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03 May 2016 - NW1153

Profile picture: Holomisa, Dr BH

Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)With reference to his replies to questions 616, 723 and 724 on 17 March 2016 (details furnished), can he, after consultation with the first Chief Executive Officer (CEO), the second CEO Mr Mokhobo and the third CEO Mr Jacques Booysen, as well as attorney Mr Edward Lalumbe and Mr Prince Mafojane, Chairman of the Gauteng Gambling Board (GGB), (a) provide a copy of a letter, written by Mr Sello Loate and addressed to Mr Dan Mzizi and Mr Richard Moloko, dated 31 October 2000, in which Mr Loate, the technical monitor on behalf of the GGB, in the specified letter states that “these secret developments pose a potential risk to Akani, in the sense that Freedom Park is on a tight schedule” and (b) acknowledge that the specified letter is important, as it points to the fact that the National Gambling Board (NGB) provided him with incorrect information when it said that The Apartheid Museum was the Gold Reef City Casino project at the time of the application for the Gold Reef City Casino licence and also proves that three years after 1997 the GGB was only aware of Freedom Park, as the project promised by the Gold Reef City Casino; (2) can he, after consultation with the specified persons of the GGB, (a) confirm that the casino licence was awarded to the two applicants on 22 April 1998 on the condition that within a period of three years the joint owners of the Gold Reef City Casino licence must complete the Freedom Park project as promised, (b) confirm that Abraham and Solomon Krok were the principal shareholders of the promoters and that they were present at the public hearing for the Gold Reef City Casino licence on 18 November 1997 and that, under the mandatory provisions of the National Gambling Act, Act 7 of 2004, referred to as Black Economic Empowerment, the Chairperson Mr Reuel Khoza, placed Abraham and Solomon Krok centre stage as white persons who had over 40 years grown their wealth in the pharmaceuticals industry and (c) provide the further relevant details of the direct and/or indirect investment of Abraham and Solomon Krok; (3) (a) can he, in consultation with the NGB, the GGB and the Companies and Intellectual Property Registration Office (CIPRO) and/or the Companies and Intellectual Property Commission (CIPC) provide the company registration numbers for Tacasa Investment (Pty) Ltd and Casino Austria International Holding GmbH, together with the names of the directors at the inception of the specified two companies and (b) can he explain why he sought answers from CIPRO and/or CIPC when the questions raised by Mr B H Holomisa specifically asked for incorporation and other documents in the possession of the NLB and/or National Lotteries Commission (NLC); (4) (a) can he, specifically after consultation with Professor Dorcas Jafta and Ms Thoko Mkhwanazi-Xaluva, the past and current Chairpersons of the Arts, Culture and Heritage Distribution Agency of the NLB and/or NLC and Ms Thabang Charlotte Mampane, the CEO of the specified distribution agency, as well as Mr Jeffrey Du Preez, the Chief Operations Officer of the NLB and/or NLC, confirm that the (i) statutory declaration of Mr Christopher Till, used in support of the application for funding submitted in November 2004, records the name of the applicant as SA Apartheid Museum under the Unique Company Registration Number 2001/019108/08 and (ii) specified person in his statutory declaration, in keeping with the rules and regulations set out by the NLB and/or NLC, stated the name of the bank account for the payment of the grant-in-aid as SA Apartheid Museum and (b) can he, after a reading of the evidence given under oath by Professor Dorcas Jafta and Tebogo Maitse on behalf of the NLB in Case No 788/10 in the Supreme Court of Appeal, explain why the R1,580,000 grant-in-aid was paid to The South African Apartheid Museum at Freedom Park, even though Mr Christopher Till of SA Apartheid Museum, under the imposed statutory obligation, provided no such information in his application for funding; (5) can he, specifically after consultation with the NLB and/or NLC finance department and PriceWaterhouseCoopers, the appointed auditors for the NLB and/or NLC, (a) provide conclusive proof that SA Apartheid Museum and Mr Christopher Till in fact received the three tranches totalling R1,580,000 after the adjudication of the application for funding in 2008, (b) confirm that the (i) specified allocation is first listed in the 2006 Annual Financial Statements of the NLB, under the name SA Apartheid Museum and, after further consultation with the Auditor-General, explain how the grant-in-aid of R1,580,000 to SA Apartheid Museum is accounted for in the 2006 Annual Financial Statements when the application for funding, according to him, was not adjudicated until 2008, two years later and (ii) specified person in fact provided Annual Financial Statements for SA Apartheid Museum, prior to the adjudication of the specified person’s application in 2008 and (c) can he furnish the project number allocated to the specified application by the specified person for SA Apartheid Museum in November 2004?NW1289E

Reply:

(1) and (2) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(3) (a) According to the response received from the CIPC, these two company names are not registered on the CIPC’s database.

(b) Information regarding incorporation of companies is best sourced from the CIPC.

(4) According to the response received from the NLC:

(a)(i) The Section 21 Company Registration Number is given as 2001/019108/08.

(ii) The bank account named in the application was SA Apartheid Museum.

(b) In light of the above naturally, any allocated funding will be paid into the account of the applicant/beneficiary as per the application form.

(5) According to the information received from the NLC:

(a) Three Payments were made to the SA Apartheid Museum as follows –

Tranche Amount

1. R600,000.00

2. R585,000.00

3. R400,000.00

All payments are disclosed in the NLC Annual Reports which can be located on our website: www.nlcsa.org.za

(b)(i) SA Apartheid Museum applied for grant funding during 2004 and tranches were paid as indicated above. In 2008 the NLC migrated information from Grant Management System (GMS) 1 to GMS 2. When the migration was done, certain information was corrupted in that applications adjudicated in 2004, 2005, and 2006 gave an impression that they were adjudicated in 2008 whereas there was no such adjudication of SA Apartheid Museum in 2008.

(ii) The Annual Financial Statements of the SA Apartheid Museum for financial years 2001, 2002 and 2003 were submitted with the original application on 24 November 2004.

(c) The project number for the application received by the NLC of the SA Apartheid Museum on 24 November 2004 is 18052.

03 May 2016 - NW1152

Profile picture: Holomisa, Dr BH

Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)With reference to his replies to questions 616, 723 and 724 on 17 March 2016 (details furnished), can he (a) explain why he sought answers from the National Gambling Board (NGB) when the specified questions specifically asked for a response from the provincial authority, the Gauteng Gambling Board (GGB), (b) provide the (i) name of the Chief Executive Officer (CEO) of the GGB, who had resigned in December 1997, after which Mr Mokhobo of Gobodo Incorporated took up the position of Acting CEO of the GGB between 1 January 1998 and 14 April 1998 and (ii) names of all the directors of Gobodo Incorporated at the time when the firm secured the contract to conduct probity checks on the aspiring applicants for casino licences and (c) confirm, in consultation with the specified CEO and/or the GGB, if Mr Bongani Biyela did in fact work for the GGB; (2) can he, after consultation with certain persons (names and details furnished), (a) provide the (i) name of the company, (ii) registration number of the specified company and (iii) names of the directors of the specified company who, together with Akani Egoli (Pty) Ltd, appear on the records of the GGB at the public hearings held on 18 November 1997, convened for the purposes of hearing the application for the Gold Reef City Casino licence and (b) confirm whether (i) the names of all the directors of Akani Egoli (Pty) Ltd have been included in his initial reply which was sourced from the NGB, (ii) Mr Reuel Khoza or any of the other directors of Akani Egoli (Pty) Ltd held directorships in both of the joint successful applicants of the Gold Reef City Casino licence, (iii) the original bid application signed off by a certain person (name and details furnished) in June 1997, at the time of the application provided an undertaking that the joint applicants would erect a structure known as Freedom Park, (iv) the joint applicants for the Gold Reef City Casino Licence, following Mr Reuel Khoza's statutory declarations in the Bid Application in June 1997, five months later, at the public hearing on 18 November 1997, presented Freedom Park as their project for the public good and (v) the joint applicants for the Gold Reef City Casino licence at the public hearing on 18 November 1997 introduced a certain French woman (name furnished) who used a slide presentation to present her concept of Freedom Park to the GGB?NW1288E

Reply:

Response

  1. and (2) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

 

03 May 2016 - NW1154

Profile picture: Holomisa, Dr BH

Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)With reference to his replies to questions 616, 723 and 724 on 17 March 2016 (details furnished), can he, after consultation with Ms Astrid Ludin, Mr Rory Voller, Mr Flip Dwinger, Mr Douglas Mokaba, Mr Asogaren Chetty and Ms Lana Van Zyl of the Companies and Intellectual Property Registration Office (CIPRO) and/or the Companies and Intellectual Property Commission (CIPC), (a) confirm that the (i) Registrar of Companies (ROC), as was normal practice in 2001, in compliance with prescribed procedure, transmitted certain information (details furnished) to the SA Revenue Services (SARS) for the collection of taxes on behalf of the State and (ii) application for incorporation of SA Apartheid Museum was by way of a Special Power of Attorney secured through the legal services of certain persons (names and details furnished), (b) he secure from the ROC the mandatory CM5 Name Reservation Form which should, in terms of the information required, inform the general public of, inter alia, the persons who desired one of six names for the incorporation of SA Apartheid Museum, as the information in the specified form will also verify that the applicants, whomsoever they may be, have on a particular date, under the prescribed procedure, paid the mandatory fee in respect of the specified form and (c) provide the entire inception file, including the specified CM5 form that preceded the incorporation of SA Apartheid Museum as per the statutory declarations received from the applicants, whoever they may be, and which thereafter, along with Unique Company Registration Number 2001/019108/08 was transmitted to SARS; (2) can he, in view of the fact that the National Lotteries Board (NLB) and/or National Lotteries Commission (NLC) has not provided any explanation whatsoever for The South African Apartheid Museum at Freedom Park when the questions raised clearly relate to SA Apartheid Museum, and specifically after consultation with Ms Tintswalo Nkuna and Mr Vuyisa Gwam of the Compliance Division of the NLB and/or NLC and Mr Tsietsi Maselwa, attorney for the NLB and/or NLC, (a) confirm having investigated whether the grant-in-aid intended for SA Apartheid Museum and Mr Christopher Till may have been fraudulently diverted to another company for the unlawful benefit of persons within and/or outside of the NLB and/or NLC and (b) indicate, through Chairman Alfred Nevhutanda, Attorney Tsietsi Maselwa and PriceWaterhouseCoopers, (mindful of SCA Case Number 788/10), where the NLB and/or NLC, bound by its own procedural limitations, found legal authorisation to abide by anything other than the statutory declaration submitted by Mr Christopher Till, on behalf of his organisation which he clearly stated is incorporated under the name SA Apartheid Museum; (3) can he (a) after consultation with Profesor Dorcas Jafta, Ms Thoko Mkhwanazi-Xaluva, Nkuna, Ludin, Ms Thabang Mampane, Gwam, Nevhuthanda, Mr Jeffrey Du Preez and Meselwa, confirm that the rules and regulations of the NLB and/or NLC apply to both Black and White applicants seeking funding from the NLB and/or NLC and whether according to the specified organisations Mr Richard Moloko and Mr Reuel Khoza can, under the rules and regulations, lawfully be condoned as independent referees of SA Apartheid Museum, (b) after consultation with the GGB, confirm that in terms of the provisions of the National Gambling Act, Act 7 of 2004, the joint owners of the Gold Reef City Casino license, like other casino licence holders, (i) are entitled to the profits earned from the structure promised in support of the application for the Gold Reef City Casino Licence, (ii) are responsible for the financial costs of erecting and sustaining their income generating structure and (iii) bearing in mind that Gold Reef Resorts Limited is, at the relevant times, the holding company for, among other entities, Gold Reef City Casino, as verified by the 2001-2002 Annual Report of Gold Reef Resorts Limited which confirms that Gold Reef City Casino contracted the Section 21 Company SA Apartheid Museum to manage the edifice they named The Apartheid Museum and given that it has a legal right to generate its own income and (c) can he together with the NGB and GGB confirm that, in terms of the provisions of the National Gambling Act, Act 7 of 2004, both Mr Reuel Khoza and Mr Richard Moloko, were legally required to have known this and ought to never have allowed Mr Christopher Till to submit an application for public funding to the National Lotteries Board; (4) can he, (a) specifically after consultation with Messrs Booysen, Lalumbe and Mafojane please provide the certificate to operate which was issued to Gold Reef City Casino when they initiated SA Apartheid Museum, to operate the edifice which they named The Apartheid Museum and (b) in view of the fact that whenever prima facie evidence of wrongdoing, irregularity and/or unlawful conduct arises and where a criminal investigation may follow, all the natural persons associated herein have legal rights which they may be entitled to exercise, provide the assurance that each and every official mentioned, along with others who may be affected, has been given a full appreciation of all that may affect them in their obligations to abide by the provisions of the law, including their obligations to Parliament; (5) can he, in the light of these follow-up questions, and, after having consulted with officials directly involved in these matters, clearly indicate all parts of his earlier reply which he will want corrected and/or expunged from the specified reply? NW1290E

Reply:

(1) According to the response received from the CIPC:

(a)(i) CIPRO did not have a procedure to transmit information to SARS but CIPC have done that since 2014.

(ii) The Special Power of Attorney and the certification of incorporation are attached for your further perusal.

(b) The CIPC does not have the CM 5 form in its records.

(c) The CM3 and Special Power of Attorney and Certification of Incorporation are attached hereto and marked as “Annex A, B and C respectively.

(2) According to the response received from the NLC:

The NLC can confirm that applications received, processed and adjudicated by the NLC all are from the SA Apartheid Museum.

(a) There has been no investigation by the Compliance Division on the SA Apartheid Museum or on the fraudulent diversion of funds.

(b) Yes, the application received was from the SA Apartheid Museum. All supporting information bears such name.

(3) (a) According to the response received from the NLC, yes.

(b)(i), (ii), (iii) and (c) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(4) (a) and (b) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(5) According to the information received from the CIPC, the CIPC indicated that the CM5 was included in its attachments in the previous response. When responding to the follow-up question and upon request of the CM5, it indicated that it does not have it in its records.

