Question & Replies No 1976 to 2000

2009-11-25

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[PMG note: Replies are inserted as soon as they are provided by the Minister]

QUESTION NO: 2000

DATE SUBMITTED:

MS LD MAZIBUKO (DA) TO ASK THE MINISTER OF CORRECTIONAL SERVICES

For each of the years of 2008/09 and 2009/10, up to the latest specified date:

(1) What total amount in respect of advertising has the department and all specified entities reporting to the department/minister (a) budgeted for and (b) actually spent?

(2) For the department and each entity reporting to the department, (a) what was the total number of advertisements that (i) appeared in the print media, and (ii) was broadcast on (a) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement?

REPLY

	(a) BUDGET	(b) ACTUAL COSTS
2008/2009	R6,925,000.00	R2,968,306.16
2009/2010	R4,230,000.00	R1,228,602.21

(a)(i) The total number of advertisements in the print media

DATE ADVERTISED	(a)(i) NUMBER OF POSTS	(b) COST	(c) PURPOSE
2008/06/08	177	R1,262,324.28	SMS, scarce skill and various posts
2008/07/13	4	R66,727.96	Various posts for Custodian and Closed/Specialized Occupations
2008/09/13	12	R60,955.00	Parole Board posts (Three [3] Regions: LMN, Gauteng and KZN)
2008/11/09	8	R136,466.21	Various posts for Custodian and Closed/Specialized Occupations
2009/01/11	1	R24,987.60	Audit Member Committee
2009/01/18	352	R381,327.26	SMS, scarce skill and various posts
2009/03/22	507	R1,035,517.85	Control Room Supervisor and Operator posts
2009/05/29	3	R90,898.00	SMS posts
2009/05/03	15	R47,824.81	Additional Community Member posts
2009/06/09	270	R924,296.68	Scarce skill and various posts
2009/09/13	20	R165,582.72	SMS and various posts (New Correctional Centre: Kimberley)
TOTAL	1369	R4,196,909.00

In terms of (ii)(a) and (bb) a zero costing is reported.

Question 2

2008/2009

(i) Sixty (60) advertisements appeared in the print media. (For purpose of inviting prospective suppliers)

(ii) Four (4) advertisements appeared in the print media. (For purpose of bid invitations)

(iii) Three (3) advertisements appeared in the print media. (For purpose of advertising of national choir competition, advertising of national corrections week and article on corrections week at Rooigrond Management Area)

2009/2010

(i) Sixty (60) advertisements appeared in the print media. (For purpose of inviting prospective suppliers)

(ii) One (1) advertisement appeared in the print media. (For purpose of bid invitations)

(iii) One (1) advertisement appeared in the print media. (For purpose of report on national corrections week at Rooigrond Management Area)

(ii) was broadcast on

(ii) (a) radio and

2008/2009

None for Supply Chain Management.

2009/2010

None for Supply Chain Management.

(ii) (bb) television,

2008/2009

None for Supply Chain Management.

2009/2010

None for Supply Chain Management.

(b) 2008/2009

(i) R 84 033-37 for the total number of 60 advertisements. (For purpose of inviting prospective suppliers)

(ii) For purpose of inviting bid invitations:

- R 19 104-94: Outsourcing of the Chief Financial Officer function.

- R 24 283-00: Rendering of forensic audits.

- R 685-00: Collection of waste food at Potchefstroom Correctional Centre.

- R 2 205-00: Collection of waste food at Wolmaransstad Correctional Centre.

- R 17 000-00: Advertising of national choir competition at Rooigrond Management Area.

- R 9 000-00: Advertising of national corrections week at Rooigrond Management Area.

- R 6 838-29: Article on corrections week at Rooigrond Management Area.

2009/2010

(i) R 80 308-00 for the total number of 60 advertisements. (For purpose of inviting prospective suppliers)

(ii) For purpose of inviting bid invitations:

- R 834-00: Collection of waste food at Wolmaransstad Correctional Centre.

- R 11 500-00: Report on national corrections week at Rooigrond Management Area.

(c) For purpose of inviting prospective suppliers:

The purpose of these advertisements was to, in accordance with National Treasury's Practice Note number SCM 8 of 2007/2008, to invite prospective suppliers at least annually through local representative newspapers to apply for listing as prospective suppliers (for procurement by means of price quotations) at the individual Procurement Units within the Department of Correctional Services.

(i) For purpose of inviting bid invitations:

- To provide optimum exposure to the requirement of the Department for the outsourcing of the Chief Financial Officer function for a three-year period.

- To provide optimum exposure to the requirement of the Department for the establishment of a list of approved service providers for a two-year period for rendering of forensic audits.

- To provide optimum exposure to the requirement of the Department for Collection of waste food at Potchefstroom and Wolmaransstad Correctional Centres.

- To provide optimum exposure to the requirement of the Department for advertising of national choir competition at Rooigrond Management Area.

- To provide optimum exposure to the requirement of the Department for advertising of national corrections week at Rooigrond Management Area.

- To provide optimum exposure to the article on corrections week at Rooigrond Management Area.

- Report on national corrections week at Rooigrond Management Area.

Communications: The Communications' Chief Directorate does budget for adverts/advertorials as an integral part of key campaigns outlined in the corporate calendar. The objectives broadly are to enhance awareness, understanding and participation of stakeholders in the delivery of Correctional Services. It should be appreciated that the paid for media space and time is just one part of a broader media plan and most of the space secure is unpaid for. Taking into cognisance that communication is a support function the costs of advertising are in a number of respects borne by the core business branches, for an example: Operation Vala, Corrections Week and Corrections Excellence Awards. In total Communications had budgeted R1 995 000.00 (R515000 in 2008/9 and R1 480 000.00 in 2009/10) and spent R 3,283,608 over the years with the difference covered by core branches. The table hereunder gives a more detailed account of what happened.

(a) budgeted for:

(i) 2008/09:

R880 000

(ii) 2009/10:

R1 400 000

(b) spent

(i) 2008/09:

R878 205,84

(ii) 2009/10:

R1 323 483,00 (1 April 2009 to date)

(2)(a) Total number of advertisements for the department

(i) Print media: 17 (2008/09: 9 and 2009/10: 8)

(ii) broadcast on (aa) radio: 3 (2008/09: 1 and 2009/10: 2)

(bb) television: none

(b) Cost per advertisement

(i) Print media

2008/09 financial year

· Marketing departmental activities:	R129 995,00 [Izinkozi media publishers]
· Female Farmer of the Year Awards:	R27 303,00 [New Africa Publication Magazine]
· Ilima/Letsema winter campaign:	R177 274,33 [City Press, Sunday Times, Rapport]
· Internship opportunities 2009/10:	R135 528,67[The Star, Daily Sun and Sunday Times]
· 2009 academic year bursary awards:	R104 863,47[The Star, Daily Sun, Pretoria News, Isolezwe and Cape Argus]
· Consultation for NAETF[1]:	R173 587,93 [City Press, Sunday Times, Rapport]
· Mafisa[2] campaign I:	R18 662,12
· Mafisa campaign II:	R18 662,12
· Ilima/Letsema campaign:	R50 366,90

