Finance | PMG

2014-03-06

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Reply received: December 2014

QUESTION NUMBER: 3005 [NW3649E]

DATE OF PUBLICATION: 21 NOVEMBER 2014

3005. Mr C D Matsepe (DA) to ask the Minister of Finance:

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, the National Treasury implemented the Act; if not, when will the Act be implemented; if so, which languages have been adopted as official languages of the National Treasury?

NW3649E

REPLY:

The National Treasury is in the process of developing its official language policy in terms of Official Language Policy Act.

Reply received: December 2014

QUESTION NUMBER: 2971 [NW3615E]

DATE OF PUBLICATION: 21 NOVEMBER 2014

2971. Ms K de Kock (DA) to ask the Minister of Finance:

Whether he intends to pay bonuses to staff in the National Treasury; 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?

NW3615E

REPLY:

Yes, but it should be noted that bonuses are only awarded after the financial year ends, as it is based on performance during that financial year. Hence the process to pay bonuses for the 2014/15 financial year will only be finalized next year around June or July 2015, and it is premature to respond to actual amounts to be paid. National Treasury pays bonuses in line with the departmental and DPSA performance management system, and such amounts are budgeted for as part of the department's personnel budget. Bonuses were paid for the 2013/14 financial years' performance, amounting to R26,7 million.

Reply received: December 2014

QUESTION NUMBER: 2772 [NW3424E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2772. Mr AG Whitfield (DA) to ask the Minister of Finance:

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

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

3) whether the National Treasury 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 the National Treasury use to attend the wedding festivities and (d) who paid for the travel costs?

NW3424E

REPLY:

1) Yes.

2) No.

3) Not applicable.

Reply received: December 2014

QUESTION NUMBER: 2731 [NW3380E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2731. Mr A P van der Westhuizen (DA) to ask the Minister of Finance:

Did (a) the National Treasury 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) the National Treasury and/or (bb) any entities reporting to it?

NW3380E

REPLY:

The National Treasury and all entities reporting me did not owe any money to Gauteng municipalities at the end of the 2013-14 financial year, with the exception for DBSA.

The details of the DBSA debt are as follows;

(b) Yes

(i) City of Johannesburg (COJ)

(ii) Total amount owed as at 31/03/2014 was R301,575.00

(iii) The nature of debt was with respect to the services provided, broken down as follows; R269,153.00 with respect to rates, taxes and sanitation and R32,422.00 with respect to refuse.

(iv) The debt outstanding was current; it was paid out on the 15 April 2014.

Statements from municipalities as a matter of course are always received in arrears and usually issued at the end of the month; payments can only be effected thereafter.

(v) The money was paid out on 15 April 2014

Reply received: December 2014

QUESTION NUMBER: 2594 [NW3232E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2594. Mr M J Figg (DA) to ask the Minister of Finance:

NW3232E

REPLY:

(a), (b) and (c) NIL

Reply received: December 2014

QUESTION NUMBER: 2489 [NW3085E]

DATE OF PUBLICATION: 7 NOVEMBER 2014

2489. Dr M J Figg (DA) to ask the Minister of Finance:

With regard to the R10,4 billion over three years allocated for (a) job creation, (b) small enterprise development and (c) youth employment, which was announced by the former Minister of Finance in his budget speech in February 2011, (i) what amount has been spent to date, (ii) on what projects has the money been spent and (iii) how many jobs have (aa) directly and (bb) indirectly been created from this budget allocation to date? NW3085E

REPLY:

Jobs Fund: R9 billion

The Jobs Fund is a R9 billion employment creation programme launched by the Minister of Finance in June 2011. The fund aims to support self-sustainable job creation initiatives and improve the employment prospects of the unemployed, especially young people and women. To date, the fund has allocated an amount of R4.96 billion in grant funding on 93 approved projects. A total of 56 356 placements into current vacant positions have been created and 185 615 beneficiaries receive work-related training through projects

National Youth Development Agency: R1.2 billion

The National Youth Development Agency received allocations of R1.2 billion as a transfer payment from government as a contribution towards operations. These allocations support the NYDA in the provision of non-financial, concessionary finance services and grants to youth entrepreneurs and contribute to enhancing the youth outreach programmes, implementation of education and skills development programmes as well as the dissemination of policy information and communication of general government services affecting the targeted groups.

To date, the agency has supported 142 youth-owned enterprises with grant funding and rendered 63 834 business support services to the youth to enhance their economic participation, which has contributed to the creation of 84 495 direct jobs. The NYDA does not measure indirect jobs created from its activities.

In line with its educational and skills development, the NYDA through the Solomon Mahlangu Scholarship Fund, a partnership with the Department of Higher Education supports deserving youth by offering bursary and scholarship opportunities to undertake studies in engineering, tourism, ICT, agriculture, law and development. Through the partnership, the agency has supported 257 young people with bursaries to further their studies. The agency has also supported over 11 107 young people through the matric re-write programme.

Reply received: December 2014

QUESTION NUMBER: 2488 [NW3084E]

DATE OF PUBLICATION: 7 NOVEMBER 2014

2488. Dr M J Figg (DA) to ask the Minister of Finance:

(1) What is the current state of progress of the Jobs Fund since its inception in 2011;

(2) with regard to the target of 178 000 jobs for unemployed youth over three years, which was announced by the former Minister of Finance in his budget speech in February 2011, (a) what amount has been spent on the youth employment subsidy to date and (b) how many jobs for unemployed youth have been created to date?

NW3084E

REPLY:

(1) The Jobs Fund has completed three funding rounds. The Fund's performance from inception to date is as follows:

Table 1 JOBS FUND PROJECT PORTFOLIO PERFORMANCE INCEPTION-TO-DATE ENDING 30 SEPT 2014

INDICATORS	TOTAL APPROVED PORTFOLIO	TOTAL CONTRACTED PORTFOLIO	IMPLEMENTING PORTFOLIO
INDICATORS	TOTAL APPROVED PORTFOLIO	TOTAL CONTRACTED PORTFOLIO	ITD Targets	ITD Actuals
Number of Projects	89	75	89	59	66%
Jobs Fund Grant Value Approved	R 4.620 bn	R 3.659 bn (79%)	R 2.236 bn	R 1.483 bn	66%
Planned Contributions Leveraged Total	R 6.474 bn	R 4.283 bn (66%)	R 2.105 bn	R 1.757 bn	83%
Total Project Value	R11.094 bn	R7.941 bn (72%)	R 4.283 bn	R3.240 bn	76%
Actual Expenditure against Planned expenditure	n/a	n/a	R 3.872 bn	R 2.811 bn	73%
Permanent Jobs	154 365	100 423 (66%)	31 284	30 701	98%
Placement Target	58 783	53 462 (89%)	21 121	17 428	83%
Training Target	168 063	129 864 (74%)	65 250	75 163	115%
Average grant size per project	R 51.906 m	R 48.781 m	n/a	R26.970 m
Average grant cost per permanent job	R 29,929	R 36,431	n/a	R48,316

(2) The South African Revenue Service has made available data on the employment tax incentive up until the end of August 2014. Since the inception of the incentive on 1 January 2014 there has been R1.12bn that has been claimed by around 23 500 different employers. There are at least 209 000 employees for whom an employer has claimed the incentive.

The table below indicates the amount of the incentive that has been claimed for each month up until August 2014.

TABLE 2: AMOUNT CLAIMED THROUGH THE EMPLOYMENT TAX INCENTIVE

PERIOD	AMOUNT OF ETI CLAIMED (R million)
January 2014	51
February 2014	112
March 2014	119
April 2014	134
May 2014	146
June 2014	177
July 2014	174
August 2014	209
Total	1,122

Reply received: December 2014

QUESTION NUMBER: 2476 [NW3071E]

DATE OF PUBLICATION: 7 NOVEMBER 2014

2476. Mr J H Steenhuisen (DA) to ask the Minister of Finance:

Did the Treasury conduct an affordability assessment for the proposed nuclear energy agreement between South Africa and Russia; if not, why not; if so, what are the relevant details?

NW3071E

REPLY:

No such assessment has been necessary. There are no other details on this matter.

Reply received: December 2014

QUESTION NUMBER: 2475 [NW3069E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2475 Dr D T George (DA) to ask the Minister of Finance:

Is he aware of plans to upgrade the parliamentary precinct; if so, has the expenditure been (a) costed and (b) approved by the National Treasury?

NW3069E

REPLY:

The National Treasury has not received any formal plans or budgetary request for the upgrading of the parliamentary precinct.

Reply received: November 2014

QUESTION NUMBER: 2474 [NW3068E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2474. Dr D T George (DA) to ask the Minister of Finance:

With reference to the National Treasury's Medium Term Budget Policy Statement, what are the specific measures to be implemented to cut government spending at (a) government departments and (b) state entities?

NW3068E

REPLY:

Spending reductions will be imposed through a lowering of the baseline allocations of national departments and public entities and by lowering the provincial equitable share and provincial and local conditional grant allocations. These reductions will be achieved through:

· A freeze on nominal growth in spending on non-essential goods and services items, in other words maintaining spending on such goods and services at 2014/15 levels, or allowing only inflationary growth on some items,

· The withdrawal of funding for a large portion of vacant posts that exist in certain departments, and

· Lowering the rate of growth in transfers to public entities to be in line with inflation and to absorb some of the cash reserves accumulated in public entities.

The same principles will be applied to identify spending reductions within public entities.

Further details on the baseline reductions will be published in the 2015 Budget.

Reply received: December 2014

QUESTION NUMBER: 2450 [NW3043E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2450 Ms A Steyn (DA) to ask the Minister of Finance:

How many work days has the National Treasury lost to (a) sick leave and (b) strike action in the (i) 2011-12, (ii) 2012-13 and (iii) 2013-14 financial years? NW3043E

REPLY:

National Treasury has recorded sick leave and strike action days as per the table below:

Financial Year	a) Sick Leave	b) Strike action
i) 2011-12	5,919 days	0 days
ii) 2012-13	6,087 days	0 days
iii) 2013-14	7,440 days	0 days

Reply received: December 2014

QUESTION NUMBER: 2417 [NW3009E]

DATE OF PUBLICATION: 14 NOVEMBER 2014

2417 Mr D W Macpherson (DA) to ask the Minister of Finance:

(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?

NW3009E

NOTE 1 – SARS

(a) (i)(ii)(iii) SARS is a Schedule 3 entity but does not have a Board of Directors. There are however 2 Statutory Committees:

· The Human Resources Committee which is established in terms of Part 3, Section 11 (1) and (2) of the SARS Act (Act No 34 of 1997), appointed by the Minister of Finance as an advisory committee. All members of the Committee are external members and are not employed by SARS. Committee members are remunerated in terms of the Treasury Guidelines.

· The Audit Committee which is established by the SARS Commissioner in accordance with section 27.1.1 of the Treasury Regulations. All members of the Committee are external members and are not employed by SARS. Committee members are remunerated in terms of the Treasury Guidelines.

In addition, there is also a Schedule 3 wholly owned subsidiary, Interfront SOC Ltd does have a Board of Directors. Interfront provides technology solutions focused on Customs and Border Management.

Remuneration paid in terms of the Human Resources Committee is:

(aa) 2011/2012: R39 705.78

(bb) 2012/2013: R13 926.81

(cc) 2013/2014: R0.00

Remuneration paid in terms of the Audit Committee is:

(aa) 2011/2012: R33 188.47

(bb) 2012/2013: R21 546.04

(cc) 2013/2014: R17 221.10

Remuneration paid in terms of the Interfront board is:

(i) (aa) 0, (bb) 0, (cc) 0

(ii) (aa) R25 364, (bb) R19 907, (cc) R22 536

(iii) (aa) R4 626 040, (bb) R5 717 708, (cc) 4 779 586

It should be noted that Executive Directors (Managing Director, Operations Director and Financial Director) – includes salary, bonus payments, allowance (including leave payments) as well as contributions to medial aid and pension.

No fees or retainers are payable to the non-executive directors who are in the employment of the shareholder.

The Chairperson of the Interfront Board who is also an independent non-executive director, as well as a member of the Remuneration, Social and Ethics Committee receives remuneration as Chairperson and as a member of the Committee. National Treasury evaluated the remuneration level for

Interfront Board members and approval was granted by the Minister of Finance for the remuneration payable to the Chairperson.

(b) As stated above SARS does not have a Board of Directors. The number of Human Resources Committee meetings held are 4 in 11/12, 1 in 12/13 and 0 in 13/14. The number of Audit Committee meetings held are 3 in 11/12, 4 in 12/13 and 4 in 13/14.

The number of Interfront board meetings held are 4 in 11/12, 3 in 12/13 and 4 in 13/14.

Reply received: December 2014

QUESTION NUMBER: 2324 [NW2970E]

DATE OF PUBLICATION: 07 NOVEMBER 2014

2324. Mr W Madisha (COPE) to ask the Minister of Finance:

Whether with the support of Cabinet he has put any measures in place to prevent government officials and those in charge of public entities from awarding themselves (a) multiple or huge salary increases as happened with the Chief Finance Officer of the South African Broadcasting Corporation which the Public Protector found to have been irregular and (b) bonuses in the face of disastrous financial performance by the respective public entities, (c) any other benefit(s) which undermine government's expenditure savings measures; if not why not, if so what measures?

NW2970E

REPLY:

a) The Minister of Finance has remuneration-related responsibilities in respect of a relatively few public entities i.e. those public entities for which he exercises Executive Authority over. The Minister of Finance is not the Executive Authority of the South African Broadcasting Corporation (SABC) and for this reason; has not put any measures in place to determine the remuneration levels of officials (including the Chief Financial Officer) at the SABC.

b) Cabinet has expressed its concern about spiraling executive remuneration both in the private and public sectors. Guidelines have been issued; for example the remunerative allowance for public office bearers of certain statutory and other institutions and the State Owned Enterprise Remuneration Guidelines. These are, however, not strictly adhered to in all cases (as they are guidelines rather than prescripts). Generally, responsibility for setting the actual level of remuneration and bonuses is the responsibility of the Board (Accounting Authority) of a public entity.

c) A mandate committee consisting of the different Ministers from the various sectors co-chaired by the Minister for Public Service and Administration (DPSA) and the Minister of Finance, meets regularly to consider proposals for the adjustment of remuneration levels of public service officials. In this meeting the Minister of Finance ensures that mandates given are affordable and sustainable. Changes in the Consumer Price Index provide the basis for increases in salaries. The public service implements a performance management system which regulates the awarding of bonuses to public servants. Each department is required to conclude performance agreements with employees for each financial year. Performance evaluations are used to determine whether objectives set at the beginning of the year have been achieved.

Public corporations have Remuneration Committees, whose responsibility it is to recommend compensation levels of executives and other officials as well as bonuses which are linked to performance agreements. Remuneration practices vary across different public entities depending inter alia on their founding legislation. In general it is the Executive Authority for a public entity/ (public corporation) who has responsibility for approving the remuneration policy. Approval of the remuneration policy does not necessarily mean that the Executive Authority is then required to approve the actual level of remuneration and bonuses of the officials at the public entity.

d) Benefits in addition to basic salary are also governed by the provisions as set out in (b) above.

Reply received: December 2014

QUESTION NUMBER: 2323 [NW2906E]

DATE OF PUBLICATION: 07 NOVEMBER 2014

2323. Mr M Lekota (Cope) to ask the Minister of Finance:

Whether government (a) paid for any short term debts that were due for payment via new long term debt to meet the current obligation, (b) made sufficient provisions to meet the bunched-up debt payments that will be due in the next three years without seeking an extension of such debt and (c) put any measures and controls in place to ensure that the prevalence of futile and fruitless expenditure was brought to a complete and immediate halt during the period 1 January 2009 up to the latest specific date for which information is available; if not why not, in each case what are the relevant details in each case?

