a) Who were the officials presiding over the infrastructure projects that were under her department during the 2019 period?

Ms Morongoa Ramphela - DDG

Ms Lerato Matlakala – Chief Director

Mr Jonga Kuhlane – Director

Mr Thulani Sibeko – Director

Ms Mbali Zama - Director

Mr Thulani Mhlanga – Deputy Director (Project Manager)

Ms Lufuno Netangaheni – Deputy Director (Project Manager)

Mr Mandisi Mququ – Deputy Director (Project Manager)

Mr Brandon Canham – Deputy Director (Project Manager)

Ms Sandra Mocumi – Deputy Director (Project Manager)

Mr Godukile Mbolekwa – Deputy Director (Project Manager)

Ms Nonkululeko Madela – Deputy Director (Project Manager)

(2)(b)(i) What were the original project values per project?

	Project	Budget
1	EC Rock Art Tourism Phase 2	R 4,750,000
2	FS Building of a Guest House 1 & 2	R 34,234,974
3	FS Sentinel Peal Car Access	R 11,432,622
4	LP Mnisi	R 10,940,000
5	LP VhaTsonga 1 & 2	R 9,185,000
6	NC Kamiesburg	R 5,100,000
7	EC Nyandeni	R 7,600,000
8	EC Mthonsi Lodge	R 28,215,000
9	EC Qatywa	R 23,750,000
10	EC Six Day Hiking Trail	R 9,405,000
11	KZN Muzi Pan	R 12,447,480
12	LP Sekhukhune	R 10,622,500
13	LP Tisane	R 18,227,174
14	NW Manyane	R 48,465,113

(2)(b)(ii) What were the reasons for the variance between the fair value and expenditure incurred per project?

The reasons as per the AGSA findings include:

• Payments made to implementer for work not fully done;
• Ineffective identification, scoping and sourcing of projects;
• Scope of work changes not evaluated and pre-approve;
• Reports on Work-in-Progress were not reliable; and
• Poor quality of work.

Reply:

I have been informed by the SABC as follows:

The Department has facilitated a government allocated budget of R 35-million for both the editorial and technical requirements, including studio facilities and transmission costs.

The IEC is also supporting the SABC through trade exchange agreements to cater for key marketing and infrastructural elements at the Provincial and National Elections Results Operations Centres.

Authorised for submission by

______________________________________

MS. NONKQUBELA JORDAN-DYANI DIRECTOR-GENERAL

DATE:

 

 

Recommended/not recommended

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

________________________________

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Reply:

According to the information received from Transnet:

Multiple long-term strategies are being employed in the Ports of Richards Bay and Durban to reduce congestion in the port precincts. These include:

a) - Greater emphasis on the use of back-of-port storage facilities to minimize road congestion in the port. Durban is working on a mass container evacuation to the back-of-port facility to free up space and improve efficiencies in the terminal.

• Better traffic management in the city precincts through the truck appointment systems and cargo tracking app in the container terminals in Durban.

b) - Improving the rail transportation to and from the port thereby decreasing the reliance on road transport. Cargo owners are encouraged to take up rail contracts in Richards Bay for bulk commodities.

• Optimising terminal operations such as the implementation of a truck staging area in Richards Bay to reduce the number of trucks inside the port precinct.
• Better traffic management in the city precincts through the truck appointment systems and cargo tracking app in the container terminals in Durban.
• The root cause of inefficiencies at Richards Bay Multipurpose Terminal (MPT) and Dry Bulk Terminal (DBT) are mainly due to lack of investment in infrastructure. Competition has invested in far superior handling technology while RCB is still using technology from 40 years ago.
• The DBT will be investing in infrastructure through partnerships for major bulk-handling equipment. The MPT is introducing business process re-engineering and contemporary materials-handling-equipment to produce desired efficiencies.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1)

(a) Accommodation	(b) Air Travel	(c) Ground transportation	(d) Entertainment	(e) Other ancillary expenses
R838 576,58	R325 238,64	R260 014,26	-	R125 258,00

(2) National Treasury covered the cost of the department’s delegation only.

