Questions and Replies

Reply:

As mentioned previously the dti officials, including role-playing staff in the Ministry have attended study group meetings of the African National Congress. The participation of officials from the dti were limited to responding to technical queries e.g related to legislation. Upon invitation, officials only attended when they were in Cape Town for other purposes.

 

Reply:

The South African Revenue Service (SARS) is the legislatively empowered controlling entity for statistics on the importation and exportation of goods. Exercising this control entails record-keeping, verification, publication and analysis of trade data. SARS does not ordinarily disclose the names of either importing or exporting companies to the Department of Trade and Industry. SARS considers this information to be highly confidential and, in acting within the confines of the Customs and Excise Act, Act 91 of 1964 as amended, SARS may only disclose such information in very limited circumstances.

 

 

Reply:

(a) The top five exports by South Africa to Mozambique in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H261000: Chromium ores and concentrates	R 3,412,980,607
H271600: Electrical energy 1000 kwh	R 3,320,872,456
H720241: Containing mass more than 4 per cent of carbon	R 2,304,527,424
H271012: Light oils and preparations	R 1,714,658,103
H260300: Copper ores and concentrates	R 744,247,536

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Mozambique in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

 

Products	Value in 2016
H271111: Natural gas	R 3,108,880,405
H271600: Electrical energy 1000 kwh	R 2,644,697,897
H271012: Light oils and preparations:	R 1,232,553,978
H760511: Of which the maximum cross-sectional dimension exceeds 7 mm:	R 455,280,852
H670490: Other wigs, false beards and eye lashes and products of human hair	R 409,189,161

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Zambia in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H271012: Light oils and preparations:	R 2,077,475,340
H843149: Parts for boring or sinking machinery	R 712,322,890
H271600: Electrical energy 1000 kwh	R 686,494,530
H870421: Motor vehicles for the transport of goods not exceeding 5t	R 541,189,908
H310290: Other, including mixtures not specified in the foregoing subheadings	R 498,243,927

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Zambia in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H740311: Cathodes and sections of cathodes	R 720,415,928
H740811: Of which the maximum cross-sectional dimension exceeds 6 mm	R 475,504,693
H520100: Cotton, not carded or combed:	R 269,585,968
H720221: Containing mass more than 55 per cent of silicon	141,168,698
H854449: Insulated copper wire	115,810,930

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Malawi in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H870421: Motor vehicles for the transport of goods not exceeding 5t	R 163,157,897
H210690: Other food preparations not elsewhere specified	R 133,314,749
H390210: Polypropylene	R 121,339,450
H380893: Herbicides, anti-sprouting products and plant-growth regulators	R 94,252,581
H271012: Light oils and preparations:	R 91,965,903

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Malawi in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value (in Million Rands)
H090240: Other black tea (fermented) and other partly fermented tea	R 394,218,297
H240120: Tobacco, partly or wholly stemmed or stripped	R 60,900,308
H170199: Other cane or beet sugar containing flavouring or coloring matter	R 40,980,620
H400129: Other latex rubber products not pre-vulcanised	R 35,945,579
H441299: Other products of plywood, veneered panels and similar laminated products	R 26,991,161

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Angola in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H843143: Parts for boring or sinking machinery of subheading 843041 or 843049	R518,496,654
H880230: Aeroplanes and other aircraft, of an unladen mass exceeding 2 000 kg but not exceeding 15 000 kg	R360,413,163
H110313: Maize meal (corn):	R312,714,968
H271012: Light oils and preparations:	R205,893,309
H240220: Cigarettes containing tobacco:	R186,216,177

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Angola in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H270900: Petroleum oils and oils obtained from bituminous minerals, crude	R18,556,018,256
H710231: Unworked or simply sawn, cleaved or bruted	R20,209,823
H732690: Other articles of iron and steal	R7,162,152
H843143: Parts for boring or sinking machinery of subheading 843041 or 843049	R7,159,374
H847990: Parts of Machines and mechanical appliances not else specified	R6,918,335

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Botswana in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H710231: Unworked or simply sawn, cleaved or bruted	R7,633,268,686
H271012: Light oils and preparations	R7,176,487,201
H271600: Electrical energy 1000 kwh	R1,646,527,967
H260400: Nickel ores and concentrates	R1,148,293,100
H870421: Motor vehicles for the transport of goods not exceeding 5t	R1,133,167,489

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Botswana in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H710231: Unworked or simply sawn, cleaved or bruted	R1,770,508,887
H854430: Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships	R1,558,813,338
H283620: Disodium carbonate	R527,498,394
H020230: Boneless Meat of sheep or goats, fresh, chilled or frozen	R285,871,610
H391729: Tubes, pipes and hoses, and fittings therefor of other plastics	R213,685,874

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to the United Republic of Tanzania in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H720839: Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated of a thickness of less than 3 mm	R358,002,635
H870421: Motor vehicles for the transport of goods not exceeding 5t	R341,876,063
H480810: Corrugated paper and paperboard, whether or not perforated	R185,115,280
H720711: Semi-Finished products of iron or non- alloy steel of rectangular (including square) cross-section, the width measuring less than twice the thickness	R148,088,917
H390210: Polypropylene:	R134,075,221

Source: www.thedti.gov.za

(b) The top five imports by South Africa from the United Republic of Tanzania in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H090240: Other black tea (fermented) and other partly fermented tea	R63,291,536
H610910: T-shirts, singlets and other vests, knitted or crocheted of cotton	R53,910,173
H090111: Coffee (Not decaffeinated)	R51,046,486
H710231: Unworked or simply sawn, cleaved or bruted	R38,273,794
H240220: Cigarettes containing tobacco	R19,419,945

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Swaziland in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H271012: Light oils and preparations:	R1,626,086,619
H271600: Electrical energy 1000 kwh	R862,164,842
H100590: Unspecified maize	R487,222,526
H330210: preparations used in the food or drink industries	R360,638,988
H870421: Motor vehicles for the transport of goods not exceeding 5t	R230,763,011

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Swaziland in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H330210: Mixtures of odoriferous substances used in the food or drink industries	R4,501,258,031
H382490: Unspecified chemical products	R1,845,841,148
H170113: Cane sugar specified in Subheading Note 2 to this Chapter	R1,772,053,266
H170114: Other cane sugar	R760,772,322
H620462: Trousers made of cotton	R437,624,046

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Namibia in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H271012: Light oils and preparations	R2,261,295,005
H870421: Motor vehicles for the transport of goods not exceeding 5t	R2,108,908,680
H271600: Electrical energy 1000 kwh	R1,527,564,830
H300490: Unspecified Medicaments	R862,922,173
H170114: Other cane sugar	R750,358,210

