Communications

2012-06-30

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Reply received: June 2012

QUESTION NO: 746

DATE OF PUBLICATION: 16 March 2012

QUESTION PAPER NO: 08

DATE OF REPLY:

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

Whether any officials from (a) her department and (b) any entities reporting to her were on an official visit to Bloemfontein in (i) December 2011 and (ii) January 2012; if so, in each case, what (aa) is the (aaa) name and (bbb) position of the specified official, (bb) was the (aaa) purpose and (bbb) date of such visit and (cc) was the cost of (aaa) transport, (bbb) accommodation and (ccc) other expenses?

NW914E

REPLY:

DoC

Yes, Ms P Mallela; Director: Stakeholder Management. The purpose of the visit was to meet with Mobile Operators: SABC, Members of the IDLC on Centenary celebrations.

The cost of transport was as follows:

Motor Car: R5827. 49

Flight: R3 664.00

SAPO

The South African Post Office (SAPO) did not have any official delegated to attend any meeting in Bloemfontein during the dates specified above.

SENTECH

(b)(i) No official was delegated to travel to Bloemfontein during December 2011.

(ii)(aa) (aaa) Obakeng Mametse travelled to Bloemfontein in January 2012.

(bbb)Human Resources Officer: Compensation and Benefits Department

(bb)(aaa) The purpose was to co-ordinate a retirement function for Anessa van

der Merwe

(bbb) 19-20 January 2012

(cc) the total cost amounted to R 4 002.04

USAASA

(b)(i) No official travelled to Bloemfontein during December 201(ii)(aa) (aaa) Mr Mantji Fenyane travelled to Bloemfontein in January 2012

(bbb) Information Technology Manager

(bb)(aaa)The purpose was to install new software at the renewed centres in the Free State

(bbb) 24-27 January 2012

(cc)(aaa) transport costs amounted to R 9 627.24

(bbb) accommodation costs amounted to R 3 640.00

(ccc) other costs included toll fees which amounted to R 212.

NEMISA

NEMISA did not have any official delegated to attend any meeting in Bloemfontein during the dates specified above.

ICASA

ICASA was requested by NATJOC and PROVJOC to participate at the Mangaung conference, to resolve and mitigate harmful frequency interference. ICASA have previously been asked to participate in national events as determined by NATJOC such as the 2010 World Cup as well as the COP 17 conference in 2011.The employees based in Bloemfontein regional office carried out the necessary activities in the resolution and mitigation of harmful frequency interference.

SABC

SABC was represented by 169 people to Mangaung. These included journalists, production personnel, management, Senior Management and Board members.

Total number of people 169

Board Members 4

Group Executives 3

Senior Managers 4

Journalists, production personnel, on air personality 158

Accommodation and care hire R668 779. 90

Flights R165 192. 00

Reply received: April 2012

QUESTION NO: 566

DATE OF PUBLICATION: 2012

QUESTION PAPER NO: NW731E (Q566)

DATE OF REPLY:

Mrs. M Wenger (DA), a Member of Parliament to ask the Minister of Communications:

1. Whether the department has an internal audit unit; if not, why not; if so (a) how many staff members are employed in the unit and (b) what (i) is the structure and (ii) are the functions of the unit

2. Whether the audit committee considers the internal audit reports; if not, why not; if so, what are the relevant details;

3. Whether she holds meetings to discuss (a) the internal reports and (b) their findings with the audit unit; if not, why not, in each case; if so, (i) on what dates since 1 April 2010 has each specified meeting taken place and (ii) what are the further relevant details?

DISCUSSION

4.1 Reply

Question 1

a) The Internal Audit unit has four staff members comprising a chief director, two deputy directors and a senior administrative officer. One of the two deputy directors was appointed on the 1^st of March 2012.

b) Internal Audit structure and functions;

i. The structure comprises; chief director, a director, three deputy directors, a senior admin officer, and an executive secretary

ii. Internal Audit provides independent and objective assurance regarding the effectiveness of controls put in place by management to ensure achievement of the Department's programmes and operational objectives. To achieve this, the Internal Audit performs the following:

· Examine the objectives of programmes and operations and appropriate risks and develop an audit strategy

· Implement the strategy by primarily conducting audits

· Report on the outcome of the audits and make recommendations for improvement where deficiencies have been identified.

iii. Internal Audit also provides advisory services to management based specific requests to do so.

