Questions & Replies: Trade & Industry
2011-03-07
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QUESTION 3809 FOR WRITTEN REPLY
3809. Mrs S V Kalyan (DA) to ask the Minister of Trade and Industry:
Whether any other persons have driven (a) his and (b) his Deputy Ministers' official blue light fitted vehicles; if not, what is the position in this regard; if so, in each case, in respect of the (i) 2009-10 and (ii) 2010-11 financial years, (aa) what is each specified person's (aaa) name and (bbb) designation, (bb) which vehicle and (cc) why?NW4600E
Reply
(a),(b) No unauthorised persons.
QUESTION 3676 FOR WRITTEN REPLY
3676. Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
(1) With reference to his reply to question 3307 on 7 November 2011, what are the full details of the R3.8 million pay-out to project number 46506 in the Khara Hais Municipality;
(2) with reference to the disclosure by the National Lotteries Board on page 75 of its 2011 annual report, what (a) are the names of and (b) total amount paid out to, each of the ten beneficiaries to whom payments to the value of R10 217 295 million were disbursed? NW4458E
RESPONSE:
According to the National Lotteries Board:
(1) The sum of R3,8 million was awarded in 2 tranches of R1,9 million each. The grant was made for the upgrading of the Karos, and Kalsloot sports fields.
(2) Refer to table on next page
TABLE to Q 2
| Name of Beneficiary | Project number | Amount allocated | Amount Paid as at 31.02.2011 |
| Retina SA (Northern GP) | 42457 | R 169,000.00 | R 169,000.00 |
| Child Welfare SA (Kimberley) | 42658 | R 1,796,914.00 | R 1,796,914.00 |
| Epilepsy SA (FS and NW) | 43038 | R 2,464,987.00 | R 2,464,987.00 |
| Vrystaat Versorging in Aksie (Heilbron) | 44140 | R 131,000.00 | R 0.00 |
| Christian Social Services Council Linden | 44149 | R 798,529.00 | R 798,529.00 |
| We Are Not Alone Caregivers | 44150 | R 2,666,200.00 | R 2,666,200.00 |
| Living Waters Ministry | 44154 | R 1,180,804.00 | R 1,180,804.00 |
| Get Ready Information Services | 44177 | R 600,000.00 | R 300,000.00 |
| National Council for Persons with Physical Disabilities | 44178 | R 330,861.00 | R 330,861.00 |
| Pietermaritzburg & District Cerebral Palsy Association | 44703 | R 1,079,000.00 | R 1,079,000.00 |
| TOTAL*** | R 11,217,295.00 | R 10,786,295.00 |
***Please note that the figure stipulated in the Annual Report reflects the findings of the Auditor-General. These findings are understated by R1m when compared to actual allocation.
QUESTIONS 3672 FOR WRITTEN REPLY
16 November
3672. Mr T D Harris (DA) to ask the Minister of Trade and Industry:
(1) Why did the (a) director: Asia Bilateral, (b) deputy director: Asia Bilateral, (c) deputy director: Investment Promotion and Facilitation and (d) deputy director: Export Promotion accompany him on his trip to the Rugby World Cup from 8 to 11 September 2011;
(2) whether there are any achievements to report from this trip; if not, how can the R252 000 bill for the trip be justified; if so, what are the achievements? NW4454E
Response
There has been no trip to the Rugby World Cup. Officials of the dti were part of the South African delegation that was scheduled for a bilateral engagement with New Zealand to promote bilateral trade and investment relations. the dti officials engaged with counterparts from the New Zealand Ministry of Foreign Affairs and Trade (MFAT) to develop a work programme to promote trade and investment based on the recommendations arising from the study jointly commissioned by both sides. The officials were also responsible for arranging and facilitating the Business Seminar, which was attended by 80 companies and addressed by both the Deputy President and Minister of Trade and Industry.
The outcome of these engagements will involve further work to promote trade and investment in the areas of renewable energy and titanium powder production industry.
QUESTION 3648 FOR WRITTEN REPLY
3648. Mr A P van der Westhuizen (DA) to ask the Minister of Trade and Industry:
(1) Whether any cases where the details of companies in the register were changed fraudulently, to effect so-called company hijackings, have been identified by (a) the CIPC or (b) its predecessor, the Companies and Intellectual Property Registration Office (Cipro), during the period 1 January 2011 up to the latest specified date for which information is available; if so, what are the relevant details;
(2) whether any progress has been made in the forensic investigation into the (a) fraudulent removal and/or (b) instatement of directors of companies; if not, why not; if so, what are the relevant details;
(3) whether a certain person (name furnished) who has been placed on precautionary suspension, was still suspended; if not, what were the results of the investigation; if so, what are the reasons for the delay in finalising the matter;
(4) whether there are any staff from CIPC who have been suspended for more than 90 days; if so, (a) what are the (i) dates and (ii) duration of suspension and (b) why have these cases not been resolved? NW4429E
Response:
According to the Companies and Intellectual Property Commission:
(1).
| DATE | ENTITY NAME | DETAILS | |
| 1 | 29/8/2011 | DC office Samantha Munawar | Trademore Company Hijacking Status changes returned to original before amendments took place. File referred to Investigations |
| 2 | 12/10/2011 | Referral from T Tina on behalf of D Lambert from Edward Nathan Sonnebergs attorneys on behalf of company 3thr Space Fitness Holdings (Pty) Ltd | Allegations of unlawful removal of Directors Cannot correct any details until the allegations of fraud by CIPC and against the Directors are investigated |
| DATE | ENTITY NAME | DETAILS | |
| 3 | 12/10/2011 | Hennie van Loggenberg on behalf of Vicensys (Pty) Ltd | Unknown Unauthorized amendments of details |
| 4 | 14/10/2011 | Referral from DC office on behalf of Isabel Roodt of A Million Up Investments 48( Pty) Ltd | Unknown Unauthorised amendments of details |
| 5 | 17/10/2011 | Emoyeni 107 Boundary Road (Pty) Ltd | Ex husband acting in contravention of divorce settlement Unauthorized amendments of details |
| 6 | 17/10/2011 | Form CoR 168 Montshepetsa Bosiu Framing and Training Centre (Section 21) Not for Profit company | Unauthorized changes constitutes false filing |
| 7 | 21/10/2011 | OIC Group Charles Elliot | Skin Chrome cc and M A Berg Allegations of backdating changes to member details to circumvent a judgment |
| 8 | 29/9/2011 | Deputy Commissioners office on behalf of Odilia de Gouveia | Marksman Trainer (Pty) Ltd Company Hijacking |
| 9 | 29/9/2011 | Florus Visser | Lamar Projects cc Change of details without authority |
| 10 | 7/11/2011 | CoR 135.1 Heinrich Hertzog | Unlawful Removal of valid directors of the Our Lady Mary's College (Pty) Ltd |
(2) One of the 10 cases was resolved and the directors reinstated. The remaining nine cases are currently under investigation.
(3) Mr. Sindile Taunyane was suspended on 21 January 2011 and dismissed on 08 April 2011 for company hijackings.
(4) Since the CIPC was established on 01 May 2011, no official was suspended for more than 90 days.
