Questions & Replies: Trade & Industry

(b)(i)-(ii) According to NLB, two thousands and thirty (2030) beneficiaries have received funding from NLDTF and R2.3 billion of the target amount was awarded during the period of 1 April 2010 to 31 October 2010

(c) According to NLB, each application is considered on its own merit with the qualifying criteria for all applicants being the following:

· Complete prescribed application form

· Proof of registration as non-profit organization

· Constitution or founding documents

· Annual financial statements drawn up an independent accounting officer registered with a recognized professional body

· Project Implementation plan

· Project budget

Question 3337

Ms C M P Kotsi (Cope) to ask the Minister of Trade and Industry:

(1) Whether his department had conducted a viability study prior to

establishing the Isivande Women's Fund (IWF); if not, why not: if so, what are the relevant details;

(2) whether applicants who have not registered a close corporation (CC) prior to applying for funding from IWF are eligible for funding; if not, (a) why not, (b) what assistance does (i) his department and (ii) the IWF offer to such applicants and (c) what is the prerequisite for receiving assistance; if so, what are the relevant details?NW4169E

Response:

1. Prior to the establishment of the Isivande Women's Fund, a number of research studies on access to finance and in particular for women were considered. These confirmed that limited access to finance for women inhibits the establishment, growth. sustainability as well as profitability of women enterprises. The studies further pointed to gender bias within existing financial institutions in the provision of credit. The Isivande Women's Fund was therefore established to address these constraints.

2. Only incorporated legal entities are eligible to apply for loan funding for start­up funding. business expansions, business rehabilitations and turnarounds, franchises and bridging finance. The legal entities have to be at least 60% women owned and have a viable business plan. Furthermore, the staff profile must be at least 60% women and 75% black (including people living with disability) and the business must be in a rural or peri-urban area.

Loans to be granted range from R30 000 to R2m and are available at concessionary rates repayable within 5 years

The IWF also assist in identifying and packaging pre and post intervention business support including mentorship to ensure sustainability of supported enterprises and reflows to the Isivande fund

QUESTION NO 3336

Ms C M P Kotsi (Cope} to ask tile Minister of Trade and Industry:

Whether he will take any steps against fruitless and wasteful expenditure of funds into the "effect of advertising in the Gambling & Liquor Industries" to ascertain whether "advertising increases liquor consumption or stimulation of gambling" as reported in his department's annual report: If not, why not: if so, (3) what amount was spent wastefully, (b) what steps willbe taken and (c) who will be held accountable? N'N:.i 168E

Response:

the dti commissioned the two research studies to look into the social impact of advertising on consumers as per business plan. Further to ascertain correlation between advertising and the product/service, and the positive/negative reaction of consumers towards gambling and liquor advertising. The studies assessed the current legislative clauses on advertising, the effectiveness of the clauses, enforcement, mechanisms and structure in place enforcing these legislative mandates. The findings are used to Inform policy direction to the dti on the best approach to put in place where gambling and liquor advertising is concerned. For information, the findings of the study on gambling has been used in the process of the Gambling Review Commission and has also informed the process or further strengthening gambling advertising regulations.

(a) The research cost an amount of R492 492, 54 for liquor and

R468 311, 00 for gambling. There was no wasteful expenditure in this regard.

(b)-(c) All amounts spent were necessary and have been accounted for the dti

QUESTION 3284 FOR WRITTEN REPLY

DUE DATE 17 NOVEMBER 2010

3284. Mr J F Smalle (DA) to ask the Minister of Trade and Industry:

(1) Whether his department and its affiliated entities reached the 2% objective in employing persons with disabilities as indicated in his department's 2009-10 annual report; if not, why not; if so, what are the relevant details;

(2) (a) how many persons with disabilities are employed (i) within his department and (ii) under COTII and (b) what are their post levels?NW4103E

RESPONSE:

(1) Yes. the dti has reached 2.02%

(2) (a) (i) the dti has employed 24 persons with disabilities as on 31

March 2010.

(b) The post levels are as follows:

Question 3246

Mr G R Krumbock (DA) to ask the Minister of Trade and Industry:

(1) For what reason are comparatively large sums being granted to comparatively large enterprises through the Tourism Support Programme (details furnished) and not to smaller enterprises;

(2) what measures has his department put in place to safeguard public funds in cases where qualifying enterprises that received R9 million are sold immediately after the prescribed period (details furnished), thus allowing applicants to obtain R9 million without necessarily adding value to the company? NW4061 E

Response:

(1) The incentive grant for the Tourism Support Programme is based on the investment that projects make in capital assets. On the contrary, more assistance is given to small projects. For example, investment projects of R5m and below receive a grant which is equal to 30% of their total qualifying investment costs, whilst investment project above R30m can only receive a grant of 15% of their qualifying investment costs.

