START OF DAY
TUESDAY, 20 AUGUST 2013
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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The House met at 14:03.
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
ANNOUNCEMENTS
The SPEAKER: Hon members, I wish to announce the following.
The vacancy which occurred in the National Assembly owing to the resignation of Dr N C Dlamini-Zuma has been filled by the nomination of Mr C C Mathale with effect from 15 July 2013. [Applause.]
The vacancy which occurred owing to the resignation of Rev K R J Meshoe has been filled by the nomination of Mr W M Thring with effect from 21 June 2013.
The vacancy which occurred owing to the passing away of Mr N M Kganyago has been filled by the nomination of Mr N L K Kwankwa with effect from 6 August 2013. [Applause.]
Lastly, the vacancy which occurred owing to Mr L M Mphahlele’s loss of membership of the National Assembly in terms of section 47(3)(c) of the Constitution has been filled by the nomination of Mr S A Mpethi with effect from 15 July 2013.
The members have made and subscribed the oath or solemn affirmation in my office.
I also wish to announce that, in terms of Rule 319, Mrs M T Kubayi has, with effect from 24 July 2013, been designated as the Parliamentary Counsellor to the Deputy President. [Applause.] This, of course, happened after a formal consultative process with the Deputy President. [Interjections.] [Applause.]
NOTICES OF MOTION
Mr N E GCWABAZA: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates creating an economic climate that will produce more entrepreneurs from disadvantaged backgrounds.
Mr V B NDLOVU: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House debates the importance of reviewing the recruitment policy of the SAPS to eradicate corrupt police officers.
Mr K S MUBU: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the rising levels of unemployment among the youth.
Mr G R KRUMBOCK: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the worrying level of runway incursion incidents at some of our airports.
Mrs C N Z ZIKALALA: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House debates the challenges of the living conditions faced by rural women.
Mr S G MMUSI: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates increasing sporting facilities in rural areas and townships.
Ms F E KHUMALO: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates measures to ensure large-scale investment in the productive sectors of the economy.
Mrs F F MUSHWANA: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates the peaceful return of all stolen land to the rightful heirs by those who were handed the land by land grabbers of yesteryear.
Ms P E ADAMS: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates public investment to create and maintain strategic economic and social infrastructure.
Ms Z S DUBAZANA: Mr Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates assessing the private financial sector’s contributions to the investment and development goals of the country.
PARTICIPATION OF SOCCER AND RUGBY TEAMS ON NELSON MANDELA SPORTS AND CULTURE DAY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:
That the House –
1) notes that on Saturday, 17 August 2013 two of the country’s sporting codes, soccer and rugby, came together during the Nelson Mandela Sports and Culture Day event at the FNB stadium;
2) further notes that on this day and on the same pitch both Bafana Bafana and the Springboks played and won their games;
3) recalls that Bafana Bafana scored a goal in each half to beat Burkina Faso 2-0 and that the Springboks ensured it was a day for South Africa to remember as they thrashed Argentina 73-13;
4) further recalls that more than 50,000 fans turned up at the FNB Stadium to honour Madiba, who once famously said, “Sport has the power to change the world, power to inspire and power to unite people in a way that little else does”;
5) acknowledges that this was a wonderful day as many South Africans came together to celebrate the event held as part of the celebrations of Nelson Mandela's 95th birthday; and
6) congratulates the organisers for this remarkable event which is a fitting testament to the icon in whose name the challenge was played.
Agreed to.
SQUARE KILOMETRE ARRAY TEAM RECEIVE NSTF–BHP BILLITON AWARD
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Hon Speaker, I move without notice:
That the House -
1) notes that the Square Kilometre Array (SKA) team comprising of Tracy Cheetham, the General Manager of Infrastructure and Site Operations, Kim De Boer, the General Manager of People Support and Development, Communications and Project Secretariat, Willem Esterhuyse, the MeerKAT Project Manager, Dr Bernard (Bernie) Fanaroff, the Project Director and Dr Adrian Tiplady, the SKA Site Bid Manager were presented with the NSTF–BHP Billiton Award for an Individual or Team for outstanding contribution to science, engineering, technology and innovation through management and related activities over the past 5 to 10 years;
2) recognises these remarkable individuals’ contributions to the SKA project and their securing South Africa’s role as a major partner in the project;
3) further notes the potential that the SKA project has to advance and promote South Africa’s contribution to humanity’s advancement through science and technology;
4) further recognises the importance of science and technology in the quest to uplift and empower our people and to build a knowledge-based economy on the African continent; and
5) congratulates the entire SKA team on this prestigious award and wish them well in taking the SKA project forward.
Agreed to.
MS BRIGETTE VAN ASWEGEN WINNING WOMEN’S STAND-UP PADDLE BOARDING WORLD CHAMPIONSHIPS
(Draft Resolution)
Ms L L VAN DER MERWE: Hon Speaker, I move without notice:
That the House -
1) congratulates Ms Brigette van Aswegen on her outstanding achievement in winning first place in the Women’s Stand-up Paddle Boarding (14 foot division) World Championships in Hawaii in July;
2) salutes her courage and resolve in even attempting what is arguably known as one of the most treacherous sea crossings in the world;
3) notes that she completed the arduous 55 km race in first place in a time of 8 hours 55 minutes;
4) recognises that Ms van Aswegen is an extremely talented South African sportswoman and ambassador for women’s sport in South Africa and the world; and
5) applauds her success and the inspirational role that she provides to all South Africans.
Agreed to.
MUSLIM COMMUNITY CELEBRATION OF EID AL FITR
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:
That the House -
1) notes that on Friday, 9 August 2013 the Muslim community all over the world celebrated Eid al Fitr following 29 days of fasting;
2) further notes that Eid is the festival marking the end of the holy month of Ramadan, during which Muslims are obligated to stay without food or drink from sunrise to sunset throughout the month;
3) acknowledges that the period of fasting is regarded as a time of deep introspection, which strengthens the bonds of family and community;
4) further acknowledges that during the month of Ramadan, Muslims work extra by spending more time in ibadah and prayers than other days through reciting and trying to understand the Quran and following the teachings of the Prophet; and
5) extends its warmest wishes to the Muslim community in South Africa and around the world on their Eid and wishes them a successful month of Ramadan which has been a test of their endurance and patience.
Agreed to.
MOTION OF CONDOLENCE
(The late former Chief Justice P N Langa)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move without notice:
That the House –
1) notes with deep sadness the passing of former Chief Justice of the Republic of South Africa Justice Pius Langa on Wednesday, 24 July 2013 at Milpark Hospital in Johannesburg;
2) further notes that he had been in hospital for about a month following a long illness;
3) remembers that Justice Langa was among the first judges selected for the Constitutional Court, established in 1994 under the country’s first democratic constitution, and was appointed Chief Justice of the Republic of South Africa in 2005;
4) further remembers that, before he served in the Constitutional Court, he served the Department of Justice for 17 years, became an advocate of the Supreme Court of South Africa in 1977 and was appointed to the Bench by former President Nelson Mandela in 1994;
5) recalls that in recognition of his exceptional service in law, constitutional jurisprudence and human rights, on 22 April 2008 the Order of Supreme Counsellor of the Baobab in Gold was bestowed on Justice Langa by former President Thabo Mbeki;
6) believes that South Africa has lost one of its best legal minds, a dedicated human rights jurist and a veteran struggle activist; and
7) conveys its heartfelt condolences to the Langa family, his colleagues and friends on the loss of this pioneer of the judicial system.
The MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Mr Speaker, Deputy President, members of this august Assembly, I am not using the crude vice of name dropping to claim any association closer to the Langa family than others. I had the opportunity to raise some issues of a judicial nature when I had the unenviable task of addressing both the memorial service and the funeral. I am neither hogging the platform nor “having a second bite at the cherry” in paying tribute to this gallant fighter for justice.
Having learned of his passing on, the Department of Justice and Constitutional Development immediately got tasked with some of the preparatory work with regard to the memorial service and the funeral that took place in Durban. In doing all this, we were asserting that the grief experienced by his loved ones could not be eliminated, but that it was to honour his impeccable legacy as a true son of the soil.
As the Department of Justice and Constitutional Development our work towards supporting the Langa family was made possible by the President when he formally declared the funeral of the late Chief Justice as a special official funeral. Once again, we would like to thank the hon President for the declaration as it duly recognised the pivotal role played by the late Chief Justice in shaping our early democratic jurisprudence. It was indeed a gesture befitting of a jurist who immensely contributed to our democratic transformation in addition to our jurisprudential maturity.
I feel the accolades will be incomplete if Chief Justice Langa was packaged in a one dimension judicial or legal framework. He was an amazing person on a personal level, and I use myself as an example of those who knew about his side of life and that of some members of his family.
Chief Justice Langa grew up in the apartheid South Africa and his life was shaped by the encounters that he and his generation had to endure at the hands of racial supremacy. He pulled himself through the arduous journey of distance education and climbed from the lowest ranks of the judiciary to the highest. Thirty-five years of an arduous journey from a shirt maker to a court clerk, a messenger and ultimately to a Chief Justice is the triumph of the human spirit over adversity. He was the irrepressible spirit reminiscent of our people’s resolve to triumph over apartheid.
Born in 1939 in Bushbuckridge when the clouds of war were gathering in Europe, Chief Justice Langa grew up during the following trying times: the biggest black mineworkers strike of 1946; ascension to power of the apartheid government in 1948; defiant mood of the Defiance Campaign of 1952; Freedom Charter of 1955, women’s march to the Union Buildings in 1956, Sharpville Massacre in 1960, Soweto rebellion of 1976 and many other events that shaped his life as a human rights activist and as a lawyer.
It was therefore logical that when the Constitutional Court was established, Justice Langa, together with 10 others, were appointed as the first judges of the new court by President Mandela. He became Deputy President of the Constitutional Court in August 1997 and in November 2001 assumed the position of Deputy Chief Justice of the Republic of South Africa. He was appointed the country’s Chief Justice and head of the Constitutional Court with effect from June 2005 and he retired in October 2009.
Through his contributions, together with other activist lawyers of that time, he was also instrumental in the formation of the National Association of Democratic Lawyers. This association graduated to the National Democratic Lawyers Association, which he served as President from 1988 until 1994. I had the pleasure of being part of this structure as the project co-ordinator in KwaZulu-Natal when I came out of jail in 1990. Justice Langa also served in the structures of the United Democratic Front. I have therefore all the right to refer to him as Comrade Pius.
Justice Langa was amongst those who took the risk, at the instruction of his organisation, to pioneer groundwork requisite to ensure the post-1990 negotiated settlement. It was a sigh of relief that common ground was found and that the South Africa for all was carefully but painstakingly negotiated at the talks about talks, the Groote Schuur and the Pretoria Minutes which paved the way for the first democratic elections. He participated in all these negotiations. He left this world a better place.
Langa himself assisted other states to fine-tune their own constitutions when he sat on the constitutional review commissions in Zimbabwe, Rwanda and Tanzania, and when he served as a Commonwealth Envoy for the democratisation of the Fiji Island; playing a pivotal role in the Lesotho elections for the Southern African Development Community, the SADC; as a member of the Police Board on the Transformation of the Police; and in the review of health legislation. The list is endless.
As a chair of the Judicial Service Commission, JSC, he highlighted the issue of transformation of the judiciary to represent the demographics of our country. The current JSC is continuing with this task, even though we know that there are forces that seek to reverse the gains that have been made since the late Chief Justice’s time.
Mr Speaker, the late former Chief Justice Langa was not known for fearing unchartered territory. In trying to bring customary law within the fold of our Constitution, he made a ground-breaking judgment in the case of Bhe and Others v Khayelisha Magistrates and others. Citing the flexibility of our judicial system, he sought to bring customary law closer to our Constitution decrying, as he did, that the positive aspects of customary law having been neglected in our law.
As an outstanding member of the ANC in his own right, he could have chosen to turn a blind eye to some of the government offices’ own mistakes. However, he chose to speak truth to power, giving his own party and the government the responsibility to uphold the values of the Constitution and leading by example.
I was glad to hear from Deputy Chief Justice Dikgang Moseneke that the book on Chief Justice Langa’s seminal judgments and opinions in matters of law will be off the press early next year.
I wish to issue a challenge to biographers to catalogue such achievements as Pius Langa’s as an additional memory for prosperity. I have no issue with the quality of the biographies on our shelves, but it would be literary sacrilege if Pius Langa does not become the most sought-after biography of recent times.
As a country, we should be very proud to have had in our midst a humble giant whose indelible legacy will definitely inspire generations to come. We have the confidence that today Chief Justice Langa has rejoined his equally outstanding wife, Thandekile, in eternal peace.
Mr Speaker and the entire Langa family, the whole justice family, the legal profession and all South Africans, we have lost one of our greatest sons.
Akwehlanga lungehlanga. Hamba kahle Sothole, Sodumase, Madev’ agqabul’inkomishi, Nyongo yendlovu, Gubhazi, Mlindeli, Somaphunga! Ngiyabonga. [Ihlombe.] (Translation of isiZulu paragraph follows.)
[None of us is spared this journey. Rest in peace Sothole, Sodumase, Madev’ agqabul’inkomishi, Nyongo yendlovu, Gubhazi, Mlindeli, Somaphunga! (Clan names) Thank you. [Applause.]]
The LEADER OF THE OPPOSITION: Mr Speaker and hon members, I stand here this afternoon in humble admiration of a mighty man. It is with deep sadness that we mourn the loss, almost a month ago, of former Chief Justice Pius Langa. He was not only a great jurist, but one of the founding fathers of our constitutional democracy.
His legacy will always reflect the best of South Africa’s golden era at the dawn of our democracy, a time of hope and rebirth. Much like his first name which rings true to his nature, the word pious also means devout, sincere and moral. Words which do not only describe the type of man that he was, but also the association that we as a nation have with the era when men and women like him were the custodians of our constitutional democracy.
Chief Justice Langa was devoted to building a new, free and fair nation. He sincerely wanted to create a just society for all South Africans. It is appropriate that those who worked with him have said that he always stated plainly that “we must do what is right”.
Born in 1939, Pius Nkonzo Langa’s life was a timeline which represented the best and the worst of South Africa’s history. He left school at the age of 14 and went to work in a clothing factory. The apartheid government wanted him to lead a life of incomplete education and work as a manual labourer, but through sheer force of endeavour, Chief Justice Langa continued to study.
He completed matric on his own outside of the walls of a classroom. His passion for upholding justice and his desire to serve the people led him to a career in the law. He gained his degree through correspondence, and in 1977 was admitted as an advocate of the Supreme Court.
He defended activists, trade unions and masterfully fought the apartheid machine from the inside out. When you think of the journey to this point in his life, you realise that Chief Justice Langa possessed the potent combination of supreme intelligence and deep diligence. Augmented by a moral compass that pointed true north, he was a man who single-handedly forced cracks in the apartheid system.
His appointment as one of the first judges to the highest court in the land was a significant achievement and evidence of the accomplishments of his career and his humanity. But, he will be remembered most for his term, first as a judge and later as the Chief Justice of the Constitutional Court.
His contribution to our jurisprudence is something we can be proud of. He remained bound to his lifelong task of standing up for the weak in society, as witnessed in several of his most historical judgments. In the case of The Government of the Republic of South Africa and Others v Grootboom in 2000, he ruled that citizens had the right to shelter from the state.
He was part of the judgment which forced the government to provide treatment to HIV pregnant mothers. He stood up for women’s rights, being part of both the Carmichele judgment, which held that the state had a duty to protect women from sexual violence, and the Baloyi judgment, which ruled that the state had a duty to provide effective remedies to domestic violence. Pius Langa spent his life striving for the continual improvement of all his fellow citizens.
Three years ago, he spoke of his retirement as the Chief Justice of the Constitutional Court. He spoke of taking off his robes and thought of the words of a dying man, “So much to do, so little done.” This was a man for whom retirement did not mean his work was done. He did not sit back and think of his triumph over adversity or of the prestige of his achievements. He thought of what must still be done.
Almost all of us in this House today had the honour and privilege of being sworn into office by Chief Justice Langa in 2009. Under his watch, we swore to be faithful to the Republic of South Africa and to obey, respect and uphold the Constitution and all other laws of the Republic. We can only hope that in the almost five years since we took this oath, we have been equal to that pledge.
Lala ngoxolo, Chief Justice Langa. Kumndeni wakho, sithi, akwehlanga lungehlanga. Lalani ngenxeba, nina bakwaLanga. Ngiyabonga. (Translation of isiZulu paragraph follows.)
[Rest in peace, Chief Justice Langa. To your family we are saying, you know that none of us is spared this journey. Be consoled, Langa family. Thank you.]
Mr M G P LEKOTA: Mr Speaker, hon members, Chief Justice Pius Langa was to the judiciary what Nelson Mandela was to the executive, a visionary, a passionate and articulate champion of our Constitution. In paying tribute to this extraordinary jurist who is no more, it is befitting that this august House focuses on his call on 9 October 2006, in Stellenbosch, for transformative constitutionalism.
No nation can pay a greater tribute to a true servant of the people than to carry forward his or her legacy. Pius certainly deserves this. May that token to have his ideas on transformative constitutionalism live amongst us until it is realised. Mr Pius Langa pointed out that the Constitution should serve as a historic bridge between the pulse of a deeply divided society characterised by strife, conflict, untold suffering, injustice and a future founded on the recognition of human rights, democracy, peaceful coexistence and the development of opportunities for all South Africans, irrespective of colour, race, class, belief or sex.
In his mind, the building of a new society based on substantive equality was the appointed task of all of us in the legislature, the executive and the judiciary. Equality, in itself, it is important. However, we are required to achieve substantive equality in order to level the playing fields. Until then, we are more or less stuck where we have been before 1994.
The type of transformation he had in mind entailed a socialist and an economic revolution, and nothing less. Only then would the economic playing fields be levelled. Only then would transformative constitutionalism materialise. The Constitution is our nation’s strength. The accord we achieved as diverse people lives in the Constitution. The society we build must therefore have its foundation in the Constitution. Mr Pius Langa understood this as did the courts of the land that he abled.
It is no accident that those whom we hold in the highest esteem in society are indeed those who esteem the Constitution most highly. Mr Pius Langa was such a man. He was a founder member of the National Association of Democratic Lawyers and served as its president in 1988. We served together in the United Democratic Front. Power did not change him. Power only intensified his desire to give to the society the justice and transformation it yearned for and merited after centuries of injustice.
Mr Pius Langa lived by his principles, and the legacy he leaves behind deserves our ownership. He could speak to any person in our country in his or her own language. The former Constitutional Court Justice, Johann Kriegler, was astonished at his ability. Pius Langa knew how to speak with each of the justices in their own language. Most importantly, he knew how to speak up to them.
He started as a factory worker, became a court interpreter clerk, and rose to become the Chief Justice. In this way, he answered his own aspiration and those of the nation. He fused what he wanted for himself with what the nation also wanted. He had a profound understanding of our society. Perhaps the fact that he had been an interpreter clerk and witnessed daily the suffering of his own people at the hands of the apartheid regime must have exposed him deeply and profoundly to the people that he needed to lead and help take forward.
Today, therefore, we come with one voice to hail his achievements, with one heart to mourn his passing and with one understanding to recognise the inescapable imperative to seek substantive equality to transformative constitutionalism.
To his bereaved children, family, friends and colleagues, we offer our condolences, but also our gratitude for his life’s work, his great integrity and his shining example. Hamba kahle [go well] trusted comrade, wise councillor and great spirit. You enriched us, guided us and protected us. May your rewards be commensurate with what you did for us, and may God let your spirit rest in peace. Thank you. [Applause.]
Prof C T MSIMANG: Hon Speaker, today South Africa remembers one of its most valiant and honourable sons, former Chief Justice Pius Langa. The former Chief Justice was an exemplar of truth, fairness, human rights for all, and a courageous struggle stalwart.
Mr Pius Langa was a self-accomplished and highly acclaimed legislator. He began his legal career as a messenger in the then Department of Justice in 1960 and rose steadily through the legal ranks and finally retired at the pinnacle of law as the Chief Justice of South Africa. He was internationally acclaimed as a legislator and promoter of democracy.
The former Chief Justice is an inspiration to all South Africans. We all owe him a great debt of gratitude. On behalf of the Inkatha Freedom Party, I wish to say: Thank you, Pius, for always demonstrating the purest form of a judicial conscience, fearlessly protecting the independence of the judiciary, dauntlessly protecting the values enshrined in our Constitution, and being an outstanding example of a dignified and dedicated jurist.
Hamba kahle qhawe lomzabalazo. Kumndeni wakhe wakwaLanga sithi, akwehlanga lungehlanga. Ngiyabonga. [Ihlombe] [Rest in peace, comrade. To the Langa family we say, please accept what has happened as fate. Thank you. [Applause.]]
Mr S Z NTAPANE: Mr Speaker and hon members, on behalf of the UDM I would like to extend our heartfelt condolences to the family, friends and former colleagues of the late Chief Justice Pius Langa who died at the age of 74 on 24 July 2013. I indeed confirm what many speakers who came before me have already said, namely that the death of Chief Justice Pius Langa robbed South Africa of a great legal mind.
Chief Justice Pius Langa played a critical role in helping to establish, stabilise and solidify our constitutional democracy. He was very committed to human rights, equality and justice. He worked very hard to transform our justice system and to ensure its independence. In his tribute to the late Chief Justice Pius Langa, the UDM president Bantu Holomisa said:
His humble beginnings in Bushbuckridge and, at some point working at a factory, should inspire young South Africans to work hard because it is possible to achieve greatness.
Once more, Speaker, I say especially to his family: We are very sorry for your loss. Chief Justice Pius Langa was a great man who will live in our memories forever. May his soul rest in peace! Thank you. [Applause.]
Dr C P MULDER: Speaker, agb Adjunkpresident, agb parlementslede, voormalige Hoofregter Pius Langa het ’n lang pad geloop deur sy loopbaan, en ek dink die groot rede vir sy sukses was dat hy nie ’n aanstelling was of iemand wat van bo ingeforseer is in ’n pos nie. Hy het deur die jare homself opgewerk.
Dit is so dat hy in 1994 deel was van die eerste groep regters wat aangestel is in die Grondwetlike Hof, en hy het dadelik daar sy stempel afgedruk. In 2005 is hy aangestel as Hoofregter. Op ’n persoonlike vlak het ek die voorreg gehad om vir drie jaar terwyl ek ’n lid was van die Regterlike Dienskommissie – wat nie ’n maklike kommissie is nie; ’n kommissie waar dit soms warm en moeilik raak – onder sy voorsitterskap deel te wees van daardie kommissie en te sien hoe hy op sy bekwame, rustige manier orde handhaaf en die werk gedoen kry.
Vir 17 jaar was hy ’n lid van die Departement van Justisie en Grondwetlike Ontwikkeling waar hy gewerk het voor 1994, waar hy ook sy bydrae gemaak het van die onderste vlak af en hom opgewerk het tot in die hoogste pos in ons regspleging.
Die VF Plus wil graag ons opregte simpatie en meelewing betuig met sy familie, met sy gesin, en met sy naasbestaandes wat ook ’n pa en ’n oupa verloor het. Ons opregte meelewing gaan uit na hulle en na almal wat met hom te doen gehad het en met hom saamgewerk het. Mag u krag vind in hierdie tyd om aan te gaan. Baie dankie. (Translation of Afrikaans speech follows.)
[Dr C P MULDER: Speaker, hon Deputy President, hon Members of Parliament, former Chief Justice Pius Langa walked a long road through his career and I think the big reason for his success was that he was neither an appointment nor someone who was forced into a post from above. He worked his way up through the years.
It is true that in 1994 he was part of the first group of judges to be appointed to the Constitutional Court, where he immediately made his mark. In 2005 he was appointed as Chief Justice. On a personal level, I had the privilege of spending three years as a member of the Judicial Service Commission – not an easy commission, but one where things can get hot and difficult – under his chairmanship as part of that commission, watching how, in his competent, calm way, he maintained order and got on with the job.
For 17 years he was a member of the Department of Justice and Constitutional Development, where he was employed before 1994, and where he also made his contribution while working himself up from the lowest level into the highest post in our administration of justice.
The FF Plus would like to convey its heartfelt sympathy and condolences to his family, his relatives and his next of kin, who have also lost a father and grandfather. Our sincere sympathy goes out to them as well as to everyone who had dealings with him and worked with him. May you find the strength at this time to carry on. Thank you.]
Mr S N SWART: Speaker, the ACDP learnt with great sadness of the death of former Chief Justice Pius Langa, and we would like to again convey our sincere condolences to his family and friends.
As other speakers have pointed out, he was one of the first judges appointed to our Constitutional Court after 1994 and was the Chief Justice from 2005 until his retirement in 2009. He played a crucial role in laying the foundations of our young constitutional democracy and continued to promote the independence of the judiciary as one of the main cornerstones of our democracy. During his term in the courts and after his retirement, he worked tirelessly building a nonracist, nonsexist and just society founded on the values of human dignity and equality, as set out in the Constitution and the rule of law.
I had firsthand experience of Chief Justice Langa’s vast experience and sharp intellect during the groundbreaking certification case heard over a number of weeks before the Constitutional Court in 1995. I also had many opportunities to interact with him on the Portfolio Committee on Justice and Constitutional Development, when we discussed matters of legal concern. He was chiefly often concerned about access to justice. I always found him to be extremely courteous, but also very concerned and firm on those issues which were of concern to him.
He also presided over a very important case involving the ACDP’s right to contest the 2006 local government elections in Cape Town. This was an extraordinary case, as the court agreed to sit after hours on an urgent basis and found in our favour, again delivering a very urgent judgment. This showed his commitment and that of those other judges of the Constitutional Court to uphold justice. This judgment is widely used to assist political parties when the Independent Electoral Commission does not allow them to contest elections for administrative reasons.
I joked with him a while later, after that judgment, when he was in Parliament with the Portfolio Committee on Justice and Constitutional Development, that I was preparing our next urgent application. He naturedly appreciated that jest and welcomed our further application.
At his funeral in Durban his daughter Phumzile Langa said, “He was a generous man. He loved each and every one of us. We were blessed to have him.” She described her father as a private man who loved to dance and sing. “He was the one we ran to since our mother passed away. We felt safe with him. He was the one who loved us.” She said she was thankful that God had blessed the family with him.
We in the ACDP are thankful that God blessed us and the nation with such a Chief Justice who leaves a rich legacy as a constitutional jurist for generations to come. Our prayers are with his family and friends during this time of bereavement. May his soul rest in peace! I thank you.
Mr I S MFUNDISI: Hon Speaker and hon members, the life of former Chief Justice Langa is surely a life well lived. The generosity that his children speak of does not only relate to his family but relates to all South Africans. His contribution to our justice system gave us so much more than we could ever ask for. He indeed served selflessly with his intellect and knowledge.
The late Chief Justice Langa is the epitome of the truth in the saying, “Some are born great, some achieve greatness.” He achieved greatness. He founded the National Association of Democratic Lawyers and that speak volumes on his understanding of democracy and the intricate role that the legal fraternity must play in fully establishing a just democratic society. We shall forever be grateful for his massive contribution to the drafting of the Constitution in which we pride ourselves.
His life story is an inspirational one, worth being told over and over again, especially to our children. The fact that he worked as a factory worker before he went on to study law shows that dreams come true when the dreamer keeps focusing on the bigger picture.
His life testifies that it is possible to reach the highest height of one’s potential, even if one started at the bottom. With no doubt, he was a great legal mind and it is inspiring to know that he started as a court interpreter in the legal field and progressed deservedly to head the highest court of our land. May his legacy continue to inspire generations.
The UCDP sends our condolences to his family, the legal fraternity and all South Africans. May his soul rest in peace!
