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18 April 2019 - NW787

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Cardo, Dr MJ to ask the Minister of Economic Development

1. What are the reasons for each incident of irregular expenditure incurred by the Competition Commission (a) in each of the past three financial years and (b) since 1 April 2018; 2.whether the Commission has put in place a financial management strategy to control expenditure; if not, why not; if so, what are the relevant details; 3. whether the Commission has taken any measures to recover irregular expenditure from the officials responsible for incurring it; if not, why not; if so, what (a) are the relevant details and (b) disciplinary steps have been taken against the official in each case.

Reply:

As previously advised through parliamentary reply PQ77, the Department has instituted a review into various matters relating to the effectiveness and efficiency of the competition authorities, which includes a forensic investigation into certain items identified in the Auditor General Report and the results of the investigation is awaited.

In addition to the above, I refer the Honourable Member to the published annual reports of the Competition Commission which deal with irregular spending matters for relevant years in some detail, including where appropriate, matters related to consequence management in relation to officials.

In relation to a financial management strategy to control expenditure, the Commission advises that it has done the following:

  • a) Revised its Supply Chain Management (SCM) policy to tighten controls.
  • b) Brought in additional capacity in the Finance Division to improve compliance and overall financial management.
  • c) Rationalised its level of activities in order to fit in the budget and generate savings to cover the previous year’s budget.
  • d) Adopted austerity measures including curtailment of case work, litigation as far as possible is insourced, filling of vacancies reprioritised only critical posts are filled, international delegations are reduced to one official approved by the Commissioner, only the Commissioner and Deputy Commissioner travel business class. All other staff travel economy class irrespective of the flight duration, all strategic meetings or planning sessions are held in the Commission’s premises.

The wider review of the Commission readiness for the implementation of changes to legislation that I have referred to, will also address some aspects of improved technical management of financial matters and financial controls.

-END-

15 April 2019 - NW697

Motshidi, Ms T to ask the Minister of Economic Development

What is the (a) make, (b) model, (c) price and (d) date on which each vehicle was purchased for use by (i) him and (ii) his deputy (aa) in the (aaa) 2016-17 and (bbb) 2017-18 financial years and (bb) since 1 April 2018?

Reply:

No vehicles were purchased for the Minister or the Deputy Minister during the years 2016-17, 2017-18 and since 1 April 2018.

-END-

15 April 2019 - NW789

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Cardo, Dr MJ to ask the Minister of Economic Development

What (a) total amount has the Competition Commission paid to a certain company (Mokwana Incorporated Attorneys) since the specified company first started doing work for the Commission and (b) are the details of the (i) scope and (ii) nature of this work?

Reply:

I am advised by the Competition Commission that the total amount paid to Mokwana Incorporated Attorneys is R 3 644 724,90 for the period from January 2015 to December 2018.

The scope and nature of the work is investigation and litigation.

Eight cases were involved, covering litigation (six cases); review of electronic data (one case) and work connected to a raid on the premises of an entity (one matter).

-END-

15 April 2019 - NW788

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Cardo, Dr MJ to ask the Minister of Economic Development

Whether the contract of a certain official (details furnished) of the Competition Commission has been renewed; if not, (a) why not and (b) who has been appointed to succeed the specified person?

Reply:

I am advised by the Competition Commissioner that the contract of the former CFO, Mr Molathlegi Kgauwe came to an end on 14 March 2019 and has not been renewed. The Competition Commission recruitment process is underway and the Commission will employ a new CFO in due course.

-END-

25 March 2019 - NW520

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Hlonyana, Ms NKF to ask the Minister of Economic Development

(a) What number of (i) buildings, (ii) properties and (iii) facilities does his department currently (aa) own and (bb) rent, (b) what is the value and purpose of each (i) owned and (ii) rented property and (c)(i) for how long has each property been rented, (ii) from whom is each property rented and (iii) what is the monthly rental fee for each property?

Reply:

The Department does not own any buildings, properties or facilities. Since 2009, the department has been accommodated in the dti Campus together with 3 of its 4 entities.

The dti campus is an ideal location which hosts 3 of the Economic Cluster Government Ministers, departments and their entities in close proximity making it an ideal economic campus.

The value of the rental is R1 006 539 per month and the purpose is for office accommodation, parking and storage.

-END-

25 March 2019 - NW542

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Tleane, Mr SA to ask the Minister of Economic Development

In view of the fact that the Competition Commission has the responsibility to recommend to the Competition Tribunal to decline or approve mergers and acquisitions, how will mergers and acquisitions with regard to employment and economic growth considerations (a) further contribute to economic growth and (b) create more employment?

Reply:

The Competition Act sets out a clear ‘public interest’ set of criteria that the competition authorities are expected to apply when considering an application for approval of a merger or acquisition. These criteria include the impact of employment. In addition, other criteria include the impact of a merger on industries and regions, as well as small business and the export performance of South Africa.

When considering a merger, the authorities are also expected to consider the impact the transaction will have on competition in a sector, which may serve as a proxy under certain circumstances, for economic growth.

In undertaking the assessment of mergers and acquisitions, the Commission considers among others, public interest issues such as the impact on smaller businesses and envisaged jobs losses. Where there is a possibility of employment losses from a merger or acquisition, the Commission will typically look to prevent that. In this way, mergers that simply aim to generate efficiencies from shedding labour can be prevented from doing so through conditions aimed at preventing retrenchments. Similarly, mergers and acquisitions may enhance employment by requiring that merging parties create enterprise development funds.  

The new Competition Amendment Act, 2018, strengthens the public interest provisions of the legislation that impact employment and economic growth considerations. This is inter alia through the new provisions on economic concentration and market structure; the improved role for the executive on public interest matters; and changes to the prohibited-practices regime that can help to open up markets to new entrants and young entrepreneurs.

-END-

11 March 2019 - NW277

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Hlonyana, Ms NKF to ask the Minister of Economic Development

What number of (a) tender briefings were held in 2018 by (i) her department and (ii) each of the entities reporting to his and (b) specified briefings were compulsory?

Reply:

I have been provided with the information in the table below, from the department and its entities, on the number of tender briefings held in 2018.

DEPARTMENT / ENTITY NAME

NO OF TENDER BRIEFING in 2018

BREIFINS COMPUSLORY

Economic Development

02

Yes, briefings were compulsory.

Competition Tribunal

02

Yes, briefings were compulsory.

Competition Commission

03

The office accommodation briefing was compulsory and the other two were not compulsory.

IDC

04

Yes, briefings were compulsory

ITAC

None

N/A

-END-

11 March 2019 - NW326

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Mkhaliphi, Ms HO to ask the Minister of Economic Development

(a) What amount of steel has the country (i) exported and (ii) imported in each of the past 10 years and (b) which trading country was steel (i) imported to and (ii) exported from in each case?

Reply:

I have been furnished with the following data related to imports and exports of flat steel and long steel products:

Exports from South Africa between 2009 and 2018:

Table 1: Steel Export statistics (Tons)

Imports to South Africa between 2009 and 2018:

Table 2: Steel Import statistics (Tons)

ITAC advises that South Africa’s imports of steel originate mainly from the China, the UK, Japan and Germany. South Africa exports steel mainly to Zambia, Zimbabwe, the Democratic Republic of Congo and Mozambique.

Export destinations and import sources change from time to time however, and a more detailed study would need to conducted to see the changes in the composition of import/export trading partners.

A number of government initiatives are geared to increasing the level of steel beneficiation in South Africa. These include the expansion of localization in the processing of local scrap metal, support for steel-industry initiatives and the localization requirements for the use of steel in public infrastructure projects.

-END-

25 February 2019 - NW125

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Bara, Mr M R to ask the MINISTER OF ECONOMIC DEVELOPMENT

With reference to the reply of the Minister of Public Service and Administration to question 3797 on 21 December 2018, what was the total expenditure incurred by his department relating to the travel privileges contained in the 2007 Ministerial Handbook of former (a)(i) Ministers and (ii) their spouses, (b)(i) Deputy Ministers and (ii) their spouses, (c) Ministers’ widows or widowers and (d) Deputy Ministers’ widows or widowers (i) in each of the past five financial years and (ii) since 1 April 2018?

Reply:

I am advised that for the period set out in the Question, the Economic Development Department did not incur any expenditure relating to travel privileges of former members of the Executive after they left the Executive, nor were any expenses incurred by the Department in relation to the spouses or widows of former members of the Executive after they left the Executive.

-END-

14 December 2018 - NW3611

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What is the (a) total amount spent by the Competition Commission on the Market Inquiry into the Private Healthcare Sector since its establishment in 2013 and (b) detailed breakdown of the amount spent by the Competition Commission on services provided by external (i) economists, (ii) lawyers, (iii) expert consultants and (iv) a certain legal firm (name furnished)?

Reply:

The Competition Commission set up a Market Inquiry under the current provisions of the Competition Act, in 2014 to consider the state of competition in the private healthcare market, covering a large number of services across the value-chain.

An independent Panel was appointed by the Commissioner to preside over the market inquiry, chaired by ex Chief Justice Sandile Ngcobo, and it engaged Experts as panellists and a number of specialists to support the Chairperson and Panel of Experts.

The Commission decided that a mix of skills would ensure that the Panel oversees and evaluates both legal (administrative, procedural) and technical (healthcare, health and competition economics) aspects of the inquiry. In addition to the mix of skills, the Commission also had to consider the independence of the various panel members. In particular, the Commission had to seek experts with relevant sector-specific experience that would not result in a conflict of interest. Details of the individual panel members appointed by the Commission to oversee the HMI are reflected in greater detail in Table 1 below:

TABLE 1: Panel members

Panellist

Reasons for selection

Chief Justice Ngcobo (Rtd)

  • Justice Ngcobo, in his capacity as the Chief Justice of the Constitutional Court was the head of the judiciary in the Republic of South Africa.

Dr Cees van Gent (Netherlands)

  • Dr van Gent has both competition economics, regulatory and health economics experience from the Netherlands. Unlike locally based competition economists, he has not presided over any matters that may be reviewed during this inquiry.

Professor Sharon Fonn

  • Professor Fonn is the Dean of Health Sciences at Wits. She brings sector and system-wide experience.She is a well-respected academic with extensive publications.

Dr Ntuthuko Bhengu

  • Dr Bhengu has public and private sector experience. He has also worked in nearly all parts of the private healthcare sector, bringing experience from all relevant markets.

Dr Lungiswa Nkonki

  • Dr Nkonki holds a PhD in health economics. She is an academic and has no conflicts of interests in the sector.

The total amount spent by the Competition Commission on the Market Inquiry into the Private Healthcare Sector since its establishment in 2013 amounts to R196 949 637.

The detailed breakdown is as follows (Table 2):

Table 2: cost breakdown

No

Description

Amount

1

Legal Expertise & Litigation

R12,537,881.16

2

Healthcare Sector Experts

R5,627,139.65

3

Data Warehousing & Actuarial Services

R13,486,040.63

4

Data De-Identification & Security

R9,598,784.61

5

Economics Experts 

R38,959,579.39

6

Media and Communications

R1,391,211.99

7

Panel Members

R36,794,302.06

8

Human Resources and Operational costs

R78,554,697.51

Total

R196 949 637

 

In respect of the Panel Members, payments were made as follows (table 3):

Table 3: Payments made to Panel Members.