As per details furnished, from inception of the Tourism Support Programme to July 2010, 56% of all approved projects are investments below R5m.

(2) In order to safeguard public funds and to maximise the development impact of incentives, incentives are designed in a manner that ensures that grant payments are based on certain conditionalities. In the case of the, Tourism Support Programme, no payments are made to approved projects unless projects can demonstrate that they have met the agreed performance requirements on:

· direct employment;

· capital investment: and

· Broad-based black economic empowerment.

The performance requirements are also measured over a 4-5 year period to ensure that projects add value beyond the period that may claim for incentives

QUESTION 3242 FOR WRITTEN REPLY

3242. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

What is the (a) total cost and (b) number of copies of each (i) annual report and (ii) report on strategic plans that was produced by (aa) his department and (bb) any of its entities in the 2009-10 financial year?NW4057E

RESPONSES:

QUESTION NO 3205

Mr J F Smalle (DA) to ask the Minister of Trade and Industry;

Why was it necessary for the Companies and Intellectual Property Registration Office (Cipro) to increase its software maintenance programme budget from R638 376 to R 1145 000 in the 2009-10 financial year?

Response:

According to Cipro. the amounts do not represent an increase in the actual cost for maintenance for the 2009/2010 financial year. Cipro renew maintenance agreements during the financial year and accounts for the costs as pre-paid expenditure. The increase in the pre-paid expenditure relates to the renewal of software maintenance agreements for the maintenance of:

• Antivirus solution
• JP Software
• Oracle database
• Informix database
• Accpac accounting software

QUESTION NO 3165

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

(1) Whether he has made provision for a chief financial officer (CFO) in the organogram of the National Consumer Tribunal; if not, why not; if so, what are the relevant details;

(2) whether the chief executive officer will hold the position of both the CFO and the registrar; if not, why not; if so, what are the relevant details?NW3969E

Response:

(1) In terms of the NCT's approved structure and business case there was no provision for a CFO based on the size and nature of the entity as a Tribunal. The Registrar fulfils the role of the CFO and is supported by a Financial Consultant.

(2) Yes, the Registrar fulfils both functions with the support of a Financial Consultant. Some of the functions of registry have been delegated to the Senior Case Analyst in the Registrar's Office.

QUESTION NO 3164

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

(1) Whether any research has been conducted to determine the impact of the economic recession on the influx of new cases to be heard by the National Consumer Tribunal (NCT); if not, why not; if so, (a) who conducted the research and (b) what are the findings;

(2) whether this research was conducted internally; if not, (a) why not and (b) what is the position in this regard; if so, what are the relevant details;

(3) whether the NCT will be able to deal with any increase in complaints considering the amount of staff currently employed by the NCT; if not, what measures has he put in place to ensure that the NCT is able to deal with any increase in complaints; if so, (a) how will the NCT deal with any increase in complaints in light of its current staff complement and (b) what are the further relevant details?

NW3968E

Response:

(1 )(a)-(b)Yes, a research was conducted as part of the National Consumer Commission business case development and review. The research was conducted by the department and it was determined that the NCT will require enhanced technology for case management systems and additional resources.

(2) Yes, the research was conducted internally as part of the business case development and review and it was submitted to National Treasury for approval which was granted.

(3) The NCT would review its case load once the Commission is in place but the research indicated a need for increased structure for case analysis, registry staff and enhanced case management systems. Additional finance were also included in the MTSF cycles. The process to roll-out the human capacity will commence upon establishment of the National Consumer Commission.

QUESTION N0 3131

Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether Mr Tony Yengeni was listed on the register of disqualified directors of the Companies and Intellectual Property Registration Office (Cipro) in terms of Section 218 of the Companies Act, Act 71 0f 2008, after he was convicted of fraud (S v Yengeni 2006 (1) SACR 405 (T)); if not, why not; if so, (a) who was responsible for allowing him to be registered as the director of several companies, (b) what action has Cipro taken to deregister him and (c) what disciplinary actions have been taken against the Cipro agents who were responsible for allowing his registration? NW3931E

Response:

According to Cipro, section 219 (4A) of the Companies Act, 1973 requires the Registrar of the Court to provide the Registrar of Companies with copies of court orders and convictions to trigger the registration on the register of disqualified directors. Mr Yengeni was not listed on the register of disqualified directors as the Registrar of Companies was not provided with the relevant information. The Registrar of Companies will continue to work with the Registrar of Court to develop and maintain a system that will facilitate the submission of such information to speedily and appropriately allow for listing of necessary individuals on the register.

(a) According to Cipro, the legislation gives companies capacity to appoint their own directors and register them with Cipro for record keeping.

(b) According to Cipro, no action has been taken to remove Mr Yengeni as the duty to remove him lies with the concerned company or a court with jurisdiction to authorise such a change.

(c) According to Cipro, no action has been taken against any of the Cipro agents at this stage, as the processes of lodging the relevant CM29 form (details of directors), were met at the time.