Mr S A MPETHI: Hon Speaker, the life of Chief Justice Pius Langa taught us that one should live with purpose and add value to make a difference. He dedicated his life to the country at large. Azania lost one of its giants who contributed to the justice system without reservation. His way of living generated two important attributes of leadership, which are courage and humility. Justice Langa contributed to the triple S - he served, he suffered and he sacrificed for our country, Azania. Robala ka khutšo ngwanatšatši. [Rest in peace, son of the soil]. Let us follow his example. May his soul rest in peace! I thank you.
The SPEAKER: Hon members, the noise in the House is too high. We are trying to listen to the motion of condolences and not the noise.
Ms M SMUTS: Hon Speaker, I found the official funeral service for the late Chief Justice Pius Langa a profound experience, even watching from afar. It most magnificently displayed the fact that a new legal order has been firmly established in less than two decades.
The oratory of two Chief Justices, the former and the present, played no small part in that demonstration. But I think it was the character of our departed Chief Justice that imbued the entire proceedings with a historical dimension. His life story and career path, from clerk and interpreter to Chief Justice, now well recited, is itself the story of the legal transition.
He was Pius by name and pious by nature. His second name was Nkonzo, which means prayerful or pious, as Deputy Chief Justice Moseneke has written. He also brought to his role patience, which is one of the fruits of the Spirit, and humanity, which the concept of ubuntu encapsulates.
It is appropriate that we as the legislative branch should consider his legacy as we continue the work of the legal transition.
Firstly, let us be sure to take forward the work that the former late Chief Judges Langa and Chaskalson did together on an appropriate model for the Office of the Chief Justice and the Independent Administrative Agency for the courts, which the Justice Minister will table in due course. That work will complete the changes we have already legislated in the Constitution Seventeenth Amendment and the Superior Courts Acts.
Secondly, as we work on the Legal Practice Bill, let us remember the indispensable role of the independent advocate who will take politically and socially unpopular cases and who is able to take them precisely because he is independent. Pius Langa was such an advocate through the dark days before the transition and even during the dark hours after the new dawn had broken.
There is a third area of work which we should commemorate and that is the freedom of expression. Chief Judge Langa gave seminal, classic free speech judgments in the Islamic Unity Convention and in De Reuck. He was also instrumental in helping the SA National Editors Forum, Sanef, and Print and Digital Media SA to ward off the prospect of a media appeals tribunal by chairing the Press Freedom Commission, especially created by those bodies.
Typically, he said in his foreword that although the media fulfils a critical role, and I quote:
It does not operate in a vacuum; the manner in which it goes about its work will always be of interest to the greater public. This is so because the media concerns people, it is about people. It is about how their lives are touched. Regulation will accordingly always be of interest, particularly in a democratic constitutional state that espouses the values of human dignity, equality and freedom.
The architecture he proposed for the new press bodies based on coregulation by the public and the press was not, in fact, exactly what they adopted. I don’t think he liked that. I think there must have been many occasions over the years when his displeasure or his anger was provoked. It is all the more remarkable therefore that imperturbability sat on him like patience on a monument. But then, patience is among the fruits of the Spirit.
Mrs Beauty Langa predeceased the Chief Justice. We extend our condolences to their children and also to the judge’s surviving sibling, Mr Mandla Langa, who was once the chairperson of the Independent Communications Authority of South Africa, Icasa. It cannot be an accident that two gentlemen with such apparently natural grace and self-possession in leadership came from one family. I reiterate what I said to Mandla years ago, not once, but more than once: Thank God for their parents, Mr and Mrs Langa. [Applause.]
Mr R B BHOOLA: Mr Speaker, there are many sorrows in life and indeed one of the greatest sorrows that no one would like to experience is the sorrow of death. It is with great sorrow and sadness that we mourn the death of a truly great world-class impeccable leader born from humble beginnings.
Let me, on behalf of the MF, extend our deepest heartfelt condolences to the family, legal fraternity and the friends of our beloved former Chief Justice Langa, whose death indeed is a great loss to our country. Undoubtedly he leaves behind a legacy amongst all South Africans and the world, infused with honesty, integrity, dignity and above all, hard work.
His in-depth knowledge, indescribable determination and immeasurable commitment ensured that justice was not preferential but delivered to all fairly, including the minority communities, to make our country a better place for all. He was a great role model and a lesson to young people that it is hard work and commitment that take you forward, not shortcuts.
One of his amazing characteristics was that he put his legal expertise to good use to rid this country of institutional racism and apartheid colonialism. He was a good and competent lawyer who made the painful effort to really achieve, and also a great political activist - not only him, but his entire family as well.
His brother, Ben Langa, was assassinated by an agent of the state, so the agent of the state used the ANC people to kill an ANC person. President Jacob Zuma and Oliver Tambo had to go and explain to the family and apologise for the occurrence. How many people or families would have been able to deal with an issue like this, understand what went wrong, what happened, and not deflect themselves from their commitments, for the greater good of the struggle in the country? This shows a very great depth of character, not only of Chief Justice Langa, but of his entire family.
His work, together with other great gians, in crafting the Constitution was quite visionary. The high-quality judgments that he wrote contributed in setting a firm foundation for the studies in Constitutional Courts which are taught by universities and academics all over the world.
He upheld the very dignified decorum of the Constitutional Court and, undoubtedly, commanded great respect. Even after he retired he was still involved in the media tribunal of the SA National Editors Forum, advancing our country to greater heights.
I want so say to his family: We pray that in this time of loss, you’ll find God’s love much more and that you’ll find comfort in the presence of the Lord. We pray that God pours upon you his sweet amazing grace and overflow your hearts with peace as you live in his ambience.
Of the former Chief Justice I say: A great soul serves everyone all the time; a great soul never dies. It brings us together again and again. As all Hindus celebrate Raksha Bandhan today, we pray for a bond of love and security. Let us be reminded of Gandhi Gee who once said that there are no goodbyes for us. Wherever Chief Justice Langa is, you will always be in our hearts. May your soul rest in peace! I thank you.
Debate concluded.
Motion agreed to, members standing.
The SPEAKER: The presiding officers associate themselves with the motion. The condolences of the House will be conveyed to the Langa family.
PRECEDENCE NOT GIVEN TO QUESTIONS ON 21 AUGUST 2013
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, I move the Draft Resolution printed in my name on the Order Paper, as follows:
That, notwithstanding Rule 29(8) and Rule 113(1), Questions not be given precedence tomorrow.
Agreed to.
UNPARLIAMENTARY LANGUAGE
(Ruling)
The SPEAKER: Hon members, on Tuesday 18 June 2013 I delivered a ruling on the remarks made on 12 June 2013 by the hon R B Bhoola during the debate on Vote No 1 – The Presidency, notwithstanding the hon Bhoola’s absence from the House at the time. The hon member had accused the hon Kalyan of being complicit in her party’s alleged racism and of not acting in a professional manner, but rather like a clown and a mascot. [Laughter.] Order!
I ruled that those remarks were out of order, and I specifically indicated in my ruling that the hon Bhoola would be asked to withdraw his remarks once he was present in the House. I am informed that hon Bhoola is indeed in the House today. [Laughter.] I therefore direct him to withdraw his remarks!
Mr R B BHOOLA: Mr Speaker, indeed, I recall calling the hon Kalyan a clown and a mascot and I withdraw that. [Laughter.] [Applause.]
UNPARLIAMENTARY LANGUAGE
(Ruling)
The SPEAKER: Order! Hon members, on Tuesday 18 June 2013, during the First Reading debate on the Appropriations Bill, a point of order was raised when hon Yengeni made her speech on the Bill. The Deputy Chief Whip of the Opposition Party, hon Kalyan, rose on a point of order that the member at the podium had accused the leader of the DA of deliberately misleading the nation and that the expression was unparliamentary. My preliminary ruling was that the leader of the DA was not a member of this House. However, I undertook to study the Hansard and return to the House with a considered ruling.
Having had an opportunity to study the Unrevised Hansard, I wish to rule as follows. According to the Unrevised Hansard, the hon Yengeni said, “The DA of Premier Zille is deliberately misleading the nation with unfounded lies.”
Hon Yengeni was referring to the party of Premier Zille as misleading the nation.
Previous rulings on unparliamentary language have held that remarks that would have been regarded as unparliamentary against members of the House were not unparliamentary if made against a political party or people who are not members of this House. The same principle is applicable to hon Yengeni’s reference to the party. It is a point of view of the hon member, and not unparliamentary. [Applause.]
LOCAL GOVERNMENT ELECTIONS
(Member’s Statement)
Ms M J Segale-Diswai (ANC): Hon Speaker, the ANC welcomes the outcomes of 20 by-elections held in the Eastern Cape, KwaZulu-Natal, Mpumalanga, North West and the Western Cape on 7 August 2013. Out of the 20 wards contested, the ANC retained 15. People have still shown support for the ANC in all provinces. [Applause.]
In many wards where former ANC councillors have contested elections as independent candidates, the ANC emerged victorious. The ANC has silenced those who wanted to win councils using unscrupulous backdoor methods by consciously undermining the voice of electorates. We hope that councillors will focus their energies on the work at hand - service delivery.
Councillors play a very central role which requires the identification of community needs, setting objectives to meet those needs, establishing priorities between competing demands and allocating resources. However, we are concerned by the delayed by-election of ward 22 of Abaqulusi Municipality in the town of Vryheid, in KwaZulu-Natal. This matter must be put to rest so that people in that ward can have their representative. We also sent our condolences ... [Time expired.] Thank you. [Applause.]
DA’S PREMIER CANDIDATE FOR GAUTENG
(Member’s Statement)
Mr S C MOTAU (DA): Hon Speaker, on the nomination of Mmusi Maimane as the DA’s premier candidate for Gauteng, we noted how the cadres at Luthuli House smirked at his nomination. [Applause.] Need I remind this House that not so long ago the same cadres laughed at the DA’s bid to govern the Western Cape.
The DA has publicly announced the candidate for premier for Gauteng, but the ANC remained silent on theirs. In the meantime, the DA’s premier candidate, Mmusi Maimane, will campaign tirelessly in every corner and street in Gauteng. Mmusi Maimane will bring the DA’s vision to establish an open opportunity society for all to the people of Gauteng. [Interjections.]
The DA-led Gauteng government will establish an environment which will extend opportunities that will empower people to secure jobs that will improve their lives. Under Mmusi Maimane’s leadership, the DA will form a government that will focus on clean governance that prioritises people, not the politicians.
Under the DA administration, Gauteng will become a place where services will be delivered; corruption will be the exception not the rule; and where young people will have job opportunities so that they can make a success of their lives. I thank you. [Applause.]
VIOLENCE IN MANENBERG
(Member’s Statement)
Ms B D FERGUSON (Cope): Hon Speaker, the community of Manenberg finds itself under siege yet again. Good decent families are forced to cower while criminals brazenly go about their business. The community of Gugulethu is constantly disturbed by the sound of gunfire coming from Manenberg. They, too, cower as they don’t know what to expect. Two communities are held hostage by gangsterism.
The question is simple: What does the government intend to do to stop this plague of violence? How many more sleepless nights do the people of Manenberg, Gugulethu and other surrounding areas have to endure before meaningful action is taken by the government?
The children’s parks are no-go areas, except for the drug addicts and their dealers.
Fourteen schools in the area had to be closed temporarily. The reason for this is that teachers were unable to raise their voices over the gang calls. How do learners learn when they are forced to cower in a corner as bullets fly over them? The teachers and learners are not safe; but they could be. Cope is dismayed by the petty politicking of those in national government around the closure of 14 schools in the area, whilst they do not consider the crisis that the people of Manenberg is facing on a daily basis.
The President could call in the SA National Defence Force, SANDF, to patrol the area as he did in Kya Sands informal settlement in the north-west of Johannesburg in 2010. If it could be implemented there, why not in Manenberg? Should the people of Manenberg feel that the President does not care about their plight? Cope calls on the President and the government to make decisive, meaningful interventions to stop this terror. I thank you. [Applause.]
SA POLICE SERVICE EDUCATION TRUST
(Member’s Statement)
Mrs P A MOCUMI (ANC): Hon Speaker, in its election manifesto, the ANC identified five priorities for this term of office. One of them was to reduce crime. With regard to the efforts of the South African Police Service, SAPS, to fight crime, we were saddened by the statistics of our brave men and women in blue who are killed during their line of duty.
We will never forget our heroes and heroines who have dedicated their lives to the new struggle for a crime-free South Africa. We would like to congratulate the SAPS for successfully establishing the SA Police Service Education Trust aimed at supporting the educational needs of the children of police members who died in the line of duty. This is indeed a fulfilment of a promise made during the 2010 commemoration ceremony. The ANC has delivered on its promises.
This trust will ensure that we address one of the priorities of our ANC-led government - education. We encourage the recipients of these bursaries to do us proud by excelling in their studies and being responsible learners and students. The ANC congratulates all the recipients of these bursaries. Thank you. [Applause.]
FRAUD AND CORRUPTION IN DEPARTMENT OF HOME AFFAIRS
(Member’s Statement)
Ms H N MAKHUBA (IFP): Hon Speaker, recently a Pietermaritzburg woman discovered that, according to Home Affairs, she has been married for the past 10 years to a man she has never met. She never lost her ID. This clearly shows that Home Affairs still has more to do in dealing with issues of corruption. The matter was reported and the department has not been helpful in providing a quick and effective solution to this problem of a woman who is suffering because of the administrative incompetence of many Home Affairs offices.
A mechanism must be in place to ensure that such incidents are dealt with swiftly instead of things taking months to happen, because this is an example of the seriousness of corruption within provincial offices of the Home Affairs.
Victims of fraud should not suffer due to the actions of certain corrupt Home Affairs officials. When individuals follow proper procedures in their quest to clear their names, there should be a quicker way to resolve these cases. The department should have a dedicated unit to investigate such cases and to ensure that those involved in this type of fraud are identified, arrested and given lengthy jail terms. Thank you. [Applause.]
CALL FOR REMOVAL OF ADV LEBALA FROM SERITI COMMISSION OF INQUIRY
(Member’s Statement)
Mnr P J GROENEWALD (VF Plus): Speaker, die Seriti-kommissie van ondersoek na die wapenskandaal het pas begin waar getuienis gelewer word oor die wapenaankope van die SA Nasionale Weermag, SANW. Die sukses van die ondersoek hang grootliks af van die getuienis wat gelewer word, en die publiek wil hê dat getuies geloofwaardig moet wees.
Om hierdie rede is getuienisleiers aangestel vir die kommissie. Een van die getuienisleiers is adv S Lebala. Om geloofwaardigheid te verseker, word verwag dat getuienisleiers bo verdenking en eties onberispelik moet wees. Ongelukkig kan dit nie van adv Lebala gesê word nie. In ’n hofsaak in die Noord-Gautengse Hooggeregshof waarin adv Lebala vir ’n respondent opgetree het, is bevind dat die respondent se prokureur meineed gepleeg het in ’n verklaring en het die hof gelas dat die prokureur deur die provinsiale tak van die Regsvereniging van Suid-Afrika ondersoek moet word.
In die hofsaak erken adv Lebala dat hy verantwoordelik was vir die opstel en die inhoud van die verklaring. In wese het adv Lebala dus meineed gepleeg. Dit is duidelik dat Lebala nie skroom om vals verklarings van getuies op te stel nie. Hy is nie geskik om as ’n getuienisleier vir die kommissie op te tree nie en moet dadelik verwyder word uit die kommissie.
Die VF Plus sal ook die Balieraad versoek en ’n klag indien om adv Lebala te ondersoek, want in die verlede is sulke regsverteenwoordigers geskrap van die rol. Hy behoort ook geskrap te word as ’n advokaat. Hy doen die kommissie ’n oneer aan. (Translation of Afrikaans speech follows.)
[Mr P J GROENEWALD (FF Plus): Speaker, the Seriti Commission of Inquiry into the arms deal has just commenced, where evidence will be given regarding the armaments procurement of the SA National Defence Force, SANDF. The success of this inquiry is largely dependent on the evidence that is given, and the public wants the witnesses to be credible.
For this reason evidence leaders have been appointed for the commission. One of these evidence leaders is Adv S Lebala. In order to ensure credibility, it is required that evidence leaders be above reproach and ethically faultless. Unfortunately this cannot be said of Adv S Lebala. In a court case in the Northern Gauteng High Court, in which Adv Lebala appeared for a respondent, it was found that the attorney of the respondent had committed perjury in terms of an affidavit and the court ordered an investigation into this attorney by the provincial branch of the Law Society of South Africa.
In the court case Adv Lebala admitted that he was responsible for the drafting and content of the affidavit. Adv Lebala therefore essentially committed perjury. It is clear that Lebala will not hesitate to draw up forged affidavits by witnesses. He is not fit to act as an evidence leader for the commission and should immediately be removed from the commission.
The FF Plus will also appeal to the Bar Council and lodge a complaint to have Adv Lebala investigated, because in the past such legal representatives have been struck off the roll. He should also be struck off as an advocate. He is a disgrace to the commission.]
SANITARY TOWELS FOR RURAL SCHOOL GIRLS
(Member’s Statement)
Ms A C MASHISHI (ANC): Speaker, the ANC commends the sterling work performed by the North West government by distributing sanitary towels to 300 girl-learners at two rural schools at Dry Harts near the Taung region of the Mompati District Municipality.
It is a known fact that most women, especially on the outskirts of the country, resort to unhygienic practices to survive the cycle. And more often than not, sanitary towels are a luxury for millions of women due to the high levels of poverty.
We are certain that this intervention will contribute positively to the lives of our young girls. We are aware that some young girls miss a significant amount of school hours during their menstruation, largely because of lack of the modern sanitary products, and this contributes to the low-attendance rate, which eventually leads to failure or dropouts.
We call on all sectors of society to follow suit and reach out to young girls.
Over the years, the ANC has mobilised and advocated for a caring society. And as the ANC we say, working together, we can do more. Thank you. [Applause.]
GANGSTERISM AND DRUG-RELATED VIOLENCE IN WESTERN CAPE
(Member’s Statement)
Ms D KOHLER-BARNARD (DA): Chair, over the recent weeks the situation in the gang-infested areas in the Western Cape has escalated to such an extent that children and teachers cannot go to school. It took a special intervention from the City of Cape Town Metro Police to ensure that children were safe and could go to school again yesterday.
The death toll from gang-related violence in the past year has reached hundreds, yet the national Minister of Police continues to fail to address this crisis. The DA-run Western Cape provincial government has been asking this Minister of Police since last year to address this issue, but he has refused to co-operate. Hence he has forgotten that policing is a national competency and that he is responsible for policing across South Africa, and not just in the ANC-run provinces. [Interjections.]
In the past few years, the Western Cape government has attempted to implement various measures to curb violence in the Western Cape. Every single attempt has been blocked and undermined by Minister Mthethwa who puts cheap politicking ahead of the policing needs of the Western Cape. It is time for him to take action and re-establish the specialised gang and drug units. Anything less will be a dereliction of duty. [Applause.]
LAUNCH OF 24-HOUR NEWS CHANNEL ON SABC
(Member’s Statement)
Ms S R TSEBE (ANC): Hon Speaker, the ANC welcomes the launch of a new 24-hour channel launched by the SA Broadcasting Corporation, SABC. This long-awaited channel will now add a new voice to the news channels by increasing diversity and giving voices to our citizens. This SABC platform should strengthen the public broadcaster by giving viewers news content that does not only reflect the diverse nature of South Africa and Africa, but also educates and informs viewers.
We are confident that the SABC leadership will make sure that this channel will be made available to the masses of our people. We are optimistic that this channel will be able to cover news across the length and breadth of our motherland and be the voice of the voiceless. Thank you.
CONVICTED DRUG DEALER’S FAMILY ON POLICE PAYROLL
(Member’s Statement)
Mr V B NDLOVU (IFP): Speaker, the IFP calls on the National Police Commissioner, Riah Phiyega, to urgently investigate why convicted drug dealer, Panganathan “Timmy” Marimuthu, and his family are still on the payroll almost two years after their dubious appointments as crime intelligence agents were uncovered. The fact that two years have passed and his family is still being paid salaries evidences corruption at the highest level. Since they were implicated in corrupt activities linked to former crime intelligence head, Richard Mdluli, and his former chief financial officer, Solly Lazarus, the Marimuthu family should not only be removed from their posts, but should also be ordered to pay back all the monies they have received over the past two years.
It is clear that there are others linked to these issues who authorised these payments. They must also be exposed, arrested, charged for their part in paying these salaries, and prosecuted. Thank you.
ANC’S ABSENCE AT MEMORIAL SERVICE OF MARIKANA MASSACRE
(Member’s Statement)
Mr D A KGANARE (Cope): Hon Speaker, last week on Friday was the anniversary of the Marikana massacre. It was the day on which the democratic government of the ANC decided that those who threaten the monopoly of their alliance should be ruthlessly annihilated. It was a sad day when the democratic ANC-led government decided that those who honestly demand a living wage were enemies of the revolution and therefore had to be executed. [Interjections.]
The absence of the government at the memorial service is clearly indicative of the arrogance of the ruling party. [Interjections.] Their actions speak louder than their words. Let those without ears see. The ANC says that they are the government, of the ANC, by the ANC, for the ANC. They do not care for anybody other than those who agree with them. Let those with ears hear and those with eyes see. The ANC is for the mine owners and Cosatu unions which take their cue from Luthuli House only.
The question is: Will the ANC do the same to Numsa members who are now on strike? To the ANC, Marikana was not a tragedy; it was only a public relations inconvenience. What we are experiencing is a revolution betrayed by revolutionary rhetoric. The question is: Will the ANC assure all of South Africa that Marikana will never be repeated? [Interjections.]
The DEPUTY MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Mr Speaker, on a point of order: The hon Kganare in his statement said that the ANC-led government had deliberately decided to eliminate people. [Interjections.] Now, we assume that by “government” he meant the national executive, as defined in the Constitution of the Republic. That national executive is made up of members of this House. He is implying that members of this House sat as a collective, as a constitutional structure, and took the decision to murder people. [Interjections.] I would submit that that is unparliamentary. [Interjections.] [Applause.]
The SPEAKER: I will study the Hansard and come back with a ruling. It certainly does sound unparliamentary to me, but I will come back with a formal ruling. [Interjections.] Order, hon members!
REINSTATEMENT OF SEXUAL OFFENCES COURTS
(Member’s Statement)
Mr J B SIBANYONI (ANC): Hon Speaker, the ANC welcomes the reinstatement of sexual offences courts in South Africa, which will assist in stemming the wave of sexual crime against women and children. The return of courts specialising in sexual offence crimes aims to reign in violence against women in South Africa.
Frequent incidents of rape and sexual assault have given South Africa one of the highest rates of sexual crime in the world. There is also substantial underreporting of such crimes, as the police and court processes are often so unsympathetic that they constitute secondary trauma. Some magistrates have reportedly refused to try traumatic cases of rape, especially brutal child rape, because of the effect it has on them.
A total of 57 courts will be established over the next three years. There is a budget for the appointment of specialist prosecutors and some have already been trained. The reinstated courts will function through specially trained officials and equipment, which will enable victims to identify the accused from a private testifying room, when necessary. The court will also have a designated court clerk and a court preparation programme to help witnesses prepare for appearances and to provide debriefing following testimony.
These specialised courts will be centred on the needs of the victim, ensuring a prompt, effective court system that will reduce the chances of any one victim experiencing a second abuse. Thank you.
USE OF FOOD PARCELS IN BY-ELECTION WARDS
(Member’s Statement)
Mrs J F TERBLANCHE (DA): Hon Speaker, the DA has been informed that the Department of Social Development had embarked on the profiling exercise, focusing only on the nine wards in which the 18 September by-elections will be held. Officials from Klerksdorp, Wolmaransstad and Ventersdorp were instructed to work in Potchefstroom, but only in the by-election wards. Some of the officials approached the DA on an anonymous basis for fear of being victimised. These officials were instructed that profiling must be completed before the by-elections in order for food parcels to be distributed exactly in the same way as the 7 August by-election in Ward 9 in the Tlokwe Municipality.
It appears that the Minister, Bathabile Dlamini, is unfazed
by the public outcry about her abuse of state resources during this August’s by-election when she was involved in the distribution of 400 food parcels in Ward 9 at a ratio of one food parcel for every two ANC votes.
The Minister should explain why officials from Dr Kenneth Kaunda District have been deployed in the ANC voting districts of the nine wards to be contested during the 18 September by-elections. This action by the Minister may appear to be benevolent, but it is evident that in itself it is an attempt at vote rigging. Moreover, voters recognised the reason for this behaviour.
WORKSHOP HELD BY ESKOM AND ORANGE FARM ELECTRICITY FORUM
(Member’s Statement)
Mr S J NJIKELANA (ANC): Hon Speaker, on 17 August this year the Orange Farm Electricity Forum held a leadership workshop with local community leaders to address challenges of electricity supply, with particular focus on how to co-operate in addressing such problems.
At the workshop, Eskom explained to local leaders how electricity is supplied and the impact of illegal connections, including tampering with meters, and saving electricity. Participants appreciated such inputs and committed to do their best to mobilise the rest of the community to work closely with Eskom on how to address local challenges regarding electricity. It was quite clear to them that only a win-win situation will improve the supply of electricity with minimal interruptions. It was agreed to continue with the workshops at ward level so that more residents could benefit.
Historically, the area has been riddled with tensions and strife on, amongst other things, the supply of electricity, but recently the situation has turned around for the better. The ANC has consistently played a strong role in monitoring the response of the state-owned enterprises to economic transformation and social development, hence the success of the workshop. The ANC-led government, through its state-owned companies, will follow suit and work together with the communities for a better life for all.
Iyabulela ilali. [I thank you].
BLANKETS DONATED TO THE AGED
(Member’s Statement)
Nkul X MABASA (ANC): Muxiximeki Xipikara, tatana wa hina loyi a nga nghwazi, loyi a nga riki mudyuhari ntsena kambe a nga eka ntlawa wa lava malembe lamotala, Tatana Andrew Mlangeni, u tiva hi ku hetiseka ku vava loku tisiwaka hi xirhami eka vakhalabye na vakhegula.
Vadyuhari va le Dube, Orlando West, White City, Molapo, Mofolo na Moroka va nyikiwile mikumba. Vadyuhari lava a va funengerile mikumba yo kufumela loko va tlhelela emakaya va ri karhi va yimbelela ni ku ba mikulungwana va hoyozela Tatana Mlangeni.
Tatana Mlangeni u khensa van’wamabindzu lava tivonakariseke loko a va komberile ku nghenelela ni ku hoxa xandla eka xikongomelo lexo xiximeka. Ndzi vula marito lawa hi ku yimela Tatana Mlangeni na vaakatiko va vadyuhari.
Mabindzu lama hlayisaka lava tsaneke ni lava dyuhaleke i ndlela yo hoxa xandla eka ku aka hi vuntshwa ni ku hluvukisa vaaki va Afrika-Dzonga.
Viva nghwazi Mlangeni Viva! [Va phokotela.] (Translation of Xitsonga member’s statement follows.)
[Mr X MABASA (ANC): Hon Speaker, our elderly stalwart Andrew Mlangeni, who is himself not only an elder but also falling in the golden age category, is well aware of the pain that winter unleashes onto elderly men and women.
In Dube, Orlando East, White City, Molapo, Mofolo and Moroka blankets were distributed to the elderly. Wrapped in blankets, the elderly walked home singing and ululating in praise of Mr Mlangeni.
Mr Mlangeni remains grateful to the business people who responded positively when he asked them to join him in contributing towards that noble objective. I am speaking on behalf of Mr Mlangeni and the community of the aged.
Businesses that look after the fragile and the elderly is indeed contributing to the reconstruction and development of South Africans.
Viva stalwart Mlangeni. Viva! [Applause.]]
