Questions and Replies

Reply:

The incidence of teenage pregnancy as it affects the dropout of adolescent girls from school is a competence of the Departments of Basic Education, Health, Social Development, and the South African Police Service as applicable. In its 2023 report titled “Learner pregnancy-policy interplay: School dropout of adolescent girls during pregnancy and in the postpartum period in selected South African provinces”, the The Commission for Gender Equality (CGE) recommends that these departments spearhead school-based and community programmes aimed at eliminating the incidence of teenage pregnancy in schools. Consequently, a comprehensive reply may be obtained from these relevant departments.

Nevertheless, the Department of Women, Youth and Persons with Disabilities has coordinated relevant government departments and initiated a process to develop a draft integrated program of action on the prevention and elimination of teenage pregnancy as a part of the implementation of the National Strategic Plan on Gender Based Violence and Femicide (NSP on GBVF). This process is initiated to address the fragmented nature of the current interventions toward an all-of-society preventative approach as we battle to end the scourge of teenage pregnancy.

Reply:

1.Three government Departments namely, the Presidency, International Relations and Cooperation and Justice and Constitutional Development had legal representation for the ICJ case argued on 11 and 12 January 2024.

I am only able to respond with regard to the Counsel and costs falling under the Department I am responsible for.

The Department of Justice and Constitutional Development had 1 senior and 2 junior counsel who handled the matter on a pro bono basis,

(2) I am not aware of any third parties’ sponsorship.

(3)

(a) There were three legal practitioners / counsel who were on brief by the Department of Justice and Constitutional Development (the Department).

(b) I attended the proceedings at the International Court of Justice (ICJ) on 11 and 12 January 2024 together with three officials.

(4) The information is as follows: -

(a) The costs in respect of travel for:

1. Legal team is R277 083.
2. Minister is R443 442.
3. State Officials is R1025 359, (this includes the VIP Protector who is employed by SAPS, so considered an official)

(b) The total costs for accommodation:

1. Legal team is R73 420.
2. Minister is R43 999.
3. State Officials is R58 115. (this includes the VIP Protector who is employed by SAPS, so considered an official)

c) Subsistence Allowance for Minister & Officials

1. R34 080,42

(5) Yes. South Africa is extremely proud that we took this matter to the ICJ. As Government, South Africa could not sit idly and watch the killing of innocent people in Gaza. South Africa stepped up at the time when thousands of lives, mainly vulnerable women and children, were killed and our efforts drew the world's attention that a genocide is happening in Gaza. Several other countries joined in the condemnation of the genocide and pledged support and solidarity with South Africa for its stance against genocide. This is evidenced by the fact that the ICJ held, by fifteen votes to two, that the State of Israel must, in accordance with its obligations under the Convention on the Prevention and Punishment of the Crime of Genocide, take all measures within its power to prevent the commission of all acts within the scope of Article II of this Convention. Moreover on 26 January 2024, the court ruled that “the present perilous situation demands immediate and effective implementation of those measures”, in response to the Article 75 application of the ICJ, that Israel is bound by the provisional measures order.

Reply:

The Minister of Public Works and Infrastructure

The Minister of Public Works and Infrastructure, his department and officials of his department have not received any (a) sponsorships, (b) donations and (c) financial transfers for lawfare and/or any other purposes by any (aa) Qatari, (bb) Iranian and/or (cc) Russian organ of state, organisation and/or resident since 1 January 2021 up to 29 February 2024.

Reply:

The question falls under the Executive Authorities of the Members of the Executive Council (MECs) of the 9 provinces. The Hon Member is kindly requested to refer the question to the MECs as per section 92(3)(b) of the Constitution and Rule 134(5)(b) of the NA rules. 

                                                                 

Reply:

(a) Three government Departments namely, the Presidency, International Relations and Cooperation and Justice and Constitutional Development had legal representation for the ICJ case argued on 11 and 12 January 2024.

I am only able to respond with regard to the Counsel and costs falling under the Department I am responsible for.

The Department of Justice and Constitutional Development briefed three legal practitioners / counsel - a senior and 2 juniors who acted on a pro bono basis for the application and hearing on 11 and 12 January 2024.

The costs in respect of travel for:

1. Legal team is R277 083.
2. Minister is R443 442.
3. State Officials is R1025 359, (this includes the VIP Protector who is employed by SAPS, so considered an official)

The total costs for accommodation:

1. Legal team is R73 420.
2. Minister is R43 999.
3. State Officials is R58 115. (this includes the VIP Protector who is employed by SAPS, so considered an official)

Subsistence Allowance for Minister & Officials

1. R34 080,42

(b) The above funds were sourced from the Department of Justice and Constitutional Development.

Reply:

The NCACC has not received any names of applications whose applications in terms of the Regulations of the Foreign Military Assistance Act, No 15 of 1998, were declined by the SA National Defence Force to render support under the flag of a foreign country in a plausible genocide that the Republic does not support or agree with, but who nevertheless continued to render such support in a genocide and/or the names of persons who failed to apply for permission in terms of the Regulation of the Foreign Military Assistance Act, No 15 of 1998.

The NCACC does not have any names of persons who failed to apply (applications) in terms of the Regulations of the Foreign Military Assistance Act, No. 15 of 1998, but is providing such assistance under a foreign flag in a war that the Republic does not support.

The NCACC does not and/or should not receive a name-list from a source when applying under the RFMA since each application is considered on a case by case basis and should meet certain criteria for consideration and possible approval. The South African National Defence Force is constituted in terms of s200 under the Constitution (Act 108 of 1996). This is informed by s198 which are the guiding principles of Security Services in South Africa, while s199 reflects the establishment, structuring and conduct of Security Services. This is the casting of the centrepiece of the RFMA.

The RFMA Act states that it intends: to regulate the rendering of foreign military assistance by South African juristic persons, citizens, persons permanently resident within the Republic and foreign citizens rendering such assistance from within the borders of the Republic.

It is trite that given the intention of this Legislation (supra), areas of conflict wherever they occur in the world would be out of bounds for South Africans (Natural and Juristic) and would not enjoy assent of the Republic to partake in.

Further, it is common cause that should it be a case that a South African is involved in an area of conflict. This would be done without the support of the Government of South Africa.

Furthermore, whenever should such violators of the Act be identified, and such participation can be proven the full course of the law shall be visited upon to penalise them.

I thank you.

Reply:

I have been informed by the Department as follows:

No such sponsorships, donations and financial transfers were received by the Minister, the DCDT or departmental officials.

I thank you.

Reply:

The Minister of Public Works and Infrastructure:

(1)

(a) Three(3) generators were purchased for the replacement of existing non-functional generators.

(b) The purchase the three generators amounts to R387 751.25, R349 998.93 and R 241 674.00, respectively.

(c) One (1) Minister and two (2) Deputy Ministers were been allocated a generators.

(2) There are no plans to purchase additional generators, as all existing generators are in good working condition.

(3) The scope of works related to the maintenance of the generators, is attached as Annexure A.

(4) The detail cost with the total amount spent on diesel, is attached as Annexure B.

Reply:

The employment of young graduates, particularly medical practitioners is a competence of the Department of Higher Education, Science and Innovation and the Department of Health. A detailed reply to the question may be sourced from these departments as necessary.

Reply:

The Minister of Public Works and Infrastructure:

1. (a) The halls in different Parliamentary villages are hired for person purpose of the hiring residence,such as birthday parties etc.