2009/10 financial year

· Female Farmer awareness campaign: · Sowetan, Beeld, Rapport, City Press]	R279 815,02 [The Star,
· Showcasing Female Farmer winners:	R34 194,30 [Izinkozi media publishers]
· Internship opportunities for 2010/11:	R112 337,89[Daily Sun and City Press]
· 2010 academic year bursary awards:	R55 625,89[City Press]
· Tribute to late Deputy Minister: Dirk Du Toit:	R95 935,07 [Cape Argus, Sat. Star, Sunday Independent]
· World Food Day awareness campaign:	R67 499,66 [Capricorn Voice, Limpopo Informat, Daily Sun]
· Agriculture Land Reform:	R148 174,92
· Ilima/Letsema campaign:	R381 120,37

(ii) Broadcast on

(aa) radio:

2008/09 financial year

· Call for nomination of candidates for OBP[i]:	R41 962,30

2009/10 financial year

· Female Farmer awareness campaign:	R119 025,92 [SABC radio stations]
· World Food Day campaign:	R29 754,00 [community radio stations]

(bb) television: none

AGRICULTURAL RESEARCH COUNCIL (ARC)

(1)The total amount used in respect of advertising of ARC products and services in print media and broadcast (radio and television) for the 2008/09 financial year was R 548 910.00 and from 01 April 2009 to date is R 220,590.00

Period	Budgeted for	Spent
2008/09	R 0	R 548 910.00
01/04/2009 to date	R 0	R 220,590.00

There was no budget allocated for advertising during the respective financial periods, however the organisation placed adverts in various publications of strategic importance to both the ARC and Stakeholders.

(2)(a)The total number of advertisements is nine (9) and two (2) for 2008/09 and 01 April 2009 respectively. Advertisements were in the print media only. No advertisements were placed in broadcast media (both radio and television). The purpose was to advertise the ARC Products & Services and create awareness about the ARC brand and corporate image.

2008/09
Company	Purpose		Amount Spent
Ekuseni Communications	Advertisement of the 2008/09 ARC Annual Report Tender in the Sunday Times.		R 17,258.40
Government Printing Works	Advertisement of the 2008/09 ARC Annual Report Tender in Government Bulletin/Gazette		R 596.49
VUNA Supplement 2008	Advertising of ARC products & Services in VUNA Publication – Commissioned by the then Department of Agriculture and Land Affairs		R 177, 840.00
TopCo Media (PTY) LTD	Placement of advertorial in the Top 300 performing companies' publication – ARC nominated as the top performing government agency.		R 33, 950.00

Press Group Holdings	Placement of ARC advertorial in "the world bank perspective on development" publication.		R 146 127.07
Media24	Supplement insert of the vegetable growing supplement in FarmingSA – (The role of agricultural research in the economy and towards food security).		R 67,500.00
Picasso Headlines	Placement of an advertorial in the New Agenda Publication.		R 30, 045.84
Nexus Strategic Partnerships LTD	Placement of an advert profiling the ARC in the Commonwealth Education Partnerships publication.		R 73, 261.50
Brabys (pty) Ltd	Placement of ARC listing in the SADC Directories Listing		R 2, 331.30
Total			R 548 910.00
01 April 2009 to date
VUNA Supplement 2009	Advertising of ARC products & Services in VUNA Publication – Commissioned by the then Department of Agriculture and Land Affairs.	R 177, 840.00
Proverto Publishers	Advertisement in Agricultural Career Guide – awareness of scarce skills in the agricultural sector and profiling of the ARC's professional development programme (PDP).	R 42, 750.00
Total		R 220,590.00

NATIONAL AGRICULTURAL MARKETING COUNCIL (NAMC)

2008/09
Description	Budget	Actual	Purpose
Print media - Fortune Magazine	495,720.00	287,487.14	To promote South Africa image's and to build upon our reputation in the global arena. To show investors that our economy offers a very stable and predictable environment from which to access large markets.

2009/10
Description	Budget	Actual	Purpose
Print media - Mail & Guardian	15,000.00	11,491.20	To publicize that NAMC, WBHO and ComMark are working together on the Eastern Cape Red Meat Project (ECRMP) which focuses on linking rural and/or emerging farmers to formal markets. Also as a way of sourcing funding in order to leverage funds contributed by UK Department for International Development (DFID).

PERISHABLE PRODUCTS EXPORT CONTROL BOARD (PPECB)

a) The PPECB had budgeted R380 000 in respect of advertising and promotion for the financial year 2008/09;

b) (i) The PPECB spent R279 919.16 In respect of advertising and promotion for the financial year 2008/09; (ii) during 2009/10 financial year, the PPECB has spent R142 915.70 in advertising & promotions.

Question 2:

(a)(i) 34 PPECB advertisement appeared on the print media; (ii) (a) no PPECB advertisements were on the radio; (b) no PPECB advertisements were on the television.

a) Each print advertisement costed an average of R7000 per advert.

b) The purposes of all PPECB advertisements is to bring awareness to Clients of the products and services of the PPECB

NCERA FARMS (PTY) LTD

Ncera Farms has not spent any money for advertising during the financial years 2008 - 2009 and during the period 1 April 2009 to date. No amount was budgeted for advertising during the aforementioned periods.

ONDERSTEPOORT BIOLOGICAL PRODUCTS (OBP)

(1)(a) OBP budgeted	R1 383 375.00 for advertising
(b) Spent	R637 239.53
(i)(ii) during the period 1 April 2009 up to the latest specified date for which information is available budget (year-to-date)
(i) Budget:	R460 000.00
(i) Actual:	R345 628.00;
(2)(a) (i) appeared in the print media 38 and (ii) were broadcast on
(aa) radio 0 and
(bb) television 0,
(b) adverts ranged between	R1640.00 and R52 387.00
(c) the purpose of each advertisement in essence they were encouraging users of our products to vaccinate against the various diseases catered for by our products

[1] NAETF: National Agricultural Education and Training Forum

[2] Mafisa: Micro-Agricultural Financial Institutions of South Africa

[i] OBP: Onderstepoort Biological Products

NATIONAL COUNCIL OF PROVINCES

WRITTEN REPLY

QUESTION NO 1999

(Internal Question Paper No 29 - 2009)

Mrs M Wenger (DA) to ask the Minister for Cooperative Governance and Traditional Affairs:

(1) What total amount in respect of advertising has his department and all specified entities reporting to it (a) budgeted for and (b) spent (i) in the 2008-09 financial year and (Ii) during the period 1 April 2009 up to the latest specified date for which information is available;

(2) (a) what total number of advertisements for his department and each entity reporting to it (i) appeared in the print media and (ii) were broadcast on (aa) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement? NW2651E

Answer

-1 information on the amounts spent on advertising by the entities will be provided after the entities have all submitted. The department has for 2008/09 financial year budgeted R8, 592 million and the actual expenditure was R8, 238 million,

- For the financial year 2009/10, the department has budgeted R6. 989 million and to date R4, 869 million has been spent.