VIOLENCE IN MANENBERG
SA POLICE SERVICE EDUCATION TRUST
(Minister’s Response)
The MINISTER OF POLICE: Speaker, concerning what is happening in Manenberg, I would want to put it on record and say that the SA Police Service is stabilising that area. It started last year when the South African Police Service, SAPS, went to Lavender Hill, Hanover Park and Grassy Park to stabilise the areas. The cheap politicking was the unnecessary closing of the schools when nothing else was done, except having the SAPS doing its work there. The member does really not have her facts right.
Ten people died in those areas in this period, and 100 died in the same period in Nyanga. What the DA is doing is to racialise the death of people in this province. It must be made very clear that the violence here in this province affects not only the areas they have referred to, but also other areas, including Khayelitsha and Philippi.
What were discovered there is that the multidisciplinary approach we said must be taken is not happening because the local government is not delivering services. Some of the areas are very, very dark because there are no lights in those areas; as a result people are not able to defend themselves against criminals in those particular areas.
There has to be rehabilitation with regard to drugs. Not everything about drugs in this province has to do with policing and security. The provincial government must play its role – it has a role to play and it must do just that.
Regarding the issue of the SAPS Education Trust, I want to thank the member for the kind words she has spoken about this trust for police officers who died on duty, particularly their families.
I urge everybody in society to extend a hand to this trust, because it is the responsibility of all of us to ensure that the police are protected from attack as they are killed while protecting the society. Thank you.
LOCAL GOVERNMENT ELECTIONS
DA’s PREMIER CANDIDATE FOR GAUTENG
(Minister’s Response)
The MINISTER OF HUMAN SETTLEMENTS: Speaker ...
Ntate Motau, morenaka, monokotshwai ha o butswe ho ya ka takatso ya tshwene. Batho ba Gauteng ba re ba eme tsii; ha ba sitinyehe, ntate! Lehae la bona le leholo ke mokgatlo o moholo wa ANC. [Mahofi.] Ba itse re o jwetse ba tlo o phoqa! (Translation of Sesotho paragraph follows.)
[Hon Motau, sir, things do not always happen the way we want them to. The people of Gauteng are standing firm; they are not going anywhere, sir! The ANC is their home. [Applause.] They said we should tell you that they are going to disappoint you!]
We must congratulate all voters for turning up during the by-elections that took place throughout the country. We must never take that matter for granted, because exercising their democratic rights is what we would like to see them doing every time.
We would also like to congratulate those who preferred and chose to give the ANC the majority in the outcomes of those by-elections. [Applause.] They certainly know what is best for them in our country, given the history. [Interjections.]
We must condemn, without hesitation, the killing of a councillor in Ulundi and others in our country. We hope that elections ...
Mrs S V KALYAN: Speaker, on a point of order: Ministers are supposed to respond specifically to statements made in the House. I would like to know which statement the hon Minister is responding to. [Interjections.]
The SPEAKER: Minister, what statement are you responding to?
The MINISTER OF HUMAN SETTLEMENTS: Speaker, the statements that were made here by the hon Motau and the hon Segale-Diswai.
The SPEAKER: Proceed and conclude, hon member.
The MINISTER OF HUMAN SETTLEMENTS: What I am pointing out is that such ...
Mrs S V KALYAN: Speaker, on a point of order: The content of those statements had nothing to do with successes and congratulations on by-elections. [Interjections.]
The MINISTER OF HUMAN SETTLEMENTS: Speaker, with respect, she is quite confused.
We must insist and appeal to the public out there to bring violence to a halt, regardless of whom it happens to. It is worse when it happens to councillors who are public representatives, who must ...
Prince M G BUTHELEZI: Speaker, on a point of order: I just want to help the hon Minister. Mr Makhosonke Msibi was not a councillor. So, we do not want that to be published in Hansard. We do not want lies to be published in Hansard.
The MINISTER OF HUMAN SETTLEMENTS: Hon Shenge, the death of anybody is wrong. The death of councillors is wrong. Do you disagree with that, sir? Thank you very much if you do not. Thank you.
FRAUD AND CORRUPTION IN DEPARTMENT OF HOME AFFAIRS
SANITARY TOWELS FOR RURAL SCHOOL GIRLS
(Minister’s Response)
The MINISTER OF HOME AFFAIRS: Speaker, I thank the hon member from the IFP for referring to the person who discovered, unbeknown to her, that she has been married for 10 years. I must say I am surprised that it lasted that long. We encourage our citizens to check their marital status on a regular basis. We have been issuing messages to the public in this regard because we have indicated that ... [Interjections.]
The SPEAKER: Order, hon members, order!
The MINISTER OF HOME AFFAIRS: ... there is a great deal of identity theft in our country, and hence we call on our citizens to know their status.
However, I would be keen to ask the hon member to provide me with the details of the individual so that I may assist her and check with the particular office that has not been able to afford her proper assistance. Hon members do provide me with such details from time to time, and I discovered that we have been able to help and support each other in providing efficient services to the people of our country. Therefore, I make that offer to the hon member.
I also thank members of the public who have been providing these comfort packs to the young girls in schools in our country because they are a very important support to the young people, who often find themselves in very emotional and difficult circumstances. It is the private sector companies, our Minister of Basic Education and a range of nongovernmental organisations that are playing a very important role in supporting the young girls with these comfort packs. In fact, even in countries where there is civil conflict, this has been a very important area of support for women.
Finally, I think the hon members are struggling to accept that Ministers are politicians. If they make statements that are political here, we will respond politically, because we are politicians while also holding executive positions. All the areas that the hon Tsenoli referred to were raised in different statements by members and we will respond to them. Thank you. [Time expired.] [Applause.]
USE OF FOOD PARCELS IN BY-ELECTION WARDS
(Minister’s Response)
The MINISTER OF SOCIAL DEVELOPMENT: Speaker, firstly, let me respond to the statement regarding Tlokwe, I think this House should know that the co-ordinator for social development in Tlokwe is the mother of a DA councillor. To her dismay, we did not hand over food parcels on the day before the elections because, even though she had approved that food parcels should be distributed, they were not distributed on the day before elections.
Secondly, North West is the second province affected by poverty, and some people just talk about poverty in their boardrooms. They do not know what poverty is. Thirdly, the former Whip of Social Development, hon Pam Tshwete, brought a plastic bag, with the DA logo on, which was supposed to be used for delivering food parcels by the SA Social Security Agency.
Mr M WATERS: Speaker, I rise on a point of order.
The SPEAKER: Minister, there is a point of order.
Mr M WATERS: The Minister is misleading the House. That plastic bag did not have the DA logo on it and the Minister knows it. [Interjections.]
The MINISTER OF SOCIAL DEVELOPMENT: Yes, it has the logo of the DA-led government of the Western Cape. [Interjections.]
The SPEAKER: Order, order, hon members!
Mr M WATERS: It has the Western Cape government logo, which is totally different from the DA’s. [Interjections.]
The SPEAKER: Order! Order, hon members! Please take your seat. Continue, hon Minister.
The MINISTER OF SOCIAL DEVELOPMENT: Mr Speaker, I do not know why the DA is not talking about Khayelitsha, Gugulethu, Lusikisiki, Nyandeni and Qaukeni where we have been responding to the families of the victims of Marikana. We have programmes there and they are not saying anything about that. They are not saying anything about Zwelethemba and George that look like different countries. There is poverty in Zwelethemba. When you go to George, it is a different state - it is as if it is not South Africa, and you have not responded to that.
In De Doorns, there is marasmus and scurvy, and we are yet to go there also. Thank you. [Time expired.] [Applause.]
REINSTATEMENT OF SEXUAL OFFENCES COURTS
SANITARY TOWELS FOR RURAL SCHOOL GIRLS
(Minister’s Response)
The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: Hon Speaker, I stand to commend the Minister of Justice and Constitutional Development for reopening sexual offences courts, which we believe will definitely cut the backlogs that we have on sexual offences cases. I also commend the Minister of Finance for giving the necessary funding to ensure that these courts become possible. [Interjections.]
The SPEAKER: Order, order!
The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: We also have Thuthuzela Care Centres all over the country, which are also supporting victims of abuse and violence, and the Family Violence, Child Protection and Sexual Offences Units which have been opened by the Minister of Police. We believe that these are effective programmes that will assist us in fighting the scourge of violence.
Sibulela urhulumente kunye neenkampani eziye zema ngeenyawo ... [We thank the government and the companies that took a stand ...]
... to support the Sanitary Dignity campaign. We know that ...
... abantwana abangamantombazana ... [... girls ...]
... lose up to 50 school days per year because ...
... bengenazo izinto zokubancedisa.[... they have nothing to help them.]
Therefore, we support the Sanitary Dignity campaign, which has been launched and has been supported by a number of government departments, including Education, Health and Social Development. We also want to request more companies to come on board and assist in this regard.
Ndiyabulela, Somlomo. [Kwaqhwatywa.] [Thank you, hon Speaker. [Applause.]]
ANC’S ABSENCE AT MEMORIAL SERVICE OF MARIKANA MASSACRE
(Minister’s Response)
The MINISTER IN THE PRESIDENCY - PERFORMANCE MONITORING AND EVALUATION AS WELL AS ADMINISTRATION IN THE PRESIDENCY: Hon Speaker, I want to respond to one issue which was raised by the hon Kganare with regard to the commemoration in Marikana. Let me humble myself before him and mention the following so that he understands the issues.
Firstly, on the same day after the tragedy in Marikana, the President announced the establishment of the commission of inquiry to understand the truth of the matter. That commission of inquiry is still in session.
Secondly, the President established the inter-ministerial committee which I chaired in order to deal with issues related to that matter as it progressed and to stabilise the situation - which has been done. [Interjections.]
Thirdly, the President established a committee led by the Deputy President to deal with the stabilisation of the mining sector.
Fourthly, the President established an inter-ministerial committee to deal with the rehabilitation and stabilisation of the mining communities in respect of providing infrastructure, housing, water, etc.
In the context of the programme led by the Deputy President to build on the work that has been done during the funerals, we have agreed that the process in Marikana is not a once-off issue but a matter which will be dealt with on a continuous basis. Therefore, there is a programme which is led by religious leaders whose task is to pioneer and bring all stakeholders together in order to deal with arising problems. Members would know that the killings in Marikana have not stopped and even today people are losing their lives, including shop stewards and everybody else.
In the context of that framework, a lot of discussions have been taking place amongst all the stakeholders, the unions, mining houses, etc, including the government, prior to the commemoration. We then agreed that this is the format that needs to be taken. The commemoration in Marikana did not start on the 16th; it started a long time ago. [Time expired.] [Applause.]
CONSIDERATION OF REPORT OF JOINT COMMITTEE ON ETHICS AND MEMBERS’ INTERESTS ON COMPLAINTS AGAINST FORMER MINISTER D PULE, MP
Prof B TUROK: Mr Speaker and Mr Deputy President, as the co-chair of the Joint Committee on Ethics and Members’ Interests, and as chairperson of the panel appointed to consider the allegations against the hon Dina Pule, I wish to present the report of the committee. The report was adopted unanimously, both by the panel and the committee as a whole after a long and difficult process. We hope that the House will also support the findings in the same nonpartisan spirit.
I need to make some preliminary remarks with respect to the role of the Ethics Committee. This is a multiparty committee with members from both the National Assembly and the National Council of Provinces. We have the difficult task of overseeing the proper compliance with regard to the annual declarations by members of their financial interests and those of their close family members. In doing this, we act as the instrument of Parliament, fulfilling its requirements as an important institution of the country and maintaining public trust in its integrity.
The code of conduct requires us to place public interest above our personal financial interests and those close to us. We have to be objective in complying with the Joint Rules of Parliament. We cannot be politically partisan. We cannot allow bias or prejudice to enter into our considerations. We must base our judgements on facts and where there is a conflict in respect of the facts, we need to discover the truth. We must be fair and be seen to be fair. In all this, we are guided by the will of this House and the NCOP, the national interest and the Constitution. Parliament has a duty to reflect a common purpose and common values, and when it acts in the national interest, the whole must be greater than the sum of its parts, that is, Parliament rises above the specific concerns of parties and individuals.
Our powers of investigation as a committee are substantial, but we are not a court of law. We must respect the rights of members and follow due process. Where we investigate the ethical conduct of a member, we do so in closed session. We are sworn to observe confidentiality, and our findings are based on the balance of probabilities. While our investigations centre on the proper declaration of members’ interests, these investigations often introduce evidence that goes much broader than the immediate declaration. As a committee, we have to exercise much discretion on how far we go and what evidence is relevant. We must not deal extraneously.
Finally, with regard to the general approach of the committee, we draw a distinction between a breach of ethical conduct and a breach of some rule or law. Both are undesirable and we have to act on both. Too often, a person may act within the rules or within the law, but the conduct is unacceptable on ethical grounds and is therefore liable to sanction.
In the allegations against the hon Dina Pule, we uncovered both these transgressions and our findings are according to these criteria.
The central issue in this case was the relationship of hon Pule with Mr Mngqibisa, and how her public office was used to benefit him improperly. She denied in an affidavit that the relationship went beyond longstanding friendship. Mr Mngqibisa stated under oath that “my private life is private” and refused to answer questions about the relationship.
However, evidence emerged during the hearings that hon Pule and Mr Mngqibisa had travelled together to several foreign destinations, such as Mexico, New York, Kuala Lumpur, Paris and Prague, and shared road transport and hotel accommodation. The panel obtained proof that at least one of these trips was paid for by the Department of Communications and Mr Mngqibisa was listed, for purposes of that trip, as hon Pule’s spouse.
The panel had great difficulty in obtaining other travel papers and the file for the Mexico trip was lost. Officials were unco-operative and gave contradictory evidence on how travel companions were recorded. What is remarkable about these trips is that Mr Mngqibisa had no formal status at these meetings, and when asked what his role had been, he was unable to answer. It is clear, therefore, that he benefited from several privileges through his association with hon Pule, none of which were declared.
More seriously, hon Pule seems to have been instrumental in enabling Mr Mngqibisa to advance from being a minor player to a dominant position in the information and communications technology indaba. He did not only gain R6 million for his company Khemano, but he steadily positioned himself to being the main player with prospects of further substantial gains. None of this was declared.
The hon Pule allowed herself to be in a position where her private interests were in direct conflict with the public interest. She did not act to prevent this and indeed promoted this undesirable situation.
I need to refer to some serious attempts to interfere with the work of the Ethics Committee and therefore of Parliament.
Firstly, as witness Mr Mngqibisa came to give evidence accompanied by a bodyguard. This bodyguard stood outside the doors of our committee room and interfered with the registrar during a coffee break. There is no place for private bodyguards in Parliament and he should have been removed.
Secondly, throughout the hearings, it was clear that there was collusion between hon Pule and some senior officials in presenting a false version of their activities.
Thirdly, the head of Parliament’s protection services and the registrar met with a certain Mr X who alleged that he had been approached to forge certain documents which would be served on the panel to reverse its decisions, and to arrange a “hit” on the registrar and myself. Fortunately, he said he was afraid to do that. The consequence of this threat was that both the registrar and I have been provided with security by Parliament. We call for a thorough investigation on this matter.
Fourthly, in recent weeks, three persons, including an official of the department who had given evidence during our hearings, were subjected to bullying to try to get them to reverse their testimonies.
Parliament needs to take note of these attempts to intimidate the Ethics Committee and interfere with the proceedings of Parliament.
In the light of all these findings, the Ethics Committee recommends the maximum penalty allowed in the Joint Rules of Parliament, namely a reprimand in the House; a fine of 30 days salary; suspension of privileges and hon Pule’s right to a seat in parliamentary debates or committees for a period of 15 days; and that she must submit full details in respect of nondisclosure and correct the incomplete declarations for the respective years.
We further recommend that the Presidency considers measures to address the relationship between the Department of Communications and other state and private entities; that the Public Service Commission investigate the possible misconduct of certain officials in the Department of Communications; that the report should be referred to the South African Police Service and the National Prosecuting Authority for possible breaches of the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act, Act 4 of 2004; that the House supports the speedy revision of the code of conduct - we have asked for this on several occasions and we are asking for it again; and that the penalties for transgressions be increased.
This has been a long drawn-out affair, requiring a great deal of research and scrutiny of the Rules of the House and legislation. We must record the tenacious work of the registrar of the committee, Ms Fazela Mahomed, and her support team, the excellent legal advice of Parliament’s legal advisers, Adv Zuraya Adhikarie and Ms Fatima Ebrahim, and finally, and perhaps most importantly, the extraordinary commitment to finding the truth by the members of the Ethics Committee. I thank you. [Applause.]
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY moved: Hon Speaker, I move:
That the report be adopted.
Motion agreed to.
Report accordingly adopted.
The SPEAKER: Hon members, in pursuance of complaints by Members of Parliament and following allegations in the media, the Joint Committee on Ethics and Members’ Interests proceeded to investigate a complaint against the former Minister of Communications, Ms Dina Pule, MP. The committee’s findings and recommended penalties were published in the ATC on 7 August 2013.
Upon completing its investigation, the committee charged Ms Pule and found her guilty in the first instance of not disclosing the financial interests of her permanent companion, as required by Item 9(g) of the code of conduct for Assembly and permanent Council members. Her concealment and continued denial of the relationship allowed her permanent companion to gain improper financial benefits.
Ms Pule was also found to be in breach of Item 13 of the code of conduct by not declaring to Telkom that her permanent companion had a financial interest in an event sponsored by that particular telecommunications company. As a member of the executive, she ought not to have placed herself in a position where there was a conflict of interest.
In addition to the transgressions pertaining to Ms Pule’s declaration of financial interests, the committee also found her to be in breach of Item 16(b) of the code of conduct, as she provided incorrect and misleading information. In fact, the committee found that there was intent on the part of Ms Pule to wilfully mislead the panel appointed to investigate the facts of the matter.
The Joint Committee on Ethics and Members’ Interests recommended three penalties in its report. Those penalties have now been agreed to by this House. The first penalty constitutes a reprimand in terms of Item 19(a) of the code of conduct, which I will now proceed to deliver. Will the member please rise.
Ms Pule, the charges you have been found guilty of by this House are extremely serious.
As public representatives, we are constantly aware that the people of South Africa look to Parliament and its members to display the highest ethical values and standards in what they say and how they conduct themselves. A great amount of trust has been placed in us as Members of Parliament to chart a course that will lead to a better life for our people. We do so by protecting our national assets and by ensuring, in an open and transparent manner, that these assets are used only in the public interest and not for private gain.
Ms Pule, your breach of the code of conduct has gravely undermined the people’s trust and brought this House and its members into disrepute. Furthermore, you wilfully misled the Ethics Committee by lying under oath in your continued attempts to conceal your relationship. In doing so, you showed complete disregard for the exceptional privilege that Members of Parliament have with regard to freedom of speech in this House and before its committees.
Both as a member of this House and as a Cabinet Minister you had undertaken to uphold the Constitution and to act according to its principles when you took your oath of office. Your direct contravention of the provisions of section 96(2) of the Constitution, by allowing your position to be used to improperly benefit your permanent companion, shows indifference to our Constitution, which is unacceptable. Please be seated, Ms Pule.
Hon members, I have now acted within my authority and issued the reprimand as required. The suspension of Ms Pule’s privileges and right to a seat in parliamentary debates or committees for 15 days will come into effect tomorrow. I will also ensure that the fine of 30 days’ salary that was agreed to by this House is imposed. Ms Pule is required to submit full details in respect of any nondisclosure of her financial interests and to correct the incomplete declarations for the years 2009 to 2013. The remainder of the recommendations agreed to by the House today will be communicated to the relevant role-players.
That concludes the House’s consideration of the report, the recommendations of the Ethics Committee and the implementation of the penalties as required by Item 20 of the code of conduct.
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, the hon Pule wishes to address the House.
Ms D D PULE: Hon Speaker, thank you very much for the opportunity. I want to say in this House that I gave my best when i was performing my duties, and if in the course of performing my duties I made a mistake, I am sorry and I apologise.
Ndzi kombela ku rivaleriwa. [I request to be forgiven.]
Thank you. [Applause.]
The SPEAKER: Thank you, hon Pule. Your apology is accepted.
LABOUR RELATIONS AMENDMENT BILL
(Decision of Question on Second Reading)
There was no debate.
Question put: That the Bill be read a second time.
Division demanded.
The House divided.
AYES – 248: Abram, S; Adams, P E; Ainslie, A R; Bam-Mugwanya, V; Bapela, K O; Bhengu, F; Bhengu, P; Bhengu, N R; Bhoola, R B; Bikani, F C; Bogopane-Zulu, H I; Bonhomme, T; Booi, M S; Borman, G M; Botha, Y R; Bothman, S G; Burgess, C V; Buthelezi, M G; Carrim, Y I; Cebekhulu, R S; Cele, M A; Chabane, O C; Chikunga, S; Chili, D O; Chiloane, T D; Chohan, F I; Coleman, E M; Cronin, J P; Cwele, S C; Daniels, P N; Davies, R H; De Lange, J H; Diale, L N; Dikgacwi, M M; Ditshetelo, I C; Dlakude, D E; Dlamini, B O; Dlodlo, A; Dlomo, B J; Dlulane, B N; Dubazana, Z S; Dube, M C; Duma, N M; Dunjwa, M L; Frolick, C T; Fubbs, J L; Gasebonwe, T M A; Gaum, A H; Gcwabaza, N E; Gelderblom, J P; Gigaba, K M N; Gina, N; Gololo, C L; Goqwana, M B; Gumede, D M; Hajaig, F; Hanekom, D A; Hlengwa, M; Holomisa, S P; Huang, S-B; Jeffery, J H; Joemat-Pettersson, T M; Johnson, M; Kekana, C D; Kenye, T E; Khoarai, L P; Kholwane, S E; Khumalo, F E; Khunou, N P; Koornhof, G W; Kota-Fredericks, Z A; Kubayi, M T; Kwankwa, N L; Landers, L T; Lekgetho, G; Lesoma, R M M; Line-Hendriks, H; Lishivha, T E; Luyenge, Z; Maake, J J; Mabasa, X; Mabedla, N R; Mabuza, M C; Madlala, N M; Madlopha, C Q; Mafolo, M V; Magagula, V V; Magama, H T; Magubane, E; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S; Makwetla, S P; Malale, M l; Malgas, H H; Maluleka, H P; Maluleke, J M; Manamela, K B; Manana, N C; Mandela, Z M D; Mangena, M S; Mapisa-Nqakula, N N; Martins, B A D; Maserumule, F T; Mashigo, R M; Mashishi, A C; Masilo, J M; Masutha, T M; Mathale, C C; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Mavunda, D W; Mayatula, S M; Maziya, A M; Mbalula, F A; Mdaka, M N; Mdakane, M R; Mfeketo, N C; Mfulo, A; Mfundisi, I S; Mgabadeli, H C; Mjobo, L N; Mkhize, H B; Mkhulusi, N N P; Mlambo, E M; Mlangeni, A; Mmusi, S G; Mncwango, M A; Mnisi, N A; Mocumi, P A; Moepeng, J K; Mohai, S J; Mohale, M C; Mohorosi, M; Mokoena, A D; Molewa, B E E; Moloi-Moropa, J C; Moloto, K A; Moni, C M; Morutoa, M R; Motimele, M S; Motlanthe, K P; Motsepe, R M; Motshekga, M A; Msimang, C T; Msweli, H S; Mthethwa, E N; Mthethwa, E M; Mtshali, E; Mushwana, F F; Muthambi, A F; N'wamitwa-Shilubana, T L P; Nchabeleng, M E; Ndebele, J S; Ndlazi, A Z; Ndlovu, V B; Nel, A C; Nelson, W J; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, E N N; Ngcobo, B T; Ngele, N J; Ngubeni-Maluleka, J P; Ngwenya, W; Ngwenya-Mabila, P C; Nhlengethwa, D G; Njikelana, S J; Nkoana-Mashabane, M E; Nkwinti, G E; November, N T; Ntuli, B M; Ntuli, Z C; Nxesi, T W; Nxumalo, M D; Nyalungu, R E; Nyekemba, E; Oliphant, G G; Oliphant, M N; Oosthuizen, G C; Pandor, G N M; Peters, E D; Petersen-Maduna, P; Phaahla, M J; Phaliso, M N; Pilane-Majake, M C C; Pilusa-Mosoane, M E; Pule, D D; Radebe, B A; Radebe, G S; Radebe, J T; Ramathlodi, N A; Ramodibe, D M; Ramokgopa, G; Saal, G; Schneemann, G D; Segale-Diswai, M J; Selau, G J; September, C C; Shabangu, S; Sibanyoni, J B; Sibiya, D; Sindane, G S; Singh, N; Sithole, K P; Sithole, S C N; Sizani, P S; Skosana, M B; Skosana, J J; Smith, P F; Smith, V G; Snell, G T; Sogoni, E M; Sonto, M R; Sosibo, J E; Sotyu, M M; Suka, L; Sulliman, E M; Sunduza, T B; Surty, M E; Thabethe, E; Thibedi, J D; Thobejane, S G; Thomson, B; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L; Tshabalala, J; Tshwete, P; Tsotetsi, D R; Turok, B; Twala, N M; Van der Merwe, L L; Van der Merwe, S C; Van Rooyen, D D; Van Schalkwyk, M C J; Van Wyk, A; Wayile, Z G; Williams, A J; Xaba, P P; Xasa, T; Ximbi, D L; Xingwana, L M; Zikalala, C N Z; Zulu, B Z.
NOES – 81: Adams, L H; Alberts, A D; Berend, S R; Bhanga, B M; Boinamo, G G; Bosman, L L; Botha, T; Coetzee, T W; Davidson, I O; De Freitas, M S F; Diemu, B C; Dreyer, A M; Du Toit, N D; Dudley, C; Duncan, P C; Eloff, E H; Esau, S; Farrow, S B; Ferguson, B D; Gcume, N P; George, D T; Greyling, L W; Groenewald, P J; Harris, T; Hill-Lewis, G G; James, W G; Kalyan, S V; Kganare, D A; Kilian, J D; Kloppers-Lourens, J C; Kohler-Barnard, D; Koornhof, N J J v R; Kopane, S P; Krumbock, G R; Lekota, M G P; Lorimer, J R B; Lotriet, A; Lovemore, A T; Mackenzie, G P D; Marais, E J; Marais, S J F; Mbhele, P D; McGluwa, J J; McIntosh, G B D; Mileham, K J; Mnqasela, M; Mokgalapa, S; More, E; Motau, S C; Mubu, K S; Mulder, P W A; Mulder, C P; Ngonyama, L S; Ntshiqela, P; Ollis, I M; Plaatjie, S K; Rabie, P J; Rabotapi, M W; Robinson, D; Rodgers, F A; Ross, D C; Shinn, M R; Smiles, D C; Smuts, M; Steyn, A C; Steyn, A; Stubbe, D J; Swart, S N; Swart, M; Swathe, M M; Terblanche, J F; Thring, W M; Van Dalen, P; Van den Berg, N J; Van der Linde, N J; Van der Westhuizen, A P; Van Dyk, S M; Van Schalkwyk, H C; Waters, M; Watson, A; Wenger, M.
Question agreed to.
Bill read a second time.
SPECIAL ECONOMIC ZONES BILL
(Second Reading debate)
The MINISTER OF TRADE AND INDUSTRY: Speaker, special economic zones may be defined as geographically designated areas of a country, set aside for specific targeted economic activities and generally supported by special arrangements and systems that are often different from those operating in the rest of the country.
Up to now, in South Africa, we have only one form of special economic zones, SEZs, the IDZs, operating in terms of the Manufacturing Development Act of 2000. This programme has focused on export-oriented industries often located in and around ports or airports benefiting, in the main, from the duty-free entry of imports used in the production of export products through customs controlled areas. To date, four of these industrial development zones, have been designated in Coega, East London, Richards Bay and OR Tambo Airport, with three of them being operational.