Question 3105.

Mr X Mabasa (ANC) to ask the Minister of Trade and Industry:

What (a) opportunities for trade have emerged from the President's recent visit to Egypt and (b) measures did he put in place to ensure that we are ready to take advantage of such opportunities with a view to contribute to the economic development of South Africa and Africa as a whole?NW3843E

Response:

(a) During the State Visit opportunities for South African business were identified in the following sectors: agro-processing, finance, automotives, information and communication technology, construction and infrastructure, pharmaceuticals, mining and energy.

(b) Egypt and South Africa agreed to establish and implement a Joint Trade Committee at Senior Officials level, to facilitate cooperation in these areas in order to advance bilateral economic relations through the regular exchange of information. We would aim to unblock obstacles that impede improvement in our bilateral trade relations.

As two of the leading, and most diversified and advanced, economies on the continent, Egypt and South Africa agreed to intensify collaboration with regards to the planned Tripartite FTA between the Southern African Development Community, the East African Community and the Common Market of Eastern and Southern Africa (SADC-EAC-COMESA T-FTA). This FTA will establish a larger, integrated market on the continent comprising 26 countries with a combined population of 527 million people, and a combined Gross Domestic Product of US$ 624 billion. Such a market would offer enormous new opportunities for economic operators in these countries, including South Africa.

Question 3038

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

Why was the Chief Information Officer of his department the only person who was paid a performance bonus in the 2009/10 financial year as reported in the
2009/10 annual report of his department? NW3756E

Response:

The Chief Information Officer was not the only person who received performance rewards in the 2009/2010 financial year.

286 officials received performance rewards according to the dti's 2009/10 Annual Report.

QUESTION NO 2967

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

With reference to his department's 2009-10 annual report, what is the reason for the increase in the lease agreement from R 75 388 to R 163 200 in respect of the 202 Esselen Street property currently being leased by Cipro? NW3658E

Response:

According to Cipro, for the 2009/2010 financial year additional floor space was required to accommodate extra filing as well as office space as the existing # accommodation within the dti Campus was exhausted. The amount of R163 200 disclosed represents the lease commitments for 830 sqm at 202 Esselen Street after the financial year going forward for 3 months. The disclosure of future contractual commitments is in terms of the requirements of the Accounting Standards.

Question 2966

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

(1) (a) What amount was budgeted for forensic audits in the 2009-10 financial year, (b) how many forensic audits were carried out in the specified period and (c) in each case, what (i) was the nature of the investigation and (ii) were the detailed outcomes;

(2) whether any internal investigations were carried out; if not, why not; if so, what are the relevant details?

Response:

(1) (a) Forensic Investigations were outsourced to Gobodo Forensic & Investigative Accounting Services) (Pty) Ltd as well as conducted by the newly appointed forensic audit staff within the Internal Audit Chief Directorate. For the 2009/2010 financial year, the cumulative costs of the audits was R 1 097 687.

(b) In the 2009/10 Financial year there were 38 forensic investigations conducted for the dti and 8 investigations were referred to the relevant entities reporting to the dti to be investigated. (2 in SAMAF, 3 in seda, 2 in Khula and 1 in CIPRO).

(c)

(i) The subject of the audits varied from conflict of interest, potential fraud, corruption and bribery, non-compliance with Departmental policies and procedures, irregular and unauthorised expenditure, allegations of nepotism, procurement irregularities, incentive scheme fraud, laptop thefts, potential negligence, abuse of state resources, irregular appointment of service providers, allegations of racism and alleged unethical behavior.

(ii) Overall, the allegations were not confirmed in 20 of above mentioned investigations. 5 Investigations are in the process of being finalised where draft reports have been issued. Disciplinary hearings were conducted where the necessary disciplinary action was taken for non compliance with polices and procedures. 4 Criminal cases relevant to the investigations for the 2009/2010 financial year were opened at the SAPS. Monies were / (will) also be recovered from officials where it has been recommended.

2) Internal investigations were carried out as set out above in the response to question 1(b) and (c).

QUESTION NO 2965

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

(1) What were the outcomes of the specialist investigation into the procurement of Enterprise Content Management (ECM) solutions;

(2) whether there were any irregularities found; if not, what is the position in this regard; if so,

(3) whether any action was taken against these persons; if not, why not; if so, whataction;

(4) whether he found that any fruitless expenditures were made in this regard; if so, what is the total monetary value of these expenditures?NW3656E

Response:

(1 )-(4) The Enterprise Content Management matter is still a subject of a court action; therefore the dti will only be able to respond once the matter has been resolved in court.

Minister presented a report to Parliament and Scopa on the outcome of the investigation. The identified irregularities were referred to law enforcement and disciplinary action has been initiated against individuals implicated in the Auditor­General and forensic investigation reports. Two senior officials were suspended.

