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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

Profile picture: Cuthbert, Mr MJ

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 - 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 - NW2150

Profile picture: Cuthbert, Mr MJ

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

Profile picture: De Freitas, Mr MS

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 - 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 - NW1708

Profile picture: Cuthbert, Mr MJ

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

Profile picture: Waters, Mr M

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 - 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 - 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-

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-

22 June 2020 - NW1109

Profile picture: Waters, Mr M

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

(1)What (a) are the names of the top 50 organisations in the past 10 financial years that received the highest amount of funding from the National Lottery and (b) was the value of funding in each case in each specified financial year; (2) Whether the National Lottery has conducted audits on the specified organisations to ensure that the money allocated in the specified financial years was indeed spent on what was stated; if so, (a) which organisations and/or entities were audited, (b) in which year and (c) what were the adverse findings? NW1405E

Reply:

Following an initial reply from the NLC setting out the reasons why they will not be able to provide the requested information within the available time before the Parliamentary Reply was due and requesting additional time, kindly find the supplementary reply submitted by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is reproduced below.

“The names of top 50 funded organisations and the amounts are highlighted on the attached list (See Annexure A). The NLC has a fully-fledged Monitoring and Evaluation Department that monitors implementation and outcomes of funded projects. All funded organisations signs a Grant Agreement with the NLC with terms and conditions relating to how the grants are to be used. The NLC follows up on these conditions and applies its internal policies in cases on non-compliance. The NLC has sourced the services of a panel of engineers responsible to assist in providing NLC with quality assurance reviews on funded infrastructure projects. The Office of the Auditor General South Africa (AGSA) also conducts in-depth audit into NLC’s funding process. In recent years, the NLC received a negative media coverage from an on-line media publication (GroudUp) alleging a wide range of corruption in relation to certain projects that were funded by the organisation. The NLC Board appointed an audit firm, Sekela Xabiso to investigate the alleged corruption and the investigation is on-going. In addition to that, the Honorable Minister of Trade, Industry and Competition has also appointed an audit firm, Nexia, SAB&T to investigate the same allegations and the investigation is on-going as well. All findings from the relevant assurance bodies (audit/investigation) are/will be analysed and reviewed in order to ensure that proper remedial actions are implemented.”

22 June 2020 - NW1039

Profile picture: Waters, Mr M

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

(1)What (a) number of institutions and/or projects were funded to the value of R10 million or greater by the National Lottery, (b) was the funding intended for in each case and (c) are the names of the organisations that received such funding in each of the past 10 financial years; (2) whether any (a) audit and/or (b) inspection was conducted for each project in order to ensure that the money was spent on the actual purpose of the allocation; if not, what is the position in this regard; if so, what were the findings in each case?

Reply:

Following an initial reply from the NLC setting out the reasons why they will not be able to provide the requested information within the available time before the Parliamentary Reply was due and requesting additional time, kindly find the supplementary reply submitted by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is reproduced below.

Response from the National Lotteries Commission:

A total of hundred and fifty (150) organisations were funded to the value of R 10 million or greater by the National Lotteries Commission (NLC) in the past 10 financial years. The names of funded organisations and the amounts are highlighted on the attached list (See Annexure A). The NLC has a fully-fledged Monitoring and Evaluation Department that monitors implementation and outcomes of funded projects. All funded organisations signs a Grant Agreement with the NLC with terms and conditions relating to how the grants are to be used. The NLC follows up on these conditions and applies its internal policies in cases on non-compliance. The NLC has sourced the services of a panel of engineers responsible to assist in providing NLC with quality assurance reviews on funded infrastructure projects. The Office of the Auditor General South Africa (AGSA) also conducts in-depth audit into NLC’s funding process. In recent years, the NLC received a negative media coverage from an on-line media publication (GroudUp) alleging a wide range of corruption in relation to certain projects that were funded by the organisation. The NLC Board appointed an audit firm, Sekela Xabiso to investigate the alleged corruption and the investigation is on-going. In addition to that, the Honorable Minister of Trade, Industry and Competition has also appointed an audit firm, Nexia, SAB&T to investigate the same allegations and the investigation is on-going as well. All findings from the relevant assurance bodies (audit/investigation) are/will be analysed and reviewed in order to ensure that proper remedial actions are implemented.”

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 --

 

22 June 2020 - NW1107

Profile picture: Cuthbert, Mr MJ

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

(1)Whether, with reference to his reply to question 259 on 25 May 2020, he will furnish Mr M.J Cuthbert with the (a) names and (b) job titles of each employee of his department who has been on sabbatical leave since 1 January 2019; if not, in each case, why not; if so, what are the relevant details in each case; (2) whether any of the specified employees have subsequently applied for an additional period of sabbatical leave; if so, what are the relevant details of the additional period of leave (a) requested and (b) granted in each case? [NW1403E]

Reply:

I have requested the additional information and am advised as follows:

1. The names and the job titles of the relevant employees as per question 259 on 25 May 2020 who have taken sabbatical leave since 1 January 2019 and the details are as follows:

No

(a)

Name of employee

(b)

Job title

Details

     

Period

Duration

Details

1.

Ms Z Kobue

Deputy Director: Technology Architecture

1 March 2019 to 30 November 2019

9 months

Research and writing a dissertation towards an MBA

2.

Ms J.K.M

Maifadi

Assistant Director: MCEP

1 April 2019 to 30 November 2019

8 months

Research and writing a dissertation towards an MBA

3.

Mr M.M

Mahlangu

Administrative Assistant

1 October 2019 to 31 August 2020

10 months

Research and writing a dissertation towards a Masters in Business Management

4.

Ms A.T

Mashimbyi

Assistant Director: SACU

1 May 2019 to 30 November 2019

7 months

Research and writing a dissertation towards an MBA

5.

Mr N.S.C Nkuna

Director: Communication and Marketing

26 July 2019 to 25 January 2020

6 months

Research and writing a dissertation towards an MBA

6.

Ms R Raluthaga

Trade and Industry Advisor

1 August 2019 to 31 October 2019

3 months

Research and writing a dissertation towards a Masters in Public Management

7.

Ms R Ramdhani

Deputy Director: Chemicals and Allied Industries

16 August 2019 to 15 November 2019

3 months

Research and writing a dissertation towards a Postgraduate Diploma in Monitoring and Evaluation

8

Ms B.P

Phatlane

Trade and Industry Advisor

16 January 2019 to 31 March 2019

2½ months

Research and writing a dissertation towards a Masters in Public Administration

9.

Mr D.M Ndhlela

Deputy Director: Regional Industrial Development

1 April 2020 to 31 March 2021

12 months

Research and writing a dissertation towards a PhD

10.

Ms A.T.V

Lebuso

Director: Organisational Development and Transformation

1 February 2018 to 31 January 2019

12 months

Research and writing a dissertation towards a Masters in Industrial/

Organisational Psychology

11.

Ms A.A Ontong

Director: Human Resource Development

3 April 2018 to 3 April 2019

12 months

Research and writing a dissertation towards a PhD

12.

Mr S.J Melodi

Investigator

1 September 2019 to 31 December 2019

4 months

Research and writing a dissertation towards a Masters in Law

13.

Mr A.N

Makhuvela

Deputy Director: Capital Equipment and Allied Industries

1 October 2019 to 28 February 2020

5 months

Research and writing a dissertation towards a Masters in Management (Public Policy)

14.

Ms J Scholtz

Chief Operating Officer

9 February 2018 to 8 February 2019

12 months

Attendance of classes towards an MBA

15.

Ms J.R Vass

Chief Director: Skills for the Economy

1 April 2018 to 31 March 2019

12 months

Research and writing a dissertation towards a PhD

16.

Ms P.Q Myeki

Deputy Director: Industrial Climate Change Response

1 April 2019 to 31 March 2020

12 months

Research and writing a dissertation towards a Doctorate in Business Administration

(2) None of the employees have subsequently applied for an additional period of sabbatical leave.

-END-

22 June 2020 - NW1108

Profile picture: Cuthbert, Mr MJ

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

Whether, with reference to his reply to question 259 on 25 May 2020, he will furnish Mr M J Cuthbert with a detailed list of the (a) names and (b) job titles of each employee of his department who incurred expenditure on business class flights?

Reply:

In my previous response I advised that all travel in the department has been considered in line with internal policies of the department as well as National Treasury’s Instruction Note No. 04 of 2017/2018 on cost containment related to travel and subsistence.