Whilst these have achieved some important success with 42 operational investments worth R4 billion creating over 5 000 direct jobs and 43 000 construction jobs, some weaknesses in the implementation of the programme have been identified during the IDZ policy review. This includes a number of weaknesses in governance models, particularly in relation to the following: responsibilities of the national government, provinces, municipalities and operators of industrial development zones, lack of focus on IDZ incentives, insufficient stakeholder co-ordination and lack of integrated planning. More importantly, the existing legislation provides, as I have said already, for only one type of special economic zone.
Confronted with these challenges, and also being mindful of the potential special economic zones to achieve industrial demonstration, the current Bill seeks to bring into being the possibility of a broader range of special economic zones. The Bill provides for the following: a determination of the special economic zones policy and strategy; the establishment of an advisory board; a fund for the designation, promotion, development, operation and management of SEZs; regulatory measures and incentives for SEZs; and the establishment of a single point of contact or a one-stop shop to deliver government services. The Bill allows for a variety of special economic zones, including free ports, free trade zones, industrial development zones and sector developments or specialised economic zones.
We have also been developing the following support measures to support special economic zones: a broader SEZ incentives strategy which will allow for a 15% corporate tax in SEZs; building tax allowance and employment tax incentives; customs-controlled area incentive with a VAT exemption and duty-free entrance of imports; and a 12i tax incentive. There has been an enhanced funding strategy, infrastructure strategy, skills and supply development strategy and the one-stop shop strategy.
The DTI, in addition to developing the Bill, has been working on the development of the SEZ tax incentive strategy which has already been announced by the Minister of Finance. We have also been working with the provinces within Minmec to identify potential SEZs; at least one in every province.
This potential project has now gone from prefeasibility to feasibility studies which will allow us, once the Bill is passed, to begin the process of designated new special economic zones. It is therefore important that the current Bill, which is an enabling Bill, is passed expeditiously so that we can take advantage of the eminent interest and opportunity which the special economic zones programme will provide. The House’s support for the Bill will therefore be greatly welcomed. I thank you very much.
Ms J L FUBBS: Hon Chairperson, hon members of this House, hon Deputy President, comrades, colleagues and fellow South Africans, we often sit here and wonder how we should tell you about the Bill. This Bill is so easy to speak about. It speaks about something so close to all our hearts.
The Special Economic Zones Bill takes South Africa significantly further along the journey which began in 1997, when the ANC-led government adopted a policy that allowed the establishment of industrial development zones. This was a paradigm shift in our industrial policy, which took the country - and this is so important - from an inward-looking industrial strategy to an export-led growth. This was a strategy that would promote investment in less developed areas, boost job creation and enhance the manufacturing sector. At the same time, it would facilitate integration into the global economy of which, prior to 1994, we were the pariahs.
The SEZs are indeed sharp policy tools that are used to promote rapid economic growth by using support measures to attract targeted foreign investment and domestic technology and also to facilitate what is so important - co-ordinated planning and implementation by the various government departments.
What is being acknowledged globally by the Organisation for Economic Co-operation and Development, OECD, countries and by countries like China, is that SEZs are cities in their own rights. These zones usually cover all industrial and service sectors. The Minister has already explained the different zones that will be provided, so I will not deal with that area.
The hon Wayile will highlight the industrial stimulation in the rural areas which expands this economic development footprint beyond the ports and urban areas through incentivised investments and one-stop shops. In fact, it is the one-stop shop idea that we know will cut the red tape. With this establishment, you will smooth out and fast-track processes by investors to eliminate bottlenecks in our system.
In this regard – and this is so important – you will have co-ordination between the Department of Trade and Industry, the economic area, and the Department of Home Affairs. It is the Department of Home Affairs, the Department of Economic Development and the Department of Trade and Industry working together in synergy that will fast-track this process.
Of course, you heard us talking about public-private partnerships, or the triple P. I know there was some talk in the committee about the possibility of having only private ones. Internationally, it is now proven that you must have the public sector and government’s involvement if you want to succeed with SEZs. The Minister has referred to a fund that has now been established. There are incentives established which will kick in in January 2014.
Where in the world - in an emerging country - are you going to get to this extent: a corporate tax cut from 28% to 15%? That is going to happen and it will bring in investments. I must say that all members of the committee were supportive of this. The members of the opposition also supported the ANC in this regard.
However, what concerned us was the issue of leakage. You know, things falling off trucks, as it were, never getting to Lesotho and winding up here.
We have been fortunate in this particular model, where you will have the Department of Home Affairs, the SA Revenue Service, Sars, and the Customs Controlled Area operating to prevent leakage. Companies will have to be effectively managed in South Africa to qualify for these incentives. They should generate at least 90% of their income from services or sale of goods from activities attributable to a fixed place of business in the zone.
I would like to re-emphasise that the company will, of course, have to be established within South Africa and in the zone itself.
There are issues around the industrial development zones. The Bill calls for IDZs to become part of the SEZs within a three-year period. There are transitional arrangements in this particular regard.
The other area I would like to refer to is that of the emphasis on the triple P. As you know, infrastructure development for industrialisation is at the forefront of the government’s New Growth Path. The ownership of SEZs depends on each country’s needs and the industrial development strategy. There is no question of one approach, but rather an analysis of a specific country and customising the SEZ to suit that particular country. Given South Africa’s industrial development path, the Special Economic Zones Bill allows for SEZs to be owned by various spheres of government.
We welcome public-private partnerships as an opportunity to accelerate growth in our economy. The public-private partnership has great success stories in many countries. It will have a successful path in South Africa as well. As we said, the establishment of the one-stop shops will facilitate easy registration, licensing and other arrangements that businesses have indicated took so long during the IDZs. Perhaps investors got tired of waiting.
Another issue that came up during the committee meeting was that of flexible labour. We need flexible labour legislation. [Interjections.] Well, just a minute. The World Bank does not agree to it being a good idea at all. In fact, after a serious study which included Africa – a study that was not done by us but by the World Bank – the bank came out with an unqualified statement saying that there is no correlation between cheap labour and a successful SEZ. In fact, it discourages that. Of course, from time to time, the World Bank does have some brilliant ideas, and we certainly think that was a good one. We support that particular one.
While we globally took account of issues in OECD countries, we were also well aware that SEZs had done extremely well in China. D Z Zeng in Building Engines for Economic Growth and Competitiveness in China in 2010 indicated that there are a number of benefits like direct economic benefits, which include employment generation and forex, and indirect economic benefits - like skills upgrading and technology transfer. That is a very important component which also leads to exports diversification and, in general, enhances the trade efficiency of domestic firms.
We truly welcome, understand and accept the fact that, in South Africa, we face serious competitive challenges when we export our goods, notwithstanding some of the many comparative advantages that we enjoy. The Special Economic Zones Bill will enable us to actually open the door to facilitate and overcome those serious challenges, because we will not have the duties stacked on top of this. It offers opportunities to all business people – to those who are not only interested in making money. Yes, making money is a good idea. Make profits, but ensure that your workers and staff also benefit and that there is no exploitation of people’s working conditions or wages. We all know where that is leading.
There are other issues in this regard, but the hon Sue Van der Merwe will be dealing with two very important areas.
We may ask ourselves what the committee members do when the department has done something and tabled the Bill. Well, so often we know that it is in the robust engagement within the committee that we are able to generate better legislation. The hon Van der Merwe will go into detail where this occurred.
I would like to indicate that it was a real pleasure working with all the committee members on this Bill. They brought a lot to the legislation. We learnt from each other, which is the way to move. I would like to try to persuade all members, especially those who did not quite agree with our point of view in the ANC, that this is the time for the private sector to come along and work together. Let us work together, and not against one another, to grow the economy. The ANC supports this piece of legislation wholeheartedly. I thank you. Malibongwe! [Applause.]
Dr W G JAMES: House Chair, it is my great pleasure to speak in favour of this Bill, and this is why no nation is perfect, and we certainly are no exception. As long as our founding President Nelson Mandela’s dream of elevating what someone once called the “better angels of our nature” proves to be elusive, we will remain an imperfect nation.
We must always invoke the principles of the first democratic administration to rebuke the inequalities, poverty, joblessness and hypocrisy of pervasive corruption that plague the administration of President Zuma, whose values simply bear no resemblance to that of Mr Mandela.
One of the few bright sparks in the darkness that defines this administration is the Department of Trade and Industry’s, DTI’s, replacement of the lacklustre industrial development zones with the more promising SEZs. The DA supports the SEZs because they can become engines of innovation that solve the following: problems of joblessness and slow economic growth. They can also become places of experimentation where trade unions partner with businesses to put sustainability above profits; disputes are efficiently and effectively resolved in ways that are just and fair; bureaucratic red tape is minimised; necessary infrastructure gets laid down by government on time and to scale; corruption is punished to the full extent of the law; and practical solutions to practical problems of doing business are found.
The SEZs could be places where the positive qualities – the better angels of our nature – rise to the challenge. We have come this far as a nation because, as a people, South Africans are resourceful. We have a can-do-attitude; possess an entrepreneurial spirit; embrace risk-taking ethos; are problem-solvers; and once were - and certainly must be again – future-oriented nation-builders.
How this contrasts with President Zuma, who constantly looks in his rear-view mirror and is fearful of what is coming; trapping us in the past, keeping us prisoners of apartheid, bringing out the worst qualities of greed and self-serving opportunism, and stripping government bare of its resources at every turn. We now have an opportunity with the SEZs, but Minister Davies has to solve some problems for them to succeed.
It appears as though the SEZs will take much too long – some say close to two years – to get off the ground. Then there are some constitutional issues that require clarity. Firstly, is it constitutional for SEZs to have different protection and benefit regimes? Secondly, is it constitutional for Minister Davies to exercise power and perform functions beyond that conferred upon him by law?
The Special Economic Zones Bill does not specify what laws and which regulations Minister Davies may suspend or derogate or which type of incentive he may or may not implement. This leaves considerable uncertainty and a measure of personal licence which even he may find to be unwarranted, and a step of unrestrained personal power taken too far.
Finally, chapter six leaves openings for corruption and the possibility that operator licences will be given to politically connected entities. Parliament needs to satisfy itself that these and other issues are addressed to ensure that the SEZs reach their full potential.
The DA supports the Special Economic Zones Bill. I thank you. [Applause.]
Mr G B D MCINTOSH: Mr Chairman, I think the most interesting bits of news have come from the chairman of our portfolio committee, the hon Fubbs. The corporate tax in the special economic zones will be 15%. That is to be commended because it is the private sector that will drive these SEZs, and they must be encouraged.
I think the department and also the committee staff should be congratulated for good presentations during this process. The constitutional legal service offices were extremely helpful, and our chairlady worked very hard. We had good presentations by stakeholders.
This Bill is about building and growing South Africa’s economy by creating special economic zones. Strangely enough, the world has many special economic zones, but many have been failures. In this country, we have had a history of special economic zones and many of them were failures. With this Bill, in terms of the National Development Plan – you will notice that the chairlady was very careful to talk about the New Growth Path and not the National Development Plan – we need to grow our export promotions; grow our domestic and regional demands; strengthen our industrial base; and promote labour-absorbing industrialisation activities.
We have five existing industrial development zones. Coega has been very unsuccessful, nothing happened at OR Tambo and only Richards Bay and East London have been moderately successful. And Saldanha, which is brand new, looks as though it could be very successful for the oil and gas industries.
These proposals have gone through the National Economic Development and Labour Council, Nedlac, process and various concerns were raised. But, once again, we found that this Bill is not as good as it could be. It has got a shotgun approach. Section 22 will allow almost anybody to apply for a licence for a SEZ, but deliberately excludes private enterprise from applying. It is all centralised government control. Once again, the left dictates to South Africa on how we should run our economy.
Despite the international trend towards private enterprise driving SEZs, the Minister turns his face against it. We cannot expect every municipality to apply for an SEZ. At the same time, coastal towns and places with airports could apply for SEZs. Upington, for example, has a good international airport. They could do a tremendous amount to develop technology and the industry for the solar power industry - the same applies to Limpopo’s Polokwane International Airport.
Another issue is on the question of job creation. As I am talking to you, there are 30 000 automobile workers out on strike. Most of them are around the Coega development zone. I do not know whether Vavi or Dlamini is behind it, but maybe hon Wayile will tell us when he makes his speech.
The point that the chairlady of our committee does not understand is that nobody wants cheap labour. We want easy labour. You must be able to hire and fire, and do it easily. If one fires, you must be able to fire fairly but easily. That will make a big difference to the SEZs.
The Minister, again, typically with his ideological background, wants all kinds of controls on these SEZs. I think we should be aware that in Ethiopia, Nigeria, Kenya and even Angola – where you can have a business registered and started within 24 hours, and remember Angola is heavy Marxist Leninist – they have completely changed their attitude towards investment. People will not come to South Africa if they can go to countries where they are free to move their labour, employ labour and invest more effectively.
Cope hopes that the SEZs will prove more effectively. Cope will support the Bill. I thank you. [Time expired.]
Mr M HLENGWA: House Chairperson, this Bill has substantially improved since the IFP’s hon Dr Oriani-Ambrosini reacted to the presentation of its first draft to the committee by calling it an “ideological monstrosity.” At that time the Bill revealed the premise that doing business in South Africa is too difficult and that special economic zones had to be established with different rules to make it easier.
Some of the issues of constitutionality raised by the IFP through Dr Oriani-Ambrosini in the committee have been addressed, which assures us the department can listen when it wants to. The Bill, however, does empower the Minister to give incentives and special measures to those enterprises located in the special economic zones and gives no indication of what this may be over and above subsidies. We are plainly giving the Minister a blank cheque without any measure of parliamentary input or approval. This is a major concern.
Government’s involvement in the establishment of SEZs is important, but we do want to stress that the role of government should primarily be to create an enabling environment for businesses to operate in. And we hope that these SEZs will do just that to enable us to address the high levels of unemployment, which have been revealed as standing at a staggering 25,7%.
Our cost of doing business has increased, and we can no longer afford to industrialise solely large welfare programmes for industrialists that are underpinned not by economic reasons but by their quest to empower and to enrich the few. This Bill, if passed and not overseen properly, could become a conduit for a huge waste of taxpayers’ money with little benefit to our real economy, which is capable of prospering and thriving without the benefit of the government’s steroids.
Since 1992 the IFP has been proposing that Durban should be established as a free port. Southern Africa does need its own Singapore, Hong Kong or Macao. One would need to pursue this type of vision and provide Southern Africa with independent centres of growth and development.
As the IFP supports this Bill, we do want to stress that the most important thing would be to look at the issue of job creation. We should ensure that we are able to create self-help and self-reliant businesses which are sustainable and are able to improve the lives and collective sustainable livelihoods of the masses of our people who are plagued by poverty and are struggling every day to deal with and face it. I thank you. [Applause.]
Adv A D ALBERTS: Chair, the special economic zones contemplated by the Special Economic Zones Bill present a vast improvement on the existing industrial development zones that only allow for limited benefits to create an enabling environment for business to grow. The IDZs have not been particularly successful in providing for an incubation and growth space for business and industrial activity.
Die feit dat daar nou moontlik belastingvoordele geskep word vir besighede wat hulle in ’n spesiale ekonomiese sone, SES, vestig, is natuurlik van groot belang en sal die moontlikheid van suksesvolle beleggings in sodanige sones versterk. Dit is juis een van die groot nadele van die wet wat ’n groot rol gespeel het in die gebrek aan bewese sukses in sones soos Coega. (Translation of Afrikaans paragraph follows.)
[The fact that possible tax advantages are now being created for businesses that want to be established in a special economic zone, SEZ, is naturally of great importance and will strengthen the possibility of successful investments in such zones. This is precisely one of the big disadvantages of the Act that played a major role in the lack of proven success in zones like Coega.]
It is therefore positive to see government taking important lessons from the lack of success of the current IDZs. Business looks for an enabling environment and will not participate in any schemes unless it appears to be beneficial from a profit point of view. The Minister will also have to look further than tax incentives to lure business.
Broad-based black economic empowerment is a driver of cost as evidenced by an increasing number of researchers. I makes sense to address this as well. We suggest that the Minister introduces a further benefit that has the result of creating jobs and eradicating poverty in certain targeted areas. Instead of focussing on ownership in a SEZ zone, the focus should be on job creation as set out in the Bill’s objectives. This can be achieved as follows: free all businesses in certain SEZs from BBBEE and instead require them to strive for certain job targets, with employment not taking place based on the national demography, but on socioeconomic measures. The employees can then participate in the share scheme that will allow for broad empowerment by way of ownership.
Op hierdie wyse word daar gefokus op die belangrikste aspek om armoede uit te wis, naamlik werkskepping. Swart ekonomiese bemagtiging, SEB, werk te beperkend en verryk net ’n paar individue. Nadat daar op ’n breë basis werk geskep is, kan aandag gegee word aan die bemagtiging van die werkerskorps.
Indien die SES op hierdie wyse besigheid sou lok, kan dit daartoe lei dat sones in erg verarmde gebiede in Suid-Afrika tot stand kom, soos ’n beoogde Noord-Kaapse ontwikkelingskorridor, ’n Transkei-korridor, ’n Mpumalanga-korridor, en talle ander. In die Noord-Kaap sal dit beteken dat bruinmense oorwegend in diens geneem en bemagtig sal word, asook die Khoisan-volke. (Translation of Afrikaans paragraphs follows.)
[In this manner the focus is on the most important aspect for eliminating poverty, namely job creation. Black economic empowerment, BEE, is too limiting and cause the enrichment of only a few individuals. After jobs have been created on a broad basis, attention can be given to the empowerment of the worker corps.
If the SEZ should lure business in this way, it can lead to the creation of zones in very poor areas in South Africa, such as an envisaged Northern Cape development corridor, a Transkei corridor, a Mpumalanga corridor, and various others. In the Northern Cape it will mean that predominantly coloured people will be employed and empowered, as well as the Khoisan people.]
Thus, we wish to impress upon the Minister to take an open-minded approach when approving SEZs. SEZs can be a true instrument for development.
Mr Z G WAYILE: Hon Chairperson, hon Members of Parliament, hon Ministers, the ANC welcomes and supports the Special Economic Zones Bill, especially during this important month in which we are celebrating the achievements made by women of this country. Challenges remain, and some of the elements of this Bill seek to ensure that we redress some of those imbalances. Furthermore, we must take note that 17 August 2013 marked 31 years since the brutal killing of the late Ruth First; hence the strategic importance of the Bill in terms of addressing the plight of women.
The special economic zones will be able to overcome many of the limitations of the industrial development zones, IDZs, which have had greater industrial challenges. One of the serious challenges is to ensure that we attract investment through foreign direct investment. But, the SEZs can now expand on the scope and impact of the IDZs.
The SEZs will accelerate economic growth; promote investment into less developed areas; promote investment to enhance the manufacturing sector; and promote job creation.
I want to focus on rural development. We all know that, for a number of historical reasons, the rural areas have been marginalised and investment has focused on the areas that were normally referred to as EWV areas. This Bill seeks to ensure that we redress some of those particular imbalances created by the apartheid government.
However, let me point out that the success of the SEZs also depends on the level of co-ordination between various government departments. The Special Economic Zones Bill allows for ownership of SEZs by provincial governments and local municipalities.
With regard to rural development, one of the limiting factors of the IDZs was that they could not be established near ports and airports, and that automatically excluded all the rural areas. The newly introduced SEZs will tackle the issue of development in rural areas because they can be established anywhere in the country.
The Department of Trade and Industry, DTI, proposed 15 locations designated for SEZs in eight of the nine provinces in our country. Those proposed locations are in the less developed areas of the country, including Musina, Tubatse and Komatipoort in Limpopo; Harrismith in the Free State; and the Wild Coast in the Eastern Cape, just to mention a few.
Six of the 15 proposed SEZs are into agro processing, the sector which is the main contributor to employment in rural areas and to the employment of semi-skilled and unskilled labour. The proposed SEZs in the agro processing sector are in line with proposals from a particular municipality in the Eastern Cape for the designation of SEZs in the agro processing sector. This is an attempt to ensure that we also embark on a paradigm shift because, normally, we have been focussing on what was referred to as a nodal approach to development, which has led to a number of people in rural areas migrating to the city. This is something that this country cannot afford.
The establishment of the SEZs in rural areas is in line with the support of our country’s employment initiatives, especially ragarding women, youth and people with disabilities. But, central to that, is the issue of black economic empowerment, which is a non-negotiable issue. We cannot establish SEZs exclusively for a particular group of people who benefitted in the past at the exclusion of the majority.
The participation of people in rural areas, women, the youth and people with disabilities in economic activity is the ANC-led government’s agenda. The designation of SEZs in rural areas brings the reality to this particular agenda. The creation of decent work and other socioeconomic benefits in the region where the SEZ is located, promotes skills and technology transfer.
Despite the move towards promoting greater employment, government recognises that human resources are this country’s most important asset. Therefore, it should be noted that government will not compromise regarding the reduction of labour standards which are coded as labour market flexibility. A number of people have confirmed that our labour standards are consistent with some of the International Labour Organisation’s, ILO’s. Therefore, there is no basis for workers to be subjected to slavery conditions during this particular dispensation.
With regard to encouraging co-ordination between government and the private sector, another challenge for the IDZs was the lack of co-ordination between the various levels of government. The Special Economic Zones Bill addresses this by better co-ordination and clearly defined collaboration between government and the private sector.
The involvement of government in such designated areas for development is paramount. The ANC once more supports the Bill. Thank you very much. [Time expired.] [Applause.]
Mr W M THRING: Hon Chair, in noting our economic indicators of the gross domestic product, GDP, growth of 0,9% in the first quarter of 2013; the unemployment rate of some 25,6 to 40%; our current account deficit standing at 5,8% of our GDP; and a gain coefficient of 0,62 - being one of the highest if not the highest in the world - the ACDP is of the opinion that something must be done to kick-start our economy.
With the South African and global economies battling to grow and create jobs, the ACDP is confident that the introduction of SEZs could potentially be the catalyst needed to revive our economy. This year, our economy has grown at a rate of 2% compared to 2,5% in 2012. If we wish to create another 5 million jobs by 2020, it is imperative that we look at best practice initiatives and introduce interventions that will boost economic activity. However, South Africans need to be assured that SEZs will not suffer the same fate as our industrial development zones.
The establishment of the IDZs was intended to attract investment, and increase exports and the competitiveness of South African products in the five zones: Port Elizabeth, East London, Richards Bay, Gauteng and Saldanha Bay. To date, the lacklustre investment in the country’s industrial development zones and their failure to meet the ambitious goals have attracted mixed reviews regarding the international competitiveness of South African IDZs.
The ACDP supports the promotion of the competitiveness of South Africa’s enterprises through leveraging investment in export-orientated manufacturing industries and promoting the export of value-added manufactured goods.
Special economic zones in foreign countries have a proven track record of positively contributing to addressing challenges such as unemployment, inequality and various economic disadvantages which are rife in South Africa. The ACDP is of the opinion that the same could be done here in our country.
We hope that when introduced, these zones will in particular benefit our underdeveloped rural areas by creating a platform which will see foreign skills being transferred to our local labourers.
The ACDP will support this Bill. I thank you. [Applause.]
Mr G G HILL-LEWIS: Hon Chairperson, the Special Economic Zones Bill has the potential to unlock real job creating growth in our economy. The SEZs can work to create jobs by attracting new investments in South Africa, but in order to do that, our SEZs need to be globally competitive. I argue that global competitiveness in the SEZ space requires three things: firstly, an attractive suite of incentives; secondly, simplicity of process; and lastly, seamless integration with the infrastructure.
This Bill does not deal directly with incentives save for providing an enabling environment for the government to design and offer a comprehensive set of incentives to potential investors. The entire SEZ project rises and falls on the attractiveness of incentives that government comes up with. Therefore, we will keenly watch those developments.
The incentives announced by the Minister of Finance earlier this year provide an excellent start, though it remains to be seen whether the Minister can get agreements on the actual implementation of that package. However, incentives alone will not be enough, because there will always be some other place or some other government that will try to top whatever we can realistically and sustainably offer. This brings me to the second critical ingredient, which is infrastructure.
The major test of this department, and indeed this legislation, will be whether the department can work with other departments and spheres of government to deliver special economic zones which offer easy access to efficient world class transport networks, energy networks and government services.
There must be process simplicity. A potential investor scanning the globe for the next place to locate his or her factory will not be willing to wait around while national, provincial and local governments lumber into action. Investors will simply move elsewhere. The process outlined in this Bill is cumbersome and relies on several ministerial decisions by both the Minister of Trade and Industry and the Minister of Finance.
In the portfolio committee, the DA pushed consistently for a much more simplified process for the application and designation of a special economic zone and the appointment of an operator. The department assured us that the process, from beginning to end, would not take longer than six months. That is on record and we will hold them to it.
Finally, the DA was successful in strengthening the role of local and provincial governments in designing and offering their own incentive packages, which we believe will be critical to the success of the SEZ project. Local governments in particular have an enormous scope to offer cost-saving incentives to investors, in rates, service charges and, particularly, electricity charges. We hope that local governments around the country will make good use of this opportunity.
Special economic zones can grow our economy and create jobs. However, in order to do so, the government will need to ensure that they are internationally competitive, that they get quickly and efficiently connected to reliable infrastructure networks and services and that the process to be followed is simple to understand and can be easily and quickly implemented. Thank you very much.
Ms S C VAN DER MERWE: House Chairperson, hon members, the Minister described special economic zones with a definition, but in its simplest definition, a special economic zone is a geographical region which is designed to export goods and provide employment. According to the simplest form, it is a special area with special incentives designed as a special mechanism to help the country to achieve its development goals. And part of what the committee has done to amend this Bill is to make sure that it is accessible and provides a seamless structure to achieve its objectives.
There are many international examples of success stories in SEZs. Our international partners, such as China, also referred to by our chairperson, have established a number of SEZs with dramatic success in furthering economic development, creating jobs and promoting exports.
The Chinese SEZ programme began in 1980 when about five areas were designated in various provinces. Since then, many more have been established. These areas have great growth and the development dividend has been quite spectacular.
In India, the global crisis and the dramatic collapse of trade during 2008-09, hurt exports in that country as in other emerging markets. The SEZs were the one source of solace for the economy, registering impressive growth in exports during that period.
If we consider the potential impact of this piece of legislation on our economy and, indeed, on the communities and the people that will be affected, it is a much anticipated Bill. However, the Bill is also, in a sense, a technical Bill because it provides all the designation of the zones, their promotion and development, and also for boards and the regulation issues around licences and permits. It is necessary that this House considers and passes legislation that is both progressive in terms of our national objectives and practicable and implementable.
Therefore, it is very encouraging that, although all the submissions that the committee received supported the concept of the SEZs, we received a number of important and thoughtful submissions to improve the concept from the public. One of the most frequently repeated issues was that the streamlining of structures in line with the accountability of the Bill be emphasised. The Bill has, therefore, been amended by the committee to account for some of these concerns.
In the Bill that we received, there was a good deal of confusion about the respective roles of the licensee and that of the operator. In the amended Bill, the committee has made numerous small changes and some substantial ones as well, acknowledging some of the problems and dealing with them.
Simply put, the process starts with an application from a government entity or a public private partnership to the Minister - which is important - for the designation of an area as an SEZ. The successful applicant then becomes a licensee and establishes an SEZ entity and a board, and this board, in turn, appoints an operator who must develop, manage and operate the zone. Businesses wishing to relocate to the area must apply to the operator, who must make recommendations to the board.
The committee spent considerable time on refining this process and, we believe, it is now a workable structure which will also fulfil the policy objectives of driving industrial and economic growth. In the Bill special attention is given to making it as simple as possible for businesses to apply to the operator of the zone to access the benefits.
One such imperative in clause 35 is the requirement that the operator of the zone must, and I quote, “facilitate a single point of contact or a one stop shop that delivers the required government services” and provides simplified procedures for setting up and conducting businesses in that SEZ. We hope that this might create a positive precedence for general application in our society for accessing government services.
