Questions & Replies: Trade & Industry

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2014-03-03

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Reply received: November 2014

QUESTION 3004 FOR WRITTEN REPLY

3004. Mr C D Matsepe (DA) to ask the Minister of Trade and Industry:

Whether, with regard to the implementation of the Use of Official Language Policy Act, Act 12 of 2012 and since the reply of the Minister of Arts and Culture to question 990 on 6 June 2013, his department implemented the Act; if not, when will the Act be implemented; if so, which languages have been adopted as official languages of his department? NW3648E

Response:

the dti, in executing its mandate, has strived to disseminate publication material on its core offerings throughout the country. Various outreach activities have taken place thus far in the 2014/15 financial year. To this end, 45 publications have been produced in English.

In terms of translations, two publications have been disseminated in languages other than English:

1) 3 000 copies each of an anti-binge drinking leaflet were produced in Afrikaans, isiZulu, isiXhosa, Setswana and Sepedi.

2) 150 copies each of PAIA were produced in isiZulu and isiXhosa.

Advertising executives are also cognisant of the target audience during outreach activities. As such, regional radio and print space is purchased with the vernacular top of mind.

the dti is also disseminating information material on its various products and offerings on radio during October to December 2014. 13 episodes in each of the 11 official languages will flight during this time.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2970. Ms K de Kock (DA) to ask the Minister of Trade and Industry:

(1) Whether he intends to pay bonuses to staff in his department; if so, (a) what criteria has been used to award bonuses, (b) how many staff members will be receiving bonuses, (c) what total amount will be spent on staff bonuses and (d) was this amount budgeted for?

REPLY:

(a) Every employee performance is managed as per a signed annual performance agreement concluded between the Manager and the Employee. An employee is assessed at the end of the performance management cycle against the annual targets which are supported by key performance indicators. The bonuses paid to employees are in accordance with the dpsa Directives, Senior Management Service Handbook as well as the dti Performance Management Policy and Standard Operating Procedures. Only employees who have performed "Significantly above Expectations" and "Outstanding Performance" as per their scores on the performance appraisals, receive bonuses.

(b) The performance management process for 2014/15 is still underway and therefore a figure is not available at this stage.

(c) In terms of a dpsa directive, a department is required to set aside 1,5% of its Compensation and Employees budget for performance bonuses. Ministerial approval is required should the 1.5% be exceeded.

(d) Bonuses are annually budgeted for.

Reply received: November 2014

QUESTION 2944 FOR WRITTEN REPLY

2944. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

With reference to his response to question 2249 on 11 November 2014, (a) what total expenses were incurred in (i) travel and (ii) accommodation, (b) what are the full names of each individual who undertook these trips and (c) at what cost for (i) travel and (ii) accommodation respectively? NW3588E

Response

The information is still being collated and would need to be audited before it is released as part of the 2014/15 auditing process. Once the process is concluded, the dti will send the information directly to the Member.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2943. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) With reference to his response to question 2249 on 11 November 2014, (a) what are the reasons for a certain person's (name furnished) salary increasing from R2 500 000 to R3 505 234 in the 2013-14 financial year, (b) who approved this increase and (c) was he informed of this increase;

(2) (a) what were the reasons for the specified person being awarded bonuses and performance payments of R1 593 288, (b) who approved these payments and (c) was he informed of these payments;

(3) (a) what are the reasons for the payment of R637 315 which was a long-term bonus payment and (b) was he informed of this payment;

(4) what qualifications does the specified person hold;

(5) (a) what process was undertaken in terms of recruitment for a certain position (name and details furnished), (b) how many applications were received and (c) what were the full names of all applicants who were (i) interviewed and (ii) shortlisted for the position? NW3587E

Response

The NEF has put out a media statement that responds to points 1-3 (This is attached for ease of reference). Ms Philisiwe Mthethwa has obtained a MBA in Corporate Finance from the University of Sheffield, Sheffield, United Kingdom, as well as a B.A. in Economics from the University of the North, Pietersburg, South Africa.

the dti's recruitment process relating to CEO and board appointments are sent to Cabinet for approval following an advert being placed in the media and interviews being conducted. An external service provider was appointed to assist with the process and an interview panel was appointed and comprised of dti officials and external members. Five candidates were shortlisted to be interviewed, however, one candidate withdrew the application and four were interviewed. Ms Mthethwa was unanimously selected to the position of CEO: NEF.

See the link: www.pmg.org.za/files/rnw2943a.pdf

Reply received: November 2014

QUESTION 2827 FOR WRITTEN REPLY

2827. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) (a) How many manufacturing sites has he visited since 1 January 2014 and (b) in each case, what was the (i) date and (ii) name of each manufacturing site visited;

(2) (a) how many large manufacturing companies has he consulted with since 1 January 2014 and (b) in each case, what was the (i) name, (ii) date and (iii) number of times each large manufacturing company has been consulted?NW3468E

Response

Minister Davies visits manufacturing companies as part of his official duties and media releases for each visit are circulated to Members of Parliament.

Reply received: November 2014

QUESTION 2815 FOR WRITTEN REPLY

2815. Dr P J Groenewald (FF Plus) to ask the Minister of Trade and Industry:

(1) Whether he ordered an investigation into the actions of a certain person (names and details furnished) relating to allegations of fraud and maladministration in March or April 2012; if so, in each case, (a) was any evidence uncovered during the investigation that the person claimed fees which he was not authorised by the Minister or the Companies Act, Act 71 of 2008, to do, (b) was any evidence uncovered during the investigation that the said person unlawfully inflated the amounts in his claims and (c) was any evidence of maladministration uncovered during the investigation;

(2) was the person suspended during the period of investigation, if not, why not;

(3) were external investigators appointed to conduct the investigation; if so, what were the recommendations made to him by the external investigators;

(4) whether he will make a copy of the aforesaid report with the recommendations compiled by the external investigators available to him; if not, why not; if so, when? NW3456E

Response

A forensic investigation was instituted to look into issues of alleged fraud and maladministration. This investigation was conducted by Grant Thornton and the said person was not suspended during this investigation.

There was no evidence found that the person claimed fees which he was not authorized to do by the Minister or in terms of the Companies Act, Act 71 of 2008.

There was also no evidence found that the said person unlawfully inflated claim amounts.

The recommendation from this report indicated that the Companies Tribunal should strengthen the internal control environment in relation to procurement, payments of board members fees and recruitment policies.

The forensic report is confidential and may be requested through a PAIA request.

Reply received: November 2014

QUESTION 2813 FOR WRITTEN REPLY

2813. Dr C P Mulder (FF Plus) to ask the Minister of Trade and Industry:†

(1) Whether there are any scientific studies which offer proof that the policy of broad-based black economic empowerment (BBBEE) (a) encourages and (b) ensures economic growth and job creation; if not, what forms the basis of the Government's assertion that BBBEE has encouraged or brought on economic growth and job creation; if so, what are the relevant details;

(2) (a) what impact does he estimate the Government's BBEEE policy is likely to have on future (i) economic growth and (ii) job creation and (b) what forms the basis of the Government's figures;

(3) (a) how many black persons have been developed and uplifted from poverty by the specified policy and (b) what forms the basis of the Government's figures;

(4) (a) how many black persons does the Government estimate will in the future be developed and uplifted from poverty by this policy and (b) what forms the basis of the Government's figures NW3449E

REPLY:

1&2) The aim of the B-BBEE policy is not limited to economic growth and job creation but also contribute toward socio economic transformation of our society. It recognises and takes into account that over many years the South African economy was created to benefit only a few minority. The Black majority were excluded from the mainstream economy and they continue to operate mainly in the informal economy with limited access to resources and marketing networks. There was and still a necessity post- 1994 to create an integrated economy which benefit all South Africans by policies such as the B-BBEE.

When B-BBEE was conceptualised and developed benchmarks were made with similar policies elsewhere in the world. We also recognised that empowerment in South Africa in not new because we have had Afrikaner empowerment which was aimed to strengthen participation of Afrikaner in the economy.

The two main studies that we have commissioned so far is the 2008 baseline study as well as a follow up study in 2012/2013. The first study revealed that overall the country was at level 8 which is non-compliant. In the second study the findings indicated that the country has progressed with the implementation of B-BBEE to a certain degree. The overall picture indicates that the country is at level 4 of B-BBEE compliant. The make-up of such level 4 is that Exempted Micro Enterprise (enterprises with a turnover of less than R 5 m per annum) and Qualifying Small Enterprises (enterprises with a turnover of between R 5 m and R35 m per annum) are at level 3, and Large Enterprises (enterprise with turnover that is more than R35 m per annum) are at level 6. The large enterprises, which are meant to drive transformation in the economy, are still lagging behind, as they are still battling to embrace and implement meaningful transformation.

3) Although the studies show some slow progress in terms of transformation we have not being able to analyse the spin-offs on economic growth and job creation. We are in the process of appointing a commissioner who will have the capacity to periodically provide such data.

4) One of the elements of the B-BBEE policy is socio economic development which encourages enterprises to invest in poor households and communities (i.e 1% of their annual profits). We believe that this element if implemented properly will contribute towards poverty alleviation in South Africa and thereby complement other policies on poverty alleviation such as government provisions of grants to poor households. The National Planning Commission conducted a survey which looked at poverty levels for the period 2008- 2012 and which shows a decrease in poverty levels in South Africa. In future we should be able through the commission to quantify the estimated amount that can be available for socio economic development initiatives in the economy on an annual basis and the impact thereof on poverty eradication.

Reply received: November 2014

QUESTION 2771 FOR WRITTEN REPLY

2771. Mr A G Whitfield (DA) to ask the Minister of Trade and Industry:

(1) Whether he received an invitation to the wedding of Vega Gupta and Aakash Jahajgarhia; if so,

(2) whether he attended any of the wedding festivities between 30 April and 3 May 2013; if so,

(3) whether he stayed overnight at the venue; if so, (a) what accommodation did he use, (b) who paid for the said accommodation, (c) what mode of transport did he use to attend the wedding festivities and (d) who paid for the travel costs? NW3423E

Reply

(1) (2) and (3). Yes, the Minister stayed for one evening in accommodation

provided for by the hosts and travelled by road to reach the venue.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2730. Mr A P van der Westhuizen (DA) to ask the Minister of Trade and Industry:

Did (a) his department and/or (b) any entities reporting to it owe money to any Gauteng municipalities at the end of the 2013-14 financial year; if so, in respect of each specified municipality (i) what is the name of the municipality, (ii) what was the total amount owed, (iii) what was the nature of the debt, (iv) for how long has the debt been outstanding and (v) what plans are in place to recover the debt owed to the municipality by (aa) his department and/or (bb) any entities reporting to it?

Entities

(b)

b (i)

b (ii)

b (iii)

b (iv)

b (v)

b(aa)

b(bb)

Companies and Intellectual Property Commission (CIPC)

The Companies and Intellectual Property Commission did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

Export Credit Insurance Corporation (ECIC)

The Export Credit Insurance Corporation did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Credit Regulator (NCR)

The National Credit Regulator did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Consumer Tribunal (NCT)

The National Consumer Tribunal did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Empowerment Fund (NEF)

The National Empowerment Fund did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Gambling Board (NGB)

The National Gambling Board did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Lotteries Board (NLB)

The National lotteries Board did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Metrology Institute of South Africa (NMISA)

The National Metrology Institute of South Africa did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Regulator For Compulsory Specifications (NRCS)

The National Regulator for Compulsory Specifications did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

South African Bureau of Standards (SABS)

The South African Bureau of Standards did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

South African National Accreditation System (SANAS)

The South African National Accreditation System did not owe any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

National Consumer Commission (NCC)

The National Consumer Commission did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

Companies Tribunal (CT)

The Companies Tribunal did not owe money to any Gauteng municipality during the period in question.

None

None

None

None

None

Not applicable

None

The Department of Trade and Industry, through the Marketing Communication and Stakeholder Engagement Chief Directorate creates and promotes awareness of the dti's products and services to different publics through effective platforms and channels of communication to convey its messages efficiently and effectively. The "taking the dti to the people" campaign and the Open Day are examples of such platforms for information dissemination.

For the Open Day event and the public participation event, where the general public and various stakeholders were in attendance, it was a requirement that there be emergency ambulance services as per the Safety and Sports and Recreational Events Act 2 of 2010. As per above prescripts, the department thus sought the ambulance services of the Tshwane Municipality for emergency services.

Notice of the outstanding payment of R10 702. 00 was received by an official that is no longer in the Marketing Chief Directorate on 08 July 2014. The invoice for the Open Day was finally reached Marketing Communication on 05 August 2014 and payment of R7 022.40 was made on 30 September 2014 to the Tshwane Municipality. For the Outreach event, Tshwane Metro is yet to provide supporting documents to enable the department to process the payment due.