According to the information received from the NLC, there was no correction and/or an indication to expunge the original information provided. However, after receipt of its response and the telephonic conversation requesting further information with regard to question 1153(5)(b)(i), it confirmed that there was no adjudication which took place in 2008 for SA Apartheid Museum.

According to the information received from the NGB, the GGB is an independent entity and it is not in a position to respond on its behalf. It recommends that the Honourable Member source information directly from the Gauteng Gambling Board.

(5) According to the information received from the CIPC, the CIPC indicated that the CM5 was included in its attachments in the previous response. When responding to the follow-up question and upon request of the CM5, it indicated that it does not have it in its records.

According to the information received from the NLC, there was no correction and/or an indication to expunge the original information provided. However, after receipt of its response and the telephonic conversation requesting further information with regard to question 1153(5)(b)(i), it confirmed that there was no adjudication which took place in 2008 for SA Apartheid Museum.

According to the information received from the NGB, the GGB is an independent entity and it is not in a position to respond on its behalf. It recommends that the Honourable Member source information directly from the Gauteng Gambling Board.

28 April 2016 - NW1172

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Trade and Industry

(1)(a) How many new companies have invested in the (i) Vulindlela Heights, (ii) Queenindustria, (iii) Isithebe, (iv) Botshabelo, (v) Babelegi and (vi) Seshego industrial parks since 1 April 2015, (b) how many new jobs were created at each of the specified industrial parks and (c) what incentives have been offered to each (i) municipality and (ii) provincial government in each of the specified industrial parks;

Reply:

1 c) and d) the dti is not providing any incentives specific for the Industrial Parks.

(2) The Industrial Parks are owned and operated by Agencies that fall under the provincial government. These Agencies manage the industrial parks including the collection of revenue, the provision of services and maintenance of the parks. Each Industrial Park has its own management structure. The table below provides details of the respective agencies and the human resources for the management of the Industrial Park. (See Annexure “A”)

Annexure “A”

INDUSTRIAL PARKS MANAGEMENT STRUCTURE

INDUSTRIAL PARK

PROVINCE

Managed By:

Organisational structure

   

Vulindlela Industrial Heights

King Sabata Dalindyebo Municipality

Eastern Cape

Eastern Cape Development Corporation (ECDC)

Head Properties

Administrator

Personal assistant

Senior Manager Facilities

Senior Manager Property Investment and Development

Senior Manager Property Management.

Manger rentals and collections

Queendustria

Chris Hani Development Agency

Eastern Cape

Chris Hani Development Agency

Executive Manager Operations

Project administrator

Chief Investment Officer

Business Development manager

Project Manager

Social Facilitator

Finance and Admin Manger

Isithebe

Ithala Bank

KwaZulu-Natal

Ithala Bank

Ithala CEO

Properties Executive

Divisional Manager -Property Management

Divisional Manager -Facilities Management

Divisional Manager - Asset Management.

Botshabelo

Free State Development Corporation (FDC)

Free State

Free State Development Corporation (FDC)

FDC CEO

Executive Director – Core Operations

Properties and Facilities Manager

District Property Manager

Babelegi

North West Development Agency (NWDA)

North West

North West Development Corporation (NWDC)

Area Manager

Admin Officer

3 X Tenant Coordinators

1x Maintenance Supervisor

2x Handymen

2x Assistant Handymen

2x Gardeners

1x Refreshment officer

Seshego

Limpopo Development maintenance Agency (LEDA)

Limpopo

Limpopo Economic Development Agency

Executive Manager Industrialization

Head: Land &Property Development

Regional Manager

Facilities Manager

Electrician

Leasing Officer

Rental Controller

Office Admin

26 April 2016 - NW1103

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Trade and Industry

(1) What is the total number of (a) domestic and (b) international trips that a certain person took in the 2015-16 financial year; (2) what were the costs incurred in terms of (a) airfare, (b) hotel accommodation, (c) car rental and (d) subsistence in each specified case; (3) (a) what (i) class of travel and (ii) star hotel was used by the specified person in each case, (b) what was the purpose of each specified trip and (c) what was the length of stay in each specified case?NW1235E

Reply:

Official in questiom

1(a)

1(b)

2(a)

2(b)

2(c)

2(d)

Ms Philisiwe Mthethwa

Seven (07)

Three (03)

Domestic:

R52 954.18

International

R99 576.72

Domestic:

R25 544. 13

International:

R89 637.54

Domestic:

R4 772.10

International:

R0.00

Domestic:

R0.00

International:

R49 938.91

(3) (a) what (i) class of travel and (ii) star hotel was used by the specified person in each case, (b) what was the purpose of each specified trip and (c) what was the length of stay in each specified case?NW1235E

Official in questiom

3(a)(i)

3(a)(ii)

3(b)

3(c)

Ms Philisiwe Mthethwa

Business Class

It varies based on affordability and availability at the time

DOMESTIC

  • National Budget Vote
  • Addressing Africa Investor conference on co-investment opportunities in partnership with NEF funded black industrialists.
  • Addressing stakeholders and the media at the launch of the Paardevlei hospital, built by NEF-funded company, BusaMed
  • Attended UCT MCom Development Finance Forum: Presidential Forum on development finance with the theme Empowering Africans: Role of Development Finance
  • Meeting with officials from Department of Rural and Land Reforms;
  • Meeting with officials from Department of Labour
  • Meeting with Hon. Minister Davies, Hon. Deputy Minister Masina, DG October;
  • Attended Parliamentary Briefing on the NEF's 2nd Quarter financial and non-financial report;
  • Stakeholder meeting with MEC for Health in KZN Dr Sibongiseni Dhlomo to discuss assistance by the NEF to black people who are awarded hospital licenses by the department. This was as a result of a worrying trend identified by the NEF whereby the department of Health awards licences to black people who end up selling the licenses to white owned companies because they do not have capital to commercialise such licences.

The outcome of this meeting was that the NEF supported a broad based group in further participating in a commercial hospital enterprise and the parties agreed to do more work on the issue of awarding of licenses.

  • Attended the State of the Nation address and meetings with various stakeholders to discuss NEF projects
  • Attended the National Budget Vote, meeting Minister Gugile Nkwinti to present the NEF’s portfolio of Rural and Community Development projects, requesting intervention of the Department in some of the projects; discuss collaboration between the Department and the NEF Rural and Community Development Fund in the implementation of projects, discuss NEF involvement in Department’s 50/50 project.

The meeting resulted in the NEF and the Department collaborating in supporting rural community development around the country. The NEF also assisted in conducting due diligence investigations and structuring of land acquisition projects by the department

  • Meeting with Minister Mildred Oliphant to discuss the large-scale retrenchments facing the country as a result of prevalent economic conditions: Discuss NEF proposed interventions to reduce the impact of retrenchments and to assist people who will be affected with funding and non-financial support for small business opportunities; Discuss potential involvement of the Department and its agencies (e.g. the UIF in supporting such SME’s)

The meeting resulted in further engagements between NEF, the Department and UIF for the benefit of unemployed and retrenched people in the country.

  • Attended Parliamentary Briefing on the NEF's 3rd quarter financial and non-financial report.

INTERNATIONAL

  • At the invitation of the South African Government participated in the Outward Mission and business forum “Invest in Senegal” in June 2015, where the CEO delivered presentations to highlight some of South Africa’s milestones for industrial, infrastructure and manufacturing projects.
  • The Senegalese Government hosted the business forum as part of efforts to strengthen bilateral economic relations and to promote Intra-African trade and economic integration between the two countries. The forum also provided a platform for the presentation of flagship projects that are aimed at attracting South African investors and SADC countries into the Senegalese market, which could potentially present prospects for export-oriented NEF investees. The CEO of the NEF was also invited specifically because of her proficiency in the French language. The conference was attended by several Senegalese Cabinet Ministers and well over 250 participants comprising Senegalese entrepreneurs

3) (b) (ii) Deauville, France

  • Following the request by the organisers of the Women’s Forum Global Meeting 2015, which took place in October 2015 in Deauville, France, Ms Mthethwa successfully mobilized the participation of women leaders from across South Africa's private sector in order to chart a path for global inclusive growth and for building the future with women’s vision, together with counterparts from different parts of the world. Ms Mthethwa subsequently led a team of South African businesswomen to the conference, which brings together leaders from all over the world from business, government, academia and from across civil society in order to mainstream gender across all spheres of human endeavour, and to propel women’s participation in the business world.
  • While in Deauville the CEO addressed, as a key note speaker, a business luncheon hosted by the South African Ambassador to France on the sidelines of the conference targeting key economic players from different sectors among the participating countries and companies for the purpose of mobilizing potential partners for the NEF’s black industrialist projects and for South Africa’s broader national economic interests.
  • Following engagements with the leadership of the organizing body, the CEO succeeded in securing agreement for South Africa to host a conference for one of the annual meetings of the WOMEN’S FORUM in 2017, a milestone which is expected to have important multiplier benefits for the domestic economy.

3) (b) (iii) Paris, France

  • The CEO met with officials of Areva in order to resuscitate the Junior Manager Development Programme (JMDP). In partnership with the Chamber of Commerce and Industry of Paris (CCIP) and Agence Française de Développement (AFD), the NEF ensured successful implementation of the Programme between 2010 and 2011, which saw 96 South African Junior Managers from different sectors of the economy, completing six-week experiential training with leading companies in France.
  • This began with a 2-week training seminar at a CCIP associated business school in Paris. The aim was to reinforce managerial skills, negotiation strategy, team building, and dynamics, as well as to facilitate the managers’ integration into their host companies by providing them with tools to understand the French and European business and cultural context. This was then followed up by a 4-week internship at French host companies, which were identified specific to the sector from which the participant had been selected in South Africa.

The sectors prioritized for skills development were government, energy, infrastructure, finance, information and communication technology, Business Process Outsourcing (BPO), aerospace and agro processing. Following this important milestone, the NEF is keen to reintroduce the programme and the discussions with Areva were for that purpose.

3) (b) (iv) ) Paris, France

  • The CEO’s engagement in France was also with Axonia Partners, the number 1 adviser worldwide in terms of the number of African private equity funds raised. They also advise top General Partners from the US and Europe in their fundraising endeavours, and the engagement with Axonia was in pursuit of the mobilization of investments to commercialise the NEF’s portfolio of strategic industrial projects valued at R27 billion with an employment-creation potential of 80 000 jobs.

14 Business days

10 Business days

26 April 2016 - NW1084

Profile picture: Shivambu, Mr F

Shivambu, Mr F to ask the Minister of Trade and Industry

Has any of his senior officials met with certain persons during the period 1 January 2009 up to 31 December 2015, (b) have Sahara Holdings, Comair, Oakbay Investments, Islandsite Investments, Afripalm Horizons Stakes, The New Age Media, JIC Mining Services and Vusizwe Media participated in any of his department’s investment schemes and (c) has any of the entities reporting to him awarded any contracts to the specified companies in the specified period; if so, what (i) are the relevant details and (ii) is the amount of each specified contract?

Reply:

Some officials have on occasion participated in meetings where the highlighted individuals have been present, including business related events, conferences and business delgations. For example, during a State Visit to India, officials met with Mr Ajay Gupta as part of the engagement with business. On another occasion, officials engaged with Messrs Ajay and Atul Gupta during the BRICS Summit in March 2013. On a different occasion, an offical interacted with Mr Atul Gupta at an ICT Steering Committee tasked to deal with the ICT Policy review under the Department of Communications and Postal Services. All of these interactions were conducted as part of the dti’s stakeholder engagement process on core area work.

the dti Marketing team have interacted with The New Age (TNA) officials for media buying purposes like any other print media house.

The advertising team procured advertising space based on advertising plans for various campaigns.

The companies cited above have not participated in any of the dti investment schemes.

Response from the Entities

No Entities apart from the NEF have interacted with the Guptas, as Ms Philisiwe Mthethwa served on the Board of Afripalm Resources with Mr Atul Gupta and resigned from this board in 2010.

20 April 2016 - NW1125

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Trade and Industry

Whether he can provide an update with regard to the letter that he addressed to Mr R W T Chance, dated 15 October 2015, indicating that an investigation into allegations of corruption in the Cooperative Incentive Scheme was ongoing, and when completed relevant information would be shared with Parliament?

Reply:

The dti Internal Audit unit conducted an investigation and did not obtain evidence to support the allegations of corruption in the Cooperative Incentive Scheme. The letter with relevant information was sent to Mr Chance on the 16th January 2016.

18 April 2016 - NW962

Profile picture: Whitfield, Mr AG

Whitfield, Mr AG to ask the Minister of Trade and Industry

(1)(a) How many companies have invested in the Coega Industrial Development Zone (Coega IDZ) in Port Elizabeth in each year since its opening, (b) how many persons are employed by each of the specified companies, (c) what is the value of each investment and (d) what are the details of the incentives offered to each company; (2) how many (a) direct and (b) indirect jobs were created at the Coega IDZ (i) in the (aa) 2011-12, (bb) 2012-13, (cc) 2013-14, (dd) 2014-15 and (ee) 2015-16 financial years and (ii) since 1 April 2016?NW1091E

Reply:

(1)(a) Although the Coega IDZ was designated in 2002, it only began receiving investments in 2006. This was largely due to the fact that it took longer to set up the IDZ and also that some of the earmarked investments never materialised. Accordingly, the number of companies that have invested in the Coega IDZ in each year since its opening is as follows:

Year

Number of investors

2006

2

2007

1

2008

4

2009

2

2010

6

2011

1 plus 1 expansion

2012

3

2013

5 plus 1 expansion

2014

4

2015

4

TOTAL

33

(1)(b) Number of persons employed by each company:

The Coega IDZ has a total of 33 operational investments resulting in a total of 7 174 direct jobs in the zone. The average number of direct jobs per investment stands at 224,2 jobs per investment project. The lowest number of jobs in a single investment project is 9; while the largest number of jobs created in a single investment project is 1 783. (See Annexure “A” for ease of reference)

(1)(c) Value of investments

The Coega IDZ has a total of 33 operational investments resulting in a total investment value of over R6,4 billion. The biggest single investment in the zone is R3, 5 billion, while the smallest single investment is R5 million. The average value of investment per investment project currently stands at R183, 5 million.