NW2906E

REPLY:

a) Yes

b) Yes

c) Measures and controls are in place to identify and respond to fruitless and wasteful expenditure. The Public Finance Management Act (1999) and its accompanying Treasury Regulations provide a framework for responding to such expenditure. The accounting officer of each department is responsible for the quality of all departmental spending. Fruitless and wasteful expenditure is reported in departmental annual financial statements and audited by the Auditor-General. Parliamentary Committees also consider the audited findings presented through departmental annual financial statements and consider in what context the actions or omissions of an accounting officer generated fruitless and wasteful expenditure. Parliamentary Committees then utilise this information when tabling their finding and recommendations in respect of individual departments.

Reply received: November 2014

QUESTION NUMBER: 2291 [NW2849E]

DATE OF PUBLICATION: 31 OCTOBER 2014

2291. Mr D C Ross (DA) to ask the Minister of Finance:

Regarding the current growth rate of 1.4%, what proactive steps will the National Treasury take to address the state of economic growth, in particular with regard to small businesses?

NW2849E

REPLY:

The National Treasury's Medium Term Budget Policy Statement provides a roadmap to safeguard public finances, sustaining the space for spending infrastructure, skills and health. These steps will support growth more broadly in the economy.

National Treasury is not directly responsible for SMME growth but supports responsible departments by allocating funding where appropriate, and implementing legislation as well as tax incentives.

A number of measures to support small business have been introduced in the Taxation Laws Amendment Bill 2014. These include

· Making the Venture Capital Company regime more attractive by making tax deductions for investing in Venture Capital Company's permanent and increasing the asset limits for qualifying companies (section 12j of the Income Tax Act);

· Making grants to small businesses tax free, regardless of their source; and

· Providing tax relief to entities that provide grant funding to small businesses through the newly created section 30C of the Income Tax Act.

· Providing research and development tax breaks (section 11d of the Income Tax Act)

The Preferential Procurement Policy Framework Act (PPPFA) also supports small business.

Over the last three years funding to agencies that support SMME development has grown by 12.7 per cent per annum. National Treasury will continue to provide support to these schemes over the Medium Term Expenditure Framework.

Below are some examples of funding for major SMME orientated programmes:

·SMME development incentives - such as the Manufacturing competitiveness enhancement programme, agricultural micro loans or the jobs fund which provide some support for SMMEs;

· Agencies - such as the Small Enterprise Finance Agency (SEFA), Small Enterprise Development Agency (SEDA) and the Black Business Supplier development Programme and Co-operatives Incentive Scheme;

· Regulation or licensing related agencies - such as the Competition Commission, Companies and intellectual property registration office (CIPRO) and South African Bureau of Standards.

This list is not exhaustive as there are many other programmes across many departments which either directly or indirectly support SMMEs

Reply received: December 2014

QUESTION NUMBER: 2290 [NW2848E]

DATE OF PUBLICATION: 31 OCTOBER 2014

2290. Mr D C Ross (DA) to ask the Minister of Finance:

(a) What is the detailed plan with regard to his proposition of restructuring state-owned enterprises (SOEs) such as Eskom and the SA Airways and (b) will this include (i) full or (iii) partial privatisations of the SOEs?

NW2848E

REPLY:

a) Eskom: As part of the government approved package to ensure Eskom's financial sustainability so as to ensure energy security, Eskom will be required to improve its efficiency and raise additional debt. Eskom has developed a business productivity improvement programme which is being implemented with the objective of reducing costs. Implementation will be monitored by government through the Inter-ministerial Committee (IMC) comprising of the Ministers of Energy, Public Enterprises and Finance and supported by an Inter-departmental task team (IDTT) comprising of representatives from these departments.

SAA: The Minister of Finance and Minister of Public Enterprises have agreed that decisive steps must be taken to ensure that SAA is placed on path to financial sustainability. Steps are being taken with the aim of creating stability in the Board. SAA is required to appoint a turnaround specialist to diagnose challenges hindering the full implementation of the company's Long Term Turnaround Strategy (LTTS), refine the LTTS, and support the airline with implementation thereof. The Ministers will be supported by an IDTT comprising of representatives from National Treasury and the Department of Public Enterprises that will work closely with SAA to oversee the process and swiftly resolving outstanding policy issues to support the airline's recovery.

For additional information, the question should be referred to the Minister of Public Enterprises

b) (i) No

(iii) In the case of SAA, consideration will be given to involving a strategic equity investor alongside government. A strategic equity investor could potentially bring improved financial discipline, commercial and technical expertise, strategic relationships and capital required to turnaround the performance of the airline to avoid it being a drain on tax payers.

Reply received: November 2014

QUESTION NUMBER: 2289 [NW2847E]

DATE OF PUBLICATION: 31 OCTOBER 2014

2289. Mr D C Ross (DA) to ask the Minister of Finance:

(1) How will the National Treasury raise R27 billion over the next two years through additional tax revenue as he announced in his Medium Term Budget Policy Statement;

(2) did the National Treasury do any impact assessments on the feasibility of his undertaking in particular with regard to the effect it has on unemployment; if not, (a) why not, (b) when will such assessments be done; if so, what are the detailed findings of these assessments

(3) will this additional tax revenue be generated through (a) value-added tax, (b) income tax and (c) corporate tax?

NW2847E

REPLY:

1. The Minister of Finance will make a formal announcement of possible source to raise additional tax revenues in the 2015 Budget. It will be inappropriate to make any such announcements before the Budget.

2. Preparations for the 2015 Budget is currently underway and these preparations include assessments of the impact of possible tax reforms.

3. See response to question 1.

Reply received: December 2014

QUESTION NUMBER: 2280 [NW2830E]

DATE OF PUBLICATION: 31 OCTOBER 2014

2280. Ms D Carter (Cope) to ask the Minister of Finance:

Subsequent to affixing his signature on the document giving the go ahead to the Passenger Rail Agency of South Africa to acquire 3600 vehicles in its Rolling Stock Programme, what practical steps has the National Treasury taken to ensure that (a) the Public Finance Management Act, Act 1 of 1999, will be strictly adhered to in all aspects of the procurement at all times without exception, (b) transparency and accountability will prevail, (c) the goal of creating 65 000 jobs is going to be incremental and for real, (d) financial controls are going to be in place to ensure cost overruns will not occur and (e) the train manufacturing will indeed take place substantially; if not, why not; if so, what are the details?

NW2830E

REPLY:

The National Treasury always takes steps to ensure that the PFMA will be strictly adhered to at all times including in terms of procurement. It is also the responsibility of every Accounting Officer to do this. In addition, the National Treasury has taken the following steps in regard to this matter:

a) Allocations in the budget towards PRASA will be specifically and exclusively earmarked towards the new rolling stock procurement programme. In addition, other capital and operational expenditure will also be earmarked for signalling, rolling stock upgrades for Metrorail and Mainline services.

b) Allocating specific funds improves the transparency and accountability of large projects, in that it allows for reporting on specific allocations on a monthly basis as required by the PFMA to the Minister of Transport.

c) To support monitoring, the National Treasury developed reporting templates for public entities to report on both financial and non-financial performance to the Treasury on a quarterly basis. This project reporting allows for social objectives to be reported on.

d) To address the threat of over-expenditure, the approval as required in Section 66 of the PFMA, sets a limit to total expenditure on this project of R53 billion in 2014 prices. Although this nominal amount will change with CPI and the forex risk taken by government, the total allocation for the programme will be restricted to this amount.

e) The train investment will be substantial, despite the funding limit and there will be significant replacement of the exiting operating rolling stock replaced. In addition, Cabinet agreed that this will be the first round of a 10-year procurement phase and future phases will see all rolling stock replaced with additional stock for improved and expanded services.

Reply received: November 2014

QUESTION NUMBER: 2240 [NW2780E]

DATE OF PUBLICATION: 31 OCTOBER 2014

2240. Mr D C Ross (DA) to ask the Minister of Finance:

With regard to the National Treasury's Medium Term Budget Policy Statement delivered on 22 October 2014, what detailed plan does he have to ensure the significant reduction of (a) wasteful expenditure and (b) corruption throughout the departments? NW2784E

REPLY:

Government recognizes that there is significant room for improving the cost effectiveness of service delivery by eliminating wasteful spending and corruption, and is implementing a variety of measures to achieve this.

a) In order to ensure that wasteful expenditure is reduced significantly, cost-containment measures have been issued through a National Treasury instruction in January 2014. Departments will be audited on these measures in the preparation of annual financial statements. In addition, in line with the approach to be taken by national government to meeting lower spending ceilings in 2015/16 and 2016/17, government departments will reduce non-essential spending. This will include:

· Freezing budgets of non-essential goods and services at 2014/15 levels.

· Withdrawing funding for posts that have been vacant for some time.

· Reducing the rate of growth of transfers to public entities, particularly those with cash reserves.

b) Government will seek to reduce corruption through increased vigilance and enforcement, partly to be achieved by increasing the resources of the Public Protector, the Financial Intelligence Centre and the Directorate of Priority Crimes.

The newly-established Office of the Chief Procurement Officer will play a critical role in reducing the scope for both wasteful spending and corruption by designing and implementing new procurement rules for the public service, including the centralization of the procurement of a variety of standard goods and services used by departments across government. This will ensure greater purchasing power and less scope for unnecessarily inflated prices.

Reply received: November 2014

QUESTION NUMBER: 2139 [NW2610E]

DATE OF PUBLICATION: 24 OCTOBER 2014

2139. Mr T Z Hadebe (DA) to ask the Minister of Finance:

(a) What amount of money is collected annually from the levy that is charged on plastic shopping bags and (b) what is done with the money generated from this levy? NW2610E

REPLY:

a. In summary, my response is as follows: The annual revenues generated from the levy on plastic shopping bags since the introduction of the scheme is as indicated in Table 1 below:

Table 1: Plastic bag levy revenue collected and recycling funds allocated

Financial Year	Levy collected (R '000)	Funds allocated to DEA (R '000)
2004/05	41 214	12 000
2005/06	61 385	12 000
2006/07	75 129	-
2007/08	86 315	20 000
2008/09	78 563	20 000
2009/10	110 510	29 385
2010/11	150 315	23 500
2011/12	160 621	16 050
2012/13	152 368	-
2013/14	169 243	40 410
2014/15 (Levy revenue: April -Aug)	42 334	42 835
TOTAL	1 127 563	216 180

Source: SARS revenue data and National Treasury Estimates of National Expenditure

(a) All money received by the national government (included all tax revenues collected) must be deposited into the National Revenue Fund, as required by section 213 (1) of the Constitution. The levy on plastic shopping bags was introduced in 2004 as a mechanism to manage the problem of plastic bags which ended up as wind-blown litter on fences, trees, the open veld or in waste facilities via normal refuse collection systems.

Given that the National Revenue Fund is a general fund from which appropriations are made, and there is no earmarking of funds collected. Since 2004/05 a total of just over R216 million in funds been appropriated from the National Revenue Fund to the Department of Environmental Affairs (DEA) for recycling initiatives. Initially a non-profit section 21 company, Buyisa-e-Bag was established to promote plastic bag recycling. Buyisa-e-Bag's main objectives were to promote waste minimisation, awareness creation in the plastics industry, expand collector networks and support rural collection through small, and medium sized enterprises, job creation and capacity building. The company was funded through transfers from the fiscus via the DEA on the basis of approved business plans that were submitted to the department.

Following a Departmental Review in 2010/11, Buyisa-e-Bag was wound up and the functions of the company were absorbed into the DEA under the Environmental Sector Programmes and Projects Programme. The DEA 2012 annual report provided details on the absorption of Buyisa-e-Bag's functions and the reprioritising of funding following the closure of the company are shown in Table 2 below.

Table 2: Absorption of Buyisa-e-Bag and Reprioritisation of Allocations

R'000	2012/13	2013/14	2014/15
Allocation to Buyisa-e-Bag over the MTEF	36 200	40 410	42 431
Absorption into DEA:
Programme 6: Environmental Programmes
Compensation of Employees	4 650	4 883	5 127
Operational expenditures	1 690	3 035	2 784
Transfer payments for projects	19 860	21 992	23 495

Programme 7: Chemicals and Waste Management: National Regulator for Compulsory Specifications	10 000	10 500	11 025
Total	36 200	40 410	42 431

Source: DEA, Email confirmation 7 May 2013

The termination process involved the deregistering of Buyisa-e-Bag, absorption of employees into the DEA personnel structure and continued financial support for projects. This entailed the absorption of Buyisa-e-Bag into Programme 6 for Environmental Programmes and allocation of a portion of the funding to the National Regulator for Compulsory Specifications (NRCS) for implementation of the plastic bags regulations.

Overall, the interventions helped to reduce the use of plastic bags (from 10-billion prior to these interventions down to 4-billion plastic shopping bags per year - an estimated reduction of between 45 – 75% plastic bag use) a year after the interventions were introduced.

Reply received: November 2014

QUESTION NUMBER: 2129 [NW2800E]
DATE OF PUBLICATION: 24 OCTOBER 2014
2129. Dr M J Figg (DA) to ask the Minister of Finance:

In light of the municipal audit results for the 2013-14 financial year in which only 9% of municipalities and municipal entities achieved clean audits, what specific action is he taking to ensure that problems highlighted in the audit results for the 2013-14 financial year do not reoccur in the 2014-15 financial year?

REPLY:

The Honorable Member will recall the clarion call by the Honorable President of the Republic of South Africa at the Local Government Summit hosted in Midrand on 18 September 2014, that we should focus our combined efforts on getting the basics right in municipalities, this includes our collective efforts to assist local government address the poor audit outcomes.

The municipal audit results for the 201314 municipal financial par have not been released as the audit process is still underway and concludes at the end of November 2014. The audit results that were released recently by the AGSA for the MFMA audit cycle relates to the 2012/13 financial year.

Various initiatives have been instituted to assist municipalities with the ongoing audit outcome. These build on previous work undertaken at municipalities, in collaboration with the national Department of Cooperative Governance and Traditional Affairs, Provincial Treasuries and Local Government Departments. The Back-to-Basics strategy of government focusses attention on improving service delivery but is supported by improvements to governance and financial management.

National and Provincial Treasuries are working jointly with DCOGs and SALGA to strengthen monitoring, reporting and support measures with common objectives of improving governance, financial management and service delivery. A number of forums and structures have been initiated to take forward these initiatives, including feedback session at regular municipal CFOs Forums and coordination of actions through the MFMA Quarterly meetings hosted nationally.

The initiatives implemented will only prove successful if they are accompanied by the required commitment and willingness of municipal council leadership, municipal managers,

The initiatives implemented will only prove successful if they are accompanied by the required commitment and willingness of municipal council leadership, municipal managers, chief finance officials, human resource managers and other municipal officials to take timely decisions to implement the new measures being introduced.

Reply received: November 2014

QUESTION NUMBER: 2060 [NW2527E]

DATE OF PUBLICATION: 24 OCTOBER 2014

2060. Mrs Z B N Balindlela (DA) to ask the Minister of Finance:

(a) How many copies of The National Treasury'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?

NW2527E

REPLY:

(a) How many copies of the annual report were produced for:

(b)(i) At what cost were these reports produced:

(b)(ii) To whom were these reports circulated:

(i) 2012-13

1 000

R165 070.00

· National Departments (Ministers, Deputy Ministers, Directors-General and Chief Financial Officers)

· Parliamentarians

· Libraries

· Internal Stakeholders

Reply received: October 2014

QUESTION NUMBER 2001 [NW2385E]

DATE OF PUBLICATION: 17 October 2014

2001. Mr A M Figlan (DA) to ask the Minister of Finance:

(a) What informed the decision to reduce the number of airports that have custom services, (b) how many airports in each province no longer have custom services and (c) by what number was the staff reduced at each of the airports?

