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06 April 2021 - NW695

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

What (a) is the total amount that the National Lotteries Commission paid in legal expenses to outside service providers (i) in the (i) 2016-17, (ii) 2017-18, (iii) 2018-19 and (iv) 2019-20 financial years, (b) is the budget forecast for the 2020-21 financial year and (c) is the (i) breakdown of law firms that were used and (ii) total amount that was paid to each of law firm?

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-

06 April 2021 - NW693

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

What (a) is the total amount that was spent by the National Lotteries Commission (NLC) on advertising placement and/or media spend over the past 10 financial years, (b) are the names of the media houses and/or publications in which the NLC purchased advertising placements over the past 10 years and (c) are the relevant annual amounts spent by the NLC on each media house and/or publication?

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-

06 April 2021 - NW694

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

What was the marketing budget of the National Lotteries Commission in each of the past 10 financial years?

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-

19 March 2021 - NW466

Profile picture: Cuthbert, Mr MJ

Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)What total amount has the National Lotteries Commission (NLC) spent on (a) advertising placement and/or (b) media over the past 10 financial years; (2) what (a) are the names of the media houses and/or publications in which the NLC have purchased advertising placements and (b) relevant annual amounts were spent on each specified media house and/or publication over the specified time period; (3) what was the NLC’s marketing budget in each financial year?NW522E

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-

19 March 2021 - NW524

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Tarabella - Marchesi, Ms NI to ask the Minister of Trade, Industry and Competition

(1) Whether any staff member in his department (a) performed work outside normal working hours in addition to the responsibilities related to his or her work in the past five financial years and (b) has been performing such work during the period 1 April 2014 up to the latest specified date for which information is available; if not, in each case, how is it determined whether such work is being performed or not; if so, in each case, (i) what number of staff members and (ii) in what job and/or work categories are the specified staff members employed; (2) whether approval for such work was obtained in each case; if not, what is the position in this regard; if so, (a) what is the policy of his department in this regard, (b) by whom are such applications considered and approved, (c) what number of contraventions of this policy were brought to the attention of the National Treasury in the past five financial years and (d) what steps have been taken against the transgressors? [NW580E]

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-

19 March 2021 - NW595

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Cebekhulu, Inkosi RN to ask the Minister of Trade, Industry and Competition

Given that the African Growth and Opportunity Act, popularly known as the AGOA, which allows most sub-Saharan African countries duty-free access to the American market for almost 7,000 products is due to expire in 2025, and the fact that South Africa’s preferential market access to the United States of America is under review, what measures has he put in place to ensure that the outcomes of the discussions between South African officials with their American counterparts are favourable to the South African market?

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-

19 March 2021 - NW598

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Cebekhulu, Inkosi RN to ask the Minister of Trade and Industry

What total number of (a) applications for the South African Film and Television incentives has his department received since the reopening in August 2020 and (b) the specified applications have been granted? [NW654E

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-

19 March 2021 - NW689

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Ngcobo, Mr S to ask the Minister of Trade, Industry and Competition

Whether (a) his department and (b) any entity reporting to him make use of private security firms; if not, what is the position in this regard; if so, in each case, what is the (i) name of each firm, (ii) purpose, (iii) value and (iv) duration of each specified contract?

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-

19 March 2021 - NW537

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

(1) (a) On what date was the SA Trade Policy and Strategy Framework last revised and/or updated and (b) what are the relevant details thereof; (2) whether he has found that the SA Trade Policy and Strategy Framework accurately reflects the nature of the current South African economy and global economy at large; if not, what is the position in this regard; if so, what are the relevant details; (3) whether his department has a trade policy review mechanism in place, with clear terms of reference; if not, why not; if so, what are the relevant details thereof?

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-

19 March 2021 - NW475

Profile picture: Cuthbert, Mr MJ

Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)Whether, with reference to the African Continental Free Trade Area (AfCFTA), and the requirement that member states should complete their tariff reduction schedules and finalise essential rules of origin by July 2021, (a) the Republic has submitted the tariff reduction schedule and (b) will she furnish Mr MJ Cuthbert with a copy of the tariff reduction and rules; if not, why not; if so, on what date; (2) whether the Republic has submitted its position on rules of origin to the (AfCFTA) Secretariat; if not, what is the position in this regard; if so, what are the relevant details; (3) whether the Republic has pledged any funds to the AfCFTA Secretariat; if not, what is the position in this regard; if so, (a) what amount has been pledged and (b) for what purpose?

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-

01 March 2021 - NW139

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

With reference to a certain tender (details furnished) from the National Lotteries Commission, what (a) was the total amount the tender was worth, (b)(i) was the total number of persons who were bidders for this tender, (ii) are all their full names and (c) was the scope of the work pertaining to the tender, including the work done?

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-

15 December 2020 - NW2933

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

(1)(a) What total number of ventilators for COVID-19 patients has the Republic produced in the year 2020, (b) who manufactured the ventilators, (c) on what date were the ventilators manufactured and (d) what was the total cost of each ventilator; (2) whether the ventilators were tested; if not, why not; if so, (a) on what date and (b) where were they tested?NW3758E

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-

15 December 2020 - NW2853

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Cebekhulu, Inkosi RN to ask the Minister of Trade, Industry and Competition

Following reports that the South African sugar cane growers have recently complained about the major increase in cheap sugar imports from countries such as Brazil, the United Arab Emirates and other countries, which has had an unavoidable impact on the competitiveness of the South African sugar industry, with massive reduction in sales of local sugar over the past year, what are the full details of the steps his department has taken to ensure that Government creates a thriving, inclusive, transformed and sustainable local sugar industry that supports our sugar cane growers? [

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-

15 December 2020 - NW2716

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

Whether he will instruct his department to investigate if due process was followed when a certain person (name and details furnished) allegedly appointed himself as part of the steering committee in charge of the establishment of the sports centre in Mukondeni in Limpopo; if not, what is the position in this regard; if so, what are the relevant details? [

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-

15 December 2020 - NW2803

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

With reference to the document that was presented to the Portfolio Committee on Trade, Industry and Competition by the National Lotteries Commission (details furnished), of the R13 332 300, 00 allocated to project number 56305, (a) what amount was spent on (i) the workshop and (ii) infrastructure, (b) what infrastructure was purchased, (c) what number of persons attended the workshop and (d) where was the workshop held? [

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-

15 December 2020 - NW3053

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Cebekhulu, Inkosi RN to ask the Minister of Trade, Industry and Competition

What (a) steps is his department taking to resolve outstanding grievances of musicians on the payment of royalties, (b) initiatives are being undertaken by his department to ensure a more efficient and transparent process in distributing royalties and (c) reforms have been made to modernise organisations responsible for the collection of royalties?