Question 2

a) Yes, the Audit Committee considers the reports of Internal Audit;

b) The Audit Committee through its quarterly meetings considered Internal Audit's reports of its performance, the audit assignments it conducted and the advisory services it rendered to the Accounting Officer.

Question 3

No, the Minister neither holds meetings with Internal Audit nor receives report from Internal Audit. Internal Audit is required to report to the accounting officer as prescribed in terms of the section 3.2.9 of the Treasury Regulations.

Reply received: April 2012

QUESTION NO: 552

DATE OF PUBLICATION: 9 March 2012

QUESTION PAPER NO: 7

DATE OF REPLY: 17 April 2012

Mrs JF Terblance (DA) to ask the Minister of Communications:

(1) Whether she has been informed of any tests on LTE that are being conducted locally; if so, (a) when did the tests commence, (b) what number of sites has been identified and ( c) what is the physical location of each site;

(2) whether any licences have been issued for the test sites; if not, why not; if so, (a) how many, (b) on what date and (c) for which sites;

(3) whether any public participation has been obtained with regard to the test sites; if not, why not; if so, what are the relevant details of the process in each case?

NW713E

REPLY

1(a-c) Operators who are not licensed for particular spectrum bands and intend to conduct tests, are required to apply to the Authority for tests spectrum licences. In this case, there are no records and/or correspondence on any official applications for test spectrum licences to conduct LTE tests received by the Authority.

Operators who are already licensed on the relevant spectrum bands are not required to apply for test spectrum licences and do not need the Authority's approval to conduct any tests using their licensed spectrum. If such licensees were to conduct tests, the Authority will not be in a position to know where the tests are being conducted, unless the Authority has been informed as a matter of courtesy.

2. There are no test spectrum licences issued as such applications have not been submitted to the Authority.

3. There was no public participation on the matter, because an application to this effect has not been submitted to the Authority. There is no requirement for licensees to inform the Authority of the use of technologies as the Electronic Communications Act, no.36 of 2005, as is technologically neutral act.

Reply received: April 2012

QUESTION NO: 551

DATE OF PUBLICATION: 9 March 2012

QUESTION PAPER NO: 7

DATE OF REPLY: 17 April 2012

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

(1) Whether, with regard to the draft policy directions on Exploitation of the Digital Dividend Spectrum and Radio Frequency Spectrum for Electronic Communications Services in terms of section 3(2) of the Electronic Communications Act, Act 36 of 2005, as published in Government Gazette No 34848 of 14 December 2011, Notice 898 of 2011, her department has conducted any study on the potential negative impact on the health of (a) people, (b) animals and (c) flora; if not, why not, and when will such a study be conducted; if so, (i) when and (ii) what were the findings;

(2) whether she has been informed of any other country that has placed restrictions or issued warnings with regard to Long Term Evolution (LTE) and 4G technologies; if so, (a) which countries adn (b) what are the relevant details of the restrictions and warnings in each case?

NW712E

REPLY

1. There are comprehensive international guidelines that exist governing exposure to radio waves.

These guidelines have been widely adopted in standards around the world, and also endorsed by the World Health Organisation (WHO). Scientific research has already been conducted over the past few years into the possible health effects from mobile phones, base stations and other wireless services including 4G. The data from this research has been analysed by many expert review groups.

In weighing the whole body of evidence, there is no evidence to convince experts that exposure below the guidelines set by the International Commission on Non-Ionizing Radiation Protection (ICNIRP) carries any health risks, for adults or children.

The Electronic Communications Act makes provision in section 35 that all communications equipment must be type approved by ICASA. These Communications equipment include any network facilities, Customer equipment and Radio and Telecommunications equipment associated with LTE and or 4G Equipment complies with technical standards as they relate to safety, protection of Consumers, Network Inter-operability, Immunity and Interference Avoidance. All communication equipment that is to be used in the Country legally is to have an ICASA mark thus giving confidence to the consumers that all the necessary steps have been taken to protect them. It is a legal requirement that suppliers and manufacturers of all communication equipment meet the ICASA requirement before entering the South African Market.

