Questions and Replies

Reply:

a) The National Treasury has engaged with the Auditor-General and considered all public comments received through Government Gazette General Notice No. 3270 of 6 April 2023 which withdrew the Government Gazette General Notice No. 3247 of 31 March 2023 and invited public comment on a proposed exemption for Eskom. In total, fifty-six (56) comments were received, with twenty-three (23) comments received in formal correspondence and thirty-three (33) comments received through emails, covering a broad spectrum of accounting and reporting, auditing, governance, legal principles, and public interest issues have been duly considered. The National Treasury also engaged with audit firms, professional auditing and accounting bodies, a rating agency, and other relevant authorities to discuss the challenges and seemingly onerous compliance reporting requirements applicable to State-Owned Entities such as Eskom.

b) The consultation methods used for the consultations were in the form of online stakeholder engagement meetings, webinars, media statements and Government Gazette Notice for public comments. Please refer to the attached media statement dated 7 June 2023, in which the Minister of Finance has determined that Eskom not be granted a partial exemption from section 55(2)(b)(i) of the Public Finance Management Act (PFMA) and Treasury Regulation 28.2.1, from disclosing irregular, fruitless and wasteful expenditure and material losses from criminal conduct in its Annual Financial Statements.

Reply:

(a) Department of Communication and Digital Technologies:
(i) The percentage of SMMEs procurement breakdown for the year 2021/22 for black-owned companies was 51%. Women and youth were 31.11%.
(ii) 0%
(iii) 30%
(iv) 30%
(aa) 51%
(bb) 30%

(b) The response from the entities is attached as an Annexure.

Thank You.

Reply:

There has been no direct request from BRICS focusing on de-dollarisation. However, there were discussions and agreement in the BRICS Payments Task Force on the following focus areas for 2023:

a) Feasibility study on the implementation of the following elements of the G20 Crossborder Payments Roadmap:

• Building Block 1: The development of common cross-border payments vision and targets.
• Building Block 10: Improving access to payment systems by banks, non-banks and payment infrastructures – broadening the range of eligible candidates for settlement accounts by changing access policies, technical standards and supervisory or oversight regimes; and
• Building Block 14: Adopt a harmonised version of ISO 20022 for message formats (including rules for conversion/mapping) – promoting the adoption of common message formats, such as a harmonised version of ISO 20022 and common rules of mapping/converting data between different data formats.

b) The sharing of information on lessons from BRICS member countries on how sandboxes were operated; the aims of the sandboxes; how sandboxes are being utilised; some lessons learned and successes; and how sandboxes inform regulatory frameworks;

c) The sharing of experiences on central bank digital currencies (CBDCs) to draw lessons across the BRICS countries, look at the different experiences and to determine how central banks could leverage from the sharing of information; and

d) The BRICS member countries to consider, bilaterally, the interlinking of payment infrastructures for settlement in their own currencies.

The South African Government has also been approached by both Russia and India on areas of possible collaboration and cooperation, including the interlinking of payment insfrastructures for settlement in their own currencies. Preliminary discussions have taken place between the South African Reserve Bank and the central banks of the two countries (with the Indian Ambassador to South Africa being part of the delegation). The discussion with the Central Bank of the Russian Federation focussed on the interlinking of both the retail instant payment systems and settlement systems, while the engagements with the Reserve Bank of India were premised on the settlement systems interlinking, using their respective currencies.

The SARB guided that the interlinking discussions be held in abeyance until after the several domestic and regional payments initiatives led by the SARB have been concluded/implemented. These include the Real Time Gross Settlement System (RTGS) Renewal, the Association of African Central Banks (AACB) and the Southern African Development Community (SADC) initiatives. Additionally, progress and development will also be driven by the market’s appetite to settle in alternative currencies.

Reply:

Taxable (fringe) benefits are calculated under the Seventh Schedule to the Income Tax Act. The legislation makes provision for which benefits are taxable, how the value of the taxable benefit must be calculated, and circumstances when no value is placed on a particular benefit.

The tax consequences below are based on the benefits as granted under the Guide for Members of the Executive (Ministerial Handbook). SARS accepts that Ministers and Deputy Ministers (Members) generally utilise these benefits as prescribed in the Ministerial Handbook.

Accommodation (Paragraph 9 of the Seventh Schedule)

Ministers and Deputy Ministers (Members) are entitled to State-provided residential accommodation. They may be provided with either one or two residences (one per seat of office).

• If a member normally resides in his or her own residence, then any residence provided by the state will not attract a taxable value (no value).
• If one residence is provided by the State, and the Member relocates and resides at that residence, the Member is liable to fringe benefits tax on the rental value. The rental value is calculated in terms of a formula linked to the Member’s remuneration.
• Where two State-owned residences are provided, the Member must be taxed on the property with the highest rental value.
• Any rental payable by a Minister for a second residence, may be deducted from the taxable rental value calculated under the formula.

Electricity and Water (Paragraph 9 of the Seventh Schedule)

The Ministerial Handbook provides that Members are liable for all costs related to a private residence. However, should the State pay a member’s private residence utilities bill, a taxable benefit would arise.

Electricity, water, and other property-related utilities supplied to a member occupying a State-owned residence is included in the rental value of the taxable benefit arising from the use of the accommodation, as referenced above.

Security (paragraph 2(a) and 2(e) of the Seventh Schedule)

The State does not provide security upgrades to Members’ private homes, so no tax consequences arise.

Any security upgrades effected at State-owned residences, accrue to the State, not the Member occupying the premises, and so no taxable benefit arises.

Static security is provided to Members both at private residences designated as “official” and at State-owned residences.

