Reply:

According to the information at my disposal at the moment:

(1). It is a well-known fact that arts funding in South Africa, before 1994, largely benefitted the white minority. It is also a fact that prior to the formation of Mzansi National Philharmonic Orchestra, orchestral funding benefitted the 3 established orchestra in Cape Town, Durban, Johannesburg. And the following sample of allocation over the past 15 years testifies to that:

Name of Orchestra	2008/09	2009/10		2015/16	2016/17	2017/18	2018/19
KZN Philharmonic	4 472 000	4 740 000		9 772 000	10 300 000	10 815 000	6 180 000
Cape Philharmonic	4 472 000	4 740 000		6 660 000	7 020 000	7 371 000	4 422 000
Cape Town Jazz Orchestra	4 472 000	4 740 000		3 535 000	3 726 000	3 912 000	2 347 000
Jhb Philharmonic Orchestra							3 000 000
GRAND TOTAL	13 416 000	14 220 000		19 967 000	21 046 000	22 098 000	49 000

(2) The Department is committed to transformation of the orchestral sector. It is also a known fact that black musicians and black managers are underrepresented in orchestras. However, the Department is not about to embark on a study or research of the racial ratio of the  orchestras in South Africa over the past 5 years.

(3) Mr Bongani Tembe was initially appointed to project manage the formation stages of the national philharmonic orchestra based on his qualifications and unique experience: Mr Bongani Tembe has a Bachelors and Masters Degrees in Music from the prestigious Julliard School in New York; he has led the KwaZulu-Natal Philharmonic Orchestra since the dawn of democracy in 1994 (for 29 years); and has been a highly effective CEO of the Johannesburg Philharmonic Orchestra since 2016. As Commissioner-General, he also led the SA-UK Seasons 2014 and 2015 and the SA-French Seasons 2012 and 2013 presenting more than 3000 South African artists in France, for which he was awarded a high honour by the French Government. (Mr Bongani Tembe’s qualifications and track record are beyond reproach).

Subsequently (in December 2019), DSAC appointed a board of highly distinguished South Africans who in turn after applying their wisdom and vast experience, appointed Mr Tembe as the Chief Executive and Artistic Director of Mzansi National Philharmonic Orchestra.

(4). According to the 2022 Annual Report of Mzansi National Philharmonic Orchestra, which was submitted by DSAC to the Parliamentary Portfolio Committee of Sport, Arts and Culture, the national orchestra, through its partnership with regional orchestras, has eight (8) cadets and three (3) fellows.

(5) The programmes of Mzansi Philharmonic, which includes developmental programmes, are highlighted in their 2022 annual report which has been distributed to the Parliamentary Portfolio Committee of Sport, Arts and Culture.

Reply:

Eskom is continuing to work on implementing the legal separation (or unbundling). This is a key strategic priority of Eskom’s Turnaround Plan as envisaged in the Department of Public Enterprises (DPE) Roadmap.

In line with the roadmap, the corporatisation of the transmission function was completed in December 2021. A legally binding merger agreement was entered into between Eskom and its wholly-owned subsidiary, the National Transmission Company South Africa SOC Limited (NTCSA).

Reasons for the delays in unbundling transmission relate to external dependencies such as obtaining lenders’ consent, acquiring electricity licences and designation of the transmission entity as a buyer.

The next step is to operationalise the NTCSA, which is subject to the satisfaction of certain suspensive conditions. These include, but are not limited to, the National Energy Regulator of South Africa (NERSA) granting all applicable licences required for NTCSA to operate the transmission business and Eskom obtaining all applicable creditor consents to the transaction.

Future phases of the legal separation will be dependent on legislative changes, including the amendment of the Electricity Regulation Act regarding licensing and the Electricity Pricing Policy of the South African electricity supply industry.

The addition of new transmission capacity through expansion of the grid is being accelerated through the implementation of the Transmission Development Plan, supported by the work of the National Energy Crisis Committee.

Reply:

In terms of the Broadcasting Act sections 1 and 13, the President is the appointing authority, who appoints the members of the SABC Board on the Advice of the National Assembly. In terms of the President’s oath of office and sections 83, 84(1), 84(2)(e) and 237 of the Constitution, he must uphold and respect the Constitution, and perform his responsibilities diligently and without delay.

In appointing members of the SABC Board, or in performing any other obligation, I have a responsibility to ensure that proper lawful processes have been followed, including before the matter is brought to me.

The full submission on the appointment of the SABC Board was only made available to me in mid-January 2023.

In fulfilment of this Constitutional responsibility, I wrote to the Speaker of the National Assembly on 3 February 2023 and 9 March 2023 seeking clarity on:

• the legality of having a reserve pool, and what ‘eventualities’ were envisaged by Parliament;
• whether the individuals in the ‘reserve pool’ had been vetted;
• whether the Portfolio Committee had considered all of the objections received by the Committee during selection process.

In a letter dated 10 April 2023 the Speaker of the National Assembly indicated that the resolution adopted by the National Assembly last year is lawful and that the President is not precluded from selecting a candidate from the reserve pool of three names in case any of the 12 names are not legally appointable.

I duly appointed the SABC Board on 17 April 2023.

Reply:

1. The MNPO has performed at the following venues since its establishment in 2022: -

Albertina Sisulu Special School Centre in SOWETO (Orlando west) on the 29 July 2022

Linder Auditorium in Johannesburg collaboration with top SA Artists 18 August 2022

Inauguration of the G20 Orchestra representing SA at global stage in Indonesia 12 September 2022

International Cultural Festival in Algeria 15-21 October 2022

Mpumalanga Cultural Xperience, in Nelspruit 10 December 2022

Linder Auditorium in Johannesburg 15 December 2022

The Playhouse in Durban 17 December 2022 and

Cape Town City Hall in Cape Town 21 December 2022

(a)- Albertina Sisulu Special School Centre in SOWETO (Orlando west) on the 29 July 2022

(b)- New Apostolic Church Silvertown in Cape Town 20 December 2022 community engagement

(c)- Nelspruit, Mpumalanga Cultural experience 10 December 2022

Durban Playhouse Opera Theatre “breakfast soup kitchen” open rehearsal for members of the Payless Shelter, 17 December 2022

 

Reply:

In terms of the Broadcasting Act sections 1 and 13, the President is the appointing authority, who appoints the members of the SABC Board on the Advice of the National Assembly. In terms of the President’s oath of office and sections 83, 84(1), 84(2)(e) and 237 of the Constitution, he must uphold and respect the Constitution, and perform his responsibilities diligently and without delay.