Reply received: April 2012

QUESTION NO: 531

DATE OF PUBLICATION: 9 March 2012

QUESTION PAPER NO: 7

DATE OF REPLY: 17 April 2012

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

1) (a) what is the position regarding the policy approach of the ICASA to the licensing of spectrum in the two high-risk bands, namely 800MHz and 2,6GHz and (b) how will it affect (i) job creation, (ii) rural connectivity and (iii) economic growth;

(2) (a) what steps does her department intend taking to encourage further infrastructure development and investment by mobile operators with the capacity to build next generation wireless broadband networks to bridge the urban/rural divide and (b) what are the reasons behind to roll-out obligations that will be imposed on competing mobile operators;

(3) Whether certain companies (name furnished) have been awarded licences to operate in this band; if so, what are the relevant details;

(4) Whether ICASA followed the regulatory framework and due process in awarding advance access to this scarce resource to the three companies; if not, why not; if so, what are the relevant details;

(5) How does her department intend to deal with the negative consequences of shortcomings in regulation by ICASA in the awarding of scarce spectrum which is posing a unique opportunity to roll out communications infrastructure to rural communities?

REPLY

ICASA has informed me that:

1. (a) There will be a need to issue a policy directive to them for Electronic

Communications Services in the High Demand Spectrum which will provide the policy approach to the licensing of spectrum in the two high-risk bands

(b) (i) the effect on the Job Creation is the stimulation of the market by possible licensing of new entrants into the market including underserved areas where new jobs are to be created to service the communities.

(ii) & (iii) Economic Growth is to be stimulated by the combined licensing approach in that lower coverage cost with the 800MHz used to cover rural areas with less bas stations and the 2.6GHz used to covered high density areas due its building penetration characteristics. This will result in efficient use of spectrum. The combined approach will also stimulate broadband uptake by consumers who otherwise could not afford the services due to the fact that consumer prices are likely to be pushed down by market forces due to increase competition in the sector.

2. (a) In order to encourage Infrastructure Development and Investment bridge the Urban Rural Divide, the intention to use the combine licensing approach of the 2.6GHz band which is good for capacity and penetration in built-up urban areas and the 800MHz band which is good for coverage with one base station covering a very wide area due to its propagation characteristics.

(b) The roll-out obligations are set to encourage infrastructure development first in the rural areas where services are currently limited. This is to stimulate access ,to the means of communications by rural and underserved communities thus giving them access to broadband services.

3. Neotel (PTY) LTD is currently running CDMA2000 services and has been assigned 2 times 4.92MHz of the 800MHz band which spread throughout the frequency range 827.775 – 832.695 MHz paired with 872.775 – 877.695 MHz is coordination requirements.

Sentech (PTY) LTD is assigned 50 MHz starting from 2500 to 2550 MHz in the 2.6 MHz band.

Wireless Business Solutions (PTY) LTD (WBS) is assigned 15 MHz starting from 2550 to 2565 MHz.

4. ICASA followed the Regulatory Framework and due processes. At that time of awarding the spectrum licenses the regulatory award of spectrum was on a first come first serve basis as follows:

(a) Sentech was awarded the spectrum license on 19 September 2003 in terms of the Telecommunications Act 1996 (Act 103 of 1996) to facilitate the roll-out obligation of my wireless network.

(b) WBS was awarded the spectrum license in terms of the Telecommunications Act 1996 (Act 103 of 1996). WBS was the only operator without spectrum to provide modals services.

(c) Neotel (PTY) LTD was awarded a spectrum license in terms of the government gazette number 29345 published on 31 October 2006. The spectrum assigned was to allow Neotel to roll-out services speedily in line with their service license conditions and to compete with Telkom and affording end users a choice of services.

5. There are no negative consequences since there is no regulatory failure on the part of ICASA. At the time of award the framework was based on a first come first serve basis. ICASA has since developed a framework to be used in awarding spectrum in High Demand. This is contained in the "Radio Frequency Spectrum Regulations" published in government gazette number 34172 on 31 March 2011. ICASA has also initiated a process of migrating services in 800 MHz and 2.GHz bands to align services with the developed Channel Arrangements. This will ensure that communications Infrastructure is rolled out in rural areas without fail.