The preamble of the Bill recognises that measures must be implemented to enhance domestic and regional demand, to attract foreign investment to our country while, at the same time, strengthening the South African industrial base and promoting a labour-absorbing industrialisation path. It envisages that the SEZs will be a mechanism that will contribute to the realisation of our economic growth and development goals.
The ANC supports this Bill. We believe it is a forward-looking piece of legislation, intended to focus on new sources of competitiveness that lie in innovation and productivity in the zones, supported by streamlined services and incentives. We trust that it will be supported in this House and quickly become law.
I just need to say that the opposition parties present some rather baffling arguments here. In the committee, they agree with almost everything, meekly, like pussy cats, but put them on this platform, and they come out all hell, fire and brimstone. This is a good Bill; politicking will not change it. Thank you very much. [Applause.]
The MINISTER OF TRADE AND INDUSTRY: Chairperson, I can hold my breath nearly as long as I have to respond, and I cannot go into details, but I just want to say thank you to everybody for the support of the Bill.
I want to say that on this occasion, I actually agree with what the hon Hill-Lewis had to say, namely that promoting special economic zones is not just about engaging in a race to the bottom in the provision of incentives. It is also about other things. It’s about the development of the infrastructure; it is about developing a vision; it’s about designing the relationship of the SEZ with productive activities. It is about the entrepreneurship of the operators. And I think that this is the experience of the East London IDZ but also the international experience. It is how the thing is run and managed as well as what is presented to the potential investors. So, I think what we are providing for here is for a process that allows us to move in that direction.
The idea that there could be corruption in the awarding of licences is, I think, not really the issue here. In fact, the Minister operates through a board, and the board is bound in terms of section 31 to follow fair, equitable, transparent, competitive, cost-effective procurement processes. I think there are plenty of cheques and balances in that regard.
The points that were made about clause 22, I think, were misunderstood. This is a clause that allows the Minister of Trade and Industry to work with other Ministers to fast-track a whole range of environmental permits and work permits, etc. It is part of joined-up governments and speeded-up processes.
The Bill provides for a lot of inclusion of the private sector as owners and licensees through partnership in public-private partnerships, PPPs, as operators and developers at the SEZ itselfs, and as businesses and investors in the SEZs and beneficiaries of all that is offered in the SEZs. As I said before, what we are doing in order to fast-track this is that we have already started a process together with the provinces and the municipalities to identify potential SEZs.
We have been doing this work and it has proceeded from prefeasibility to feasibility studies. Those proposals will be put to the board, which will apply its mind, and hopefully we can begin to designate a number of SEZs in different parts of the country in the near future. I thank the hon members for their support. We are looking forward to our productive engagement in rolling out these SEZs in the near future. Thank you. [Applause.]
Debate concluded.
Bill read a second time.
CONSIDERATION OF PROTECTION OF PERSONAL INFORMATION BILL
Mr L T LANDERS: Chairperson, the Protection of Personal Information Bill has a long history. Having been tabled in Parliament in 2009, lest we have forgotten and need reminding, it gives expression to the right of privacy provided for in section 14 of our Constitution. That right includes the right to protection against the unlawful collection, retention, dissemination and use of personal information.
On 11 September 2012 the Second Reading debate of the Bill was held in the National Assembly, which subsequently approved the Bill. On 12 June 2013 the Select Committee on Security and Constitutional Development of the NCOP, having considered the Bill, agreed to this Bill with all the amendments it had agreed to as set out in the report. These amendments, mostly of a technical nature, were referred to the justice portfolio committee.
The justice portfolio committee has carefully considered these amendments and unanimously approved them. The justice portfolio committee now asks this House to approve the Protection of Personal Information Bill as amended by the National Council of Provinces. I thank you. [Applause.]
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Hon Chairperson, I move:
That the Bill, as amended, be passed with a textual correction.
Motion agreed to.
Bill, with textual correction, accordingly passed.
Banks amendment bill
(Second Reading debate)
Mr D D VAN ROOYEN: Chairperson, hon members, we are guided and driven by a resolve that calls for the building of technical capacities of the government, with a view to a democratic developmental state and a resolution that speaks to the building and standardisation of finance institutions that are accessible to the people and are able to effectively channel financial and institutional resources towards a variety of economic transformation objectives. At the centre of the attainment of these resolutions is the need to build sound banking and financial stability.
The Banks Amendment Bill, inter alia, provides for the following: the amendment of the Banks Act of 1990, so as to bring certain provisions in line with their practical application; the updating of references to legislation and institutions; the provision that a contravention of the Financial Intelligence Centre Act of 2001 is a cause for suspension or cancellation of registration as a bank; the alignment of the Banks Act of 1990 with the Companies Act; and further compliance with the requirements of the Basel Committee on Banking Supervision, and matters connected therewith.
Amongst other things, the Bill empowers the Registrar which, in our case, is the Reserve Bank to cancel a bank’s registration after consultation with the Minister and notifying the institutions concerned. The apparent benefits of this amendment will be to increase the speed with which the regulator can withdraw a banking licence.
One lesson that is coming out of the global financial crisis was the speed at which bank regulators had been able to act and avoid a run on a bank, but also the speed with which the anxiety of depositors was managed. To provide for this, the Bill empowers the Governor of the SA Reserve Bank to appoint a curator if he or she deems it desirable in the public interest by notifying, in writing, the chief executive officer or the directors of the said bank.
The primary idea is to target the speed at which the regulator will be able to intervene in cases where the business of banking institutions places a systematic risk on the South African banking system. In addition, the Bill gives clarity on companies acquiring an interest in a company outside the Republic.
Finally, the Bill touches on and gives clarity on the topical issue of remuneration in the banking sector and also in compliance with the King III report. It emphasises the need to establish independent remuneration committees comprising of independence and nonexecutive directors. These amendments are a step in the right direction and deserve everyone’s support. Ke a leboga. [I thank you.] [Applause.]
There was no debate.
Declarations of vote:
Mr M WATERS: House Chairperson, the DA agrees with the broad thrust of this Bill to amend the bank sector, because it defines the responsibility of a bank’s remuneration committee in clause 34. It presents a real opportunity to reform the law to ensure that the executive pay is linked to their performance. The DA has a progressive and bold policy in this area.
We believe that we need to overhaul our laws, including the Companies Act, to ensure that transparency is increased so that shareholders can see more easily what the executives are being paid. We also believe that the power of the shareholders to hold the executives to account must be boosted, too.
Amongst other reforms, we propose that all auditor companies should publish the total figure for each director in their financial statements. Also, these companies should include an explanation of how the executive’s pay relate to the company’s performance. Furthermore, shareholders should get a real say over executives’ pay. So, this Bill present the first real opportunity for the DA to get some of these proposals into legislation.
In the committee, we moved an amendment on clause 34, which the Whip was talking about, to require that a bank’s remuneration committee must consult with shareholders on their executive’s pay. We are very pleased that the committee saw it fit to support the DA. So, we support this Bill, especially this amendment, which is an important first step in our campaign to ensure that the executive’s pay is aligned to performance. With this campaign, the DA will work to tackle those high-powered corporate insiders who abuse remuneration committees that are not independent, and abuse shareholders who are not sufficiently informed. I thank you.
Mr N J J KOORNHOF: House Chairperson, I rise on behalf of Cope to support this Bill, to support the caretaker, the chairperson of the committee, Van Rooyen, and also to echo the remarks made by the hon Harris, in respect of the remuneration of CEOs, which in some instances is outrageous.
Mr N SINGH: Chairperson, I rise on behalf of the IFP to support this Amendment Bill, and wish to say that we trust that this kind of regulation of remuneration will be extended to those that head up our state-owned enterprises.
In the past, we have had - I have raised this with Minister Gigaba - some of the CEOs that were paid exorbitant salaries. That is why we got strikes, because ordinary people then compared their salaries, which were not even a millionth of what the CEOs earned, let alone the preferential shares and the pensions they get when they retire. I think it is good that the banks are looking at this and that there is a remuneration committee. We will support this Bill.
Dr Z LUYENGE: House Chairperson, the ANC has a clear view on this matter; safe to say that we agree with the broad understanding that the opposition has. We want to further clarify the premise underlying this amendment, namely that the existing remuneration structures create perverse incentives to engage in risk behaviour which may pose substantial risk to the soundness of the South African banking system.
The successes of banking institutions, like most business enterprises, rely on their capability to attract the best available talent. Generally, the primary bargaining tools employed by banks are financial incentives. This leads a bank to offer progressively aggressive remuneration packages for the executive due to the performance nature of the industry.
Remuneration packages tend to rely on lofty targets, which can encourage reckless behaviour. I thank you.
Bill read a second time.
RATES AND MONETARY AMOUNTS AND AMENDMENT OF REVENUE LAWS BILL
(First Reading debate)
Mr D D VAN ROOYEN: Hon Chairperson, hon members, this Bill forms part of the annual tax proposals announced by the Minister of Finance in the Budget Speech that was made earlier this year. Of course, these announcements are given effect to by Tax Bills tabled during the course of the year.
Inter alia, the Bill provides tax relief for individuals who pay income tax by adjustments to the personal income tax brackets. This partially accommodates for fiscal drag. The total relief provided for amounts to R7 billion. Although the personal income tax brackets were not fully adjusted for inflation in 2013-14, it should be noted that over the last decade and a half, personal income tax brackets have been adjusted above the annual rates of inflation, thereby, over the medium term, providing both for fiscal drag and real income relief.
The monetary amounts on the monthly medical tax credits are increased in line with inflation, thereby maintaining the real value of medical tax relief for individuals. The monthly tax credits will be increased from R230 to R242 for each of the first two beneficiaries, and from R154 to R162 for each additional beneficiary, with effect from 1 March 2013. These medical tax credits provide for a more equitable tax relief dispensation and make medical scheme membership more affordable for middle-income earners.
The Bill provides income tax relief for small businesses. The monetary brackets of the graduated income tax table for small business corporations were increased, and an additional lower 21% income bracket is introduced. In addition, the monetary annual turnover amount for a qualifying small business corporation is increased from R14 million to R20 million per annum.
The Bill also provides for increases in the monetary amounts of various specific indirect taxes. Tobacco excise duties are increased between 5,8% and 10%. Excise duties on alcoholic beverages are increased between 5,7% and 10%.
Amid the prevailing economic conditions and the daily struggles for survival by our people, it is our take, as the committee, that this Bill was well thought through and must be supported by all. Re a leboga. [We thank you.] [Applause.]
There was no debate.
Declarations of vote:
Mr D C ROSS: Hon Chairperson, indeed, as the previous speaker, our deputy chairperson, the hon Mr van Rooyen, has indicated, it is a fact that the Rates and Monetary Amounts and Amendment of Revenue Laws Bill is an annual Bill that gives effect to the tax proposals in the Budget. The good news, Minister, is that we acknowledge that there were generous concessions this year.
While National Treasury was indeed generous this year in tax bracket and rates adjustments, especially for small business taxation, in general, there were three main types of taxes where brackets were not adjusted fully for inflation. It is in these thresholds and brackets that several important taxes were not adjusted for inflation. This means that there was bracket creep, or, in real terms, increases in taxes – or if I may put it differently, decreases in the tax breaks for various groups.
If I may, I will give you the example, sir, of personal income tax. Inflation for 2012 was just below 6% but in thresholds it was only adjusted for 3,5%, meaning real tax increases of 2,5%; the turnover tax for micro businesses has not been adjusted since 2009; and taxable income for nominal retirement withdrawals was not adjusted for 2013.
The Bill provides tax relief for individual income taxpayers by adjustments to the personal income tax brackets, partially accommodating for the fiscal drag. That is the position where individuals move into a higher income tax bracket due to inflationary adjustments to their wages and salaries.
The second category is with regard to retirement lump sum benefits. This is a different story completely. The tax tables, although slightly adjusted on an ad hoc basis, have not been adjusted for inflation in 2013. We propose that the schedule should be adjusted annually in the same manner that the normal taxes are adjusted.
The upper thresholds have also not been adjusted – only a single 5% increase since 2009. National Treasury stated no policy reason – especially in the lower threshold groups - why retirees should not be subjected to increasingly harsher tax measures than the general taxpaying population. We have not heard sound reasoning why normal tax rates should be adjusted for inflation but not for the retirement lump sum withdrawal rates.
I think this morning we spoke to Prof Osman Mollagee of PricewaterhouseCoopers and he indicated the importance of savings for the public of South Africa and for them to have the maximum return on their investments.
Turnover tax adjusted for micro businesses has not been adjusted since 2009, thereby excluding a greater number of micro businesses every year. The threshold here is also problematic. It is inadequate, since businesses would have to generate over R108 000 in profit from a R100 million turnover a year. This is, of course, a tax on turnover. The thresholds need to be adjusted annually for inflation.
The DA supports the view that the Tax Review Committee will have a look at this Bill, but, unfortunately, we cannot support this Bill. Thank you. [Time expired.]
Mr N J J KOORNHOF: Chair, we rise to say that we shall support this Bill. It’s not easy to sit on this side in support when you raise taxes, but there are also enough tax breaks in this. Therefore, let us remind ourselves that we need to spend South Africans’ hard-earned money in the correct manner. Thank you. [Applause.]
Mr N SINGH: Chairperson, as we have heard from other hon members, this is a consequential Bill. It is human nature to welcome tax relief and to oppose increases. However, one has to strike a balance. As it is said, “What one wins on the swings, he loses on the roundabout”.
However, tax collection in South Africa, from all the reports that we have received, is excellent. More and more people are registering as taxpayers. It is indeed a very good sign that the citizens of South Africa are recognising their moral and civic responsibility.
I can declare that I am up to date with my taxes. I completed my returns last week. I want to complement the SA Revenue Service, Sars, on the excellent service that they offer us in Parliament. The VIP unit that we have can be compared with the best in the world.
Finally, in addition to what the hon Koornhof has said, the big question about tax collection is how the money is spent. Citizens would like to see value for money. Unfortunately, up to now, when we read the reports of the Auditor-General and other reports, we do not find that for every R1 of taxpayers’ money collected we are getting R1 spent on the ground. This is an area that Treasury, Sars and all of us as parliamentarians must look into, so that when taxpayers pay their taxes, they know that they are getting a return, not only for them but also for the people of South Africa. Thank you. [Applause.]
Ms Z S DUBAZANA: Chairperson, there are two issues in question right now, which makes the DA not support the Rates and Monetary Amounts and Amendment of Revenue Laws Bill. I need to make it clear that it is about the adjustments for inflation and the retirement fund lump-sum withdrawal.
With regard to the adjustments for inflation, as ANC government we have made such adjustments since 2009. The problem is that the adjustment made is not according to the percentage as determined by the DA, but according to the needs of the country. That is where the problem lies.
I now come to the retirement fund lump sum withdrawal and the amendments that we are making today. If you remember, we raised them in 2009 when we said that if you want to withdraw from the R22 000 of the retirement fund, such a withdrawal will be a nontaxable amount. With this amendment we are proposing that this withdrawal must be from R315 000. We are talking here about ordinary workers in the community. We are not talking about people who earn millions and billions. We are talking about people who will gain from these amendments - people who are going to say they can withdraw R315 000 without a tax. Nowhere in the Bill is there a section which says it is compulsory for you not to take your money out.
However, the Bill says that if you take an amount exceeding, for example, R650 000, you will then be taxed by 27%. What is wrong with that? We know that South Africans do not have a disciplined culture of saving. The government has to do something to make sure that our citizens are well taken care of, after having worked hard. The ANC will definitely support this Bill. Thank you. [Applause.]
Question put: That the Bill be read a first time.
Question agreed to (Democratic Alliance dissenting).
Bill accordingly read a first time.
Rates and Monetary Amounts and Amendment of Revenue Laws Bill
(Second Reading debate)
There was no debate.
Question put: That the Bill be read a second time.
Question agreed to (Democratic Alliance dissenting).
Bill read a second time.
TEXTUAL CORRECTION OF PROTECTION OF PERSONAL INFORMATION BILL READ INTO THE RECORDS
(Announcement)
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, before we adjourn, I want to return to the Fourth Order that dealt with the Protection of Personal Information Bill. The Deputy Chief Whip referred to a certain textual correction, which was not read into the records. I wish to do so now. The textual correction referred to is: On page 24, in line 55, to omit “subsection (3)” and to substitute “section 44(2)”.
The House adjourned at 17:35.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 21 JUNE 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Mineral Resources
a) Mineral and Petroleum Resources Development Amendment Bill [B 15 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36523 of 31 May 2013.]
Introduction and referral to the Portfolio Committee on Mineral Resources of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
2) The Minister of Finance
a) Insurance Laws Amendment Bill [B 16 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36513 of 31 May 2013.]
Introduction and referral to the Standing Committee on Finance of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
2. Referral to Committees of papers tabled
Please note: The following entry replaces items 16(a) and (b) of the Referrals to Committees of papers tabled in the ATC of 18 June 2013, on page 2766.
16) The following papers are referred to the Standing Committee on Finance for consideration and report:
(a) Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Finance
Please note: The following entries replace items 1(e) and (f) under Tablings in the name of the Minister of Finance in the ATC (Announcements, Tablings and Committee Reports) of 30 May 2013, on page 2453.
(e) Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol, tabled in terms of section 231(2) of the Constitution, 1996.
f) Explanatory Memorandum to the Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol.
National Assembly
1. The Minister of Public Works
a) Task Team Report on Security Upgrades at Private Residence of President of the Republic at Nkandla, submitted on 20 June 2013 in accordance with Item 17(3) of Schedule B to the Joint Rules of Parliament and classified as “Top Secret” in terms of the Cabinet document on Minimum Information Security Standards (MISS).
COMMITTEE REPORTS
National Assembly and National Council of Provinces
CREDA PLEASE INSERT - T130621E-INSERT1 – PAGES 2949-2958
National Assembly
1. Report of the Portfolio Committee on Police on Proclamations made in terms of section 25 of the Protection of Constitutional Democracy Against Terrorist and Related Activities, 2004 (Act No 33 of 2004) dated 18 June 2013.
The Portfolio Committee on Police received a briefing on the Proclamations made in terms of section 25 of the Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004 (Act No.33 of 2004) as tabled in the following gazettes:
1. Proclamation No 39, Proclamation No 40, published in the Government Gazette No 35566,dated 6 August 2012;
2. Proclamation No 41, Proclamation 42, Proclamation No 43, published in the Government Gazette No 35599,dated 17 August 2012;
3. Proclamation No 57, Proclamation No 58, published in the Government Gazette No 35713, dated 26 September 2012;
4. Proclamation No 64, published in the Government Gazette No 35807,dated 23 October 2012;
5. Proclamation No 1, published in the Government Gazette No 35713, dated January 2013.
The Portfolio Committee on Police reports that it has concluded its deliberations on the Proclamations made in terms of section 25 of the Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004 (Act No.33 of 2004) and recommends that the National Assembly approve said Proclamations.
Report to be considered.
TUESDAY, 25 JUNE 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Membership of Committees
a) The following changes to Committee membership have been made by the African National Congress:
Ad Hoc Committee on the Appointment of the Auditor-General
Appointed: Mufamadi, Mr T
COMMITTEE REPORTS
National Assembly
1. Report of the Standing Committee on Finance on the Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol, dated 19 June 2013.
The Standing Committee on Finance, having considered the request for approval by Parliament of the Protocol amending the Convention between the Government of the Republic of South Africa and the Government of the Republic of Botswana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with Protocol, recommends that the House, in terms of section 231 (2) of the Constitution, approve the said agreement.
Report to be considered
1. REPORT OF THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON ITS STUDY TOUR TO ARGENTINA FROM 29 JUNE- 8 JULY 2012, DATED 4 JUNE 2013
1. BACKGROUND
South Africa adopted the National Sport and Recreation Plan (NSRP) during the Department of Sport and Recreation South Africa’s (SRSA) sport indaba in August 2011, which is a guide to move the process of sport transformation and development forward. The resolutions from this indaba provided a framework which resolved how the plan would be provided. The current status of sport in South Africa and the global trends indicate that the success of sport depends entirely upon the systematic development programmes in place, which in this instance are well captured in the National Sport and Recreation Plan. Whilst the country is still going to develop a Physical Education Strategy, a broader school sports programme has been put in place and is amongst one of the priority programmes for the NSRP. South Africa can learn a lot from countries like Argentina, who are in the developmental state and have done so much in implementing Physical Education and School Sport programmes.
The study tour to Argentina was informed by the fact that both South Africa and Argentina shares many similarities as regards progress in sport. Argentina is reckoned as the powerhouse in the South American region, having consistently topped the medal tables of the regional games and is ranked fourth in the Americas, behind countries like USA, Canada and Cuba. Argentina’s performance in sport like rugby, basketball, volleyball, boxing etc., both professionally and recreationally is commendable. Football, just like in South Africa, is their most popular sport.
Interest in sport for development and peace in Argentina grew when the introduction of sport in schools inspired new thinking about the benefits of sport. In 2000, a nation-wide census identified a significantly low level of sport participation in the general population and, in particular, in the female and youth population. This realisation reinforced the country’s interest in sport and physical activity as a positive force for social development. The Argentinean National Sport Plan was adopted in 2007, and the Portfolio Committee had the opportunity to engage and understand the challenges and success of the recent Argentinean implemented Sport Plan.
The Portfolio Committee oversees the SRSA in its development and implementation of the best practice and model of School Sport. It is upon this background that the decline of young people’s participation over the years necessitated the Department to rethink its approach and programme on School Sport, to respond to the current demands and needs. As a result it was important for the Committee to undertake the study tour to Argentina to better understand how they are succeeding in their implementation of the School Sport programme.
1.1 Delegation
1.1.1. Members of Parliament
The multi-party delegation was led by the Chairperson, Hon R M Mdakane (ANC). Other members comprised: Hon M Dikgacwi (ANC), Hon M Dube (ANC), Hon TE Lishivha (ANC), Hon G Mmusi (ANC), Hon G Tseke (ANC), and Hon W Rabotapi (DA).
1.1.2. Support Staff
The Portfolio Committee was accompanied by Mr L Phori (Committee Secretary) and Mr M Mdekazi (Committee Researcher).
1.2. Terms of Reference and Purpose of the Study Tour
The purpose of the visit was to learn from the National Sport Secretariat of Argentina and the associated institutions on how to implement sport policy and services relating to development of sports at schools supported by the government. The objectives of the study tour were as follows:
• To obtain first-hand experience in interacting with legislators dealing with policy formulation relating to sport in the Congress of the Federal Republic of Argentina;
• To understand the challenges faced and the methods used to implement sport policy and programmes at school level ; and
• To observe and study the parliamentary proceedings and the value added to the delivery of school sport services by the government and its agencies.
1.3 Overview of the Study Tour
The Committee visited the city of Buenos Aires in Argentina and had meetings with the Sport Secretariat, commonly known as the Centro Nacional De Alto Rendimiento Deportivo (CENARD), the Committee on Health and Sport, Sports Committee in the Chamber of Deputies, the Under-Secretary of Education and the Parliamentary Representatives from the Argentine Congress. The Portfolio Committee also met with entities which include amongst others, the Argentine Olympic Committee (AOC), “Friends Club” (Club de Amigos) and the Football Academy for Boca Juniors. The focus of the interaction with these sports bodies or entities related to their mandates, developmental projects and governance structures.
The Committee also visited one of the developmental projects of the CENARD (a state-owned sport development facility), which was a multi-purpose sport centre that housed facilities for sport, recreation, education and training, including a dormitory for “boarders” who came from around the City of Buenos Aires and beyond.
2.1 Welcome and introduction of programme at the South African Embassy
The delegation was welcomed by His Excellency – Ambassador, Mr Tony Leon on 2 July 2012. Mr T Leon gave a brief background of the bilateral relations between South Africa and Argentina. He highlighted strong south-south relations forged with Argentina on areas such as trade & investment, mining, banking, agriculture and sports.
He noted that Argentina was the biggest trading partner of South Africa in Latin America. Argentina remained a strategic partner in South America due to her chairmanship of the MERCUSOR, a very powerful trading bloc in Latin America. He indicated that the governments of Argentina and South Africa signed a bilateral agreement in October 2011 and further signed a protocol of action in the arena of Sport and Recreation.
He informed the Committee that no less than 100 hundred rugby school teams would cross the oceans to play in both South Africa and Argentina in 2012. This situation signified the strong bilateral relation between the two countries in areas of sport and recreation. During the 1800s, towards the end of Anglo-Boer War, approximately 300 Afrikaners migrated and settled in Argentina. Most of these Afrikaner families were known as “de-tribalized’ Afrikaners living in Argentina. Ironically, this Afrikaner grouping had rejected an offer by the government to return them to South Africa.
2.2 The Composition of the House of Congress
The Argentine National Congress has a bicameral system, composed of the Senate and Chamber of Deputies. The members are well-resourced, and they devote much of their time to expert issues.
2.3 The Oversight Responsibility of the Senate
The role of the Senate is to scrutinise legislation, oversee and investigate the Executive, while the Chamber of Deputies legislate in terms of standard procedures. In the Senate, members raise issues and responses are often rapid, depending on the nature of the business. Usually, questions are raised from the floor, and are predominately from the opposition. There is no requirement to give prior notification to answer supplementary questions. Diversity issues such as health, education and sport are priority in the Argentine Parliament.
2.4 The Role of the Opposition in the Senate
The Leader of the Opposition was given the right to become the Chairperson of the Health and Sports Committee. The Health and Sports Committee liaises with other sports stakeholders outside the Argentine Parliament.
2.5 Presentation on the Argentine Congress & Senate
Mr Fabian Parra, Director of Parliament and Government Programme briefed the delegation on the work of the Health & Sports Committee. The delegation was informed that the Hansard Society is an independent, non-partisan political research and education charity. They work in areas of parliamentary democracy and encourage greater public involvement in politics.
The Senate is a non-partisan body. The Democratic Action is the main opposition in the Senate and serves as a watchdog of congress. It looks at issues of legislative processes and procedure, especially dealing with health, sports, education and culture.
The Democratic Action is of the view that advertisement in sport through alcohol and cigarettes should be banned as they deemed it contradictory and is a threat to health of sports people and sporting values in Argentina. Notwithstanding this view, the issue of advertising in sport remained a fiercely debated matter in the Senate and Chamber of Deputies.
The CENARD and Argentine Olympic Committee were permitted to make oral submissions during the meetings convened by the Committee on Health and Sport. The Public Health and Hospitals were freely accessible to all citizens of Argentina. The Health and Sport Committee focused mainly on Health legislation, mental health issues, and regulations dealing with private health-care companies. The Senate needed to debate the health risks involved in the advertising of harmful substances during the sports events and games by sponsors. However there was no formal relationship between the health professions council and schools specializing in sports in Argentina.
3. Presentation on Physical Education System
Ms Soledad Acuna, Under-Secretary of Education of the City of Buenos Aires briefed the delegation on the Physical Education System. Ms Acuna stated that since 2011, Argentina had a National Directorate of Physical Education, as a branch within the Ministry of Education. She spoke of the budget, and how this led to the decision to offer free physical education to learners and students. Physical Education was seen as a compulsory subject at school, even though it was not an all-week activity, and normally students had about three hours per week set aside for activities, on a Monday, Wednesday and Friday. The students were assigned marks for their performance in Physical Education (PE), and he reiterated that it was run by professional PE teachers, who were trained for four years at tertiary institutions.
3.1 The Role of the Evita Sports Games
The Evita Games were convened annually in honour of the late wife of the former President, Evita Peron. All primary and high schools were taking part in these games. The communities and families were part of the games to introduce sports to newcomers and no competitive sport was encouraged at that level. The Evita Games were introduced during 2000 as part of promoting healthy lifestyles and forging strong family relations through sport as a tool for social cohesion. The Evita Games were promoting values of teamwork, respect and solidarity through social sport. The children were encouraged to participate without any expectation of good performance. Therefore participation was purely for social cohesion as opposed to competitive sport.