(1)(d) Details of incentives offered to each company

According to our records, only 12 companies in the Coega IDZ received incentives from the dti and the details are as follows: (See Annexure A)

Company

MCEP

EIP

BPS

AIS

Agni Steels

 

R9, 473, 700.00

   

FAW

     

R 54,663,648.00

DCD WindTowers

 

R6, 442, 354.00

   

Coega Dairy

 

R13,784,340.00

   

Cape Concentrates

 

R6, 322, 266.00

   

Grupo Antolin

 

R7, 638, 991.00

   

Famous Brands

R1, 078, 256.00

     

WNS

   

R 87,293,326.00

 

Faurecia

 

R11,757,623.00

 

R 7, 971, 800.00

Rehau

     

R 49,883,773.00

Benteler

     

R17,715, 213.00

Inergy

     

R1, 771, 259.00

Q-Plus

     

R1, 181, 605.00

(2)(a) Number of direct jobs created at Coega IDZ during (aa) 2011-12, (bb) 2012-13, (cc) 2013-14, (dd) 2014-15 and (ee) 2015-16 financial years and (ii) since 1 April 2016 is as follows:

Year

Number of Direct Jobs

2011

1 138

2012

510

2013

1 154

2014

667

2015

152

TOTAL

3 621

(2)(b) Number of indirect jobs created at Coega IDZ during (aa) 2011-12, (bb) 2012-13, (cc) 2013-14, (dd) 2014-15 and (ee) 2015-16 financial years and (ii) since 1 April 2016?

The number of indirect jobs created through the Coega IDZ investments since 2011 is not available, as the department still has to commission an impact study of the SEZ Programme since 2011.

15 April 2016 - NW961

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Whitfield, Mr AG to ask the Minister of Trade and Industry

Whether his department (a) has provided or (b) has plans in place to provide any support to the canola oil production project in Alexandria in the Eastern Cape; if not, why not; if so, what are the relevant details in each case?

Reply:

The department received an application that was assessed by the Agro Processing sector desk for the establishment of Canola Oil value chain in the Eastern Cape. The project did not meet the criteria for any incentive programme, therefore it was not considered.

12 April 2016 - NW953

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Grootboom, Mr GA to ask the Minister of Trade and Industry

Has (a) he and/or (b) his Deputy Minister ever (i) met with any (aa) member, (bb) employee and/or (cc) close associate of the Gupta family and/or (ii) attended any meeting with the specified persons (aa) at the Gupta’s Saxonwold Estate in Johannesburg or (bb) anywhere else since taking office; if not, what is the position in this regard; if so, in each specified case, (aaa) what are the names of the persons who were present at each meeting, (bbb)(aaaa) when and (bbbb) where did each such meeting take place and (ccc) what was the purpose of each specified meeting?

Reply:

Yes. By way of example, the Minister’s office in the last month received on average, 10 invitations and requests per day from a wide range of stakeholders. Some of these requests are for meetings to be held in the office, invitations to events at embassies, networking sessions organised by Chambers of Commerce, numerous speaking engagements and so forth. Stakeholders include owners of large businesses, Chief Executive Officers of multi-national corporations, Ministers, Ambassadors, labour formations and so on. In other words, the dti mandate dictates that the Minister of Trade and Industry interacts with a wide spectrum of prominent stakeholders who believe their businesses may benefit from the dti’s offerings and he does so, in a variety of settings.

In this light and in common with a number of politicians across the political divide, including the Premier of the Western Cape, Ms H Zille, the Minister responded positively to some invitations from the Gupta family, to attend various events.

On the few occasions that any conversations took place between the Minister and representatives of the family, the content was general and no specific projects were discussed. This is in line with the standard practice Minister adopts with stakeholders where any specific requests for incentives are referred to relevant decision-making structures for approval or rejection. The Ministry would then only consider intervening for the sake of efficiencies if there appear to be purely bureaucratic delays in bringing a process to its conclusion.

To the knowledge of the Ministry, approximately 6 years ago one meeting at the request of the Gupta family was held at the dti offices in Hatfield, Sunnyside attended by the Minister, dti officials and a Mr Gupta to discuss the company’s investment plans. The nature of the meeting was similar to innumerable meetings the Minister has held with potential investors, both foreign and domestic. In the event, no follow-up meetings were requested or held.

The Minister also accepted an invitation to attend the wedding of a Gupta family member as it potentially presented an unexpected but welcome opportunity to informally meet with his then Indian counter-part. Regrettably, the Minister did not in fact attend.

12 April 2016 - NW911

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Shivambu, Mr F to ask the Minister of Trade and Industry

Has he earned any additional income from businesses, in particular businesses doing work for the Government, since his appointment as Minister; if so, (a) when, (b) how much did he earn, (c) from which businesses and (d) for what work; (2) whether his (a) spouse, (b) children and (c) close family earned income from businesses, in particular businesses doing work for the Government, through his appointment as Minister; if so, in respect of each case, (i) when, (ii) how much did each earn, (iii) from which businesses and (iv) for what work? NW1037E

Reply:

In terms of the rules applicable to Members of the Executive and Members of Parliament, Ministers have to disclose their Financial and/or business interests to both Parliament and the Presidency in compliance with the applicable ethics code. All financial interests of the member and family are disclosed annually. The Minister has always complied with these requirements.

Minister Davies has no interests in any businesses and none of the members of his family has had any business dealings with Government. The Minister is a Director of the Institute of African Alternatives, a non-profit organisation, for which he receives no remuneration.

 

29 March 2016 - NW763

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

Whether, with reference to the prevailing drought in the country and the sugar industry’s own forecasts of a significant shortage in local production of sugar for 2016 and 2017, he is considering a temporary removal of duties on imported sugar to assist consumers and alleviate food price inflation; if not, why not; if so, what is the progress in this regard?

Reply:

The sugar industry has assured us that they have produced sufficent sugar to supply the domestic market in 2015/16 year despite the severe drought in several sugar growing regions. Thus sufficient raw sugar is in stock at the sugar terminals with a small surplus for export. However, due to the unexpectedly high demand for refined sugar especially by the soft drinks manufacturers – due to hot summer period, the industry experienced low stocks of some grades of refined sugar. At the beginning of March 2016 the sugar industry met to implement a strategy to restore supply of refined sugar into the domestic market. This resulted in the two biggest refineries namely Noodsberg and Hullets opening up early for refining purposes as the industry is currently off season, in addition to working over the the public holiday period in March. The rest of the refineries will open in April as the new sugar season starts on 1st April 2016.

The figures received from the sugar industry regarding 2016/17 production estimates, current available supply and carry over stock into the new season from the 2015/16 crop, indicate sufficent supply into the local market going forward. Noting that the supply to the local market consists of SA production,SACU production (Swaziland), SADC quota and duty paid imports as well as imports from the rest of the world, we are confident that supply will be sufficient to meet local demand. In the event of a supply shortage, the department will engage with the industry and International Trade Administration Commission (ITAC) to initiate a rebate facility to counter the effects of the duty on imports, subject to statutory requirement of the process.

There is currently no consideration to remove the current duty as it was arrived at through a review process undertaken by ITAC within the provisions of the ITAC Act and because supply has been stabilised. Any stakeholder can apply for either a rebate facility or reduction in the duty directly with ITAC at any point should they deem this necessary.

29 March 2016 - NW761

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Macpherson, Mr DW to ask the Minister of Trade and Industry

With reference to his undertaking in June 2015 to engage with the National Treasury to extend his department’s Manufacturing Competitiveness Enhancement Programme beyond its current 2017-18 deadline, (a) what progress has been made to date with the engagement with the National Treasury, (b) what are the details of the proposed extension of the specified programme, (c) what is the value of the proposed extension of the specified programme and (d) when will he make an announcement in this regard?

Reply:

The department continues to engage National Treasury on the Manufacturing Competitiveness Enhancement Programme (MCEP) with the purpose of extending it beyond 2017-18 and securing additional funds. The outcome of the negotiations with National Treasury will be communicated through the government budget process.

29 March 2016 - NW735

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Carter, Ms D to ask the Minister of Trade and Industry

Whether Government, in line with its policy to increase beneficiation of minerals, has succeeded in encouraging entrepreneurs to utilise South African steel which is struggling to find ready markets to produce (a) automotive parts, such as chassis, for export around the world, (b) high quality cutlery, (c) pots and pans, (d) wire fencing, (e) hulls for boats and ships; if not, why not; if so, how is South African produced steel being used in component and product manufacture for domestic consumption and for export as well?

Reply:

South Africa’s industrial policy has sought to strengthen the downstream more labour-intensive segments of manufacturing while ensuring that the competitive advantage enjoyed by upstream capital- and energy- intensive and export-oriented industries is retained and enhanced. In the steel value chain, to promote beneficiation, cost competitiveness and viability of SA’s steel industry, government has had protracted engagements with the dominant player since 2004 to give effect to the national developmental obligations - to ensure a competitive steel pricing regime to support the development and deepening of value-added manufactured products in downstream industries.

It must be noted that the dominant player’s practice of import parity pricing coupled with underinvestment, inefficiencies and resulting plant failures contributed to a significant decline in the competitiveness of steel produced in SA that has led to a trend in which downstream users have adapted to the requirements of importing steel including being accustomed to foreign supply chains, lower prices and in some cases the need for speciality steel qualities and grades.

How is South African produced steel being used in component and product manufacture for domestic consumption and for export:

Approximately 70% of SA produced steel is sold locally for use in downstream fabrication, component and product manufacturing with the remaining being exported into the region. Key demand sectors include construction, mining and packaging. SA has the capacity to produce 9 million tons of steel per annum and local steel consumption is currently at 5 million tons per annum (imports account for about 20% of SA consumption).

Localisation of steel in the following sectors/sub sectors is as follows (a) in the automotive sector a number of the specific automotive steel grades are not produced locally (b) cooking ware and (c) cutlery are the main drivers of the stainless steel consumption in the consumer goods sub-sector. However, the competitiveness of the local producers has been eroded by rising imports, especially from the East. SA’s apparent stainless steel consumption was estimated at 166 600 tons in 2015. During this period, cookware and cutlery exports reached approximately 6000 and 800 tons, respectively. Government together with the industry association, Southern African Stainless Steel Development Association (SASSDA) as well as Columbus Stainless continue to engage to develop sustainable solutions for the local industry (d) wire and wire products have experienced a 13% increase in imports in 2015 compared to the previous year and the South African Wire Association (SAWA) are in the process of re-applying for import duties for certain wire products. Exports of wire and wire products declined for the same period (e) the boatbuilding sub-sector specialises in the manufacture of multihull catamarans and is the world’s second largest producer of vessels in this category (after France) acknowledged for excellence. The sub-sector currently exports approximately 77% of its production. The construction of hulls and ships also requires specialised grades of steel which cannot be sourced locally.

To address the extremely adverse steel conditions characterised by oversupply, depressed demand and increasing imports government has taken a number of steps to develop an integrated set of measures - both supply-side policy support and industry reform measures - that would have to be adopted to achieve the objective of a sustainable steel industry in SA. These measures include (1) tariff protection subject to independent assessment by the International Trade and Administration Commission (2) support for the localisation of steel in state procurement and government infrastructures spend subject to cost competitiveness and affordability and (3) steel pricing principles. Industry reform measures include commitments to capital investment in product lines for key sectors of the economy and a maintenance plan in line with world best practices.

Taking into account the steel crisis and very serious threat to the SA industry, government is working closely with all stakeholders to secure and upgrade existing domestic steel production capacity; protect downstream steel intensive manufacturers and retain employment in order not to lose SA’s strategic steel capacity and capabilities.

29 March 2016 - NW762

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Macpherson, Mr DW to ask the Minister of Trade and Industry

With reference to his reply to question 527 on 10 March 2016, (a) which class of travel did Ms Philisiwe Mthethwa use to travel to Cape Town for the specified event and (b) which key stakeholders did she meet with on the side-lines of the specified event for the benefit of the implementation of the mandate of the National Empowerment Fund?

Reply:

Ms Philisiwe Mthethwa attended the budget vote on 24 February 2016, at the invitation of the National Treasury.

The total cost of her attendance to the event was R7 419.44 which was for her Business Class return flight. The NEF did not incur any car rental or accommodation costs for this trip as the CEO stayed at the official residence of her husband and did not hire a car at the NEF’s expense.

It should be noted that the CEO combined her attendance of this event with other meetings that relate to her role, including meetings with the Minister of Rural Development and Land Reform, the Hon. Mr Gugile Nkwinti (MP), the Minister of Labour, the Hon. Ms Mildred Oliphant (MP), as well as representatives of a rural community who have approached the NEF for development funding.

In her capacity as the CEO, Ms Mthethwa always looks for opportunities where she can efficiently and effectively engage with NEF stakeholders. The stature of the budget speech event is such that it brings various strategic stakeholders together in a central place. She therefore used the opportunity to engage with key stakeholders on the sides of the event, for the benefit of the implementation of the mandate of the NEF.

17 March 2016 - NW723

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Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)Whether, with reference to the activities of the original owners of the Gold Reef City Casino Gambling Licence and the Gauteng Gambling Board (GGB), the Registrar of Companies and the National Lotteries Commission, NLC, formerly known as National Lotteries Board, NLB, a certain person (name furnished), submitted all the documents, including the certificate of incorporation of the SA Apartheid Museum, in terms of the statutory requirements of the National Lotteries Board, if not, why not; if so, who were the directors of the SA Apartheid Museum, inspected and passed by the National Lotteries Board; (2) does Parliament have a copy of the entire incorporation file of the SA Apartheid Museum including the obligatory CM5, Name Reservation Form, with regard to The Registrar of Companies mentioned in the opening paragraph; (3) (a) whether, with regard to the Gauteng Gambling Board, (GGB) the principal financiers behind the Gold Reef City casino licence project were the twin brothers (names furnished) and (b) whether the specified persons also funded the Youth Investment Network company belonging to a certain person (name furnished); (4) whether the specified owner of the company was an employee of the GGB before and/or during the period that, through the Youth Investment Network, he was a person with financial interest in the application for the Gold Reef City casino licence; if so, what position did the specified person hold at the GGB and the relevant dates of his employment with reference to the applicable GGB human resources policy at the time and in respect of issues related to conflict of interest?