(3) The costs were covered from the budget of the Minister and the International and Regional Economic Policy Division.

Reply:

1. The funding of health (including medical) research is managed between the Departments of Higher Education, Science and Innovation and Health and their respective entities. To ensure public good policy goals are coherently promoted across the two systems, there is a high degree of collaboration between the two Departments and its entities. The Department of Science and Innovation (DSI) is working with the National Health Research Ethics Council of the National Department of Health, the South African Medical Research Council, as well as the Academy of Science of South Africa (ASSAf) to develop guidelines for health research data management. Public funded health research is informed by the priorities that are set by the National Health Research Committee of the National Department of Health in collaboration with the Department of Science and Innovation. Researchers at the public funded Higher Education Institutes should adhere to the set priorities. Should a company want to fund research in line with the national health research priorities, the research proposal needs to be approved by the respective Institutional or provincial health research ethics committee, to ensure fairness and access.

2. The building of the capacity with regards to the research ethics committees is the responsibility of the National Health Research Ethics Council (NHREC) of the National Department of Health. The NHREC is a statutory body established under the National Health Act No 61 of 2003. The Act mandates the Minister of Health to establish the Council and it sets out NHREC’s functions, which involves giving direction on ethical issues relating to health and to develop guidelines for the conduct of research involving humans. The following are the functions of the NHREC as outlined in the Act:

• Determine guidelines for the functioning of health research ethics committees;
• Register and audit health research ethics committees;
• Set norms and standards for conducting research on humans and animals including norms and standards for conducting clinical trials;
• Adjudicate complaints about the functioning of health research ethics committees and hear any complaint by a researcher who believes that he or she has been discriminated against by a health research ethics committee.
• Refer to the relevant statutory health professional council matters involving the violation or potential violation of an ethical or professional rule by a health care provider.
• Institute such disciplinary action as may be prescribed against any person found to be in violation of any norms and standards, or guidelines, set for the conducting of research in terms of this Act; and
• Advise the national department and provincial departments on any ethical issues concerning research.

Reply:

1. Whether all variations/deviations incurred were properly authorized; if not, why not; if so, what are the relevant details?

I have been informed that the details are contained in the Annual Report of 2019 on the Department’s Website: https://www.tourism.gov.za/ResourceCentre/Pages/Reports.aspx

(2)(a) Whether there were any irregular activities in the management of the specified projects; if so, what are the relevant details of the irregularities?

Details of the findings are contained in the Annual Performance Report of 2018/ 2019 as well as in the Auditor General’s presentation to the Portfolio Committee on 8 October 2019.

https://www.tourism.gov.za/ResourceCentre/Pages/Reports.aspx.

(2)(b) and (2) (c) consequence management measures were taken against officials who were responsible for overseeing and/or residing over these projects and what are the specified measures;

(i) Disciplinary Process: Seven employees who were directly involved in the management of the projects were charged with gross financial misconduct and gross negligence. Two were not found guilty of the charges preferred against them. The Department has referred these cases to the Labour Court to review the ruling of the Chairperson of the disciplinary hearing. The parties, being the department represented by the State Attorney and the employees, represented by their lawyers are currently exchanging and the cases will be set down for hearing at the Labour Court in due course when pleading has closed.

(ii) Criminal Charges - The Department, following the provisions of the PFMA regarding allegations of financial misconduct, opened criminal cases with the South African Police Services (SAPS), against the implicated officials. SAPS investigations are currently underway.

(3) Will the Minister furnish Ms H Ismail with the basic account system payment reports on all projects from 1 January 2007 to 31 December 2022; if not, why not; if so, what are the relevant details?

The Financial Reports and Audited Financial statements are contained in the Annual Report (s) on the department’s website.

https://www.tourism.gov.za/ResourceCentre/Pages/Reports.aspx

The Department’s Annual Performance Reports older than 2010 are available in Parliament’s Library and will be listed as the Department of Environmental Affairs and Tourism.

Reply:

1. (a) NSFAS received 1,936,330 bursary applications for the 2024 academic year (to date i.e. 07 March 2024).

(b) (i) The total number of applicants that qualified is 1 258 509.

(ii) The total number of applicants that did not qualify is 230 669.

(c)(i) Total number that was approved is 1 258 509.

(ii) Total number that was rejected is 230 669.

(d) (i) 1 258 509 of the qualifying students were approved.

(ii) 19 149 have submitted appeals.

(iii) 230 669 will not be catered for as they have been rejected.

2. The common reasons for rejection of the bursary applications at NSFAS are based on the following.

a) financial eligibility criteria where family income is above the NSFAS threshold of R350 000,

b) failure to meet academic eligibility criteria, such as the N+ rule.

Reply:

It is not consistent with the procurement policies of the Development Bank of Southern Africa to make material amendments in the requirements after a tender has been adjudicated.

 

Reply:

1. No correspondence has been received by the National Treasury relating to the Sale and Purchase Agreement and the proof of funds necessary for the Strategic Equity Partnership transaction.

2. National Treasury did not conduct a review of the Strategic Equity Partnership transaction as it was not subject to section 54(2) of the PFMA. Once the Sale and Purchase Agreement is received by the National Treasury, it will be reviewed to determine whether it poses risk to the fiscus through fiscal obligations.

3. No details have been received by National Treasury on the compensation to be received by government for the sale of the majority shareholding to the Takatso Consortium. The details are contained in the Sale and Purchase Agreement which National Treasury was not involved in the negotiation thereof. National Treasury currently has no details related to the sale other than what has been made publicly available by the Department of Public Enterprises.

4. SAA submitted PFMA section 54 applications for the disposal of wide-body aircraft and non-core property that formed part of the old Durban International Airport. The Minister of Finance has approved both transactions.

Reply:

Regarding (a), (b), (i), (ii) (aa) – (ee), at present, the department has not planned to host events nor allocated any budget for such events taking place before, or on and after 29 May 2024 to celebrate 30 years of democracy in the Republic. All our planned activities are in line with the department’s mandate and operational plans.

 

Reply:

1. Will the Minister furnish Ms H Ismail with a list of the contractors appointed to the ​projects; if not, why not; if so, by what date does she envisage doing so?

	Project	Implementing Agent
1	EC Rock Art Tourism Phase 2	African Implementation Management Services Pty Ltd
2	FS Building of a Guest House 1 & 2	Phase 1: Nambo Property & Project Manager cc t/a Nombo Mabhele Phase 2: River Ranger Management
3	FS Sentinel Peal Car Access	Hentig 2715 (Pty) Ltd
4	LP Mnisi	African Implementation Management Services Pty Ltd
5	LP VhaTsonga 1 & 2	African Implementation Management Services Pty Ltd
6	NC Kamiesburg	Ishabi Pty Ltd
7	EC Nyandeni	Nyandeni Development Trust
8	EC Mthonsi Lodge	MBB Consulting Services
9	EC Qatywa	Makhanyeni Housing Estate (Pty) Ltd
10	EC Six Day Hiking Trail	Simply Indigenous cc
11	KZN Muzi Pan	Rich Rewards Trading 34 (PTY) Ltd | Reg No: 2003/022344/07 T / A Sigma International
12	LP Sekhukhune	Mabhucu Construction Suppliers Cc
13	LP Tisane	Baitsenape Investments cc
14	NW Manyane	Re A Aga Infrastructure (Pty) Ltd

2. Whether any of the contractors appointed have been red flagged for future appointments; if not, what is the position in each case; if so, what are the further, relevant details?