Panel Members

Total

Justice Sandile Ngcobo

R5 929 016

Dr Ntuthuko Melusi Bhengu

R9 716 935

Cees Van Gent

R11 748 087

Dr Sharon Fonn

R3 328 763

Dr Lungiswa Nkonki

R6 071 501

In respect of the specific query in the Parliamentary Question regarding a certain law firm, I am advised that Ndzabandzaba Attorneys were not appointed to represent the Commission in the Market Inquiry and accordingly no monies were paid to them.

-END-

14 December 2018 - NW3728

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Hlonyana, Ms NKF to ask the Minister of Economic Development

Whether, his department subsidises any industries in the country; if not, what is the position in this regard; if so, (a) which industries, (b) where is each industry located, (c) what does each industry produce and (d) what is the monetary value of each subsidy?

Reply:

No, the budget of the Economic Development Department is not used to subsidise any industries in the country.

The Industrial Development Corporation (“IDC”) does provide concessional funding to a number of industries and sectors, including its Black Industrialist Programme and Gro-E Youth Programme, to encourage youth entrepreneurship. This support is provided across the country. Further details of IDC programmes may be found in the Integrated Report on the IDC’s website: https://www.idc.co.za/images/2018/IDC-IR-2018-Final.pdf.

In the past EDD has raised R95 million for the Downstream Steel Competitiveness Fund utilising funds paid over to the National Revenue Fund as a result of penalties imposed on ArcelorMittal South Africa for its role in cartels in the steel industry. The funds raised by EDD has been used for concessional funding to provide support to qualifying smaller competitors and downstream players. Funding has been approved for companies in Gauteng, Eastern Cape, Mpumalanga, KwaZulu-Natal and North West.

 

Similarly, EDD has raised R250 million for the Agro Processing Competitiveness Fund utilising funds paid over to the National Revenue Fund as a result of penalties imposed on Pioneer Foods for its role in the bread cartel. Funding has been approved in 42 deals to provide concessional funding for companies in Eastern Cape, Western Cape, Free State, North West, Mpumalanga, Limpopo, Gauteng and KwaZulu-Natal.

The work of EDD in competition matters has resulted in R4.5 billion raised from private companies to support small and medium business and black-owned businesses in a number of industries including agriculture, construction, manufactured consumer goods and spaza shops. The impact of this support has been across the country.                            

-END-

14 December 2018 - NW3612

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

Whether the Competition Commission purchased any motor vehicles since 1 April 2015; if so, what is the (a) make, (b), model, (c) price and (d) date on which each vehicle was purchased?

Reply:

Motor vehicles purchased since 1 April 2015

Yes, the Competition Commission purchased motor vehicles in each financial year since 1 April 2015. Expenditure has been disclosed in the relevant annual financial statements.

Details of the purchases are as follows:

2015/16 Financial year

  • One Toyota Corolla was procured at a purchase price of R 271 566.
  • One Audi A4 was procured, at a purchase price of R 430 212.
  • One Toyota Hilux was procured at a purchase price of R242 012.

2016/17 Financial year

  • Two Toyota Corolla vehicles were procured, at purchase prices of R 270 795; and R282 275 each.

2017/18 Financial year

  • Two BMW 3-series vehicles were procured, at purchase prices of R420 800 and R425 700 each and two BMW 5-series vehicles were procured, at purchase prices of R621 501 each.

 

-END-

14 December 2018 - NW3610

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What (a) number of forensic service providers did the Competition Commission appoint to assist with dawn raids since 1 April 2015, (b) is the name of each forensic service provider, (c) number of dawn raids did each service provider conduct and (d) was the cost to the Competition Commission in each case?

Reply:

The Competition Act provides for the Competition Commission to enter and search premises of persons who may have information relating to an investigation in terms of the Act. These enter and search actions by the Commission are a vital part of the gathering of information on prohibited actions, including participation in cartel activities, price fixing and tender rigging and they constitute a highly specialised activity and hence trust in a service provider is essential.

The Commission therefore relies on proven expertise as the results of such actions in the form of the evidence gathered that are subject to challenge and scrutiny by the courts. I have been advised that the Commission has been trying to increase the number of potential providers and has been bringing in other service providers to ensure that there is adequate expertise.

Of the 12 enter and search actions that have been undertaken since 1 April 2015, three have been referred to the Tribunal for prosecution. Nine of the 12 are still under investigation by the Commission. In the case against the Furniture Removals Companies, 25 of the 30 respondents have already settled with the Commission for a total of R15 069 172.

Since 2008, enter and search actions have contributed to successful cartel investigations which have resulted in R463 million in settlements and penalties imposed by the Competition Tribunal.

Since 1 April 2015, there are five (5) forensic service providers that have been utilised, namely:

  1. Century Technical Solutions (Pty) Ltd,
  2. Exactech (Pty) Ltd,
  3. Matlama Consulting (Pty) Ltd,
  4. eCybersystems (Pty) Ltd, and
  5. Itsamaya Consulting.

Prior to 1 April 2015, the Commission had used the services of Exactech (Pty) Ltd, Matlama Consulting (Pty) Ltd, Cyanre, Computer LAB and Forensic Investigation Recovery Management (Pty) Ltd. Currently Century Technical and Exactect are still the preferred providers, given their expertise, but the other service providers are building their capacity.

A total of 12 enter and search actions have been undertaken since 1 April 2015.

Of these 12, each service provider participated in the following:

  1. Century Technical Solutions (Pty) Ltd - 12 of the 12 enter and search actions
  2. Exactech (Pty) Ltd - 11 of the 12 enter and search actions
  3. Matlama Consulting (Pty) Ltd - 4 of the 12 enter and search actions
  4. eCybersystems (Pty) Ltd - 3 of the 12 enter and search actions, and
  5. Itsamaya Consulting - 1 of the 12 enter and search actions.

(d) The costs per enter and search action are as follows:

No.

Enter and search actions

Date of action

Service Provider/s

Cost to CC

Total per Raid

1

CC v Human Communications and Others

23 September 2015

Century Technical Solutions (Pty) Ltd

R275 700,00

R275 700.00

           

2

CC v Furniture Removal Companies

30 September 2015

Century Technical Solutions (Pty) Ltd

R3 693 086,00

R5 131 767.04

     

Exactech (Pty) Ltd

R1 309 295,70

 
     

Matlama Consulting (Pty) Ltd

R129 385,44

 
           

3

CC v Totalgaz and Others

14 October 2015

Century Technical Solutions (Pty) Ltd

R397 176,00

R933 417.83

     

Exactech (Pty) Ltd

R10 486,83

 
     

Matlama Consulting (Pty) Ltd

R525 755,00

 
           

4

CC v Glassfit and Others

23 March 2016

Century Technical Solutions (Pty) Ltd

R2 690 273,01

R4 747 743.30

     

Exactech (Pty) Ltd

R1 016 679,60

 
     

Matlama Consulting (Pty) Ltd

R1 040 790,69

 
           

5

CC v PG Bison and Sonae

31 March 2016

Century Technical Solutions (Pty) Ltd

R2 225 250,00

R3 326 335.06

     

Exactech (Pty) Ltd

R1 101 085,60

 
           

6

CC v Mpact and Others

26 May 2016

Century Technical Solutions (Pty) Ltd

R1 005 700,00

R1 583 149.93

     

Exactech (Pty) Ltd

R341 114,20

 
     

Matlama Consulting (Pty) Ltd

R236 335,73

 
           

7

CC v Maersk and Others

28 September 2016

Century Technical Solutions (Pty) Ltd

R1 917 956,00

R4 130 992.54

     

Exactech (Pty) Ltd

R2 213 036,54

 
           

8

CC v Wilmar Continental Edible Oils and Fats (Pty) Ltd & Others

08 December 2016

Century Technical Solutions (Pty Ltd

R1 619 004,00

R3 017 837.08

     

Exactech (Pty) Ltd

R1 398 833,08

 
           

9

CC v Fresh Produce Market Agents

23 March 2017

Century Technical Solutions (Pty Ltd

R3 496 379,78

R8 966 439.38

     

Exactech (Pty) Ltd

R5 470 059,60

 
           

10

CC v Feedlots Association of South Africa and its Members

14 June 2017

Century Technical Solutions (Pty Ltd

R4 504 140,00

R11 574 533.60

     

Exactech (Pty) Ltd

R3 693 011,60

 
     

eCybersystems (Pty) Ltd

R3 377 382,00

 
           

11

CC v Automatic Sprinkler Inspection Bureau and its Members

03 August 2017

Century Technical Solutions (Pty Ltd

R5 487 504,00

R12 374 792.49

     

Exactech (Pty) Ltd

R1 975 524,00

 
     

eCybersystems (Pty) Ltd

R4 777 680,00

 
     

Itsamaya Consulting

R134 084,49

 
           

12

CC v Altech UEC South Africa (Pty) Ltd and Others

16 November 2017

Century Technical Solutions (Pty Ltd

R 659 893.96

R1 710 768.34

     

Exactech (Pty) Ltd

R 536 603,68

 
     

eCybersystems (Pty) Ltd

R514 270,70

 
 

Grant Total

R57 773 476.59

-END-

19 November 2018 - NW3107

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Bagraim, Mr M to ask the Minister of Economic Development

Whether, since he served in Cabinet, he (a)(i) was ever influenced by any person and/or (ii) influenced any of his department’s employees to take any official administrative action on behalf of any (aa) member, (bb) employee and/or (cc) close associate of the Gupta family and/or (b) attended any meeting where any of the specified persons were present; if so, what are the relevant details in each case?

Reply:

(a) No.

(b) In the previous administration (2009-2014), members of the Gupta family were present at public or official functions or meetings that I attended, and as with other attendees, engaged with me at the events. Outside of such occasions, the following invitations or requests were directed at or received by me or by my office for bilateral meetings with members of the Gupta family:

(i) In approximately late 2011, my office received a request from a member of the Gupta family to meet with me. As no information was provided to warrant a meeting with me, I declined the request and directed my office to refer them to meet with one of my officials instead, as is standard practice with many requests by business people for bilateral meetings. They did not take up the offer and no further effort was made by them subsequently to follow up on this request.

(ii) Personal invitations to celebrate Diwali were received on more than one occasion, which invitations I declined. In addition, sometime in early 2013 I received an invitation to attend a wedding involving relatives of the Gupta family in Sun City, which invitation I declined.

While this does not relate to a member of the Gupta family, in February 2010 on the day of the State of the Nation Address, Mr Duduzane Zuma came to briefly introduce himself to me at my offices in Parliament. No specific request was made by him at the meeting nor does my office have any record of a request for a follow-up meeting.

