Questions & Replies: Questions & Replies No 1251 to 1275

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2010-05-03

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QUESTION NO: 1251

Mr AT Fritz (DA) to ask the Minister of Correctional Services:

Whether any process is in place to replace the contract social workers who were dismissed at the end of March 2010; if not, why not; if so, (a) what process and (b) what are timelines in this regard?

NW1410E

REPLY

Yes. The department is in process of replacing contract social workers whose contract expired at the end of March 2010.

(a) A process is underway to align the structure and establishment and this process will determine social work posts.

(b) In the interim social workers terminated at the end of March 2010 have been re-employed for a further period until the end of June 2010

QUESTION NO 1252

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 16 APRIL 2010

(INTERNAL QUESTION PAPER NO. 11)

1252 Mrs A T Lovemore (DA) to ask the Minister of Water and Environmental Affairs:

(1) (a) What criteria are taken into account when a water licence is issued and (b) what source(s) of information is/are utilised to assess the effect of water use on a water resource when an application for a water user licence is being processed;

(2) whether her department is able to issue water use licences without any ensuing negative impact on a water resource; if not, why not; if so, what are the relevant details? NW1411E

---00O00---

REPLY:

(1)(a) The factors prescribed in Section 27 of the National Water Act, Act 36 of 1998, are taken into account in the assessment of water use licence applications.

Factors relating to the effect of water uses on the water resource include the class and the resource quality objectives of the water resource and the quality of water in the water resource that may be required for the Reserve and for meeting international obligations.

The factors considered also include existing lawful uses, the redress of past discrimination, efficient and beneficial use of water in the public interest, the socio-economic impact of the water use or the failure to authorise the water use, any catchment strategy and the strategic importance of the water use.

Licences are issued in consultation with other Departments or with their cooperation and their records of decisions are considered.

(1)(b) The information that my Department uses in licence application assessment depends on the water use and on the potential impacts.

My Department uses information obtained from licence application forms, Reserve determination studies, the National Water Resource Strategy, Internal Strategic Perspective documents, groundwater harvest potential maps, environmental authorisation reports, environmental management plans, Integrated Water and Waste Management Plans, Best Practice Guidelines for Water Resource Protection in the South African Mining Industry, specialist studies on the baseline environmental state and on expected impacts, hydrological and geohydrological studies on water availability and impacts, registered water use, designs of water engineering works and inputs by interested and affected persons.

(2) My Department is not able to issue water use licences without any negative impact on the water resource as every water use necessarily has some impact on the resource, either from a reduction of flow, changing groundwater levels, increased concentrations of pollutants or disturbance of the watercourse ecology.

However, my Department only issues water use licences with conditions that limit the impacts to acceptable levels.

These levels are determined by resource directed measures and the needs of other lawful water users. Resource directed measures (the Reserve, classification of water resources and resource quality standards) provide the means to determine and maintain the water quality and quantity required to protect aquatic and associated ecosystems and their biological diversity in rivers, wetlands, estuaries and groundwater, in order to secure ecologically sustainable development and use of the water resource.

QUESTION NO: 1253

PUBLISHED IN INTERNAL QUESTION PAPER NO 11 OF 26 April 2010

Mr WP Doman (DA) to ask the Minister for Cooperative Governance and Traditional Affairs:

(1) Who has been appointed as administrators at each municipality currently under administration;

(2) Who appointed each of these administrators;

(3)(a) what position did each administrator occupy prior to be appointed as administrator and

(b) Where was this position occupied;

(4) What are the qualifications of each administrator?

Reply

Please find attached reply

QUESTION NO: 1254

PUBLISHED IN INTERNAL QUESTION PAPER NO 11 OF 26 April 2010

Mr E Marais (DA) to ask the Minister for Cooperative Governance and Traditional Affairs:

Whether the Minister is aware that the Eden District Municipality has written off R90 000 of the Mayor's debt, after a court decision that the Mayor should pay the amount plus cost, personally; if not, (a) Whether he will investigate the case and (b) provide feedback; if not, why not; if so, what are the details; if so, (a) why was this allowed, (b) whether municipalities are allowed to do this; if not, why not; if so, what are the details?

Reply

The matter has not been brought to my attention and thus cannot comment. However, the details if in possession by the member, will assist in mapping the appropriate intervention.

QUESTION 1255

DATE OF PUBLICATION: MONDAY 26 APRIL 2010 [IQP No 11- 2010] SECOND SESSION, FOURTH PARLIAMENT

Question 1255 for Written Reply, National Assembly: Dr L L Bosman (DA) to ask the Minister for Agriculture, Forestry and Fisheries:

Whether Marine and Coastal Management has purchased any (a) World Cup-related merchandise and (b) World Cup match tickets for its staff; if not, how was this conclusion reached; if so, (i) what is the nature of the purchases, (ii) what was the allocation of the purchased goods to staff and (iii)(aa) what was the total amount spent on World Cup-related products and (bb) how is this figure made up? NW1414E

REPLY:

(a) The Department of Environmental Affairs and Tourism (DEAT) bought some World Cup related merchandise for the branch Marine and Coastal Management before it was transferred to the Department of Agriculture, Forestry and Fisheries. The items procured are as follows:

(i) Adidas Bafana Bafana 2010/2009 World Cup Replica jerseys.