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Namibia in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H220300: Beer made from malt	R715,769,582
H010229: Unspecified live bovine animal	R624,109,615
H710231: Unworked or simply sawn, cleaved or bruted	R445,852,448
H790120: Zinc alloys	R274,928,114
H030355: Jack and horse mackerel	R269,110,278

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Zimbabwe in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H271600: Electrical energy 1000 kwh	R2,000,576,962
H100590: Unspecified maize	R1,534,766,472
H271012: Light oils and preparations	R752,936,660
H870421: Motor vehicles for the transport of goods not exceeding 5t	R558,812,658
H150710: Crude oil, whether or not degummed	R530,622,383

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Zimbabwe in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H750110: Nickel mattes	R2,229,094,553
H260400: Nickel ores and concentrates	R1,366,860,404
H240120: Tobacco, partly or wholly stemmed or stripped	R769,540,454
H253090: Minerals not elsewhere specified	R175,025,246
H261000: Chromium ores and concentrates	R124,332,647

Source: www.thedti.gov.za

Reply:

(a) The top five exports by South Africa to Lesotho in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H271012: Light oils and preparations	R1,880,742,274
H100590: Unspecified Maize	R497,459,187
H110313: Maize meal	R355,693,456
H853890: Unspecified Parts	R298,432,918
H252329:Unspecified cement	R242,309,390

Source: www.thedti.gov.za

(b) The top five imports by South Africa from Lesotho in 2016; listed at 6-digit HS Code level and in accordance with Rand value; were the following:

Products	Value in 2016
H853620: Automatic circuit breakers:	R353,169,564
H940190: Seats (excluding those of heading 9402)	R313,721,058
H620342: Mens or boys suits made of cotton	R273,217,737
H510529: Wool not Combed	R212,947,375
H610910: T-shirts made of cotton	R201,385,719

Source: www.thedti.gov.za

Reply:

I am advised that there is an import duty on PET resin (the raw material input) of 10% as well as on PET preforms and bottles, of 15%. The reason for the duty on both parts of the value chain is to support local manufacturing in South Africa.

-END-

Reply:

Entity	Response
National Consumer Commission (NCC)	R 3 588 534.00
National Consumer Tribunal (NCT)	PMSA Quantity Surveyors was paid R354 255.00 for work performed by them which included transaction advising services as well as quantity surveying services. The total monetary value of the space planning and reconstruction of the NCT’s offices tender was R2 414 338.31.
National Metrology Institute of South Africa (NMISA)	Deloitte Consortium was appointed for R 14 667 271.00 to perform and assist the organization with the following modules (a) Module 3: PPP Inception; (b) Module 4: PPP Feasibility Study; (c) Module 5: PPP Procurement; (d) Module 6: Managing the PPP Agreement; Of the total appointed price of for R 14 667 271.00 only R6 284 009.74 has been paid as the project is still at Module 4

Reply:

The Department of Trade and Industry (the dti) and the Department of Mineral Resources (DMR) conducted consultations at a Ministerial and Senior Government Official Level regarding the development of a Transformation Charter under Section 100 (2) of the Mineral and Petroleum Resources Development Act of 2002 (MPRDA).

Minister Davies and Minister Zwane had engagements to discuss the process and alignment of the Reviewed Mining Charter to the Broad-Based Black Economic Empowerment Act 53 of 2003 as Amended by Act 46 of 2013 (B-BBEE Act).

Furthermore, the dti provided guidance and clarity in understanding the methodologies and dynamics of the B-BBEE Legislation.

In light of the above consultations, the end result of the consultative process led to the DMR issuing the Reviewed Mining Charter under Section 100 (2) of the MRPDA.

Reply:

Response from the Department

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

Neither the department nor its entities made any sponsorship towards the events as mentioned.

2. (a) (i) (ii)

No staff members from the department or its entities attended any events linked to the specified conferences.

3. (a) (i) (ii) (aa) (bb)

Neither the department nor its entities made any sponsorship towards the events as mentioned.

4. (a) (i) (ii)

No staff members from the department or its entities attended any events linked to the specified conferences.

Reply:

a) The complete list of countries and territories where there are no trade attachés is attached.

Reply:

a) No institutions are funded by way of ‘discretionary funding’.

b) No dti entities fund institutions by way of ‘discretionary funding’.

(i)(aa)(aaa)(bbb)(bb)(cc)

The department works to promote industrialisation and transformation and respond to unemployment, poverty and inequality. The strategic direction of this work is derived from the National Development plan and is underpinned by outcome 4, outcome 7 and outcome 11. In supporting the implementation of the higher-impact industrial policy action plan, the department conducts research on industrial development, growth and equity through the following institutions.

• The Industrial Policy Support Fund (IPSF), is a fund administered by the Industrial Development Corporation (IDC). The fund is utilised for a range of industrial development research programmes and projects to support the work set out in successive iterations of the Industrial Policy Action Plan.
• Trade and Industrial Policy Strategies (TIPS) is a non-profit organisation, which undertakes a wide range of economic and industrial research, training and support work for government-wide initiatives. This work is not ‘discretionary’ but conforms in general to the research needs and imperatives of the department as part of governments industrialisation effort and as set out in successive iterations of the Industrial Policy Action Plan. All TIPS expenditure is subject to external independent audit as required under the Companies Act. Funds have been transferred to TIPS on an annual basis as set out in Table 1 from 2013.
• NEDLAC Trade and Industry Chamber: TIC is a NEDLAC’s Chamber that is responsible for processing legislation with a potential socio-economic impact prior to introduction to Parliament. In 1998, TIC established the Fund for Research into Industrial Development, Growth and Equity (FRIDGE) with the objective of funding research into the competitiveness of local industries and firms in order to access international markets and attract investment into the South African economy. The initial funding was provided by the Japanese government. When the Japanese funding ended in 2003, the dti was tasked to provide support because of the type of research produced, which was in line with its mandate the MoA was terminated in September 2014

(a) ii) No international institutions are funded for the purposes of research and

development.

(a) bb) Table 1: Institutions of research and development funded by the Department of Trade and Industry

Institutions	PERIOD & TOTAL AMOUNT
	2014-2015	2015-2016	2016-2017
Industrial Policy Support Fund (IPSF), IDC	R16 000 000.00	R10 046 000.00	R14 111 000.00
Trade & Industrial Policies Strategies (TIPS)	R 14 570 000.00	R 22745 684.21	R26 220 771.93
NEDLAC Trade & Industry Chamber (funded through IDC)	R 724 000.00	R 1 982 919.00	R 0
Grand total	R 31 294  000.00	R 34 774 603.21	R 40 331 771.93

Reply:

Category: Agriculture	2013	Category: Agriculture	2014	Category: Agriculture	2015
	R'million		R'million		R'million
Semi-milled or wholly milled rice, whether or not polished or glazed {kg}	6,281	Other Wheat and meslin	5,004	Other Wheat and meslin	6,016
Other Wheat and meslin:	3,702	Semi-milled or wholly milled rice, whether or not polished or glazed {kg}	4,390	Semi-milled or wholly milled rice, whether or not polished or glazed {kg}	5,361
Other Cuts and offal, frozen	2,038	Other Cuts and offal, frozen	2,282	Cuts and offal, frozen:	1,763
Mechanically deboned meat {u}	712	Mechanically deboned meat {u}	728	Other Maize (corn):	1,673
Of barley {kg}	591	Sunflower seeds, whether or not broken {kg}	632	Other Live bovine animals	1,063

The top five products by categories and rand value imported are as follows:

Category: Fishing	2013	Category: Fishing	2014	Category: Fishing	2015
	R'million		R'million		R'million
Other shrimps and prawns {kg}	508	Other shrimps and prawns	551	Other shrimps and prawns	486
Hake (merluccius spp, urophycis spp) {kg}	224	Jack and horse mackerel (trachurus spp) {kg}	313	Jack and horse mackerel (trachurus spp) {kg}	410
Jack and horse mackerel (trachurus spp) {kg}	208	Other Fish, frozen (excluding fish fillets and other fish meat of heading 0304)	243	Other Fish, frozen (excluding fish fillets and other fish meat of heading 0304):	315
Other Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs	141	Other Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs	215	Sardines (sardina pilchardus, sardinops spp), sardinella (sardinella spp), brisling or sprats (sprattus sprattus) {kg}	275
Other Fish, frozen (excluding fish fillets and other fish meat of heading 0304):	138	Hake (merluccius spp, urophycis spp) {kg}	197	Other {kg} or Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs	252

Category: Mineral products	2013	Category: Mineral products	2014	Category: Mineral products	2015
	R'million		R'million		R'million
Petroleum oils and oils obtained from bituminous minerals, crude	142,050	Petroleum oils and oils obtained from bituminous minerals, crude	175,840	Petroleum oils and oils obtained from bituminous minerals, crude	98,451
Petroleum oils and oils obtained from bituminous minerals (excluding crude)	62,574	Petroleum oils and oils obtained from bituminous minerals (excluding crude)	63,309	Petroleum oils and oils obtained from bituminous minerals (excluding crude)	59,296
Petroleum gases and other gaseous hydrocarbons	3,089	Petroleum gases and other gaseous hydrocarbons:	4,579	Petroleum gases and other gaseous hydrocarbons:	4,413
Coal; briquettes, ovoids and similar solid fuels manufactured from coal	2,839	Coal; briquettes, ovoids and similar solid fuels manufactured from coal:	2,864	Coal; briquettes, ovoids and similar solid fuels manufactured from coal:	2,632
Electrical energy 1000 kwh	1,500	Electrical energy 1000 kwh	2,358	Electrical energy 1000 kwh	2,603

Category: Forestry	2013	Category: Forestry	2014	Category: Forestry	2015
	R'million		R'million		R'million
Other live plants (including their roots), cuttings and slips; mushroom spawn	53	Other live plants (including their roots), cuttings and slips; mushroom spawn	60	Other live plants (including their roots), cuttings and slips; mushroom spawn	61
Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant {u}	35	Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant {u}	35	Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant {u}	36
Other plants and Unrooted cuttings and slips {u}	29	Other plants and Unrooted cuttings and slips {u}	28	Other plants and Unrooted cuttings and slips {u}	27
Other {kg} or Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached	17	Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached	16	Roses {kg}	18
Roses {kg}	14	Roses {kg}	15	Other Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached	18

Category: Manufacturing	2013	Category: Manufacturing	2014	Category: Manufacturing	2015
	R'million		R'million		R'million
Machinery and Equipments	249,936	Machinery and Equipments	254,208	Machinery and Equipments	277,722
Petroleum Products	212,143	Petroleum Products	249,404	Petroleum Products	167,697
Chemicals	92,594	Chemicals	101,459	Chemicals	111,975
Vehicles	88,509	Vehicles	88,866	Vehicles	91,389
Metal Products	30,196	Clothing	32,272	Metal Products	39,007

Reply:

The Department of Mineral Resources did not have any consultation with the Broad-Based Black Economic Empowerment (B-BBEE) Commission regarding the Reviewed Mining Charter of 2017. However, the Department of Mineral Resources has consulted with the Department of Trade and Industry on the definition of “Black Person”. The Department advises all departments/Charter Councils to adopt the definitions used in the BEE Act 53 of 2003 as amended by Act 46 of 2013.

“Black People is a generic term which means Africans, Coloureds and Indians –

(a) who are citizens of the Republic of South Africa by birth or descent; or

(b) who became citizens of the Republic of South Africa by naturalisation –

 (i) before 27 April 1994; or

 (ii) on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date;”

Reply:

The department has supported the referred company. This support was for an investment project valued at R7.6 Million to expand and improve machinery and equipment through the manufacturing Competitiveness Enhancement Programme.

Reply:

Response from the Department

The department did not make use of any transactional advisors for the above mentioned period.

Response from the Entities

Entity	b	b(i)	b(ii)	(iii)	(iv)
Companies and Intellectual Property Commission (CIPC)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
Companies Tribunal (CT)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
National Consumer Commission (NCC)	Transaction advisors for tenders were appointed	Big Innovations Business Group (Pty) Ltd	Opt-Out Register tender	R 3 588 534.00	R1 098 745.45 has been paid
National Consumer Tribunal (NCT)	Transaction advisors for tenders were appointed	PMSA Quantity Surveyors (Pty)Ltd	Space planning and reconstruction of the NCT’s offices	R2 414 338.31	R354 255.00 has been paid
National Credit Regulator (NCR)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
National Empowerment Fund (NEF)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
National Gambling Board (NGB)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
National Lotteries Commission (NLC)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	Transaction advisors for tenders were appointed	Delloitte Consortium	NMISA T0008 (14-15) – Appointment of a transaction advisor for NMISA accommodation and equipment – Public Private Partnership Project	R14 667 271.00	R6 284 009.74 has been paid
National Regulator For Compulsory Specifications (NRCS)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
South African Bureau of Standards (SABS)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable
South African National Accreditation System (SANAS)	No transaction advisors for tenders were appointed	Not applicable	Not applicable	Not applicable	Not applicable

Reply:

Response (a)

Following consultations with institutions such as the Competition Commission, the BEE Commission, a threshold of R100m was determined based on Combined Annual Turnover and/or Combined Asset Value on 08 November 2016. The Minister subsequently issued Government Gazette No. 40410, Notice 748 of 2016, thresholds for Major B-BBEE Transactions for a 30-day public commentary period. Amongst others, the rationale for the R100m was that it will ensure all transactions by mainly large entities (those with annual revenue greater than R50m) in terms of the Codes are covered. However, with the exception of small and medium entities which if their combined annual turnover is below R100m, would be excluded and consequently for monitoring and reporting purposes would go un-tracked. Furthermore, the Notice highlighted the Documentary Requirements for Registering a Major B-BBEE Transaction.

In addition, the majority of the comments received during the public commentary period focused on the use of the combined Turnover and/or Asset Value not being an appropriate measure to determine a threshold. The argument is that if the combined Turnover and/or Asset Value are used, any transaction, regardless of the actual size of the transaction, when the proposed threshold based on the parties’ assets or turnover is exceeded, will have to be registered. This would have effectively meant that all changes in the shareholding traded on the Johannesburg Stock Exchange for listed companies, will have to be measured to identify the compliance impact on the Ownership element (Code 100). Should such transaction have an impact as mentioned above, it should be reported to the BEE Commission. This process would have an unintended consequence to assess the Ownership scorecard impact for each trade and to be then reported. Following this, the dti refined the principle by basing the measurement on the “Transaction Value” as this is more appropriate considering the context of what needs to be registered. The Threshold is R25 million based on Transaction Value which will be registered by parties to the Transaction as a collective. As mentioned above, the threshold was thus lowered to R25million in order to proactively alleviate any potential fronting practices even at small and medium sized enterprise level.

The registration of the mentioned deals is not with the Broad-Based Black Economic Empowerment Council but rather a Broad-Based Black Economic Empowerment Commission. The role of the B-BBEE Presidential Advisory Council is to advise the President and government on the design and implementation of the B-BBEE policy, amongst others.

Furthermore, the rationale for maintenance of a registry for major B-BBEE transactions is a matter of transformation imperative which is ideal for qualitative and quantitative valuable records keeping; data of these transactions might also be used to measure the extent of transformation in South Africa especially with regard to the Ownership and Control elements.

The threshold will enable the B-BBEE Commission to have a broad overview of all the transactions that are taking place in the country and to deal with potential fronting practices.

Response (b)

The B-BBEE Commission has been established in 2015 under the ambit of the dti to oversee the implementation of B-BBEE Legislation within South Africa.

The B-BBEE Regulations published on 06 June 2016, outlines the procedures of engaging with the B-BBEE Commission as well as indicates the process to follow when registering a Major Transaction with the B-BBEE Commission.

The B-BBEE Commission has already issued an Explanatory Notice 01 of 2017 indicating the documentation requirements in order to register a Major B-BBEE Transaction.

The B-BBEE Commission has competent staff members and the capacity to manage the process of registering all Major B-BBEE Transactions including those that will be registered retrospectively. The retrospective transactions are for registering only and not necessarily for assessment. However, the B-BBEE Commission has the discretion to assess any Major B-BBEE Transaction to ensure that it is aligned to B-BBEE Legislation. These include voluntarily registrations of any Major B-BBEE transaction consistent with the threshold, concluded before 24th October 2014 with the B-BBEE Commission.

Reply:

a) There are no formal terms of reference. The Department of Trade and Industry (the dti), through its 14 sectors desks routinely establishes working groups or task teams with industry stakeholders to address critical issues in sectors of the manufacturing economy. The Poultry Task Team (PTT) was established in January 2017 to seek a collaborative approach to resolving issues in the primary production section of the poultry sub-sector, taking into consideration economic data and factors across the entire value chain. In so doing to design, develop and deploy as and where appropriate, collaborative measures to resolve these issues. The PTT includes representatives of government departments (Trade and Industry; Economic Development and Agriculture Forestry and Fishing); representatives of the South African Poultry Organisation and labour (Food and Allied Workers Union) as well as the Industrial Development Corporation and technical experts from the not for profit, section 21 company; Trade and Industrial Policy Studies (TIPS), contracted by the dti to undertake this work. From time to time government departments represented on the Task Team meet separately to formulate government approaches to the work and as and where appropriate brief other government agencies such as the International Trade Administration Commission (ITAC). In all instances government officials take into consideration the separate constitutional mandates and functions of the government departments and agencies which work together to achieve optimal socio-economic outcomes for South Africa and safeguard the integrity and independence of regulatory institutions such as ITAC. Government also seeks to secure collaborative arrangements with private sector entities. This process also recognises the independence of these entities.

b.i) The Task Team has met on 5 occasions,

b.ii) on the following dates: 16 February 2017; 09 March 2017; 06 April 2017; 16 May 2017 and 08 June 2017

c.i) Government has met with the Association of Meat Importers and Exporters (AMIE); provided a formal briefing to the Commissioners of the International Trade Administration Commission after receiving a request to do so, briefed both the Select Committee on Trade and International Relations and briefed and participated in the public hearings of the Portfolio Committee on Trade and Industry. In the latter instance all the Submissions made by a wide variety of stakeholders have been factored into the work of government and in its engagements with stakeholders, including those represented on the Task Team.

c.ii) The dates of these engagements are:

Association of Meat Importers and Exporters – 15 February 2017 and 11 May 2017 (EDD and the dti)

International Trade Administration Commission – 13 February 2017 and 13 June 2017 (the dti)

Select Committee on Trade and International Relations – 01 February 2017 (EDD .the dti and DAFF)

Portfolio Committee on Trade and Industry – 23 March 2017; 02 May 2017 and 09 May 2017 (the dti)

This list does not include bilateral meetings which may have been held by individual government departments with companies in the poultry sector including on-site inspections and visits.

d) In keeping with similar collaborative engagements in other sectors of the economy the Task Team does not come up with a set of ‘findings’. An example would be in the steel sector where there is extensive and ongoing, long-term work and collaborative engagements with the private sector. In this regard details of the ongoing work of government and with respect to its engagements in the Poultry Task Team, are a matter of public record since they were presented to Parliament on two occasions in considerable detail. Specific policy announcements by government on particular policy interventions such as the recently announced Agro-processing Incentive will be made, as and when this work on each measure has been completed, and as and where appropriate.

Reciprocal, private sector measures and interventions to save jobs, increase investment and exports, secure empowerment objectives and so forth, have and will be made by the private sector as and when such institutions consider it appropriate to do so. In this regard government respects the commercial and legal independence of industry associations, trade unions and companies, including with respect to those matters with which government may not be in agreement and whether or not they may have or may not have been discussed in the Task Team.

Reply:

 

Entity	1(a)	1(b)	(b)(i)(aa)	(b(i)(bb)	bb(ii)(aa)	bb(ii)(bb)
Companies and Intellectual Property Commission (CIPC)	N/A	N/A	N/A	N/A	N/A	N/A
Companies Tribunal (CT)	N/A	N/A	N/A	N/A	N/A	N/A
Export Credit Insurance Corporation (ECIC)	Yes	N/A	Chairperson	01/07/2009	Chairperson	30/11/2016 (extended until the recruitment process to appoint the new chairperson has been finalised)	Five (5) members	One (1) female
			Executive Director	01/09/2013	Executive Director	31/08/2016 (re-appointed for another three years: 01/09/2016-31/08/2019)
			1x Non-Executive Director	01/12/2013	1x Non-Executive Director	30/11/2016 (extended until the recruitment process to appoint new non-executive directors has been finalised)
			1 x National Treasury Representative	01/08/2014	1x National Treasury Representative	31/07/2017 (extended to serve another term: 01/08/2017-31/07/2020)
			1x Department of Trade and Industry Representative	01/06/2017	1x Department of Trade and Industry Representative	For as long as he holds the same position in the Department
National Consumer Commission (NCC)	N/A	N/A	N/A	N/A	N/A	N/A
National Consumer Tribunal (NCT)	N/A	N/A	N/A	N/A	N/A	N/A
National Credit Regulator (NCR)	N/A	N/A	N/A	N/A	N/A	N/A
National Empowerment Fund (NEF)	Yes	N/A	Chairperson	01/12/2015	Chairperson	30/11/2018	Six (6) members	Five (5) females
			3x Non-Executive Trustees	16/12/2009	3x Non-Executive Trustees	02/11/2017 (served three terms)
			2x Executive Trustees (CEO & CFO)	01/07/2013 (CFO)	2x Executive Trustees (CEO & CFO)	CFO-For as long as she holds the same position in the entity
				26/09/2012 (CEO)		30/06/2019
National Gambling Board (NGB)	N/A	N/A	N/A	N/A	N/A	N/A
National Lotteries Commission (NLC)	Yes	N\A	Chairperson	02/12/2009	Chairperson	01/12/2014 (Term extended until the recruitment process to appoint a chairperson has been concluded)	Eight (8) members	Four (4) females
			1x Non-Executive Board Member	01/09/2012	1x Non-Executive Board Member	14/09/2017
			4x Non-Executive Board Members	01/04/2017	Non-Executive Board Members	31/03/2022
			1x Executive Board Member (Commissioner)	15/09/2012	1x Executive Board Member (Commissioner)	14/09/2017 (re-appointed from 01/10/2017-30/09/2022)
			1x Department of Trade and Industry Representative	01/04/2017	1x Department of Trade and Industry Representative	For the duration of her current position held at the dti
National Metrology Institute of South Africa (NMISA)	Yes	N/A	Chairperson	14/05/2008	Chairperson	13/05/2013 (Re-appointed for second term from 14//05/2013-30/09/2018)	Eleven (11) members	Three (3) females
			4x Non-Executive Directors	14/05/2008	4x Non-Executive Directors	13/05/2013 (Re-appointed for second term from 14//05/2013-30/09/2018)
			2x Non-Executive Directors	14/05/2013	2x Non-Executive Directors	13/05/2018
			1x Non-Executive Director	17/06/2015	1x Non-Executive Director	28/02/2020
			1x Non-Executive Director	01/10/2017	1x Non-Executive Director	30/09/2020
			Executive Director (CEO)	01/09/2013	Executive Director (CEO)	31/08/2018
			1x Department of Trade and Industry Representative	14/05/2008	1x Department of Trade and Industry Representative	13/05/2013 (Re-appointed for second term from 14//05/2013-30/09/2018)
National Regulator For Compulsory Specifications (NRCS)	N/A	N/A	N/A	N/A	N/A	N/A
South African Bureau of Standards (SABS)			Chairperson	26/08/2014	Chairperson	25/08/2019	Nine (9) members	Five (5) females
			3x Non-Executive Director	26/08/2009	3x Non-Executive Director	25/08/2014 (Re-appointed for second term from 26/08/2014-25/08/2019)
			2x Non-Executive Directors	26/08/2014	2x None-Executive Directors	25/08/2019
			Executive Director (CEO)	07/09/2009	Executive Director (CEO)	06/09/2014 (Re-appointed for second term from 07/09/2014-06/09/2019)
			1x Department of Trade and Industry Representative	26/08/2014	1x Department of Trade and Industry Representative	25/08/2019
South African National Accreditation System (SANAS)	Yes	N/A	Chairperson	01/12/2008	Chairperson	30/11/2013 (Re-appointed for second term from 01/12/2013-30/11/2018)	Twelve (12) members	Four (4) females
			9x Non-Executive Directors	01/12/2008	9x Non-Executive Directors	30/11/2013 (Re-appointed for second term from 01/12/2013-30/11/2018)
			Executive Director (CEO)	01/06/2010	Executive Director (CEO)	31/05/2015 (Re-appointment for second term from 01/06/2015-31/05/2020)
			1x Department of Trade and Industry Representative	04/07/2012	1x Department of Trade and Industry Representative	30/11/2013 (Re-appointed for second term from 01/12/2013-30/11/2018)

(2) with reference to entities that do not have boards in place, (a) who is responsible for appointing the board and (b) when will a board be appointed?NW2009E

Entity	2(a)	2(b)
Companies and Intellectual Property Commission (CIPC)	N/A	Establishing legislation does not cater for the Board
Companies Tribunal (CT)	N/A	Establishing legislation does not cater for the Board
National Consumer Commission (NCC)	N/A	Establishing legislation does not cater for the Board
National Consumer Tribunal (NCT)	N/A	Establishing legislation does not cater for the Board
National Credit Regulator (NCR)	N/A	Establishing legislation does not cater for the Board
National Gambling Board (NGB)	Minister	The entity is placed under administration. The amended legislation does not cater for the Board
National Regulator For Compulsory Specifications (NRCS)	N/A	Establishing legislation does not cater for the Board

Reply:

According to the information received from National Lotteries Commission-

Response:

(a) (i) As at 19th June 2017, there were a total of 5953 applications awaiting adjudication relating to the 2015 call for applications.

(ii) The total amount requested by applicants is approximately R11,3 billion.

(b) The NLC anticipates to have completed the backlog by the 31 July 2017.

(c) In order to expedite the processing of these applications, the following interventions are in place:

Appointment of full time Distributing Agency members for all sectors (Sport and Recreation still to be finalised) resulting in increased rate of adjudication.

Administrative processing of non-compliant applications according to delegated authority framework.

Restructuring of the Grant Funding Division aligned to the revised business model of the Open Call system.

Re-engineering of the application process to avoid backlogs in future.

Modernisation of the information technology (IT) platform.

Reply:

(a) the dti operates Foreign Economic Offices in 48 missions (against 120 total SA Missions and Embassies situated globally) which are located in 44 countries around the world. These offices are located based on the market prioritization of the Department with 13 located in Africa, 14 in Europe, 12 in Asia, 6 in the Americas and 3 in the Middle East. Currently the Department employs 30 South African diplomatic officials, in addition to 62 Locally Recruited Personnel. The Department in collaboration with Dirco is also going through a detailed exercise on how the two Departments can collaborate to ensure the optimal sharing of resources abroad.

(b) The location of the dti offices is driven by largely 2 factors which are (i) the country’s economic priorities informed by various policies that include Industrial Policy Action Plan (IPAP), the Integrated National Export Strategy (INES), National Investment Promotion and Facilitation Strategy, Trade Policy Strategy Framework amongst others and (ii) The allocation of available human and financial resources which require prioritisation of locations based on the biggest contribution to the fulfilment of the economic priorities as mentioned in (i).

Annexure to (b)

(i) South Africa’s Economic Priorities

• Industrial Policy Action Plan (IPAP)

The Industrial Policy Action Plan (IPAP) is guided by the vision of the National Development Plan and is also a key implementation component of the President’s Nine Point Plan. The policy provides guidance on priority industries for the industrialisation, economic growth and transformation of the South African economy. The priority industries as defined by IPAP, then guides the department in terms of regions and countries that offer potential for partnerships in the implementation of the IPAP. These partnerships are normally in terms of attracting foreign direct investments, technology transfer, opening of export markets and promotion of business partnerships between South African companies and their foreign counterparts.

• Integrated National Export Strategy (INES)

The Integrated National Export Strategy builds on IPAP to identify sectors, industries and services based on comparative and competitive advantages that best positions the country as an export economy. The process also ensures that South Africa can build on its competitive industries to better position its companies in the international export markets whilst ensuring that domestic competitiveness translates into international competitiveness.

Part of the implementation of INES is the prioritisation of products and markets that best offer the best export opportunity for South Africa and her companies in the international markets. The prioritisation of key products and markets also takes into account the various transformation policies of the countries which include support to Black Industrialist, Small and Medium Enterprises, Women and Youth Enterprises. the dti will continue to leverage market opportunities to benefit South Africa’s economic development priorities in targeted markets and building on its Market Diversification Strategy to ensure that South Africa’s exports to conventional markets stabilise and ensure higher export growth to emerging markets. The Foreign Economic Offices is crucial in its contribution towards increasing the demand for South African goods and services through market diversification, prioritisation and access and strengthening strategic export and investment promotion mechanisms through enhancing South Africa’s value-proposition. The variables eventually play a key role in the decision of the prioritisation of locations of the dti offices internationally.

(ii) Resource Allocation

Over the past few years the government has had to introduce a number of austerity measures within government departments with the aim to curb the increase in public expenditure. the dti has been affected by these measures which have meant the available resources to operate foreign offices have not grown with the increase in inflation and exchange rate related costs. For this reason, the Department has to frequently review its global footprint with the aim to locate in markets where the biggest return is possible based on the country’s economic priorities. The budget currently available to the Department mitigates against any further expansion of the dti’s global foot print of Foreign Economic Offices abroad.

Reply:

Response (a)(b)(i)(ii)(iii)

The Minister and Deputy Minister make use only of the security services offered in terms of the Ministerial Handbook. Such security services are provided only to the Minister and Deputy Minister and not family or staff members.

(aa) VIP Drivers/Protectors are appointed to provide security and driving services to the Minister/Deputy Minister.

(bb) The South African Police Services (SAPS) is responsible for the payment of such services.

(cc) These services comply with the provisions of the Ministerial Handbook.

(c) c(i) c(ii) c(iii) (aa) (bb) (cc)

The Head of the dti’s listed entities do not make use of security services paid for by the state for themselves, nor their families nor any of their staff members.

Reply:

Response for the Department and Entities

No approval is granted for employees to conduct business with the state. In addition the “Standard Bidding Document SBD 4” covers the declaration of interest and the requirement stipulated therein eliminate the risk of anyone doing business with the state.

Reply:

(a) During the 2016 calendar year, there were 9033 patent applications (provisional and complete) filed at CIPC and 4307 complete applications granted in 2016. Provisional patent applications contain only the specification of the invention and are valid for only 12 months in order to allow the inventor to work further on their invention. They do not proceed to grant. Complete patent applications contain both the specifications and claims of the invention. The said application will proceed to grant once it complies with all relevant formal requirements. The granted patent is valid for 20 years if renewed annually and the prescribed renewal fee is paid.

(b) In terms of the South African Patent Act 57 of 1978, as amended, the complete patent applications must be filed by a Patent Attorney or Patent Agent. Therefore, CIPC does not have data based on the racial demographics as applicants can either be a natural person or juristic person.

Reply:

(1) (a) The socio-economic impact assessment (SEIAS) on the proposed National Liquor Amendment Bill, 2016 (Bill) was conducted. The Bill together with the SEIAS report will be submitted to Cabinet for introduction into Parliament.

(2) (a) The SEIAS on the final Liquor Policy was never requested for submission to NEDLAC.

(b) The SEIAS on the Bill was requested by the Business constituency, but not by the Executive Director for all NEDLAC constituencies. In order to facilitate the conclusion of the NEDLAC report, the dti sent the SEIAS report to the Executive Director for discussion at NEDLAC. A date for the meeting is still to be set.

 

 

Reply:

The Black Industrialist Policy was approved by Cabinet to support black entrepreneurs in the manufacturing sector of the economy, who have the potential to grow, invest and create jobs. These entrepreneurs must have identified an opportunity, own industrial capacity and are providing long term strategic and operational leadership to their business. The scheme focuses on sectors we believe are the corner stones of the country’s economy now and in the future as identified in the IPAP.

The names of the approved black industrialists will be published along with all the beneficiaries of incentive programmes for 2016/17 following the annual audit by the Auditor-General.

Reply:

46 Black Industrialists have been approved for funding. As with all dti incentive schemes the Black industrialist scheme is a cost sharing grant. Of the approved black industrialists, 13 have been paid on a cost sharing basis towards capital investment costs, post investment support and business development services to the tune of R212 Million. Of the paid projects 1443 jobs have been supported.

Reply:

The MCEP is one of the key programmes of IPAP to encourage manufacturers to upgrade their production facilities in a manner that sustains employment and maximises value addition in the short to medium term. The Agro Processing sector was the highest beneficiary of the programme, resulting in a number of economic benefits including higher quality products, improved customer responsiveness, greater productivity and improved profitability. Most retained jobs and indirect jobs from the support emanated from this sector. Given the importance of Agro processing to revitalise rural economies, its relative low barrier to entry for new entrants, the need to provide post drought Agri input market access, the dti has prioritised competitiveness enhancement support for this sector. Unlike the previous MCEP which only catered for expansions, the support will enable both new and existing firms to invest in better technology and expand their facilities in a manner that retains and creates new job. Agro Processing Support Scheme will be funded from the additional 2017 MTEF allocation for manufacturing incentives.

The MCEP comprised of two sub-programmes namely production incentive and the Industrial Loan facility managed by the dti and IDC. The industrial loan facility was re-launched in September 2016 and continues to support qualifying manufacturing companies.

Reply:

Each candidate was shortlisted based on their skills, experience and expertise.

Reply:

the dti has facilitated numerous investments since 2012 and we are not aware of any of these companies divesting since then.

The General Motors decision is due to a commercial decision by its Head-Quarters in terms of its future global operations. Such divestment may also based on restructuring of the companies, mergers & acquisitions and general restrictive global market conditions.

Invest SA, offers as part of its services investor facilitation and aftercare and we are paying particular attention on the retention and maintenance of investment in the country. We have engaged with the steel sector, companies such as AMSA, Highveld, SC Smelters and well as companies in the renewables sector.

Reply:

(a) What amount did the National Empowerment Fund’s sponsorship of the Black Business Council (BBC) event on 15 May 2017 cost?

The NEF approved sponsorship of R150 000 including VAT, totalling R171 000.

(b) Which person(s) or organisation approached the BBC for this sponsorship?

The Acting CEO of the BBC approached the NEF for the sponsorship. BBC correspondence to the NEF dated 11 May 2017 states that:

“We have invited the Minister of Finance, Honourable Malusi Gigaba to be our guest speaker and engage the Black Business Council fraternity on a number of issues.”

The BBC therefore approached the NEF, as an entity with the mandate of driving the implementation of black economic empowerment policies, to be part of an engagement with the Minister of Finance on issues affecting black entrepreneurs in South Africa.

(c) What are the full relevant details of the processes followed in expending the amount in this way?

The NEF approved the sponsorship in accordance with its internal policies.

Reply:

 

Neither the department nor its Entities procured any services or made any payments to Bell Pottinger or any other public relations firm.

Reply:

(1) (a) The budget allocation was (i) R17.5 million and (ii) R18.4 million which was allocated for operational expenditure only. No funds were provided for infrastructure.

      (b) None

(2) (a) No

      (b) The external bulk electrical works tender has been issued on 6 April 2017 and will commence shortly.

Reply:

(1) No funding has been allocated to the West Coast Technical and Vocational Education and Training College over the past three financial years.

(2) No site visit was conducted as the organisation has not been funded.

(3) As mentioned above no amount has been transferred to the West Coast Technical and Vocational Education and Training College over the past three financial years.

Reply:

Entity	1(a)	1(b)	1(c)	(i)	(ii)
Companies and Intellectual Property Commission (CIPC)	The Chief Executive Officer post does not exist	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
Companies Tribunal (CT)	The Chief Executive Officer post does not exist	The Chief Financial Officer post does not exist	The Chief Operating Officer post does not exist	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Consumer Commission (NCC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Consumer Tribunal (NCT)	The Chief Executive Officer post does not exist	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Credit Regulator (NCR)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently vacant	The position has been vacant for 1 year 9 months	The vacancy is due to funding constraints
National Empowerment Fund (NEF)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
National Gambling Board (NGB)	The Chief Executive Officer post is currently vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	The position has been vacant since April 2014	The Entity is currently under Administration.
National Lotteries Commission (NLC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently vacant	The Chief Operating Officer post is currently not vacant	The post was vacated from 31 March 2017	The incumbent resigned
National Regulator For Compulsory Specifications (NRCS)	The Chief Executive Officer post is currently vacant	The Chief Financial Officer post is currently vacant	The Chief Operating Officer post is currently vacant	CEO – 5 Months CFO – 3 Months COO – Post created but never filled	CEO – Resignation CFO – Resignation COO – Never filled
South African Bureau of Standards (SABS)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
South African National Accreditation System (SANAS)	None	None	None	Not applicable	Not applicable

(2) have the vacancies been advertised; if so, (a) were interviews done and (b) on what date will the vacancies be filled;

Entity	2	2(a)	2(b)
Companies and Intellectual Property Commission (CIPC)	Not applicable	Not applicable	Not applicable
Companies Tribunal (CT)	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	Not applicable	Not applicable	Not applicable
National Consumer Commission (NCC)	Not applicable	Not applicable	Not applicable
National Consumer Tribunal (NCT)	Not applicable	Not applicable	Not applicable
National Credit Regulator (NCR)	The vacancy has not been advertised	Not applicable	Not applicable
National Empowerment Fund (NEF)	Not applicable	Not applicable	Not applicable
National Gambling Board (NGB)	The vacany has been advertised	The interviews are not yet done	After proclamation of the National Gambling Amendment Act
National Lotteries Commission (NLC)	Not applicable	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The vacancy has been advertised	Interviews are planned to take place in May 2017	The vacancy is expected to be filled by August 2017
National Regulator For Compulsory Specifications (NRCS)	CEO - post adverstised CFO - Post advertised COO - post not advertised	CEO – Interviews are not yet done CFO – Interviews were done	Relevant processes to address the vacancies are underway
South African Bureau of Standards (SABS)	Not applicable	Not applicable	Not applicable
South African National Accreditation System (SANAS)	Not applicable	Not applicable	Not applicable

(3) (a) what is the total number of persons who are currently employed in the specified positions in an acting capacity, (b) for what period has each person been acting in each position and (c) has any of the specified persons applied for the positions?

Entity	3(a)	3(b)	3(c)
Companies and Intellectual Property Commission (CIPC)	Not applicable	Not applicable	Not applicable
Companies Tribunal (CT)	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	Not applicable	Not applicable	Not applicable
National Consumer Commission (NCC)	Not applicable	Not applicable	Not applicable
National Consumer Tribunal (NCT)	Not applicable	Not applicable	Not applicable
National Credit Regulator (NCR)	No one is acting in the position	Not applicable	Not applicable
National Empowerment Fund (NEF)	Not applicable	Not applicable	Not applicable
National Gambling Board (NGB)	Not applicable	Not applicable	Not applicable
National Lotteries Commission (NLC)	Not applicable	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The process to appoint an acting Chief Financial Officer is underway, the previous incumbent ‘s last day of employment was on 31 March 2017	Not applicable	Not applicable
National Regulator For Compulsory Specifications (NRCS)	2 people (CEO and CFO)	CEO – 5 Months CFO – 3 Months	Recruitment process not yet finalised
South African Bureau of Standards (SABS)	Not applicable	Not applicable	Not applicable
South African National Accreditation System (SANAS)	Not applicable	Not applicable	Not applicable

 

Reply:

1. With reference to his reply to question 473 on 15 March 2017,

a) Who requested the payments?

In the recent past organised business was fragmented in South Africa and the Department of Trade and Industry was crucial in the facilitation of the merger of the business structures to form Business Unity South Africa (BUSA). The formation was critical to government because it created a platform for government to engage unified business. The Department further committed to fund the BUSA during their establishment period.

Following the split in BUSA in 2011, the Department deemed it necessary to continue the support of organised business in the form of the Black Business Council (BBC) as it was a new formation that carried the interests of its membership that had a direct interest linked to the economic transformation mandate of the Department.

The BBC approached the Department to present areas of collaboration and to request funding for specific projects that relate to the Black Economic Empowerment and the Black Industrialist Programme. Before any considerations for funding were made, the department requested the BBC to present a business plan detailing projects and costing.

The Department assessed the business plan and once satisfied commenced a process of obtaining an approval from National Treasury

in accordance with paragraph 6.3.1 of the Treasury Regulations.

The National Treasury approved the creation of a transfer payment budget line for the BBC within Budget Vote 36 of the Department. It also important to highlight that a transfer payment is defined as an un-requited transaction that differs from the procurement of goods and services and is appropriated separately as per the Appropriations Act.

b) Was there a contract in place?

Following the approval of the transfer payment budget line by National Treasury, the Department entered into a Memorandum of Agreement (MoA) with the BBC.

c) What are the details of the services that the Black Business Council (BBC) delivered? And

The MoA with BBC details the areas of collaboration in respect to the implementation of the Black Industrialists programme. According to the agreement, Projects consist of the Policy Advocacy, Regulatory Framework development, the Resource Centre and the Customer Relations Management component.

Furthermore, the BBC is required to provide reports based on approved yearly project plans. The BBC is further required to provide Audited Financial Statements.

d) What (i) competitive and (ii) open processes were followed in awarding the BBC the specified amount?

The payment to the BBC is an un-requited transaction that differs from the procurement of goods and services. As such, no procurement process is required.

2) Whether the BBC has been audited by (a) his department and/or (b) the Auditor-General; if not, why not in each case; if so, what are the relevant details in each case?

(a) & (b) The department does not perform a separate audit for the transfer payment to the BBC as it is included as part of the annual statutory audit by the Auditor General. Furthermore, in exercising oversight over the transfer payment, an MoA is in place.

 

Reply:

1. Neither the Department nor its Entities participated in the dialogue with the President and thus no amount was spent.

2. Neither the Department nor its Entities participated in the auction of the souvenirs and thus no items were purchased.

Reply:

No services were procured and no payments were made to (a) Mr Mzwanele Manyi, (b) the Progressive Professionals Forum, (c) the Decolonisation Fund.

d(i)(ii)(iii)(iv)(v)(vi)

Over the past 3 years, a transfer payment of R7 million was paid to the Black Business Council as appropriated. The objective of the transfer payment was to strengthen and promote advocacy and the roll-out of the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 and in particular, the Black Industrialist Programme.

Reply:

(a) (b) (c) (d) (i) (aaa) (bbb) (bb) 

Minister Davies

No vehicles were purchased for Minister Davies during the 2014-15 and 2015-16 financial years. New vehicles were purchased in the 2016-17 financial year due to the fact that the existing vehicles had exceeded 120 000 kilometers and were deemed to be in violation of the security regulation and transport policy for Executive Authorities.

Make	Model	Price	Purchase Date
Toyota Fortuner	2016	R625 718.94	28 July 2016
Toyota Fortuner	2016	R623 788.94	28 July 2016

(a) (b) (c) (d) (ii) (aa) (aaa) (bbb) (bb)

Deputy Minister Masina

No vehicles were purchased for Deputy Minister Masina for the 2014-15 financial years. The vehicles below were purchased in the 2015-16 financial year. No other vehicles were purchased after 1 April 2016.

Make	Model	Price	Purchase Date
BMW X5	2014	R966 112.14	27 November 2015
BMW X5	2015	R900 309.48	22 December 2015

 

Reply:

(a) Reasons for delay in adjudication

In the 2015 Call for Applications, the NLC received approximately 22 000 requests for funding. The NLC is responsible for providing administrative support to the respective Distributing Agencies (DAs) who are entrusted with adjudicating these applications. The administrative leg for this application has been completed and it is still awaiting adjudication by the Charities Distributing Agency (CDA). The current CDA members are part time, and only adjudicate when they are able to sit, which depends on availability of the members.

(b) The application was received on 12 November 2015.

(c) Of the 22000 applications received, Edenvale Child Welfare is the 16931 application in the queue.

Reply:

(1)(a) The matter was settled between the NCR and ABSA Bank Ltd on the basis that ABSA pay an administrative fine.

(1)(b) A fine of R10 000 000.00 (Ten million Rands) was imposed.

(2)(a) The consumers will benefit as follows – ABSA to:

    (i) Write-off the cost of credit on credit agreements.

   (ii) Restructure repayments for consumers who are currently in arrears.

   (iii) Rescind any civil court judgments against consumers at own cost.

    (iv) Instruct the credit bureaus to remove adverse listings from the credit records of consumers.

(2)(b) ABSA is required to submit to the NCR an audit report confirming compliance with the terms of the agreement and once the audit report is submitted, the NCR will inform the affected consumers.

(3) The alleged contravention is not a criminal offence; therefore no criminal charges were pursued.

 

Reply:

1.  The investigation into Satinsky 128 (Pty) Ltd (Satinsky) was finalised by the NCR. The NCR referred the case to the National Consumer Tribunal in October 2014. The matter has not been finally set down for a hearing, due to incomplete filing initially. In terms of the NCT current records the matter has lapsed and the process to reopen the matter is being initiated.

2. No criminal charges will be pursued. The contravention is not a criminal offense.

3. The matter is still pending at the NCT.

Reply:

The matter between NCR v Nedbank was referred to the National Consumer Tribunal on September 2015. Pleadings were due to close on 19 October 2015. The Respondent however, filed for a Condonation application on 22 January 2016 to extend the time period for the filling of its answering affidavit. The NCT is still considering the Application for Condonation which was rendered complete on 02 December 2016. The matter still needs to be set down for pre-hearing after the Condonation ruling is issued. The Tribunal anticipates the Condonation ruling being issued to the parties before the end of February 2017. The pre-hearing will be set down in April 2017 with the hearing set down for June 2017 subject to the availability of both parties.

The matter between NCR v Standard Bank was referred to the National Consumer Tribunal in July 2015. The matter has been set down for a hearing on 26, 27 and 28 July 2017. The judgment may be issued during August 2017.

Reply:

According to the National Credit Regulator -

The credit providers that offer the loans as stated above and are registered with the NCR are the following:

• Ithala Limited
• Risima Housing Finance Corporation
• VBS Mutual Bank