Reply:

1. According to the information received from the NLC, the SA Apartheid Museum, in support of its applications supplied all the required information viz.:

i. Prescribed application form, duly completed.

ii. Project plan and motivation for said project.

iii. Project budget.

iv. Notice of registered office to show registration number.

v. Articles of Association of a Company not having a share capital.

vi. Memorandum of Association of a company not having share capital.

vii. Annual financial statements for three consecutive years.

According to the information received from the NLC, the signatories to the Articles of Association were:

i. Kim Feinberg

ii. Steven Joffe

iii. Christopher Kroese

iv. Solomon Krok

v. Christopher Martin Till

vi. Richard Thabo Moloko

vii. Lesego Wa Lesego

viii. Sidney Abromowitch

2. Yes, please see “Annex A” attached hereto. “Annex B” contains further information regarding changes of directors at SA Apartheid Museum. This information was provided for by the Companies and Intellectual Property Commission (CIPC).

3. (a) According to the information received from the NGB, the casino was funded 60% debt (R497.4m) and 40% equity (R344.9m). Equity contribution was as follows:

i) Akani Leisure R172.45m

ii) M Krok R73.29m

iii) MZ Krok R73.29m

iv)Promoters R25.87m

According to the information received from the NLC, the shareholders of Akani Leisure were as follows:

  • Co-ordinated Network Investments
  • Siphumelele Investments
  • Black Management Forum Invetment
  • Youth Investments Network
  • G7 Investments Holdings
  • Xau Women’s Investment
  • Prime Portfolio Investments A

The shareholders of the promoters were as follows:

  • The Kroks (Maxim and Martin Zane Krok who are the sons of Solly and Abe Krok)
  • Casinos GmbH
  • Murray & Roberts Construction
  • Innovative Resort
  • First Corp Merchant Bank
  • Co-ordinated Network Investments

(b) Youth Investment Network was established and financially assited by Akani Leisure and the Promoters to create an opportunity for the youth to participate in casino licence applications throughout the country. Once it was established, it was offered a shareholding in Akani Leisure.

The shareholders of Akani Leisure were as follows:

  • Co-ordinated Network Investments
  • Siphumelele Investments
  • Black Management Forum Invetment
  • Youth Investments Network
  • G7 Investments Holdings
  • Xau Women’s Investment
  • Prime Portfolio Investments A

According to the response received from the NGB, none of the members of the Youth Investment Network were employees of the Gauteng Gambling Board.

17 March 2016 - NW724

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Holomisa, Dr BH to ask the Minister of Trade and Industry

(1)Whether , with reference to the activities of the original owners of the Gold Reef City Casino Gambling Licence and the Gauteng Gambling Board (GGB), the Registrar of Companies and the National Lotteries Commission, NLC, formerly known as National Lotteries Board, NLB, whether a certain person (name furnished), a founding director of a certain company (name furnished), served for a period as Chief Executive Officer of the aforementioned board; if so, (a) what was the period of the employment of the specified person as CEO of the specified board, (b) what circumstances gave rise to such a situation, (c) according to what statutory of legal authority was an external contractor appointed to serve in the position of CEO of a government institution and (e) was the appointment of the specified person not a breach of the specified board’s policy concerning the conflict of interests; (2) who were the other natural persons and/or juristic persons with a financial stake in certain companies (names furnished) at the time of the grant of R1.5 million; (3) whether a certain company (names furnished), in any manner, influenced the adjudication of the application for funding submitted by a certain person (name furnished) on behalf of a certain museum (name furnished); (4) can the recordings of a certain trust fund (name furnished) be made available when they adjudicated the application for a grant-in-aid submitted by the specified person?NW844E

Reply:

1. (a) According to the response received from the NGB, Mr Biyela was never an employee of the Gauteng Gambling Board.

(b) According to the response received from the NGB, Mr Mokhobo served as an Acting Chief Executive Officer of the GGB.

(c) According to the response received from the NGB, Mr Mokhobo served as an Acting Chief Executive Officer of the GGB from 01 January 1998 to 14 April 1998.

(d) According to the response received from the NGB, the position was vacant since the then Chief Executive Officer had resigned in December 1997.

(e) At the time the Board had appointed Gobodo Incorporated to assist it with the probity investigations relating to the casino licence applications in terms of section 15 of the Gauteng Gambling Board Act, Mr Mokhobo was responsible for the Gobodo investigating team. Mr Mokhobo was appointed as the Acting Chief Executive Officer whilst the recruitment process was underway. A permanent Chief Executive Officer was then appointed effective from 15 April 1998.The appointment of Mr Mokhobo did not breach any of the board’s policy concerning the conflict of interest since Gobodo was not an applicant to the Board nor licencee; and was already performing duties on behalf of the Board.

2. According to the response received from the NLC, the NLC does not know who the financial stakeholders of the applicants are as this information is not required.

3. According to the response received from the NLC, the response is no.

4. According to the response received from the NLC, the response is no. Recordings are only kept for a period of five years. The adjudication of the application was in 2008, and therefore records are not available.

17 March 2016 - NW616

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Holomisa, Dr BH to ask the Minister of Trade and Industry

(1) With reference to the activities of the original owners of the Gold Reef City Casino Gambling Licence and the Gauteng Gambling Board (GGB), the Registrar of Companies and the National Lotteries Commission, NLC, formerly known as National Lotteries Board, NLB, (a) to which legal entity or entities was the Gold Reef City casino licence awarded, (b) what were the names of the directors of the entity or entities to whom the Gold Reef City casino licence was awarded on or about 22 April 1998; (2) whether the structure known as The Apartheid Museum was completed by Gold Reef City Casino, complying with the undertakings given to the Gauteng Gambling Board at the time of the application for a licence; (3) whether an application for a grant-in-aid from the SA Apartheid Museum, Registration Number 2001/019108/08, and signed off by a certain person (name furnished) was received by the National Lotteries Board in November 2004; if so, (4) who were the referees the specified person listed in the statutory declaration on behalf of the SA Apartheid Museum; (5) was a grant-in-aid amounting to R1, 58 million approved and paid to SA Apartheid Museum, Registration Number 2001/019108/08 by the National Lottery Board with regard to the above mentioned application?NW728E

Reply:

  1. (a) According to the response received from the NGB, the licence was awarded jointly to Akani Egoli (Pty) Ltd (licence holder) formerly a dormant company known as Tacasa Investment (Pty) Ltd and Casino Austria International Holding GmbH (casino operator / management).

(b) According to the response received from the NGB, the directors were as follows:

  • Krok Martin Zane
  • Krok Maxim
  • Matthews Kgomotso Regina
  • Thlabi Brynner Brian
  • Schutte Barend Jacobus
  • Hautmann Jurgen
  • Farrow John Robert Henry
  • Mzizi Daniel
  • Moloko Richard Thabo
  • Williams Robert John
  • Ndlovu Maduke Lot
  • Khoza Ruel Jethro

2. According to the response received from the NGB, the answer is in the affirmative.

3. According to the response received from the National Lotteries Board (NLB) and now the National Lotteries Commission (NLC), on 3 November 2004, an application signed by one Mr. C M Till was received.

4. According to the response received from the NLC, the referees cited on the application were:

i. Mr George Bizos

ii. Mr Richard Moloko; and

iii. Mr Reuel Khoza

5. According to the response received from the NLC, the grant of R1 585 000.00 was awarded and paid in three tranches between April 2008 and August 2014 to SA Apartheid Museum with Registration Number 2001/019108/08 by the National Lotteries Board.

10 March 2016 - NW527

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Macpherson, Mr DW to ask the Minister of Trade and Indusrty

(1) (a) Which (i) officials from his department and (ii) Chief Executive Officers, (iii) Chairpersons and (iv) Board members of agencies reporting to him attended the Budget delivered on 24 February 2016, (b) what was the cost for each of the specified individuals to attend the event, (c) what class of travel did each of the specified individuals use to attend the event and (d) (i) what accommodation costs were incurred and (ii) where did the specified individuals stay; (2) what benefit was derived from each of the specified individuals attendance at the budget speech event as opposed to simply watching it on the television? NW633E

Reply:

(1) (a) (i) (b) (c) (d) (i) (ii) and (2)

Only the Director General attended the budget speech on 24 February 2016. He was in Cape Town at the time of the event attending other Parliamentary meetings and therefore the department did not incur any additional cost in this regard.

Entities Response

1. (a) (ii) (iii) (iv) (c) (d) (i) (ii)

The CEO of the NEF attended the budget speech on 24 February 2016 at a total cost of R7419.44 which relates to her travel. No costs were incurred for car rental and accommodation. No other entity attended the budget speech.

2. In her capacity as the CEO, Ms Mthethwa always looks for opportunities where she can efficiently and effectively engage with NEF stakeholders. The stature of the budget speech event is such that it brings various strategic stakeholders together in a central place. She therefore used the opportunity to engage with key stakeholders on the sides of the event, for the benefit of the implementation of the mandate of the NEF.

10 March 2016 - NW598

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Mulder, Dr PW to ask the Minister of Trade and Industry

(1)What were the total gold exports in (a) metric tons, (b) rand value and (c) dollar value in (i) 2011, (ii) 2012, (iii) 2013, (iv) 2014 and (v) 2015; (2) what were the causes of the (a) decrease an/or (b) increase in gold exports in each specified year; (3) (a) which five countries were the greatest importers of South African gold in each specified year and (b) what was the value of the gold exports to each of the top five importers of South African gold in (i) (aa) metric tons, (bb) rand value and (cc) dollar value and (ii) in each specified year; (4) (a) whether South Africa has shown a positive or negative nett export of gold in each specified year and (b) what was the major reason for the positive or negative nett export value?NW709E

Reply:

Information on exports of gold is classified and, as such is not reported on in terms of the South African Revenue Services (SARS) values and quantities, consequently it is also not reflected in the dti trade database. The South African Reserve Bank (SARB) though does track information on gold, however it only measures change in ownership and not the physical movement of goods across borders, as general SARS reporting does. We have requested data from these authorities responsible for the management of data on exports of gold, namely, the South African Revenue Services, as well as the South African Reserve Bank in order to compile a response to these questions. We request two weeks extension for submission of response to these questions.

02 March 2016 - NW453

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Alberts, Mr ADW to ask the Minister of Trade and Industry

(1) Whether the SA National Standards (SANS) 1795: Road Traffic Law Enforcement Systems, Part 5: Data Capturing Equipment and Capturing Equipment for Road Traffic Law Enforcement or any other SANS has, in terms of the Legal Metrology Act, Act 9 of 2014, and its preceding Act, been declared a legal metrology regulation that is valid and applicable to the Gauteng e-tolling instruments; if not, why not; if so, (a) when, (b) what is the legal position of such SANS declaration(s) and (c) what are the further relevant particulars; (2) Whether the SA Bureau of Standards or any other standards organisation has declared SANS 1795, Part 5, or any other SANS to be valid for and applicable to the Gauteng e-tolling instruments; if not, why not; if so, (a) when, (b) what is the legal position of such SANS declaration(s) and (c) what are the further relevant particulars?

Reply:

1. No SANS for e-tolling has been declared a legal metrology regulation. SANS1795-5 specifies mechanical, electrical and operational requirements for data capturing and recording equipment that is intended for road traffic law enforcement and prosecution purposes. The scope of SANS1795-5 does not include legal metrology requirements. In addition, SANS1795-5 is required to be read in conjunction with SANS1795-0. The scope of SANS1795-0 also refers to mechanical, electrical and operational requirements for speed measuring equipment and associated speed measuring systems that are intended for traffic law enforcement and prosecution purposes. Therefore in the opinion of the dti neither SANS 1795 5 or 0 is not valid and applicable to the Gauteng e-tolling instruments.

Legally, the declaration of the SANS is guided by the requirements set in Section 22 (2) c of the Legal Metrology Act until such time regulations are developed.

2. SANS 1795-5 has not been declared applicable for e-tolling instruments. SANS is referenced in the Road Traffic Safety Act which the National Department of Transport (NDoT) is the custodian of. Therefore the regulatory authority responsible for legally declaring SANS 1795-5 mandatory or compulsory including its enforcement would be NDoT.

25 February 2016 - NW288

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Alberts, Mr ADW to ask the Minister of Trade and Industry

(1)How many (a) imports and (b) exports did South Africa have during the period 1 January 2015 and 31 January 2016 in each month;

Reply:

The trade statistics between South Africa and the world per month for the period 1 January 2015 and 31 December 2015 are reflected in the table below as reflected on the dti trade statistics. Trade statistics for Jan 2016 will only be available at the end of February 2016.

Period

RSA Exports To the World

RSA Imports From the World

Trade Balance

15-Jan

R 67 711 278 171.00

R 91 246 139 654.00

R -23 534 861 483.00

15-Feb

R 77 501 216 358.00

R 85 347 719 814.00

R -7 846 503 456.00

15-Mar

R 92 468 791 675.00

R 90 845 067 889.00

R 1 623 723 786.00

15-Apr

R 83 770 337 974.00

R 86 234 008 823.00

R -2 463 670 849.00

15-May

R 88 363 040 731.00

R 83 871 362 021.00

R 4 491 678 710.00

15-Jun

R 89 929 880 048.00

R 84 469 615 781.00

R 5 460 264 267.00

15-Jul

R 93 022 192 254.00

R 94 161 166 050.00

R -1 138 973 796.00

15-Aug

R 87 255 431 865.00

R 97 551 304 536.00

R -10 295 872 671.00

15-Sep

R 91 389 099 696.00

R 93 130 209 473.00

R -1 741 109 777.00

15-Oct

R 85 298 508 022.00

R 107 390 729 251.00

R -22 092 221 229.00

15-Nov

R 93 572 841 546.00

R 92 889 891 297.00

R 682 950 249.00

15-Dec

R 88 770 527 510.00

R 80 549 461 697.00

R 8 221 065 813.00

(2) how much direct foreign (a) investment and (b) disinvestment did South Africa have during the period 1 January 2015 and 31 January 2016 in each month? NW296E

Response:

(2) (a) The recording of direct investment on the financial account is the function of the South Africa Reserve Bank. The Reserve Bank publishes such via a quarterly bulletin. The latest report covering the period up to December 2015 will only be available by the Reserve Bank in the fourth quarter bulletin later this month (March 2016).

the dti investment unit develops a pipeline of potential investment projects and for Q3 of the financial year 2015/16 recorded an investment pipeline of R 63.7 bn. This includes commitments by Chinese President Xi Jinping during the State Visit in December 2015 to invest in infrastructure and a green fields automotive plant of $ 800 million. The pipeline includes committed investments and launches by Unilever, Hunting, AVK Valves amongst others.

It should be noted that Multinationals operating in South Africa generally fund their new investments and expansions from the balance sheet of their local operations and utilize local banks to raise loans rather than receive funding from their foreign headquarters.

(b) The department does not record disinvestments. Disinvestment occurs as a result of a number of factors including reactions to prevailing global and local conditions and environment and also changes in business focus. For example in the Apartheid era there was a deliberate policy by international companies to disinvest from South Africa. However there are international companies that have invested and failed and therefore closed shop eg. Evraz has put Highveld Steel into business rescue because of the depressed steel demand and low prices of steel. This is not a disinvestment but a commercial decision driven by market conditions.

25 February 2016 - NW260

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Shivambu, Mr F to ask the Minister of Trade and Industry

Whether he and/or his department has bought advertising space in The New Age in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years; if so, (i) what number of times and (ii) for what amount in each specified financial year?

Reply:

(a) (b) (c) (i) (ii)

Advertising space was procured in most newspapers, including The New Age. This was to promote and advertise the various initiatives, services and products of the dti. Examples of these amongst others were the National Pavilions, SA Premier Business Awards, BRICS and various incentive programmes.

Financial Year

Number

Amount

2012 - 2013

15

R1,009,737.90

2013 – 2014

4

R387,793.80

2014 – 2015

11

R463,705.60

 

24 February 2016 - NW349

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Macpherson, Mr DW to ask the Minister of Trade and Industry

Whether any regulatory impact assessments have been done for the black industrialists programme; if not, why not; if so, (a) what are the relevant details an (b) how many jobs will be created once the 100 black industrialists in the programme have been appointed?

Reply:

(a) The Socio-Economic Impact Assessment was conducted by the Department of Planning, Monitoring and Evaluation in the Presidency as a pre-approval condition by Cabinet and the certificate was granted to the dti on the 13th October 2015.

(b) It envisaged that the Black Industrialist Scheme (BIS) will accelerate the quantitative and qualitative increase and participation of Black Industrialists in the national economy that will contribute towards South Africa’s developmental objectives, such as job creation, exports, skills development, supplier development, industrial decentralisation and localisation. Projects will be assessed on their merits in relation to their contribution to these objectives and catalytic impacts.

24 February 2016 - NW205

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Esterhuizen, Mr JA to ask the Minister of Trade and Industry

Whether his Ministry has any frozen vacant positions; if so, (a) how many of the specified positions are vacant, (b) what are the designations of the specified positions and (c) for how long have the specified positions been vacant?

Reply:

Yes, vacant positions have been frozen.

(a) 117 vacant positions have been frozen as at 19 February 2016;

 

(b)

(c)

No

Designation of position

Period vacant (months)

1

Deputy Director: Regulatory Impact Assessment

3.2

2

Director: Legal Support & Enforcement

3.1

3

Admin Clerk: Fin Management

6.1

4

Senior Accounting Clerk

3.0

5

Asst State Accountant: Salary Payments

18.3

6

Senior Accounting Clerk

3.1

7

Senior Provisioning Administration Clerk

5.9

8

Advanced Team Assistant

4.1

9

Advanced Team Assistant

4.1

10

Call Centre Agent

4.1

11

Internal Auditor

2.0

12

Internal Auditor

5.1

13

Performance Auditor

4.1

14

Senior State Accountant

15.2

15

Assistant Director: Manufacturing Industries

2.2

16

Assistant Director: Media Buyer

20.3

17

Assistant Director: Salaries Travel & Subsistence

2.0

18

Economist

16.2

19

Deputy Director: Economic Research

4.1

20

Deputy Director: Economic Research

4.1

21

Director: Compliance And Forensic Audit

4.1

22

Director: Regulatory Compliance & Registrations

0.0

23

Director: Immigration, Labour & Talent

0.0

24

Director: One Stop Shop

0.0

25

Chief Director: Economic Research

0.0

26

Chief Director: Policy Research

0.0

 

Designation of post

Period vacant (months)

27

Chief Provisioning Administration Clerk

1.0

28

State Accountant

1.0

29

Senior Administrative Officer

1.0

30

Senior State Accountant

1.0

31

Assistant Director: Budget Management

3.0

32

Specialist: Computer Audit

1.0

33

Call Centre Agent

0.0

34

Deputy Director: Stakeholder Management

0.0

35

Advanced Team Assistant

0.0

36

Assistant Director: HR Support

1.0

37

Deputy Director: National Industrial Participation

5.8

38

Chief Director: Agro Processing

4.1

39

Personal Assistant

1.0

40

Deputy Director: Industrial Waste Man & Recycling

1.0

41

Advanced Team Assistant

0.0

42

Director: Renewable Energy

0.0

43

Messenger

2.1

44

Administrative Assistant

4.1

45

Advanced Team Assistant

3.0

46

ICT Help Desktop Services

2.0

47

Senior Communication Technician

2.1

48

Assistant Director: Human Resource Operations

7.6

49

Assistant Director: Performance Management

3.0

50

Assistant Director: Cost Management & Quantity Surveying

1.5

51

Assistant Director: Conditions of Service And Remuneration

2.0

52

Deputy Director: Recruitment Strategy & Policy

7.1

53

Deputy Director: Database Administration

3.8

54

Deputy Director: Employment Relations

15.2

55

Deputy Director: Business Relationship Management

8.1

56

Deputy Director: Business Analysis

3.1

57

Deputy Director: Applications Architecture

18.3

58

MR6 Legal Administration Officer Senior

4.1

59

MR6 Legal Administration Officer Senior

17.2

60

Recruitment Administrative Clerk

1.0

61

Registry Clerk

1.0

62

Vetting Officer

1.0

63

Advanced Team Assistant

1.0

64

Advanced Team Assistant

1.0

65

Deputy Director: Applications Development & Support

1.0

66

Work Study Officer

0.0

67

Director: Litigation

0.0

68

Advanced Team Assistant

2.4

69

Advanced Team Assistant

5.1

70

Personal Assistant

2.0

71

Assistant Director: Trade Rules

8.1

72

Deputy Director: Trade In Services

10.2

73

Deputy Director: Non-Proliferation

4.1

 

Designation of post

Period vacant (months)

74

Director: South African Development Community

2.0

75

Director: Multilaterals

2.0

76

Director: SADC

2.0

77

Chief Director: Non-Proliferation

4.1

78

Advanced Team Assistant

0.0

79

Administration Clerk Grade III Senior

6.1

80

Snr Admin Clerk

14.2

81

Advanced Team Assistant

9.2

82

Advanced Team Assistant

6.8

83

Trade and Industry Advisor: Legal Service

7.1

84

Personal Assistant

6.1

85

Trade and Industry Advisor: Agro Processing & Textiles

4.6

86

Trade and Industry Advisor: Paper, Chemicals and Plastics

12.1

87

Trade and Industry Advisor: Infrastructure Intensive Sectors

14.2

88

Assistant Director: EMIA

2.0

89

Deputy Director: Applications & Claims (PAIS&MHCV)

22.3

90

Deputy Director: Manufacturing Investment Cluster (MIC)

7.1

91

Deputy Director: Applications & Claims

22.3

92

Director: Operations

6.1

93

Deputy Director: Legal Services

0.4

94

Deputy Director: Agro Processing

0.0

95

Assistant Director: Agro Processing & Textiles

0.0

96

Trade and Industry Advisor: Export Info Services

8.1

97

Trade and Industry Advisor: Small Exporter Development

5.1

98

Executive Assistant

2.0

99

Deputy Director: Service Industries

4.1

100

Deputy Director: Manufacturing Industries

2.0

101

Deputy Director: Services Industries

2.0

102

Deputy Director: Trade Opportunities

1.0

103

Deputy Director: strategic Support

0.0

104

Private Secretary

2.0

105

Personal Assistant

3.0

106

Deputy Director: Black Economic Empowerment

3.1

107

Director: BEE

10.2

108

Director

0.0

109

Personal Assistant

0.0

110

Programme Manager

0.0

111

Director

0.0

112

Manager: Legal Services

0.0

113

Chief Director

0.0

114

Executive Manager: Compliance Education & Advocacy

0.0

115

Chief Director

4.1

116

Programme Manager

0.9

117

Director: Economic Infrastructure & Logistics

0.0

24 February 2016 - NW268

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Alberts, Mr ADW to ask the Minister of Trade and Industry

(1)Whether his department, seen against the background of the current economic challenges, unemployment and the decline in food production because of the drought and other factors, has conducted a complete study to establish how much food is wasted in South Africa for example by way of the discarding of fruit that does not meet form standards, supermarkets that throw away old products and restaurants that throw away unused food; if not, why not; if so, what are the relevant particulars; (2) whether he will consider undertaking such a study; (3) whether he will consider ordering an investigation to establish how the edible throwaway food could be made available to food banks and bodies that would distribute is effectively to needy people; if not, why not; if so, what are the relevant particulars?NW272E

Reply:

(1) The Department of Health (DoH) and the Department of Agriculture, Forestry and Fisheries (DAFF) are the most suitable departments to deal with this matter. Food Control section within DoH is responsible for ensuring the safety of food in South Africa. This service is based on the basic needs of communities and the right of South Africans to make informed food choices without being misled. According to a presentation by DAFF in a Workshop to the Portfolio Committee on Agriculture, Forestry & Fisheries held on 2 and 3 February 2016; on Food Security and Food Safety; the food wastage in South Africa is approximately 9.04 million tons every year. In this regard, a presentation is attached as “Annex A”, please see the penultimate page of the presentation.

(2) The Minister of Trade and Industry will not be undertaking any such study.

(3) The Minister of Trade and Industry will not be considering ordering an investigation to establish how the edible throwaway food could be made available to food banks and bodies that would distribute is effectively to needy people as this function does not fall within the ambit of trade and industry but the DoH and DAFF.

 

24 February 2016 - NW208

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Mokause, Ms MO to ask the Minister of Trade and Industry

Has his department awarded any contracts to companies indirectly or directly owned by certain persons (Atul, Ajay and Rajesh Gupta) in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years; if so, in each specified financial year, (i) how many times were such contracts awarded and (ii) for what amount?

Reply:

(a) (b) (c) (i) (ii)

Information requested in the format above is not available as only particulars of companies are recorded within the financial systems in the department; not the details of any directors.

24 February 2016 - NW388

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Grootboom, Mr GA to ask the Minister of Trade and Industry

With reference to President Jacob G Zuma’s undertaking in his State of the Nation Address delivered on 12 February 2015, that the Government will set aside 30% of appropriate categories of state procurement for purchasing from Small, Medium and Micro-sized Enterprises (SMMEs), co-operatives, as well as township and rural enterprises, what percentage of the total procurement of (a) his department and (b) every entity reporting to him went to (i) SMMEs and (ii) co-operatives from 1 April 2015 up to the latest specified date for which information is available?

Reply:

(a) (i) (ii)

For the period 1 April 2015 to date, 66% of the department’s total procurement spent was allocated to SMME’s including Co-operatives.

(b) (i) (ii)

The information from the entities is being collated and will be made available as soon as possible.

17 February 2016 - NW16

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Esterhuizen, Mr JA to ask the Minister of Trade and Industry

Whether he can furnish information on the measures that his department will put in place to ensure the continued survival and growth of the country’s domestic poultry market, specifically regarding trade policies that may be considered in order to assist local poultry producers to be able to compete better both locally and abroad; if so, what are the relevant details?

Reply:

the dti continues to support the sustainability of the local poultry producers through a number of measures including the import tariff for bone-in chicken which was approved and implemented in September 2014. The anti-dumping duties on frozen bone-in portions against US companies also remain in place. The 65 000 ton exemption from the anti-dumping duty would constitute, in volume terms/tonnage, 13.6% of South Africa’s imports of poultry meat in 2015.

In addition an application for the designation of locally produced poultry meat for government procurement is in the approval process with implementation expected in less than 6 months’ time.

the dti continues to provide incentives for investment into poultry production and animal feed industry in order to help mitigate costs towards competitiveness of the industry. As an example, Astral’s Meadow Feeds investment of R193 251 000 was facilitated through an incentive to the value of R14 433 754 over a period of two years.

A further area of support is the work underway with the SA Poultry Association and DAFF towards opening up new market opportunities. An example is the upcoming mission to the United Arab Emirates.

South Africa and the United States agreed to a developmental component to assist poultry producers in South Africa, particularly historically disadvantaged individuals. This development component will be facilitated by the dti and DAFF together with relevant US stakeholders.

 

16 February 2016 - NW161

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Macpherson, Mr DW to ask the Minister of Trade and Industry

What (a) plans and (b) strategies have been put in place by the dti for (i) Armscor and (ii) the SA Defence Industry in order to benefit from the predicted growth in total sector revenues of the global aerospace and defence industry in 2016?

Reply:

 

(a) & (b) (i) (ii) the dti is working closely with the South African Aerospace, Maritime and Defence Industry Association, Armscor, Denel and a range of private sector companies in the aerospace and defence (land and marine) industry.The purpose of this work is to build upon existing domestic value added manufacturing capabilities to increase high value manufacturing both for domestic and export demand; broaden the supplier base; increase employment and contribute to economic growth.