Reply received: June 2012

QUESTION NO: 530

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

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

(1) (a) What are the relevant details of all (i) mobile operators, (ii) broadcasters and (iii) government (aa) departments and (bb) agencies currently registered as licence holders with the Independent Communications Authority of South Africa (ICASA), (b) what are the full details of the type of licence granted to each institution in each case, (c) what is the status of the licence fees for each of the licence holders with regard to fees being (i) in arrears or (ii) fully paid, (d) what are the reasons for non-payment in each case and (e) what steps are being taken to force compliance with licence conditions;

(2) Whether her department has taken any steps to enforce compliance by ICASA of improved financial management practices as proposed by the Auditor-General; if not, why not; if so, what are the relevant details;

(3) Whether she intends requesting additional funding from the fiscus for ICASA; if not, why not; if so, what are the relevant details? NW682E

Reply

I have been advised by ICASA as follows:-

1(a) (i) Mobile operators:

· MTN;

· Vodacom;

· Cell C;

· Telkom;

· Neotel and

· WBS

(ii) Broadcasters (Commercial) - (see annexure A attached)

(iii) Government - (see annexure B attached)

(aa) (bb) See annexure attached

(b) (i) The listed entities below have been granted individual; Electronic

Communications Service License (ECS) / Electronic Communications Network Service License (ECNS)

· MTN;

· Vodacom;

· Cell C;

· Telkom;

· Neotel and

· WBS

(ii) Broadcasting Service License (Commercial Sound and Television)

(see annexure A attached)

(iii) Government (see annexure B attached)

(aa)(bb) See annexure attached

(c) (i) All individual ECN/S licensees are up-to-date with their payment, except for WBS, Cell C and Neotel. (see annexure attached)

(ii) All individual broadcasters are up-to-date with their payment, except for YFM. (see annexure A attached)

(d) Fees are being disputed by Neotel, WBS, YFM, Government and its related entities.

(e) The following steps have been taken to enforce compliance with licence conditions:

· With respect to new applications for certain Radio Frequencies Spectrum, the Authority will not approve applications until payment on the outstanding fees has been made.

· Daily follow-up with the license holder to remind them about their outstanding fees.

· Place an advertorial calling for defaulters to honour their outstanding debts.

· During random inspection for high band users, operators that are found non-compliant are immediately warned in terms of paying their license fees.

1. ICASA has produced a Finance Turnaround Plan to address the main two Audit Findings. That is:-

Administered Revenue

Verification of ECS and ECNS, and Broadcasting Services	30% completed
Community Radio USAF Fees Payment	60% completed letters have been sent to the Community Radio Broadcasters.
Courier Unreserved	75% completed ( billed etc)
Verification of Spectrum Debtors	95 % of big user
Spectrum Write Offs	25% cancelled licensees
Verification of NRF	70% completed
Practice Note	Gazetted before 31^st March 2012
Schedule of Outstanding Licence Fees	60% paid up

Fixed Assets

– The Auditor-General has reviewed the revised calculations and minor adjustments will be effected

Other

– The Chief Financial Officer will commence with her duties on the 2^{nd M}ay 2012.

2. An Allocation has already been granted. ICASA would under normal circumstances seek additional funds during the adjustment period.

Reply received: March 2012

QUESTION NO: 479

DATE OF PUBLICATION: 28 FEBRUARY 2012

QUESTION PAPER NO: NW 628E

DATE OF REPLY:

Mr TD Harris (DA), a Member of Parliament to ask the Minister of Communications

Whether she met with the internal audit committee in the (a) 2010-11 and (b) 2011-12 financial years; if not, why not; if so, (i) on which dates did they meet and (ii) what are the further relevant details? NW628E

Reply

During the financial year 2010/11, the then Deputy Minister Dina Pule met with the Chairperson of the Audit Committee. During the current financial year 2011/12 the then Minister Roy Padayachie expressed intention to meet with the Audit Committee, however due to the change of members of the Committee this meeting could not take place, however the Minister was briefed on the work of the Committee and the reports were made available to him. The current Minister Dina Pule has met with the Audit Committee.

Reply received: May 2012

QUESTION NO: 464

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

Ms E More (DA)to ask the Minister of Communications:

Whether Telkom has been called to repair the Edenvale Police Station telephone lines during the past 12 months; if not, what is the position in this regard; if so, (a) how many times has telkom been called, (b) why does the problem persist that the lines are not operational so that members of the public cannot contact the police station to report emergencies and (c) what action does she intends taking to rectify the situation permanently

NW612E

Reply

I am informed by Telkom that they have been called to repair the Edenvale Police Station telephones line in the past 12 months

(a) The ISDN BRI telephone number (011) 553-8602 was reported 52 times in the past 12 months, of this 50 times the problem was with extensions / Customer Premises Equipment related and 2 times the problem was with physical line that had to be repaired due to lightning.

(b) Most of the service failures have been due to either power or lightning damage related. Instruments have also been replaced where necessary.

(c) A battery backup system has been installed in order to minimise possible lightning incidents. Lightning protection units have been ordered in order to connect directly onto the ISDN lines and will be installed shortly

Reply received: April 2012

QUESTION NO: 421

DATE OF PUBLICATION: 2 March 2012

QUESTION PAPER NO: 6

DATE OF REPLY: 14 April 2012

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

How does her department ensure that (a) the (i) telephone and (ii) mobile data services are accessible to the (aa) remote places and (bb) poor members of our society and (b) these services take advantage of the largest five current investors in Africa's mobile telephone networks to benefit the poor (i) through easier access for all and (ii) by cutting down of prices. "

REPLY:

The Department has identified that there is widespread market failure to provide ICT services in remote areas despite the Universal Service Obligations (USOs) of the many licensees.

The Department has developed a National Broadband Strategy and National Broadband Plan that sets to address this market failure with respect to broadband and thus VoIP based telephone services as well as making bandwidth available to the private sector and SMME's. The plan aims to address this by using the SOE's and Public Private Partnership (PPP) models in solving this market failure.

The implementation is a move in the right direction to provide telecommunications access services to remote and underserviced areas. The model in terms of how to achieve this is currently being investigated.

The following are the expected direct benefits to consumers:

· Permit providers to give a better choice of applications and improved service levels,

· Allow customers to have alternatives in terms of telecommunication services and price,

· Speed up national economic growth and increase competitiveness in the global market,

· Support ICT in the country and hence promote economic and social growth in addition to employment opportunities.

The Department is currently reviewing the Independent Communications Authority Act and Electronic Communications Act to address identified regulatory bottlenecks that prohibit the provision of competitive and affordable prices, quality of service, access and stimulation of competition to the benefit of consumers.

Reply received: April 2012

QUESTION NO: 420

DATE OF PUBLICATION: 2 March 2012

QUESTION PAPER NO: 6

DATE OF REPLY:

Mrs JD Kilian (COPE) asked the Minister of Communications the following questions:

(a) Whether the Minister has found that her department is on target to turn on the digital television signal at the end of the dual-illumination date; if not, why not; if so, what are the relevant details with regard to the finalisation of the digital terrestrial television (DTT) migration process;

(b) the finalisation of the Digital Terrestrial Television ( DTT) migration Process, which had not even reached the starting gate

(d) will not meet the agreement to meet global switch off date of June 1 2015?

(e) Whether the set-top boxes subsidy will be introduced before, during or after the DTT launch: if not, why not; if so, what is governments plan on the subsidisation of the set-top box, vis-a-viz SABC license fees for the poor and indigent?

REPLY

(a) Whether the Minister has found that her department is on target to turn on the digital television signal at the end of the dual-illumination date:

The target date set out for the Department to turn on the Digital Television Signal and to turn off the Analogue Signal isDecember 31 2013. All current indications show that this target date will be met. Currently the physical DTT network rollout stands at >60% with a network rollout of more than 74% to be achieved by September 2012 leaving only 26% to be rolled out in the 15 months following this date. Under all normal circumstances these dates will be met.If required the dual-illumination period will be extended to ensure that rural and poor households are in possession of STB's to receive the digital signal, however , the analogue signal switch-off will be concluded within the global agreement switch off date.

(b) The finalisation of the Digital Terrestrial Television ( DTT) migration Process, which had not even reached the starting date

The Digital Migration process is fundamentally made up of three physical components:

· the rollout of the physical broadcasting network equipment

· the manufacturing of Set-Top boxes

· the distribution of Set-Top boxes

All three of these processes are well underway with policies and procedures for the distribution of Set-Top boxes at an advanced stage. The target date of December 2013 for the Digital switch-on will be achieved.