Reply received: November 2014

QUESTION 2713 FOR WRITTEN REPLY

2713. Mr. G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) (a) How many of the Industrial Policy Action Plan (IPAP) targets have been met to date and (b) what are the details of each target met;

(2) (a) how many of the IPAP targets have not been met to date and (b) in each case (i) what are the relevant details and (ii) when is it expected the targets will be met?NW3361E

Response:

1.(a) The Industrial Policy Action Plan (IPAP) 2014/15 sets out time bound Key Action Programmes (KAPs) in 7 transversal areas and 13 sectors. The implementation of IPAP is subject to rigorous monitoring and evaluation and an electronic dashboard matrix is used as a tool to track implementation.

There are 71 quarterly milestones that fall within the first half of the financial year and to date 58 of these milestones have been met on time to required standard.

(b) Since provision of detailed reports for each KAP, would exceed what is possible in a Question for Written Reply, the member is referred to the detailed narrative reports provided to the Parliamentary Portfolio Committee or to request further detailed information on one or more KAP's.

2.(a) (i) Thirteen of the 71 quarterly milestones are behind schedule due to a variety of challenges. These range from funding; the requirements of further stakeholder engagement and bottlenecks with respect to intergovernmental coordination and integration.

2. (b) (i) The following project targets have not been met because of funding constraints :

• The Competitiveness Improvement Programme (CIP) of the Clothing, Textiles Competitive Programme, where there is an oversubscription of applications and therefore funding constraints.

• Project Ketlaphela where efforts to secure a global investment and operating partner have taken longer than expected.

• The Software Development Process Improvement Programme in co-operation with the University of the Witwatersrand, where a funding bottleneck is currently being addressed.

The following project targets have not been met because of ongoing efforts to secure stakeholder consensus:

• The development of a toolmaker trade test. The process is managed by the National Artisan Moderation Body

• Phase 4 Monyetla Readiness Programme. The Department of Trade and Industry is in the process of concluding a Service Level Agreement with the Service Provider

• The launch of KwaZulu-Natal Tooling Centre.

The following projects targets have not been met because of delays in intra-governmental coordination and stakeholder consultation:

· The Special Economic Zones (SEZ) regulation framework and guidelines

· The finalisation of the biofuels regulatory and incentive framework

· The finalisation of the Additive Manufacturing Technology road map

· The establishment of an Aerospace and Defence Export Council.

· The Defence Industry Participation Policy Review.

The following research studies have not been met principally because the scope of the research required, exceeded initial projections.

· Study to identify constraints blocking commercialization of prototypes

· Study on downstream oil and gas localization opportunities.

It is envisaged that all of the above delayed milestones will be met within a single quarter delay, although achieving targeted outcomes, on time to required standard is conducted in a complex environment and unforeseen delays can be experienced. For example Project Ketlaphele is dependent upon securing an international investor and operating partner.

Reply received: November 2014

QUESTION 2706 FOR WRITTEN REPLY

2706. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(a) When will he re-introduce the Licensing of Businesses Bill in Parliament, (b) will he table the objections he received from the Portfolio Committee on Trade and Industry and (c) what outstanding concerns does he have with regard to the Bill?NW335E

Reply:

the dti is still engaging following public comments on the above-mentioned Bill. As reflected on the 2014/2015 legislative programme of the dti, this Bill will be introduced into Parliament in 2015.

Reply received: November 2014

QUESTION 2593 FOR WRITTEN REPLY

2593. Dr M J Figg (DA) to ask the Minister of Trade and Industry:

What amount has his department spent on promotional magazines in the (a) 2011-12, (b) 2012-13 and (c) 2013-14 financial years? NW3231E

Response:

In pursuit of effective information dissemination to create awareness and educate various stakeholders and the general public on programmes and services offered by the department, various publications are developed, produced and distributed. Such print materials amongst others entail brochures, annual reports, and promotional magazines which are produced based on needs as well as scheduled reporting cycles.

The expenditure on promotional magazines over the last three years is as follows:

FINANCIAL YEAR

EXPENDITURE

2011/12

R7 952 019.30

2012/13

R6 534 355.95

2013/14

R8 129 976.99

Reply received: November 2014

QUESTION: 2449

Ms A Steyn (DA) to ask the Minister of Trade and Industry:

How many work days has his department lost to (a) sick leave and (b) strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years?

RESPONSE:

Financial Year

(a) Sick leave days

No. of employees who took sick leave

Average sick leave days per employee

(b) Strike action

(i) 2011/12

6,787

1 011

6.7

0

(ii) 2012/13

7,549

1 159

6.5

0

(iii) 2013/14

9,247

1 279

7.2

0

Reply received: November 2014

QUESTION 2416 FOR WRITTEN REPLY

2416. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(a) What was the total remuneration of (i) board members, (ii) nonexecutive directors and (iii) executive directors of each entity reporting to him in the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years and (b) how many times did each board meet in the specified financial years?NW3008E

Reply:

All details relating to the remuneration of board members, non-executive directors, executive directors of entities, and their attendance to meetings are reflected in the Annual Reports tabled in Parliament.

Reply received: November 2014

QUESTION 2345 FOR WRITTEN REPLY

2345. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Since her appointment to the Council in 2009, (a) how many of the Broad-Based Black Economic Empowerment Council meetings has Ms Ellen Zandile Tshabalala attended and (b) what has been the said person's total remuneration as a member of the Council? NW2931E

Reply:

(a) Ms Tshabalala was appointed in 2009 in terms of section 6 of the Broad-Based Black Economic Empowerment Act, Act no. 53 of 2003. The Presidential BEE Advisory Council (the "Council") had seven general meetings since inception until the 21st October 2014, and our attendance register reveals that she attended 100% of all the meetings. Furthermore, the Council had four subcommittees and Ms Tshabalala served in them. Her subcommittees had a total of 40 meetings, combination of the subcommittee and convener meetings, during the 5 year period under review.

(b) Section 8 of the BEE Act of 2003 reads as follows: "Council members will not be remunerated for their services, but will be reimbursed for expenses incurred by them in carrying out their duties, as determined by the Minister, with the concurrence of the Minister of Finance."

and therefore based on the above and facts Ms Tshabalala was not remunerated for her services, efforts, and contribution for the 5 year period she served as a member of the Council.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

DUE DATE: 11 NOVEMBER 2014

2299. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(4) (a) what are the details of the financial support that his department has given to the Black Business Council (i) in the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years and (ii) during the period 1 April 2014 up to the latest specified date for which information is available, (b) for what purpose was this financial support intended, (c) how is accountability for the proper expenditure of this financial support ensured and (d) is this expenditure audited; NW2797E

Reply:

4) (a)(i)(aa) For the 2011 -12 financial period, the Department did not provide financial support to Black Business Council (BBC).

(bb) For the 2012 – 13 financial period, the Department facilitated financial support to the value of R 1.5 million for the BBC from donor funds.

(cc) For the 2013 – 14 financial period, the Department facilitated financial support to the value of R 2 million for the BBC from donor funds.

(b) The financial support to the BBC was intended to facilitate amongst others the below listed:

· Conduct Economic Research Studies;

· Economic Development debates;

· Capacity Building;

· Skill Development; and

· To play a critical role in representing business on every policy making platform in South Africa

(c) the dti, National Empowerment Fund (NEF), and BBC entered into a MoA to specify the purpose and reporting required for the disbursement of funds for support.

(d) Funds disbursed to the BBC have been audited for the 2012 – 13. The funds disbursed for the 2013 – 14 financial period will be audited in 2015.

Reply received: November 2014

QUESTION FOR WRITTEN REPLY

2298. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(a) What are the 18 project applications currently being considered under the Black Industrialist Programme, (b) who are the (i) owners and/or (ii) shareholders in these projects and (c) what process was followed in identifying these projects? NW2792E

Reply:

(a) The total number of applications received for the Black Industrialist (BI) programme has increased to 26 since the last Presidential B-BBEE Advisory Council on the 21st October 2014. The applications received are from different sectors of the economy ranging from manufacturing, engineering, agriculture, mining, beneficiation, and financial services. Agriculture and manufacturing sectors are the dominant applications received to date.

(b) The documentation of these projects reveals that the owners/shareholders of these projects are ordinary South Africans from across the country. The owners/shareholders of these projects are ordinary Black entrepreneurs and SMMEs.

Reply received: November 2014

QUESTION 2249 FOR WRITTEN REPLY

2249. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) (a) What progress has been made by his department on the rationalisation of boards of entities reporting to him, (b) what is the exact meaning of rationalisation of boards of entities reporting to him and (c) what alternatives to boards of entities reporting to him is he considering;

(2) with regard to funds allocated to entities reporting to him, what allowance is made for (a) fees relating to the board, (b)(i) travelling and (ii) accommodation of board members and (c) salaries for chief executive officers? NW2795E

(1) (a) In respect of the following entities:- National Credit Regulator, National Gambling Board and National Regulator for Compulsory Specifications

Legislation has been proposed / amended to provide for the removal of Board and replacing them with the Commissioners or Chief Executive Officers.

National Credit Regulator

The National Credit Act has been amended to provide for the removal of the Board and replacing them with the Chief Executive Officers.

National Regulator for Compulsory Specifications

The National Regulation Specification Act has been amended in order to achieve the same.

National Gambling Board

The National Gambling Act will be amended in order to achieve the same.

The rationale for removing the Board s is that they were not adding value to fast track service delivery and financial accountability. Commissioner or Chief Executive Officers will report directly to the Minister without compromising the provision of the Public Finance Management Act of 1999 and service delivery.

The National Lotteries Board

The National Lotteries Act has been amended to provide for the establishment of the Commission. The Board will ensure that the Commission performs its function efficiently and effectively in compliance with the Act. The Commissioner will be accountable to the Board on financial and administrative functions. The Board will still be accountable to the Minister in terms of the Public Finance Management Act of 1999 and service delivery issues will not be compromised. The Board will administer the National Lotteries Distribution Trust Fund as it is a trustee in terms of the Act.

(b) In respect of the following entities: National Credit Regulator, National Regulator for Compulsory Specifications and National Gambling Board

Rationalization means the removal of boards and replacing them with Commissioners or Chief Executive Officers.

A study was commissioned and the final analysis came up with the recommendation that Commissioners or Chief Executive Officers be appointed as heads of Entities reporting directly to the Minister to ensure:-

(i) Financial accountability in terms of the PFMA

(ii) Service Delivery

(iii) Speedy resolution of issues

In relation to the National Lotteries Board

(i) Establishment of the Commission that will be accountable to the Board.

(ii) Board will oversee the operations of the Commission.

(iii) Board will still be accountable to the Minister in terms of the Public Finance Management Act of 1999.

(c) Commissioners or Chief Executive Officers reporting directly to the Minister without compromising the provisions of PFMA and service

delivery standards.

(2) With regard to funds allocated to entities reporting to him, what allowance is made for (a) fees relating to the board, (b)(i) travelling and (ii) accommodation of board members and (c) salaries for chief executive officers?

2(a)

Companies and Intellectual Property Commission (CIPC)

Not applicable

Export Credit Insurance Corporation (ECIC)

R1 494 532 for the 2014/15 financial year

National Credit Regulator (NCR)

Not applicable

National Consumer Tribunal (NCT)

Not applicable

National Empowerment Fund (NEF)

R2 500 000 for the 2014/15 financial year

National Gambling Board (NGB)

The NGB has revised expenditure items in order to ensure that there is sufficient cash available to fund such expenditures and the revised budget allocation is R430 920 for the 2014/15 financial year.

National Lotteries Board (NLB)

R5 952 000 for the 2014/15 financial year

National Metrology Institute of South Africa (NMISA)

R208 100.64 for the 2014/15 financial year

National Regulator For Compulsory Specifications (NRCS)

Not applicable

South African Bureau of Standards (SABS)

R777 000 for the 2014/15 financial year

South African National Accreditation System (SANAS)

R262 080 for the 2014/15 financial year

National Consumer Commission (NCC)

Not applicable

Companies Tribunal (CT)

Not applicable

2(b)(i)

2(b)(ii)

Companies and Intellectual Property Commission (CIPC)

Not applicable

Not applicable

Export Credit Insurance Corporation (ECIC)

R457 109 (includes travel and accommodation)

National Credit Regulator (NCR)

Not applicable

Not applicable

National Consumer Tribunal (NCT)

Not applicable

Not applicable

National Empowerment Fund (NEF)

R1 200 000 (includes travel and accommodation)

National Gambling Board (NGB)

R376 344

R116 583

National Lotteries Board (NLB)

R2 020 000 (includes travel and accommodation)

National Metrology Institute of South Africa (NMISA)

R168 999.96 (includes travel and accommodation)

National Regulator For Compulsory Specifications (NRCS)

Not applicable

Not applicable

South African Bureau of Standards (SABS)

R87 000 (includes travel and accommodation)

South African National Accreditation System (SANAS)

R174 696 (includes travel and accommodation)

National Consumer Commission (NCC)

Not applicable

Not applicable

Companies Tribunal (CT)

Not applicable

Not applicable

2(c)

Companies and Intellectual Property Commission (CIPC)

The salary for the Commissioner is R1 675 087 per annum.