The children aged from 12-18 year-old participated in the Evita Games. However 60 year-olds as well as physically handicapped were given opportunities to participate in these national games. The 24 Provinces around Argentina would participate annually during the games. The games were promoting individual as well as team sport. An indigenous sport called “frog game” was included in the programme. These games comprised of different sporting codes such as volleyball, basketball, athletics, cycling and gymnastics. Since 2003-2011, about 1, 2 million people participated in the Evita Games. The cultural and arts aspect of Argentinine life constituted a major part of the games. Dancing, music, painting and other forms of art were part of the Evita Games. The budget for this Evita Games came from the national fiscus and government contributed about $10 Million US Dollars towards the success of these games annually.
Clubs were widely used in Argentina but not all children had the chance to register at private clubs, so the emphasis was rather on schools to develop their physical abilities. Sometimes recruiters would visit the high schools and view children in their classes.
2. Presentation on Strategic Plan 2008-2012
The National Secretariat of Sport within the Social Development branch of government presented the Strategic Plan. A new body had also been created in 2010 – Centro Nacional De Alto Rendimiento Deportivo (CENARD) – to support high level performance in Sport. This was a non-profit, non-state organization, and was run together by the National Olympic Committee and the Argentina Secretariat for Sport. This Agency had its own building and own staff. The budget was derived from 1% of monthly prepaid subscriptions on mobile phones. He explained that Argentina, like many other places, had more mobile phones than inhabitants, with about 30 million handsets. Another 1% was added to the subscription charges, which comprised the budget of US$35 million for the international high level development. CENARD had a President, elected on a four-year cycle, and the current President of CENARD was also the President of the National Olympic Committee, whose term would run to December.
3.3 Presentation on the Strategic Plan of National Sport Secretariat
Mr Raul Araya, Clerk of the Overseas Office, National Sport Secretariat (commonly known as the CENARD) briefed the delegation on the strategic plan and implementation of the CENARD programmes for delivery of sports services. He touched on the following focal points:
• Argentina had a National Directorate of Physical Education, as a branch within the Ministry of Education.
• The Budget made it possible to offer free activities.
• Physical Education was seen as a compulsory subject at school, even though it was not an all-week activity.
• Students had about three hours per week set aside for activities, on a Monday, Wednesday and Friday.
• The students were assigned marks for their performance in Physical Education (PE).
• PE was run by professional PE teachers, who were trained for four years at tertiary level.
• Clubs were widely used in Argentina but not all children had the chance to register at private clubs, so the emphasis was rather on schools to develop their physical abilities.
• Sometimes recruiters would visit the high schools and view children in their classes, with a view to giving them future opportunities.
The main aim of the CENARD was to cooperate in the implementation and development of policies for high level and sporting development. Most of this was done by financing activities only through national sport federations. Money grants were also provided for sportsmen and coaches to help with activities. The budget was used for the hiring and payment of specialists in sport including the national coaches of the national federations. The focus would be on training those federations who could not get private sponsorship elsewhere.
Mr. Araya noted that in South Africa, as well as many other countries, soccer and rugby received most of the sponsorship, and pointed out that there were many other sports that were overlooked, and who might not even be trying to find sponsorship. The budget was also spent on participation in international and national competitions such Pan-American games and South-American games. Each national federation had identified their best sportsmen and sportswomen and these people were provided with medical insurance and medical assistance, as were the coaches. The CENARD had an internal body, the General Assembly, which had to approve the annual plans. There was also a Fiscal Committee and Disciplinary Committee. The structure was quite simple, and comprised of a board of directors from the National Secretariat for Sport and the Argentine Olympic Committee.
Mr. Araya indicated that the National Secretariat had the chance to focus on the most relevant issues, which was providing equal opportunities for all citizens in sport activities. Prior to the formation of this Agency, there had been pressure from the media and sports federations to grant money for international competitions, but there were competing priorities also of matters such as healthcare. The formation of the new Agency meant that the National Secretariat for Sport had a better budget, could impose and develop new programmes for sport as well as grant opportunities to different focus groups, such as the poor, the disabled and youth leagues. Around 1 000 fourth-year students, who were aged 21 to 22, provided activities to the different focus groups.
This was supported by the institutes of sports, local and provincial government, which provided around 60 000 people with the chance to be involved in sport activities. This was a major pilot project and he emphasized that it had a large budget. The project demanded grounds and better facilities, although he mentioned that the weather was similar to South Africa, so outdoor activities could still take place in winter. Institutes would be provided with equipment and nets. After this programme, players moved to the National Evita Games, and joint efforts at national, provincial and local level resulted in much better utilization of budgets.
4.1 Observations on the School Sports System
The Committee was informed that the Ministry of Education in Argentina was only created in 2011 and comprised of pre-school, primary and high school levels. It was noted that socio-economic conditions could determine the performance of children in both school and sports activities. Therefore the Argentine government deemed it necessary to provide free education, which included physical education. However the emphasis remained mainly on mass participation and not competition in sporting activities. This education model was based on instilling a good value-system in the participating children. There were approximately twenty-five programmes. The Committee delegation further observed that early childhood development supported by systematic and professional physical education resulted in world class athletes from Argentina.
4.2 Site Inspection at the National Sports Secretariat (CENARD)
The Committee learnt that the National Sport Secretariat had excellent facilities such a gym, swimming pool, stadium, astroturf, hockey field and accommodation for the boarders at the CENARD. The children were from mainly the city of Buenos Aires but others came from far remote rural areas of Argentina. The delegation was satisfied with the infrastructure at this specialised facility for sports development.
The Sports House was constructed as a one-sport shop meant to provide office space for all sporting codes in the Buenos Aires region. The Sports House was constructed at the cost of about R157 million from the coffers of the provincial government of Buenos Aires. In addition, this facility also boasted a combination of courts with tennis, netball, hockey, football and swimming pools
5.1 Club De Amigos, “Friends of Club”, Buenos Aires
This state-of–the-art facility situated in Buenos Aires had a multi-purpose sports centre as well as a “Sports Club”. The Club De Amigos had hockey fields, netball courts, tennis courts, football fields, a swimming pool, a ballet studio, a table tennis board and gymnasium. This sports centre had been upgraded with funding to the tune of R100 million coming from the government budget through the CENARD. Children from the ages of 3 to 7 years-old could participate in sport and recreational activities without any emphasis on competitive sport. This facility had change rooms, offices and kitchen facilities for functions and sport conferences.
The delegation of the Committee was allowed to observe and watch a school sport class taking place with learners and parents.
5.2 Football Academy for Boca Juniors FC
This state-of-the-art facility situated in La Boca had a multi-purpose centre as well as a “Football Academy”. The Football Academy had a building that catered for indoor games such as chess, in-door soccer, ballet, karate, table tennis and a gymnasium. The clubs around the facility were able to share the facility with development clubs of the community in La Boca. Boca Juniors were recruiting young footballers in Argentina and beyond. The academy had educational facilities as well as boarding for aspirant footballers whose homes were in the outskirts of the city of Buenos Aires. The stadium of the Boca Juniors had seats and a suite named after the most celebrated footballer from Argentina, Diego Maradona. The rivalry between the Boca Junior club and Riviera La Plate club were the most interesting football encounters in Argentina. Boca Junior FC and River Plate commanded massive support amongst football fans in Argentina.
5.3 Clarity Seeking Questions and Comments
The delegation observed that the National Sport Secretariat was focusing more on the city of Buenos Aires, as opposed to the entire Republic of Argentina. The Undersecretary explained that although the Secretariat was situated in the city, it served all learners from other cities and provinces in Argentina. The delegation also felt that a compulsory physical education requirement in South Africa could contribute to an increase in the supply of physical educators, especially at departments like Basic Education which demanded specialised physical training of learners at schools and universities. A further observation was made that although South Africa does not use highly sophisticated physical education trainers, it is highly likely that should a similar system be introduced in our country, it would benefit many athletes and sports federations.
5.4 Presentation on the Infrastructure and Sport
Mr Francisco Irarrazabal, Director of Infrastructure and Sports Activities briefed the delegation on the work of the Sports Infrastructure Centre located at the Golf Club. There was an ambitious plan called the 2020 City Vision which aimed at making the city of Buenos Aires motor-vehicle free by 2020. The intention was to ensure that residents of the city don’t use cars but instead would walk, run and dance as a form of recreation and creating healthy lifestyles. People were encouraged to use open public spaces as a means of achieving fitness and health through leisure. It was noted that there were strong relations between the state, banks and other private sector corporations with the view of achieving greater sport development.
There were 160 sports clubs in and around the city of Buenos Aires and such clubs were affiliated to the national sports federations. The Committee delegation was informed that the City of Buenos Aires was also bidding to host the World Youth Games in 2019.
6. RECOMMENDATIONS
The Portfolio Committee on Sport and Recreation requests that the Minister of Sport and Recreation ensures that the following recommendations are considered, and where possible, implemented within one month of the adoption of this report by the House:
1. Argentine-SA bilateral Partnership: The existing cooperation between the two countries be strengthened in the areas of Sport for Development (SFD). Within the framework of Development Cooperation, development through sport should be one of the focal subjects or dialogue areas of negotiations between the two governments, whereby South Africa could learn from Argentina on the best practice of implementing the National Sport and Recreation Plan. It was evident from the visit that Argentina had created a very strong base to support federations and implementing programmes of sport and recreational for the purposes of development other than just competition.
2. School Sport: The strength of a successful sport system relies strongly on the strength of its foundation. It was evident from the visit that, the Department of Sport and Recreation needs to play a critical role in rolling out school sport programmes. It will be critical to ensure that all role players like the Department of Education, Teachers Unions, School Governing Bodies, Sports Federations etc are part of the process of shaping up our school sport system.
3. Physical Education: The compulsory inclusion of Physical Education as a separate curriculum should be explored further with other stakeholders involved. Physical Education is a curriculum based subject which is taught by qualified teachers/specialists whilst school sport is an extra-curricular activity which supports the student learning environment. Early childhood development can help create a well balanced child with coordination, technical and tactical ability in movement.
4. The Department should consider promoting the cooperation between the two countries, amongst the local institutions who may want to share their knowledge and expertise within the areas of sport science, management, mass sport and school sport initiatives.
7. CONCLUSIONS
The delegation, having deliberated and exchanged views with its counterparts, considered the issue of compulsory physical education as the best route to follow for South Africa, since it would help in a number of areas of athletic development, transformation and social cohesion in our society through systematic sports programmes.
The committee would further explore the possibility of follow-up visits to countries which would be chosen during appropriate times, hoping that by that time South Africa would have implemented a school sports league. Since physical education is not compulsory in South Africa, it would be wise to explore the possibility of utilising Wednesdays and campaigns like “football Fridays” to reignite passion for sport in schools.
Schools, universities and FET Colleges could be used for implementing a systematic school sport philosophy as a way of introducing physical education in our schools. Bigger sports federations and clubs could be approached, in order to get their support through interventionist programmes of school sports academies, high performance centres and specialized sports schools.
Report to be considered.
THURSDAY, 27 JUNE 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bills
1) South African Maritime and Aeronautical Search and Rescue Amendment Bill [B 28 – 2012] – Act No 5 of 2013 (assented to and signed by President on 25 June 2013).
TABLINGS
National Assembly and National Council of Provinces
1. The Minister for Cooperative Governance and Traditional Affairs
a) Strategic Plan of the Department of Traditional Affairs for 2013 – 2016.
b) Annual Performance Plan of the Department for Cooperative Governance for 2013 – 2014.
2. The Minister of Water and Environmental Affairs
(a) General Notice No 154, published in Government Gazette No 36207, dated 8 March 2013: Correction notice: Waterberg-Bojanala National Priority Area, in terms of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
b) General Notice No 171, published in Government Gazette No 36207, dated 8 March 2013: Draft Regulations prescribing the atmospheric emission licence processing Fee Calculator, made in terms of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
COMMITTEE REPORTS
National Assembly
1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE STRATEGIC AND ANNUAL PERFORMANCE PLANS 2013/14 OF THE QUALITY COUNCIL FOR TRADES AND OCCUPATIONS (QCTO) AND COUNCIL ON HIGHER EDUCATION (CHE), DATED 19 JUNE 2013
The Portfolio Committee on Higher Education and Training, having considered the Strategic and Annual Performance Plan (APP) 2013/14 of the Quality Council for Trades and Occupations (QCTO) and Council on Higher Education (CHE) reports as follows:
1. Introduction
The Portfolio Committee on Higher Education and Training considered the Annual Performance Plan and (Medium Term Expenditure Framework) MTEF Budget 2013/14 of the QCTO and CHE on 22 May 2013. This report captures a summary of the presentations made by both Councils to the Committee, focusing essentially on the Annual Performance Plans 2013/14 which were presented in conjunction with the Strategic Plans that were tabled in Parliament on 08 April 2013 for consideration and reporting by the Committee. The report further recaptures observations and recommendations made by the Committee during deliberations on some of the key aspects of the presentations.
2. Background
The Strategic and Annual Performance Plans of public entities were extremely valuable sets of information to the Committee in exercising its oversight role. Engaging with public entities on these documents was very critical in scrutinising allocations of public funds and monitoring their utilisation. The annual performance targets of the entities were also scrutinised to ensure that they were in line with the Department’s mandate of expanding access to post school education and training opportunities for the young people of the country. Moreover, effective oversight and transparency were requirements for effective accountability which was the responsibility of the Committee. This was the overarching role of the Committee to invite public entities to account before it.
Portfolio Committee on Higher Education & Training:
Present: Ms N Gina (ANC), Mr S Makhubele (ANC), Adv I Malale (ANC) (Chairperson), Prof S Mayatula (ANC), Mr C Moni (ANC), Ms D Sibiya (ANC), Dr L Bosman (DA), Prof A Lotriet (DA), Mr A Mpontshane (IFP) and Mr J Dikobo (AZAPO).
Apologies: Ms D Chili (ANC) and Mr S Radebe (ANC).
Support Staff: Mr A Kabingesi (Committee Secretary), Ms M Modiba (Content Adviser), Mr L Komle (Researcher), Ms T Majone: Committee Assistant and Mr F Mohale: Media Officer.
The following were present:
Quality Council for Trades and Occupations:
Ms N Madilonga: Chief Financial Officer and Mr T Lata: Chief Director.
Council on Higher Education:
Mr A Essop: Chief Executive Officer, Ms B Shongwe: Chief Financial Officer and Prof B Taaver: Council Member.
Department of Higher Education and Training:
Mr T Tredoux: Chief Financial Officer, Mr F Toefy: Chief Director Strategic Planning, Mr M Lumka: Chief Director SETA Coordination, Ms M Erra: Director, Ms P Whittle: Director, Ms N Nqaba: Parliamentary Liaison Officer Minister’s Office, Mr S Zondi: Parliamentary Liaison Officer Deputy Minister’s Office, Ms P Sekgobela: Assistant Director Director General’s Office and Mr B Bingwa: Intern.
3. Summary of presentations
3.1 Quality Council for Trades and Occupations (QCTO)
• Ms N Madilonga: Chief Financial Officer informed the Committee of the apologies submitted by the Chief Executive Officer who was due to arrive in the country the following day and the Chairperson who was admitted in hospital for surgical procedures.
• The Committee raised concern regarding the format of the presentation submitted by the QCTO in that, it did not articulate on specific targets and programme of action as required by the Committee. Subsequent to this concern, the Committee was not prepared to proceed with the presentation without the accounting authority of the QCTO present. It was proposed that the QCTO should revise the presentation so that it can articulate to specific requirements of the Committee.
• The QCTO welcomed the proposal of the Committee and indicated that it would liaise with the Department to improve the layout of the presentation. It was further noted that the QCTO was undergoing a very difficult transitional trajectory in determining its mandate. It was agreed that a new date for the meeting with the QCTO would be set and communicated accordingly.
3.2 Council on Higher Education
Mr A Essop: Chief Executive Officer led the presentation which highlighted the following key issues:
• The Committee was informed that the CHE did not have a Council Chairperson and the process of appointment of the new Chairperson was spearheaded by the Department. The Deputy Chairperson also submitted an apology for the meeting owing to other commitments.
• The core functions of the CHE included: providing advice to the Minister on any aspect of higher education; quality assurance; qualifications framework and to publish information and reports on state of higher education.
• Proactive advice on the role of public higher education colleges (Agriculture and Nursing) was provided to the Minister.
• Based on monitoring the state of higher education; it emerged that 50% of young people in higher education drop-out without completing their degrees and only 30% of students from all backgrounds completed their degrees in regulation time. The Council held a view that there may be a gap between schooling and higher education and thus established a task team to investigate the causes of dropout.
• The CHE planned to conduct research on: 20 years review of the state of higher education; institutional governance and management investigating whether the current tools (independent assessment and placing institutions under administration) were effective in improving governance and management; the state of provision of private higher education; role of National Benchmark Tests (NBTs) in partnership with the Council for Quality Assurance in General and Further Education and Training (Umalusi); changing nature of the academic profession and funding formula which would be different from the one commissioned by the Minister.
• The CHE requested higher education institutions to work together on sharing of best practices to improve student success in higher education. Deputy Vice-Chancellors of Academic Learning and Research in universities were engaged on this matter and it would be concluded in July 2013. However, the main challenge was that currently universities operated in a competitive way and were not keen to collaborate. The CHE planned to convene a Seminar on higher education in September 2013 and the Committee would be invited.
• The challenges of monitoring and evaluation including administration had since been addressed and capacity had improved.
• The Council completed a cycle of institutional audits and in December 2012, it approved the Framework for Quality Enhancement.
• The Council anticipated a request from the Department for accreditation of programmes for the two new universities in Mpumalanga and Northern Cape. However, the challenge was how to accredit them owing to the six months period required in completing the accreditation process.
• The process for the review of Bachelor of Social Work (B.SW) degree was underway and would be completed by mid 2014.
• Budget 2013/14: The total allocation for CHE in 2013/14 was R46 million and majority of the allocation R41 million came from the Departmental grant. The total personnel cost for the year under review was R25.8 million and goods and services amounted to R19.8 million. The CHE required additional funding to fulfill its mandate and it would utilise its surplus to complement the shortage.
4. Observations
4.1. The Committee noted the following progress made by CHE:
• The Council provided proactive advice to the Minister given that it had research capacity to do so.
• Monitoring and Evaluation Directorate had been fully capacitated to conduct monitoring and evaluation activities.
4.2 The Committee identified the following concerns:
• There were delays by the Department in the appointment of the new Chairperson of the CHE Council.
• The programmes to be offered by the two new universities in Mpumalanga and Northern Cape were not yet submitted to the CHE for accreditation to be ready for 2014.
• The Further Education and Training (FET) college lecturer qualification had not yet been submitted to the CHE for accreditation.
• The mismatch in the financial statements of the CHE presented to the Committee and requested that they be corrected to reflect the full budget that includes roll over of surplus funds.
4.3 The Committee commended the proposal by University of KwaZulu-Natal (UKZN) in making isiZulu compulsory for all students and proposed that other higher education institutions should consider the promotion of African languages.
5. Recommendations:
The Committee recommends that the Minister should:
• Finalise the process of appointing the Chairperson of the CHE without further delays.
• Ensure that the programmes of the two new universities are submitted to the CHE for accreditation to be ready for 2014.
In addition, the Committee further recommends that:
• Accreditation of Further Education and Training (FET) college lecturer qualification be prioritised.
6. Conclusion
It can be noted that the APP presented by CHE reflected an improvement in the entity’s evaluation and monitoring role which was a serious concern for the Committee in the previous years. The entity’s capacity had been augmented in order to fulfil its mandate with the limited funding it had. The CHE was robustly advised to move towards providing more pro-active advisory role to the Minister. The financial statements presented by CHE reflected reasonable financial management although there were reported cases of under spending in the previous financial year which remained a concern for the Committee.
Report to be considered
2. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE STRATEGIC AND ANNUAL PERFORMANCE PLAN 2013/14 OF THE TRANSPORT EDUCATION AND TRAINING AUTHORITY (TETA) AND SERVICES SECTOR EDUCATION AND TRAINING AUTHORITY (SSETA), DATED 19 JUNE 2013
The Portfolio Committee on Higher Education and Training, having considered the Strategic and Annual Performance Plan (APP) 2013/14 of the Transport Education and Training Authority (TETA) and Services Sector Education and Training Authority (SSETA) reports as follows:
1. Introduction
The Portfolio Committee on Higher Education and Training considered the Annual Performance Plan and Medium Term Expenditure Framework (MTEF) Budget 2013/14 of TETA and SSETA on 05 June 2013. This report captures a summary of the presentations made by both SETAs to the Committee, focusing primarily on the Annual Performance Plans 2013/14 which were presented in conjunction with the Strategic Plans that were tabled in Parliament on 08 April 2013 for consideration and reporting by the Committee. The report further recaptures observations and recommendations made by the Committee during deliberations on some of the key aspects of the presentations.
2. Background
The Strategic and Annual Performance Plans of public entities were extremely valuable sets of information to the Committee in exercising its oversight role. Engaging with public entities on these documents was very critical in scrutinising allocations of public funds and monitoring their utilisation. The annual performance targets of the entities were also scrutinised to ensure that they were in line with the Department’s mandate of expanding access to post school education and training opportunities for the young people of the country. Moreover, effective oversight and transparency were requirements for effective accountability which was the responsibility of the Committee. This was the overarching role of the Committee to invite public entities to account before it.
Portfolio Committee on Higher Education & Training:
Present: Ms N Gina (ANC), Mr S Makhubele (ANC), Adv I Malale (ANC) (Chairperson), Prof S Mayatula (ANC), Mr C Moni (ANC), Ms D Sibiya (ANC), Dr L Bosman (DA), Prof A Lotriet (DA), Mr N Bhanga (COPE), Mr A Mpontshane (IFP) and Mr J Dikobo (AZAPO).
Apologies: Ms D Chili (ANC) and Mr S Radebe (ANC).
Support Staff: Mr A Kabingesi (Committee Secretary), Ms M Modiba (Content Adviser), Mr L Komle (Researcher), Ms T Majone: Committee Assistant, Ms F Goduka: Executive Secretary and Mr F Mohale: Media Officer.
The following were present:
Transport Education and Training Authority (TETA):
Ms M Anno-Frempong: Chief Executive Officer (CEO), Mr J Dube: Chairperson, Mr G Jacobs: Chairperson Human Resource & Finance Sub-Committee, Mr O Siyenge: Board Member, Ms V Mesatywa: Ministerial Appointee, Mr R Tsolo: Acting Chief Operations Officer, Mr S Ndukwana: Chief Financial Officer, Mr M Duma: Skills Development Manager, Ms E Montshiwa: Monitoring and Evaluation Manager.
Services SETA:
Dr S Moon: Administrator, Ms L Bogoshi: Chief Operations Officer (COO) and Ms C Simons: Chief Financial Officer (CFO).
Department of Higher Education and Training:
Mr C Mtshisa: Acting Deputy Director-General Skills, Mr M Lumka: Chief Director SETA Coordination, Mr Z Hlongwane: Director Public Entities, Ms S Mutinhima: Deputy Director, Ms N Nqaba: Parliamentary Liaison Officer Minister’s Office, Ms P Sekgobela: Assistant Director General’s Office and Mr B Bingwa: Intern.
Other guests:
Mr J van Rensburg: Journalist SABC, Mr D Preva: Multimedia Reporter BDFM, Ms M Doyle: Monitor Parliamentary Monitoring Group (PMG), Mr A Jeftha: Director Allan Jeftha Attorneys, Ms Z Keto: Senior Liaison Manager Auditor General of South Africa (AGSA) and Ms A Hendricks: Monitor SABINET.
3. Summary of presentations
3.1 Transport Education and Training Authority (TETA)
Ms M Anno-Frempong: CEO led the presentation which highlighted the following key issues:
• In terms strategic goal 1 research; a research and development manager was appointed to implement research and development strategy, sub-sector scarce skills were researched and R21 million was allocated for this programme.
• In terms of strategic goal 2 middle level skills; learner access to FET colleges and higher education and training institution was increased, multi-year funding for full qualification would be offered (R71 000 per student), roadshows would be conducted in rural areas and R381 million had been allocated for this programme.
• Strategic goal 3 is Education and Training Qualification Authority (ETQA); qualification for the taxi industry would be implemented, 5 occupational qualifications would be developed, capacity building and training would be offered to accredited providers and assessors.
• 8 FET colleges in collaboration with the Department of Transport would provide National Certificate Vocational NC(V) programmes in transport related qualifications and become Institutes of Sectoral Occupational Excellency (ISOEs). Each FET college was allocated R1 million for this programme.
• In terms of creating employment, R210 million had been set aside for learnerships, skills programmes, lay-off scheme and 1000 graduates would be placed.
• In terms of career guidance; R71 million was allocated for this programme, 10 000 booklets would be distributed to various provinces, Grade 9 learners would be included in this programme and teacher development projects.
• In terms of organisational development; R29 million was set aside for this programme, a wellness company was appointed to provide wellness services, the restructuring process was underway and staff skills audit would be conducted.
• TETA was appointed as a lead SETA in Limpopo to support FET colleges. In terms of rural development, various districts were supported on various skills development programmes.
• In terms of the 2013/14 budget; the levy income of TETA was R518 million, administration costs was R64.8 million, discretionary grant R129 million, mandatory grant R324 million and the total income was R555 million. The costed Annual Performance Plan 2013/14 was R732 million with additional funding expected to be funded from cancellation of contracts.
3.2 Fidentia Curatorship
Mr A Jeftha: Director Allan Jeftha Attorneys led the presentation which highlighted the following key issues:
• The board of TETA approved R200 million to be invested in Fidentia in 2006. TETA received monthly statements from Fidentia CEO Arthur Brown. A request for payment was submitted to Fidentia and only R15 million was paid to TETA, and R185 million balance remained outstanding. No further payments were made by Fidentia despite numerous requests from TETA.
• A claim of R185 million was submitted to the curators and curators paid R33 million to TETA. No further payments had been made since then and a number of assets would be sold to settle the remaining balance.
• It emerged that funds were misused and no investment was made by Fidentia. Arthur Brown was pleaded guilty to fraud and was fined R150 000 by the Court. TETA suffered a loss but had carried out its mandate with lesser funds.
3.3 Services SETA
Dr S Moon: Administrator led the presentation which highlighted the following key issues:
• The Committee was informed that an investigation by an independent consulting firm on allegations of irregularities relating to mandatory grant was completed and the case was referred to the Hawks. Unfortunately, there hasn’t been progress in the case thus far. Sensitive forensic audit documents relating to the case were available for the Committee to scrutinise after the meeting.
• The strategic plan of SSETA was approved only in January 2012 with two months left to the end of the financial year and all these developments led to huge delays in roll out of 2012/13 programmes.
• The new board would commence with its fiduciary duties as of 1st July 2013. The process of appointment of new board members would be completed in the next two weeks. SSETA was successfully restructured in 2012 and a new COO and CFO had been appointed.
• The backlog of artisan certification remained a concern for SSETA. Of the 500 artisans trained, 2000 remained without their trade test certificates owing to poor monitoring by previous management. Remedial project of addressing this challenge was underway.
• A new model had been developed to deliver on the mandate of SSETA as required by the NSDS III. The previous model was onerous and SSETA did not have a direct link with service providers. During the period 2007 – 2010, SSETA paid out R1.6 billion in contracts to 150 companies and R800 million went to 20 intermediaries.
• In terms of budget; the total revenue for the 2013/14 financial year was R1.5 billion, investments R47 million, prior year surplus R415 million and skills development penalties R15 million. The expenditure included; employer grants R256 million, administrator expenditure R127 million and discretionary projects R1.1 billion.
4. Observations
Transport Education and Training Authority (TETA)
4.1 The Committee noted the following concerns:
• How the R185 million outstanding balance would be recouped remained a serious concern.
• The fact that TETA submitted Strategic and Annual Performance Plan 2013/14 to Parliament without a signature was inappropriate.