(c) Whether this project is running behind time.

The current Digital Migration project is on target.STB manufacturing timelines are tight but still on target. Future project rollout dates are all envisaged to be met.

(d)Whether will we be able to meet the agreement to meet global switch off date of June 1 2015?

The global "switch-off" date of 17 June 2015 will be met by the Department of Communications.

Although the proposed "switch-off date by the International Communications Union (ITU) is a targeted date for all countries to switch off their analogue systems. Many countries have not even begun to plan for this event.

The Set-Top Box (STB) subsidy scheme awareness program will be launched before the DTT switch-on. Subsidisation qualification criteria is being finalised by Universal Service and Access Agency of South Africa (USAASA) for the qualifying TV owning households.TV license fees will still be subsidised by the SABC for the indigent TV licensees as in the past, however, with the qualification criteria introduced by the Department of Communications (DOC) for the STB's an expanded database will be created allowing the SABC to have more control over TV licenses.

Reply received: June 2012

QUESTION NO: 419

DATE OF PUBLICATION:

QUESTION PAPER NO:

DATE OF REPLY:

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

Whether a system has been implemented and developed to identify any links between SA Broadcasting Corporation (SABC) employees to companies that have been awarded tenders by the SABC; if not, why not; if so, (a) what are the relevant details of this system, (b) how many such SABC employees have been identified, (c) what disciplinary steps have been instituted against these employees, (d)(i) how many of these specified employees are still on the SABC payroll and (ii) why are they still on the payroll and (e) what additional steps does she intend to implement to comply with the Public Financial Management Act, no1 of 1999, and the Auditor-General prescriptions in order to prevent such irregularities and other corrupt practices from occuring?

NW559E

Reply

The SABC has informed me that:

(a)There is a system in place; all recommended companies for tenders are verified with the Companies Intellectual Property Commission (CIPC) records via the Experian system. The details of the prospective bidders include:

· Status - active, inactive, liquidation, etc.

· Directors details

· Active shareholders details

· Resigned Shareholders details

· Active directors interest in other companies

· Tax status,

· Infringements, judgements, etc

Once a year, the SABC matches the Human Resources records with the CIPC database via the Experian system. These records are then compared to the SABC vendor database.

(b) Twenty (20) employees were identified.

(d)(i) Eight (8) employees are still on the payroll.

(ii) They remain on payroll until the disciplinary actions are determined.

(e) The Minister has received a commitment from the GCEO that the SABC has taken strides in strengthening its Governance Framework. In addition the GCEO has to ensure that the combined assurance structure is effective through the extensive implementation of risk management, compliance frameworks as well as ensuring that the internal control environment is sound.

Reply received: March 2012

QUESTION NO: 359

DATE OF PUBLICATION: 21 February 2012

QUESTION PAPER NO: NW445E

DATE OF REPLY: 27 February 2012

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

(1) What is the total cost breakdown for (a) rental cars and (b) shuttle services hired by the SA Broadcasting Corporation (SABC) in the (a) 2010-11 financial year and (b) during the period 1 April 2011 up to the latest specified date for which information is available;

(2) (a) how many (i) rental cars and (ii) hired shuttle services were leased by the SABC from a certain company (name furnished) and (b) what is the total cost breakdown per vehicle;

(3) Whether his department signed a permanent contract with this company; if so, what are the relevant details?

(4) whether a tender was (a) advertised and (b) awarded in this regard in accordance with prescribed tender processes; if not, why not; if so, what are the relevant details;

(5) in each case, (a) what is the (i) title and (ii) rank of the SABC (aa) officials and (bb) employees for whom (aaa) rental cars and (bbb) shuttle services were hired and (b) how many times and (c) over which period were these vehicles leased for these persons?

NW445E

Reply

(1)(a) The total cost breakdown for car rental companies for the Corporation is as follows:

(i)

01 April 2010 to 31 March 2011
First Car Rental	R 1, 800 246. 96
Avis Car Rental	R 3, 874 565. 89
Budget Rent a Car	R 96 250.10
Imperial Car Rental	R 1, 277 842. 56
Total	R 7, 048 905. 51

(ii)

01 April 2011 to 24 February 2012
First Car Rental	R 3,369 738. 26
Avis Car Rental	R 2,706 283. 74
Budget Rent a Car	R 2,485 852. 91
Imperial Car Rental	R 548 528. 94
Total	R 9,110 403. 85

The total cost for car rental is R 16 159 309.00

(b) The total cost breakdown for shuttle services companies is as follows:

Passion Travel and Tour is R61000, with effect from 24 October 2011 to date

Nojua Shuttle Service is R 482 000, with effect from 27 July 2010 to December 2011

The total cost for shuttle is R543 590

(2) (a) Nojua Trading Enterprises does not hire out vehicle, they only provides shuttle services and airport transfers.

