Questions and Replies

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane says the following:

“ In terms of section 2A (3) which states that: The Commission may, upon request by the Minister, board or on its own initiative in consultation with the board, conduct research on worthy good causes that may be funded without lodging an application prescribed in terms of this Act.

a) In compliance with section 2A (3) the NLC allocated and disbursed R 140 923 864,10. In addition to that, the NLC compiled a Report on COVID-19 Funding outlining the integrated response to Covid – 19 relief funds. The report is attached as Annexure A for reference.

b) The list of funded organisations and the amounts is attached as Annexure B.

c) The balance of unallocated funds amounting to R9 076 135,90 will be disbursed in the current financial year as the pandemic is still on-going and the Commission is assessing needs in relation to worthy good causes relating to the pandemic.

d) All the grants that were awarded under the Covid Relief Fund fell under the small grants category as such the reporting shall be done in terms of Regulation 10 of 2015 which states that:

“An applicant to whom a small grant is made must, at such period as may have been imposed at the time when a grant is made submit to the National Lotteries Commission a report detailing how the grant funds were used, together with all supporting invoices and any other relevant documents for the purposes of financial accounting.”

Considering the above, the NLC is awaiting reports from the beneficiaries for the Commission to compile a consolidated Monitoring and Evaluation Report.”

Attachments:

Annexure A

Annexure B

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Reply:

In terms of the Lotteries Act, the appointment of the new Chairperson of the NLC requires that Parliament must put recommendations to the Minister of Trade, Industry and Competition before a decision is made, following which the Minister must consider the matter and make an appointment. The matter of the appointment was referred to Parliament in November 2020. The Ministry awaits the recommendations from Parliament as required by the legislation.

The court proceedings referred to in the question relates to an entirely different issue, namely the appointment of an acting chairperson pending finalisation of a decision on the Chairperson.

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane advises as follows:

“ (1)(a) Venalor NPC applied to the National Lotteries Commission in the 2018 and 2020 financial years in terms of section 2A (4) Lotteries Act No 57 of 1997 as amended (“the Act”) and the application was adjudicated by the ACNHDA in terms of section 26 of the Act and related regulations.

The first application for the 2017/18 financial year was for an amount of R4 672 180.00 and the second application was awarded in the 2019/20 financial year for an amount of R2 292 300.00.

The National Lotteries Commission funded Venalor NPC to host the annual awards ceremony that recognise the contribution of South African female artist in their respective genres and facilitate a platform in which up and coming aspiring artists can have access to a larger audience and to perform alongside established artists in the industry in line with the funding focus areas.

(b) The funding covered amongst others workshops, marketing and communications, women summit, mbokodo awards and other logistical matters such as transport, security.

(2) The NLC conducted a site visit with regards to the grant for the R4 672 180.00 to ascertain whether funds are being used according to the conditions stated on the Grant Agreement. The site visit reports found that the funded organisations utilised the funds in line with the conditions of the grant. Following submission of a satisfactory progress report, the project has been closed.

The NLC conducted a site visit with regards to the grant for the R2 292 300.00 to ascertain whether funds were utilised in accordance with conditions stated in the Grant Agreement. To date the funded organisation has submitted a satisfactory interim progress report for the first tranche that was paid. The NLC continues to enforce the Grant Agreement.”

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission. The reply states that the NLC received “a formal anonymous complaint” relating to Mr Raymond Joseph having direct or indirect interest in eight NLC funded organisations. The NLC provided a list of the organisations, which did not contain the details of the alleged link. I have requested that such information be supplied and will prepare a supplementary reply after receipt of the information.

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Reply:

(a) The Department does not keep a register of all chicken suppliers. According to SA Poultry, there are 1 117 chicken and egg suppliers in South Africa, the vast majority of which would be South African owned.

(b) The Department does not keep a register of rice suppliers.

(c) It is not clear whether the question on car accessories is intended to refer to items that are solely ‘accessories’ i.e. dash covers, mirrors, car seat covers, phone mounts etc, for which details are not kept; or whether it covers auto components too. The Department has furnished me with the number of local component manufacturers they are aware of – once the question is clarified, the number can be provided.

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Reply:

The DTIC, together with the IDC and NEF developed a relief package for businesses covered by the recent unrest in parts of KZN and Gauteng and full details of the measures were made public shortly after they were finalised and further details were subsequently provided to Parliament through the Portfolio Committee on Trade and Industry, on 24 August 2021.

Funding was reprioritised from the budgets of the three entities and this was further supplemented by a fiscal transfer from the National Treasury. The components of the funding covered ddifferent kind of support, often as a ‘blended’ product comprising:

• Grants: this portion is not repayable and is normally granted based on need or developmental objectives being achieved
• Loans: granted at concessionary terms and it is typically for working capital, machinery, repairs to premises, fitment replacement, etc.
• Bridging finance: covers ‘cash-flow’ challenges until SASRIA payouts are made.

The Critical Infrastructure Reconstruction Programme aims to leverage investment by supporting damaged infrastructure. This is a cost-sharing grant of 50% of the total qualifying infrastructure costs with a maximum cap of R30 million.

The Manufacturing Competitiveness Enhancement Programme (MCEP) Economic Stabilisation Fund that provides funding to companies affected by the unrest and associated supply chain disruptions. This will be achieved through financing uninsured businesses not covered by insurance or those with funding insurance shortfalls. The fund offers concessionary funding through interest-free loans with a maximum investment of R50 million.

The NEF Economic Recovery Fund supports affected businesses in all sectors of the economy focused on manufacturing, retail and services businesses. The support targets building improvements and fittings for premises, replacement of machinery, equipment, commercial vehicles and replenishing stock and working capital shortfalls owing to supply chain disruptions. A maximum of R10 million in loan funding will be provided.

In particular, IDC Support Package totalling R1.5 billion from its own balance sheet, made up of R800 million developmental grants and R700 million concessionary loans. To focus the implementation efforts on the delivery of this package, the following essential institutional arrangements were put in place:

• Refined investment guidelines and simplified evaluation process.
• Multidisciplinary deal teams including Business Development Managers, Risk Analysts, and Legal Advisors who meet daily to drive transaction delivery.

Applications are approved by a special Exco committee, composed of IDC Divisional Executives and Senior Professionals, which meets daily.

IDC is also administering the dtic’s R400-million Manufacturing Competitiveness Enhancement Programme (MCEP) Economic Stabilisation Fund that supports manufacturing companies affected, including those impacted by supply chain disruptions. Fund offers concessionary funding through interest-free loans.

The IDC is participating in physical visits to the affected companies. Together with the dtic the IDC is conducting coordinated publicity events to ensure that the funding packages are well advertised to the affected enterprises. This includes roadshows, webinars, virtual and physical site visits to affected clients.

The IDC is also providing Post-funding Business Support to offer non-financial advisory support aimed at restoring the long-term resilience and competitiveness of the affected businesses.

On 24 August 2021, the Department provided information on the approvals made as at that date through the IDC and NEF funding. Since then, a number of further transactions have been approved. The Department will be releasing the updated figures within the next five days and I will provide a copy of the updated data in a supplementary reply.

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Reply:

The South African Government’s industrialisation and localisation policies aim to build and upgrade domestic production to supply domestic and foreign markets, support wider economic development and promote employment growth.

I draw the Honourable Member’s attention to the fact that localisation policies are not simply that of the DTIC. Localisation is a policy framework that enjoys resounding support among South Africans who recognize the need to industrialise our economy. It is the policy of the Administration and follows the commitment in the Manifesto of the ruling party to stronger localisation as a pillar of its industrial policy. The commitment to localisation is included in the Economic Reconstruction and Recovery Plan of government.

The approach on localisation has also been unanimously endorsed by the business, labour and community representatives at Nedlac. They represent a large number of firms and entrepreneurs, workers in different sectors of the economy and organisations made up of representatives of various community interests. Indeed the agreement at Nedlac specifically provides for a quantitative target and a list of sectors and products. In these circumstances, the consultations on the South African approach to localisation were at the appropriate level at which consultations on policy matters normally take place, namely with social partners and with other Government policy-makers.

I further draw the Honourable Member’s attention to local industrialisation policies of governments across the world, in both developed and developing countries. It is what governments do to enable achievement of national objectives and indeed there is today a growing consensus on the value of carefully targeted and well-implemented industrial policy measures. I will be happy to brief the Portfolio Committee in due course on these developments should the Committee so request. There is also a growing literature on the subject which is easily accessible to the public.

In respect of trade, the localisation policies are consistent with South Africa’s international trade obligations and building industrial capacity is the very purpose of the African Continental Free Trade Agreement in order to reduce the over-reliance by countries on the continent to imports of manufactured products from elsewhere in the world. The localisation policies followed by the SA government (with the support of business, labour and community organisations) represents inter alia the plan to build South Africa’s industrial capacity within the framework of the AfCFTA.

I also draw attention to the Policy Statement on Localisation for Jobs and Industrial Growth as well as the Trade Policy for Industrial Development and Employment Growth, available on the DTIC’s website.

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Reply:

The Economic Reconstruction and Recovery Plan, to which the DTIC contributed, sets out the overall approach by Government to boost exports, promote investment and create decent work opportunities as part of the response to Covid-19.

Within that framework, the Annual Performance Plan of the Department tabled in Parliament this year sets out a more detailed set of actions covering trade, investment and industrial development. This was further complemented by the package of measures announced recently to address the damage caused by the unrest in parts of KZN and Gauteng in early July 2021.

The work programme cover inter alia the following

• Progressing the work on the African Continental Free Trade Agreement, specifically focused on completion of a set target on rules of origin on industrial products; and conclusion of discussions on services.
• Implementing a number of sector growth plans, covering core industrial activities (steel and autos), food security (poultry and sugar) and consumer goods (clothing & textiles and furniture).
• Expanding levels of private sector investment in the economy to boost economic output, including through support to firms in implementation of pledges made at South African Investment Conferences.
• Improving the business environment through providing an efficient company registration service and addressing unnecessary regulatory requirements applicable in DTIC public entities;
• Promoting opportunities for a larger number of South Africans through competition and empowerment policies, which include the work of development finance institutions; and
• Supporting equitable development in different parts of the country through a new focus on district development and compiling economic information on each district municipality.

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Reply:

The CEO of the NRCS, Mr Mamaditse, has provided the Department of Trade, Industry and Competition (the dtic) with the following information.

(1) A case of fraud was detected in the NRCS in December 2020. The NRCS reports that it commissioned a full investigation of the matter which confirmed that fraud amounting to R4,501,488.21 was committed. The disciplinary process is underway and a criminal case has been opened. The NRCS insurers have been notified and are currently assessing the claim. The NRCS reports that it has also reviewed its procedures to mitigate the risk of this type of fraud recurring.

(2) Six hundred and seventy-two (672) illegally imported television sets were handed over to the NRCS on 4 July 2017. The NRCS reports that 641 were stolen and the theft was discovered in December 2018. A criminal case was opened. The NRCS Legal Services unit has been tasked with investigating the matter and is assisting the police investigation.

(3) (i) Losses Due to the Unrest in Durban

One of the NRCS rented warehouse in Durban was looted during the unrest and the full extent of the loss is still in the process of being determined. The warehouse was used to store Electro-technical, Automotive and Chemicals, Materials and Mechanicals products.

(ii) Reported and confirmed Losses over the past 12 Months, excluding the loss arising from looting in Durban.

Premises	a) Product	Quantity	b) Value
Port Elizabeth	Safety Shoe	21	R8 400
Port Elizabeth	Paraffin heaters	110	R55 000
Total			R63 400

The NRCS reports that it is actively addressing the challenges experienced with regard to products being stolen. To this end, the NRCS has appointed a panel of service providers to destroy non-compliant products. In addition, it advises that it has undertaken a review of its storage facilities and will shortly issue a tender to source more secure storage facilities.