-END-

19 November 2018 - NW3441

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Masango, Ms B to ask the Minister of Economic Development

(1)(a) On what date did his department last conduct an audit of artwork owned by Government which is under his department’s curatorship and (b) what are the details of each artwork under the curatorship of his department according to the Generally Recognised Accounting Practice 103; (2) whether any artworks under his department’s curatorship have gone missing (a) in each of the past five financial years and (b) since 1 April 2018; if so, what are the relevant details?

Reply:

The department conducts asset audits on a quarterly basis. I am informed that the Economic Development Department does not have any art work or any other heritage assets.

-END-

19 November 2018 - NW3280

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Hlonyana, Ms NKF to ask the Minister of Economic Development

Whether (a) his department and/or (b) entities reporting to him awarded any contracts and/or tenders to certain companies (names and details furnished) from 1 January 2009 up to the latest specified date for which information is available; if so, in each case, (i) what service was provided, (ii) what was the (aa) value and (bb) length of the tender and/or contract, (iii) who approved the tender and/or contract and (iv) was the tender and/or contract in line with all National Treasury and departmental procurement guidelines?

Reply:

The Economic Development Department, Competition Commission, Competition Tribunal and ITAC have not awarded contracts to any of the mentioned companies.

With regards to the IDC, I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which I quote as follows:

In 2015, the IDC has awarded a contract to Vox Telecommunications (Pty) Ltd. Details are as listed below:

(a)(i) Name of the Firm

(b)(i) What service was provided

(b)(ii)(aa) what was the value of the contract

(b)(ii)(bb) and length of contract

(b)(iii) who approved the contract

(iv) was the tender duly approved in terms of Treasury and procurement Guidelines

Vox Telecommunications (Pty) Ltd

Rightfax software license

R185 057 (Excl. VAT) over three years

Three years

IDC’s Procurement Committee

Yes

-END-

19 November 2018 - NW3230

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Ross, Mr DC to ask the Minister of Economic Development

What (a) amount did (i) his department and (ii) each entity reporting to him borrow from any entity in the People’s Republic of China (aa) in each of the past three financial years and (bb) since 1 April 2018, (b) is the name of the lender of each loan, (c) conditions are attached to each loan and (d) are the repayment periods for each loan in each case?

Reply:

The Economic Development Department, Competition Commission, Competition Tribunal and ITAC have not borrowed funds from any entity in the People’s Republic of China.

With regards to the IDC, I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which I quote as follows:

IDC has borrowed funds from two Chinese Financial Institutions: a development finance institution (China Development Bank); and a commercial bank (China Construction Bank). Table 1 below provides details on loans raised with these institutions.

Table 1: IDC arrangements with Chinese Lenders

Name of the Institution:

(1). China Construction Bank (CCB)

(2). China Development Bank (CDB)

Loan Type:

Bilateral loan

Bilateral loan

Short-term facility

Bilateral loan

Amount:

50,000,000

75,000,000

50,000,000

100,000,000

Currency:

USD

USD

USD

USD

Reference Rate:

3 months Libor

3 months Libor

3 months Libor

6 months Libor

Period concluded:

12 November 2015

13 October 2016

25 May 2018

23 April 2014

Tenure:

5 years

5 years

1 year

10 years

Repayment terms:

Bullet

Bullet

Bullet

Amortising

-END-

09 November 2018 - NW3074

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Macpherson, Mr DW to ask the Minister of Economic Development

Whether any of the companies that the Industrial Development Corporation (IDC) invested in had any court judgments handed down against them for failure to pay their creditors; if so, what (a) is the name of each company, (b) amount did the IDC invest in each company and (c) was the nature of the judgment handed down in each case?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which I quote as follows:

“The IDC in the ordinary course of business does not have sight of court judgments handed down against its clients by third parties, unless it is within the realm of liquidation and/or business rescue process.”

-END-

08 October 2018 - NW2786

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Cardo, Dr MJ to ask the Minister of Economic Development

(1)What (a) total amount has the Competition Commission paid to Ndzabandzaba since the firm started doing work for the commission and (b) are the details of the (i) scope and (ii) nature of the work that the specified firm has conducted for the commission; (2) whether the work of the specified firm included the active participation in the so-called dawn raids conducted by the commission; if so, what are the relevant details?

Reply:

I have been furnished with a reply by the Commissioner of the Competition Commission, Mr Tembinkosi Bonakele, to the question, which follows below:

“(1a) The Commission has paid the firm R 71 686 012.28, which includes payments made to various Advocates as well as VAT, for the period January 2015 to August 2018. The sum comprises of the following components:

Fees paid to attorneys: R50,7m

Fees paid to advocates: R11,8m

VAT: R8,6m

Ndzabandzaba Attorneys was briefed on 31 cartel cases. For completeness, some of these cases involved a number of respondents per case. For example, the Furniture Removal case involved 46 respondents engaged in over 7000 separate instances of collusion, the Automotive Components case involved 61 respondents engaged in 310 separate instances of collusion, whilst the Foreign Exchange (Forex) case involves 23 respondents, among others.

(1b) The nature and the scope of work rendered by the law firm include assisting the Commission with prosecution of cartel cases, negotiating and concluding settlement agreements on behalf of the Commission, giving legal advice on cartel cases and briefing legal counsel to appear at the Tribunal and higher courts on behalf of the Commission. Ndzabandzaba Attorneys has also assisted the Commission with High Court applications for search warrants.

The majority of cartel cases handled by Ndzabandzaba Attorneys have been resolved through prosecution and settlement that were confirmed by the Competition Tribunal. The law firm successfully negotiated settlements to the amount R594 million and has a 100% success rate on prosecutions at the Competition Tribunal thus far.

(2) Yes, the work included active participation in the so-called dawn raids conducted by the Commission. The Commission briefed Ndzabandzaba Attorneys to prepare applications for search warrants in the High Courts.

The firm provided the above mentioned services in respect of the following cases between 2015 and 2017:

  1. CC v Stuttaford Van Lines and Others
  2. CC v Totalgaz Southern Africa (Pty) Ltd and Others
  3. CC v PG Bison (Pty) Ltd and Another
  4. CC v Maersk South Africa (Pty) Ltd and Others
  5. CC v Fresh Produce Market Agents
  6. CC v Beefcor (Pty) Ltd and Others
  7. CC v Wilmar Continental Edible Oils and Fats (Pty) Ltd and Others
  8. CC v Altech UEC South Africa (Pty) Ltd and Others
  9. CC v ASIB and its Members

The High Courts granted all the applications for the search warrant in respect of the above cases made by Ndzabandzaba Attorneys on behalf of the Commission. Where warrants were challenged these were successfully defended except in one case where the decision is still subject to an appeal process.”

-END-

08 October 2018 - NW2706

Profile picture: Hlonyana, Ms NKF

Hlonyana, Ms NKF to ask the Minister of Economic Development

What (i) is the total value of loans that the Industrial Development Corporation had to write off in the past five financial years and (ii) was the value of each loan and (b) who was the recipient of each loan?

Reply:

a) The IDC publishes details of its impairments and write-offs in its Annual Reports, details of which are contained on page 76 of the 2017/18 Annual Report. For ease of reference, the information is set out below:

       

2017/18

 

2016/17

2015/16

2014/15

2013/14

Write-offs per annum (net of recoveries) R’million

3 025

 

1 329

2 045

1 363

520

The IDC Board sets an impairment threshold of a maximum of 20% of the value (at cost) of the IDC’s investment portfolio. As of the last financial year, impairments equaled 17,4% of investments measured at cost, following the accounting standard used by the Corporation. However, if measured at market value, impairments equal 10,4% of the current market value of the investment portfolio.

Over the past 5 years, the highest level of impairment at cost was 18,2%, in 2014.

The function of an impairment threshold is to provide the management with the appropriate “risk appetite” that should be followed in approval of projects. :

  • If the IDC had a impairment threshold target that was set too low or at zero, it would need to only lend to, or invest in, projects that are guaranteed to succeed, or which are fully covered by security for its investment. The effect of this would be that the IDC would not be able to support many viable projects that carry a degree of risk.
  • If on the other hand the IDC had a risk threshold that was set too high, it is likely to invest in many more projects, however it is also likely to lose significant sums and eventually would deplete its capital base and become unsustainable.
  • The current impairment level thus seeks to strike a balance and in general is less conservative than the ratios and levels that a commercial bank would apply, as is necessary for a development finance institution.
  • The IDC will write off a loan or investment which has been impaired, in whole or part, where the prospects of recovery is remote, taking into consideration any security which may reduce the extent of the potential loss.

b) With respect to the loan amount and details of recipients, the IDC has advised that it does not disclose the details thereof as these were approved prior to 1 April 2017, when a client confidentiality policy was in place, regarding the companies with which it transacted. Following review, the IDC changed its policy on client confidentiality effective from 1 April 2017.

The IDC has disclosed in their 2017/18 Annual Report, that the single largest write-off is in respect of SCAW South Africa, a steel and engineering company that the IDC has a majority shareholding in during the period.

I draw attention to the following comment in the IDC’s 2017/18 Annual Report, that provides additional information:

“The IDC mini-group recorded a R2.8 billion profit (after capital profits), the same as the previous year. Net interest, dividend and fee income increased by 35% compared to the previous year. Increases in operating costs were contained at 1.5%. The cost-to income ratio (excluding cash resource income, impairments costs, and income from mature listed investments) improved to 39% from 46% in 2017.

Of concern is impairments and write-offs which more than doubled from the previous year. This increase was impacted by Scaw where the introduction of strategic equity partners resulted in a significant write-off (R1.6 billion) and a R1.8 billion impairment of Foskor facilities. Higher levels of impairments resulted in the ratio for impairments as a percentage of the portfolio at cost increasing to 17.4% from 16.7% in the previous year. The interventions currently underway at these two subsidiaries, which both recorded losses higher than expected, as well as the establishment of a dedicated department to monitor and manage subsidiaries and other material investments is expected to address this issue.”

Source: IDC Annual Report, 2017/18

-END-

08 October 2018 - NW2723

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Economic Development

(1)What are the details of (a) any loans provided by the Industrial Development Corporation to a certain company (name furnished) or any of its affiliate companies which fall under a certain company (name also furnished) and (b)(i) the total sum and (ii) terms and conditions of each such loan; (2) whether any of the specified loans is now the subject of litigation; if so, what are the details thereof; (3) whether his department is conducting any internal investigations into the maladministration and financial mismanagement of the abovementioned entities; if not, why not; if so, what are the relevant details?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which I quote as follows:

“The IDC approved a total funding amount of R185 million for Glodina Lifestyle (Pty) Ltd (“Lifestyle”) to acquire a division of KAP Homeware (Pty) Ltd (“KAP”). No amount has been approved to affiliates of KAP in so far as this transaction is concerned.

Following a partial draw down by Lifestyle, it was discovered that the shareholder did not conform with the KAP sale and purchase agreement and the IDC loan agreement and the planned sale was therefore cancelled. A forensic investigation was carried out by IDC Internal Audit which resulted in criminal charges being laid in May 2018 against the shareholder in Lifestyle for misrepresentation.