(i)To date the SABC has spent R482 590 on Nojua Trading Enterprises, for point of collection and drop off.

(b) The following is the pricing model from Nojua

Description	Quality	Price	Total
Pick up, Midrand	1	R540.00
Drop off, Auckland Park
Waiting for 1 hour		R240.00	R780.00

Pick up, Auckland Park	1	R750.00
Drop off, Pretoria
2 extra passengers		R750.00	R1500.00

Pick up, Pretoria	1	R750.00
Drop off, Midrand
2 extra passengers		R750.00
Waiting 3 hours		R720.00	R2220.00

Pick up, Midrand	1	R540.00
Drop off, Auckland Park
1 extra passenger		R270.00	R810.00
			R5 310

(3) There was no contract signed with Nojua Trading Enterprises, as they were utilised on an adhoc basis.

(4) The SABC Airwave Travel does not procure its services through a tender process due to the nature of the business where-in rates fluctuate periodically. However, the SABC Airwave Travel signed Service Level Agreements (agreeing to rates and timelines) with businesses in the travel and tourism industry.

(5) The used of the shuttle services at the SABC is as follows:

(a)

Category	Period of times	Amount
Board Members	10	R 331 265
Group Executives	5	R 193 535
Portfolio Committee	1	R 12 800
Unallocated	5	R 4 910
Guest to 75^th Birthday Celebrating	1	R 1 080
Total	22	R 543 590

(b)The rental companies in use by the SABC for the period 01 April 2010 to February 2012, all the Board members, Group Executives and staff members of the SABC utilise the services of rental cars when travelling on SABC Business, the class of vehicles hired is governed by the SABC Travel Policy.

The amount mentioned in paragraph (1) (a) is the amount paid to the rental companies and the period is included as well

Reply received: March 2012

QUESTION NO: 305

DATE OF PUBLICATION: 24 February 2012

QUESTION PAPER NO: NW384E

DATE OF REPLY:

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

(1) With reference to advertising in post offices nationwide for or on behalf of a certain company (name furnished), what is the relationship between the SA Post Office (SAPO) and the said company;

(2) what (a) criteria and processes are used for the identification of private companies to be included in SAPO marketing and (b) are the public liability risks to SAPO on account of purported endorsement of quality of services and products supplied by each such company? NW384E

4. DISCUSSION

4.1 Reply

(1) The said company holds a Key Account with SAPO. The current services offered to the said company are the distribution of their statement mailings, distribution of their pamphlets and collection of monthly premiums on behalf of their policy holders through our retail branches. This is third party agreement similar to those of Municipalities, where SAPO collects money on behalf of a third party in accordance with the National Payment Systems Act of 1993.

(2) (a) As per our existing contract, SAPO considers any private and public marketing initiatives that the two parties will agree upon. The contract spells out the obligations of the two parties in terms of the consultation and approval process for such a request (i.e. marketing). This spells out the standard instructions and specifications including content of any material that will be in our SAPO branches.

(b) There are no risks regarding the quality of service, accounts, complaints disputes or any other related matter relating to transactions between SAPO and the said company. Any such liabilities will be incurred by the said company.