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Reply:

I have been advised by the Commissioner of the National Lotteries Commission that the NLC has not funded the individual or the named company.

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Reply:

As indicated in the Localisation Policy Statement, in a society with extraordinary levels of unemployment and poverty, all efforts will need to be made to find commercially sustainable ways to create new jobs in the private sector, to complement what can be done through public employment opportunities. New job growth will be stimulated by demand for the products and services so produced – these can come from a combination of expanded domestic demand and increased levels of exports. To create jobs on scale, both these drivers of new private sector job growth must be pursued.

Localisation must focus on strategic industries, defined by their capacity to be labour-absorbing or providers of critical goods or significant export earners. Localisation can provide such strategic industries, as well as other infant industries, with the space and opportunity to develop and to become globally competitive. This strategy has been followed in a number of countries, including in East Asia, where advanced manufacturing sectors have flourished under a focused strategy to direct and focus demand for goods and services towards those produced locally. The drive to create competitiveness is thus key to ensuring that investment in localisation provides the long-term dividend the South African economy recovers.

The process followed to set a target for localisation and finalise a list of products involved inter alia research on import levels, a comparative analysis of global import levels in leading economies, a number of meetings with business executives in specific sectors or from firms in specific product markets, review of the Master Plans applicable for sectors, consideration of the products that have been designated by the state for local procurement by public entities in terms of applicable legislation and engagement with social partners at Nedlac, resulting in agreements on targets and products.

First, from June 2020, Government commenced discussions with a number of different business groups, such as the Consumer Goods Council of SA and CEOs of different sectors. Separate meetings were held inter alia with CEOs of the following sectors:

• Fast-food operators;
• Grocery retailers;
• Food and beverage manufacturers;
• Clothing, textile, footwear and leather retailers and manufacturers;
• Hardware retailers; and
• Construction companies.

Discussions also took place with Business Unity SA leaders and with firms.

These discussions focussed on ways to develop a partnership between the private sector and the public sector to promote the deeper industrialisation of the SA economy, through a significant reduction in the level of imported products and considered what would be pragmatic and achievable targets over a reasonable period of time; and the identification of potential products that could be localised.

Second, the Department compiled and evaluated data on the import levels of different products and in a number of cases, shared data with business representatives, to help identify products that could be localised.

For example, the research showed that SA imported R9,1bn of edible-oils during 2019. Work was done on the local capacity in SA to be able to supply the market. Consideration was given to the decision by a large importer to refine a significant quantity of palm oil locally, adding at least 20% local value in the process.

Research was conducted on the comparative position of other leading economies, in respect of imports measured against GDP. The results of the study showed that South Africa has an over-propensity to import goods which could otherwise be produced in South Africa. Every year, the South African economy spends approximately 25% of the national wealth created, on goods imported from other countries. (See TABLE below.)

 

This propensity is far greater than in other similar countries and is out of line with our developmental needs, and impedes the opportunity for South Africa to develop its manufacturing capacity across carefully-identified selected strategic industries to take advantage of the enormous export potential, particularly in the context of the African Continental Free Trade Area.

Third, the work done with firms and associations at sector level that led to industry Master Plans being developed, were used to identify both specific products and opportunities to localise.

By way of example, the auto industry set a target to localise the components used in SA-assembled vehicles, from 39% to 60% over a 15 year period. In the sugar industry, the parties agreed to improve local sourcing from 60% to initially 80% and thereafter to improve it further. In the poultry industry, R1.5 billion was committed by local producers to expand production, with an additional more than 1 million chickens produced in South Africa per week during 2020, when compared to the prior year. In the clothing industry, retailers committed to improving the level of local procurement by 21 percentage points over a 10 year period to 2030.

Fourth, the Department undertook a review of products included in the designated public procurement list to identify further products which the private sector could be encouraged to localise. These products had been designated over a number of years and the demand available from the public sector can be enhanced by collaboration with the private sector. For a complete list of designated products, see http://www.thedtic.gov.za/sectors-and-services-2/industrial-development/industrial-procurement/.

Fifth, Government engaged social partners at Nedlac in August and September 2020 in an economic recovery plan, which resulted in a Nedlac Agreement reached in October 2020, that contained a number of pillars, including localisation.

The Agreement provided inter alia as follows:

Strategic localisation for jobs and growth

Social partners recognise that localisation and import replacement have significant potential for job retention and creation, the development of new SMMEs and start ups and the initiation of new technology platforms that can strengthen South Africa’s human resource endowment. Further, import replacement lowers South Africa’s vulnerability to global value-chain disruptions in strategic sectors.

The social partners agree to work jointly to:

• Reduce the proportion of imported intermediate and finished-goods;
• Improve the efficiency of local producers; and
• Develop export competitive sectors that can expand the sales of South African made products on the continent and beyond. They thus commit to:

…  Implement measurable and significant increases (by volume and value) in public and private-sector procurement from local manufacturers across value-chains set out in Annexure B by, inter alia:

• 1. Establishing targets for improvement of current levels of localisation in value chains, with the first set of targets to be announced within six weeks; and subsequent targets to be materially completed by the end of November 2020;
  2. Establishing supplier development programmes, as appropriate, on a sectoral or large firm basis;
  3. Expanding the platform used to locally manufacture personal protective equipment (PPE) to other targeted sectors and large volume items where practical and feasible; and
  4. Ensuring that public and private sector infrastructure investment is underpinned by the procurement of locally-manufactured inputs and capital equipment where practical and feasible.

…

Ramp up buy-local campaigns through inter alia:

• • Joint public awareness, education and social media campaigns;
  • Retailer promotions;
  • Clearer labelling of South African manufactured products;
  • A commitment to promote ‘buy local’ statements;
  • Training of procurement entities in the public and private sector; and
  • Working with buyers and procurement entities to support and develop programmes to maximise orders with local producers.

The Agreement contained the following value-chains in Annexure B, which the parties agreed should be the primary focus of localisation:

“[NEDLAC-AGREED] VALUE CHAINS FOR PRIORITY ACTION IN RESPECT OF LOCALISATION

Agro-processing value chain, including poultry, sugar, oils, grains, juice concentrates and dairy products used in the food and grocery industries.

Health-care value-chains: pharmaceuticals, personal protective equipment and medical equipment, (e.g. ventilators) used in public and private healthcare facilities.

Basic consumer goods: clothing and footwear, home textiles, consumer electronic products and appliances (including televisions, mobile phones, and white goods like fridges, stoves and washing machines), household hardware products, packaging material, furniture.

Capital goods: equipment and industrial inputs particularly used in infrastructure projects, mining, agriculture, the green economy and digital infrastructure.

Construction-driven: value-chains, such as cement, steel, piping (plastic and steel), engineered products and earth-moving equipment.

Transport rolling stock: automobile and rail assembly and component production, in preparation for the African Continental Free Trade Area.”

A working group with senior representatives of the Nedlac constituencies was composed, led by the CEO of BUSA and the general secretaries of some of the largest labour federations, which considered proposals on localisation. In addition, a number of bilateral meetings took place between Government and BUSA, which worked on establishing a quantitative target on localisation. A number of product-specific suggestions and proposals were considered. Discussions took place with organised labour, who generally favoured a robust and ambitious target. The discussions identified those products that were regarded as capable of implementation or where significant opportunity existed.

The results of the bilateral discussions were shared with the other Nedlac parties and the Nedlac working group was also able to draw on the work on trade flows, compiled by Government. Finally, a pragmatic target was agreed based on all the available information, the value of a metric against which progress could be measured and a recognition that the parties will need to approach implementation with flexibility, with the first two years setting the platform for greater localisation in subsequent years.

On 14 December 2020, Nedlac agreed to a Localisation Targets and Modalities Plan, which contained the following:

“Overview: the framework for the common commitment to promote localisation is set out in the Nedlac Economic Recovery Plan. This document sets out the agreed approach following discussions between BUSA, Government, [Organised labour/Community].

It covers the implementation of the commitments made by social partners, based on:

• A set of targets
• A set of products
• Private sector Champions
• A simple and effective monitoring and reporting arrangement.

Targets (macro):

It is agreed that the parties would use their best efforts to reduce imports of all products (excluding crude oil) into SA by 20%, to be achieved over a 5 year period. Based on the 2019 import data of R1,1 trillion (non-oil imports), this target would entail a reduction of R220 billion and an indicative annual target of R45bn a year in current prices. 

List of Products

The following products, contained in the Nedlac Economic Recovery Plan, will form the list where immediate efforts will be undertaken, with parties adding to the list as further products are identified.

Agro-processing value chain, including

• poultry,
• sugar
• edible oils
• grains
• juice concentrates
• dairy products

Health-care value-chains:

• pharmaceuticals
• personal protective equipment
• ventilators
• other medical equipment

Basic consumer goods:

• clothing
• footwear
• home textiles
• televisions
• mobile phones
• other consumer electronics
• fridges,
• stoves
• washing machines
• household hardware products
• packaging material
• furniture.

Capital goods

• agriculture equipment
• mining equipment
• green economy inputs and components
• digital infrastructure inputs, components and equipment

Construction-driven value-chains, such as

• cement
• steel products
• plastic piping
• steel piping
• engineered products
• earth-moving equipment.

Transport rolling stock:

• automobile assembly
• auto components
• rail assembly
• rail components

Product targets:

In order to achieve the overall goal of a 20% reduction in total non-oil imports, some products will need to have a target above 20% and some will be below this target, based on what is practicable.

To enable the process to start, the parties agree that the general goal will be 20% and this will be adjusted based on the work undertaken, provided they are able to still achieve the overall goal of a 20% reduction.

The targets in this document are indicative and seek to provide a set of goal posts to galvanise social partners towards greater levels of localisation across the value chains identified.”

Subsequently, at the request of the private sector, additional products were added, namely

• wheelie bins
• personal care products
• cleaning materials
• oil and gas value chains
• fire engines
• boats.

To facilitate a partnership, Chief Executive Officers and other senior leaders have agreed to serve as product champions across a number of the product areas (“Localisation Champions”).

The localisation programme will help to stimulate aggregate demand and strengthen support for the local manufacturing sector. This is an added incentive for both domestic and foreign direct investment in the production sectors of the economy.

The government’s policy in this matter is encapsulated in the Policy Statement on Localisation for Jobs and Industrial Growth, which was released on 18 May 2021. The policy is aimed at building local industrial capacity for the domestic market and for export markets. It is not a turn away from engaging in global markets, but it is about changing the terms of the engagement to one where we are no longer mainly an exporter of raw materials.

Implementation of the strategy will not be without challenges – and finding the policy blend and careful execution required to promote deeper levels of localisation, will require drawing on the skills and expertise in the private and public sectors. SA can build on a number of successes with localisation, draw the lessons and scale these up.

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

1.. “ The Uprising Youth Development file is in the custody of the Special Investigating Unit and was seized and has been in the custody of the SIU since 8 December 2020 with other files which are under investigation as per Proclamation No. R. 32 of 2020. The application form as requested by the Mr M J Cuthbert is in the file with SIU. The record has been requested from the Special Investigation Unit and will be provided in response to PQ 1900 as soon as available.

2. The organisation was funded in the period covered by the scope of the Special Investigations Unit’s Proclamation No. R. 32 of 2020 and related documents seized by the SIU on 8 December 2020.”

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

a) “ The National Lotteries Commission is required to fulfil its mandate and ensure that the Commission performs its functions efficiently and effectively in compliance with this Act and any other applicable law. The NLC applies the principles of openness and transparency to advise the Minister on the efficacy of legislation pertaining to lotteries and ancillary matters, exercises its power to institute legal proceedings to properly discharge its functions and responsibilities and approach any court for any order the board deems appropriate for effective regulation and enforcement of the Lotteries Act.