The matter has since been referred to the Johannesburg Commercial Crimes Unit. IDC has since concluded a sale and purchase agreement with KAP with the intention to resuscitate the Glodina business. The IDC’s intention is to start the recommissioning of the plant as soon as possible.”

In addition to the above reply by the IDC CEO, I am advised that the Department reviewed the claims and counter claims of the various parties to the transaction prior to the institution of formal court proceedings. In light of the court proceedings, the Department will monitor their outcome and take any steps that are warranted, based on additional information that comes to light.

-END-

08 October 2018 - NW2785

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(1)(a) Which members of the Competition Commission’s executive committee received VIP protection services (i) in each of the past five financial years and (ii) since 1 April 2018, (b) for what period did each member of the commission’s executive committee receive VIP protection services and (c) what was the total cost to the commission of providing the specified VIP protection services; (2) whether a security threat analysis was conducted by the SA Police Service in each case; if not, what is the position in this regard; if so, what are the details of the recommendation of each security risk analysis?

Reply:

I have been advised by the Commissioner of the Competition Commission, Mr Tembinkosi Bonakele, of the following:

1. The Competition Commission undertakes investigations into collusion and cartel activities in the economy and in the course of carrying out its responsibilities, it is privy to commercially sensitive information which may result in significant competition penalties being imposed on affected parties and the possibility of criminal charges being brought against individuals. In addition, significant vested interests in the economy may be affected by the work of the Commission.

2. The Competition Commission and senior staff have been subject to a spate of criminal acts, the source and purpose of which is not yet apparent in spite of these having been reported to the law-enforcement agencies, which warranted in the opinion of the Commission, the provision of security to a limited number of senior officials in order to ensure the safety of persons and sensitive information.

3. The criminal acts comprised of the following:

  • on 25 May 2017 the Deputy Commissioner, while returning from a work assignment, was held at gunpoint and his work computer laptop, tablet and mobile phone, among other things, were taken.
  • On 8 August 2017 there was a security breach at the Commission premises and two laptops containing sensitive evidence were stolen from the Cartels Division. This followed incidents where laptops and mobile phones belonging to, amongst others, the Commissioner were stolen under what the Commissioner described as ‘mysterious circumstances’.
  • On 9 September 2017, the Chief Financial Officer (CFO) was robbed at gun-point.

4. The Commission took measures which included the provision of private security to four senior staff members; terminating the services of the security service provider at the Commission premises; and commissioning a security assessment by a private service provider. The report pointed to some security gaps in the security of the Commissioner, the Deputy Commissioner and the Divisional Manager for Cartels. Further work is also being done on IT security systems and further upgrades will be done subject to budget availability.

5. In addition to the above, and following the request by the Commission, SAPS covers the security of former Chief Justice Ngcobo who is currently heading a panel appointed by the Commission to conduct a Market Inquiry into private healthcare, with the Commission providing vehicles for the SAPS members assigned to the former Chief Justice.

6. The total costs for the various Protection Services amount to R14,9 million, as follows:

  • June 2017 – 31 March 2018 = R 14 607 748.
  • 1 April 2018 – August 2018 = R 373 304.

7. The State Security Agency was approached to further investigate these incidents and it undertook to conduct a comprehensive assessment on the security requirements of the Commission and its report is imminent. The detailed security assessments will inform any further decisions on this matter, including whether to continue with security measures and the appropriate level of such services.

-END-

ADDITIONAL INFORMATION

(1c) The total cost for providing private protection services from June 2017 to 31 March 2018 is R14 607 748. Total cost for providing private protection services from 1 April 2018 to August 2018 is R373 304. From June 2017 to March 2018 the cost reflect the amount for outsourced private security services. The security arrangement was revised and there was a reduction on the intensity of the services and most were insourced. The R373 304 is the total for outsourced private security services since 1 April 2018 until 31 August 2018 Total of cost of both period amounts to R14 981 051.

08 October 2018 - NW2787

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What (a) number of law firms did the Competition Commission brief regarding cartel cases between 1 January 2015 and 1 January 2017, (b) was the name of each law firm, (c) number of cases was each law firm briefed on and (d) was the cost to the commission in each case?

Reply:

I have been furnished with a reply by the Commissioner of the Competition Commission, Mr Tembinkosi Bonakele, to the question, which follows below:

“The number of law firms briefed by Commission between 1 January 2015 and 1 January 2017 is seven (7). The amount indicated below excludes costs for Council and VAT.”

NO

Name of Law Firm

Number of Cases

Total cost for all cases, excluding costs of Council and VAT

1.

Ndzabandzaba Attorneys

31 cases

R10 018 442,45

2.

KBK Attorneys

1 case

R 130 599,21

3.

Mokwana Incorporated

3 cases

R 191 574,74

4.

Ndobela Lamola Inc

2 cases

R 914 762,64

5.

Cheadle Thompson & Haysom Incorporated Attorneys

5 cases

R 4 191 731,01

6.

Maponyana Ledwaba Attorneys

1 case

R 76 317,54

7.

Knowles Attorneys

1 case

R 17 956,18

-END-

07 September 2018 - NW2447

Profile picture: Ntlangwini, Ms EN

Ntlangwini, Ms EN to ask the Minister of Economic Development

What is the (a) name of each investing company that has invested on land owned by (i) his department and (ii) each entity reporting to him and (b)(i) nature, (ii) value and (iii) length of each investment?

Reply:

The Economic Development Department, ITAC, Competition Commission and Competition Tribunal do not have land investments.

Attached as Annexure ‘A’ is information on land owned by the IDC. The properties are part of the IDC’s overall portfolio.

-END-

07 September 2018 - NW2473

Profile picture: Mente-Nqweniso, Ms NV

Mente-Nqweniso, Ms NV to ask the Minister of Economic Development

(a) What is the value of each loan offered by the Industrial Development Corporation, (b) on what date was the loan paid out, (c) to whom it was it paid out and (d) what is the value of the amount still owed on the loan?

Reply:

The IDC provides information on business partners that it funds, on the IDC website.

Details regarding investment date, value and shareholder details of IDC clients may be accessed at:

https://www.idc.co.za/images/DISCLOSURE_OF_IDC_FUNDED_BUSINESS_PARTNERS_FROM_1_APRIL_2017_-_31_MARCH_2018.pdf

I also refer the Honourable Member to the reply to Parliamentary Question 1575, of 18 May 2018.

 

-END-

03 September 2018 - NW2327

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Ntlangwini, Ms EN to ask the Minister of Economic Development

1)(a) What number of labour disputes are currently being faced by (i) his department and (ii) the entities reporting to him, (b) what is the cause of each dispute, (c) what is the nature of each dispute and (d) on what date was each dispute (i) reported and (ii) resolved; (2) (a)(i) what number of employees have been dismissed by his department in the past five years and (ii) for what reason was each employee dismissed and (b)(i) what number of the specified employees were paid severance packages and (ii) what was the monetary value of each severance package? NW2504E

Reply:

The information regarding dismissals and labour disputes faced by EDD is provided in the Annual Report of the department. Information on the 2017/18 financial year will be available in the report to be tabled in Parliament on 30 September 2018. Reports regarding previous years may be obtained at the following website: www.economic.gov.za

For entities that do not report details in their Annual Reports, I am advised as follows:

a) In respect of labour disputes:

  • ITAC – none
  • Competition Tribunal – none
  • Competition Commission – 3 on issues of misconduct or individual disputes
  • IDC – 4 involving disciplinary matters

b) In respect of staff dismissals:

  • ITAC – 2
  • Competition Tribunal – none
  • Competition Commission – none
  • IDC – 16

The reasons for dismissal range from unprofessional conduct, insubordination, theft and dishonesty, absenteeism and abscondment. In none of the cases were severance packages paid by the entities.

-END-

03 September 2018 - NW2275

Profile picture: Atkinson, Mr P

Atkinson, Mr P to ask the Minister of Economic Development

What is the current status of the loan that was awarded to Shiva Uranium by the Industrial Development Cooperation and (b) by what date will the specified loan be paid?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which follows below:

“ (a) This matter is now subject to litigation in an effort to recover IDC’s exposure of R287.5million. The R287 million is made up of R37.5 million remaining capital of the original R250 million loan and R250 million return on the original loan.

(b) There is a litigation process ongoing. We currently await the conclusion of that process. With respect to reference to “litigation” this means that IDC has
instituted legal action to recover the R37,5 million as well as the R250 million in accrued interest. The R37.5 million is the remaining amount of the original
principal amount of R250 million. Oakbay Resources has repaid a total of R212.5 million. The accrued interest remains at R250 million.”

-END-

02 July 2018 - NW2097

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(a) What number of law firms has the Competition Commission briefed regarding cartel cases since 1 January 2017, (b) what is the name of each firm, (c) with regard to what number of cases has each specified firm been briefed and (d) what was the cost to the Competition Commission in each instance?

Reply:

I have been advised by the Competition Commission that since 1 January 2017, nine law firms have been briefed on cartel cases, at a cost to date of R16 600 363. Details on law firms and number of cases can be found below.

Law firms briefed

Number of cases

Amount paid per law firm

1. Ndzabandzaba Attorneys

7 cases

R 10 519 266

2. Ndobela Lamola Incorporated

4 cases

R 567 736

3. KBK Attorneys

1 case

R 114 244

4. Mokwana Attorneys

3 cases

R 1 062 232

5. Mogaswa Incorporated Attorneys

3 cases

R 1 266 873

6. Tiyani Vukeya Attorneys

1 case

R 83 215

7. Morare Thobejane Incorporated

5 cases

R 1 074 747

8. Le Roux & Du Plessis Attorneys Inc.

1 case

R 1 650 734

9. Madlanga & Partners Inc.

1 case

R 261 316

-END-

02 July 2018 - NW1896

Profile picture: Esterhuizen, Mr JA

Esterhuizen, Mr JA to ask the Minister of Economic Development

What (a) is the rationale behind Government’s imposition of import duties on imported steel and (b) has he found to be the impact of the import duties on the amount of steel that was imported in the (i) 2016-17 and (ii) 2017-18 financial years?

Reply:

a) The rationale behind Government’s imposition of import duties on imported steel was to protect local steel manufacturing capacity from the surge of imports resulting from the global oversupply of steel.

South Africa is the only African country with this manufacturing capability and the steel industry is strategic to the country, given its linkages with other sectors of the economy.

The extremely low-priced imports of primary steel products originating mainly from Asia were harming local steel producers, as demonstrated by declining market shares, reduction in sales and production volumes, low capacity utilisation, declining employment and investments. The local producers were in a deteriorating competitive position in part attributable to escalating costs. Evraz Highveld Steel and Vanadium Ltd, the sole domestic manufacturer of heavy structural steel, ceased manufacturing and filed for business rescue.  When industry applied to the State for assistance, Government considered the application and approved a request for increased import duties.

In the case of the largest steel producer, government placed a reciprocal commitment on the company to increase its level of capital spending in order to improve its overall competitiveness; and the company agreed to save jobs that would otherwise have been lost as a result of retrenchments.

b) The overall impact of duties on the amount of steel imported into the domestic industry has been positive between the 2016/17 and 2017/18 financial years. This is evident from the decline in import volumes of flat and long steel products over the periods mentioned (see below table). However, imports of certain coated flat steel (galvanised) products are showing an increasing trend. This may be due to the importation of niche products and ultra-thin galvanised flat products which are not locally manufactured or they may reflect in part a circumvention of duties by importers. ITAC has been requested to monitor this and to take appropriate steps where warranted.

-END-

02 July 2018 - NW1955

Profile picture: Mokoena, Mr L

Mokoena, Mr L to ask the Minister of Economic Development

What has he found to be the impact of petrol price increases on the economy?

Reply:

Changes in the prices of petrol, diesel and other fuels are published by the Central Energy Fund on their website: http://www.cefgroup.co.za/petrol-price/.

As of 6 June 2018, the price of both grades of Petrol (i.e. unleaded and lead replacement) has increased by 82 cents per litre.

The change in the price of petrol is typically a function of both changes in international exchange rates (particularly the US Dollar-Rand exchange rate) and the change in international product prices (particularly crude oil).

For June 2018, the depreciation of the rand contributed roughly 30 cents of the increase in the price of petrol, while changes in the price of international product contributed roughly 52 cents to the increase. As an oil importing country, South Africa is unavoidably vulnerable to changes in international markets.

According to Stats SA, the price of fuel for consumers increased by 3.6% between April and May 2018, and 9.4% over the 12 months to May 2018. This is in line with petrol price inflation over the period since 2010.

This is expected to have both a short-term direct impact on inflation, and a long-term indirect impact on inflation. A study by the South African Reserve Bank, published in the Journal of Energy in Southern Africa in February 2017, found that a 10% year-on-year increase in the price of petrol resulted in a 1.2 percentage point increase in headline inflation across the economy over the long-run.

The cost of fuel has an important impact on overall inflation in the economy. These effects are both direct and indirect. Higher petrol prices directly impact the consumer in terms of higher fuel costs and higher public transportation costs. Higher petrol prices indirectly impact consumers, as an input cost, which will ultimately increase the cost for goods and services rendered.

Fuel prices also impact on the cost of production. The impact varies by sector. In a reply provided to parliament to a similar question, my colleague the Minister of Trade and Industry, discusses the direct and indirect impact on the manufacturing sector and current efforts to diversify sources of energy.

Fuel price inflation is challenging to manage, given that South Africa imports the bulk of its fuel and is therefore subject to changes in international market prices.

Fuel levies are applied to the price of fuel, and are used to raise funding for transport infrastructure. This investment in transport infrastructure reduces transport costs in the economy, which in turn enables more economic participation by businesses as well as households and in turn can moderate overall inflation.

Finally, it should be noted that according to an independent tracking service (www.globalpetrolprices.com), the price of petrol in South Africa at the pump is in line with the global average, and amongst the lowest when compared to non-oil-producing countries.

-END-

29 June 2018 - NW1960

Profile picture: Khawula, Mr M

Khawula, Mr M to ask the Minister of Economic Development

Whether the Competition Commission is investigating collusion, price fixing and/or uncompetitive behaviour by fuel suppliers (details furnished); if not, what is the position in this regard; if so, what are the further relevant details?

Reply:

The Competition Commission is investigating a number of cases of collusion and other uncompetitive behaviour in different sectors. However, as a matter of policy, the Competition Commission does not disclose which sectors it is currently investigating nor which sectors it is not investigating, unless such disclosure is warranted and in the public interest. Disclosing such detail may risk compromising any current or potential future investigation if prematurely released.

-END-

29 June 2018 - NW1906

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Alberts, Mr ADW to ask the Minister of Economic Development

Whether all members of the Senior Management Services (SMS) in the department had declared their interests for the past year as required by the Public Service Regulations; if not, (a) why not, (b) how many of the specified members did not declare their interests and (c) what are the (i) names and (ii) ranks of the specified non-compliant members of the SMS; 2) Whether non-compliant SMS members have been charged; if not, why not; if so, what are the relevant details; 3) What number (a) of employees in his department at each post level are currently suspended on full salary and (b) of the specified employees at each post level have been suspended for the specific number of days (details furnished; and 4) What is the total amount of cost attached to the days of service lost as a result of the suspensions in each specified case?

Reply:

1) I am informed that the department had a total of thirty-six (36) SMS members for the 2017/18 financial year.

Of these 36, 28 SMS members submitted by 30 April 2018 – the DPSA due date. The DPSA granted an extension for the 8 non-compliant SMS members to submit. On 31 May 2018, 7 of the 8 SMS members submitted. The 1 outstanding SMS member who has not submitted is on suspension since 9 March 2018. Of the 7 who subsequently submitted by 31 May 2018, official non-compliance letters were sent to =6 of them to provide reasons. A letter was not sent to the seventh official as the department is aware of her maternity leave.

Names (i) and ranks (ii) of the affected 8 SMS members are listed below:

NO

NAMES (i)

RANK (ii)

Letter Sent

1

Mr MP Kepadisa

Director

Yes

2

Ms MK Kopeledi

Chief Director

Yes

3

Ms W Mapira

Chief Director

Yes

4

Mr LL Maqekoane

Chief Director

On suspension

5

Ms S Shoba

Director

Maternity leave

6

Dr KM Sikhitha

Chief Director

Yes

7

Ms T Van Meelis

Chief Director

Yes

8

Mr B Zondo

Director

Yes

2) I am further advised that non-compliant SMS members have not been charged as yet and a submission/ report is currently being prepared by the Human Resource section to the Head of Department, with reasons from affected officials and recommendations from the Ethics Officer (EOs). The HOD must assess reasons provided, make a final decision, implement sanctions/corrective measures and to report back to the Department of Public Service and Administration (DPSA) by 30 August 2018.

3&4) Regarding officials suspended on full salary, one (1) official is currently suspended on full salary. Details of the suspension are indicated below

FINANCIAL YEAR

POST LEVEL

TYPE OF SUSPENSION

AMOUNT

NO OF DAYS (CALENDAR)

2018/19

14

Precautionary Suspension (Full pay)

R 198 733.36

72

-END-

29 June 2018 - NW1929

Profile picture: Ntlangwini, Ms EN

Ntlangwini, Ms EN to ask the Minister of Economic Development

What (a) is the total number of incidents of sexual harassment that were reported to the human resources offices of entities reporting to him in (i) 2016 and (ii) 2017 and (b) are the details of each incident that took place; (2) Was each incident investigated; if not, why not in each case; if so, what were the outcomes of the investigation in each case?

Reply:

I am informed that the Economic Development Department and its entities: the IDC, ITAC, Competition Commission and Competition Tribunal, do not have sexual harassment cases reported during the 2016 and 2017 financial years.

-END-

29 June 2018 - NW2015

Profile picture: Mokgalapa, Mr S

Mokgalapa, Mr S to ask the MINISTER OF ECONOMIC DEVELOPMENT

1) What are the details of the (a) number of accidents that vehicles owned by his department were involved (i) in each of the past three financial years and (ii) since 1 April 2018, (b) cost for repairs in each case and (c)(i) number of and (ii) reasons for vehicles being written off in each case; 2) Whether all vehicles owned by his department have tracking devices installed?

Reply:

Details of vehicle accidents/incidents owned by the Department over the three financial years are as follows:

  • 2015/16 - Four (4), three incidents involved chips/cracks on windscreens, and the 4th vehicle was written off. Total cost of repairs in 2015/16 amounted to R20 876.13
  • 2016/17 - 2 (Two) - one vehicle was involved in a pile-up accident, and the other one involved a windscreen replacement. No vehicle was written off. Total cost of repairs for 2016/17 amounted to R36 534.03
  • 2017/18 - 3 (Three) - one vehicle had bumper repair, and the second vehicle a fog light and bottom bumper grill had to be repaired. The third incident involved repair of rear light glass. No vehicle was written off. Total cost of repairs for 2017/18 amounted to R12 918.00
  • Since 1 April 2018 - No accidents have occurred.

Details on tracking devices are not made publicly available.

-END-

18 June 2018 - NW1617

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

With reference to the conference on inclusive development and industrialisation hosted by his department in 2017, what (a) was his department’s (i) budget and (ii) actual expenditure in respect of the conference and (b) were the costs to his department for a certain person’s (name furnished) participation in the conference?

Reply:

Normally a Conference of this nature would cost in excess of a million rand for travel of an international speaker, fees associated with the speaker (a Nobel Laureate in Economics), flights for local delegates, accommodation, venue and catering.

The Ministry arranged to have the event done in partnership with the University of Witwatersrand, who provided the venue and certain costs associated with the event.

The Economic Development Department paid R46 124 for the event, to cover part of the cost of catering and travel for local delegates. The Economic Development Department did not incur any costs at all for Professor Stiglitz, as he was already in the country at his own cost on business unrelated to the Department and he did not charge a speaker’s fee for speaking at the EDD event.

-END-

18 June 2018 - NW1878

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Ntlangwini, Ms EN to ask the Minister of Economic Development

(a) What (a) is the total number of incidents of racism that were reported to the human resources offices in (i) his department and (ii) entities reporting to him in (aa) 2016 and (bb) 2017 and (b) are the details of each incident that took place; (b) Was each incident investigated; if not, why not in each case; if so, what were the outcomes of the investigation in each case?

Reply:

I am advised that the Economic Development Department and its entities, the Industrial Development Corporation (IDC), ITAC, Competition Commission, and Competition Tribunal do not have incidents of racism reported to Human Resources in 2016 and 2017.

-END-

18 June 2018 - NW1616

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

With reference to his engagements with the Swedish retailer, H&M, as mentioned in his department’s Budget Vote speech on 10 May 2018, (a) how did the engagements come about, (b) what was the nature of the discussions, (c) what undertakings were given by the retailer and (d) what suasion was employed to extract these undertakings?

Reply:

H&M is reportedly the world’s second largest clothing retailer, with stores ion a number of countries, including in South Africa. Earlier this year, the company featured an advert of a black child wearing a sweatshirt with the words “coolest monkey in the jungle” etched on the front.

The company was widely criticized for insensitivity and some responded with outrage. The company issued a public apology and hired a diversity leader to strengthen company sensitivities.

It had been known for some time that the company has not used South Africa as a source for the manufacture of clothing. EDD reached out to the company to draw to their attention to the fact that the African continent is not purely a consumer market for goods but also a source of clothing and textiles. The Swedish ambassador also facilitated discussions between the company and government as well as NGOs.

During the discussions, it was acknowledged that every single item in a H&M store from assets, stock in trade and consumables is imported. The Department and some of the NGOs pointed out that a full and complete mea culpa would preferably include using South Africa as a source for clothing and other consumables, which would create local jobs and help to bring down levels of unemployment in the country.

Government is encouraging a number of retailers to localize more of their sourcing as a means of creating local jobs and some retailers have already responded positively, as reported to Parliament on more than one occasion, with positive results for the country.

H&M acknowledged it had not previously considered South Africa as a sourcing market and undertook to send a technical delegation to South Africa to identify local capacity. EDD arranged a meeting between H&M and a retailer who had invested in local sourcing to show the opportunities in local industry. EDD arranged for H&M to visit a number of factories in Johannesburg, Cape Town and Durban in late May 2018.

We are engaging the company further and look forward to a positive response based responsible corporate sourcing that creates manufacturing jobs in South Africa.

-END-

18 June 2018 - NW1618

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

Whether he has engaged the Minister of Public Enterprises and/or the Minister of Transport to ensure that Transnet and the Passenger Rail Agency of SA implement policies towards local procurement of rail-lines and trains; if not, what is the position in this regard; if so, what (a) are the relevant details and (b) progress has been made in this regard?

Reply:

As indicated in Parliament, I have met with both the Minister of Public Enterprises and the Minister of Transport to raise concerns regarding local procurement and to advise of the availability of local production capacity. Both Ministers support the drive to localize production of rolling stock and components.

The Honourable Member will be aware that changes have been effected recently to the boards of both affected State-owned Companies, namely Transnet and PRASA.

Further announcements will be made when additional developments occur or policy pronouncements are made.

-END-

18 June 2018 - NW1646

Profile picture: Van Dyk, Ms V

Van Dyk, Ms V to ask the Minister of Economic Development

(a) What number of cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, as amended, have been referred to the (i) SA Police Service (SAPS) and (ii) Directorate for Priority Crime Investigation (DPCT) by (aa) his department and (bb) each entity reporting to him for further investigation since the Act was assented to and (b) What number of the specified cases have (i) been investigated by SAPS and DPCI, (ii) been followed up by the respective accounting officers and (iii) resulted in a conviction in each specified financial year since 2004

Reply:

Economic Development Department

There are two (2) criminal cases that were reported to SAPS in terms of Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, relating to theft. Both cases have been investigated. In the first matter, the investigation was closed with the second matter is before the courts.

ITAC

Two cases have been reported to the SA Police Service (SAPS) to date. Bothe cases were followed up by the accounting officer. Neither case was successfully prosecuted.

Competition Tribunal

The Competition Tribunal has not had any cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004 referred to the SA Police Service (SAPS) and or Directorate for Priority Crime Investigation (DPCI).

Competition Commission

Two (2) cases have been reported to the SAPS and none have been referred to the DPCI.

The update from the SAPS is that they are investigating the two (2) cases. The Commission has received the update based on the follow up it has been making with the SAPS. None of the two (2) cases has resulted in a conviction at this stage.

IDC

The Industrial Development Corporation has referred seven (7) cases for investigation to the SAPS relating to the Prevention and Combating of Corrupt Activities Act from 01 April 2004 to 31 March 2018.

All seven (7) cases referred to the SAPS for investigation were investigated by the SAPS. None of the cases were directly referred to the Directorate for Priority Crimes.

All the cases referred to the SAPS were followed up by the respective IDC accounting officers. The respective forensic investigators and the General Counsel have followed up on the progress of the matters with the SAPS. None of the cases related to the Prevention and Combatting of Corrupt Activities Act has resulted in a conviction, as the matters are still ongoing.

-END-

18 June 2018 - NW1713

Profile picture: Hlonyana, Ms NKF

Hlonyana, Ms NKF to ask the Minister of Economic Development

(1)(a) What total amount of land owned by his department and the entities reporting to him in each province is (i) vacant and (ii) unused or has no purpose and (b) what is the (i) location and (ii) size of each specified plot of land; (2) (a) how much of the land owned by his department and the entities reporting to him has been leased out for private use and (b) what is the (i) Rand value of each lease and (ii)(aa) location and (bb) size of each piece of land?

Reply:

The Economic Development Department, ITAC, Competition Commission and Competition Tribunal do not own land and currently rents office space.

The IDC owns property which is retained as part of its overall investment portfolio.

Details on land owned by the IDC has been provided in Parliamentary Question 3605 in November 2017 and Parliamentary Question 978 in March 2018.

-END-

18 June 2018 - NW1815

Profile picture: Bara, Mr M R

Bara, Mr M R to ask the Minister of Economic Development

(1)Whether (a) his spouse and/or (b) an adult family member accompanied him on any official international trip (i) in each of the past five financial years and (ii) since 1 April 2018; if not, what is the position in this regard; if so, what (aa) is the name of the person(s), (bb) was the (aaa) purpose and (bbb) destination of the trip and (cc) was the (aaa) total cost and (bbb) detailed breakdown of the costs of the accompanying person(s) to his department; (2) whether each of the specified trips were approved by the President in terms of the provisions of Section 1, Annexure A of the Ministerial Handbook; if not, why not; if so, what are the relevant details?

Reply:

Neither a spouse nor an adult family member accompanied me on any official international trips in the past five years nor since 1 April 2018.

-END-

04 June 2018 - NW1442

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

Did the International Trade Administration Commission of South Africa appoint Genesis Analytics to conduct an assessment of the economic impact of the price preference system for scrap metal; if so, what are the relevant details of the (a) terms of reference, (b) costs and (c) findings of the assessment?

Reply:

The International Trade Administration Commission of South Africa (ITAC) and the Economic Development Department has on an on-going basis considered the impact of the price preference system (PPS) for scrap metals, which looked inter alia at declared levels of exports, feedback from individual companies affected by the PPS and consideration of the efficacy of the rules that are in place. One input into the assessment was a report by Genesis Analytics.

The Genesis Analytics Report was based on interviews with a sample of companies and considered the economic impact of the PPS. The cost of the Genesis Analytics study was R828 210.

The Genesis Analytics Report identified both benefits and challenges with the operation of the system.

The Department tabled data on trade flows on scrap metal to parliament as recently as September 2017, which indicated a significant decrease in volumes from 2014 to 2016 of 60%, and a decline in value from R5.8 billion in 2014 to R1.9 billion in 2016.

Government is considering various options on strengthening the impact of measures to ensure greater local use of scrap metal, to address the needs of the national infrastructure programme, reverse the previous deindustrialization of the foundry and steel mini-mill sector and to contribute to the country’s climate change goals. These include consideration of the extension of the PPS, adjustment of the rules applicable to the PPS, its replacement with an export tax on scrap metal or other means to ensure that a greater level of locally-collected scrap metal is in fact processed locally and an announcement will be made on conclusion of the review.

-END-

04 June 2018 - NW1464

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Van Dalen, Mr P to ask the Minister of Economic Development

Whether, with reference to the reply of the President, Mr C M Ramaphosa, to the debate on the State of the Nation Address on 22 February 2018 to implement lifestyle audits, (a) he, (b) senior management service members in his department and/or (c) any of the heads of entities reporting to him have undergone a lifestyle audit in the past three financial years; if not, have any plans been put in place to perform such audits if so, in each case, what are the details of the (i) date of the lifestyle audit, (ii) name of the person undergoing the audit, (iii) name of the auditing firm conducting the audit and (iv) outcome of the audit; (2) Whether he will furnish Mr P van Dalen with copies of the lifestyle audit reports?

Reply:

Fighting corruption is a major part of the focus of the Administration, and as shown by research results previously released, corruption can have a damaging effect on economic growth and job creation. Lifestyle audits can play an important part in identifying corruption and following the President’s pronouncement on the matter, consideration is being given to lifestyle audits in circumstances where on a risk-analysis basis, it is warranted or may assist with the fight against corruption. Neither the department nor its entities have conducted lifestyle audits in the past three financial years. The department and its entities will implement any directive issued by the relevant government agency.

Until such a directive has been finalised, the following anti-corruption and conflict of interest arrangements apply:

In respect of the Department, government has put in place a Financial Disclosure Framework for all Middle Management Staff (MMS), Senior Management Staff (SMS) and all employees entrusted with public funds. The framework is aimed at preventing conflict of interests by requiring designated employees to disclose their financial interests. The said are required to disclose their shares and other financial interests held in any private or public company or any other corporate entity recognised by law.

The said employees are also required to disclose their directorships, partnerships, the name, and type of business activity, of the corporate entity or partnership and the amount of any remuneration received for such directorship or partnership.

In respect of Minister and Deputy Minister, an Executive Disclosure and Parliamentary Disclosure framework is in place.

The Industrial Development Corporation (IDC) has set out its Fraud Prevention Policy and Plan in Annexure N to the IDC Corporate Plan (2018/19 – 2022/23). The IDC ensures comprehensive background checking is carried out on prospective employees, including at least verification of previous employment details, academic qualifications, citizenship and the existence or otherwise of a criminal record. We act within the relevant legal prescripts in this regard. The IDC also has recently implemented procedures to ensure comprehensive background checking is carried out on potential service providers. The Corporation embraces a “know your supplier” culture, which minimises financial crime in procurement and simultaneously makes the Corporations zero tolerance culture towards financial crime visible to service providers.

The Competition Commission has a Declaration of Financial Interests policy in terms of which all employees are required, on an annual basis and whenever there is a change during the year, to declare their financial interests such as ownership of shares in companies, directorships and trusteeships in companies and trusts, as well as ownership of properties. The policy also requires employees to declare any gifts they receive during the year. The Auditor-General, as part of its annual audit, requires members of the senior management team of the Competition Commission to submit information on related parties, ie close family members and business associates. The Auditor-General interrogates the information by ascertaining whether any of the service providers who did business with the Competition Commission during the financial year are linked to related parties of senior management.

For the Competition Tribunal, all part-time members are required to declare any conflict of interest on the court record before they attend a hearing. The Tribunal has an anti-fraud policy in place and all employees, consultants and contractors are required to sign an anti-fraud charter, and all staff sign a Supply Chain Management (SCM) disclosure on an annual basis.

For ITAC, in terms of their HR policies and procedures, all employees are required to disclose their financial interests annually by completing the ITAC Financial Disclosure Forms which must be approved by the Chief Commissioner. In case of the Chief Commissioner, his form is signed by an EXCO member. In addition, ITAC has a Fraud Prevention Policy aimed at setting the tone against any acts of corruption in the workplace.

-END-

04 June 2018 - NW1575

Profile picture: Hlonyana, Ms NKF

Hlonyana, Ms NKF to ask the Minister of Economic Development

What (a) is the name of each of the beneficiaries of the Black Industrialist Programme and (b) was the value of each deal that was approved since its inception?

Reply:

I have been advised by the CEO of the IDC, Mr G Qhena that 128 Companies have become beneficiaries of the Black Industrialist Programme since 1 April 2017. The name of each of the beneficiaries of the Black Industrialist Programme and value approved is attached in Annexure A.

The list provides details of approvals from 1 April 2017, in line with the decision to disclose IDC business partners from 1 April 2017 onwards. Since 1 April 2017, the IDC publishes the names of all beneficiaries of funding.