QUESTION 3645 FOR WRITTEN REPLY
3645. Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
(1) whether he has been informed that staff at the National Consumer Commission (NCC) have brought complaints against a certain person (details furnished); if so, what are the relevant details; if not,
(2) whether he will investigate the matter, if not, why not; if so, when;
(3) whether he will launch an investigation into the person's conduct; if not, why not; if so, when? NW4426E
Response:
1) Various matters have been brought to the attention of the Minister with regards to the National Consumer Commission and in particular the National Consumer Commissioner. Such complaints relate to the implementation of the transitional arrangements between the dti and the National Consumer Commission, terms and conditions of employment of staff, the relocation of the offices of the National Consumer Commission and conduct of officials.
2) An investigation into the NCC issues is currently being conducted.
3) The Minister has appointed a service provider to conduct an investigation.
QUESTIONS 3629 FOR WRITTEN REPLY
3629. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:
Whether the Government intends to alter existing trading paradigms by restructuring its economies to support (a) the addition of value, (b) industrialisation and (c) intra-African trade; if not, why not; if so, how does he intend to alter existing trading
Response
South Africa has supported the view that trade must support our industrial development and employment growth objectives. This has guided our engagement in our bilateral, regional and multilateral engagements.
We have sought to advance these objectives in our engagement in the WTO and the Doha Round. South Africa is concerned that the development mandate agreed at Doha in 2001 has been steadily eroded. Continued agricultural protection and subsidies in developed countries undermine the developmental prospects for a large number of developing countries, including many in Africa. The demand for greater access to the industrial product markets of emerging developing countries is particularly harsh on South Africa which would be required to take wide and deep tariff cuts in industrial products. Acceding to these demands would undermine our industrial and employment objectives. In our ongoing engagement in the Doha Round, we have worked to build alliances with other like-minded developing countries to reclaim the development mandate. South Africa has sought an outcome that addresses our specific sensitivities in industrial tariffs. We have resisted and will continue to resist outcomes that are unfair, un-mandated and anti-development.
At the regional level, we have advanced a developmental integration agenda which combines market integration, cross-border infrastructure and policy coordination, particularly in the areas of regional industrialization and economic diversification that could build the production capacity in regional economies. These efforts have taken forward in SACU, SADC and, more recently, in the Tripartite Initiative between SADC, the East African Community (EAC) and COMESA. With forecasts for continued growth in Africa, regional integration can provide additional impetus to growing intra-African trade.
At bilateral levels we have sought to promote exports of value added products and inward investment to support our industrial development objectives.
Question 3584
Mr SP Lebenya-Ntanzi (IFP) to ask the Minister of Trade and Industry:
(1) Whether any officials in his department (a) have been investigated, (b) are currently under investigation and (c) have been charged for alleged (i) corrupt or (ii) fraudulent activity; if so, what are the relevant details;
(2) whether any disciplinary action has been taken against employees of his department for (a) fraud and/or (b) corruption; if so, (i) how many instances of disciplinary actions have (aa) been finalised and (bb) not been finalised and (ii) in each case, (aa) what sanctions have been meted out and (bb) how long has it taken to finalise such disciplinary actions;
(3) whether he has found that his department has adequate investigative capacity inclusive of manpower and infrastructure in respect of disciplinary proceedings; if not, why not; if so, what are the relevant details? NW4361E
Response:
(1) (a) 4 officials investigated.
(b) 3 officials currently under investigation.
(c)(i) 1 employee on salary level 10 suspended charged for alleged corrupt activity.
(c)(ii) 1 employee on salary level 12 charged for alleged fraudulent activity.
(2)
| (a) Fraud | (b) Corruption | |
| (i) No. of instances disciplinary action taken | 1 | 1 |
| (i)(aa) Disciplinary action finalised | 0 | 0 |
| (i)(bb) Disciplinary action not finalised | 1 | 1 |
| (ii)(aa) Sanctions meted | 0 | 0 |
| (ii)(bb) How long disciplinary process | 308 days | 68 |
(3) Yes. The Department has a dedicated forensic audit unit, comprising of five (5) dedicated employees to conduct investigations. The Department has also appointed an external service provider on a three year contract to handle forensic investigations. Furthermore, the Department has an Employment Relations unit, comprising of three (3) dedicated employees to handle disciplinary matters only.
Question 3502
Mr R B Bhoola (MF) to ask the Minister of Trade and Industry:
(1) Whether any Lotto funds have been allocated to the Youth Centre (details furnished) in Durban; if not, why not, in each case; if so, (i) how much was allocated and (ii) what were the conditions for allocating these funds;
(2) whether the utilisation of the funds has been monitored; if not, why not; if so, what are the relevant details;
(3) how was the organisation selected to organise the Heritage Day function since no community centre exist in Phoenix? NW4177E
RESPONSE:
According to the National Lotteries Board (NLB):
(1) Funds were not allocated to the Youth Centre in Phoenix since no such application was received.
(2) Not Applicable (See answer to question 1)
(3) Not Applicable ( See answer to question 1)
Question 3479
Mr G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:
Whether his department intends appealing the Competition Commission and Competition Tribunal's decision on the Walmart/Massmart transaction; if not, why not; if so, on what grounds?
Response:
Government participated in the Competition Tribunal hearing in order to ensure that the public interest issues in the Competition Act are adequately addressed. This is consistent with the provisions of the Competition Act, which provides for government, through the Minister of Economic Development, to participate in the proceedings of the Competition Tribunal.
In the course of our participation, we made a request for the discovery of a number of documents and of information in the possession of Walmart, that were critical to show the impact of Wal-mart's purchase of a majority stake in Massmart on employment, historically disadvantaged and small businesses, spaza shops and supplier industries.
The Competition Tribunal did not order all the information which was required by our independent expert and by our legal counsel.
We asked for an opportunity to cross examine the witnesses of Walmart, Massmart and of some of the other parties who chose to intervene in the proceedings, However, our legal team was significantly constrained from properly and adequately cross examining the witnesses due to the scheduling decisions of the Tribunal.
It was our view that these decisions of the Tribunal formed compelling grounds for a review of the decision; that adequate discovery and time for cross-examination of witnesses would have assisted the Tribunal to consider the public interest harms arising from the merger (and particularly the negative effect on employment in South Africa) more fully and to have developed more appropriate and effective conditions for the transaction.
In our law, if an administrative body such as the Competition Tribunal does not give effect to the right to fair administrative action protected by the Constitution, parties to those proceedings can apply to a higher court for a review of the proceedings, and in this case we have requested that the matter be referred back to the Tribunal.
At the same time, the law provides for the right of appeal of the decision on grounds of law or facts. An appeal was lodged by the trade union who was part of the proceedings before the Tribunal. In terms of the Competition Act, the Minister of Economic Development may on behalf of government participate in any proceeding of the Competition Appeal Court in order' to make representations on public interest g rounds referred to in section 12A(3) of the Act.
Government's intervention in the Competition Appeal court must be seen in the context of the high unemployment levels in the country.