In appointing members of the SABC Board, or in performing any other obligation, I have a responsibility to ensure that proper lawful processes have been followed, including before the matter is brought to me.

The full submission on the appointment of the SABC Board was only made available to me in mid-January 2023.

In fulfilment of this Constitutional responsibility, I wrote to the Speaker of the National Assembly on 3 February 2023 and 9 March 2023 seeking clarity on:

• the legality of having a reserve pool, and what ‘eventualities’ were envisaged by Parliament;
• whether the individuals in the ‘reserve pool’ had been vetted;
• whether the Portfolio Committee had considered all of the objections received by the Committee during selection process.

In a letter dated 10 April 2023 the Speaker of the National Assembly indicated that the resolution adopted by the National Assembly last year is lawful and that the President is not precluded from selecting a candidate from the reserve pool of three names in case any of the 12 names are not legally appointable.

I duly appointed the SABC Board on 17 April 2023.

Reply:

Since the beginning of 2019 financial year up to December 2022, the Department of Human Settlements has worked with all Provinces, municipalities and entities in a concerted effort to significantly reduce the housing backlog. The measures used include delivering 158 769 serviced sites, upgrading 329 informal settlements, issuing 17 492 first home partial subsidies for houses, 9 764 social housing units, 1675 community residential units, delivered 87 687 title deeds ,constructed 184 637 housing units to qualifying beneficiaries, acquiring 12,8774 hectares of land from state owned entities and 3902,5075 hactares of land from the public works and rural development and 11902,6699 hactares of land from private owners.

The Department has provided grant funding to Provinces and metropolitan municipalities. It has also prepared the informal settlements upgrading plans across the nine Provinces. The plans promote participatory planning processes to enable development of layout plans based a negotiated process with the communities to ensure incremental upgrading of areas.

The Department has facilitated that Provinces develop Multi-Year Housing Development Plan (MYHDP), that are aligned with the Provincial Growth and Development Strategies (PGDS) and the Provincial Spatial Development Plans (PSDP). This has created a roadmap to identifying mechanisms to further reduce the housing backlogs. This integration and alignment of plans seek to incorporate planning systems which promote densification, infill and compaction in the wake of high rates of urbanisation in urban areas and migration patterns prevalent in the Province. Such mechanisms and programmes aim to significantly reduce housing backlogs and ensure that approved beneficiaries receive dignity and enjoy spatial transformation and sustainable human settlements.

The department is also providing social housing in identified restructuring zones and is also acquiring land and the providing bulk infrastructure where capacity issues and deficits have been identified. Where there has been blockages the Department has prepared national unblocking plans to ensure development is not stalled and that human settlements service delivery imperatives continue.

In line with the Medium Terms Strategic Framework the Department has been focusing its investment in strategic areas that are often a subject of Urbanisation around the metropolitan municipalities and identified priority housing development areas. The department has also appointed and deployed technical teams comprised of civil engineers, planners, social faciilitators and quantity surveyors to serve as members of the War Rooms. These members have also crisscrosed the country diagnosing challenges and providing the required technical housing support to Provinces.

Reply:

According to the response received from the Department of Sport, Arts and Culture:

(1) The Revised White Paper on Arts, Culture and Heritage recommended the establishment of a national orchestra in South Africa. However, in the implementation of this recommendation a decision was made to name the national orchestra as the Mzansi National Philharmonic Orchestra. It is important to note that the naming of the orchestra is a separate issue from the recommendation for its establishment. The specific naming of the orchestra may have been influenced by various factors such as cultural significance, relevance, and appeal. It is also a legal and/or registration requirement that names should not be identical or too similar to the name of any existing company in your jurisdiction, as this can cause confusion for customers and may violate intellectual property laws such as trademark. The decision to name the national orchestra the Mzansi National Philharmonic Orchestra may have been made based on these considerations. For instance, Bafana Bafana is our national soccer team. If you hear on the news that Bafana Bafana qualified for the Afcon, bear in mind that we are taking about the same national team. Therefore, allocation of funding to the Mzansi National Philharmonic Orchestra is the same as funding the national orchestra.

(2) There is no one associated with the DSAC or the national orchestra who has been aligned with money irregularities. In addition, the audited annual financial statements of the DSAC, NAC and Mzansi National Philharmonic Orchestra are all not qualified for the period 2021-2022.

Reply:

I was not briefed about the identities of people who are allegedly involved in cartels in Eskom.

In terms of section 34 of the Prevention and Combating of Corrupt Activities Act, I am advised that Mr De Ruyter is a “person who holds a position of authority” as the Chief Executive Officer of Eskom and therefore bears a duty to report corrupt transactions to any police official.

Once any such person has presented evidence to an appropriate law enforcement agency, such agency should take whatever action it deems relevant.

There are several pending law enforcement and other actions relating to Eskom that include:

a) Various measures taken by the Department of Public Enterprises and reported to Parliament regarding the implementation of the recommendations of the State Capture Commission.

b) The cancellation of coal supply agreements and construction contracts by Eskom with a value of approximately R11 billion.

c) Litigation by Eskom that declared invalid coal supply agreements to an approximate value of R3.7 billion.

d) Preventing further losses of approximately R10 billion to Eskom by setting aside other coal supply agreements and constructions contracts.

e) Eskom defending arbitrations brought by contractors with an approximate value of R7.2 billion.

f) Eskom pursuing claims with a value of approximately R4.8 billion against suppliers and former directors of Eskom.

g) Eskom recovering approximately R2 billion unlawfully paid by Eskom to service providers.

h) Special Investigating Unit investigations and Eskom disciplinary action regarding 14 coal transportation service providers.

i) Ongoing internal investigations into four diesel suppliers to Eskom.

j) Special Investigating Unit referrals of 5,635 matters to Eskom for disciplinary proceedings against employees for their alleged failure to submit financial declarations, declare or get approval for doing work outside of Eskom.

k) Pending criminal cases or referrals to the National Prosecuting Authority by law enforcement in at least 125 instances and a further 65 referrals to the Asset Forfeiture Unit relating to Eskom.

l) The Department of Public Enterprises finalising external advice regarding the launching of applications to have several former directors of Eskom declared delinquent.

m) The inclusion of at least 25 former senior executives at Eskom in a database of individuals dismissed for their involvement in state capture and corruption at Eskom.