In the interest of transparency, I wish to draw attention to the availability of the full list of all recipients, not only Black Industrialists, for the financial year ending 31 March 2018, which may be found on the IDC website at:

https://www.idc.co.za/images/DISCLOSURE_OF_IDC_FUNDED_BUSINESS_PARTNERS_FROM_1_APRIL_2017_-_31_MARCH_2018.pdf .

-END-

04 June 2018 - NW1441

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(1) Whether his department has received any recommendations on amendments to the price preference system (PPS) for scrap metal from the International Trade Administration Commission of South Africa; if so, (a) on what date were the recommendations submitted, (b) what are the details of the recommendations, (c) what is the position of his department regarding the recommendations and (d) by what date will the amendments to the PPS be finalised?

Reply:

The International Trade Administration Commission of South Africa (ITAC) and the Economic Development Department has on an on-going basis considered the impact of the price preference system (PPS) for scrap metals, which looked inter alia at declared levels of exports, feedback from individual companies affected by the PPS and consideration of the efficacy of the rules that are in place.

The International Trade Administration Commission of South Africa (ITAC) is responsible for the administration of the price preference system (PPS) and therefore the export control guidelines (rules) that are used to administer the Price Preference System (PPS) for scrap metal.

ITAC identified a set of challenges in the administration of the PPS that related to abuse and circumvention of the policy intent of the PPS and decided to review the guidelines.

On 11 December 2015 ITAC published proposed amendments to the PPS guidelines and throughout the first half of 2016, I am advised that it engaged extensively in a process of consultation with industry. In the second half of 2016 ITAC began to engage the department on its final determination on the amendments.

During 2016 and 2017, the Department in turn engaged with some investors in the metal manufacturing sector on the operation of the PPS and ITAC commissioned additional research. The Department reported on the trade statistics regarding scrap metal to Parliament in September 2017, which showed a 60% decline in the export of scrap metal between 2014 and 2016. During 2017 and 2018 the State has been reviewing an appropriate action in respect of the PPS to ensure that government policy deepens local beneficiation into the future.

The department is of the view that the ITAC amendments to the guidelines would strengthen the administration of the PPS.

The amendments by ITAC to the PPS guidelines have been finalised. ITAC will determine a suitable date of implementation, taking into account, at a policy level, the review of the PPS by government.

-END-

21 May 2018 - NW1104

Profile picture: Nolutshungu, Ms N

Nolutshungu, Ms N to ask the Minister of Economic Development

What (a) number of consulting firms or companies are currently contracted by (i) his department and (ii) the entities reporting to him and (b)(i) is the name of each consultant, (ii) are the relevant details of the service provided in each case and (iii) is the (aa) start date, (bb) time period, (cc) monetary value in Rands of each contract and (dd) name and position of each individual who signed off on each contract?

Reply:

I have been furnished by the named entities with the information furnished below.

a) ITAC has a total number of four (4) consulting firms or companies currently contracted to provide services within the organisation. Refer to the table below:

Name of Consultant

Service Provided

Start Date / Time Period / End Date

Monetary Value in Rands

Name and Position of each individual who signed off on each contract

Document Warehouse

Records management

3 Nov 2016 - 2 Nov 2021

R12 000.00 pm

Chief Commissioner

Wilmar Brokers

Assets insurance

1 April 2015 - Till Cancel

R242 508.00

Chief Commissioner

Careways

Employee Health and Wellness Programme

1 Oct 2017 - 30 Sept 2020

R477 831.68

Chief Commissioner

EOH

Microsoft Licencing

1 Dec 2017 - 30 Nov 2020

R1 996 995.81

Chief Commissioner

b) EDD: A total number of two (2) consulting firms or companies were contracted with EDD during April and June 2017. Refer to the table below:

Name of Consultant

Service Provided

Start Date / Time Period / End Date

Monetary Value in Rands

Name and Position of each individual who signed off on each contract

21st Century

Job Evaluation

April 2017

R64 638

Director General

Indlela growth strategies

Recruitment related project management

June 2016

R222 023.84

Director General

(C) COMPETITION TRIBUNAL has a total number of eight (8) consulting firms or companies currently contracted to provide services in the organisation. Refer to the table below.

Name of Consultant

Service Provided

Start Date / Time Period / End Date

Monetary Value in Rands

Name and Position of each individual who signed off on each contract

Altimax

AFS compliance review

2015-04-01 (36 months)

R450 223, 62

  • Chairperson and Tribunal EXCO sign off on procurement process.

BLX Solutions

Reporting tool (Qlikview) support and development

2016-11-01 (36 months)

R489 316, 50

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO.

KPMG Incorporated

Internal Audit

2015-04-01 (36 months)

R1 417 438,84

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by the Chairperson.

Paprika Graphics and Communications

Annual Report Design and printing

2016-04-01 (36 months)

R322 682,27

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO.

Podrouzek

Case management software support and development

2016-07-01 (60 months)

R655 704,00

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO.

Pro-Publico Consultancy

Policy Consultancy

2015-05-01 (36 months)

Rate per hour

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO.

4Design Creative Media

Website support and development

2010-09-01 (Green contract)

R13 500,00

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO.

4Design Creative Media

Website support and development

2017-10-01 (Deviation extension)

R301 000,00

  • Chairperson and Tribunal EXCO sign off on procurement process.
  • SLA signed by COO - Janeen de Klerk

 

(d) COMPETITION COMMISSION: has a total number of 87 consultants for the 2017/18 financial year. The approval of these services and contracts were done in line with the Competition Commissions internal delegation of authority. In most cases, one consultant may have been appointed on more than one case or activity and that may span over a number of years.

Consultancy/ Type of Service Provided

Nature of Service

Period

Monetary Value

Economic Experts

The following consultants were utilised for economic advisory services as and when required

Acacia Economics Pty Ltd

AC Nielsen Marketing & Media Pty Ltd

Alexander Forbes

Business Metrics Consultants Pty Ltd

DNA Economics

Dr Joachin Vermooten

Genesis Analytics

IMS Health

Impact Research International

Meridian Economics

Assignment duration

R 105 405 951

Sector Experts

The following sector and forensic experts were utilised as and when required as,

Bizz Consult

Bureau for Food and Agricultural

Century Technical Solutions

Control Risks

Ecyber Systems Pty Ltd

Ethel Teljeur T/A Sizwe Gas

Exactech PTY LTD

Kasturi Mooaliyar

Assignment duration

R 68 427 072

External Legal Services

The following were contracted for legal services as and when required

AC Ndzabandzaba

Adv A Bhana

Adv M Le Roux

Adv NH Maentja

Adv J Wilson

Adv P Ngcongo

Adv H Rajah

Adv N Muvangua

Adv M Lekoane

Adv B Lekokotla

Adv A Hassim

Adv T R Mafukidze

Adv K Moroka

Adv Kazee

Adv PG Seleka

Adv V Notshe

Adv C Dauds

Bowman Gilfillan

Bradeley Conradie - Halton Cheadle

Cheadle Thompson & Haysom Incorporated

De Louw Le Roux and Deofrann Du Plessis

Dept of Justice & Const Development

Adv D.I. Berger SC (S ATTORNEY)

Fasken Martineau

Gildenhuys Malatji Inc

JE KLAAREN

KBK ATTORNEYS INC

Maenetja Attorneys

Maponya (Johannesburg ) Inc

Mike Brierley Consult CC

Mkhabela Huntley Adekeye Inc

Mokgwasa INC

Mokwana Attorneys

Morare Thobejane Incorporated

Nandisile Mokoena

Ndobela & Lamola Incorporated

Ngeno & Mteto INC

Assignment duration

R 105 289 244

Inquiry Support

The following experts and consulted were used for Inquiry Consult and Support as when required

Inquiry Consult and Support

BASE 36

Clint Oellerman

Dr Lungiswa Nkonki

Professor Sharon Fonn

KPMG Service Proprietary Limited

Lulama Mtanga

Dr Ntuthuko Melusi Bhengu

Sipho Mtombeni

Assignment duration

R 68 848 687

Bioss- Southern Africa

Psychometric Assessments

Once-off

R 10 317

Control Risks

Business Continuity

Once-off

R 49 494

Deloitte Consulting JHB.

Finance

Assignment duration

R 1 330 380

Deloitte & Touche No 2

Finance

Assignment duration

R 290 700

FRRW Consulting

Recruitment

Case duration

R 677 160

FTG Business Advisory Services (PTY) LTD

Recruitment

Assignment duration

R 615 932

Hiside Eventing PTY LTD

Strategic Planning Facilitation

Once-off

R 48 923

Isendlu Business Companion

Survey

Once-off

R 491 910

Kelly A Division of Kelly Group Ltd

Recruitment

Once-off

R 318 242

Key Careers and Consulting

Recruitment

Once-off

R 154 323

Kwakuhle Staffing Solutions

Recruitment

Once-off

R 396 296

Michael Page International SA

Recruitment

Once-off

R 280 000

Paul Bowning

Recruitment

Once-off

R 182 000

Price Waterhouse Coopers Incorporated

Change Management expert

assignment duration

R 919 165

QA Auditors INC

Finance

Once-off

R 706 800

Rangewave

IT

Once-off

R 1 479 264

SAGE Talent Solutions

Recruitment

Once-off

R 106 974

Sustainable livelihood Consultant

Research

Once-off

R 1 024 846

The Coaching Center

Executive Coaching

Once-off

R 254 106

The Dream Team

Strategic Planning Facilitation

Once-off

R 39 900

Thomson Reuters

Research

Once-off

R 90 938

Tibane Group

Strategic Planning Facilitation

Once-off

R 75 750

Towers Watson

Data Analysis Health Inquiry

Inquiry duration

R 2 017 837

Work Dynamics

Job Evaluations, HR

Once-off

R 68 578

e) Industrial Development Corporation: The Industrial Development Corporation uses consultants for expert advice and insight on certain transactions across industries and sectors which the IDC operates in. There are two types of consultancy contracts: those where the IDC is the only client and those where a consultant is appointed to render work to an IDC client which is funded on a cost sharing basis with its clients as part of an IDC business support grant. We provide details below of consultancy contracts for work rendered specifically for the IDC (excluding work commissioned on a cost-sharing basis with IDC clients):

I am advised that contracts are signed-off by specifically delegated IDC officials.

Consultancy agreements for consultancy work rendered to the IDC:

No.