QUESTION 3365 FOR WRITTEN REPLY
3365. Ms D Carter (Cope) to ask the Minister of Trade and Industry:(Interdepartmental transfer on 25 November 2011)
(1) Whether the new SA Bureau of Standards laboratory complex in Groenkloof, Pretoria, fully met current good manufacturing process (GMP) and good laboratory process (GLP); if not, why not; if so, (a) how was this conclusion reached, (b) who participated in the inspection and (c) which international laboratories undertook a peer review to validate this standing;
(2) whether all the equipment on show at the time of the opening by the President had been purchased and not hired and is still in place; if not, what is the position in this regard; if so, what are the relevant details? NW4028e
Reply
1) Current Good Manufacturing Practices (cGMP) are regulations that manufacturers of pharmaceuticals, medical devices and food products comply with as they produce and test products for human consumption. The new SA Bureau of Standards laboratory complex in Groenkloof, Pretoria is not required to comply with cGMP because it is not a manufacturing facility.
Good Laboratory Practices (GLP) regulate quality systems of management control to ensure that results of tests carried out in laboratory facilities are consistent, reproducible and reliable. Whenever a whole laboratory facility is moved from one building to another, the international requirement is that the new laboratory goes into voluntary suspension until it has been reassessed and re-accredited for GLP compliance. This is currently in progress at the SABS.
2) All the equipment on show and demonstrated during the opening of the new laboratory is the property of SABS and is still in place.
Question 3307:
Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
Whether the National Lotteries Board awarded any funds to (a) nongovernmental organisations (NGOs) and (b) entities that did not (i) meet the required criteria of distributing agencies appointed by him and (ii) follow the correct procedure applicable in obtaining funding; if not, why not, in each case; if so, in each case (aa) what amount was allocated and (bb) to which NGOs and entities? NW3961 E
RESPONSE
According to the National Lotteries Board and as disclosed on p75 of its 2011 annual report:
(a) No
(b) (i) and (ii) Yes, to Manghezi High School & Khara Hais Municipality
The applicants did not comply with Regulation GNR 645 paragraph 4.1 (7) for Sport.
(a a) and (bb) R1 ,377,880 - Manghezi High School -Project Number 46161
R3. 800.000 - Khara Hais Municipality- Project Number 46506
Question No. 3227:
Mrs S V Kalyan (DA) to ask the Minister of Trade and Industry:
(1) Whether the SA Bureau of Standards has any measures for testing the ecological friendliness of cleaning products and chemicals; if so, what are the relevant details; if not, why not;
(2) What measures are currently used for testing cleaning products and chemicals for the South African market?
(3) Whether the degree of biodegradability of cleaning products and chemicals is specifically assessed; if not, why not; if so, what are the relevant details? NW3839E
Response:
(1) The South African Bureau of Standards (SABS) does not currently have any measures for testing the ecological friendliness of cleaning products and chemicals. SABS has however identified the need for a South African National Standard (SANS) for these products and a working group has been setup to do this work. The working group will develop SANS for the following; detergents: laundry detergents, dishwashing detergents and multipurpose cleaners.
The SANS will be benchmarked to the EU Ecolab. To date, the Working Group has developed a draft environmentally friendly laundry detergents standard, SANS 1134. SANS 1134 is in the process of finalization. The criteria for ingredients of these environmentally friendly detergents will be defined in the SANS including the degree of biodegradability of cleaning products and chemicals.
(2) The SABS currently tests a wide variety of cleaning products and chemicals for performance against the relevant standards and specifications for those products.
(3) SABS will in future be able to provide testing against the SANS including the biodegradability of the surfactant(s) used in the formulation once this work has been completed.
Question 3220
Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
(1) Whether any cases of bribery have been reported to (a) his department or (b) the National Lotteries Board (NLB) by non-governmental organisations (NGOs) concerning attempted bribery by distributing agents of NGOs; if so, how many cases were reported; if not,
(2) whether any investigation will be conducted into this matter; if not, why not; if so, what are the relevant details;
(3) whether his department investigated reported cases of bribery; if not, why not; if so, (a) how many cases, (b) what (i) were the outcomes of the investigation and (ii) actions are being taken against transgressors and (c) how many cases of bribery are still being investigated;
(4) what action is (a) his department and (b) the NLB taking to prevent such cases from recurring in future? NW3832E
Response:
(1)(a) One case was reported which was dealt with by the NLB.
(1)(b) Yes, 2 cases have been reported to the NLB.
(2) The matters have been investigated by the NLB and referred to the South African Police Services.
(3) 1 case is currently being investigated.
(4) The NLB together with the DTI have imposed a strict code of conduct and conflict of interest policy. The NLB has improved its verification process to include directorships of applicants. The NLB's "whistle blower" line should be fully operational before the end of 2011.
Question 3195
Mr R B Bhoola (MF) to ask the Minister of Trade and Industry:
(1) Whether, with reference to the R2.9 million Lotto grant paid out to the Phoenix Heritage event by the National Lottery Distribution Trust Fund (NLDTF), he has been informed that (a)(i) 25 stalls were hired at R4 000 each and (ii) the event was sponsored by certain companies (details furnished) and (b) the total cost of the event would not exceed R120 000; if not, what is the position in this regard; if so,
(2) whether he intends instructing the NLDTF to recall the unspent money; if not, why not; if so, what are the relevant details;
(3) whether he intends launching an investigation into this grant; if not, why not; if so, what are the relevant details? NW3802E
Response:
(1)(a)(i) No
(1)(a)(ii) No
However as the NLDTF did not approve the full amount applied for, the beneficiary would be entitled to source other funding.
(1)(b) No
According to the NLB:
The applicant (Phoenix Community Centre) applied for R4, 1 million in response to an advertised call for applications. A sum of R2, 9 million was allocated and payable in 2 tranches. The Grant Agreement determines the usage of the funds. The beneficiary, as is usual, would have to report on how the grant was utilised and show that the conditions of the Grant Agreement were adhered to.
Question 3191
Ms C Dudley MP (ACDP) to ask the Minister of Trade and Industry:
· What commodities are South Africa importing from Saudi Arabia and Iran;
· Why are exports to these countries minimal by comparison to our imports;
· What are the relevant details?
Response:
Iran and Saudi Arabia supplied 19.1% and 17.2% respectively, of all South Africa's mineral product imports up until August 2011.[1]
Up until August 2011, petroleum oil constituted 99.7% of all South Africa's imports from Iran. Other products imported were: Polymers of Ethylene (0.1%), Electrical Transformers (0.1%). South Africa imports from Saudi arabia are also dominated by petroleum oil which constituted 85.5 % of all our imports up until August 2011. Other imports from Saudi Arabia include: Acyclic Hydrocarbons (3.3%), Mineral or chemical fertilizers (3.1%), Polymers of Ethylene (2.9%), Cyclic Alcohols (1.5%) and Cyclic Hydrocarbons (1%).
Iran and Saudi Arabia are among the world's largest oil producers and exporters, and many countries around the world are highly dependent on oil imports from them. Together they supplied 36.3% of all South African oil imports in 2011.