QUESTION NO. 2958

2958. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether, with reference to the 2010-11 to 2012-13 Industrial Action Plan (details furnished), the (a) management and (b) oversight of Proudly South African has been strengthened; if not, why not; if 50, (i) when were these processes completed, (ii) how has the (aa) management and (bb) oversight been strengthened and (iii) what was the total cost involved? NW3649E

Reply:

Yes

The contract of the previous CEO of Proudly SA was in dispute and has since been resolved amicably. In order to preserve institutional memory and ensure effective day to day management the Executive Director of NEDLAC, Mr. Herbert Mkhize, who is also a director on the Proudly SA board, has been appointed as the Acting CEO for Proudly SA to lead and guide the existing staff to manage the campaign.

The Proudly SA campaign has also faltered in delivering on its mandate. Therefore a process is underway, between Proudly SA and the dti, to align the Proudly SA campaign with the IPAP2 Strategy. The repositioned campaign, as one of the intended outcomes of IPAP2, will be utilised to increase and stimulate local production and local procurement.

As part of its repositioning, Proudly SA will perform additional roles towards complimenting its Buy Local mandate and function, which will seek to increase the percentage of local content used in the production processes in a wide range of sectors, starting with the sectors identified as priority sectors in IPAP2.

Yes

1. This process was started in July 2010 and will be implemented in the financial year 2011/2012
2. Strategic sessions aimed at reshaping and repositioning the Campaign, have already taken place between the dti and Proudly SA and this has informed the repositioning strategy currently being finalized. The Proudly SA board has approved the proposed strategy, subject to a few changes, and this will again be reviewed for final approval by the Proudly SA board on 26 November 2010. A profile of the position of CEO has been jointly developed by Proudly SA and the dti. This profile will ensure that the incumbent recruited has all the qualities to reposition and drive the Proudly SA campaign.

Upon finalization and approval of this repositioning strategy, a new CEO will then be appointed to drive the implementation of the new strategy.

The dti continues to actively utilize its seat on the Proudly SA Board for oversight purposes.

iii. R160 000

QUESTION: 2956

2956. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether, with reference the 2010-11 to 2010-13 Industrial Policy Action Plan (IPAP)(details furnished), the Industrial Development Corporation's business model has been reviewed to identify ways to free up capital for IPAP labour-intensive and other value adding sectors; if not, why not; if so, (a) when was this review completed, (b) what ways to free up capital have been identified and (c) what was the total cost of this process? NW3647E

Reply

This question should be referred to Minister Patel for response as IDC falls under the Economic Development Department.

2909. Mr N J van den Berg (DA) to ask the Minister of Trade and Industry:

Whether his department provides special incentives to encourage entrepreneurs to enter the Information and Communication Technology sector in order to ensure the development of (a) small, (b) medium and (c) micro enterprises within the sector through the use of information and communication technologies; if not, why not; if so, what are the relevant details? NW3598E

Response:

The dti does provide incentives and assistance to encourage entrepreneurs to enter the Information and Communication Technology sector. These incentives enhance the competitiveness, productivity and sustainability of enterprises by providing tangible support to Information and Communication Technology (ICT) enterprises through incubation, networking and financial assistance. Details of such support are listed below.

The SEDA Technology Programme (stp) seeks to facilitate technological innovation, product quality, accessibility and utilization of technologies, and technical support for SMME's. Through incubators, SMME's, are able to access business infrastructure, mentoring services, financial advice, knowledge about markets in an environment conducive to business development. These services contribute to increased survival rates and growth of SMME's.

The Support Programme for Industrial Innovation (SPII)promotes new technology development by offering financial support on a matching grant basis with industry to develop new products and processes. About 53 % of all projects supported were for the ICT sector with regard to the development of new products and processes in the electronics and software industries.

The Technology and Human Resource for Industry Programme (THRIP)supports new technology and human resource development at universities and universities of technology on a matching grant basis with industry. Sixty nine per cent (69%) of the enterprises supported in the ICT sector were SMME's.

In partnership with the Department of Communications and SEDA, the dti assisted individuals to form e-co-operatives and capacitated them to provide web-design and other IT services to municipalities and communities. The type of assistance provided included training, mentoring and facilitation of registration, application for Co-operative Incentive Scheme (CIS) and of procurement opportunities from surrounding municipalities.

The South African Vanguard for Technology (SAVANT) Programme sets out to showcase the products and solutions that the ICT and Electronics industries in the country are capable of producing. The initiative provides a range of resources such as business to business and business to government linkages through the SAVANT website where companies can register for free. Assistance is also provided to enterprises to participate in identified key international exhibitions giving a chance to SMEs to showcase their products and services.

All of the above programmes have a strong focus on SME's with more than 80 % of financial resources being allocated to same.