Name of the Consultancy Firm

Name of each Consultant

Description of Services

Start Date

continue

Duration

Contract Monetary Value

1

Umoya Consulting (Pty) Ltd

Adrian Crewe

Development and execution of Industrial Policy Media Strategy for the Industrial Policy Support Fund (IPSF) of the dti, which is administered by the IDC

1-Nov-16

2 years

R1,740,000

2

B and M Analysts (Pty) Ltd

Julia Wedgwood

Development of a chemicals sector strategy for the Industrial Policy Support Fund (IPSF) of the dti, which is administered by the IDC

6-Dec-16

Phases 1 - 4 completed within 9 months (6 Dec 2016 until 5 Sept 2017) Phase 5 is ongoing support for 2 years

R1,247,502

3

Rothschild (SA) (Pty) Ltd and Identity Capital Partners (Pty) Joint Venture

Paul Bondi,

Rudy Scholtz,

Lumka Mlambo

Transaction Advisory Services for Scaw Metals

1-Jan-16

30 Months

R22,725,000

4

SAB&T Chartered Accountants Incorporated t/a Nexia SAB & T

Ndumi Medupe, Tando Mbatsha, Mohamed Koor, Rajen Kistan

Risk Management consulting services on an as needed basis

1-Aug-17

3 years

R495,810

5

Hatch Africa (Pty) Ltd

Peter Raymond,

Cornelia Holtzhausen,

Abre Smit

Johnny Kalala,

Doug Belle,

Max Clark,

Ashleigh Maritz,

Jan Lategan,

Ivor Poultney,

Ian du Plessis,

Greg Traquair,

Lisa Stowe

Independent review of Foskor business operations

25-Oct-17

18 weeks

R2,406,688

6

OABS Development (Pty) Ltd

Ryan Newborn, Daan Louw, H. Oosthuizen, Michael Brink, Andrew McEwan, Muedanyi Ramantswana

Development of the forestry investment program for the Industrial Policy Support Fund (IPSF) of the dti, which is administered by the IDC

9-Jan-18

8 months

R800,325

7

PWC

Zulfah Murray,

Barry Reynolds,

Corne Conradie,

Sebenzile Mathebula

Implementation of IFRS 9

6-Jun-17

3 years

R2,941,415

8

Riscura Solutions

Malcolm Fair,

Monika Kraushaar

Diversification of IDC listed equity portfolio

10 Nov 2015

First phase completed during FY 2017 and now awaiting regulatory approval for implementation phase.

R1,500,000

Deliverable 1 at a cost of R439K has been paid. Deliverables 2 to 4 is dependent on approval to proceed with implementation of the diversification project.

9

Agricultural Research Council (ARC)

Dr Alayinka Aiyegoro

Sydwell Langa

Ziyanda Dlamini

Lehlogonolo Moeng

Reduction of post-harvest losses in tomato fruits by enhancing the shelf-life through the use of fungul probiotics: increasing the economic power of smallholder farmers done for the EDD through the agro processing competitiveness research grant.

01 Jul 2015

2 years 9 months

R1,550,000

10

OABS Development (Pty) Ltd

Professor Andre Louw

Dr. Danie Louw

Urbanus Badenhorst

Johannie Pienaar

A study on potential product development for the commercialization and value add to beef products done for the EDD through the agro processing competitiveness research grant.

01 Aug 2016

2 years

R1,676,223

11

Luhlaza Intergrated Sustainable Solutions

Ntombifuthi Monedi-Noko

Mosimo Macatsha

Zandile Fuyane

Yannias Nuapia

A study on the agricultural development of alternative medicine in South Africa done for the EDD through the agro processing competitiveness research grant.

01 Aug 2016

2 years

R1,734,238

12

LHA Management Consultants (Pty) Ltd

Dr, Oliver Damm, Ralph Triebel,

Dr. John Barnes, Prof. Dawie van Vuuren

Prefeasibility study for the development of metal powder production capability for the additive manufacturing (AM) industry

01 May 2018

4 months

R1,722,500

13

Golder and Associates

Etienne Roux

Provide expert advice on African Chrome groundwater monitoring

23-Jan-2014

3 year (continuing until final site closure)

R7,537 per month

-END-

23 April 2018 - NW968

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(1)(a) What number of (i) case backlogs does the Competition Commission have and (ii) days has each case been backlogged for, (b) what was the average time line, in days, from receiving a complaint to resolving a case in (i) 2015, (ii) 2016 and (iii) 2017 and (c) how does the commission monitor the (i) settlement agreements reached and (ii) progress on each agreement; (2) have any cases been referred to the National Prosecuting Authority for prosecution; if so, what are the details of the cases

Reply:

1. (a) What number of (i) case backlogs does the Competition Commission have and (ii) days has each case been backlogged for, (b) what was the average time line, in days, from receiving a complaint to resolving a case in (i) 2015, (ii) 2016 and (iii) 2017 and (c) how does the commission monitor the (i) settlement agreements reached and (ii) progress on each agreement

The Competition Commission advises that it has a total of 64 cases on backlog in cartel matters, with the periods of backlog differing by case, with the complexity of cases largely driving the period of the backlog.

The following table provides information on the average time taken for different cartel investigations as well as enforcement/other abuse of dominance and restrictive practices, for the past three years:

Category

Average no. of days to complete all cases

 

2015/16

2016/17

2017/18

Cartels

1044 days

684 days

1061 days

Enforcement Other- abuse of dominance, restrictive practices

396 days

329 days

254 days

All settlement agreements concluded between the Competition Commission (“the Commission”) and respondent firms are presented to the Competition Tribunal (“Tribunal”) for confirmation as consent orders of the Tribunal in terms of section 49D of the Competition Act 89 of 1998, as amended (“the Act”). Once so confirmed by the Tribunal, a consent order may in terms of section 64 of the Act, be served, executed and enforced as if it were an order of the High Court.

Where a settlement agreement contains an on-going commitment or undertaking by a respondent firm to pay penalties or to perform remedial action, performance is monitored by the legal and economic teams of the Commission.

(2) Have any cases been referred to the National Prosecuting Authority for prosecution; if so, what are the details of the cases?

The Commission has referred certain cases to the relevant criminal investigation agency for criminal investigation. The Commissioner advises that further details of the cases cannot be disclosed at this stage because they are subject to ongoing criminal investigation.

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20 April 2018 - NW824

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What (a) amount has the Industrial Development Corporation co-invested with the China Construction Bank to finance industrial development and infrastructure projects since signing a cooperation agreement in 2015 and (b) are the relevant details of each project?

Reply:

The funding relationship between the IDC and China Construction Bank (CCB) is in the form of both co-funding and access to lines of credit. This is included in the cooperation agreement between the two institutions. In the financial year ending 31 March 2016, the IDC raised USD50 million and USD75million in the year ending 31 March 2017, through lines of credit from the China Construction Bank. These were invested in various projects funded by the IDC.

In terms of co-funding, the IDC partnered with the CCB in Nyamezela, a 100% black owned women business. The project was funded by the IDC and CCB to enable the client to deliver on an Eskom contract. The project is expected to create 44 permanent jobs.

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20 April 2018 - NW978

Profile picture: Matsepe, Mr CD

Matsepe, Mr CD to ask the Minister of Economic Development

How much land does (a) his department and (b) the entities reporting to him (i) own, (ii) have exclusive rights to and/or (iii) lease from the State to (aa) use and/or (bb) occupy?

Reply:

The Economic Development Department, ITAC, Competition Commission and Competition Tribunal do not own land and currently rents office space. Attached as Annexure ‘A’ is information on land which IDC owns. The properties are part of the IDC’s overall portfolio.

 

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20 April 2018 - NW826

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What (a) are the relevant details of the work that has been undertaken by the Industrial Development Corporation in partnership with the Public Investment Corporation to assess the economic cost of public sector corruption and (b) were the findings in this regard?

Reply:

I am not aware of any work undertaken by the Industrial Development Corporation in partnership with the Public Investment Corporation to assess the economic cost of public sector corruption. The question may be referring to work undertaken for the PICC (Presidential Infrastructure Coordinating Commission) by the IDC, on the potential economic cost of corruption, details of which were provided to the Honourable Member last year in response to Parliamentary Question 2843 published on 15 September 2017, and which is reproduced below for ease of reference.

“The information on the cost of corruption was based on an economic modeling exercise that sought to quantify the cost of the reduction in real capital spending that results from corruption and the impact on decreased spending in the SA economy on goods and services. While the full extent and thus real costs of corruption is unknown precisely because by its nature it is concealed, a calculation was done based on a scenario where corruption results in a 10% increase in costs; this increase was then modeled into the data-sets to obtain GDP and employment effects.

The purpose of the modeling exercise was to show that corruption is not a ‘victimless’ crime and that the opportunity costs of improperly and unlawfully diverting resources for private gain, comes at a significant cost to economic growth, job creation and service delivery. There is a compelling case for immediate and decisive action against corruption, based on the costs it imposes on the economy, on jobs and on the poor. The results of this modeling exercise were referred to in my speech at the 11th Annual Competition Law, Economics and Policy Conference on 31 August 2017 as well as at other public gatherings and were also shared with the Committees of the Economic Cluster, in Parliament, on 10 October 2017.

During my address to the 11th Annual Competition Law, Economics and Policy Conference on 31 August 2017, I noted the following:

Neither corruption in the public sector (with its private sector counterparties) nor collusion between large firms are victimless crimes. Corruption takes resources away from housing, jobs, social grants, education and health facilities. Collusion increases the costs of doing business, it stunts the dynamism and competitiveness that is needed and it has a negative impact on growth and jobs.

A World Bank study on competition in South Africa noted the following:

“In the case of four cartels in maize, wheat, poultry and pharmaceuticals – products which make up 15.6% of the consumption basket of the poorest 10 percent – conservative estimates indicate that around 200 000 people stood to be lifted above the poverty line by tackling cartel overcharges”.

We recently began doing work to quantify the cost of corruption in the public sector, based on just a 10% increase in the price of infrastructure projects as a result of corruption...Based on our modelling, it leads to at least R27bn foregone annually in GDP and the loss of 76 000 jobs that would otherwise have been created. So corruption is not only an ethical issue, it is also a profound issue of delivery, of growth, of services to the poor.

There are some troubling matters to address in looking at corruption and the collusion therewith by professional firms, from auditors to lawyers and others.

The culture of rampant acquisition is spreading so widely that the professional standards of integrity that is a hallmark of functioning institutions, are under enormous pressure. One of its outcomes is a fraying of the social compact that all societies need and unless we act with resolution, we will not build a society that achieves the vision of the constitution, indeed, we will betray it.

There are things we can do, practical things, while the wider battle to ensure integrity in the public and private sectors, is pursued.

One of the provisions in the Construction industry Settlement Agreement that I referred to earlier, is an Integrity Commitment that CEOs of the seven largest companies signed publicly and I want to briefly quote from it:

“ In my capacity as CEO of [name of company], I do hereby declare and affirm that:

  1. I will conduct business, and will do everything in my power to ensure that the company and all of its associated companies (‘the Group’) conducts business in South Africa, in accordance with sound legal and ethical practice;
  2. I will not be involved, and will do everything in my power to ensure that no one in the Group is involved, in any kind of bribery, corruption, collusion or unfair means of furthering our business interests;
  3. I will do everything in my power to instil a culture of integrity, honesty and transparency in the Group consistent with this declaration
  4. I will develop and actively promote codes of conduct imposing ethical and legal standards on all personnel in the Group that are aligned with international best practice for the construction industry and impose appropriate penalties on those who don’t comply; and
  5. I will use my best efforts, and take firm steps, in line with and pursuant to my executive management authority, to expose, confront, eradicate and prevent collusion and corruption in the construction industry and in all the construction industry’s dealings with public entities, private sector institutions and with each other.”

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