• Static security at a private residence is a taxable benefit, the value is the cost to the State.
• Static security at a State-owned residence does not result in a taxable value arising.

Close security provided to a member whilst in the course of performing duties of office will not be taxable. Use of close security when the Member is off duty will be a taxable benefit, the value being the cost to the State of the private cost.

Motor vehicles (Paragraph 7 of the Seventh Schedule)

State-owned motor vehicles are made available to Members to utilise for official purposes. The nature of a member’s duties is such that he or she will perform their duties outside of normal work hours. Private use is infrequent or incidental to business use, and so a no-value rule applies to Members, meaning that no taxable amount arises.

Staff (Paragraph 2(e) of the Seventh Schedule)

Personal staff are provided to Members to assist them with their official duties. No taxable benefit arises due to staff employed to assist with official duties at an official residence.

Flights

Official flights are not subject to fringe benefits tax. Private flights are taxable unless a no-value rule applies. The no-value rule applies if the flight is for the Member’s spouse or minor child, the Member is stationed more than 250kms from his or her home, is away from home for more than 183 days in a year, and the travel is for between home and the place where the Member is stationed.

Allowances (section 8(1) of the Act)

Most allowances paid to Members are fully taxable. Certain exceptions, such as travel allowances and subsistence allowances, are treated preferentially for all taxpayers, including Members, who may all claim deductions for business expenses.

Members also by law receive a public office allowance. 50% of this allowance is taxed monthly via PAYE withholding. The full allowance is taxable on assessment when the annual tax return is submitted, unless the Member can prove that certain qualifying expenses were incurred and paid (and not recovered from the respective Departments), which may reduce the tax liability on assessment.

Reply:

Parliament approved the fiscal framework for 2023/24 on 8 March 2023. The provisional liquidation of SAPO and business rescue processes were initiated via a judicial process subsequent to the 2023 Budget and funding to support this process was not included in the approved fiscal framework. Government is responding through the judicial process, but various options are possible including reprioritisation of funds, within the approved fiscal framework. However, the Appropriation Bill has not been enacted yet and any adjustments in terms of section 6 would need to be considered for the adjustments budget later this year in October.

Reply:

The Minister of Finance is not directly responsible for managing any major infrastructure budgets, as such budgets reside within the appropriate national and provincial departmental budgets, municipal budgets or that of a public entity or state-owned entities. Each organ of state is responsible for maintaining appropriate and effective infrastructure budgets. From a national budget perspective, it is recognised that the issue of ageing infrastructure in South Africa has been a longstanding challenge, including for both rural and urban municipalities. There have been some proactive measures taken to address this issue. Here are some examples from the local government sphere:

• Since the 2013/14 financial year, the local government equitable share (LGES) includes a maintenance estimate of 10 per cent. This amounted to R5.6 billion in maintenance funding for municipalities to recover the cost of providing free basic services to indigent households in 2021/22, and it will be R7.1 billion in 2023/24. These funds are unconditional transfers, meaning that they are discretionary in nature. So, the municipality has the choice of whether to use them for maintenance or any other priority or budget commitment.

• Several reforms have been implemented following the review of infrastructure conditional grants in 2014. The Municipal Infrastructure Grant (MIG) includes provisions for infrastructure renewal and upgrades, a provision for road maintenance projects, as well as the ability for municipalities to develop Infrastructure Asset Management Plans using 5 per cent of their allocations. Small and rural municipalities are the main beneficiaries of this grant.

• The government has provided training and capacity building programs for municipal officials and staff to improve their skills and knowledge in infrastructure planning, management, and maintenance. Since 2012, we have been pioneering the development of critical infrastructure delivery skills in municipalities through the implementation of the Infrastructure Skills Development Grant (ISDG). Since its inception, more than three hundred people have been professionalised and/ or certified within the built environment. These professionals then exercise their expertise to manage, operate and maintain public sector or municipal infrastructure.

These proactive measures are aimed at improving the quality of infrastructure in rural municipalities, which is critical for the provision of basic services, promoting economic growth, and improving the quality of life for rural communities.

Reply:

a) A total of 9.2 million accounts has outstanding balances valued at R44.2 billion. These balances comprise of unpaid invoices and penalties levied for non-payment over several years. At least 5.6 million accounts have been handed over for external debt collection.

b) In terms of the South African Broadcasting Corporation SOC Ltd Bill 2022 that was approved by Cabinet on 29 November 2022 for the submission to Parliament for processing, the DCDT is proposing that the television licence model be replaced with the household fee model. Pending the legislative changes, the DCDT will continuously engage with the SABC and Treasury to examine the options for the necessary reform and enhancement required of the current TV licence system to properly provide for the funding requirements of SABC and the most appropriate collection, enforcement systems and a timeframe for implementation.

Thank You.

Reply:

1) To address the digital divide in the Republic, the Department is driving implementation of the SA Connect Phase 2 programme aimed at ensuring affordable and universally accessible broadband nationally to meet the diverse needs of public and private users, including consumers and citizens. The SA Connect Phase 2 programme comprises three connectivity streams:

• Community and Household connectivity.

Broadband Infraco and Sentech will deploy core and access network infrastructure (840 Open Access Base stations, 33 539 community Wi-Fi hotspots and 1 600 VSAT connections in mountainous areas in Eastern Cape, KwaZulu-Natal, and Northern Cape provinces. Local Small Medium Micro Enterprises (SMMEs), Internet Service Providers (ISPs) and Mobile Virtual Network Operators (MVNOs)

will lease capacity from BBI and Sentech and provide connectivity to targeted 5 830 208 households and through 33 539 Community Wi–Fi hot spots, with the applicable metering and support.