• The school adoption programme was currently inadequate and needed to expand to other 6 provinces.
• Outstanding certificates for learners that completed learnerships remained a serious challenge since these learners cannot move on with their lives.
• Inadequate implementation of RPL in the transport sector.
4.2 The Committee noted the following progress:
• The envisaged placement of 1000 graduates to various workplace opportunities.
• The multi year funding for full qualification where students would be funded at R71 000 per annum.
• The proposed express parcel delivery for the taxi industry.
Services SETA
4. 3 The Committee noted the following concerns:
• The backlog in issuing of outstanding trade tests certificates to 2000 artisans.
• Delays in the appointment of the new board members expected to commence with their duties on 1 July 2013.
• Enormous challenges that remained in SSETA while the period of the administrator was prolonged.
• The late approval of SSETA strategic plans for 2011/12 and 2012/13 would have a knock-on effect to the roll out of 2013/14 programmes.
• Inadequate monitoring and evaluation in SSETA was a challenge and its performance during the NSDS II could not be assessed because of inadequate data.
4.4 The Committee noted the following progress:
• Development of new policies and procedures that were aligned to the new model of delivery which replaced the use of intermediaries.
• Building of internal capacity through the appointment of CEO, CFO and COO.
• Collaboration with 12 FET colleges and Memorandum of Understanding (MoU) that was signed.
• Long term agreements signed with municipalities and local businesses for rural development projects.
5. Resolutions
The following formed part of the key resolutions:
• TETA should compile and submit a comprehensive report explaining all the activities, decisions, people involved, as well as the entity's plans and progress in its quest to recoup the funds. The comprehensive report should include; current investments of TETA with any financial institution and the legal costs incurred since the beginning of the Fidentia case.
• The Committee resolved to work with the office of the Auditor General of South Africa (AGSA) to monitor the performance and financial records of SETAs for proper accountability.
6. Recommendations
The Committee recommends that the Minister should:
• Finalise the appointment of Service SETA board members without delays.
7. Conclusion
The Committee emphasised the importance of accountability to the public funds that were managed by SETAs to deliver on the mandate of the NSDS III. In its quest for robust oversight, the Committee warned SETAs against any practices of maladministration or misuse of public funds as it would work closely with the AG to monitor their performance.
With regards to TETA, the Committee sought for a comprehensive report on what transpired since 2006 up until now. Although it seemed that recouping R185 million balance from the curators would take a long process, the Committee requested Allan Jeftha lawyers to work closely with the curators on this matter. As much as TETA carried on with its mandate with lesser funds, the Fidentia fraud affected its image and relationship with stakeholders. TETA was in a process of engaging with its stakeholders countrywide to regain their confidence and deliver its mandate. The Annual Performance Plan 2013/14 presented to the Committee was in line with NSDS III deliverables although some of the key projects would not be expanded owing to budgetary constraints.
Services SETA had been under administration for almost two years. The extent of irregularities and corruption in SSETA was attributed as the main reason the period of the administrator was prolonged. During his tenure, the administrator developed a new delivery model which would replace the use of intermediaries who benefited more than R800 million in the use of the previous model from 2007 – 2010. The change had not been easy owing to resistance both internally in the SSETA and externally amongst stakeholders who used SSETA as an ATM or business opportunity. The envisaged take over of the new accounting authority from 1 July 2013 dons a new era for SSETA which aimed to achieve its targets of 2016.
THURSDAY, 4 JULY 2013
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Rural Development and Land Reform
a) Report and Financial Statements of the Commission on Restitution of Land Rights for 2012-13 [RP 191-2013].
National Assembly
1. The Speaker
a) The President of the Republic submitted the following letter dated 27 June 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service.
employment of the South African National Defence Force FOR Service in CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE
This serves to inform the National Assembly that I authorised the employment of Three Hundred and Six (306) South African National Defence Force (SANDF) personnel for service in co-operation with the South African Police Service (SAPS) within the Republic of South Africa.
Members of the SANDF will be employed in co-operation with the SAPS and other state departments to ensure adequate security during the official state visit of the President of the United States of America.
This employment is authorised in accordance with the provisions of section 201(2)(a) of the Constitution of the Republic of South Africa, 1996.
The employment is for the period 28 June 2013 to 01 July 2013.
The expenditure expected to be incurred for this employment is R 228 862.
I will communicate this report to members of the National Council of Provinces and the Joint Standing Committee on Defence and wish to request that you bring the contents hereof to the attention of the National Assembly.
Yours sincerely
signed
Mr Jacob Gedleyihlekisa Zuma
President of the Republic of South Africa
THURSDAY, 11 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Draft Bills submitted in terms of Joint Rule 159
1) Electronic Communications Amendment Bill, 2013, submitted by the Minister of Communications.
2) Independent Communications Authority of South Africa Amendment Bill, 2013, submitted by the Minister of Communications.
Referred to the Portfolio Committee on Communications and the Select Committee on Labour and Public Enterprises.
3) Electoral Amendment Bill, 2013, submitted by the Minister of Home Affairs.
Referred to the Portfolio Committee on Home Affairs and the Select Committee on Social Services.
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Communications
a) Electronic Communications Amendment Bill [B 17 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36550 of 7 June 2013.]
b) Independent Communications Authority of South Africa Amendment Bill [B 18 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36549 of 7 June 2013.]
Introduction and referral to the Portfolio Committee on Communications of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
2. Determination of annual salary package and termination benefit of Auditor-General
A letter dated 23 May 2013 has been received from the President of the Republic, informing the Assembly that upon the recommendation of the Committee on the Auditor-General, as published in the ATC on 8 July 2011, he has determined in President’s Act No 143 of 2013 that –
a) the annual salary package of the Auditor-General, Mr T M Nombembe, be increased from R1 708 600.00 per annum to R2 650 000.00 per annum with effect from 1 December 2006;
b) the Auditor-General’s termination benefit be increased from 10% of the average term compensation for each year of service to 50% of the average term compensation for each year of service; and
c) the payment of back pay amounts be done in accordance with the parameters and guidelines applicable to the Office of the Auditor-General.
Referred to the Committee on the Auditor-General.
3. Membership of Committees
(a) The following changes to Committee membership have been made by the African National Congress:
Ad Hoc Committee on the Appointment of the Auditor-General
Discharged: Masutha, Adv. TM
Appointed: Moloi-Moropa, Ms J
Portfolio Committee on Rural Development and Land Reform
Discharged: Sizani, Mr PS
Appointed: Thibedi, Mr J
(b) The following members have been nominated by their parties to serve on the Ad Hoc Committee to exercise co-ordinated oversight on the Legacy of the Native Land Act of 1913.
African National Congress
Cele, Mr M
Dambuza, Ms N
Mabuza, Mrs C
Johnson, Mr L
Sunduza, Ms T
Nhlengethwa, Ms D
Twala, Mrs M
Ngcengwane, Ms ND
Mavunda, Mr D
Moss, Ms L
Sosibo, Ms J
Democratic Alliance
Dreyer, Ms A
Steyn, Mrs A
Mokgalapa, Mr S
Steenhuisen, Mr J
van den Berg, Mr N *
Congress of the People
Botha, Mr T
Ramatlakane, Mr L
Njobe, Ms MA
Inkatha Freedom Party
Cebekhulu, Mr RN
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Water and Environmental Affairs
a) General Notice No 607, published in Government Gazette No 36559, dated 14 June 2013: Department of Environmental Affairs: Explanatory Summary of the South African Weather Service Amendment Bill, 2013.
2. The Minister of Trade and Industry
a) Southern African Development Community (SADC) Protocol on Trade in Services, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the Southern African Development Community (SADC) Protocol on Trade in Services.
MONDAY, 15 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Draft Bills submitted in terms of Joint Rule 159
(1) Merchant Shipping (International Oil Pollution Compensation Fund) Bill, 2013, submitted by the Minister of Transport.
2) Merchant Shipping (Civil Liability Convention) Bill, 2013, submitted by the Minister of Transport.
Referred to the Portfolio Committee on Transport and the Select Committee on Public Services.
2. Classification of Bills by Joint Tagging Mechanism (JTM)
1) The JTM in terms of Joint Rule 160(6) classified the following Bill as a money Bill:
a) Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 12 – 2013] (National Assembly – sec 77).
2) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75 Bill:
a) Special Investigating Units and Special Tribunals Amendment Bill [PMB 5 – 2013] (National Assembly – sec 75).
3) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill:
a) Business Interests of Government Employees Bill [PMB 4 – 2013] (National Assembly – sec 76).
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Transport
a) Merchant Shipping (International Oil Pollution Compensation Fund) Bill [B 19 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36561of 13 June 2013.]
b) Merchant Shipping (Civil Liability Convention) Bill [B 20 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36561 of 13 June 2013.]
Introduction and referral to the Portfolio Committee on Transport of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bills may be submitted to the JTM. The Bills may only be classified after the expiry of at least three parliamentary working days since introduction.
COMMITTEE REPORTS
National Assembly
1. REPORT OF THE PORTFOLIO COMMITTEE ON LABOUR ON THE OVERSIGHT VISIT TO KWAZULU-NATAL PROVINCE, DATED 26 MARCH 2013
The Portfolio Committee on labour, having conducted an oversight visit to KwaZulu-Natal on 29 January to 1 February 2013, reports as follows:
1. Introduction
Parliament derives its powers from the Constitution of the Republic of South Africa. Section 42(3) bestows oversight of executive action function to the National Assembly. Section 55(2)(b) empowers the National Assembly to provide for mechanism to maintain oversight of the exercise of national executive authority, including the implementation of legislation and any organ of state.
One of the functions of oversight listed in the Oversight and Accountability Model is to ensure that policies announced by government and authorised by Parliament are actually delivered. This function includes monitoring the achievement of goals set by legislation and the government’s own programmes.
In compliance with the above, the Portfolio Committee on Labour resolved to undertake an oversight visit to the KwaZulu-Natal’s provincial office of the Department of Labour (DoL). The focal point of the visit was to monitor the performance of the labour centres and other entities of the DoL. The purpose of this report is to highlight issues raised by staff, clients and observations that were made by committee members during the oversight visit and to make some recommendations.
2. Background
In July 2011, the then newly appointed Director-General (DG) of the DoL conducted provincial consultation with the DoL’s provincial offices and labour centres. The main objective of the DG’s provincial consultations was to assess the services provided by the DoL, the extent of the demand for services and the major challenges faced by the DoL in discharging its mandate and servicing its clients and to:
• Examine the unique driving economic factors for each of the provincial offices which would have direct bearing on the demand for service delivery by the DoL.
• The extent to which each of the provincial offices is ready to meet their specific economic needs: structurally, systemically and operationally.
• Generally assess the capacity of the provincial offices to implement and enforce the policies and legislation of the DoL.
• Gauge staff sentiment and be able to make an analysis of the state of health of the DoL as an organisation.
• Devise informed intervention mechanisms to the challenges faced by the DoL.
• Mobilise necessary resources to deal with these challenges by leveraging the current financial allocation of the DoL and/or requesting additional funding from the National Treasury.
Consequently, the DoL team identified some challenges that were common to most of the labour centres that were visited.
3. Objectives of the visit
The objectives of the visit were as follows:
• To ascertain challenges experienced by the provincial office in executing its mandate.
• To hear from the provincial office staff; staff in labour centres; Productivity SA Durban branch; and Commission for Conciliation, Mediation and Arbitration, about the kind of support they need from the Portfolio Committee.
• To interact with clients to determine the quality of service and treatment they receive from labour centre staff and managers.
4. Delegation
1. Portfolio Committee on Labour
The delegation comprised the following Honourable Members:
Mr ME Nchabeleng (Chairperson of the Committee and leader of the delegation (ANC)).
Mr B Manamela (ANC).
Mr E Nyekemba (ANC).
Mr FT Maserumule (ANC).
Ms H Line-Hendricks (ANC).
Mr A van der Westhuizen (DA).
Mr S Motau (DA).
Mr DA Kganare (COPE).
Mr M Mncwango (IFP).
The following support staff accompanied the delegation:
Mr ZC Sakasa, Committee Secretary.
Ms P Ntabeni, Committee Assistant.
Ms S Mkhize, Researcher.
Mr S Ngcobo, Content Adviser.
2. DoL Provincial Office
At all points of the visit, the DoL was represented by the following:
Ms T Nene-Shezi, Chief Director: Provincial Operations KZN.
Mr E Khambula, Deputy Director: Provincial Operations KZN.
3. DoL National Department
The DoL National Department/ Ministry was represented by:
Mr X Mnene and Mr D Mkono.
Day 1: Tuesday, 29 January 2013
5. Presentation by the Chief Director: Provincial Operations KZN
The Chief Director provided the general statistics of the province, including:
• KZN has the second largest population in South Africa, after Gauteng.
• About one third of the KZN population stay around Durban.
• Percentage distribution of the population by population group is: African – 86.8%, Coloured – 1.4 %, Indian – 7.4% and other – 0.3%.
• About 78% of the population speak Zulu.
• One third of the population is under 15 years.
• Migration is as follows: 180 000 outflow and 250 000 inflow.
• Only 3 million people are attending educational institutions.
• Provincial unemployment rate is 33%.
The vision of the DoL is to strive for labour market which is conducive to investment, employment creation, economic growth and decent work.
DoL provides the labour market with services and programmes which are deployed through the following Business Units:
• Public Employment Services (PES).
• Inspection and Employment Services (IES).
• Beneficiary Services: Unemployment Insurance Fund (UIF) and Compensation for Occupational Injuries and Diseases Act (COIDA).
• Labour Market Information and Statistics.
• Management Support Services: Human Resources Management (HRM) and Finance, and Office Administration.
The services offered by the Business Units are as follows:
Public Employment Services
• Services for job-seekers.
• Registration, matching and placement services.
• Careers information and guidance services.
• Referral to skills development and job opportunities.
• Referral to special employment programmes.
Employer Services
• Canvassing of vacancies and marketing of Public Employment Services business unit.
• Registration of jobs and other placement opportunities.
• Recommendation on foreign labour.
• Registration of Public Employment Agencies.
• Workplace inspections to monitor and enforce compliance with the labour laws.
• Advocacy to empower both workers and employers and to prevent labour disputes.
• Investigation of complaints (the target is to resolve 70 % of the complaints).
• Investigation of workplace incidents.
Beneficiary Services
• Process unemployment insurance claims.
• Process compensation for occupational injuries and diseases claims.
• Process maternity benefits claims.
• Process dependency allowance applications.
• Provide information and forms – Stamp forms for proof of attendance.
KZN provincial office is piloting the decentralisation of Beneficiary Services.
Labour Centre Key Functions
• Provide the full spectrum of DoL services.
• Provide advice and information on all DoL services.
• Plan, organise, lead and control utilisation of resources at labour centre level, satellite offices, visiting points, Thusong Centre and mobile labour centres.
• Data collection on all services.
6. Oversight at the Durban Labour Centre
The Committee members took a walk-about at the centre whereby it interacted with staff and clients of different business units. The following challenges were identified:
Applications Section
• Staff complained that computers were off-line most of the time.
• They also complained that the printers were not enough and sometimes had to walk to other floors to print documents.
• The air-conditioner was not in working order or could not be operated because of flooding.
• There was flooding at the ceiling, which happened about two years ago and has not been fixed.
Administration Section
• The staff told members that they did not have problems with the condition of computers, except that they did not have enough of them. The only problems that they sometimes experienced were network related.
• The challenge was that the manual system was still being used parallel to the computerised system.
• Members were informed that the centralised nature of COIDA was creating a delay in the processing of applications.
• Staff also complained about a shortage of copy machines.
• There was a complaint about the lack of managerial support from Head Office.
Interaction with organised labour
Members of the Portfolio Committee interacted with some members of organised labour. From the interaction, the following issues were raised:
• There were complaints that targets set for client service officers were unattainable given the tools of trade at their disposal.
• The challenge of the inspectors was that they were not respected by the company managers. Some of the possible factors could be that they wear poor quality uniforms. Sometimes they are issued with uniforms that do not fit properly.
• Inspectors have difficulty in obtaining warrants of arrest for non-compliance.
• They (Inspectors) also have a challenge in dealing with foreign national employers. The challenge stems from difficulty in verifying ownership of businesses. In most cases the person operating the business would deny owning it and claims to be employed by the owner who is abroad.
• There was a complaint of salary disparities among inspectors doing similar jobs but earning different salaries.
• Inspectors specialising on health and safety were perceived to be receiving preferential treatment.
• There was a complaint about incompatibility of the system that is used at the Durban Labour Centre (Lesedi) to that used in other centres.
• While Employment Services South Africa (ESSA) was recognised as a good system, the uploading of data into the system was identified as a challenge.
• The mileage requirement for the issue of subsidised vehicles was posing a challenge in view of the centre jurisdiction.
1. Presentation by the DoL in response to issues raised by Members of Parliament after the walk-about
The meeting between the Portfolio Committee Members and the DoL staff reconvened after the walk-about. The DoL reported as follows:
• It was reported that the shortage of computers was caused by floods. However, the computers were ordered and some have been received.
• Six fax machines were ordered, one for each floor. There was a problem with the supplier who submitted questionable quotes.
• Some photocopiers expired in July, August and October respectively. Head Office instructed centres to stop leasing photocopiers as there was going to be a new contract in December. It is hoped that photocopiers will be available by March 2013.
• Uniforms were ordered but came in wrong sizes.
• All inspectors with subsidised cars had their boundaries collapsed to allow them to make the kilometres required by the Department of Transport.
• Structural problems were communicated to the Department of Public Works.
• Appointments of labour inspectors were made in accordance with job profiles and salary levels were accordingly determined.
7. Oversight visit to Productivity SA (Durban)
The Committee Members were met by Mr B Coka, the Chief Executive Officer (CEO) at Productivity SA, who introduced them to his staff. Committee Members were then taken through the activities and operations of this entity.
On operations of the Productivity SA, members were informed as follows:
• Productivity SA secures clients through marketing and word of mouth.
• The entity does not deal with individual companies in rural areas. It deals with groups of companies.
• The majority of Productivity SA clients come from the manufacturing sector.
• The type of intervention in distressed companies is determined by outcome of assessment.
• Productivity SA uses service providers in turn-around solutions.
The main challenges identified related to:
• Issues regarding funding not coming on time, particularly on turn-around solutions.
• Shortages regarding staff compliment. Members were informed that Productivity SA is going through a restructuring process to address under-staffing.
• Centralisation of Information Technology (IT) system in Midrand was identified as one of the challenges to service delivery.
• Staff turn-over was high but has been reduced through closing the gap between market related salaries and those paid by Productivity SA.
Day 2: Wednesday, 30 January 2013
8. Oversight visit to Port Shepstone Labour Centre
Ms L Nongena-Sigedle, the Acting Assistant Director: Labour Centre Operations at Port Shepstone, gave the Committee a brief presentation on the operations at the centre.
The Committee Members took a walk-about at the centre whereby it interacted with staff and clients of different business units. The following challenges were identified:
• The building in which the centre is housed is in a bad state and air-conditioning which had burst recently was not yet fixed and was still leaking and, in addition, there were health and safety concerns raised regarding the wiring.
• Water and electricity was cut off at the labour office in Park Rynie, and the Department of Public Works has been informed of these defects but have not responded yet. The office has been without water for approximately two years. Members of the Committee were informed that the Park Rynie office is opened between 9 and 12. When working in Park Rynie, staff members have to use the ablution facilities in the nearby filling station. The building is in a bad state and is a health hazard. It was neglected after the municipality moved out.
• The Inspectorate is not functioning as they should because of a shortage in cars (only two available for six inspectors).
• Negligence regarding the handling of issues as forms keep getting lost.UIF compensation system is slow, taking almost two years to get a COIDA number.
• COIDA applications are processed manually.
• Staff complained about unrealistic targets for Public Employment Services. It is difficult to reach the targets because the employers are unwilling to use the services of DoL since it does not do reference checks. The unwillingness was reported to also arise as a result of DoL not using its own services, instead it advertise vacant posts in newspapers.
• Labour Inspectors complained of lack of career-pathing.
The Committee requested copies of correspondence with Public Works regarding the situation at Park Rynie and also resolved to have a look at the Park Rynie office. The provincial office was asked to compile a list of problems that they are experiencing with the Department of Public Works and forward it to the Committee Secretary.
9. Oversight visit to the Sheltered Employment Factory at Jacobs
Mr R Moodley, the Manager at the Sheltered Employment Factory in Jacobs, near Durban, welcomed the delegation and introduced the management team. Mr S Nondwangu the CEO, briefed the delegation on the operations at this particular factory which specialises in making furniture for schools among other things. The Members of the Committee were informed that the Jacobs factory has an establishment of 97 members. The salaries range between R380000 and R4400,00. Currently, the factories have contracts with the Eastern Cape Department of Basic Education and the Western Cape Department of Health to build desks and supply hospital linen. When in full operation, the factory has potential of making approximately R1 million a month.
He (CEO) argued that he would like to propose a new name for the industry viz, Protected Employment Enterprise.
The delegation took a walk-about at the factory, interacting with staff and getting first-hand experience of the activities at the factory floor.
The CEO briefed Members of the Committee on the turn-around strategy for Sheltered Employment Factories (SEF), which entails:
• Setting up of the project office.
• Marketing of SEFs.
• Lobbying for long term contracts from national and provincial departments.
• Establishment of new factories in Limpopo and Mpumalanga.
• Closing the gap between SEFs and the disability sector.
• Concluding an agreement with Productivity SA to enhance productivity of the SEFs.
The major challenge identified:
• The factory struggles in getting a buy-in from perhaps the Ministerial level for them to get major support from government departments, only the Department of Health in the Western Cape has been making offers in the form of huge orders.
Day 3: Thursday, 31 January 2013
10. Oversight visit to Pietermaritzburg Labour Centre
Ms S Zungu, Head of the labour lentre in Pietermaritzburg, welcomed the delegation and introduced her team before taking the Committee through the operations at the centre.
After a walk-about of the facility, the Committee went back to plenary and deliberated on the following challenges:
• Client Service Officers (CSO) complained that they were promised to be upgraded as some of them have been working at the same level for more than 15 years.
• There are no proper channels for career-pathing for team-leaders who also remain stuck on salary level eight for a long time.
• The Human Resource Management does not pay out incentives like performance bonuses on time.
• There is a need for satellite venues or permanent personnel posted in surrounding areas like Richmond, Underberg, Ixopo, etc., instead of sending someone from Pietermaritzburg on designated days.
• The building has structural defects which limit access in and out of the building as there are no lifts and parking for staff is also limited.
• Citrix, the IT system used has problems and when off-line, it becomes a struggle getting back on-line.
• Policy doesn’t allow for stock to be kept on location as a result the centre has to order every now and then.
• There are no telephones for Inspectors and at times they even have to share computers and cars.
• Shortage and poor quality of uniforms and shortage of name tags.
• There is a shortage of cars for inspectors (only 6 cars are available for eighteen inspectors).
• Inspectors complained of being expected to meet unrealistic targets with limited resources. They are required to conduct 22 inspections per month.
Following a walk-about the offices and meeting with staff members, the Committee noted the following:
• That there was a general perception that staff and managers have good relations.
• That the front desk or registration desk has a CCMA office. Therefore, it assists in avoiding delays in information sharing with the public and ensures that members of the public are not sent from pillar to post while trying to find the right channels to lodge complaints.
• That there is high staff turnover within the IES due to poor salaries and lack of tools of trade.
• That the centre has an up-to-standard storeroom but does not have a smoke detector.
• That the building does not have a lift, therefore inaccessible to people with disabilities.
• That there was not enough parking space for staff members.
11. Oversight visit to Estcourt Labour Centre
Mr Ntonga, the Assistant Director: Labour Operations at Estcourt, received the delegation at the labour centre. The delegation took a walk-about at the centre whereby it interacted with staff and clients of different business units. The following challenges were identified:
• Six inspectors have to cope with high targets despite a shortage of vehicles (there are 4 cars - 2 subsidised and 2 shared).
• Processing of applications for subsidised cars takes years and this is demoralising the inspectors.
• Cable theft hinders communication when inspectors have to make appointments with
farmers in the surrounding farms.
• In many cases inspectors have experienced difficulty verifying credentials of businesses, especially those owned by foreign nationals.
• There is no dedicated cleaning company for the labour centre since November 2012;
• Five inspectors are sharing one computer.
• The process of registration of companies for COIDA is slow.
• Overseeing foreign business owners is the biggest challenge for the IES. The majority of them do not comply with legislation and it is difficult to identify genuine business owners who should take responsibility when there are issues of transgression.
Day 4: Friday, 1 February 2013
12. Oversight visit to the Elinem Construction Project in Newcastle
Mr S Pillay, the Manager of the Elinem Construction Project welcomed the delegation. The construction project was established in September 2012 through a joint agreement between Unemployment Insurance Fund (UIF) and Manufacturing, Engineering and Related Services Seta (Merseta). The Elinem Project was allocated 90 learners (30 in boiler-making and 60 in Welding). 70% of learners are persons who contributed to the UIF and 30% are non-contributors. There is no age restriction for admission to the project. Learners are assured of work on completion of training.
13. Oversight visit to the CCMA offices in Newcastle
Ms N Khan, the national Director at CCMA presented to the Committee on the operations at the Newcastle office of the CCMA, which was established in 2010. Most issues referred to the office come from the Textile Manufacturing Industry and involve unfair dismissals and workplace disputes. The Chinese Chamber of Commerce have since agreed to work and cooperate with the CCMA. The Newcastle office was reported to have a settlement rate of 73%. The turn-around time for conciliation is 22 days and for arbitration 48 days.
The following KZN statistics were provided to the Members of the Committee:
• There were 340 000 referrals since 1996.
• There are approximately 20 000 new cases per year.
• Thirty thousand cases were scheduled and heard.
• Fourteen thousand cases were settled.
• There were about 50 pre-dismissal arbitrations.
• One thousand two hundred back to work agreements were concluded.
• Two thousand and fifty jobs were saved.
The following challenges were identified:
• There is a rise in unprotected strikes in the mining, farming and other sectors in the Newcastle region.
• Many employees believe they era exonerated from compliance with Labour Relations Act (LRA) procedures and this placed additional pressure on commissioner resources in dealing with unprotected strikes in Northern KZN.
• Clients have to take their enforcement orders to Durban Labour Court.
14. RECOMMENDATIONS
The Portfolio Committee on Labour recommends that the Minister of Labour consider the following:
• Realistic targets that take consideration of available tools of trade e.g. green cars, subsidised vehicles, lap tops, etc., have to be set for labour inspectors.
• Professionalism Project Plan for labour inspectors has to be put in place.
• IT services for Productivity SA should be decentralised and the funding model for Productivity SA should be put in place.
• The DoL has to liaise with the Department of Public Works to ensure that the Park Rynie office is provided with electricity and water.
• The military veterans need to be involved in the operations of the SEF as was the case with the Second World War veterans.
• The DoL should come up with a strategy for marketing the products of SEF to government departments. The DoL has to ask Productivity SA to assist the SEF to boost productivity and generate revenue.
• The Department has to fast track decentralising COIDA services.
• The Department has to address the IT challenges and ensure that the IT system that is used in KZN is aligned with the system that is used nationally.
• The post of a cleaner should be created at the Estcourt Labour Centre.
The Department of Labour should report back to the Portfolio Committee on Labour on progress made with regard to the above-mentioned recommendations within three months of the adoption of this report by the House.
Report to be considered.
THURSDAY, 18 JULY 2013
TABLINGS
National Assembly and National Council of Provinces
1. The Speaker and the Chairperson
a) Second Report of the Parliamentary Oversight Authority on “Facilities for Members of the National Assembly and Permanent Delegates to the National Council of Provinces.”
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2. The Minister of Finance
a) Annual Financial Statements of the Corporation for Public Deposits for the year ended 31 March 2013.