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-

15 December 2020 - NW3000

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Lees, Mr RA to ask the Minister of Trade, Industry and Competition

Whether the SA Bureau of Standards must approve speed hump designs on any level of government; if not, why not; if so, what are the relevant details? [

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-

15 December 2020 - NW2984

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Mulder, Mr FJ to ask the Minister of Trade, Industry and Competition

(1)What measures does his department have in place to prevent an international provider of digital services, such as Google and/or Facebook, from acquiring companies internationally and then bundling their products together in the local South African economy; (2) whether the Competition Commission, using the Facebook acquisition of WhatsApp as an example, has insisted that WhatsApp continues to operate independently from Facebook in the South African market, considering that neither product originated in the Republic; if not, what is the position in this regard; if so, what are the relevant details; (3) what is the approach to Amazon, given all the infrastructure and jobs that Amazon has been building in the Republic and which it can easily withdraw if the Competition Commission is persistent in this regard? [NW3812E]

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.

-END-

15 December 2020 - NW2971

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Lorimer, Mr JR to ask the Minister of Trade, Industry and Competition

(1)With regard to the Musina-Makhado Special Economic Zone, what (a)(i) are the reasons that the specified project was designated a Presidential Project and (ii) date was it done so, (b) does such designation mean, (c)(i) state-owned entities and (ii) government departments are either participating and/or intended to participate in this project, (d) total amount has each of the specified entities spent on the project so far, (e) total amount do they intend to spend in the next 10 years and (f) value will be delivered to the South African persons in return; (2) whether any kind of environmental exemptions will be provided by the Government during the course of the project; if not, what is the position in this regard; if so, what is the source of the non-South African governmental investor’s finance? [NW3797E]

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.

-END-

15 December 2020 - NW2865

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Cebekhulu, Inkosi RN to ask the Minister of Trade, Industry and Competition

Whether, in view of recent media reports that have raised the alarm that funds allocated by the National Lotteries Commission (NLC) to build the Carnival Heritage Museum have not been properly utilised (details furnished), his department has (a) compelled the NLC to audit the books of the Cape Town Minstrel Carnival Association and (b) determined the Global Positioning System co-ordinates of the Carnival Heritage Museum; if not, why not, in each case; if so, what are the relevant details in each case?

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-

14 December 2020 - NW2714

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)Whether a certain person (name and details furnished) is in any way related to a certain person (name and details furnished), if not, what is the position in this regard; if so, (2) whether this is deemed to constitute a conflict of interest in accordance with the policies of the NLC and/or his department, taking into account the donation to the specified foundation from the NLC and the fact that the specified person’s relative is employed in a senior position in his department; if not, what is the position in this regard; if so, what are the relevant details? [NW3483E]

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.

-END-

14 December 2020 - NW2715

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)Whether he will instruct his department to investigate if due process was followed when the National Lotteries Commission (NLC) decided to make the R3 million donation to a certain foundation (details furnished); if not, why not; if so, what are the relevant details; (2) whether his department is investigating a certain person (name furnished) as part of its broader investigation into allegations of corruption pertaining to the NLC; if not, what is the position in this regard; if so, what are the relevant details? [NW3484E]

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.

-END-

14 December 2020 - NW2813

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Lotriet, Prof A to ask the Minister of Trade, Industry and Competition

With reference to the document that was presented to the Portfolio Committee on Trade, Industry and Competition by the National Lotteries Commission (details furnished), (a) of the R13 750 000, 00 allocated to project number 73656, what amount was spent on the (i) community magazine, (ii) socioeconomic cohesion symposium and (iii) cultural awareness campaign, (b) what number of editions of the magazine have been published, (c) who spoke at the socioeconomic cohesion symposium, (d) what number of persons attended the symposium, (e) where was it held and (f) what was the purpose of the cultural awareness campaign?[

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.

-END-

14 December 2020 - NW2851

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Cebekhulu, Inkosi RN to ask the Minister of Trade, Industry and Competition

What mechanisms has his department put in place to ensure that state-owned enterprises comply with (a) designations and (b) local content requirements?NW3675E

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.

-END-

14 December 2020 - NW2814

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Lotriet, Prof A to ask the Minister of Trade, Industry and Competition

With reference to the document that was presented to the Portfolio Committee on Trade, Industry and Competition by the National Lotteries Commission (details furnished), (a) how exactly was the (i) R21 08623, 21 allocated to project number 80768 and (ii) R24 980 000, 00 that was allocated to project number 103496 spent and (b) how does the National Lotteries Commission justify allocating more money to the Roadshow send-off for the Rio Olympics than to Preparation for Rio Olympics?[

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.

-END-

27 November 2020 - NW2556

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)(a) Who has the authority to make investments for the National Lotteries Commission (NLC), (b) who manages the specified investments and (c) how often is their performance reviewed; (2) what (a)(i) quantum of investments have been written off and (ii) are the reasons that they were written off and (b) are the details of all non-performing investments; (3) how do the NLC’s investments support the objectives and operation of the organisation?

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.

-END-

27 November 2020 - NW2554

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)What are the reasons that the National Lotteries Commission (NLC) is holding such large investments at a time when it is receiving less funds for disbursement to good causes; (2) whether he will furnish Mr M J Cuthbert with a list detailing (a) with whom is each investment and (b) the type of each investments; if not, why not; if so, (3) what (a) total number of different investments make up the NLC’s total investments and (b) is the period of each specified investment?NW3225E

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. In light of the challenges faced by many South Africans as a result of the coronavirus pandemic, I will be requesting a review of the reserves policy.

The reply of the NLC Commissioner follows:

1. The National Lotteries Commission is a Public Finance Management Act, Act 1 of 1999, Schedule 3A entity. The NLC was established with the primary mandate of regulating lotteries and sports pools. From that regulatory activity, the NLC is enabled to distribute funds destined for good causes.

The NLC does not receive funding from the fiscus. The main source of revenue is derived from the share of National Lottery ticket sales from the Operator. The investments (that is, reserves) aim to sustain the operations of the organization during Licence transitions where revenue received from the National Lottery Operator is low as observed in the previous two licenses. Also in instances where the Operator may not operate. The reserves will supplement the grant allocations for good causes and the operational costs of the organisation for a period of twelve (12) months in instances where there is no revenue flowing into the organisation. This will ensure that the NLC continues to deliver on its mandate.

Section 25 of the Lotteries Act allows the NLC to invest any money which is not required for immediate allocation. Investment income diversifies the organization’s Revenue and mitigates the risk of a single source of revenue derived from a share of National Lottery ticket sales. Investment income therefore significantly contributes towards funding the operational expenditure of the organisation, consequently the NLC is able to maximize contribution to fund good causes through grant allocations.

2. and (3) During the 2019/20 financial year, the NLC had only one investment with Rand Merchant Bank which had an initial investment period of five years. The investment has subsequently matured and the NLC is in the process of re-investing.

-END-

27 November 2020 - NW2555

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)What (a) return is the National Lotteries Commission (NLC) getting on each investment that it has and (b) are the full relevant details of the list of impairments on advances and/or investments; (2) what is the investment criteria policy of the NLC’s investment committee, including the (a) type of investment (details furnished), (b) duration and/or period of the investment, (c) the investment quality (details furnished) and (d) which investments are not permitted?