2. The information on entitles will be provided once an the entities have submitted, in terms of adverts by the department the following is the situation'

1)10 (excluding the recruitment adverts)

ii) Advert on 16 days of Activism and Advert on Vuna Awards

iii) The two broadcasted adverts costed the department R854, 844 and R699,372 respectively.

(iv) The purpose of al1 adverts was to inform the public of the purpose of the events and activities that the department is involved in.

FOR WRITTEN REPLY

QUESTION NO 1990

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 02 NOVEMBER 2009

(INTERNAL QUESTION PAPER NO 26)

1990. Mrs A T Lovemore (DA) to ask the Minister of Water and Environmental Affairs:

(1) What total amount in respect of advertising has her department and all specified entities reporting to it (a) budgeted for and (b) spent (i) in the 2008-09 financial year and (ii) during the period 1 April 2009 up to the latest specified date for which information is available;

(2) (a) what total number of advertisements for her department and each entity reporting to it (i) appeared in the print media and (ii) were broadcast on (aa) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement?

REPLY:

(1)(a) My Department had an advertising budget of R10, 000,000.00 for the 2008/09 financial year.

(1)(b)(i) The actual advertising spend for My Department during 2008/09 was R6, 110, 612.29.

(1)(b)(ii) The actual advertising spend My Department from 1 April 2009 to date is R7, 982,023.45.

(2)(a)(i) During 2008/2009 and 2009/2010 and the period covering 1 April 2009 to date, a total of 82 advertisements appeared in newspapers and magazines for purposes of raising awareness of water and forestry issues and the promotion of important events on the Department's calendar regarding water and forestry issues. Chief among these events are the National Water Week, Arbor Week and Sanitation Week.

(2)(a)(ii)(aa)During 2008/2009 and 2009/2010 and the period covering 1 April 2009 to date, five important events on the Department's calendar were advertised on radio broadcast. These were the National Water Week, Youth Summit, Weedbuster Week, Waste Discharge and Arbor Week.

(2)(a)(ii)(bb)During 2008/2009 and 2009/2010 and for the period covering 1 April 2009 to date, three important events on My Department's calendar were advertised on television. These were the National Water Week, Waste Discharge and the Arbor Week.

(2)(b) In 2008 the total cost of advertising in newspapers for the National Water Week, the Sanitation Week and Arbor Week was R 1,087,815.20. The Breakdown of costs between these three items is shown if Table 1 below. Total costs for magazine advertisements were R 1,071,698.80, bringing the overall costs of print media based advertisements to R 2,159,514.00

-2-

Table 1 (Advertising in Newspapers for the period 2008)

ADVERTISMENT ITEM	COST
National Water Week	R 829,846.97
Sanitation Week	R 175,769.67
Arbor Week	R 82,198.56
TOTAL	R 1,087,815.20

In 2009 the total cost of advertising in newspapers for the National Water Week, the Weedbuster Week, Waste Discharge, Youth Summit and Arbor Week was R 1,448,192.75. The Breakdown of costs between these three items is shown if Table 1(a) below. Total costs for magazine advertisements were R 621,940.00 bringing the overall costs of print media based advertisements to R 2,070,133.75

Table 2 (Advertising in Newspaper for the period 2009)

ADVERTISMENT ITEM	COST
Weedbuster Week	R 725,321.80
Youth Summit	R217,864.15
Arbor Week	R 384,606.80
Waste Discharge	R120,400.00
TOTAL	R 1,448,192.75

In 2008 the total cost of advertising in electronic media was R 3,951,098.29 and this amount of money was for the National Water Week, the Arbor Week and Sanitation Week. The breakdown of these costs is shown in table 2 below.

Table 3 (Advertising in electronic media for the period 2008)

ELECTRONIC MEDIA	NATIONAL WATER WEEK	ARBOR WEEK
Radio Advertising	R 1,200, 00.00	r 1,210,552.29
TV	R 1,000,344.00	R 540,202.00

In 2009 the total cost of advertising in electronic media was R5,991,889.70 and this amount of money was for the National Water Week, the Arbor Week and Sanitation Week. The breakdown of these costs is shown in table 2(a) below.

Table 2(Advertising in electronic media for the period 2009)

ELECTRONIC MEDIA	weedbuster week	ARBOR WEEK	YOUTH SUMMIT	WAST E DISCHARGE	NATIONAL WATER WEEK
Radio Advertising	r74,818.42	r443,488.50	R 496,706.05	R 247,950.00	R 1,486,238.01
TV		r660,000.00		R 1,291,344,36	r 1,291,344.36

(2)(c) All magazine advertisements were for raising the awareness about water and forestry issues in the South African public while newspaper and broadcast advertisements were for the National Water Week, the Arbor Week and Sanitation Week.

QUESTION NO. 1990 FOR WRITTEN REPLY: NATIONAL ASSEMBLY

A draft reply to Mrs A T Lovemore (DA) to the above-mentioned question is enclosed for your consideration

NATIONAL ASSEMBLY

(For written reply)

QUESTION NO. 1990 INTERNAL QUESTION PAPER NO 26 of 2009

DATE OF PUBLICATION: 02 November 2009

Mrs A T Lovemore (DA) to ask the Minister of Water and Environmental Affairs:

(1) What total amount in respect of advertising has the department and all specified entities reporting to it (a) budgeted for and (b) spent (i) in the 2008-2009 financial year and (ii) during the period
1 April 2009 up to the latest specified date for which information is available;

(2)(a) what total number of advertisements for the department and each entity reporting to it (i) appeared in the print media and (ii) were broadcast on (aa) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement?