No contractor was red flagged; however, the matters have been reported to the police and civil litigation is being pursued through the Office of the State Attorney.

Reply:

a) During the 2022/23 financial year, the Department of Home Affairs issued 30 asylum transit visas in terms of Section 23 of the Immigration Act, Act 13 of 2002.

b) In the 2023/24 financial year to date, the Border Management Authority issued 61 asylum transit visas in terms of Section 23 of the Immigration Act, Act 13 of 2002.

END.

Reply:

According to the information received from Transnet:

Preliminary competitor analysis demonstrates that the Trans-Kalahari Railway project and port developments in Namibia will have a minimal impact on Transnet Port Terminal’s long term volume growth. This is chiefly due to the following reasons:

• At the time of commercial operation of the Trans-Kalahari railway project, Transnet would have stabilized its rail and terminal operations as per the approved turnaround plan thus significantly reducing Customer churn rate.

• Transnet will continue with the implementation of long-term contracting regimes with predictable commercial arrangements. This will ensure volume growth and long-term sustainability for the Iron Ore and Manganese Customers who are targeted by the Trans-Kalahari project.

• Transnet is future-proofing its operations by creating additional capacity in line with Customer validated demand to neutralize any potential volume and revenue leakage.

Transnet must anticipate competition from other ports and rail corridors and “raise the bar” in respect of both infrastructure maintenance and operational efficiency. This is now taking place under the rubric of the Transnet Recovery Plan, notwithstanding the huge financial, operational and governance damage done during the State Capture period.

 

 

Remarks: Reply: Approved / Not Approved/Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

Question 1

The total revenue collection from the plastic bag levy since its introduction in 2004 amounted to R5.3 billion. Table 1 below shows the revenue collections for the period 2004 to 2023.

Table 1: Plastic bag revenue collection (2004 to 2023)

Fiscal year	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Revenue (R million)	41,2	61,4	75,1	86,3	78,6	110,5	257,1	160,6	150,8	169,2
Fiscal year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
Revenue (R million)	174,3	183,3	231,9	241,3	300,4	317,9	579,8	658,2	679,8	778,4

Question 2

In 2004, government introduced the plastic bag levy as part of a package of measures to promote the reduction, reuse, recycling and diversion of plastic bags away from landfills. These measures included a regulation on the minimum thickness of plastic bags; disclosure and transparency of the costs of plastic shopping bags by retailers; regulation of the type and amount of ink to be used for printing on bags; awareness and market promotion for recycled materials; and prohibition of plastic bag imports.

The levy gives effect to the polluter pays principle and is aimed at internalising the negative environmental and health costs of plastic bag production, use and disposal into the retail price of plastic bags. It contributes towards government’s goal of zero waste to landfill as set out in the 2020 National Waste Management Strategy and target for 100 percent recycled materials in plastic bags by 2027.

i) The ringfencing of tax revenues is not supported. Ringfencing introduces rigidities into the budget process and breaks the link between a budget allocation and efficient spending. Such practices prevent the continuous evaluation and modification of tax and spending programmes and could result in a misallocation of public funds where there may be too much or too little spending on a particular government priority.

ii) Revenues raised from taxes flow into the National Revenue Fund and are allocated to government priorities as part of the budget process. Although the plastic levy is not ringfenced, public funds are allocated to environmental protection and waste management initiatives of the Department of Forestry Fisheries and the Environment (DFFE). Details on the expenditure allocations to the Environmental and the Chemicals and Waste Management programmes are provided below.

• a) Programme 6: Environmental Programmes

The DFFE coordinates the implementation of green economy projects in the environment sector under the Expanded Public Works Programme and provides monitoring and evaluation support to the programmes. This includes the War on Waste, Working for the Coast, Working for Wetlands, People and Parks, open space management, and the Working for Water, Energy, Fire, and Forests programmes.