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.

(1)(a) In the 2019/20 financial year the NLC achieved a return of 8,42%.

(b) In terms of Generally Recognised Accounting Practice (GRAP) 104, the NLC had fair value adjustment of R9,2 million during the 2019/20 financial year.

(2)(a) The NLC has an approved investment policy in compliance with Treasury Regulation 31.3.1. The following principles are noted from the approved investment policy-

i) The pillars of the investment policy include amongst other Capital Preservation and maximization of returns.

ii) Monies that may be placed in long term investment products should be with banks that have bank guaranteed deposits

(b) In accordance with the approved investment policy, NLC investments in maturity periods of between 3 months to long-term of 5 years.

(c) The banks with which NLC invests are rated by the various rating agencies. The investment quality is determined by the investment ratings given by the rating agencies.

(d) The NLC is guided by an approved investment policy. Investments that do not have capital preservation are not permitted.

-END-

27 November 2020 - NW2623

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)What (a) amount did his (i) department and/or (ii) Ministry spend on vehicle hire for (aa) himself and (bb) the Deputy Ministers (i) Ms N Gina and (ii) Mr F Z Majola and (b) are all the relevant details in each case; (2) whether he has found that hired vehicles have been used in place of ministerial vehicles assigned to (a) him and (b) the Deputy Ministers; if not, what is the position in this regard; if so, what are the (i) reasons and (ii) relevant details; (3) whether he will furnish Mr M J Cuthbert with a list of all of the service providers used to hire vehicles for him and the specified Deputy Ministers; if not, why not; if so, on what date? NW3337E

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.

-END-

27 November 2020 - NW2584

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Roos, Mr AC to ask the Minister of Trade, Industry and Competition

With reference to his reply to question 1293 on 18 November 2019, wherein he indicated that the second phase of the Ekandustria Revitalisation Programme has not been initiated yet pending funding approval, what (a) are the reasons that was no budget set aside in the 2019-20 financial year for the specified programme, (b) further phases and deliverables are planned in the (i) 2020-21 and (ii) 2021-22 financial years, (c) are the budgetary estimates for expenditure in the (i) 2020-21 and (ii) 2021-22 financial years and (d) is the quantum in Rand of funding that has been approved in the 2020-2021 financial year?

Reply:

I am advised by the Department as follows:

a) In the previous reply, the reference to “funding approval” refers to applications from the Mpumalanga Economic Growth Agency/Ekandustria Industrial Park for funding for the second phase, from funds available within the dtic budget. The application for funding for Ekandustria Industrial Park was presented to the dtic Critical Infrastructure programme and referred back on for the Industrial Parks Management - Mpumalanga Growth Agency (MEGA) to provide supporting information on a number of areas including the following:

  1. A maintenance plan for the industrial park;
  2. Investment promotion and potential investors pipeline;
  3. Security measures to be put in place to attend to continuous crime in the industrial park; and
  4. Progress on restoring the waste-water treatment plant which was revitalised in phase 1 and has since been decommissioned due to crime.

The Critical Infrastructure Programme referred back the Application for Phase 2 for Ekandustria on 3 July 2018, for additional information that was required. the dtic and the DBSA engaged the Mpumalanga Economic Growth Agency MEGA and sent written communication on 27 August, 2018. The revised application has since been received on 10 November, 2020.

The Ekandustria Industrial Park has had significant challenges with several service delivery protests that impacted the revitalization programme, resulting in work stoppages during the first phase and protests continued after the first phase had been completed. The management of MEGA decided to slow down the revitalization process during this time due to the risk that would impact on the assets, the staff of MEGA and the Construction team.

Should the application meet on the necessary requirements it will be presented to the next sitting of the Critical Infrastructure Programme for funding in the fourth quarter.

b) Further phases are dependent on the urgent needs of the industrial park and the programme responds to the applications submitted. A guide for the phases is as follows –

Phase 1: Security infrastructure upgrade, fencing, lighting, critical top structures and electrical requirements - The first phase requirements was requested by the industrial parks management agencies who have been experiencing high crime levels.

Phase 2: Compliance to regulatory requirements – Landfill sites; Waste and Water treatment plants, Fire, Health & Safety Requirements, and Renewable energy initiatives.

Phase 3: Engineering designs and construction of new and existing roads, bulk water supply and sewage treatment plants or industrial effluent control.

Phase 4: Upgrading electricity infrastructure, and build new top structures in line with the expansion programme of the Parks.

Phase 5: Development of vacant land and sustainable industrial clusters in the Parks.

(c)&(d) The budgetary estimates for expenditure and the quantum in Rand of funding approved in the 2020-2021 financial year is not available as the dtic has not approved any application for the Ekandustria Industrial Park yet.

-END-

27 November 2020 - NW2657

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Msane, Ms TP to ask the Minister of Trade, Industry and Competition

(1)What total number of poultry farms that are 100% black-owned (a) will participate in the new localisation designation report and (b) are not affiliated with the SA Poultry Association? (2) What total number of 100% black-owned companies that produce poultry feed are assisted by the Government? [NW3372E]

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.

-END-

02 October 2020 - NW1851

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Msane, Ms TP to ask the Minister of Trade, Industry and Competition

Given that the African Development Bank approved funding to the Northern Cape amounting to R3 billion and further funding amounting to USD658 million from a Saudi Arabian renewable energy developer company ACWA Power, meant to create more than 800 jobs and supply power to more than 210 000 homes once operational, what (a) progress has been made to date on the 100MW Redstone concentrated solar thermal power plant, noting that the specified project was meant to be in its commissioning stage in 2018 and (b)(i) total number of jobs have been created and (ii) in what trades?

Reply:

The project in question has not yet reached financial close.Consequently there is no construction taking place and therefore no jobs to measure.

21 September 2020 - NW2151

Profile picture: Cuthbert, Mr MJ

Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

Whether he will furnish Mr M Cuthbert with a list of official overseas trips that a certain person (name furnished) has taken during her tenure at his department, including the (a) cost, (b) destination and (c) purpose of each trip; if not, what is the position in this regard; if so, 2) whether the specified person ever received any gifts from Ithuba; if not, what is the position in this regard; if so, 3) whether the gifts were declared to his department; if not, why not; if so, what are the relevant details?

Reply:

1. I am advised that according to the Department of Trade, Industry and Competition (the dtic) records, the specified person travelled overseas as detailed below and that all trips undertaken were aligned to the functions for which the official is responsible and were duly authorised by the delegated authority.

No

Destination (b)

Date

Cost (a) in Rand (R)

Purpose of each trip (c)

1

Boston

Oct 2011

73 727,00

Learning and development intervention.

2

Beijing and Shanghai

Nov 2011

61 661,00

Attended the SA EXPO in Beijing and Shanghai as part of the Dept’s trade promotion programme.

3

Boston

Mar 2012

73 596,00

Learning and development intervention.

4

Boston

Apr 2013

63 296,00

Attended the 2013 Governance, Risk Management and Compliance Summit.