Reply:

1. Attached are lists of international trips undertaken by each Minister and Deputy Minister from 2018 to 2023 that were approved by the President.

2. There is no record of official trips abroad by Ministers or Deputy Ministers during that period that were not approved by the President or Acting President.

Reply:

No, as we need more clarity on what specific problems or audits where exorbitant spending on overtime has been identified as a problem requiring National Treasury to intervene. Further, overtime is regulated by the Basic Conditions of Employment Act (BCEA-section 10) and the SALGA Collective Agreement.

There are no planned meetings between the National Treasury and Department of Cooperative Governance to discuss overtime payments by municipalities.

However, there are measures currently in place to guide the implementation of Overtime and the related payments, such as MFMA Circular No. 86 on Cost Containment.

Municipalities are advised that overtime budgets must not exceed 5 per cent of the total employee related cost budget as a norm to guide them in this regard.

Reply:

I have been advised by ICASA as follows:

1. The Authority has no information in its possession indicating that StarLink has submitted an application either for Radio Frequency Spectrum, Individual Electronic Communications

PQ 42: Hon.D Kohler (DA) to ask the Minister of Communications and Digital Technologies

Network Service (I-ECNS) and an Individual Electronic Communications Service (I-ECS) licences or transfer applications to the Authority.

2. The Authority’s prevailing legislative and regulatory provisions section 9(2) (b) of the Electronic Communications Act 36 of 2005 read with regulation 3(4) of the Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDGs) 2021, requires Individual IECS/IECNS applicants or licensees to have a minimum 30% equity ownership held by persons from historically disadvantaged groups (HDGs), which includes black people, women, youth and people with disabilities. Therefore, in order for Starlink to operate in South Africa, they require the IECS and IECNS licences and to comply with the above.

3. See (a) above.

 

Thank You.

 

PQ 42: Hon. D Kohler (DA) to ask the Minister of Communications and Digital Technologies, NW42E

Reply:

I have been advised by SAPO as follows:

a) The Chatsworth Post Office has been burgled 8 times in the last 3 weeks - with access gained via a window, roof and the front door.

There was substantial damage to the branch infrastructure including network cabling and network points. Points of Sale were also stolen. Notwithstanding the damage and operational challenges, the Post Office has remained open, however, offering limited services to customers whilst some repairs were undertaken.

b) The branch has been fully operational from 02 March 2023 and able to provide online transactions including, Postbank and card swapping transactions.

Repairs to the structural damage to the branch is dependent on the availability of funding. The replacement of stolen work stations can only take place upon finalisation of the agreement/contract with the selected service provider and is also dependent on the availability of funding.

Thank You.

PQ 417 Ms D Kohler (DA) to ask the Minister of Communications and Digital Technologies.

Reply:

a) Total number of children (0 – 59 months ) who died in public health facilities in each province since 1 January 2013 to December 2022 (ten years period)

Table1: Children who died in public health facilities by province since 1 January 2013 to December 2022 (ten years period)

Organisation unit name	Value
Eastern Cape	25 189
Free State	10 189
Gauteng	38 243
KwaZulu-Natal	38 711
Limpopo	24 744
Mpumalanga	14 226
Northern Cape	5 107
North West	10 300
Western Cape	11 736

Source DHIS

(b) Detailed breakdown of the reasons for each death

Provision of individual cause of children’s death to the house contravenes section35 of the Protection of personal information Act (POPIA), aggregated data on common causes of deaths in children are diarrhoea and pneumonia, including the underlying causes such as severe and moderate acute malnutrition, are collected routinely through the district health information system.

Table 2: Causes and underlying causes of deaths from 1st January 2013 to 31st December 2022

Data name	TOTAL
Pneumonia death under 5 years	10,216
Diarrhoea death under 5 years	9491
Moderate acute malnutrition death under 5 years	1410
Severe acute malnutrition death under 5 years	11172

Source DHIS

(c) Number of deaths that were due to unnatural causes?

Number of child deaths due to unnatural causes in public health facilities may not project accurate picture across the country as final causes are documented following the forensic report analysis. Statistics South Africa, Home Affairs and South African Police Service provides accurate information as shown in the table below.

Table 7: Non-natural deaths from 2013 to 2018

Year	Non-natural deaths	% under-5 deaths
2013	2 452	7.0
2014	2 496	7.3
2015	2 509	7.9
2016	2 364	8.3
2017	2 0 4	7.9
2018	2 199	8.4

  Source: StatsSA

 

END.

Reply:

According to the information received from the Department of Sport, Arts and Culture:

(a) The Netball World Cup Organizing Committee in its response and in terms of the information recently presented to the Department has indicated that their budget shows a possible surplus.

(b) Based on the reply to part (a) of the question, reply to part (b) of the question falls away since there is no deficit.

Reply:

NSFAS is currently implementing the 2023 Conditions and Criteria for Funding Students which includes the current cap of R45 000 for student accommodation. There are no other guidelines that propose a different cap.

Clause 5.3.5.6.2 and 5.3.2.6.3 of the 2023 Conditions and Criteria for Funding Students are as follow:

• 5.3.5.6.2 Students living in institution owned accommodation, or leased accommodation qualify for a capped annual accommodation allowance of up to R45,000 per annum.
• 5.3.5.6.3 Students living in accredited private accommodation qualify for a capped accommodation allowance of up to R45,000 per annum.

Reply:

(a) In the previous three financial years the department has conducted a total number of 128 inspections and prosecuted 10 employers (see Annexure 2 and 3 - Employers inspected and prosecuted)

Financial Year	Inspections Conducted	Employers referred for prosecution
2020/21	61	05
2021/22	32	03
2022/23	35	02
Total	128	10

There are also inspections that were conducted with ICOREF which is a multi-disciplinary Committee led by KZN Department of Economic Development.

On the 01/02/2023 SAPS cluster meeting was held to plan joint inspections that incorporates Department of Employment and Labour, Department of Home Affairs and SAPS iLembe cluster. During the meeting SAPS confirmed their powers to break in if an employer refuse to open the gates, since most of Chinese deny entry of Labour inspectors and when reporting to SAPS Nyoni police station, we were advised that it is not their jurisdiction.