(b) the halls are strictly hired for use of residences of the different Parliamentary villages, and only under exceptional circumstances other users are permitted, and such permission is can be granted by the chairperson of the parliamentary village.

(c) the total income generated from hiring the halls in the last financial year is R1300

2. The halls are for the use of residents, only under exceptional circumstances, and through the permission of the chairperson that hiring to non-residents is considered. To ensure safety of residents, non-residents users must provide a guest list to the respective parks office prior to the date of the event, so that there is a measure of control of who is in the Parliamentary village during the vent. The attendees are checked by police against the list provided, at the front gate on the day of the event.

Reply:

1. The Department never received any formal memorandum from the Office of the State Attorney Cape Town. However, we learnt from the Sunday Times that such a memorandum existed. We then investigated and found that there was correspondence between two junior officials, one from the Department and the other from the Office of the State Attorney Cape Town. We enquired from the Head of the Office of the State Attorney Cape Town, Mr Mbeki, whether he had any knowledge of such correspondence. Mr Mbeki confirmed that he did not approve such correspondence and that he only learnt from the media that there was such a memorandum. We therefore do not regard that memorandum as official correspondence save to state that, information contained therein is inaccurate.

2. As at 31 January 2024, the Critical Skills, Business and General Work Visas that form part of the annual performance plan have no backlogs. Majority of the delays and backlogs are on two visa categories, they are section 11(6) and Section 18 visas for spousal and relatives respectively.

The department experiences challenges concerning the legitimacy of relationships being claimed and cited in the applications. It must be noted that some foreign nationals have taken advantage and follow corrupt methods to legitimise themselves, family members, friends and others. The backlog for both stands at 79 916. 85% of the backlog falls under these two categories where massive corruption and collusion was detected. The breakdown is as follows:

Temporary Residence Permit: Categories
Row Labels	31-Jan-24
Exchange Visa Section 22	9
Medical Treatment Section 17	1090
Relative's Visa (brother) Section 18	2609
Relative's Visa (major child) Section 18	3952
Relative's Visa (minor child) Section 18	9580
Relative's Visa (Parent) Section 18	2190
Relative's Visa (sister) Section 18	841
Relative's Visa (Spouse)	18661
Retired Person Visa Section 20	1686
Study Visa Section 13	1751
Treaty Visa Section 14	49
Visitor's Visa Section 11(1)	1106
Visitor's Visa Section 11(1)(b)(i)	14
Visitor's Visa section 11(1)(b)(ii)	2229
Visitor's Visa Section 11(1)(b)(iii)	191
Visitor's Visa Section 11(1)(b)(iv)	3883
Visitor's Visa Section 11(2)	1233
Visitor's Visa Section 11(6)	41083
Grand Total	92157

END

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Reply:

The National Gambling Board (NGB) has informed the Department that no Executive level appointments were made during the period 1 January 2023 to 24 February 2024. However, an Acting Chief Technology Officer was appointed in September 2023. The NGB has advised that the vacant Executive position Chief Technology Officer has been advertised.

-END-

Reply:

a) The total number of Smart Identification Cards (ID) fluctuate usually on any given time because, as Id Cards are collected, new applications come in immediately.

Most people who apply for Id Cards, actually have the green identity booklet, hence they are not in a hurry to collect smart Id Cards because they still have the Id (green barcoded) booklet which allows them to do everything.

Presently the number of uncollected new issued Id Smart card is 105,000.

(b) Part of the intervention strategies being employed to ensure that identity documents are collected before 29 May 2024 include: -

• Home Affairs will open its offices countrywide for seven (7) Saturdays prior to Election Day. These are 06, 13, 20 April 2024 and 04, 11, 18, and 25 May 2024, which will be from 08H00 until 17H00, to encourage collection of identity documents, as well as dealing with resolution of duplicate cases.
• Additional three (3) hours per day of service delivery on 27 and 28 May 2024 will be effected.

• On Election Day, 29 May 2024, Home Affairs will extend its operational hours in line with the IEC.
• Mobile Units will be deployed to far-flung areas where Home Affairs does not have presence.

END.

Reply:

Chapter 1 of the Restitution of Land Rights Act 22, Act 22 of 1994, as amended, under the definitions defines “equitable redress” as any equitable redress, other than the restoration of a right in land, arising from the dispossession of a right in land after 19 June 1913 as results f past racially discriminatory laws or practices including:

a) the granting of an appropriate right in alternative state-owned land.

b) the payment of financial compensation.

During optional workshop, as part of the activities towards the settlement of a land claim, claimants are presented with settlement options and advised/requested to choose their preferred option for the settlement of their claim from the below options:

1. Restoration.
2. Alternative land;
3. Financial Compensation.

The above options are supported by policy provisions of the Commission and the Department in ensuring that equitable redress is implemented in line with enabling Legislation.

The financial compensation option allows the claimants urgency and a right to choose how justice is restored and meted out. Some of the claimants opt for financial compensation because they have land and are looking to develop or upgrade what they already have. They also want to honour their ancestors in the meaningful way through the compensation they receive. A recent evaluation conducted by UCT further confirms the positive benefits on the lives of the restitution beneficiaries.

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Reply:

The Department has commenced an investigation into matters relating to the National Gambling Board, initially focused on the procurement of the building. A forensic investigating company has been appointed in this regard.

A further briefing by the Department relating to remuneration and authorization for overseas travel has raised governance questions relating to these matters. This will now be included in the forensic investigation.

The Department is also considering what appropriate immediate steps should be taken in addition to the above.

Once the investigation is complete, the necessary actions will be taken where warranted, and a report will be submitted to Parliament.

-END-

Reply:

a) All livestock that is kept at departmental farms is managed through programs that stipulate when supplementary feeding and mineral supplements should be provided, when vaccinations should take place and further stipulates which vaccines are appropriate for viral diseases like RB51, Brucellosis, Anthrax and Black Quarter. The vaccination programs differ from farm to farm depending on disease prevalence within any area.

Bonsmara cattle are kept on the specified farm. The Armoedsvlakte Experimental farm in the North West province was vaccinated annually in accordance with the vaccination program that is developed and guided by the Provincial Veterinary Services. Proper management of these farms in terms of health protocols is demonstrated by the fact that there has not been any animal disease outbreak whose origin can be traced to any state farms for the past five years to date.

(b)(i) The farms at all government farms procure their provisions following the normal procurement processes and most of the time utilise the RT 12 and or similar National Treasury tender systems to ensure there is a consistent supply of vaccines.

(ii) The state farms in the North West province produce their own forages, lucerne, turf etc. This is a proper farm management principle that helps to meet provincial fodder flow for winter/drought intervention.

The locally developed Bonsmara cattle kept on this farm are adaptable and rely on a natural extensive (veld) farming system as is the case with other indigenous and locally developed farm animals in South Africa. However additional feeds (mineral licks) are procured and provided to animals to complement natural veld, and this is also to ensure that animals receive additional balanced nutrition throughout the year.

Reply:

The South African Bureau of Standards has furnished me with the following response to the question:

As part of the Turnaround Plan, the SABS undertook an organisational review exercise with the objective of determining a suitable Operating Model and a fit for purpose Organisational Structure which got approved by the Administrators following extensive consultations with the SABS employees. The new structure has 829 positions, but the management agreed to freeze 71 posts due to budget constraints. That left a total of 758 posts. To fill these positions, some of which were new, others redefined, the matching and placement process was undertaken and concluded in October 2023.