National Treasury’s Instruction Note No. 04 of 2017/2018 allows for the following air travel arrangements for departments and constitutional institutions:

“5.7.3.2 For flights that are five (5) hours or less, business class tickets may only be purchased for:

  1. Director- Generals or persons holding equivalent ranks in departments;
  2. Persons appointed on grounds of policy considerations in terms of Section 12A of the Public Service Act, 1994 (i.e. advisors to exceutive authorities); and
  3. Accounting officers of constiutional institutions

5.7.3.3 For flights exceeding five (5) hours, business class tickets may only be purchased for:

  1. Directors- General or persons holding equivalent ranks in departments;
  2. Deputy Directors-General and Chief Directors or persons holding equivalent ranks in the department;
  3. persons appointed on grounds of policy considerations in terms of Section 12A of the Public Service Act, 1994 (i.e. advisors to exceutive authorities);
  4. accounting officers of constitutional institutions;
  5. employees at the level of management that report directly to the accounting officer of a constitutional institution;
  6. employees at the level of management that report directly to the officials referred to in paragraph (e) above and
  7. non-executive members serving on any governance committee of a department or constitutional institution.
  8. any other employee to whom authority was granted as indicated in 5.3.7.1.

5.7.3.4 Notwithstanding the provisions of 5.3.7.1, 5.3.7.2 and 5.3.7.3 above, accounting officers or delegated officials of departments and constiutional institutions may approve the purchse of business class tickets:

  1. for employees with disabilities,
  2. for employees with special needs,
  3. in cases where economy class flights are not available, or
  4. where the business class ticket is the same price or cheaper than the economy class ticket to the same destination.

In line with the above provisions, the Director-General, Deputy Directors-General, Chief Directors and officials with disabilities and special needs have travelled business class. The names of persons below the level of DDG who travelled business class, as provided by the Department, is submitted below:

Passenger

Job Title

Moosa Ebrahim

Chief Director

Molefane Maoto

Chief Director

Kruger Niki

Chief Director

Jensma Stieneke

Chief Director

Medupe Moloantoa Sidwell

Chief Director

Le Roux Adriaan

Chief Director

Mene Wamkele

Chief Director

Osman Shareen

Chief Director

Hudson Daryl

Director

Xulu Noziphozandile

Director

Mogashoa Ephraim

Deputy Director

Padayachy Meshendri

Deputy Director

Skosana Vusumuzi Jeffrey

Deputy Director

Ndikandika Nangamso

Executive Assistant

Mkhwebane Precious Nthabeleng

Personal Assistant

-END-

08 June 2020 - NW833

Profile picture: Macpherson, Mr DW

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

With reference to the risk-adjusted approach, what (a) are the specific matrix indicators that he is looking at to make recommendations to advance to Level 3 and (b) thresholds need to be met at each point in the matrix in this regard?

Reply:

The Parliamentary Question was received prior to the move of the country from Alert Level 4 to Alert Level 3. As the Honourable Member will know, effective, 1 June 2020 the entire country has moved to Alert Level 3, which permits a substantial reopening of economic activity.

As I noted in a recent Parliamentary Question, each alert level reflects a careful balance between the risk of infection and the readiness of the healthcare system. President Ramaphosa outlined the five levels of the risk-adjusted framework when he addressed the nation on 23 April 2020. As indicated by the President, when he stated:

“Level 5 means that drastic measures are required to contain the spread of the virus to save lives.

Level 4 means that some activity can be allowed to resume subject to extreme precautions required to limit community transmission and outbreaks.

 

Level 3 involves the easing of some restrictions, including on work and social activities, to address a high risk of transmission.

Level 2 involves the further easing of restrictions, but the maintenance of physical distancing and restrictions on some leisure and social activities to prevent a resurgence of the virus.

Level 1 means that most normal activity can resume, with precautions and health guidelines followed at all times.”

When determining which economic activity may be permitted under each of the alert level, Government has considered a number of elements, including, but not limited to:

  • The level of social distancing which can be maintained between co-workers and/or customers during the ordinary course of business;
  • How essential the functioning of the sector is to other businesses, including its export profile and contribution to GDP and jobs
  • Whether the sector performs critical services in the value chain of other economic sectors in South Africa;
  • Whether the sector has been able to develop appropriate health and safety protocols and whether the sector has evidenced preparedness with regards to personal protective equipment;
  • Whether the opening of the sector will result in substantially greater demand for public transport, and whether the sector is able to manage this increased demand by staggering working hours, or providing private transportation options; and
  • The economic impact of re-opening the sector on both the sector itself and the broader economy.

A careful balancing had to be achieved between the legitimate desire of the sectors and investors concerned to reopen as rapidly as possible with the critical consideration of saving lives. In addition, the cumulative effect on health risks of reopening a number of different sectors and economic activities at the same time, had to be considered.

As I also indicated in an earlier reply to a Parliamentary Question:

the dtic has been working closely with industry from manufacturing, construction and retail to get updates on infections and to identify solutions which can be rolled out to the industry.

The success of each level proposed, and the allocation of economic sectors in particular levels, is measured by the contribution to containing the spread of the virus and flattening of the curve of infections. Where necessary, changes are made to the extent of economic activity to the wider objectives of saving lives and protecting livelihoods.

The industry classification system was explained at a joint meeting of Parliamentary Committees dealing with Trade, Industry and Competition portfolio, on 1 May 2020, setting out criteria and the application of the three systems in the country moving from Level 5 to Level 4.

Government has engaged with a number of organisations, from business associations, trade unions, political parties, premiers of provinces, individual businesses and religious institutions to receive feedback on the systems and to consider representations on proposed changes.

The incremental opening of certain sectors of the economy is intended to limit the spread of the virus, and to ensure that any spikes in infections can be identified and managed. In addition, it has enabled a greater level of preparedness in society and in the health system than was the case at the start of the pandemic in South Africa.

In the run-up to the decision to move to Level 3, we engaged a number of sectors on these and other relevant considerations. In addition, Government consulted organised Business, Labour and Community representatives at the National Economic Development and Labour Council (NEDLAC) which represents big and small business; established and informal enterprises; a wide range of primary, industrial and service sectors; and community organisations.

- END -

08 June 2020 - NW798

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Trade, Industry and Competition

(1) What criteria are used to determine which sector of business can become functional at each level of the national lockdown to curb the Covid-19 pandemic; (2) whether he will make a statement on the matter?

Reply:

Effective, 1 June 2020 the entire country has moved to Alert Level 3, which permits a substantial amount of economic activity.

Each alert level reflects a careful balance between the risk of infection and the readiness of the healthcare system. President Ramaphosa outlined the five levels of the risk-adjusted framework when he addressed the nation on 23 April 2020. As indicated by the President, when he stated:

“Level 5 means that drastic measures are required to contain the spread of the virus to save lives.

Level 4 means that some activity can be allowed to resume subject to extreme precautions required to limit community transmission and outbreaks.

 

Level 3 involves the easing of some restrictions, including on work and social activities, to address a high risk of transmission.

Level 2 involves the further easing of restrictions, but the maintenance of physical distancing and restrictions on some leisure and social activities to prevent a resurgence of the virus.

Level 1 means that most normal activity can resume, with precautions and health guidelines followed at all times.”

When determining which economic activity may be permitted under each of the alert level, Government has considered a number of elements, including, but not limited to:

  • The level of social distancing which can be maintained between co-workers and/or customers during the ordinary course of business;
  • How essential the functioning of the sector is to other businesses, including its export profile and contribution to GDP and jobs
  • Whether the sector performs critical services in the value chain of other economic sectors in South Africa;
  • Whether the sector has been able to develop appropriate health and safety protocols and whether the sector has evidenced preparedness with regards to personal protective equipment;
  • Whether the opening of the sector will result in substantially greater demand for public transport, and whether the sector is able to manage this increased demand by staggering working hours, or providing private transportation options; and
  • The economic impact of re-opening the sector on both the sector itself and the broader economy.

A careful balancing had to be achieved between the legitimate desire of the sectors and investors concerned to reopen as rapidly as possible with the critical consideration of saving lives.

As I indicated in an earlier reply to a Parliamentary Question:

the dtic has been working closely with industry from manufacturing, construction and retail to get updates on infections and to identify solutions which can be rolled out to the industry.

The success of each level proposed, and the allocation of economic sectors in particular levels, is measured by the contribution to containing the spread of the virus and flattening of the curve of infections. Where necessary, changes are made to the extent of economic activity to the wider objectives of saving lives and protecting livelihoods.

The industry classification system was explained at a joint meeting of Parliamentary Committees dealing with Trade, Industry and Competition portfolio, on 1 May 2020, setting out criteria and the application of the three systems in the country moving from Level 5 to Level 4.

Government has engaged with a number of organisations, from business associations, trade unions, political parties, premiers of provinces, individual businesses and religious institutions to receive feedback on the systems and to consider representations on proposed changes.

The incremental opening of certain sectors of the economy is intended to limit the spread of the virus, and to ensure that any spikes in infections can be identified and managed. In addition, it has enabled a greater level of preparedness in society and in the health system than was the case at the start of the pandemic in South Africa.