Table 2 below shows the spending allocations to the different subprogrammes amounting to about R11.2 billion from 2020/21 to 2023/24 and estimated allocations of R8.7 billion over the medium term up to 2026/27.

Table 2: Environmental Programmes expenditure trends and estimates by subprogramme and economic classification

Subprogramme (R million)	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27
Environmental Programmes Management	109,5	293,5	1 057,1	7,9	6,9	7,8	8,1
Environmental Programme Region 1	446,8	471,5	2 041,3	919,5	913,2	987,7	1 119,9
Environmental Programme Region 2	1 557,4	1 249,4	6,1	1 064,6	1 214,9	1 150,7	1 180,9
Environmental Programme Region 3	446,8	471,5	61,9	815,9	553,7	626,1	614,2
Sector Coordination and Quality Management	56,8	100,4		112,2	104,8	110,5	117,9
Total	2 617,3	2 586,3	3 166,3	2 920,0	2 793,4	2 882,8	3 041,1

Source: National Treasury

 

• b) Chemicals and Waste Management Programme

The objectives of the Chemicals and Waste Management programme are to oversee, monitor and evaluate the performance of the waste sector, ensuring that less waste is generated, and existing waste is better managed. Seven (7) subprogrammes for chemicals and waste management, including Integrated Waste Management, Hazardous Waste Management and Licensing, Chemicals and Waste Economy Programme Coordination and the Waste Bureau are implemented.

For the period 2020/21 to 2023/24, about R2 billion was allocated to the chemicals and waste programme, with R1.4 billion allocated to the Waste Bureau, accounting for about 68 per cent of the total budget, as shown in Table 3 below. The estimated allocation to the programme over the medium term from 2024/25 to 2026/27 is R2 billion.

Table 3: Chemicals and Waste Management expenditure trends and estimates by subprogramme and economic classification

Subprogramme (R million)	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27
Chemicals and Waste Management	6,1	5,9	26,3	7,1	7,6	7,9	8,2
Hazardous Waste Management and Licensing	26,0	29,8	27,1	33,4	37,9	39,5	41,1
Integrated Waste Management	17,3	46,5	113,0	47,3	47,9	49,9	51,1
Chemicals and Waste Management Policy and Specialized Monitoring Services	14,9	60,9	27,8	50,4	52,7	53,8	57,6
Chemicals and Waste Economy Programme Coordination	11,2	16,5	16,7	21,3	21,0	22,1	23,0
Chemicals Coordination	20,6	15,8	–	18,6	23,2	24,5	25,9
Waste Bureau	300,3	312,6	406,3	406,1	468,9	489,9	512,3
Total	396,3	488,1	617,3	584,2	659,2	687,6	719,2

Source: National Treasury

The Recycling Enterprise Support Programme was established to provide support to small and medium sized enterprises for establishing recycling businesses. Transfers to the Recycling Enterprise Support Programme over the period 2020 to 2026 are estimated at R380,5 million, as shown in Table 4 below.

Table 4: Transfers to Recycling Enterprise Support Programme

R'000	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27	Total
Recycling Enterprise Support Programme	2,749	-	92,824	74,506	67,084	70,088	73,309	380,560

The on-budget allocations to the Environmental and the Chemicals and Waste Management programmes of the DFFE exceed the revenue collection from the plastic bag levy.

Reply:

The details of the vehicles bought for the Minister of Sport, Arts and Culture and the Deputy Minister since 8 May 2019 are as detailed below: - Deputy Minister of Sport, Arts and Culture are as follows.

Vehicle	Minister	Deputy Minister
(a) Make	No vehicles purchased.	BMW
(b) Model	N/a	520d
(c ) Year	N/a	2020
(d ) Purchase date	N/a	15/01/2020
(e ) Purchase price	N/a	R 649 000.00

 

THANK YOU

Reply:

Find here: Reply

Reply:

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) Guidelines for implementation of Article 5.3 recommends that Parties monitor the activities of the tobacco industry. The Convention Secretariat assisted countries with the establishment of tobacco industry observatories in some interested Parties. One of the Observatories is based in South Africa specifically to monitor tobacco industry interference. These observatories inform policy makers and governments on Tobacco industry activities. The South Africa based observatory is called Africa Centre for Tobacco Industry Monitoring and Policy Research (ATIM).