Export Credit Insurance Corporation (ECIC)

The salary for the CEO is R2 893 000 per annum.

National Credit Regulator (NCR)

The salary for the CEO is R2 556 864 per annum.

National Consumer Tribunal (NCT)

The salary for the Executive Chairperson is R1 675 087.08 per annum.

National Empowerment Fund (NEF)

The salary for the CEO is R3 505 234 per annum.

National Gambling Board (NGB)

The revised salary for the CEO is R 960 299.00 per annum.

National Lotteries Board (NLB)

The salary for the CEO is R2 159 000 per annum.

National Metrology Institute of South Africa (NMISA)

The salary for the CEO is R1 574 102 per annum.

National Regulator For Compulsory Specifications (NRCS)

The salary for the CEO is R1 696 000 per annum.

South African Bureau of Standards (SABS)

The salary for the CEO is R2 293 789 per annum.

South African National Accreditation System (SANAS)

The salary for the CEO is R1 661 846.09 per annum.

National Consumer Commission (NCC)

The salary for the Commissioner R1 570 254 per annum.

Companies Tribunal (CT)

The salary for the Full time tribunal member is R1 353 732 per annum.

Reply received: November 2014

Question 2165

Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Whether his department has a policy on the regulation versus the prohibition of remote gambling; if not, why not; if so, which approach does the policy support? NW2619E

Reply:

There is no policy to regulate remote gambling in the country. However, section 11 of the National Gambling Act, 07 of 2004 (the Act) prohibits Interactive Gambling until it is authorised by an Act of Parliament. Interactive Gambling has been introduced by the National Gambling Amendment Act, 2008 (the Amendment Act).

This Amendment Act has not yet come into legal force. Sections 7 and 8 respectively makes it an offence to gamble on unlicensed gambling activities and making available any form of unlawful gambling activities. Sections 82 and 83 impose penalties for contravention of sections 7 and 8.

Parliament made inputs on the Gambling Review Commission Report (GRC) and recommended that until such time that the dti has developed an approved policy that legalises online gambling, this activity will remain illegal.

On 28 October 2014, the dti officials tabled the gambling policy approach which proposes that online gambling should remain outlawed and reasons were advanced. It should be noted that the policy approach has not yet been adopted by the Minister and Cabinet.

Reply received: November 2014

Question 2164

Mr G. G. Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Has his department undertaken any study on the impact of the imposition of export taxes on (a) the balance of trade, (b) exchange rate and (c) employment in the import and export services sector; if not, why not; if so, (i) what are the relevant details and (ii) will his department make this study available?

RESPONSE

No, the Department has not undertaken any study on the impact of the imposition of export taxes on: (a) the balance of trade, (b) exchange rate, and (c) employment in the import and export services sector. Under the Constitution, only the Minister of Finance is empowered to introduce taxation proposals for approval by Parliament. the dti is, however responsible, along with sister departments, for the development and implementation of programmes to promote beneficiation and in this context is engaged in evaluating the extent to which well designed export taxes may or may not be an appropriate tool in this regard.

Reply received: November 2014

Question 2145

Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Has his department undertaken any economic modelling on the effect of the proposed policy of securing preferential local pricing of raw materials on (a) employment in the mining sector, (b) investment in the mining sector and (c) the balance of trade; if not, why not; if so, (i) what are the relevant details and (ii) will this study be made available? NW2617E

Response:

Feedstock costs account for a significant proportion of input costs for the manufacturing sector and hence constitute a key driver of the competitiveness and future growth prospects of the downstream and upstream (mining input) sectors.

the dti has undertaken extensive engagements with industry in each of the key mineral value chains: iron-ore and steel (automotive and construction), polymers (plastics industries), platinum group metals (autocatalyst and fuel cell industries) and titanium, where pricing of minerals was identified as a critical constraint to growth and investment.

The use of industrial policy support measures to secure lower input costs for value-adding, labour intensive downstream manufacturing industries is widely practiced in other economies. Preferential pricing for local beneficiation must be based on a set of principles, including producers being fairly treated and a reasonable return on investment.

This has been demonstrated with the Kumba-AMSA cost plus 3% iron-ore supply arrangement (2001-2010) where during the same period Kumba increased production, employment and investment in new mines.

Hence, with all other factors of production taken into account:

(a) Employment in the mining industry should not be impacted;

(b) Investment and competitiveness of the mining sector can improve based on increased levels of demand as new beneficiation industries establish manufacturing industries in SA to benefit from the local price advantage; and

(c) The balance of trade will be positively impacted by the increase in production and export of value added products as opposed to primary minerals and metals.

i) Economic modeling has been carried out for the introduction of pricing measures in the scrap metal market as well as quantitative analysis of the impact of pricing on the iron-ore/steel, platinum group metals and polymers value chains. Further 'deep-dive' quantitative work is planned in collaboration with the Industrial Development Corporation.

ii) Engagement with the private sector is routinely undertaken in relation to industrial policy research and modeling. This work is treated as internal to government, including for reason of the fact that it can provide an unfair advantage to individual private sector companies.

The impact of not pursuing a preferential price for local beneficiation will undermine SA's re-industrialisation effort towards a dynamic industrial economy which secures sustainable development, radical economic transformation and job creation. This is taking place against the background of the fact that resources are being depleted and the competitive advantages the country used to enjoy are no longer available.

Reply received: November 2014

QUESTION 2131FOR WRITTEN REPLY

2131. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(a) What was the (i) date and (ii) value of each of the equity allocations which were made to the National Empowerment Fund during the period 1 January 2000 up to the latest specified date for which information is available, (b) which state-owned entity did each of the equity allocations come from and (c) what is the value of each equity allocation as at today's market rate? NW2602E

The following is a table of share allocations as outlined in Cabinet Memorandum No. 32 of 29 November 2000, which was adopted on 6 December 2000 - SOCE equity allocations nominated for transfer to NEF for it to broaden empowerment of State Owned Commercial Enterprise (SOCE) allocations through individual & collective share ownership schemes.

The NEF has since received 4 allocations as indicated below:

Asset

Shareholding %

Status

Date of Allocation

Value at date of allocation

Latest Value

1

MTN Group

1.5

Received by NEF

2003 Financial Year

R171 million

R2.4 billion as at 30 Sep 2014.

2

Telkom

5

Not received

3

ACSA

10

Not received

4

Connex travel

10

Received by NEF

2008 Financial Year

R3 million

NEF's value is R6.5 million based on NAV of R64.7 million reported as at 30 September 2014.

5

Uthingo

5

Received by NEF

Replaced by Gidani shares

6

SAFCOL

10

Not received

7

Gidani

10

Received by NEF

2001 Financial Year

R100

R103 238, based on NAV reported as at 31 March 2014

Reply received: November 2014

QUESTION 2310 FOR WRITTEN REPLY

2130. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) With regard to the premises that the National Gambling Board (NGB) is renting in Pretoria, (a) how many square metres does the NGB occupy, (b) what monthly rate per square metre does the NGB pay for this premises, (c) what is the full name of the (i) lessor and (ii) owner of the premises, (d) what are the full names of all individuals who negotiated the lease on behalf of the NGB, (e) what is the (i) signature date, (ii) commencement date, (iii) term and (iv) expiry date of the lease agreement and (f) what are the full names of all individuals who signed the lease for his department;

(2) were the provisions of the Public Finance Management Act, Act 1 of 1999, complied with; if not, what provisions of the specified Act were not complied with;

(3) are any investigations being conducted into the specified lease; if so, (a) what are the terms of reference of such investigations and (b) when will they be completed;

(4) whether he will make a copy of the lease agreement available; if not, why not; if

Response:

(1)

(a) 1, 800 square metres.

(b) The monthly rental paid per square meter (inclusive of VAT) is as follows:

Period:

Rent per square meter:

2012/13

R169.61

2013/14

R186.57

2014/15

R205.22

2015/16

R225.75

2016/17

R248.32

2017/18

R273.15

2018/19

R300.47

2019/20

R330.52

2020/21

R363.57

2021/22

R399.92

NB. This amount excludes electricity charges which vary from month to month.

(c)

(i) Faerie Glen Waterpark (Proprietary) Limited.

(ii) Faerie Glen Waterpark (Proprietary) Limited.

(d) We are not aware of any negotiations that may have taken place.

(e)

(i) The signature date on the lease contract is 17 September 2012.

(ii) The commencement date for the lease is 01 December 2012.

(iii) The term of the lease is 9 years and 11 months.

(iv) The expiry date of the lease is 31 October 2022.

(f) On behalf of the NGB was the then CEO, Baby Penelope Tyawa.

(2) This forms part of the forensic investigation that is currently underway.

(3) This forms part of the forensic investigation that is currently underway.

(4) Kindly find attached, lease agreement on this link.

www.pmg.org.za/files/rnw2130a.pdf

Reply received: November 2014

QUESTION 2123 FOR WRITTEN REPLY

2123. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

What (a) amount has been spent on his department's new radio outreach programme and (b) amount is budgeted to be spent on this programme over the next 12 months? NW2593E

The radio programme on thirteen (13) South African Broadcasting Corporation (SABC) public service stations is informed by the research conducted by the Department of Trade and Industry (the dti) in conjunction with Government Communication and Information System (GCIS) in 2013, to determine the public's awareness and preferences for media platforms regarding promotion of the dti's offerings and services. The research found that many people particularly those in disadvantaged areas needed to know more about the dti and its agencies' programmes via television, print media and radio. The programme content is designed for the dti, the Department of Small Business Development and the relevant agencies reporting to these departments.

The public broadcaster, commercial radio stations and community media have been identified as appropriate media platforms to reach the communities and create awareness regarding a range of programmes including consumer protection, liquor licensing, business registration, incentives and credit regulations.

A total amount of R5, 072 400.00 was budgeted and approved for the 2013-14 and 2014-15 financial years to implement the programme for the dti and its agencies, as well as the Department of Small Business Development. R3 million has been paid to the SABC to date. The programme will involve interactive Outside Broadcast sessions in provinces, where programme managers, stakeholders such as private banks and other organisations servicing business will explain and solve problems experienced by entrepreneurs onsite.

Reply received: November 2014

Question 2122

Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) Has the National Lottery ever provided funding to certain persons and/or organisations (names and details furnished); if so, what are the details of such funding;

(2) has (a) his department and/or (b) the Industrial Development Corporation ever provided any (i) grant or grants and/or (ii) incentive funding to (aa) a certain company (name furnished) and/or (bb) any other company in which a certain person (name furnished) is a beneficiary; if so, what are the relevant details of all such (aaa) grants and/or (bbb) incentive funding? NW2592E

Response from the National Lotteries Board:

(1) No, the National Lottery Board has not provided funding to Izigi Zentuthuko

(registered on 04 July 2014 as NPO 138-929).

(a) No, according to the National Lotteries Board records, no funding was provided to an organization with the name Public Members Unit Team.

(b) The National Lotteries Board does not fund individuals; and as a result, no funding was provided to him.

(c) The National Lotteries Board systems are not configured to filter information to the detail as per the request especially if there is no indication that Mr Mchunu or his organization applied for funding.

(2) (a) The Department has not supported Dr VumVum Media or any company in

which Mr Vumelani Mchunu is a beneficiary, with any grant or incentive

funding.

Reply received: November 2014

QUESTION 2059 FOR WRITTEN REPLY

2059. Mr W Horn (DA) to ask the Minister of Trade and Industry:

(a) How many copies of his department's annual report for the (i) 2012-13 and (ii) 2013-14 financial years were produced and (b)(i) at what cost were these reports produced and (ii) to whom were these reports circulated? NW2526E

The annual report presents the Department of Trade and Industry with an opportunity to disseminate information on its objectives and the extent to which they have been achieved in the reporting period. It is also used to account to its stakeholders on various key milestones with a view to provide a context for the seamless planning for the years that follow.

The department's management of the annual report over the two financial years can be summarised as below:

DEPARTMENT OF TRADE AND INDUSTRY ANNUAL REPORT

Year

Total Produced

Cost

Distribution

Surplus

2012 - 2013

500 copies

200 CDs

R399,090.95

(Incl VAT)

· SMS members

· COTII chairpersons

· COTII CEOs

· Key stakeholders e.g. the Auditor General and National Treasury.

Available for relevant walk-in clients

2013 - 2014

500

R309 655.00

(Excl VAT)

· SMS members

· COTII chairpersons

· COTII CEOs

· Key stakeholders e.g. the Auditor General and National Treasury.

Available for relevant walk-in clients

Reply received: November 2014

Question 2028

Ms T P Mantashe (ANC) to ask the Minister of Trade and Industry:

In view of President Jacob G Zuma having signed the National Credit Amendment Act, Act 19 of 2014, in May 2014,

(a) when will the affordability regulations be published and

(b) how will the new amendments aid in the collection of prescribed debt by collection agencies? NO2494E

Response:

(a) Draft final affordability assessment regulations will submitted to the Minister by 31 October 2014 with recommendations for the Minister to publish the final regulations.