(ii) The jerseys were purchased for staff from level 3 to level 7.

(iii) (aa) An amount of R 144 318 was spent by the Branch Marine and Coastal Management.

(bb) 402 jerseys were procured.

(b) No world cup tickets were bought for staff.

QUESTION NO. 1256 INTERNAL QUESTION PAPER NO. 11 NW1415E

DATE OF PUBLICATION: 26 April 2010

Mrs S V Kalyan (DA) to ask the Minister of Water and Environmental Affairs:

(1) Whether the department is still considering the creation of a Pondoland Protected Area in the Eastern Cape; if not, what are the relevant details; if so, what type of protected area will it be;

(2) whether the affected community has been consulted; if so, what are the relevant details; if not, why not;

(3) when (a) is work expected to commence and (b) is it expected to be completed;

(4) whether it is envisaged that the protected area will co-exist with mining areas; if not, how will this be rectified; if so, what are the relevant details?

Mrs S V Kalyan (DA) SECRETARY TO PARLIAMENT

HANSARD

PAPERS OFFICE

PRESS

1256. THE MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS ANSWERS:

(1) No. It has been decided between the previous Minister of Environmental Affairs and Tourism and the MEC of the Province, that the province would pursue the establishment of a protected area in Pondoland.

(2) Yes. An agreement has previously been reached with the local communities.

(3) The response needs to be provided by the Eastern Cape Province.

(4) The response needs to be provided by the Eastern Cape Province

QUESTION NUMBER 1257

DATE OF PUBLICATION: 26 APRIL 2010

Mrs S V Kalyan (DA) to ask the Minister of Finance:

Whether, with reference to the reply to question number 742 on 23 March 2010, the SA Weather Service has sought permission from the National Treasury to share revenue generated from its website with the private organisation that developed the website, if not, why not; if so, what are the relevant details?

NW1416E

REPLY

No. The South African Weather Service (SAWS) entered into an agreement with Beco Future Foresight (Pty) Ltd (Beco) in May 2008, in terms of which Beco undertook to redesign and develop the SAWS website. SAWS undertook to provide Beco with services enabling Beco to render weather information to clients on a commercial basis. This was on the understanding that SAWS should share in the revenue attributable to these services for a period of 36 months. SAWS earned R896 000 for the 2009/2010 financial year in terms of this agreement. SAWS management is of the view that this agreement, which accounts for less than one percent of its annual revenue, does not constitute a reportable "significant" transaction as contemplated in section 54(2) of the PFMA. National Treasury has reviewed the agreement and concurs with this view, while cautioning that it would have been prudent nonetheless to have sought advice on the Treasury before concluding the agreement.

QUESTION 1258 WRITTEN REPLY 26 APRIL 2010

1258 Mr M W Rabotapi (DA) to ask the Minister of Public Works:

(1) Whether his department owns or administers certain properties (details furnished) in the eThekwini municipality; if not, what is the position in this regard; if so, what are the relevant details;

(2) whether he has been informed that these properties comprise vacant land that is not maintained; if so, what is the (a) name, (b) designation and (c) contact details of the official who is responsible for managing this land; if not,

(3) whether there are any plans to (a) sell, (b) develop or (c) maintain the land; if not, what is the position in this regard; if so, what are the relevant details? NW1417E

Furnished details are: Portion 1 of Erf 367 of Chelmsfordville, known as 10 Edward Road and Portion 2 of Erf 376 of Chelmsfordville, known as 10A Edward Road.

REPLY

(1) No, the properties in question are under the custodianship of the Provincial Department of Transport in Kwazulu – Natal.

(2) (3) Falls away

Question 1259

Dr P J Rabie (DA) to ask the Minister of Trade and Industry:

When will the forthcoming Automotive Investment Scheme (AIS), to be implemented in July 2010, be finalised?

NW1418E

Response:

The Automotive Investment Scheme will be finalised within the first quarter of the 2010/11 financial year.

QUESTION NO.: 1260

DATE OF PUBLICATION: 26 APRIL 2010

Dr P J Rabie (DA) to ask the Minister of Economic Development:

(1) What are the repayment details, including the period of repayment, of the loan made available by the Independent Development Corporation (IDC) to the Safal Steel factory located in Cato Ridge in KwaZulu-Natal;

(2) whether the capital incentives that were negotiated between Safal Steel and the Department of Trade and Industry have been concluded; if not, why not; if so, what are the relevant details? NW1419E

REPLY

(1) The IDC does not normally release information of a commercially sensitive nature involving a particular client into the public domain as this can compromise the trust relationship between the IDC and its commercial clients.

(2) The Honourable Member is kindly requested to redirect the question to the dti.