As at 31 March 2024, 662 of 758 positions were filled.

Of the 96 posts, the management has prioritised the filling of 59 vacancies due to further financial constraints. These will be filled as follows:

• 37 in 2024/25, and
• 22 in 2025/26, subject to the availability of funding.

-END-

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Reply:

a) The Department of Agriculture, Land Reform and Rural Development (DALRRD) through the Provincial Departments of Agriculture (PDAs) is providing Extension and Advisory Services (EAS) to various categories of farmers. Public extension practitioners provide support mostly to smallholder and subsistence farmers whereas most commercial farmers have private extension practitioners.

b) DALRRD developed an extension programme to increase the capacity of EAS by recruiting unemployed agricultural graduates as extension practitioners at entry level as Assistant Agricultural Practitioners (AAPs). This programme was only implemented for several months through which 4 370 AAPs were employed and deployed to various local agricultural offices to service farmers. The programme was discontinued in July 2023 due to limited financial support.

Currently the only limited funding available is the Extension Recovery Plan (ERP) which is a grant fund that aims to ensure:

• visibility and accountability;
• professionalism and improving image;
• recruitment of Extension Personnel; and
• reskilling and re-orientation and provision of ICT and other resources.

Already 70% of the grant pays for salaries of extension practitioners who are employed on contract and the remaining 30% serves the other four pillars.

The Department still intends, subject to budget availability, to employ unemployed graduates at entry level as Assistant Agricultural Practitioners. In this regard, engagements with National Treasury are continuing to source sustainable funding for the programme. Once the funds are made available the programme will be implemented as planned with Provincial Departments of Agriculture leading as the main employer of Extension Practitioners.

Reply:

The Department has commenced an investigation into matters relating to the National Gambling Board, initially focused on the procurement of the building. A forensic investigating company has been appointed in this regard.

A further briefing by the Department relating to remuneration and authorization for overseas travel has raised governance questions relating to these matters. This will now be included in the forensic investigation.

The Department is also considering what appropriate immediate steps should be taken in addition to the above.

Once the investigation is complete, the necessary actions will be taken where warranted, and a report will be submitted to Parliament.

-END-

Reply:

The following reply has been compiled by the Energy One Stop Shop, and Invest SA.

(1) The EOSS was launched on the 27th July 2023 at the dtic Campus.

The following have been actioned since the launch:

• Website launched and operational – www.energyoss.gov.za
• Registration Portal for Energy Projects live and operational.
• Tracking and Monitoring Database operational.
• Technical Working Group established (with all relevant Departments)
• Partnerships forged with Key Industry Stakeholders (e.g. MOU with Energy Council of SA).
• Linkages with Key Government Entities (Presidency, IDC, NEF, Infrastructure SA, IPPPP Office).
• Representation on various Working Groups (Legal and Regulatory Workstream, ESKOM Transmission Workstream and NECOM).
• Single Window Application Implementation Plan developed with the IFC (World Bank Group) and currently being reviewed by various Industry Bodies through the Energy Council of South Africa (ECSA). Support of the IFC is valued at approximately US 1,5 million. The envisaged implementation date is 1st quarter 2025.
• The first phase of Mapping of Municipal processes and standardised procedures conducted by UK Pact Consultants and will be concluded by the end of October. Support by the UK Pact programme is valued at R1,5 million.
• Escalation letters have been sent to Municipalities where applicable.
• EOSS participated in various Energy Related Events (Conferences, Indaba’s and Workshops, Energy Action Lab) Nationally and Provincially.
• As part of the EOSS task to develop processes and mechanisms to fast track and unlock challenges (licensing and permitting approvals) experienced by developers, it was determined that a Single Window Application approach should be followed to streamline the application process for developers of energy projects. This is also supported by the Energy Council of South Africa as one of the interventions and outlined in the proposed Omnibus Bill.
• As several Departments are the Competent Authorities in their areas of expertise (e.g. DFFE), the various processes at these Departments had to be mapped to determine the extent to which overlaps exists. Through the support of the International Finance Corporation (IFC) these processes have been mapped (approval processes, timelines and checklists), recommendations made and an implementation action plan proposed. This has been shared with Industry through the Energy Council of South Africa (ECSA) for review and comments. Once amended the implementation plan will be socialised with all the relevant Departments for adoption and execution. Currently the EOSS together with the Departments are looking into the harmonisation of all IT Systems to develop the streamlined Single Window Application System. The anticipated date for the pilot will be ready for testing by 3rd quarter of 2024 and full implementation by the 1^st quarter for 2025.
• A parallel process was embarked upon, of mapping approval and permitting processes for Energy Projects at municipal level and the impact of these on the implementation of Energy Projects. The workstream has been engaging with Municipalities, Developers, Departments and the Energy Industry to determine the effectiveness of the approval and permitting process at Municipal level. The first phase of the project came to an end in October 2023.

The EOSS received 114 projects from the Presidential Embedded Generation Task Team to track and unlock bottlenecks encountered by Energy Developers (mainly independent power producers IPPs). These projects are at various stages of development. Of the 114 projects, 26 were prioritised for immediate focus after consultations with developers and owners of projects. 2 projects were cancelled by developers and four (4) acquired SIP status, thus the EOSS is tracking 20 projects that have a few remaining challenges. The 114 projects upon receipt equated to 16 859MW and R109 billion in potential investment. In addition, besides IPP projects the EOSS unblocks for companies encountering challenges with municipalities and Eskom such as PG Bison, Teraco, Humtamaki amongst others.

 

The dashboard below outlines what the EOSS is currently tracking in terms of the Priority Projects:

EOSS DASHBOARD:

The dashboard below outlines what the EOSS is currently tracking in terms of the Priority Projects:

EOSS DASHBOARD:

Priority Projects Received: 26

Projects Cancelled: (2 by developers)

Projects Transferred to SIP: 4

Remaining Projects: 20 (1624,5MW)

Projects Unlocked: 6 = 517,5MW: (Damlaagte - 97,5MW; Sutherland 2

- 140MW; Cennergi - 80MW; Tronox - 200MW, Mogalakwena, PPC Sturdee are on hold because Developer uncertainty e.g. Grid Connections)

Projects Operational: 4 = 78,5MW: Harmony Gold (Eland, Nyala,

Tshepong), Gold Fields South Deep

Projects Tracked: 10

Current Challenges: 14 (Land Use, Mining rights, Water rights, ESKOM, Municipal approvals) Commercial Operational Date: 2023 – 2026 (10 Projects).

In the pipeline of remaining 88 projects are 20 updated projects (3136MW) with challenges across Departments and Municipalities. The 20 were prioritised by Developers after the EOSS engagement with them. The anticipated commercial operational dates are between 2024-2027. The EOSS in conjunction with the Departmental Technical Working Group (TWG) is working towards unblocking all challenges encountered.

In addition, through the EOSS live portal, 44 project leads have been identified covering wind, solar, gas and hybrid technologies. Of these the EOSS are tracking 17 projects of 5576 MW.