The Department works closely with ATIM- one of their functions is to interrogate research by the industry and they have been able to identify studies and scientist that are funded by the tobacco industry. The Department has access to ATIM findings which have demonstrated how industry has manipulated, suppressed or used data incorrectly to suit the needs of the tobacco industry.

The Department also is also influenced by research and analysis conducted by the South African Medical Research Council (SAMRC), who analyse studies conducted by the Tobacco industry, further citations from other reputable research organisations that are pro-tobacco control and pro-protection of public health are available for use.

The current and proposed laws on tobacco control warrant that the tobacco industry discloses the research conducted by a manufacturer or by a person conducting research paid for in whole or in part by a manufacturer.

END.

Reply:

The Department of Public Service and Administration has purchased one (1) official vehicle for the Minister and two (2) official vehicles for the Deputy Minister since 8 May 2019. Details of the vehicles as purchased are as follows:

(i) Minister (Seat of office - Pretoria)

1. Make: BMW
2. Model: X3 sDrive20i
3. Year of Manufacture: 2023
4. Date of Purchase: 19 January 2024
5. Purchase Price: R772 808.00

(ii) Deputy Minister (Seat of office – Pretoria)

1. Make: BMW
2. Model: 520D
3. Year of Manufacture: 2022
4. Date of Purchase: 9 June 2022
5. Purchase Price: R748 624.04

(iii) Deputy Minister (Seat of office – Cape Town)

1. Make: Audi
2. Model: Q5 45 TFSI
3. Year of Manufacture: 2023
4. Date of Purchase: 31 May 2023
5. Purchase Price: R790 000.00

End

Reply:

The National Department of Health (NDoH) collaborates with the Department of Higher Education, Science and Innovation through the National Health Research Committee (NHRC). NHRC is an NDoH Ministerial Advisory statutory body established in terms of National Health Act of 2003. It responsible for determining the nature, scope, as well as the co-ordination of health research. NHRC is made up of researchers and representative of various academic institutions.

It is a prerequisite that all health research proposals and protocols are reviewed and approved by the health research ethics committee which is registered with the National Health Ethics Council (NHREC) to ensure transparency and integrity of health research. The NHREC is mandated by the Health Act of 2003 to develop guidelines for institutional research ethics committees (IRECs), register and audit IRECs, advise the department of health on all research ethics matters, and adjudicate complains about health research ethics committees.

END.

Reply:

Find reply here

Reply:

1. The Department of Human Settlements purchased the following vehicles, since 8 May 2019:

(a) AUDI.

(b) Q5 40 TDI.

(c) 2022.

(d) (i) Minister, none.

(ii) the Deputy Minister, 27 July 2022 and

(e) Purchase price for:

(i) Minister, none.

(ii) the Deputy Minister, R 795 280.97.

Reply:

(a) and (b)

The Minister of Health, through the Foodstuffs, Cosmetics and Disinfectants Act (FCD), 1972 (Act. 54 of 1972) regulates foodstuffs with the aim of promoting food safety and to prohibit the misleading advertising of foods. The regulations relating to foodstuffs are aligned to the global best practice of the joint World Health Organisation and Food and Agricultural Organisations’ Codex Alimentarius.

The Department of Health is committed to the improvement of the health and nutrition of South Africans through regulating the labelling of foodstuffs sold in South Africa. This would allow South Africans to make healthy food choices without being misled through inaccurately labelled and advertised foodstuffs thereby assisting consumers to make good nutritional choices and adopt a healthy lifestyle.