Oil dominates our bilateral trade with these countries and, so, it important to distinguish between oil and other commodities traded. In this regard, South Africa exported goods to the value of R485.7 million up until August 2011 to Iran, compared to non oil imports from Iran of R66.1 million. This means South Africa has a trade surplus with Iran if oil is discounted. In the case of Saudi Arabia, South Africa exported goods to the value of R1.9 billion up until August 2011, and imported non-oil products of R2.9 billion.
[1] All statistics taken from http://apps.thedti.gov.za/econdb/raportt/defaultrap.asp#1
QUESTION 3081 FOR WRITTEN REPLY
3081. Mr P van Dalen (DA) to ask the Minister of Trade and Industry:
(1) Whether (a) he, (b) the Deputy Ministers and (c) any senior officials of his department intend to visit or have visited New Zealand during the 2011 Rugby World Cup Tournament; if so, what is the (i)(aa) name, (bb) rank and (cc) position or designation of each specified person accompanying (aaa) him, (bbb) the Deputy Ministers and (ccc) each specified senior official and (ii)(aa) nature and (bb) official reason for the visit;
(2) what (a) total amount will be spent or has been spent on the trip and (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs?NW3603E
Response:
(1) (a) (c) (i) (aa) (bb) (cc) (aaa) (ccc) (ii) (aa) (bb)
| Name | Rank / Position / Designation | Nature / Official Reason |
| Rob Davies | Minister | Accompanying Deputy President Motlanthe on an official visit to New Zealand from 8 – 11 September 2011: Further engagements included, Enterprise and Trade: New Zealand and participation in a Business Seminar attended by business delegations from South Africa and New Zealand. In addition, an official's level meeting was held with the New Zealand Ministry of Foreign Affairs and Trade. |
| Phillip Mtsweni | Director: Asia Bilateral | |
| Seabelo Molepolle | Deputy Director: Asia Bilateral | |
| Dean Hoff | Deputy Director: Investment Promotion and Facilitation | |
| Kenneth Malatsi | Deputy Director: Export Promotion |
(2) (a) (b) (i) (ii) (aa) (bb) (cc)
It should be noted that expenditure related to accommodation and transport for Minister Davies during this trip was covered by the New Zealand Government.
| Rob Davies | Phillip Mtsweni | Seabelo Molepolle | Dean Hoff | Kennith Malatsi | |
| Accommodation | 0.00 | 5,600.00 | 5,600.00 | 5,600.00 | 5,600.00 |
| Travel | 72,078.00 | 33,674.00 | 33,674.00 | 33,674.00 | 33,674.00 |
| Subsistence | 4,025.60 | 4,772.82 | 4,811.94 | 4,811.94 | 4,644.97 |
| Total | R76,103.60 | R44,046.82 | R44,085.94 | R44,085.94 | R43,918.97 |
Total cost: R252,241.27
Question 3168
Mr G G Hill-Lewis (OA) to ask the Minister of Trade and Industry:
Whether he intends to implement measures to ensure that the requiredspecifications for export to the EU are compliant with the protection of intellectualproperty rights for South African goods; if not. why not; if so. what (a) measures and(b) are there further relevant details?
Response:
South Africa fully complies with its international obligations to protect intellectual property rights as set out in the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organisation (WTO). As a member of the WTO the EU is also required to comply with the same international obligations.
Under the Trade Development and Cooperation Agreement between South Africa and the EU. South Africa agreed to phase out the use of certain names. Notably "port". "sherry". "grappa". and "ouzo". This undertaking and the protection provided in the TRIPS agreement provide the legal basis for our trade in goods with the EU as it
relates to intellectual property protection. Moreover, international obligations and standards are incorporated into various pieces of domestic legislation including through the General Intellectual Property Amendment Act. the Trade Marks Act, the Merchandise Marks Act, and the Counterfeit Goods Act. South African law also provides specific protection for geographic indications (Gis) for wine under the wines of origin scheme administered in terms of the Liquor Products Act.
The overwhelming bulk of South Africa's exports to the EU, including in agricultural products and wine, do not incur restrictions related to intellectual property protection. However, there have been instances where the EU has indeed restricted some South Africa's agricultural and wine exports. The reasons for these periodic restrictions include erroneous and inconsistent interpretation and application of EU intellectual property law amongst different EU member states. lack of a common understanding on how to deal with situations where trademarks and geographic indications overlap. and unclear application of EU labeling requirements.
Where South African exports have been blocked by erroneous, inconsistent, arbitrary, or discriminatory application of law, the South African government has sought to address the situation through engagement with the European Commission. In some cases, though not all, our interventions have been successful. The Government will continue these efforts where the situation warrants. Moreover, in our ongoing engagement with the EU in the Economic Partnership Agreement (EPA) negotiations, we have proposed to institutionalise a mechanism that will monitor and address such non-tariff barriers to our exports on an ongoing basis
Question 2997
Dr P J Rabie (DA) to ask the Minister of Trade and Industry:
(a) How many vacancies exist within the Estate Agency Affairs Board and (b) what steps has he taken to (i) fill these vacancies and (ii) improve the operational efficiency of the board? NW3481E
Response:
(a) How many vacancies exist within the Estate Agency Affairs Board
There are seven vacancies currently on the Board
(b) what steps has he taken to (i) fill these vacancies
A call for nominations was made, followed by a short-listing and interview process. Recommendations have been made to fill three vacancies and a further process will be undertaken to fill the four remaining vacant positions.
b) what steps has he taken to ….(ii) improve the operational efficiency of the board?
The EAAB is implementing a turn-around strategy that is specifically designed to improve its services rendered to estate agents, consumers and allied stakeholders. The key to this strategy is as follows:
- The effective use of alternative dispute resolution mechanism to settle consumer complaints;
- The improvement of turn-around times for the finalisation and/or hearing of complaints against estate agents; and
- The improvement of turn-around times relating to the consideration of claims against the Estate Agents Fidelity Fund,
As of 1 October 2011, applications can be made on-line, for the registration of new estate agents and the renewal of fidelity fund certificates (or licences to operate) in respect of already registered estate agents. The EAAB anticipates that this innovation will reduce the turn-around times for the renewal of fidelity fund certificates to 48 hours and for the issue of fidelity fund certificates in respect of entirely new applications for registration to approximately ten working days.
The EAAB intends conducting routine and special inspections of estate agency undertakings before the end of this financial year.
In addition, the EAAB will be involved in appropriate staff training and skills development including the initiation of a staff retention and succession programmes. A performance management system will be implemented shortly.
Question 2983
2983. Mr N Singh (IFP) to ask the Minister of Trade and Industry:
(1) (a) What are the details of the staff complement that is currently employed in the Charities Category of the National Lotteries Board, (b) how many vacancies are there in the specified department at present and (c) how many applications for funding have been received by 25 March 2011 in terms of the call for funding applications in the Charities Sector;
(2) whether he intends to increase the capacity of the Charities Category of the National Lotteries Board to ensure that applications are dealt with rapidly and effectively; if not, why not; if so, what are the relevant details? NW3467E
Response:
According to the National Lotteries Board:
(1)(a) Charities Distributing Agency (Board) – 8 members
Support staff - 27 staff members
(1)(b) 2 staff vacancies exist in Charities Department
(1)(c) Total number of Charities Applications Received- 2011 (closing date of call: 25 March 2011) = 8485
(2) The NLB has embarked on an Organisational Diagnosis process to ascertain capacity requirements.
QUESTION 2971 FOR WRITTEN REPLY
2971. Mr M A Nhanha (Cope) to ask the Minister of Trade and Industry:
(a) Which projects/programmes that have emanated from or are directly linked to the arms deal of 1999 resulted in (i) skills transfer and skills development, (ii) job creation and (iii) international cooperation on advanced military training, (b)(i) which of the originally planned projects/programmes have not taken off and (ii) why have these projects/programmes not taken off and (c) what steps has he taken to ensure that the terms of the contracts are fulfilled and honoured? NW3448E
Response:
a. the dti manages the non-defence related aspects of the obligation through the National Industrial Participation Programme (NIPP) and all military/related aspects are managed by Armscor as part of the Defence Industrial Programme (DIP)
(i) Projects approved under NIPP had the intended objectives of either attracting investment or promoting export of local manufactured value-added products. Skills transfer and skills development would have flowed from most of the projects and the dti has not specifically tracked the extent to which skills transfer occurred.
(ii) All projects approved had to satisfy a criteria of either creating new jobs or the retention of existing jobs, which would have been lost without the involvement of the obligors in the projects. In 2009, the dti conducted a Socio Economic Impact Assessment, which estimated NIPP projects that are part of the Strategic Defence Procurement (SDP) package created or retained direct jobs of 21 745 and indirect jobs of 51 000.
(iii) The NIP programme deals with civilian activities. All projects related to military are managed by Armscor as part of the Defence Industrial Programme (DIP).
b and c. Some initial project proposals were not implemented in their original form, either because they proved not to be viable at pre-investment stage or because of external constraints. Where this occurred obligors were required to substitute such projects with viable projects of the equivalent value of credits as the original project proposal.
QUESTIONS 2967 FOR WRITTEN REPLY
2967. Mr L S Ngonyama (Cope) to ask the Minister of Trade and Industry:
Whether his department has any plans in place to stimulate intra-continental trade in Africa; if not, why not; if so, what are the relevant details? NW3443E
Response:
the dti pursues a range of activities to promote intra-continental trade in Africa. We have advanced this agenda in the context of a developmental integration approach to regional integration which combines market integration, cross-border infrastructure and policy coordination, particularly in the areas of regional industrialization and economic diversification that could build the production capacity in regional economies. These efforts have taken forward in SACU, SADC and, more recently, in the Tripartite Initiative between SADC, the East African Community (EAC) and COMESA.
In SACU, the work programme on regional industrial development has focused on building an overall policy framework for regional industrialisation, alongside the identification of specific areas of collaboration and interventions to build cross-border, complementary value chains. Areas of possible collaboration have been identified including agro-processing, automotive and component manufacturing, clothing, and mineral beneficiation, amongst others. SACU work on trade facilitation is led by our respective customs authorities to reduce transaction costs and speed up transit of goods and services across SACU internal borders. We will also identify cross-border "hard" infrastructure projects in such areas as transport and communications to link the economies of the SACU Members States more closely.
SADC is a free trade area in which 80% of products are trade duty free. Our current work programme focuses on facilitating cross border trade by reducing transaction costs at border posts and removing non-tariff barriers. Work in SADC has also included establishing one-stop border posts. Significant progress has been registered at the border crossing between South Africa and Mozambique, and work is beginning on the border crossing between South Africa and Zimbabwe. In 2007, SADC adopted the Industrial Upgrading and Modernization Programme (IUMP) with an implementation plan and action plan. The IUMP is to be implemented in two phases: support for upgrading and improving competitiveness in industries; and establishment/upgrading of technical support institutions.
Under, the SADC-EAC-COMESA Tripartite Initiative, the recent Summit held in South Africa on 12 June 2011 launched free trade negotiations among the member States. South Africa has been requested to champion work on the North-South Corridor which will rehabilitate and upgrade road and rail infrastructure from DRC, through Zambia and Zimbabwe to South Africa, alongside a series of feeder transport links. Significant upgrades on road and rail has been registered. The Summit issued a directive to initiate work on building production capacity across member states. A work programme in this area is being developed.
South Africa also provides technical and financial support to a range of spatial development initiatives (SDIs) across Southern Africa. This support aims to leverage the region's significant resources endowment to build cross border transport infrastructure and catalyse wider economic development as an integrated package of projects and programmes. Our current efforts involve projects in Angola, Namibia, Mozambique, Tanzania, DRC and Congo.
Questions 2936
Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
(a) With reference to his reply to question 1393 on 2 June 2011, who are the current distribution agencies of the National Lotteries Board (NLB), (b) when was each appointed, (c) what was the criteria used to appoint each agency and (d) for how long have they been appointed? NW3407E
Response:
(a) The current members of the respective Distributing Agencies of the National Lotteries Board (NLB) are:
(i) Sports and Recreation – Gideon Sam, Hajera Kajee, Motlatsi Keikabile, Vinesh Maharaj, Thulani Tshabalala, Celest van Niekerk, Raymond Mali, Harold Adams, Andrè Travill and Edwin Ncula
(ii) Arts, Culture and National Heritage – Mpilenhle Sithole, Luxolo Fihlani, Willie Retsang, Thoko Mkhwanazi, Satiaseelan Naidoo, Dorcas Jafta and Snowy Khoza
(iii) Charities – Nkululeko Nxesi, Matshitshi Ndlovu, Edwin Makue, Gordon McDonald, Iveda Smith, Shireen Krull, Alan Beesley and Nomathemba Kela.
(b) The Sports and Recreation members were appointed on 13 February 2007 and five additional members were appointed on 2 December 2009; the Charities members were appointed on 1 August 2011; and the Arts, Culture and National Heritage members were appointed on 1 September 2011.
(c) The members were appointed in terms of sections 26(3)(a), 28(1) and 30(1) of the Lotteries Act No 57 of 1997 which require Minister to consult with his counterparts in the respective departments to nominate members. Further, the department followed a process of recruitment, through advertisements for all interested and qualified candidates in the newspapers, the government gazette and the website. Also, selection committees sat to short-list prospective candidates for recommendation to be appointed as members through a Ministerial process and Cabinet noting.
(d) All the members were appointed for a period of five years.
QUESTION 2923 FOR WRITTEN REPLY
2923. Mr D C Smiles (DA) to ask the Minister of Trade and Industry:
(1) Whether his department has placed any (a) companies or (b) persons on the List of Restricted Suppliers, thereby prohibiting the public sector to do business with them; if so, in each case, what is the (i) name of said entity or person, (ii) nature of their business, (iii) reason for restricting this service and (iv) date on which they were restricted;
(2) whether any of the implicated (a) companies or (b) persons have since been removed from the list if so, in each case, (i) which entity or person, (ii) when and (iii) what is the reason.for removing the specified company or person from the list;
(3) whether his department has conducted any business with any of the (a) companies that or (b) person who have been removed from the list; if so, in each case (i) with which companies or persons, (ii) with regard to which services, (iii) for which time period and (iv) why did his department engage the specified company or person despite previous conduct?
Response:
(1 )(2)(3) the dti has not placed any companies or persons on the List of Restricted Suppliers and thereby prohibiting the public sector from doing business with them. the dti has further not conducted any business with any such companies or persons.
QUESTION 2875 FOR WRITTEN REPLY
2875. Mr I D Davidson (DA) to ask the Minister of Trade and Industry:
(I) Whether he has been informed that members of the Progressive Business Forum (PBF), which is the fundraising component of a certain political organization (name furnished), were due to attend the China North-East Asia Investment and Trade Expo as part of a state trade delegation representing South Africa; if not, what is the position in this regard; if so,
RESPONSE:
The dti was not informed that the members of the Progressive Business Forum attended the China North - East Asia Investment and Trade Expo. The dti was not responsible for the coordination and arrangements of the trade delegation to the China North - East Asia Investment and Trade Expo.
(2) whether any concern was raised with regard to the PBF delegation officially representing South Africa at this event; if not, what is the position in this regard; if so, what are the relevant details;
RESPONSE:
The Progressive Business Forum like any chamber or industry association is membership based. Its members are from the private sector and as part of a valued added service to its members the Progressive Business Forum arranges international trade delegations, exhibitions and business forums.
(3) why has a decision made to permit the PBF delegation to officially represent South Africa at this EXpo?
RESPONSE:
The Progressive Business Forum like many other organisations was invited by the event promoters of the China North - East Asia Investment and Trade Expo. The Progressive Business Forum represented its members at the Expo.
QUESTION 2751 FOR WRITTEN REPLY
2751. Mr D C Smiles (DA) to ask the Minister of Trade and Industry:
(1) (a) Who Is the preferred service provider that is used by his department for the hiring of vehicles and (b) why is the specified service provider preferred;
(2) whether his department has a fixed contract with the specified service provider; if not, why not; if so, what are the relevant details;
(3) what is the (a) name of the service provider and (b) reason for using the specified service provider in each instance where vehicles have been hired for use by him or his Deputy Ministers since March 2010? NW3212E
RESPONSE
(1)(a) (b) (2)
the dti is a participating department on a PPP contract", concluded by the Department of Transport and National Treasury with Phavis World", for the provision of pool vehicles inclusive of car rentals for a period offive years, 1 November 2006 to 31 October 2011.
Minister Rob Davies
(3)(a) (b)
| Name of service provider | Reason | Date |
| Phavis World | Contract | 09/04/2010 |
| Phavis World | Contract | 14/05/2010 |
| Phavis World | Contract | 13/06/2010 |
| Phavis World | Contract | 09/08/2010 |
| Phavis World | Contract | 19/09/2010 |
| Phavis World | Contract | 02/10/2010 |
| Phavis World | Contract | 14/10/2010 |
| Phavis World | Contract | 12/11/2010 |
| Phavis World | Contract | 08/01/2011 |
| Phavis World | Contract | 14/05/2011 |
Deputy Minister Tobia
(3)(a) (b)
| Name of service provider | Reason | Date |
| Phavis World | Contract | 20/03/2010 |
| Phavis World | Contract | 28/03/2010 |
| Phavis World | Contract | 11/04/2010 |
| BudQet Car Hire | Not available from contract | 17/04/2010 |
| Phavis World | Contract | 19/06/2010 |
Questions 2668
Mr N Singh (IFP) to ask the Minister of Trade and Industry:
(1) What is the average time taken by the National Lotteries Board to process an application for funding from the charities category;
(2) Whether he has been informed that applications for the specified category closed on 25 March 2011 and that a certain association (name furnished) was informed on 7 September 2011 (details furnished) that their application is preceded by 4000 applications that are still to be logged; if not, what is the position in this regard; if so, what are the relevant details;
(3) Whether the board is able to inform applicants within a specified time frame, when their applications will be transferred to a pre-screening supervisor; if not, why not: if so, what are the relevant details;
(4) Whether he will make a statement on the matter?
Response:
(1) According to the National Lotteries Board (NLB), they have not previously assessed average time on a full cycle. However, based on grants recently reviewed, it takes between two (2) and twelve (12) to finalise a grant from receipt to payment, which indicates some improvement from previous years.
(2) The NLB is not required to inform Minister in respect of any individual application but does as per process report on applications received and processed in its annual report which is aiso tabled in Parliament. According to the NLB, they receive high volumes of applications, particularly in the area of charities, and the Lighthouse Hospice application forms part of these applications that are in the process of being considered. Given these high volumes, the NLB is implementing process improvements continuously in order to achieve a reduction in the waiting period for applicants.
(3) According to the NLB, they do not provide feedback to each applicant in regard to matters referred for pre-screening. As a matter of process, the NLB does acknowledge each application received and also formally advises the applicant of the outcome once a decision has been made. Having received an acknowledgement letter, applicants are able to contact the NLB through its call centre number 0860065383 to track progress.
Response:
(4) No. The Lotteries Act establishes structures for handling and adjudicating of applications for grants.
Question 2606
Mr M Swart (DA) to ask the Minister of Trade and Industry:
(1) Whether his department has taken any steps to improve capacity by appointing staff to eliminate the 17% vacancy rate experienced by his department at the end of the 2010-11 financial year; if not, why not; if so, what are the relevant details;
(2) what was the vacancy rate on 31 July 2011? NW3021E
Response:
(1) Yes, the following steps have been taken by the dti to improve capacity and reduce the vacancy rate:
(a) Appointment of additional staff to augment capacity of the Department's Recruitment Office.
(b) Outsourcing of certain response handling and verification processes to reduce turnaround times.
(c) Lead time to fill a vacant post is three months coupled with the "use it or lose it" principle.
(d) The Deputy Director-General responsible for Recruitment oversees the tracking of each vacant post, as it progresses through the advertisement, shortlisting, interviews and appointment phases.
(e) Monthly reports are tabled at senior management committees to monitor progress.
(2) The overall vacancy rate as at 31 July 2011 was 16.5%. This has been brought further down to 15.1% as at 12 September 2011, despite the creation of more posts to cater for new functions.
Question 2577
Ms SP Lebenya-Ntanzi (IFP) to ask the Minister of Trade and Industry:
(1) Whether any action will be taken against debt counsellors who are found guilty of maladministration in respect of not following proper procedures, which results in consumers losing their possessions; if not, why not; if so, what action;
(2) Whether he has taken any steps to ensure that consumers who have suffered financial losses as result of such maladministration by these debt counsellors will be compensated; if not, why not; if so, what steps;
(3) Whether he will investigate the role of the payment distribution agencies in these cases; if not, why not; if so, what are the relevant details?
RESPONSE
(1) According to the National Credit Regulator (NCR), It has already taken action and will still continue to investigate and take appropriate enforcement action in terms of the National Credit Act (NCA) against debt counsellors who do not comply with their statutory obligations in terms of the NCA.
The enforcement action available to the NCR and which has been invoked includes the issuing of compliance notices, referrals to the National Consumer Tribunal (NCT) for inter alia, the cancellation of the debt counsellor's registration, instructional letters and High Court applications for interdicts amongst others. On average the NCR executes 45 monitoring visits to debt counsellors per month based on complaints received by consumers and reports from the Payment Distribution Agents (PDAs) regarding irregularities in respect of debt counselling fees.