On the 08/02/2023 the first joint Inspection was conducted at Members Fashion Co-operative. With the SAPS iLembe cluster and Home Affairs officials present, the security guard was forced to open that gate. Inspection was successfully conducted and that employer has since referred for prosecution on 24/03/2023.

The plan of the Department Employment and labour during 2023/24 is to work hand in hand with South African Police Services iLembe cluster and Home Affairs Northern district in order to be assisted with entry should employers denied entry as well as to hold foreigners and to enforce their laws since it administered by them.

(b) As per the Provincial Year Planner, the scheduled dates for Isithebe Clothing and Textile Blitz Inspections is the 5-9 June 2023.

Reply:

In terms of the National Indicator Dataset, the hospital beds are classified according to disciplines in which patients are admitted. The Department of Health does not have record of beds that were taken up by cases relating to vigilantism, mob and/or community justice in all provinces.

END.

Reply:

I have been advised by SAPO as follows:

Yes, charges have been brought against individuals implicated in issuing fraudulent vehicle licenses:

a) 24 criminal cases have been registered with the South African Police Services (SAPS) for fraud and contravention of the section 7 of the Cybercrimes Act No. 19 of 2020 - unlawful acquisition, possession, provision, receipt or use of a password, access code or similar data or device.

b) Internal disciplinary proceedings have also been instituted for contravention of the Cybercrimes Act and not protecting usernames and passwords as well as not following policies as required by the Road Traffic Management Corporation (RTMC):

87 employees were identified for contravening the Cybercrimes Act and policy:

• 3 employees resigned prior to their suspension;
• 84 employees in total were suspended, of which 15 disciplinary hearings have been concluded and following a guilty conviction, these employees were dismissed. 69 employees are currently on suspension awaiting conclusion of the disciplinary processes.

Thank You.

PQ 41: Hon.T Bodlani (DA) to ask the Minister of Communications and Digital Technologies

 

 

PQ 41: Hon. M Bagraim (DA) to ask the Minister of Communications and Digital Technologies

 

Reply:

a) The Consolidated 2021/22 Audited Annual Financial Statements for eThekwini Metropolitan Municipality reported the following breakdown on Borrowings:

1. Local Lenders = R9 billion
2. Foreign Lenders – Agence Francaise de Developpement (AFD) = R233 million

        Total = R9.2 billion

 It should be noted that in terms of Section 47 of the Municipal Finance Management Act, municipalities are not allowed to incur any debt in any foreign currency, and must ensure its debt is denominated in Rands.

b)  As part of the oversight responsibilities, the National Treasury performs the following:

(i) The National Treasury analyses the borrowing capacity of a municipality by evaluating the size of the Gearing Ratios – total borrowing liabilities divided by the total operating revenue (also an indicator used to determine if a municipality is in financial distress).

(ii) When a municipality intends to borrow from the authorised financial service providers (lenders), they are required to obtain National Treasury’s views in terms of Section 46 of the Municipal Finance Management Act, 2003. A decision to borrow or not is the prerogative of a municipal council.

(iii) National Treasury has put in a place a Borrowing Policy Framework (which has been endorsed by Cabinet on the 17th of August 2022). The Policy sets out the following principles:

• Creditworthy municipalities should borrow prudently to finance capital investment and fulfil their constitutional responsibilities;

• Municipal access to private capital, based on investors’ evaluation of municipal creditworthiness, this is key to efficient local government and fiscal discipline as their financial sustainability is seen from an objective perspective;

• Municipalities should borrow in the context of long-term financial strategies, which reflect clear priorities and the useful life of assets; and

• Neither national nor provincial government will underwrite or guarantee municipal borrowing, again contributing to fiscal discipline as it would lead local government to think carefully on how they approach the borrowing market.

Reply:

National Treasury issued MFMA circular 117 on 04 May 2022 titled “SCM Circular on reporting of procurement in response to the National State of Disaster as a result of severe weather events”

The purpose of the circular was mainly to provide a framework in relation to procurement in response to the national state of disaster as a result of the severe weather events and a need for greater transparency on procurement and expenditure related to the disaster.

All municipalities and municipal entities affected by the flood disaster, must when procuring goods and services, follow section 217 of the Constitution, the Municipal Finance Management Act and its regulations and circulars as well as supply chain management policies of institutions.

In addition to MFMA circular 117, National Treasury issued MSCOA Circular 14 on 16 May 2022 to give effect to the recording of disaster events in mSCOA.

Reporting and monitoring

As contained in MFMA circular 117, all municipalities and municipal entities affected by the disaster are required to report all disaster-related transactions on a weekly basis effective from 13 May 2022. Furthermore, all municipalities and municipal entities are required to report monthly as per sections 71(1) and 87(11) of MFMA for both municipalities and municipal entities respectively.

National Treasury has advised all municipalities and municipal entities affected by the disaster to utilize their internal audit units to undertake preventative audits for quality assurance on procurement to respond to the effects of the damage caused by floods.

The reporting template provided in MFMA circular 117 requires affected municipalities and municipal entities to report weekly and both MFMA section 71(1) (municipalities) and section 87(11) (municipal entities) reports to provide real-time information that will allow Auditor General to conduct real-time audits.

The aim of the real-time audits is to prevent, detect, and report on the findings to ensure an immediate response to prevent leakage, potential fraud, financial mismanagement and wastage.

The Auditor-General of South Africa will further provide real-time insights into the management and usage of funds earmarked for disaster relief in accordance with the objectives and targets set for those funds.

Reply:

1. I held a press conference on 24 January 2023 with the focus on post school education and training sector state of readiness for academic year 2023. The press conference outlined the career pathing of all learners, including those could not be accommodated in tertiary institutions.

2. (a) The Department continues to encourage prospective students to look beyond universities as the only option to training, particularly when the economic demands align more closely with skills of those located in the TVET sector. The Department is also marketing of STEM related qualifications, where student interest is limited, notwithstanding the spaces that are available.