Subject to strategic and confidentiality considerations this work includes stronger deployment of localisation criteria for domestic procurement; the inclusion of aerospace and defence companies in the Manufacturing Competitiveness Enhancement Programme (MCEP); provision of export support through the Aerospace and Defence Export Council; establishment of Supplier Incentive Scheme for the Aerospace and Defence Industry to further broaden the supplier base and strengthen its integration into the global supply chains and the incorporation of state-owned Aerospace and Defence National Strategic Testing Facilities into the Critical Infrastructure Programme of which the majority are owned by Armscor .

In addition to the above the dti has an Aerospace Industry Support Initiative hosted at and managed by the CSIR. Its intent is to accelerate government strategic objectives such as industrialisation of technologies with stronger emphasis on technology transfer; job creation and industry transformation.

 

16 February 2016 - NW132

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(1)Whether he requested that a review of Proudly South African be conducted; if not, what is the position in this regard; if so, when was this review conducted; (2) whether he will make the report of such a review available to Mr G G Hill-Lewis; if not, why not; if so, by when?

Reply:

1. A scoping review of Proudly South Africa (PSA) was undertaken by the dti in the second half of 2014. The purpose of the scoping review was to gather information which could assist engagements with the National Economic Development and Labour Council (NEDLAC) and the PSA Board, which is constituted by NEDLAC, to strengthen the work of PSA.

2. Yes a copy of the scoping review can be made available to the member.

15 February 2016 - NW131

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(1)(a)Why did Proudly South Africa participate in South Africa’s delegation to the World Economic Forum’s 2016 Annual Meeting in Davos, Switzerland and (b) what was the total cost of their participation, including (i) travel, (ii) subsistence and (iii) the events they hosted or sponsored; (2) how does Proudly South African’s participation at Davos correlate with its mandate?NW131E

Reply:

1. (a)The Chief Executive Officer and staff of Proudly South Africa (PSA) report to a Board appointed through the Trade and Investment Chamber of the National Economic Development and Labour Council (NEDLAC). With the possible exception of members of this Board having participated in their own or other capacity at the World Economic Forum (WEF) representatives of Proudly SA did not travel to the World Economic Forum which took place in Davos, Switzerland.

(b)Consequently, Proudly SA did not incur any costs associated with the World Economic Forum with respect to (i) travel; (ii) subsistence and (iii) events hosted or sponsored.

2. No correlation is possible or required since PSA did not participate.

 

18 December 2015 - NW104

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Hunsinger, Mr CH to ask the Minister of Trade and Industry

Whether he has entered into a performance agreement with the President, Mr Jacob G Zuma, with regard to the implementation of the Medium-Term Strategic Framework (MTSF) 2014-2019; if not, why not; if so, (a) which key indicators and targets from the MTSF are reflected in the agreement, (b) how many performance assessments has he undertaken in consultation with the President since the agreement was signed, (c) what progress has been made in meeting the key indicators and targets from the MTSF, (d) what are the key obstacles to implementation and (e) what is the plan to address such obstacles?

Reply:

Yes, the Minister has entered into a performance agreement with the President with regard to the implementation of the Medium-Term Strategic Framework for 2014-2019.

(a) The Minister is the coordinator of Outcome 4: Decent employment through inclusive economic growth. He further supports the implementation of the following outcomes:

Outcome 2: A long and healthy life for all South Africans.

Outcome 6: An efficient, competitive and responsive economic infrastructure network.

Outcome 7: Comprehensive rural development and land reform.

Outcome 9: Responsive, accountable and efficient local government.

Outcome 11: A better South Africa, contribute to a better and safer Africa in a better world.

Outcome13: A comprehensive, responsive and sustainable social protection system.

(b) to (e) A Programme of Action is presented to Cabinet on a quaterly basis where progress is noted, bottlenecks to implementation are dicussed, and recommendations to address bottlenecks are considered and approved.

the dti further submit quarterly performance reports to DPME and NT as well as to the relevant parliamentary committees. The Annual Report of the department is tabled in Parliament. The member is requested to refer to the department’s quarter and annual reports.

03 December 2015 - NW4244

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Redelinghuys, Mr MH to ask the Minister of Trade and Industry

(1)Whether his department maintains a list of exporters; if not, why not; if so, (2) Whether this list is accessible to the public; if not, why not; if so, where can it be accessed?

Reply:

The Department can confirm that they maintain a list of exporters and regularly update it. The Department is in the process of developing an integrated database of exporters which will incorporate plethora of exporters but not limiting it to Customs and Excise data, our extended network through export councils exporting members, as well as the Regional Network of Trade Provincial Organisations and the dti’s trade lead bulletin subscribers database which is an integral part of the trade lead management system.

(2) Whether this list is accessible to the public; if not, why not; if so, where can it be accessed?

Reply:

The list is accessible to the public but distribution is limited to ensure that confidentiality of the exporters on the database is upheld. The list could be accessed through the Department’s Export Help Desk.

The contact persons are Ms Zanele Mkhize and Mr Jacob Moatshe who could be reached at (012) 394 5909 and (012) 394 3024; ZMkhize@thedti.gov,za; JMoatshe@thedti.gov.za respectively.

13 November 2015 - NW3952

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Waters, Mr M to ask the Minister of Trade and Industry

What are the reasons that the application for funding from the National Lottery Board by the Edenvale Child Welfare Centre was declined? 2) (a) When last was funding by the specified board approved for the specified centre and (b) what amount was allocated to the specified centre? NW4818E

Reply:

According to the response received from NLC:

  1. The organisation’s name is Child Welfare South Africa Edenvale. They applied under the Early Childhood Development Infrastructure targeted call which opened on 14 December 2014 and closed on 13 February 2015. This being a focused call towards providing suitable accommodation for the advancement of Early Childhood Development through either a building or container. The application from the organisation unfortunately only applied for operational cost. Furthermore the objectives of the organisation are not focusing on early childhood development as outlined in the call and this is why the application was declined.

Please see paragraph 13, page 5 of the “Charities sector targeted call 2014 guidelines and information required” attached hereto as annexure A for the objectives of the call.

  1. (a) The organisation was last approved for funding on 13 June 2013 and paid on 28 November 2013.

(b) The amount allocated was R308,000.00 (Three hundred and Eight Thousand Rands). This was towards operations with a large portion of the allocation awarded for salaries.

 

09 November 2015 - NW3922

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Macpherson, Mr DW to ask the Minister of Trade and Industry

(a) How many overseas trips did a certain person (Mr Asogan Moodley) of the National Regulator for Compulsory Specifications take since 1 January 2015, (b) what were the (i) dates, (ii) destinations and (iii) reasons of each specified trip and (c) what was the (i) cost of each specified trip and (ii) class of travel of each specified trip?

Reply:

 

Entity

Person in question

(a)

(b)

(b)(i)

(b)(ii)

(b)(iii)

(c)(i)

(c)(ii)

National Regulator for Compulsory Specifications (NRCS)

Mr Asogan

Moodley

None

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

21 October 2015 - NW3732

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

With reference to the award of a multi-million rand grant by the National Lotteries Commission to the Thobeka Madiba Zuma Foundation, which is run by the wife of the President, Mr Jacob G Zuma: (a) What was the intended use of the specified grant (b) What was it actually used for, (c) Did the recipient meet all of the (i) reporting and (ii) audit requirements for the use of the grant, (d) Has the specified commission found that no person improperly benefited from the grant and (e) What process was followed by the specified commission in reaching this conclusion?

Reply:

According to the response received from National Lotteries Commission

(a) The Grant was intended for Breast Cancer Awareness initiatives which included concerts in Mafikeng & Umtata and compilation of a Documentary.

(b) The NLC is not in position to answer this question right now as it awaits the first progress report from the beneficiary.

(c) The project is still being currently implemented and the NLC awaits the first progress report. The NLC will be in a position to comment on (i) and (ii) after assessing the progress report. Once the first progress report is found to be satisfactory, the second tranche payment will be made.

(d) No. With all grants made from the NLDTF, the NLC studies the progress reports to ensure that the funds were used for the intended purposes.

(e) The NLC has not reached any “conclusion”. The NLC is not investigating any impropriety. In assessing of the progress report, and should the NLC find cause for concern, the NLC will raise the matter with the beneficiary.

 

21 October 2015 - NW3731

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Hill-Lewis, Mr GG to ask the Minister of Trade and Industry

(1)What is his department’s total financial contribution, under the Film Incentive Programme, to the filming of Mad Max: Fury Road; (2) why was the specified movie selected for financial support in spite of the fact that it was filmed mainly in Namibia; (3) considering that the film was a commercial failure, does his department assess the likely commercial success of the films it decides to support prior to awarding the incentive?NW4415E

Reply:

 

1) The Financial contribution under the Film Incentive Programme to the Film of Mad Max: Fury Road was R 72 340 609

2) The objective of the Foreign Film and TV production incentive is to attract Foreign Direct Investment and to create jobs that expose local film practitioners to work that they would, otherwise, never be exposed to given the budget sizes applicable to local productions. The film incentive provides a rebate to filmmakers based on the Qualifying South African Production Expenditure (QSAPE) of the amount spent on the production in SA. The film Mad Max: Fury Road complied with the requirements of the incentive to generate more than R 289 million QSAPE injected into South Africa’s economy.

3) nThe film incentive is a means to attract investment and create jobs while supporting the growth of the industry. The dti incentive evaluation does not assess commercial viability of productions, but rather the economic impact to be derived from the production of films in South Africa. In this instance, the committed value of spending in the economy did take place and committed number of actors were employed for the production of the movie.

01 October 2015 - NW3676

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Macpherson, Mr DW to ask the Minister of Trade and Industry

Whether, with reference to the Nexus Forensic Services report into the Centurion Aerospace Village, anyone has been charged in terms of Section 34 of the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004; if not, why not; if so, what are (a) their names and (b) the relevant Crime Administration System number(s)?

Reply:

Flowing from the recommendations of the audits initiated by the dti one individual has been dismissed from the public service. Allegations of criminal activity with respect to this individual and companies alleged to be involved in fraudulent activities has been handed over to the South African Police Services. The decision whether to charge the individual under any one or more legal statutes is one which will be made by the National Prosecution Authority. The case number is CAS 647-12-2013.

A civil legal process is underway to recover public funds from this individual. The Legal Services section of the Department of Trade and Industry is following developments in this regard. The relevant case number is 27011/2013 at the Sunnyside Police Station.

.

a) Until the individuals has been charged in a court of law I am not at liberty to divulge the names of the individuals implicated in the allegations of criminal behaviour.

b) See above.

 

01 October 2015 - NW3680

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Atkinson, Mr P to ask the Minister of Trade and Industry

(1)With respect to the Nexus Forensic Services report into the Centurion Aerospace Village (CAV) in Gauteng, (a) which company was contracted to construct the ICT2 Building and (b) when did construction (i) commence and (ii) conclude; (2) (a) which (i) person(s) and/or (ii) companies have assumed tenancy of the ICT2 Building and (b) on which dates did the specified occupancy (i) begin and (ii) end in each specified case; (3) is (a) electricity, (b) water and/or (c) any other service supplied to the ICT2 Building by the CAV; if not, who supplies the ICT2 Building with the specified services; if so, when were the specified services established?NW4347E

Reply:

1.a) The company contracted to construct the ICT2 Building was Stefannuti Stocks/Timbela Joint Venture.

b) i) The site for the construction was handed over on 23 January 2011. The ‘Works Completion’ was on the 6 December 2011.

ii) The ‘Final Completion/Correction of Defects’ was on 5 December 2012. The official opening of the ICT2 building was on 29 November 2011 and official occupation was on 2 January 2012.

2.a) Occupation of the ICT2 building took place on the 2 January by the CAV staff and by Aerosud.

b) Aerosud and the CAV staff still occupy the building which is mainly used for innovation and training for the Ahrlac programme.

3.a) Electricity, water and sewer services to the ITC2 building was supplied by Aerosud from the commencement of construction as a temporary measure. This was also the case with respect to the provision of electricity to the construction activities for phase two of the CAV.

01 October 2015 - NW3679

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Atkinson, Mr P to ask the Minister of Trade and Industry

Whether, with reference to the Nexus Forensic Services report into the Centurion Aerospace Village in Gauteng, any monies have been recovered or recouped from any specified (a) persons and/or (b) companies awarded (i) contracts or (ii) tenders without adhering to prescribed procurement processes; if not, why not; if so, (aa) what amounts, (bb) from which (aaa) persons and/or (bbb) companies and (cc) for what specified procurement?

Reply:

No monies have as yet been recovered from any:

a) persons or

b) companies, awarded

i) contracts.

ii) No tenders were adjudicated since the prescripts of the Public Finance Management Act (PFMA) were not applied.

This arises from the fact that legal processes to recover funds are still underway.

aa); bb); aaa); bbb) and cc) do therefore not apply.

01 October 2015 - NW3681

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Atkinson, Mr P to ask the Minister of Trade and Industry

With respect to the Centurion Aerospace Village (CAV) in Gauteng, has any (a) person(s) and/or (b) companies concluded a tenancy agreement with the CAV; if not, why not; if so, (i) what are their names, (ii) when did they conclude the specified agreement, (iii) when did they assume occupation of the building and (iv) when is the tenancy agreement with CAV set to be concluded?

Reply:

a) No tenancy agreement was signed. This was because the Occupancy Certificate was not issued. The Occupancy Certificate was not issued by the City of Tshwane because the bulk earthworks contract was terminated as a result of the forensic investigation which demonstrated that the contract was non-compliant with the Construction Industry Development Board (CIDB) regulations. Urgent effort and a process is underway to reinstate the bulk earthworks programme and pave the way for the Occupancy Certificate.

b) i); ii); iii) and iv) do not therefore apply.

 

28 September 2015 - NW3572

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Figg, Mr MJ to ask the Minister of Trade and Industry

(1) Considering the usefulness of visiting other countries and learning lessons from their practices and experiences, (a) how many days has he spent out of the country in (i) 2014 and (ii) since 1 January 2015, (b) which countries did he visit and (c) what useful lessons did he learn; (2) (a) have any of the useful lessons learnt been implemented in South Africa and (b) did the specified lessons yield positive results; if not, why not in each case; if so, what were the results in each case? NW4239E

Reply:

(1) and (2) After years of international isolation because of Apartheid policies, South Africa was accepted into the global community with the onset of democracy in 1994. Responding to these new opportunities was a strategic imperative of the new democratic government in order to build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives. All the working visits detailed below in Annexure A were undertaken in support of this strategic imperative; which in turn yielded a number of notable outcomes.

For further detailed information regarding the working visits and these outcomes, the Honourable Member is advised to consult the dti Annual Report 2013/2014 and several previous Parliamentary Questions on the same matter.

28 September 2015 - NW3634

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Esterhuizen, Mr JA to ask the Minister of Trade and Industry

(1)In view of our outbound foreign direct investment which grew by 17% this year, in contrast to foreign direct investment into the country which has fallen by 24%, can he provide an explanation as to why there seems to be an overarching desire by South African businesses to grow offshore than to invest locally; (2) what steps is his department taking in order to foster an environment which will attract foreign capital investment in the country? NW4211E

Reply:

(1) According to the World Investment Report released by United Nations Conference on Trade and Development (UNCTAD) in June 2015 aggregate global Foreign Direct Investment (FDI) inflows declined by 16% in 2014 as a result of the continued uneven and weak recovery of the global economy after the 2008 Global Financial Crisis. Not surprisingly, South Africa was also impacted and FDI inflows slowed from US$8.3 billion in 2013. The fdi report 2015 by fdi intelligence which tracks investment projects also reports a decline in greenfield fdi projects globally.

Nevertheless, South Africa still attracted a substantial US$ 5.7 billion in 2014. By comparison, Nigeria attracted US$ 4.6 billion, Mozambique US$4.9 billion, Kenya US$ 900 million and Mauritius US$ 418 million. In 2014, South Africa was again the largest recipient of FDI on the African continent. South Africa remains an attractive investment destination as per the latest Ernest and Young attractive destination survey launched in June 2015. According to the EY survey South Africa remains the top destination in Africa for fdi projects. Over the past five years South Africa received twice as many fdi projects as any African country. Multinationals have affirmed South Africa as a regional manufacturing hub and have retained and expanded their investments in new plants. Companies such as Unilever have invested R 4 billion in expansions, upgrades and new plants in South Africa.

In addition to South Africa being a destination for FDI, we are now also a leading source of FDI on the African continent. As this Government has stated on many occasions, our domestic market is simply too small to – on its own – sustain high economic growth rates over the long-term. The African continent is now widely acknowledged as the next growth frontier and South Africa is in the fortunate position of having identified the growth opportunities in Africa many years ago already.

This is why our trade policy prioritises regional development through the Southern African Development Community (SADC); the Tripartite Free Trade Area (T-FTA) signed in June 2015 in Sharm el-Sheikh and the Continental Free Trade Area (C-FTA).

These Agreements do not only open the door to South African exporters. They also provide investment opportunities for companies owned by South Africans or domiciled in South Africa.

Companies such as Vodacom, MTN, SAB-Miller, Standard Bank, Pick n Pay, Shoprite-Checkers, Woolworths, Nando’s and mining companies are just a few of the many South African brands which have become instantly recognisable across Africa. These investments partly account for FDI outflows from South Africa and show the extent to which South African entrepreneurs and companies have become serious participants in the global economy. In most cases, these outward investments draw on their South African value-chains, expertise and financial resources.

These outward investments are positive and should be celebrated. Market opportunities are arising as Africa’s population urbanises and consumer demand grows off a low base in many African countries. We encourage our firms to seize these opportunities, noting that their ability to do so is precisely because they are able to leverage off the financial resources and market successes in South Africa.

Such investments by South African companies contribute to Regional Integration, Infrastructure Development and Industrialisation of the African such as Scaw Metals investment in Ghana.

 

(2) President Zuma during the State of the Nation Address (SONA), 12th February 2015 announced a nine point plan to push the economy forward, ignite growth and create jobs. Government is also committed to improving the investment climate and ease of doing business. Also announced during the SONA was the establishment of a one stop Inter-Departmental Clearing House to attend to investor complaints and problems. the dti has given effect to the Inter- Departmental Clearing House and has established a dedicated division for investment promotion, facilitation and aftercare. Specialised capacity is been added that will fast track, unblock and reduce red tape in Government. Investors are encouraged to contact the dti investment unit for this clearing house service.

28 September 2015 - NW3599

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Robinson, Ms D to ask the Minister of Trade and Industry

Is his department currently working on any (a) financial and/or (b) economic empowerment initiatives in collaboration with the Department of Women in The Presidency; if not, why not; if so, what are the relevant details of the specified initiatives?

Reply:

  1. The dti fully recognises the challenges that women face in society and in the economy. The department recognises that women tend to face more barriers that hinder them from contributing meaningfully and effectively to the country’s economic aspiration of becoming a globally competitive industrial economy. It is for this reason that one of the objectives of our industrial policy is to promote increasing participation of previously marginalised citizens and regions in the mainstream industrial economy.
  2. Currently, the dti does not have any collaboration or joint projects with the Department for Women in the Presidency. The department is, however, open to such collaborations should the opportunity arise.
  3. The dti continues to provide a wide range of measures aimed at supporting women entrepreneurs and increasing their participation in the economy. Our wide range of incentives provides support to entrepreneurs and industrialists, including women. These incentives include those that support women entrepreneurs (e.g. Export Marketing and Investment Assistance Scheme, National Exporter Development Programme, Film, Incubation), women students and researchers (THRIP and SPII) and job placement of women graduates (ITUKISE). Some selected achievements include the placement of 645 women graduates in jobs through ITUKISE Programme in 2015; employment of over 14 700 women through the Business Processing Services incentives in 2015; supporting 574 women-owned companies through EMIA between 2011 and 2014; supporting 351 women-owned companies through the Exporter Development Programme between 2013 and 2015. To date, THRIP has supported 585 female students and 335 women researchers. However, the dti recognises that more can be done and, indeed, more will be done.
  4. When the President established the Department for Small Business Development, some of the functions of the dti were transferred to the new Department. Women and Gender Programmes, together with all responsible officials and business units, were also transferred.
  5. However, the dti has since established a new Women Empowerment Chief Directorate to drive women empowerment. A Chief Director has been appointed and has started to develop women empowerment programmes and initiatives. Once these programmes and initiatives have been finalised and concretised, we will gladly share them with you and the public.

 

09 September 2015 - NW3401

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Madisha, Mr WM to ask the Minister of Trade and Industry

Whether the Government has taken any concrete steps since 1 January 2010 to ensure the continued viability of South Africa’s steel industry in view of the self-evident fact that cheap imports of steel from China were putting the local steel industry under immense pressure and that the export of scrap steel was seriously exacerbating that problem; if not, (a) why not and (b) what has been the consequence of not taking any timely and concrete action; if so, (i) what steps has the Government taken in the past seven years to ensure the viability of the steel industry and (ii)(aa) to what extent and (bb) in what manner has the Government succeeded in this regard?

Reply:

(i)  Government has responded in a number of ways to ensure the long-term viability of the strategic iron-ore and steel industry in SA since 2010. Therefore (a) and (b) above do not apply.

Government convened an interdepartmental task team on iron and steel (IDTT) in 2010, to develop a set of inter-related policy instruments and interventions. These included;

  • A process to secure a domestically produced steel price in the lowest global quartile of steel prices, working in close collaboration with stakeholders, especially the largest domestic steel producer Arcelor-Mittal. In so doing to ensure that domestic comparative advantages at the time, especially a cost plus price for iron ore, was passed on to downstream users of steel,
  • Processes to increase competition in the domestic steel industry to support the same objective,
  • An intervention to curtail the unencumbered export of scrap metal to ensure security of scrap metal supply to domestic steel producers at competitive prices; prevent the associated illegal export of precious metals; limit the extent to which the associated theft of critical infrastructure such as cables was carried out and lower the carbon intensity of the economy,
  • All these and other measures were designed to ensure both security of supply and competitive steel prices in support of downstream manufacturing and value addition as a competitive advantage for domestic, labour intensive manufacturing.

Arising from the work, Cabinet approved a set of recommendations made by the IDTT in December 2012. These included:

  • A process led by the DMR to amend the Mineral Resources and Petroleum Development Act (MPRDA) to secure a competitive advantage for the manufacturing sector arising from South Africa’s enormous resource endowment, especially in key value chains; inclusive of iron ore and steel.
  • A process led by the EDD to utilise the International Trade Administration Act to safeguard the supply of affordable scrap metal to domestic mills and curtail the abuse of export of scrap metal.
  • A process to amend the Competition Act led by EDD to ensure that iron ore price concessions are indeed passed on to downstream users, and
  • An Industrial Development Corporation led process to secure new steel investments to increase domestic capacity and strengthen competition in the steel sector.

(ii) (aa) and (bb) Significant progress has been secured in many of the above areas. This is despite the fact that there was, over an extended period, a sub-optimal level of cooperation from the major steel producer. This during a period which coincided with the global commodity boom, where market conditions included both high demand and high prices for steel which in turn translated into high margins and profits as well as the fact that input costs for the major steel producer were relatively low. Finally and most critically a set of circumstances which included the fact that, notwithstanding favourable market conditions, there was very little maintenance and capital investment in plant and machinery carried out by the major domestic steel producer over an extended period of time. This was a contributing factor to at least seven significant plant breakdowns of AMSA facilities across the country. These latter factors combined, clearly constituted a significant danger to the competiveness, including with respect to technology issues, of the domestic steel sector.

Notwithstanding this major constraint, progress has in fact been registered and will find reflection in significant new and collaborative approaches and platforms, which will place the sector on a firmer foundation going forward. These include the following;

  • In September 2013 the Price Preference System for scrap metal was introduced, compelling all SA scrap dealers who wished to export scrap metal, to offer this firstly to local users at a pre-determined price less 20 percent. Export permits are only granted when ITAC is satisfied that there have been no offers from local users. Although this measure was widely supported, there have been challenges with the current system including resistance and circumvention by scrap dealers. Government is therefore examining options to introduce further measures to curtail the unencumbered export of scrap metal, cognisant of South Africa’s obligations under the World Trade Organisation and its bi and multi-lateral trade agreements. An announcement in this regard will be made in due course.
  • Led by the Industrial Development Corporation (IDC) government has embarked on the Masorini Project, aimed at securing a multi-billion rand investment in a new steel production facility in SA, for both the local and regional market. The IDC has completed a pre-feasibility study and government is in discussions with a potential operating partner. The project is proceeding according to plan and the long time-lines commonly associated with a major investment of this type. The next phase in the project cycle will be to negotiate the terms and conditions for the investment, inclusive of those set out in the feasibility study, and involving technology specifications, the range of products to be produced; regulatory issues such as the Environmental Impact Assessment (EIA) requirements and the infrastructure support required for a multi-billion investment of this nature. Further announcements will be made in this regard in due course.
  • Processes have reached an advanced stage to secure a competitive iron-ore advantage for local steel producers. the dti and DMR will define the conditions for the allocation of a significant mining right which will mean that a cost plus iron-ore advantage will be ‘passed through’ the steel production process to provide a competitive price advantage to downstream manufacturers.
  • Government has also registered significant progress in its efforts to address a range of issues with Arcelor-Mittal (AMSA), in the context of far less favourable steel market conditions. Government is currently negotiating an integrated set of both policy and industry reform measures that would have to be adopted to achieve the objective of a sustainable steel industry in SA, inclusive of the specific needs and interests of the small steel producers and the downstream manufacturing sectors. In this context it is important that the independence and integrity of the processes underway involving the Independent Tariff Administration Commission (ITAC) and the Competition Commission, be respected. Working within these parameters and in close collaboration with the Economic Development Department (under whose authority both institutions fall), the dti will ensure that such supply side protective and support measures are conditional on a competitive pricing policy, increased levels of maintenance and investments, a potential rebate system that will support downstream manufacturers as well as transformation and BBBEE commitments. Announcements in this regard will be made in due course.

the dti is fully cognisant of the extremely adverse conditions in the global steel market characterised mainly by significant oversupply and declining demand and which, taken together with other factors summarised above, constitute a threat to the viability of the domestic steel sector.

Therefore as a first step in the broader process set out above, I have approved the ITAC recommendation for tariff increases on certain steel product lines. In addition a number of other applications for tariff protection and anti-dumping duties are in the pipeline and will be given urgent consideration in the context of a set of conditions set out in summary above and which are the subject of urgent and on-going consultation between all the stakeholders.

 

02 September 2015 - NW3305

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Shivambu, Mr F to ask the Minister of Trade and Industry

(1)(a) (i) What total amount did his department spend on his travel costs between Gauteng and Cape Town in the 2014-15 financial year and (ii) how many trips did he undertake between Cape Town and Gauteng in the specified financial year and (b) what total amount did his department spend on (i) hotel and (ii) residential or other accommodation for him in (aa) Cape Town and (bb) Pretoria in the 2014-15 financial year; (2) (a) (i) what total amount did his department spend on the Deputy Minister’s travel costs between Gauteng and Cape Town in the 2014-15 financial year and (ii) how many trips between Gauteng and Cape Town did the Deputy Minister undertake in the specified financial year and (b) what total amount did his department spend on (i) hotel and (ii) residential or other accommodation for the Deputy Minister in (aa) Cape Town and (bb) Pretoria in the 2014-15 financial year? NW3914E

Reply:

  1. (a) (i) (ii) (b) (i) (ii) (aa) (bb)

Residential accommodation for the Minister in Cape Town and Pretoria is provided for by the Department of Public Works therefore there are no additional costs relating to hotel or other accommodation.