Question 2882

Mr S J Njikelana (ANC) to ask the Minister of Trade and Industry:

(a) Why has the SA Council for the Nonproliferation of Weapons of Mass Destruction not tabled a report in Parliament since 9 June 2008 and

(b) when will he table its report?NW3566E

Response:

The South African Council for the Non-Proliferation of Weapons of Mass Destruction has tabled reports in Parliament since 9 June 2008. The report for the period 1 July 2007 to 31 March 2008 was tabled on 15 September 2008. With regard to the report for the period 1 April 2008 to 31 March 2009, the Speaker of Parliament was notified of a delay in the tabling of the report due to the delay in the appointment of the Council, by letter on 14 August 2009. The report was subsequently tabled on 10 December 2009. The annual report for the period 1 April 2009 to 31 March 2010 was tabled on 8 September 2010.

Question 2865

Mr P D Dexter (Cope) to ask the Minister of Trade and Industry:

Whether he or his department intends taking any action to ensure that a suitable solution is found for all parties concerned with regard to the proposed closure of factories in Newcastle; if not, why not; if so, what are the relevant details?Nw3548E

Response:

The Department of Trade and Industry (the dti) has deployed a Clothing and Textile Competitiveness Programme (CTCP) and a Production Incentive (PI) support scheme to promote competitiveness upgrading of clothing and textile firms. The general rules of the CTCP and PI are that only firms which are Bargaining Council (BC) compliant at the time of application qualify for support. However, under the circumstances the dti believes that these schemes should target all firms needing support and help prevent their closure. For this reason, the dti has allowed a relaxation of the rules to encourage BC non-compliant firms to also draw on the schemes to assist them to upgrade their competitiveness within a decent work framework. Therefore firms which are not currently BC compliant may potentially access the programme provided that they become compliant within a prescribed timeframe. The Department of Labour will play a leading role in this regard.

Question [2857]

Ms C M P Kotsi (Cope) to ask the Minister of Trade and Industry:

Whether he will introduce further quotas on the import of Chinese clothing and textile products to curb the number of job losses resulting from these imports; if not, (a) why not and (b) what other measures are being (i) implemented or (ii) considered to assist the local clothing and textile sector in its struggle to compete with these products that are flooding the market; if so, what are the relevant details? NW3540E

Response:

There are no immediate plans to introduce quotas on the import of China clothing and textile products, as the government could not secure the agreement of the Chinese government in such measures.

There is ongoing work to assist the local clothing and textile sector in other equally important respects, such as with illegal imports and under-­invoicing, in which the dti is cooperating with South African Revenue Services and the South African Police Service.

the dti has established the Clothing and Textiles Competitiveness Improvement Programme (CTCIP) and the Production Incentive (PI) to enhance the global competitiveness of the textiles and clothing sectors. Specifically these programmes seek to upgrade processes, products, machinery, technology and skills development. The objective is to move the industry up the value chain to activities that are competitive and sustainable in the medium to long term.

the dti believes that through these measures, among other, jobs in the sector can be saved, and with time, job losses can be reversed.

Question 2856

Ms C M P Kotsi (Cope) to ask the Minister of Trade and Industry:

Whether his department conducted a study to ascertain the percentage of previously disadvantaged employees who had been direct beneficiaries of Black Economic Empowerment; if not, (a) why not and (b) when will such a study be conducted; if so, what are the relevant details?NW3539E

Response:

One of the instruments to promote participation of black people in the ownership element of Broad-Based Black Economic Empowerment is through Employee Share Ownership Plans (ESOPs).

The BEE Codes under statement 100 paragraph 4 encourages the participation of black employees through the ESOPs. Many companies use this plan as part of the Strategic Retention Plan, and therefore there would normally be conditions attached to the allocation of the shares to each employee. Our desktop analysis, based on the company announcements on their BEE transactions, revealed that in most cases these shares are allocated on the basis of, amongst other, seniority and the length of service in the company.

The table below shows examples of how some of the companies have allocated ESOP shares to their employees. Please note that these are estimates as at the time of announcement of each transaction.

The Department of Labour, (DOL) is the custodian of Employment Equity Act, which seeks to achieve equity in the workplace, by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination. Furthermore, the Act implements affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce.

Whilst the DOL compiles statistics and reports with regards to the Employment Equity Act on an annual basis, since 2007/08, the dti in collaboration with the Presidency and Presidential Black Business Working Group conducted the baseline study on the implementation of BBBEE across all sectors of the economy. The main purpose of the study was to determine the level of compliance with regards to the implementation of BBBEE. The overall outcomes of the baseline study indicated that the economy was at level 8, and as indicated by the recent Employment Equity Report for 2010, the application of the Employment Equity element of the BBBEE Scorecard was 36.7%, which is an indication that there has not been any significant improvement in this regard.