Students who could not be accommodated in our higher learning institutions (i.e. universities), as shared during the press conference on 24 January 2023 can access other post school opportunities as follows:

1. Skills Development Opportunities

For the 2023/24 financial year, the entire SETA system has set itself the following targets, as part of expanding post-school opportunities:

• 110 500 workplace-based learning (WBL) opportunities;
• 149 000 learners registered in skills development programs;
• 23 000 learners entering artisanal programs;
• 21 000 learners passing artisanal trades;
• 32 550 learners completing learnerships; and
• 6 450 learners completing internships.

Reply:

According to the information received from the Department of Sport, Arts and Culture:

(1) The operations of the Red Location Museum do not fall under the Department of Sport, Arts and Culture. Therefore, the Department of Sport, Arts and Culture has not made any budgetary planning to repair and to reopen the museum.

(2) The Department of Sport, Arts and Culture has not had any communication with the Department of Human Settlements regarding the issues raised by the community as this matter falls outside the scope and mandate of the Department of Sport, Arts and Culture.

Reply:

Attached herewith please find the Reply to the parliamentary question 784, which was submitted to the Parliament Questions Office

https://pmg.org.za/committee-question/21635/

 

 

 

Reply:

The phenomenon of mobile higher-income earners is well-documented and known across tax jurisdictions – beyond South Africa. Indeed, “increased tax competition” of highly skilled, but mobile labour was identified as a key risk to inclusive tax policies as far back as 2018 (see Tax policies for inclusive growth in a changing world (oecd.org)).

Our highly unequal distribution of income coupled with very progressive marginal tax rates necessarily means that we collect a high proportion of our revenue from upper income groups – more so than many of peer countries. This is due to (1) a relatively high personal income tax exemption threshold and (2) high upper income tax rates (see Inchauste et al for a comparison to other developing countries).

1. The latest Tax Statistics includes an analysis of changes in residence (on pg 44) along with a new table regarding taxpayers that changed residence (Table A2.1.10 on pg 79). It indicates that 32 831individuals changed tax residence in the period between the 2017 and 2021 tax years. Of those individuals, 2 788 earned taxable income greater than R500 000 p.a. A total of 1 125 earned more than R1 million p.a., equating to R1.3 billion in taxed assessed during 2021. While any loss in revenue is important to track and understand, it is useful to indicate the scale of the phenomenon relative to our revenue raising capacity. As indicated in Ch. 4 of the Budget Review, we expect to raise R280.6 billion in 2023/24 from taxpayers with taxable income greater than R1 million p.a.

2. It is not clear that the country will be losing or gaining future revenue from PIT. The most important contribution that National Treasury can make at this point is to fight corruption and promote tax morality and confidence in the country, and to ensure that public finances stabilize, in order to lay the foundation for strong inclusive growth. Restoring growth is the most reliable determinant of increased tax bases.

Over the Medium-Term National Treasury aims to:

• Restore value-for-money in public expenditure, particularly through spending reviews.

• Make it as simple and as easy as possible to comply with tax requirements, as SARS did with automatic assessments over the last years.

• Increase the probability of detection of non-compliance, which is one of the main reasons behind rebuilding SARS and an increase in their budget allocation, and

• Broaden tax bases to lower tax rates, as high tax rates offer a strong incentive not to comply.

National Treasury is not currently considering any specific taxes to compensate for fluctuations in the tax base. Moreover, there are no new policy announcements or proposals that aim to prohibit or discourage taxpayers from leaving. Indeed, exchange controls have been relaxed over the last 2 years – to enhance South Africa’s position as an investment destination and to lower the cost of business. From a policy perspective, we are trying to reconcile our provisions with the commercial reality of more globalised operations and careers that include stints in numerous tax jurisdictions – notwithstanding the challenges posed by Covid 19. From a tax perspective, the objective is to ensure that the appropriate tax is paid for any assets that are transferred abroad. Some of the measures that had been in placed have become outdated as a result of exchange control reforms. As a result, the tax provisions regarding foreign remunerative work and pre-retirement pension withdrawals on cessation of tax residence have undergone significant reform in the last 5 years.

Reply:

a) No payments were made to Kelotlhoko Consulting Services. The successful bid was cancelled before any contract could be signed with Kelotlhoko Consulting Services.

b) The tender was re-advertised on the 10th of March 2023 with a closing date of 31st March 2023.

END

Reply:

According to the Information received from SAFCOL

1. The SA Forestry Company (SAFCOL) SOC Ltd has not entered into joint venture contracts with any companies in the last five years. Strategic partnerships are part of the company’s growth strategy; the joint ventures opportunities are currently in the identification and selection process.

a) N/A

b) N/A

2. N/A

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1) The turnaround time to fix a dispatched work order is 7.5 hours and for auditing a meter that is flagged as a low buyer, it is seven days.

Customers across all areas are classified into various categories, each with its own threshold per month. The threshold for identifying low buyers in this area, is R300 per month. This customer on average buys R50 electricity a month.

Eskom experienced a high volume of faults over this period and the customer in question falls within the lower buyer category and further investigation had to be conducted. The investigation has been concluded, and it revealed that the cable to the premises was stolen. The cable has been replaced and the supply was restored on 3 April 2023.

(2) Alfred Chatbot is working. In case of a downtime, the problem gets fixed within a reasonable timeframe, so as not to inconvenience our customers. Each case is assessed according to the need of the request and differs per circumstance.

(3) As stipulated in question 1, it is also dependent on a number of factors such as investigations that need to be conducted. The referred to community has since had their cable replaced as at 3 April 2023.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(a) 126 030 appeals were received from the rejected applications.

(b) To assess funding eligibility NSFAS is reliant of third parties such as:

• Department of Home Affairs (DHA) – to confirm applicants’ identity and parental information,
• South Africa Social Security Agency (SASSA) – SASSA beneficiaries are automatically funded.
• South African Revenue Services (SARS) – to confirm household income, and others such as credit bureaus.

Reply:

The table in the Annexure responds to a, b, c, d, e(i), e(ii). and e(iii)

Thank You.