1990. THE MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS ANSWERS:

1) Tabulated below are the costs in respect of advertisements for the 2008/2009 and 2009/2010 (1 April – to 31 October 2009) Financial Year:

Name of Entity	(a)( i) Budgeted Cost 2008/2009	(b)( i)Spent 2008/2009	(a)( ii) Budgeted Cost 2009/2010	(b)( ii) Spent 1 April – 31 October 2009
DEAT	R6 898 300	R6 898 300.02	R8 512 000	R4 350 056.27
South African National Biodiversity Institute	R 200 000	R 106 844	R 100 000	R 70 528
South African National Parks	R5 275 447	R4 738 684	R9 373 051	R3 984 503
South African Weather Service	R3 100 000	R1 613 885	R 399 447	R 366 628
iSimangaliso Wetland Park Authority	R 166 200	R 32 179	R 200 000	R 57 228
Marine Living Resources Fund	R1 368 350	R774 000	R3 199 740	R1 344 826

2) Tabulated below are the costs in respect of total number of advertisements for the 2008/2009 Financial Year:

Name of Entity	(a)( i) Total Print Media Advertisements	(a)(ii)(aa) Total Broadcast Radio	(a)( ii) (bb) Total Broadcast Television	(b)(i) Cost of advertise- ment Print Media	(b)(aa) Cost of Advertisement Radio	(b)(bb) Cost of advertise-ment TV	(c) Purpose
DEAT	163	N/A	N/A	R2 756 426.85	N/A	N/A	The advertisements were for marketing, recruitment and tenders
South African National Biodiversity Institute	8	N/A	N/A	R 106 844	N/A	N/A	Various adverts in different media
South African National Parks	33	97	N/A	R1 291 661	R528 540	N/A	Magazine & Press 45 second spots on radio
South African Weather Service	41 Advertisements	N/A	N/A	R1 613 855	N/A	N/A	Other Advestise- ments Vacancies Advertised
iSimangaliso Wetland Park Authority	9 Procurement tenders	N/A	N/A	R 32 719	N/A	N/A	Procurement Tenders
Marine Living Resources Fund	82	N/A	N/A	R 774 000	N/A	N/A	Vacancies Advertisements

Tabulated below are the costs in respect of total number of advertisements for the 2009/2010 Financial Year:

Name of Entity	(a)( i) Total Print Media Advertisements	(a)(ii)(aa) Total Broadcast Radio	(a)( ii) (bb) Total Broadcast Television	(b)(i) Cost of advertise- ment Print Media	(b)(aa) Cost of Advertisement Radio	(b)(bb) Cost of advertise- ment TV	(c) Purpose
DEAT	289	N/A	2	R 1 630 101.11	N/A	R 296 828	The advertisements were for marketing, recruitment and tenders
South African National Biodiversity Institute	8	N/A	N/A	R 70 528	N/A	N/A	Various adverts in different media
South African National Parks	21	39	N/A	R 350 331	R 150 200	N/A	Magazine & Press 45 second spots on radio
South African Weather Service	25	N/A	N/A	R 324 058	N/A	N/A	Other Advertise- ments Vacancies Advertised
iSimangaliso Wetland Park Authority	8 Tenders	N/A	N/A	R 57 228	N/A	N/A	Procurement Tenders
Marine Living Resources Fund	56	30	N/A	R 364 809	R 138 109.72	N/A	The advertisements were for filling of vacancies and for events during 2009 National Marine Month

NATIONAL ASSEMBLY

(For written reply)

QUESTION NO. 1994

INTERNAL QUESTION PAPER NO 26

DATE OF PUBLICATION: 2 November 2009

Ms M R Shinn (DA) to ask the Minister of Tourism:

(1) What total amount in respect of advertising has his department and all specified entities reporting to it (a) budgeted for and (b) spent (i) in the 2008-09 financial year and (ii) during the period 1 April 2009 up to the latest specified date for which information is available;

(2) (a) what total number of advertisements for his department and each entity reporting to it (i) appeared in the print media and (ii) were broadcast on (aa) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement? NW2646E

1994. THE MINISTER OF TOURISM ANSWERS:

DEPARTMENT:

1) (a) R534 000.00

(b) (i) not applicable – New Department

(ii) R 154 795.65 as at 12 November 2009

(2) (a) (i) Three adverts

(ii) None

(b) R 29 884.81, R 119 790.09 and R 5 120.75

(c) Two of them were to invite applications for vacant posts in the department and one was to invite proposals for research.

PUBLIC ENTITY: SOUTH AFRICAN TOURISM

(a) R 1 316 122

(b) (i) R194 449.19

(ii) 356 105.90 as at 31 October 2009.

(SA Tourism is a marketing organisation. As per the audited 2008/09 financial statements approximately 75% of total expenses incurred were spent on marketing activities. The information provided below is from an operational perspective)

	2008/2009	2009/2010
(a) (i)	11	7
(a (ii)	None	None
(b) & (c)	See table here	See table here

NATIONAL ASSEMBLY

QUESTIION FOR WRITTEN REPLY

QUESTION NUMBER: 1993

DATE FOR PUBLICATION: 2 NOVEMBER 2009

DATE REPLY SUBMITTED: 30 NOVEMBER 2009

MR M J ELLIS (DA) TO ASK THE MINISTER IN THE PRESIDENCY: PERFORMANCE MONITORING AND EVALUATION AND ADMINISTRATION IN THE PRESIDENCY:

(1) What total amount in respect of advertising has the Presidency and all specified entities reporting to it (a) budgeted for and (b) spent (i) in the 2008-09 financial year and (ii) during the period 1 April 2009 up to the latest specified date for which information is available;

(2) (b) what total number of advertisements for the Presidency and each entity reporting to it (i) appeared in the print media and (ii) were broadcast on (aa) radio and (bb) television, (b) how much did each advertisement cost and (c) what was the purpose of each advertisement?

NW2645E

REPLY:

INTERNATIONAL MARKETING COUNCIL (IMC) International:

	Spots	SA Rand Billed incl. 14% VAT	Messages
USA
CNN (US)	12	R 686 170.93	Investigate It, Invest in It
Bloomberg USA Feed	45	R 371 773.67
Bloomberg Digital Feed	134	R 528 540.65
www.wsj.com Eyeblaster serving at no cost for trial	160 x 600, 300 x 250 & Pre-roll video Impressions 1,063,361	R 474 611.16	Use of BMW advert - promotion of South African innovation and manufacturing sector
Atlantic.com (Andrew Sullivan blog) including Eyeblaster serving costs	Video MPU 300 x 250 Impressions 1,036,600	R 532 909.48
UK/Europe
London Cabs (Production)	100	R 954 910.96	Messages related to tourism and investments i.e 3 of top 20 hotels,
CNNI EMEA (Europe)	156	R 1 505 852.20
Bloomberg European Feed	200	R 1 245 840.53	Investigate It, Invest in It
CNN Online	Video MPU 300 x 250 Impressions 1,350,000	R 553 081.14	Promotion of South Africa infrastructure and innovation
CNN Online	Video MPU 300 x 250 Impressions 1,350,000	R 553 081.14
CNBC Online	Video MPU 300 x 250 Impressions 300,000	R -
www.skynews.com	Video MPU 300 x 250 Impressions 2,142,858	R 760 950.00
India
CNN IBN Channel 18	458	R 2 018 205.31	Investigate It, Invest in It
CNBC TV18	425	R 2 300 775.61	Promotion of South Africa infrastructures and innovation
Indian Service Tax on Media	n/a	R 467 597.90
www.IBNLive.com	Video MPU 300 x 250 Impressions 2,000,000	Added value	Surprising elements about South Africa. Advanced financial services
www.moneycontrol.com	Video MPU 300 x 250 Impressions 2,000,000	Added value
www.timesofindia.com	Video MPU 300 x 250 Impressions 10,850,000	R 1 632 452.28
www.economictimes.com	Video MPU 300 x 250 Impressions 10,850,000	R 1 632 452.28
The Financial Express - SA Report	1	R 234 252.25
The Economic Times - SA Report	1	R 373 779.86
Mainland China & Hong Kong
TVB Pearl	180	R 1 504 535.12
Beijing BTV5	10	R 477 654.56
Shanghai CBN	56	R 1 158 478.67
Scmp.com	Video MPU 300 x 250 Impressions 173,000	R 82 459.71	Investigate It, Invest in It
Capital-HK.com	Video MPU 300 x 250 Impressions 21,100	R 41 122.61	Promotion of South Africa infrastructure and innovation
www.sina.com.cn	Video MPU 300 x 250 Impressions 73,000,000	R 1 166 512.77
Smart Media	Video MPU 300 x 250 Impressions 12,730,000	R 836 975.41	Surprising elements about South Africa. Advanced financial services
Time Magazine WEF Feature	1	R 459 852.10
Adhoc/Contingency
The Economic Observer	1	R 248 375.30	Investigate It, Invest in It
Financial Times SA Report	1	R 459 852.10	Promotion of South Africa infrastructure and innovation
CNBC Magazine African/SA Report	1	R 91 927.90
Time (Davos Package)	4	R 3 265 796.66
Davos Outdoor (Airports)	7 x Digital boards Zurich Airport	R 377 932.05	Showcasing of 2010 as a catalyst for economic growth
Davos Outdoor (Airports)	15 Digital Screens Zurich Airport	R 111 453.26	* Infrastructure
Davos Outdoor (Train stations)	2x F12 Posters Zurich Train Station 2 x F200 Posters Zurich Trian Station 21 x F4 Posters Davos	R 113 673.16	Showcase of sectors
London Cabs for Davos	4 cabs	R 239 626.40	wine industry
Eyeblaster Serving costs (Online)		R 1 780 689.96
Total Investment		R 28 691 073.94

INTERNATIONAL MARKETING COUNCIL (IMC) Domestic:

Medium	Duration	No Spots			Total Value		IMC Payable	Messages


Television
Domestic Television (27-30 Apr - 10-22 May)								Freedom Day Campaign - 27-30 Apr
SABC 1 (50% discount)	60"	10			R 620 000		R 310 000	* Flighting 'We've done it before' in
SABC 2 (50% discount)	60"	9			R 361 000		R 180 500	line with Freedom Day
SABC 3 (50% discount)	60"	9			R 646 000		R 323 000	10 -22 May - launch of the 'It starts with you Campaign - Asking South Africans to chare the kind of SA they want to live in
Etv (50% discount)	60"	17			R 930 000		R 465 000
M-Net (50% AV off peak)	60"	11			R 355 000		R 268 000
Domestic Television (12-30 June)
SABC 1 (50% discount)	20"	31			R 887 600		R 443 800
SABC 2 (50% discount)	20"	34			R 862 400		R 431 200	Feedback of the responses collated from public - key responses and themes i.e Safety and Security, Education, Health, Unemployment
SABC 3 (50% discount)	20"	26			R 606 800		R 303 400
Etv (50% discount)	20"	24			R 479 200		R 239 600
M-Net (50% AV off peak)	20"	30			R 455 700		R 227 850
Domestic Television Phase 2 (1-26 October)
SABC 1 (50% discount)	60" x 3 Avs	22			R 1 652 000		R 826 000
SABC 2 (50% discount)	60" x 3 Avs	21			R 1 416 000		R 708 000
SABC 3 (50% discount)	60" x 3 Avs	18			R 1 161 000		R 580 500	Response to public and proof points in partnership with education, police as well as health departments
Etv (50% discount)	60" x 3 Avs	17			R 744 000		R 372 000
M-Net (50% AV off peak)	60" x 3 Avs	34			R 1 309 000		R 766 000
Domestic Television Phase 2 (1-12 November)
SABC 1 (50% discount)	60" x 3 Avs	7			R 244 000		R 121 500
SABC 2 (50% discount)	60" x 3 Avs	14			R 512 000		R 256 000
SABC 3 (50% discount)	60" x 3 Avs	8			R 553 000		R 276 500	Continuation of response to public and proof points in partnership with education, police as well as health departments
Etv (50% discount)	60" x 3 Avs	6			R 288 000		R 144 000
M-Net (100% AV for every program bought in peak time)	60" x 3 Avs	12			R 413 000		R 149 000
DSTV (100% AV for every program bought in peak time)	60" x 3 Avs	8			R 110 000		R 0
Domestic Television Phase 3 (22 Dec - 4 Jan)
SABC 1 (50% discount)	90" Start Small	14			R 967 500		R 483 750
SABC 2 (50% discount)	90" Start Small	13			R 586 500		R 293 250
SABC 3 (50% discount)	90" Start Small	14			R 568 500		R 284 250	It starts with you phase 3: Proof points and ideas on what each and every person can do in their own can do to make SA a better place
Etv (50% discount)	90" Start Small	14			R 969 000		R 484 500
M-Net (100% AV for every program bought in peak time)	90" Start Small	12			R 807 000		R 442 500	* Crime line
Domestic Television Phase 3 (12 - 25 Jan 2009)								* Donation of books to hospitals
SABC 1 (50% discount)	60" & 5 x 20"	29			R 487 800		R 243 900	* Turn off dripping taps
SABC 2 (50% discount)	60" & 5 x 20"	40			R 741 400		R 370 700
SABC 3 (50% discount)	60" & 5 x 20"	29			R 422 600		R 211 300
Etv (50% discount)	60" & 5 x 20"	24			R 554 000		R 277 000
M-Net (100% AV for every program bought in peak time)	60" & 5 x 20"	21			R 414 100		R 414 100
Total Domestic Television (incl vat)			578		R 24 081 474		R 12 422 694

Radio
Domestic Radio (12-30 June)
702 Talk Radio	15" & 30" Live Reads			163		R 337 170	R 337 170	Continuation of response to public and proof points in partnership with education, police as well as health departments
Capetalk	15" & 30" Live Reads			159		R 171 370	R 171 370
Ikwekwezi FM	15", 45" Live Reads & Interviews			66		R 102 408	R 51 204
Lesedi FM	15", 45" Live Reads & Interviews			123		R 631 620	R 315 810
Ligwalagwala FM	15", 45" Live Reads & Interviews			72		R 140 298	R 70 149
Motsweding FM	15", 45" Live Reads & Interviews			77		R 312 960	R 156 480
Munghana Lonene FM	15", 45" Live Reads & Interviews			65		R 135 720	R 67 860
Phalaphala FM	15", 45" Live Reads & Interviews			74		R 96 710	R 48 355
SAFM	15", 45" Live Reads & Interviews			110		R 133 998	R 66 999
Thobela FM	15", 45" Live Reads & Interviews			78		R 313 084	R 156 542
Tru FM/CKI	15", 45" Live Reads & Interviews			67		R 48 924	R 24 462
Ukhozi FM	15", 45" Live Reads & Interviews			117		R 950 300	R 475 150
Umhlobo Wenene FM	15", 45" Live Reads & Interviews			115		R 623 944	R 311 972
Domestic Radio Phase 2 PR (6-12 October)
702 Talk Radio	90" Live Reads			20		R 137 723	R 137 723	Continuation of response to public and proof points in partnership with education, police as well as health departments
Capetalk	90" Live Reads			20		R 71 338	R 71 338
Ikwekwezi FM	90" Live Reads			18		R 56 880	R 28 440
Lesedi FM	90" Live Reads			17		R 255 060	R 127 530
Ligwalagwala FM	90" Live Reads			18		R 73 440	R 36 720
Motsweding FM	90" Live Reads			18		R 157 500	R 78 750
Munghana Lonene FM	90" Live Reads			18		R 74 700	R 37 350
Phalaphala FM	90" Live Reads			18		R 52 680	R 26 340
SAFM	90" Live Reads			16		R 99 360	R 49 680
Thobela FM	90" Live Reads			18		R 161 880	R 80 940
Ukhozi FM	90" Live Reads			18		R 403 140	R 201 570
Umhlobo Wenene FM	90" Live Reads			18		R 261 000	R 130 500
Total Domestic Radio (incl vat)				1503		R 6 615 656	R 3 716 861

THE NATIONAL YOUTH DEVELOPMENT AGENCY

(1) (a)

(i) The National Youth Development Agency was formally launched in 2009 from the merger between the National Youth

Commission and Umsobomvu Youth Fund. Therefore there was no budget for the NYDA in the 2008-09 financial years.

The National Youth Commission (NYC) budgeted R400 000-00 for advertising in the 2008-09 financial year.

(ii) There was no budget for the NYDA in the 1 April to October 2009. The National Youth Commission (NYC)

budgeted R1 million for advertising in the 2009/2010 financial year.

(1) (b)

(i) There was no money spent by the NYDA in the 2008-09 financial year. The NYC spent R R186 687-31 on advertising during

the 2008-09 financial year.

(ii) There was no money spent by the NYC on advertising from 1 April to 5 November 2009. The NYDA spent R636 403-36

on advertising during the period 1 April to 5 November 2009. The NYDA adverts were paid for by Umsobomvu Youth Fund out of its 2009-10 allocation.

(2) (a)

(i) There were no print adverts for the NYDA in the 2008-9 financial year. There were two (2) NYC print adverts for the NYC

in the same period.

There were 19 print adverts for the NYDA from 1 April to 5 November 2009 while the NYC did not place any print adverts.

(ii) (aa) The NYC and NYDA did not place any radio adverts in the 2008-9 financial year.

The NYC and NYDA did not place any radio adverts during the period 1 April to 5 November 2009.

(bb) The NYC and NYDA did not place any television adverts in the 2008-9 financial year.

The NYC and NYDA did not place any television adverts during the period 1 April to 5 November 2009.

(2)(b)

Please see tables below for explanation on cost of each advertisement.

(2)(c)

Please see tables below for explanation on purpose of each advertisement?

2008-09 Financial Year

Advertising costs for the NYC

2B & 2C ADVERTISING COSTS AND PURPOSE FOR ADVERTISING
(2C) PURPOSE FOR ADVERTISING	(2B) TOTAL SPENT IN RANDS
Recruitment for four (4) vacant position	72 037 - 55
To encourage youth to go and register for election.	114 649 - 76
TOTAL	(2B) 186 687 - 31

Period 1 April up to 5 November 2009

Advertising costs for the NYDA

ADVERTISING COSTS AND PURPOSE FOR ADVERTISING
(2C) PURPOSE FOR ADVERTISING	PUBLICATIONS USED	COST PER PUBLICATION IN RANDS	(2B) TOTAL SPENT IN RANDS
Call for logo designs from youth	1. Beeld	20 039 - 70	225 540 - 66
	2. City Press	28 476 - 00
	3. City Press	48 454 - 56
	4. Daily Sun	21 067 - 20
	5. Rapport	47 964 - 00
	6. Sunday World	14 028 - 00
	7. Sunday Sun	28 812 - 00
Call for Tips for the NYDA Chairperson	8. City Press	35 595 - 00	176 107 - 23
	9. Rapport	59 955 - 00
	10. Sunday World	17 535 - 00
	11. Sunday Sun	18 375 - 00
	12. Sunday Independent	23 020 - 00
Launch of NYDA invitation to youth	13. Sunday World		139 741 - 20
	14. Sunday Sun
	15. Sowetan
Call for applications: Audit Committee	16. Rapport	36 720 - 37	79 213 - 87
	17. Business Day	15 800 - 40
	18. Sowetan	26 693 - 10
Call for applications: Chief Executive Officer position	19. Business Day	15 800 - 40	15 800 - 40
TOTAL			(2B) 636 403 - 36

Question 1992

Mr S J F Marais (DA) to ask the Minister of Trade and Industry:

REPLY:

Advertisements for the department:

2008/09 Financial Year

(1)(a)(i) Budget: R20 808 000

(1)(b)(i) Expenditure: R19 075 855

(2)(a)(i) Total number of advertisements: 582

(2)(a)(ii)(aa) Radio: 11

(2)(a)(ii)(bb) Television: 3

(2)(b)The cost of each advertisement varies substantially, however the cost breakdown per media utilised is as follows:

Radio: R 1 219 754

Television: R 4 086 644

Print Media: R13 769 457

(2)(c) The advertisements relate to staff recruitment, campaigns relating to departmental activities, public invitations to attend specific workshops, dissemination of general information and public awareness of the dti and its products.

Advertisements for the department:

1 April 2009 to 30 September 2009

(1)(a)(i) Budget: R17 268 000

(1)(b)(i) Expenditure: R 5 254 423

(2)(a)(i) Total number of advertisements: 138

(2)(a)(ii)(aa) Radio: None

(2)(a)(ii)(bb) Television: 3

(2)(b) The cost of each advertisement varies substantially, however the cost breakdown per media utilised is as follows:

Radio: None

Television R 5 060 196

Print Media R13 769 457

(2)(c)The advertisements relate to staff recruitment, campaigns relating to departmental activities, public invitations to attend specific workshops, dissemination of general information and public awareness of the dti and its products.

Advertisements for entities reporting to the department:

The information with respect to the entities reporting to the department is still being compiled and will be submitted in due course.

FOR WRITTEN REPLY

QUESTION NO 1990

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 02 NOVEMBER 2009

(INTERNAL QUESTION PAPER NO 26)

1990. Mrs A T Lovemore (DA) to ask the Minister of Water and Environmental Affairs:

---00O00---

REPLY:

(1)(a) My Department had an advertising budget of R10, 000,000.00 for the 2008/09 financial year.

(1)(b)(i) The actual advertising spend for My Department during 2008/09 was R6, 110, 612.29.

(1)(b)(ii) The actual advertising spend My Department from 1 April 2009 to date is R7, 982,023.45.

-2-

Table 1 (Advertising in Newspapers for the period 2008)

ADVERTISMENT ITEM	COST
National Water Week	R 829,846.97
Sanitation Week	R 175,769.67
Arbor Week	R 82,198.56
TOTAL	R 1,087,815.20

Table 2 (Advertising in Newspaper for the period 2009)

ADVERTISMENT ITEM	COST
Weedbuster Week	R 725,321.80
Youth Summit	R217,864.15
Arbor Week	R 384,606.80
Waste Discharge	R120,400.00
TOTAL	R 1,448,192.75

Table 3 (Advertising in electronic media for the period 2008)

ELECTRONIC MEDIA	NATIONAL WATER WEEK	ARBOR WEEK
Radio Advertising	R 1,200, 00.00	r 1,210,552.29
TV	R 1,000,344.00	R 540,202.00

Table 2(Advertising in electronic media for the period 2009)

ELECTRONIC MEDIA	weedbuster week	ARBOR WEEK	YOUTH SUMMIT	WAST E DISCHARGE	NATIONAL WATER WEEK
Radio Advertising	r74,818.42	r443,488.50	R 496,706.05	R 247,950.00	R 1,486,238.01
TV		r660,000.00		R 1,291,344,36	r 1,291,344.36

NATIONAL ASSEMBLY

FOR WRITTEN REPLY

QUESTION NO 1988

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 2 NOVEMBER 2009

(INTERNAL QUESTION PAPER NO 26 - 2009)

Date reply submitted : 15 December 2009

Mr P J Groenewald(FF Plus) to ask the Minister of Police:

(1) What is the total amount in legal fees that the State has paid for a certain person (name furnished) (a) up to and (b) since the expiry of his contract of service;

(2) whether he will make a statement on the matter?

NW2615E

REPLY:

a) What was the final cost of the Department's new accommodation:

b) Whether any Government officials have declared an interest in the companies that provided services to build and refurbishment the offices:

c) Whether any investigation has revealed evidence of any government official having an undisclosed interest in any of these companies or having been paid any sum of money in relation to the building and furbishment of the office, and

d) If yes, to any of the above, what steps have been taken in this regard, and if none, why not?

REPLY

a) The total cost of the building amounts to R1.4 billion

b) No official from the Department of International Relations and Cooperation declared any interest in the companies that provided the services.

c) The Department conducted its own investigation which has not revealed any undisclosed interest by any official in any of these companies.

d) Not applicable.

NATIONAL ASSEMBLY

FOR WRITTEN REPLY

QUESTION NO 1987

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 2 NOVEMBER 2009

(INTERNAL QUESTION PAPER NO 26 - 2009)

Date reply submitted : 15 December 2009

Mr P J Groenewald(FF Plus) to ask the Minister of Police:

(1) How many crimes were committed (a) in (i) 2007 and (ii) 2008 and (b) during the period 1 January 2009 up to the latest specified date for which information is available (aa) by owners of licensed firearms, (bb) with stolen licensed firearms and (cc) with illegal firearms;

(2) whether he will make a statement on the matter?

NW2614E

REPLY:

(1) (a) The Authority is enjoined by the ICASA Amendment Act, the Electronic Communications Act and the Broadcasting Act to monitor compliance by SABC with its licence terms and conditions, regulations and applicable legislation. In order to ensure efficient and effective monitoring, ICASA requires the following:

Broadcast Monitoring Equipment or infrastructure that will enable it to record and keep, on a daily basis, broadcasting content (including South African Content quotas) of each licensee throughout the country. In so doing the Authority will rely less on the recording submitted by the licensee, which are at times faulty. Secondly, there is a need to capacitate the Authority's Compliance Department to enable it to deal with the increasing number of licensees and regulations that must be closely monitored.
· With respect to Human Resources capacity, the Authority is currently reviewing its structure to ensure that it operates effectively and efficiently. However, from a short-term point of view, the Authority will implement an internship programme to deal with lack of capacity.

(b) The Authority has budgeted R19 million for the acquisition of the Broadcast Monitoring Equipment or infrastructure. The Interns will be given a stipend, as per ICASA policy.

(2) ICASA will use its internal staff to monitor compliance by all its licensees but will be assisted by interns.

(3) The Authority intends to procure the Broadcast Monitoring equipment during the 2009/10 financial year. Compliance reports are produced on an annual basis.

QUESTION NUMBER 1980

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 30 OCTOBER 2009

(INTERNAL QUESTION PAPER NUMBER 26)

Mr M Waters (DA to ask the Minister of Mineral Resources:

(1) Whether, with reference to a reply to Question 588 on 26 May 2008, any inspectors have visited the Witfontein R/33/151R mining site; if not, (a) why not and (b) when will this be done; if so, (i) when, (ii) who were the inspectors and (iii) what were their findings;

(2) whether any inspection has been conducted to determine whether regulation 17(6) of the Mine Health and Safety Act, Act 29 of 1996, is being adhered to; if not, (a) why not and (b) when will this be done; if so, when;

(3) whether there are any laws or regulations that stipulate the number of inspections that should be carried out by her department at mining sites per year; if not, what is the position in this regard; if so, what are the relevant details;

(4) whether such obligations have been met with regard to the abovementioned mining site; if not, why not; if so, what are the relevant details? NW2463E

REPLY

(1) Yes, Inspections were conducted on 20th and 31st October 2008 by Senior Inspector FJ Nkuna of the Gauteng Region Office as well as on 18th November 2008 by Senior Inspector F Barradas and Inspector J Kearney of the Directorate: Mine Surveying, Head Office, Pretoria.

During these inspections it was found that regulation 17(6) was not applicable as the mine was established in 1983 whilst the township, according to the deeds office, was only proclaimed in 2003. There was also no evidence found that the developer of the township of Glen Erasmia Extensions 4 & 5, which has been established within a horizontal distance of 100 metres from the boundary of the quarry, had submitted an application for comment to my Department, nor had the developer complied with Regulations 17(7)(b) or 17(8)(b) of the Mine Health and Safety Act, Act 29 of 1996, which stipulate that no structures may be erected within a horizontal distance of 100 metres from a mine without prior submission of a risk assessment to, and approval from, the Chief Inspector of Mines.

(2) Yes, the aforementioned inspections were carried out, inter-alia, to investigate compliance of regulation 17(6) as well as compliance with regulations 17(7)(b) and 17(8)(b).