Reply received: March 2012

QUESTION NO: 181

DATE OF PUBLICATION: 17 February 2012

QUESTION PAPER NO: NW199E

DATE OF REPLY:

Mr. P van Dalen (DA) to ask the Minister of Communications:

(1) (a) What was the annual cost of copper cable theft from Telkom (i) in the (aa) 2006-07, (bb) 2007-08, (cc) 2008-09, (dd) 2009-10, (ee) 2010-11 financial years and (ii) during the period 1 April 2011 up to the latest specified date for which information is available with respect of (aa) loss, (bb) replacement costs and (cc) increased security measures;

(2) Whether the protection (a) protection of copper cables and (b) action to combat theft thereof is outsourced; if not, why not, in each case; if so, (i) why are these functions outsourced and (ii) what are the names of the companies that have been contracted;

(3) Whether the outsourcing of these services had a reducing impact on the number of reported thefts; if so, what are the relevant details; if not, why not;

(4) Whether service providers have been held responsible for their non-performance; if not, why not; if so, what steps were taken against the specified companies? NW199E

4.1 Reply

I am informed by Telkom that the annual cost of copper cable theft from Telkom (i)

in the (aa) 2006-07, (bb) 2007-08, (cc) 2008-09, (dd) 2009-10, (ee) 2010-11

financial years are as follows:

(1) (i) (aa) 2006-07, R 340 millions

(bb) 2007-07, R 332 millions

(cc) 2008-09, R 422, 35 millions

(dd) 2009-10, R 424, 39 millions

(ee) 2010-11, R382, 72 millions

(ii) (aa) Telkom has indicated that total losses would be inclusive of repair cost, rental and inbound and outbound revenue losses. It would also include damage to the Telkom brand as well as other losses related to copper cable theft. These losses cannot be accurately determined.

(bb) The replacement costs was R83, 29 million

(cc) Increase in security measures has cost R98, 13 million.

(2) (a) Up to end December 2010, the Monitoring and Surveillance of cable alarms was an outsourced function. This function has now been in sourced. This is in order to utilise and leverage a mix of emerging and new generation technologies, to achieve greater control of the costs as well as achieving tighter management of the dispatching of response teams.

(b) (i) Guarding and armed response are outsourced services.. We are currently testing the market through a comprehensive tender process with a view to appointing service providers for this function. In the interim Capital Air Reaction Services are providing this function. This function is outsourced due to the specialised nature of the service requirements and resource coverage. Telkom does not view armed response and guarding services as one of its core activities.

(ii) Three service providers namely, Royal Security, Sidas and Enlightened, were contracted until end August 2011.Information gathering and intelligence functions is not outsourced. This is in order to give greater control of the costs as well as being able to focus on the specific issues from a Telkom perspective.

(3) Prior to 1998 Telkom did its own guarding and response on a small scale but took the decision to outsource this when the theft volumes started to grow. The outsourcing of the guarding and response teams has definitely reduced impact on the number of reported thefts, but it is Telkom's experience that a strong demand management and supervisory role must be played by its own internal staff to ensure proper focus and co-ordination. Both the cable alarm surveillance and the guarding and response teams must be in place, properly co-ordinated and effective to achieve maximum benefit.

(4) All service providers are held responsible for performance as part of the basic conditions of their contracts. Financial penalties are applied if Service Level Agreements are not met. In addition to this, Service Providers are assessed on an ongoing basis and any shortcomings are immediately addressed.

Reply received: March 2012

QUESTION NO: 138

DATE OF PUBLICATION: 17 February 2012

QUESTION PAPER NO: NW 149E

DATE OF REPLY:

Mr. P van Dalen (DA) to ask the Minister of Communications:

(a) What are the details of her department's intervention in the SABC's appointment process to fill the position of the SABC Chief Operating Officer and (b) how does she intend to ensure that the SABC Board use transparent recruitment processes?

NW149E

4. DISCUSSION

4.1 Reply

(a) The appointment of the SABC Chief Operating Officer lies with the Board.

(b) I have communicated with the Board to follow the due process regarding the appointment of the SABC Chief Operating Officer.

Reply received: March 2012

QUESTION NO: 30

DATE OF PUBLICATION: 9 February 2012

QUESTION PAPER NO: 1

DATE OF REPLY:

Mrs P C Duncan (DA) to ask the Minister of Communications:

Whether any other persons have driven (a) her and (b) her Deputy Minister's official blue light fitted vehicles; if not, what is the position in this regard; if so, in each case, in respect of the (i) 2009-10 and (ii) 2010-11 financial years, (aa) what is each specified person's (aaa) name and (bbb) designation, (bb) which vehicle and (cc) why? NW4142E

REPLY

(a)& (b) Yes, the South African Police Services VIP Drivers/ Protectors allocated to

Members as stipulated in Chapter 5 of the Ministerial Handbook.

2012-06-30

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