• • Government Connectivity

SITA is responsible for connecting at a minimum of 10Mbps (total of 14 742 government sites) utilizing existing budgets from line departments for maintenance and the extension of services provided by SITA.

• • Universal Service Obligations connectivity.

Mobile Network Operators (Telcos) who received IMT spectrum through the recent auction are responsible for the deployment of the USO as per the ITA (Invitation to Apply) conditions. Telcos are required to connect the following facilities:

• • 18 520 schools
• • 1764 hospitals and 3967 clinics
• • 567 libraries and Thusong centres
• • 8241 traditional and tribal authority centres

(2) As part of their capabilities to deliver, the entities will use existing and new SMMEs and empower new sub-contractors for the programme. Sub-contractors will be sourced from the local communities where the construction will take place. Opportunities exist in route survey, network design, wayleaves, quantity surveys, fibre installation, last mile connections, points of presence (pop) construction, satellite equipment and service provisioning.

The project is estimated to provide employment opportunities for skilled professionals and semi-skilled labour.

The estimated number of SMME opportunities required for the programme are 75 companies for Core Network build, Access Network Service Providers, and Internet Service Providers (ISPs) / Mobile Virtual Network Operators (MVNOs).

Reply:

In terms of the Government Gazette Notice No 3247 of 31 March 2023, the Minister of Finance granted a partial exemption from section 55(2)(b)(i) of the Public Finance Management Act, 1999 (Act No. 1 of 1999 – the Act) and Treasury Regulation 28.2.1 to ESKOM Holdings SOC Ltd in respect of the 2022/2023, 2023/2024 and 2024/2025 financial years. In terms of Government Notice No. 3270 of 6 April 2023, this exemption was withdrawn in its entirety, covering the 2022/2023, 2023/2024 and 2024/2025 financial years. The exemption would have applied and be still in be place had it not been withdrawn prior to the submission of the Annual Financial Statements to the auditors of Eskom and the National Treasury, i.e., two months after the end of the financial year as per section 55(1)(c) of the PFMA. For the 2022/2023 financial year, the date of submission was the 31 May 2023. Therefore, the withdrawal of the exemption on the 6th of April 2023 was possible.

After considering all public comments on the matter, the Minister of Finance has determined that ESKOM Holdings SOC Ltd not be granted a partial exemption from section 55(2)(b)(i) of the Public Finance Management Act (PFMA) and Treasury Regulation 28.2.1, from disclosing irregular, fruitless and wasteful expenditure, and material losses from criminal conduct in its Annual Financial Statements. Please refer to the attached media statement dated 7 June 2023 covering the Minister of Finance’s decision on the ESKOM Holdings SOC Ltd PFMA exemption.

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Reply:

The eThekwini Metropolitan Municipality has reported that it is providing communities the in Cato Crest informal areas with different types of sanitation services. In the informal settlement areas, the municipality is providing communities with Community Ablution Blocks (communal ablution facilities providing full waterborne sanitation) as well as portable chemical toilets in areas where CABs cannot be constructed due to there being no water borne wastewater infrastructure or when the relocation of families to formal housing structures is imminent.

Further to this, the eThekwini Metro has reported that the municipality is not aware of the 30 families that are sharing one pit toilet in the Cato Crest informal area. However, should the municipality be assisted to identify the families mentioned in the question, they can be assisted through the municipality’s existing programmes for sanitation services for informal settlements areas in the form of chemical toilets as a short-term intervention and Community Ablution Blocks as a medium-term solution that can be completed within a period of six months.

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Reply:

No. The Department of Agriculture Land Reform and Rural Development has not launched any investigation into the ITB Holding company since the holding company is not part of the Ingonyama Trust Board as per the KwaZulu Ingonyama Trust Amendment Act, No. 9 of 1997. However, the Ingonyama Trust Board, in its response to the matter raised at the Portfolio Committee briefing on 2 May, has committed to look into the alleged misappropriation and take appropriate action.

Reply:

The reference to “increased Foreign Direct Investment into Africa on terms defined by Africans….”, addressed the notion of “Conditionalities to Aid”, underlining the imperative for Africa to focus on the continental challenges of poverty, low skills levels and weak industrial capacity “on its own terms and not through the terms defined by someone else. In this context, the African Continental Free Trade Agreement (AfCFTA) is considered as one of the key tools to address these continental challenges.

The remarks further contextualised the fundamental principle of “African Unity” and most importantly underlined the need for the 9th Pan-African Congress to take a “thematic approach” to guide its outcomes, including the following:

• Promoting Foreign Direct Investment on Africa’s own terms;
• Increased market access for African products and strong implementation of the AfCFTA;
• Enhanced and qualitative change in agriculture and food security for Africa;
• Decisive Transfer of technology and of innovation that Africans must play a role in;
• Affirm Africa’s need for Investment in infrastructure, including health infrastructure, in order to address the shortcomings that became evident during the pandemic period;
• Courageous in ensuring that Africa builds and strengthen democratic institutions; and
• Africa and its Diaspora should not neglect the development of its people through quality education, capacity-building and the right skills to pursue, human resource development, research and innovation.

Reply:

1. No, implementation of the money order was directed to Ingonyama Trust Board and not the department. ITB has decided to appeal the court’s decision and the application (appeal) by the Ingonyama Trust Board is still to be heard by the Supreme Court of Appeal.

2. Yes, the Minister files a report to the court every 3 months on the steps taken to comply with the two court orders.

Reply:

1. African Swine Fever (ASF) historically only occurred in the northern parts of Limpopo, Mpumalanga, Gauteng and North West, due to infected ticks carried by warthog that came into contact with domestic pigs. The epidemiology of the disease has changed in the past few years. Outbreaks started to occur in domestic pigs without proof of direct contact with warthog and the disease spread to areas where it was never detected previously. ASF has now been detected in domestic pigs in all provinces.