5

Kuala Lumpur

Jun 2013

35 454,00

Invited to attend The Global Summit for Women 2013 in Kuala Lumpur, Malaysia.

6

Brazil

Aug 2013

57 077,00

Conducted an international benchmarking study in Brazil pertaining to Public Entities and Statutory Institutions.

7

Washington

Nov 2013

75 843,00

Attended the 17th Annual KM World Conference & Exposition in Washington.

8

Paris

Jun 2014

59 026,00

Attended the Global Summit of Women in Paris.

9

Washington

Jul 2014

77 898,00

Attended and participated in the AGOA Forum and the business engagements on the margins of US-Africa Leaders’ Summit. Provided support to the Minister.

10

Brazil

Oct 2014

69 708,00

Led the delegation for the 6th Investment and Trade Initiative (ITI) in Brazil.

11

Washington

Nov 2014

96 567,39

Learning and Development Conference in Washington.

12

Atlanta and Santa Fe

Jul 2015

100 311,72

Trade promotion programme to Atlanta & Santa Fe. Supported the Deputy Minister.

13

California and St Louis

Oct 2015

104 453,72

Learning and Development intervention.

Also met with Showroom Management Company regarding the trade promotion Hub in Atlanta.

14

Hong Kong

Mar 2016

60 916,72

Participated in the Trade Promotion Expo.

15

Atlanta

Jul 2016

119 081,23

Participated and attended the trade promotion programme in Atlanta.

16

Moscow

Sept 2016

48 688,23

Attended and participated in the national Pavilion in Moscow.

17

Washington

Nov 2016

64 713,23

Learning and development intervention.

18

Atlanta and Miami

Nov 2016

100 375,23

Participated in the trade promotion programme.

19

San Diego

Apr 2017

125 456,23

Meeting with institutional buyers regarding the trade promotion programme.

20

Doha Qatar

Apr 2017

60 793,23

Attended the International Conference on Chemical Disarmament and Security as part of council function.

21

Atlanta

Jul 2017

97 586,29

Participated in the Trade Promotion programme.

22

Atlanta

Jan 2018

80 163,29

Participated in the Trade Promotion programme.

23

Atlanta

Jul 2018

64 021,68

Participated in the Trade Promotion programme.

24

New York, Philadelphia and Orlando

Oct 2018

119 116,68

Participated in the outward mission as part of the Trade Promotion programme.

25

Atlanta

Sept 2019

90 927,93

Facilitated the Trade Promotion project closure.

26

Geneva, Germany and the United Kingdom

Nov 2019

101 427,93

Part of SABS administration function to address a session of the United Nations Economic Commission for Europe Working Party on Regulatory Cooperation and Standardisation Policies and undertook benchmarking visits to the British Standards Institute (BSI), German National Standards Body (DIN) and Swiss Standards Body (SNV).

2. The specified person received the following gifts from Ithuba in 2016 when representing the Department at the launch of Ithuba’s new “Raffle” game:

  • 1 box of chocolates;
  • Two wine glasses;
  • 1 pair of Jenna Clifford earrings; and
  • Soap.

3. I am advised that the gifts were disclosed to the Department in 2016.

-END-

21 September 2020 - NW2156

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

Whether, with reference to his reply to question 737 on 25 May 2020, he received the information requested from the provinces; if not, by what date does he envisage to receive such information; if so, will he furnish Mr. M Waters with the further relevant details? [

Reply:

Following my reply to PQ 737, I requested the Department to contact the provincial regulators and ask for information to advise on further steps that national government may need to take.

Information was received from the Eastern Cape, Gauteng, Limpopo, Mpumalanga, North West, KwaZulu-Natal and Western Cape provinces. I am advised that no information was received as yet from the Free State and Northern Cape.

The provincial liquor regulators form part of the National Liquor Regulators Forum (NLRF), which also consist of the South African Police Services (SAPS). SAPS indicated that in order to address liquor abuse as a contributor to contact crime as well as serious violent crimes, the National Crime Combatting Forum (NCCF) Instruction 2 of 2019 was issued to address the policing of the legal and illegal liquor trade from 01 April 2019 to 31 March 2020.

All provinces were instructed to plan and execute joint liquor control operations to ensure compliance by liquor traders with the provisions of national and provincial liquor legislation, focusing specifically on licensed liquor premises and illegal liquor outlets in close proximity of schools. This focused operational approach ensured the termination of illegal liquor trade at 2 279 unlicensed liquor outlets which were located in close proximity of schools.

With the country now at Level 1 and with the return of full government functions, further steps will be taken to request the outstanding information from the two provinces. The replies from provinces will form the basis for consideration by national government and where challenges were identified (e.g. the need for a clear and empowering legislative framework to enable provinces to take additional action), this is currently under consideration. On completion of these processes, a report will be prepared.

-END-

21 September 2020 - NW2152

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

Whether his department ever investigated allegations of the awarding of incentives through the Industrial Financing Branch to family members of certain persons (names furnished); if not, what is the position in this regard; if so, (a) what was the outcome in each case and (b) will he furnish Mr M J Cuthbert with the further relevant details? [

Reply:

I am advised by the Director-General that the Department has not received any allegations of the awarding of incentives through the Industrial Financing Branch to family members of the officials mentioned.Therefore, no investigations have been necessary.

-END-

21 September 2020 - NW2150

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

(1)Whether, with reference to his reply to question 1107 on 22 June 2020, a certain person (name furnished) (a) took and (b) was approved for sabbatical leave on more than one occasion prior to 9 February 2018 to 8 February 2019; if so, what are the relevant details (2) whether the sabbatical leave of the specified person was approved in line with the regulations of the Department of Public Service and Administration; if not, what is the position in this regard; if so, (a) for how long was the leave taken and (b) on what date was each leave segment taken?

Reply:

I am advised by the Department that:

1. The sabbatical leave was not taken. The employee in question was granted an International Scholarship and sabbatical leave was approved for this purpose for the period 1 October 2017 until 30 September 2018. Due to personal circumstances, the employee could not take up the scholarship and returned to work on 27 November 2017 and the sabbatical leave for the period 1 October 2017 until 24 November 2017 was subsequently converted to unpaid leave and is being recovered.