(2) Whether there is any level of authority for expediting the licensing process; if not who is responsible if so, what are the relevant details;

• Yes, a Technical Work Group, consisting of all the relevant Departments that are Competent Authorities. The EOSS TWG was established with the support of NECOM (National Energy Crisis Committee). Memorandums of Understanding (MOUs) between EOSS and the Departments are in the final stage of being signed – it is envisaged that it would be concluded in the first half of 2024.
• Competent Authorities have given undertakings at NECOM to shorten approval process within the legislated time frames e.g. DFFE are now able to process application with decisions within 57 days for a Basic Assessment if in a Renewable Energy Development Zone (REDZ) and the EOSS are tracking projects based on these.
• The EOSS reports to two NECOM Workstreams (Legal and Regulatory WS2) and Transmission (WS10). These structures meet every 2^nd week or once a month but it also reports to the Ministry and Presidency on a regular basis. The TWG has met more the 8 times – going forward it plans to meet once a quarter as soon as the electronic automated tracking and reporting system for the EOSS has been developed.
• The EOSS also has an MOU with the Energy Council of South Africa – it provides technical advisory and capacity building services to the EOSS Team.

(3) What (a) problems have been identified with the system, (b) measures are being taken to rectify the identified problems, (c) on what date does he envisage the (i) identified problems will be resolved and (ii) system will be established and fully functional?

a) Delays in approvals by some Departments and Agencies (e.g. ESKOM – Cost Estimate Letters (CELs) and Budget Quotes (BQs).

b) Challenges that IPPs are encountering with Departments and Entities are addressed and resolved by EOSS through TWG members. Municipalities remain the biggest challenge as there is a lack of standardised processes in place to deal with Renewable Energy Projects (both in terms of Human Resources and Expertise). A Mapping exercise was embarked upon by the EOSS and a report with recommendations outlining intervention was developed. Through greater coordination led by the EOSS in conjunction with SALGA and COGTA in supporting municipalities, the EOSS for example with the support of the Presidency and Office of the Premier in the Free State unlocked some major project challenges for Developers such as Sunelex Solar Power in the Matjhabeng Municipality – 605MW.

c) Unresolved challenges outside reasonable and stipulated time-frames are escalated to the PMO in the Presidency and NEOCOM for intervention. Challenges are escalated once evaluated and severity determined. A single windows application and tracking system is being developed to automate and harmonise processes – the envisaged fully operational date is end of Q1 2025 subject to budget availability.

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Reply:

South Africa has made considerable progress in the past 30 years in rebuilding a society deeply damaged by apartheid and colonialism.

I am informed by the Department that the normal events of the Department, including end of Administration report-backs and meetings, will be an opportunity to also reflect on progress made during the 30 years of the democratic era. Accordingly, there is no separate budget as no events specific only to the celebrations are planned.

We will proudly carry the logo of 30 Years of Democracy in publications and presentations of the normal work of the Department and the story of progress made will be communicated in the messages of the Ministry and Department.

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Reply:

Before responding to the specific question raised, it is important to highlight the environment that the State-Owned Companies (SOCs) operated in:

a) All entities were affected by state capture;

b) The following had an impact on the SOCs:

1. financial and liquidity position;
2. increased operating costs;
3. technical impact on the operational performance
4. there was erosion of skills; and
5. boards were compromised

c) The entities began stabilising and recovering from the effects of state capture as the new administration started addressing the state capture;

d) No bail outs were provided to SOCs but rather capital invested in SOCs to put them on a path of sustainability; and

e) Since then, the SOCs have progressed towards sustainability.

With regard to South African Airways (SAA), the airline has for previous financial years been facing significant financial and operational challenges. This was partly due to several challenges which amongst others included, state capture and corruption. As a result, the airline was placed in business rescue by its Board, effective 6 December 2019 to enable a comprehensive restructuring of the company and its balance sheet to ensure that a viable, competitive, and sustainable airline emerges. Funding was provided as post commencement funding to enable operations to continue while the business rescue plan was being developed. This also enabled the repatriation of South African citizen stranded in other countries during the Covid-19 pandemic lock down in 2020. The business rescue plan was developed and the creditors adopted the business rescue plan on 14 July 2020. The airline was later restructured, staff rightsized, significant compromises reached with creditors and the business rescue was exited on 30 April 2021. The airline recommenced operations in September 2021. The summary of funding received from Government is shown below, according to SAA and the amounts are further explained by the Department below thereafter.

According to information received from SAA:

(a)(i) Since 2019, South African Airways (SAA), please note the following with regards to bailouts and dividends:

Year	Amounts are not Bailouts but rather Capital invested	Dividends
FY2019/20	R 5.5 billion	R nil
FY2020/21	R18.2 billion	R nil
FY2021/22	R 6.8 billion	R nil
FY2022/23	R 1.6 billion	R nil
FY2023/24	R 1 billion	R nil

Explanation of the numbers

Year	Amounts are not Bailouts but rather Capital invested	Broken down as	Purpose	Dividends
FY2019/20	R 5.5 billion	R2 billion	Working Capital	R nil
		R3.5 billion	Settle lenders bridging finance
FY2020/21	R18.2 billion	R2.2 billion	Settle Business Rescue (BR) post commencement finance	R nil
		R4.4 billion	Settle lenders legacy debt
		R3.6 billion	Settle DBSA BR post commencement finance
		R7.8 billion	Implement BR
FY2021/22	R 6.8 billion	R4.1 billion	Settle lenders legacy debt	R nil
		R2.7 billion	Restructure SAA subsidiaries
FY2022/23	R 1.6 billion	R1.6 billion	Settle lenders legacy debt	R nil
FY2023/24	R 1 billion	R1 billion	Implement BR	R nil

(ii) Dividends: Rnil

According to information received from Eskom:

(b)(i) Since May 2019, Eskom has received government support of R158.6 billion through the Special Appropriation Act of 2019 and R76 billion (which includes R13 billion expected to be received by the end of March 2024), in terms of the Eskom Debt Relief Act of 2023. The breakdown is listed below:

Financial year	Amount received, R billion	Applicable act
FY2020	49.0	Special Appropriation Act 2019
FY2021	56.0
FY2022	31.7
FY2023	21.9
Sub-total	158.6
FY2024	76	Eskom Debt Relief Act 2023
Total	234.6

It must be noted that these are not bailouts, but government support is required to mitigate the fact that the allowed revenue under the NERSA Multi-Year Price Determination (MYPD) allowable revenue theory is understated.

Annexure W3 of the 2023 Budget Speech, states that:

“The National Treasury recognises that debt relief alone will not return the utility to financial sustainability.

A key assumption considered in the debt-relief determination is the implementation of the

recent tariff increase approved by the Regulator (18.65 per cent in 2023/24 and 12.74 per cent in 2024/25). Without these increases, the debt-relief arrangement is not sustainable.

Outstanding municipal debt, which has grown from R58,5 billion in March 2023 to R74.5 billion in February 2024 (11 months), is a systemic challenge to the electricity industry as a whole.

The National Treasury is finalising a proposal to address this debt.”

(b)(ii) No dividends have been declared over the past five years.

According to information received from Transnet:

(c)(i) Transnet received an equity injection from government of R5,8 billion (Transnet issued

ordinary shares of 5 837 000 000 to government) in February 2023 per special

appropriation Bill 2022 allocation to accelerate the rehabilitation of longstanding

locomotives (R2,9 billion) and to cover losses/expenses incurred due to the KZN flood

damage in April 2022 (R2,9 billion).

(ii) Transnet has not paid out any dividends since May 2019.