QUESTION NO: 1262

DATE OF PUBLICATION: 23 April 2010

QUESTION PAPER NO: 11

DATE OF REPLY: 10 May 2010

Ms L D Mazibuko (DA) asked the Minister of Communications:

(1) What amount was (a) budgeted and (b) actually spent on the (i) production and (ii) broadcasting of the documentary Ungumuntu Ngabantu: Jacob Gedleyihlekisa Zuma;

(2) whether any advertisements were placed or broadcast in or on (a) print media, (b) radio and (c) television to advertise this documentary; if not, what is the position in this regard; if so, (i) where were these advertisements placed or broadcast, (ii) how many advertisements were placed or broadcast and (iii) what is the breakdown of the total advertisement cost;

(3) whether any advertisements were placed for the production of this

documentary; if not, (a) on what basis was the production company chosen to produce the documentary and (b) what (i) is the name and (ii) are the details of the company that produced the documentary; if so, (aa) what are the details of the company that was awarded the tender and (bb) on what basis was the decision to award the tender to this company taken?

NW1421E

REPLY

(1) (a) R1,875m was budgeted for programming on the overall inauguration month across all platforms. (b) (i) R400 000 was spent on the license (5 years, unlimited broadcasts across all channels) and exploitation rights. (Specifically DVD sales).

(ii) R310 000 is the minimum average value utilized in allowing the promo's to play out in advertising time . The Revenue generated R104 430.

(2) (a) (NO), (b) YES – Public Broadcast Service Radio, and (c) YES – promos were done in 30 second slots ; (i) on Television and Radio, (ii) Thursday – three 30 second promos; Friday – 6 to 10 times 30 second promos and Saturday in Weekend live – approximately 3 times and (iii) the cost of the Promo is R15 000 plus the placement costs of R310000 in airtime value used totaling R325 000.

(3) No adverts were placed, (a) The company came through SABC's unsolicited section as a proposed license. The SABC did not make or pay to have the films made. They were paid for and produced by the independent producers, we acquired the license to broadcast them. The films were chosen based on the original inauguration business planning as acquiring a completed programme is more cost effective than producing from scratch. The company also had intimate interviews with the incoming President which gave the films depth. SABC struggled to get interview time and behind the scenes access thus the films quality was much better than if we had to produce the films ourselves.

(b) (i) and (ii) Vilakazi Development Strategies are the owners of the films with the principal owner being Professor Vilakazi, a respected academic. Thus ensured that the contents of the films were factually correct.

(aa) and (bb) As mentioned above, the company was Vilakazi Development Strategies and they produced these independent films and submitted it to SABC through the unsolicited procurement system. SABC, as part of its preparation for the inauguration week, decided to acquire these 'completed' films as they were of interest to the viewers, factually correct and came at a good license price. Also SABC retained exploitation ownership for 5 years which would allow it to sell DVDs and ensure a sustainable revenue stream. The license also allowed SABC unlimited broadcast, which in normal license acquisitions is 3 broadcasts over 3 years. This means a longer period to amortize costs and ensure ROI on revenue.

QUESTION NUMBER 1263

DATE OF PUBLICATION: 26 APRIL 2010

Mr S B Farrow (DA) to ask the Minister of Finance:

Whether the National Treasury has considered any proposals regarding the establishment of a dedicated road maintenance fund comprising funds ring-fenced from the fiscus for the maintenance of the provincial and municipal road network; if not, why not; if so, (a) what are the relevant details and (b) how will the funds be sourced? NW1422E

REPLY:

The National Treasury has not received any proposals for the establishment of a dedicated road maintenance fund comprising funds ring-fenced from the fiscus. It is the responsibility of provinces and municipalities to ensure that adequate resources are directed towards proper asset preservation of roads falling under their competency. National government can through the gazetting of norms and standards provide for proper asset preservation of roads.

Various sources are used by provinces and municipalities to fund road networks falling under their responsibility. In addition to conditional grants specifically targeted at roads and transport, provinces and municipalities also use portions of the provincial and municipal infrastructure grants as well as own revenue sources and/or their equitable share allocations on their road networks.

I intend to hold further discussions with the Minister of Transport, Mr Ndebele, to ensure that we have a clear and agreed strategy for the maintenance of roads.

QUESTION NO 1264

DATE REPLY SUBMITTED: 7 MAY 2010

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: MONDAY, 26 APRIL 2010 (INTERNAL QUESTION PAPER: NO 11 – 2010)

Mr S B Farrow (DA) asked the Minister of Transport:

Whether, in view of the SA National Roads Agency (SANRAL) audit that revealed that only four per cent of municipalities audited their road networks to determine maintenance needs, his department will institute a nationwide quality audit of all roads to determine maintenance needs; if not, why not; if so, what are the relevant details?

NW1423E

REPLY:

The Minister of Transport:

The Department of Transport has established a task team with various other stakeholders, including National Treasury, to formulate clear policy guidelines for all authorities with regard to the appropriate management of assets under their jurisdiction. These guidelines include the frequent condition assessment (audit) of their assets to determine maintenance needs.