QUESTION: 2839

2839. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether he will publish the (a)(i) structure and (ii) value of the investment in terms of (aa) grants, (bb) loans and (cc) any other financial support and (b) (i) number, (ii) nature and (iii) duration of jobs created by the Ferrostaal's investment in a certain company to finance a certain motion picture (details furnished) as part of their arms deal offset obligations; if not, why not; if so, what are the relevant details, in each case?NW3521E

Response:

(a) The Ferrostaal contribution was part loan, part grant. The total value of the contribution was €6 million or ZAR75 million. Half this amount was provided in the form of a loan and the other half as a grant. The terms of the loan include preferential interest rates. 85% of the total budget of R250 million is to be spent in SA. The detailed terms of this contract was agreed upon by the parties. The dti is not party to this agreement.

(b) The making of this film is still in pre-production and hence it is premature to report on the realization of the number of jobs. It is estimated that 28 000 direct and indirect jobs will be created over a two year period of the making of the film. Included in this estimate are jobs in companies providing supply side services such as set builders, carpenters, seamstresses, designers, drivers, caterers, security personnel and so forth.

The project will have a positive impact on the film sector and in related supply side industries such as the music industry. The film will support skills development in the sector and will play a role in ongoing efforts to market South Africa as a suitable destination for film productions and to profile South Africa in general terms.

Question: 2812

The Leader of the Opposition (DA) to ask the Minister of Trade and Industry:

With reference to the President's recent visits to (a) India and (b) Russia, (i) what is the name of each person who formed part of the business delegation that accompanied the President on each of these visits, (ii) which company or entity did each of these persons represent, (iii) which persons in this delegation are members of the Progressive Business Forum and (iv) on what grounds was each individual invited to form part of the delegation;

Response

I. 380 persons attended the State visit for India and 177 attended for Russia. Due to the competition sensitivity of the information and the business delegates' expectation of confidentiality of the information provided to the department, the dti does not publicise the business delegates' list.

II. The individuals represented respective private sector companies, chambers of commerce and' industry associations, industrial development zones, provincial investment agencies, developmental financial institutions, Banks and State Owned Entities.

III. the dti invites individual companies based on sectors, investment and trade complementarities and potential with the country concerned. In addition, the dti receives a consolidated list of individuals invited by Business Unity South Africa. Membership of any interest group, body or political organisation is not part of the criteria for inviting business delegates on State visits. Therefore, the dti is unable to identify delegates who belong to the Progressive Business Forum.

IV. See (Hi) above.

(2) NW3493E

Whether the State paid any costs incurred by any member(s) of any trade or business delegation(s) that accompanied the President on each of these visits; if not, why not; if so, what are the relevant details in terms of (a) accommodation, (b) airfares, (c) transport. (d) security, (e) entertainment and (f) any other specified expenses?

Response

Members of the official business delegations cover their own transport and accommodation costs, and in certain instances the dti provides ground transport for the business delegation to follow the official business program. the dti provided transport and accommodation costs to the emerging businesses owned by young entrepreneurs to accompany the President on the official state visit to India and Russia (five (5) companies for Russia and twelve (12) companies for India). The companies were recruited through the National Youth Development Agency, and the objective is to provide the young entrepreneurs exposure to the international business environment and to networks for potential partnerships and mentorships. No security and entertainment was provided by the dti.

Question 2786

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

Whether, with reference to the irregular expenditure of R1,889 million in the 2009-10 financial year which was revealed in the audit of his department, any disciplinary action was taken against any officials; if so, (a) what are the (i) names and (ii) designations of the officials against whom disciplinary proceedings were instituted and (b) what are the further relevant details?NW3466E

Response:

Department of Trade and Industry

(a) (i) (ii) to(b) The details are as follows:-

Question: 2785

2785. Mr J F Smalle (DA) to ask the Minister of Trade and Industry:

(1) (a) How many (i) litigious claims were lodged against his department in the 2009-10 financial year and (ii) of these claims is his department opposing, (b) what is the nature of each specified claim, (c) on what date were legal proceedings instituted in each case, (d) how many of these claims (i) have been concluded and (ii) are currently before the court and (e) what total cost has his department incurred in opposing these claims;

(2) whether his department has successfully opposed any of the litigious claims that had been lodged against it in the past two years; if not, what is the position in this regard; if so, (a) how many cases has his department opposed successfully, (b) in how many cases was an adverse finding made against it and (c) what are the relevant details with regard to each specified case? NW3465E

Response:

(1) (a)(i) 17 litigious claims were lodged against the department in the 2009/2010 financial year.

(a)(ii) Of the 17 claims, 13 were opposed by the department.

(b) & (c) The nature of claims and dates of legal proceedings are enlisted hereunder:

(d)(i) 11 matters were concluded.

(d)(ii) 6 matters are before court and are pending legal proceedings.