According to information received from SAFCOL:

(d)(i) Nil (Zero) bailouts received by The South African Forestry Company SOC Limited and

(ii) R1 million (2022/23) dividend paid out over the past 5 years since May 2019.

According to information received from Alexkor:

(e)(i) No bailouts were received by Alexkor over the past 5 years;

(ii) Alexkor did not pay out any dividends over the past 5 years.

According to information received from Denel:

(f)(i) R9bn

(ii) Rnil

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date:

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The Department of Public Enterprises and Ministry have always acted in the best interests of the State. Many detractors and liars have attempted to cast doubts on the integrity of this process, but without any unassailable facts. The fact that the transaction did not proceed, is testimony to the fact that based on new valuations of the business and assets of SAA, if fair value was not attainable, then the transaction must be terminated.

There has been no “conflict of interest” or anything contrary to the findings of the Zondo Commission. It is precisely because the recommendations of the energetic implementation that vested interests and certain nefarious elements that this transaction and DPE have come under relentless negativity.

1. The initial Strategic Equity Partner (SEP) selection process required the parties to meet the following criteria:
   1. Strategic fit;
   2. Funding capacity;
   3. Operational experience in the private sector and track record;
   4. National interest; and,
   5. Executability.

The initial selection process did not yield the desired outcome as none of the interested parties met the above criteria. Towards the end of February 2021 the Department received further Expressions of Interest.

Four (4) parties were shortlisted and were subjected to a evaluation process and scoring. From the scoring, two proposed SEPs were shortlisted, namely Harith General Partners and Global Aviation which had partnered with Lift. They proceeded to the due diligence stage and concluded a Memorandum of Understanding (MOU) as a Consortium after both parties presented their intention to bid as a Consortium, Takatso Consortium.

The Department was satisfied with Takatso Consortium’s proposal since it met the Department’s requirements. Takatso had the requisite combination of financial and operational capabilities required for the successful relaunch of SAA.

(2)(a)(i) The deal was approved Cabinet.

(ii) Cabinet approved the deal since Takatso Consortium met Government’s selection criteria (financial and operational capabilities) and that the deal was in the best interest of SAA and Government as it would contribute to SAA’s financial and operational suitability.

(b) The consideration for sale of shares in SAA to Takatso was R3,000,000,051.00 (three billion and fifty one Rands).

(3) The SAA SEP transaction was approved by Cabinet having seen that the deal was in the best interest of the Republic. The deal would guarantee SAA’s future’s sustainability as government would not be expected to inject capital into SAA for operations.

It must be emphasised, once again, that notwithstanding the damage done to SAA by corruption in years prior to 2019, and COVID, induced shut down of borders across the globe and in South Africa, the revival of SAA and the search for a strategic equity partner has been undertaken in the national interest and with the approval of Cabinet.

Remarks: Approved /Not Approved/Comments

Melanchton Makobe P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The South African Bureau of Standards advises that a capital expansion plan of R376.0 million has been budgeted for in the Corporate Plan for FY 2024/25 to 2026/27.

The R376.0 million capital budget is focused mainly on three (3) areas, namely Laboratory Services, Facilities, and Information & Communication Technology. The capital budget will be funded through a combination of grant funding from the fiscus and own funds.

-END-

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The Pension Redress Programme was an initiative negotiated and agreed to by parties to the Public Service Coordinating Bargaining Council (PSCBC) through Resolution 7 of 1998. The programme aimed to address discriminatory practices by recognising non-contributory service as pensionable service for employees affected by past discrimination. The programme's implementation period started on 29 November 2002 and concluded on 31 July 2012, following PSCBC Resolution 3 of 2012, which set the final application deadline as 31 March 2012. The resolution of the programme was further defined under PSCBC Resolution 2 of 2018, which detailed the compensation methodology and marked the formal conclusion of the redress process for qualifying applicants.

Applications for the redress programme were submitted via the PSCBC. The Government Employees Pension Fund (GEPF) acted as the payment facilitator for the redress payouts but was not the initiating body of the programme. The decisions regarding the programme's commencement, operational framework, and conclusion were determined within the PSCBC framework, with the Government Pension Administration Agency (GPAA) responsible for processing applications and implementing payments. As such, the GEPF would not be able to comment on the reasons for the programme's conclusion beyond the PSCBC resolutions.

a) Applications received to date

The PSCBC received a total of 150,444 applications of which 72 335 applications were identified as qualifying for the redress benefit. An independent audit was conducted to ensure the verification process was complete, fair, and accurate. This process involved a detailed review to distinguish between qualifying applicants, error cases, and those not meeting the eligibility criteria. Following the completion of the audit process, 53,717 records were identified as qualifying applicants and 18,618 error cases were noted.

As part of the implementation process, the GPAA undertook a meticulous re-verification of cases against the resolutions and pensionable periods recorded on the administration system. This was to ensure the utmost accuracy and fairness in the redress allocation. This re-verification process led to various outcomes, including:

• Error cases initially identified that later met the qualifications for approval;
• Approved/Error cases that, upon re-verification, did not qualify due to overlapping pensionable service;

As a result of this thorough process, the total number of approved cases was updated to 58,324, with the initial 17,045 error cases undergoing further review. Hence a total of 75 369 applications have been processed to date.

b) Applications that have been finalised

Of the initially approved cases, 58,123 applications have been finalised and processed for redress. Of the error cases revisited, 5,982 (35%) were reclassified from error to approved, 6,348 (37%) remained as error cases, and 4,715 (28%) were determined not to qualify (DNQ), hence a total of 68 820 have been finalised.

c) Remain to be finalised;

As we continue to work towards the finalisation of the Pension Redress Programme, a small fraction of cases remains outstanding. Specifically, of the approved cases, 201 remain unresolved. Additionally, 6,348 cases have not been resolved due to their initial classification as error cases. A targeted approach has been implemented to address these error cases, involving the redistribution of error letters by the GPAA to facilitate departmental engagements and case resolutions.

Moreover, there are a small number of members who, despite applying within the stipulated timeframe, were not included in the final costing of the Redress Programme. These cases, while few, are being carefully reviewed, and are addressed on a case-by-case basis.

The GEPF is committed to concluding these remaining cases with diligence and fairness, ensuring every eligible member receives due redress.

(2) The GEPF cannot furnish details of the claim submitted by Ms Sheila Cathleen Lewis to a third party to maintain confidentiality as required by the GEP Law, PAIA and POPIA legislation. The GEPF has requested the GPAA to investigate the matter and will advise Ms Sheila Cathleen directly.

Reply:

(a&b) The total number is zero as of 15 March 2024. However, there are 110 outstanding class action cases and processes have already commenced on the finalisation of these 110 cases well before their deadlines. The department has a zero-tolerance approach to non-compliance court orders. The Minister has instructed officials to ensure all court orders issued are finalised within 7 days before the stipulated deadline to implement the order. All Deputy Director Generals account for pending court orders at bi-weekly meetings and directly to the Minister every month.

(c)  The Department has a system where the data is received and captured to monitor all letters of demand, mandamus applications as well as Court orders. A dedicated team has been set up between the Legal and Immigration Services units to focus exclusively on court matters.

END

Reply:

a) (i) NSFAS has a total of 40 selected institutions on the pilot for private accommodation for the 2024 academic year which are spread across different Provinces.