(b) Prescribed debt will no longer be permitted to be sold or collected.

Reply received: November 2014

QUESTION 1961 FOR WRITTEN REPLY

1961. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(a)? What overseas trips have members of the National Gambling Board undertaken in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years and (b) for each of the trips respectively, (i) what were the details of the trip, (ii) what was the size of the delegation and (iii) what were the associated costs

ANSWERS

See the answers on the link: http://www.pmg.org.za/rnw1961-141022answer

Reply received: October 2014

QUESTIONS 1853 FOR WRITTEN REPLY

1853 Mr GG Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) Whether, in view of his reply to question 988 on 26 August 2014 and with specific reference to the location of Samsung television production facility at the Dube Trade Port in Durban, KwaZulu-Natal, each of the prescribed processes in terms of section 37 of the Special Economic Zones Act 16 of 2014, was followed, if not, why not; if so, what are the relevant details of the process;

(2) Whether, with reference to each prescribed process set out in section 38 of the Act, the Board considered (a) the extent to which the applicant's business achieves the purpose of special economic zones as set out in the Act and (b) implications of the application for local manufacturers of the same product;

(3) Whether, with reference to each prescribed process set out in section 38 of the Act, the Board consulted with affected local manufacturers before agreeing to the production facility; if not, why not; if so, what are the relevant details?

REPLY

(1) The Special Economic Zones Act 16 of 2014, though accented to by the President, is not yet operational, and therefore none of the provisions of the Act are in force at the moment. No Special Economic Zone has as yet been designated in terms of the provisions of the Act. In addition, Section 37 of the Act deals with transfer of operator permits from one entity to another. Samsung had never applied for an operator permit in relation to the Dube Trade Port.

(2) Special economic zones are an important tool of our industrial policy and the dti is confident that the SEZ Programme will, amongst others, contribute to the attraction of foreign direct investment, and give the country a platform on which strategic electronics capabilities can be built. There is therefore no doubt, that the location of Samsung in the Dube Trade Port is an opportunity for the country to develop some capabilities within the electronics value chains. In this regard, the dti will work together with the Dube TradePort and the electronics industry to develop an electronics cluster at the DTP IDZ and in other locations in the country.

(3) Though the Act is not yet in force, and as I have indicated in my response to Parliamentary Question 988; the dti has engaged Samsung on extending the local manufacturers contracts and these discussions are on-going. In addition, the dti will continue to engage local companies to develop a long term strategy for the electronics industry.

Reply received: October 2014

QUESTION 1790 FOR WRITTEN REPLY

1790. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

Has a certain person (CEO NCR) declared any private business interests as required by Public Service Regulations; if not, (a) why not and (b) what action he intends to take in this regard; if so, what are the relevant details?

Response:

The National Credit Regulator (NCR) is not governed by the Public Service Act and its Regulations therefore the employees of the NCR can only submit disclosures in accordance with its policy. However the entity does not have a policy on financial disclosures hence it has committed to develop such.Meanwhile the current Chief Executive Officer (CEO),Ms Nomsa Motshegare had during September 2010,whilst she was employed as the Chief Operating Officer of the NCRobtained approval from the former CEO, Mr Gabriel Davel as she was invited to join the Board of Directors of Genesis Steel (Pty) Ltd and Sentinel Steel Services Centre (Pty) Ltd in August 2010.

Reply received: September 2014

QUESTION 1733 FOR WRITTEN REPLY

1733. Adv A de W Alberts (FF Plus) to ask the Minister of Trade and Industry:

(1) How many (a) current Government officials, (b) retired Government officials and (c) retired officials of Government institutions who reported to Ministers in terms of the Public Finance Management Act, Act 1 of 1999, have obtained financial benefits by way of black economic empowerment transactions;

(2) (a) what positions did the specified individuals hold, (b) what was the nature of these benefits and (c) when were these benefits obtained?NW2097E

Alldti officials need to obtain approval from the Accounting Officer to do any remunerative work outside the public service. Officials submit these requests to the Ethcis Committee who review these requests and will conduct interviews with officials before making a recommendation to the Accounting Officer. In addition, the dti policy states that officials are not allowed to do any remunerative work with the state.

All senior officials also disclose their financial disclosures annually and the dti submitted 100% of its SMS disclosures to the PSC by the end of May 2014.

Reply received: September 2014

QUESTION 1690 FOR WRITTEN REPLY

1690. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) With reference to his reply to question 1138 on 4 September 2014, (a) in terms of which legislation was Cabinet Memorandum No 32 dated 6 December 2000 classified, (b) who classified the document, (c) on what date was the document classified, (d) what were the reasons for the classification and (e) at what level was the document classified;

(2) was the document classified under the Minimum Information Security Standards; if so, (a) on which legal provision did he rely to classify the document under MISS;

(3) should no legal provision exist upon which he relied to classify the document, will he make the document public? NW2051E

Reply

Section 12(a) of the Promotion of Access to Information Act, 2000 (Act 2 of 2000) specifically provides that PAIA does not apply to a record of the Cabinet and its committees." Cabinet documents" including memorandums and minutes are classified in terms of the Minimum Information Security Standards of 1996, (MISS). I repeat, therefore, that I am unable to comment on any matters that may or may not have been included in any Cabinet Memorandum.

Reply received: September 2014

Question 1623

Mr G G Hill-Lewis (DA) asked the Minister of Trade and Industry:

(a) Which posts in his department are vacant in the (i) highly skilled, (ii) highly skilled supervision and (iii) senior and top management levels and (b) in each case, what has been the duration of the vacancy? NW1984E

Response:

(a) The following positions are vacant in the (i) highly skilled, (ii) highly skilled supervision and (iii) senior and top management levels and the duration of each vacancy is indicated on this link: http://www.pmg.org.za/rnw1623-140925vacancy

Reply received: September 2014

Question 1543

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) With regard to the 80 countries that have signed and the one country that has ratified the Marrakesh Treaty To Facilitate Access to Published Works for Persons who are Blind, Visually Impaired, or Otherwise Print Disabled, has his department taken any steps towards signing and ratifying the specified treaty; if not, why not; if so, what steps has his department taken towards signing and ratifying the specified treaty;

(2) What is the timeline for South Africa to sign and ratify the specified treaty, given the urgent need among blind and visually impaired persons for the domestication of this treaty?

Response:

(1) South Africa was amongst others one of the countries that were in full support of the Marrakesh Treaty during its formulation and during its finalisation in Marrakesh, Morocco during June 2013. This international instrument was initially focusing exclusively on the blind. The Africa Group (South Africa included) at the World Intellectual Property Organisation (WIPO) took a stance that all persons with print disabilities and the visually impaired should be accommodated in this treaty instead of focusing only on the Blind.

In order for the treaty to be made effective in South Africa, the provisions of the treaty must be incorporated in the Copyright legislation within a year of signing the treaty. The department is currently in the process of amending/reviewing its Copyright legislation in this 2014/15 financial year so as to, amongst others, incorporate the articles of the treaty in the national Copyright legislation.

It is important to note the point that signing is not a prerequisite for ratification, but to show the intention of joining the treaty soon. the dti may need to reserve certain clauses. In this case, consultations and public hearings will take place. the dti may take what is good from the treaty and adopt it into copyright legislation without ratifying or signing the treaty. Signing without having updated legislation would mean that South Africa is inviting international obligations which it cannot fulfill due to the fact that the treaty cannot be made effective in the country.

(2) The department is doing its best to have the treaty articles and all the necessary requirements met whilst reviewing the legislation. In view of the aforementioned, the intention is to finalise everything and deposit the instrument of ratification in 2015/16 financial in order to alleviate the plight of the persons who are blind, visually impaired, or otherwise print disabled.

Reply received: September 2014

QUESTION 1503 FOR WRITTEN REPLY

1503. Mr M Bagraim (DA) to ask the Minister of Trade and Industry:

Whether (a) his department and/or (b) any entities reporting to him sponsored political party (i) advertisements, (ii) events and/or (iii) paraphernalia in the (aa) 2011-12, (bb) 2012-13 and (cc) 2013-14 financial years; if so, (aaa) for which political party and (bbb) what was the monetary value of the sponsorship in each case?NW1869E

Reply

(a)(b)The Department of Trade and Industry (the dti) and its entities has never supported or sponsored any political party's advertising, event, or purchase of paraphernalia.

Reply received: September 2014

QUESTION 1470 FOR WRITTEN REPLY

1470. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

What is the quantum of funds spent by his department on all advertising for each financial year between 1 April 2010 up to the latest specified date for which information is available? NW1836E

Reply

The Department of Trade and Industry (the dti) has a mandate to promote industrialisation, manufacturing, and facilitate employment creation, as per the Industrial Policy Action Plan. the dti's marketing communication and stakeholder engagement strategy and plan seeks to support and promote active participation of industry association(s) and individual enterprises in the development and access of services and programmes offered by the department and other government institutions to grow the economy and broaden participation.

the dti uses various media platforms (online, print, television, radio, billboards) in South Africa and other priority markets to market its services and position our country as an ideal destination for manufacturing and foreign direct investment. The communication research that the dti conducted in partnership with Government Communication and Information System (GCIS) found that stakeholders preferred more television and radio advertising from the dti, which calls for more consideration to use these platforms regularly.

Value for money has been derived from these advertising campaigns as adverts are directly aligned to the department's strategic objectives and progress against targets have been outlined in the dti's annual reports for the periods in question. The table below indicates the advertising expenditure since 2010:

Financial Year

Expenditure

2010/11

R14 273 million

2011/12

R32 688 million

2012/13

R29 269 million

2013/14

R42 112 million

2014/15 (1st Quarter)

R3, 792 million

Reply received: September 2014

QUESTION 1438 FOR WRITTEN REPLY

1438. Mr C D Matsepe(DA) to ask the Minister of Trade and Industry:

(a) Which travel agents has his department used during the period 1 April 2012 up to the latest specified date for which information is available and (b) what is the quantum of funds spent with each of the specified travel agents in the specified period?NW1803E

Response:

(a) and (b)

The travel agents listed below were used by the department for the said period. All bookings were made as per the dti's travel policy and in terms of the new cost containment measures issued by National Treasury. The trips were taken mainly to promote and support trade negotiations and investment in South Africa. All travel is aligned to the strategic objectives of the department as disclosed in the dti's Annual Report.

Travel Agent

Period

Total Spent

Flywell Travel

2012/2013

R 23,372,446.18

2013/2014

R 31,846,474.57

Magic Travel

2012/2013

R 37,135,700.01

2013/2014

R 29,690,881.94

XL Nexus

2012/2013 (Contract ended July 2012)

R 6,089,962.87

Travel with Flair

2012/2013 (New Contract Aug 2012)

R 7,097,567.69

2013/2014

R 20,027,149.77

Total

R 155, 260,183.03

Reply received: September 2014

Question: 1337

Ms D Carter (Cope) to ask the Minister of Trade and Industry

Whether the Government has any plans similar to the intention of China's State Council to give subsidies to customers and manufacturers of electric vehicles in order to achieve its massive target of 5 million electric vehicles by 2020 in order to reduce the country's dependence on oil imports, curtail carbon emissions and keep in front of technological developments; if not, why not; if so, what are the details for South Africa's manufacturing and uptake of electric vehicles? NW1532E

Response:

The Electric Vehicle (EV) Industry Road Map, launched by the Minister of Trade and Industry on 02 May 2013, for public comment, contains proposals aimed at encouraging the use; eventual assembly and production of electric vehicles in South Africa and the infrastructure which will be required for EV users.

This should be seen against the background of the fact that South Africa has a relatively small market for electric vehicles and at present no global Original Equipment Manufacturer (OEM) believes that the considerable investment required for local manufacture, is warranted by the size of the market or the export opportunities which could arise from production in South Africa.

Nevertheless, existing proposals in the EV Roadmap currently under discussion, include, inter alia;

· Provision of investment support for manufacturing of electric vehicles and components,

· Adoption of standards for the operation of electric vehicles,

· Support for relevant research,

· Infrastructure needs, and

· Exemption from a carbon emissions tax.

Following upon extensive engagement with stakeholders, a finalised EV Roadmap will be submitted to the Minister of Trade and Industry and the Cabinet for approval in the near future.

Reply received: September 2014

Question 1224

Ms D Carter (Cope) to ask the Minister of Trade and Industry:

(1) Whether his department has investigated why the National Credit Regulator had not intervened at the first sign of trouble at the African Bank Investments Limited when the chief financial officer offered to resign and thus contain the problem rather than let it spin out of control; if not, why not; if so, why did the National Credit Regulator not act expeditiously? NW1462E

Response 1224

(1) The mandate of the NCR is to regulate the South African credit industry with a view of protecting consumers from unscrupulous lending practices. In this regard, the NCR has achieved redress for consumers through refunds, cancellation of reckless loans and removal of negative consumer records from credit bureau blacklisting. The NCR also imposed an administrative penalty on African Bank.

According the NCR, it has no knowledge of the resignation offer of the Chief Financial Officer of African Bank, Mr Nithia Nalliah as he is still employed by the bank.

If the question relates to the former Chief Executive Officer of the African Bank who resigned when the problem came to the fore, investigations into African Bank had already been conducted by the NCR by that time.

Reply received: August 2014

QUESTION 1174 FOR WRITTEN REPLY

1174. Ms P T van Damme (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) he and (b) the Deputy Minister has each employed a ministerial special advisor; if so,

(2) (a) what is the name of the special advisor, (b) when was the advisor appointed, (c) what are the duties of the advisor, (d) at what post level was the appointment made, (e) what is the salary level of the advisor, (f) what is the duration of the employment contract entered into with the advisor and (g) why was it necessary to appoint the advisor?NW1412E

Reply

The Minister and Deputy Minister have not appointed a ministerial special advisor.

Reply received: August 2014

QUESTION 1138 FOR WRITTEN REPLY

1138. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) With regard to the Cabinet Memorandum No 32 dated 6 December 2000, which states that state-owned commercial enterprise (SOCE) equity allocations be nominated for transfer to the National Empowerment Fund in order to broaden empowerment, why did this nomination never happen;

(2) whether the nomination will happen; if not, why not; if so, what are the relevant details?NW1376E

Reply

Cabinet memoranda are secret documents and we are therefore not able to comment on anything that may or may not have been in the Cabinet Memorandum quoted by the Honourable Member.

Reply received: September 2014

Question 1137

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) How many complaints against a certain bank (African Bank) were received by the National Credit Regulator (NCR) from (a) customers and (b) debt councillors in the (i) 2012-13 and (ii) 2013-14 financial years;

(2) what action, in terms of the National Credit Act, Act 34 of 2005, were taken by the NCR against the bank with regard to each complaint received;

(3) did the NCR conduct any inspections to ensure that the bank complied with the Act; if not, why not; if so (a) how many inspections were conducted and (b) what are the relevant details of each inspection? NW1375E

According to the information received from the NCR:

(1) (a) and (b) 239 complaints received from complainants against African Bank in the two financial years 2012-2013 and 2013-2014.

(2) A breakdown of the complaints received in accordance to their nature and action taken by the NCR is enclosed hereto in annexure "A". see the link: http://www.pmg.org.za/rnw1137-140903annexurea

(3) (a) and (b) 5 inspections (including compliance monitoring) were conducted and the relevant details of each inspection is enclosed herein as annexure "B". see the link: http://www.pmg.org.za/rnw1137-140903annexurea

According to the information received from the NCR:

(1) (a) and (b) 239 complaints received from complainants against African Bank in the two financial years 2012-2013 and 2013-2014.

(2) A breakdown of the complaints received in accordance to their nature and action taken by the NCR is enclosed hereto in annexure "A".

(3) (a) and (b) 5 inspections (including compliance monitoring) were conducted and the relevant details of each inspection is enclosed herein as annexure "B".

Reply received: August 2014

QUESTION 1064 FOR WRITTEN REPLY

1064. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

With reference to his reply to question 918 on 11 August 2014, (a) what are the (i) names and (ii) positions of departmental officials who have attended African National Congress study group meetings, (b) what were the dates of those meetings and (c) was there any additional (i) travel, (ii) accommodation or (iii) other costs incurred by his department as a result of these officials attending the study group meetings? NW1238E

Reply

Officials only attend on the request of the Minister and not upon an invitation from a political party, particularly on matters requiring technical expertise for example legislation briefings. In addition, role-playing officials may attend Study Meetings. The Director-General, Mr Lionel October, Ms Zodwa Ntuli, Deputy Director-General, Ms Jodi Scholtz and Mr McDonald Netshitnzhe have attended Study Group Meetings. A record was not kept as these meeting usually take place between committee meetings, and when senior managers are in Cape Town to attend committee meetings. There were no costs incurred by the department.

Reply received: August 2014

QUESTION 988 FOR WRITTEN REPLY

988. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) Whether, with reference to the location of a Samsung television production facility at the Dube Trade Port in Durban, KwaZulu-Natal, his permission was obtained to transfer the operator permits to another person; if not, why not; if so,

(2) whether he considered the (a) extent to which the applicant's business achieves the purpose of special economic zones set out in the Act and (b) implications of the application for local manufacturers of the same product;

(3) whether he consulted with affected local manufacturers before agreeing to the production facility; if not, why not; if so, what are the relevant details? NW1141E

RESPONSE TO PQ 988

(1) the dti received an application from the Dube Trade Port Corporation (DTPC) on 12 March 2014, for the designation of an Industrial Development (IDZ) at Dube Trade Zone, King Shaka International Airport, and for the granting of an Operator Permit. DTP is a Schedule 3C corporation that is wholly-owned by the KwaZulu-Natal (KZN) Provincial Government through the Department of Economic Development and Tourism (DEDAT). The Manufacturing Development Board considered the proposal and recommended that the Minister of Trade and Industry designate the proposed area and grant an operator permit to Dube Trade Port Corporation (DTPC). Only the Dube Trade Port Corporation has been granted an operator permit as an Industrial Development Zone.

(2) Samsung's investment into South Africa is a phased approach. The television plant to be established at Dube Trade Port is phase 1 of Samsung investment and the company has positioned South Africa as part of its global manufacturing operations. The aim of Samsung is to establish a manufacturing hub in South Africa for the manufacture of Samsung products for the African market hence aligning to the broad objectives of the SEZ model i.e. value addition, technology transfer, manufacturing and export. the dti has established an internal task team with the Department of Economic Development (EDD) to address the issues raised by local manufacturers.

(3) Regarding local manufacturers of the same product; Vektronics, Anyview Technology and Altech UEC were engaged by Samsung as contract manufacturers or suppliers of Samsung products; a strategy utilised by many OEM's to enter markets before they embark on establishing their own manufacturing facilities. the dti has engaged Samsung in terms of extending the local manufacturers contract and these discussions are ongoing. the dti will continue to engage local companies to develop a long term strategy for the electronics industry.

Reply received: August 2014

Question 925

Mrs C Dudley (ACDP) to ask the Minister of Trade and Industry:

(1) Whether he and his department have considered amending the Businesses Act, Act 71 of 1991, with regard to the approval of business licences to allow for the consideration of location in terms of (a) proximity to schools and churches for certain businesses, (b) participation in decision-making and (c) discretionary powers for local municipalities, especially as the Businesses Act became law in 1991 before pornography was legalised and does not deal with issues arising from this type of business;

(2) Whether consideration has been given to providing for local authorities, acting with public participation, to be responsible for regulating the adult entertainment industry in their own areas;

(3) Whether amendments to this legislation have already been proposed by his department; if so, (a) when will they be published for public comment and (b) when does he expect the legislation to be tabled in Parliament? NW1016E

Response:

(1)(a)-(c) The Department of Trade and Industry has published for consultation the Licensing of Businesses Bill, which is in the process of being finalised taking into account the extensive input received from stakeholders. The revised Bill will be published for final comments and proceed to be introduced into Parliament. The Bill will provide for national norms and standards on the registration of businesses by municipalities, and allow for regulations to guide the nature and type of businesses to be approved in various locations by municipalities.

(2) The proposed amendments will deal with norms and standards and provide the framework for municipalities to regulate the nature and type of businesses that are operated and the creation of a register of businesses operated in municipalities.

(3)(a) The amendments to the Businesses Act of 1991 were published for public comments, and a revised bill will be published for final comments this year.

(b) The proposed amendments are on the Parliamentary Programme for 2014/2015 financial year.

Reply received: August 2014

QUESTION 918 FOR WRITTEN REPLY

918. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(a) Have any officials of his department attended study groups of political parties represented in Parliament, (b) in respect of each case, what was the (i) name and (ii) position of the officials, (c) which party study group did the specified officials attend and (d) what were the related costs to his department?NW1009E

Reply:

Yes, dti officials, including role-playing staff in the Ministry have attended a study group meeting of the African National Congress. The participation of officials from the dti were limited to responding to technical queries e.g related to legislation. Officials only attended when they were in Cape Town for other purposes.

Reply received: August 2014

Question: 875

Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

What is the breakdown of expenditure in the Trade and Investment South Africa programme by (a) economic sector and (b) province?

Response:

The Export Marketing and Investment Assistance scheme is aimed at partially compensating South African exporters for costs incurred in respect of activities aimed at developing export markets for South African products and services as well as to recruit new foreign investment into the country. As at year end 2013/2014 1084 companies were assisted as follows:

Province

No of Companies Assisted

Expenditure

Sector

Expenditure

Eastern Cape

31

R 3 252 210.00

Aerospace, Rail & Marine

R 18 547 633.90

Free State

7

R 732 370.00

AgroProcessing

R 23 431 859.88

Gauteng

489

R 53 216 605.00

Automotives

R 5 353 578.68

KwaZulu - Natal

110

R 11 540 100.00

Built Environment Profession

R 525 694.50

Limpopo

39

R 4 091 490.00

Business Process Outsourcing

R 310 279.06

Mpumalanga

35

R 3 671 850.00

Capital Equipment

R 3 729 777.77

North West

15

R 1 573 650.00

Chemicals and Pharmaceuticals

R 256 309.87

Northern Cape

11

R 1 154 010.00

Creative Industries

R 8 997 090.75

Western Cape

292

R 32 549 335.00

Electrotechnical

R 1 533 766.84

Inward

55

R 1 941 378.35

Metal Fabrication

R 3 114 870.23

Multi- Sectoral

R 46 405 447.98

Renewable Energy

R 1 516 688.89

TOTAL

1084

R 113 722 998.35

R 113 722 998.35

Reply received: August 2014

QUESTION 869 FOR WRITTEN REPLY

869. Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

With regard to his department's Budget Vote on 22 July 2014, what amount was spent on (a) food, (b) alcohol, (c) cool drinks, (d) entertainment, (e) travel for departmental officials in and around Cape Town, (f) travel for departmental guests in and around Cape Town, (g) accommodation for departmental officials in Cape Town, (h) accommodation for departmental guests in Cape Town, (i) gifts for departmental guests and officials, (j) transportation of departmental guests to and from Cape Town and (k) transportation for departmental officials to and from Cape Town? NW958E

Response:

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)

The department did not incur any expenditure with regard to food, alcohol, cool drinks or entertainment with regard to the Budget Vote Speech presented on 22 July 2014, nor were any guests invited.

Only Minister Davies, relevant staff of the Ministry, the Director General and Deputy Directors General within the dti attended the Budget Vote.

Bookings related to air travel, accommodation and ground transport were made in accordance with the cost containment measures issued by National Treasury.

Detail pertaining to actual cost incurred for travel and accommodation will only be available at a later stage as the dti has not yet been invoiced by the relevant service providers.

Reply received: August 2014

QUESTION 797 FOR WRITTEN REPLY

797. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) Whether (a) he, (b) the Deputy Minister, (c) the Director-General or (d) any of his staff (i) attended, (ii) accepted an invitation and/or (iii) received tickets to the 2014 Soccer World Cup in their official capacity; if so, what are the relevant details including the (aa)(aaa) names and (bbb) positions of those who attended and (bb) breakdown of the amounts spent by his department on (aaa) travel, (bbb) accommodation, (ccc) entertainment and (ddd) any further specified expenses;

(2) (a) what is the breakdown of the amount spent by his department on any persons accompanying (i) him, (ii) the Deputy Minister, (iii) the Director-General or (iv) any of his staff to attend the 2014 Soccer World Cup including (aa) travel, (bb) accommodation, (cc) entertainment and (dd) any further costs and (b) in each case, what is the (i) relationship and (ii) reason for accompanying the relevant person? NW884E

Response:

(1) (a) (b) (c) (d) (i) (ii) (iii) (aa) (aaa) (bbb) (bb) (aaa) (bbb) (ccc) (ddd)

Neither, Minister Davies, the Deputy Minister, Director General nor any of the dti staff attended, accepted an invitation or received tickets to the 2014 Soccer World Cup in their official capacity.

(2) (a) (i) (ii) (iii) (iv) (aa) (bb) (cc) (dd) (b) (i) (ii)

Neither, Minister Davies, the Deputy Minister, Director General nor any of the dti staff attended nor accompanied any persons to the 2014 Soccer World Cup in their official capacity.

Reply received: August 2014

QUESTION 748 FOR WRITTEN REPLY

748. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(a) How many (i) judgments and (ii) court orders were made against his department in the (aa) 2010-11, (bb) 2011-12, (cc) 2012-13 and (dd) 2013-14 financial years and (b) in each case, (i) how many of these (aa) were implemented and (bb) await implementation by his department and (ii) what was the nature of the (aa) judgment and/or (bb) court order?NW835E

(aa) 2010-2011

(a) (i) Judgement - None

(ii) Court order - None

(bb) 2011-2012

(a) (i) Judgement-1 (one)

(ii) Court order-None

(b) (i)(aa) Judgement implemented- None

Reason: DIRCOadvised that the missionhas invoked its right to diplomatic immunity in terms of article 22 of the Vienna Convention of 1961.

(ii) (aa) and(bb) Court order:The Federal court of appeal in Argentina ordered the South African Embassy to pay Mr Poinsteau an estimated total of USD 185 870.42 for constructive dismissal.

(cc) 2012-2013

(a) (i) Judgements-2 (two)

(ii) Court order- None

(b) (i)(aa) Judgements implemented-2 (two)

(ii)(aa)1. The Constitutional Court declared section 89(5) (c) of the National Credit Act, 2005(Act No 34 of 2005) constitutionally invalid. the dti has amended the section accordingly.

2. the dti was ordered to pay Mr Philip Knight approximately R3 million for services rendered in terms of the Service Level Agreement between the parties.

(dd) 2013-2014

(a) (i) Judgement-2 (two)

(ii) Court order- 1(one)

(b) (i)(aa) Implemented-3 (three)

(ii)(aa)1.The court reviewed and set aside the notice issued by the Minister of Trade and Industry to defer the applications of certain sections of the Consumer Protection Act ,2008( Act No 68 of 2008) in respect of medium and small municipalities.

2. The Western Cape High Court made a ruling that section 32A of the Estate Agency Affairs Act, 1976(Act 112 of 1976)is unconstitutional. The administration of the Act has since been transferred to the Department of Rural Development and Land reform.

ii(bb) The North Gauteng High Court ordered the Minister of Trade and Industry to issue Titacan Investment (Pty) Ltd with registration certificate in terms of the National Liquor Act,2003 (Act No 59 of 2003).

Reply received: August 2014

Question 733

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

1. When did the National Regulator for Compulsory Specifications (NRCS) advise electro industry importers about the revised Letter of Authority (LoA) process;

2. What process of engagement did the NRCS use to speak to industry stakeholders;

3. What feedback was received from industry stakeholders on the revised process; and

4. What is the current turnaround time for the issuing of LoAs to companies?

Response

1. For the period 2008 to 2014 the National Regulator for Compulsor Specifications (NRCS) recorded imported products that were non-compliant with NRCS compulsory specificationsto the value ofapproximately R438million. Of this amount 17.8% or R78 million by value, were electro-technical products. At the beginning of 2014 the NRCS began the process of amending the Letter of Authority (LoA) process to curb the importation of non-compliant products that may be harmful to the safety and health of consumers. The internal NRCS process of assessing LoA applications was revised and finalised on 10th April 2014. This process included the institution of amended forms required for LoA applications which included an indication of the revised timelines for processing applications to stakeholders.

2. Stakeholders are also informed of the revised timelines for processing applications at the time they lodge new applications.

3. The feedback received from some electrical product importers was that they were not satisfied with the reasons provided for the new process, notwithstanding efforts to clearly explain the important principles and reasons for the new system for importers and the fact that this was benchmarked against global practice.

4. The current maximum turnaround time to issue a LoA, as from the 10th of April 2014, is 120 days. The 120 days processing time is far shorter than the turnaround times of many of South Africa's trading partners. In practice many LoA's are issued in less time but in cases of repeated importation of non-compliant products, the maximum processing time will be the norm in order ensure that the public is safeguarded against unsafe products.

Reply received: August 2014

Question 732.

Mr R W T Chance (DA) to ask the Minister of Trade and Industry:

Whether the Soweto Art and Craft Fair held discussions with his department about their request for support; if not, what is the position in this regard; if so, what was the outcome of the discussions? NW817E

REPLY

The Soweto Art and Craft Fair has held discussions with the Creative Industries Directorate to explore avenues for support and engagement. In this engagement it was indicated to the Fair that the individual crafters and artists should apply to participate in the various planned craft missions. For direct support to the fair itself it was recommended that they apply and register as a cooperative which would enable them to secure resources that they would collectively use to effectively run and promote the monthly markets that are held at the Soweto Theatre for the benefit of all the crafters and artists who are members.

Reply received: August 2014

QUESTION 731 FOR WRITTEN REPLY

731. Mr R W T Chance (DA) to ask the Minister of Trade and Industry:

(a) What is the status of the Enterprise Development Fund which is operated by the National Empowerment Fund (NEF) and (b) why was an agreement between the NEF, the UK Trade and Investment and the Micro Enterprise Development Organisation (MEDO), which was signed in February 2012, in terms of which monies would be sourced for enterprise development from British companies operating in South Africa, unilaterally ignored by the NEF? NW816E

Reply:

(a) The National Empowerment Fund (NEF) Enterprise Development Fund is still active and has been performing in line with set targets.

(b) The NEF, Micro Enterprise Development Organisation (MEDO) and UK Trade and Investment (UKTI) entered into a memorandum of understanding (MoU). Since the effective date of the MoU, the NEF has not unilaterally ignored any of the provisions of the MoU.

In this regard, contribution to the ED fund has been secured through engagements with various UK companies operating in South Africa

Reply received: August 2014

QUESTION 696 FOR WRITTEN REPLY

696. Ms D Carter (Cope) to ask the Minister of Trade and Industry:

Whether his department is examining international investment trends to ascertain whether South Africa is losing favour in relation to other developing countries and more particularly countries in Africa; if not, why not; if so, what are the relevant details?NW780E

Response:

South Africa recognises the importance of foreign direct investment (FDI). We are - and remain - open to FDI. Openness is reflected in the stock of FDI in South Africa that now accounts for around 42% of our GDP. Inward flows also continue to grow, and over the last five years South Africa accounted for the bulk of new investment projects in Africa with investment arriving from the USA, some Member States of the EU and, increasingly, from China, India and other Asian countries.

South Africa offers many opportunities not only for access to the domestic market but also as a platform to the dynamically growing markets of the African continent. Investors enjoy robust protection in South Africa, comparable to the highest international standards, and the OECD rates South Africa as among the least restrictive jurisdictions for investment.

Ernest and Young point outin Africa Attractiveness Survey for 2014 that Africa has moved from third-last to become the second-most attractive investment destination in just four years. The continent's share of global FDI projects has reached a record high of 5.7 percent and the total value of FDI projects in Africa increased by 12.9 percent last year. The same survey observes that South Africa attracts most of this FDI, or around 24 percent of all FDI projects in Africa between 2007 and last year.

The study also shows that there has been a significant increase in intra-African FDI, primarily driven by South African, Kenyan and Nigerian multinational corporations expanding into other African economies.The compound annual growth rate of intra-African FDI projects between 2007 and 2013 was 31.5 percent – almost double the rate of the next highest FDI source, the Asia-Pacific region at 16.6 percent.

In this light and notwithstanding the challenging global economic conditions, in August 2013, the Global Financial Times Magazine of UK voted South Africa overall winner for best investment destination in Africa for 2013 and 2014. Further, the 2014 AT Kearney Foreign Direct Confidence Index ranks South Africa in position 13 amongst 25 leading economies moving up two places from 2013. South Africa ranks higher than countries such as Switzerland, Sweden and Netherlands.

It is also useful to recall the International Investment Initiative director at the University of Bern's World Trade Institute Dr Stephen Gelb view that research has shown over 130 foreign firms either entered South Africa or expanded their investments during 2013; that is about 2.5 foreign firms per week announced an investment in South Africa.

It should also be noted that TISA our investment team has developed an investment pipeline of R 60.5 billion of potential investment projects for 2013/14.

Certainly, the draft Promotion and Protection of Investment Bill has generated some negative comment. The reality however is that this Bill will ensure that all investors domestic and foreign will be treated equally on the basis of the principle of non-discrimination and substantial protection of investor rights, based on the Constitution.

These are factors recognised by leading investors and as an example this year we welcome Samsung Electronics who will establish a manufacturing hub for Africa at the newly designated IDZ Dube Trade- Port for the production of televisions and monitors as part of phase 1 of their investment.

Reply received: July 2014

QUESTION 608 FOR WRITTEN REPLY

608. Mr T J Brauteseth (DA) to ask the Minister of Trade and Industry:

(1) How many (a) international and (b) domestic hotel bookings were made by (i) him, (ii) his predecessors and (iii) departmental officials attending (aa) workshops, (bb) seminars, (cc) oversight visits or (dd) any other relevant meetings of the relevant portfolio committee from 1 April 2013 up to the latest specified date for which information is available;

(2) in respect of each specified booking, what was the (a) date, (b) name of the hotel, (c) number of delegates, (d) cost of the hotel booking for each delegate and (e) the nature of the relevant portfolio business dealt with?NW691E

Response:

Members of the Executive, by the very nature of their ministerial work are required to travel extensively. Ministers and Deputy Ministers may choose to occupy a state-owned residence in the area, in which their seat of office resides. However, ministerial work is not limited to seats of office and their duties require them to visit other provinces around the country and travel abroad in order to fulfill their duties, which include among others, interaction with communities and stakeholders in the course of delivering on their mandates. In these instances, Ministers and Deputy Ministers are accommodated in hotels or guest houses, when fulfilling official duty away from their ordinary place of residence befitting to their office requirements and as outlined in the relevant policies.

The 2013/14 year is currently being audited. The information will be provided in the dti's Annual Report of 2013/14 which will be tabled later this year.

Reply received: July 2014

QUESTION 572 FOR WRITTEN REPLY

572. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(a) Why were the envisaged (i) Licensing of Businesses Bill and (ii) the Promotion and Protection of Investment Bill not tabled during the Fourth Parliament, (b) what is the current status of these envisaged pieces of legislation and (c) will he seek to reintroduce these Bills during the Fifth Parliament; if so, when? NW655E

Reply:

(a) (i) The Licensing of Businesses Bill was in the process of initial consultation during the fourth Parliament. After the release of the initial draft Bill, the dti received submissions which were carefully considered. Provincial consultation workshops and focused meetings with key stakeholders that submitted comments have been completed. A revised Bill is being finalised for approval by Cabinet for final round of consultations. The Bill is on the legislative programme for this financial year.

(ii) It was envisaged that the Promotion and Protection of Investment Bill would be tabled to the Fifth Parliament during the second half of 2014. The Bill was published for a three-month period for public comment ending 31 January 2014. The comments have been carefully considered and accommodated as appropriate in a second iteration that is currently undergoing legal vetting. Further consultations are underway with stakeholders in NEDLAC. Following conclusion of the consultations, the Bill should be ready for resubmission to Cabinet. Once considered by the Cabinet, and if approved, the Bill will be tabled in Parliament, possibly in the fourth quarter of 2014.

(b) and (c) The response are embodied in (i) and (ii).

Reply received: July 2014

Question 571

Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

What is the full list of vehicle (a) makes and (b) models produced or assembled in South Africa?NW654E

Response:

During the 2013 calender year about 30 vehicle brands were manufactured or assembled in South Africa representing at least 500 models. Below link is the list of light motor vehicles produced during 2013.

http://www.pmg.org.za/rnw571a-140722

http://www.pmg.org.za/rnw571a1-140722manufacturer

Reply received: July 2014

QUESTIONS 570 FOR WRITTEN REPLY

570. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(a) How many bilateral trade agreements has the Government signed and ratified over the past 10 years, (b) with which countries and (c) in each case, what are the key features of the agreement? NW653E

Response:

Since 2004, South African Government, through the dti, has signed 45 bilateral trade agreements of which 24 are with African countries[1] and 21 with others around the world[2]. (See attachment for full list) These agreements are variously termed but usually Memorandum of Understanding on Economic and Technical Cooperation, or Bilateral Trade Agreements. At times, we sign more than one agreement with a single country and, in some cases, the agreements are not limited to trade only but also specify wider areas of cooperation. All these agreement involve no legally binding commitments but rather establish a mechanism for cooperation on trade matters and they identify specific areas and sectors in which that cooperation will be focused. Such agreements must be tabled in Parliament but they do not require ratification.

It may be noted that South Africa participated as part of SACU in concluding region-to-region trade agreements with EFTA and MERCOSUR in 2008. These agreements do involve formal legal commitments in respect of an exchange of tariff concessions and legal texts covering several related areas notably trade remedies, standards, and dispute settlement procedures. Both agreements were tabled and ratified by the South African Parliament. We have also concluded a Trade, Investment and Development Cooperation Agreement (TIDCA) that sets out a work programme for cooperation on customs and standards between SACU and the USA.

LIST OF BILATERAL TRADE AGREEMENTS

Africa Memorandum of Understanding on Economic and Technical Cooperation

See the link for the list: http://www.pmg.org.za/rnw570-140722list


[1] Angola, Benin, Cameroon, Egypt, Ethiopia, Gabon, Ghana, Guinea, Kenya, Madagascar, Mauritius, Mozambique, Namibia, Republic of Congo, Rwanda, Sudan, Uganda and Zambia.