Travel Cost

Number of Trips

Hotel Accommodation in Cape Town

Hotel Accommodation in Pretoria

R 75,372.00

15

R 0

R 0

(2) (a) (i) (ii) (b) (i) (ii) (aa) (bb)

Residential accommodation for the Deputy Minister in Cape Town and Pretoria is provided for by Department of Public Works therefore there are no additional costs relating to hotel or other accommodation.

Travel Cost

Number of Trips

Hotel Accommodation in Cape Town

Hotel Accommodation in Pretoria

R 119,175.00

20

R 0

R 0

02 September 2015 - NW3277

Profile picture: Shivambu, Mr F

Shivambu, Mr F to ask the Minister of Trade and Industry

(1)What (a) total amount did his department spend on air travel between Gauteng and Cape Town for employees attending Parliament business in the 2014-15 financial year and (b) is the total number of trips that were undertaken; (2) what is the total amount that his department spent on (a) accommodation and (b) car rental in Cape Town for employees attending Parliament business in the specified financial year?NW3880E

Reply:

(1) According to the department’s travel records, officials undertook 769 official trips to Cape Town in the 2014/15 financial year, amounting to R3 567 438.00. The trips included the attendance of Parliamentary business as well as to attend other official engagements and duties. The department’s travel records do not differentiate between Parliamentary business and other official business. All costs incurred for air travel, car rental and accommodation was in line with National Treasury’s cost containment measures.

(2) For the 769 official trips the total amount spent on accommodation is R764 926.85 and the amount spent on car rental is R226 819.12.

 

 

31 August 2015 - NW3060

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Motau, Mr SC to ask the Minister of Trade and Industry

How does (i) his department and (ii) entities reporting to him define red tape and (b) what (i) specific interventions and/or (ii) systems have been implemented to (aa) identify and (bb) reduce red tape in (aaa) his department and (bbb) the entities reporting to him?

Reply:

(a)  the dti and its entities define red tape as rules, regulations, and / or bureaucratic procedures and processes which are excessively complex and which impose unnecessary delay(s), inaction and / or costs which exceed their benefits, and / or is no longer effective in achieving the purpose for which they were originally created. Red tape results in undesirable economic, business and / or social impacts or outcomes as a result of negatively impacting on productivity. Red tape involves excessive, or unevenly enforced, regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents effective action or decision-making (Source: the dti & CoGTA Guidelines for Reducing Municipal Red Tape, 2012)

(b)  In the area of reducing regulatory constraints, the dti launched a red tape reduction programme in collaboration with the Department of Co-operative Governance to target local municipalities so that they could reduce administrative processes and regulations on small businesses. The programme has initially targeted 12 municipalities across the country. It is aimed at addressing unnecessary regulatory burdens in order for SMMEs to fully take advantage of business opportunities emanating from local Municipalities and beyond.

In addition, the Companies Act, 2008 has simplified the company regime in that it allows for a one man business to register as a private company and to then grow towards a big corporation or public company without the burden of re-registering.

Private companies are no longer required to file audited financial statements. Audits are only required from companies that have an economic impact due to the number of employees, turnover and extent of the business activities. Private companies can now file independently reviewed statements. Independent review is a quality assurance mechanism that is less stringent than a full scale audit which is more costly.

The Companies Act has also decriminalised compliance transgressions. The Companies and Intellectual Property Commission (CIPC) can now issue compliance notices in instances that were just defined as criminal offences under the previous companies Act of 1973.

the dti is also working on the integrated registration system which will be co-ordinated with SARS, and Statistics SA. Registration must be at one point and all entities that play a role must automatically access information from one central point.

(aa) These guidelines have been informed by the results of the 2011/2012 National Red Tape Reduction Piloting involving 12 municipalities and funded by the dti and CoGTA and with support from SALGA.

(bb) The SMME Payment Assistance Hotline facilitated payments to small businesses exceeding R350 million. This function has been transferred to the Department of Small Business.

Response from the Entities

Entity

(ii)(b)(i)

(ii)(b)(ii)(aa)

(ii)(b)(ii)(bb)

Companies and Intellectual Property Commission (CIPC)

Partnering with banks to offer integrated company registration and bank account services which enable customers to perform both activities through one process. To date company registration inclusive of Bank account openings have gone live with FNB and Standard Bank

   

Export Credit Insurance Corporation (ECIC)

The ECIC has implemented processes to ensure that there are efficient processes to allow for quick turnaround times in order to implement the mandate

Process reviews are initiated whenever bottlenecks are identified, there is currently a process underway to review the procurement process, delegation matrix and there are initiatives that are underway such as ERP system to improve business processes.

National Credit Regulator (NCR)

The NCR has a delegation matrix which outlines approval/authority limits. The limits are limited to the Accounting Authority; CEO; Executive Committee; CFO and Managers. This matrix helps with expediting decision making and implementation.

National Consumer Tribunal (NCT)

The NCT assesses applications filed with it against the filing requirements contained in its rules to ensure that filings meet the requirements as set and advises filing parties if any requirements were not met. This ensures that matters adjudicated on by the Tribunal, meets the filing requirements and that the matters can be dealt with at a hearing. In addition, the NCT conducts regular workshops with all its stakeholders to ensure that all parties are aware of the specific requirements set by legislation to assist in speedy resolution of cases.

The NCT does not enforce any other processes over and above what is required by legislation.

Not applicable, as the NCT does not enforce any process over and above filing requirements set by legislation in order for matters to be adjudicated on, therefore no additional red tape created.

Not applicable, as the NCT does not enforce any process over and above filing requirements set by legislation in order for matters to be adjudicated on, therefore no additional red tape created.

National Empowerment Fund (NEF)

As a national development finance institution the NEF was established to be a driver and thought leader in promoting and facilitating black economic participation through the provision of financial and non-financial support to black empowered businesses, as well as to promote a culture of savings and investment among black people. In its quest for excellence the NEF has adopted a Strategy referred to as the NEF Power of 3, which strives to achieve and is anchored on answering telephonic enquiries within 3 rings; returning client calls within 3 hours; attending to walk-in clients within 3 minutes; taking up to a maximum of 3 months to fully assess applications for funding from application to disbursement of funds to clients; resolving complaints within 3 days and acknowledging receipt of all applications within 3 days.

The NEF identifies the market failures that confront black entrepreneurs as follows:

  • Limited own capital;
  • Limited management skills, including financial, marketing and technical expertise;
  • Limited access to affordable capital;
  • Lack of accurate and reliable financial information;
  • Challenges with compiling good-quality business plans;
  • Lower bargaining and strong competition from established businesses with entrenched market dominance, and
  • Lack of access to local and international markets.

The NEF continuously reviews its application processes to see how it can help reduce what is commonly referred to as turn-around times. In pursuit of the quest for excellence management has been given delegation of authority by the Board of Trustees to introduce a number of interventions that will enable entity to reduce red tape, namely:

  • Introduction of a Credit Committee that sits daily/weekly depending on the number of applications to be considered for approvals ranging from R250,000 up to R1.5 million;
  • Greater empowerment to senior managers heading business units to decide on due diligences on deals at a higher threshold. For example Managers can perform due diligences on deals up to R10 million, whereas in the past this was limited to R3 million;
  • The Investment Committee that constitutes Senior Managers chaired by EXCO members [Fund Management Investment Committee (FMIC)] convenes on a weekly basis and can approve transactions of up to R5 million;
  • The EXCO Investment Committee, which is chaired by the CEO, meets weekly and can approve up to R15 million deal sizes;
  • The Post-Investment Monitoring Committee, chaired by the General Counsel (EXCO member), has the delegated authority to approve “head-room” facilities equivalent to 10% of total approved amounts into existing investee companies. These amounts will ensure that where businesses face a cash-flow crunch, these amounts can be deployed immediately to address challenges faced by entrepreneurs on a daily basis as they are unable to attract private sector short-term facilities from commercial banks, such as overdraft and bridging facilities by virtue of them lacking a trading history. Finally, in compliance with Treasury Regulation 8.2.3 which requires public entities to unless specifically provided in contract with a service provider, pay creditors within 30 days of the invoice being presented. The NEF conducts regular interactions with both staff and service providers to train them on the NEF’s internal process requirements. The NEF further conducts annual audits aimed at determining progress in ensuring that creditors are paid within 30 days. Based on the latest internal audit findings, the NEF’s control framework was found to have been satisfactorily applied through the period to ensure that creditors are paid on time.

National Gambling Board (NGB)

Rules and regulations are in place within the NGB. The understanding is that actions and decisions taken by public officials are subject to oversight through monitoring adherence to rules and regulations so as to guarantee that there is reporting and accountability to demonstrate that Government initiatives are met.

Internal controls are in place within the NGB to ensure that the various pillars of Governance are in place.

Areas of non- compliance with rules and regulations will give rise to adverse audit finding by the office of the Auditor General.

On this basis no specific interventions have been implemented to reduce red tape or to do away with any rules and regulation

National Lotteries Commission (NLC)

The amendment of the Lotteries Act allows for the allocation of differentiated grants. This means that organisations applying for smaller grants will have fewer and less stringent requirements to be met in order to be considered for a grant from the National Lottery Distribution Trust Fund (NLDTF). The amended Act also makes provision for full time Distributing Agencies, appointed for a period of five years, to adjudicate on applications for funding. This is envisaged to improve turnaround times. The Lotteries Act also requires the process from application to adjudication to be a maximum of 150 days. The National Lotteries Commission can only put this to the test once the full time Distributing Agencies have been appointed. The National Lotteries Commission is committed to pay all grants within the prescribed 60 days of receiving duly compliant grant agreements. In recent years, the NLC has engaged with its stakeholders through its National Indabas, and Provisional Workshops and Help Desks by interacting and educating prospective applicants on the application process. It is also an opportunity to learn of the challenges faced by stakeholders. This has resulted in the doubling of the applications received by the NLC in the last call for applications. The NLC has established offices in each of the provinces to give greater access to applicants and beneficiaries.

National Metrology Institute of South Africa (NMISA)

In the case of NMISA there is no deliberate implementation of red tape. The organisation is structured as a flat organisational structure with clear delegations of authority to enhance efficiency in operations and eliminate complexity. This is especially emphasised for areas where there is direct contact with the clients at service delivery points such as the signature of calibration certificates to industry. This is delegated to divisional directors and experts. The accreditation the quality standard ISO 17025 and ISO Guide 34 ensures that red tape is avoided when dealing with the public and clients.

National Regulator For Compulsory Specifications (NRCS)

There are procedural guidelines in various business units to deal with the processing of applications.

Applications for various forms of authorization are recorded upon receipt and when finalised.

When the backlog is identified, manpower is increased by using field inspectors and overtime is offered to all inspectors available to work.

South African Bureau of Standards (SABS)

The SABS has 5 main service delivery programmes.

  • Standards Development and Promotion
  • Certification
  • Testing
  • Training Academy, and
  • SABS Design Institute
  • An improvement request query (IRQ) system is used to systematically manage customer feedback and
  • complaints regarding the accessibility and quality of the SABS services;
  • Customer satisfaction surveys are occasionally commissioned to assess the customer experience;
  • Deloitte Fraudline that customers use to report issues that point to red tape; and
  • The SABS internal audit process, which includes the management of accreditation for conformity assessment services.

The SABS has is in the process of implementing a number of systems to improve productivity and through these processes, the opportunities to reduce red tape are implemented. The systems include:

  • The Laboratory Information Management System (LIMS) for managing laboratory testing processes;
  • e-Committee for management of standards development committees and projects; and
  • The Automation of Certification Business Process.

In addition, the SABS is embarking on a modernisation programme (through ICT) whose roadmap is currently under review at the Board.

South African National Accreditation System (SANAS)

As accreditation requires strict compliance to international standards, the lack of clearer communication was identified as the main contributor to perceived red tape. In this regard, SANAS conduct annual Communication meetings with its customers as well as increased its print communication to monthly and quarterly reports.

Identification comes through Internal Audits as well as international peer reviews.

The second phase of the SANAS Shanduka project aimed at automating the accreditation administration process through ICT, will contribute towards minimising the time and information required to apply for accreditation.

National Consumer Commission (NCC)

The NCC has revised its strategy during the latter part of 2012 with a view to improving service delivery in line with its legislative mandate. Internal controls, policies, standard operating procedures, delegations of authority and charters have been put in place relating to compliance with applicable legislation, policies, directives and decision making.

Delivery as per the annual performance plan is monitored regularly at which monthly performance and financial reports are canvassed. Executive Committee meetings are held at least once every quarter at which management committee reports, amongst other things, are canvassed. Moreover, regular meetings are held with stakeholders. Decisions impacting on the public are disseminated via the various media. Internal controls, policies, standard operating procedures, delegations of authority and charters are revised regularly in order to improve operations and service delivery.

The NCC has recently developed its Service Delivery Improvement Programme (SDIP) which provides for turnaround times for the majority of services. This is monitored on an ongoing basis by the management and executive committees of the NCC.

Companies Tribunal (CT)

The requirements and procedures for filing of applications and complaints are determined by the Companies Act 71 of 2008 and Companies Regulations made in terms of the Act.

Companies Tribunal produced the Practice Guidelines for filing of applications for adjudication and Alternative Dispute Resolution (ADR) complaints to simplify the procedures.

 

31 August 2015 - NW3116

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Macpherson, Mr DW to ask the Minister of Trade and Industry

With reference to the agro-processing industry, (a) what discussions has he had with the Minister of Agriculture, Forestry and Fisheries regarding land capping on farms and (b) how will this affect (i) agro-processing and (ii) job creation?

Reply:

(A)   The Department of Trade and Industry (the dti) has a constitutional mandate to develop the agro-processing, sector with primary agricultural production the responsibility of the Department of Agriculture, Forestry and Fisheries (DAFF). Discussions regularly take place between the two departments and other stakeholders with respect to the supply and security of supplier of feed-stocks into agro-processing value-chains. To the best of the Departments knowledge no existing or future projected security supply concerns have been raised by stakeholders in this regard.

(b)  i and ii) Since the matter of ‘land capping’ is a constitutional mandate of the Department of Agriculture, Forestry and Fisheries, member D W Macpherson should address his question to the appropriate Minister.