The total number of Accommodation Providers/ Properties that have been accredited through NSFAS portal is 3309.

ii) There is no single contractual value as these are dependent on the outcome of the grading of each property.

iii) All offer letters that have been accepted by landlords are for a duration of 3 years.

b) NSFAS started paying some accommodation providers by 15 March 2024 and catch-up payments are still being processed as these are based on the registration data received from the institutions. All remittances are expected to be done by end April/ May when all payments are up to date.

Reply:

1. (a) The Principal of Northern Cape Urban TVET College is appointed in that position and only acting as a Regional Manager for Northern and Western Cape Region without interests being raised by the Department to appoint that Principal as the Regional Manager.

(a) (1) The Acting Policy of the DHET indicates that a person may Act in a vacant and funded Post (as in the DHET Acting Appointment Policy section 4.2.2(a) and supported by SMS Handbook Chapter 3 section 10.1 (1)) but instead the DHET is focussing on filling the vacant funded Posts permanently.

a) (2) The Department is under no obligation to appoint any person to act in any non-vacant but funded position as it can decide not to renew the acting period of a person (when the principal is not at the college, the principal appoints an Acting Principal on behalf of the Principal).

b) The person has been in a Principal post for Five years and as an Acting Regional Manager for just above a year in periods.

c) (1) As indicated the person is appointed as Principal within the DHET.

( c) (2) The persons as the Acting Regional Manager work in Northern Cape and Western Cape.

( c) (3) The Principal of Northern Cape Urban has never work at Goldfields TVET College and would not know if there was an investigation and its finding.

( c) (4) The Principal of Northern Cape Urban previously worked at Motheo TVET College and does not recollect being investigated and was unfortunates not informed of the outcome of the purported investigation.

2. This question was responded to in question (1) (a), (a) (1) and (a)(2)

Reply:

1. (a) The college procured the clothing and merchandise from different service providers which cost R 3 403 272.11

(b) The bottled water costing R 530 600.00 was procured by the college.

(c) The nformation and communication technoglogy devices and services procured costed R 5 267 571.40

(d) The general household maintenance and improvement procured costed R 7 114 553.90

2. The college procured goods and services each costing more than R 450 000.00 from different service providers and in compliance with the POPI Act it will be prudent for the college not to disclose those service providers yet.

Reply:

a. NSFAS did not have any landlords for Vaal University of Technology providing accommodation for NSFAS students in 2023.

(i) N/A

(ii) N/A

b. NSFAS was made aware in December 2023 that VUT has unaccredited landlords providing accommodation to some NSFAS beneficiaries in 2023 and the institution has not been working with the unaccredited landlords. NSFAS however intervened to assist the institution until the matter was resolved in February 2024 where the institution has started processes to pay landlords who have leases with confirmed funded students.

On 13 March 2024, NSFAS was informed of the pending payments of funded students who were residing in accredited accommodation. NSFAS is awaiting the institution to provide the list of those students to verify them on the system.

2. Vaal University of Technology to respond.

Reply:

a) The Minister of Finance is aware that Ithala SOC Limited has submitted 2 applications, in terms of section 12 of the Banks Act, for authorization to establish a bank, one in November 2016 to the then Registrar of Banks (now part of the Prudential Authority of the South African Reserve Bank) and the second one in June 2023 to the Prudential Authority. However, as the Prudential Authority is the competent regulatory authority, neither National Treasury nor the Minister of Finance are involved in any aspect of the assessment of bank licence applications. Ithala, as the applicant, would have been furnished with the full reasons by the Prudential Authority, on why its applications were not successful.

b) Ithala was continuously issued with exemption notices for more than 20 years, as a temporary measure to allow it to work towards meeting all the licensing requirements, in terms of the applicable legislation. For the safety and soundness of all our institutions, and in the interests of fairness, banking laws and regulations should apply to all institutions that conduct banking business. All institutions that conduct banking business are required to meet all the licensing requirements for banks, in terms of applicable legislation. Compliance with the country’s banking laws is required to ensure that hard earned savings and deposits of ordinary citizens are protected.

c) In terms of the provision of section 1(1)(cc) of the Banks Act, the Minister of Finance is required to concur to the issuance of exemption notices by the Prudential Authority. As such, the Minister does not have the authority to issue exemption notices. The issuance of exemption notices is a regulatory function that is performed by the Prudential Authority, as an independent regulatory authority.

Reply:

(a) The institutions are not accredited by NSFAS as part of the pilot. However, we do have some institutions that have started the process to register on the portal.

b) All accredited properties are linked to TVETs and/ or Universities in the pilot as per the Minimum Norms and Standard on Student Housing. To date a total number of 2145, are linked to TVETs and 3901 linked to universities.

PROPOSED TVET COLLEGES:

EASTERN CAPE

• Port Elizabeth
• East Cape Midlands
• Buffalo City
• KSD
• King Hintsa

FREE STATE

• Motheo

GAUTENG

• Central Johannesburg College
• Ekurhuleni East
• Ekurhuleni West
• Tshwane South
• Tshwane North
• Sedibeng

 

KZN

• eThekwini
• Coastal
• Majuba
• Umfolozi
• eLangeni

LIMPOPO

• Mopani
• Vhembe
• Letaba

MPUMALANGA

• Gert Sibande
• Ehlanzeni

WESTERN CAPE

• Northlink

Proposed Universities:

EASTERN CAPE

• University of Fort Hare
• Walter Sisulu University
• Nelson Mandela University FREE STATE
• CUT

GAUTENG

• TUT
• Vaal University of Technology
• University of Pretoria
• UJ

KZN

• University of Zululand
• DUT
• MUT
• UKZN

LIMPOPO

• University of Limpopo
• TUT Campus

MPUMALANGA

• Mpumalanga University

NORTHERN CAPE

• Sol Plaatje University

WESTERN CAPE

• UWC
• CPUT

Reply:

For the 2024 academic year, NSFAS proposed that 23 TVET colleges and 17 Universities must be part of the accommodation pilot program, which includes Sol Plaatjie University.

NSFAS continues to engage Sol Plaatje University on the implementation of the project and the University has since confirmed that they have implemented the project at 95%. NSFAS is keeping a close eye on the University.

Reply:

a) (i) Approximately R21 446 855 was lost.

(ii) None of the funds have been recovered as some of these matters are still being investigated by law enforcement agencies.

(b) The NSFAS has reported 14 matters with the SAPS relating to alleged fraud.

Reply:

(a) (i) and (b)

The amount reflected in the MICT SETA 2022-23 Annual Report, as audited, for Travel and Accommodation Expenditure for the Accounting Authority (AA) Members, including the Chief Executive Officer (CEO), is R 2.1 million. The MICT SETA notes the amount of R 534 400 reflected in the Parliamentary Question. The year under review included the World Skills International Competition 2022 Special Edition. The MICT SETA also participated in the Study Tour to Silicon Valley that was attended by the Chairperson of the AA and the CEO.

The remainder of the Travel and Accommodation expenditure relates to the normal oversight responsibility provided by the AA in line with their oversight role and responsibilities as enshrined in the PFMA and the Constitution of MICT SETA.