[2] China, Indonesia, New Zealand, Singapore, Vietnam, and the USA.

Reply received: July 2014

Question: 569

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

Whether he has found that labour unrest poses a threat to the Industrial Policy Action Plan and the development of industries; if so, what steps will be taken by him and his department in this regard? NW652E

Response:

The Minister and Department of Labour have a constitutional mandate for labour. Accordingly it is the Minister and Department of Labour who lead government efforts to enable and facilitate agreements under the existing collective bargaining framework and legislation. Parliamentary questions with regard to general and specific interventions in this regard should be directed to the Minister of Labour.

Clearly and as indicated in successive iterations of the Industrial Policy Action Plan a speedy and harmonies settlement of all labour relations matters is in the interests of industrial and economic development and all the stakeholders concerned.

Reply received: July 2014

Question: 568.

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

Given that illegal imports pose one of the greatest threats to local manufacturing, often due to under invoicing and a falsified bill of lading, (a) what engagement is he involved in with the Minister of Home Affairs in respect of Customs to clamp down on illegal imports, (b) what successes has his department in conjunction with Customs had in seizing (i) fake and (ii) under-invoiced goods and (c) does his department have a strategy to deal with such threats to local manufacturing?NW651E

Response:

a) and b) The Customs Division of the South African Revenue Service (SARS) falls under the National Treasury and not Home Affairs. It has a constitutional mandate for customs matters in South Africa. Parliamentary questions regarding the amount of 'fake' and 'under invoiced goods' seized by Customs at ports of entry should be directed to the Minister of Finance.

c) The Department of Trade and Industry does have a strategy to support the Customs division of SARS. This has been set out in successive iterations of the annual Industrial Policy Action Plan (IPAP). It is inclusive of the following;

a. the dti has provided support to the Customs Modernisation Programme, which includes a real-time electronic system; an electronic reference pricing system and risk engine for search and seizure. the dti work has focused on a reference price system and includes an ongoing engagement with the Port of Entry Control Centre (PECC).

b. the dti participates in the Customs Operations Key Industries Forum (CO-KIF); a platform for strengthened; aligned policy and programmes to enhance trade facilitation, voluntary compliance and address customs and excise fraud issues.

Outside of co-operation with the Customs division of SARS, the dti entities; the South African Bureau of Standards (SABS) and the National Regulator for Compulsory Specifications (NRCS), operate under a mandate to 'lock out' sub-standard and non-compliant goods and 'lock in' locally produced goods to required standard and specification; including for the purposes of ensuring that the export of South African products conform to required international standards and under-pin our export promotion efforts. The NRCS has responsibility, working with Customs and the South African Police Services, for post border search and seizure of non-compliant and unsafe products. For the period 2008/9 to 2013/14 the NRCS conducted a total of 264,283 inspections and destroyed non-compliant products estimated at R438 million.

Every effort is being made to strengthen this work going-forward.

Reply received: July 2014

Question 521
(1) 521. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:


(a) What is the current average real response time for queries submitted to the Companies and Intellectual Properties Commission (CIPC), (b) what is his department doing to improve these response times, (c) what is his department doing to address the prevalence of so-called runners at the head office of the CIPC and (d) why are these runners able to receive much faster responses from ClPC staff than members of the public? NW603E

RESPONSE FROM THE COMPANIES AND INTELLECTUAL PROPERTY COMMISSION

a) ClPC has introduced and published service delivery standards in 2012 for all its processes on its website (www.cipc.co.za) . It outlines the maximum amount of time for processes to be concluded as well an escalation process should queries not be attended to within the stipulated timeframes depending on the nature of the enquiry.

b) ClPC will be launching a new website by the end of September 2014 that will include a query resolution functionality where customers can lodge enquiries, receive a reference number and escalate such enquiries. These enquiries will be clearly tracked and monitored, Furthermore, ClPC also appointed a ClPC Ombud to deal with those matters that were escalated and not addressed. ClPC has also implemented a scanning and tracking solution to reduce the response times

c) ClPC has no official agents or intermediaries. It is migrating processes from manual to electronic to offer direct services to its customers. Customers receive certificates via email only. Furthermore, Self Service Centres and Self Service Terminals are being rolled out nationally and customers are guided through the process. ClPC is also in the process of informing customers that it has no agents and directing them to alternative channels of transacting. This marketing campaign should be concluded by the end of the current quarter.

d) Customers need to provide names and details of "runners" that can expedite the processing of documents outside of the Service Delivery Standards. ClPC is taking a zero tolerance to fraud and corruption and employees found to be guilty on fraudulent practices will be criminally charged.

Reply received: July 2014

Question 520
520. Mr G G Hill-Lewis (DA) to ask the Minister of
Trade and Industry:

What monies have been (a) granted and (b) transferred by the National Lotteries Board to the Tinkawu Theatre Laboratory;

(2) (a) When did the Tinkawu Theatre Laboratory apply for this grant and (b) what was the grant intended to be used for?NW602E

According to the information received from the National Lotteries Board:

( 3 ) (a) R2 546 125.00 was granted by the National Lotteries Board to the Tinkawu Theatre Laboratory.

(2) (b) R1 782 075.00 was transferred by the National Lotteries Board to the Tinkawu Theatre Laboratory.

(3) (a) 2004 and 2006

(b) In 2004, the grant was intended far: -

▪ Providing artists and young school-going and unemployed people interested in art courses with theatre and theatre management skills.
▪ Enhancing the status of women's participation in theatre and to encourage artists and young unemployed people to explore their talent further.
▪ Creation and provision for a platform for training, theatre exchange, touring of productions.

In 2006, the grant was intended for:

▪ Promoting self-reliance and sustainability to arts & culture groups at community level.
▪ Promoting the arts as an educational instrument.
▪ Encouraging the application of cultural principles within individuals.

Reply received: July 2014

QUESTION 514 FOR WRITTEN REPLY

514. Mr G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

With regard to the development of the Mamba cement factory in Limpopo, (a) what were the (i) reasons and (ii) legal basis for the import duties being waived on machinery imported for the initial construction of the factory and for its later cement production activities, (b) what were the (i) reasons and (ii) legal basis for workers from other countries being allowed into South Africa to work on the construction of this factory, (c) how many permanent jobs for South African citizens will be created in this factory, (d) how does this transaction fit within his department's (i) industrialisation and (ii) localisation policies and (e) what was his department's role in this development? NW596E

Reply

(a)(i) ITAC did not provide any waivers on import duties on machinery or any other products to Mamba cement, as ITAC did not receive any request by Mamba for the duty-free importation of plant or machinery used for the construction of the cement factory in Limpopo.

(a)(ii) Rebates of duties are specifically in terms of rebate items 490.40 and 490.90 of Schedule 4 of the Customs & Excise Act, 91 of 1964 which provides for a full rebate of duty on temporary importation of machinery or plant (excluding tower cranes) for use on contract in civil engineering or construction work.

(b) The issuing of work permits and company transfers is the responsibility of the Department of Home Affairs. Kindly refer this question to Department of Home Affairs official responsible for this project – Mr Ben Makhalemele Ben.Makhalemele@dha.gov.za, Tel: 072 891 3263.

(c) According to the information received from Mamba Cement (Pty) Ltd, 196 permanent jobs will be created. During the construction phase 513 temporary jobs will be created.

(d) The Mamba cement project will lead to economic development in Limpopo and it will spur economic growth in the surrounding areas that can lead to the creation of a number of direct and indirect jobs. South Africa's infrastructure spend will require inputs such as cement in large quantities. In order for companies to participate in these projects they need to localise their production. The localisation of productive capacity leads to the transfer of technology, efficiency, competition which lowers prices and job creation. Industrialisation characterised by the manufacturing of value added products forms the foundation of the departments Industrial Policy Action Plan (IPAP).

(e) The Department of Trade and Industry through its Trade and Investment South Africa (TISA) division is responsible for the facilitation of foreign direct investment into South Africa. Mamba cement is one of the projects that were facilitated through the involvement of TISA.

Reply received: July 2014

Question 429

429. Mr D Bergman (DA) to ask the Minister of Trade and Industry:

(1) (a) How many times did the SA Football Museum apply for funding from the National Lotteries Board (NLB) for the (i) 2009-10, (ii) 2010-11, (iii) 2011-12, (iv) 2012-13 and (v) 2013-14 financial years, (b) what was the total amount of money granted by the NLB to the SA Football Museum for the above-mentioned financial years and (c) has the SA Football Museum accounted for all their expenditure on every grant received from the NLB for each specified financial year including the submission of (aa) financial statements, (bb) financial reports and (cc) quarterly reports;

(2) what was the (a) physical address contained in the SA Football Museum's application for funding for the (i) 2009-10, (ii) 2010-11, (iii) 2011-12, (iv) 2012-13 and (v) 2013-14 financial years and (b) what were the name(s) of the person(s), including their position(s) at the organisation at that time, who submitted the SA Football Museum's application(s) for funding in the above-mentioned financial years;

(3) (a) what are the name(s) of the persons, including their (i) positions, (ii) educational qualifications (iii) salaries per annum at the time, (iv) bonuses paid to them and (v) details of their most recent employer before joining the SA Football Museum, of the persons identified as (aa) owners, (bb) management and (cc) board of the SA Football Museum for the (aaa) 2009-10, (bbb) 2010-11, (ccc) 2011-12, (ddd) 2012-13 and (eee) 2013-14 financial years? NW511E

RESPONSE AS PER THE NATIONAL LOTTERIES BOARD:

  1. a) i) 2009 – 2010: no application

ii) 2010 – 2011: no application

iii) 2011 – 2012: yes, application 59103

iv) 2012 – 2013: no application

v) 2013 – 2014: no application

b) In the financial year 2011 – 2012 Project 59103 was granted R7 452 722.00

c) Last payment date was on 07 January 2014 to an amount of R4 875 630.00. Balance Outstanding is R2 577 092.00. No report submitted as yet, SMS reminder has been sent for the first tranche report.

  1. a) Physical Address for application made in 2011 – 2012 is 75 Oxford Road Saxonwold, Johannesburg. No application for other years.

b) the names of persons listed on the application form for 2011 – 2012 application are as follows;

· Emelia Cassletti-Bwalya Board Member

· Mothobeli Mankahla Board Member

· Rich Mkhondo Board Member

· Philippa Mary Freere Project Manager

· Raheed James Financial Manager

· Dr Leepile Taunyana Chairman & Signatory

· Michael Vusumuzi Ntombela Deputy Chairman

(The NLB's application process and forms do not require information on details of people's employment, owners and management as requested under question 3. Further information on the SA Football Museum should be requested from the Museum).

  1. a) i) No information on positions

ii) No information on Educational Qualifications

iii) No information on Salaries

iv) No information on Bonuses

v) No information of their most recent employers

aa – eee: No information

Reply received: March 2014

QUESTION 377 FOR WRITTEN REPLY

377. Ms B Ferguson (Cope) to ask the Minister of Trade and Industry:

(1) Whether he led a high-level government and business delegation to the United States of America to discuss the (a) extension of the Africa Growth and Opportunity Act (AGOA) beyond its 30 September 2015 expiry date and (b) continued exclusion of South Africa; if not, what is the position in this regard; if so,

(2) whether he has found that the inclusion of South Africa into the Brazil, Russia, India and China trade bloc is the reason for its exclusion from AGOA; if not, what was his finding; if so, what are the relevant details? NW431E

Reply:

South Africa is not excluded from AGOA. The issue under consideration is the extension of AGOA beyond its current expiry date of 30 September 2015 and the continued inclusion of South Africa as a beneficiary of the programme. South Africa's membership of the BRICS group of countries bears little, if any, consideration on these core issues. The USA itself has deep and expanding relations with BRICS countries.

From 15 to 22 September 2013, the Minister of Trade and Industry, Dr. Rob Davies, led a government delegation to the USA to exchange views with various US stakeholders on AGOA and to make the case for the extension of AGOA beyond 2015 with South Africa included as a beneficiary. During the visit, the Minister met the United States Trade Representative, members of Congress, including senior leaders of the Foreign Affairs, Finance, and the Ways and Means Committees. Minister Davies also met with the private sector represented through the United States Chamber of Commerce and the Corporate Council on Africa. He had engagements with policy institutes in Washington DC and with the US media.

The visit coincided with a mission to the USA by the South Africa-based American Chamber of Commerce (AMCHAM) that was also advocating an extension of AGOA beyond 2015.

Minister Davies' message was that the USA and South Africa maintain strong relations, and that the US has provided strong support to South Africa's democratic transition and socio-economic development since 1994. He outlined the growth of bilateral trade that is diverse in content and balanced. Investment relations are also growing, and South Africa is host to at least 600 US companies. Growing trade and investment relations are, to a large extent based on AGOA and Minister Davies pointed out that AGOA, by establishing a single trade regime with Sub-Saharan African countries, has fostered the growth of regional value chains in Africa and boosted intra-African trade.

Minister Davies suggested that our common challenge is to build on AGOA through an extension of the programme with greater focus on regional integration and investment to support industrialisation and infrastructure development in Africa. This would underpin a virtuous cycle of growing trade and investment between the USA and the rapidly growing African continent from which both sides can derive benefit. In line with the common position of African Governments, Minister Davies called for an extension of AGOA beyond the 30 September 2015 expiry date, for at least 15 years.

Reply received: July 2014

QUESTION 297 FOR WRITTEN REPLY

297. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) What are the details of office furniture ordered and or purchased for the use of him and/or his staff since 1 May 2014;

(2) in respect of each piece of furniture, (a) what is the description, (b) what is the breakdown of the costs, (c) where will each piece of furniture be used and (d) who will use each piece of furniture;

(3) what are the details of furniture disposed of;

(4) in respect of each piece of furniture disposed of, (a) what is the description, (b) original purchase costs and (c) on what date was it purchased;

(5) (a) how was this furniture disposed of, (b) what disposal method was used, (c) what is the name and contact details of person/s to whom it was disposed and (d) at what price was it disposed of? NW377E

Response:

(1) (2) (a) (b) (c) (d) (3) (4) (a) (b) (c) (5) (a) (b) (c) (d)

The department has not ordered nor purchased any new furniture for Minister Davies or any of his staff since May 2014. The department has also not disposed of any furniture allocated to Minister Davies nor his staff since May 2014.

Reply received: July 2014

QUESTION 263 FOR WRITTEN REPLY

263. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:

(1) What are the details of motor vehicles ordered and/or purchased for his use since May 2014;

(2) (a) what is the (i) make, (ii) model, (iii) total cost and (iv) breakdown of the cost of each motor vehicle and (b) where will each motor vehicle normally be stationed? NW342E

Response:

(1) (2) (a) (i) (ii) (iii) (iv) (b)

The department has not ordered nor purchased any new vehicles for Minister Davies since May 2014.

Reply received: June 2014

QUESTION 196

196. Mr M A Plouamma (Agang SA) to ask the Minister of Trade and Industry:

Whether, in light of the acknowledgement by the President, Mr Jacob Zuma, on 24 May 2014 that poverty, inequality and unemployment still persist, he intends to introduce legislation to combat the discriminatory practice of disqualifying jobseekers because of adverse credit profiles?NW246E

Reply:

YesThe President has passed the National Credit Amendment Act into an Act of Parliament. The National Credit Amendment Act provides that there should be automatic Removal of Adverse Consumer Credit Information. This will assist in that potential employees will not be adversely affected when they apply for jobs that do not involve handling of funds or do not involve high standard of honesty.

Through monitoring and enforcement of the Notice/Regulations and Sections, the National Credit Regulator will encourage employers and Credit Bureaus/Credit Providers not to abuse the system any longer. Education and awareness of consumers by the dti and National Credit Regulator will also intensify in order to curb the abuse.

Reply received: June 2014

QUESTION 172 FOR WRITTEN REPLY

172. Mr Z N Mbhele (DA) to ask the Minister of Trade and Industry:

(1) What are the details of all the costs of the maintenance of the pot plants in his (a) departmental offices and (b) official residence (i) in the (aa) 2009-10, (bb) 2010-11, (cc) 2011-12, (dd) 2012-13 and (ee) 2013-14 financial years and (ii) since 1 April 2014;

(2) in respect of the pot plant maintenance, (a) what is the (i) address and (ii) name of the office where they were/are displayed, (b) for whose benefit are these pot plants, (c) what was/is the value of maintenance for each office and (d) what are the details of any contracts and/or plans for the maintenance of these pot plants in the future?

Response:

(1) (a) (i) (aa) (bb) (cc) (dd) (ee) (ii)

2009 - 10

2010 - 11

2011 - 12

2012 - 13

2013 - 14

Since 1 April 2014

R6 895

R13 392

R18 251

R19 891

R11 603

-

(1) (b) (i) (aa) (bb) (cc) (dd) (ee) (ii)

The cost pertaining to the provision and the maintenance of pot plants at official residences is the responsibility of the Department of Public Works.

(2) (a) (i) (ii)

Parliamentary Office

120 Plein street

Cape Town

(2) (b)

The pot plants are used as office decor and do not directly benefit any person.

(2) (c)

Please refer to (1) (a) (i) above

(2) (d)

The contract for the maintenance of pot plants ended in December 2013 and has not been renewed.

Reply received: June 2014

Question 138.

Mr J R B Lorimer (DA) to ask the Minister of Trade and Industry:

(1) What are the details of all expenditure that was found to have been (a) irregular and (b) wasteful in his department for each year from 1 April 2009 up to the latest specified date for which information is available;

(2) in respect of each such finding of (a) irregular and (b) wasteful expenditure, (i) what (aa) is the description thereof, (bb) is the value thereof and (cc) action has been taken against the persons accountable for such expenditure and (ii) how much thereof (aa) has been recovered and (bb) from whom? NW151E

Response:

(1) (a) and (2) (a) (i) (aa) (bb) (cc) (ii) (aa) (bb)

Irregular expenditure:

2009/10

Description

Value

R'000

Action taken

Amount recovered

R'000

Non-compliance with SCM regulations

191

In all the cases value for money was received and the expense was condoned by the Accounting Officer

0

Non-compliance with SITA contract 398

1,698

No action was instituted against any dti official in this regard as SITA was responsible for obtaining approval for the business case prior to the contract being made available to user departments.

National Treasury has since clarified that this is no longer irregular expenditure for the dti.

0

TOTAL

1,889

2010/11

Description

Value

R'000

Action taken

Amount recovered

R'000

Non-compliance with SCM regulations

27,506

In all the cases value for money was received and the expense was condoned by the Accounting Officer

0

Non-compliance with HR laws and regulations

817

Relevant authority to condone

0

TOTAL

28,323

2011/12

Description

Value

R'000

Action taken

Amount recovered

R'000

Non-compliance with HR laws and regulations

2,689

The non-compliance was in respect of the overtime policy which has since been updated and approved.

0

Non-compliance with SCM regulations

56,820

In all the cases value for money was received and the expense was condoned by the Accounting Officer

0

TOTAL

59,509

2012/13

Description

Value

R'000

Action taken

Amount recovered

Non-compliance with HR laws and regulations

295

Requested relevant authority to condone

0

Non-compliance with SCM regulations

32,671

In all the cases value for money was received and the expense is awaiting condonation by the relevant authority

0

TOTAL

32,966

(1) (b) and (2) (b) (i) (aa) (bb) (cc) (ii) (aa) (bb)

Wasteful expenditure

2009/10

Description

Value

R'000

Action taken

Amount recovered

R'000

No show in respect of hotel accommodation

12

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

Penalty fee for late payments

11

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

No show in respect of hotel accommodation

56

Recovery recommended, however the amount was subsequently written off

0

Penalty fee for cancellation

34

Recovery recommended and the

State Attorney has applied for default judgment

0

TOTAL

113

2010/11

Description

Value

R'000

Action taken

Amount recovered

R'000

Vehicle accident

11

The amount was recovered from the official

11

No show in respect of hotel accommodation

4

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

Interest charged as per a settlement agreement

144

Condoned based on an outcome of an arbitration

0

TOTAL

159

11

2011/12

Description

Value

R'000

Action taken

Amount recovered

Cancellation fee in respect of accommodation and conference fee

65

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

Rental of space not utilised

97

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

TOTAL

162

2012/13

Description

Value

R'000

Action taken

Amount recovered

R'000

Cancellation fee for hotel accommodation

11

Condoned as it was found that it was not the intention of the staff to willfully incur fruitless or wasteful expenditure

0

TOTAL

11

Reply received: June 2014

Question 106

Mr D W Macpherson (DA) to ask the Minister of Trade and Industry:

(1) What are the details of official credit cards issued to (a) him and/or (b) his staff;

(2) in respect of each credit card, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) maximum permissible value of each purchase and (ii) total credit limit of the card, (c) what are the details of permissible purchases for which the credit cards may be used and (d) may alcoholic beverages be purchased;

(3) in respect of purchases made with each credit card during the period 8 May 2014 and/or thereafter up to the latest specified date for which information is available, (a) what is the (i) name and (ii) organogram position of the user, (b) what is the (i) value of each purchase made, (ii) what are the details of each item purchased and (iii) for what purpose was each purchase made and (c) were any alcoholic beverages purchased; if so, (i) what are the (aa) details and (bb) value of these purchases and (ii) for what purpose was each purchase made? NW116E

Response:

No credit cards have been issued to any officials of the dti.

Reply received: June 2014

QUESTION FOR WRITTEN REPLY

74. Mr A R McLoughlin (DA) to ask the Minister of Trade and Industry:

(1) How many (a) international and (b) domestic flights were undertaken by (i) him and (ii) his predecessors using (aa) aircraft operated by the military, (bb) aircraft chartered by the military or (cc) commercial aircraft during the period 1 April 2013 up to the latest specified date for which information is available;

(2) in respect of each specified flight, what was the (a)(i) date and (ii) place of (aa) departure and (bb) arrival and (b)(i) total cost and (ii) breakdown of such costs? NW81E

Response:

· Ministers and Deputy Ministers may use business class travel for official purposes at the expense of their departments. Official trips include amongst others, those travelled from Pretoria to Cape Town for Parliamentary sittings and appearances, as well as international trips, which require Ministers to execute official duties.

· All flights are used for official duty and this is an enabling factor for public participation programmes of Ministers who have to meet demanding schedules.

· Members may use the South African Airforce aircraft for official purposes and for reasons including if facilities of other airlines are not cost-effective and/or readily available in a specific instance.

· Members may also use chartered aircraft for official purposes and for reasons including if the facilities of other airlines are not cost-effective and/or readily available in a specific instance.

· The Ministry (and its support staff) is responsible for determining the cost-effectiveness of all trips carried out by the Minister and Deputy Minister and must ensure that the intended journey meets the requirements of the relevant guidelines.

· Using South African Airways is the preferred option, but sometimes the department is obliged to use other service providers and change plans as circumstances arise, otherwise the most cost effective option is sought.

· Military aircraft was not utilised.

· Due to the unavailability of commercial flights at the time, one chartered flight was undertaken at a cost of R269 108.60. Minister Davies shared a chartered flight with two other Ministers to attend the World Economic Forum (WEF), Abuja Nigeria from 7-9 May 2014.

See attached link about flights: http://www.pmg.org.za/international-flights

Reply received: February 2014

QUESTION 53 FOR WRITTEN REPLY

53. Dr W G James (DA) to ask the Minister of Trade and Industry:

(1) How much does his department plan to spend on (a) advertising, (b) communication and (c) marketing between 1 January 2014 and 30 April 2014 (i) in total and (ii) as a breakdown of the amount;

(2) (a) what mediums is his department going to use in each case and (b) who is the service provider to be used;

(3) what is the main message that his department plans to communicate during this time?NW54E

The Department of Trade and Industry's (the dti's) Communication and Marketing plan is developed and approved every financial year in line with Government and the Department's planning cycle. The planning for projects that will be implemented between 1 January and 30 April began in the third quarter of the year. The planning includes consultations and approval by both internal and external stakeholders, including the Government Communication and Information System, the dti's Bid Adjudication Committee (BAC), and others. The overarching message of the dti during this period will remain one that encourages private-public partnerships and calls upon all relevant stakeholders to work collectively to grow the economy and be responsive to the plight and aspirations of South Africans.

NAME OF CAMPAIGN

EXPENDITURE (ESTIMATE)

KEY MESSAGE

PPROPOSED MEDIUM

SUGGESTED SERVICE PROVIDERS

Liquor Authority Regulations

R 600 000. 00

Practice and compliance with new Liquor Regulations

Radio, print, Outreach

SABC; The New Age, Media 24, etc

Liquor trading – Easter Weekend Campaign (Annual)

R1, 5 m

Compliance with liquor laws and responsible alcohol intake.

Radio; Print; Outdoor; Online

SABC Radio; SABC TV; Media 24; Times Media; Contact Media

Incubation Support Programme

R 400 000. 00

Programme promotion and invitation to participate

Print; Radio; Outdoor

SABC; Mail & Guardian; Media 24; Times Media; Independent Newpapers; Fikelela Outdoor Media

SA Premier Business Awards

R 300 000.00

Call for entries and profiling winners

Radio; Print and Online

Primedia; SABC; Times Media; The New Age; Mail & Guardian, etc

Informal Business Upliftment Programme

R 350 000.00

Programme promotion and invitation to participate

Print; Radio; Outdoor

Media 24; Times Media; The New Age; SABC

Consumer Rights

R 350 000.00

Educational awareness campaign on Consumer Rights

Radio and Print

SABC; Media24; Times Media; Independent Newspapers

Investment Promotion – 2nd phase

R 500 000.00

Profiling and promotion of investment incentives

Outdoor; Print; and Online

Independent; The New Age; Times Media; Mail & Guardian; Media 24; etc