In terms of the legislation “it is an offence’ to sell foodstuff that does not bear a label indicating the kinds or grades of ingredients and their proportions or amounts present in a mixed, blended or compounded foodstuff.

The Minister of Health has published the following regulations to help reduce premature death from noncommunicable diseases which is Goal 3.4 of the Sustainable Development Goals:

1. Regulations relating to Trans-Fats in foodstuffs (No.R.127 of 2011), prohibit the sale, manufacture and importation of oils and fats, including continuous phase emulsions, either alone or as part of processed foods. An increased intake of trans fat (>1% of total energy intake) is associated with increased risk of coronary heart disease (CHDs) mortality and relevant events. South Africa is one of the global leaders in protecting the heart health of its citizens through the regulation of Trans Fats.

2. Regulations relating to the reduction of sodium in certain foodstuffs and related matters (No.R.214 of 2013) to help in reducing salt (sodium chloride) intake to less than 5g per day. Excessive salt intake is associated with high blood pressure (hypertension) which is a major risk factor for CVDs. Scientific evidence suggests that reducing sodium intake significantly reduce blood pressure and risk of cardiovascular diseases in adults particularly its contribution towards coronary artery disease and stroke. South Africa is the first country in the world to legislate salt levels to help reduce the amount of salt in processed foods.

3. Regulations relating to foodstuffs for infants and young children (No.R.991 of 2012) aims to protect and promote optimal infant and young child feeding practices and to encourage the safe and appropriate use of commercially processed foods through regulating the labelling, advertising, sale and promotion, and the provision of information and education relating to infant and young child feeding and nutrition.

4. Regulations governing general hygiene requirements for food premises, the transport of food and related matters (No.R.638 of 2018) ensures that all food products are safe for consumption by the public. The regulations apply to all food establishments, including restaurants and hotels, and cover a range of topics including hygiene, food handling, transportation, storage and food preparation. All food establishments that comply with these regulations are issued with the Certificate of Acceptability.

The Minister has also published draft regulations to improve food labelling requirements so that consumers are clear about the contents of food. (No.R.146/2010). These regulations include the following :

(i) a model to classify healthy foods

(ii) specifying criteria for health claims, and,

(iii) a mandatory Front of Pack Label in the form of a easily understood logos, to assist consumers in identifying foods that exceed the threshold of certain “negative” nutrients (added sugar, sodium, and saturated fats) that contribute to the rising obesity and non-communicable disease and death burden in South Africa.

These regulations are implemented at local government level where health inspectors would do inspections to check compliance with regulatory requirements outlined above.

The purpose of regulating the sale and marketing of foods is to inform the consumer of the risk associated to the consumption of particular foods. Evidence from several countries suggests that consumers make healthy food choices when provided with information about the food they consume.

END.

Reply:

Since 1 June 2019 the department only bought one vehicle for the current Minister: Dr. MJ Phaahla, MP, when he was the Deputy Minister as per the table below:

Members of Executive Authority	(a) Make	(b) Model	(c) Year of Manufacture	(d) Cost	(e) Purchase date
i) Minister: Dr MJ Phaahla, MP	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made
ii) Former Minister: Dr ZL Mkhize, MP	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made
iii) Deputy Minister: Dr S Dhlomo,MP	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made	No Procurement was made
iv) Former Deputy Minister: Dr MJ Phaahla	Audi	Q5	2020	R 756,489.83	10/5/2020

END.

Reply:

The Department purchased the following vehicles for the Ministers and Deputy Ministers since 8 May 2019:

(a) Make	(b) Model	(c) Year of Manufacture	(d) Date of Purchase	(e) Purchase Price	(d) Official
BMW	X3	2021	11 October 2021	R799,563.97	Deputy Minister Magadzi (PTA)
Audi	Q5	2022	06 October 2022	R786,706.94	Minister Mchunu (CPT)
Audi	A6	2022	19 November 2022	R741,656.22	Deputy Minister Mahlobo (CPT)

 

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