• The World Skills International Competition 2022 Special Edition

The World Skills Competition is a Global movement, hosted by fifteen member countries, regions, and their national partners. These members and partners host skills competitions in 26 cities across the world, they share their expertise and resources to ensure that the World Skills community enhances global training standards and benchmarks their systems. The MICT SETA was invited by DHET to participate as an observer in the World Skills Competition and was requested to nominate four delegates who will represent the SETA. The nominated delegates consisted of two members from the Accounting Authority (AA) (Chairperson of AA and Chairperson of Information Communications Technology Committee (ICTCOMM)) and two members from management (Senior manager 4IR and representative from the office of the CEO). This competition reflects the commitment of the MICT SETA to promote Technical and Vocational Education, diversify the economy, and empower and enthuse young people to seek new skills opportunities through vocational education and training. The Skills relating to the MICT SETA industries that were showcased in the competition are as follows:

• Mobile Applications Development
• IT Software Solutions for Business
• Web technologies
• IT Network Systems Administration
• Plastic Die Engineering
• 3D Digital Game Art
• Cloud Computing
• Cyber Security
• Study Tour to Silicon Valley

The Study Tour to Silicon Valley was a high-level study, for discussion with leading multinational companies such as Google, Amazon, and Stanford University, among others. These included Government entities to gain insights into policies and planning governing the innovation ecosystem in the USA to inform innovation policy development and implementation in South Africa. This effort seeks to promote strategic partnerships with the respective entities in key disruptive technologies, such as Artificial Intelligence, which will benefit the development of South African capacities. The tour took place from the 20^th to the 30^{th of} April 2022. The MICT SETA participated due to the critical role it plays in supporting the implementation of the Decadal Plan for Science, Technology, Innovation, Entrepreneurship and massification of Digital Skills in South Africa.

• Other Travel and Accommodation expenditures.

The remainder of the travel and accommodation expenditure relates to the normal oversight responsibility as prescribed by the legislation. These were incurred for the attendance of the normal AA meetings and AA subcommittee meetings. In the year under review, MICT SETA had six AA subcommittee meetings, namely the Finance and Remuneration Committee (FINREMCO), Executive Committee (EXCO), Information, Communications and Technology Committee (ICT), Governance and Strategies Committee, Audit and Risk Committee (ARC) and Social and Ethics Committee (SAECO). These committees meet every quarter and, or on isolated cases where compelling/mandatory submissions falling outside of the approved corporate calendar are required to be complied with. These committees process management submissions and recommend to the AA for approval, the AA meets every quarter.

The EXCO of the MICT SETA Accounting Authority (AA) meets monthly to monitor the implementation of the resolutions of the AA in line with the approved constitution of the MICT SETA. The MICT SETAs’ Head Office is in Gauteng and holds these Accounting Authority and committee meetings at the Head Office most of the time unless there is a stakeholder engagement session in other provinces around the period where the AA is supposed to be meeting, to save costs such as meeting fees and travel costs, the MICT SETA sometimes holds the AA meetings in the same province/area where the AA is holding stakeholder engagement session.

The MICT SETA has three AA members who do not reside in Gauteng, where the AA meetings are often held, two of the three reside in Limpopo, and the Chairperson of the AA resides in the Eastern Cape. The area where the Chairperson stays is not closer to the airport, he is required to drive a long distance to Durban King Shaka International Airport, where he catches his flight to Gauteng most of the time when there are AA meetings. In line with its policies, MICT SETA is required to arrange travel and accommodation for all three AA members to ensure that they exercise their oversight responsibility.

Included in the travel and accommodation for AA members, are costs incurred for the attendance of AA Strategic Sessions, which are often held outside of the office premises, due to the nature of these meetings.

Other oversight responsibilities of the AA include.

• Approval of the Annual Performance Plan (APP) and Strategic Plan (APP);
• Approval of policies of MICT SETA;
• Approval of Budget;
• Approval of Annual Financial Statement, Performance information, and Annual Report.
• Approval of Engagement letter and Audit Strategy;
• Approval of Audit Report from Auditor General and other auditors;
• Approval of Quarterly Reports; and
• Approval of the Annual Procurement Plan.

For every AA meeting, the SETA is required by its policies and PFMA to pay for the travel and accommodation expenses of all AA members.

The detailed Transaction Report of all the Travel and Accommodation Expenditures incurred by the MICT SETA in the 2022-23 financial year is attached as Annexure A.

 

c) (i) and (ii)

The MICT SETA has contributed largely to the skills development initiative within its sector. During the period under review, a total of 14 064 learners were enrolled in various learning programmes such as Learnership, Internship, TVET placement, University Placement, Short Programmes, and Skills Programmes. A total number of 14,064 households were exposed to some form of income because of these programmes. Of the 14 064 learners enrolled 8 366 were females and 5 698 were males, a total of 1 371 were learners living with disabilities. Furthermore, for completions, 8 276 learners completed the learning programmes, of which 5503 were female learners,3223 were Males and 602 were learners living with disabilities. Over 2,500 learners who completed the learning programmes were absorbed by employers within the MICT SETA subsectors.

A total of 179 Learners were supported with skills development programmes to establish enterprises and 249 learners were supported through skills development programmes to establish co-operatives. These results were championed through the oversight responsibilities provided by the AA of MICT SETA and its committees.

The MICT SETA established research chairs across public universities within South Africa, which resulted in the launch of Tshwane University of Technology Research Chairs and University of Limpopo Research Chairs in the year under review, later in the same year, the SETA adopted a Triple Helix Model that fosters collaboration between the Industry, Academia, and Government/MICT SETA. As a result, this has led to a tailor-made Integrated Leaner Management System with the potential of being adopted by all the SETAs, this Integrated Leaner management has the potential to address the issues of double dipping that were identified by the AGSA as being a constant challenge across the PSET system. The above solution is at the 90% completion stage and was tested by the stakeholders and found to be sound and user-friendly. This is part of ensuring that beyond accelerating Digital Skills to as many young South Africans in Urban, Townships and Rural Areas, the agenda of Innovation is inclusive hence the youth in the Universities of Technologies have actively participated in the development of this cutting-edge customised digital solution.

The MICT SETA has also been instrumental in the formation of a strategic partnership that goes beyond the post-school system to strategic industry partners to drive innovation in the form of Hackathons and improved opportunities for employment and mentorship. In the same year, MICT SETA developed more than 32 4IR qualifications not limited to Cyber Security, Artificial Intelligence, Cloud Computing, 3D printing, Coding, Block Chain etc.

Furthermore, MICT SETA obtained a clean audit outcome, with a clean governance report (talking to a well-functioning governance structure) with 95% achievement of Annual Performance Plan targets, the highest it has ever achieved in the history of its establishment. All these achievements were because of the oversight role and continuous guidance provided by the MICT SETA AA and its committees. See Annexure A regarding the value derived by the MICT SETA.

Reply:

1. The instrument to encourage local and/or domestic investment in developmental assets is Regulation 28, which is a legislative instrument issued by the Minister of Finance through the Pension Funds Act. The purpose of Regulation 28 is to protect investors against poorly diversified investment portfolios and exposure to risky assets by prescribing maximum investment thresholds that a pension fund may invest in, in line with asset categories allowed by the Regulation. However, to recognise the imperative of promoting investment in infrastructure, Regulation 28 was amended to set the overall investment in infrastructure across all asset classes at 45 per cent. Infrastructure in this context includes public and private infrastructure like water, energy, hospitals, and transport.

The amended Regulation 28 came into effect in January 2023. Due to the long-term investment horizon of retirement funds, they are well placed to hold investments in infrastructure through listed companies and fixed income instruments. Retirement funds can do this whilst ensuring that their principal responsibility, which is to safeguard the savings of individual pension savers with enough returns on these investments, is fully met.