In order to fulfil the above legislative requirements, law firms are chosen on the basis of expertise, skills, availability, capacity and urgency of the matters amongst others. The principle of rotation is always one that plays a part in which firm gets the brief, however the above criterion should not be viewed in isolation as capability of executing the work together with proven track record becomes key.

b) Ndobela Lamola Inc has been duly appointed through an SCM processes to serve on the NLC legal panel for two consecutive terms. The firm would have been issued with instructions that have overlapped to other financial years resulting in protracted matters that inevitably incur legal costs equivalent to the time spent on each matter. This firm specialises in conducting investigations and a bulk of the matters they have been instructed to do would commence as investigations and thereafter lead to labour and/or litigation matters which they would be requested to continue with such instructions due to it being a more efficient and effective manner of managing the brief.

Fees paid to Attorneys vary and include disbursements that would relate to travel and accommodation and those that would have been paid to other professionals outside the firm, for instance, in cases where consultants were utilised to advice in complex matters, the brief of junior and senior counsel and/or expert witnesses called in to testify. The notion of Attorney’s fees needs to be understood in context of how legal practice works.

c) (i) The Makatse matter commenced as a purely labour relations matter wherein a Disciplinary Hearing was held, thereafter the matter was subsequently referred to the CCMA situated in East London. The employee opted to abandon the CCMA process and lodged proceedings in the High Court situated in East London. The NLC defended and the matter is still ongoing. It is worthy to note that the NLC was successful in the High Court proceedings, and costs were awarded in favour of the NLC, such costs will be duly recovered. An application for an appeal was subsequently lodged by Makatse and the outcome of those proceedings are still pending.

(ii) Legal fees were spent on chairperson and evidence leader’s fees, attorney’s fees, counsel fees both junior and senior counsel, expert witnesses, travel and accommodation for trial that was held in the East London High Court for 5 days that included over 10 witness and counsel travelling outside of East London to attend the trial. Numerous postponements that were outside of the NLC’s control would have contributed to the escalation in cost.

(iii) The history of the Makatse matter is articulated in (i) above which informs reasons for costs incurred. Costs related thereto were in line with reasonable costs associated with professional services rendered for successful pursuance of instituting legal proceedings to properly discharge our functions and responsibilities in the best interest of the National Lotteries Commission. The Commission was successful in the High Court proceedings, and costs were awarded in favour of the NLC, such costs will be duly recovered.”

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Reply:

Government has designated 27 products for local production and content through the Preferential Procurement Regulations. Some of the products already designated are rail rolling stock, boats/ working vessels, power pylons, bus bodies, valves, pumps, certain pharmaceutical products, furniture products as well as the Textile Clothing Leather and Footwear sector.

For a complete list of designated products, see http://www.thedtic.gov.za/sectors-and-services-2/industrial-development/industrial-procurement/.

the dtic conducts research before a product can be designated for local production, including on procurement trends, local industrial capacity jobs implications and import profiles. During the research stage, there is consultation with the industry (associations and local manufacturers) as well as procuring authorities. Designated products have different thresholds for local production informed by the research studies looking at the economic variables aimed at supporting the manufacturing sector. Once the research is completed, the dtic reviews the designation proposals before the Minister of Trade, Industry & Competition approves it. Thereafter, the designation is forwarded to the Minister of Finance for consideration and publication of the instruction notes/circulars and implementation by organs of state.

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Reply:

A focus on localisation is at the heart of Government’s strategy to create sustainable jobs for South Africa and build the economic base for long-lasting prosperity. The reliance on imports is a challenge to the South African economy in that it makes our business and consumers vulnerable to supply shocks in other parts of the world, amply demonstrated in the Covid-19 pandemic. The undue reliance on imports also means longer lead times to get the necessary goods; and it results in South African businesses being price-takers in international markets. It undermines our strategic autonomy, and it means that we create fewer jobs at home.

At the same time, it is not desirable nor feasible to seek to manufacture all goods in a local economy – there are considerable advantages in a global trading system where countries play to inherent strengths (and create or enhance these). The issue is about an appropriate balance of locally-made and imported goods. In South Africa, it is clear the balance has not been struck at a level that enable sufficient jobs and entrepreneurial opportunities, particularly for young people.

The process followed to set a target for localisation and finalise a list of products involved inter alia research on import levels, a comparative analysis of global import levels in leading economies, a number of meetings with business executives in specific sectors or from firms in specific product markets, review of the Master Plans applicable for sectors, consideration of the products that have been designated by the state for local procurement by public entities in terms of applicable legislation and engagement with social partners at Nedlac, resulting in agreements on targets and products.

First, from June 2020, Government commenced discussions with a number of different business groups, such as the Consumer Goods Council of SA and CEOs of different sectors. Separate meetings were held inter alia with CEOs of the following sectors:

• Fast-food operators;
• Grocery retailers;
• Food and beverage manufacturers;
• Clothing, textile, footwear and leather retailers and manufacturers;
• Hardware retailers; and
• Construction companies.

Discussions also took place with Business Unity SA leaders and with firms.

These discussions focussed on ways to develop a partnership between the private sector and the public sector to promote the deeper industrialisation of the SA economy, through a significant reduction in the level of imported products and considered what would be pragmatic and achievable targets over a reasonable period of time; and the identification of potential products that could be localised.

Second, the Department compiled and evaluated data on the import levels of different products and in a number of cases, shared data with business representatives, to help identify products that could be localised.

For example, the research showed that SA imported R9,1bn of edible-oils during 2019. Work was done on the local capacity in SA to be able to supply the market. Consideration was given to the decision by a large importer to refine a significant quantity of palm oil locally, adding at least 20% local value in the process.

Research was conducted on the comparative position of other leading economies, in respect of imports measured against GDP. The results of the study showed that South Africa has an over-propensity to import goods which could otherwise be produced in South Africa. Every year, the South African economy spends approximately 25% of the national wealth created, on goods imported from other countries. (See TABLE below.)

This propensity is far greater than in other similar countries and is out of line with our developmental needs, and impedes the opportunity for South Africa to develop its manufacturing capacity across carefully-identified selected strategic industries to take advantage of the enormous export potential, particularly in the context of the African Continental Free Trade Area.

Third, the work done with firms and associations at sector level that led to industry Master Plans being developed, were used to identify both specific products and opportunities to localise.

By way of example, the auto industry set a target to localise the components used in SA-assembled vehicles, from 39% to 60% over a 15 year period. In the sugar industry, the parties agreed to improve local sourcing from 60% to initially 80% and thereafter to improve it further. In the poultry industry, R1.5 billion was committed by local producers to expand production, with an additional more than 1 million chickens produced in South Africa per week during 2020, when compared to the prior year. In the clothing industry, retailers committed to improving the level of local procurement by 21 percentage points over a 10 year period to 2030.

Fourth, the Department undertook a review of products included in the designated public procurement list to identify further products which the private sector could be encouraged to localise. These products had been designated over a number of years and the demand available from the public sector can be enhanced by collaboration with the private sector. For a complete list of designated products, see http://www.thedtic.gov.za/sectors-and-services-2/industrial-development/industrial-procurement/.

Fifth, Government engaged social partners at Nedlac in August and September 2020 in an economic recovery plan, which resulted in a Nedlac Agreement reached in October 2020, that contained a number of pillars, including localisation.

The Agreement provided inter alia as follows:

Strategic localisation for jobs and growth

Social partners recognise that localisation and import replacement have significant potential for job retention and creation, the development of new SMMEs and start ups and the initiation of new technology platforms that can strengthen South Africa’s human resource endowment. Further, import replacement lowers South Africa’s vulnerability to global value-chain disruptions in strategic sectors.

The social partners agree to work jointly to:

• Reduce the proportion of imported intermediate and finished-goods;
• Improve the efficiency of local producers; and
• Develop export competitive sectors that can expand the sales of South African made products on the continent and beyond. They thus commit to:

…  Implement measurable and significant increases (by volume and value) in public and private-sector procurement from local manufacturers across value-chains set out in Annexure B by, inter alia:

• 1. Establishing targets for improvement of current levels of localisation in value chains, with the first set of targets to be announced within six weeks; and subsequent targets to be materially completed by the end of November 2020;
  2. Establishing supplier development programmes, as appropriate, on a sectoral or large firm basis;
  3. Expanding the platform used to locally manufacture personal protective equipment (PPE) to other targeted sectors and large volume items where practical and feasible; and
  4. Ensuring that public and private sector infrastructure investment is underpinned by the procurement of locally-manufactured inputs and capital equipment where practical and feasible.

…

Ramp up buy-local campaigns through inter alia:

• • Joint public awareness, education and social media campaigns;
  • Retailer promotions;
  • Clearer labelling of South African manufactured products;
  • A commitment to promote ‘buy local’ statements;
  • Training of procurement entities in the public and private sector; and
  • Working with buyers and procurement entities to support and develop programmes to maximise orders with local producers.

The Agreement contained the following value-chains in Annexure B, which the parties agreed should be the primary focus of localisation:

“[NEDLAC-AGREED] VALUE CHAINS FOR PRIORITY ACTION IN RESPECT OF LOCALISATION

Agro-processing value chain, including poultry, sugar, oils, grains, juice concentrates and dairy products used in the food and grocery industries.

Health-care value-chains: pharmaceuticals, personal protective equipment and medical equipment, (e.g. ventilators) used in public and private healthcare facilities.

Basic consumer goods: clothing and footwear, home textiles, consumer electronic products and appliances (including televisions, mobile phones, and white goods like fridges, stoves and washing machines), household hardware products, packaging material, furniture.

Capital goods: equipment and industrial inputs particularly used in infrastructure projects, mining, agriculture, the green economy and digital infrastructure.

Construction-driven: value-chains, such as cement, steel, piping (plastic and steel), engineered products and earth-moving equipment.

Transport rolling stock: automobile and rail assembly and component production, in preparation for the African Continental Free Trade Area.”

A working group with senior representatives of the Nedlac constituencies was composed, led by the CEO of BUSA and the general secretaries of some of the largest labour federations, which considered proposals on localisation. In addition, a number of bilateral meetings took place between Government and BUSA, which worked on establishing a quantitative target on localisation. A number of product-specific suggestions and proposals were considered. Discussions took place with organised labour, who generally favoured a robust and ambitious target. The discussions identified those products that were regarded as capable of implementation or where significant opportunity existed.

The results of the bilateral discussions were shared with the other Nedlac parties and the Nedlac working group was also able to draw on the work on trade flows, compiled by Government. Finally, a pragmatic target was agreed based on all the available information, the value of a metric against which progress could be measured and a recognition that the parties will need to approach implementation with flexibility, with the first two years setting the platform for greater localisation in subsequent years.

On 14 December 2020, Nedlac agreed to a Localisation Targets and Modalities Plan, which contained the following:

“Overview: the framework for the common commitment to promote localisation is set out in the Nedlac Economic Recovery Plan. This document sets out the agreed approach following discussions between BUSA, Government, [Organised labour/Community].

It covers the implementation of the commitments made by social partners, based on:

• A set of targets
• A set of products
• Private sector Champions
• A simple and effective monitoring and reporting arrangement.

Targets (macro):

It is agreed that the parties would use their best efforts to reduce imports of all products (excluding crude oil) into SA by 20%, to be achieved over a 5 year period. Based on the 2019 import data of R1,1 trillion (non-oil imports), this target would entail a reduction of R220 billion and an indicative annual target of R45bn a year in current prices. 