2. The sabbatical leave for the period 9 February 2018 to 8 February 2019 was approved in line with the Departmental policy on sabbatical leave as the Department of Public Service and Administration does not specifically provide for sabbatical leave, but allows departments to determine their own sabbatical leave policies.

a) The original approval was granted for a period of 12 months, from 9 February 2018 until 8 February 2019. The Accouting Officer did, however, approve a deviation from the 12 months consecutive sabbatical leave to allow for taking the leave in non-consecutive intervals as and when required, provided that the total period of leave taken does not exceed 12 months (261 working days). However, the employee took 249 working days out of the 261 working days; and

b) A breakdown of each period taken is provided in the table below:

2018

Period

No. of working days

09.02.2018 – 22.02.2018

10

27.02.2018 – 07.03.2018

7

29.03.2018 – 10.05.2018

27

01.06.2018 – 22.06.2018

16

02.07.2018 – 06.07.2018

5

13.08.2018 – 31.08.2018

15

10.09.2018 – 18.09.2018

7

12.11.2018 – 26.11.2018

11

 

98 working days

2019

21.01.2019 – 08.02.2019

15

18.02.2019 – 29.03.2019

29

08.04.2019 – 16.04.2019

7

06.05.2019 – 14.05.2019

6

10.06.2019 – 21.06.2019

9

26.06.2019 – 28.06.2019

3

08.07.2019 - 30.07.2019

17

31.07.2019 – 04.09.2019

25

06.09.2019 – 20.09.2019

11

23.09.2019

1

25.09.2019

1

03.10.2019 – 08.11.2019

27

 

151 working days

Total working days taken

249 working days

-END-

11 September 2020 - NW2038

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De Freitas, Mr MS to ask the Minister of Trade, Industry and Competition

With reference to his reply to question 555 on 25 May 2020, (a) what are the details of the progress achieved to date for each company and (b) how is the progress (i) monitored and (ii) reported in each case? [

Reply:

 

Eight (8) companies made commitments totalling R36.2 billion at the previous two South African Investment Conferences held in 2018 and 2019 respectively, as detailed in my reply to question 555.

These are private sectors investments and hence companies do not report progress publicly. However, feedback, monitoring and reporting on progress is facilitated through the project management function of InvestSA, who is in regular communication with the companies who have made investment commitments. InvestSA also facilitates inter-governmental cooperation to help unblock challenges which these projects may be experiencing.

While the economic impact of the COVID-19 pandemic has interrupted progress on some of the investments in the tourism and hospitality sectors, I am advised that a number of projects are under construction.

Further progress will be reported at the 3rd South African Investment Conference, which is expected to be held later this year.

 

02 September 2020 - NW1824

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Msane, Ms TP to ask the Minister of Trade, Industry and Competition

Mrs T P Msane (EFF) to ask the Minister of Trade, Industry and Competition: (a) What total number of black-owned specifically Broad-Based Black Economic Empowerment Level 1 companies have received assistance from the National Empowerment Fund under the programme Corporate Fund sub-programmes Project Finance, and Liquidity & Warehousing and (b) under what trades are the specified companies? [NW2196E]

Reply:

I am advised by the Mrs Philisiwe Mthethwa, CEO of National Empowerment Fund (NEF), that the NEF does not have a Fund referred to as the Corporate Fund. The funding products listed in the question are housed under the NEF’s uMnotho Fund.

Mrs Mthethwa has provided the following information in respect of the uMnotho Fund:

 

“Brief description of uMnotho Fund:

uMnotho Fund is designed to improve access for medium-sized black businesses and has the following six funding products:

  1. Acquisition Finance,
  2. New Ventures Finance,
  3. Expansion Finance,
  4. Capital Markets Fund,
  5. Liquidity and Warehousing and
  6. Property.

These products provide capital to black-owned and-managed enterprises as well as to black entrepreneurs who are provided with expansionary acquisition finance that allows black majority shareholding in companies, new ventures finance and black businesses that are or wish to be listed on the JSE. Funding ranges from R2 million to R75 million.  The Fund is priced to achieve returns that are in line with the level of risk taken by the NEF. 

uMnotho Fund performance since inception to date:

The Fund since inception to date has invested R3.3 billion in black transactions by value of investment. These investments have benefited over 143 companies that are black-owned and managed. Over 20 290 jobs have been supported through this Fund. The sectors invested include but are not limited to Property, Transportation, Tourism & Entertainment, Arts & Culture, Media, Construction, Energy etc.

Funding products under inquiry:

(i) uMnotho Liquidity & Warehousing portfolio

  • Since inception to date the NEF has invested R154.4 million under Liquidity & Warehousing and by volume this amounts to 5 companies supported under this portfolio.
  • Total jobs supported is 3 496.

(ii) uMnotho New Ventures Finance portfolio

  • Since inception to date the NEF has invested R1.2 billion by value and by volume this equates to 63 companies supported.
  • Total jobs supported is 9 164"

-END-

21 August 2020 - NW1708

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)On what date will the preliminary report of the investigation into the National Lotteries Commission (NLC) be tabled to the Portfolio Committee on Trade, Industry and Competition; (2) with reference to his letter to the chairperson of the Portfolio Committee on Trade, Industry and Competition dated 15 June 2020, in which he mentioned that his department was investigating four projects related to the NLC yet his response regarding the preliminary report only refers to one project, (a) why is that the case and (b) what are the relevant details thereof? NW2098E

Reply:

In the letter addressed to the Chairperson of the Portfolio Committee on Trade and Industry on 15 June 2020, I advised that I have received various allegations of maladministration at the National Lotteries Commission, particularly relating to irregularities in respect of pro-Active Funding. When these allegations were brought to my attention, I requested an independent investigation on the matters. The ad-hoc release of information flowing from the current process may compromise the investigation and I will accordingly provide the additional information as soon as the processes warrant and permit it. I can confirm that the investigation commissioned is currently considering four projects.

-END-

21 August 2020 - NW1782

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

(1)With regard to his replies to questions, (a) 1109 on 22 July 2020 and (b) 1039 on 20 July 2020, what (i) was the purpose of each grant stipulated in the annexures and (ii) are the details of the geo-coordinates of the location of each project including longitude and latitude coordinates; (2) (a) what (i) are the reasons that the grants to Denzhe House Regeneration were omitted from the above replies and (ii) is the value of each grant they received irrespective of value and for which financial years and (b) other grants to other entities were omitted from the above replies? NW2173E

Reply:

I have received a reply from the National Lotteries Commission requesting additional time in replying to the first part of the question (1), which I reproduce in full.I have advised the NLC that the shift to lockdown level 2 should enable them to commence immediately with collection of geo-coordinates.

In respect of the second part of the question (2), the NLC provided a reply that reflects the NLC position, and which has not been independently verified. As more information becomes available following the processes that I have initiated, these will in due course be made available:

1. NLC reply: “The NLC submitted a list of organisations that received R 10 Million or greater and top 50 organisations that received highest funding in the past 10 years. The list comprised of the name of the funded organisation, the amount funded, the province where the funded organisation comes from and the year in which the organisation was funded. The NLC list did not include the purpose of each grant and the details of the geo-coordinates of the location of each project including longitude and latitude coordinates.

In order to provide information relating to the purpose of each grant, the NLC will have to go through the individual project files to ascertain the purpose of each project which will take some time as some of the information is in the legacy Grant Management System (GMS) which is no longer used as requested information dates as far back as 10 years ago. The NLC is not in possession of information regarding the geo-coordinates of the location of each project including longitude and latitude coordinates. The NLC will have to travel to all locations of funded projects across the country to get the exact geo-coordinates. With the current nation-wide lockdown regulations, it will be a challenge for the NLC to visit all relevant projects that were funded within the past 10 years. The required geo-coordinates can be provided post the nation-wide lockdown.

In light of the above, the NLC would like to kindly request the extension for the submission of the information regarding the purpose for each grant as requested above to the second week of September 2020. The NLC further request that the submission of geo-coordinates of the location of each project including longitude and latitude coordinates be deferred to post nation-wide lockdown.”

2. NLC reply: “Grants made to Denzhe were not omitted from the supplied list. The list was provided per allocation in line with the set threshold of R10 million or above and top 50 highest funded organisation in the past 10 financial years. Denzhe funding of R17 million is on the list for organisations that were allocated R10 million or above in the past 10 years. The allocations for Denzhe are as follows:

a)  R 17 000 000 - October 2016 (Charities Sector)

b) R 5 000 000 - March 2017 (Sports and Recreation Sector)

c) R 4 666 658. 79 - January 2018 (Charities Sector)

d) R 918 966. 50 - January 2018 (Sports and Recreation Sector)

Grants for other organisations were not omitted. The list was provided per allocation in line with the set threshold of R10 million or above and top 50 highest funded organisation in the past 10 years.”

-END-

21 August 2020 - NW1671

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Abrahams, Ms ALA to ask the Minister of Trade, Industry and Competition

Whether a certain company (name furnished) that was launched on 6 June 2018 by his department is still being funded through the Black Industrialists Scheme; if so, what is the (a) funding transfer agreement, (b) contract thereof and (c) total amount of funding awarded to the specified company to date?

Reply:

I am advised by the Department that the company referred to in the question has been approved for a R8 million grant funding for machinery and equipment, commercial vehicles and business development services, under the Black Industrialist Scheme in the 2016/2017 financial year. To date an amount of R4,89 million has been disbursed towards machinery and equipment. The project is still active with the balance of R3,1 million available.

-END-

21 August 2020 - NW1611

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

Whether he will provide Mr M J Cuthbert with a detailed list of all (a) logistics, (b) catering, (c) venue hire, (d) musician hire and (e) advertising terms of the budget spent for all National Lottery roadshows that took place in the 2019-20 financial year? [

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.

2019/20 Activities

Total Budget Spent

A summary of activities attached

a) Logistics

R 5 723 997.37

 

b) Catering

R 1 509 085.20

 

c) Venue hire

R 879 758.42

 

d) Music hire

R 65 000.00

 

e) Advertising

R 2 612 647.75

-END-

21 August 2020 - NW1529

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

With reference to the reply of the Minister of Sports, Arts and Culture to question 197 on 27 May 2020, (a) for what specified purpose did the National Lottery allocate R4 million to the SA Sports Confederation and Olympic Committee (SASCOC) and (b) on what date (i) did (SASCOC) apply for the money and (ii) was the money transferred to SASCOC?

Reply:

I have been furnished with a reply to the question submitted, by MsThabangMampane, Commissioner of the National Lotteries Commission, which is reproduced below.

Response from the National Lotteries Commission:

The South AfricanSports Confederation and Olympic Committee (SASCOC) applied for funding relating to Commonwealth Games in Glasgow on the 14th July 2014. The application was adjudicated on the 28th May 2015 and an amount of R 4 000 000.00 was granted. The approved funds were paid directly to SASCOC.”

-END-

21 August 2020 - NW1527

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)What are the details of the events that led to Moody’s downgrading, from Ba1 to Ba 2, of the credit rating of the Industrial Development Corporation (IDC); (2) What are the details of the action steps that his department intends to implement to restore the IDC’s credit rating by Moody’s to Ba1; (3) What are the implications of the credit rating downgrade for COVID-19 relief funding which according to his departmentis to be disbursed by the IDC?

Reply:

The Moody’s downgrade of the Industrial Development Corporation (IDC) to Ba2 from Ba1 appear to be based principally on concerns about the preparedness of Government to support public entities, and the timeliness of any decision to offer such support. This follows challenges with timely provision of funding for the Land and Agricultural Development Bank to make payments of maturing credit facilities and payments relating to SAA.

Moody’s recognised that the IDC “is still one of the stronger credits in the country, primarily reflecting the company's high capital buffers.”Moody’s further highlighted that the “IDC has strong capitalisation, with an equity-to-total assets ratio of 66% as of March 2019, which provides significant buffers to absorbunexpected losses and grow the business further.”

Moody’s assessment of the assumption of government support has been reduced from high to strong, and as a result the rating for the IDC to be downgraded. A similar rerating of the Development Bank of SouthernAfrica has been effected, for similar reasons.

As the principal factors relate to Moody’s assumptions on the sovereign, the IDC Board and Management will reinforce the point about the IDC’s capital buffers in engagement with Moody’s.

The IDC’s commitment to the COVID-19 relief funding remains i.e. the COVID-19 relief funding has not been affected by the credit downgradebecause IDC is managing prudently within its Liquidity Framework. The IDC continues to receive funding applications in this regard and perform the necessary credit assessments.

-END-

31 July 2020 - NW1431

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Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)Whether a certain person (name furnished) and/or any company with which he is associated is part of the media and communications service provider database and/or panel of the National Lotteries Commission (NLC); (2) whether the specified person and/or any associated company of which he is a part has ever received any remuneration from the NLC in return for services rendered; if so, (a) on what date and (b) what was the value of the services rendered? NW1802E

Reply:

MsThabangMampane, Commissioner of the National Lotteries Commission furnished me with a reply to the question submitted, which is reproduced below.

Reply by the National Lotteries Commission, MsThabangMampane:

1. Mr. TebogoSithathu is not part of the media and communications service provider database and/or panel of the National Lotteries Commission. To the best of NLC records, no companies associated with Mr. TebogoSithathuare part of the media and communications service provider database and/or panel of the National Lotteries Commission.

2. Mr. TebogoSithathu has never received any remuneration from the NLC in return for services rendered. To the best of NLC records, no companies associated with Mr.TebogoSithathu have ever received any remuneration from the NLC in return for services rendered.

-END-

13 July 2020 - NW1355

Profile picture: Cuthbert, Mr MJ

Cuthbert, Mr MJ to ask the Minister of Trade, Industry and Competition

(1)Whether he will furnish Mr M J Cuthbert with a list of legal service providers who have rendered legal services on a consultancy and/or other basis to the National Lotteries Commission (NLC) over the past five financial years; if not, why not; if so, what are the relevant details; (2) whether he will furnish Mr M J Cuthbert with a list of lawyers and/or law firms that are part of the NLC’s selection panel of legal practitioners that are regularly used for legal matters involving the NLC; if not, why not; if so, what are the relevant details; (3) whether a certain firm and/ or person (names furnished) has ever rendered services to the NLC in any of the above specified capacities; if not, what is the position in this regard; if so, what are the relevant details? NW1725E

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.

Reply by the National Lotteries Commission, Ms Thabang Mampane:

  1. “The panels for the past financial years (2015/16 to date) were established following a supply chain process as prescribed by the Public Finance Management Act (No.1 of 1999 as amended) (“PFMA”), National Treasury Regulations- Practice Notes, Instructions, Circulars and Letters, Preferential Procurement Policy Framework Act (No. 5 of 2000) (“PPPFA”) and Regulations, 2011, Broad Based Black Economic Empowerment Amendment Act (No. 46 of 2013, amongst other legislation, as well as NLC’s Supply Chain Management Policy. The NLC’s panel of attorneys list for the past financial years (2015/16 to date) are detailed as below. The NLC did not have a panel prior to the years depicted herein.”

Table 1:

Bid Number

Name of Legal Firm

Duration

End-Date

RFP/2013-4HL

M.L Mateme Incorporated (PTY) LTD

36 Months

1-May-17

RFP/2013-4HL

Gildenhuys Malatji Incorporated

36 Months

1-May-17

RFP/2013-4HL

Routledge Modise Attorney (T/A Hogan Lovells)

36 Months

1-May-17

RFP/2013-4HL

Rooth and Wessels Incorporated (PTY) LTD

36 Months

1-May-17

RFP/2013-4HL

Maponya Inc

36 Months

1-May-17

RFP/2013-4HL

Denga Incorporated (PTY) LTD

36 Months

1-May-17

RFP/2013-4HL

Poswa Incorporated

36 Months

1-May-17

RFP/2013-4HL

Adams & Adams

36 Months

1-May-17

RFP/2013-4HL

Ngeno & Mteto Inc

36 Months

1-May-17

RFP/2013-4HL

Malebye Incorporated

36 Months

1-May-17

Table 2:

Bid Number

Name of Legal Firm

Duration

End-Date

NLC/2017-3

Raphela Inc Attorney

36 Months

22-Aug-20

NLC/2017-3

Padi Inc

36 Months

22-Aug-20

NLC/2017-3

Nozuko Nxusani Inc

36 Months

22-Aug-20

NLC/2017-3

Morare Thobejane Inc

36 Months

22-Aug-20

NLC/2017-3

Moche Attorneys

36 Months

22-Aug-20

NLC/2017-3

Malebye Motaung Mthembu Inc

36 Months

22-Aug-20

NLC/2017-3

Manong Pilane Mokotedi Inc

36 Months

22-Aug-20

NLC/2017-3

Diale Mogashoe Inc

36 Months

22-Aug-20

NLC/2017-3

Ndobela Lamola Inc.

36 Months

22-Aug-20

Table 3:

Bid Number

Name of Legal Firm

Duration

End-Date

NLC/2019-2

Malatji Kanyane Inc

36 Months

31-Aug-22

NLC/2019-2

Spoor & Fischer

36 Months

31-Aug-22

NLC/2019-2

Moeti Kanyane Inc

36 Months

31-Aug-22

NLC/2019-2

Gildenhys Malatji Inc

36 Months

31-Aug-22

NLC/2019-2

Cheadle Thompson & Hayson Inc

36 Months

31-Aug-22

NLC/2019-2

Ramushu Mashile Twala

36 Months

31-Aug-22

NLC/2019-2

Mfenyana Attorneys

36 Months

31-Aug-22

NLC/2019-2

Lannard Paul Cowen

36 Months

31-Aug-22

NLC/2019-2

Mathopo Mashimane Mulangaphume

36 Months

31-Aug-22

NLC/2019-2

Poswa Inc

36 Months

31-Aug-22

NLC/2019-2

Hogan Lovells

36 Months

31-Aug-22

NLC/2019-2

Maphosa Attorneys

36 Months

31-Aug-22

2. “The NLC’s panel of attorneys regularly used for legal matters involving the NLC depends on their areas of expertise/legal scope and/or availability including urgency, where applicable. The issue of capacity and/or resources are considered while an attempt is made to reach as many as possible. On the list below, all but two law firms have done work for the NLC. Since this is a panel, the NLC endeavours’ to ensure that as many law firms as possible are allowed the opportunity to do work, though this is not a guarantee. The details are as follows:”

Table 4:

Bid Number

Name of Legal Firm

Duration

End-Date

NLC/2017-3

Raphela Inc Attorney

36 Months

22-Aug-20

NLC/2017-3

Padi Inc

36 Months

22-Aug-20

NLC/2017-3

Nozuko Nxusani Inc

36 Months

22-Aug-20

NLC/2017-3

Morare Thobejane Inc

36 Months

22-Aug-20

NLC/2017-3

Moche Attorneys

36 Months

22-Aug-20

NLC/2017-3

Malebye Motaung Mthembu Inc

36 Months

22-Aug-20

NLC/2017-3

Manong Pilane Mokotedi Inc

36 Months

22-Aug-20

NLC/2017-3

Diale Mogashoe Inc

36 Months

22-Aug-20

NLC/2017-3

Ndobela Lamola Inc.

36 Months

22-Aug-20

NLC/2019-2

Malatji Kanyane Inc

36 Months

31-Aug-22

NLC/2019-2

Spoor & Fischer

36 Months

31-Aug-22

NLC/2019-2

Moeti Kanyane Inc

36 Months

31-Aug-22

NLC/2019-2

Gildenhys Malatji Inc

36 Months

31-Aug-22

NLC/2019-2

Cheadle Thompson & Hayson Inc

36 Months

31-Aug-22

NLC/2019-2

Ramushu Mashile Twala

36 Months

31-Aug-22

NLC/2019-2

Mfenyana Attorneys

36 Months

31-Aug-22

NLC/2019-2

Lannard Paul Cowen

36 Months

31-Aug-22

NLC/2019-2

Mathopo Mashimane Mulangaphume

36 Months

31-Aug-22

NLC/2019-2

Poswa Inc

36 Months

31-Aug-22

NLC/2019-2

Hogan Lovells

36 Months

31-Aug-22

NLC/2019-2

Maphosa Attorneys

36 Months

31-Aug-22

“All the Legal Firms that are on the panel were utilized by the NLC, with the exception of Ramushu Mashile Twala and Mathopo Mashimane Mulangaphume.”

(3) “Ramulifho Inc. or Lesley Ramulifho is not on the NLC panel of attorneys. Ramulifho Inc. has rendered legal services for labour related issues to the then National Lotteries Board now the NLC. This was approximately around 2014, prior to the advent of the panel of legal service providers.”

-END-

06 July 2020 - NW1140

Profile picture: Mulder, Mr FJ

Mulder, Mr FJ to ask the Minister of Trade, Industry and Competition

1. With reference to his reply to question 923 on 2 June 2020, what (a) is the name of each company from which the specified goods and/or services were purchased, (b) is the amount of each transaction and (c) was the service and/or product that each company rendered; 2. Whether there was any deviation from the standard supply chain management procedures in the specified transactions; if so, (a) why and (b) what are the relevant details in each case; 3. What were the reasons that the goods and/or services were purchased from the specified companies; 4. Whether he will make a statement on the matter? NW1440E QUESTION FOR WRITTEN REPLY Question No 1140 Mr F J Mulder (FF Plus) to ask the Minister of Trade, Industry and Competition With reference to his reply to question 923 on 2 June 2020, what (a) is the name of each company from which the specified goods and/or services were purchased, (b) is the amount of each transaction and (c) was the service and/or product that each company rendered; Whether there was any deviation from the standard supply chain management procedures in the specified transactions; if so, (a) why and (b) what are the relevant details in each case; What were the reasons that the goods and/or services were purchased from the specified companies; Whether he will make a statement on the matter? NW1440E REPLY I have been provided with the requested information by the Chief Financial Officer (CFO) of the Department and following the tabling of the information, no statement appear to be necessary. The information supplied by the CFO is as follows: The service providers for the specified goods are as follows: Service provider Goods provided Total amount (R) Multisurge (Pty) Ltd Masks 69 000 Evergreen Gloves 2 493 Triple N Medical Supplies Gloves, masks, hand sanitiser 117 301   188 794 There were no deviations from standard supply chain management procedures. The procurement for PPE was done in line with the initial Instruction Note from NT in which NT identified and provided a list of suppliers on which the State could urgently procure PPE from identified suppliers. Procurement was assessed and awarded in line with National Treasury prescripts for procurement as per the Health and Safety guidelines issued by the Department of Public Service and Administration due to the Covid-19 pandemic. -End-

Reply:

I have been provided with the requested information by the Chief Financial Officer (CFO) of the Department and following the tabling of the information, no statement appear to be necessary.

The information supplied by the CFO is as follows:

1. The service providers for the specified goods are as follows:

 

Service provider

Goods provided

Total amount (R)

Multisurge (Pty) Ltd

Masks

69 000

Evergreen

Gloves

2 493

Triple N Medical Supplies

Gloves, masks, hand sanitiser

117 301

 

 

188 794

2. There were no deviations from standard supply chain management procedures. The procurement for PPE was done in line with the initial Instruction Note from NT in which NT identified and provided a list of suppliers on which the State could urgently procure PPE from identified suppliers.

3. Procurement was assessed and awarded in line with National Treasury prescripts for procurement as per the Health and Safety guidelines issued by the Department of Public Service and Administration due to the Covid-19 pandemic.

-End-

06 July 2020 - NW1205

Profile picture: Van Minnen, Ms BM

Van Minnen, Ms BM to ask the Minister of Trade, Industry and Competition

What progress has been made in the negotiations between the Seriti Holdings, Coalzar and the Industrial Development Corporation regarding the development of the New Largo Coal Fields?

Reply:

The Industrial Development Corporation (IDC) CEO advises me that the acquisition transaction has been successfully executed and the project is currently in development, including a Bankable Feasibility Study is in the process of being finalised and negotiations are underway with all key stakeholders including Eskom. The IDC has concluded it negotiations with the parties and is now a 22.5% shareholder in New Largo Coal (Pty) Ltd (NLC).

By way of background, at the end of 2015, Anglo American plc announced it would be disposing of its coal assets as part of its restructuring and drive to reduce debt. Amongst the South African coal assets was New Largo Mine, which was at an advanced feasibility study stage at the time of disposal.

The IDC, CoalZar and with the Seriti Consortium agreed to co-bid for the purchase, with the purchase price and pre-implementation costs are being funded by shareholder loans. The purchase price was funded in proportion to shareholding. The IDC funding also included funding on behalf of Employee and Community Trusts and the bankable feasibility study review and completion. Seriti and Coalzar continue to fund the New Largo’s operational costs.

The mine will be strategically developed to support Eskom’s Kusile Power Station. Given New Largo Coal’s proximity to Kusile, I am advised by the IDC that it is well positioned as a supplier, and it is expected that Kusile will purchase approximately 70% of the company’s coal production.

The IDC decided to participate in the transaction, since in its view it facilitates the creation of a significant black industrialist in the coal mining space and supports its strategy of increasing production of energy minerals that ensure security of energy supply. I am advised that the project is expected to create 1 100 direct jobs and 478 construction jobs.

The IDC’s participation in the New Largo Coal project, brings the total value of approvals to black industrialists in the mining sector to R8,4 billion since 1 April 2015, supporting 29 deals (net) in the sector over the period. Total approvals to black industrialists across all sectors totals R25,2 billion since 1 April 2015.

 

-END-

22 June 2020 - NW1045

Profile picture: Macpherson, Mr DW

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

Whether he has convened any Ministers and Members of Executive Councils meetings since the start of the national lockdown to curb the spread of Covid-19; if not, why not; if so, (a) on what date was each meeting held and (b) what was on the agenda of each meeting

Reply:

Since the start of the national lockdown, engagements with members of the Provincial Executive Councils included the following:

1. Meetings convened by the Presidency and attended with Premiers, on discussions related to the Covid-19 pandemic were held as follows:  

  • 4 April,
  • 18 April,
  • 16 May, and
  • 17 June.

2. Discussions were held between Deputy Ministers and Provincial MECs in May/June 2020, to discuss the regulation of liquor sales under Lockdown Level 3. A meeting of the Ministry with the MECs in the Economic Development Portfolio was held on 17 June 2020, covering a briefing on Covid-19 recovery plans at provincial level and views on the sale of alcohol.

-END-

22 June 2020 - NW1054

Profile picture: Mbhele, Mr ZN

Mbhele, Mr ZN to ask the Minister of Trade, Industry and Competition

On which provisions in the Lockdown Regulations did he rely to declare that an essential service certificate issued by the Companies and Intellectual Property Commission is a compulsory requirement for businesses to operate during the Lockdown to curb the spread of COVID-19? [

Reply:

The essential service certificates issued by the Companies and Intellectual Property Commission (CIPC) were not a compulsory requirement for businesses to operate during the Lockdown.

The CIPC provided a service to businesses, registered under the Companies Act, to register as essential service providers.

The status of the CIPC certificate was made clear in a statement issued by the Department on 26 March 2020. It was stated that possession of a CIPC certificate did not constitute permission to operate during the Lockdown and that companies should be guided by the Regulations as to whether they were permitted to operate.

The information on the number of companies which operated as essential (and later, ‘permitted’ services) enabled government to keep a record of the number of workers who were employed at such companies This information was important when considering the level of movement of workers outside their homes during the early phases of the lockdown; and the appropriate transport directions and regulations. It provided law enforcement officers with proof that a company’s senior management certified that it was an essential service.

Almost 500 000 companies registered on the CIPC’s Bizportal website, as essential service providers and, later, as permitted service providers under Alert Level 4.

I decided not to issue Directions that would have required companies to register, even though I was advised that the Lockdown Regulations would have permitted me to issue such Directions. I took the view that it was preferable to allow companies to determine whether their business fell within the definition of essential services in terms of the Lockdown Regulations.

With effect from 1 June 2020, and the start of Alert Level 3, the concepts of essential and permitted services no longer apply. The CIPC has therefore stopped issuing the certificates.

-- END --