PQ 424 Ms D Kohler (DA) to ask the Minister of Communications and Digital Technologies, NW463E

 

ANNEXURE: Response to Parliamentary Question 424

Reply:

The 2019 Integrated Resource Plan (IRP) provides for participation of State-Owned Companies (SOCs) and the private sector to provide generation capacity currently and in the foreseeable future. Through the 2019 IRP, Government procures power from independent power producers who play a significant role in the provision of power to the national grid as Eskom. The Department of Mineral Resources and Energy (DMRE) continuously models the future generation outlook as part of the IRP review and the degree that private sector will contribute to security of supply.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The report titled, The Mental State of the World in 2022 (third report), from Sapiens Labs, is based on responses from 407,959 across 64 countries. The second report of 2021 has an equally small sample size of 223,087 respondents across 34 countries. The reports do not indicate how many persons responded per country, however, the sample size of these reports represent a very small fraction of the population of the countries from which respondents were sourced. Even if the total number of respondents were from South Africa only, the sample size is still too small and the results of the reports can therefore not be generalized to the entire population of South Africa. We nevertheless provide a response to the honourable member’s questions.

a) The Department has prioritised mental health in view of the burden of diseases associated with mental illnesses. The upstream determinants of mental health cut across responsibilities and mandates of a number of sectors and the NDoH collaborates with other Departments in Government and NGOs such as Higher Health and the SA Federation for Mental Health on a number of aspects related to promoting mental health including activities aimed at combating stigma.

b) Future plans are aimed at expanding prevention, advocacy and stigma combating activities. This will entail working with a wider range of partners in line with the strategies articulated in the National Strategic Plan for Non-Communicable Diseases 2022-2027 and the Mental Health Policy Framework and Strategy 2023-2030.

END.

Reply:

I have been advised by the SABC as follows:

The SABC Sales division uses various standard trading models with associated payment plans to commercialise inventory and generate revenue. In the case of unsold inventory for prime and shoulder time, the SABC offers advertisers who pay upfront an 86% discount or a 700% exposure deal in order to boost sales revenue. The exposure deal implies that advertisers who buy exposure and pay upfront for, example, R100 from the SABC get value of R700 or an 86% discount.

The respective models are mutually agreed to by the client and the SABC based on the nature of the requirements and deals, and the revenue generated is used for various business operations.

Thank You.

 

PQ 46: Hon.D Kohler (DA) to ask the Minister of Communications and Digital Technologies, NW 46E

 

Reply:

In response to question (1) and (2) above I want to advise Honourable Denner that the process that she is referring to in question (3) will assist my office in establishing whether:

(1) The certain individual referred to declared his/her interest in the Fund or anywhere else, and

(2) The involvement of the specified person constitutes a gross conflict of interest or not.

(3) (a) An appointment process for a qualified institution to undertake the process is on its final stages.

(b) I will know once the appointment process has been finalized.

(c) I cannot determine the finalization date at this point, however I want the process to be finalized before end of May 2023.

(i) Yes, it is envisaged that the process will be completed, and

(ii) Yes, I will present the report to the Portfolio Committee on Employment and Labour.

Reply:

According to the feedback received from the Department of Sport, Arts and Culture:

(a) Yes, public consultations were conducted before the names were submitted to the South African Geographical Names Council as follows: Brooksnek on 12 October 2022, Fort Beaufort on 31 October 2022, and Somerset East on 14 November 2022. These public consultation meetings were advertised in the Daily Despatch, Isolezwe lesiXhosa, and Hartland newspapers. All these meetings supported the three name changes.

(b) No polls were held before the name changes were considered. This is not provided for in the South African Geographical Names Act 118 of 1998.

(c) No feasibility studies were conducted before the name changes were considered. This is not provided for in the South African Geographical Names Act 118 of 1998.

Reply:

1. Yes, there was communication to effect that the position of the CEO will not be filled on a permanent basis due to considerations of the future organisational structure of BBI post the acquisition of BBI by Sentech. For this reason, the position is filled on a short-term contract basis with the approval of the Minister.

2. No, there is no deadline set for appointment of the permanent CEO because the future organisational structure of BBI post the acquisition of BBI by Sentech will dictate what happens to the CEO position.

Thank You.

PQ 309: Hon.Z Majozi (IFP) to ask the Minister of Communications and Digital Technologies, NW323E

 

 

 

 

Reply:

I have been advised by SITA as follows:

1. Vandalism and theft of private sector operator infrastructure as well as that of State-owned Enterprises (SOEs), that have partnerships with SITA through contracted services, have been one of the biggest challenges, negatively impacting delivery of ICT services to government. These acts of vandalism and theft manifest as follows:

a) Overhead routes are targeted, where wooden poles are vandalised and stolen leaving optic fibre cables damaged.

b) Equipment facilities at various network sites are vandalised and batteries stolen, that negatively impact backup power that mitigates against load sheading or loss of power.

c) Rail infrastructure is targeted for various metals and other material, thereby damaging optic fibre cables that use the rail infrastructure routes.

d) Underground infrastructure routes are targeted through manholes for copper and other metals thereby damaging optic fibre cables. The incident that affected access to government websites on 8 February 2023 was related to this type of vandalism and theft.

There have been various interventions as follows:

a) SITA has been working with organisations owning the infrastructure to ensure speedy restoration of services to government.

b) Implementation of service improvement interventions with organisations owning the infrastructure, in the form of establishing alternative routing to improve the already existing layers of redundancy.

c) The South African Police Service (SAPS) and private security companies have been engaged through the relevant processes to address these acts of vandalism and theft. This is through frequent monitoring of targeted areas and investigations to hopefully apprehend those responsible.

(2) SITA has been in communication with its shareholder department, the DCDT, on these challenges and the required interventions to address these matters with the relevant stakeholders.

 

Thank You.

PQ 287: Hon. Z Majozi (IFP) to ask the Minister of Communications and Digital Technologies, NW298E

 

Reply:

According to the information received from the Department of Sport, Arts and Culture:

(a) Notwithstanding the fact that the Department did not appoint Mr. Tembe as the CEO of the national orchestra for the main reason that we do not get involved with the operations of the organization. It is important to note that diversity and representation are important factors in promoting equity and inclusion in most of our sectors given our history. This therefore should be applied in the orchestra where many Africans were marginalized. In this context, Mr. Tembe’s appointment as CEO of the Mzansi National Philharmonic is a positive step towards promoting diversity in the leadership of organisations. Therefore, his appointment helps to address historical imbalances and promote greater diversity and representation within the orchestra and the wider orchestral fraternity where African are less represented.

(b) Companies have always developed internal measures to deal with situations like this. It is common practice for officials in companies to declare their interests to avoid potential conflicts of interest. The Board of Mzansi National Philharmonic has appointed a diverse and experienced artistic planning committee which advises the board on funding of artistic entities. Furthermore, Mr. Tembe recuses himself on funding related to the three established orchestras of Durban, Joburg and Cape Town, as he also leads two of those.

Reply:

The NHLS has confirmed that all four positions are filled with the following specific positions details:

a) The Chief Financial Officer was appointed on a five-year contract: The appointment was effective from 01 January 2023.

b) A permanent Head of Supply Chain was appointed: The appointment was effective from 01 August 2022.

c) A permanent Facilities Manager was appointed: The appointment was effective from 01 August 2018.

d) The Chief Information Officer was appointed on a five-year contract: The appointment was effective from 01 January 2020.

END.

Reply:

National Treasury will be engaging with the South African Local Government Association (SALGA) on its concerns, as it is not necessarily correct that a municipality will lose revenue, especially if there is greater economic activity as a result of more secure electricity to business and households.

Further, households are being encouraged to use and move to solar energy as part of the government's deliberate attempt to reduce the demand for energy that is causing the load-shedding crisis. In the absence of such efforts, more pressure on the grid could result in grid collapses which would be more detrimental to municipal finances. Therefore, participating in this initiative may benefit municipalities as a result of a "payback scheme". By feeding excess energy back into the grid, customers can provide stored excess energy at lower rates than Eskom at peak times.

National Treasury has observed that many municipalities adopted tariffs that are not cost-reflective, which in essence means they are not recovering the full cost of providing electricity in the first place. To make the tariff more affordable, municipalities need to eliminate inefficiencies in the service value chain. The changing energy sector and its impact on municipal services must also be considered when setting tariffs. Energy conservation and efficacy must be facilitated and enforced in municipal consumption (across all services). Municipal operations should align with the decline in traditional electricity purchases by buying less from Eskom. It is also necessary for municipal strategy to re-align any earlier resolutions to flat rate selected areas with national policy, which limits the supply of basic water and electricity to 50 kilowatt hours of electricity and 6 kiloliters of water for indigent consumers.

The National Treasury is currently undertaking research on establishing norms and standards for electricity surcharges. This is in line with section 8 of the Municipal Fiscal Powers and Functions Act, 2007. This Act gives the Minister of Finance the power to prescribe mandatory national norms and standards for regulating municipal surcharges on electricity. The National Treasury is also working on identifying supplementary or replacement revenue sources for electricity surcharges as part of this ongoing research.

Considering the fiscal and economic risks posed by loadshedding, there is a need for further research into: 1) the implications of local trends in municipal finances; 2) how the municipal electricity business can adjust; and 3) how to minimize the adverse fiscal and economic impacts that energy sector reforms could have.

The National Treasury’s 2021 State of Local Government Finances report found that 165 municipalities were in financial distress at the end of 2020/21. Revenue management was the most prevalent factor contributing to financial distress. Moreover, many municipalities fail to adopt funded budgets, which means they will not be financially sustainable even if they remain within their budgets. This implies that they lack credible financial management. Those indicators are early warning signs of dysfunctional councils in the future.

In addition to issues that are leading to dysfunctional councils, our analysis shows that municipalities are diverting the LGES free basic provision to other initiatives, mainly paying salaries and a generous system of benefits for employees.

Once the research and engagements with SALGA are concluded, National Treasury will respond to the budgetary challenges via the annual budget process.

Reply:

I have been advised by the Department as follows:

A project team comprising of representatives from the State-owned entities namely; the State Information Technology Agency (SITA), Broadband Infraco (BBI), Sentech and the Department was established. The project team is finalising the technical designs across all provinces and these will feed into the implementation plan which will be finalised before the end of the current financial year (2022/23). The department has been engaging various stakeholders (National, Provincial and Local governments) to present the project and solicit input in terms of the sites that will require connectivity. ICASA is also engaging the telcos (who are the recipients of the recently auctioned spectrum) on the Social Obligations Connectivity as per the ITA (Invitation to Apply) conditions. The Implementation of Phase 2 is planned to commence in the next financial year (2023/24) after budget confirmation.

The relevant details on the roll-out are attached herewith as Annexure A.

Thank You.

PQ 310: Hon.Z Majozi (IFP) to ask the Minister of Communications and Digital Technologies,

Reply:

We do not expect the greylisting by the Financial Action Task Force (FATF) to have any effect on any institutions implementing a Green Finance Taxonomy (GFT). The GFT is an important pillar in the comprehensive approach of reducing the carbon intensity of the South African economy. The primary purpose of the GFT is to provide market clarity for green/environmentally sustainable activities, thus reducing market risks. The GFT is a voluntary market tool and was established on 1 April 2022. While the Carbon Tax sets a price for emissions to help businesses fully internalize the costs of their activities, the GFT sets out those projects, investment and assets which are required to reduce the carbon intensity of companies (and thereby reduce their emissions). The GFT adopts international best practice in recognition of the fact that the capital required for investments into ‘green assets’ (as is the case generally) comes from both domestic and international sources.

In any case, as noted in National Treasury’s statement on the FATF greylisting: there are no items on the action plan that relate directly to the preventive measures in respect of South Africa’s financial sector. This reflects the significant progress that South Africa’s financial sector supervisors have made in the application of a risk-based approach to the supervision of banks and insurers. National Treasury therefore expects that the grey-listing will have limited impact on payments, broader financial stability or broader inward investment, including the use of the green finance taxonomy for green investment.

Reply:

I have been advised by the department as follows:

1.(a)	Destination	See attached Annexure A
(b)	Total Costs	R 3 932 531.49
(i)	Accommodation	R 1 144 763.13
(ii)	Travel (International flights)	R1 918 800.35
(iii)	Other costs (road transport and VIP lounges)	R 868 968.01
(aa)	Total costs in respect of Minister Stella Ndabeni-Abrahams	R 1 620 661.01
	Accommodation	R 530 502.63
	Travel (International flights)	R 797 093.45
	Other costs (road transport and VIP lounges)	R 293 065.20
		-
(aa)	Total costs in respect of Minister Khumbuzo Ntshavheni	R 1 835 961.26
	Accommodation	R 513 778.56
	Travel (International flights)	R 934 207.03
	Other costs (road transport and VIP lounges)	R 387 975.67
(bb)	Total costs in respect of Deputy Minister Pinky Kekana	R 218 838.31
	Accommodation	R 38 452.80
	Travel (International flights)	R 82 938.36
	Other costs (road transport and VIP lounges)	R 97 447.15
(bb)	Total costs in respect of Deputy Minister Philly Mapulane	R 257 070.64
	Accommodation	R 62 029.14
	Travel (International flights)	R 104 561.51
	Other costs (road transport and VIP lounges)	R 90 479.99
2.	Total cost incurred for domestic flights	R 1 381 782.95
(a)	Minister Stella Ndabeni-Abrahams	R 684 705.78
(a)	Minister Khumbuzo Ntshavheni	R 328 875.00
(b)	Deputy Minister Pinky Kekana	R 112 450.17
(b)	Deputy Minister Philly Mapulane	R 255 752.00

 

Thank You.