To ensure that the policy objective is met, measures to track the level of investments in infrastructure are being developed.

2. The 2020 Budget Review outlined reforms to modernise the foreign‐exchange system to maximise trade and investment benefits in a globalised capital environment, while complementing the African Continental Free Trade Agreement, to which South Africa is a signatory. The reforms were aligned to the Organisation for Economic Co‐operation and Development (OECD) best practice Code of Liberalisation of Capital Movements. The National Treasury, alongside the Reserve Bank, Prudential Authority and the FSCA, will evaluate the impact of these reforms on the prudential, fiscal, and monetary policy frameworks. This research is intended to generate adjustments to improve alignment of the frameworks and may affect the pace at which these reforms continue to be implemented.

Reply:

A binding fiscal anchor will protect the consistency of service delivery spending by preventing fiscal slippages that result in painful fiscal adjustment measures. Government’s objective of adopting a binding fiscal anchor in the 2024 Budget Review aims to enhance fiscal balances, ensure consistent fiscal targets, and lower borrowing costs. Achieving a primary budget surplus at the end of this month signifies an important step in the fiscal consolidation path, demonstrating our commitment to prudent fiscal management​​.

The strategy for fiscal sustainability integrates with broader economic performance objectives in a 3 pillar framework outlined in chapter 2 of the budget review. The 2024 Budget protects essential services and stimulates economic development by maintaining sound public finances. This approach is evident in our commitment to structural reforms across critical sectors such as energy, freight, and telecommunications, essential for removing growth barriers and creating a conducive environment for economic expansion​​.

Moreover, the Budget articulates a clear plan to accelerate economic growth through these reforms. The focus on establishing competitive markets in electricity and logistics underscores the government's strategy for fostering structural transformation​​.

The revised spending allocations in the 2024 Budget underscore the strategic approach to supporting essential services and infrastructure development, both critical for long-term economic growth. The Budget ensures provinces have the resources to fund key personnel such as teachers and nurses, vital for service delivery, while prioritizing infrastructure investment through innovative reforms and incentives​​.

Reply:

a) The Special Investigating Unit submitted a motivation to amend the scope of Proclamation R84 OF 2022 to the Department of Justice and Correctional Services on 7 July 2023. The Department of Justice and Correctional Services is processing the motivation.

b) The motivation relates to allegations of maladministration in the affairs of the University of Fort Hare in the awarding of degrees, among others.

Reply:

According to the information received from Denel

Significant progress has been made as follows:

1. In 2022, Denel made a submission to Armscor for the restart and continuation of Project Hoefyster, following a five-year interruption caused by technical compliance disagreements with Armscor regarding the lead variant in the development programme.

2. On 4 April 2023, the Project Control Board (PCB) resolved that the bulk of the technical issues could be waived, or were non-contractual, and that the Development phase (Phase 1) of the Project could continue, but 15 non-compliances were referred back to Denel for resolution. It was further agreed that the production (Phase 2) of the 1st Battalion could be initiated with appropriate Department of defence and Military Veterans approvals and contractual changes in place.

3. Since the PCB in April 2023, Denel Landward has restarted the phase one focusing on clearing the remaining non-compliances against the lead variant and submitted two Contract Variation Orders (CVOs) to Armscor. The first, Phase one CVO, aims to realign the remainder of the project considering the order, schedule, and commercial realities that have impacted the programme.

The second, Phase two CVO, issued for review by Armscor, focuses on industrialisation and production adjustments following the PCB's recommendations.

4. Regular Armscor and Denel integrated programme meetings have been held since the last quarter of 2023/24 financial year to improve alignment. These monthly meetings aim to facilitate direct communication and coordination among all stakeholders.

5. A programme management steering committee, comprising executive from the Directorate of Army Acquisition (DAA), Armscor, and Denel, oversees the project. This committee convenes quarterly to monitor progress and make strategic decisions, with its initial meeting on 4 March 2024 followed by a review meeting planned for mid-April.

6. Of the 15 non-compliances referred to Denel since May 2023, nine have been resolved by Denel and are awaiting formal reviews by Integrated Programme team. The five remaining issues are being resolved / reviewed by the project team and will be cleared shortly.

These steps, as supported by DAA and Armscor, underscore Denel Landward’s commitment to advancing Project Hoefyster, demonstrating a concerted effort to navigate past challenges and ensure the project's successful continuation and completion.

 

Remarks: Approved / Not Approved/ Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date

Reply:

According to the information received from Denel

(a) The current staff complement of Denel SOC Ltd as of 31 March 2024 is 1 626.

(b) (i) 2019-20 – 3 968

(ii) 2020-21 – 3 332

(iii) 2021-22 – 2 662

(iv) 2022-23 – 2 007

(v) 2023-24 – 1 655

 

Remarks: Approved/ Not Approved/ Comments

 

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date

Reply:

Denel has formally submitted request to dispose of the non-core properties Rheinmetall Denel Munition; and has not submitted a disposal request of the properties used by Hensoldt SA. Denel’s overall strategy to dispose of non-core properties, particularly those associated with sovereign and strategic capabilities as outlined in the 2015 Defence Review is under review. This reconsideration is informed mainly by the uncertainties in global geopolitical and security dynamics. The Department is in consultation with the Department of Defence to find optimal mechanisms and alternative options to assist Denel in meeting its financial requirements to complete the implementation of its restructuring plan.

 

Remarks: Approved/ Not Approved /Comments

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date

Reply:

According to the information received from Eskom:

Previous attempts to sell the Eskom Finance Company did not materialize. Eskom is in discussion with a potential acquirer, but it will take time as the acquirer will first have to perform a due diligence. The National Treasury is briefed on the matter. It is important that fair value is obtained by Eskom for the EFC.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

According to the information received from Denel, SAFCOL and Alexkor:

(i) Denel has suffered a direct loss of R4 351 614.40 in the past five years.

A sum of R596 387.55 is being recovered through a settlement agreement reached with the SIU and R1.6m is in the process of being recovered in accordance with the court order.

(ii) SAFCOL has reviewed its Financial Misconduct reports for the financial years 2018/19 – 2022/23 and no quantum’s that have been classified as attributable to (aa) corruption, (bb) fraud or (cc) bribery have been noted.

(iii) Alexkor: There are pending investigations by SIU to establish whether there were any amounts lost due to corruption, fraud and bribery in the past five years. At this stage Alexkor is waiting for the finalization of the SIU investigation.

If any loss is established, then Alexkor will proceed to endeavor to recover any amounts lost.

DPE Response

The department introduced changes that were aimed at addressing the governance weaknesses identified during the State Capture period in the SOC environment. This was done through working with various statutory bodies to ensure consequence management for all those implicated by the State Capture Commission (herein after Commission). The department has introduced a hotline aimed at providing a platform for reporting of malfeasance in the department and the SOC. As part of governance reforms, the SOC tender committees were scrapped and the MOIs were updated in this regard. Other initiatives undertaken to implement the recommendations from the Commission include the institution of criminal, civil and director delinquency proceedings. Furthermore, the department has undertaken referrals to professional bodies; and red flagging of natural persons who perpetrated state capture as they seek to pursue employment and prohibition of juristic persons from accessing procurement opportunities availed by the state. Lastly, the department is working with the Special Investigating Unit (“SIU”) to implement proclamations relating to maladministration concerning the affairs of SOCs.

 

Remarks: Approved/Not Approved/Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date: