Questions and Replies

Reply:

The draft Rapid Deployment Policy is scheduled to be processed by the Department at the end of September 2015. The draft Policy will then be gazetted for public comment in accordance with the procedure prescribed in the Electronic Communications Act No. 36 of 2005. The final Rapid Deployment Policy will then be developed taking into account the submissions made on the draft Policy. The final Rapid Deployment Policy will then be submitted to the Cabinet for approval.

Reply:

The new board members will be appointed before the expiry time of the current board members.

Reply:

I have been advised by Broadband Infraco as follows:

(a) Six (6) employees have resigned from Broadband Infraco in the period from 30 September 2014 to 30 June 2015.

(b) The table below referred to questions (b)(i)-(iii)

Termination from September 2014 to June 2015
Number of resignations	Termination date	Termination Service	Positions	Skills	Job Grade	Annual TCTC
1	2014/09/12	Resignation	Technician	Infrastructure maintenance	Peterson C2 Lower	R354 660
2.	2015/01/31	Resignation	Manager for performance Information Monitoring	Business Performance Monitoring and Reporting	Peterson D3 Lower	R504 534
3.	2014/02/01	Resignation	Manager Legal	Commercial Law	Peterson D3 Lower	R800 000
4.	2015/05/31	Resignation	Snr Engineer Transmission	Network Design	Peterson D3 Lower	R711 207
5.	2015/06/12	Resignation	Payroll Account	Payroll reconciliation and payment	Peterson D1 Lower	R355 200
6.	2015/06/30	Resignation	Specialist Maintenance	Infrastructure Maintenance	Peterson D1 Lower	R759 384

Reply:

(1) No. However the DTPS, DPSA and SITA have been collaborating on matters regarding e-Government and e-Enablement of the prioritised 5 e-Services. The consultations in between the three institutions was conducted through a working group established by the Directors Generals of the two departments as well as the then SITA CEO. The discussions were continued June and Jul 2105 and SITA was tasked by the DPSA on 15 July 2015 to initiate programmes around the prioritised e-Services.

(2) Yes the SITA has been consulted in respect of the specified strategy. SITA, DPSA and DTPS are collaborating on the e-Enablement of the 5 prioritised Services as outlined in the Medium Term Strategic Framework 2014-2019 Outcome 12.4.6 and the DPSA Annual Operation Plan 2015/2016. This strategy is aligned with the 2015 ICT Policy Review Green Paper and SA Connect programme.

Reply:

1. (a) The South African Post Office (SAPO) is currently leasing one thousand two

hundred and forty three (1243) properties from private companies. These consist of Retail outlets, Depots, Office Space and Mail Centres.

(b) As of 6 August 2015 a total of six (6) Retail outlets were locked by the land lord due to non-payment of rentals. Four (4) of these Retail Outlets are located in Kwa-Zulu Natal and two (2) in the Witwatersrand region. In addition, electricity has been disconnected by the land lords in five (5) Retail outlets due to non-payment of rental.

In addition to the abovementioned closed offices, a total of twelve (12) Retail outlets have been closed due to eviction by the land lords since March 2015. Furthermore, five (5) Retail Postal Agencies have been closed by the Agents due to non-payment of their monthly allowance.

2. (a) SAPO is leasing eighteen (18) properties from the Redefine Group.

(b) None of the eighteen (18) properties rented from the Redefine Group are closed

Reply:

The Department is not reviewing the Electronic Communications Amendment Act, Act 1 of 2014, as amendment Acts are normally not reviewed.

Reply:

I have been advised by the Department and Entities as follows:-

DEPARTMENT:

1. Yes

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name	Contract Period	Contract terminated	(iii) Termination reason	Contract period paid out	(i)(aa) Amount
S D L Dhlomo	13 July 2009 to 13 January 2011	31 May 2010	The Post of Deputy Director: Subsistence and Travel was not approved on the organisational structure. The appointment was made irregularly. The employee’s contract was terminated accordingly. The employee then took the department to arbitration.	1 June 2010 to 13 January 2011	Salary: R 249 192-70

South African Post Office (SAPO)

(b) Yes,

It is not a practice of the SAPO to pay the remaining value of the contract in cases where Executives leave the organisation before the expiry date of the employment contract. The Executives in the table below were only paid the arbitration awards agreed to, between the employees, their legal representatives, and the company. However, these payments are not linked to the contracted term of employment

See arbitration figures paid since the 2008/9 financial year to current within the SAPO Group.

 

(ii) Name	Job Title	(iii) Reason for Termination	(i)(bb) Settlement Amount	Settlement Date
JP WENTZEL	COO (2 A)	Resignation (Arbitration settlement)	548,058.25	10/07/2011
RM NESHUNZHI	GM (3)	End of Contract (Arbitration settlement - (Contract paid until 31 May 2012)	532,493.50	11/30/2011
MM LEFOKA	GCEO (1)	Resignation (Arbitration settlement)	1,466,810.00	01/24/2012
MS DIAZ	GE (2 B)	Resignation (Disciplinary hearing - Deed of settlement signed) Arbitration settlement	370,217.25	11/28/2013
ME LANCASTER	GE (2 A)	Retrenchment severance package (Voluntary Retrenchment Agreement)	1,698,977.00	12/3/2013
BS BULUNGA	COMPANY SECRETARY (3)	Dismissal (Settlement at CCMA)	404,615.93	26/3/2014

ZADNA

(b) No

ZaDNA has not had an employee’s contract terminated before its stipulated termination.

SENTECH

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name of Employee	Position	Period	(i)(bb) Amount Spend	(iii) Reason for Settlement	Process
Mr. Cassim Mohammed Siddique	Chief Financial Officer	2010	R 360 000.00	Dismissed	CCMA Award settlement
Mosala Mojaki Frederick	Head: Employee Relations	2010	R 257 393.00	Dismissed	Employee lawyer based on the ongoing case with little evidence
Steenkamp Carin	Portfolio Manager: Special Projects	2010	R 515 824.47	Retrenched	Retrenchment
Ramokhufi Rachel Neo	Executive: Strategy and Co-ordination	2010	R 250 698.34	Ongoing disciplinary hearing	Employee lawyer based on the ongoing case with little evidence
Email [email protected]	Chief Financial Officer	2012	R 142 482.84	Claimed Constructive - Dismissed	CCMA Award settlement
Nevhutalu Tendani Gaylord	Head: Financial Accounting	2012	R 62 000	Dismissed	CCMA Award settlement
Emerich Rian	General Manager: Marketing and Sales	2012	R 83 503.27	Dismissed	CCMA Award settlement

NEMISA

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) To whom were payments Made	Period	(i)(bb) Amount Spend	(iii) Reason for Settlement
Chief Operations Officer	2013-2014	R 779 055.00	Mutual Separation Agreement

BROADBAND INFRACO

(b) Yes,

From 2008-09 up to date, Broadband Infraco had no early terminations of contracts which involved paying out the remainder of an employee’s fixed term contract. However, Broadband Infraco did terminate the employment contract of three (3) employees due to disciplinary processes and after an assessment that it would cost the Company far less to have conclude a mutual separation agreement with each of the employees instead of pursuing long protracted legal proceedings and committing company resources and labour in pursuit of the legal cases against the employees. Refer to the table below:

(ii) Name of employee	Position	Period	(i)(bb) Amount Spend	(iii)Reason for Settlement	Process
Suren Maharaj	Chief Financial Officer	March 2011	R 395 916.50	The Board decided to part ways with the CFO after he was issued with a final written warning for dereliction of duties	Employee had been issued with a Final written warning
S Mapatagane	SHEQ Manager	June 2011	R 123 527.34	The settlement was paid out due to legal costs that were increasing and lawyers for the Company advised on paying the settlement to minimise litigation costs	Employee had been subjected to a disciplinary hearing
Ray Hamilton	Chief Sales & Marketing Officer	August 2014	R 400 000	Paid a negotiated settlement for four (4) months for mutual separation with R Hamilton.	Disciplinary Process- he exceeded his delegation of authority

USAASA

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) To whom were payments Made	Salary Level	Salary per annum	(i)(bb) Amount Paid	(iii)Reason	Date of Exit
Senior Manager: Human Resources	13	R 540 429	R 135 107	Mutual agreement	31 May 2008
Chief Executive Officer	15	R 1 099 824	R 458 260	Mutual Agreement	31 May 2010
Chief Executive Officer	15	R 1 120 935	R 499 292	Mutual Agreement	30 March 2012
Senior Manager: USAF	13	R 782 883	R 547 000	CCMA Settlement Agreement	30 September 2015
Board Administrator	10	R 405 390	R 99 534	Mutual Agreement	31 December 2014
Payroll Administrator	9	R 296 100	R 74 025	CCMA Settlement Agreement	20 April 2015

SITA

(b) Yes

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name	Designation	(i)(bb) Gross Pay Out	Date paid	(iii) Reason for Termination
Blake Mosley-Lefatola	Chief Executive Officer	R 1 439 606.45	May 2013	Early termination of contract (Board Decision)
Nontobeko Ntsinde	Chief Executive Officer	R 574 991.00	June 2013	Unfair termination of contract (Labour Court Decision)
Thandi Zide	SITA Company Secretary	R 550 000.00	August 2013	Unfair Dismissal (CCMA Decision)
Khumbuzo Ntshevheni	Chief Operating Officer	R 1 899 000.00	June 2014	Early termination of contract (Referred to Labour Court and resulted in a Settlement Agreement)
Tshidi Gumbi	Head of Department: Human Resource	R 265 898.52	May 2015	Unfair Dismissal (Referred to CCMA and resulted in a Settlement Agreement)

Reply:

I have been advised by the South African Post Office as follows:-

SAPO does not receive revenue from Universal Postal Union.

Reply:

I have been advised by the South African Post Office (SAPO) as follows:

1(a)(i) (aa) February 2015 - 56 161

(bb) March 2015 - 59 138

(cc) April 2015 - 60 010

(ii) All items are subject to import duties and are processed by SAPO. South African Revenue Service (SARS) stops items for inspection in the event of any missing or required documentation or if items are deemed not to be allowed in the country.

(b) The set standard for processing items is 48 hours. However this may differ depending on the volumes received and that have to be processed.

2. The South African Police Service (SAPS) work in conjunction with SARS to stop items for inspection in the event of any missing or required documentation or if items are deemed not to be allowed in the country.

The set standard for processing items is 48 hours. However this may differ depending on the volumes received and that have to be processed.

No arrests have been made by SAPS for this period.

Reply:

I have been informed by the Department as follows:-

(1)(a)&(b) The development of the policy and policy directions have been delayed due to the complexity of the task and a lack of dedicated staff within the Department to carry out the extensive consultation required.

(2)(a) Analysys Mason

(2)(b) Analysys Mason was appointed through a process managed by the Government Technical Advisory Centre (GTAC) from National Treasury, who is assisting the Department with several aspects of the implementation of the National Broadband Policy (SA Connect).

(2)(c)(i) The contract price is R 3.65 million

(2)(c)(ii) The consultant has been appointed to assist the Department in developing the Rapid Deployment Policy and Policy Directions and to consult with affected stakeholders. It is expected that the Rapid Deployment Policy should have been developed by the end of the third quarter of 2015.

Reply:

I have been informed by the Department as follows:-

1. One Deputy Director-General: Still in progress

One Deputy Director-General: Disciplinary hearing has been finalised

Personal Assistant: Disciplinary hearing has been finalised

Departmental Bid Adjudicating Committee: Still in progress

Departmental Bid Evaluation Committee: Still in progress

1. 12

1. Two employees: Salary level 15

One employee: Salary level 8

Six employees: Salary level 13

One employee: Salary level 14

One employee: Salary level 11

One employee: Salary level 9

Reply:

I have been informed by the Department as follows:-

1. The Office of the State Attorney instructed advocates from the Johannesburg Bar.

(b)The DG instructed the State Attorney, and the State Attorney appointed advocates.

(c)(i) Adv. M. Mooki (Initiator) - R 1100 per hour

Adv. Z. Z. Matebese (Chairperson) - R 1200 per hour

Adv. V. D. Ntsweni (Chairperson) – R 850 per hour

Adv. M. E. Mathaphuna (Chairperson) – R 750 per hour

Adv. M. A. Mavodze(Chairperson) – R 1050 per hour

Adv. M. S. Shaba (Chairperson) – R 1250 per hour

Adv. S. B. Mhlapo (Chairperson) – R 700 per hour

(c)(ii) Adv. M. Mooki (Initiator) – R 267 352.80

Adv. Z. Z. Matebese (Chairperson) – R 158 004

Adv. M. S. Shaba (Chairperson) – R 191 662.50

Adv. S. B. Mhlapo (Chairperson) – R 83 790

(iii) Yes, the payments of three chairpersons who have not yet submitted invoices.

Reply:

I have been advised by the Department and Entities as follows:-

DEPARTMENT

(a) Nil

1. (i) SAPO R 95 722.20

SITA R 241 216.61

Others Nil

(b)(ii) SAPO - R813 297.29

Others Nil.

Reply:

I have been advised by USAASA as follows:-

1. The USAASA Board took a resolution to oppose the SIU Court Application. Supporting affidavits deposed by the CEO were filed by the Agency in support of its defence and to answer to the allegations involving the CEO. The Agency is therefore paying all the legal costs.

1. The CEO will not be held liable for any legal costs incurred in the event the application is unsuccessful. The reason for this is that, the CEO is not defending this matter in his personal capacity. The Board is defending the matter because it is the Board’s decision to appoint the CEO that is being challenged by the SIU. The Board’s decision to appoint Mr Zami Nkosi is what is at issue in this Court Case.

1. No steps will be taken to recover the specified legal costs if a cost order is awarded against the Agency. The Agency is defending its own decision

1. The Board, as the Accounting Authority, has a fiduciary duty to act in the best interest of the Agency. The Board exercised its mind with due diligence when it decided to appoint Mr Zami Nkosi as its CEO and when it took a resolution to defend that decision and oppose the SIU Court application.

Reply:

I have been advised by the South African Post Office (SAPO) as follows:

1. The total number of people employed at Johannesburg International Mail Centre (JIMC) is 237.

(b)(i) (aa) Management 5

(bb) Permanent 211

(cc) Casuals 21

Reply:

I have been advised by the Department as follows:-

(a) Government will rollout broadband services in Eight District Municipalities targeting schools, health facilities, police stations, post offices and other government facilities. The eight districts are:

• Dr Kenneth Kaunda

• Gert Sibande

• O.R. Tambo

• Pixley ka Seme

• Thabo Mofutsanyane

• Umgungundlovu

• Umzinyathi

• Vhembe

This rollout programme represents the first phase of the national implementation of the Digital Development strategic pillar of South Africa Connect and it is delivered parallel to the programmes initiated by Gauteng and the Western Cape Province in an effort to deliver on the targets set in the National Broadband policy. The project will deliver the connectivity services via a mix of technologies in line with the South Africa Connect Policy objectives.

(b-d) National Treasury has allocated a total of R739 million over the MTEF for the programme. For the first phase, R200 Million has been allocated. The funds have been allocated as follows:

No	Year	DTPS Request	NT Allocation
1	2015/16	R 225 402 697	R 200 000 000
2	2016/17	R 516 343 210	R 268 300 000
3	2017/18	R 719 525 698	R 271 700 000
MTEF Sub-Totals	R 1 416 024 135	R 739 000 000

Reply:

I have been advised by the Department as follows:-

(a) and (b) In the development of the Project scope; Phase 1 Business Case and Plan; the Department engaged and consulted critical stakeholders including State-Owned Companies (SOCs) of the department who provided insight into the national footprint of infrastructure as part of the effort to determine the infrastructure gap. Provincial departments also provided input on their broadband rollout plans to ensure that they align with South Africa Connect and are integrated into the common plan of the DTPS. The national Departments of Health, Basic Education, Rural Development, National Treasury through the Government Technical Advisory Centre (GTAC), South African Police Services and the Council for Scientific and Industrial Research (CSIR) were consulted to develop the user requirement specification for the broadband services as part of the development of the business case.

Reply:

I have been advised by the Department as follows:-

1. Yes, External consultants were sourced to assist and provide support in the development of the Business Case.

The CSIR was chosen as a result of its access to broadband infrastructure info at a national scale.

The Department’s primary support was provided by the Council for Scientific and Industrial Research (CSIR) which assisted with the infrastructure information used to conduct the infrastructure gap analysis.

(b) Through the assistance of the Government Technical Advisory Centre (GTAC) who facilitated a competitive procurement process for service providers, the Department was also able to source the assistance of Deloitte to provide financial and procurement advisory services. The support of Deloitte assisted the department with the development of a financial model that could cost the project as part of the development of the business case.

(c) CSIR was paid R 5,643,000 and Deloitte was paid R850, 000

Reply:

I have been advised by the Department as follows:-

(a) R 21 million has been allocated for Broadband Planning; and

R 200 million has been allocated for South Africa Connect.

The department will be buying services for the 8 identified districts from a service provider.

(b) No tenders have been issued for the implementation of the programme.

(c) N/A

Reply:

I have been advised by Sentech as follows:

1. R1 287 609 781. 84.

(b-c) The Manufactures warranties cover equipment for maximum period of 24 months. The table below provides a span of equipment for active components of the DTT networks. There is a total of 4712 DTT assets amounting to R447 663 469 that falls outside manufacturers’ warranties (highlighted in yellow) and a total of 3206 assets amounting to R324 058 305 falling within manufacturers’ warranty period (highlighted in green).

Acquisition year	2008	2009	2010	2011	2012	2013	2014	2015	Total
Warranty expiry date	2010	2011	2012	2013	2014	2015	2016	2017
Acquisition value	R63 056 479	R91 020 130	R82 065 010	R91 433 270	R120 088 580	R30 067 142	R229 562 145	R64 429 018	R771 721 774
Total assets	328	936	1551	583	1314	1655	1077	474	7918
Warranty status	Out of warranty period	Within warranty period

Reply:

(a) The Department is an active member of the UPU and is in regular communication with the International Bureau of the UPU. I have met with the Director-General of the UPU, Ambassador Bishar Hussein of Kenya, in South Africa on the 6 August 2014, and provided an update of developments within the administration of the South African government relating to Telecommunications and Postal Services. Previously officials from the UPU had also been briefed by officials from DTPS as they interact on an ongoing basis.

(b) As the Department of Telecommunications and Postal Services is the responsible Department for postal matters, including South Africa’s membership of the UPU, it follows that SAPO falls under DTPS. The UPU has been requested to update their website to record the Department of Telecommunications and Postal Services, instead of the Department of Communications.

Reply:

SAPO RESPONSE:

	Number Current	Number + 30	Number + 60	Number + 90	Number + 120
Total Unpaid Suppliers	1969	1 804.00	879.00	664.00	1 742.00
Amongst outstanding R000.				-166782511.47	-54466162.78

(b) In each case, what is the (i) name of the company/supplier concerned, (ii) amount outstanding per company/supplier and (iii) reason for non-payment?   

SAPO RESPONSE:   Reason the company is having turnaround challenges (cash flow) it is trying to overcome with its turnaround strategy implementation.

Reply:

I have been advised by the Department and Entities as follows:-

(a)   DEPARTMENT

The Department has not installed generators in its offices; it is currently renting offices that have generators installed by the landlord.

1. Not applicable
2. No costs

(b)

.ZADNA

Zadna has not installed generators in its offices; it is currently renting offices that have generators installed by the landlord.

1. Not applicable
2. No costs

NEMISA

No, the building had an already existing generator from occupation of the building.

(ii) January 2015

• Petrol: R 2 000
• Service: R0

February 2015

• Petrol: R2 000
• Service: R 3 311.70

 

March 2015:

• Petrol: R0
• Service:R0

April 2015:

• Petrol: R 2 000
• Service: R0

May 2015:

• Petrol: R0
• Service: R0

June 2015:  

• Petrol: R2000
• Service: R0

Total cost to date: R 11 311.70

THE SOUTH AFRICAN POST OFFICE (SAPO)

SAPO has not installed any generators as of January 1, 2015.

Broadband Infraco (BBI)

Broadband Infraco has not had to installed any generators or expand on its existing fleet of mobile generators as a result of load shedding since 1 January 2015.

SENTECH

SENTECH has not installed any generator at any of its offices since January 2015 due to load shedding.

SENTECH already has generators installed as part of its normal operations of ensuring that its offices have standby power.

SENTECH has standby generator capability at most of its infrastructure sites to protect services against normal power disruptions to ensure services continuity. The Eskom load shedding situation does impact sites without back-up power and increase operating costs due to increased standby plant running hours and associated maintenance and fuel costs.

Most of SENTECH sites have Stand by Generators (STG’s) already installed. From January 2015, a new STG was installed at Kroonstad as a replacement due to the failure of the existing one. SENTECH is also installing STG’s at its three Greenfield stations at Harrismith, Holy Cross and Ngqeleni. The installations at these three sites form part of SENTECH’s normal installation on all new transmitter sites to ensure continuous service during power outages.

The installation cost per site is as follows:

Harrismith STG: R535 244. 25

Holy Cross STG: R445 553. 00

Ngeleni STG: R437 759. 50

Kroonstad STG: R267 133. 75

Total R1 685 690. 50

Towards the end of the previous financial year and during severe load shedding periods, SENTECH reviewed energy expenditure and determined that SENTECH plants were running 30% more than normal, meaning that operating costs will increase accordingly. The following amount has been spent on fuel for generating standby energy.

Monthly Cost

Jan-2015 668 917

Feb-2015 1 085 850

Mar-2015 535 739

Apr-2015 1 120 166

May-2015 759 142

Jun-2015 300 651

Total 4 470 465

USAASA

USAASA has a generator provided by the landlord in 2010.  No other generator has been purchased since January 2015. The running of this generator is R31, 661.10 annually.

SITA

SITA has installed a rented generator for the SITA Centurion Data Centre, commissioned in January 2015.

The table below reflects the costs associated with preparing the site prior to installation of the generator as well as monthly costs for the rental of the generator installed at SITA’s National Key point (NKP) Centurion Data Centre:

No	Activity	(ii) Running Cost from January 2015 to June 2015	(i) Cost of installation
1.	2200 kVA Diesel Generator rental for per month	R 1 624 500 (R 270 750 x 6 months)
2.	Cable Laying which was done as the first step		R 4 224 156
3.	Electrical control panels for generators which was installed to connect the new generator to the SITA existing grid		R 1 026 000
4.	Alarm systems to enable early warning via SMS messaging		R 273 600
5.	Project Management Fee to manage the above		R 927 070
6.	Diesel fuel (One fill at deliver)		R 95 760
	TOTAL COST	R 1 624 500	R 6 546 586