QUESTION NO. 1265

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 26 APRIL 2010

(INTERNAL QUESTION PAPER NO. 11)

Mr M Waters (DA) to ask the Minister of Health:

(1) Whether any nursing colleges were closed (a) before and (b) after 27 April 1994; if not, what is the position in this regard; if so, (i) how many in each case, (ii) in which provinces were they situated, (iii) on what date was each nursing college closed and (iv) how many nurses qualified at each college at their closure;

(2) whether any of these nursing colleges have been re-opened since their closure; if not, (a) why not and (b) when will they be re-opened; if so, (i) which colleges were re-opened, (ii) where are they situated, (iii) when were they re-opened, (iv) what was the cost of re-opening each college and (v) how many nurses is each college currently producing?

NW1424E

REPLY:

(1) The table reflects the information in this regard:

(b) (ii)

(a) Colleges closed before 27/04/94

(b) (i) & (iii) Colleges closed after 27/04/94

(b) (iv) Number of nurses qualified at closure of colleges and names of colleges

Eastern Cape

Yes

4 in former RSA

2 in former Ciskei

1 in former Transkei

None

Data is not available as these colleges belonged to previously functioning administrations

Free State

None

Two

Mangaung and Dr JS Moroka Nursing Colleges

139 Nurses qualified at closure

Gauteng

None

Four closed on

31/12/2000

Bonalesedi 183

Coronation 50

BG Alexander 141

Lebone 84

Total 458

KwaZulu Natal

None

Two, one in 1998 and one in 2000

Montebello 25

Kwa-Magwaza 40

Total 65

Limpopo

None

Colleges from the previous administrations of Lebowa, Venda and Gazankulu were amalgamated as campuses under the Northern Province College of Nursing in 1996

During amalgamation the capacity of these colleges was approximately:

Giyani 150

Thohoyandou 200

Sovenga 180

Total 530

Mpumalanga

None

None

Not applicable

Northern Cape

None

None

Not applicable

North West

None

None

Not applicable

Western Cape

None

Four colleges closed on 31 December 1999

Sarleh Dollie 77

Otto du Plessis 77

Nico Malan 69

Carinus 15

Total 238

(2) The following table reflects the information in this regard:

(b) (ii)

(i) (iii) (iv) Colleges

re-opened, date and cost of re-opening

(a)&(b) Reason for not re-opening

(v) Current production of nurses

Eastern Cape

None

Budgetary constraints

Not applicable

Free State

Dr JS Moroka re-opened in April 2010 and cost 2.5 Million Rand

Not Applicable

Currently training 30 enrolled nurses

Gauteng

Rahima Moosa (Coronation) re-opened in May 2008 and Bona Lesedi re-opened in Jauary 2009 as Campuses for Chris Hani Baragwanath Nursing College.

Cost= R55 Million

Current Production

4 year course 501

Theartre 19

Truama 30

Child Nursing 18

Midwifery 44

Oncology 16

Critical Care 47

PHC 21

Orthopaedic 20

Opthalmic 18

Advannced Midwifery 39

Nephrology 15

Total=788

Kwa-Zulu Natal

Not Applicable

Not Applicable

Not applicable

Limpopo

Giyani, Sovenga

And Thohoyandou were amalgamated to become campuses of the Northern Province College of Nursing in 1996

Not Applicable

The approximate capacity is as follows:

Giyani 300

Thohoyandou 315

Sovenga 365

Total 980

Mpumalanga

Not applicable

Not Applicable

Not applicable

Northern Cape

Not applicable

Not Applicable

Not applicable

North West

Not applicable

Not applicable

Not applicable

Western Cape

No colleges were re-opened but

Sarleh Dollie

Otto du Plessis

Nico Malan and

Carinus were amalgamated to from the Western Cape College of Nursing (WCCN) in 2000

Other Campuses of WCCN are:

Metro West in 2000

Metro East in 2007

Boland in 2008

The amalgamated WCCN produces about 300 qualified nurses annually from the following campuses:

Sarleh Dollie

Otto du Plessis

Nico Malan

Carinus

Metro West 100

Metro East 100

Boland 100

QUESTION NO. 1266

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 26 APRIL 2010

(INTERNAL QUESTION PAPER NO. 11)

Mr M Waters (DA) to ask the Minister of Health:

(1) (a) How many nursing colleges are there in each province, (b) what is the maximum training capacity at each college and (c) what is the actual number of nurses being trained;

(2) what are the (a) optimal and (b) actual staffing levels at each nursing college for each specific category of worker;

(3) when last was each nursing college inspected with regard to training standards?

NW1425E

REPLY:

(1) (a) Number of nursing Colleges in each province (2009)

Province

Number of Institutions

TOTAL

College

Campus

School

Eastern Cape

1

4

13

18

Free State

1

3

7

11

Gauteng

4

2

0

6

KwaZulu-Natal

1

11

13

25

Limpopo

1

6

24

31

Mpumalanga

1

0

16

17

Northern Cape

1

0

0

1

North West

2

0

5

7

Western Cape

1

3

6

10

TOTAL

13

29

84

126

* Data was compiled from the Nursing Audit Report conducted in 2009

(b) The maximum training capacity at each college and (c) the actual number of nurses being trained

Training capacity in institutions -2009/10

Province

Institutions*

Actual number of nurses being trained

Maximum training capacity

Eastern Cape

18

3 469

3224

Free State

9

1 400

3910

Gauteng

6

5218

4 495

KwaZulu-Natal

26

4 445

5 086

Limpopo

28

2585

2638

Mpumalanga

15

2077

2059

Northern Cape

1

216

2480

North West

7

1 449

996

Western Cape

9

1 362

4268

TOTAL

119*

21 462

19 575

*Only institutions that serve as delivery sites are included in this calculation. Colleges that are administrative sites have been omitted. Data was compiled from the Nursing Audit Report conducted in 2009 and was supplemented with information provided by provinces.