Product targets:

In order to achieve the overall goal of a 20% reduction in total non-oil imports, some products will need to have a target above 20% and some will be below this target, based on what is practicable.

To enable the process to start, the parties agree that the general goal will be 20% and this will be adjusted based on the work undertaken, provided they are able to still achieve the overall goal of a 20% reduction.

The targets in this document are indicative and seek to provide a set of goal posts to galvanise social partners towards greater levels of localisation across the value chains identified.”

Chief Executive Officers and other senior leaders have agreed to serve as product champions across a number of the product areas (“Localisation Champions”).

The localisation programme will help to stimulate aggregate demand and strengthen support for the local manufacturing sector. This is an added incentive for both domestic and foreign direct investment in the production sectors of the economy.

The government’s policy in this matter is encapsulated in the Policy Statement on Localisation for Jobs and Industrial Growth, which was released on 18 May 2021. The policy is aimed at building local industrial capacity for the domestic market and for export markets. It is not a turn away from engaging in global markets, but it is about changing the terms of the engagement to one where we are no longer mainly an exporter of raw materials.

Implementation of the strategy will not be without challenges – and finding the policy blend and careful execution required to promote deeper levels of localisation, will require drawing on the skills and expertise in the private and public sectors. SA can build on a number of successes with localisation, draw the lessons and scale these up.

-END-

Reply:

Price controls on cooking oil is not part of the country’s legal framework. However, we are concerned at spikes in food prices, including what was witnessed recently. For this reason, the Competition Commission has been monitoring prices to determine whether these increases are a result of the existence of monopolies or dominant firms abusing market power or through cartels colluding to raise prices.

The Competition Commission has recently noted global reports relating to oil producing crop shortages internationally, including sunflower, palm, soya and canola. It has provided me with a briefing on its observations, which I reflect in this reply.

In the Competition Commission’s preliminary view, the increases currently seen in the prices for cooking oil in the local market could be influenced by the global developments. Domestic wholesale prices for vegetable oil and retail prices for cooking oil (sunflower and canola), as seen from StatsSA data, shows a recent increasing trend in these prices.

Various commodity outlook reports have cited reasons for the recent surge in global oil prices including slow production and supply shortages in the large oil crop production regions including Malaysia and Indonesia (driven by poor weather and pandemic-led worker shortages), as well as stronger-than-expected consumption patterns from the main consumer nations of oil seed products such as China and India, further adding to global supply strains. In terms of soy oil, prices have risen off the back of global soybean shortages and shipment delays mainly due to the drought being experienced in the primary soybean crop areas like Argentina and Brazil. Furthermore, reports note that some countries have also lowered import tariffs or raised export tariffs on domestically produced vegetable oils in order to lessen the higher costs for vegetable oils.

Within the context of oil crop prices rising in global markets for the reasons outlined above, these price increases are feeding into domestic markets which appears to be flowing through into higher retail prices for cooking oil as South Africa imports a substantial portion of its oil seed requirements. In this regard, the Competition Commission will continue to monitor developments and may institute enforcement action should the information point to abuse of market power in the pricing.

In addition to the above, I have also asked the Consumer Commission to consider the rising prices and provide me with a report on its causes and any remedial action that may be required.

-END-

Reply:

I have submitted the question to the National Lotteries Commission for a reply.

In a letter dated 14 May 2021, NLC Commissioner, Ms T Mampane advised me that “The report is a confidential disclosure to Parliament in terms of Regulation 8 of the Lotteries Act, No. 57 of 1997, as amended. This document is intended for the internal use of NLC only and may not be distributed externally or reproduced for external distribution in any form without express written permission of the NLC and the service provider”.

The Department will be securing advice on the approach of the NLC on the Parliamentary Question.

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

“(1)(a)(b) The panel for service providers relating to the promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Brand Positioning, Grant Funding and Regulated matters. Catering for the organisation was procured in line with relevant PFMA, Treasury Regulations and National Treasury guidelines as follows:

OPERATIONAL COSTS PURSUANT TO SECTION 2(5) OF THE LOTTERIES ACT, NO 57 OF 1997
2016/17 Financial Year	2017/18 Financial Year	2018/19 Financial Year	2019/20 Financial Year
Name of Service Provider Contract Start Date Tsalena Media 15-Jul-14	No panel appointed.	Name of Service Provider Contract Start Date Anzomode 1-Oct-18 Tau Ya Phoka (Pty) Ltd 1-Oct-18 Roadshow Marketing 1-Oct-18 Cheniwell 1-Oct-18 Khanya PR and Media (Pty) Ltd 1-Oct-18 Chilo Group 1-Oct-18 Be- Sure Events Solutions (Pty) Ltd 1-Oct-18 Black Moon Advertising and Research (Pty) Ltd 1-Oct-18	Name of Service Provider Contract Start Date Anzomode 1-Oct-18 Tau Ya Phoka (Pty) Ltd 1-Oct-18 Roadshow Marketing 1-Oct-18 Cheniwell 1-Oct-18 Khanya PR and Media (Pty) Ltd 1-Oct-18 Chilo Group 1-Oct-18 Be- Sure Events Solutions (Pty) Ltd 1-Oct-18 Black Moon Advertising and Research (Pty) Ltd 1-Oct-18

(2) (a)(i)(ii)(iii)(iv) and (b)

OPERATIONAL COSTS PURSUANT TO SECTION 2(5) OF THE LOTTERIES ACT, NO 57 OF 1997

It is noteworthy to mention that the following suppliers provided education and awareness as it relates to Education and Awareness publication costs as per PQ466, and it is our understanding that the current PQ seeks to gather information relating to Education and Awareness workshop and conferencing costs.

• Anzomode
• Tau ya Phoka (Pty) Ltd
• Roadshow Marketing
• Chilo Group (Pty) Ltd
• Cheniwell
• Be-Sure Events Solutions (Pty) Ltd
• Blackmoon Advertising and Research (Pty) Ltd.”

-END-

Reply:

The Department of Trade, Industry and Competition (the dtic) did not appoint Sekela Xabiso to conduct an investigation. The company was appointed by the NLC and attached herewith is the response from the NLC regarding the matter. Below is the reply to the question, submitted by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

1. “The Board of the NLC initiated the investigation by offering members of the public an unrestricted platform to report any acts of wrongdoing, corruption or fraud through the appointed independent audit firm and to provide all evidence, notwithstanding those matters previously independently investigated and concluded. The investigation was expected to be concluded by end of May 2020; however, the due date fell within the period of the Level 5 hard lockdown. Thus due to COVID-19 restrictions, the inability to travel to conduct site visits and/or verification of infrastructure projects, the voluminous matters to be investigated and many other factors that led to a delay in the work of the audit firm gaining momentum the initial conclusion date was not met as anticipated.

2. The investigation process is underway and final outcomes of the investigation pending. The Board will make available the final outcomes of the investigation upon conclusion and adoption by the Board, as previously undertaken to the Portfolio Committee.

3. The total cost of the investigation to date is R9,657,867.10.

4. In responding to the question, extract of NLC’s response provided on PQ 695 bears reference.

Extract of PQ 695

The National Lotteries Commission is required to fulfil its mandate and ensure that the Commission performs its functions efficiently and effectively in compliance with the Lotteries Act and any other applicable law. The budget spend over the past three financial years to ensure that the NLC provides guidance and support to the Board whilst applying the principles of openness and transparency to advise the Minister on the efficacy of legislation pertaining to lotteries and ancillary matters, exercise its power to institute legal proceedings in order to properly discharge its functions and responsibilities and approach any court for any order the board deems appropriate for effective regulation and enforcement of the Lotteries Act is detailed below. The rapid increase of the Legal and Investigations budget over the past three years is attributed to independent investigations as a result of increased media exposure and enforcement of the Third National Lotteries Licence, pursuant to ensuring that the National Lottery and Sport Pools are conducted with all due propriety and strictly in accordance with the Constitution, the Act, all other applicable law.

The total budget allocated for Legal & Investigations Division was R36 500 000.00, being 2% of its National Lotteries Commission’s total expenditure including Grant Allocations.”

-END-

Reply:

Yes, the Department has taken formal steps to secure international cooperation on access to patents and technology for the Republic on the production of Covid-19 vaccines. In October 2020 South Africa and India tabled a proposal at the WTO calling for a temporary waiver of intellectual property rights of certain provisions of the TRIPS Agreement. Work has been done with both DIRCO and with the Department of Science and Innovation. President Ramaphosa has engaged with Heads of State to take forward the proposal for the Waiver.

Equitable vaccine rollout across the world is urgent, necessary and in the interest of people across the world. Reportedly about 75% of the vaccines administered were done in just 10 countries and many countries have not yet received a single dose.

On Wednesday, 14 April 2021, on behalf of the SA Government, I addressed the World Trade Organisation (WTO) on the importance of vaccine equity in the face of the most severe health and economic crisis of our generation. The discussion, which included the trade ministers of India, the European Union and United States, as well the heads of the WTO (Dr Okonjo-Iweala) and World Health Organisation (Dr Adhanom) provided a platform for South Africa to lay out its argument for temporary waiver of key areas of the WTO agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

We pointed out that the world faces a dramatic supply-constraint. At current levels of vaccine production, it may take the world a number of years to bring the virus under control. The gap in availability of supplies will give time for the virus to spread, and to mutate into more deadly or contagious strains. Vaccine nationalism, the race to purchase vaccines by those who can afford them and vaccine hoarding are not a solution to the global supply-constraint. They are pernicious examples of beggar-thy-neighbour policies.

We made the case for stepping up production on-scale. This means using all available capacity and repurposing capacity where this can be done safely and by adhering to necessary standards.

The constraints to scaling up production include technical challenges, inadequate investment to repurpose existing production facilities and the current intellectual property rights regime.

In this context, we called for a ‘Covid New Deal’ to significantly and rapidly increase supply of vaccines and related medical goods and promote more equitable access to such essential goods.

Until the pandemic is brought under control, support for the Waiver will continue to grow.

Voluntary arrangements as provided for in the WTO’s TRIPS Agreement in many cases are simply contract production on a ‘fill and finish’ basis that do not address backward integration and distribution rights; whilst compulsory licensing procedures are onerous and cumbersome.

Negotiations with suppliers are hampered by information and bargaining asymmetries that can result in inequitable outcomes and untenable conditions attached to their procurement.

TRIPS flexibilities were simply not designed to meet the scale of the challenge we now confront.

Based on this, we proposed that the Covid package or New Deal be pursued on parallel and mutually reinforcing tracks, done pragmatically and covering five areas.

First, to scale-up production, in partnership with pharmaceutical companies, that can cover investment and funding to enhance supply capacity in different and additional parts of the world. This necessitates effective transfer of technology, sharing of know-how, backward integration of the raw materials and distribution rights. It must unlock productive capacity not just fill and finish.

Second, a timebound and targeted TRIPS waiver covering only essential diagnostics, vaccines, therapeutics and supplies.

Third, protocols covering transparency of contracts and price stability undertakings.

Fourth, commitment to avoid resort to vaccine nationalism; and

Finally, a TRIPS provision dealing specifically with future pandemics, that provides automatic rights of use and obviates the need for special arrangements and waivers.

Considerable progress has been made to put together a broad coalition of countries in support of the Waiver proposal. Sixty-three WTO Members have co-sponsored the Waiver Proposal and another 50 have indicated their support. There is support across the developing world, and from members of the US Congress, among EU Parliamentarians and from civil society globally. The United States and New Zealand became the first developed countries to support the Waiver. However, not all European countries have as yet supported the proposal for the Waiver put forward by South Africa and India. However, it does seem that all countries are in agreement that the status quo is inadequate and that the WTO will need to find a solution to enable rapid scaling-up of production of vaccines. Discussions are now continuing and South Africa and India together with the other co-sponsors, are engaging more countries to build further support for the proposal for a Waiver.

We have a responsibility imposed by circumstances; and need to build a common approach to act with boldness to save lives.

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

NO.	FINANCIAL YEAR	DESCRIPTION	COSTS (R)	INTERNAL STAKEHOLDER
	2016/17	Educating the public by explaining the process, requirements and qualifications relating to the application for grants in terms section 2(5)(a)(i) of the Lotteries Act - Call for Applications	R446 092.65	External
	2016/17	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations : Brand Positioning	R250 000.00	External
	2016/17	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations :Regulatory Mandate	R1,901 904.00	External
	2016/17	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Grant Funding Mandate	R45,291.06	External
TOTAL EXPENDITURE FOR 2016/17	R2,643,287.71

NO.	FINANCIAL YEAR	DESCRIPTION	COSTS (R)	INTERNAL STAKEHOLDER
	2015/16	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Supply Chain Management	R179 533.82	External
	2015/16	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Grant Funding Mandate	R10 147 553.06	External
	2015/16	Educating the public by explaining the process, requirements and qualifications relating to the application for grants in terms section 2(5)(a)(i) of the Lotteries Act - Call for Applications	R6,469,486.94	External
	2015/16	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act – Operations :Regulatory Mandate	R1 460 009.36	External
	2015/16	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act – Stakeholder Relations, Marketing and Communication	433 105.38	External
TOTAL EXPENDITURE FOR 2015/16	R18 689 688.56

NO.	FINANCIAL YEAR	DESCRIPTION	COSTS (R)	INTERNAL STAKEHOLDER
	2014/15	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: National Lotteries Commission: Operational Changes	R2,368,544.70	External
	2014/15	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Grant Funding Mandate	R5 849 966,38	External
	2014/15	Educating the public by explaining the process, requirements and qualifications relating to the application for grants in terms section 2(5)(a)(i) of the Lotteries Act - Call for Applications	R1,567,772.57	External
	2014/15	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act - Operations: Supply Chain Management	R3,820.96	External
	2014/15	Promotion of public knowledge and awareness by, amongst others developing and implementing educational and informational measures to educate the public of the Lotteries about the lotteries and provisions pursuant to section 2(5)(a)(i) of the Lotteries Act – Operations :Regulatory Mandate	R232,924.45
TOTAL EXPENDITURE FOR 2014/15	R10 023 029,06

Reply:

I have been furnished information of the 3 replies. Below are the supplementary replies received by the Commissioner of the NLC, Ms Mampane:

PQ 196 - Reply from the National Lotteries Commission:

“1 (a) The NLC can fully account for the R13 332 300 that was granted to the beneficiary. With reference to Parliamentary Question 2803, the NLC responded to the direct questions posed by honourable member wherein he enquired specifically around the accountability for funding for workshops and infrastructure.

• The NLC responded that the amount that was utilised for workshops was R801 000 accounted for as detailed in PQ 2803.
• In terms of infrastructure, it was confirmed that no infrastructure was funded under this project number.

With respect to PQ 196, the NLC responds as follows:

• The remaining amount of R12 531 300 was for project activities related to the Cape Minstrels Carnival.
• The NLC funded the following project activities amongst others Sound and Stage, Transportation, Apparel, Security, Catering and Administration.

(b) The NLC received a progress report from the beneficiary and it was found to be satisfactory and all requirements pertaining to the grant that was made to the organisation have been fulfilled and the project was subsequently closed. The funds were accounted for inline with what was reported in paragraph 1(a) above, therefore no missing funds identified.

(c) There was no funding for infrastructure.

2 (a) Reporting requirements for beneficiaries are contained in the signed Grant Agreement. The NLC received and reviewed the interim and final progress report in line with the signed Grant Agreement. The amounts were spent as indicated in paragraph 1(a) above.

(b) The NLC does not audit the finances of beneficiaries however conduct reviews as stipulated in the Grant Agreement in relation to the funded project. The NLC reviewed all interim reports and final report that were submitted by the beneficiary on the following dates:

• 13 January 2013
• 29 April 2013
• 4 June 2013
• 24 June 2013
• 8 August 2013

(c) The NLC found that all reporting requirements pertaining to the NLC grant were fulfilled. This is supported by the letter from NLC to the beneficiary.”

PQ 197 – Reply from the National Lotteries Commission:

“(1)(a) With reference to answer provided to Parliamentary Question 2802, the NLC indicated that an amount of R 5 000 000 was allocated for the building of Carnival Heritage Museum out of a grant of R 27 320 758, 64. The R 22 320 758 was accounted for as the allocation included amongst others the following: Minstrel Carnival Planning; Minstrel Carnival Rehearsal; Minstrel Carnival; and Minstrel Carnival New Year.

(b)(i) R1 700 000.00

(ii) R1 700 000.00

(c) The Cape Town Minstrel Carnival Association.

(2) a) The spending for the project was for the following main line items: Minstrel Carnival Planning; Minstrel Carnival Rehearsal; Minstrel Carnival; and Minstrel Carnival New Year. The total spending was R 27 320 758, 64.

(b) Information on the current rental being paid is not available as the project currently closed and a closeout report was issued.”

PQ 198 – Reply from the National Lotteries Commission:

“(1)(a) The National Lotteries Commission does not audit the financial statements of the funded organisation. It conducts monitoring and evaluations on funded projects and assess the progress reports submitted to ascertain whether the project yielded the envisaged return on that investment. Three (3) reports were submitted by the organisation in question on the following dates:

• 5 May 2014;
• 25 June 2014; and
• 24 August 2015

In terms of the report submitted, a total amount of about R 8 290 000.00 was spent on the magazine. The amount includes amongst others the procurement of transport equipment, marketing costs, printer costs, cost of operational equipment, design and publishing, distribution and logistics.

(1)(b) The report submitted does not provide the number of publication and only quantifies the costs associated with the publishing of magazines

(1)(c) The report submitted does not provide the number of copies printed and only quantifies the costs associated with printing of the magazine

(2) a) The report submitted did not have the copies of each magazine and project. After receipt of a satisfactory progress report, the project was subsequently closed.

(2)(b) The National Lotteries Commission does not audit the financial statements of the funded organisation. It conducts monitoring and evaluations on funded projects and assess the progress reports submitted to ascertain whether the project yielded the envisaged return on that investment. In terms of the report submitted, indicated that a total of about R 5 460 000.00 was spent in conducting the socioeconomic cohesion symposium. The amount is inclusive of all operational costs and personnel costs for the project.”

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

FY	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
R’000	Information unavailable	31 819’	23 085’	40 075’	22 825’	29 179’	30 652’	59 121’

 

-END-

Reply:

I want to bring to the Honorable Member’s attention that this reply is the same to PQ 466 asked by the member on 26 February 2021.

Ms Thabang Mampane, Commissioner of the National Lotteries Commission has furnished me with the reply to the question submitted.

Ms Mampane’s reply is as follows:

(a)

FY	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
R’000	965’	676’	2 181’	8 039’	9 610’	23 017’	5 396’	12 422’	16 968’	28 337’

(b) &(c)

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission. I have requested the NLC provides a breakdown of the legal matters dealt with by the Commission and the total sum expanded on each specific legal matter, together with details of the law firm appointed.

Ms Mampane’s reply is as follows:

a) “The National Lotteries Commission is required to fulfil its mandate and ensure that the Commission performs its functions efficiently and effectively in compliance with this Act and any other applicable law. The budget spend over the past three financial years to ensure that the NLC provides guidance and support the Board applying the principles of openness and transparency, to advise the Minister on the efficacy of legislation pertaining to lotteries and ancillary matters, exercises its power to institute legal proceedings in order to properly discharge its functions and responsibilities, approach any court for any order the Board deems appropriate for effective regulation and enforcement of the Lotteries Act is detailed below. The rapid increase of the Legal and Investigations budget over the past three years is attributed to independent investigations as a result of increased media exposure and enforcement of the Third National Lotteries License, pursuant to ensuring that the National Lottery and Sport Pools are conducted with all due propriety and strictly in accordance with the Constitution, the Act, all other applicable law.”

FINANCIAL YEAR	LEGAL AND INVESTIGATIONS EXPENDITURE
	2016-17	R13 397 783.00
	2017-18	R11 382 274.00
	2018-19	R20 622 898.00
	2019-20	R30 544 437.00

b) “The Legal and investigations budget was reviewed to take into account Special Investigations Unit underway as well as the SkX Investigation commissioned by the NLC Board.”

FINANCIAL YEAR	LEGAL AND INVESTIGATIONS EXPENDITURE
2020-21	R36 500 000.00

c) “The following provides a total amount spent for law firms over the past four financial years, services procured in line with Public Finance Management Act prescripts.”

(i) Law Firms (Supplier Name)	(II) Total Amount Paid
Adams & Adams	R90,608.34
C Ngubane & Associates	R497,815.96
Circle Chambers Advocates	R864,655.38
Cowan Harper-Madikisela Attorneys	R857,360.26
Dabishi Nthambeleni Attorneys	R426,682.00
Denga Incorporated	R318,842.50
Diale Mogashoa Attorneys	R5,072,148.22
Gildemhuys Lessing Malatjie Inc	R2,317,053.99
Hammod Pole Attorneys	R1,631.36
Hogan Lovells	R2,689,296.40
Lawtons Africa	R2,438,352.70
Loliwe Attorneys	R278,797.02
Mafuyeka & Associates Inc	R448,500.00
Malatjie Kanyane Inc	R3,506,566.82
Malebye Motaung Mthembu Inc	R5,464,245.55
Manong Pilane Mokotedi Inc	R2,136,972.66
Maphosa Attorneys	R82,130.70
Mfenyane Attorneys	R119,503.50
ML Mateme Inc	R11,156,978.60
Moche Attorneys Inc	R3,121,699.23
Morare Thobenjane Incorporated	R4,972,993.38
Ndobela Lamola Inc	R19,036,324.49
Ngeno & Mteto Incorporated	R630,816.16
Nozuko Nxusani Inc	R133,405.56
NUPSAW	R247,337.01
Pabasa Adv Hor Modisa SC	R296,081.88
Padi Inc	R591,032.57
Poswa Inc	R535,353.24
RamulifhoInc Attorneys	R5,402,346.11
Raphela Incorporated	R550,039.89
Raphesu JL Attorneys	R816,816.00
Rooth and Wessels	R93,490.70
Rooth and Wessels	R253,135.81
Sekela Xabiso	R87,998.40
Sheriff Pretoria East	R118,916.33
Spoor and Fisher	R209,257.62
Voyi Ndumiso	R82,205.78

-END-

Reply:

The Trade Policy and Strategy Framework (TPSF) document was published in 2010 and represents South Africa’s broad approach to trade policy and strategy, following extensive consultations between government and stakeholders in NEDLAC. An update was issued in November 2012, largely focused on updating trade data. The DTIC website now contains regularly-updated and comprehensive trade data on a monthly basis, the latest reflecting the position as at January 2021, which includes trade import and export values for all trading partners.

The TPSF is premised on objectives set out in the National Development Plan to promote and accelerate economic growth along a path that generates sustainable, decent jobs in order to reduce the poverty and extreme inequalities that characterise South African society and economy. It outlines how trade policy and strategy in South Africa can make a contribution to meeting the objectives of upgrading and diversifying the economic base in order to produce and export increasingly sophisticated, value added products that generate employment. Trade policy should support industrial policy.

The TPSF aims to ensure that we preserve the policy space to pursue national objectives while leveraging the benefits of more integrated regional and global markets. This has also informed our approach to a range of trade-related policy areas.