(e) Total costs incurred in such matters cannot be determined due to pending legal proceedings and outstanding invoices from external legal professionals in pending matters. Once matters are finalised, legal professional representing the department will submit their invoices for payment.

(2) Yes, litigious claims were successfully opposed in the last two years.

(a) Of the 7 matters litigious claims, 1 matter was opposed successfully.

(b) 1 matter had an adverse finding.

(c) The details of each case are as follows:

-Successful case:

Legislation was challenged as being unconstitutional. The court found this not to be the case and the legislation retained its validity.

- Unsuccessful case:

This was a breach of contract matter. The court found that the other

Party sufficiently proved their case and that the dti was in breach of the contract.

QUESTION FOR WRITTEN REPLY

2779. Dr P J Rabie (DA) to ask the Minister of Trade and Industry:

Whether any companies made any representation to the Government regarding Zimbabwe's new indigenisation law, which could force all foreign companies to transfer up to 51 % of their shareholding to Zimbabweans; if so, what are the relevant details?NW3457E

Response:

No South African company has made a representation requesting the South Africa Government's assistance regarding the Zimbabwean Indigenisation Act.

The Indigenisation Act is to our knowledge a law that predates the Zimbabwean Government of National Unity.

The Indigenisation and Economic Empowerment Act,(14/2007) came into effect in 2007, and requires that at least fifty-one (51) percent of the shares of every company is owned by indigenous Zimbabweans. The Act specifies that any merger or restructuring of any shareholding of two or more related or associated businesses or acquisition by a person of a controlling interest in a business is approved only in the event that fifty-one percent in the merged or restructured business is held by indigenous Zimbabweans and, the indigenous Zimbabweans are equitably represented in the governing body of the merged or restructured entity. Any unbundling of a business or demerger of two or more businesses is also approved only when fifty-one per cent in any such resulting business is held by indigenous Zimbabweans.

In summary, the Act affects new companies, or mergers and acquisitions and restructuring of existing companies. These must be referred to the minister for approval. All existing companies with total assets of over US$500,000 are required to submit their 5 year plan for indigenisation to the minister within 45 days, effective from 1 March 2010.

QUESTION N0 2770

Mr M G Oriani-Ambrosini (IFP) to ask the Minister of Trade and Industry:

Whether he intends introducing legislation to develop a system of public recording of secured transactions to enable businesses to raise additional credit by using a broader range of their assets as collateral; if not, why not; if so, (a) when, (b) when will each such legislative stage begin, (c) what is the intended completion date and (d) what are the further relevant details? NW3447E

Response:

The National Credit Act ("the Act") regulates the credit market and issues relating to access to credit. However, the Act does not apply to a juristic person whose asset value or annual turnover of all related juristic persons, at the time of the agreement is made, equals or exceeds R1 Million a year. These businesses are at liberty to determine methods to secure debts and may use their assets as collateral. This occurs as a matter of the operation of the law of contract which may be structured in such a way that the borrower is unable to alienate the assets pledged as collateral without the specific consent of the lender during the loan period. The prospect of a criminal prosecution for fraud also reduces the risk to the lender.

QUESTION N0 2678

Mr M H Steele (DA) to ask the Minister of Trade and Industry:

(1) Whether he received advice from the National Lotteries Board in the past two years regarding (a) the percentages of money to be allocated to the different distributing agencies, (b) the efficacy of legislation, (c) the establishing and implementation of a social responsibility programme and (d) any other matters regarding the functioning of the National Lottery or the Lotteries Act as required in terms of the Lotteries Act, Act 57 of 1997; if so, what are the relevant details in each case;

(2) Whether this advice was given in terms of a formal decision of the National Lotteries Board; if not, what is the position in this regard; if so, what are the relevant details? NW3338E

Response

(1) (a) – (d) The Minister received advice from the Board as required in terms of section 10 of the Lotteries Act regarding the percentages of money to be allocated and the efficacy of legislation. The Board and the Distributing Agencies have made recommendations to the Minister on the areas that require improvements. These were discussed in round-table discussions chaired by the Department of Trade and Industry and culminated in Regulations published in the Government Gazette No. 33398. Further improvements that require legislative amendments have been identified and are in the process of being processed for public consultation and parliamentary process. The establishment and implementation of the social responsibility programme is contained in the licence to operate the National Lottery.

(2) The advice on specific matters in terms of section 10(k) was given following a formal board resolution.

QUESTION N0 2654

Mr A P van der Westhuizen (DA) to ask the Minister of Trade and Industry:

(1) (a) How many entities are currently listed on the Companies and Intellectual Property Registration Office (Cipro) database and (b) for how many of these entities has Cipro listed (i) email addresses and (ii) numbers for sending short messages (SMSs) to the entities or their directors;

(2) whether Cipro has adopted a policy to capture this information onto their database; if not, why not; if so, what are the relevant details;

(3) to what extent does Cipro currently use forms of electronic communication to inform entities listed on the database of changes to their details on the database? NW3312E

Response:

(1)(a) According to Cipro, there are currently 280 903 Companies, 1 652 212 Close Corporations and 35 760 Co-operatives on the database.