(2) (a) and (b) Optimal and actual staffing level at each nursing college for each specific category of worker see attached

* Data in optimal and actual staffing tables below was compiled from the Nursing Audit Report conducted in 2009 and was supplemented with information provided by provinces.

* Data missing in columns, not available in the Nursing Audit report and the individual province.

3) When last was each nursing college inspected with regard to training standards?

Source of the data: South African Nursing Council

Item

Nursing College

Accreditation Visit

1.

Ann Latsky Nursing College

2000

2.

Chris Hani Baragwanath

2001

3.

Garankuwa Nursing College

2000

4.

SG Lourence Nursing College

2000

5.

SAMHS Nursing College

2000

6.

KwaZulu-Natal College of Nursing

2004

7.

Limpopo College of Nursing

1998

8.

Mpumalanga College of Nursing

1998

9.

Excelcious Nursing College

1999

10.

Free State College of Nursing

2002

11.

Lilitha College of Nursing

2004

12.

Western Cape College of Nursing

1999

13.

Henrietta Nursing College

2001

14.

Frere Nursing College

2001

14.

Edendale College of Nursing

2001

16.

Ngwelezane College of Nursing

2000

17.

Madadeni College of Nursing

2001

18.

Eastern Cape College of Nursing

2001

19.

Goldfields College of Nursing

2000

QUESTION NO: 1268

PUBLISHED IN INTERNAL QUESTION PAPER NO: 11 OF 26 APRIL 2010

Mr KS Mubu (DA) to ask the Minister of International Relations and Cooperation:

(1) Whether the Government is putting any pressure on the Israeli government to open the Gaza border to allow for the passage of humanitarian aid and other supplies to the residents of Gaza; if not, why not; if so, what are the relevant details;

(2) Whether the Government intends to establish a consulate/embassy in Gaza; if not, why not; if so, what are the relevant details?

REPLY:

(1) Yes. The issue of the continued closure of the Gaza border by Israel is addressed in all engagements with the Israeli authorities by this Department. The ongoing closure has also been condemned in newsmedia statements, as well as in statements delivered at the United Nations.

(2) The SA Representative Office to Palestine in Ramallah maintains office premises in Gaza for use by officials of the diplomatic Mission when visiting the territory.

QUESTION 1269

FOR WRITTEN REPLY

Date of publication on internal question paper: 26 April 2010

Internal question paper no:11

Mrs S P Kopane (DA) to ask the Minister of Social Development:

(1) Whether any individuals have been convicted for fraudulently accessing social grants in each of the 9 provinces; if not, why not; if so, (a) how many in each province, (b) how many of these were (i) government employees and (ii) civilians;

(2) Whether there are any mechanisms or system that SASSA have implemented / intends on implementing to achieve its priority of putting early detention and investigation measures against fraud and corruption; if not, why not; if so, (a) what are the relevant information and (b) how are they going to link up with other government department systems in cases where government employees are involved;

(3) Whether there are any mechanisms or measures in place to eliminate illegal access and abuse of social grants, especially by foreigners at pay points bordering South Africa with neighbouring countries; if not, why not; if so, what are the relevant details;

(4) Whether any strategic intervention is in place to address the issue of moneylenders and their illegal possession of beneficiaries identify documents; if not, why not; if so, what are the relevant details? NW 1428e

REPLY

(1) Yes, a total of 13 145 individuals have been convicted for fraudulently accessing social grants.

(a) The table outlines the number of individuals convicted per province per financial year from June 2005 to March 2010:

Province

Number of convictions

Mpumalanga

1,163

Gauteng

1,736

Limpopo

878

KwaZulu Natal

4,105

Western Cape

1,715

Free State

551

Eastern Cape

1,254

Northern Cape

519

North West

1,224

Total

13,145

(b) (i) A total of 7,829 were government officials and

(ii) 5,316 were civilians.

(2) Yes, mechanisms are being implemented to ensure early detection of fraudulent social grants.

(a) SASSA is implementing the integrity model, which focuses on the verification of grant applications before or immediately after the approval of the grant. This entails determining whether the beneficiary is not registered on any other government system such as the Unemployment Insurance Fund (UIF), GEPF or the Deeds Office, conducting home visits to establish the real truth about the level of poverty of applicants and verifying the existence of the beneficiary where the application relates to Child Support or Care Dependency Grants.