NW2385E

REPLY:

a) The SARS Commissioner may in terms of the Customs and Excise Act 91 of 1964 prescribe places to be customs and excise airports through which goods may be imported or exported. The discretion of the Commissioner in designating airports as customs and excise airports is however limited to those airports designated by Cabinet as international airports.

In 1997 Cabinet reduced the number of international airports in order to facilitate improvements to border control. Border control management was enhanced by concentrating the scarce resources of the State to a limited number of ports of entry and thus being able to better manage the risks invovled. Inter-governmental consultations between government departments having a border control mandate being the Department of Transport, SARS, South African Police Services, Department of Home Affairs and the South African National Defence Force preceded Cabinets decision.

The ten international airports prescribed as customs and excise airports are Braam Fisher International Airport, Cape Town International Airport, King Shaka International Airport, OR Tambo International Airport, Kruger Mpumalanga International Airport, Lanseria International Airport, Pilansberg International Airport, Polokwane International Airport, Port Elizabeth International Airports, Upington International Airport.

It should be noted that aircraft pilots requiring clearance at the above-mentioned airports (except OR Tambo International Airport, and in respect of scheduled international flights at Cape Town and King Shaka International Airports) at which no resident customs and excise officers are stationed, are required to give at least 12 hours' notice of the time and date of their arrival or departure to the customs and excise office at the places mentioned, in order that arrangements may be made for the attendance of the necessary officers.

b) The Grand Central, Messina, Komatipoort, Nelspruit, Rand, Wonderboom, Richards Bay and Virginia airports no longer have customs services in line with Cabinet's decision to limit the international airports to ten.

c) The SARS Customs staff complement were not reduced given that the service rendered by Customs to these airports were on an ad hoc basis where staff were temporarily deployed to that airport from the nearest Customs and Excise office to clear the flight. No permanent Customs presence was deployed at these airports.

Reply received: November 2014

QUESTION NUMBER: 1995 NW2379E)

DATE OF PUBLICATION: 17 OCTOBER 2014

3995. Dr M J Figg (DA) to ask the Minister of Finance:

(1) What are the minimum qualification requirements for chief financial officers (CFOs) in each of the government's national departments;

(2) whether all current CFOs in all national departments possess the required qualifications; If not, why not?
NW2379E
REPLY

(1) Treasury Regulation 2.1 requires accounting officers to appoint chief financial officers as part of the senior management team to discharge some of his or her duties, as prescribed in Chapter 5, Part 2 of the Public Finance Management Act, (PFMA) 1999, (Act k 1 of 1999). These duties relate to the effective financial management d the institution, including exercising of sound budgeting and budgetary control practices; the operation of internal controls and the timely production of financial report.

Considering the above, it is therefore essential that a CFO possesses formal qualifications which include subjects related to Financial Accounting (for the timely production of accurate and complete financial information). Management Accounting (for sound budgeting and expenditure monitoring practices), Internal Audit (for the operation of sound internal controls) and Supply Chain Management (for the efficient procurement of goods, works and/or services).

(2) During the 2012/2013 financial year, the National Treasury conducted a survey to determine the qualifications of chief financial officers in the 40 national departments that were in existence at the time. The survey revealed that 30 chief financial officers (representing 75% of departments) were in possession of relevant finance related qualifications (Degree or Diploma), two (2) chief financial officers (representing 5% of departments) had either a Grade 12 or a non-finance related qualification whilst eight (8) chief financial officers (representing 20% of departments) did not provide information towards the survey in relation to their educational qualifications.

Considering that the appointment of a chief financial officer in a department is the responsibility of the relevant accounting officer. the National Treasury is not in a position to provide reasons why the abovementioned two (2) chief financial officers were appointed without having the relevant finance related qualifications.

Reply received: December 2014

QUESTION NUMBER: 1994 [NW2378E]

DATE OF PUBLICATION: 17 OCTOBER 2014

1994. Dr M J Figg (DA) to ask the Minister of Finance:

(a) How many invoices for each department (i) have been paid and (ii) have not been paid within the prescribed 30-day period since 1 April 2014 and (b) where invoices were not paid in the prescribed 30-day period, what were the reasons in each case respectively?

NW2378E

REPLY

(a) The responsibility of processing invoices lies with the Accounting Officers of each department. The question should be directed to each Accounting Officer or Executing Authority. However, the Office of the Chief Procurement Officer has created an avenue for suppliers to report instances of non-payment within the specified period.

(b) We are unable to answer regarding the reasons as to why specific departments do not pay within the prescribed 30-day period. Where the Office of the Chief Procurement Officer has been approached to intervene, the reasons given for non-payment range from paperwork being misplaced, no reasons given for non-payment, poor cash-flow management (meaning the department cannot pay suppliers); disputes on supplier performance or invoices that are mentioned when the Office of the Chief Procurement Officer intervenes.

Reply received: December 2014

QUESTION NUMBER: 1931 [NW2313E]

DATE OF PUBLICATION: 17 OCTOBER 2014

1931. Mr D C Ross (DA) to ask the Minister of Finance:

Has the National Treasury considered the cost to the economy of the proposed procurement of 9600MW of nuclear energy; if so, (a) how will the construction of the new nuclear facilities be financed and (b) what are the further relevant details?

NW2313E

REPLY:

(a) and (b) Financing of nuclear programme: As part of a technical committee supporting the National Nuclear Energy Executive Coordination Council (NNEECC) chaired by the President, studies on the procurement, ownership and financing of nuclear programmes.

This analysis will take into account the need to ensure the sustainability of Eskom and affordability to electricity users.

The Constitution requires that any organ of state contracting for goods or services must do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.

Reply received: November 2014

QUESTION NUMBER: 1906 [NW2288E]

DATE OF PUBLICATION: 17 OCTOBER 2014

1906. Mr S J F Marais (DA) to ask the Minister of Finance:

(1) With regard to the R4,96 billion spent by the Jobs Fund since its establishment in 2011, (a) how much has been spent in each economic sector respectively, (b) in each case, what are the details of each project on which the money was spent, (c) how many sustainable jobs were (i) created and (ii) preserved over this period and (d) how many jobs were lost in each sector in this period;

(2) with regard to the job opportunities created by the Jobs Fund, (a) what are the (i) full details and (ii) nature of these opportunities and (b) in which sectors were each of these job opportunities created?

NW2288E

REPLY:

The Jobs Fund has been designed to overcome barriers to job creation by providing public funding through four "funding windows" – Enterprise Development; Infrastructure Investment; Support for Work Seekers and Institutional Capacity Building. The Jobs Fund operates as a challenge fund – it competitively allocates funds to projects that catalyse innovation and investment in activities which directly contribute to sustainable job creation initiatives, as well as long term employment creation. In this way the Jobs Fund programme differs from other government job creation initiatives which primarily focus on the creation of short term jobs.

The fund attracts project applications by issuing an open call for proposals and thereafter competitively assessing the merits of the proposals. The intention is that a number of calls for proposals will be issued over the duration of the Fund (three years have been allocated to successful applicants to implement their projects). The period of implementation for individual projects will range between April 2012 and March 2016.

From inception to date the Fund has processed 8473 applications; approved 86 projects (7 projects withdrawn after approval across the 3 funding rounds); allocated R4.435 billion to these projects; and potentially leveraged an additional R6.567 billion from project partners toward job creation.

By the end of September 2014, R1.485 billion against a target of R2.162 billion (69%) in grants had been disbursed

(1a). R4.435 billion has been allocated to projects as per the sector breakdown below. The reason for discrepancy is the recent project withdrawals.

Sector	Grants Allocated
Agriculture, forestry and fishing	810 222 765.00
Community, social and personal services	407 700 484.00
Electricity, gas and water	20 943 060.00
Finance, real estate and business services	967 389 238.00
Information, communication and technology (ICT)	408 537 250.00
Manufacturing	415 328 778.00
Mining and quarrying	40 008 000.00
Tourism and hospitality	48 150 293.00
Training, Capacity Building & Education	1 233 389 999.00
Transport and storage	48 000 000.00
Wholesale and retail trade	35 580 460.00
Grand Total	4 435 250 327.00

(1b). The attached annexure1 provides a description of the projects that have been allocated Grant Funding.

Sector	Total Contracted	Inception to Date Planned	Inception to Date Actual
Agriculture, forestry and fishing	42 799	16 207	18 160
Community, social and personal services	400	170	273
Electricity, gas and water	230	-	-
Finance, real estate and business services	14 881	2 236	2 807
Information, communication and technology (ICT)	5 626	1 108	954
Manufacturing	707	360	512
Mining and quarrying	-	-	-
Tourism and hospitality	602	110	110
Training, Capacity Building & Education	27 015	10 672	7 478
Transport and storage	367	271	282
Wholesale and retail trade	372	150	125
Grand Total	92 999	31 284	30 701

(1(c)(i). The table below depicts the number of New Jobs per sector that the Jobs Fund has contracted with Jobs Fund Partners to date.

(1)(c)(ii). The number of preserved jobs is not a Jobs Fund indicator and therefore this information is not tracked.

(1d). The Jobs Fund does not track this information.

(2). The Jobs Fund indicators include:

(a)The number of New Jobs created defined as "a job that has been created as a result of the project, for which a permanent contract has been signed. The new job opportunity is expected to exist beyond the grant funding period and is not maintained or paid using Jobs Fund grant funds".

(b) The number of beneficiaries placed in permanent positions with project partners defined as "participants/beneficiaries that have successfully completed the work seekers training and/or mentorship programmes as well as (where applicable) the time bound internship and have been employed by one of the project partners.

(c) The number of beneficiaries employed in permanent positions beyond project partners defined as "participants/beneficiaries that have successfully completed the work seekers training and/or mentorship programmes as well as (where applicable) the time bound internship and have found employment with companies/enterprises other than the project partners.

The table below depicts a breakdown of the number of placements contracted for with project partners and beyond per sector.

JOB PLACEMENTS CONTRACTED BY SECTOR OVER THE LIFE OF THE PROJECT
Sector	Total Contracted	Inception to Date Planned	Inception to Date Actual
Agriculture, forestry and fishing	43	34	36
Community, social and personal services	3 565	1 260	1 339
Electricity, gas and water	70	-	-
Finance, real estate and business services	2 370	680	144
Information, communication and technology (ICT)	4 485	871	465
Manufacturing	5 322	576	116
Mining and quarrying	10 512	7 008	3 753
Tourism and hospitality	-	-	-
Training, Capacity Building & Education	23 695	10 692	11 575
Transport and storage	-	-	-
Wholesale and retail trade	-	-	-
Grand Total	50 062	21 121	17 428

Reply received: October 2014

QUESTION NUMBER: 1831 [NW2204E]

DATE OF PUBLICATION: 26 SEPTEMBER 2014

1831. Mr Z N Mbhele (DA) to ask the Minister of Finance:

Whether the National Treasury commissioned an audit into alleged corruption in the KwaZulu-Natal's Department of Social Development involving a certain person (name furnished); if not, why not; if so, (a) what is the name of the company that conducted the audit, (b) what is the title of the audit report, (c) what were the terms of reference of the audit, (d) when was the report completed and (e) what were the main (i) findings and (ii) recommendations of the audit?

NW2204E

REPLY:

National Treasury did not commission any audit into alleged corruption in the Department of Social Development – KwaZulu-Natal involving the individual whose name was furnished. This matter was not brought to the attention of the National Treasury for consideration. It is the responsibility of the department concerned to take corrective action, including commissioning of an audit when an allegation of corruption is reported or uncovered.

If the Honourable Member has any information on allegations relating to this matter, I would encourage him to pass the information onto the relevant law enforcement agencies so that the matter can be investigated.

Reply received: December 2014

QUESTION NUMBER: 1740 [NW2099E]

DATE OF PUBLICATION: 26 SEPTEMBER 2014

1740. Mr M G P Lekota (Cope) to ask the Minister of Finance:

(1) Whether he had unequivocally and consistently demanded that section 217(1) of the Constitution of the Republic of South Africa, 1996, be implemented by the national, provincial, and local sphere of government so that the procurement of goods or services takes place in accordance with a system which is fair, equitable, transparent, competitive and cost effective; if not, why not; if so,

Yes the National Treasury and I unequivocally and consistently implement section 217(1) of the Constitution. National Treasury is consistently offering support to all spheres of government through advice, interactions on various platforms such as SCM and CFO Forums. Provincial Treasuries are also offering their outmost best support to all provincial departments and provincial public entities, whilst the Municipal Finance Management Unit within National Treasury also facilitates sessions with local spheres to ensure that the section 217 of the constitution is uniformly and consistently applied throughout the municipalities nationally.

(2) (a) National Treasury continues to encourage and enforce compliance to the best of its ability in terms of section 217 of the Constitution. A governance, Monitoring and Compliance division within the OCPO has been established to ensure that the SCM monitoring framework is adhered to in ensuring compliance to SCM prescripts.

(b) National Treasury administers a list of tender defaulters and a list of restricted suppliers. Where the transgressions result from employees of the state, the affected institution is advised to recover the losses incurred from any transaction from the said employee and/or institute disciplinary processes against the employee. These disciplinary cases or records thereof are reported to the Public Service Commission by instituting institutions. If appropriate, the prosecuting authorities are also informed.

Reply received: October 2014

QUESTION NUMBER: 1697 [NW2059E]

DATE OF PUBLICATION: 19 SEPTEMBER 2014

1697. Dr M J Figg (DA) to ask the Minister of Finance:

(1) What is the total cost of audit fees paid by the National Treasury to independent auditors (a) in the (i) 2012-13 and (ii) 2013-14 financial years and (b) since 1 April 2014;

(2) whether this auditing could ordinarily have been performed by the office of the Auditor-General; if not, why not; if so, why did the National Treasury outsource this auditing to independent auditors instead of it being performed by the office of the Auditor-General?

NW2059E

REPLY:

(1) (a)(i) R11,035,655.78

(1) (a)(ii) R11,739,656.57

(1) (b) R 5,713,176.04

(2) The regularity audit of the National Treasury is performed by the Auditor-General South Africa.

Reply received: November 2014

QUESTION NUMBER: 1624 [NW1985E]

DATE OF PUBLICATION: 19 SEPTEMBER 2014

1624. Mr M J Figg (DA) to ask the Minister of Finance:

(a) Which posts in the National Treasury 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?

NW1985E

REPLY:

The posts listed below are vacant post as at 31 August 2014 excluding posts where offers have been accepted with assumption of duty pending: See the link for posts: http://www.pmg.org.za/rnw1624-141024posts

Reply received: October 2014

QUESTION NUMBER: 1592 [NW1709E]

DATE OF PUBLICATION: 19 SEPTEMBER 2014

1592. Mr M G P Lekota (Cope) to ask the Minister of Finance:

(1) Whether, in support of the constitutional imperative that the Government must operate transparently and accountably, the National Treasury intends to establish a digital national debt clock which could be accessed by citizens on the internet to ascertain the latest and most up to date information on (a) total national revenue, (b) budget expenditure, (c) gross loan debt, (d) cost of servicing the debt and (e) gross debt as a percentage of GDP; if not, why not; if so,

(2) whether he will make a statement on the matter?

NW1709E

REPLY:

The Honorable Member is referred to the response sent to him on the 10 September 2013 and the Parliamentary Question 2790 submitted on 25 November 2013.