(1)(b)(i)According to Cipro, there are 5 006 email addresses for Companies, 236 107 for Close Corporations and 1 187 for Co-operatives.

(ii) According to Cipro, currently there are 177 742 cell phone numbers listed.

(2) According to Cipro, a policy was adopted as part of the Annual Returns requirements to request contact details as a mandatory requirement and this includes:

· Telephone Numbers;

· Fax Numbers;

· Email Addresses;

· Cell-phone Numbers and Website Addresses.

Further, as part of the registration process to use electronic services of Cipro, customers are expected to furnish such information for Cipro's records. However, as this is not yet a statutory requirement, customers elect not to provide all contact details.

(3) According to Cipro, they are currently only informing the applicants who have elected to receive communication via email, of the changes made on the details of an entity on their database.

QUESTION FOR WRITTEN REPLY

QUESTION 2634

2634. Mr D J Maynier (DA) to ask the Minister of Trade and Industry:

Whether any consultants were contracted to provide services in respect of the National Industrial Participation Programme related to the Strategic Defence Package; if not, why not; if so, in each specified case, (a) what is the name of the (i) person or (ii) company contracted, (b) what services were provided, (c) what is the title of the report, (d) what were the (i) key findings and (ii) key recommendations in the report and (e) what was the (i) total cost and (ii) breakdown of such costs to provide these services? NW3289E

Response:

The National Industrial Participation Programme (NIPP) has drawn upon consultants over the years but only two have been contracted specifically in relation to the Strategic Defence Package (SDP) itself.

The consultants appointed specifically for the SDP, or a portion thereof, were SAB and T Chartered Accountants Inc and NAD Auditors. SAB & T were contracted by the dti on behalf of the Department of Defence (DoD) and this appointment related to the proposed project by BAE Systems and SAAB to partake in a demilitarization project with the DoD. The value of the contract was R176 000. The objective of the report was to ensure that the business plan proposed by the obligor provided Government with value for money for the service provided i.e that Government was not paying an excessive amount. The report found that Government was not getting optimal value.

NAD Auditors was contracted to do an assessment of the Denel SAAB Aerostructures (DSA) project that was supported by BAES and SAAB under their obligations arising out of the Grippen/Hawk Programme. The key purpose of this report was to ascertain if the commitments put forward by all parties were delivered on. The key finding of the report was that there was a level of delivery on key performance areas and those not met were due to reasons beyond the obligor's sphere of influence. The value of the contract amounted to R319 200.

QUESTION: 2634

QUESTION FOR WRITTEN REPLLY

2634. Mr T D Harris (DA) to ask the Minister of Trade and Industry:

Whether he will publish the (a)(i) structure and (ii) value of the investment in terms of (aa) grants, (bb) loans and (cc) any other financial support and (b) (i) number, (ii) nature and (iii) duration of jobs created by the Ferrostaal's investment in a certain company (name fumlshed) to finance a certain motion picture (details furnished) as part of their arms deal offset obligations: if not, why not; if so, what are the relevant details, in each case? NW3521 E

Response:

(a) The Ferrostaal contribution was part loan, part grant. The total value of the contribution was €6 million or ZAR75 million. Half this amount was provided in the form of a loan and the other half as a grant. The terms of the loan include preferential interest rates. 85% of the total budget of R250 million is to be spent in SA. The detailed terms of this contract was agreed upon by the parties. the dti is not party to this agreement.

(b) The making of this film is still in pre-production and hence it is premature to report on the realization of the number of jobs. It is estimated that 28 000 direct and indirect jobs will be created over a two year period of the making of the film. Included in this estimate are jobs in companies providing supply side services such as set builders. carpenters, seamstresses, designers, drivers, caterers, security personnel and so forth.

The project will have a positive impact on the film sector and in related supply side industries such as the music industry. The film will support skills development in the sector and will playa role in ongoing efforts to market South Africa as a suitable destination for film productions and to profile South Africa in general terms.

Question 2605

Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

(1) Whether his department made use of any consultants since the 2004-05 financial year; if so, (a) how many (i) consultants and (ii) consultancy firms were used in each financial year, (b) what are their names in each case, (c) what amounts were paid to each (i) consultant and (ii) consultancy firm in each financial year and (d) who are the directors of each of the consultancy firms used by his department since the 2004-05 financial year;

(2) whether any of the consultants or consultancy firms were previously employed by his department; if so, (a) who are they, (b) why did they leave the employ of his department and (c) what is the total financial value of the remuneration paid to each such consultant?NW3255E

Response:

Information as requested is only available as from 2006 and is recorded as attached: