Communications

2012-11-30

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Reply received: December 2012

QUESTION NO: 3422

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

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

Whether (a) her department and/or (b) any entity reporting to her sponsored any (i) event and (ii) promotion hosted by The New Age newspaper since its establishment; if so, in each case, (aa) what was the nature of the event or promotion, (bb) on which date was it held, (cc) what amount was paid, (dd) for what purpose, (ee) from which budget were the funds derived, (ff) what were the expected benefits to her department and (gg) what actual benefits were derived from the sponsorship? NW4341E

REPLY

DoC

(a) The Department has never sponsored any event of TNA since its inception

SABC

(b) The SABC has not sponsored or hosted any event for The New Age since its inception.

SENTECH

(b) Sentech have not sponsored any event and promotion hosted by The New Age newspaper since its establishment.

SOUTH AFRICAN POST OFFICE

(b) The South African Post Office has not sponsored any event or promotion hosted

by The New Age newspaper at any time since its inception.

NEMISA

(b) NEMISA has not sponsored an event or promotion hosted by The New Age since

its establishment.

ICASA

(b) ICASA never sponsored any event or promotion hosted by The New Age newspaper since its establishment.

USAASA

(b) Yes, USAASA has sponsored the event hosted by The New Age

(ii) Promotion

(aa) The SABC- The New Age Business Breakfast with Minister Dina Pule

(bb) 20 March 2012

(cc) R7130. 70

(dd) Stakeholder engagement breakfast in respect of national sector issues such as

DTT, Broadband and others.

(ee) Branding and public awareness budget

(gg) sector engagement, consultation and updates on pertinent matters.

Reply received: December 2012

QUESTION NO: 3381

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mr TW Coetzee (DA) to ask the Minister of Communications:

(1) (a) How many copies of each annual report that was produced by (1) her department and (ii) the entities reporting to her were commissioned for print in the 2011-12 financial year; (b) how many copies of printing these reports;

(2) (a) Who printed each specified report, (b) how was the specified printer decided upon and (c) on what date did the specified printer deliver the report to the specified entity;

(3) Whether any of the specified reports that had been printed were found to be unsatisfactory; if not, what is the position in this regard; if so, in each case, (a) which reports, (b) for which entity, (c) by which printer, (d) what action was taken and(e) what were the costs? NW4286E

REPLY

DoC

(1) (a) (i)The Department produced 500 copies of the annual report

(b) 500 copies were actually printed.

(c)(i)(ii) The total cost of the Annual Report amounted to R117 000.

(2) (a) The reports were printed by Uvo Communications;

(b) The specified printer was selected through the Supply Chain Management process which is based on fairness, equitability, transparency, competitiveness and cost-effectiveness.

(3) All reports produced for the Department were satisfactory.

SABC

(1) (a) (i)Not applicable

(b) The SABC printed 1200 standard copies and 30 Braille copies.

(ii) R70 for a standard copy and R737 for a Braille copy.

(2) (a) Xanadu Printers for the standard report and Braille South Africa for Braille copies.

(b) Xanadu Printers was appointed following a quotation process and Braille South Africa was appointed on the basis that they are the preferred supplier.

(c) Xanadu Printers delivered on 29 August 2012 and Braille South Africa delivered two batches, five copies on 10 October and 25 copies on 16 October 2012.

(3) Copies received were in the required condition.

(a - e) Not applicable

SENTECH

(1) (a) 300 printed copies and 300 audio copies of annual reports;

(b) 300 printed copies and 300 audio copies of annual reports;

(ii) Individual cost for printed copies cost R219.00 and audio copy cost R12.00 each respectively.

(2) (a) Mostwako Visual Audio Group did the printing and Quo Vadis Communications did the design.

(b) One of the SCM processes of three quotation system was utilised for both design and printing;

(3) None were found to be unsatisfactory.

POST OFFICE

(1) (a) The SA Post Office printed 200 copies of its annual report. The report is also available in PDF format on www.postoffice.co.za.

(b) Final print run of 200 copies cost R27 954

(ii) Cost per report (final printing only) was R211.06 each.

(2) (a) Sisonke Printers

(b) The printer was selected from a list of three possible suppliers and they provided the most cost effective price.

(3) The reports provided to SAPO were all satisfactory.

NEMISA

(1) (a) Nemisa produced one (1) annual report.

(b) Eight hundred (800) copies of the annual report were printed.

(ii) Individual cost was R124.34

(2) (a) Petrol Bomb Design

(b) A three (3) quote procurement process (competitive price award) was employed.

(c)

(3) None.

ICASA

(1) (a) ICASA printed 1200 copies of the 2011/12 Annual Report

(b) 1200 copies

(2) (a) Naledi Litho CC

(b) Naledi Litho was appointed through an open tender process

(3) The layout, design and quality of the ICASA Annual Report was satisfactory.

USAASA

(1) (a) USAASA printed 1500 copies of the report.

(b) 1500 copies

(ii) Individual cost was R295.67

(2) (a) Incense Brand Consultants

(b) The printer was selected through normal procurement processes and selected on the basis of demonstrated skill and comprehensive quoting. All suppliers were requested to submit portfolio of evidence.

(3) (a) Two copies were found to be damaged along the spine. The batch was returned for re-checking

(b) USAASA

(d) Payment was held back pending the check.

Reply received: December 2012

QUESTION NO: 3286
DATE OF PUBLICATION: 16 November 2012
QUESTION PAPER NO: 41
DATE OF REPLY: 05 December 2012
Mrs. JD Killian (Cope) to ask the Minister of Communications:

1)With reference to the complaint lodged by the Freedom of Expression Institute (FXI) against the South African Broadcasting Corporation . - (SABC) for transgressions of the public broadcaster's news editorial policy, how does the Independent Communications Authority of South Africa (ICASA,) (a) monitor and (b) enforce compliance by the SABC with-its (i) licensing conditions and (ii) the SABC Charter as determined in section 6 of the Broadcasting Act, Act 4 of 1999, in respect of (aa) news and (bb) current affairs;

(2)Whether ICASA has the capacity to (a) monitor and (b) enforce compliance by the (i) SABC and (ii) other broadcasters with licensing conditions; if not, what is the position in this regard; if so, what are the relevant details;

(3)Whether the settlement reached between the FXI and the SABC is supported by (a) existing news editorial policy and (b) the SABC Charter; if not, why not; if so, what are the relevant details, in each case;

(4)What steps will she take to ensure that the regulator enforces section 6(8)(f) of the SABC Code of Practice?
NW4177E

REPLY:

(1) Yes, ICASA monitors and enforce compliance by the SABC with its license terms and conditions in respect of news and current affairs, by physically viewing and listening to broadcast recordings, against the provisions of each license term and condition of the SABC with respect to the minutes of news and current affairs broadcast.

Further, the license terms and conditions also require:
"The licensee shall in the production of its news and current affairs programming;

(I) Exercise full editorial control in respect of the contents of such programming
(II) Include matters of international, national, regional and where appropriate local significance
(Ill) Meet the highest standard of journalistic professionalism
(IV) Provide fair, unbiased, impartial and balanced coverage independent from governmental, commercial or other interference; and
(V) Provide a reasonable opportunity for the public to receive a variety of points of view on matters of public concern".

The abovementioned requirements tally with the provisions as enunciated in section 6 (2) and (3) of the SABC Charter.

However, the Authority does not monitor the processes that lead to the production of content that finally goes on air or broadcast. Hence, the public broadcaster is mandated to submit its editorial policies to the Authority, which it has in 2004 during the SABC license amendment process. The SABC will be requested to submit a separate report outlining how it ensures full editorial control prior to the broadcast of news and current affairs.

Furthermore, it is important to note that the SABC is a signatory of the National Association of Broadcasters ("NAB"), which has developed a Code of Conduct for Broadcasters that was approved by the Authority in terms of section 54(3) of the Electronic Communications Act ("ECA). The Code of Conduct is administered by the Broadcasting Complaints Commission of South Africa ("BCCSA).

(2) ICASA is in the process of procuring automated monitoring equipment, which will ensure that it monitors all broadcasters and not to rely on human monitoring that has proven insufficient. In the past the Authority monitored SABC compliance with license terms and conditions based on sample sizes. This approach made it impossible to refer areas of non-compliance to Complaints and Compliance Committee ("CCC") for adjudication. However, with respect to commercial and community broadcasters, the Authority has monitored compliance with license terms and conditions and referred noncompliance matters to CCC.

(3) (a) The settlement does not contravene the existing news editorial policy or SABC charter in any way. The settlement is an agreement between FXI and the SABC whereby the SABC acknowledges past transgressions and commits to a more vigilant approach in the future. The settlement approach was the most sensible, least costly and shows that the SABC does not ignore evidence of wrongdoing. The joint press release is a step taken in addressing and acknowledging such wrongdoing.
(b) Same as 3(a)

(4)In terms enforcing section 6(8)(f) of the SABC Code of Practice, the Authority has in its possession the SABC's editorial policies which incorporate the editorial code. The code enjoins the SABC to, amongst others, "Report, contextualize and present news and current affairs honestly by striving to disclose all the essential facts and by not suppressing relevant available facts or distorting by wrong or improper emphasis"

Reply received: December 2012

QUESTION NO: 3258

DATE OF PUBLICATION: 16 November 2012

QUESTION PAPER NO: 41

DATE OF REPLY:

Mr. N D du Toit (DA) to ask the Minister of Communications:

(1) Whether (a) her department or (b) any entity reporting to her, placed any advertisements in The New Age since the inception of the newspaper up until the most recent date for which information is available; if not, in each case, what is the position in this regard; if so, (i) which entity placed the advertisements, (ii) on what date was each advertisement placed, (iii) what was the nature of each advertisement and (iv) what amount was spent on each advertisement;

(2) whether any of these advertisements were placed through the Government Communication and Information System (GCIS); if not, what is the position in this regard; if so, what are the relevant details of the advertisements placed through the GCIS;

(3) whether an independent analysis was conducted by her department prior to placing advertisements to ascertain whether The New Age is read by the intended target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis;

(4) whether any independent studies of said advertisements were conducted to ascertain whether they were effective within the relevant target market; if not, why not; if so, (a) who conducted the analysis and (b) what were the main (i) findings and (ii) recommendations of said analysis? NW4147E

REPLY

DOC

(1) (a) (i) The Department advertises in a range of publications and media platforms, including the newspaper in question, which are widely available to all. Publications (including newspapers) are regarded as a source of information and one that enables government to inform the society about government programmes and services. The adverts are done on a needs basis and focus on the department's awareness programmes. This therefore means that advertising the department's programmes is an ongoing, year-long process.

(ii)Adverts were published on the following dates:

· 11/02/2011

· 23/02/2011

· 05/04/2011

· 29/11/2011

· 30/05/2011

· 16 April 2012 and 18 April

· 14 August 2012

(iii) The adverts publicise the department's projects and programmes and also available jobs in the department.

(iv) The amount of the adverts differs according to dimensions and the type of content published.

The amounts below are as per the published dates above:

· R61,354.80

· R10,000.00

· R181,337.52

· R73,625.76

· R183,275.52

· R154 638.72

· R257,731.20

(2) Some adverts were done on need basis, we have not used GCIS as they are consulted on bulk buying.

(3+4)The Department use the empirical data about audience numbers it receives from Newsclip to determine which publication to advertise in if we want to target a particular audience with a specific message.The Department's adverts were well responded to by the diverse target market.

NEMISA:

(1)(b) Nemisa has not placed any advertisement in The New Age Newspaper or through the Government Communication Information System (GCIS).

ICASA:

(1)(b) ICASA has not placed any advertisement in The New Age.

SAPO:

(1)(b) The South African Post Office contracts with its media agencies to undertake the task of advertising placements, which placement is based on the agency's analysis of the media outlet selected. Matters taken into consideration in this regard are;

· The target audience

· The product that is being promoted

· The reach of the media outlet

· The area that is been targeted

The South African Post Office through its agency Starcomm, placed an advertisement in The New Age in June 2011 on which it spent R76 847 in the Financial and Commercial sections. The advertisement was related to services provided by the retail arm of the South African Post Office, specifically the promotion of motor vehicle licensing at the post office outlets. The advertisement was also placed in a number of national newspapers during the same period.

SENTECH

(1)(b) Sentech has never placed any advertisement with the newspaper since its inception.

USAASA

(1)(b) USAASA has never placed any advertisement with the newspaper since its inception.

SABC

(1)(b) (i) SABC

(ii) 18 March 2011 and another one followed by March 2011 month end.

(iii) The nature of the advertorial was to increase sales for DVD content and encourage SABC content consumption.

(iv) R147 251 in total (VAT inclusive)

(2) No. The SABC normally place advertorials and other print media through Media Shop or directly with the print company. In this instance it was placed directly with THE NEW AGE.

(3) Not applicable.

(a) Not applicable

(b) (i) Not applicable

(ii) Not applicable

(4) There were no independent studies done on its effectiveness, instead an internal analysis was conducted.

(a) Content Sales Manager

(b) (i) Growth / increase in demand for content was identified.

(ii) Recommendations proposed further adverts be placed as well as the use of other print media platforms.

Reply received: December 2012

QUESTION NO: 3148

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mr A C Steyn (DA) to ask the Minister of Communications:

Whether any (a) executive and/or (b) senior managers of entities reporting to her have (i) resigned or (ii) terminated their employment contracts before the expiry of the contract since 1 April 2009; if so, for each entity, (aa) which position(s) were (aaa) vacated (resigned from) and (bbb) contracts were terminated before the expiry of the contract, (bb) what was the duration of the service of the person who vacated the position and (cc) what was the value of the financial payout, or severance, made to each person who vacated the position in each case?

NW3986E

REPLY

SABC

(a)(i)(aa)

Position (aaa)	Service (bb)
Chief Technical Officer	3
Group Executive: Corporate Strategy	1
Group Executive: PCS	3
Group Executive: Legal Services	2
Group Executive: Governance & Risk	8
Group Executive: Human Capital Service	5

(a)(ii)(aa)

Position (bbb)	Service (bb)	Payment(cc)
Chief People Officer	5	R 2 578 803.18
Company Secretary	3	R 2 976 836.70
Group Chief Executive Officer	1	R 3 206 092.22
Group Exec: Officer of the GCEO & Regions	15	R 4 3 44 688.51
Group Executives: PBS	4	R 4 23 657.51
Group Executive: Commercial Enterprises	12	0
Group Executive: Human Capital Services	4	R 310 202.13
Sales Director	3	R 1739 045.27

(b) (i)(bb)

Position (aaa)	Service (bb)
Chief Financial Controller	3
Deputy Company Secretary	0
Executive Manager	1
Executive Manager: Stakeholder Relations	1
General Manager: BIT	3
General Manager: Marketing	4
General Manager: Corporate Tax	6
General Manager: Finance	7
General Manager: Finance	1
General Manager: Human Resources	17
General Manager: Human Resources	0
General Manager: Human Resources	4
General Manager: Stakeholder Relations	4
General Manager: Strategic Sourcing	4
General Manager : Television Sales	5
GM: DTT Policy & Regulations	6
Project Manager Leader	7
Project Manager 2010	5
Senior Marketing Manager	3

(b)(ii)(aa)

Position (bbb)	Service (bb)	Payment Made (ccc)
General Manager: SABC Entertainment	9	R 358 414.10
General Manager: Commercial Services	4	R 798 091.95
General Manager: SABC News Resources	6	R 1 221 593.68
General Manager: SABC News International	3	0
Head of Procurement	3	0
General Manager: Finance (News)	2	R 623 200.54

SENTECH

Vacant position	Reasons for terminations	Start date	Termination date	Duration of service	Financial payout (i.e severance)	Nett pay on termination
Executive: network Service	Resigned	01.04.2003	26.03.2010	6 years, 11 months, 26 days	None	R304, 520.00
CFO	Resigned	01.05.2006	27.08.2010	4 years, 3 months, 27 days	None	R144,264.00
COO	Resigned	11.06.2007	07.07.2010	3 years, 27 days	None	R87,950.00
Executive: Human Resources	Resigned	13.05.2009	04.05.2011	1 year, 11 months, 22 days	None	R61, 000.00
CFO	Resigned	15.08.2011	27.07.2012	11 months, 13 days	None	R76, 234.00

SOUTH AFRICAN POST OFFICE

Initial	Last name	Job	Organizational unit	Reason for Action	Employment duration			Nature of pay out		remarks
Initial	Last name	Job	Organizational unit	Reason for Action	Appointment date	Last day of service	Year of service	Leave payment	Severance payment	remarks
MM	Lefoka	Group Chief Executive Officer	SAPO Group	Termination	15/03/2002	29/02/2012	10yrs	383,782	1,466.810	agreement
JP	Wentzel	Chief operating Officer	Group Operation	Termination	05/01/2009	31/10/2011	2yrs 7 mnths	106,834	548,058	agreement
NJD	Buick	Group Executive (2B)	Business Support	Resignation	13/11/2001	13/06/2012	10yrs 7mnths	106,565
MN	Mbekeni	Executive	Legal Service	Resignation	01/10/2008	04/09/2011	3yrs	71,931
NF	Dikgale	Executive	Legal Service	Resignation	01/03/2012	28/09/2012	7mnths	40,748
AT	Pule	GM(3)	HR Operations	Dismissal: Misconduct	01/06/2005	10/05/2010	4yrs	69.067
AJV	Ngqulana	GM(3)	Consumer Service Operations	Resignation	01/03/2010	30/09/2010	7mnths	22,924
ML	Luti	GM(3)	Corporate Communiations	Resignation	01/11/2010	31/05/2011	7mnths	8,752
RM	Neshunzhi	GM(3)	International Service	End of Contract	01/07/1997	30/11/2011	13yrs 5 mnths	117,616	532,494	Remainder of fixed term contract
TV	Geldenhuys	Group Company Secretary(3B)	Company Secretary	Resignation	01/10/2007	30/04/2009	1yr 7 mnths	58,340
JMS	Sekhasimbe	Group Executive (2B)	Supply Chain Management	Resignation	26/05/2008	30/06/2001	3yrs	39,889
DC	Nyamazane	MD(3A)	SAPOS Properties	End of Contract	04/06/2001	31/01/2011	9 yrs 7 mnths	53,682
K	Ndebele	GM(3)	Marketing	End of Contract	12/11/2007	11/11/2012	5yrs	4,341
NM	Khumalo	GM(3)	Finance-Financial Accounting	Resignation	01/04/2007	21/11/2012	5 yrs 7mnths	43,312
TBJ	Memela-Khambula	MD (2A)	Postbank	Resignation	16/01/2006	30/09/2010	4 yrs 7 mnths	55,715
E	Malisa	Executive (3A)	Postbank Business Development	Resignation	01/02/2008	31/12/2009	1yr 11 mnths	35,093
MM	Manyama-Matome	GM(3)	Financial and Support Postbank	Resignation	09/10/2006	10/01/2010	3yrs 3 mnths	28,664
NB	Moloi	GM(3)	Postbank Business Bank Development	Resignation	01/07/2010	22/10/2010	3 mnths	10,248
L	Van der Bank	Chief Information Officer(2A)	Information Technology Management	Resignation	01/02/2007	31/08/2010	3yrs 7 mnths	43,623
JJ	White	Chief Information(2A)	Information Technology Management	Resignation	01/07/2011	29/02/2012	8 mnths	25,152
DV	Vela	GM(3)	IT Strategy and Architecture	Resignation	01/12/2007	15/08/2010	2yrs 7mnths	6,313
LJ	Montague	GM(3)	Business Support	Resignation	15/11/2007	31/08/2011	3yrs 9mnths	65,061
CT	Vorster	GM(3)	Solution Design	Resignation	01/08/2004	30/04/2012	7yrs 8 mnths	42,671

NEMISA

(a) (i) Three (3) executive member and one (1) Senior Manager have resigned.

(ii) Contracts of three (3) executive members and one Senior Manager terminated

(aa) Chief Executive Officer; Head of Business Development and Marketing; Chief Financial Officer and Chief Operations Office.

(bb) Duration

Chief Executive Officer: Eighteen months

Head of Business Development and Marketing: seven 7 years and ten (10) months

Chief Financial Officer: Three (3) years and five (5) months

Chief Operating Officer: Six (6) years and one (1) month

(cc) Leave Payout

Chief Executive Officer: R 105 127.31

Head of Business Development and Marketing R102, 314.37

Chief Financial Officer: R127, 320.52

Chief Operations Officer: R58, 186.99

ICASA

(a)(b)(i) There are two General Managers who resigned in 2011.

(ii) (aa)Yes The CFO's contract was left with three months and was released 3 months before the expiry date of his contract. He left in Sept 2011. General Manager: Legal and CCC resigned in June 2011. General Manager: Engineering and Technology resigned in December 2011.

(aaa) Resigned

(bbb) Yes

(bb) Five year contracts

(cc) General Manager Legal: was paid his leave balance which amounted to R42 830.78. The normal salary pay for the month was R 61212.78. Later we paid performance incentive of R R34, 294.79 for the period 1/03/2010 to 30/04/2011

General Manager Engineering and Technology: was paid the balance of his leave days. That amounted to R45 661.25. The normal salary pay for the month was R65 804.95. Plus a Performance incentive of R34 294.79

Chief Financial Officer: was paid his normal monthly salary for the remaining 3 months and the balance of his leave days including the leave he would have accumulated had he stayed the 3 remaining months. The total pay-out was R323 875.77

USAASA

(a)The Executive Managers and the Senior Manager who resigned and/or terminated their contracts before the expiry date (s) of the contract since 01 April 2009 were:-

(i) Mr James Theledi, Ms Nelly Mosiane, Mr Phineas Moleele, Mr Molefi Mollo and Mr Thato Matsepe.

(aa)Mr Theledi was the Chief Executive Officer, Ms Mosiane was the Executive Manager: Corporate Services, Mr Moleele was the Chief Executive Officer, Mr Mollo was the Executive Manager: Business Development Services and Mr Matsepe was the Senior Manager: Information and Technology.

(aaa)Mr Theledi resigned from 12 April 2009, Ms Mosiane resigned from 31 January 2011, Mr Moleele resigned from 07 March 2012, Mr Mollo resigned from 31 August 2012 and Mr Matsepe resigned from 30 September 2012.

(bbb) Mr Theledi's contract was from 01 June 2007 to31 May 2010, Ms Mosiane's contract was from 16 July 2010 to 30 June 2013, Mr Moleele's contract was from 01 May 2010 to30 April 2013, Mr Mollo's contract was from 01 September 2010 to 31 August 2013 and Mr Matsepe's contract was on full time basis; and he started working for USAASA on 13 December 2010.

(bb) Mr Theledi worked for 2 years and 1 month, Ms Mosiane worked for 0 years and 8 months, Mr Moleele worked for 1year and 9 months, Mr Mollo worked for 2 years and 0 months and Mr Matsepe worked for 1 year and 10 months.

(cc)Mr Theledi was paid a settlement amount R91, 643.54, Ms Mosiane was not paid anything, Mr Moleele was paid a settlement amount of R687 506.75, Mr Mollo was not paid anything and Mr Matsepe was not paid anything.

Reply received: December 2012

QUESTION NO: 3095

DATE OF PUBLICATION: 2 November 2012

QUESTION PAPER NO: 38

DATE OF REPLY: 29 November 2012

Mr. EH Eloff (DA)to ask the Minister of Communications:

(1) Whether her department is currently subscribed to The New Age (TNA) newspaper; if so, (a) how many subscriptions does her department have, (b) when was each subscription initiated, (c) what has been the annual subscription fee for each specified subscription since it was initiated and (d) what is the exact purpose of each subscription;

(2) whether a discount was negotiated for any of the specified subscriptions; if so, (a) for which specified subscriptions and (b) what discount in each case;

(3) whether her department has mass-purchased the TNA on an ad hoc basis since the inception of the newspaper; if so, (a) on what dates, (b) how many copies in each case and (c) why were the papers purchased in each case;

(4) whether (a) the publishers of the TNA and (b) any other entity donated copies of the paper to (i) her department and (ii) any entity reporting to her; if so, in each case, (aa) which entity donated the papers, (bb) to which entity were they donated and (cc) how many copies were donated? NW3924E

REPLY

DoC

(1-) (a) The Department subscribes to a range of publications, including the newspaper in question and others, which is widely available to all. Publications (including newspapers) are regarded as a resource of information and one that enables government to keep in touch with the happenings in society at large.

(b) A tender was issued by the Department for a range of publications including a newspaper in question .The Department does not subscribe to individual publications. The appointed service provider provides the Department with all publications.

(2) (a) When purchasing newspapers the Department issued a tender which the value was determined on a need and the Department does not actively approach service providers for discounts,

(3) A tender was issued by the Department for a range of publications including a newspaper in question. The subscription of the tender as specified for all range of newspapers is daily and weekend newspapers.(4) The have not been any donations submitted to the Department as the Department has a tender of all publications in place.

· Sentech

Sentech does not have a subscription with The New Age neither has the company advertised in the newspaper. Sentech has not been approached by the newspaper to partake in any paid advertising.

· SAPO

The South African Post Office has not received any donated copies of The New Age from the publishers (TNA) neither from any other entity.

· ICASA

ICASA does not receive any donated copies to The New Age newspapers and neither received any copies from any entity.

· NEMISA

NEMISA is not a subscribed to The New Age newspaper. NEMISA has however been receiving two free copies of The New Age newspapers per day since July 2012, from the publishers of the newspaper

· USAASA

The Universal Service and Access Agency of South Africa (USAASA) does not and subscribed nor donated copies to the Department of Communication or any other entity.

· SABC

Approximately 400 copies were donated to SABC during THE NEW AGE's initial phase.

Reply received: December 2012

QUESTION NO: 3067
DATE OF PUBLICATION: 2 November 2012
QUESTION PAPER NO: 38
DATE OF REPLY:

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

1)Whether Mr Zola has been investigated for having business interests outside his employment at the SABC; if not, why not; if so, (a) what business interests and (b) for how long has he had these business interests;
(2) whether Mr Yeye has permission to pursue these business interests; if not, why not; if so, (a) who gave permission in this regard and (b) under what conditions;
(3) whether these business interests include directorships in (a) any sporting enterprises and (b) Southern Kings rugby if not, how was the conclusion reached, in each case; if so, what are the relevant details, in each case;
(4) whether Mr Yeye holds interests at the rugby club are in conflict with his position at the SABC; if not, how was the conclusion reached; if so, what does she intend doing to deal will the issue;
(5) whether he met all of his SABC targets for the year ending 31 March 2012; if not, why not; if so, (a) what were the targets and (b) how were they achieved?

REPLY
I am informed by SABC that:

I (a) Mr Zola Yeye has no business interest outside the SABC so there was no need to investigate.
(b) Not Applicable

2 (a) His involvement with South African Rugby Union (SARU) was requested, declared and granted by the then GCEO Advocate Dali Mpofu
(b) No conditions were stipulated.

(3) (a) Not applicable
(b) Mr. Zola Yeye is not involved at all or part of the stated business interest or whatever Directorship anywhere.

(4) There is no conflict of interest except soliciting his opinion in rugby matters from time to time as a fully fledge Springbok rugby guru and former Springbok World Cup Rugby Winning Manager.

(5)(a) Mr. Yeye does not work on commission basis i.e. Sales Representative; however the Eastern Cape Province under his stewardship has exceeded all expectations.

(b) Radio Sales and Marketing targets (from April 201 1 to March 2012, SABC EC Province achieved R21 225 252 vs. the actual target of R17 596 996)
-uMhlobo Wenene Marketing targets (89 million)
-TV licence contribution towards the national achievement of 1 billion cash collection was exceeded.
-ICASA programming and News Compliance
-Universal Access targets through Low Power Transmitters in rural areas
-Stakeholder Management to grow new revenue streams and forge relationship with key Stakeholders. Employment Equity targets, i.e. affirmation of female managers and people with disability.
-The listenership of the two radio stations, Tru.fm Rams i.e. (Increased by 22000 from 317000 to 339000). Tru.fm and uMhlobo Wenene fm has been rated as one of the best run and stable stations. uMhlobo Wenene fm listenership increased by 4.1 million listenership.
-Empowering of the youth through our internship programmes i.e. Technology, News, Administration, HR, Finance and Communications.

Reply received: November 2012

QUESTION NO: 3042
DATE OF PUBLICATION: 7 November 2012
QUESTION PAPER NO:
DATE OF REPLY:
Mrs J. D Kilian (COPE) to ask the Minister of Communications:

1. Whether the appointment of audit committees of the specified public entities reporting to her, was done in accordance with the Public Finance Management Act (PFMA), Act 1 of 1999, and Treasury regulation 3.1.2; if so, what are the relevant details in each case; if not, in each case, why not;

2. Which (a) body or office bearer appointed the members of the audit committees and (b) process was followed to ensure requisite experience, qualifications and skills in the audit committees;

3. Whether she intends to monitor the functioning of the audit committees on a quarterly basis; if not, why not; if so, (a) how and (b) which unit in her department will be responsible for the monitoring role;

4. Whether her department has been capacitated to fulfill the oversight role effectively; if not, why not; if so, what are the relevant details?
NW3860E
Reply
1. Yes, they are appointed in terms of the PFMA and regulation 3.2 read together with section 94 of the Companies Act, 2008 where relevant.

2. (a) The Audit Committees of ICASA and USAASA are appointed by a committee of the Council (made up of two Councillors and a member of the outgoing Audit Committee) and the Board respectively, while those of the SAPO, SABC, Sentech and Nemisa are elected by the AGM.

(b) As guided by section 77 of the PFMA, regulation 3.2 of the Treasury Regulations read together with the regulation 42 of the Companies Regulations 201 1. Section 94of the Companies Act the Audit Committees to be elected at the AGM.

3. Yes

(a) In accordance with the terms of reference of the Audit Committee which should reflect the functions and roles of the committee as outlined in the PFMA, the Companies Act and the respective regulations.

(b) The SOE Oversight and Support Unit.

4. Partly capacitated, a new structure is being populated.

Reply received: December 2012

QUESTION NO: 3041

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mrs JD Killian (Cope) to ask the Minister of Communications

1) What amount in spectrum fees for Telkom is payable to the independent Communications Authority of South Africa(ICASA) in terms of the new regulations

2) WhetherTelkom has made full payment to ICASa, if not, why not

3) Whether she intends taking steps to ensure Telkom complies with the regulations, if not, why not, if so (a) what steps (b) when and (c) what are the further relevant details?

REPLY

1) R99 million rands

2) Yes they have paid R99 million and have R116 851 outstanding for the current invoice

3) There is no need to take any further steps against Telkom because the entity is compliant.

Reply received: November 2012

QUESTION NO: 3013
DATE OF PUBLICATION: 26 October 2012
DATE OF REPLY: 1 November 2012
Mr J J van der Linde (DA) asked the Minister of Communications:

(a) Whether the accounting officer submitted the annual financial statements for the financial year ending 31 March 2012 to her by 31 August 2012; if not, why not and

(b) On what date (i) were the statements submitted to her and (ii) did she submit the annual report and financial statements to Parliament?

REPLY

(a) The annual financial statements for the financial year ending 31 March 2012 were submitted to me on the 31" August 2012.

(b) (i) The annual financial statements were submitted to me on the 21^st August 2012
(ii) The annual report and the financial statements were tabled in Parliament on the 28^th September 2012 as per the attached letters of the tabling of the Departmental annual report in Parliament.

See attachment: Letters of the tabling of the Department annual report in Parliament

Reply received: December 2012

QUESTION NO: 2970
DATE OF PUBLICATION: 19 October 2012
QUESTION PAPER NO: 34
DATE OF REPLY:

Mrs JD Killian (Cope) to ask the Minister of Communications:

(1) With reference to the appointment of certain persons (details furnished) to the SABC Board, (a) what are the details of the (i) specific processes and (ii) applicable legislation that were followed in their appointment, (b)(i) when and (ii) how were advertisements placed, (c) what was the number of
shortlisted candidates in each case, (d) when were interviews by the board concluded and (e) when was the board's approval obtained;

(2) Whether names of the candidates were presented to her for final selection; if not, who signed the appointment letters; if so?

(3) Whether any of the specified persons served as a service provider to the SABC whilst acting in an executive capacity on the board; if not, how was this conclusion reached; if so, what are the relevant details;

(4) Whether there has been any deviation from the regular appointment processes; if not, what is the position in this regard; if so, what are the dates of condonement of such actions by the board and/or shareholders?

REPLY:

Iam informed by SABC that:

(1)(a)(i) Mr Phil Molefe and Mr Robin Nicholson were appointed as acting GCEO's through the Delegation of Authority of the SABC Board. Mr Justice Ndaba was never a Board Member.

The appointment to act in a position is followed in terms of the SABC's Delegation of Authority (DAF) Framework. In this case the Board is the delegator of authority. To act in a position is a temporary stop-gap measure and it does not create any expectation of permanency in the role.

(ii) The SABC's DAF is in compliance with the PFMA, Broadcasting Act, Companies Act and other relevant legislations.

(b) (i) The advert for the CFO was advertised in October 201 1 and the one for the GCEO in August 2009.
(ii) The CFO's advert was placed in the Sunday Times, City Press and in the SABC intercom. The GCEO's advert was placed in the Sunday Times and City Press Newspapers.

(c) Five candidates were shortlisted and interviewed for the CFO's position and three candidates for the GCEO's position.

(d) Ms Duda was appointed by the Board by virtue of her position of CFO; she commenced her duties on 1 March 2012. She was interviewed and appointed as CFO. Interviews were held on various
dates in January 2012. Mr. Solly Mokoetle was appointed as an Executive member of the SABC Board by virtue of his position of GCEO. He was interviewed and appointed as GCEO. Interviews were held on various dates with the lnterim Board of the SABC in November 2012.

(e) Ms Duda's appointment letter was signed by the Chairperson of the SABC Board and the GCEO of the SABC in Johannesburg on the 14 March 2012. Mr. Mokoetle's appointment letter was signed by the
lnterim Chairperson of the SABC Board in Johannesburg on the 14" December 2009.

(2) Candidates for acting positions do not require Ministerial approval. The GCEO and CFO fixed term candidates are submitted to the Minister for final approval.

(3)Only Mr. Justice Ndaba's company was originally engaged as a service provider to the SABC, however when he was appointed as the Head of Strategy and acting GE: Human Capital Services the contract of the service provider was terminated.

(4) There were no deviations from the regular appointment processes. Recruitment policies and relevant regulations were considered.

Reply received: December 2012

QUESTION NO: 2944

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mrs JD Killian (COPE)to ask the Minister of Communications:

(1) Whether (a) her department and (b) all entities reporting to her have fraud-prevention plans in place; if not, why not; in each case; if so,

(2) Whether she has found any interference by (a) the boards of public entities or (b) Independent Communications Authority of SA (ICASA) councillors with regard to (i) the administration of the specified fraud prevention plans and (ii) fraud investigations in the supply chain management sections of each specified entity; if not, what is the position in each case; if so, in each case, (aa) what interference and (bb) what are the further relevant details;

(3) What steps does she intend to take to ensure compliance with Treasury regulations?

NW3701

REPLY

· The Department of Communications

(1)(a) The Department has a Fraud Prevention Plan (FPP) consisting of a Fraud Prevention Strategy, Fraud Prevention Policy, Fraud Prevention Implementation Plan, Fraud Investigation Procedure and Whistle-blowing Policy.

(2)We have neither identified any situation where the implementation of the above was stalled, controls relating to Fraud Prevention overridden nor any interventions by any senior or junior official.

· SAPO

Yes, South African Post Office does have a fraud prevention strategy that is led in implementation by the Security and Investigations Unit.

· Sentech

Yes, Sentech does have a fraud–prevention plan.

· ICASA

Yes, ICASA does have a fraud-prevention plan

· NEMISA

Yes, NEMISA does have a fraud prevention plan in place.

· USAASA

Yes, USAASA has a Fraud Prevention Plan in place, which was approved on the 1^st April 2012.

· SABC

Yes, the SABC has a Fraud Prevention Plan and Policy in place.

Reply received: December 2012

QUESTION NO: 2943
DATE OF PUBLICATION: 19 October 2012
QUESTION PAPER NO:
DATE OF REPLY:

Mrs JD Killian (Cope) to ask the Minister of Communications:

(1) Whether, with reference to section 6A in the lndependent Communications Authority of SA Act, Act 31 of 2000, all serving members of the lndependent Communications Authority of SA (ICASA) have entered into performance contracts with her; if not, (a) which members have signed and (b) on what date in each case; if so, when was each specified agreement signed;
(2) Whether she will provide Mrs J D Kilian with copies of the contracts; if not, why not;
(3) Whether any assessment of councillors has taken place; if so, (a) when and (b) by whom;
(4) How do the contracts in relation to the executive management impact on the effective
functioning of ICASA at present.
(5)By when does she intend to take steps to ensure compliance with the legislative provisions to ensure (a) monitoring and (b) evaluation of the chairperson and councillors of ICASA?

REPLY

(1)
a) All councillors' including the Chairperson have submitted their performance contracts to the Minister.
b) The Minister and councillors have been having discussions regarding their performance agreements, and the Minister and the councillors agreed on the main tenets and deliverables that must be achieved. Changes on the performance agreement were requested by the Minister, which the councillors affected and the Minister has signed all councillors' performance contracts on 12 November 2012.

(2)Yes. ICASA is a Chapter 9 Institution which accounts directly to Parliament. In this
regard, the Performance Agreements would be made available to the Honourable
Member of Parliament.

(3)
a) No.
b) Section 6A(4) of the ICASA Act, requires that the Minister, in consultation with the National Assembly to constitute a panel that will evaluate the performance of the Chairperson and other councillors of ICASA. In this regard, the Performance Management System for the Chairperson and other councillors
of ICASA stipulates that there should be at least five members of the Evaluation Panel, one of which must be designated as the chairperson.

In broad terms, the panel must be constituted to include a retired High Court Judge, a representative from the Office of the Auditor-General, respected experts from academia, a representative from organised consumer groups as well as an independent consultants or experts in the electronic communications, broadcasting or postal services sectors.

The Minister has gazetted the Terms of Reference of the Evaluation Panel and has called on members of the public to nominate persons that would serve on the panel. Once the nominations have been received, the Minister will, in writing, inform the National Assembly to establish a Nominations Committee which will in turn shortlist and recommend to the Minister, persons to serve on the Evaluation Panel. Additionally, the Minister has written to the Minister of Justice & Constitutional Development, Honourable Mr Jeff
Radebe, to nominate a retired High Court judge to serve on the panel. The Minister has also written to the Auditor-General, Mr. Terence Nombembe, to nominate a competent senior official to serve on the panel. It is envisaged that together with the National Assembly, the Minister will be able to constitute a panel by the end of the current financial year.

(4)The Performance Management System for the Chairperson and other councillors of ICASA has set out key performance areas, targets and relevant indicators. These performance targets are aligned to the strategic objectives of ICASA as well as the strategic plan and its targets for the current financial year. The deliverables of the Authority for this current financial year are set out in the Annual Plan which was
presented to the National Assembly. Both the executive management and the Council must seek to, in discharging their responsibilities, meet and deliver on these agreed milestones.

The common objective is to ensure that ICASA as a whole performs in accordance with set goals and targets and that such goals and targets are consistently being met in an efficient, effective and measurable manner. The performance agreements of the Councillors crystallise this notion and therefore should contribute towards a more efficient and effective ICASA.

(5)
a) By the end of current financial year, all steps would have been taken to comply with legislative provisions on the Performance Management System.
b) It is envisaged that by April May 2013, the Minister and the National Assembly will receive a report on the Performance of the Chairperson and other councillors from the Evaluation Panel.

Reply received: December 2012

QUESTION NO: 2845

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mr. GD Schneeman (ANC)to ask the Minister of Communications:

3.1 (a) How many post offices are in need of upgrading and renovation, (b) over what period will these upgrades take place and (c) what are the estimated costs;

3.2 (a) How many areas are without access to a post office and (b) over what period will post offices be provided in these areas;

3.3 (a) How many vacancies are there in (i) her department and (ii) entities that report to her department and (b) by when will these vacancies be filled? NW3518E

REPLY

SAPO

(1) (a) There are currently 1,065 post offices that require upgrading and renovations

(b) It is anticipated that the upgrades and renovations will require a period in excess of 10 years.

(c) It is estimated that the amount required to undertake the upgrade & renovations is in the order R2.13 billion at current costs, un-escalated over the period of implementation.

(2) (a) By applying the ICASA requirement of 1 post office per 10,000 populations and

by utilizing current population figures, there is a requirement for 2,331 additional

points of presence nationally.

(b) To provide these additional points of presence will also require a period in

excess of 10 years, however un-serviced and under-serviced areas are

currently prioritized.

(3) (a) Between June and October SAPO increased its staff from approximately 15 000

To 21 000, the Post Office as at 5 October 2012 has appointed 5806 casual

employees for a period of 12 months, in line with the flexible labour strategy they

presented to the PCC, which is phase. Phase 2 involves permanent

appointments, there are currently 3 296 vacancies which is dependent on the

availability of funds and operational requirements.

Sentech

There are 76 vacancies in total in the Sentech SOC Limited, which are broken down as follows: four (4) Executives; eleven (11) Senior Managers; thirty nine (39) Managers and Specialists and twenty two 22 Operations. Please see table below:-

Level	Total Vacancies	Completion Date
Executive	4	31 March 2013
Senior Manager	11	31 March 2013
Managers & Specialist	39	31 March 2013
Operational	22	31 March 2013
Total	76

All the vacancies will be filled by the 31 March 2013

ICASA

ICASA has 58 vacancies as at 30 September 2012.

The 58 vacancies will not be filled pending the conclusion of the Organisational re alignment. The Organisational re-alignment is about the review of the organisational structure and review of the competencies for the future business.

NEMISA

With reference to the question 3 (a) (ii) and (b)

Position	Department	Filled by when
Head of Business Development and Marketing	Operations	Subject to integration indeterminate
Chief Executive Officer	EXCO	Subject to integration indeterminate
Animation Lecture	Training	January 2013
Personal Assistant to COO	Operations	Subject to integration indeterminate
Personal Assistance to CFO	Finance and Administration	Subject to integration indeterminate
Total 5

The SABC

SABC

There are currently 223 budgeted vacancies within the SABC at the following

Top and Senior Management	27
Middle Management	41
Junior Management	23
Supervisory level	72
Rest of Staff	60
Total	223

· The processes of filling these vacancies are at various stages, ranging from positions being advertised to offers made to successful candidates after the interview.

· Priority is being given to the Executive level and other critical vacancies, the lower level vacancies are then considered in line with the revised corporate structure.

· Staff cost management is always taken into account in addressing the vacancies within SABC.

USAASA

USAASA has two vacancies: CEO, Executive Manager: BDS, Senior Manager: IT, Internal Auditor, & 2x Communications Officers. (b) the vacancies relating to the CEO and the Executive Manager: BDS have been advertised and will be filled by end of financial year.

Reply received: December 2012

QUESTION NO: 2844
DATE OF PUBLICATION: 19 October 2012
QUESTION PAPER NO: 34
DATE OF REPLY:
Mr G D Schneeman (ANC) to ask the Minister of Communications:

(1) Whether the construction of a post office is planned in Cosmo City in Johannesburg; if so, when is it anticipated that the post office will be operational; if not,

(2) whether consideration will be given to providing a (a) post office for the area and (b) temporary post office in the interim; if not, what is the position in this regard; if so, what are the relevant details;

(3) whether there are any plans for the Universal Service and Access Agency of South Africa (USAASA) to relocate to a more accessible location; if not, why not; if so, what are the relevant details;

(4) whether there are any plans to upgrade the Honeydew Post Office in Johannesburg; if not, what is the position in this regard; if so, when is the upgrade set to take place;

(5) whether there are any plans to fully utilise the SA Broadcasting Corporation (SABC) television studios in Mafikeng; if not, why not; if so, what are the relevant details?

REPLY:
(1) The Cosmos City Shopping Centre is under construction, and the Post Office has secured accommodation within this centre. Shop fitting is planned for February 2013 and the Post Office is expected to be operational as from 1 April 2013.

(2) SAP0 is considering the mobile Post Office concept as an interim measure. Currently a Contractor is in the process of fitting out a vehicle which may be utilized for this purpose.

(3) Currently there are no concrete plans to relocate USAASA's Head Office. However, the Board has noted the concerns of the Portfolio Committee regarding inaccessibility of our offices and will be engaging on the best cost analysis should we move offices having due regard that USAASA has entered into a lease agreement for the period of five(5) years from 1 August 2010 to 31 August 2015.

(4) Specifications have been drafted for the security of this branch. The upgrade should be completed by mid-January 2013.

(5) SABC North West has five (5) TV studios which are currently not utilized. The plan is to utilize one of the, studio 5 for 24 hour News broadcast, it comprises of production studio and floor space. It is currently being revamped and getting ready for News 24 hour broadcast. Utilization of the studio is expected to be at least4 hours a day. Recommendations were made to Group Executive: Stakeholder Relations and Provinces with regard to underutilized TV studios particularly studio 1 to 4. These studios are measuring from 148 to 896 square meters in size.

-It was proposed to turn the facilities into an academy to produce skills TV and Radio production/broadcast (as part of our quest to drive the Africa agenda, our initiative will immensely contribute to the country's vision).
-SABC North West has a working relationship with North West University which was established over the years. This provides an opportunity for communication and journalism students to utilize the facilities and gain practical work exposure.
-DTT launch will provide SABC with more television channels and that offer the North West Province an opportunity to have some channels broadcasting from Mafikeng.

-The studios in Mafikeng have also been including in the SABC's disaster recovery plan. Should the need for additional studios arise, Mafikeng will be considered if practical.

Reply received: December 2012

QUESTION NO: 2745
DATE OF PUBLICATION: 19 October 2012
QUESTION PAPER NO: 34
DATE OF REPLY:

Mr G D Schoeeman (ANC) to ask the Minister of Communications

(1) (a) How many post offices are in need of upgrading and renovation, (b) over what period will these upgrades take place and (c) what are the estimated costs:

(2) (a) how many areas are without access to a post office and (b) over what period will post offices be provided in these areas;

(3) (a) how many vacancies are there in (i) her department and (ii) entities that report to her department and (b) by when will these vacancies be filled?
NW3518E

REPLY:

(1) (a) There are currently 1,065 post offices that require upgrading and renovations.

(b) It is anticipated that the upgrades and renovations will require a period in excess of 10 years.

(c) It is estimated that the amount required to undertake the upgrade & renovations is in the order R2.13 billion at current costs, un-escalated over the period of implementation.

(2) (a) By applying the ICASA requirement of 1 post office per 10,000 population and by utilizing current population figures, there is a requirement for 2,331additional points of presence nationally.

(b) To provide these additional points of presence will also require a period in excess of 10 years, however un-services and under-serviced areas are currently prioritized.

(3) (a) The SA Post Office has approximately 3 296 vacancies as at 31 September 2012.

(b) There is no specific deadline date by which the vacancies will be filled as the filling of these is dependent on the available funding and operational requirements.

Sentech

With reference to the question 3 (a) (ii) and (b)

There are 76 vacancies in total in the Sentech SOC Limited, which are broken down as follows: four (4) Executives; eleven (1 1) Senior Managers; thirty nine (39) Managers and Specialists and twenty two 22 Operations. Please see table below:-

Level	Total Vacancies	Completion Date
Executive	4	31 March 2013
Senior Manager	11	31 March 2013
Managers & Specialist	39	31 March 2013
Operational	22	31 March 2013
Total	76

All the vacancies will be filled by the 31 March 2013

ICASA

With reference to the question 3 (a) (ii) and (b)

ICASA has 58 vacancies as at 30 September 2012.
The 58 vacancies will not be filled pending the conclusion of the Organisational realignment. The Organisational re-alignment is about the review of the organisational structure and review of the competencies for the future business.

NEMISA

With reference to the question 3(a)(ii) and (b)

Position	Department	Filled by when
Head of Business Development and Marketing	Operations	Subject to integration indeterminate
Chief Executive Officer	EXCO	Subject to integration indeterminate
Animation Lecture	Training	January 2013
Personal Assistant to COO	Operations	Subject to integration indeterminate
Personal Assistant to CFO	Finance and Administration	Subject to integration indeterminate

Total 5

SABC

With reference to the question 3 (a) (ii) and (b)

There are currently 223 budgeted vacancies within the SABC at the following

Top and Senior Management	27
Middle Management	41
Junior Management	23
Supervisor level	72
Rest of Staff	60
Total	223

The processes of filling these vacancies are at various stages, ranging from positions being advertised to offers made to successful candidates after the interview.

Priority is being given to the Executive level and other critical vacancies, the lower level vacancies are then considered in line with the revised corporate structure.

Staff cost management is always taken into account in addressing the vacancies within SABC.

USAASA

With reference to the question 3 (a) (ii) and (b)

(ii) USAASA has the following vacancies:

The Chief Executive Officer (CEO) position

Executive Manager: Business Development Services (BDS)

Senior Manager: IT

Internal Auditor

Communication Officers X 2

(b) The CEO and Executive Manager: BDS positions have been advertised and will be filled by the end of financial year.

Reply received: December 2012

QUESTION NO: 2745

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mrs JD Killian (Cope) to ask the Minister of Communications:

(1) (a) On what date did the previous Chief Operating Officer (COO) of the SA Broadcasting Corporation vacate the position, (b) when were advertisements calling for applications for the position of COO (i) published and (ii) closed, (c) in which news media were the advertisements published, (d) when will shortlisting of applicants take place and (e) when does the board intend to finalise the appointment of the SABC's COO;

(2) (a) What is the SABC's policy on the minimum qualifications for appointment to the position of (i) COO and (ii) other executive management positions and (b)(i) who signed the appointment of the current acting COO to act in that capacity, (ii) on what date was the appointment signed, (iii) what is his current monthly remuneration package as acting COO and (iv) how does it differ from that of the COO;

(3) Whether the specified minimum qualifications were published in the advertisement calling for applications for the COO position; if not, why not; if so, what are the relevant details;

(4) Whether the person currently acting as COO is one of the shortlisted candidates; if not, why not; if so,

(5) Whether the SABC intends to consider the 2003 Deloitte and Touché Internal Audit Report of the person's suitability for a management position; if not, why not; if so, what are the relevant details?

NW3390E

REPLY

(1) (a) The position became vacant on 31 December 2006.

(b) (i) The position was originally advertised on the 9^th July 2006 and again in January of 2012.

(ii) The first advert was closed on 24^th July 2006 and the second one in January

2012.

(d) No short listing will take place as the advert was later retracted.

(e) As soon as the litigation around this matter has been resolved.

(2) (a)(i)The SABC does not have a policy on minimum qualifications for the position of

COO.

(ii)The SABC does not have a policy on minimum qualifications for other executive management positions.

(b)(i) The Chairperson of the SABC Board, Dr Ben Ngubane.

(ii) It was signed on 18 November 2011.

(iii) R1 612 000 as per the 2011/12 Annual Report

(iv) R2 555 000 (9 months), as per the 2006/07 Annual Report

(3) The advertisement for the COO function has in the past not included qualifications. The one that was published internally was a replica of the last previous advertisement alluded to the above.

(4) Refer to 1(d) above i.e. no short listing has been done

(5) The current leadership of the SABC is not aware of the contents of the 2003 Delloitte and Touché Internal Audit Report and hence it cannot commit to implementing its contents

Reply received: December 2012

QUESTION NO: 2744
DATE OF PUBLICATION: 12 October 2012
QUESTION PAPER NO: 32
DATE OF REPLY:
Mrs J D Kilian (Cope) to ask the Minister of Communications:

(l)(a) When was the agreement between the board of the SA Broadcasting Corporation (SABC) and The New Age (TNA) for live coverage of the TNA breakfast meetings (i) entered into and (ii) signed, (b) what is the duration of the live coverage agreement with TNA media, (c) who signed the agreement on behalf of the SABC and (d) when was the agreement endorsed by the board of the SABC;

(2)(a) what are the quantifiable (i) direct and (ii) indirect benefits of the agreement for the SABC as public broadcaster, (b) how may 45-minute TNA media breakfast shows have been covered by the SABC, (c) what is the per minute cost of Morning Live advertorial space, (d) what revenue did the SABC derive from the TNA breakfast meetings and (e) what is the value of the advertorial space that has been offered to TNA breakfast meetings up to the latest specified date for which information is available;

(3)what are the details of costs incurred by SABC flowing from the TNA media agreement for (a) subscription to TNA newspapers and (b) other specified items or services? NW3389E

REPLY

I (a)(i) The effective date of the agreement is the 1^st March 2012
(ii) The final signature on the agreement was 13 March 2012
(b) The term of the agreement is 36 months from the effective date of the agreement.
(C) The SABCs GCEO signed the agreement on behalf of the SABC and it was witnessed by the Acting COO.
(d) This agreement is a non standard contract the term of which is not restricted by the Delegation of Authority Framework. In instances where the SABC does not incur costs in relation to organizing the event and related security. The cost of broadcasting the event is borne by the SABC as a normal news feature over a three year period which is within the approval levels by management.
2(a)(i)-(ii) The direct benefit of the media partnership with TNA is that SABC is able to deliver on its mandate to inform and educate the nation by enabling Government, Organs of State and other bodies important to the development state of South Africa to account to the public. The guests use the platform to discuss projects, what they mean for ordinary citizens, business, labour and other interested parties, and how they can access any benefits accruing in relation to the projects. The sessions also provide an opportunity for the public to give its own opinions on the matters and possibly influence the processes that the interviewees ay be engaging. The content is archived for later use and becomes video based public record of commitments made, progress reported etc. It is important to note that they become a historical record of our country.
(b) 33 in total
(c) The sales division does not sell "advertorial space"
(d) The TNA breakfast meeting coverage did not provide for Classic Advertising or Sponsorship on commercial terms. Accordingly, no revenue accrued to the SABC.
(e) The TNA breakfast meeting coverage did not provide Classic Advertising or Sponsorship on commercial terms. Accordingly, no revenue accrued to the SABC
(3) The costs for the newspaper as incurred in a separate agreement are:
(a) Subscriptions
May 2012-Paid R22 638
June 2012-Still to be paid R12 249
July 2012-Still to be paid R12 833
August 2012-Still to be paid R12 833
(b) March 201 I-paid R147 252

Reply received: October 2012

QUESTION NO. 2716

INTERNAL QUESTION PAPER NO. 31

DATE OF PUBLICATION: 21 September 2012

Mr NJ van der Berg (DA) to ask the Minister of Tourism:

1.Whether the Department of Tourism has awarded any contracts to Kopano Ke Matla Investment since its establishment in 1996; if so, in each case, (a) when was the contract awarded and (b) what was the (i) nature of the contract and (ii) the total accumulative value of the tender? NW3334E

MR NJ van den Berg (DA) SECRETARY TO PARLIAMENT

HANSARD

PAPERS OFFICE

PRESS THE MINISTER OF TOURISM ANSWERS:

(1) No, the National Department of Tourism did not award any contracts to Kopano Ke Matla Investments.

(a) Not applicable.

(b) (i) Not applicable.

(ii) Not applicable.

Reply received: December 2012

QUESTION NO: 2698

DATE OF PUBLICATION: 21 September 2012

QUESTION PAPER NO:

DATE OF REPLY: 12 December 2012

Mr. TD Lee (DA) to ask the Minister of Communications

(1) Whether her department has awarded any contracts to a certain company Kopano

ke Matla Investment company since its establishment in 1996; if so, in each case,

(a) when was the contract awarded and (b) what was the (i) nature of the contract

and (ii) total accumulative value of the tender?

NW.3316E

REPLY

(1) The Department has never awarded any contract to Kopano ke Matla

Reply received: November 2012

QUESTION NO: 2484
DATE OF PUBLICATION: 7 September 2012
QUESTION PAPER NO: 29
DATE OF REPLY:
Mr J R B Lorimer (DA) to ask the Minister of Communications:

(1) Whether (a) her Ministry, (b) her department and (c) any entity reporting to her plan to host end-of-year parties; if not, in each case, what is the position in this regard; if so, in each case, (i) for how many persons and (ii) at what cost;

(2) Whether the cost of the specified end-of-year parties has been budgeted for in the current financial year; if not, from where will the funding be sourced; if so, (a) what amount has been budgeted and (b) from which part of the budget will it be incurred?
NW3090E
REPLY
DOC
(1)(a) No
(b) Yes, the Department will host the year function which serves as a team building exercise

(i) 303
(ii) R200 000 for all employees

(2) (a) R200 000
(b) In the Director-General's budget

State Owned Entities:

SENTECH
(1) Year-on-year SENTECH budgets for and hosts year-end functions for its approximately 550 employees (permanent and temporary) as part of its employee relations strategy. These year-end functions further to serve as an important internal marketing tool for getting colleagues to network and engage outside of a working environment.

(2) The year-end functions are budgeted for under the company's Corporate Communications Department. The budgeted cost of all employees at Head Office and 15 Operations Centres is R200 000. 00

NEMISA

(1) No plans to host a staff year-end party have been put in place, due to budget constraints.
(2) Not budgeted for in the current financial year.

USAASA

(1) (c) USAASA; has intentions of hosting a year-end function for staff as a means to alleviate pressures undertaken by staff in this year and to appreciate staff for the cooperation and flexibility shown during the forensic, (ij) his will be for the whole staff compliment of 64 staff and 7 board members
(ii) R100, 000

(2) The allocation is part of the current year budget (a) R100, 000 has been budgeted (b) from line item of Events in the USAASA budget.

lCASA
(1) The Independent Communications Authority of South Africa (ICASA) arranges and hosts Year-end functions for its employees on an annual basis, at the end of each calendar year.
(i) The functions are held for both Head Office employees in the Sandton Office which caters for 303 people, including Council, Executive Management and Staff and for 45 people in the Regional offices of Bloemfontein, Durban, Port Elizabeth and Cape Town.
(ii) The costs for hosting Year-End functions is estimated between R250 000 - R300 000.

(2) The cost of the specified end-of-year parties are budgeted for. However, the amount for year-end function for the financial year 2012113 was re-allocated from the Communications and Internal Relations Divisions budget to the Human Resources Divisions budget for purposes of funding the Organizational Re-alignment project.

SAPO
(1) The South African Post Office will not be hosting an end of year party as yearend is the busiest time for the organization.

(2) Not applicable

SABC
1 (c) The SABC introduced Austerity Measures in 2009 to ensure that the organization was able to minimize expenditure. One of the Austerity Measures put in place was on expenditure for year-end functions. Usage of the budget is subject to Group Executive approval. To date no requests have been received for approval to spend against the allocated budget.
(i) A provision for 3,639 staff members;
(ii) A provision has been made in the budget for FY 12/13 for year-end functions to the value of R926 060.00.

2 (a) The current budget for a year-end function is R926 060.00 subject to Group Exco approval.
(b) Should expenditure be incurred in this financial year; it will be incurred from the Operational Expenditure budget. The Group Executive has not yet been presented with a request for approval of a year-end function.

Reply received: October 2012

QUESTION NO: 2395
DATE OF PUBUCATION: 1 September 2012
QUESTION PAPER NO: 29
DATE OF REPLY: 02 October 2012
Ms. LL van der Merwe (IFP) to ask the Minister of Communications:

Whether the SA Broadcasting Corporation has or intend to nm (a) prograrnmes on the rights of people with disabilities and (b) educational programmes on the different types of disabilities; if not, why not; If so, what are the relevant details?
NW2623E

REPLY:
Yes,

South A b became a signatory to the United Nations Convention an the Rights of Persons with Disabilities, on 20 March 2007 and ratified an 30 November 2007.
The Portfolio Committee and the Select Committee on Women, Children and People with Disabilities, held a public hearing on 25 - 28 July 2012 to consider the Implementation of the United Nations Convention on the Rights of People with Disabilities.

Whilst the SABC has not, bar the commissioning of DTV (bf the heating impaired) and the inclusion of disability issues and characters In same of our other programming, dealt directly with the rights of People with Disabilities, the outcomes of the public hearings are eagerly awaited. As we move forward in our content planning for the upcoming years, we endeavour to pay very specific attention to the issues raised, possible solutions and how we can best embrace these in creating programming that will empower this marginalized sector of our population. Over and above, we commit ourselves to the Disability Right Charter.

The SABC also intends to roll out a robust Awareness Campaign at the grid of September until the end of November In a build up to international Disability Day on 3 December 2012.
The purpose of the Campaign Is to sensitize and to create awareness on the different types of disabilities.
The following is a view of TV programming that the SABC is currently rolling out for the disabled community.

The SABC provides subtitling, sign language interpretations and programmes featuring presenters with Disabilities that deals with issues around Disability. Our programming includes News, entertainment, informal knowledge building, drama and documentaries.

See attachment: SABC Programmes for the Disabled (Subtitled)

Reply received: September 2012

QUESTION NO: 2283

DATE OF PUBLICATION: 24 August 2012

QUESTION PAPER NO: 27

DATE OF REPLY:

Mr. M Swart (DA) to ask the Minister of Communications:

(1) Whether, with reference to her reply to question 1374 on 27 July 2012, the issue of the voice recorder was reported to the SA Police Service (SAPS) for investigation; if not, why not; if so, what are the relevant details;

(2) What steps have been taken by her department to ensure that the incidents of fraudulent international calls made on her department's private automatic branch exchange (PABX) system which led to a loss of R1,272 million will not recur;

(3) Whether any steps have been taken against the drivers of departmental vehicles who were involved in accidents, where excess amounts could not be recouped from insurance; if not, why not; if so, what are the relevant details?

REPLY:

1) The incident was reported to the Brooklyn Police Station on 21 February 2012 wit case number 723/02/2012 as reference.

2) The incident occurred due to an invalid operator number on the mailbox of one of the extensions, which is changeable by default. The configuration on the system has been changed such that the operator number for all extensions is ready-only and can therefore not be changed by users. The system was also changed to force the operator number to 9 which are linked to switch board extensions.

3) All the cases against the drivers that have been referred to the Departmental Legal Services the officials did not forfeit their state cover and the excess payments made were written off in accordance with the Treasury Regulations and Departmental Policies and Procedures.

The Departmental policy on the Management of Losses requires from an employee to report accidents to the South African Police Service, a copy of the statement made at the Police together with the form completed for the departmental insurance company. All accidents are referred to the Departmental Legal Services to determine liability. Chapter 12.2.1 of the Treasury Regulations stipulates that "An institution must accept liability for any loss or damage suffered by another person, which arose from an act or omission of an official as a claim against the state and does not recover compensation from an official, provided the official shall forfeit this cover if he or she, with regard to the act or omission, is liable in law and -

(a) intentionally exceeded his or her powers;

(b) made use of alcohol or drugs;

(d) acted recklessly or intentionally;

(e) without prior consultation with the State Attorney, made an admission that was detrimental to the state; or

(f) failed to comply with or ignored standing instructions, of which he or she was aware of or could reasonably have been aware of, which led to the loss, damage or reason for the claim, excluding damage arising from the use of a state vehicle; and

(g) in the case of a loss, damage or claim arising from the use of a state vehicle, the official -

(i) used the vehicle without authorization;

(ii) did not possess a valid driver's licence or other appropriate licence;

(iii) did not use the vehicle in the interest of the state;

(iv) allowed unauthorized persons to handle the vehicle; or

(v) deviated materially from the official journey or route without prior authorization; are circumstances in which an official forfeit state cover. According to paragraph 12.2.3 of the Treasury Regulation monies should be recovered from an official if he/she has forfeited state cover in terms of paragraph 12.2.1.

All accidents are reported to risk management to determine liability of the driver involved in the accident. After the investigation they must determine liability and if the driver is not liable the matter should be referred to the insurance to recover the loss from the third party. We have not received any feedback in the past after an investigation to try to recover the excess from the insurance.

Reply received: December 2012

QUESTION NO: 2265

DATE OF PUBLICATION: 24 August 2012

QUESTION PAPER NO: 27

DATE OF REPLY:

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

(1) What (a) has been the total capital investment to date into the 24-hour digital news channel of the SA Broadcasting Corporation (SABC), (b) are the detailed monthly operational costs and (c) will the contribution of Multichoice Digital Satellite Television (DSTV) be for the next five years;

(2) On what (a) channel and (b) date will the SABC 24-hour news channel begin to broadcast;

(3) Whether her department has commissioned a feasibility study for the 24-hour news channel; if not, why not; if so, (a) who conducted the study, (b) at what financial cost and (c) what were the findings?

NW2844E

REPLY:

(1) (a) The total CAPEX budget was R45, 70m. The final projected cost is R30, 6m. The saving was as a result of the cameral not being purchased. Cameras were redeployed from within Henley Studios to save costs.

(b) To date, News and Current Affairs have been doing the dry runs which were funded from the existing operational budget. These costs are made up mainly of freelance costs. Approximately R200k has been spent since the inception of the dry-runs on 20 June 2012.

(c) The channel will generate total revenue (content exploitation) of R100m over a period of 5 years from Multichoice. The disbursements from Multichoice will be as follows:

Content Exploitation - DSTV

FY 2012/123

FY 2013/14 (10 000)

FY2014/15 (10 000)

FY2015/16 (10 000)

FY2016/17 (10 000)

Total

(100 000)

(2) (a) Multi Choice Africa has confirmed that the SABC News will be on channel 404 on the DSTV Bouquet.

(b) The date of when the SABC 24 hours news channel will begin to broadcast is dependent on SABC securing funding.

(3) (a) (i) In November 2011, ITN Consulting under the leadership of the then Acting GCEO undertook a 7 week project to help the SABC develop a plan for launching News Channel.

(ii) An expert ITN Consulting team including media-specialists in strategy, editorial and technology consultants was assembled to conclude the study.

(b) The total expenditure to date id R1, 355 million.

(c) (i) From the success of the eNews channel; there is a clear indication that there is an appetite for wider availability of South African news however this was limited to:

- The DSTV platform,

- Broadcasting only live news during 30 minutes of each hour.

(ii) The issue of limited access as a result of affordability was the major hindrance as more than half of the households with DSTV are from the top two LSM groups; whilst just 3% are from LSM groups 1 to 5,

(iii) Converting the existing SABC TV News operation to a live 24-hour TV channel requires an SABC News budget increase of ZAR 109m in 2012.

Reply received: September 2012

QUESTION NO: 2253

DATE OF PUBLICATION: 24 August 2012

QUESTION PAPER NO: 22

DATE OF REPLY:

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

1. With reference to Telkom's sponsorship of the SA Communist Party's 91st celebratory gala dinner, what (a) are the (i) names and (ii) positions of the guests for which a table was bought and (b) is the breakdown of the cost to Telkom of purchasing the table;

2. Whether the Telkom board had approved the decision to contribute to the SACP gala dinner; if not, why not; if so, what are the relevant details;

3. Whether any of her department's staff were Telkom's guests; if not, why not; if so, what are their (a) names and (b) positions?

NW2831E

REPLY:

1. I am informed by Telkom that it did not sponsor the South African Communist Party's 91st celebratory gala dinners. Telkom bought tables to entertain its guests as other companies.

(a) (i) I am informed by Telkom that the names of the invitees are confidential to Telkom.

(ii) Since the names are confidential then the positions are also confidential.

(b) The breakdown of the costs is also confidential to Telkom.

2. The entertaining of guests at events is standard business practice in many commercial entities and such decisions are taken by management.

3. No departmental staff were invited by Telkom.

Reply received: October 2012

QUESTION NO: 2194
DATE OF PUBLICATION: 17 August 2012
QUESTION PAPER NO:
DATE OF REPLY:
Mrs JD Killian (Cope) to ask the Minister of Communications:

1) Which reference to the announcement by the SA Broadcasting Corporation (SABC) Board that a 24-hour news channel will be launched before the end of 2012, (a) when did the SABC Board approve the launch date for the 24-hour news channel, (b) what will be the estimated annual cost of this channel and (c) how is it anticipated that this news service will impact on the SABC's ability to implement its financial turnaround strategy;

(2) whether the SABC Board considered the budgetary provision including (a) full operational and (b) capital expenditure for the 24-hour news service; if not, why not; if so, what are the relevant details;

(3) whether, in view of the SABC's responsibility to honour loan repayments, prior permission was sought from the Minister of Finance to launch this news services; if not, why not; if so, what are the relevant details?

(1) (a) The SABC Board approved the 24-hour news channel at its meeting on 23 July 2012 after several deliberations by the News Committee of the Board. The channel launch date is subject to approvals, which have been sought from the Ministers of Finance and Communications.

(b) The estimated annual operational costs of this channel will be R180 million in the first year, increasing to a projected R240 million in year 5.

(c) The launch of the 24-Hour News channel will not impact on the Financial Turnaround Strategy. Through its implementation of the Turnaround Strategy and the rigorous implementation of Austerity Measures, the SABC has achieved a net profit after tax of R343m the financial year ending 31S' March 2012. The net profit before tax achieved of R373m exceeded that of the
Government Guarantee Target of R228, by R145m. A portion of these profits will be utilized to fund the initial operating expenses of the channel.

The investment in and roll-out of, the DTT including the 24 Hour News Channel is crucial for the SABC to sustain its competitive advantage in the increasingly competitive broadcasting landscape.

The channel will make a significant contribution towards the SABC's public service mandate through providing rolling news coverage, geographical reach and universal access, on multiple platforms - increasing the public value delivered by the SABC.

At this stage the SABC is able to partly fund the launch of the 24 Hour News Channel, but will not be in position to carry the channel without support from National Treasury. It is on this basis that the SABC has applied for funds from Treasury (MTEF).

(2) (a) The Board considered the full operational expenditure of R180 million in the first year, increasing to a projected R240 million in year 5.

(b) Capital expenditure of R75 million for the 24-hour news service; was considered by the Board of Directors.

(3)Confirmation of the request for approval to launch this news service was received from the Minister of Finance on 17 August 2012.

Reply received: September 2012

QUESTION NO: 2193
DATE OF PUBLICATION: 17 August 2012
QUESTION PAPER NO: 25
DATE OF REPLY:
Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) With reference to the announcement that the digital television switch-on has been deferred from April to September 2012, what (a) are the reasons for the amended draft digital terrestrial television (DTT) regulations that were published by the Independent Communications Authority of South Africa (ICASA) and (b) are the implications with regard to deadlines of amendments to the regulations;

(2) Whether she intends to ensure that public hearings are held for the information and communications technology (ICT) industry to engage on the amended draft DDT regulations; if so, when; if not, why not;

(3) Whether the industry will be afforded an opportunity to comment on the amended regulations; if not, why not; if so, what are the relevant details;

(4)Whether she has taken these delays into account with regard to the June 2015 deadline for achieving the turning off of the analogue signal; if not, why not; if so, what are the relevant details with regard to the deadline;

(5) What contingency measures does she intend to put in place to ensure that analogue television signals will be protected against interference after the due date had passed?
NW2718E

REPLY:

(1)(a) There are two main changes to the regulations on which ICASA would particularly like to hear the views of the public. The Authority is proposing to use the second Mobile Digital Terrestrial Television multiplex as a third DTT multiplex during the dual illumination period to accommodate new entrants; and to stimulate the uptake of DTT services, foster content and enhance consumer choice. Secondly, the Authority is also proposing the formation of a Digital Television Content Advisory Group to advise on the most effective ways to ensure the supply of digital television content to encourage consumers to acquire set-top boxes in order to begin viewing digital television services.

(b) I am informed by ICASA that it will finalise the regulations after the public hearings which took place from 21 -23 August 2012. The regulations will be finalised by the end of September 2012. The finalization of the amended regulations fall within the DTT launch timelines and hence will have no implications to the overall project.

(2) Yes, ICASA conducted public hearings on the 21 - 23 August 2012,

(3) The Independent Communications Authority of South Africa invited all interested stakeholders and provided them an opportunity to comment. Furthermore, in the interest of the promotion of administrative justice and also taking into consideration the submissions received, it was decided that the hearings be held for this process.

(4) The finalization of the amended regulations fall within the DTT launch timelines and hence will have no implications to the overall project.

(5) The ITU will no longer protect the analogue frequencies as per the resolution taken on the subject. Interference, if any, is likely to come from our neighboring SADC countries post the June 2015 deadline. The SADC countries, including South Africa, are coordinating the frequency planning to address the interference issue for post June 2015.

Reply received: October 2012

QUESTION NO: 2130
DATE OF PUBLICATION: 17 August 2012
QUESTION PAPER NO:
DATE OF REPLY:
Ms MR Shinn (DA) to ask the Minister of Communications:

1) Whether (a) she or (b) anyone delegated by her met separately or jointly with Telkom's (i) Chief Executive Officer, (ii) Executive Management and (iii) employees to discuss a turnaround strategy for Telkom; if not, why not; if so, (aa) on which dates were the meetings held, (bb) at which venues did the specified meetings take place, (cc)(aaa) who attended each meeting and (bbb) what is each person's designation and (dd) what was on the agenda of each of these meetings? NW2650

REPLY

(1) Telkom and the Department of Communications have formed a Working Team with a clear objective to drive broadband growth in the country, while ensuring a sustainable Telkom over the long term.

The Working Team has met six times:

13 July 2012 : Presentation of Financial Results at DOC

19 July2012 : Strategic options discussion at Elephant

25 July 2012 : Telkom Strategy discussion at DOC

27 July 2012 : Telkom DOC alignment discussion at DOC

16August2012 : Regulatory landscape discussion at DOC

24 September 2012 : Telkom's strategic turnaround options discussion

at Royal Elephant

13 September 2012 : Telkom's strategic turnaround options discussion

at Telkom, Highveld Techno Park, Centurion

The Working group includes:

Selected Telkom Executive Committe Members, Pinky Moholi (Group Chief

Executive Officer), Ouma Rasethaba(Chief of Corporate Governance & Regulatory Affairs , Manelisa Mavuso (Managing Director: Consumer Affairs), Brian Armstrong (Managing Director: Telkom Business), Jacques Schindehutte (Chief Financial Officer), Charmaine Houvet (Head of Corporate Relations) and Andrew Barendse (Head of Regulatory Affairs)

Department of Communications Director-General, Rosey Sekese, Deputy Director General, Themba Phiri and Deputy Director-General, Dr Sam Vilakazi, Special Advisor to the Minister, Roy Kruger

The meeting took place at the Department of Communications, Royal Elephant and Telkom Centre in Centurion.

Reply received: December 2012

QUESTION NO: 2128

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

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

(1) Whether she has met with representatives of a certain corporation (name furnished) since taking office; if not, what is the position in this regard; if so, in each case (a) on what date, (b) what is the (i) name and (ii) designation of the representative with whom she met and (c) what was the (i) purpose, (ii) nature and (iii) outcome of each specified meeting;

(2) whether any representatives or officials of (a) her department, (b) the Telkom board, (c) the Communications Workers Union, (d) Solidarity or (e) the SA Communication Union formed part of the delegation in each specified case; if so, in each case, (i) what is the (aa) name and (bb) designation of each person who accompanied her, (ii) which entity did each specified person represent and (iii) what was the nature of each person's participation in the delegation? NW2647E

RESPONSE

(1) I have not had any meeting with Korea Telecom (KT) since taking office.

(2) (a) the officials of the Department met with KT. The delegation was made up as follows: Sam Vilakazi: DDG-Admin, Roy Kruger: Technical Advisor, Siya Qoza: Media Liaison Officer, Mduduzi Masuku- Head of Minister's office.

(b) The officials of Telkom were in negotiations with KT for a transaction that would have seen KT acquire 20% shares in Telkom and therefore had numerous meetings with KT , as is the case with any negotiations. Such meetings sometimes included The Chairman of the Board, The GCEO, The CFO , the Top Management of the Company , its advisors and lawyers.

(c), (d) and (e) A delegation of all the leadership of all of Telkom's recognised Trade Unions (CWU, SACU and Solidarity), did indeed visit South Korea on a study tour , accompanied by the CEO of Telkom, in December 2011. The purpose of such a study tour was to gain first-hand experience on how the National broadband project was rolled out in South Korea and the role that KT played.

Reply received: October 2012

QUESTION NO: 2106
DATE OF PUBLICATION: 17 August 2012
QUESTION PAPER NO: 25
DATE OF REPLY:
Ms LL van der Merwe asked the Minister of Communications the following questions:

(1) What measures has she put in place to prevent the local market from becoming a dumping ground for analogue television sets now that some parts of the world have migrated to digital terrestrial television;

(2) whether her department has a strategy in place to prevent manipulation of tenders related to analogue to digital migration; if not, what is the position in this regard; if so, what are the relevant details:

(3) whether a study has been conducted on whether the set-top boxes could be sourced at a lower price from elsewhere outside of South Africa; if not, why not; if so, what are the relevant details?

REPLY:
(1) Measures to prevent dumping of old analog sets:
South Africa is a signatory to WTO and hence cannot unilaterally ban imports. The department has not put any measures in place to prevent imports of old analog TV sets, TV owning South Africans will still be able to use their existing analog sets with the STBs and would have no need to purchase new sets.

(2) Strategy to prevent manipulation of tenders

The department will adhere and fully comply with Government's procurement procedures as per National Treasury instruction notes, Policies, Acts and other relevant Legislations. An evaluation panel comprising of various independent parties from different disciplines has been put together to evaluate various aspects of the tender responses. All tenders are evaluated by a panel of experts in their chosen fields, including external independent experts to ensure that no manipulation of tenders takes place.

(3) Whether a study has been conducted on whether the set-top boxes could be sourced at a lower price from elsewhere outside of South Africa:
There was no study conducted on whether STBs could be sourced at a lower price from elsewhere outside South Africa. However, the dti conducted a study to gauge the capability of the local industry to produce the STBs. Based on the recommendations of the study, the dti then designated the STB manufacturing sector for local content and production with stipulations on minimum local content.

Indications from a recent Request For Information (RFI) on local STB production capacity showed that STBs can be produced locally at globally competitive prices. There are added benefits in producing STBs in South Africa:

i. Sourcing STBs from inside South Africa will benefit the local manufacturing industry.

ii. STBs that will be produced in South Africa will be uniquely tailored for the local market, for example the technical ability to cater for the country's eleven languages, a South African specific User Interface (UI) and Electronic Program Guide (EPG) and a robust STB control mechanism to control theft and protect the local industry. None of the imported boxes can cater for these special features.

iii. South Africa has developed a comprehensive minimum technical standard with the SABS for the STBs. This will assist in keeping the same minimum technical and safety standards for all STBs in the South African market.

Reply received: October 2012

QUESTION NO: 2061
DATE OF PUBLICATION: 10 August 2012
QUESTION PAPER NO: 23
DATE OF REPLY: 25 September 2012
Mr M R Sayedali Shah (DA) to ask the Minister of Communications:

(1) Whether (a) she, (b) her Deputy Minister and (c) any official from an entity reporting to her will be attending or attended, the 2012 Olympic Games; if so, what is the (i)(aa) name, (bb) rank and (cc) position/designation of each specified person accompanying (aaa) her, (bbb) her Deputy Minister and (ccc) each specified person 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, (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 and (c) from which budget will these funds be incurred in each case

REPLY:
DoC
(1) Neither I, nor the Deputy Minister, nor any departmental official attended the 42012 Olympic Games.

State Owned Entities:

SENTECH
(1) No official from Sentech attended the Olympics on behalf of or through the sponsorship of the company.

(2) Not applicable

NEMISA
(1) NEMISA did not participate or send any representative to the Olympics Games for 2012.

(2) Not applicable

USAASA
(1) No official from USAASA has attended the 2012 Olympic Games in London.

(2) Not applicable

ICASA
(1) ICASA can report that no officials1 staff / councilor and / or Executive attended the 2012 Olympic Games.

(2) Not applicable

SAPO
(1) The South African Post Office has not facilitated nor paid for any of its officials to attend the Olympics.

(2) Not applicable

SABC
(1) (a) Not Applicable

(b) Not Applicable

(c) The SABC sent no Officials/Executive or Senior Management to the London Olympics; however SABC sent operational staff to cover the broadcast of the Olympics.

See attachment Answer to Question 1(c)(i)

(aaa) Not Applicable

(bbb) Not Applicable

(ccc) Not applicable

Question 1 (ii)

(aa) The key focus for this team was the production of the SABC's coverage of the Olympics from London for both Radio and TV.

(bb) The team performed the following activities:

Filed reports on activities that occurred off camera,

interviewed South African, African and World Athletes post competing;

Via camera and radio microphone taking the viewer on regular tours of the city of London, profiling aspects from the House of Commons, the Olympic venues, and the London Eye.

Packaged daily highlights of events that may have not been covered in the world feed of pictures \sent to South Africa by the IOC (International Olympic Committee).

Patch-ins into radio stations, compiled stringers, colour pieces and alternate content on the Olympics for Radio.

Question 2

(a) The total amount approved for the trip was R 2,068111.
(b) (i) Advance amount of R 600,000, to be used for the following expenses: Taxis, unilateral slots on MDS, Wi-Fi access, local sim cards, crew laundry, excess baggage, stationary and any other unforeseen expenses.

(aa) Accommodation costs - R 76 000;
(bb) Flight costs - R 454 000;
(cc) Subsistence costs - R 529 000.
(c) This was funded from the SABC Sport division budget.

Reply received: August 2012

QUESTION NO: 2039
DATE OF PUBLICATION: 10 August 2012
QUESTION PAPER NO: 23
DATE OF REPLY:
Ms M R Shinn (DA) to ask the Minister of Communications:

(I) Whether Telkom sponsored a certain political party's (name furnished) 91^st celebratory gala dinner; if so, what is the (a) total value of the sponsorship and (b) itemised cost breakdown of the sponsorship;

(2) (a) on what grounds did Telkorn approve the sponsorship. (b) what process was followed to make the decision to sponsor the event and (c) who made the final decision to sponsor the event?
NW2518E
REPLY:

(1) No, Telkom was not the main sponsor of the SACP dinner. Telkom as with many companies bought tables to entertain its guests.

(2) This was not a sponsorship, but hospitality tables to entertain guests. it is standard business practice in many commercial entities to entertain stakeholders areevents and such decisions are taken by management

Reply received: September 2012

QUESTION NO: 1967
DATE OF PUBLICATION: 3 August 2012
QUESTION PAPER NO: 21 DATE OF REPLY:

Mr. TW Coetzee (DA) to ask the Minister of Communications:

Whether any entity reporting to her has budgeted for (a) financial donations or (b) sponsorships in the (i) 2009-10, (ii) 2010-11 and (iii) 2011-12 and (iv) 2012-13 financial years; if not, why not; if so, in each case, what amount was (aa) budgeted and (bb) spent?
NW2356E

REPLY:

USAASA
(b) USAASA has not made (i) any financial donations or (ii) sponsored services in the (aa) none (bb) none (cc) none (dd) none (aaa) n/a (bbb) n/a

See attachment: financial donations

Reply received: September 2012

QUESTION NO: 1904
DATE OF PUBLICATION: 14 July 2012
QUESTION PAPER NO:
DATE OF REPLY:
Ms M Shinn (DA) to ask the Minister of Communications:

(1) Whether her department has determined whether its Go Digital South Africa advertising campaign has been successful in educating the public on the roll-out of digital terrestrial migration; if not, why not; if so, what are the relevant details?

Reply

The first phase of the public awareness about the Digital Terrestrial Television, or the Go Digital South Africa campaign, achieved its primary goal of introducing the migration process to our citizens.

As is common with communication campaigns for projects of this magnitude, ours is a staggered campaign. The first phase was the blitz newspaper campaign. Over the next few months we will adopt a different communications strategy which is aimed at increasing our public awareness and education campaign. We are firm in our belief that educating and making South Africans aware of the digital migration process is crucial in ensuring a smooth transition and making sure that South Africans are informed about the opportunities that are presented by the new broadcasting platform. Educating and making South Africans aware of the digital migration process is part of everything that we do in the department on a daily basis. Furthermore, the Department is in a process of finalising a tender for the Public Awareness campaign. The awarding of the tender will ensure that the Department is able to escalate the education campaign nationwide and on all platform, including community media, road shows and house-to-house campaigning, especially in the rural areas.

Reply received: August 2012

QUESTION NO: 1896

DATE OF PUBLICATION: 3 August 2012

QUESTION PAPER NO: 21

DATE OF REPLY:

Mr T D Harris (DA) to ask the Minister of Communications:

(1) What (a) is the norm and standards set by the Post Office in respect of the number of citizens served by a postal agency and (b) is the number of citizens served by the Regent Road Post Office in Sea Point, Cape Town;

(2) whether the Post Office intends re-opening the post office at the Adelphi Centre in Sea Point: if not, what is the position in this regard; if so, when?

REPLY:

(1) (a) The Sea Point Post Office is servicing a population of 10,403 in the area.

(b) The norm set by ICASA is to have an outlet for a population of 10,000 within a radius of 5km.

(2) Based on the population in the area and the fact that there is a Post Office in close proximity which is 1.3km from the old Rhine road Post Office, an additional branch would not be generally planned for.

Reply received: September 2012

QUESTION NO: 1856
DATE OF PUBLICATION: 27 July 2012
QUESTION PAPER NO:
QUESTION
Mr AC Steyn (DA) asked the Minister of Communications the following

questions:

(1) Whether she intends to take steps to import foreign-made (a) set-top boxes (STBs) and (b) digital converters; if not, why not; if so, what are the relevant details;

(2) whether the imported STB devices will be (a) subject to the same standards and (b) required to offer the same facilities as those prescribed in the STB Manufacturing Sector Development Strategy that was approved by Cabinet in March 2012; if not, why not, in each case; if so,
what are the relevant details in each case?

REPLY

Reply to (1) Importing STB's

The Broadcasting Digital Migration (BDM) Policy provides that the local electronic industry has the capability and capacity to manufacturer Set Top Boxes (STBs). The BDM Policy further provides that STBs will be sourced locally in order to create local jobs throughout the manufacturing value chain. The STB Manufacturing Sector Development Strategy (2012) also provides that Government in partnership with the industry must ensure that there is growth of the electronics manufacturing sector and the creation of jobs.

The Department will be therefore be sourcing STBs for the subsidised TV households from the local manufacturers. This however does not preclude private enterprises that want to import foreign-made STBs for the non-subsidised market.

Reply to (2) Imported ST6 Standards

Any imported STB's brought in by private companies will have to be "Conformance" approved by the SABS to meet the SA Standard and be complaint.

Reply received: September 2012

QUESTION NO: 1846
DATE OF PUBLICATION: 27 July 2012
QUESTION PAPER NO:
DATE OF REPLY:
Mr D J Stubbe (DA) asked the Minister for Communications:

(1) Whether a certain firm (name furnished) has been legally contracted to act as debt collector for outstanding SABC licence fees; if not, how did the firm gain access to names and addresses of persons assumed to be SABC licence defaulters; if so, what are the details of the process that was followed to appoint this law firm;

(2) whether an investigation has been launched to establish how the firm gained access to confidential SABC customer information; if not, why not; if so, what are the relevant details of the (a) findings and (b) steps taken against any SABC officials found to have been implicated in this regard;

(3) what steps has the SABC taken to inform the public that the firm is not acting on behalf of the SABC

(4) whether the SABC intends taking any legal action against the specified entity; if not, why not; if so, what are the relevant details?

NW2238E

REPLY:

(1-4) In accordance with the Broadcasting Act as well as other applicable legislation, various service providers act as television licence pay point and collection agents on behalf of the SABC. Apart from legislative and regulatory requirements, such service providers or debt collectors are appointed based on their IT , infrastructure capabilities, financial capabilities, legal standing, national reach, geographical footprint and accessibility to the public, etc.

The firm in question was appointed by the SABC to collect on overdue TV licence accounts after a formal and open tender process. A Request for Proposal was published in February 2010 and after a rigorous tender evaluation and selection processes, this firm, together with a number of other Debt Collection Agencies, were appointed from 1 December 2010 for a 3-year period.

Debt Collection Agencies appointed by the Corporation therefore act on behalf of the SABC to collect licence fees that are in arrears. TV licence defaulters do not pay the Debt Collection Agencies but make payment directly to the SABC through authorised pay points, e.g. into the SABC's nominated bank accounts.

The contractual agreements between the SABC and its Debt Collection Agencies include a confidentiality agreement regarding, inter alia, the protection of personal information.

Reply received: September 2012

QUESTION NO: 1838

DATE OF PUBLICATION: 27 July 2012

QUESTION PAPER NO: 20

DATE OF REPLY:

Mrs SV Kalyan (DA) to ask the Minister of Communications:

(1) Whether (a) her department and (b) all entities reporting to her make payment to (i) suppliers and (ii) service providers within the 30 day payment period as specified by the Public Finance Management Act (PFMA), Act 1 of 1999; if not, in each case, (aa) how many service providers are awaiting payment, (bb) what is the monetary value of outstanding payments and (cc) how long is payment overdue;

(2) Whether (a) her department and (b) all entities reporting to her are liable for any interest charged on overdue payments in any of the cases mentioned; if not, what is the position in this regard; if so, in each case, what is the (i) percentage and (ii) monetary value of interest charged;

(3) Whether (a) her department and (b) all entities reporting to her have negotiated revised payment schedules with each of the service providers mentioned; if not, why not; if so, in each case, what are the relevant details;

(4) What are the reasons for (a) her department and (b) all entities reporting to her not making payment within 30 days as specified by the PFMA;

(5) Whether (a) her department and (b) all entities reporting to her have implemented any measures to (i) ensure full compliance with the PFMA and (ii) facilitate immediate payment for overdue accounts; if not, why not; if so, in each case, what are the relevant details?

4. DISCUSSION

4.1 The Department of Communications:

1. (aa) Currently the Department only have four (4) service providers that are awaiting payment and the reasons therefore are as follows:

· Three (3) are due to the late or incorrect submission of banking details, and

· One (1) is due to the work that was commissioned but not completed in full.

(bb) The monetary value of the outstanding payments was R335 121.24 as on 31 July 2012.

(cc) The overdue payments are as follows:

· One is 106 days due to banking details.

· One is 43 days due to banking details.

· One is 32 days due to banking details.

· One is 61 days due the work that was commissioned but not completed in full.

2. The Department was not held liable for any interest in any of the abovementioned cases. In all the cases the Department was not at fault and therefore could not be held liable for the late payment.

3. No revised payment schedules were negotiated because the suppliers that were paid late are not monthly or term payments.

4. During the current financial year as at the end of July 2012, 385 payments were processed of which 94% of suppliers and service providers were paid on time and 6% (24 payments) were paid late. The reasons for the 6% late payments are as follows:

· 54% was due to banking details that were submitted late or incorrectly by suppliers and service providers.

· 4% was due to late submission of a valid tax clearance certificate by the service provider.

· 4% was due to the transversal systems (LOGIS) being unavailable during the financial year-end.

· 25% was due to the unavailability of funds due to overspending. This is due to the previous financial year's outstanding invoices that could not be paid due to financial constraints in the previous financial year.

· 13% was due to faulty equipment and incomplete deliveries by suppliers.

5. (i) The Department has measures in place to ensure compliance with the PFMA Act and the above payment statistics reflects this.

(ii) The late payments were beyond the control of the Department.

· Where necessary new banking entity forms were mailed and faxed. Requests for outstanding forms were followed-up telephonically and by e-mail.

· The outstanding tax clearance certificate was requested telephonically and e-mail.

· The Department cannot take any action regarding the transversal systems being down during the financial year-end runs.

· Regarding the budget that was overspent due to invoices that could not be paid in the previous financial year, the Department has implemented stricter and better budgetary controls.

· The Department has no control over faulty and late deliveries by suppliers. The suppliers were telephonically notified to collect the faulty equipment and to replace it. Late deliveries are followed-up telephonically and by e-mail where necessary.

SAPO

1. All suppliers and related entities are being paid within 30 days as per PFMA for all invoices that are due for payment and invoices that have been presented for payment to SAPO. However, in respect to subsidiary entities, Courier Freight Group (CFG) is experiencing difficulties in meeting the 30 day period.

CFG strives to pay all its creditors that appear on the monthly age analysis. Notwithstanding the internal challenges relating to late submission of invoices and the misalignment of the budget, all debt that is 30 days or older is processed for payment every month. They have one supplier whose debt has aged beyond 30 days and the details are shown below:

April invoices

(90 days – due end May)

May invoices

(60 days – due end June)

June invoices

(30 days – due end July)

July invoices

(current – due end August)

R4,250,445-54

R10,437,462-66

R9,360,457-92

R9,826,823-94

2. SAPO is in some cases charged interest on overdue payments in respect of two special cases:

1. rental sums for properties, and

2. TELKOM SA LTD within SAPO.

Interest on rental occurs for the durations between occupation and finalisation of contract terms. In the case of Telkom this arises due to the process of consolidating all sums due for telephone usage from different branches to be paid under one bill to Telkom. This process is being finalised to ensure that it occurs expediently and therefore interest charges will not be raised.

In respect to CFG, the supplier has not levied any interest as we are in constant communication with them regarding payments that are to be made.

3. SAPO – All suppliers and related entities are being paid within 30 days as per PFMA for all invoices that are due for payment and invoices that have been presented for payment.

CFG – Senior management held a meeting with the supplier and the following was agreed:

Ø CFG will bring the account up to date at the end of each quarter;

Ø CFG undertook to pay a minimum of R5 million in any month.

4. The following cases may arise that may lead to delay of payments:

· incorrect banking details

· pending legal cases

· investigations

· non compliance to payment requirements

· and late submission of invoices by suppliers, thereby missing the cut off for accepting invoices to be processed for payment.

Of particular mentioned in respect of CFG are cash constraints experienced in the last 3 years due to customers defaulting on their payments, which in turn places a great deal of pressure on cashflow, and capacity to honour our payment obligations on time.

5. SAPO and its subsidiaries comply with the PFMA requirements and furthermore undertake supplier reconciliations on a monthly basis to determine outstanding invoices and follow up to ensure payments are made.

(i) An extra payment runs every Wednesday for small suppliers BEE weekly. Where necessary, agreements are entered into with the relevant supplier to ensure payment.

SENTECH

1. Most payments are made before the 30 day period with the exception of a few.

VENDOR NAME		AMOUNT ZAR 31 – 60 days
1	Comscience	783 203
2	Communication B/C	299 958
3	Siyanda	227 797
4	Geoterra	182 400
5	SA Fence & Gate	172 656
6	Accutronics	125 115
7	Diesel Electric	122 626
8	Avis	67 087
9	TX Magic	23 758
10	Carstens Cleaning	14 250
11	Alpinist Safety	14 036
12	Ganis	3 980
13	Altech	3 397
		2 040 264

2. No interest was charged for the vendors listed in response to 1(b) above.

3. Reasons for payments were discussed with vendors and have since been settled.

4. Late payments to vendors listed in response to 1(b) were caused by invoices being received late and or due to disputes or queries on the submitted invoices.

5. (i) Measures have been introduced to ensure PFMA compliance

(ii) All accounts for the above listed vendors in response to 1(b) have been settled.

ICASA

1. On average ICASA is adhering to the regulatory requirements of the Public Finance Management Act, except in instances where invoices are received late from the service provider or in instances where there is a dispute with the service provider regarding the invoice.

The table attached reflects payments currently in progress:

2. ICASA is not liable for interest at the moment because none of the companies have changed interest as yet.

3. ICASA has not negotiated revised payment schedules with the suppliers because the payment will be made in the next week.

4. Ninety five (95) percent of payments are made in less than 30 days; most of the delays occur in instances where there are queries with invoices or where the suppliers send invoices late to ICASA.

5. ICASA has documented a payment business process with timelines to each activity. The process is being managed and monitored by our Central Receiver.

SABC

1. The SABC has aligned its payment process to the National Treasury guidelines on SMME Development Strategy and PFMA, No1 of 1999. The payment process is also governed by the approved Policy FN/002/05/N.

In addition, the SABC Procurement Division effected a three (3) tier payment process through the official Accounting System (SAP). These tiers are as follows:

1. 0001 Special Payments

2. 0002 30 days from invoice date

3. 0003 15 days from invoice date

Currently all suppliers with completed documents i.e. approved contracts, purchase orders, invoices, invoices, goods receive notes, etc. have been processed and paid. There are 21 (twenty one) service providers still awaiting payment and the monetary value is R981,900.52 in the current period. The July 2012 payments to service providers excluding payroll and foreign payments were R227,915.187.

Reasons for delayed payments – payment

· Missing VAT or banking details of the vendor

· Expired BEE or Tax certificates of vendors, differences between invoices and purchase order i.t.o. quanitity/costs, disputes regarding quality of goods/services received and internal departments neglecting to submit payment requests timorously

· Irregular expenditures where prior approval at the time of commitment was not obtained, the approval process takes longer in view of additional internal controls that need to be adhered to before payment can be made. Once these issues have been resolved between the vendor and the SABC department, payment will take place as indicated above.

2. As a State Owned Enterprise, the SABC does not pay any interest on overdue payments. However, under exceptional circumstances (on litigation matters), we may be forced by a Court order to settle a service provider with interest. During the financial period ended 31 March 2012, the SABC incurred R9 million as interest on late payments from a R3 billion cash payments to service providers. This is equal to 0.3% of total cash payments.

3. On local suppliers:

The Finance and Procurement Divisions constantly engage our service providers on revised payment schedules and or reasons for delays mentioned above. The Finance Shared Services Division also communicates to the business units on the Financial Control and payment process on a monthly basis and ad hoc where additional information is required. Local commissioned contract payments are paid in accordance to the agreed and negotiated cash flow as per contract.

On foreign suppliers:

The Television unit negotiated more favourable payment terms on foreign contracts for licensed programmes. In the past, the payment terms were 50% on signature and 50% on delivery or negotiated when the contract runs over multiple periods. The payment terms for the majority of new contracts that are signed has moved to 40% on signature and 60% on delivery and this resulted in improved cash flows for SABC.

4. (i) Missing VAT or banking details of the vendor

(i) Expired BEE or Tax certificates of vendors, differences between invoices and purchase orders i.t.o quantity/costs, disputes regarding quality of goods/services received and internal departments neglecting to submit payment requests timorously

(ii) Irregular expenditures where prior approval at the time of commitment was not obtained, the approval process takes longer in view of additional internal controls that need to be adhered to before payment can be made. Once these issues have been resolved between the vendor and the SABC department, payment will take place as indicated above.

5. The SABC is guided by the PFMA, National Treasury guidelines on SMME and Internal Financial Policy and Procedures on Supplier Payment. Out target is to ensure that SMME with less than R5 million turnover are paid within the 15 day period and those with more than R5 million up to R35 million turnover are paid within 30 days. Our internal policy also gives us latitude to pay immediately, 15 days and or 30 days. Currently, we are fully compliant with the PFMA on service provider payments.

The following are initiatives in progress to save costs and streamline our Procurement process:

· Streamline the SAP workflow process to avoid, irregular, fruitless and wasteful expenditure.

· Direct negotiations with service providers on pricing during and after the tender process.

· Training of SCM practitioners and SABC staff on Procurement processes.

· Benchmarking of pricing and conducting a needs analysis for SABC.

· Implementation of contract management in line with the AG's recommendations.

NEMISA

1. (i) Nemisa pays all invoices within 30days as per PFMA. Currently we don't have any invoices that are overdue.

2. Nemisa does not pay any interest on long overdue invoices.

3. Nemisa, have not negotiated any payment schedules.

4. Not applicable

5. Not applicable

USAASA

1. (i & ii) USAASA pays suppliers and service providers within the stipulated 30 days.

(aa) No current suppliers with outstanding invoices suffice for those suppliers under the forensic investigation scope.

(bb) Not applicable

(cc) Not applicable

2. USAASA is currently not liable for any interest charged due to overdue payments.

(i & ii) Not applicable.

3. Not applicable as USAASA has not negotiated any revised payment schedules with any service providers.

4. Not applicable as USAASA pay suppliers and service providers within the stipulated 30 days.

(i & ii) Not applicable.

5. Not applicable.

Reply received: August 2012

QUESTION NO: 1739

DATE OF PUBLICATION:

QUESTION PAPER NO: 20

DATE OF REPLY:

Mrs JD Killian ( Cope) to ask the Minister of Communications

(1) Whether she recently met a delegation consisting of politicians , SABC reporters from the Eastern Cape and senior SABC staff based at Auckland Park with regard to a certain person(details furnished)

(2) (a) who coordinated the said meeting (b) what matters were on the agenda of the meeting? NW 2127 E

Response

(1) No. I am informed by SABC there has not been any meeting between the politicians nor have staff reporters from the Eastern Cape and SABC senior staff met with the politicians regarding news coverage of former President Mandela and his family in the Eastern Cape Province or regarding any persons

(2) (a) I am informed by SABC No meeting took place (c) There is no agenda as no meeting took place

Reply received: October 2012

QUESTION NO: 1738

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) When was the current Director-General (DG) of her department appointed;

(2) Whether the current DG's appointment has been formalised through a formal contract of employment; if not, (a) what are the reasons that delayed the formalisation of the employment contract and (b) what steps she is taking in this regard; if so, on which date was the contract signed? NW2126E

Reply:

1. I became the Minister of Communications in November 2011 and found that the Director-General was appointed on 01 June 2011 without any formal appointment letter issued to her by the late Minister. I therefore, issued an appointment letter to the Director-General on 01 March 2012.

2. I subsequently provided the Director General with the agreement on the 31^st May 2012.

Reply received: July 2012

QUESTION NO: 1704

DATE OF PUBLICATION: 22 June 2012

QUESTION PAPER NO: 19

DATE OF REPLY:

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

What were the (a) reasons and (b) justifications for not approving the sale of a 20% stake in Telkom to South Korea's telecommunications giant KT Corporation?

NW2058E

REPLY:

A) The Government of South Africa has adopted a policy position to enhance its infrastructure, particularly in rural areas. This is because the Government acknowledges that to fight poverty effectively, the country needs to develop infrastructure in a manner that can create jobs and facilitate economic growth that benefits everyone, especially the citizens who are in rural and poor areas. The Government also acknowledges that to achieve this shared economic growth that creates jobs, the State, private capital, labor, cooperative and other forms of social ownership must complement each other.

(B) In considering the proposed deal between Telkom and South Korea's KT Corporation, Cabinet took into account the fact that the Department of Communications is driving the Government policy of rolling out broadband, in partnership with the private sector, to all citizens by 2020.Broadband is one of the key infrastructure programmes that can enable and foster faster and inclusive economic growth. It therefore became even more important that Telkom finds the best and most suitable solution to its current challenges. Telkom is also a key component of the Government's efforts to improve the skills of our citizens. The Government recognizes the need for Telkom to implement an urgent turn-around strategy, and to get the company back to the critical centre of delivering ICT services to all South Africans. As a result, the Cabinet asked Minister Dina Pule to report back to Cabinet about all the options that are available for Telkom in three months. Minister Pule has communicated this recommendation to the Telkom board and Telkom and the Department are working hard to look at all possible options that are available to the company.

Reply received: July 2012

QUESTION NO.:1591

DATE OF PUBLICATION:

QUESTION PAPER NO.:

DATE OF REPLY:

Mr. DC Smiles (DA) to ask the Minister of Communications:

Whether any traffic fines were incurred with regard to any vehicles in the (a) 2009-10, (b) 2010-11 and (c) any 2011-12 financial years, if so what (i) amount in fines was incurred in respect of each specified vehicle in each specified financial year and are there further relevant in each case?

REPLY:

Traffic fines amounting to R 4,900.00 were incurred with the two BMW 7 series, registration number YKM 378 GP for the last three financial years, and the other BMW 7 series, registration YLV 414 GP incurred traffic fines amounting to R 650.00 for the financial years 2009/10 and 2010/11. The total amount of traffic fines for the last three financial years is R 5, 550. 00.

VEHICLE		FINANCIAL YEAR		AMOUNT
YKM 378 GP		2009/10		R 875.00
YKM 378 GP		2010/11		R 3, 650.00
YKM 378 GP		2011/12		R 375.00
TOTAL				R 4, 900.00
VEHICLE	FINANCIAL YEAR		AMOUNT
YLV 414 GP	2009/10		R 450.00
YLV 414 GP	2010/11		R 200.00
TOTAL			R 650.00

Reply received: July 2012

QUESTION NO: 1584

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) Why did the Cabinet decline the offer by a certain company (name furnished) to buy 20% of Telkom's shares?

(2) What is the projected impact of the said decision on Telkom's ability to attract foreign investment for its turnaround strategy? NW1912E

Reply

(1) The Government of South Africa has adopted a policy position to enhance its infrastructure particularly in rural areas. This is because the Government acknowledges that to fight poverty effectively, the country needs to develop infrastructure in a manner that can create jobs and facilitate economic growth that benefits everyone, especially the citizens who are in rural and poor areas.

The Government also acknowledges that to achieve this shared economic growth that creates jobs, the State, private capital, labour, cooperative and other forms of social ownership must complement each other.

In considering the proposed deal between Telkom and South Korea's KT Corporation, Cabinet took into account the fact that the Department of Communications is driving the Government policy of rolling out broadband, in partnership with the private sector, to all citizens by 2020.

Broadband is one of the key infrastructure programmes that can enable and foster faster and inclusive economic growth.

It therefore became even more important that Telkom finds the best and most suitable solution to its current challenges. Telkom is also a key component of the Government's efforts to improve the skills of our citizens.

The Government recognizes the need for Telkom to implement an urgent turn-around strategy, and to get the company back to the critical centre of delivering ICT services to all South Africans.

As a result, the Cabinet asked Minister Dina Pule to report back to Cabinet about all the options that are available for Telkom in three months.

Minister Pule has communicated this recommendation to the Telkom board and Telkom and the Department are working hard to look at all possible options that are available to the company.

(2) Telkom does not require foreign investment to implement its turnaround strategy, but rather requires skills and competency to implement its turnaround plan,

Reply received: July 2012

QUESTION NO: 1456

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Mr D C Ross (DA) to ask the Minister of Communications:

(1) When was the current Director-General of her department appointed;

(2) Whether the Director-General was appointed in (a) a permanent or (b) an acting capacity? NW 1733

REPLY:

(1) The Director-General was appointed on 1^st June 2011

(2) The Director-General was appointed on a 5 year contract

Reply received: July 2012

QUESTION NO: 1415

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

QUESTION

1415. Ms M R Shinn (DA) to ask the Minister of Communications:

(1) Whether, with reference to her reply to question 359 on 27 March 2012, the SA Broadcasting Corporation (SABC) has (a) devised and (b) instituted cost-cutting measures to govern the circumstances under which vehicles may be hired by its (i) board and (ii) executive management members; if not, why not; if so, what are the relevant details;

(2) whether it is permissible to hire a chauffeur to transport (a) board and (b) executive management members; if so, (i) under which circumstances and (ii) in terms of which regulations;

(3) whether any regulations govern the hiring of vehicles for (a) board and (b) executive management members for travel within the towns where they reside permanently; if not, why not; if so, what are the relevant details of these regulations;

(4) whether an amount has been budgeted in the current departmental budget for (a) car, (b) shuttle and (c) chauffeur hire for (a) board and (b) executive management members; if not, why not; if so, (i) what is the amount and (ii) how does it compare with that of the three previous financial years? NW1633E

REPLY

I am informed by SABC that

(1) A travel policy has been compiled and approved by the board and that any changes or amendments to the travel policy are approved by the board on an annual basis

(a) The purpose of the travel policy is a means to implement cost-cutting measures

(b) The travel policy governs the circumstances under which vehicles may be hired by the Board and Executive management

i. Cars may be hired where an Executive has to travel on his or her own while on SABC business

ii. No individual cars are hired when Board Members and Executives are travelling within a group of two or more. Executives have been instructed at the Group Exco meeting to implement cost cutting measures across the board not only in respect of the use of vehicles. Furthermore, an instruction was issued that Executives may only hire cars in the lower grouping and not executive vehicles.

(2) In certain circumstances, and particularly where the costs will be less than hiring a car for any individual, the use of chauffeur driven vehicles is permitted.

i. Transfer of Board Members to meetings and/or to the airport when travelling outside of Gauteng

ii. In terms of the PFMA, the SABC is striving to avoid incurring fruitless and wasteful expenditure as rented vehicle usually cost more than the use of a chauffeur driven vehicle. The travel policy stipulates that the cheapest and safest means of travel must be utilized.

(3) As outlined in 1 and 2 above

(a) The SABC travel policy governs the hiring of vehicles for Board

(b) The SABC travel policy governs the hiring of vehicles for Executive

No cars are hired for either a Board Member or an Executive within the towns where he/she resides permanently because this will be against the regulations.

(4) As the SABC, we are required to submit a budget for expected costs to be incurred. As the costs for car hire, shuttle services and chauffeur driven vehicles are provided to transport Board Members and Executives as needed these costs are budgeted.

As an additional precautionary measure to ensure that the budgets are not abused or unauthorized transport is incurred, approval from higher level is necessary before any form of transport can be utilized.

The number of Parliamentary and SABC meetings has an impact on the amount to be utilized and is a reason for differences in the budgets besides the increases in the cost of fuel over the past three to four years, which has resulted in the exorbitant increase in the cost of travel.

Reply received: July 2012

QUESTION NO: 1410

DATE OF PUBLICATION: 1 June 2012

QUESTION PAPER NO: 15

DATE OF REPLY:

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

Whether an air-conditioning system has been purchased for the building that will house the new offices and studio of the SA Broadcasting Corporation in Nelspruit; if so, (a) on what date was the system purchased, (b) from whom was it purchased and (c) who authorised the (i) purchase and (ii) subsequent delivery?

NW1607E

REPLY:

Yes, air-conditioning system was purchased.

a. 31^st August 2009

b. Prorav CC

c. Ms. Mmadiboka Mahlabe, GM: Strategic Sourcing, SABC Auckland Park

Reply received: July 2012

QUESTION NO: 1375

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

QUESTION

Mr M Swart (DA) to ask the Minister of Communications:

(1)(a) What portion of the budgeted allocation for information and communications technology (ICT) infrastructure development has been (i) spent and (ii) underspent since the programme's inception and (b) what were the reasons for the underspending;

(2)what (a) were the reasons for her department's underspending in the 2011-12 financial year and (b) measures has she put in place to avoid underspending? NW1623E

REPLY

(a) (i) ICT Infrastructure Development programme came into effect in 2000/01 financial year. This programme's final allocation amounted to R938, 705 million since 2000/01 to 2011/12. Its expenditure for the past twelve (12) years amounted to R586, 363 million.

(ii) the under spending amounted to R352,342 million.

(b) The under spending occurred mainly during the following financial years:

FINANCIAL Years	REASONS FOR UNDER SPENDING
2004/2005	The under spending was due to the finalisation of restructuring process at the end of the financial year which led to the amendment of the Department's organisational structure in order to align its units with the defined vision and mission.
2009/2010	The under spending was under 112 Emergency Call Centre was as a result of the delay experienced in the Public Private Partnership (PPP) process to convert it from pilot to the national PPP. Furthermore, a contract in relation to the monitoring of 2010 FIFA World Cup project which was still in progress by then.
2010/2011	The 112 Emergency Call Centre Project was put on hold due to the reprioritisation exercise.
2011/2011	The main under spending on 112 Emergency Call Centre as well as broadband was due to the non implementation of 112 Emergency Call Centre arising from the cost benefit analysis and the feasibility study which was conducted by National Treasury in providing approval on the project feasibility. The under spending on Broadband allocation was due to the development of a broadband strategy and plan which is currently being finalized by the Department. The under spending on compensation of employees was due to the moratorium on positions that was necessitated by the organizational review process.

Reply received: July 2012

QUESTION NO: 1374

DATE OF PUBLICATION: 25 May 2012

DATE OF REPLY:

Mr M Swart (DA) who asked the Minister of Communications:

(a) What were the Department's detailed payments for financial assets at 31 March 2012 and

(b) What is the breakdown for each item in this regard?

REPLY

(a) Payments for financial assets are monetary losses suffered by the Department.

(b) The breakdown is as follows:

	Item	Description	R(thousand)
Voice recorder		The voice recorder left in the office could not be accounted for.	1
International calls on departments PABX system		Fraudulent international telephone calls were made on the Departmental PABX system. The matter was referred to Sate Security Agency for investigation. The outcome was that perpetrators could not be identified and recommended that the matter be closed.	1,272
Recruitment advertisements		Adverts were placed in newspapers and no interviews were conducted due to organisational re-alignment process	327
Vehicle excess payments		Departmental vehicles involved in accidents incurred excesses over and above amounts covered by the insurance.	11
No shows		Accommodation was arranged for delegates who are not employees of the Department from Community Radio Stations to attend a workshop. Some delegates arrived a day after the booking was made. All rooms were utilised except for late arrivals of which the hotel charged the Department cancellation fees. A shuttle service was arranged in two instances The services where never utilised due to non availability of the shuttle. Training was organised through Palama and 3 officials did not attend. Legal opinion obtained recommended that the amounts incurred be written off as the loss resulted in unavoidable causes.	41
Cancellation fees		Flight tickets and accommodation cancelled due various reasons, such as prioritisation of services as well as unforeseen circumstances.	26
Other:		Cancellation of printing services no longer required was written off.	8
Damaged rented vehicles		A rented Ministerial vehicle was involved in an accident and a legal opinion from the State Attorney indicated that there was no negligence/reckless and no one could be held responsible for that.	425
Damaged departmental vehicles		This was an excess payment for a departmental vehicle that was involved in an accident.	4
Total			2,115

Reply received: July 2012

QUESTION NO.:1342

DATE OF PUBLICATION:

QUESTION PAPER NO.:

DATE OF REPLY:

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

(1) (a) When was the land bought on which the new SA Broadcasting Corporation (SABC) offices and studio were to be built, (b) from whom was it bought, (c) what amount was paid for the land and (d) what is the erf number;

(2) whether any site inspections had been carried out before the land was purchased to ensure that it was suitable for the intended purpose; if not, (a) why not and (b) why was the land bought; if so, (i) when were the inspections conducted, (ii) who formed part of the inspection party, (iii)(aa) to what extent and (bb) in what way did the specified entities and persons assess the suitability of the land and (d) what were their findings?

REPLY:

1 (a) November 2006

(b) From H L Hall and Sons (Pty) Ltd.

(d) Remaining extension of Erf 33, Riverside Park, Extension 4, Nelspruit, Mpumalanga

2 Yes a site inspection was conducted

(a)Not applicable

(b) (i) 03 January 2006

(ii) JJ Steyn - Professional Valuer, certificate number 3501, A. Van der Merwe - Candidate Valuer, certificate number 3818.

(iii) They looked at the suitability of the land for development and the market valuation of the entire SABC Broadcast Centre after it has been developed and construction was complete.

(c) Their findings were that there are no undesirable natural features on site which could hamper any proposed development. The stand covers a fairly spacious and practical shaped terrain. The estimated value of the proposed SABC Broadcast Centre (both land and proposed building) on the open market on date of evaluation was R63, 000, 000.

Reply received: July 2012

QUESTION NO.:1341

DATE OF PUBLICATION:

QUESTION PAPER NO.:

DATE OF REPLY:

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

(1) (a)(i) Which architectural firms and (ii) consultants were awarded tenders to work on the building project for the new SA Broadcasting Corporation (SABC) offices and studio in Nelspruit, (b) what is the nature of the tenders that have been awarded to each firm, (c) when was each specified tender awarded, (d) what is the value of each specified tender that has been awarded, (e) what is the extent of the services that each specified firm has provided to date and (f) how much money has been paid over to each specified firm up to the latest specified date for which information is available.

(2) Whether she has found that SABC has investigated any of these specified service firms for any irregularities in their involvement in this project; if not, what is the position in this regard; if so, (a)which entities or individual were investigated, (b) what were the charges in each case and (c) what were the outcomes of each specified investigation;

(3) Whether any official of the SABC has been (a) implicated and (b) suspended for his or her involvement in the specified irregularities?

4.1 Reply

4.1.1 (a) (i) and (ii) Msimole Akweni JV were appointed and awarded the tender on the building project.

(b) The nature of the tender that was awarded was "Lead Project Management" for the construction of the proposed new SABC Broadcast Centre in Nelspruit.

(d) The value of the specified tender to Msimole Akweni was R4, 555, 041, which has been paid. However, R2, 800, 000 is still outstanding to Msimole Akweni JV for scaling down the project plan from R120,000,000 to R77,000,000, bringing the total value of the project fee to R7,900,000.

(e) The Lead Project Management team has developed the building designs/plans for the SABC Broadcast Centre; however, they have not been approved and submitted to the SABC to commence with construction. The reason being there is no clarity from Senior Management of the SABC whether the building project is still continuing or not.

(f) R4,555,041 has been paid to the Project Management team.

4.1.2. No, the SABC has not instituted any investigations into the specific firms.

4.1.3. No official has been implicated or suspended.

Reply received: July 2012

QUESTION NO: 1340

DATE OF PUBLICATION: 25 May 2012

QUESTION PAPER NO: 14

DATE OF REPLY:

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

(1) Whether the plans for the new SA Broadcasting Corporation (SABC) office and studio in Nelspruit have been approved; if not, (a) what is the reason for the delay and (b) when does he envisage that they will be approved; if so, when were they approved;

(2) Whether construction has started on the project; if not, (a) what is the reason for the delay and (b) when will construction start; if so, (i) when did construction start and (ii) what is the current status of the construction process?

NW1478E

REPLY:

(1) The project was initially approved in 2006. The land was purchased and costs were incurred in the design of the building. Since a long time has passed the initial approved and building costs have changed, the project will be submitted to the Board for re-approval.

(2) Construction have not started

(a) Approval by the SABC Board is required prior to the commencement of construction.

(b) Depending on the Board approval

(i) Not applicable

(ii) Not applicable

Reply received: May 2012

QUESTION NO: 1248

DATE OF PUBLICATION: 18 May 2012

QUESTION PAPER NO: 13

DATE OF REPLY:

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

(1) With reference to the reply to question 1084 on 1 July 2011, (a) what are the details of the broadband connectivity that was provided to the 375 schools out of 500 and (b)(i) what number of network points has been installed at each school and (ii) in which classrooms were the network points installed in each case;

(2) what is the (a) name of the internet service provider and (b) the full cost;

(3) whether the internet service provider was appointed by means of a tender; if not, (a) why not and (b) how was the appointment made; if so; what are the relevant details;

(4) whether service level agreements are in place with the schools to ensure maximum uptime; if not, why not; if so, what are the relevant details;

(5) whether penalties are applicable for failure by the service provider to provide the schools with the required service levels; if not, why not; if so, what are the relevant details?

NW1372E

REPLY:

1) Of the 500 Dinaledi schools, 375 schools are connected via various public and private sector initiatives which were not led by the DoC. These schools were connected in an coordinated manner, this challenge therefore led to the development of the National Connectivity Plan for Schools which seeks to facilitate the uniform provision of broadband connectivity to all schools. The DoC is in the process of connecting the remaining 125 Dinaledi schools as part of the pilot phase of the implementation of this Plan.

2) (a) and (b) There was no single internet service provider as these 375 Dinaledi schools were connected through various public and private sector initiatives by various service providers.

3) 4) and 5) As mentioned above, these schools were connected through various public and private sector initiatives. The DoC did not issue any tender on this. In most cases, the schools entered into individual agreement with the service provider. The details of the name of the service provider, the cost and the service level agreements will therefore differ in these schools as the connectivity arrangements are different.

Reply received: June 2012

QUESTION NO: 1247

DATE OF PUBLICATION: 18 May 2012

QUESTION PAPER NO: 13

DATE OF REPLY:

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

(1) Whether the SA Broadcasting Corporation (SABC) has conducted an investigation, or has been informed of an investigation, into the SA Music Rights Organisation (SAMRO); if so, (i) what is the nature of the investigation and (ii) charge in this regard; if not.

(2) Why did the SABC inform the Portfolio Committee of Communications in March 2012 that such a case had been lodged at the Brixton Police Station?

NW1371E

REPLY:

(1) The SABC, through the Special Investigations Unit (SIU) conducted an investigation into a matter that involved SAMRO, but SAMRO was not implicated of any wrongdoing in the matter. Instead, SAMRO has worked together with the SABC in identifying potential irregularities. The accusation relates to one of the SABC's music programmes, and the rights associated with it payable to the music industry.

(2) A case has been opened at Brixton police station, for the Commercial Crimes Unit, Case no: 535/05/2010. Any update with regards to the prosecution may be obtained directly from the SIU.

Reply received: July 2012

QUESTION NO: 1246

DATE OF PUBLICATION: 18 May 2012

QUESTION PAPER NO: 13

DATE OF REPLY:

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

(1) (a)How much revenue from television licence fees is currently owed to each provincial operation of the SA Broadcasting Corporation (SABC) and (b) since what date have these funds been outstanding in each case;

(2) What is the (a) process and (b) due date in a financial year for the allocation of such funds to the provincial operations of the SABC;

(3) Whether she has taken any steps to ensure that at all provincial operations receive the specified income on time; if not, why not; if so, what steps?

NW1356E

REPLY:

(1) The collection of TV license fees is governed by Section 27 of the Broadcasting Act, no 4 of 1999, as amended. The Act stipulates that television license revenue may be used only to fund the SABC's public service mandate.

Television license fees therefore fund the SABC's Public Broadcasting Service mandate in terms of local content and programming on both television and radio. License fees are not used for commercially driven or any operational activities of the SABC and TV license funds are therefore not allocated to provincial offices

(2) Not applicable

(3) Not applicable

Reply received: July 2012

QUESTION NO: 1224

DATE OF PUBLICATION: 11 May 2012

DATE OF REPLY:

Dr S M van Dyk (DA) to ask the Minister of Communications:

what amount the Department spent on:

(a) Catering

(i) in the (aa) 2007-08, (bb) 2008-09, (cc) 2009-10, (dd) 2010-11 and (ee) 2011-12 financial years

(ii) since 1 April 2012

(b) Entertainment

(i) in the (aa) 2007-08, (bb) 2008-09, (cc) 2009-10, (dd) 2010-11 and (ee) 2011-12 financial years

(ii) since 1 April 2012

REPLY

1. Catering

Catering on Departmental activities includes expenditure incurred on individuals employed or contracted to the department or individuals outside the employ of the department, in connection with the activities of a department, or division within a department, that directly relates to the achievement of its objectives. Such expenditure includes, but is not limited to:

(a) Catering for lekgotla's, conferences, bosberade, workshops, indabas, courses, forums, hearings and meetings held with the intention to discuss the governments' or departments' Initiatives;

(b) Catering for a function for the launching/roll-out of an product of the department or division within a department (for example the Public-Private Partnership Manual);

(a) Amount spent on Catering

Year	2007-08	2008-09	2009-10	2010-11	2011-12	April 2012
Amount (R Million)	2.505	2.868	2.781	1.546	2.178	0.203

Entertainment

Items include entertainment expenditure incurred by members of the Senior Management Service (SMS) as well as Ministers and his/her office bearers in performance of their duties. Such expenditure includes, but is not limited to:

(a) Luncheon meetings held with foreign delegations and/or other individuals in and outside the public sector; and

(b) Amount spent on Entertainment

Year	2007-08	2008-09	2009-10	2010-11	2011-12	April 2012
Amount (R Thousand)	74	149	145	110	126	6

Reply received: June 2012

QUESTION NO: 1138

DATE OF PUBLICATION: 11 May 2012

QUESTION PAPER NO: 12

DATE OF REPLY:

Mr DC Ross (DA) to ask the Minister of Communications:

(1) What is the total cost of upgrading the SA Post Office teller points to meet banking security standards;

(2) Whether the cost has been budgeted for; if not, why not; if so, what are the relevant details;

(3) On what date is the upgrade expected to (a) commence and (b) be completed?

NW1267E

REPLY

(1) In most cases the upgrading of a branch with 288mm counter screens, alarms systems, anti-bandit door, panic buttons, etc. to meet banking standards, is estimated between R1,3 million and R2 million depending on the size of the branch. Branches are planned for upgrading on an annual basis as per the annual targets depending on the branch needs and prevailing circumstances.

(2) Every year the South African Post Office includes the upgrading of branches in its annual roll-out budget.

(3) Upgrading of branches is a continuous process and depending on the size of the branch, it can take up to 3 months to complete a project. SAP0 is planned to upgrade 10 branches in the current financial year.

Reply received: July 2012

QUESTION NO: 1087

DATE OF PUBLICATION: 4 May 2012

QUESTION PAPER NO: 11

DATE OF REPLY:

Mr. DC Ross (DA) to ask the Minister of Communications:

1. (a) What are the (i) yearly rental and (ii) floor space of the (aa) current and (bb) previous premises occupied by her department's head office and (b) when (i) was the current building occupied and (ii) does the current lease expire;

2. Whether her department publicly invited tenders prior to leasing the current premises; if not why not; if so, (a) when, (b) where was it published and (c) which (i) companies and (ii) properties were shortlisted;

3. What was the (a) floor space and (b) annual rental offered by each shortlisted (i) company and (ii) property?

NW1275E

REPLY:

1. The Department currently pays (a)(i) R28 989 125.64 (new rate for the year 2012/ 13) and (ii) occupies floor space of 12 308.50m² (aa) in I-Parioli Office Park since the year 1996 and, (bb) previously the Department was only an entity called Post and Telecommunications working occupying Mutual and Federal Buildingandthe current procurement procedure did not apply to the organisation.

(b) (i) The current building was occupied in July, 1996 and (ii) the lease expired in March 2009 .The Department of Public Works (DPW) is currently engaging with the landlord regarding the price of the lease.

2. As explained above when the Department of Communications (DoC) entered in the lease contract for the current building it was before it became a government department. Therefore, (a), (b) and (c) different procedures were followed in this regard. The lease was handed over to the (DPW) only after 1998 when the DoC became the government department. This means from that period and further, the accommodation matters will be handled by the DPW and as expected they will implement procurement procedures and only inform the DoC when the lease has been concluded.

3. (a) Floor space occupied is 12 308.50 and (b) rental always increase annually and currently amounts to R28 989 125.64 (new rate for the year 2012/ 13). (i) and (ii) The procurement procedure followed was more of a private sector practice since it happened before the DoC was made a government department. Although the records are not readily available since again, DoC was not practicing the same procedures of government in terms of records keeping, but an Estate Agency (Mid City Properties) was appointed to assist in looking for options and to advice. Therefore, some clear measures were implemented to ensure that the option chosen would be the best. Due to the long period that has lapsed since then, it is possible that they may not have records available for this transaction.

Reply received: June 2012

QUESTION NO: 1084

DATE OF PUBLICATION: 1 July 2011

QUESTION PAPER NO: NW1372E

DATE OF REPLY: May 2012

REPLY:

1) Of the 500 Dinaledi schools, 375 schools are connected via various public and private sector initiatives which were not led by the DOC. These schools were connected in an uncoordinated manner, this challenge therefore led to the development of the National Connectivity Plan for Schools which seeks to facilitate the uniform provision of broadband connectivity to all schools. The DOC is in the process of connecting the remaining 125 Dinaledi schools as part of the initial phase of the implementation of this Plan.

2) (a) and (b) The 375 Dinaledi schools were connected by public and private sector initiatives. These schools are connected to the internet by various internet service providers.

3) 4) and 5) As mentioned above, these schools were connected through various public and private sector initiatives. The DOC did not issue any tender on this. In most cases, the schools entered into individual agreement with the internet service provider. The details of the names of the internet service providers, the cost and the service level agreements will therefore differ in these schools as the connectivity arrangements are different.

Reply received: June 2012

QUESTION NO: 1079

DATE OF PUBLICATION: 4 May 2012

QUESTION PAPER NO: 11

DATE OF REPLY:

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

1. Whether any advertising time was provided by the SA Broadcasting Corporation (SABC) free of charge since 1 January 2009; if not, why not; if so, in each case, what (a) was the value of the time and (b) were the reasons;

2. What is the breakdown of the free advertising time in case of (a) radio and (b) television in this regard?

NW1266

REPLY:

(1) The SABC trades its commercial air time with advertisers in line with its Sales Policies.

So-called "free advertising" may constitute any of the following:

Party Election Broadcasts (PEB's) in terms of which the SABC radio and television airtime is allocated free of charge to political parties contesting an election in compliance with ICASA Regulation. ICASA also regulates paid-for political Advertisements (PA's) as permitted during election periods.

Public Services Announcements (PA's) broadcast in terms of SABC policy defining such as a "visual and/ or audio announcement transmitted by the broadcaster and aimed at imparting knowledge or information the dissemination of which is in the public interest and/or which attempts to solicit support for, or create awareness on, any profit organisation which conduct activities in the public interest".

SABC self-promotion in the form of broadcast announcements that focus on the forthcoming programmes. SABC channels, stations, or the SABC itself. Such announcements on television are included in so called "channel promo time".

(2) The SABC broadcasts hundreds of thousands of advertisements across its television and radio services every year. Records are available for all advertisement "booked" on the SABC services. Providing a more detailed response to the question will require time and considerable resources as it is generic and spans several SABC fiscals.

Reply received: June 2012

QUESTION NO: 1078

DATE OF PUBLICATION: 4 May 2012

QUESTION PAPER NO: 11

DATE OF REPLY:

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

1. Whether any monies were paid back to advertisers by the SA Broadcasting Corporation (SABC) since 1 January 2009 due to advertising material being (a) misplaced, (b) broadcast at the incorrect time and (c) any other specified reason; if not, why not; if so, what are the relevant details;

2. What is the breakdown of the monies paid back in the case of (a) and (b) television in this regard?

NW1265E

REPLY:

(1) It is SABC policy to compensate advertisers whose "booked" advertisements are not broadcast as a result of changed schedules or an error on the part of the SABC. The parameters and authority level required for the compensation are defined by the policy. Compensation is by way of equivalent air time exposure value or Advertiser Credit Note, but not cash. Refund may be payable if warranted only by very exceptional circumstances.

(2) The SABC broadcast hundreds of thousands of advertisements across its television and radio services every year. Records are available for all advertisements "booked" on the SABC services. Providing a more detailed response to the question will require time and considerable resources as it is generic and spins several SABC fiscals.

Reply received: July 2012

QUESTION NO: 995

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY:

Mr. AC Steyn (DA) to ask the Minister of Communications

(1) Whether, with regard to the postponement of the digital terrestrial television (DTT) migration to September 2012, her department will allocate additional funding to (a) the SA Broadcasting Corporation (SABC) and (b) Sentech; if not, how will the new deadline be met without additional funding; if so, (i) how much additional funding will be allocated, (ii) by which date will additional funding be allocated and (iii) what are the further relevant details;

(2) What criteria were used to set the new deadline for the DTT migration?

NW1175

REPLY

1(a) In the absence of funding, the SABC will not be able to deliver all services as originally had been envisaged within the required timeframes. To mitigate the impact and continue to meet the deadline, the SABC will pursue a phased approach on channel and feature roll out, based on what resources will allow at a particular milestone.

1(b)(i) Sentech does not require additional funding for infrastructure building (Capex) for the DTT project as the project is still in progress hence no financial impact to completion. Additional funding will be required, however for dual illumination until analogue switch-off to cover incremental costs arising from operating. A request for the additional funds in respect of dual illumination has been submitted to DoC for consideration.

· For the 2013 MTEF period Sentech is requesting additional allocations of R213m to be received as R106 in FY2014 and R107 in FY2015 respectively for dual illumination incremental costs, as shown below. The funds received in previous financial year and rolled over into FY2013 will be used to cover FY2013 incremental costs.

Financial Year	2013	2014	2015
Dual illumination opex	95	106	107

Note:

a. The above requisition assumes 2015 analogue signal switch off, and

b. Estimates will be reviewed in the next few months to align with the new tariff model under development.

(ii) Additional funding will be required in the next financial year for dual illumination, subject to the outcomes of the final DTT tariff model.

(iii) The analogue switch off date requires definite date settings to allow Sentech to plan appropriately for the dual illumination incremental costs.

2 A number of criteria contributed to the decision to set a new timeline for the launch of the first phase of the Digital Terrestrial TV:

Technical Standards for the SA Set Top Box and Transmission Network -: the Digital Broadcasting Standard ( DVB-T ) selected by the Government in the original selection process was super ceded by a newer version ( DVB-T2 ) which is >60% more efficient than the original standard and hence a decision was made to upgrade to the newer standard i.e. DVB-T2. The DVB-T2 standard allows more frequency spectrum to be available to both Broadcasters and for Broadband usage and is technically a far superior standard. However, ICASA and other regulatory bodies needed to adapt the then current regulations to meet the newer versions of technology..this included public participation etc..

Set Top Box ( STB) manufacturing standards -: The change to DVB-T2 also meant that the STB standards had to be adapted and additional public participation also added to the original timeline being moved.

Sentech is benchmarking to switch off signals in June 2015, in line with the International Telecommunications Union (ITU) resolution that all countries of Europe, Africa Middle East and the Islamic Republic of Iran should migrate from analogue to digital broadcasting services by June 2015.

Reply received: June 2012

QUESTION NO: 954

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY: 22 MAY 2012

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

Whether the R77 million approved for the development of the new SA Broadcasting Corporation premises in Nelspruit, Mpumalanga, were still available from Treasury; if not, why not; if so, what are the relevant details;

NW1130E

REPLY:

The R77Mallocated for the development of new SABC premises in Nelspruit is not funded by Treasury. This will be internally funded by the SABC. Treasury has only funded Technology projects for the SABC.

Reply received: June 2012

QUESTION NO: 952

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY: 22 MAY 2012

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

(1) Whether any negotiations are taking place to extend the SA Broadcasting Corporation's (SABC) lease contract of its current (a) offices and (b) studios in Nelspruit; if not, why not, in each case if so, what is the extension period being negotiated in each case;

(2) Whether alternative premises are being considered for lease purposes; if not, why not; if so, (a) where are these premises situated and (b) for what time period?

REPLY:

(1) Negotiations are currently underway for the extension of both offices and studios in Nelspruit. The extension period of lease is envisaged to be for a further 36 month period.

(2) Alternative premises are not being considered at this point in time. The costs associated with relocating studios and technical infrastructure would make short term relocation economically unfeasible.

Reply received: July 2012

QUESTION NO: 950

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY:

Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) What are the reasons for the suspension of a certain person (name and details furnished);

(2) Whether she has found that due process had been followed in the process prior to his suspension; if not, why not; if so, what are the relevant details;

(3) whether she has found that a certain senior official of the SA Broadcasting Corporation (SABC) (name furnished) was acting upon instruction from the Government when she called for the tabling of the news diary; if not, what is the position in this regard; if so, what are the relevant details;

(4) On what grounds is the said intervention considered not to be in contravention of the Broadcasting Act, Act 4 of 1999;

(5) When does the SABC board intend to conclude the disciplinary process?

NW1125E

REPLY:

(1) This was not a suspension, but Special Leave granted to the individual. According to the leave policy of the SABC, section 11, the GCEO may grant an employee special leave within the SABC environment, Special Leave is regulated in clause 12 of Personnel Regulations and HCS policy HC023 as follows:

"Special leave, on conditions determined by the GCE, may be granted to an employee in the following circumstances:

(a) To sit for an approved or prescribed examination

(b) Should a medical practitioner require an employee to be isolated or quarantined because a member of his family has a contagious or infectious disease

The above mentioned regulations do not specify any time frame or period within which such Special Leave should be granted. By implication, it is the discretion of the GCEO to determine how long.

In this case the GCEO, based facts before her ie. the relations for proper business engagement with the individual was greatly undermined, decided to grant the employee special leave pending further consultation and engagement.

(2) Due process was followed in granting the employee Special Leave and not suspension.

(3) The GCEO was not aware of, nor was she ever of the view that the person was acting upon instruction from the Government when she called for the tabling of the news diary; as was stated in previously, the GCEO was acting in terms of her responsibilities as editor-in-chief, and had requested sight of the diary for information purposes, so as to properly exercise her responsibilities, and not for any other reason;

(4) The granting of Special Leave by the GCEO is in no way a contravention of the Broadcasting Act, Act 4 of 1999.

(5) As soon as all Labour Relations processes have been completed.

Reply received: June 2012

QUESTION NO: 949

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY:

Mrs J D Kilian (Cope) to ask the Minister of Communications:

(1) (a) How does she intend to manage the digital migration process, (b) when will the dual illumination process commence and (c) what have been the delays in the digitisation process;

(2) Whether any consultants have been appointed to advise the Government, if not, why not; if so, what are the relevant details?

NW1124E

REPLY:

l(a) I have established the Digital Migration Project Management Office to manage and oversee the smooth roll-out of the Digital Migration Programme. The Department, together with the broadcasting industry, have developed a Project Management Plan which is a guiding tool for the Department towards the digital launch. The Project Management Plan will be periodically revisited and reviewed together with the broadcasting industry as the need arises.

(b) The Digital Migration Policy as amended in 17 February 2012 stipulates that the government as decided that the digital signal should be switched on by the end of the 2012l2013 financial year. A final date for the commencement of the dual illumination period will be announced by myself after consultation with the Cabinet and the relevant stakeholders, including the broadcasting industry.

Ministerial changes

Technical Standards

Public consultation processes (Changes requested by the public)

The process, however, is currently on track to meet all projected timelines for the rollout of the Digital network and associated equipment

2 No consultants were appointed. The Department of Communications (DOC) has appointed a Technical Adviser, Mr. Roy Kruger, a professional engineer, to ensure that the DOC has full-time expertise available for the duration of the Digital Migration Process. Mr Kruger provides technical advisor to the Minister on all matters relating to Digital Terrestrial Television and Broadband technologies and heads the Programme Management Office (PMO).

Reply received: June 2012

QUESTION NO: 934

DATE OF PUBLICATION: 26 April 2012

QUESTION PAPER NO: 10

DATE OF REPLY:

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

(1) Whether the SA Broadcasting Corporation (SABC) has deliberated on the impact on advertising revenues by a ban on the advertising of alcoholic drinks; if not, why not: if so, (a) who took part in the deliberation, (b) when was it held. (c) what were the outcomes of the deliberation;

(2) How much of the SABC's advertising revenue for the (a) 2009-10, (b) 2010-11 and (c) 201 1-12 financial years was received from alcoholic drink advertisements;

(3) whether any contingency plans have been put in place to counter the drop in advertising revenues in the event that alcoholic drink advertising is outlawed; if not, why not; if so, what are the relevant details?

NW1095E

Reply:

(1) The sales Division of the SABC completed an analysis of the revenue impact of a ban on alcohol advertising in may 201 1. There was extensive consultation within the sales Division and the members of the Group Executive Committee were informed about the findings. The scenario of a total or partial ban was subsequently also discussed by the National Association of Broadcasters (NAB) of which the SABC is a member.

(2) The SABC analysis for advertising revenue was done for the 2010-201 1 fiscal. Both Advertising Industry data on the value of alcohol advertising in South Africa over a 5 year period and actual committed alcohol advertising spend on the SABC channels and stations were used for analysis. Depending on the severity of the ban (total or partial) and the extent to which the SABC would be able to source alternative advertising revenue (estimated 20%) the worst-case revenue impact was calculated to be several hundred million rand.

(3) Contingency planning has been done to the extent possible. The SABC has also participated fully in the deliberations and planning being done by the NAB. Of note is the sharp contrast with the introduction of the ban on tobacco products at which time the mobile phone industry in South Africa was entering a period of rapid growth. For the SAB, this provided an alternative source of revenue in the place of lost revenue tobacco advertising

Reply received: June 2012

QUESTION NO: 923

DATE OF PUBLICATION: 20 April 2012

QUESTION PAPER NO: 09

DATE OF REPLY:

Mr A C Steyn (DA) to ask the Minister of Communications:

(1) Whether the SA Broadcasting Corporation has a policy pertaining to the broadcasting of spiritual programmes on SABC radio stations; if not, why not; if so, what are the relevant details;

(2) Whether a formula is used to determine an even spread of participation by various (a) religious or (b) spiritual groups; if not, why not, in each case; if so,

(3) Whether the formula is devised in conjunction with leaders of religious and spiritual groups; if not, why not; if so, (a) how and (b) when do such consultations take place;

(4) Whether any of the religious and spiritual spokespersons presenting these programmes receive any (a) Remuneration (b) Commercial advantage; if not, why not; if so, in each case, (i) How much is paid to the presenter (ii) What is the commercial value accrued to the (aa) presenter a (bb) the specified organisation?

NW1105E

REPLY:

(1) The SABC recognizes the fact that SA is a multicultural and multi faith society and in accordance with the Constitution and the Broadcast Act, has developed a religious Policy that governs religious and spiritual programming on the broadcaster.

(2) The policy clearly indicates that the "SABC has an obligation to. Provide religious programming and to broadcast religious material in a manner that is unbiased and representative of South Africa's religious plurality. In so doing the SABC seeks to promote mutual respect for religious beliefs amongst the country's different religious groups." The SABC's approach to religious and spiritual programming recognizes 5 major religious groupings, viz. Christianity, Hinduism, African Religion and Tradition, Islam and Judaism and reflects these within its portfolio, whilst allowing for full expression for those religions that do not have an extensive following. The policy indicates that the SABC undertakes to provide "meaningful and sufficient religious programming on its radio and television services."

In the allocation of airtime, the SABC is committed to the principle of fairness and equitability and applies this principle in determining the time allocated to each group.

(3) The policy makes provision for a Religious Broadcasting Panel, known as the (RBP), to provide assistance and advice to the SABC in terms of time allocation and is based on the following:

i. Data on the percentage of the population in each religious group, as per the latest information on the census

ii. The need for the major religions to enjoy meaningful and sufficient programming of a faith specific nature as well as a multi-faith nature

iii. The need for all religions to be reflected in religious programmes

iv. The need to redress past imbalances in religious programming.

The RBP term of office came to an end three years ago and at this stage there is no RBP in place. Since the REP (2009) left, there has been little deviation in the schedule.

The Religious Policy is currently under review as with all the other policies of the SABC. Whilst there has been consultation with stakeholders on broadcast matters there has been no consultation on this specific issue, since the last RBP. However, since the appointment of the new GCEO, Ms Lulama Mokhobo, we are now able to move forward on the policy review process.

(4) The SABC as a public broadcaster does not pay any spokesperson to deliver any religious messages or if they are being interviewed. However there may be an allowance for petrol costs or remuneration for travel costs, if the spokesperson travels on their own from a long distance, as with any other production.

Reply received: May 2012

QUESTION NO: 921

DATE OF PUBLICATION: 20 April 2012

QUESTION PAPER NO: 09

DATE OF REPLY:

Mr. AC Steyn (DA) to ask the Minister of Communications:

(1) Whether her department was involved in the advertisement of the Go Digital South Africa campaign in March 2012; if not, why not; if so, (a) how much money was spent on advertising the campaign, (b) what was the (i) purpose and (ii) reasons for the timing of the campaign and (c) how effective has this campaign proven to be;

(2) whether funding for the campaign came from the budget of the Government Communication and Information Services (GCIS) for the 2012-13 financial year; if not, what was the source of the funding; if so, what are the relevant details;

(3) What are the details of the total costs of the campaign between (a) national newspapers, (b) community newspapers, (c) national broadcasters and (d) community broadcasters?

(4) Whether advertising ran for successive weeks in all print publications during the campaign; if not, why not; if so, what are the (a) reasons and (b) further relevant details?

NW1103E

REPLY:

(1) The Department of Communications was involved in the advertisement of the GO Digital campaign. Government Communications Information Systems (GCIS) was further requested to assist with the facilitation of online media, community print adverts and community radio stations.

(a) An amount of R3, 319,144.22 was utilised as at the end of financial year 2011/2012.

(b) (i) The purpose was to educate ,inform and raise awareness to the South Africans citizens about the Digital Migration campaign.

(ii) The timing stems from ensuring that the communities are educated.

(c) The print campaign only started in March, the effectiveness of the campaign will be determined in the process as the Department continues to unpack the Digital migration process through other communications mediums.

(2) The Digital Migration Communication campaign was funded by the Department of Communications as it was previously budgeted the 2012/13 financial year.

(3) The total costs of the campaign between (a) National Newspapers as at the end of 2011/2012 is R3,319,144.22 (b) Community newspapers will commence from May (c) national broadcasters has not commenced as in last financial year and will commence from May and (d) community broadcaster will only commence in May.

(4) The campaign adverts are running in national newspapers both daily and weekly newspapers. (a) In the initial commencement of the campaign, the campaign ran in successive days then staggered in different newspapers to accommodate the financial budget of the year 2011/2012. (b) The campaign budget was further spread and spent wisely to ensure that there is maximum coverage in print publications for different days of the week not in order of successive days.

Reply received: June 2012

QUESTION NO: 915

DATE OF PUBLICATION: 20 April 2012

QUESTION PAPER NO: 09

DATE OF REPLY:

Mr. AC Steyn (DA) to ask the Minister of Communications

(1) Whether any (a) national, (b) provincial and (c) local government department or entity currently owes the SA Broadcasting Corporation money for advertisements; if so, in each case, (i) which department or entity, (ii) how much money is owed, (iii) for what period have the funds been overdue;

(2) Whether the SABC has taken legal action against any of the departments or entities; if not, why not; if so, against which department or entity has this action been taken?

(3) Whether any funds have been recovered as a result of such legal action; if not, why not; if so, what are the relevant details in each case?

NW1097E

Reply

(1) All three levels of Government in South Africa are significant advertisers on the SABC Radio and Television. As is the case with other significant advertisers, arrears occur from time to time and are mostly related to disputes or cash-flow difficulties. There are currently arrears with individual accounts within all three tiers of Government as well as with nearly all of the advertising agencies conducting business with the SABC. Total debt to the SABC at the end of March 2012 amounted to more than R1 billion from more than three-thousand accounts.

(2) If the SABC takes legal action against debtors all other means of resolution prove fruitless. In a number of cases, the suspension of Government accounts has resulted in payments of outstanding debt. Currently, legal action is pending on various accounts.

(3) Resolving outstanding debt whether by Government or the private sector is a dynamic process. Details on the status of the thousands of accounts involved thus change on a daily basis. In this respect the SABC complies with the provisions of the National Credit Act (NCA)

Reply received: June 2012

QUESTION NO: 913

DATE OF PUBLICATION: 20 April 2012

QUESTION PAPER NO: 09

DATE OF REPLY:

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

Whether, with reference to the replies to questions 851 on 8 September 2009, 548 on 13 March 2010 and 1048 on 1 July 2011, the National Wholesale Broadband Network (NWBN) project, of which the Dinaledi Schools project was at the core, had been abandoned; if not, what is the current progress on the project; if so, what (a) are the reasons for this and (b) happened to the R500 million that the National Treasury allocated to the project?

NW1094E

REPLY:

(a) The project has been deferred. NWBN project: The R500m transferred to Sentech for NWBN rollout is ring- fenced in an investment. Sentech will only implement NWBN upon approval of Departments National Broadband Strategy.

(b) However; whilst the NWBN project is on hold, Sentech is sometimes requested to connect schools at the provincial level on a commercial level. For example, in the past financial year, one hundred and twenty one (121) schools in KwaZulu-Natal and Free State were connected. Fifty one (51) of these schools were Dinaledi schools.

	Dinaledi Schools	Other	Total
KwaZulu-Natal	47	41	88
Free State	4	29	33
Total	51	70	121

Sentech's has a schools connectivity intervention through the Company's Corporate Social Investment initiatives. For FY12113, the Company will connect 14 schools across all provinces.

Reply received: June 2012

QUESTION NO: 861

DATE OF PUBLICATION: 20 April 2012

QUESTION PAPER NO: 09

DATE OF REPLY:

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

(1) Whether programmes covering (i) a certain political organisation (name furnished) or the (ii) organisation's Centenary celebrations will be broadcast from any of the SABC platforms; if not, why not; if so; (a) how many broadcasting hours will be allocated on both (i) radio, and (ii) television, (b) who will make decisions on the time slot and choice of channel for broadcasting. (c) How will broadcasting effect the normal programme schedule of SABC stations, (d) what will be the role of the Public Radio service;

(2) Whether the tone and content of the programmes will be prescribed to production managers; if not, why not; if so, what are the relevant details;

(3) whether the SABC has found that the advertising revenue of the SABC will be affected by any potential changes to the regular programme schedule; if not, how was this conclusion reached; if so, what are the relevant details;

(4) What will be the cost of outside broadcasts?

REPLY:

(I) Yes, the ANC Centenary Celebrations will be broadcast on SABC Radio.

(a) The duration of each broadcast will depend on the significant events organized by the ANC. Some events will be provincial and others, like the Mangaung Centenary launch, will be national.

(b) SABC Public Service radio stations will each cover the 1 hour long monthly lectures on ANC Presidents which are done by the ANC President Mr. Jacob Zuma.

(d) Public Service radio will open the schedules for the "live" broadcasts.

(2) No, the tone and the content will not be dictated to the production team.

(3) Radio stations inform Radio Sales when there are to be any "live" coverage of an event so that advertising clients can be informed of when their adverts will be scheduled. In the absence of specific programme details, it is not possible to quantify the actual/potential impact on SABC revenue. As a general rule, schedule changes made well in advance do not have any significant revenue impact as it is possible to re-schedule "booked" advertisements accordingly, or to find other advertisers for the alternative content. This is provided that the displaced programmes are not high-revenue prime time titles such as "Generations", "Isidingo", etc. When schedule changes are made at very short notice, as happens with some sports events and special news coverage, the risk of revenue loss is higher but is still manageable in some circumstances. The risk to revenue is higher if the displaced content has already been scheduled within prime time and the associated commercial inventory has already been sold.

(4) The cost of outside broadcast depends on the location of the venue. Furthermore, in light of the fact that the lectures will be conducted every month for the rest of the year, the full cost will only show at the end of January 2013.

Reply received: July 2012

QUESTION NO.:860

DATE OF PUBLICATION:

QUESTION PAPER NO.:

DATE OF REPLY:

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

(1) Whether the SABC has awarded any contracts to production companies to develop programming reflecting on (a) a certain political organisation (name furnished) or (b) any of the said organization's as part its centenary celebrations; if not, how was this conclusion reached; if so; (i) what are the (aa) names and (bb) contact details of the production companies, (ii) what (aa) are the titles and basic content structures of each programme, (bb) is the target audience and (cc) are the provisional dates for broadcasting, (iii) what is the rand value for each production and (iv) who decided to award the contracts in each case;

(2) What (a) will be the total cost spends by the SABC on the said political organization's centenary celebrations and (b) is the detailed breakdown of the costs;

(3) Whether the SABC secured any sponsors to cover these costs; if not, why not; if so, what was the rand value of the sponsorships?

Reply

TELEVISION RESPONSE:

(1) As a public broadcaster the SABC is mandated to reflect a broad discussion on democracy in South Africa. As such programming that reflect the history, legacy and contributions towards democracy are commissioned and have been so, over the years.

As a Public Broadcasting Services we will strive to reflect this key milestone in our history through previously acquired content of historical and contemporary relevance. The duration of existing content is cost effective and ensures efficient utilization of SABC's shelf content at no extra cost to the SABC.

The only new content commissioned is the 4 part religious strand ANC in Religion at a cost of R4, 250 per minute with SABC's current cost per minute for factual content being R5, 500. All other content are archived programmes acquired under SABC's PBS mandate and detailed below:

CONTENT COMMISSIONED

ANC and Religion:

Produced by Eugene Botha Productions

Unsolicited Proposal submitted to SABC by the production company in 2011 and evaluated as per SABC's policy and procedure document by Factual Genre and Platforms

4 x 48 minute documentaries flighted from 3rd January SABC 1

A series that was commissioned at the beginning of the year that looked at the role of the religious communities in the struggle for liberation and highlighted the role and divergent views of the religious communities with political organizations like the ANC;

Sobukwe, A great Soul:

Produced by Born Free Media (Khalo Matabane & Carolyn Carew on 011 912-7892)

Commissioned in 2008 under SABC's Special Icons project

The 48 minute version was broadcast on SABC 1 in March 2011. This year the feature length version was broadcast on SABC 1 during the month of April 2012;

A feature length docu-drama the story of a giant, an unusually extraordinary human being, a global visionary, teacher, political leader of note, a philosopher, spiritualist, Humanist Par Excellence.

A celebration of the life of, PAC leader Robert Mangaliso Sobukwe.

LICENSED CONTENT

Have you heard from JHB:

License from an American production company Clarity Films in co-production with a local nonprofit organisation Steps International (Connie Field 510-841-3469 & Don Edkins 021 465-5805)

Unsolicited license submission at Durban Film Mart

SABC acquired license in 2010

Broadcast on SABC 2 in late 2010 and 2011 and in January 2012

7 x 52 minute episodes

A 7 part internationally acclaimed series that chronicles the world uniting to free a nation. The use of never-before-seen archives and intimate interviews are reflected which unpacks the movement that mobilized global action against apartheid from Sweden to the USA. Of movements that shake up governments across the world, that force big companies to their knees, and change the minds of millions of people. It's a story of how the people of the world – very often against the opinions of their governments – destroyed apartheid in South Africa. The series is made up of seven stories from around the world, including South Africa and plays an important role in opening up South Africa to the world.

Ep 1 – THE ROAD TO RESISTANCE; Ep 2 – HELL OF A JOB; Ep 3 – THE NEW GENERATION; Ep 4 – FAIR PLAY: the World v. South Africa; Ep 5 – FROM SELMA TO SOWETO; Ep 6 – BOTTOM LINE; Ep 7 – FREE AT LAST;

Bang Bang Club:

Licensed film sourced through SABC International's purchasing strategies at international content festivals

SABC acquired a partnership to the international film in 2008 to leverage the international cinema release of this film and other revenue generation strategies

Videovision Entertainment (Anant Singh 031 204-6000)

Broadcast on SABC 3 during the month of April 2012

During the bitter years of the Apartheid struggle, news photographs became one of the most effective tools used to illuminate the plight of black South Africans. Unseen within South Africa these pictures rocked the international community and fuelled resistance against the white regime. At a time when black photographers became targets to almost all sides, four young white men took enormous risks to keep exposing the ever unfolding tragedy in the townships. They became known as the BANG BANG CLUB. The internationally acclaimed book is depicted in a South African film with international co-productions, actors and directors. Director Steven Silver, Cast is Ryan Phillippe, Malin Akerman, Taylor Kitsch, Ashley Mulheron, Frank Rautenbach, Neels van Jaarsveld and Russel Savadier.

Man from Nkandla:

In 2009, SABC acquired a license to a one hour documentary on President Jacob Zuma as a tribute during his inauguration

Unsolicited License was acquired from Vilakazi Development Strategies (Professor Herbert Vilakazi fax 086 605 7745)

Unsolicited license submission

Broadcast in May 2009 on SABC 1 during the president's inauguration month. It's scheduled to be broadcast on SABC 1 in December 2012 as part of our license and amortization strategy

A personal look at the President as a young boy growing up in Nkandla

Viva Madiba (In the time of Mandela):

In 2009, SABC acquired a license for a documentary celebrating Nelson Mandela's 90th birthday

Unsolicited licensed

Video vision Entertainment (Anant Singh 031 204-6000)

Was broadcast on SABC 2 in June 2009

Is scheduled for re-broadcast on SABC 1 in June/July 2012

The documentary is a celebration of an icon, a titan of our times and a giant. In the year of his 90^th birthday, Nelson Mandela remains a man at the centre of attention, not only in South Africa, but around the world as well;

Behind The Rainbow:

In 2009, SABC acquired a license for a feature length international documentary at the Durban Film Festival as part of the 15 years of Democracy exploration

Big World Cinema (Steven Markowitz 021 465-4686)

Behind the Rainbow was broadcast on SABC 2 in 2009 and is scheduled for re-broadcast on SABC 2 in 2012 (transmission date to be confirmed)

The documentary is the story of the transformation of a Liberation movement to a state institution. Through the prism of the ANC, it's past and present, we will attempt to understand the post decolonisation process that has been undergone on the African continent. This is a documentary goes beyond the facade of South Africa's Cinderella-like fairy tale transformation and provides the keys to analyse the future challenges. It address themes that have until now been brushed aside so as not to thwart the nascent democratic process in South Africa. The answers we seek will help provide keys to understanding rather than fall for the temptation to criticise. The film is directed by internationally acclaimed Egyptian director Jihan El Tahri and features never before seen archives and poignant, honest interviews with South African struggle stalwarts.

CORPORATE MARKETING RESPONSE:

Corporate Marketing commissioned corporate/transversal promos to complement the content and themes. These were booked via Media Shop in commercial time. Owing to governance/financial controls (non-billable items) and regulatory considerations Commercial Sales, in consultation with Television Division, instructed Corporate Marketing to book the promos on TVBMS (channel promo time). The latter instruction was issued in March.

(2)(a) The total cost of the content acquired for this event was R816, 000

(b) The production was "ANC and region" produced by Eugene Botha Productions. 4x 48 minutes documentaries were created at a cost of R4, 250

Details of all other expenditure related to the centenary celebrations were answered as per specific questions.

(3) No sponsors were secured. It is not a requirement to secure sponsors for every production or event.

2012-11-30

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