Reply received: October 2014

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1569. Dr M J Figg (DA) to ask the Minister of Finance:

With regard to the possibility that the credit rating of South African banks will be further downgraded and subsequently making it more difficult for South Africa to fund its increasing deficit, are there any contingency plans in place if this happens; if not, why not; if so, what are the plans?

NW1939E

REPLY:

Government is of the view that a further downgrade to the banking sector is highly unlikely. Despite Moody's downgrade of the major South African banks, the two other largest ratings agencies (Fitch and S&P) have emphatically stated their positive assessment of the financial sector in South Africa. In addition, a recent IMF evaluation of the financial sector found that, in aggregate, the banking sector is well capitalised and profitable.

The Moody's downgrade reflected government's decision to impose losses on creditors, rather than provide a full bailout for African Bank. As a result of this decision, Moody's argued that stressed banks are unlikely to receive government support in future. Government's decision to limit its exposure to the financial sector should strengthen our sovereign rating, thereby reducing the costs of funding the deficit.

QUESTION NUMBER: 1569 [NW1939E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1569. Dr M J Figg (DA) to ask the Minister of Finance:

NW1939E

REPLY:

Reply received: September 2014

QUESTION NUMBER: 1533 [NW1903E]

DATE OF PUBLICATION: 12 SEPTEMBER 20141533. Mr D T George (DA) to ask the Minister of Finance:

Does any contingency fee arrangements exist between the Financial Services Board and a certain person (name furnished); if so, what are the relevant details? NW1903E

REPLY:

1. The Honourable member is referred to the answers provided by the Minister of Finance to his questions 1296 of 21 April 2011 and 1061 of 4 September 2010.

2. The fee arrangement between the Financial Services Board and the curators of the Datakor Funds was contingent on the recovery of the surplus assets which had been unlawfully stripped out of these funds, i.e. no recoveries, no fee.

3. As indicated in the previous answers provided to the Honourable member the fee arrangement on the Datakor curatorship was sanctioned by the High Court during September 2005. The percentage sanctioned was 25% which applied to the remuneration of two curators and the fees of their respective law firms. It appeared from the court papers that, at the time, the Datakor Funds were thought to have lost R70 million of surplus assets.

4. In relation to the Datakor Funds as well as other funds of which surplus assets had been unlawfully removed during the 1990s and that had been placed into curatorship/liquidation, the FSB subsequently entered into an agreement with the curator/liquidator during October 2008 within the norms of the attorneys' profession and the provisions of section 28A of the Pension Funds Act, 1956 read with Board Notice 74 of 2001. The latter Board Notice stipulates that the statutory fee payable to liquidators on all "other income", i.e. recoveries made, of a fund in liquidation is 10%.

5. The Registrar of Pension Funds is, in terms of the provisions of section 28A of the Pension Funds Act 1956, given the discretion to reduce or increase the liquidator's remuneration. In these liquidations, due to their complexity, the Registrar increased the percentage to 16.6% for some of the funds dealt with in the 2008 agreement. The percentage remuneration for two funds (Mitchell Cotts Pension Fund and Picbel Groepvoorsorgfonds) remained at the statutory rate of 10%.

6. Although the court order relating to the Datakor curatorship has never been challenged, the 2008 agreement capped the remuneration of the curators' law firms at a fixed amount per annum and reduced the remuneration of the curators, as a percentage of recoveries, from 25% to 16.6% on all amounts recovered above R140 million, i.e. the amount which had been recovered up until that point in time.

7. The Sable Industries Pension Fund was placed under curatorship during 2006. During June 2006 and in anticipation that this fund would be placed into liquidation the court, when issuing a final curatorship order, authorised the Registrar of Pension Funds to appoint the curator as liquidator of the fund.

8. During 2007 an informal contingency fee arrangement was concluded between the Deputy Registrar of Pension Funds and the curator in terms of which the curator and his law firm would jointly be entitled to 33% of recoveries made (i.e. 16.6% each). This informal agreement was, however, never given effect to and was replaced by the 2008 agreement referred to above. The validity of this agreement is presently the subject of litigation between the FSB and other parties under case number 43195/2013 in the North Gauteng High Court, Pretoria.

Reply received: October 2014

QUESTION NUMBER: 1504 [NW1807E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1504. Adv H C Schimdt (DA) to ask the Minister of Finance:

Whether (a) The National Treasury 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?

NW1870E

REPLY:

The National Treasury and entities reporting to the Minister of Finance did not sponsor any political party advertisements, events or paraphernalia in the above period.

Reply received: October 2014

QUESTION NUMBER: 1471 [NW1837E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1471. Mr G G Hill-Lewis (DA) to ask the Minister of Finance:

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?

NW1837E

REPLY:

FINANCIAL YEAR	FUNDS SPENT ON ADVERTISING (INCLUDING RETAIL BONDS)*
2010/11	R29,542,350.69
2011/12	R28,633,642.67
2012/13	R28,462,100.08
2013/14	R28,484,726.53
1 April 2014 to date	R23,438,488.24

* Retail Bonds:

2010/11 - R27,364,748.74,

2011/12 - R26,528,288.82,

2012/13 - R26,077,198.20,

2013/14 - R26,239,582.00; and

1 Apr 2014 to date - R22 344 836.37.

Reply received: October 2014

QUESTION NUMBER: 1439 [NW1804E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1439. Mr C D Matsepe (DA) to ask the Minister of Finance:

(a) Which travel agents has the National Treasury used during the period 1 April 2012 up to the latest specified date for which information is available?

(b) What is the quantum of funds spent with each of the specified travel agents in the specified period?

REPLY:

(a)

TRAVEL AGENT	PERIOD
HRG Rennies	1 April 2012 - 31 March 2013
Wings Naledi	1 April 2012 to date
Magic Travel	1 April 2013 to date

(b)

TRAVEL AGENT	2012/13	2013/14	1 APRIL – 31 AUG 2014
HRG Rennies	R6,208,601.46	R7,401.35	R0.00
Wings Naledi	R42,092,803.46	R48,453,353.70	R16,759,683.70
Magic Travel	R0.00	R2,515,712.25	R2,882,114.06
TOTAL	R48,301,404.92	R50,976,467.30	R19,641,797.76

Reply received: October 2014

QUESTION NUMBER: 1398 [NW1763E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1398. Dr D T George (DA) to ask the Minister of Finance:

Whether any fraud charges have been laid against any (a) employee or (b) director at the Land Bank since 1 April 2010; if so, how many of them were (i) charged, (ii) convicted and (iii) how much of the stolen money has been recovered?

NW1763E

REPLY:

The Land Bank had in 2010 through an internal process charged (a) an employee for falsifying information/fraudulent activities. The employee was dismissed through the internal process. Ther was no money stolen from the Land Bank and no charges were laid externally against the employee. There was no money to be recovered.

For the FY2011/2012, FY2012/2013, FY2013/2014 and the current financial year, there has not been an incident where fraud charges were laid against any (a) employee or (b) director of Land Bank.

Reply received: October 2014

QUESTION NUMBER: 1386 [NW1751E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1386. Mrs M R Shinn (DA) to ask the Minister of Finance:

Is the National Treasury in discussion with the Independent Communications Authority of South Africa (ICASA) to devise a new mechanism for wireless spectrum fee payments by (a) noncommercial entities and (b) state-owned bodies; if not, what steps does the National Treasury want ICASA to take to recover the outstanding fees due by the (a) SA Police Service and (b) SA National Defence Force; if so, what is the (i) motivation for the discussion, (ii) scope of the discussion, (iii) desired outcome and (iv) deadline for finality on the issue?

NW1751E

REPLY:

(i-iii)The Office of the Accountant-General has engaged with ICASA regarding their risk and revenue management policies to improve internal control.

(iv) In response to the non-payment of spectrum fees, the National Treasury wrote to the CFO of ICASA in September 2013 advising that the matter should be dealt with in terms of the entities debt collection policy and that it cannot be dealt with the though the budget process.

In terms of Section 38(1)(a)(i) of the PFMA, the Accounting Officer of ICASA is responsible for systems of financial and risk management; and internal control. In addition, Section 38(1)(c)(i) of the PFMA requires the Accounting Officer to collect all money due to the constitutional institution.

Since under-collection of spectrum fees and other outstanding liabilities are subject to the internal financial management processes of ICASA, the National Treasury expects the Regulator to enforce existing policies and procedures to recover or write off this debt as required by the Electronic Communications Act or alternatively, follow the Intergovernmental Relations Framework Act to declare a dispute or alternatively, the Minister of Telecommunication should propose amendments to the Electronic Communications Act. The matter is with the ICASA Council.

Reply received: October 2014

QUESTION NUMBER: 1367 [NW1731E]

DATE OF PUBLICATION: 12 SEPTEMBER 2014

1367. Mr T J Brauteseth (DA) to ask the Minister of Finance:

With regard to the plastic bag levy scheme, (a) what is the total quantum of funds which have been collected since the introduction of the scheme in 2003, (b) to which government departments have these funds been allocated, (c) what was the quantum of these individual allocations and (d) in each case, how have these financial allocations been used to create work opportunities in the (i) recycling and/or (ii) environmental protection sector?

NW1731E

REPLY:

(a) The total quantum of funds which have been collected since the introduction of the scheme in 2003 up to the end of August 2014 is R1.1 billion, as are shown in table 1 below:

Table 1: Plastic bag levy revenue collected and recycling funds allocated

Financial Year	Levy collected (R '000)	Funds allocated to DEA (R '000)
2004/05	41 214	12 000
2005/06	61 385	12 000
2006/07	75 129	-
2007/08	86 315	20 000
2008/09	78 563	20 000
2009/10	110 510	29 385
2010/11	150 315	23 500
2011/12	160 621	16 050
2012/13	152 368	-
2013/14	169 243	40 410
2014/15 (Levy revenue: April -Aug)	42 334	42 835
TOTAL	1 127 563	216 180

Source: SARS revenue data and National Treasury Estimates of National Expenditure

Funds allocated for the recycling initiatives are not necessarily those allocated from the levy

All money received by the national government (including all tax revenues collected) must be deposited into the National Revenue Fund, as required by section 213 (1) of the Constitution. The levy was introduced at a modest 3 cents per bag in 2004, payable by plastic bag manufacturers and importers, increased to 4 cents per bag from 1 April 2009 and to 6 cents per bag on 1 April 2013. Given that this is a specific tax (cents per bag) it is necessary to increase it from time to time to ensure that inflation does not erode the real value of the tax.

The National Environmental Management: Waste Act (No. 59 of 2008) and the National Waste Management Strategy guide waste management in South Africa. The levy on plastic shopping bags was introduced in 2004 as a mechanism to manage the problem of plastic bags which ended up as wind-blown litter on fences, trees, the open veld or in waste facilities via normal refuse collection systems. Initially, the Department of Environmental Affairs and Tourism (DEAT) intended to ban plastic shopping bags. However, in order to limit job losses in the plastics industry whilst at the same time reducing the impact of plastic bag pollution and to encourage recycling, a memorandum of agreement (MOA) was entered into by the government (through DEAT), organised labour and business.

(b) Given that the National Revenue Fund is a general fund from which appropriations are made, and there is no earmarking of funds collected, it is not possible to draw a direct link between the amount collected for a specific tax or levy with any specific expenditure. However, more generally, we can confirm that a total of just over R216 million in funds have been appropriated from the National Revenue Fund to the Department of Environmental Affairs (DEA) for recycling initiatives since 2003 (and to Buyisa-e-Bag when it was functional) for the period 2004/05 to 2014/15, as noted in the same Table 1. A non-profit section 21 company, Buyisa-e-Bag was established to promote plastic bag recycling. Buyisa-e-Bag's main objectives were to promote waste minimisation, awareness creation in the plastics industry, expand collector networks and support rural collection through small, and medium sized enterprises, job creation and capacity building. The company was funded through transfers from the fiscus via the DEA on the basis of approved business plans that were submitted to the department.

DEA's total budget allocation has increased from R2.7 billion in 2009/10 to R5.6 billion in 2014/15, the Chemicals and Waste Management programme was allocated about R66 million in 2013/14 (about 1 per cent of the DEA's total budget).

The function of solid waste management and disposal resides exclusively with local government, and is financed through transfers from the fiscus for capital expenditures to support management of waste through the Equitable Share and Municipal Infrastructure Grant and internal revenues raised from tariffs.

Table 2: Absorption of Buyisa-e-Bag and Reprioritisation of Allocations

R'000	2012/13	2013/14	2014/15
Allocation to Buyisa-e-Bag over the MTEF	36 200	40 410	42 431
Absorption into DEA:
Programme 6: Environmental Programmes
Compensation of Employees	4 650	4 883	5 127
Operational expenditures	1 690	3 035	2 784
Transfer payments for projects	19 860	21 992	23 495

Programme 7: Chemicals and Waste Management: National Regulator for Compulsory Specifications	10 000	10 500	11 025
Total	36 200	40 410	42 431

Source: DEA, Email confirmation 7 May 2013

(d) Use of financial allocations to create work opportunities:

As part of the functions of Programme 6, the DEA coordinates the implementation of the environment and culture sector projects under the Expanded Public Works Programme and provides monitoring and evaluation support to the programmes funded by the branch. DEA contributes funding to three initiatives: Social Responsibility Policy and Projects, Working on fire and Working for Water. The additional transfer payment was made to Programme 6 for Social Responsibility Policy and Projects (SRPP) in 2012 for managing the waste projects incorporated into the SRPP that were previously managed by Buyisa.

According to DEA Buyisa had established 15 plastic buy-back centres and supported 25 existing facilities. Buy back centres and recycling facilities were established in the Mhluzi and Govan Mbeki municipalities in Mpumalanga in 2007 and 2009 respectively. Permits for these sites have been issued in terms of the National Environmental Management: Waste Act of 2008 (No. 59 of 2008) and Buyisa-e-Bag is the official permit holder for both facilities.

Any further details regarding the quantum of bags recycled or work opportunities for each recycling project should be referred to the DEA because these are not specified separately for each recycling project.

Reply received: September 2014

QUESTION NUMBER: 1318 [NW1614E]

DATE OF PUBLICATION: 5 SEPTEMBER 2014

1318. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:†

(1) Why did the Public Investment Corporation (PIC) increase its shareholding in African Bank Investment Limited (Abil) in June 2014, despite signs that Abil's burden of debt was too high;

(2) whether the PIC undertook a proper cautionary investigation before increasing its shareholding in Abil; if not, why not; if so, what are the relevant details;

(3) what has he found the impact of the PIC's investment in Abil to have been on the Government Employees Pension Fund?

NW1614E

REPLY:

(1) The PIC did not increase its 12.54% shareholding in Abil through June 2014 within its internally managed portfolios of funds. However, the PIC outsources some of its funds to external fund managers who manage them within mandates agreed with the PIC, but subject to their own investment decision making processes. During June 2014 external Asset Managers increased their stake in Abil by 0.23% to 2.65% but did not breach any mandate provisions.

(2) The external managers will have made their decision as per the mandate agreed with them.

(3) The net exposure of the Government Employees Pension Fund to Abil currently stands at just over R4bn (0.5% of Listed Portfolio). However, the PIC hopes to recover some of this through its participation in recapitalising the "Good Bank".

Reply received: September 2014

QUESTION NUMBER: 1291 [NW1586E]

DATE OF PUBLICATION: 5 SEPTEMBER 2014 1291. Dr M J Figg (DA) to ask the Minister of Finance:

(1) How much will the Public Investment Corporation pay to re-capitalise African Bank Investments Limited (Abil);

(2) will he initiate any punitive action against current or former directors of Abil; if not, why not; if so, what are the relevant details?

NW1586E

REPLY:

(1) PIC has committed to provide up to 50% of the total amount required to recapitalize the "Good Bank" which cannot exceed R5 billion.