(2) The NCT has ordered refunds to consumers in cases where the consumers have been overcharged or charged for services which were not rendered in accordance with the NCA. Further, where the NCT declares the conduct of debt counsellors prohibited, those consumers affected can obtain a certificate from the NCT and claim damages from the non-compliant debt counsellors.
(3) Yes, according to the NCR, the approved PDAs are governed by a Service Level Agreement (SLA) concluded with the NCR in terms whereof the PDAs are required to supply the NCR with monthly reports detailing money received from consumers, distributions to credit providers, payment of debt counselling fees to debt counsellors and amount retained as PDA fees.
Further, quarterly meetings are held with all the approved PDAs and the NCR conducts quarterly audits on at least one PDA randomly selected by the NCR. PDAs have to submit their statutory audit reports to the NCR on an annual basis in terms of the SLA.
Question 2576
Ms SP Lebenya-Ntanzi (IFP) to ask the Minister of Trade and Industry
(1) Whether any progress has been made with his department's investigation into irregularities within the (a) Office of the National Credit Regulator and (b) payment distribution agencies; if not. why not; if so, (i) what progress and (Ii) what are the further relevant details?NW2989E,
RESPONSE:
(1)(a) According to the National Credit Regulator (NCR), charges have been served on the Senior Manager who is currently on special leave for allegations of misconduct. He has also been instructed to attend a disciplinary hearing scheduled for 23 September 2011 and his lawyers asked for a postponement. A new date is to be arranged in this regard.
(1)(b) According to the NCR, the alleged irregularities with respect to Payment Distribution Agencies were reported directly to the Public Protector by the complainant and the Public Protector is dealing with the matter.
Question 2535
Mr. G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:
Whether the Government owes any money to member companies of the National Association of Automotive Component and Allied Manufacturers (NAACAM); if not, what is the position in this regard; if so, (a) what (i) are the names of the companies to which money is owed, (ii) amount is owed to each specified company, (iii) are the reasons for the delay in payment and (b) when will payment be made in each case? NW2956E
Response:
Since inception to 31 Aug 2011 a total of 85 Component Manufacturer (CM) projects have been approved under the Automotive Incentive Scheme. Six (6) of these component manufacturer projects have been paid a total of R96 466 009. Money is only owed to companies once a claim has been submitted, evaluated and approved in line with the guidelines of the Automotive Incentive Scheme. On the whole the AIS has been able to abide by the commitment stated to evaluate and pay claims submitted with all the required information within 60 days of submission.
(a) As at 31 August 2011, the dti had claims from two (2) members of NAACAM.
(i) The members of NAACAM that have submitted claims with the dti are Behr SA (Pty) Ltd and Senior Flexonics SA (Pty) Ltd.
(ii) Behr SA (Pty) Ltd: 3 Claims (3 projects): R1 265741
Senior Flexonics SA (Pty) Ltd: 4 Claims (2 projects): R 992 226
(iii) All of these claims were submitted from 11 August 2011.
· Behr SA (Ptv) Ltd :
W204 Housing Localisation: Submitted 12 Aug 11
PQ25 Evaporator HV AC: Submitted 12 Aug
Bheki Tubes: Submitted 5 Sept 2011
(b) • Senior Flexonics SA (PtV) Ltd:
VW EGR Project (2 Claims) : Submitted 18 Aug 2011
Exhaust Decoupler (2 Claims): Submitted 18 Aug 2011
Inspections by' a dti appointed Consulting Engineer are required before claims payment. Consulting Engineer inspections for the 3 Behr projects have been scheduled for 8 Sept and the Consulting Engineer inspections for the two Senior Flexonics projects have been scheduled for 12 Sept 2011.
Once inspection reports with recommendations from the Consulting Engineer are received, the claims can be processed for payment within 5 days of receipt of the engineer's report
QUESTION 2533 FOR WRITTEN REPLY
2533. Mr. G B D Mc Intosh (Cope) to ask the Minister of Trade and Industry:
(1) Whether his department has a policy in place governing the turnaround time for payment of financial assistance to qualifying small and mediumenterprises (SMEs); if not, why not; if so, what are the relevant details;
The department has defined targeted turnaround times for each incentive scheme. The turnaround targeted times are informed by the size and the complexity of the scheme.
(2) whether any payments for SMEs have been outstanding for longer than two financial years as at the latest specified date for which information is available; if so, what are the relevant details?NW2954E
The majority of claims are paid within the targeted turnaround time. For the following schemes there are no claims exceeding more than 3 months: the Black Business Supplier Development Programme (BBSDP), the Cooperative Incentive Scheme (CIS), Film & TV production incentive, Business Process Services incentive (BPS) and the Export Marketing and Investment Assistance (EMIA).
However under the SMEDP there are claims which have exceeded 2 financial years before being paid. Most of the companies affected have not had their claims paid because they failed to present valid tax clearance certificates or meet other contractual requirements.
QUESTION 2501 FOR WRITTEN REPLY
2501. Mr P van Dalen (DA) to ask the Minister of Trade and Industry:
Whether (a) his department and (b) entities reporting to it have (i) awarded any tenders and (ii) concluded any (aa) contracts and (bb) financial transactions with certain companies (names and details furnished) in each specified financial year since 2005-06; if so. (aaa) which company or entity, (bbb) what are the relevant details. (ccc) what was the value of each (aaaa) tender. (bbbb) contract or (cccc) financial transaction and (ddd) what was the name of the companies who failed for each tender, contract or financial transaction that was awarded? NW2915E
RESPONSE:
Neither the department nor any of its entities have awarded any tenders. nor concluded any contracts or any financial transactions with (i) Bobwil Projects, (ii) Casino Retail. (iii) Chamber Management Services, (iv) Hyperception Properties 213. (v) Justco Investments, (vi) Lezmin 2554, (vii) Morkerong Printings and Promotions, (viii) Que Trade 101RHC Properties, (ix) Sonex, and (x) Ivothondaba Properties from 2005/06 to date.
QUESTION 2454
2454 Dr P J Rabie (DA) to ask the Minister of Trade and Industry:
Whether any of the provincial departments of economic development approached his department to establish a local catalytic platinum industry; if not, what is the position in this regard; if so, what are the relevant details?NW2862E
RESPONSE
No, the dti has not been approached by any provincial Department of Economic Development to establish a catalytic convertors industry.
The first catalytic converter companies established plants in SA during 1992. Under the Motor Industry Development Programme (MIDP), the industry grew significantly since 2001.
Companies involved in the manufacture of catalytic converters are located in Gauteng, the Eastern Cape, and to a lesser extent in the Western Cape.
Question 2403
2403 Mrs M Wenger (DA) to ask the Minister of Trade and Industry:
What mount was (a) claimed by and @) paid to (i) him and (ii) his deputy ministers for subsistence and travel in each month in the 2010-11 financial year?