(b) The SOCPEN system is directly linked to the Government payroll system PERSAL. This allows for immediate identification of persons registered on PERSAL when an application is captured on SOCPEN. SASSA is also able to access and conduct data matching between SOCPEN and PERSAL, the SANDF salary system, periodically. The data matching as well as on-line interface between these systems enables SASSA to identify public servants who apply for social grants. The exceptions are then investigated to confirm eligibility because public servants who foster children do also qualify for Foster Child Grants as this grant is not means tested.

(3) SASSA, in collaboration with the Special Investigations Unit (SIU), the South African Police Service (SAPS – border police), and the Department of Home Affairs has developed a strategy to identify and investigate cross-boarder social grant fraud. The investigation has commenced in Mpumalanga and the affected borders at identified pay points. SASSA is unfortunately unable to divulge detailed information on the matter to minimize the risk of compromising the investigation.

(4) Yes, there are strategic interventions made by SASSA to address the issue of moneylenders and illegal possessions of beneficiaries' identify documents. All regions have implemented education programmes to inform beneficiaries of the consequences of lending money from money lenders. In addition, no region allows money lenders to have access to the pay points, in compliance with the Regulations to the Social Assistance Act, 2004. This issue is, however, difficult to monitor, as beneficiaries may approach money lenders on their own. SASSA would in these cases have no knowledge of the relationship between the beneficiaries and the money lenders. We believe that the new methods of payment that are to be implemented will certainly help us to eradicate this problem.

QUESTION 1270

WRITTEN REPLY

26 APRIL 2010

1270. Mr S. J Masango (DA) to ask the Minister of Public Works:

(1) Whether any Cuban engineers were employed by his department on 31 March 2010; if not, (a) why not and (b) what was the last date of employment of Cuban engineers; if so, (i) how many and (ii) what are the relevant details;

(2) Whether the Cuban engineers were employed in each province; if not, why not; if so, what are the relevant details;

(3) Whether there is any specific and/or special project that is run by the Cuban engineers; if not, why not; if so, what are the relevant details;

(4) Whether there is any specific timeframe for Cuban engineers to work in

the country; if not, why not; if so, what are the relevant details?

REPLY:

1)(a)(b) (i) (ii) Yes, the department has contracted 95 Cuban Professionals until 31 July 2011 in terms of bilateral agreement between the Republic of South Africa and the Republic of Cuba. Of the total number, 33 were placed under the National Department of Public Works, 43 in Provincial Department of Public Works and 19 in the Independent Development Trust.

The breakdown of the professionals per field is as follows:

  • Architects = 26
  • Engineers = 66 (Civil = 41, Electrical = 11, Mechanical = 10, Hydraulic = 4)
  • Geology = 3
  • 2) Yes

    3) No, the Cuban Technical Advisers are only assisting with departmental projects and mentorship programme.

    4) 36 months

    QUESTION 1271

    Mr S.J. Masango (DA) to ask the Minister of Defence and Military Veterans:

    1. Whether the community members of Merrievale are paying any rent; if not, why not, if so, (a) what is the rental amount and (b) who collects the rent from the community members;

    2. Whether the SA National Defence Force is responsible for ensuring that the community of Merrievale receive service delivery; if not, (a) why not and (b) who is responsible for it; if so, what are the relevant details;

    3. Whether any decision has been made to move the community out of Merrievale; if not, why not, if so (a) when any they going to be moved and (b) to where will they be relocated? NW 1430E

    REPLY

    1. Community members of Merrievale are not paying any rent due to the fact that they are not members of the SANDF and are illegally occupying the facilities.

    2. The SANDF is not responsible to ensure that these members receive any kind of service delivery because they are illegally occupying the facilities.

    3. A decision was made whereby the DPW in conjunction with the Ekurhuleni Municipality have to find alternative accommodation for these members. The date and alternative accommodation where these members will be relocated have still to be determined.

    QUESTION 1272 (WRITTEN REPLY) 12 APRIL 2010

    1272. Mr S. J Masango (DA) to ask the Minister of Public Works:

    (1) Whether his department has budgeted for the repair and maintenance of the Marievale military base in the 2010-11 financial year; if not, why not; if so, what are the relevant details;

    (2) whether he intends disposing of this base to the Department of Human Settlements or the private sector for housing development; if not, why not; if so, what are the relevant details?

    REPLY:

    1. NO

    2. No, the Department of Defense and Military Veterans intends to use the property to accommodate their Engineering Regiment section.

    QUESTION NUMBER 1273 [NW1432E]

    DATE OF PUBLICATION: 26 APRIL 2010

    Dr D T George (DA) to ask the Minister of Finance:

    (1) Whether a public tender process has been followed by the Financial Service Board to

    appoint curators for pension funds; if not, why not; if so, what are the relevant details;

    (2) whether fees charged by curators have been capped; if not, why not; if so, what are

    the relevant details?

    NW1432E

    REPLY:

    (1) No, the Financial Services Board (FSB) has indicated to the National Treasury that a public tender process is generally not followed as such appointments are made by a Court in terms of section 5 of the Financial Institutions (Protection of Funds) Act, No 28 of 2001. Appointments are made on application by the Registrar, the Executive Officer of the FSB, who usually nominates candidates for consideration. The court may, on good cause shown, cancel the appointment of the curator at any time.