(3) No, there are no laws or regulations that stipulate the number of inspections to be carried out per year. The Annual Business Plan of the Mine Safety Inspectorate, however, determines the risk value of underground and surface mining operations, which in turn, determines the frequency of visits to individual mining sites.

(4) Yes, the obligations were met on 31^st October and 14^th November 2008 which were routine inspections. All relevant details regarding the legal standing between the mine and the adjacent township have been addressed in my reply of question 1 above.

QUESTION NO.: 1976

DATE OF PUBLICATION: 23 October 2009

1976. Mr L W Greyling (ID) to ask the Minister of Public Enterprises:

Whether there were any costs payable to a certain company (name furnished) as a result of the Alcan aluminium smelter contract being terminated; if not, what is the position in this regard; if so, what amount was payable according to the stipulations of the contract? NW2546E

REPLY

In terms of the Electricity Supply Agreement between Eskom and the company referred to, Eskom is obliged to pay the connection fee less costs incurred by Eskom.

No penalties are payable by either party in terms of the contract termination.

The amounts in question have not yet been finalised.

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.:1985

DATE OF PUBLICATION: 30 October 2009

1985. Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:†

(1)Whether all of Eskom's transformers are actively operational and delivering at full capacity; if not, (a) how many (i) are and (ii) are not delivering at full capacity and (b) why not;

(2)(a) what effect do transformers that are not delivering at full capacity have on the total electricity output and (b) what would be the total electricity output if all transformers were delivering at full capacity;

(3)whether she will make a statement on the matter? NW2609E

REPLY

(1)(a)(i-ii)(b): All of Eskom's installed transformers are operational given that it runs an interconnected grid. Transformers that are kept as spares are not operational until installed. The level of utilisation of each transformer can vary from minute to minute as it is dependent upon the level of electricity demand in the area that it supplies. It is not desirable that a transformer is run at its maximum rating for extended periods of time as that would have a detrimental effect on its lifespan and would also not allow for growth in electricity demand. Planning is therefore done to ensure that transformer and network upgrades are undertaken timeously to ensure that overloading does not occur.

(2)(a-b) The total electricity output of the national electricity grid is not purely dependent on the load carrying capacity of transformers installed; it is a function of the generation capacity (Power Stations) that is available as well as the network capacity (includes power lines and transformers) to carry the power generated

(3) No, the Minister will not make a statement on the matter.

QUESTION NO.:1983

DATE OF PUBLICATION: 30 October 2009

1983. Mr L Ramatlakane (Cope) to ask the Minister of Public Enterprises:

(1)Whether Transnet's payment to a certain consortium (name furnished) was made in terms of a valid contract; if not, what is the position in this regard; if so, what are the relevant details;

(2)whether Transnet's attorneys and senior counsel advised them to make the financial settlement as the only possible course of action; if not, (a) what course of action did they recommend and (b) what is the position in this regard; if so,

(3)whether the Transnet Board resolved at a legally constituted meeting that the matter should be concluded with payment; if so, (a) on what basis did the board make such a decision, (b) why was the payment decided on after two years had elapsed, (c) why was the decision made after the former chief executive officer had left and (d) how did she resolve the matter;

(4)whether she approved the payout; if not, what is the position in this regard; if so, (a) why was the amount paid as a settlement and (b) what amount was in the budget;

(5)whether she will provide a copy of the signed agreement between the parties; if not, why not; if so, what are the relevant details of the contract? NW2553E

REPLY

(1) Transnet Limited's ("Transnet") settlement payment to the referred to company in full and final settlement of the legal dispute between Transnet and the company was made in terms of a settlement agreement between the two parties. The terms of such settlement agreement are confidential. The settlement arose from litigation regarding the disposal of the shares held by the Transnet Second Defined Benefit Fund ("TSDBF") and in this regard a contract was not executed. The sale of those shares for about R5.3 billion contributed to the turning around of the TSDBF's billions of Rand's deficit position to the current billions of Rand's surplus position.

(2) (a-b) I am advised by Transnet that no guarantee could be given that, distinct from other litigation matters which Transnet has been previously a party to, its litigation with the referred to company would be free from any risk. In the circumstances, the officers of Transnet charged with the power to decide whether or not to settle such matters considered it prudent to mitigate any legal, commercial and reputational risk that could potentially actualise by settling the matter through the payment of an agreed settlement amount.

(3) The decision to enter into a settlement agreement with the company was made on behalf of Transnet by the Acting Group Chief Executive of Transnet and with the concurrence of the Group Executive: Office of the Group Chief Executive of Transnet, in accordance with the authority delegated to the Group Chief Executive of Transnet in terms of the Board of Directors' Written Resolution 2004/P4: Amended Delegation of Authority read with the Transnet Limited Delegation of Authority Framework. Accordingly, the Board of Directors' approval for such a settlement was not a requirement and was therefore neither sought nor obtained.

(a) I am advised by Transnet that the authorised functionaries considered that, if for any reason the matter was decided by the Court in a manner that was adverse to the interests of Transnet or Transnet suffered severe commercial and/or reputational harm arising from such litigation, it would be difficult to explain why Transnet spurned the opportunity that had since presented itself to mitigate such risks by settling at a figure it considered reasonable, affordable and a mere fraction of the claim brought against Transnet. Given that the sale of the shares significantly contributed to the turning around of the TSDBF's deficit position to the current surplus position, it was considered prudent and advisable that, to the extent possible, the risk of a sustained attack of the transaction that resulted in such benefit be effectively eliminated.

(b) The opportunity to negotiate a settlement of the dispute between Transnet and the company availed itself in pre-trail consultations from about July 2009.

(c) As indicated in paragraph (3)(b) above, the opportunity to negotiate a settlement presented itself months after the former Group Chief Executive of Transnet had terminated her employment with Transnet.

(d) As the matter could only be resolved by either the Court making a determination on the claim, or the company withdrawing or abandoning its claim, or the matter being settled out of Court (as has now happened), the matter remained unresolved at the time of the departure of the former Group Chief Executive.

(4) The significance and materiality framework in terms of the Public Finance Management Act, Act of 19 does not require shareholder to approval for settlements of the amount involved. My approval was neither sought nor obtained.

(4)(a- b) As the opportunity to settle had not been foreseen by Transnet and the disclosure of a budgetary figure for a potential settlement would, I am advised by Transnet, have inappropriately exposed the hand of Transnet and potentially weakened the negotiating position of Transnet, the amount for the settlement was not budgeted for. As matters happen, however, Transnet could with ease afford to pay the settlement amount from its cash resources without, in any way, adversely impacting on the financial position and performance of the Company.

(5) As indicated in paragraph (1) above, the settlement agreement is the confidential property of Transnet and the referred to company and therefore the signed agreement and its contents are restricted from public disclosure. Transnet has previously sought the public disclosure of its content and been advised by the company's lawyers that the company is not prepared to waive such confidentiality.

2009-11-25

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