2. The total number of outbreaks is 110.

• Eastern Cape –25
• Free State–17
• Gauteng–13
• Mpumalanga–12
• North West –6
• Western Cape –35
• KwaZulu-Natal – 2

3. Yes.

(a) All properties where ASF is detected are placed under quarantine, with movement control and biosecurity measures put in place. ASF is a controlled and notifiable disease and pig owners are required by law to report any suspicion of ASF.

All suspicions of ASF (including all reported significant increases in pig mortalities) will be investigated by the local state veterinarian and appropriate samples taken for confirmation. While the results of tests are awaited, pre-emptive quarantine will be placed on affected holdings and the focus of this quarantine placement will be to prohibit movement off the farm.

Once the diagnosis is confirmed, quarantine will be confirmed. In addition to placing the affected property under quarantine, the risks for the area must be considered by the local state veterinarian, as well as forward and backward tracing to determine properties possibly at risk and possible sources of infection.

Surveillance activities must be implemented at high-risk properties, by means of clinical inspection and sample collection in the event of any sick or dead pigs. For the prevention of further outbreaks and the spread of ASF, the selling of live pigs at auctions in affected areas may be suspended if deemed necessary to prevent the mixing and distribution of infected pigs.

Movement controls (where movements require certification) and movement restrictions (where movements are not allowed) may be implemented in specified areas, as determined to be required.

Awareness campaigns on biosecurity (safe buying, safekeeping, and safe feeding) and other disease risks will be undertaken jointly with other roleplayers. Awareness is always done in affected areas to advise pig owners on the minimum biosecurity standards that will prevent ASF introduction into their farms.

The various control protocols and specified guidelines assist with infection control and prevention. Recording, analyses and reporting of clinical trials and sample collections assist to determine and monitor the effectiveness of the control protocols.This may be followed by self-audit and protocol adjustment.

(b) Monitoring of all disease control measures is done by the provinces.

4. The Department, together with the South African Pork Producers Organization, constantly issues media statements advising pig owners on biosecurity measures to empower owners to prevent the introduction of the disease onto their properties. Since ASF causes high mortalities in pigs, the disease generally does not go unnoticed. It is not expected or perceived that there are deliberate attempts to underreport ASF, once the disease is diagnosed. However, some farmers have the attitude of selling or slaughtering animals quickly, if they perceive that there might be an infectious disease in their herds. This undesirable behaviour is not limited to pigs and ASF, but applies to all livestock and different diseases.

Reply:

The Department of Water and Sanitation has held numerous engagements with Rand Water and the municipalities within Gauteng, wherein municipalities were requested to present their plans to mitigate against the water supply challenges in the province and to implement turn-around strategies.

The DWS has advised Rand Water and municipalities to develop projections of future demand and implement infrastructure development programmes to cater for growing demand. The following will be prioritised by all municipalities in Gauteng to mitigate water supply challenges:

• Reduction of water losses by addressing illegal connections in formal settlement areas where water theft is occurring
• Regularisation of authorized unbilled consumptions in areas such as informal settlements
• Reduction and control of unplanned human settlements in various municipal areas.
• Implementation of Water Conservation and Demand Management (WCDM) measures to reduce demand.
• Construction of additional spare storage capacity through construction of additional reservoirs.

The DWS has undertaken the implementation and acceleration of the Lesotho Highlands Water Project II to augment water supply to the Gauteng Province through the Integrated Vaal River System (IVRS). The target date for completion of this project and associated infrastructure is December 2027

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Reply:

There have been numerous projects over the last few years to investigate the feasibility of utilising Acid Mine Drainage (AMD) as a possible source of potable and/or grey water to add to the current water available to the Gauteng Province.

The objective, and one of the recommendations from the report: “Feasibility Study for a Long-Term Solution to Address the Acid Mine Drainage Associated with The East, Central and West Rand Underground Mining Basins, 2013" completed by Trans-Caledon Tunnel Agency, was to utilise the partially treated AMD from the three basins to potable standard to supplement the Vaal System.

Various technologies as well as alternative uses for AMD have been scrutinised and a report detailing the outcome and recommendations on how the Long-Term Solution should be implemented has been reviewed and will be released in the current financial year. Some of the options being considered include

1. Treating AMD effluent to potable standard and irrigation with mine water (treated and untreated).
2. Irrigation of crops using gold mine impacted waters as a Long-Term sustainable solution for mine water from the Witwatersrand Basins. In terms of this, a pilot project is being implemented under the guidance of the Water Research Commission and run by the University of Pretoria, is currently underway in the East Rand (Springs) and the results thereof will be released in due course.

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Reply:

a) The total number of state-owned farms acquired for redistribution is 3 708 farms for which the Department has lease agreements with the tenant farmers occupying them.

b) 30 years.

Reply:

a) Onderstepoort Biological Products (OBP) purchases Foot and Mouth Disease (FMD) vaccine from Botswana at an average price of 1,201.73(Pula) per unit which is an average of R1563.42 in South African rands, excluding freight costs (@2,9% = R45,33), import duties (@29% = R453.33), inventory and handling costs (@3,69% = R60,44), onsite costs (@4,6% = R72,54) and transport and logistics (@32% = R501.20). The inbound-landed cost per unit, therefore, is approximately R2696,26. The unit price is volume dependent on and influenced by currency fluctuation. Price changes per order depending on these two variables.

b) OBP sells the FMD vaccine to SA Government at R3 022,21

All these depend on the total of the vaccine. OBP has not increased FMD vaccine price in the past two years.

Reply:

The available data is of communal land comprising traditional council areas, as derived from proclamations defining the areas of jurisdiction of traditional councils. Such traditional council areas are situated on the underlying surveyed farms and farm portions. Traditional council areas have not been surveyed for purposes of regularisation of communal land rights.

(a) (i) 96 percent of communal land is currently not surveyed in South Africa.

(b) (i) 13 420 197.89 hectares of communal land is currently not surveyed in South Africa.

(a)(ii),(b)(ii) Please refer to the table below.

Provinces	(a)(ii) Percentage	(b)(ii) Hectarage
Eastern Cape	90.1	3 533 227.74
Free State	97.1	137 955.91
Gauteng	93.2	7 466.36
KwaZulu Natal	99.5	3 353 136.65
Limpopo	98.8	2 839 458.40
Mpumalanga	97.3	655 812.14
North West	99.7	1 983 864.31
Northern Cape	99.9	909 276.38
Western Cape	0	0

Reply:

The Department’s statement on the conflict in Sudan is in line with the statements issued by the African Union (AU), the United Nations (UN) and the international community as a whole. Similarly, South Africa’s statement on the war in Ukraine has been consistent with the statements by a number of countries, including international organisations. South Africa has consistently called for the peaceful resolution to the wars in Sudan and Ukraine, which have a devastating impact and negative humanitarian effects to the most vulnerable. South Africa supports the AU, UN and peace initiatives by a number of countries to bring about peace in these countries.

Reply:

1. The Department of Correctional Services (DCS) continue to implement the approved 2021 Overcrowding Reduction Strategy that focuses on direct and indirect measures within correctional facilities. Continuous engagements are also held at all levels within the Criminal Justice Cluster with an aim to improve current strategies and to find new implementable solutions for crime prevention and overcrowding. The implementation of Justice Cluster Strategies reflected in the approved Overcrowding Reduction Strategy is crucial in the management of overcrowding.

Direct Measures, are those that may result in the reduction of the inmates whilst the indirect measures are for facilitating the reduction through cooperation with relevant stakeholders including the analysis which provides the contextual understanding of overcrowding.

Direct Measures are as follows:

• Placement of lifers on Parole;

• Placement of offenders serving determinate sentences on Parole;

• Transfer of offenders between correctional centres

• Special Remission of sentences

Indirect measures to address overcrowding are as follows:

• Reclassification of offenders at prescribed interval for ensuring that security declassification takes place;

• Referral to court by DCS for conversion of a sentence of imprisonment to correctional supervision;

• School campaigns/ outreach programmes;

• Crime Awareness Campaigns;

• Imbizo;

• Restorative Justice approaches (Victim Offender Dialogue/Victim Offender Mediation)

In addition, the Department has established Governance Structures entrusted with the responsibility of providing an oversight function and creating platforms where overcrowding and the management thereof is discussed. Some of the functions of the Overcrowding Task Team is to monitor the implementation of the transfer plans and distribution of offenders within the region.

All Protocols in terms of the management of Remand Detainees are implemented such as the following:

• Referral to court for bail review (s63A and s63(1))
• Referral for consideration of period spent in detention (S49G).
• Referral to court of terminally ill or severely incapacitated remand detainees (s49E)

2. The DCS has no intention to have private companies running correction facilities other than the two existing contracts.

END

Reply:

a) It should be noted that no information is available that explicitly confirms that the remand detainees granted bail are still in detention due to inability to pay bail.

As at 31 March 2023 the total population of remand detainees was Fifty-five thousand seven hundred and forty-five (55 745).

(b)(i) A total of 854 were granted bail of one thousand rand (R1000.00) and less.

(b)(ii) A total of 598 were granted bail of above one thousand-rand (R1000.00) up to four million rand (R4 000 000.00).

(b)(iii) The table below depicts the various bail amount categories:

Bail Amount	EC	FSNC	GP	KZN	LMN	WC	Grand Total
Less Than R1000	189	61	251	117	22	214	854
>R1000 to R5000	21	5	268	95	19	114	522
>R5000 to R10 000	2	0	45	7	1	4	59
>R10 000 to R50 000	0	0	9	1	0	5	15
>R50 000 to R100 000	0	0	1	0	0	0	1
4million	0	0	1	0	0	0	1
GRAND TOTAL	212	66	575	220	42	337	1452

END

Reply:

The department does not have a record of any favouritism reported in the awarding of performance scores.

1. In terms of the department’s Performance Management and Development System for employees on salary levels 2 to 12, the following steps are followed in the Assessment Process:

• 1.1 Self-Assessment;
• 1.2 Supervisory Assessment;
• 1.3 If there is consensus between the supervisor and employee on the rating, the rating becomes a Provisional Assessment Rating (PAR). All employees’ PARs are submitted to the Chief Directorate Assessment Panel for assessment, informed by evidence/motivation, where assessment/moderating is conducted. If there is disagreement that cannot be resolved between the employee and the supervisor on the scores given, the employee and supervisor must each note their reasons on a form. The higher level supervisor may be engaged on the matter, if unsuccessful, this must be submitted to a mutually agreed mediator for mediation. If mediation does not result in a resolution within five days, the written noted are later submitted together with a form to the Chief Directorate Assessment Panel.
• 1.4   The process of assessment moderation:
  1. Departmental Moderation Committee (DMC), is chaired by the Director-General and comprises of Branch Heads (Deputy Director-Generals) in the department. The DMC ensures that the annual performance assessment is done in a realistic, consistent and fair manner. The DMC further monitors the performance assessment process by obtaining an overall sense of whether norms and standards are being applied consistently and realistically to employees on the same level and validate the assessment overall across the branch for purposes of evaluating ratings, and develop an overall view of the results of the process.
  2. Branch Validating Committee (BVC), chaired by a Deputy Director-General of a Branch and comprises of Chief Directors within the Branch. The BVC reviews validates quality assured Annual Performance Assessments based on evidence of the Annual Performance Plan, Annual Operational Plan, Performance Agreements and Workplans to recommend revision or approval. The BVC also verifies consistency and fairness in application of ratings across Chief Directorates and validate appropriate scoring/rating.
  3. Chief Directorate Assessment Panel (CDAP), headed by the relevant Chief Director, and further consisting of the Directors in the environment moderates the ratings of all employees in the relevant Chief Directorate, plays a critical role in assessing/moderating the provisional assessment rating of employees. Each supervisor on salary level 9 and above presents the rating scores allocated to employees in that unit to the CDAP and shall substantiate such scores, especially in cases of below average performance, or in cases where a performance bonus may be granted. If the CDAP does not accept the final rating agreed to between the employee and the supervisor, the supervisor must report back to the employee on the outcome of the CDAP recommendations. The CDAP may request the supervisor to rescore with the employee and revert to another sitting of the CDAP. If there is no change to the original final score that was sent back to the employee and supervisor, the CDAP makes a recommendation. The final recommendation of the CDAP is sent to the Branch Validating Committee to be noted as such by the BVC for final recommendation.
• 1.5 Decision Making: only after a Performance Assessment of an employee on salary level 2 to 12 has been subjected to assessment moderation by the CDAP, BVC and DMC, the outcome of the assessment is processed to the Director-General for approval.

2. Chapter 4 of the SMS Handbook, regulates the Performance Assessment for SMS members (L.13 to 15), the following steps are followed in the Assessment Process:

• 2.1 Self-Assessment;
• 2.2 Supervisory Assessment;
• 2.3 If there is consensus between the supervisor and employee on the rating, the rating becomes an Agreed Rating. All employees’ PARs are submitted to the Departmental Moderation Committee (DMC), informed by evidence/motivation, where assessment/moderating is conducted. If there is disagreement that cannot be resolved between the employee and the supervisor on the scores given, it must be escalated to the mutually agreed Mediator (refer to the Mediator on the Performance Agreement of the employee). If the mediation process fails, the employee and the supervisor shall indicate in writing the nature of the disagreement. They shall sign the performance assessment and forward it to the DMC.
• 2.4 The process of assessment moderation:
  1. The DMC may change the assessment scores of SMS members and the department’s annual report and Auditor General’s Opinion and Findings are used to corroborate and allocate appropriate scores..
  2. The DMC, established by the Executive Authority, shall moderate the performance assessment results. The DMC moderates the performance assessment results against the departmental programme performance and during this process, consider the individual SMS member’s contributions towards the achievements of the organisational objectives.
• 2.5 Decision Making:
  1. The DMC makes recommendations to the Executive Authority on the level of performance of SMS members and the results are implemented after approval by the Executive Authority or his/her delegate
  2. Only after a Performance Assessment of an employee on salary level 2 to 12 has been subjected to assessment moderation by the DMC, the outcome of the assessment is processed to the Director-General for approval.

• 2.6 In view of the extended moderation processes regulated for Performance Management and Development systems on and below SMS level, it does not leave room for a supervisor to be subjective to the extent of awarding a favourite surbordinate inappropriately high rates during Performance Assessments.

End

Reply:

1. The Department of Correctional Services has not entered into any contracts with the mentioned service provider, however the mentioned company is a sub-contractor of the Bloemfontein Correctional Contracts (Pty) Ltd (BCC) which operates the Mangaung Correctional Centre (MCC) as a Public Private Partnership (PPP) Correctional Centre under sections 103 – 112 of the Correctional Services Act 111 of 1998, as amended (CSA)

2. It should be noted that a presentation was made to the Justice and Correctional Services Portfolio committee on 18 March 2022 indicating that the contract entered into with BCC would come to an end on 30 June 2026. Subsequent to the security incident, on 20 April 2023, a termination notice for a period of 90 days was issued to BCC, and thereafter, the contract will cease to operate.

END

Reply:

For the financial year 2022/23 the inmate population in KZN Region increased from
22 024 to 24 256, reflecting an increase of 2 232 inmates.

The daily unlock as at 15 May 2023 was 24 180 against an approved bedspace of 17 778.

Approved Bedspace	Inmate population	Occupancy Level	Overcrowding level
	Remand Detainees and other unsentenced	Sentenced	Grant total
17 778	6 874	17 222	24 096	135.54%	35.54%

The distribution of the correctional centres according to security classification/category:

SECURITY CLASSIFICATION/CATEGORIES	TOTAL
Maximum	05
Medium	30
Remand Detention Facilities	03
Medium - Female	01
Medium - Youth	02
Medium - Juvenile	0
Maximum - Juvenile	0
Medium - Pre-Release	01
TOTAL	42

 

It should be noted that the main contributing factor to overcrowding is the type of serious crimes committed which result to long sentences and bail denial by the courts.

In an effort to manage overcrowding, the Department continues to implement the approved Overcrowding Reduction Strategy that elaborates on direct and indirect measures to manage overcrowding within correctional facilities.

Direct measures are those that may result in the reduction of the inmates such as:

• Placement on Parole (Lifers; Determinate sentences);
• Special Remission of sentences;
• Transfers between correctional centres.

Indirect measures are for facilitating reduction through implementation of activities that can contribute to the reduction of the DCS population namely:

• Reclassification of offenders at prescribed interval for ensuring that security declassification takes place;
• Referral to court by DCS for conversion of a sentence of imprisonment to correctional supervision;
• Restorative Justice approaches (VOD/VOM)
• Crime Awareness Campaigns such as-
  • School campaigns/ outreach programmes
  • Izimbizo

The Department has established Governance structures where overcrowding and the management thereof is discussed. The National Overcrowding Task Team (NOTT) monitors the implementation of the Regional Transfer Plans whereas the Regional Overcrowding Task Team (ROTT) monitors even distribution of offenders within the region.

All Protocols in terms of the management of Remand Detainees are implemented at all Remand Detainee and Mixed facilities. The protocols referred to relate to the following;

• Referral to court for bail review (s63A and s63(1))
• Referral for consideration of period spent in detention (S49G).
• Referral to court of terminally ill or severely incapacitated remand detainees (s49E)

END.

Reply:

The Standard Operating Procedure (SOP) which governs internal and external security prescribes security measures for court appearances by a sentenced offender on further charges.

The SOP outlines that a sentenced offender appearing in court on further charges must be dressed in their own private clothing which is clean and neat. In the event an inmate does not have suitable private clothes they are to be provided with release clothes.

END.

Reply:

(a) The value of the original award was two hundred and eighty two million, seven hundred and thirty six thousand and nine hundred, forty nine rand and twenty four cents (R282, 736,949.24).

(b) The total amount paid to the original service provider is one hundred and thirty two million, nine hundred and seventy one thousand rand three rand and thirty nine cents (R132, 971,003.39)

END

Reply:

a) Department has established a committee dealing with harassment incidents generally. During awareness campaigns and at morning parades when addressing the Code of Conduct, officials are sensitised about harassment.

For 2022/23, Quarter 04, the Department trained 240 officials to capacitate them to investigate, initiate and chair cases of harassment. During the Women’s month, Children’s month and the month of people living with disability, young women are targeted for training and awareness on harassment in the workplace.

The reported incidents of harassment are investigated and the outcome of the investigation will determine the disciplinary action to be taken against alleged transgressors. The victims are referred to Employee Assistance Practitioners for emotional and psychological support.

b) Each case is handled according to its own merits. The nature and complexity including availability of all relevant parties determines the expediency of each case.

 

END.

Reply:

a) The percentage of completion of the new correctional centre in Parys, Free State is 55%.

b) The estimated cost to completion of the project is ninety six million, four hundred and fifty four thousand, five hundred and forty eight rand and twenty three cents (R96, 454, 548.23) inclusive of Professional Fees at 18%. The mentioned amount excludes Construction Price Adjustment Provision (CPAP), Development Bank Southern Africa (DBSA) Management Fees, Contingency and Value Added Tax (VAT).

END.

Reply:

I have been advised:

(a)&(b) That the Department of Small Business Development (DSBD) has considered the potential impact of the sectoral determinations that may be made by the Minister of Employment and Labour. The understanding is that the determinations will be made in consultation with the relevant sectors and emphasis is placed on the determinations being focused on the employment of suitably qualified candidates. The consultation process will enable the sectors to contribute to the determinations and raise any issues that may affect the sectors adversely. Thus, the determinations will not be a unilateral decision by the Minister, but a decision based on a well consulted process. Moreover, designated employers will be provided an opportunity to submit representations to the Director-General and the Labour Court should they not be able to meet the set numerical goals and targets before any fine is imposed, as set out in the Regulations.

It is DSBD’s considered view that the conceptualisation of the sectoral determinations is not based on unreasonably changing the racial composition of workforces but ensuring the equitable representation of different races. It is not envisaged that small businesses will be negatively affected by the regulations, as any issues that may have an adverse impact on their competitiveness and viability will be considered, fairly.

It should also be noted that Small Businesses that employ less than 50 employees will be excluded from submitting annual EE reports to the Department of Employment and Labour. Therefore, Small Businesses are not affected by the sector EE targets.

Reply:

Find here: Reply

Reply:

The Department is not involved in the KARPOWERSHIP deal between South Africa and Türkiye. Department of Mineral Resources and Energy is better suited to answer in detail the question related to the deal with KARPOWERSHIP and Türkiye.

Reply:

Departmental Procedures as stipulated in the B-ORDER 3, Chapter 2, (Physical Care/ Hygiene), outlines the provisions of toiletries for inmates per month as follows:

• 5x toilet paper rolls per inmates,
• 1x packet sanitary towels (10`s) per female inmate and when requested,
• 1x toothbrush every 6 months or when requested,
• 2x 25ml tooth paste every third week or 1x 50ml per month,
• 2x 100-gram bar bath soap per month,
• 2x 200-gram bar sunlight green soap per month,
• 1 shaving blade,
• Face cloth and towel as required.

The provisions of toiletries and toilet paper at East London Management Area were as stipulated above and the last date of provision was on 03 April 2023 and 14 April 2023 respectively.

The Department continues to conduct the monitoring and evaluation of the implementation of the procedural prescript and analysis of reports on a monthly basis.

END

Reply:

The gazetting of a notice pursuant to the Diplomatic Immunity and Privileges Act, No. 37 of 2001 is a standard practice for international summits held in South Africa. The immunities are for the conference and not for specific individuals. This is a standard conferment of immunities that is done for all international conferences and summits held in South Africa irrespective of the level of participation. The immunities are meant to protect the conference and its attendees from the jurisdiction of the host country for the duration of the conference. The Government of the Republic of South Africa is a party to the Rome Statute and is aware of its obligations under the Rome Statute. The subject of President Putin and the warrant issued by the International Criminal Court are a matter under consideration by Government as reported many times in the public domain and in response to questions in Parliament.

Reply:

a) The farm belonging to Fortuins Kolk of the Rossouw Olivier Familie Trust (IT1990:2004) in Carnarvon was purchased in line with the Provision of Land and Assistance Act, Act 126 of 1993, using the Proactive Land Acquisition policy (PLAP) on 13 January 2023.

b) The comparative market values and prices of the farms that were sold in the Carnavon area between 2014 and 2023 are reflected in Annexure A: Comparable Market Values and Prices.

c) The indicators that the farm was bought within the realistic market value are based on the value determined by the Office of the Valuer-General in terms of the Property Valuation Act 17 of 2014 (PVA) of 2014:

The OVG price determination table:

Property description	Portion 2 of Farm Fortuins Kolk 37, Carnarvon RD
Land use	Grazing and irrigated land
Extent	3509.2669 Ha
Carrying capacity	32ha/LSU
Water sources	Boreholes and dams
Fixed improvements sizes	±695 m² in total
Current use value	R4 057 818.38
Market value	R18 161 321.00
PVA value	R11 110 000.00

d) The agreed purchase price of R11 110 000.00 is based on the provisions of the Property Valuation Act 17 of 2014 (PVA) and PVA Regulations.

Reply:

aa) The comprehensive breakdown of the procurement allocation of the Department of International Relations and Cooperation (DIRCO):

Financial Year: 2021-2022

(i) small – medium – and micro – enterprises

• none

(ii) Cooperatives

• none

(iii) Township enterprises

• none

(iv) Rural enterprises

• none

Financial Year: 1 April 2023 –

(i) small – medium – and micro – enterprises

• none

(ii) Cooperatives

• none

(iii) Township enterprises

• none

(iv) Rural enterprises

• none

bb) No other entity is reporting to the Minister.

Reply:

South Africa is a party to the Rome Statute, which established the International Criminal Court (ICC), a multilateral organisation that relies on inter-state cooperation to ensure peace and justice.

South Africa is also a member of BRICS which was founded upon, inter alia, the shared commitment to restructure the global political, economic, and financial architecture to be fair, balanced and representative, resting on the important pillars of multilateralism and international law.

The aspirations of the ICC and BRICS are mutually reinforcing. South Africa’s participation both in the ICC and BRICS reaffirms its commitment to international law and justice, protecting human rights, peace and security, multilateralism, and a rules-based international order, which is a fundamental pillar of South Africa’s foreign policy.

The Government of South Africa has, from the onset of the conflict between Russia and Ukraine, consistently called for a peaceful, negotiated solution. The Government of South Africa maintains this stance.

Reply:

a) Approximately thirteen percent (13%) of land in South Africa is communal land.

b) Approximately 16 million hectares.

(i),(ii) There is currently no disaggregation of occupied communal land in terms of apartheid-era Permission to Occupy Certificates and other forms of tenure.

Reply:

(a) Tourism is a concurrent function in the Constitution.

The Department together with provinces, the private sector and law enforcement agencies developed a Tourism Safety Strategy in 2018. The 2018 Strategy has not yet been fully implemented and was revisited on 29 May 2023 at a Dialogue to implement it and action was agreed on outstanding issues. The strategy implementation is supported by a Memorandum of Understanding (MoU) between the Department and SAPS.

The Tourism Safety Forum will now meet quarterly.

The Department has budgeted to train 2000 Tourism Monitors in the 2023/24 Financial Year.

(b) In partnership with the private sector, we will launch a safety app and operational centre where monitoring will be done.

Reply:

(a). The current system of lodging applications for mining licenses is ELECTRONIC. The DMRE launched an online system, referred to as SAMRAD Online Application System, in 2014 where all applications for mining licenses are lodged. Furthermore, the online system was launched to make it easier for companies and individuals to lodge applications in the comfort of their company offices or homes.

(b). The DMRE through the Small-Scale Mining directorate has been assisting Artisanal Small -Scale Mining (ASM) miners through providing financial provision for rehabilitation to qualifying Historically Disadvantaged South African (HDSA). The environmental licenses are evaluated and granted by the DMRE (Competent Authority) whilst the Department of Forestry, Fisheries and the Environment (Appeal Authority) deals with objections and appeals of environmental licenses.

Reply:

1. The Figtree clinic is not dilapidated. A major renovation was last done in 2017 and minor maintenance is done as and when the need arises. The current challenges are that it still has a pit latrine and the fence that has become worn.

The clinic has an average monthly headcount of 2445 visits, which equates to an average of 122 patients per day. It has 4 consultation rooms and uses the nurses’ home as an extension to accommodate the facility manager’s office and HIV testing, screening and counselling services.

2. Mpumalanga Department of Health has identified forty (40) projects for comprehensive maintenance and Figtree Clinic is one of the clinics to benefit. The renovation of the first batch of health facilities started in April to June 2023. Fig Tree clinic is falling under the second batch which will start from July to September 2023.

END.

Reply:

No.

According to the Mpumalanga Department of Health, Goba in Ward 11 has an estimated population of 860. The nearest Primary Health Care (PHC) facility is 6km away in Mbangwane. The population size does not meet the norm of 8 000 - 10 000 which allows for a fixed PHC facility to be constructed. Currently, a mobile clinic is visiting the village once a month. The number of patients seen per visit are between 35 to 40.

END.

Reply:

The Department of Agriculture, Land Reform and Rural Development does not have Provincial Heritage Resource Authority unit within its approved organisational structure.

(a),(b) Falls away.