    The provisions of the Financial Institutions Act do not specify any requirement for the identification of curators. According to the Financial Services Board, the Registrar usually identifies and nominates possible curators after taking into account the relevant inspection report or information that informed the decision to apply for the appointment of a curator. Such curatorship applications are generally brought on an urgent basis, and the exigencies in almost all cases would simply not allow for a "tender process" and may unduly delay urgent regulatory action. In making application for the appointment of curators, the Registrar attaches the proposed individuals' CV's to the Court papers and the Court has to be satisfied that they are suitable candidates. Curatorship orders are provisional at the outset and are published (widely) in the media before they are confirmed as final orders. In terms of the provisional orders, interested parties are invited to show cause inter alia as to why the appointment of the proposed curators should not be confirmed.

    (2) Yes, the Financial Services Board has informed me that it does limit the fees and total costs charged by curators.

    The remuneration of curators is dealt with in section 5(5) (c) of the Financial Institutions (Protection of Funds) Act, No. 28 of 2001. This section provides that "the court may make an order with regard to the remuneration of a curator appointed provisionally under subsection (2) (a) or finally under subsection (4)".

    The practice has been for the Financial Services Board (the FSB) to submit a draft order to the court stating that the curator will be remunerated in accordance with the norms of his or her profession "as agreed with the Registrar". In practice this means that the curator agrees on an hourly tariff with the Registrar or, where the curator is an auditor, a fee equal to the Auditor General's tariff for outsourced work. In addition, since 2007, the FSB also caps the figure per month to ensure that the remuneration of curators is contained within reasonable limits.

    According to the FSB, the curatorship of the Datakor Pension Fund, Datakor Retirement Fund and Cortech Pension Fund were exceptions from the above procedure. The Registrar applied to court to sanction the remuneration of the curators on a contingency basis as there were no assets in the funds from which to pay the curators. This is the only curatorship recently where the remuneration of a curator was established on a contingency basis, as sanctioned by the court.

    In addition to the above response, I wish to state for the record that more needs to be done to open up the process for choosing possible curators and to limit the fees and total charges paid to them. I will be requesting the National Treasury to convene a meeting of relevant stakeholders (e.g. FSB, SA Reserve Bank, Department of Justice) to examine means of improving the current arrangements, and ensuring implementation of a more transparent framework in future.

    QUESTION NUMBER 1274 [NW1433E]

    DATE OF PUBLICATION: 26 APRIL 2010

    Dr D T George (DA) to ask the Minister of Finance:

    (1) Whether any agreements have been reached between the Financial Services Board or any other financial service provider and/or the curator and/or the Board of Trustees on the disputes over the manner in which the surplus of various pension funds is distributed; if not, why not; if so, what are the (a) details of the (i) funds and (ii) agreements reached in each case, (b) details of each service provider involved in this matter and (c) further relevant details;

    (2) whether members of the pension fund have been informed of any of these arrangements; if not, why not; if so, what are the relevant details?

    NW1433E

    REPLY:

    1. The Financial Services Board has indicated to the National Treasury that they have reached agreements in two cases on disputes over the way in which surplus of various pension funds is distributed. In none of the two cases was the fund under curatorship.

    (a)(i) The funds are the Dorbyl and Unilever Pension Funds.

    (ii) The agreements in both cases were confined to specific valuation assumptions used in their valuation reports - these were matters that served before the FSB Appeal Board, and the views taken by the Appeal Board panel and experts involved on both sides informed the agreements, which were then made determinations of the Appeal Board. The outcome was that more surplus was available for distribution than what the funds originally reported.

    (b) The administrator involved in the case of the Dorbyl Pension Fund was Alexander Forbes Financial Services. An employee of the same company acted as the valuator. In the case of the Unilever Pension Fund, the administration was conducted by the fund itself, and an employee of Alexander Forbes Financial Services acted as the valuator.

    (c) Whilst the Registrar of Pension Funds ('the Registrar') is prepared to give guidance (particularly through information and pension fund circulars), the Registrar does not enter into agreements with any party in respect of disputes over the manner in which surplus must be distributed. What will be considered to be reasonable and equitable has to be determined with reference to the financial history of each fund and by taking into account Board Notice 37 of 2003. Each case, once submitted, is considered on its own merits with the same degree of diligence, irrespective of whether or not the Board had discussed some issues with the Registrar in the past.

    Apart from providing administrative and consulting services, financial service providers have no say in how the surplus is to be apportioned. In order to give proper guidance to funds administered by them, service providers may discuss issues with the Registrar from time to time. Again, no agreements with regard to surplus disputes have been entered into with any service provider.

    If a fund fails to submit a scheme, or upon request, a Specialist Tribunal can be appointed in terms of the Act. In such cases, the Tribunal takes on the duties of the Board in respect of the surplus apportionment scheme. Unless there is evidence that the Tribunal has not applied its mind, the Registrar must accept the scheme submitted by the Tribunal as being reasonable and equitable.

    The Registrar follows a consistent approach in the consideration of surplus apportionment schemes submitted to his Office for his consideration and approval.

    Briefly, the following process must be followed by the Board of a fund:

    a. Arrange for the fund to be actuarially valued in order to determine the surplus available for apportionment;

    b. Investigate whether there was an improper use of surplus by the employer, as prescribed in the Pension Funds Act ('the Act'). If so, the value of improper uses must be added to the surplus to be apportioned;

    c. Appoint a former member representative to assist the Board in identifying and communicating with former members;

    d. Determine who may participate in the surplus, following guidelines and prescriptions as set out in the Act and subordinate legislation;

    e. Take all reasonable steps necessary to find former members;

    f. Determine the method and basis of how stakeholders share in the surplus, on condition that it must be equitable and reasonable;

    g. Communicate the scheme to stakeholders (members, former members, pensioners, and employer) in sufficient detail so that stakeholders can reasonably make a call as to the reasonableness and fairness of the scheme;

    h. Consider and deal with all complaints and objections lodged by stakeholders; and

    i. Submit the scheme to the Registrar for approval.

    The Registrar considers the submission and will only approve the scheme once he is satisfied that the requirements of the Act had been met and that the scheme is reasonable and equitable. It is, however, accepted that a wide range of outcomes could be acceptable and the Registrar will generally not second-guess the Board's decisions, especially in cases where stakeholders had not lodged any objections.

    Once satisfied, the Registrar issues the necessary certificate of approval.

    2. No, not by the FSB, as it is the responsibility of the Fund to communicate with the members. Whilst it is unlikely that the exact terms of the agreements concluded in the Dorbyl and Unilever appeal matters were communicated with members, the resultant effect on surplus would have been communicated as part of the normal communication with members regarding the surplus apportionment scheme.

    QUESTION NUMBER 1275

    DATE OF PUBLICATION: 26 APRIL 2010

    Dr D T George (DA) to ask the Minister of Finance:

    (1) Whether the World Bank has attached any conditions to the $3,75 billion US loan

    extended to Eskom; if not, why not; if so, what are the relevant details;

    (2) whether the National Treasury has provided any guarantees for the loan; if not, why not; if so, what are the relevant details;

    (3) whether the National Treasury has attached any conditions to the guarantee of the loan; if not, why not; if so, what are the relevant details?

    NW1434E

    REPLY

    (1) The World Bank attached the International Bank for Reconstruction and Development's (IRBD) General Conditions for Loans, Guarantee and Grant Agreements of the IBRD to the loan. Details are available on the World Bank's website. The website address for the General Conditions is.

    http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTLAWJUSTICE/EXTTOPGENCON/0,,menuPK:1581351~pagePK:64168427~piPK:64168435~theSitePK:1581337,00.html#IBRD_current

    There were some modifications made to the General Conditions. These modifications pertain to the following:

    (a) The Bank agreed to apply retroactive financing for some components of the

    Medupi project which had already been procured subject to Eskom's procurement policy substantively complying with the World Bank procurement procedures and inclusion of the World Bank's standard reporting requirements on fraud and corruption;

    (b) Eskom is required to install Flue Gas Desulpharisation (FGD) equipment in each of

    the six generation units of the Medupi Power Plant in order to mitigate for the environmental impact of coal based generation. The implementation date will be determined through consultations between the World Bank and Eskom; and

    (c) An obligation by Government to ensure that there is sufficient water for the plant.

    (2) The government acting through the Minister of Public Enterprises with the concurrence of the Minister of Finance, guaranteed the World Bank loan extended to Eskom. The guarantee was issued in terms of the Guarantee Framework Agreement of R176 billion which was provided to Eskom in 2009 to obtain funding for their capital expenditure programme for the next five years.

    (3) The following main conditions have been attached to the Guarantee Framework

    Agreement:

    (a) Provision for the issuance of guarantees under the Guarantee Framework Agreement for different debt instruments or loans with government approval;

    (b) Before accessing the market for a guaranteed instrument loan Eskom has to obtain government's agreement on timing of market access;

    (c) Prior to committing on each issuance, government's approval on the terms and conditions and in particular the pricing of the instrument/loan has to be obtained;

    (d) All guarantees issued under the Guarantee Framework Agreement must be for the funding of Eskom's capital expenditure programme;

    (e) Utilisation of guarantees for new debt is set at R30 billion per annum from 2009/10 to 2013/14 but may, subject to approval by Government, be accelerated;

    (f) Eskom has to report quarterly to the National Treasury and the Department of Public Enterprises on their capital expenditure plans and the utilisation of the guarantee issued under the Guarantee Framework Agreement. Eskom also needs to provide management accounts;

    (g) In the event of default by Eskom, Government has the option of repaying the debt or to take over from the issuer and make payments on Eskom's behalf;

    (h) In the event that Government makes a payment on behalf of Eskom, the claim on Eskom is subordinated to all other creditors; and

    (i) Eskom is required to pay a guarantee fee on the guaranteed debt, but only once its key credit metrics achieve specified levels.