The TPSF recommended strengthening the institutional arrangements for trade policy making in South Africa. Ongoing efforts have been undertaken to improve coordination and consultation within government and between government and stakeholders in Parliament, NEDLAC, research institutions and academia. This work is ongoing.

The TPSF is broadly framed in policy and strategy terms. While there have been changes in the value of trade and rankings amongst trade partners as well as changes in the content of bilateral trade, the strategic thrust and overall orientation of the TPSF to support industrial development in SA remain relevant. The core principles and approach set out in the TPSF continue to offer importance guidance in approaching international trade from an industrial development and transformation perspective.

Application of trade policy needs to be agile, taking account of changes in the trade and policy environment – for example, the position of the previous US Administration on trade matters, the decision of the UK to leave the European Union, the opportunity to expand trade with the rest of the African continent and the impact of the Covid-19 pandemic on SA national priorities. The policy is reviewed regularly internally and the manner in which it is applied and adjusted are set out from time to time by statements made by the Executive Authority, including in Budget Votes, other statements in Parliament and at the World Trade Organisation. The following trade interventions illustrate how the Trade Policy and Strategy Framework is applied and adjusted to circumstances.

• 2011: Negotiations of the SACU-MERCOSUR Preferential Trade Agreement (entered into force in December 2018)
• 2011: Adoption of modalities at the Tripartite Free Trade Agreement Summit to promote regional trade between SADC, EAC and COMESA.
• 2014/15: Engagement and agreement with US and SA on poultry quotas and its relationship with continuation of AGOA benefits by SA
• 2015: Decision to launch negotiations leading to the conclusion of the African Continental Free Trade Area (AfCFTA).
• 2015: Engagements with the US Trade Representative on the extension of AGOA (followed with annual Ministerial meetings of the AGOA Forum in 2018 and 2019).
• 2017: Trade negotiations initiated with the UK in July 2017 following the UK’s decision to exit the EU.
• 2018: Review of the SACU-EFTA Free Trade Agreement
• 2018: Signing of AfCFTA agreement and ratification by SA Parliament
• 2015: Conclusion of negotiations with the EU to update trade arrangements (the agreement that flowed from this, the SADC-EU EPA, entered into force in September 2016).
• 2019: Negotiations on a new Economic Partnership Agreement (EPA) concluded with the UK in September 2019 at which time a Ministerial Statement was delivered in the National Assembly. The new EPA entered into force on 1 January 2021.
• 2019: Review of outcomes and issues in SA-US trade relationship - bilateral Ministerial meetings held with the United States Trade Representative (USTR) and the US Department of Agriculture in December 2019 on broad trade policy issues and bilateral trade challenges and opportunities.
• 2019: Development of integrated approach at sector level on trade, competitiveness and procurement matters for poultry industry and clothing, textiles, footwear and leather products
• 2019/20: AfCFTA: Development of a country approach on specified Rules of Origin and SA submission (through SACU) of offer on tariff reduction
• 2020: Trade policy adjustments to take account of Covid-pandemic: trade-related regulations issues; and proposal submitted at the WTO for a Waiver of specific provisions of the Trade-related Aspects of Intellectual Property Rights to overcome shortfalls in the equitable supply of affordable COVID-19 vaccines.
• 2021: integrated approach between trade and a range of policy areas, including industrialisation, transformation, building a capable state and local economic development set out in the DTIC Annual Performance Plan for 2021/22 tabled in Parliament in March 2021.

-END-

Reply:

1.(a) SA, together with Members of the Southern African Customs Union (SACU), has submitted a tariff offer to AU Members. The SACU offer is conditional on receiving a reciprocal offer from AU trading partners as required by the AU Summit Decision of 5 December 2020. A copy of the offer may be accessed at http://www.thedtic.gov.za/wp-content/uploads/LSec-CE-TA-2020-072December2020.pdf

2. South Africa, together with Members of SACU, has negotiated and reached agreement on applicable rules of origin with AU Members for 81.5% of all products specified under the World Customs Organisation Harmonised System (HS) classification at a six digit level.

3) SA contributes to the budget of the AfCFTA Secretariat through its normal contributions to the African Union Commission.

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

1. The NLC provides the content to the media houses and therefore advertising and media buying are packaged together. It is therefore not possible to identify individual amounts spent for advertising placement and media buying. The total amount spent in the various years for the advertisement placement and media buying is:

FY	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
R’000	965’	676’	2 181’	8 039’	9 610’	23 017’	5 396’	12 422’	16 968’	28 337’

 

2. NLC has used the following suppliers over the 10 years and the total related expenditure spent on each supplier specified in the below table. Annexure A has been attached which highlights the suppliers paid each year over the 10-year period and the related amount

3.

FY	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
R’000	Information unavailable	31 819’	23 085’	40 075’	22 825’	29 179’	30 652’	59 121’

-END-

Reply:

1. (a) I have been advised that departmental records reflect that there were no employees of the then Department of Trade and Industry who performed work outside normal working hours, in addition to the responsibilities, related to their work in the past five (5) financial years.

(b) (i) In 2017, the dti had two (2) applications declined by the Head of Department as conflict of interest was determined.

In 2021 one (1) application was declined by the HoD as conflict of interest was determined.

(ii) The above applicants are employed in the Industrial Financing Branch.

2. No approval was granted for the applicants as conflict of interest was identified.

(a) According to Public Service Regulations, 2016; Regulation 24 states that “An application by an employee to perform remunerative work outside his or her department shall be in accordance with the process determined by the Minister and in the form issued by the Minister”. No employee at the dti/c is allowed to perform other remunerative work without approval.

(b) The HoD of the dtic is responsible for approving other remunerative work applications as delegated by the EA.

(c) There were no contraventions as all applications were declined by the HoD.

(d) N/A

-END-

Reply:

The African Growth and Opportunity Act (AGOA), enacted by the US Congress in 2000, extends preferential market access to the US market for around 5 235 products from eligible countries in Sub Saharan Africa. South Africa is a beneficiary country under AGOA. AGOA has been extended twice in 2008 and again in 2015 and the current term of AGOA continues until 2025. A decision to extend, adjust or finally terminate AGOA is expected to be decided by the US Congress in 2025.

Country eligibility for AGOA is subject to annual reviews, the last one of which was initiated in May 2020. Eligibility criteria include requirements that a country has established or is making progress toward establishing a market-based economy, the rule of law, political pluralism, the right to due process, amongst other things. South Africa participated in the AGOA review and submitted responses at public hearings to questions raised by several interested parties. The review process was concluded in November 2020 and South Africa remains a beneficiary under AGOA.

The South African and US Governments are in ongoing interaction on a range of trade and investment issues of mutual interest. The last Ministerial in-person bilateral engagement was held in December 2019 in Washington DC shortly before the Covid-19 pandemic, followed by virtual engagements at bilateral and multilateral level, including by trade officials.

-END-

Reply:

a) I have been advised by the department that sixty-six (66) applications were received under the South African Film and Television incentives since the reopening in August 2020.

b) Twenty-seven (27) compliant applications have been adjudicated and thirty-one (31) non-compliant applications were returned back to clients in line with the scheme guidelines. Eight compliant applications are ready for adjudication at the next committee meeting.

-END-

Reply:

1. Yes, as set out below:

i. Name of Firm	ii. Purpose	iii. Value in Rand of Contract	iv. Duration of contract
Dibakoane Security (Pty) Ltd	Physical Guarding Security of Block G to protect Government assets and all occupants of Block G.	Total Value R3 467 444.05	3 years. Procurement through a bid process
Rainprop (RF) (Pty) Ltd	Physical and monitoring security of the dtic campus and perimeter to protect the campus and all occupants of the dtic campus.	Monthly payment: R678 839 as at Feb 2021 (a service element of monthly PPP unitary payment charge)	25 years In terms of the Public-Private Partnership (PPP)

(b) and (per public entity responses): Yes, as set out below:

No.	Entity	(b)	(b)(i)	(b)(ii)	(b)(iii)	(b)(iv)
1.	B-BBEE Commission	The B-BBEE Commission does not make use of any private security firms. It currently operates the dtic campus and the dtic is responsible for security of the campus. The B-BBEE Commission has employed only one (1) security official on its structure for the daily security requirements for its staff and offices	Not applicable	Not applicable	Not applicable	Not applicable
2.	Companies and Intellectual Property Commission (CIPC)	The CIPC does make use of a private security firms	CIPC SSC Cape Town Royal Security	Private security firms at CIPC SSC safeguarding of CIPC assets and personnel within the office and also includes access control in duties terms of the ‘Control of Access to Public Premises and Vehicle Act, 1985 (Act 53 of 1985) Monday to Friday 06h00 to 18h00	R1 129 676.55	Three (3) years
			CIPC SSC JHB Kgaogelo Motau General Trading	Private security firms at CIPC SSC safeguarding of CIPC assets and personnel within the office and also includes access control in duties terms of the ‘Control of Access to Public Premises and Vehicle Act, 1985 (Act 53 of 1985) Monday to Friday 06h00 to 18h00.	R466 800.00	One (1) year
			CIPC SSC Pretoria Mabuzitha Security	Private security firms at CIPC SSC safeguarding of CIPC assets and personnel within the office and also includes access control in duties terms of the ‘Control of Access to Public Premises and Vehicle Act, 1985 (Act 53 of 1985) Monday to Friday 06h00 to 18h00.	R465 651.72	One (1) year
3.	Companies Tribunal (CT)	The CT does not make use of any private security firms but shares the security officers deployed on the dtic campus, who are under contract with the dtic	Not applicable	Not applicable	Not applicable	Not applicable
4.	Competition Commission	The Competition Commission does make use of a private security firm	Mafoko Security Patrols	The Commission has appointed a private security firm that has been responsible for providing security services and guarding the institutions premises	R2 424 868.00 R368 098.00	April 2020 to January 2021 February 2021 to April 2021
5.	Competition Tribunal	The Competition Tribunal does make use of a private security firm	The Tribunal signs an annual memorandum of agreement (MOA) with the Competition Commission (Commission) for shared services, which includes security services. The Commission contracts directly with the security firm, Mafoko Security. The Tribunal pays 27% to the Commission in terms of the MOA for the cost of the security services	The said security firm has been appointed to safeguard Block C on the dtic campus occupied by the Tribunal and the Commission on a 24-hour, 7 days a week-basis.	R206 416.00	The Tribunal signs an annual MOA with Competition Commission
6.	Export Credit Insurance Corporation (ECIC)	The ECIC does make use of a private security firm	Selkirk Security Services (Pty) Ltd (Reg. No. 2014/019174/07)	Provision of physical security and guarding services	R748 788.00	Twelve (12) months (1 Nov 2020 – 31 Oct 2021
7.	Industrial Development Corporation of South Africa Limited (IDC)	The IDC does make use of a private security firm	Fidelity Security Services (Pty) Ltd with Company Registration no: 1997/013274/07	The IDC as an organisation is exposed to potential security risks, threats and vulnerabilities which necessitate the need for a security structure responsible for safeguarding of property assets (office buildings), human lives (staff, visitors and service providers), personal belongings and information. It is for this purpose that the IDC appointed a security firm that provides 24-hour security and guarding services to the IDC, covering Head Office in Sandton and Provincial Offices.	R43 087 225.40	5 years which commenced on 01 July 2019 and will expire on 30 June 2024.
8.	International Trade Administration Commission (ITAC)	The ITAC does not make use of private firms, as there has not been any need for security firms services	Not applicable	Not applicable	Not applicable	Not applicable
9.	National Consumer Commission (NCC)	The NCC does not make use of any private security. The NCC is a tenant of the South African Bureau of Standards (SABS) who provides security services	Not applicable	Not applicable	Not applicable	Not applicable
10.	National Consumer Tribunal (NCT)	The NCT does make use of a private security firm	Jalesca Technologies	The main purpose of this contract was concluded to ensure the provision of armed response services to the NCT	R25 700.00	The contract commenced on 1 October 2020 and will end 30 September 2022
11.	National Credit Regulator (NCR)	The NCR does make use of a private security firm	Phuthadichaba Trading Enterprise cc (sub-contractor is Fidelity Security)	Providing guarding and electronic security services	R4 689 713.59	Three years, contract ending on 13 February 2022
12.	National Empowerment Fund (NEF)	The NEF has previously procured security services for the Head Office. The NEF has resolved to insource the security personnel with effect from 01 April 2021. The NEF will therefore not be using any private security firm going forward.	Marshal Nights Security	Security Services for the National Empowerment Fund Head Office	R7 897 183.57	1 June 2017 to 31 March 2021
13.	National Gambling Board (NGB)	The NGB does make use of a private security firms	Ubomi Technologies (Pty) Ltd, Fidelity ADT (Pty) Ltd	Security guarding service for office premises Alarm system linked to armed response for office premises	R370 530.00 R20 311.05	12 months 36 months
14.	National Lotteries Commission (NLC)	The NLC does make use of a private security firm	Titanium Security Services	Provision of physical security services Head Office	R3 562 712.00	3 years
			Rise Security Services	Provision of physical security services Northern Cape	R792 167.00	3 years
			KRA Security and Projects	Provision of physical security services Free State	R1 757 257.00	3 years
			HM Security and Armed Response	Provision of physical security services Mpumalanga	R432 000.00	1 year
			Ensemble Trading 2366	Provision of physical security services Western Cape	R 2 133 105.00	3 years
				Provision of physical security services Eastern Cape	R2 065 045.00	3 years
			Amazim-Zim Security Services & Private Investigations	Provision of physical security services Kwa-Zulu Natal	R301 533.00	13 months
			Katlego Security	Provision of physical security services North West	R464 999.00	1 year
			The Lady Boss Security Services	Provision of physical security services Limpopo	R462 000.00	1 year
15.	National Metrology Institute of South Africa (NMISA)	The NMISA is a tenant of the CSIR within the CSIR campus both in Cape Town and Pretoria. In terms of the lease agreement between NMISA and the CSIR, the CSIR as landlord provides security for leased buildings NMISA occupies	Not applicable	Not applicable	Not applicable	Not applicable
16.	National Regulator For Compulsory Specifications (NRCS)	The SABS does make use of a private security firms	Bughatti Security Services	Provision of physical security services Cape Town	R455 999.96	1 February –31 July 2020
			Joritans Logistics	Provision of physical security services Port Elizabeth	R405 999.00	1 February –31 July 2020
			Results Security Services	Provision of physical security services Bloemfontein	R440 000.00	1 February –31 July 2020
			Tikedi Security Services	Provision of physical security services Cape Town	R488 266.66	1 August 2020 - February 2021
			Fidelity Security Services	Provision of physical security services Port Elizabeth	R249 018.20	1 August 2020 - February 2021
			Vice Grip Security Services	Provision of physical security services Bloemfontein	R389 515.14	1 August 2020 - February 2021
			Mupo Weshu Environmental Consultant	Provision of physical security services Bloemfontein	R399 000.00	1 March 2021 – 31 August 2021
			Venus Security International (Pty) Ltd	Provision of physical security services Port Elizabeth	R432 000.00	1 March 2021 – 31 August 2021
			Matome and Moloto Protection Services	Provision of physical security services Cape Town	R439 530.00	1 March 2021 – 31 August 2021
17.	South African Bureau of Standards (SABS)	The SABS does make use of a private security firm	Bidvest Protea Coin (Pty) Ltd	The main objective is for Bidvest Coin (Pty) Ltd to protect all SABS property and staff, to provide access control for staff, tenants, visitors and contractors at the following premises: Groenkloof Campus, Pretoria NETFA, Olifantsfontein Secunda premises East London Office Durban Office Cape Town Office New Castle premises Richards Bay premises	R45 846 360.00 (including VAT) for 36 months however savings of R1 454 644.80 (including VAT) were negotiated and realised in the 2021 financial year, due to revisions in contract as a result of COVID 19	The national contract was issued for a three (3) year period and currently the contractor is month 16 of the contract
18.	South African National Accreditation System (SANAS)	The SANAS does make use of a private security firm	Titanium Security Services National Security and Fire	24 Hour Security and Monitoring of Office Alarm response and Monitoring of the Office	R923 717.71 R 28,330.08	Three (3) Years Three (3) Years

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

(a) “The total amount for the bid was R460 287.50 all inclusive.

(b) (i) There were a total of 19 bidders.

(ii) The full names of the bidders were as follows;

 

ITEMS	NAME OF BIDDER
1	Apros
2	Digital Republic
3	Insight2lead
4	KTM Knowledge Solutions
5	LM Training
6	Majeke Macheke School of Business Leadership
7	Mgiba
8	Mngotha Project Management
9	Mthente
10	Ndziane Inc Attorneys
11	Pan Africa TMT Group
12	Quest Research
13	Siloam People Development Agency
14	SMEC
15	Surveyfiesta
16	Toma-Now
17	Underhill Corporate Solutions
18	Urban-Econ
19	Wits

(c) The purpose of this Request for Proposals (RFP) is to appoint a suitably qualified service provider to conduct research on the social, economic and operational impact of the Corona virus pandemic and related emergency measures on funded organisations; and to make recommendations on an appropriate grantmaking strategy in the short, medium and longer term. The study would include an overview of how other international and national grant makers have responded to the pandemic (or to other historical emergencies or crisis) and lessons learned from these experiences.

The service provider was also required to report [sic] should inform discussion and planning about how the NLC should amend its grantmaking strategy in response to the identified trends and factors as well as include in the proposal a process to workshop the research findings with the Commission to facilitate adjustments to its grantmaking strategy, considering the legislative framework within which the Commission operates.

The following work was done by the service provider:

• Inception report.
• Literature review & stakeholder mapping.
• Data collection: Desktop research.
• Stakeholder engagement & interviews.
• Draft report”.

-END-

Reply:

The forensic investigation into matters relating to NLC funding is currently underway and I await conclusion of the investigation.

I have also been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

(a) “At this stage, the Commission has established that the Minstrels’ Carnival Heritage Museum is housed at a rented property as per (b) below. The NLC is continues to ensure due diligence on the funding including reassessment of information and reports submitted and will at the appropriate time take remedial actions should the need arise.

(b) The address is ERF 82, 5/7 Crete Road, Wetton, Cape Town.”

-END-

Reply:

A total of 20 000 CPAP ventilators have now been produced in South Africa, during the national state of disaster under the NVP. These ventilators have been produced by two local entities, namely the state-owned Council for Scientific and Industrial Research (CSIR) and the South African Ventilator Emergency Project (SAVE-P) – a consortium of companies.

Production began in July 2020 and the final units were completed during November 2020. The 20 000 units produced include the following:

• 18,000 Venturi-type CPAP devices manufactured through a contract with the CSIR, which is a state-owned science Council; and
• 2,000 blender-type CPAP devices manufactured by SAVE-P.

The CSIR ventilator systems were assembled and packaged by Akacia Medical in the Western Cape. Individual components for the CPAP-ventilator were manufactured by a consortium of industry partners in Gauteng, KwaZulu-Natal and Eastern Cape, including the Central University of Technology and firms such as Black Capital Systems, Andani Futuretech Manufacturing, UV Tooling, Sola Medical, Gabler Medical and Pitchline Engineering. All manufacturing was done for the CSIR.

The SAVE-P consortium incorporates manufacturers located in Cape Town, Pinetown, Durban, Midrand, and Alberton, consisting of MCR Manufacturing, Reef Engineering, Bosch, Executive Engineering, Rhomberg Instruments, Dowclay Products, ISO Health SA, Pegasus Steel, NAACAM, AFRIT, Corruseal, New Age Medical Supplies, Aveti and Non-Ferrous Metal Works.

The development, production and procurement cost for the 20 000 units were funded through a R250 million donation from the Solidarity Fund, at an average cost of R12 500 per unit.

The South African Radio Astronomy Observatory (SARAO) was appointed to manage the national effort to design, develop and produce the respiratory ventilators to support the government’s response to combat the COVID-19 pandemic. Engineers at SARAO have experience and a track record in developing and execution of complex systems within short timeframes. They developed the MeerKAT radio telescope system in the Karoo, the precurser to the SKA.

SARAO performed an initial qualification review of both the CSIR and SAVE-P devices, to first determine whether they met the specifications of the NVP. Following this review, CSIR and SAVE-P was required to develop a industrialisation plan – to determine whether they had the manufacturing capacity to produce the units, including sourcing of components. – culminating in a Production Readiness Review conducted by SARAO. Following the Production Readiness Review, a technical dossier with a prototype of the device was provided to SAPHRA in order for the SAPHRA to perform the required inspections for licensing. Both devices were approved by SAHPRA on 26 June 2020. Clinical trials were conducted of both devices at Charlotte Maxeke Johannesburg Academic Hospital on behalf of the SARAO; with a further clinical trial conducted at Chris Hani Baragwanath Hospital under the supervision of the National Department of Health. Quality Control for each unit produced is performed by the final assemblers, under the supervision of the SARAO, who have conducted unit inspections to ensure that units produced meet approved specification.

-END-

Reply:

The South African sugar industry is an important part of South Africa’s agricultural sector, employing some 85 000 people directly. South Africa experienced an increase in imported sugar up until 2017. To provide protection to South African sugar producers, and following consultation with the industry facilitated by the Ministry, in August 2018 the International Trade Administration Commission (ITAC) amended the dollar-based reference price used to determine the effective customs duty on sugar, which resulted in an increase in the customs duty on imported sugar.

Subsequently, sugar imports declined from 844 522 tons in 2017, to 544 708 tons in 2018, and to 519 189 tons in 2019. This has been largely attributed to the change in the tariffs.

Imports from Brazil have declined from a record 243 982 tons in 2017 to 21 971 tons in 2019; while imports from the United Arab Emirates have declined from 157 387 tons in 2017 to t 26 tons in 2019.

This decline in sugar imports has continued during 2020, with imported sugar for the period from January to October 2020 amounting to 408 364 tons, some 8% below imports during the same period in 2019. However, I have been advised that there has been an increase in imports from Brazil during this period, from 19 488 tons in the period from January to October 2019, to 31 563 tons in the same period in 2020; though still below levels of imports experienced in 2017 and 2018. Imports from the UAE as reflected in official statistics for 2020 (to date), remain at modest levels compared to 2017.

To help provide further support to the sugar value chain in South Africa, government began consultation in August 2019 with the sugar industry - including producers, industrial and retail users, and organised labour – on the development of a masterplan for the sector. The broad terms of the Masterplan, which includes a commitment to local procurement of at least 80% of need for industrial users and retailers were agreed in April 2020, and signed by stakeholders during a virtual signing ceremony in November 2020, ahead of the 3rd South Africa Investment Conference.

A media statement was issued jointly by the dtic and the Department of Agriculture, Land Reform and Rural Development (DALRRD) on 17 November 2020, providing the details of the masterplan, a copy of which can be found on the dtic website at http://www.thedtic.gov.za/government-and-industry-stakeholder-signed-the-sugar-master-plan/.

-END-

Reply:

The NLC has advised that there is no basis for an investigation into the named individual.

The Department requested further information from the NLC and will provide such information in a supplementary reply.

-END-

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is reproduced below. In view of the costs per participant, I have requested the Department to consider following this up with the Board of the NLC.