(2) The PIC will await the results of the current SARB investigation into the activities of the bank leading up to the events of 8^th August before any decision is taken on whether or not, to act against Abil management and/or board.

Reply received: September 2014

QUESTION NUMBER: 1264 [NW1555E]

DATE OF PUBLICATION: 5 SEPTEMBER 2014 1264. Dr D T George (DA) to ask the Minister of Finance:

With regard to administrative penalties collected by the Financial Services Board and paid to the National Treasury, (a) what is the total amount currently in the ring-fenced fund and (b) what amount has been spent in each of the past five years, on (i) consumer education and (ii) protection of consumers?

NW1555E

REPLY:

Amounts received as administrative penalties by the Financial Services Board are not paid to the National Treasury. Such amounts are ring-fenced in the FSB's Discretionary Fund.

(a) The balance of the FSB's Discretionary Fund as at 31 July 2014 was R14 658 721.38.

(b) Disbursements made from this Fund over the last five years are as follows:

Financial year	(i) Consumer Education R	(ii) Consumer Protection R
2009/10	1 728 373.16	0.00
2010/11	2 638 072.74	410 172.00
2011/12	6 999 957.40	807 510.00
2012/13	5 999 347.59	0.00
2013/14	5 594 469.05	1 002 428.90
2014/15*	2 040 956.58	0.00
TOTALS	25 001 176.52	2 220 110.90

* As at 31 July 2014

Reply received: October 2014

QUESTION NUMBER: 1225 [NW1463E]

DATE OF PUBLICATION: 5 SEPTEMBER 2014

1225. Ms D Carter (Cope) to ask the Minister of Finance:

Whether the Government has looked into the report by Jesse Colombo warning that most township households are now in one way or another connected to debt and are struggling to keep up with their repayments, a scenario which is then used as a political bargaining tool by trade unions to push for higher wages in an attempt to help the victims of debt while effectively further stifling the country's economy with ongoing strikes and subsequent shortcomings in productivity; if not, why not; if so, what measures is the Government taking to help township dwellers to understand the cost of debt and the implications it has both for them and the economy as a whole? NW1463E

REPLY:

Yes, government has been taking steps to deal with the problem of household indebtedness as far back as October 2012, prior to the report by Jesse Colombo.

Cabinet has considered the problem of household over-indebtedness in December 2013 and directed the National Treasury (NT) and the Department of Trade and industry (the dti) to work together to assist over-indebted households and also prevent them from becoming over-indebted in future (refer to press release of 12 December 2013 on the treasury website).

Reply received: September 2014

QUESTION NUMBER: 1175 [NW1413E]

DATE OF PUBLICATION: 29 AUGUST 2014

1175. Ms P T van Damme (DA) to ask the Minister of Finance:

(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?

NW1413E

REPLY:

(1) (a) Yes, the Minister appointed a Ministerial Special Advisor;

(b) No, the Deputy Minister did not appoint a Ministerial Special Advisor.

(2) (a) Mr F Cassim

(b) 1 July 2014

(c) The appointment of special advisor to executive authority is regulated by section 12A of the Public Service Act, 1994 and the dispensation approved by the national Cabinet in terms of Section 12A. Mr Cassim acts in the advisory capacity and has been appointed in terms of the Public Service Act (Section 12A(1)):

· To advise the Executive Authority on the exercise or performance of the Executing Authority's powers and duties:

· To advise the Executive Authority on the development of policy that will promote the relevant department's objectives; or

· To perform such other tasks as may be appropriate in respect of the Executive Authority's powers and duties.

(d)-(e) The Ministerial Handbook together with Cabinet approved dispensation provides for the determination of the salary level of the Special Advisors. It should be indicated that the salary scales of the individual is an employee and employer confidential agreement. The information is however accessible through the Audit process.

(f) The contract period is for a period of one year or the agreement shall automatically lapse on the last day of the month that follows the date on which Executive Authority vacates office for any reason.

(g) Refer to (c) above.

Reply received: October 2014

QUESTION NUMBER: 1078 [NW1249E]

DATE OF PUBLICATION: 29 AUGUST 2014

1078. Ms D Carter (Cope) to ask the Minister of Finance:

Whether his department will investigate a certain company (name furnished) servicing nearly half a million miners and workers, of which the trustees have ties with certain organisations (names furnished), to ascertain whether the specified company is financially sound after the long and debilitating strike on the platinum belt; if not, why not; if so, what are the relevant details?

NW1249E

REPLY:

No, the department will not investigate any bank directly, as the power to supervise a bank resides with the responsible supervisor and not the department. In this case the supervisor is the Bank Supervision Department in the South African Reserve Bank, headed by the Registrar of Banks, which is responsible for supervising the financial soundness of all banks, including the bank the Honourable Member refers to.

Whilst the Registrar of Banks cannot be expected to report on the individual monitoring of each bank. The Registrar has confirmed that apart from the action taken on African Bank, the banking sector remains financially sound. It is in the nature of the supervision process that the Registrar monitors, advises or directs any bank during the course of the supervision process, as any bank or business continually faces many challenges that may or may not affect its profitability. Whilst the long strike on the platinum belt may have adversely affected many workers, small businesses, companies and our economic growth, there is no reason to believe that it has undermined in any significant way the soundness of our banking system. The Registrar will continue its supervision of the registered banks in South Africa as part of the normal supervisory process, including the bank the Honourable Member is referring to.

Reply received: August 2014

QUESTION NUMBER: 915 [NW1006E]

DATE OF PUBLICATION: 1 AUGUST 2014

915. Ms D Carter (Cope) to ask the Minister of Finance:

Whether the Jobs Fund is (a) creating long-term sustainable jobs, (b) assisting retrenched workers with requisite skills to become self-employed and (c) providing those persons who are being assisted with new levels of certifiable skills; if not, why not; if so, what are the relevant details?

NW1006E

REPLY:

(a) The jobs that the Jobs Fund is creating are long-term sustainable jobs. To date the Fund has processed 4222 applications; approved 93 applications of which 57 are currently in implementation. These projects have created 17 357 new permanent jobs, 8 730 short-term jobs and 51 878 individuals have received work readiness training.

(b) The Jobs Fund is run on challenge fund principles and it considers applications from the private, public and NGO sectors. The Fund has not received any competitive applications that specifically make provision for the training of retrenched workers; however, where the Fund has supported projects that have a training component a critical criterion for the Jobs Fund is that the project must also make provision for job placements.

(c) The training provided by projects is primarily driven by employer demand for specific skills. Where appropriate the training provided is accredited.

Reply received: August 2014

QUESTION NUMBER: 876 [NW965E]

DATE OF PUBLICATION: 1 AUGUST 2014

876. Mr G G Hill-Lewis (DA) to ask the Minister of Finance:

(a) What is the cause of the delay in the appointment of a contractor by the Public Investment Corporation (PIC) for the construction of the Centre Point shopping mall in Cape Town, (b) when will a contractor be appointed and (c) has any PIC official been held accountable for this delay?

NW965E

REPLY:

(a) The project was halted following an investigation into the awarding of the tender for the construction works.

(b) and (c) The matter is still being further investigated and once this process is concluded the appointment of a contractor will be finalised and a decision will be taken regarding steps against any PIC officials.

Reply received: August 2014

QUESTION NUMBER: 798 [NW885E]

DATE OF PUBLICATION: 25 JULY 2014

798. Mr D C Ross (DA) to ask the Minister of Finance:

(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 the National Treasury on (aaa) travel, (bbb) accommodation, (ccc) entertainment and (ddd) any further specified expenses;

(2) (a) what is the breakdown of the amount spent by the National Treasury 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?

NW885E

REPLY:

(1)(a),(b),(c) and (d) None of those mentioned in 1a to d accepted an invitation, received tickets and attended the 2014 Soccer World Cup Tournament in their official capacity.

(2) N/A

Reply received: August 2014

QUESTION NUMBER: 749 [NW836E]

DATE OF PUBLICATION: 25 JULY 2014

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

(a) How many (i) judgments and (ii) court orders were made against his department in the (aa) 2010-11, (bb) 2011-2012, (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?

REPLY:

(a) (i) Judgments

(aa)

2010-11

(bb)

2011-12

(cc)

2012-13

(dd)

2013-14

(ii) Court orders

(aa)

2010-11

(bb)

2011-12

(cc)

2012-13

(dd)

2013-14

(b) (i) (aa)

Financial year obtained	Judgments implemented	Court orders implemented
2011-12	2	2
2012-13	1	0
2013-14	1	2

(bb)

Financial year obtained

Judgments awaiting implementation

Court orders

awaiting implementation

2013-14

(ii) (aa) One of the judgments handed down in the 2011/2012 financial year related to procurement and the other concerned a constitutional attack on the Government Employees Pension Fund Law 21 of 1996.

The judgment handed down in the 2012/2013 financial year related to procurement.

The judgments handed down in the 2013/2014 financial year concerned constitutional attacks on the Currency and Exchanges Act 9 of 1933, Pension Funds Act 24 of 1956, Customs and Excise Act 91 of 1964 and Financial Intelligence Centre Act 38 of 2001.

(bb) One of the court orders obtained in the 2011/2012 financial year related to procurement and the other concerned an application for a special pension in terms of the Special Pensions Act 69 of 1996.

One of the court orders obtained in 2013/2014 financial year related to procurement and the other concerned an application for a special pension in terms of the Special Pensions Act 69 of 1996.

Reply received: August 2014

QUESTION NUMBER: 688 [NW772E]

DATE OF PUBLICATION: 25 JULY 2014

688. Mr M G P Lekota (Cope) to ask the Minister of Finance:

Whether the Government has already made budgetary provisions (a) to contribute its respective share of equity to the Brics Development Bank and (b) for the planned contingency reserves that have been agreed to by the Brics partners; if not, how does the Government intend to meet its commitments; if so, (i) what amounts are due from South Africa, (ii) by what date must the due amounts be paid and (iii) where will the Government source funds to meet its obligations in this regard?

NW772E

REPLY:

The documents establishing the New Development Bank (NDB) were finalised in Fortaleza, Btazil on 15 July 2014. Currently no budgetary provision has been made for it in the 2014 Medium Term Expenditure Framework (MTEF). It would be premature to budget for the contribution to the bank this year. Several options are being explored for funding, including a budget request for the upcoming 2015 MTEF.

The Steering Committee to take the implementation of the NDB forward is expected to meet within the next 6 months. It is envisaged that the processes of operationalising the Bank will be finalized in the next 24 to 36 months. The Bank's founding documents prescribe that the payment of the US$2 billion shall be made in 7 installments. The first payment shall be due 6 months after the depository receives the last instrument of ratification.

Under the terms of the Contingent Reserve Arrangement (CRA), countries do not have to contribute any funds until one of the participating countries makes a request for support and the request is approved by the other BRICS countries. Until that time, South Africa's US$5 billion commitment will remain as part of South Africa's reserves.

Reply received: August 2014

QUESTION NUMBER: 566 [NW649E]

DATE OF PUBLICATION: 18 JULY 2014

566. Dr D T George (DA) to ask the Minister of Finance:

(1) Whether any cases were reported to the Financial Intelligence Centre during the period 1 June 2009 up to the latest specified date for which information is available; if so, how many;

(2) whether any prosecutions were initiated; if so, how many;

(3) whether any convictions were obtained; if so, what amount?

NW649E

REPLY:

Between 1 April 2009 and 31 March 2014 (the period of the past five financial years) the FIC received 623 020 suspicious transaction reports (STRs) containing information suggesting that the persons or entities reported to the FIC may be engaged in financial conduct that is suspicious, outside of the ordinary or unusual. The FIC analysed and prioritised (based on crime combatting priorities and national security requirements) these reports into cases that may require further investigation by law enforcement agencies, the tax authority, security agencies or regulators as defined in the FIC Act. Between 1 April 2009 and 31 March 2014 the FIC referred 3 555 of these cases for further investigation.

The FIC is unable to provide statistics concerning prosecutions because the NPA is responsible for the compilation of prosecution statistics.

The FIC is unable to provide statistics concerning convictions because the NPA is responsible for the compilation of such statistics.

Reply received: August 2014

QUESTION NUMBER: 565 [NW648E]

DATE OF PUBLICATION: 18 JULY 2014

565. Dr D T George (DA) to ask the Minister of Finance:

Whether the Twin Peaks model of financial regulation has been implemented; if not, why not; if so, what are the relevant details?

NW648E

REPLY:

The Twin Peaks model was announced in the Budget Speech of 2011. A dedicated steering committee, the Financial Regulatory Reform Steering Committee was established shortly afterward to take forward the implementation. In February 2013, the Steering Committee published a Roadmap setting out the implementation process for the reform. Subsequently a Draft Financial Sector Regulation Bill was prepared and published for public comment at the end of 2013. Comments have been received and a new draft of the legislation will be published shortly. It is anticipated that the bill will be tabled in Parliament during the final session of this year. Once Parliament has considered the legislation, the two new Authorities are expected to begin work early in 2015.

Reply received: August 2014

QUESTION NUMBER: 564 [NW647E]

DATE OF PUBLICATION: 18 JULY 2014

564. Dr D T George (DA) to ask the Minister of Finance:

(1) Whether the Financial Services Board has imposed any administrative fines during the period 1 June 2009 up to the latest specified date for which information is available, if so, what are the names of the entities that were fined, including (a) the fine amount (b) the reason for the fine;

(2) whether the fine amount was (a) received and (b) paid to National Treasury:

NW647E

REPLY:

(1) The Financial Services Board (FSB) imposes two types of administrative penalties. Penalties may be imposed by the Registrar for late submissions of reports as provided for in the different sectorial pieces of legislation.

In addition, the Registrar may refer alleged contraventions of all FSB laws to the independently constituted FSB Enforcement Committee. The Enforcement Committee may impose administrative penalties if it finds that FSB legislation has been contravened. The following administrative penalties were imposed since 1 April 2009.

Period	Amount R
2009/2010	5 457 635
2010/2011	3 255 343
2011/2012	7 200 614
2012/3013	16 044 960
2013/2014	9 759 080
Total imposed	41 717 632

Of this total amount, R26 002 066,19 has been received and the balance amounting to R15 715 565,81 is either being paid off by way of instalments, or in the process of being collected or have been written off as unrecoverable.

(2) No amounts received for this purpose are paid to the National Treasury. Penalties recovered are deposited into a ring-fenced fund and are exclusively disbursed for consumer education and protection of consumers in terms of an approval granted by the Minister of Finance or in terms of section 6H of the Financial Institutions (Protection of Funds) Act, 2001.

The FSB is prohibited from utilising these funds in any other manner, including for its operational expenses.

Reply received: August 2014

QUESTION NUMBER: 561 [NW644E]

DATE OF PUBLICATION: 18 JULY 2014

561. Dr M J Figg (DA) to ask the Minister of Finance:

(1) With reference to the recent protracted strike at Lonmin's mines, what is the total (a) loss in revenue in terms of (i) Value-Added Tax (VAT) (ii) Pay As You Earn (PAYE) and (iii) company taxes to the Government and (b) cost of the specified strike to the South African economy;

(2) did the recent strike at Lonmin's mines have an effect on the GDP; if so, by how much?

NW644E

REPLY:

(1) (a) (i), (ii) and (iii) and (b). It is not possible to provide the information requested in respect of Lonmin. Chapter 6, more specifically, section 69 of the Tax Administration Act, 2011, provides for the confidentiality of taxpayer information held by SARS and prohibits the disclosure of taxpayer information by SARS except in narrowly defined cases. These cases include disclosures to the South African Police Service and National Prosecuting Authority related to tax offences, by order of a High Court or with the written consent of the taxpayer concerned.

(2) It is clear that the strike in the platinum industry did have an effect on GDP given its contribution to the economy, and given that the economy contracted by 0.6 per cent in the first quarter according to official figures from Stats SA, and given that platinum is an important commodity earning export revenue for the country. Whilst there are various estimates already out in the public domain, I will refer to the latest estimate by the SA Reserve Bank as released in the statement of the Monetary Policy Committee on 17 July 2014, where it forecasts growth in 2014 at 1,7 per cent, compared to forecasts of 2,8 per cent at the beginning of the year. The actual impact of the strike at Lonmin mines cannot easily be isolated from the impact on the entire industry, and the Treasury does not provide estimates of the impact of each individual mining company on growth.

Reply received: August 2014

QUESTION NUMBER: 542 [NW624E]

DATE OF PUBLICATION: 18 JULY 2014

542. Dr P J Groenewald (FF Plus) to ask the Minister of Finance:†

What criteria are applied by the Land Bank prior to a loan being granted to any person?

NW624E

REPLY:

Criteria applied by the Land Bank for lending purposes are guided by:

1. Applicable legislation and regulations Criteria.

The following are examples but are not limited to:-

a. The Land and Agricultural Development Bank Act

b. National Credit Act;

c. Insolvency Act;

d. Companies Act;

e. Land Conservation Act;

f. FICA;

g. FAIS, etc.

2. Business Plan Criteria

a. Viable

b. Realistic

c. Sustainable

3. Solvency

Applicant must be solvent therefore liabilities should not exceed assets.

4. Affordability/profitability

Applicant has to illustrate the necessary repayment ability to service and settle debt within agreed tenure.

5. Gearing

Acceptable debt levels to total assets and equity as per industry norms would be applicable. (Land Bank Commercial clients maximum 55% and development clients 70%).

6. Security/collateral

Loans are to be fully secured at all times.

7. Management

Management should illustrate and demonstrate in the business plan the necessary competencies and experience to operate the business successfully.

Reply received: August 2014

QUESTION NUMBER: 522 [NW604E]

DATE OF PUBLICATION: 11 JULY 2014

522. Mr M Waters (DA) to ask the Minister of Finance:

Whether, with reference to the reply of the Minister of Social Development to question 1512 on 28 June 2013, Grindrod Bank has opened any outlets in the country since the reply; if not, why not; if so, where are they situated?

NW604E

REPLY:

No, the Registrar of Banks has confirmed that Grindrod Bank does not have a branch network and also has no intention of rolling out branch infrastructure. There was also no commitment from the bank to create a branch network. The SASSA grants are distributed via a combination of retail outlets, such as Pick & Pay and also via mobile pay units across South Africa. Grindrod Bank also utilises the current branch networks of the other commercial banks to facilitate grant pay-outs.

Reply received: July 2014

QUESTION NUMBER: 513 [NW595E]

DATE OF PUBLICATION: 11 JULY 2014

513. Dr D T George (DA) to ask the Minister of Finance:

(1) Whether any companies were placed under curatorship by the Financial Services Board during the period 1 September 2009 up to the latest specified date for which information is available; if so, what are (a) their names, (b) the amount(s) (i) involved and (ii) recovered in each case and (c) the amount of fees earned by each curator to date, on either a contingency or fee basis;

(2) whether all companies have been restored to health; if not, which companies (a) have been put into liquidation and (b) are still under curatorship;

(3) whether reports have been received from curators for all companies under curatorship; if not, which reports are outstanding:

NW595E

REPLY:

(1) No companies were placed under curatorship by the Financial Services Board (FSB) from 1 September 2009. The following court applications by the FSB for curatorships of the businesses of entities providing financial services from the specified date were granted:

(a) * Cadac Pension Fund (December 2010) – provisional (on appeal)

* Rockland Asset Management and Consulting (Pty) Limited (August 2012)

* Interneuron (Pty) Limited (September 2012)

* Resolution Life Limited (September 2012)

(b) (i) * Cadac Pension Fund[1] (amounts owing to Fund)

R7,8 million – surplus

In excess of R40 million – other

* Rockland Asset Management and Consulting (Pty) Limited[2]

Approximately R848 million

* Interneuron (Pty) Limited[3]

R57 218 254,81 + US$70 000

* Resolution Life Limited

Not applicable

(ii) * Cadac Pension Fund

None – legal processes underway

* Rockland Asset Management and Consulting (Pty) Limited

R692 699 (sale of furniture and fittings – in process)

Claims in excess of R500 million in process

* Interneuron (Pty) Limited

R15,5 million (insurance claim in progress)

R2,85 million (gross proceeds – sale of fixed property)

R15 042 916 (claim proved estate against liquidated

* Resolution Life Limited

Not applicable – reason for curatorship was undercapitalisation which was later rectified

R11 165 685.09

* Rockland Asset Management and Consulting (Pty) Limited

R949 620 (fees and sundry disbursements)

* Interneuron (Pty) Limited

R1 820 540.00 (fees)

* Resolution Life Limited

R1 315 136.93

(2) All businesses with the exception of Resolution Life are still under curatorship. The curatorship of Resolution Life was lifted on 31 October 2013.

(3) All reports have been received.

[1] As at 28 May 2014.

[2] As at 31 July 2014 (draft).

[3] As at 31 May 2014.

Reply received: August 2014

QUESTION NUMBER: 426 [NW508E]

DATE OF PUBLICATION: 4 JULY 2014

426. Mr M H Redelinghuys (DA) to ask the Minister of Finance:

(1) Whether, with reference to feminine hygiene and sanitary products, he could please indicate if the National Treasury (a) intends to conduct or (b) has conducted an impact study on waiving value-added tax (VAT) on the specified products; if not,

(2) whether he (a) intends to or (b) will consider waiving VAT on the specified products; if not, why not? NW508E

REPLY:

1. (a) and (b) No, National Treasury has not conducted an impact study on waiving VAT for feminine hygiene and sanitary products. The Treasury has previously conducted impact studies on VAT concessions (i.e. The VAT Treatment of Merit Goods and Services in 2007), and concluded for good reasons outlined below why this proposal cannot be accepted. Based on the above research, similar findings by the Katz Commission and international studies, there is no intention to undertake a specific study on feminine hygiene and sanitary products.

2. (a) and (b) No, there is no intention to consider waiving VAT on feminine hygiene and sanitary products. VAT is a broad-based consumption tax, and an effective VAT system should not be unduly compromised by well-intended but ill-informed concessions, which not only reduce government revenue, but also disproportionately benefit middle and higher income households. More targeted expenditure programmes aimed at poorer communities are generally more effective than concessions through the indirect tax system in achieving socio-economic objectives. Most of the current concessions in the VAT system were introduced based on concerns about the perceived regressivity of the system. However, providing more VAT concessions is both an unsound tax policy and ineffective social policy, as concessions:-

a) Erode the tax base and thereby reduces the ability of the VAT system to be optimal in generating the necessary tax revenues;

b) Create a precedent for interest groups to lobby for preferential treatment of goods and services on the grounds that differentiation may be merited (i.e. so-called merit goods);

c) Accomplish little in the way of redistribution; and

d) Increase the scope for abuse, and also results in increased administration and compliances costs.

e) There might even be a case to remove some of the current VAT concessions, rather than introducing more VAT concessions.

Reply received: August 2014

QUESTION NUMBER: 461 [NW540E]

DATE OF PUBLICATION: 11 JULY 2014

461. Mr M G P Lekota (Cope) to ask the Minister of Finance:

Whether the Government has a clear plan to meet all its commitments in respect of the national debt that will be due in the 2016-17 financial year; if not, why not; if so, what are the relevant details?

NW540E

REPLY:

The Government has a clear plan to meet all its commitments in respect of the national debt due in the 2016/17 financial year. The plan is set out in the 2014 Budget Review. Issuance of long-term loans in the domestic market will be marginally increased to refinance redeeming debt. Furthermore, government will consider reducing the amount of debt due in 2016/17 by exchanging it for longer-term debt before the maturity date as part of government's ongoing bond switch programme to reduce refinancing risk as market conditions permit.

Reply received: August 2014

QUESTION 371

DATE OF PUBLICATION: 27 JUNE 2014

371. Dr P J Groenewald (FF Plus) to ask the Minister of Finance:†

(1) (a) Into which account is the fuel levy deposited and (b) for what purpose is the account employed;

(2) (a) what is the current balance in this account and (b) to what (i) end and (ii) extent were these funds employed in (aa) 2009, (bb) 2010, (cc) 2011, (dd) 2012 and (ee) 2013;

(3) whether he will make a statement on the matter?

NW468E

REPLY:

The national government is required by the Constitution to be fully transparent and accountable for every cent it receives and spends in any financial year. These constitutional obligations from sections 213 (1), 215, 216 and 188 of the Constitution are given effect for the national government through the Public Finance Management Act 1 of 1999 (PFMA), which not only requires annual financial statements to be submitted for audit to the Auditor-General, but also requires the publication of monthly statements on the national government's revenue, expenditure and borrowing. These monthly reports are published 30 days after the end of every month, and includes a breakdown on revenue collected per major national tax, levy and duty - hence includes information on the revenue collected every month from the general fuel levy and for the road accident fund. These monthly and annual reports are available on the National Treasury website as soon as each such report is made public.

(1) (a) Government accounts for revenue collected from the fuel levy in the same way it does for all revenue collected from any other tax, duty or levy and deposited into the National Revenue Fund, in line with section 213(1) of the Constitution which states that:

"There is a National Revenue Fund into which all money received by the national government must be paid, except money reasonably excluded by an Act of Parliament".

Every year, by not later than 31 October, the National Treasury publishes the Consolidated Financial Statements, which includes the National Revenue Fund (NRF). The Consolidated Financial Statements also include the opinion expressed by the Auditor-General. This publication is available on the National Treasury website.

It should be noted that any revenue deposited in any other fund in terms of an Act of Parliament must also be accounted for in the financial statements of the entity or fund receiving those funds, which are also submitted to the Auditor-General in terms of the PFMA.

The latest available financial statement for the NRF is for the 2012/13 financial year, and states that R58,0bn (R40,4bn from the General Fuel Levy and R17,6bn from the RAF Levy – note all figures rounded off, and exact figures are in the financial statements) and R929 million under the Customs and Excise levy, was collected by SARS and deposited into the National Revenue Fund for the last fiscal year (refer to page 61 of the Consolidated Financial Statements for the year ended 31 March 2013) in the Table headed "2. REVENUE FROM TAXES, LEVIES AND DUTIES"). A copy of this table is attached.

In providing the above information, it should be noted that there is no single fuel levy, but it actually comprises several applicable levies (refer to the Table below, and my response to parliamentary question 236 [NW285E]). The above information covers three components of the levy, two of which are significantly larger than the revenue collected from all the other levies. The remaining levies (like the pipeline and general slate levies) are collected and administered by the Central Energy Fund (CEF). The NRF and CEF are audited separately, as their financial statements are prepared under different departments. I am directly accountable for all the revenue deposited into the National Revenue Fund, and the Minister of Energy is responsible for overseeing the CEF. The Honourable Member is welcome to approach the Minister of Energy for more detailed information about the CEF and Equalisation Fund. A copy of the latest Annual Financial Statements of the Equalisation Fund, where most of the levies collected by the CEF are deposited, is attached.

It should be noted that all the above financial statements for the 2013/14 financial year will be published by 31 October 2014, in accordance with the PFMA. But as noted above, monthly reports for 2013/14 are already available for revenue collected within 30 days after the end of each month.

The Table attached provides a more detailed breakdown of all the fuel levy components.

See the link: http://www.pmg.org.za/rnw571breakdownoffuellevy

(b) Most of the component levies comprising the fuel levy are not earmarked for specific expenditure, but forms part of general revenue, and hence cannot be attributed to specific spending directly. The earmarked levies include the amount paid to the RAF in terms of the Road Accident Fund Act, No. 56 of 1996, and the Customs and Excise levy shared amongst SACU member countries and collected by SARS on behalf of SACU members. Such funds or allocations are also audited annually by the Auditor-General. Please note that in neither the local sharing of the levy nor the national allocation of revenue received, is revenue earmarked for either transport or infrastructure expenditure.

Except for the petroleum pipelines/products levy and the demand side management levy which are collected based on the pipeline shipments and sales-based system respectively, all the other levies (slate, IP tracer dye and incremental inland transport cost recovery) are imposed/collected using the duty at source (DAS) principle similar to GFL and RAF collection mechanism. DAS is a system of assessing excise duty and accounting, for excisable products at source (i.e. as close as possible to the point of manufacture of the specific product). As highlighted in the table below, all payments from CEF are only made after authorisation by the Department of Energy, thus providing government oversight on CEF payments on fuel levies. The CEF received a financially unqualified opinion for 2012/13, but with an emphasis of matter which resulted in a restatement of the 2012/13 figures, as compared to those figures listed in my earlier answer 236 [NW285E]. The report is attached for ease of reference.

(2) (a) and (b) In terms of section 32(1) of the Public Finance Management Act no 1 of 1999, the National Treasury publishes 30 days after the end of each month "in the national Government Gazette a statement of actual revenue and expenditure with regards to the National Revenue Fund". This information covers revenue from the general fuel levy and road accident fund levy for the current 2013/14 financial year up to the end of the previous month. Such a report also includes actual expenditure per vote. Hence funds allocated to the Department of Transport for the fiscal year 2013/14 amounted to R42,4 billion whilst revenue from the General Fuel Levy (GFL) contributed R40,4 billion to the NRF in the same year. In addition, 23 per cent of the GFL is shared with metros (R9.6 billion was shared in the 2013/14 fiscal year) in line with Schedule 1 to the Taxation Laws Amendment Act, No. 17 of 2009.

(3)Not applicable, in view of the answer provided in (1).

Reply received: August 2014

QUESTION NUMBER: 331 [NW412E]

DATE OF PUBLICATION: 27 JUNE 2014

331. Dr D T George (DA) to ask the Minister of Finance:

(1) What are the details of all flowers purchased by the National Treasury for each year between 1 April 2009 up to the latest specified date for which information is available;

(2) what are the details of (a)(i) the address and (ii) the name of the office where the specified flowers were displayed, (b) for whose benefit were the flowers purchased and (c) what was the purchase value of the flowers for each office where it was displayed;

(3) in respect of flowers purchased for individuals, (a) what is the (i) name and (ii) relationship of the person to (aa) him and (bb) the National Treasury and (b) what is the cost of each purchase;

(4) what are the details of any (a) contractual arrangements and (b) plans to purchase flowers in the future?

NW412E

REPLY:

(1) No flowers were purchased by the National Treasury for the period specified;

(2) (a) (b) (c) Not applicable;

(3) (a) (b) Not applicable; and

(4) (a) (b) Not applicable.

Reply received: March 2014

QUESTION NUMBER: 318 [NW371E]
DATE OF PUBLICATION: 14 MARCH 2014
318. Mr T D Harris (DA) to ask the Minister of Finance:

(1) Whether the National Treasury will provide details of the measures that were instituted to limit spending; if not, why not;

(2) whether the National Treasury will explain the reasons for the increased budget for the upcoming presidential inauguration; if not, why not?
NW371E

REPLY: (1) During the 2014 MTEC process, the National Treasury received a funding request from the Department of International Relations and Cooperation for the 2014 Presidential Inauguration. The recommended budget for the Presidential Inauguration was arrived at following an appraisal of the request and consideration of previous inauguration expenditure. The amount caters for all the logistical arrangements including the diplomatic and protocol services to be rendered by the department to attending heads of government or state during the inauguration of the President in 2014.

(2) The increase in expenditure from the 2009 Presidential Inauguration provides for an increase in the number of foreign dignitaries, Heads of State and governments expected to attend the 2014 Presidential Inauguration, which also coincides with the commemorative programme of government to mark the 20 years of South Africa's democracy. Consequently, the Department of International Relations and Cooperation (DIRCO), as the main custodian of diplomatic and protocol services will incur additional costs in terms of receiving incoming heads of government or state, VIP dignitaries and eminent persons. These costs specifically relate to accommodation, travel and subsistence arrangements.

DIRCO's budget for the Presidential Inauguration in 2009 catered for 20 Heads of State, whereas in 2014 provision has been made for approximately 40 Heads of State.

Reply received: July 2014

QUESTION NUMBER: 298 [NW378E]

DATE OF PUBLICATION: 27 JUNE 2014

298. Mr M H Hoosen (DA) to ask the Minister of Finance:

(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?

NW378E

REPLY:

(1) N/A. No furniture were ordered / purchased for the Minister and/or his staff since May 2014.

(2) N/A.

(3) N/A.

(4) N/A.

(5) N/A.

Reply received: March 2014

QUESTION NUMBER: 274 [NW327E]

DATE OF PUBLICATION: 7 MARCH 2014

274. Mr JF Smalle (DA) to ask the Minister of Finance:

(1) In the revised national expenditure estimates, 2013/14 as outlined in his 2013 Medium Term Budget Policy Statement (a) which local governments will benefit from R18 million to repair infrastructure damage by floods and (b) exactly on what type of infrastructure will it be spent in respect of each specified local government;

(2) (a) which provinces will benefit from the R103 million towards infrastructure damage by floods and (b) how will it be spent in each province?
NW327E

REPLY:

(1) The amount allocated to local government to repair infrastructure damaged by floods is R118 million, not R18 million. The list of municipalities that will benefit from the funds through the Municipal Disaster Recovery Grant in 2013/14 and the type of infrastructure to be repaired are indicated in the table below:

	Type of infrastructure being repaired	R' thousands (2013/14)
Eastern Cape municipalities Nelson Mandela Bay Ndlambe Kouga Koukama Makana Sunday's River Valley KwaZulu-Natal municipality Umvoti Limpopo municipality Maruleng Western Cape municipalities Langesberg Eden District Total	Municipal roads and bridges, sewer pumps, community halls and buildings Municipal roads and storm water Municipal roads and storm water Municipal roads and culverts Municipal roads Municipal roads and storm water Community hall Low level bridge and road Bridge and electrical infrastructure Sewer, roads and storm water	111 350 71 961 15 353 4 477 8 439 8 724 2 396 38 38 264 264 6 688 104 6 584 118 340

2. Provinces that will benefit from the R103 million for the repair of infrastructure damaged by floods in 2013/14 are as follows:

	Type of infrastructure being repaired	R' thousands (2013/14)
Comprehensive agricultural support programme grant Limpopo Mpumalanga Western Cape Education infrastructure grant KwaZulu- Natal Mpumalanga Limpopo Health facility revitalisation KwaZulu- Natal Mpumalanga Provincial roads maintenance KwaZulu-Natal Limpopo Mpumalanga Western Cape Human settlements development grant KwaZulu-Natal Limpopo Mpumalanga Western Cape Total	Dams, access roads, irrigation pumps and irrigation systems Access roads and bridges, pump stations and irrigation pumps Dams and river protection works Structural damages to schools Structural damages to schools Structural damages to schools Structural damages to clinics Structural damages to clinics Roads, storm water and bridges Roads, storm water and bridges Roads, storm water and bridges Roads, storm water and bridges Structural damages to houses Structural damages to houses Structural damages to houses Structural damages to houses	4 295 2 475 303 1 517 12 603 7 574 4 866 163 274 62 212 41 565 1 615 4 462 18 315 17 173 44 454 40 156 1 368 1 764 1 166 103 191

Reply received: July 2014

QUESTION NUMBER: 264 [NW343E]

DATE OF PUBLICATION: 27 JUNE 2014

264. Dr D T George (DA) to ask the Minister of Finance:

(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?

NW343E

REPLY:

(1) N/A. No motor vehicles were ordered.

(2) N/A

Reply received: July 2014

QUESTION NUMBER: 250 [NW328E]

DATE OF PUBLICATION: 27 JUNE 2014

250. Dr M J Figg (DA) to ask the Minister of Finance:

Will he implement wide ranging cost cutting measures in the budget in response to the recent downgrade; if not, why not; if so, what measures?

NW328E

REPLY:

Of the three major ratings agencies, Standard and Poors (S&P) was the only agency to downgrade South Africa. In making this decision, S&P highlighted economic prospects, rather than the level of government expenditure. S&P noted that "while South Africa's fiscal outturn has held up so far, the fiscal stance over the next few years may become exposed to lower-than-expected economic growth, pressures from a new round of public-sector wage negotiations, and increased public spending needs."

The expenditure ceiling introduced in 2012, which places a nominal limit on main budget non-interest expenditure, remains a key element of South Africa's fiscal framework. There is no additional funding available for new projects, and cost pressures will be accommodated through reprioritisation.

A number of steps are already underway to support spending containment and efficiency going forward:

· Cost-containment guidelines were issued by the National Treasury in January 2014, limiting spending on conferences, travel and entertainment. Departments will be audited on compliance with these guidelines.

· A number of spending reviews have been undertaken for key national departments by the National Treasury in conjunction with the Department of Performance Monitoring and Evaluation.

· The Chief Procurement Officer's office is developing a national purchasing system for high value items which will simplify supply chain procedures and reduce corruption.

· New regulations are strengthening the National Treasury's oversight of public entities by requiring them to comply with stringent reporting requirements for expenditure, revenue and performance.

Should these interventions prove insufficient to ensure a sustainable debt trajectory, the National Treasury will consider additional expenditure and revenue measures. Any changes will take into account the likely impact on growth, employment and equity.

Reply received: March 2014

QUESTION NUMBER: 236 [NW285E]
DATE OF PUBLICATION: 28 FEBRUARY 2014

236. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:

(a) What levies are currently being imposed on fuel, (b) on what date did each levy that has been introduced come into force, (c) what is the (i) amount and (ii) specified objective of each separate levy, (d) what amount has been recovered by each levy at the latest specified date for which information is available and (e) to what purpose have the funds that were recovered through each separate levy been appropriated? NW285E

REPLY:

(a) The Table below shows the applicable levies imposed on fuel in terms of various pieces of legislation. Currently, petroleum products derived from fossil fuels such as crude oil and coal are classified as fuel levy goods in terms of Part 5A of Schedule 1 of the Custom and Excise Act, No. 91 of 1964. These fuel levy goods are subject to a number of fuel levies and are zero-rated for VAT purposes. It should also be noted that the primary sectors such as fishing, agriculture and mining qualify for refunds on the diesel fuel levy. Rail goods transport and electricity generated for peak supply by two of Eskom's generators using diesel (open-cycle gas turbines) also qualify for the diesel fuel levy refunds. These refunds amounted to approximately R1 billion in 2012/13.

(b) See table below.

(c)(i) and (ii) See table below

(d) See table below.

(e) All levies are collected to fulfill specific purposes as described by the respective objectives and hence appropriated as such. See table below.

Levy	Date imposed	Amount of levy Fiscal year 2014/15	Objective of the levy	Amount collected fiscal year 2012/13 R million
General fuel levy	Early 1980s; Customs and Excise Act, No.91 of 1964 Introduced for the first time around April 1983	212.5 cent per litre on petrol and 197.5 cent per litre on diesel	Revenue (net of the refunds) used to fund government's general expenditure programmes, including the construction and maintenance of roads and support of public transport. About one third of the revenue is shared with metropolitan municipalities – after the abolishment of the RSC levies.	40,410
Customs and excise levy	1994; Customs and Excise Act, No.91 of 1964 Introduced in April 1983	4 cents per litre on petrol, diesel and biodiesel. The 4 cents per litre has been fixed since the 1990s.	Included in the Southern African Custom Union (SACU) pool and shared amongst the SACU member countries.	929
Road accident fund levy	Road Accident Fund Act, No.56 of 1996 Introduced in May 1997	96 cents per litre on petrol, diesel and biodiesel	Provides cover for all road users against injuries sustained or death arising from accidents involving motor vehicles.	17,621
Equalisation fund levy	Central Energy Fund Act, No. 38 of 1977; Introduced in January 1979	Zero cents per litre on both diesel and petrol since 1996	The fund was in the past primarily used to smooth out monthly fluctuations in the price of liquid fuels. This was an attempt to try and limit the impact of volatile international crude oil prices and fluctuations in the Rand / US $ exchange rate on fuel prices. This effort has not been very successful and was ceased about 5 years ago.	0
Demand Side Management Levy	The Central Energy Fund Act, No. 38 of 1977; Introduced in January 2006	10 cents per litre	Most vehicles in the inland market do not require 95 ULP. In an effort to limit the demand for 95 ULP in the inland area to prevent "octane wastage" and to ensure sufficient supply for motorist who really need it the DSM levy was introduced.	146
Petroleum Pipelines Levy	The Petroleum Pipelines Levies Act, No. 28 of 2004 Introduced in March 2007	0.29 cents per litre	To meet the general administrative and other costs for the functions performed by the Petroleum	29
Slate Levy	The Central Energy Act, No.38 of 1977 Introduced in January 2009	Fluctuates	To finance the balance in the Slate account when the Slate is in a negative balance. If the daily Basic Fuel Price (BFP) is higher than the BFP in the fuel price structure, a unit under recovery is realised otherwise there is an over recovery for the oil companies.	1 605
IP tracer dye levy	Central Energy Fund Act, No. 38 of 1977. Introduced in August 1999	0.01 cents per litre	To curtail the unlawful mixing of diesel and illuminating paraffin, an illuminating paraffin tracer dye is injected into illuminating paraffin. An illuminating paraffin tracer dye levy was introduced into the price structures of diesel to finance expenses related thereto	1
Incremental Inland Transport Cost Recovery levy	Petroleum Products Act, No. 120 of 1977 Introduced in May 2008	3 cents per litre	To finance incremental transport costs related to the alternative mode of transportation of regulated petroleum products and jet fuel from the coast to a set of nominated pipeline zones due to capacity constraints on the pipeline which transports these fuels from the coast to the inland region.	571

Reply received: March 2014

QUESTION NUMBER: 222 [NW271E]
DATE OF PUBLICATION: 28 FEBRUARY 2014
222. Mr T D Harris (DA) to ask the Minister of Finance:

Whether procedures to appoint a new Chairperson of the Financial and Fiscal Commission in terms of section 221 of the Constitution of the Republic of South Africa, 1996, and section 5 of the Financial and Fiscal Commission Act, Act 99 of 1997, have been completed; if not, (a) why not, considering that section 5(3) of the latter specified Act requires that an appointment to any vacancy on the Commission must be made not later than 90 days from the date such vacancy occurs and (b) when will the procedures be completed?
NW271E
REPLY:

Currently the Chairperson of the Financial and Fiscal Commission is also its chief executive officer and accounting officer (section 19(1) of the Financial and Fiscal Commission Act, 1997 –"the Act"). This is an anomaly since the Commission should as executive authority oversee the performance of the chief executive officer and accounting officer. A draft Bill is being finalised to propose an amendment to the Act to shift the chief executive and accounting officer responsibilities of the Chairperson to a newly created administrative position of a chief executive officer. In view of the proposed amendment, the need for a full-time Chairperson is being considered as well as including specific provisions dealing with the appointment (full- or part-time) basis of all Commission members. The proposed amendments as approved by Cabinet for tabling in Parliament will indicate whether or not it would be prudent to fill the position of Chairperson only after the legislative process is concluded.

Reply received: March 2014

QUESTION NUMBER: 191 [NW197E]
DATE OF PUBLICATION: 21 FEBRUARY 2014
191. Mr M G P Lekota (Cope) to ask the Minister of Finance:

Whether, from the period 1 June 2009 to 30 November 2013, he continuously monitored the adherence by officials in all departments to the strict provisions of the Public Finance Management Act, Act 1 of 1999, to prevent any circumvention or transgression thereof; if not, why not; if so, (a) how many instances of circumvention or transgression had he found, (b) what steps had he taken, (c) what improvement in compliance had he found and (d) which of the departments were the least compliant?
NW197E
REPLY:

In terms of section 38(1)(a)(i) of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999), the accounting officer of a department must ensure that his/her department has and maintains effective, efficient and transparent systems of financial and risk management and internal control. In terms of section 38(1)(h)(i) and (ii) of the PFMA, the accounting officer must take effective and appropriate disciplinary steps against any official in the service of the department who contravenes or who fails to comply with the provisions of the PFMA and who commits an act which undermines the financial management and internal control system of the department. The accounting officer is also required, in terms of section 38(1)(n) of the PFMA, to comply and ensure compliance by the department with the provisions of the PFMA. Taking cognizance of the above, the responsibility to continuously monitor the adherence by officials with the strict provisions of the PFMA rests with the accounting officers of the respective departments.

The National Treasury continues to use the Financial Management Capability Maturity Model (FMCMM) to assess the financial maturity of departments. The objective of the assessment is to measure the level of financial management maturity and the status of compliance in departments. Results of the assessments show a steady improvement in departments' financial management, with the average national level being close to the required compliance level 3.

Attached: Average level of Financial Management Maturity in National Departments from 2010 to 2012

Reply received: March 2014

QUESTION NUMBER: 181 [NW187E]
DATE OF PUBLICATION: 21 FEBRUARY 2014
181. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:

(a) On how many tons of (i) coal, (ii) iron ore, (iii) copper ore, (iv) platinum and (v) gold did the Government earn royalties and (b) in each separate case, what did the total in each year amount to in (i) 2011, (ii) 2012 and (iii) 2013?
NW187E
REPLY:

Table 1 shows mineral royalty payments for the fiscal years 2010/11 to 2012/13. For the 2012/13 fiscal year, R436 million, R1 921 million, R48 million, R461 million and R1 129 million were respectively collected from coal, iron ore, copper, platinum and gold. Iron ore and gold generate the most mineral royalty revenue. We do not have information on tonnage. The Department of Mineral Resource publishes data on tonnage mined and sold.

Tables 2 and 3 restate the mineral royalty payments and include the value of sales by mineral type. These tables also estimate the effective mineral royalty rates by mineral type. The legal minimum rate is 0.5 per cent and maximum rates are 5 and 7 per cent for refined and unrefined minerals respectively. The formula-based calculations ensure that the royalty rate adjusts with companies' levels of profitability (earnings before interest and taxes), while the minimum rate of 0.5 per cent provides government with a guarantee of at least some revenue.

Table 1: MPRR payments by commodity, 2010/11 − 2012/13

R million	201/11	%of total	2011/12	%of total	2012/13	%of total
Coal Copper Diamonds Gold and / or uranium Industrial minerals Iron ore Manganese Platinum Zinc Other	258 125 110 515 40 1,675 104 481 69 178	7.3% 3.5% 3.1% 14.5% 1.1% 47.1% 2.9% 13.5% 1.9% 5.0%	297 79 290 817 299 2,501 149 853 143 183	5.3% 1.4% 5.2% 14.6% 5.3% 44.6% 2.7% 15.2% 2.5% 3.3%	436 48 175 1,129 186 1,921 199 461 101 361	8.7% 1.0% 3.5% 22.5% 3.7% 38.3% 4.0% 9.2% 2.0% 7.2%
Total	3,555	100.0%	5,612	100.0%	5,015	100.0%

1. Industrial minerals are geological materials which are mined for their commercial value, which are not mineral fuels and are not sources of metallic minerals. They are used in their natural state or after beneficiation either as raw materials or as additives in a wide range of applications (i.e. industrial minerals are all those minerals other than gold, PGMs, coal, iron ore, chrome, manganese, diamonds, etc.).The commodities grouped under Other are: Chrome, Fluorspar, Nickel, Oil and Gas, Phosphates, Vanadium and Unspecified.

2. The commodities grouped under Other are: Chrome, Fluorspar, Nickel, Oil and Gas, Phosphates, Vanadium and Unspecified.

Attached: Source: Tax Statistics, 2013. Available:

Reply received: July 2014

QUESTION NUMBER: 173 [NW222E]

DATE OF PUBLICATION: 17 JUNE 2014

173. Mr M W Rabotapi (DA) to ask the Minister of Finance:

(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 year and (ii) since 1 April 2014 up to the latest specified date for which information is available;

(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? NW222E

REPLY:

(1)	Period	(a) Departmental Offices	(b) Official Residences
(i) (aa)	2009-10	R 251,996.40	N/A
(i) (bb)	2010-11	R 287,512.80	N/A
(i) (cc)	2011-12	R 212,733.73	N/A
(i) (dd)	2012-13	R 229,908.41	N/A
(i) (ee)	2013-14	R 216,470.54	N/A
(ii)	1 April 2014 – 31 May 2014	R 39, 917.15	N/A

2 (a) (i) Address	2 (a) (ii) Name of the Site	2 (c) Maintenance costs
240 Madiba Street, Pretoria, 0002	240 Vermeulen Street	R 9 302.29 p/m
40 Church Square, Pretoria, 0002;	40 Church Square	R 2 657.80 p/m
John Vorster Drive South, Centurion 0152	SITA Building	R 1 328.90 p/m
3^rd Floor, 120 Plein Street, Cape Town, 8000	120 Plein Street	R 5 021.00 p/m

(2) (b) The benefit of the pot plants is for all the buildings' inhabitants, aesthetics and other health benefits as improving air quality and noise reductions.

(2) (d) The contract for the maintenance of the office plants and supply replacement as and when required, is in place for a period of three (3) years, ending 31 March 2017 for the total cost of R478 403.28.

Reply received: July 2014

QUESTION NUMBER: 139 [NW157E]

DATE OF PUBLICATION: 17 JUNE 2014

139. Mr J R B Lorimer (DA) to ask the Minister of Finance:

(1) What are the details of all expenditure that was found to have been (a) irregular and (b) wasteful in the National Treasury 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 thereof and (ii) how much thereof (aa) has been recovered and (bb) from whom?

NW152E

REPLY:

Please see the link for reply: http://www.pmg.org.za/rnw139-140715

Reply received: March 2014

QUESTION NUMBER: 138 [NW144E]
DATE OF PUBLICATION: 21 FEBRUARY 2014
138. Mr K J Mileham (DA) to ask the Minister of Finance:

(1) Whether any municipalities have used conditional grant funds like the Municipal Infrastructure Grant to finance operational activities; if so, (a) which municipalities, (b) what are the relevant details of such use and (c) what steps will he take in this regard;

(2) whether any disciplinary or criminal charges will be laid against the accounting officers or any other officials of these municipalities for using such grants for operational activities;

(3) whether he will make a statement on the matter?

NW144E
REPLY:

1(a) Yes, the Division of Revenue Act (DoRA) allows municipalities to use a portion (not more than 5 per cent of the allocation) of some grants for administration. For instance all municipalities that are allocated Municipal Infrastructure Grants (MIGs) are allowed to utilize 5 per cent of their allocation towards operations (to pay for salaries and travel costs of Project Management Unit officials working on MIG-funded projects).

(b) Conditional grant frameworks are published in the government gazette and set out the purpose and conditions associated with each grant. Certain conditional grants are specifically designed and intended to fund operational expenditure of the municipalities, such as the Local Government Financial Management Grant (FMG), Infrastructure Skills Development Grant (ISDG) and Rural Road Asset Management Systems (RRAMS) Grant.

(c) No steps will be taken in this regard, as the legal framework makes provision for this requirement.

2. No, no action will be taken in instances where legitimate use has been made of the grants.

3 Given the information provided, there is no need to make a statement with regard to this matter.

Reply received: July 2014

QUESTION NUMBER: 107 [NW117E]

DATE OF PUBLICATION: 17 JUNE 2014

107. Mr D W Macpherson (DA) to ask the Minister of Finance:

(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?

NW117E

REPLY:

(1) (a) and (b) N/A. No credit cards were issued.

(2) (a) (i) and (ii) N/A

(b) (i) and (ii) N/A

(d) N/A

(3) (a) (i) and (ii) N/A

(b) (i), (ii) and (iii) N/A

Reply received: March 2014

QUESTION NUMBER: 101 [NW105E]
DATE OF PUBLICATION: 13 FEBRUARY 2014

101. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:†

(1) Which (a) law firm and (b) advocates appeared on behalf of his department respectively in the court cases against the (i) Opposition to Urban Tolling Alliance (Outa) and (ii) Tollgate Action Group (TAG) in each individual case;

(2) what legal costs were incurred up to date for each individual (a) lawyer in each of the law firms and (b) advocate that appeared on behalf of his department in each individual court case against (i) Outa and (ii) TAG?
NW105E

REPLY:

(1) (a) (i) State Attorney.

(ii) State Attorney.

(b) (i) Advocate JJ Gauntlett SC was on brief for the full duration of the matter;
Advocate FP Pelser was on brief for the full duration of the matter;
Advocate L Sisilana was on brief during April and May 2012;
Adv K Pillay was on brief during August 2012;
Advocate Lekoane was on brief during November 2012; and
Advocate Ngcukaitobi was on brief for the period June to September 2013;

(ii) Advocate JJ Gauntlett SC; and
Advocate FP Pelser.

(2) (a) (i) None

(ii) None

(b) (i & ii) The total amount spent on the Opposition to Urban Tolling Alliance case is R5 786 643.87 and on Tollgate Action Group case R229 568.00.
I am advised that I am not at liberty to disclose the amount paid to each individual because it would infringe the right to privacy of the individuals involved.

Reply received: March 2014

QUESTION NUMBER: 100 [NW101E]
DATE OF PUBLICATION: 13 FEBRUARY 2014
100. Mr T D Harris (DA) to ask the Minister of Finance:

(1) whether, with reference to the reply of the Minister of Rural Development and Land Reform to question 3173 on 09 December 2013, any discussions have been held with the Department of Rural Development and Land Reform on the re-opening of land claims; if not, why not; if so, (a) what were the outcomes of these discussions;

(2) whether the development of a budgetary framework for the re-opening of land claims has been agreed upon with the Department of Rural Development and Land Reform; if not, why not; if so, what amount has been budgeted for land restitution in each of the next five years;

(3) whether he has assessed the affordability of this project and the likelihood of its success in the short to medium term; if not, why not; if so, what are the relevant details;

(4) whether he will make a statement on the matter?
NW101E

REPLY:

1. Yes, the National Treasury has held extensive discussions with the Department of Rural Development and Land Reform. Agreement has been reached on the need to improve the land reform and land restitution programmes, and to ensure better value for money. Discussions are underway to assess the implications of extending the deadline for the submission of land claims.

2. Yes, a budget framework has been agreed. The land restitution programme has been allocated R8.7 billion (R2, 7; R2, 7; R3, 3 billion) over the medium term.

3. The affordability and the need to improve the quality of the spending is under discussion with the department.

4. South Africa land reform and restitution programmes will be addressed in the 2014 Estimates of National Expenditure.

Reply received: March 2014

QUESTION NUMBER: 90 [NW91E]
DATE OF PUBLICATION: 13 FEBRUARY 2014

90. Mr T D Harris (DA) to ask the Minister of Finance:

(1) Whether the National Treasury will take action against members of the executive who fail to adhere to the belt-tightening measures announced by the National Treasury in October 2014; if not, why not; if so, what are the relevant details;

(2) whether the belt-tightening measures announced by the National Treasury provide for the expenditure of R1,3 million on a new vehicle for official use by a premier; if not; what action does he intends taking in this regard?
NW91E

REPLY:

(1) The annual Appropriation Act allocates financial resources to national departments. In terms of section 36(2)(a) of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999), the head of department (Director-General) is the accounting officer and, in terms of 38(1)(b) of the Act, he or she is required to ensure the effective, efficient, economical and transparent use of his or her department's resources. Sections 6(2)(b) and 6(2)(c) of the PFMA empower the National Treasury to enforce this Act in national departments and also requires the National Treasury to monitor and assess implementation of the Act in departments, constitutional institutions and public entities.

The cost containment measures announced by the Minister of Finance in his Medium Term Budget Policy Statement speech were aimed at alerting public sector institutions in general of the need to ensure fiscal prudence especially given the turbulent economic environment that South Africa operates in. During December 2013, the National Treasury issued a Treasury Instruction on Cost Containment Measures which is aimed at limiting expenditure in all PFMA-compliant institutions, specifically as it relates to the engagement of consultants, travel and subsistence, and catering and events. In this regard, the National Treasury has the power in terms of section 6(2)(c) of the PFMA to monitor and assess the implementation of this Treasury Instruction in all PFMA-compliant institutions.

Given the powers of the National Treasury, it cannot take action against executive authorities that fail to adhere to the cost containment measures announced by the Minister of Finance in October 2014. This is especially the case since section 92(2) of the Constitution, 1996 (Act No. 108 of 1996) provides that members of Cabinet are individually and collectively accountable to Parliament for the exercise of their powers and the performance of their functions. Section 133(2) of the Constitution, 1996 contains the corresponding provision for Members of the Executive Council and their individual and collective accountability to the provincial legislature.

(2) As indicated in (1) above, the Treasury Instruction on Cost Containment Measures is aimed at limiting expenditure in all PFMA-compliant institutions, specifically as it relates to the engagement of consultants, travel and subsistence, and catering and events. Rules governing the purchases of motor vehicles for executive authorities are contained in the Ministerial Handbook, which is administered by the Department of Public Service and Administration. The measures announced by the National Treasury therefore do not include the purchasing of motor vehicles for executive authorities. Processes are currently underway at the Department of Public Service and Administration to amend the Ministerial Handbook to address limitations regarding the purchases of vehicles.

Reply received: July 2014

QUESTION NUMBER: 75 [NW82E]

DATE OF PUBLICATION: 17 JUNE 2014

75. Mr A R McLoughlin (DA) to ask the Minister of Finance:

(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 (aaa) departure and (bbb) arrival and (b)(i) total cost and (ii) breakdown of such costs? NW82E

REPLY:

(1) (a) and (b) (i) (aa); (bb) and (cc) None

(a) and (b) (ii) (aa) and (bb) None

(a) (ii) (cc) 1

(b) (ii) (cc) None

(2) (a)(i)(ii)(aaa) 7 May 2014, Lanseria

(a)(i)(ii)(bbb) 7 May 2014, Abuja, Nigeria

(b)(i) R269,108.67 (total cost: R807,326.00 divided equally between National Treasury, The Departments of Trade and Industry and Cooperative Governance and Traditional Affairs).

(b)(ii) 2 Pilots and 1 Host;

Accommodation for crew;

Fuel and surcharges;

Passenger and baggage handling fees;

Over flight and landing permissions;

Air navigation charges;

Onboard catering and refreshments;

Passenger tax;

Airport fees; and

Aircrew visas.

Reply received: July 2014

QUESTION NUMBER 32 [NW37E]

DATE OF PUBLICATION: 17 June 2014

32 Mr. A P van der Westhuizen (DA) to ask the Minister of Finance:

How many persons have benefitted to date from the tax incentive scheme aimed at growing youth employment in South Africa?
NW37E
REPLY:

To date an estimate 133, 000 employees have benefitted from tax incentive scheme. For the months January 2014 to May 2014 the total value of the incentive claimed amounted to R392.5 million. The largest amount claimed under the scheme was R133 million during May 2014.

Reply received: June 2014

QUESTION NUMBER: 21 [NW26E]
DATE OF PUBLICATION: 17 JUNE 2014
21. Dr M J Figg (DA) to ask the Minister of Finance:

(1) What has been the exact increase in the cost of the new Cabinet to the taxpayer from last financial year to the current financial year;

(2) with regard to the Department of Small Business Development (a) has a cost benefit analysis been done and (b) what budget has been allocated to the new Ministry? NW26E

REPLY:

(1) Provision will be made on existing budget votes for the establishment of new Ministry and Deputy Ministry offices in the 2014/15 financial year. This provision will be made, mostly through expenditure reprioritisation, at an average cost of R4 million for a new Deputy Ministry and R8 million for a new Ministry. The carry through costs in respect of this will be provided for in each year of the 2015 medium term expenditure framework period, by departments reprioritising their existing budget allocations. Operational costs incurred by departments must be in line with cost containment guidelines issued by the National Treasury.

In respect of the transfer of functions between departments, including to newly established departments, section 33 of the Public Finance Management Act (PFMA), 1999 stipulates that as functions are transferred between departments; so are the associated funds.

(2)(a) While no formal cost-benefit analysis has been carried out, it is expected that the new Department of Small Business Development will be cost-effective. With the establishment of the Department, the consolidation of government's assistance to small business and co-operatives into one entity, which solely is responsible for understanding the issues and constraints facing the sector and formulating the optimal policy response, is expected to lead to improved performance in terms of the government support which is being provided to small businesses and co-operatives. Small businesses tend to be more labour-intensive than larger companies, so more focussed government policy in this regard should lead to employment gains, as well as productivity gains.

(b) The Department of Small Business Development is in the process of being established through the 2014 National Macro Organisation of the State project, led by the Department of Public Service and Administration. Through this process, as functions are transferred from other departments, the associated budgets will also be transferred and appropriated in an appropriation act, as legislated in section 33 of the PFMA. Prior to allocations being appropriated for the Department of Small Business Development, spending for the current operational activities will be allocated against the Department of Trade and Industry. The Department of Small Business Development has been aligned to this Department for transitional purposes.

Reply received: June 2014

QUESTION NUMBER: 4 [NW4E]
DATE OF PUBLICATION: 17 JUNE 2014
4. Mr N Singh (IFP) to ask the Minister of Finance:

Whether, with regard to the current international economic climate and recent 0,6% contraction in the quarterly gross domestic product, the country is heading for another recession; if not, what steps does he intend to take to ensure that South Africa remains ahead of a recessionary curve; if so, what steps does he intend to take in order to mitigate the effects of such recession? NW4E

REPLY:

The contraction in the domestic economy in the first quarter of 2014 was driven by the mining and manufacturing sectors. The rest of the economy recorded growth of 1.4 per cent. At this point, signals are that growth in the second quarter to be slow but positive. Recent economic data supports some rebound in the manufacturing and mining sectors, which grew by 3.5 per cent and 7.9 per cent respectively month-on-month in April.

Many of the problems holding back, South Africa's growth are of supply nature and this implies that a fiscal response will not be sufficient to accelerate growth. The supply constraints include protracted labour strikes as well as infrastructure challenges, electricity in particular. The State of the National Address highlights areas in which government will support growth.

Government continues to address the infrastructure challenges facing the economy. New coal powered and renewable electricity capacity that will come online over the next few months will relieve the electricity constraints. In addition, government is engaging with business and labour to resolve various impediments to growth. Economic performance is not only a responsibility of government but also a responsibility of business and labour.

Government's interventions in the economy will be further guided by the Medium Term Strategic Framework, which aims through targeted interventions to improve the performance of key sectors of the economy, address infrastructure bottlenecks, improve labour relations, raise the level of research and innovation and increase the level of employment. At the same time, government will continue to maintain macro stability through flexible inflation targeting and countercyclical fiscal policy. Fiscal responses will be communicated in Budget documents as required.

2014-03-06

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