RESPONSE:
Since claimed amounts for subsistence and travel were based on policy provisions and associated limitations, there were no differences between claimed and paid amounts. The expenditure per month, as well as the total for the 2010/11-financial year for the Minister and Deputy-Ministers, are attached here as Annexures A to D
Question 2398
Mr N Singh (IFP) to ask the Minister of Trade and Industry:
(1) Whether his department has any support measures in place for the continued (a) development and (b) sustainability of Coega; if not. why not; if so, what measures;
(2) what (a) financial support is being provided and (b) are the details of his department's interaction with the Eastern Cape provincial government in this regard? NW2789E
Response:
(1) (a)
To date the dti has provided R4.2 billion in grant funding to Coega Development Corporation (Pty) Ltd, the licensed operator of Coega IDZ, for use in developing the general infrastructure required to convert agricultural land into serviced industrial sites.
(1) (b)
During the 2011/12 financial year, the dti has an amount of R383.7 million budgeted for grant funding to CDC. R140 million of this was transferred to CDC in August 2011.
The 2011 Estimates of National Expenditure indicate baseline funding to CDC under the Trade and Industry Vote 36 of the following:
2012/13 R417.858 million
2013/14 R308.195 million
In total, the government of the Republic of South Africa would have provided a total of R5.3 billion in grant funding to CDC by the end of 2014. CDC plans to attain operational profitability in the medium term. Government will consider additional support for infrastructure as and when needed to support investors locating in the IDZ.
(2)(a)
The financial support provided by national government, through the dti budget vote, is detailed above.
(2)(b)
The Department is in constant interaction with tile Eastern Cape provincial government with regard to CDC's financial position, and with regard to the Eastern Cape Government's role in financing the CDC. Further, the dti is currently leading an IDZ policy and legislative review. The Eastern Cape provincial government has been part of the process and its MEC: DEA T has been part of the Minmec meetings that have been deliberating and deciding on the new policy proposals.
Question 2394
Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:
Whether· he intends to find solutions to the problems of (a) a lack of funds, (b) a shortage of personnel and (c) limited office space as experienced by the National Consumer Commission; if not, why not; if so, what are the relevant details?NW2785E
Response:
(a) Funds were procured for the National Consumer Commission (NCC) through the MTEF process and the department is in the process of transferring tt1e funds to the entity now that it has satisfied the PFMA requirements. The department will source further funds in the normal MTEF process should the funds prove insufficient.
(b) The department embarked on organisational design process which took into account the mandate, functions and human capital requirements of the NCC. The organisational design recommended a structure of one hundred and thirty-one personnel (131), which I have approved. All that remains is for the NCC to expedite the recruitment process.
(c) The NCC is in the process of finalising the office space procurement process and funds are, available for this purpose.
Question 2187
Mr J F Smalle (DA) to ask the Minister of Trade and Industry:
(1) Whether the enterprise content management (ECM) tender awarded to a certain company Waymark Infotech was advertised; if not, why not; if so, (a) when, (b) where and (c) what was the scope of the tender;
(2) Whether the scope of work infringes on the nature of the tender awarded to a certain company Waymark Infotech; if not, what is the position in this regard: if so, what are the relevant details? NW2560E
Response:
(1) According to the Companies and Intellectual Property Commission (CIPC), there was no Enterprise Content Management (ECM) tender advertised and awarded to Waymark Infotech.
t
(2)(a) The appointment of Waymark Infotech relates to a maintenance agreement intended to maintain the current business system.
(2)(b) There is no infringement as the scope of work relates to the maintenance of the current system.
QUESTION 2161 FOR WRITTEN REPLY
2161. Mr N J J van R Koornhof (Cope) to ask the Minister of Trade and Industry:
(1) Whether his department (a) have any measures in place or (b) are in the process of implementing any new measures to encourage foreign capital investment; if not, why not, in each case; if so, what are the relevant details, in each case;
Reply:
The dti in its bilateral engagements with key countries has placed on the agenda the issue of foreign capital investment as a key priority. For example during the state visit of President J. G. Zuma, the IDC signed MOUs with the China Construction Bank and the China Africa Development Fund for long term loans and project finance. This was also done during the State Visits of France, UK, Russia and India during our bi laterals and the Business Forums. Work is currently in progress between the Department of Economic Development, the DTI and the Industrial Development Corporation to raise concessional finance and longer term loans. During the BRICS Summit, the finance departments of Member States have established a working group to look at cooperation of financing measures between BRICS countries, amongst others this includes trading with Member States currency. For South Africa, this work is lead by our National Treasury.
(2) whether his department has been informed of the Ease of Doing Business index published by the World Bank, which saw South Africa slide from 28th place in 2006 to 34th in 2010; if not, what is the position in this regard; if so, what (a) are the main reason(s) for this slide, (b) steps does his department intend taking in this regard and (c) are the further relevant details? NW2532E
Reply:
The dti through its divisions Economic Research and Policy Coordination (ERPC) and Trade and Investment South Africa (TISA) participate in the annual investment climate surveys with the World Bank and other rating agencies. On the 29th July 2010, I participated in the launch of the 2010/2011 report that was released jointly by the dti and the World Bank Country Director for South Africa Ruth Kagia, at a "Development Dialogue" which took place at the Kopanong Conference Centre in Benoni. Issues such as red tape and administrative barriers were elevated to ICTS cluster and task teams to fast track impediments and improve the overall investment climate and cost of doing business in South Africa. Review of policy measures as well as pronouncement on same play a key role in this regard and we are compelled to consider sound communication channels on investment climate as well as support measures. In addition the dti has partnered with the Oxford Business Group to address and effectively communicate investment measures that have been considered. During the compilation process of the OBG publication the dti is envisaging intense engagements that will result in clear articulation of measures implemented by government in addressing impediments to investments as well as ease of doing business.
QUESTION 2135
2135. Mr X Mabasa (ANC) to ask the Minister of Trade and Industry:
Whether, in light of fronting being a problem which can frustrate the efforts of broad based-black economic empowerment, he has any measures in place to (a) detect fronting and (b) act on it; if not, what is the position in this regard; if so, what are the relevant details?NW2435E
Response:
(a) & (b) the dti together with the Presidential BEE Advisory Committee is currently addressing the risks posed by unscrupulous practices or initiatives which are in contravention of or against the spirit of any law, provision, rule, procedure, system, policy, practice, directive, order, and any other condition pertaining to Broad Based Black Economic Empowerment under the BBBEE Act, Act no 53 of 2003 and the BBBEE Codes of Good Practice.
Fronting is commonly used to refer to a misrepresentation of facts and therefore it is a fraudulent act. Currently the dti encourages people to report fronting and related cases first to the South African Police Services due to the fact that the nature of the alleged activity is a contravention of the Fraud Act and thereafter to the dti for further investigation. the dti is working closely with other Government agencies such as the Special Investigating Unit (SIU) which investigates matters involving corruption, fraud, amongst other things.
the dti is also working on creating a legislative environment in which fronting will be made a criminal offence with punitive measures. In this regard the dti has appointed service providers to refine the BBBEE Codes; including dealing with matters pertaining to fronting.
The refinement process will also explore possible punitive measures that can be considered such black listing of companies/directors/individuals/agents found
guilty of committing Fronting.