The reply of Ms Mampane, the Commissioner is as follows:

a) “(i) In terms of the allocation about R 801 000.00 (eight hundred and one thousand) was spent on the workshop.

(ii) According to the allocation, funds were provided generally for a programme and not for infrastructure.

b) Kindly see (ii) above.

c) The event was planned for 150 people.

d) In Cape Town.”

-END-

Reply:

I am advised by the Commissioner of the Companies and Intellectual Property Commission (CIPC) of the following:

a) The CIPC held a meeting with the South African Broadcasting Corporation (SABC), which is a big user of sound recordings for needle-time rights to establish a working relationship between the two entities. In terms of the envisaged working relationship, the SABC will share with CIPC the data/information on the use of sound recordings. The data/ information from SABC, will be used to verify distributions made by Collecting Societies (SAMPRA and IMPRA) in this regard. Data/information on usage in simple terms determines how much performing artists and owners of sound recordings must get as their royalty for the use of their music repertoire.

b) The data / information from SABC, which shows how many sound recordings were used or played, will be made available to CIPC and Collecting Societies. This will create transparency and efficiency in the distribution process of royalties. Of the two Collecting Societies that CIPC is regulating, an audit has been performed on SAMPRA processes and systems to ensure transparency and a further audit to all distributions will be performed. A tracking register has been developed with SAMPRA to track the improvement on its systems and processes.

CIPC has also embarked on robust education and awareness sessions to the performing artists and owners of sound recordings. The sessions explain their rights as members of the Collecting Societies so that they can enforce accountability and transparency in the manner in which such Collecting Societies run their business. This is also to ensure good governance.

c) CIPC has requested the World Intellectual Property Organization (WIPO) in writing to send a mission to South Africa for technical assistance to Collecting Societies and big users such as SABC on how best to generate data / information on use of sound recordings using new technological system. This will, in our view create a more transparent system and accountability.

-END-

Reply:

I am advised by the South African Bureau of Standards (SABS) that it is not required to approve speed hump designs or standards. The SABS is responsible for promulgating voluntary standards and not compulsory standards. The Department of Transport and Department of Public Works, local municipalities or an interested party or association could submit a request for the development of a new standard or a New Work Item for consideration as per the national standards development process.

-END-

Reply:

The Competition Commission of South Africa is empowered by the Competition Act (the Act) to review mergers and acquisitions in South Africa where an acquiring establishes control over an acquisition target. The Act requires the Commission to determine whether or not the merger is likely to have an anti-competitive effect, including whether or not the merger will result in the removal of an effective competitor. In addition, the Commission must assess whether or not the merger can be justified on substantial public interest grounds, by assessing the impact of the merger on (i) a particular industrial sector or region; (ii) employment; (iii) the ability of small and medium businesses, or firms controlled or owned by historically disadvantaged persons, to effectively enter into, participate in and or expand within the market; (iv) the ability of national industries to compete in international markets; and (v) the promotion of a greater spread of ownership, in particular to increase the levels of ownership by historically disadvantaged persons and workers in firms in the market. The provisions of the Act would apply to acquisitions by firms such as Google and/or Facebook where they acquire control of a target firm and where the transaction meets the thresholds set out in the legislation.

The Facebook/ WhatsApp transaction took place in 2015. I am advised that the transaction was not notifiable because WhatsApp did not generate any revenue in South Africa, meaning that the transaction did not meet the South African merger notification thresholds. However, both locally and globally, competition authorities have reconsidered the approach of competition authorities to regulating digital markets.

I am advised that the Competition Commission does not have any active cases against Amazon.

In general terms, over the last decade South Africa has played a global thought leader role in how to balance competition and public interest considerations in order to promote foreign investment whilst ensuring that mergers safeguard and promote jobs, localisation, and other dimensions of our public interest and our economic policy.

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Reply:

1. The Musina-Makhado Special Economic Zone (SEZ) was designated by Cabinet in accordance with the Special Economic Zone Act No 16 of 2014. The Act prescribes a process in which all special economic zones are designated.

I am advised that the project was not designated as a Presidential project.

The Department reports that implementation of Musina-Makhado is coordinated through a Steering Committee that consists of various departments and State owned entities such as the Department of Water Affairs and Sanitation and Eskom. The purpose of the steering committee is to support the SEZ company with the mobilisation and management of stakeholders, particularly with regards to sector departments and state owned entities. At this stage, departments have not committed specific funding towards the development of the project. The province is still finalising the Master plans and environmental authorisation processes.

2. The Environmental Impact Assessment (EIA) application for Musina Makhado Special Economic Zone has been launched in terms of the National Environmental Management Act and the associated regulations. The process is still underway.

The Limpopo government has advised the Department that it has an investor pipeline of $15.2 billion with potential investors in various projects ranging from power generation to minerals beneficiation. According to the Province, the investors will be bringing their own funds to finance their investment projects.

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Reply:

I am awaiting conclusion of the current forensic investigation process and when this is done, due consideration will be given to any other information that emerged either in the process or through information made available to the public, including from Members of Parliament.

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply as received is reproduced below:

a) “(i) The allocation (R21 08 623, 21) was for training camps, license fees and development, advertisement, admin including international competition.

(ii) The allocation of 24 million was for the send-off and it included accommodation in 9 provinces, advertising, admin fees, travel costs, medical assistance, security, sport wear including catering.

(iii) Funding decisions were made by the relevant distribution agencies with due consideration of all the information placed before them including availability of budget.”

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Reply:

Government has identified public procurement as one of the economic policy instruments to re-industrialise the economy. In this regard, the Preferential Procurement Regulations make it mandatory for organs of state, including state owned companies (SOCs) to implement local production and content in the procurement of goods designated for such purpose in the public procurement system.

To date, a number of products have been designated for local production.

The National Treasury, being the custodian of supply chain policy in government has circulated the instruction notes/circulars which regulate the environment within which government departments, public entities and SOCs may procure designated products.

In addition to this, I am advised of work by the dtic across a number of initiatives, to strengthen compliance, as detailed below.

To promote compliance with the local content requirements, Proudly South African (PSA) working closely with the Department of Trade, Industry & Competition (the dtic) has instituted a tender monitoring system which monitor tenders for compliance on local content and production on a regular basis.

Where there are incidences of non-compliance, the dticrequests organs of state to rectify this through either amending or canceling tenders. Some of the non-compliant tenders are referred to the National Treasury’s Office of the Chief Procurement Officer (OCPO) for intervention.

I am advised that the dtic is also working closely with the Office of the Auditor General to scale up the auditing of tenders designated for local production; audit opinions are being issued in this matter. The dtic is also working with the Department of Public Enterprises (DPE) in making sure that the biggest SOCs reporting to it such as Denel, Eskom and Transnet implement local content requirements in their tenders.

Regular training is also provided to other departments and SOCs on the implementation of local content.

Finally, the dtichas made submissions on the draft Public Procurement Bill on the tightening of measures dealing with non-compliance on the local content requirements.

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

Ms Mampane’s reply is as follows:

(a)“(i) A total amount of about R 8 290 000.00 was spent on the magazine. In terms of the report this amount is inclusive of procurement of transport equipment, marketing costs, procurement of operational equipment including personnel costs.

(ii) The organization was funded to conduct the socioeconomic cohesion symposium in two different areas/regions namely the metropole as well as the Western Cape region. A total amount of about R 5 460000.00 was spent in executing the project. This cost is inclusive of all operational costs and personnel costs for both regions/areas.

(iii) The cultural awareness campaign would have been part of the socio-cohesion programme.

b) The report submitted does not provide the number of publications and only quantifies the costs associated with publishing the magazine.

c) The report submitted only quantifies costs related to the execution and does not mention the names of the speakers.

d) The report submitted only quantifies costs related to the execution and does not indicate the number of people in attendance.

e) It was held in the Western Cape in the areas as defined in (a)(ii).

f) The purpose of the cultural awareness campaign was to set a foundation to integrate communities who were still operating within the boundaries of the previous dispensation according to race and socioeconomic status.”

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Reply:

I am advised by the Director General of the DTIC as follows:

1. The Department has been advised by the official that she was married to Mr Hangwani Mulaudzi’s brother until 2013. There is currently no family relationship.

2. The Department advised me that the official is not involved in the work of the Department relating to NLC matters; and that in any event, the NLC’s funding processes and decisions are administered by the NLC independent from the Department. Based on the above, no conflict of interest was detected.

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Reply:

As per the Ministerial Handbook, official vehicles are provided to Ministers and Deputy Ministers in order for them to carry out their official duties. In instances where official vehicles are not available, vehicles are then hired.

As per our records, cars were hired for Minister Ebrahim Patel for use in cities where no official vehicle was available, as follows:

Minister Ebrahim Patel

Place of hire	Travel date	Return date	Amount (R)	Supplier Name
Port Elizabeth	25-Jul-19	25-Jul-19	1 565,73	Phakisa world fleet Solutions Isando (Hwt.Pks)
Durban	12-Jul-19	13-Jul-19	1 771,81	Phakisa world fleet Solutions Isando (Hwt.Pks)
Durban	14-Sep-19	15-Sep-19	3 932,35	Woodford Car And Bakkie Hire (Hwt.Wch)
Durban	4-Oct-19	4-Oct-19	2 970,68	Woodford Car And Bakkie Hire (Hwt.Wch)
Durban	16-Oct-19	18-Oct-19	6 363,34	Woodford Car And Bakkie Hire (Hwt.Wch)
Total			16 603,91

The records for the Deputy Ministers are still being collated and will be provided as a supplementary reply as soon as possible.

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Reply:

The Poultry Master Plan was developed with input from the African Farmers Association of SA (AFASA) and the SA Poultry Association (SAPA), together with other stakeholders such as organised labour, importers and public entities.

In the initial phase of the Master Plan implementation, the focus has been on tariff adjustments to protect the sector, accompanied by the expansion of domestic investment to increase output. The industry was set targets for promotion of black-owned poultry farms. In all three areas, progress has been made: poultry tariffs were increased in February 2020, investment of over R750 million has been put into the sector and local production of chickens has increased in the past eight months.

In the next phase of implementation, a proposal is being developed for a localisation designation to enable state-entities to ensure that poultry used within the state (eg at hospitals) is procured from local producers. Once this phase has been implemented, data on the levels of participation by poultry producers can be collected.

The Poultry Master Plan has the objective inter alia of promoting transformation across the full value-chain particularly among integrated producers, to ensure that the presence of black South Africans are not limited to poultry farming, where returns are in many cases modest. The DTIC has not in the past collected detailed data on ownership in the poultry feed sector – however, with the focus in the Master Plan on transformation, this will be done in future, bringing together information across different public entities and sister departments.

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is set out below. I advise that it has been clarified by the NLC that the (1)(b) below refers to the NLC Senior Manager : Financial Accounting.

Reply by Commissioner Mampane:

“(1)(a) The NLC has an approved investment policy in compliance with Treasury Regulation 31.3.1. Investments are made in terms of the investment policy approved by the NLC Board.

(b) Investments are managed by the NLC.

(c) The performance of investments is monitored on a monthly basis.

(2)(a)(i) No investments have been written off. (ii) Not applicable

(b) Not applicable

(3) The National Lotteries Commission is a Public Finance Management Act, Act 1 of 1999, Schedule 3A entity. It does not receive funding from the fiscus. The investments support the organisation as follows –

• sustains the operations of the organization during licence transitions where the uptake in ticket sales demonstrates low performance (The reserve strategy is aimed at sustaining the organisation for a period of twelve months in instances where there is no revenue flowing into the organization);
• Supplements the grant allocations as the interest received from investments is utilized towards funding the operational expenditure of the organisation which means that more money is allocated towards grant allocations.”

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