In the run-up to the decision to move to Level 3, we engaged a number of sectors on these and other relevant considerations and looked too at the aggregate effect of multiple sectors resuming work at the same time. In addition, Government consulted organised Business, Labour and Community representatives at the National Economic Development and Labour Council (NEDLAC) which represents big and small business; established and informal enterprises; a wide range of primary, industrial and service sectors; and community organisations.

Where certain economic activities remain restricted during Alert Level 3, Government is actively engaging with some of the sectors to conduct an appropriate risk assessment and develop the necessary health and safety protocols to enable the safe re-opening of the sector.

- END -

08 June 2020 - NW831

Profile picture: Macpherson, Mr DW

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

Whether the Industrial Development Corporation of South Africa (IDC) will only allocate COVID-19 funding relief to qualifying entities according to the Broad-Based Black Economic Empowerment (B-BBEE) Act, 2003 (Act No. 53 of 2003), as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds will the IDC’s COVID-19 funding relief rely to only allocate such funding to entities according to the specified Act and (b) what form of COVID-19 funding relief will be made available to other entities? [

Reply:

During the Portfolio Committee meeting held on 26 May 2020, I addressed the overall approach by the Department to transformation. In short, transformation of the economy is both a social and economic imperative. The bitter legacy of the past has not been reversed – the process of colonial dispossession took place over more than 300 years and inherited privilege (assets, skills and networks) reproduces itself beyond the removal of apartheid laws. The Constitutional values of human dignity, the achievement of equality and the advancement of human rights and freedoms require active steps for their realisation.

The economy’s long-term growth rate will remain constrained if the level of involvement by tens of millions of citizens, black South Africans, women and young people remains low. The purpose of affirmative processes and laws is to enable this base to be broadened.

In terms of section 3 (c) of the Industrial Development Corporation (IDC) Act, the IDC has an explicit statutory mandate to promote the economic empowerment of historically disadvantaged communities and persons. This has not meant that the IDC provides funding only to black South Africans, as the Honourable Member well knows. But it does mean that the IDC must give special emphasis on the promotion of broad-based empowerment.

The qualifying criteria for COVID-19 funding are set with the primary consideration to increase the availability of essential critical personal protective equipment products to supply the local market, in order to save lives. Therefore, the funding criteria cater for ALL South African registered businesses that have capacity to supply the critical products, including but not exclusively for B-BBEE companies.

I am advised that the IDC has now approved R535,5m in funding from this envelope, of which R444m are for companies at which black South Africans hold either a controlling stake or have at least 25% equity.

We should be proud of efforts to broaden the base of the economy, promote entrepreneurship and to foster efforts at greater equity in the economy. Financial incentives should of course be only one of a number of elements to support wider levels of entrepreneurship in society in order to achieve these objectives. Transformation is good social policy. It is good economics too. Government has a legislative mandate to promote these measures and during 2019, an overwhelming majority of citizens voted for political parties which supported broad-based empowerment.

 

-END-

08 June 2020 - NW885

Profile picture: Chetty, Mr M

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

Whether his department will offer any form of Covid-19 financial or other relief to small businesses; if not, why not; if so, what are the relevant details; whether the COVID-19 financial or other relief will only be allocated to qualifying small businesses according to the Broad-Based Black Economic Empowerment (B-BBEE) Act, 2003 (Act No. 53 of 2003), as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds and/or provisions does he or his department rely to allocate COVID-19 financial or other relief only to small businesses according to the specified Act and (b) what form of COVID-19 financial or other relief, if any, will be made available to other small businesses? [

Reply:

The Department of Trade, Industry and Competition (the dtic) supported efforts by Government to provide relief to small businesses, in a number of ways. These include

  • Exemptions from certain provisions of the competition legislation to enable small retailers to meet together to discuss engagements with landlords on rental payments and evictions during the period
  • Exemptions from the same competition provisions to enable banks and financial institutions to meet to discuss ways of supporting customers, including small businesses, through among others payment holidays and other measures
  • Partnerships with development finance institutions to provide funding to among others small businesses
  • The issuing of Directions on a number of matters to support clarity and certainty to small businesses, and
  • Facilitating the local production of cloth face-masks by inter alia smaller businesses in the clothing industry.

The dtic mobilised resources for COVID-19 relief funding to support companies that are affected by the pandemic. The funding is implemented in partnership with the Industrial Development Corporation (IDC), National Empowerment Fund (NEF) and Small Enterprise Financing Agency (sefa) as an industrial loan facility, to assist manufacturers of identified critical goods to combat the spread of corona virus. Furthermore, the department has granted an extension period for submission of applications and claims to companies affected by the pandemic across various incentive programmes administered by the Industrial Financing Branch.

During the Portfolio Committee meeting held on 26 May 2020, I addressed the overall approach by the Department to transformation. In short, transformation of the economy is both a social and economic imperative. The bitter legacy of the past has not been reversed – the process of colonial dispossession took place over more than 300 years and inherited privilege (assets, skills and networks) reproduces itself beyond the removal of apartheid laws. The Constitutional values of human dignity, the achievement of equality and the advancement of human rights and freedoms require active steps for their realisation.

The goal of economic inclusion remain critical during the pandemic, as a number of smaller, more recently-established businesses owned by black South Africans, may be particularly vulnerable.

The economy’s long-term growth rate will remain constrained if the level of involvement by tens of millions of citizens, black South Africans, women and young people remains low. The purpose of affirmative processes and laws is to enable this base to be broadened and to foster wider levels of enterprise in society.

The funds deployed are available to all South African businesses, subject to the specific mandate of an entity. For example, the NEF provides funding to companies that meet its criteria, as set out in its legislation and policies. The IDC provides funding to black industrialists, in terms of section 3(c) of the Industrial Development Act. Both the IDC and NEF have also provided funding to companies with a mix of shareholding between black and white South Africans.

In addition to these efforts, the Department has also supported efforts to promote greater levels of local procurement, which can boost the participation of small businesses in the economy.

-END-

08 June 2020 - NW976

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

What is the name of each person he consulted from the credit and banking sectors regarding the possible enactment of section 11 of the National Credit Amendment Act, Act 7 of 2019;

Reply:

The pandemic together with the impact that it has on the economy is placing consumers, workers, firms and vulnerable members of society under enormous pressure.

In order to combat the rapid spread of COVID-19 as effective as possible and limit the damage to the economy, Government has taken a number of measures that have been publicised. Further measures continue to be under consideration.

During the course of addressing both the pandemic and the destructive and other effects of the disaster, the Ministry and Department has been reviewing provisions of legislation within its mandate, including the Competition Act and the National Credit Act, to identify measures that can be taken responsibly to support families and businesses in distress.

On 20 March 2020, I gazetted an exemption from sections 4 and 5 of the Competition Act, to enable banks to meet and agree on terms to support consumers and small businesses in distress. This includes payment holidays and debt relief for businesses and individuals in financial distress; limitations set on asset repossessions of businesses and individuals in financial distress; and the extension of credit lines to individuals and businesses in financial distress.

In respect of the National Credit Act, while the Act imposes prudent measures to mitigate against reckless lending by credit providers, it also contains provisions that are aimed at assisting distressed consumers in cases of disaster or other unforeseen emergencies. These include both the emergency loan provisions; and the public interest loan provisions in the Act. I am advised that, in terms of the Act, the provisions relating to reckless credit equally do not apply to either emergency loans or public interest credit agreements.

In the initial discussion with the Department and the Credit Regulator, there was a recognition of the need for additional finance and facilities that would be required over the period of the COVID-19 national disaster; at the same time, both entities were concerned about the risk of over-indebtedness to vulnerable consumers which may result from reckless lending.

Officials from the Department thus engaged with a range of industry stakeholders on the most appropriate measures to provide additional access to finance to consumers in need, while mitigating any risks which may exist. These engagements included the following:

  • Ms Nomsa Motsegare, CEO of the National Credit Regulator;
  • Mr Kuben Naidoo, Deputy Governor of the South African Reserve Bank and CEO of the Prudential Authority;
  • Mr Lungisa Fuzile, CEO of Standard Bank South Africa;
  • Mr. Cas Coovadia, Managing Director of the Banking Association of South Africa at the time;
  • Ms. Marguerite Jacobs, General Manager responsible for Legislation & Regulatory Oversight for the Banking Association of South Africa;
  • Mr Abdul Waheed Patel of Ethicore, in their capacity as advisors to Microfinance South Africa; and
  • Mr Michael Lawrence, Executive Director of the National Clothing Retail Federation.

The National Credit Regulator also engaged with the South African Reserve Bank and relevant Government entities on the matter.

In the course of the discussion with stakeholders, it was clear that the provisions of the National Credit Act were not the only, nor the most important challenge for financial institutions to provide additional credit. Banks in such circumstances are concerned about the repayment of loans advanced. This was a key rationale for the launch of the R200 billion Loan Guarantee Scheme, as a joint effort by the Government, the SARB and commercial banks.

During the consultations, industry stakeholders advised that the emergency loan provisions of the Act would achieve similar objectives to the public interest credit agreement provisions; however further guidelines on the use of the emergency loan provisions would aid the industry.

In terms of the Act, an emergency loan is defined as a credit agreement entered into by a consumer to finance costs arising from or associated with—

  • a death, illness or medical condition;
  • unexpected loss or interruption of income; or
  • catastrophic loss of or damage to home or property due to fire, theft, or natural disaster,

affecting the consumer, a person who is dependent upon the consumer or a person for whom the consumer is financially responsible.

In terms of the Act, no further regulation is required to enable use of the emergency loan provisions, however “reasonable proof of the existence of the emergency” must be obtained and retained by the credit provider. While such “reasonable proof” is not defined in the Act, the National Credit Regulator published a circular on 21 May 2020, to provide guidelines to credit providers on the issuance of emergency loans, and the documentation which constitute “reasonable proof”. These guidelines can be found on the website of the NCR at https://ncr.org.za/documents/Circulars/Circular-05-of-2020-%20Emergency%20Loan%20Guideline.pdf.

The emergency loan definition provides for relief for many of the challenges which consumers will be experiencing during this Covid-19 national disaster, and which may have been specified in any regulation or declaration regarding section 11. Following consultation, I have accepted advice that the emergency loan provisions should be utilised as it requires no additional legislation.

Subsequent to the publication of the emergency loans guidelines, officials from the Department have further engaged with credit providers. I am advised that credit providers have welcomed the guidelines published by the NCR and that BASA have reported that banks have begun to use the emergency loan provisions.

The Department will continue to engage with the sector on the efficacy on these measures. Should the emergency loan provisions in the Act fail to address the challenges which consumers are facing, I may consider which other measures would contribute, and this may include relooking the value of invoking section 11 of the Act to define certain credit agreements as public interest credit agreements.

-- END --

02 June 2020 - NW832

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

Whether, given that no logical rationale has been provided to South Africans and businesses for the restriction on the unfettered operation of e-commerce under the risk-adjusted approach and following his statement (details furnished), he can elaborate on (a) what the directions are and (b) by what date the directions will be made public? [

Reply:

Directions on e-Commerce were gazetted on 14 May 2020 (gazette no 43321).

The directions provide clarity on what goods may be transacted and the protocols which must be observed by retailers, courier and delivery services used by e-commerce retailers.

A copy of the Directions may be accessed from the Department’s website.

-END-

02 June 2020 - NW923

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

1. Whether his department awarded any tenders connected to the COVID-19 pandemic; if not, what is the position in this regard; if so, what (a) are the names of the businesses to whom these tenders were awarded, (b) are the amounts of each tender awarded and (c) was the service and/or product to be supplied by each business; 2. whether there was any deviation from the standard supply chain management procedures in the awarding of the tenders; if so, (a) why and (b) what are the relevant details in each case; 3. what was the reason for which each specified business was awarded the specified tender; 4. whether he will make a statement on the matter? [NW1212E]

Reply:

1. I am advised by the Director-General that no tenders were awarded. To address the safety of staff and utilizing the guidelines issued by the Department of Public Service and Administration, Personal Protective Equipment (PPE) was procured through a quotation process. Masks, gloves and sanitizers were bought to the total value of R188 794.

2. The Department advised that standard supply chain management procedures were followed with no deviation and further that all procurement procedures followed the relevant National Treasury prescripts.  

3.  In light of the above, it seems that no statement is required; but should circumstances require a statement to be made, I do so.

-END-

25 May 2020 - NW737

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

Whether, with reference to the State of the Nation Address on 7 February 2019 in which the President of the Republic, Mr MC Ramaphosa, stated that all taverns, shebeens and liquor outlets near school premises must be shut down, any of the specified outlets near school premises have been shut down; if not, why not; if so, what number of the specified outlets (a) have been closed since the specified pronouncement and (b) within 500 meters of a school and/or educational institution are not yet shut down?

Reply:

The Department does not currently collect data on the location of taverns, shebeens and liquor outlets, as the regulation of such entities is the responsibility of provincial authorities.

The macro manufacturing and distribution of liquor in terms of the Liquor Act, 2003 (Act No. 59 of 2003) is regulated by the dtic; whereas the Provincial Liquor Boards are mandated to regulate the micro manufacturing and retail liquor sector in terms of their specified legislation. In terms of the relevant legislation the responsibility of closing down taverns, shebeens and liquor outlets is the responsibility of Provincial Liquor Boards.

Having given the matter consideration, I have now requested the Department to contact the provincial regulators and ask for information to be compiled on the matter and for the Department to provide me with advice regarding further steps that national government may need to take in light of such information.

-END-

25 May 2020 - NW779

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

What (a) number of applications have been received for funding relief through the (i) Manufacturing Competitiveness Enhancement Programme COVID-19 Fund for Essential Supplies, (ii) Relief Funding for Companies in COVID-19 Distress and (iii) COVID-19 Black Business Funding Solutions in each province to date, (b) number of the specified applications have been (i) approved and (ii) rejected in each case in each province and (c) was the Rand value of each (i) approved and (ii) rejected application in each case in each province?

Reply:

I am advised as follows:

The COVID-19 Black Business Fund administered by the National Empowerment Fund (NEF) received over 250 applications totalling R700 million with approximately 30% of the applications from Gauteng, 20% from the Western Cape, 20% from KwaZulu-Natal and the balance from the other 6 provinces. A total of 12 applications valued at R78 million have been approved since inception of the Fund - of which 4 of the applications are from Gauteng; 5 from KwaZulu-Natal; and 3 from the Western Cape. Transactions valued at approximately R400 million have been declined for various reasons including applicants not being manufacturers of essential products.

Table 1 below outlines the performance of the Manufacturing Competitiveness Enhancement Programme (MCEP) COVID-19 Essential Supplies and COVID-19 Distress Funding administered by the Industrial Development Corporation (IDC) since inception up to 08 May 2020.

Table 1

-END-

25 May 2020 - NW709

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Madlingozi, Mr BS to ask the Minister of Trade, Industry and Competition

What are the criteria by which the Company and Intellectual Property Commission allowed Uzalo to continue shooting follow-up episodes during the lockdown period to prevent the spread of COVID-19, while blocking others from doing the same? [

Reply:

The CIPC is not empowered to authorize companies to operate during the lockdown period. It provided a service to companies registered under the Companies Act, to lodge their details as an essential service during the lockdown, based on self-declaration.

A certificate was issued to companies which registered, which enables easier identification of companies whose management believes they are services permitted to operate during periods when the Regulations issued under the Disaster Management Act limited such types of services.

The CIPC websites and certificates were required to state that registration (and possession of the certificate) does not constitute proof of compliance with the Regulations, but was simply proof that the management believed they comply with Regulations as set out above.

Some false or incorrect declarations were made and when these were brought to the attention of the CIPC, the certificates were rescinded.

I am advised that in the matter of Uzalo, the certificate was revoked on 3 May 2020.

-END-

25 May 2020 - NW211

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

(1) Whether, with reference to the latest balance of trade figures for the Republic issued by the SA Revenue Service that show an accumulated general trade surplus of R116 billion for 2017 to the last quarter of 2019, and a trade deficit amounting to approximately R96 billion with China, his department is considering quotas on imports from China to protect local manufacturers and to prevent further job losses; if not, why not; if so, what are the (a) relevant details and (b) timelines; (2) whether he will make a statement on the matter? NW286E

Reply:

It is a fundamental pillar of current Government policy to support and nurture local manufacturing and support local jobs. This applies to both industrial as well as trade policy interventions.

There are two critical concerns relating to trade between South Africa and the People’s Republic of China (PRC):

  • First, the composition of trade between the two countries, which has generally been composed of exports by SA of raw materials (particularly minerals) and import of finished goods (consumer and capital goods). This impacts negatively on local value-addition and job creation.
  • Second, high levels of under-invoicing and invoice-fraud by SA importers on goods sourced from other countries, including China, which results in a flood of imports of goods, damages local industries, deprives the fiscus of taxes due to it and distorts accuracy of trade data.

These concerns have been followed up with the Government of the PRC.

In respect of the first area, increased Chinese investment in SA manufacturing can assist to create a more sustainable trade composition. Examples of such investment in SA by Chinese investors that have been facilitated includes manufacturing operations in appliance manufacturing, truck and car assembly and high-voltage cable manufacturing.

In regard to the second concern, Government has stepped up actions against illegal imports, including seizing such goods.

Data distortions due in large part to under-invoicing (as well as some product data which does not show up in SA’s bilateral trade data) mean that trade surplus/deficit data needs to be used with some caution. We compare SA data with those from trading partners to develop a fuller picture of trade-flows.

In respect of quotas, there are restrictions to what WTO members may apply in trade with each other.

Government is actively engaged in a range of measures to boost the competitiveness of the domestic industry. Tariff or trade remedies measures are utilised after a process of needs analysis confirms the necessity to implement such measures.

It is not considered appropriate to make a statement at this stage beyond the comments noted herein.

-END-

25 May 2020 - NW215

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Yako, Ms Y to ask the Minister of Trade and Industry

What (a) number of (i) companies have benefited from the black industrialist programme since its establishment and (ii) jobs have been created by each company and (b) are the relevant details of the (i) name of each company, (ii) directors and (iii) number of directors in each specified case?

Reply:

I am advised that a total of 149 companies have been approved under the Black Industrialist Scheme (BIS) since inception to 31 January 2020, supporting 22 176 jobs. This excludes the IDC’s programme.

The list of all approved enterprises and projects across all incentives has been published in the 2018/19 which can be accessed from the Department’s website: http://www.thedtic.gov.za/wp-content/uploads/2018-2019_Annual_Incentive_Report.pdf

-END-

25 May 2020 - NW171

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

(a) What total number of Automotive Investment Scheme (AIS) approvals (i) are outstanding and (ii) require approval for the 2018-19 financial year, (b) what are the names of the relevant companies that are still waiting and (c) how long have they been waiting to be approved; 2) what has he found to be the economic implications arising from delayed approvals and (b) why have there been any delays in the approval of section AIS incentives; 3) what are the details of the (a) of list each AIS incentive transfer that has taken place since 1 April 2017 and (b)(i) amount of the transfer and (ii) the manufacturer concerned; 4) (a) whether or not the AIS adjudication committee is in place, (b) how long is their term of office and (c) on what date will the term of the current committee expire? NW192

Reply:

I am advised as follows:

1. 45 projects were granted approval under the Automotive Incentive Scheme (AIS) in 2018/19 financial year. All completed applications have been adjudicated as end of the financial year. A list of all approved enterprises and projects across all incentives has been published in the 2018/19 incentive performance report that was tabled in Parliament. The report can also be accessed from the Department’s website: www.thedti.gov.za/publications

2. Delays occurred due to lack of information from applicants, internal verification processes as well as late feedback from applicants. The economic implications are that the applicant either continues with the investment or may not invest in line with its business decision.

3. In 2017/18 financial year 115 projects were paid a total amount of R1.5 billion and R1.9 billion was paid to 112 projects in 2018/19 financial year.

4. The process of appointing adjudication committee members under Department of Trade, Industry and Competition (DTIC) is underway.

-END-

25 May 2020 - NW221

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

(a) What steps has his department taken to prepare for the effective and maximum implementation of the African Continental Free Trade Agreement; and (b) how will this fit into the industrial policy of the Republic? NW298E

Reply:

The AfCFTA is a significant step towards the objective of African economic integration. The AfCFTA, as one of the flagship projects of the African Union’s Agenda 2063, aims to build an integrated market in Africa of over 1 billion people, with a growing GDP.

The AfCFTA, the market integration component of a wider African development agenda, combines market integration with infrastructure development and, industrial development to promote intra-Africa trade and sustainable economic growth. Initially, implementation of the AfCFTA will increase opportunities for trade amongst African countries in both goods and services. In Phase 2 rules for Investment, Intellectual Property and Competition will be developed.

The AfCFTA is intended to cover 55 African countries. All African Union Member States, except Eritrea, have signed the Agreement. The Agreement entered into force on 30 May 2019 and 28 countries have now ratified the AfCFTA.

The 33rd Ordinary Session of the Assembly held in Addis Ababa, Ethiopia from 9-10 February 2020 endorsed an intensive and focused work programme to ensure that all substantive outstanding negotiating issues necessary for the commencement of preferential trading under the AfCFTA are concluded.

The 33rd AU Assembly also endorsed an Extra-Ordinary Summit on the AfCFTA in May 2020 in South Africa to adopt the concluded rules of origin, tariff schedules and services schedules, for the commencement of trade under the AfCFTA preferences by 1 July 2020.

South Africa is engaged in ongoing consultations nationally and within SACU to ensure that we meet the obligations of a 90% tariff offer for the commencement of negotiations with trading partners on the continent and the finalisation of the Schedules of Tariff Concessions. In terms of Trade in Services, South Africa has submitted an initial services offer on the five priority sectors in preparation for the services negotiations under the AfCFTA, which will be subject to reciprocity.

We also need to anchor the Agreement in a wider context and work programme of structural transformation and industrial development to promote diversification, beneficiation and value-addition in order to realise the opportunities that will arise from a more open continental market.

Effective rules of origin are critical in any free trade agreement to define the extent of local processing and manufacturing of any product is needed to qualify for liberalised trade under the agreement. In this way, the rules of origin ensure that the parties to the agreement are the main beneficiaries of the agreement.

In addition to establishing effective rules of origin to encourage local content, it is also essential to have the necessary capacity in all customs services across the Continent, including in the South African Revenue Service, to monitor and enforce the rules of origin.

Such enforcement is necessary to ensure that non-parties do not take advantage of the more open trade regime on the continent. While SARS has demonstrated its capacity to perform these tasks, including in the SADC context, it is engaged in a process to upscale its enforcement capacity to meet the requirements of more open trade once the AfCFTA is fully operational.

South Africa has finalised sectoral masterplans on clothing and textiles and the poultry sectors to ensure that the country is able to utilise the opportunities presented through the AfCFTA. We are also developing more Master Plans, in traditional sectors like the steel industry, and the sugar industry which is a key livelihood for rural communities; furniture, as well as in new economy sectors such as the digital economy, with its opportunities for young people; and the green economy, to industrialise through a greener growth path.

-END-

25 May 2020 - NW259

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

(1)Whether he will furnish Mr M J Cuthbert with a copy of his department’s policy on sabbatical leave for officials; if not, why not; if so, what are the relevant details; (2) whether he will furnish Mr M J Cuthbert with a detailed list of the (a) officials that have taken sabbatical leave since 1 January 2019 and (b) time period that each official has taken off from work; if not, why not, in each case; if so, what are the relevant details, in each case; (3) (a) what was the total cost to the taxpayer for overseas travel undertaken by officials of his department and (b) are these costs in line with the travel policy of his department; (4) what (a) number of business class flights were taken by officials of his department from 1 January 2018 to 31 December 2019 and (b) was the total cost of the specified flights?

Reply:

The sabbatical and travel policies of the two Departments that merged to form the DTIC, were developed and approved prior to the current administration and will be reviewed in due course in line with Government’s oveall policy position.

In respect of the specific questions posed, I have been advised by the Department that the following applies:

(1) The Department’s sabbatical leave is regulated in terms of the Bursary Policy which is an internal document.

The purpose of sabbatical leave is to provide employees with special leave opportunities for a maximum period of twelve (12) months to enable them to prepare for examinations, complete theses or projects in partial fulfilment of their studies. Operational requirements are considered and the line of studies should support the Department’s strategic objectives.

An employee who has been granted sabbatical leave is expected to enter into a contract to serve the Department for a period twice the sabbatical leave. This leave provision has positioned the Department as a learning organisation that promotes continuous learning and development of its employees. Another advantage arising from this provision is the retention of institutional skills and capabilities.

(2) The table below provides details of sabbatical leave since 1 January 2019. No officials from the Economic Development Department (EDD) were granted sabbatical leave.

(a)   Officials who have taken sabbatical leave since 1 January 2019

(b)   Period each official has taken off from work and details

 

Period

Duration

Details

Employee 1

1 February 2018 to 31 January 2019

12 months

Research and writing a dissertation towards a Masters in Industrial/Organi-sational Psychology

Employee 2

9 February 2018 to 8 February 2019

12 months

Attendance of classes towards a MBA

Employee 3

1 April 2018 to 31 March 2019

12 months

Research and writing a dissertation towards a PhD

Employee 4

16 January 2019 to 31 March 2019

2½ months

Research and writing a dissertation towards a Masters in Public Administration

Employee 5

3 April 2018 to 3 April 2019

12 months

Research and writing a dissertation towards a PhD

Employee 6

1 August 2019 to 31 October 2019

3 months

Research and writing a dissertation towards a Masters in Public Management

Employee 7

16 August 2019 to 15 November 2019

3 months

Research and writing a dissertation towards a Postgraduate Diploma in Monitoring and Evaluation

Employee 8

1 March 2019 to 30 November 2019

9 months

Research and writing a dissertation towards an MBA

Employee 9

1 April 2019 to 30 November 2019

8 months

Research and writing a dissertation towards an MBA

Employee 10

1 May 2019 to 30 November 2019

7 months

Research and writing a dissertation towards an MBA

Employee 11

1 September 2019 to 31 December 2019

4 months

Research and writing a dissertation towards a Masters in Law

Employee 12

26 July 2019 to 25 January 2020

6 months

Research and writing a dissertation towards an MBA

Employee 13

1 October 2019 to 28 February 2020

5 months

Research and writing a dissertation towards a Masters in Management (Public Policy)

Employee 14

1 April 2019 to 31 March 2020

12 months

Doctorate in Business Administration

Employee 15

1 October 2019 to 31 August 2020

10 months

Research and writing a dissertation towards a Masters in Business Management

Employee 16

1 April 2020 to 31 March 2021

12 months

Research and writing a dissertation towards a PhD

3) This information is disclosed in the dti’s Annual Report as part of the Goods and Services note to the Annual Financial Statements. All travel is in line with the Travel and Subsistence Policy of the department as well as National Treasury’s Instruction Note No. 04 of 2017/2018 on Cost Containment.

4) The dti had a total of 192 transactional business class tickets booked for officials at a total cost of R7 869 924. EDD had a total of 42 transactional domestic business class tickets booked for officials at a total cost of R395 472.

-END-

25 May 2020 - NW383

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Yako, Ms Y to ask the Minister of Trade and Industry

Whether the Government has managed to achieve the targets it set itself to achieve through the Black Economic Empowerment programme in the past 10 years; if not, what is the position in this regard; if so, what are the further relevant details?

Reply:

Over the past 10 years, there has been a significant expansion in the number of black South Africans who were able to access business opportunities or skills enhancement, as a result of BB-BEE programmes.

These included programmes such as

  • The Black Industrialist programme promoted by the DTIC and the IDC (Industrial Development Corporation).
  • Sector Charters and BEE Codes
  • Development Funds introduced through settlements under the Competition Act
  • Equity-equivalent programmes introduced for multinational corporations
  • Preferential policies used in state procurement
  • Support rendered to businesses by the National Empowerment Fund

I have requested that detailed information aggregating the impact of the various policies be prepared for public release and initial results were made available at a public conference hosted by the Black Business Council in March this year. It showed very large levels of funds deployed to promoting wider empowerment across the society.

I intend to release an updated version of the study during the Budget Vote of the Department.

Taken as a whole, while there has been enormous progress in expanding the base of the economy, there are still significant gaps and much remains to be done to build a truly inclusive economy.

Young people are disproportionately represented in the ranks of the unemployed. The presence of women in core productive sectors remain well below what is needed for the country to fully utilize the talents of one half of the population.

Levels of economic concentration remain unusually high in a number of sectors and recent changes in the competition laws are intended to address these.

For the period ahead, we need to:

  • improve the implementation of existing policy, including through strengthening the quality of the BEE ‘book’ through stronger business support services and maintaining transparency on beneficiaries.
  • scale up the successes of public policy in promoting sustainable empowerment, with resources allocated from the Budget to achieve this
  • address challenges in the structure of the economy and the practices that inhibit the participation of SMMES and black entrepreneurs in the economy.

The new Competition Act focuses for the first time on market structure, and the high levels of economic concentration in many parts of the economy. It does not prohibit economic concentration or seek to break up large companies, because in a globalised world and indeed for the success of the African Continental Free Trade Area, the continent will need industrial champions with the scale and size to be successful and to compete with the world’s large US, German, Chinese and Indian companies.

The new provisions of the Competition Act places the impact of structure or concentration of markets, on the entry of SMEs and Black South Africans in a sector. Where concentration acts as an inhibitor that prevents of limits entry and participation, the law now gives the Competition Commission the power to effect remedies.

The law has also been changed to address problems where large suppliers discriminate against SMEs on prices and unfair trading conditions. For example, if a large bakery sells bread at a significantly cheaper price to a large retailer with stores in a township, and sells the same bread at a much higher price to spaza shops and if the effect of this is to prevent a class of small businesses from participating in the market, it would be subject to investigation and remedy.

The law now addresses abuse of power by dominant firms who are buyers: for example retailers in relation to small suppliers; or insurance companies in relation to the panels of authorised panel-beaters.

The price-discrimination and buyer power provisions are intended to assist black-owned companies that have less than 20% of any given market.

These measures are directed at addressing both structural barriers, and conduct of dominant firms that inhibit smaller, newer and in many cases, black-owned firms from gaining a foothold in the market and then expanding.

-END-

25 May 2020 - NW595

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Yako, Ms Y to ask the Minister of Trade and Industry

(a) What percentage of black women-owned businesses does the Industrial Development Corporation fund, (b) in what sectors are the women-owned businesses and (c) how does the specified percentage compare with the other demographics?

Reply:

Lacie:Logos:thedtic:The dtic logo (trade, industry  & competition) (Full C).jpg

THE NATIONAL ASSEMBLY

I have been provided with the following reply by the IDC:

  1. & (c)

(b)

Black women

   

Sector

Value of approvals (R'm)

Number of approvals

 

>25%

>50%

>25%

>50%

Agro Processing & Agriculture

324

66

14

6

Basic Metals and Mining

5,643

1,847

15

6

Clothing & Textiles

121

4

18

5

Basic & Speciality Chemicals

725

508

13

8

Chemical Products & Pharmaceuticals

204

66

17

10

Machinery & Equipment

948

635

20

12

Automotive & Transport Equipment

684

356

14

8

Heavy Manufacturing

459

202

21

9

Light Manufacturing & Tourism

1,030

699

19

13

Industrial Infrastructure

808

127

11

5

Media and Audio Visual

585

89

12

6

Other

110

110

3

3

Total

11,642

4,708

177

91

(c)

Refer to above.

 

____________________

Mr L October

Director-General: Department of Trade, Industry and Competition (the dtic)

_____/_____/2020

Supported / Not Supported

____________________

Mr E Patel

Minister of Trade, Industry and Competition

____/____/2020

Approved / Not Approved

25 May 2020 - NW654

Profile picture: Macpherson, Mr DW

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

Whether, as a participant on the board of the Solidarity Fund, he can provide details as to whether distributions from the fund or procurement by the fund are subject to Broad-based Black Economic Empowerment policies and legislation; if not, what is the position in this regard; if so, what is the rationale for this? NW856E

Reply:

The Solidarity Fund was created on 23 March 2020 to respond to the COVID-19 crisis in South Africa. It is a platform for the general public, civil society and the public and private sector to contribute to the consolidated effort to fund various initiatives.

Ms Gloria Serobe is the Chairperson, Mr Adrian Enthoven serves as the Deputy Chairperson and Ms Nomkhita Nqweni is the interim CEO.

The Fund works closely with government and business, but it is independent of both of them. It is responsible for and controls the funds donated and is accountable for them, with Old Mutual administering the funds on a pro bono basis.

Full governance documentation can be found on the website of the fund at https://www.solidarityfund.co.za/Solidarity_Fund_Governance_Overview_V20200419.1.pdf.

Contributions to the Fund are utilised for four purposes, namely to

  • Prevent the spread of the infection by supporting campaigns and communication measures to flatten the curve
  • Detect and understand the magnitude of the disease through the supply of testing kits and research
  • Care for those in hospital or medical care by ensuring a supply of PPE (Personal Protective Equipment) and
  • Support those whose lives have been disrupted by the pandemic through the support of feeding and shelter programmes across the country.

The Honourable Member is encouraged to direct the question of the policies of the Fund to its Chief Executive Officer or to the Chairperson of the Fund.

-END-

25 May 2020 - NW724

Profile picture: Macpherson, Mr DW

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

(1) With reference to the call by his department for public comments on the Government’s Draft Framework for the Risk-Adjusted Strategy to bring different sectors of the economy back to work, what role does his department play in reviewing submissions received from members of the public in determining the schedule of services to be phased in on each level of the Government’s Draft Framework for the Risk-Adjusted Strategy; (2) whether his department plays any role in monitoring the submissions received from members of the public via the (a) nervecentre@cogta.gov.za and (b) lockdowncomments@cogta.gov.za electronic mail addresses; if not, in each case, why not; if so, what are the relevant details in each case; (3) what (a) changes have been made to the schedule of services to be phased in on each level of the Government’s Draft Framework for the Risk-Adjusted Strategy due to the submissions received from members of the public and (b) was the reason for each change; (4) what criteria will be used to measure the success or failure of each level proposed for each economic sector?

Reply:

The Department of Trade, Industry and Competition has supported the work of Government in reviewing submissions which were received during the public consultation process. In particular, the dtic reviewed a number of submissions received from individual businesses, business associations and trade union.

Officials from the DTIC were given access to review submissions received from individual businesses, business associations and trade unions, largely directed to the nervecentre@cogta.gov.za email address. A team of officials from the Department, including from InvestSA and the Industrial Development Division were assigned to review such submissions.

A number of changes were made to the schedule of services which were phased in under Alert Level 4 and for the schedule recommended for Alert level 3. These changes were based on the feedback received both from individual businesses, business associations, trade unions and from the public. In some cases, the submissions required further consultations with businesses and trade unions. Some of the submissions were in favour of specific proposals and these were taken into account in the process.

To illustrate with a few examples:

  1. Changes were made in the wording of some sector descriptions and arrangements (for example in agriculture);
  2. Certain sectors or activities were more explicitly addressed in the framework covering those goods which could be manufactured at different levels of employment
  3. Value-chain linkages were more clearly addressed
  4. The minimum level of manufacturing enabled in level 4 was increased as a result of the submissions
  5. The sale of hardware, components and supplies were made more widely available to all consumers; and
  6. The opening up of eCommerce to sell goods other than those available in retail stores was also provided

In addition to these changes effected in Level 4, the submissions assisted Government in the drafting of the framework for level 3.

The incremental opening of certain sectors of the economy is intended to limit the spread of the virus, and to ensure that any spikes in infections can be identified and managed. In addition, it has enabled a greater level of preparedness in society and in the health system than was the case at the start of the pandemic in South Africa.

The dtic has been working closely with industry from manufacturing, construction and retail to get updates on infections and to identify solutions which can be rolled out to the industry.

The success of each level proposed, and the allocation of economic sectors in particular levels, is measured by the contribution to containing the spread of the virus and flattening of the curve of infections. Where necessary, changes are made to the extent of economic activity to the wider objectives of saving lives and protecting livelihoods.

The industry classification system was explained at a joint meeting of Parliamentary Committees on 1 May 2020, setting out criteria and the application of the three systems in the country moving from Level 5 to Level 4. The President announced recently that the country would move to Alert level 3, which will enable additional industrial sectors to return to full production.

Government has engaged with a number of organisations, from business associations, trade unions, political parties, premiers of provinces, individual businesses and religious institutions to receive feedback on the systems and to consider representations on proposed changes.

These have contributed to finalising the economic activity which will be enabled under Level 3.

-END-

25 May 2020 - NW609

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Singh, Mr N to ask the Minister of Trade, Industry and Competition

Whether the Broad-Based Black Economic Empowerment (B-BBEE) Commission has published a list of fees for the 2020 financial year in accordance with the Broad-Based Black Economic Empowerment Amendment Act, 2013 (Act No. 46 of 2013) and the Regulations of 2016 regarding the submission of B-BBEE compliance certificates for all companies; if not, why not; if so, what is the full breakdown of the fees applicable to all companies; (2) Whether consultants, who assist and assess the compliance of companies applying for B-BBEE certification, have a regulated fee structure; if not, why not; if so, what are the relevant details; (3) Whether the B-BBEE commission will consider extending the validity of the 2019 certificates to include 2020, in order to provide further financial relief to small business during this period as the costs of obtaining such certificates are substantial and will impact already heavily burdened operating costs of small, medium and micro enterprises; if not, why not; if so, what are the relevant details? [

Reply:

(1) The Commission is financed from money appropriated by Parliament for the Commission and any money lawfully received from any other source. The B-BBEE Regulations permit the Commission to charge a reasonable fee for services rendered by its office, except for complaints, after publishing a schedule of fees by notice in the Gazette.

During the first three years of operation, the Commission focused on putting in place systems and processes to promote, advocate and raise awareness of the B-BBEE Act and its requirements and to support proper implementation of the legislation.

This was done at no cost during this period in order to promote the understanding of the B-BBEE Act and its requirements to encourage voluntary compliance.

I am advised that the Commission has therefore not published the schedule of fees yet, which means the services directly rendered by the Commission is currently free.

The Commission planned to commence consultation processes for the publication of the schedule of fees for its services in this financial year.

(2) Section 1 of the B-BBEE Act refers to the appointment of a B-BBEE Verification Professional Regulator by the Minister, which is a body that is responsible for accreditation and authorisation of a B-BBEE Verification Professionals.

The B-BBEE Act has in section 1 further defined a B-BBEE Verification Professional as a person who performs any work in connection with rating the status of enterprises in terms of B-BBEE compliance on the authority of, or for a rating agency accredited by, a B-BBEE Verification Regulator.

Therefore, by definition consultants are excluded from conducting any B-BBEE verification and/or issuing of B-BBEE Certificates.

The South African National Accreditation System (SANAS) currently serves as the B-BBEE Verification Professional Regulator.

There is currently no regulation of fees charged by B-BBEE Verification Professionals

It is only the Construction Sector Charter Council that has issued a guideline around nominal fees that can be charged for construction-based entities that fall within the category of Exempted Micro-Enterprise (EME) and Qualifying Small Enterprises (QSEs).

(3) B-BBEE Certificates are valid for twelve (12) months.

Regarding the relief of costs of verification for small enterprises, the B-BBEE Act through the Codes has already granted an exemption to EMEs (entities with an annual turnover of less than R10 million) by indicating that they are not to be subjected to a B-BBEE verification process, as part of government’s initiative to ease the cost of doing business for small businesses.

Such entities receive automatic B-BBEE recognition levels and are only required to use a B-BBEE sworn affidavit or a certificate issued by the Companies and Intellectual Property (CIPC) confirming their turnover and level of black ownership. Such recognition is at no cost to the enterprises concerned.

In addition, 51% and 100% black owned and controlled QSEs (entities with an annual turnover of above R10 million but less R50 million) have also been exempted from being subjected to a B-BBEE verification process, and only use a sworn affidavit. The CIPC certificate option is currently not available to 51% and 100% black owned QSEs. It is only EMEs and start-up enterprises that can obtain a CIPC certificate.

Therefore, the costs of B-BBEE verification only apply to QSEs that are less than 51% black owned as well as large entities (entities with an annual turnover of R50 million and above).

In light of the above, I will request advice regarding the proposal for the extension of the validity of the 2019 certificates to cover 2020 and revert to the Honourable Member.

-END-

19 March 2020 - CW46

Profile picture: Apleni, Mr T

Apleni, Mr T to ask the Minister of Trade and Industry

What progress has been made (a) thus far with the establishment of Industrial Special Zones (details furnished) and (b) in Dimbaza in the Eastern Cape in this regard?

Reply:

(a) Special Industrial Zones

A working committee to support, enhance and streamline delivery of interventions in Industrial Parks by DTIC through its Industrial Parks Revitalisation Programme (IPRP) and related programmes has been set up. This working committee will also consider an appropriate recommended name for the special initiative.

(b) Dimbaza IP

I am advised as follows:

A sum of R49 million will be spent on Phase One revitalisation of The Dimbaza Industrial Park. The scope of work entails -

  • 10.50 km Boundary Fence,
  • 2.03 km Diamond Mesh Fence,
  • 5 High Mast Lights,
  • Prefabricated Security Pods,
  • Electrical Works (mini-substation)
  • Vehicular Gates.

A Project Steering Committee (PSC) is responsible for project oversight. The Eastern Cape Development Corporation, Buffalo City Municipality, Department of Economic Development Environment and Tourism, DTIC, Development Bank of Southern Africa and Department of Cooperative Governance and Traditional Affairs, are represented on the PSC

I am advised that construction jobs created to-date total 161. There is a focus on youth inclusion, with a reported 40% of the total being drawn from young people from local communities. Upgrading work totalling R4 million is being delivered by 11 SMMEs appointed as Sub-Contractors.

-END-

09 March 2020 - NW91

Profile picture: Cuthbert, Mr MJ

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

(1)What was the cost of his trip to the meeting of the 2020 World Economic Forum in Davos, Switzerland, in terms of (a) flights and accommodation, (b) daily allowance and (c) the (i) number of employees from his private office that attended and (ii) total cost for them to attend; (2) whether he flew in economy class to Davos, Switzerland; if not, why not; if so, (3) whether he intends flying economy class when attending to official business abroad; if not, why not; if so, what are the relevant details? NW100E

Reply:

The trip to the World Economic Forum in January 2020 combined three separate meetings in one round-trip. These were:

  1. The 2020 World Economic Forum meeting held in Switzerland to meet investors, analysts and foreign government representatives
  2. The World Trade Organisation “Mini-Ministerial” meeting on trade, held in Switzerland to consider the progress made on trade reform at global level
  3. A session of the African Union’s Bureau of the Council of Ministers held in Ethiopia, to shortlist candidates for the Secretary General position for the new Secretariat of the AfCFTA.

The travel schedule was a flight from Johannesburg – Zurich followed by a car journey to Davos and back to Zurich; with flights from Zurich-Vienna (transit) – Addis Ababa (meeting) – Johannesburg. Travel for international visits are in business class.

The cost for the Addis Ababa meeting will be compensated by the African Union, as I attended in my capacity as Vice Chairperson of the Council of Ministers. The cost of travel, excluding the portion for which a refund has been made to the African Union, is R111 383, covering both airfare and accommodation.

A Ministerial Advisor attended the WEF meeting, at a cost of R58 454 and flew economy class.

No accompanying person from the Ministry travelled to Ethiopia for the African Union segment.

-END-

09 March 2020 - NW170

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

(1) (a) What number of section 12I allowances which (i) are to be considered by the adjudication committee and (ii) have been submitted to his department are outstanding and require approval, (b) what are the relevant details of each company name and (c) how long they have been waiting to be approved; (2) (a) what are the economic implications of delayed approvals and (b) why have there been any delays in the approval of section 12I allowances? NW191E

Reply:

Three applications received since 1 February 2020 are to be considered by the Adjudication Committee and five applications are currently being considered. Details of decisions and the identity of companies concerned who receive the incentive are made public once the process is completed.

In two matters, applications being recommended to be declined are being reviewed to check whether they could be approved. One of these may require an opinion from SARS.

As a result of the need to ensure that public funds are deployed to maximum effect to achieve national goals, it has been necessary to review applications carefully for their economic impact and determine whether they fully assist with achievement of such goals.

To illustrate the value of the approach: a recent approval of a s12i application from Hi-Sense, an electronics company located in Atlantis, will now result in improved efficiencies and the creation of a significant number of new jobs. Further details of these will be released in due course.

-END-

09 March 2020 - NW169

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

(1)With reference to his reply to question 1738 on 7 January 2020, what are the details of the outcomes of the arbitration that took place on 16 and 17 January 2020; (2) What are the full details of any (a) current and (b) historical financial transactions between his department and EOH Mthambo? NW190E

Reply:

The department has advised as follows:

(1) The matter was concluded on 17 January 2020. All the parties submitted their closing arguments on 31 January 2020 to the GPSSBC as instructed by the Commissioner. The GPSSBC forwarded the closing arguments to the Commissioner on 6 February 2020. I am advised that the employee was found guilty of certain charges by the Commissioner.

(2) (a) There are no current financial transactions.

(b) the dti only processed five (5) payments to the total amount of R11 154 846. Such amount was paid for the milestones that were achieved with details as follows:

Payment

Milestone Achieved

Amount Paid

1

EOH Invoice Paid: Licencing Cost Support

R5,698,799.02

2

EOH Invoice Paid: Pilot (MCEP) Phase Initiation

R393,765.12

3

EOH Invoice Paid: SAP Maintenance Year 1 & 2

R2,858,517.62

4

EOH Invoice Paid: Acceptance of Design (Blue print)

R393,765.12

5

EOH Invoice Paid: Approved Change Request (CR_05) for Additional Requirements

R1,809,999.59

-END-

09 March 2020 - NW152

Profile picture: Macpherson, Mr DW

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

By what date (a) does he envisage the forensic investigation into the conduct and payments to Ndzabandzaba Attorneys launched in 2018 will be completed and (b) will the outcomes of the forensic investigation be made public?

Reply:

I am advised by the Economic Development Department that the report is expected to be completed within six weeks. The key findings and recommendations, together with any actions required from the Commission, will be made public.

-END-

09 March 2020 - NW92

Profile picture: Bagraim, Mr M

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

(1)Why does South Africa’s ranking in the World Bank’s 2020 Ease of Doing Business Report remain at 84 despite his department and the World Bank having set up a working group to address the country’s poor performance in the 2019 version of the report; if not, why not; if so, what are the relevant details; (2) whether this is evidence that he is unable to deliver the widespread economic reform required to put the country’s economy back on an upward growth trajectory; if not, why not; if so, what are the relevant details? NW101E

Reply:

The Department is working with the World Bank to identify challenges that result in a low ranking on the Ease of Doing Business Index and as this work progresses, it is expected to impact positively on the country ranking.

The project with the World Bank was launched in March 2019. The Doing Business Report 2020 quoted by the Honourable Member is for the period 1 May 2018 to 30 April 2019, released in October 2019.

A number of the factors that contribute to the country ranking fall outside of the Department’s legal mandate, but through this process, the Department can work with other public entities and the private sector to address concerns that have been identified.

One area that does falls within the mandate of the DTIC in the Starting a Business Indicator, relating to the ease of registering a company. The DTIC and its agency, the CIPC is pioneering an e-government platform through the establishment of the Biz Portal. Today a domestic firm through the Biz Portal can obtain the following online within one day:

  1. Company registration;
  2. Domain name registration;
  3. B-BBEE certificate;
  4. Tax registration number;
  5. Unemployment Insurance Fund registration;
  6. Compensation Fund registration;
  7. Business Bank account.

I am advised that since the launch of the Biz Portal pilot in November 2019, 8 759 companies have been registered within a day. This will significantly change the landscape and make strides in the Ease of Doing Business indicator.

It should be noted that the World Bank uses the major city in every surveyed country as a proxy for aspects of business regulation affecting small domestic firms. In the case of South Africa, it is the City of Johannesburg (CoJ) and covers the period 1 May 2018 to 30 April 2019 in the CoJ.

CoJ is directly responsible for following indicators:

(a) Getting Electricity

(b) Registering Property

(c) Dealing with Construction Permits

Progress on the pace of reforms at CoJ have been slow and this indicated in the Doing Business (DB) Report 2020 released in October 2019. The lack of movement on these impacted negatively on our rankings.

Since the appointment of the Executive Mayor of CoJ Mr. Geoff Makhubo, the Department team, World Bank and CoJ have been able to formalise an action plan for the above-mentioned indicators in order to improve turnaround times and service delivery. Since November 2019, the COJ has piloted an e-rates certificate and has issued 5772 e-certificates of which 98% were issued within 24 hours.

The Technical Working Group continues to work on improving the key elements of the measured indicators to ensure that an increase in South Africa’s rankings and I am advised that some of the successes and improvements to date include:

  • Measured improved customer service by SARS;
  • Service Delivery Charter published by SARS;
  • Service Charter developed by COJ for registering a property;
  • Increased transparency and availability of information fee schedules, documents for registration and services;
  • Expanded Preferred Traders Program rolled out for trading across borders;
  • Cut off time for pre-loading stacking vehicles to be at the port was reduced from 72 hours to 24 hours;
  • Queuing times are now measured from inside the port gate to the stack and not from outside the gate point of entry to the discharge of goods;
  • Transnet port services for import/export of vehicles now fully automated.
  • Updated Website by Deeds Office, improving access, quality and transparency of information to buyers and sellers of property.

-END-

09 March 2020 - NW64

Profile picture: Macpherson, Mr DW

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

With regard to the African Continental Free Trade Area, what budget has been allocated specifically for trade promotion in the medium term for South African manufacturers to take advantage of this agreement?

Reply:

I have requested the Department to prioritise trade with the rest of the Continent over the MTEF and accordingly, a growing part of the budget will be directed to trade promotion and the activities of the Development Finance Institutions will also be harnessed.

R80 million of the current export promotion budget supports intra-Africa trade and investments over the MTEF period, but, as indicated above, we will be drawing on a wider resource-envelope.

-END-

09 March 2020 - NW62

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

Whether he has extended the contract of a certain person (name and details furnished); if so, (a) for what period and (b) what provisions did he rely on to do so?

Reply:

During 2017, the then Chairperson of the National Lotteries Commission was re-appointed as Chairperson in accordance with section 3(3) of the Lotteries Act, 1997 (Act No. 57 of 1997) (the “Act”) for a further period of 2 years and 4 months. The Act provides that a member of the National Lotteries Commission’s board may be appointed for a period not exceeding five years.

The term of the Chairperson was due to end on 30 November 2019. Before the end this term, the Chairperson raised a number of concerns relating to the lawfulness of the determination of the period of his appointment and specifically the reasons provided therefore; and provided the Ministry with a legal opinion in support of his concern, to the effect that the period of appointment ought to have been for a five-year period.

After considering the merit of the verbal and written representations made to me, and taking into account the advice of the Director General of the Department of Trade and Industry, I concluded that it would be in the best interest of the National Lotteries Commission to secure a settlement and extended the period of appointment of the Chairperson for a one-year period to 30 November 2020, with an explicit agreement that this was in full and final settlement of any claims that he may have or believe he may have.

As the Minister determines the period of appointment and it falls within the prescribed maximum period of 5 years, I am advised this complies with the provisions of the Act as set out above.

The process for the appointment of a new Chairperson will follow the requisite processes as provided in the Act.

-END-