Reply:

Kindly refer to Figure 1.6 of the Budget Review 2023.

Reply:

The process in the recruitment of Chief Executive Officers (CEOs) is not different between Provinces. As all appointments of CEOs across provinces are guided by the Policy on the Management of Public Hospitals that amongst others, makes provision for the criteria pertaining to minimum qualifications, relevant experience and generic qualities required for appointment to the position of hospital CEO (at all levels). This was introduced by Minister of Health in terms of sections 3(1)(c) and 23(1) of National Health Act, 2003, (Act No. 61 of 2003), after consultation with the National Health Council in August 2011.

In line with the above Policy, the Gauteng Provincial Department of Health has informed the Minister that the Chief Executive Officer positions in the Province, are advertised in the National Media (newspaper) and the e-Recruitment platform (Gauteng professional job centre)

The selection process entails the interviews, presentation on the technical exercise prepared by the Selection Committee. Recommended candidates are subjected to the Senior Management Service competency assessment or developmental assessment and vetting processes depending on the level of the position. The department conducts reference checks from the referees provided and conduct suitability checks with the current and previous employers. The recommended candidates are also required to complete Security Vetting Forms, a process facilitated by the State Security Agency.6 The outcome of the above processes is considered by the Executive Authority (EA) in appointing Chief Executive Officers (CEO).

END.

Reply:

With regards to university lecturers, the Council of a university is assigned the role of an employer as per the Higher Education Act (Act 101 of 1997) as amended, the Department is not assigned this role. The critical skills list identifies scarce skills which are deemed as critical, it also serves as a reference document when appointing foreign nationals. Universities seeking to appoint foreign nationals are required to approach the Department with a request and motivation to process the appointment, this is after they have conducted internal recruitment processes and are unable to attract and appoint a suitably qualified South African national. They then approach specific professional registration bodies/entities to verify the prerequisites before a candidate can be appointed. In cases where there is no Professional body to register with, universities approach the Department with a motivation for support for a critical skills visa application.

The Department may then support the motivation and request the Department of Home Affairs to consider the university’s request/incumbents application in terms of the requisite policies and legislation of the Department of Home Affairs which governs critical skills visas. Ultimately, it is the prerogative of the Department of Home affairs to grant or not to grant work permits.

Reply:

Due processes have been followed in order to officialise the South African Sign Language (SASL). Milestones in this process include the Constitutional Review Committee receiving sixty-seven (67) submissions in 2016. Two of these submissions proposed an amendment to section 6 (1) of the Constitution to include South African Sign Language as an official language. Furthermore, a petition by Deaf SA calling upon the National Assembly to effect a constitutional amendment in order to recognise SASL as the twelfth official language of the Republic was tabled in the Assembly on 10 October 2016. The Constitutional Review Committee considered the submissions and Parliament adopted the recommendation that allowed for an amendment of section 6 (1) of the Constitution.

During the State of the Nation Address (SONA) in February 2020, the President noted that; “following the recognition of SASL as a home language by the Department of Basic Education in 2018 and recommendation by the Committee, that SASL be included as the 12th official language, government is now poised to finalise the matter.”

Soon after the SONA, the Department of Justice and Constitutional Development embarked on the Constitutional Amendment process. However, due to the Covid-19 pandemic, there were delays in finalising the matter. The Bill was introduced to Parliament in January 2023 and is currently before the National Assembly.

Reply:

I have been advised by SAPO as follows:

1. The total number of call centre agents employed by Post Office is currently 55.

2. SAPO plans are to consolidate all call centres within Post Office into one platform. This includes revising the organisational structure, upgrading the Call Centre IT systems, should funds permit.

3. The Post Office is currently right-sizing throughout the company due to volume drops and call centre will be affected one way or another. The right-sizing will ensure customer calls are not compromised and the acquisition of another telephone management system will enhance capacity more than adequately.

Thank You.

 

PQ 243 Ms D Kohler (DA) to ask the Minister of Communications and Digital Technologies, NW247E

Reply:

The budget process involves making many trade-offs, including between different priorities. As stated in the 2023 Budget Review, the extension of the COVID-19 SRD grant and the inflationary increases to social grants cost R65.3 billion. Given the priorities and pressures facing the 2023 Budget and Medium-Term Expenditure Framework, it is clear that there was (and is) limited fiscal space to accommodate the increase in the COVID-19 SRD grant values. Under spending or savings from 2022/23 do not go through the next year because of the large budget deficit. In addition, a broader agreement on the future of the COVID-19 SRD grant is required, including the financial implications of the proposed change, and how to finance it.

Reply:

I have been advised by SABC as follows:

i) The News Channel has been running since 2019 and no additional budget will be required as the activities will be accommodated within current resources. ii) Yes, the channel is expected to attract income through advertising and partnerships.

iii) No funding is required.

 

Thank You.

PQ 418 Ms D Kohler (DA) to ask the Minister of Communications and Digital Technologies

 

 

Reply:

a) (i) (aa) NSFAS embarked on hosting workshops with accommodation providers in all nine provinces. The aim of these workshops was to clarify the accommodation cap and encourage accommodation providers to register their properties on the NSFAS accommodation portal to accredit the properties and subsequently place students.

(ii) The sessions culminated in accommodation providers submitting applications for 48 375 beds. To date 13 030 have been accredited.

b) Input has been received for consideration (non-adoption to recommendations), however, this does not mean concurrence.

c) There should not be a shortfall as NSFAS has emphasized that students must be placed in student accommodation that is within the R45 000 cap.