3. The Minister of Trade and Industry
(a) General Notice No 605, published in Government Gazette No 36556, dated 12 June 2013: Invitation to interested parties who wish to conduct the National Lottery, in terms of the Lotteries Act, 1997 (Act No 57 of 1997).
(b) General Notice No 632, published in Government Gazette No 36575, dated 21 June 2013: East London Industrial Development Zone B-BBEE Facilitation Status, in terms of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003).
(c) Government Notice No R.446, published in Government Gazette No 36593 dated 28 June 2013: Proposed amendment of the Compulsory Specification for single-capped fluorescent lamps, in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).
WEDNESDAY, 24 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Draft Bills submitted in terms of Joint Rule 159
1) Lotteries Amendment Bill, 2013, submitted by the Minister of Trade and Industry.
Referred to the Portfolio Committee on Trade and Industry and the Select Committee on Trade and International Relations.
National Assembly
The Speaker
1. Introduction of Bills
(1) The Minister of Trade and Industry
a) Lotteries Amendment Bill [B 21 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36600 of 2 July 2013.]
Introduction and referral to the Portfolio Committee on Trade and Industry of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
2) The Minister of Home Affairs
a) Electoral Amendment Bill [B 22 – 2013] (National Assembly – proposed sec 76) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36626 of 1 July 2013.]
Introduction and referral to the Portfolio Committee on Home Affairs of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Justice and Constitutional Development
a) Government Notice No R. 381, published in Government Gazette No 36515, dated 7 June 2013: Regulations Relating to Debt Collectors, 2003: Amendment, in terms of the Debt Collectors Act, 1998 (Act No 114 of 1998).
2. The Minister of Public Enterprises
a) Report and Financial Statements of Transnet SOC Ltd (Volumes 1 and 2) for 2012-2013, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-2013.
b) Sustainability Report of Transnet SOC Ltd for 2013 (Volume 3).
3. The Minister of Trade and Industry
a) General Notice No 690, published in Government Gazette No 36614, dated 5 July 2013: Final prohibition on the use of the South African Music Awards Logo, in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
THURSDAY, 25 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bills
(1) Appropriation Bill [B 1 – 2013] – Act No 9 of 2013 (assented to and signed by President on 7 July 2013).
2) National Environmental Management Laws First Amendment Bill [B 13D – 2012] – Act No 14 of 2013 (assented to and signed by President on 24 July 2013, as National Environmental Management Laws Amendment Act).
3) Criminal Procedure Amendment Bill [B 26B – 2012] – Act No 8 of 2013 (assented to and signed by President on 7 July 2013).
4) Dangerous Weapons Bill [B 37B – 2012] – Act No 15 of 2013 (assented to and signed by President on 24 July 2013).
5) National Health Amendment Bill [B 24F – 2011] – Act No 12 of 2013 (assented to and signed by President on 24 July 2013).
6) General Intelligence Laws Amendment Bill [B 25B – 2011] – Act No 11 of 2013 (assented to and signed by President on 19 July 2013).
2. Draft Bills submitted in terms of Joint Rule 159
1) South African Weather Service Amendment Bill, 2013, submitted by the Minister of Water and Environmental Affairs.
Referred to the Portfolio Committee on Water and Environmental Affairs and the Select Committee on Land and Environmental Affairs.
2) South African Post Office Soc Ltd Amendment Bill, 2013, submitted by the Minister of Communications.
Referred to the Portfolio Committee on Communications and the Select Committee on Labour and Public Enterprises.
3) South African Postbank Limited Amendment Bill, 2013, submitted by the Minister of Communications.
Referred to the Portfolio Committee on Communications and the Select Committee on Labour and Public Enterprises.
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Water and Environmental Affairs
a) South African Weather Service Amendment Bill [B 23 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36559 of 14 June 2013.]
Introduction and referral to the Portfolio Committee on Water and Environmental Affairs of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Trade and Industry
a) General Notice No 678, published in Government Gazette No 36600, dated 2 July 2013: Intention to introduce the Lotteries Amendment Bill, 2013 into Parliament.
(b) General Notice No 722, published in Government Gazette No 36637, dated 12 July 2013: Proposed prohibition on the use of certain words in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
MONDAY, 29 JULY 2013
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Finance
(a) Report and Financial Statements of the South African Reserve Bank for 2012-2013, including the Report of the Independent Auditors on the Financial Statements for 2012-2013.
2. The Minister of Water and Environmental Affairs
(a) Government Notice No 341, published in Government Gazette No 36432, dated 10 May 2013: National Estaurine Management Protocol, in terms of the National Environmental Management Integrated Coastal Management Act, 2008 (Act No 24 of 2008).
(b) General Notice No 433, published in Government Gazette No 36411, dated 26 April 2013: Biodiversity Management Plan for Pelargonium Sidoides in South Africa 2011-2020, in terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).
(c) General Notice No 437, published in Government Gazette No 36418, dated 3 May 2013: Intention to proclaim the Vredefort Dome World Heritage Site in terms of the Act, World Heritage Convention Act, 1999 (Act No 49 of 199).
(d) General Notice No 467, published in Government Gazette No 36447, dated 10 May 2013: National norms and standards for the remediation of contaminated land and soil quality in the Republic of South Africa for public comments, in terms of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008).
(e) General Notice No 607, published in Government Gazette No 36559, dated 14 June 2013: Explanatory Summary of the South African Weather Service Amendment Bill, 2013.
f) Government Notice No R. 422, published in Government Gazette No 36572, dated 21 June 2013: Regulations for the Management of the Prince Edward Islands Marine Protected Area, in terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).
g) General Notice No 638, published in Government Gazette No 36585, dated 21 June 2013: Intention to establish accreditation standards for a panel of environmental mediators, in terms of the National Environmental Management Act, 1998 (Act No 107 of 1998).
h) Government Notice No 427, published in Government Gazette No 36575, dated 21 June 2013: Withdrawal Notice in terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).
i) The Benguela Current Convention on Environmental Protection and Conservation of the Benguela Current Large Marine Ecosystem between the Government of the Republic of Angola, the Government of the Republic of Namibia and of the Government of the Republic of South of Africa, tabled in terms of Section 231(2) of the Constitution, 1996.
j) Explanatory Memorandum on the Benguela Current Convention on Environmental Protection and Conservation of the Benguela Current Large Marine Ecosystem between the Government of the Republic of Angola, the Government of the Republic of Namibia and of the Government of the Republic of South of Africa
COMMITTEE REPORTS
National Assembly
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2. REPORT OF THE PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL AFFAIRS: CONSIDERATION OF THE 2013-2014 STRATEGIC PLANS, ANNUAL PERFORMANCE PLANS AND BUDGET ALLOCATION OF THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND ITS ENTITIES, NAMELY ISIMANGALISO WETLAND PARK AUTHORITY, THE SOUTH AFRICAN NATIONAL BOTANICAL INSTITUTE, THE SOUTH AFRICAN NATIONAL PARKS AND THE SOUTH AFRICAN WEATHER SERVICES; AND, THE FINDINGS OF THE AUDITOR GENERAL REGARDING THE INTERIM AUDIT CONDUCTED ON THE FINANCIAL STATEMENTS FOR 2012-2013 AND THE USE OF CONSULTANTS DURING THE PERIOD 2006 – 2009 BY THE DEPARTMENT OF ENVIRONMENTAL AFFAIRS, DATED 15 MAY 2013.
1. Background
The Portfolio Committee on Water and Environmental Affairs (the Portfolio Committee) having considered the request of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans (APPs) and budget allocations of the Department of Environmental Affairs (the Department) and its entities (the entities), tabled by the Minister of Water and Environmental Affairs (the Minister), and in terms of the Public Finance Management Act of 1999 (PFMA), reports as follows:
2. Introduction
The Portfolio Committee has over a period of three (3) months, in detail, considered the revised Strategic Plans for the period 2013 to 2017 and the Annual Performance Plans for the 2013-2014 financial year of the Department and the four entities of the Department, namely Isimangaliso Wetland Park Authority (Isimangaliso), the South African National Biodiversity Institute (SANBI), South African National Parks (SANPARKS) and the South African Weather Services (SAWS).
The Portfolio Committee has further also considered the adequacy of financial resources for the implementation of these plans and interrogated the allocation received by the Department and its entities from the National Treasury (Treasury), the trends over the Medium Term Expenditure Framework (MTEF) both in terms of allocations and expenditure and, in the instance of the entities, in term of revenue collected. This interrogation has been done in preparation of the Annual Budget Vote of the Department.
As part of this three (3) month process, the Portfolio Committee also engaged the Office of the Auditor General (the OAG) on the findings of the interim audit done of the Department on the mid-year results for the 2012-2013 financial year and on the findings of the use of the consultants by the Department during the period 2006 - 2009.
This report details the findings and recommendations of the Portfolio Committee after engaging the Department, the Entities, Treasury and the OAG on the above matters.
3. Strategic Plans and Annual Performance Plans of the Department and the Entities
3.1 Preliminary consideration of Plans
On 19 February 2013, the Portfolio Committee engaged the Director General, Chief Operations Officer (COO), Chief Financial Officer (CFO) and relevant Executive Managers of the Department, as well as the Chief Executive Officers (CEO) and CFOs of the Entities on the draft Strategic Plans and APPs (December 2012 drafts submitted to the Treasury). The purpose of this interaction was four fold, namely:
• To gain an understanding of how performance indicators and targets are arrived at and how progress against these targets are tracked and reported on;
• To foster an integrated approach in planning, monitoring of progress and reporting against such progress between the Department and the Entities, whilst giving full effect to the prescripts in terms of roles and responsibilities of the Accounting Officer (Director General of the Department) and the Accounting Authorities (Boards) of the Entities related to those of the Department and the mandate of the Portfolio Committee;
• To contribute to improvement of the draft plans prior to it being tabled in Parliament by interrogating indicators, targets and current performance against these (where applicable); and
• To gain an understanding of the instruments and systems utilised by the Department to exercise governance oversight of the Entities.
The presentations made by the Department and Entities focused on the approach followed in the development of indicators and targets; the draft indicators and targets; as well as a first attempt to integrate the relevant indicators and targets of the Entities with that of the Department.
The Portfolio Committee noted the critical factors informing the setting of indicators and targets, as presented, especially the constitutional imperatives and legislative mandates; the Medium Term Strategic Framework of Government, National Development Plan 2030; the 2014 Outcome 10 Delivery Agreement; Obligations and commitments stemming from Multilateral Environmental Agreements and other International instruments such as the Millennium Development Declaration; Obligations and priorities stemming from the 2013 State of the Nation Address; and the interventions required based on the various “state of...” reports periodically produced by the Department.
The methodology used in the development and format of the Strategic Plan and APP used, was informed by the Treasury Prescripts, Guidelines and Frameworks; the Balance Score Card approach to tracking and reporting on progress against indicators and targets quarterly and annually; as well as the governance protocol and oversight system in place between the Department and the Entities.
3.2 Recommendations
In response to the above input by the Department, the Portfolio Committee recommended the following:
• That, whilst the reason for separate and independent Strategic and APPs and reports of the Department and Entities are understood within the context of the different prescripts and accounting mechanisms applicable and whilst these must continue to be respected in terms of the official Plans and Reports tabled in Parliament, an Integrated Balance Score Card system should be developed for the Department and the Entities, to adequately reflect the contributions and overall impact on shared Indicators and targets;
• Where applicable and especially in terms of “impact” indicators, historic status and long term targets/ windows, as well as progress towards such targets should be included in the Strategic Plan and preferably be communicated in a graphic or diagrammatic manner. Such graphs or diagrams should, at least, contain the following:
• The source of the target (for example, the Millennium Development Declaration);
• The date on which the target was introduced;
• The baseline performance at the time the target was introduced;
• The due date for the target;
• The current performance against the target;
• The likelihood of achieving the target; and
• Any applicable intervention scenarios and its potential outcomes in relation to the target.
• That the following targets and indicators in the draft plans be amended:
• Department’s Annual Performance Plan
▪ Programme 1: Refinement of the indicator and target related to the response to public and parliamentary questions and queries, by separating public queries from questions and information requests of Parliament into separate targets and by increasing the percentage of compliance to time frames for the latter to be 100 per cent as opposed to the 95 per cent indicated;
▪ Programme 2: Refinement of the indicator and target relation to the percentage of Environmental Impact Assessment applications processed within time frames to have a staggered percentage target linked to the number of applications received; and
▪ Programme 7: Amendment of the target set for the reduction of waste going to landfill to be specific instead of “measurable decrease” and by adding a baseline from where such decrease will be measured.
• SANParks Annual Performance Plan
▪ Alignment of indicator descriptions with that used in the DEA APP, especially in terms of the Expanded Public Works Programme.
• SANBI, SAWS and Isimangaliso Annual Performance Plan
▪ No amendments considered necessary.
The Department resolved to support the inclusion of the presented indicators and targets in the Strategic Plans and APPs of the Department and the Entities, which was to be tabled in Parliament, on 13 March 2013, subject to the recommended refinements and amendments as stipulated above.
4. Consideration of tabled Strategic Plans, Annual Performance Plans and budgets – an integrated approach for the Department and the Entities
4.1 Compliance by DEA and the Entities to prescripts around Strategic and Annual Performance Plans
The Portfolio Committee noted with appreciation that the Strategic Plans and APPs of both the Department and all four Entities were tabled in Parliament in full compliance with the relevant prescripts and by the stipulated date of 13 March 2013.
4.2 Approach of the Portfolio Committee in consideration of the Strategic Plans and Annual Performance Plans
On 13, 19 and 20 March 2013, the Portfolio Committee considered the tabled Strategic Plans, APPs and Budget Allocations for 2013-2014 and the preliminary financial performance forecasted for 2012-2013, as well as the findings of the OAG, as contained in the interim audit done on the Department. The presentations and documents that form the basis of the deliberations of the Portfolio Committee were considered together with the tabled Plans.
In terms of the key performance indicators and targets contained in the Plans, the Portfolio Committee perused the tabled plans and discussions focused on changes that were effected subsequent to the engagement on 19 February 2013, as well as key strategic priorities relevant to the programmes of the Department and that of the Entities.
Whilst the Portfolio Committee appreciated the effected changes to the Department’s revised Strategic Plan, the Portfolio Committee, in undertaking an analysis on the revised performance indicators and targets, argued that these are still narrowly conceptualised within the compliance framework determined by the PFMA and Treasury Regulations. The Portfolio Committee noted further that while the PFMA and various regulations (issued in terms of this Act) requires some degree of integration of strategic and operational plans with budgets, little is said on how this should be done in practice. Whilst this may create short-term uncertainty and lack of prescription, the Portfolio Committee argued, this also creates a long-term opportunity for unleashing the Department’s creativity in crafting indicators and targets, which speak to its own individual operating context.
The Portfolio Committee noted the difficulty in assessing the overarching picture when a strategic plan was narrowly conceptualised within the required prescripts. A comparison was made with the creativity of the Department of Water Affairs, which had used a creative approach in the form of highlighting the most important indicators with the use of a dashboard approach. This provided a concise overview of the activities of the Department of Water Affairs over the medium term, as well as making it easy to track the progress of each target relative to its concomitant indicator. Furthermore, the Department of Water Affairs also allowed for a tracking, as well as monitoring and evaluation mechanism, on specific indicators and targets, which could indicate the efficacy of each of its programmes. The Portfolio Committee requested the Department to follow the model (dashboard approach) utilised by the Department of Water Affairs in drafting indicators and targets for its strategic plan in future years.
4.3 Processes of planning followed by the Department toward its strategic plan
The environmental planning assessments encompass areas such as land use, socio-economic activity, transportation, economic and housing characteristics, air pollution, noise pollution, the wetlands, habitat of endangered species, flood zones susceptibility, coastal zones erosion and visual studies, amongst others, and is referred to as an integrated environmental planning assessment. It is the ability to analyse environmental issues that will facilitate critical decision-making.
The public policy planning for the environmental sector in South Africa is predominantly undertaken by the Department within a cooperative governance framework, as well as assistance provided by the entities to facilitate aspects of the work of the Department. Within its planning process of its strategic plan, the Department identified three priority goals that it seeks to achieve during the 2012/13 to 2017/18 period. In this regard, the Department seeks to ensure that:
• Environmental assets are conserved, valued, sustainably used, protected and continually enhanced;
• Enhanced socio-economic benefits and employment are created from a healthy environment; and
• There is capacity to deliver services efficiently and effectively within its mandate.
The translation of these goals to attaining optimal outcomes requires a structured approach at all levels of an organisation. The structure used by the Department culminated in devising seven programmes (Administration; Legal, Authorisation and Compliance; Oceans and Coasts; Climate Change and Air Quality Management; Biodiversity Conservation; Environmental Programmes; and Chemicals and Waste Management) with relevant performance indicators and targets, which are carefully crafted to attain the three priority goals (highlighted above).
In South Africa, environmental planning requires the Department to deal with a full range of stakeholders within the three spheres of government, as well as mandating entities to undertake certain functions in the environmental sector on its behalf. The entities partnering and supporting the Department to successfully attain its goals and priorities are SANBI, iSimangaliso, SAWS and SANParks.
To further translate these goals over the medium-term, the Department, with the entities, have prioritised the following:
• Building of local government delivery capacity in accordance with their constitutional competencies, through support in the areas of air quality management, waste and chemicals management, biodiversity management, coastal planning and open space planning;
• Strengthening compliance and enforcement institutions, systems and activities;
• Enhancing synergies between climate change, the green economy and sustainable development at national and international levels; and
• Aligning governance systems with the outcomes approach.
4. Expenditure trends of Budget Vote 30 for the 2012/2013 financial year and medium term budget projections
The hearings of the 13th, 19th and 20th of March 2013, were supplemented by the expenditure trends of Budget Vote 30 for the 2012/2013 financial year, medium term budget projections, as well as further issue based engagements with the Department and the Entities, between 12 February 2013 and 15 May 2013, as follows:
1. Projected Expenditure and Revenue for the 2012-2013 financial year
The Portfolio Committee noted that the Department projected a total expenditure of 95 per cent. It further noted that the underspending is mostly due to the slow expenditure of the Green Fund, where, whilst all funds have been committed to projects that have been approved by the Green Fund Mancom, disbursements have been slow during the initial months of the year and only approximately R90 Million of the allocated R300 Million in the financial year will be utilised. This slow disbursement was mostly due to the establishment of the fund and finalisation of all institutional and governance instruments for responsible disbursements. This under-expenditure will be declared to Treasury and a rollover requested in terms of the prescribed Treasury procedures.
Another area of under-expenditure noted is on the unitary payment allocation of R60 Million associated with the PPP for the new building, where, due to the revised financial model and late conclusion of the PPP agreement, payments were not due though allocated. This will be declared to Treasury and a rollover requested in order to procure the IT infrastructure required for the new building, as the requested funds for this was not allocated.
The information provided on the use of consultants (a substantial reduction in expenditure on Consultants during the past financial year), the approach to the use of consultants and the system improvements effected to address the shortcoming identified by the OAG in the performance audit conducted on the use of consultants, during the period 2006 – 2009, is encouraging. The Portfolio Committee is of the view that the Department has sufficiently tightened its management of the use of consultants and the performance of consultants. The Portfolio Committee will, however, continue to monitor the use and management of consultants by the Department.
The Portfolio Committee further noted the substantial shortfall (R150 Million approximately) in terms of budget against the expenditure of the Oceans and Coast Branch. It noted that this was largely due to the VAT that had to be paid on the Agulhus II; the costs associated with the Algoa that was transferred to the Department without any budget allocation; the overlap of one month’s costs (including management fees) of operating both the Agulhus I and Agulhus II; and other costs associated with the research programmes of the Oceans and Coasts Branch. The Portfolio Committee further noted the Department’s intention to fund this shortfall from allowable virements within the Department’s budget.
The Portfolio Committee noted that SANParks projected over-expenditure of approximately R25 million attributable to the forest management function that was transferred from the Department of Agriculture, Forestry and Fisheries (DAFF) without any budget. It is further of concern that the current legal challenges against SANParks by some municipalities regarding municipal taxes, if successful, could pose a substantial financial burden for SANParks.
Lastly, the Portfolio Committee noted that due to aviation tariffs due to SAWS by insolvent airlines, its revenue collection has been less than what was projected in its budget.
2. Auditor General’s Report on interim audit (2012-2013)
The Portfolio Committee noted the presentation made by the representative of the OAG and the indication given that the Department and the Entities have responded positively to correct the areas of concern identified in the dashboard reports provided to them. The area of concern raised by the OAG in terms of non-compliance by the Department and SANBI on the submission and publication on the website of technical descriptors to performance indicators has been raised with the Department and SANBI, and the matter has subsequently been resolved. The Portfolio Committee also noted with appreciation the Department’s report on its readiness for closing of the 2012-13 financial year and the audit process.
3. The Budget Allocation by Treasury to the Department and its Entities for 2013-2014 and over the Medium term Expenditure Framework
The Portfolio Committee noted and appreciated that the budget allocations made by Treasury must be seen in the context of a very tight fiscal environment. The Portfolio Committee noted the budget guidelines issued to the Department and the entities and the emphasis by Treasury that there is no additional funding available and that additional funding requirements would need to be resourced through reprioritisation within departmental allocations or by sourcing such funds from Departments that do not perform optimally. It was further noted that the Treasury’s guidance in terms of requests for additional funds stipulated that such requests could only be favourably considered where it would result in stimulation of the economy and where it is associated with the infrastructure development priorities of government.
5.3.1 Medium term projections for Budget Vote 30: Department of Environmental Affairs
The spending focus over the medium term will be on improving service delivery and creating jobs in the environmental sector. The bulk of the budget will be spent on the expanded public works projects within the Environmental Programmes to create 113 748 full time equivalent jobs and 219 089 work opportunities. Expenditure in the Environmental Programmes grew significantly between 2009/10 and 2012/13 due to the rollout of the expanded public works programme, which also accounted for the significant increase in transfers and subsidies over this period. The programme created 54 301 full time equivalent jobs and 172 979 work opportunities between 2009/10 and 2012/13. Over the same period, the significant increase in expenditure on the Administration programme was due to the expanded mandate of the Environmental Advisory Services subprogramme, which manages and facilitates the Department’s international relations, engagements and cooperation agreements, and the infrastructure development programme.
Table 1 below provides expenditure estimates for the Department of Environmental Affairs over the medium term
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The increased expenditure projected over the medium term in the Legal, Authorisations and Compliance and Chemicals and Waste Management programmes is due to the development and implementation of instruments to improve the efficiency and effectiveness of the environmental impact management system across the country, and capacitating the two new programmes. Spending on transfers and subsidies to departmental agencies and accounts is projected to increase significantly over this period due mainly to an additional allocation of R1.2 billion received from the economic competitiveness and support package. Other increases over the medium term relate to agency and support services, such as wildlife security, administration and added support personnel for the Department’s new focus areas.
The 2013 Budget sets out the following additional allocations over the medium term:
• R344 million for the increased costs of research and conservation in the Oceans and Coasts programme; and the operation and staffing of the SA Agulhas II and the Algoa research vessels;
• R20 million to upgrade research laboratories to make them compliant with occupational health and safety regulations;
• R90.5 million in 2014/15 for the expanded public works programme, for incentives to increase the labour component of the programme from the current 30 per cent target to 40 per cent over the medium term;
• R300 million in 2015/16 for the Green Fund to fund projects that support environmental protection;
• R167.3 million for improved conditions of service for the Department and the entities;
• R98 million for pre-assessment of projects, and the development of an integrated permitting system to support the implementation of the infrastructure building programme, as identified in the new growth path; and
• R75 million for the SANParks to combat rhino poaching.
The Cabinet approved budget reductions of R52 million in 2013/14, R102 million in 2014/15 and R161 million in 2015/16 have been effected across all programmes.
The Department had a funded establishment of 1 483 posts and 202 posts were filled additional to the establishment. There are 109 vacancies, mostly as a result of natural attrition and the lack of adequate skills within the environmental sector. Personnel numbers are expected to increase to 1 685 in 2015/16 in order to better capacitate the Department.
The Department mainly uses consultants to provide audit services and assist with infrastructure planning and studies on climate change, as well as for the biodiversity, marine and environmental sector programmes.
5.3.1.1 Infrastructure spending
The Department entered into a public-private-partnership project to build a new departmental building. An additional government contribution of R220 million was made in 2012/13 and R146 million has been provided in 2013/14 in order to decrease the annual unitary payments payable for 25 years after completion of the project.
Construction of the building began in July 2012 and is expected to be completed by June 2014. Additional infrastructure spending over the MTEF period includes R20 million for the Oceans and Coasts programme laboratory infrastructure to ensure occupational health and safety compliance; R150 million to SANBI to upgrade the Kirstenbosch National Botanical Garden education centre, facilities and equipment; R70 million to upgrade equipment, facilities and infrastructure at iSimangaliso; R390 million to upgrade roads, equipment and infrastructure at SANParks; and R50 million for high performance computers for SAWS.
5.3.1.2 Cut to the Department’s Baseline Allocation
The Department provided a submission made to Treasury for additional funding for selected unfunded or insufficiently funded priorities and the allocations received from Treasury, including a cut to the baseline allocation of the Department, over the MTEF period. The Portfolio Committee noted with concern the cuts effected over the MTEF to the Department’s baseline allocation in spite of the Department’s motivated submission to Treasury on the consequences to delivery of such cuts and the measures already taken over the past three years to reprioritise the budget and meet the capacity requirements to deliver against its regulatory mandates. The Portfolio Committee noted with appreciation that the Department did not introduce any cuts to its transfer payments to the Entities.
3. Outcome of the requests to Treasury for additional funding in priority areas of work through the Medium Term Expenditure Framework process and the consequences of the outcomes of such requests
The presentation by the Department and the supporting information submitted to the Portfolio Committee indicated that the Department and the Entities approached Treasury for funds additional to the baseline allocation for Strategic Infrastructure Projects and the Environmental Regulation thereof; Science based priorities; and Job creation.
The combined request to Treasury for additional funds for projects and programmes falling within the above prioritised funding areas from the Department and the entities totalled R1 364 billion. The allocation received from Treasury totals R307 million.
The Portfolio Committee welcomed the additional funding received in terms of Infrastructure development programmes of the Department and the Entities and the efficient environmental regulation of the Strategic Integrated Projects of the Presidential Infrastructure Coordinating Commission (PICC). The additional, although insufficient, funds allocated to the fight against environmental crime, in particular Rhino Poaching, are also welcomed.
The Portfolio Committee is, however, extremely concerned about the inadequacy of allocations in general, the impacts of the cut to the baseline of the Department and the fact that requests for additional funding were not granted in terms of areas of work that is substantially under-resourced, such as the Oceans Research programme and areas where the ability of the country to meet our international obligations and constitutional obligations to South African citizens are being compromised due to insufficient resources. The unsuccessful requests for additional funds, in the following areas, are of particular concern to the Portfolio Committee:
• Expansion of the Conservation Estate, where over the MTEF Cycle, no funds have been allocated against the motivated R225 million;
• Waste Services Infrastructure, where over the MTEF Cycle, no funds have been allocated against the motivated R225 million;
• Oceans Research programme, where especially in the first year of the MTEF cycle, resourcing is inadequate – of the R182 million requested (and motivated, based on commitments and actual costs associated with the existing programmes) only R75 million was allocated – the increased allocations from 2014-2015 are however acknowledged;
• Regulatory, monitoring and enforcement systems, as well as building the capacity of provinces in this regard, in terms of biodiversity management, especially the wildlife crime information unit, where no funds have been allocated against the motivated R343 million;
• Implementation of the climate change response strategy, where no funds have been allocated against a request of R164 700 million over the MTEF allocation. The Portfolio Committee is especially concerned over this as it learnt that this programme is currently substantially funded through donor support. The Portfolio Committee finds this approach unsustainable in respect of such a matter which is of such a high priority to the country;
• The working on waste programme, where no funds have been allocated against the motivated need of approximately R930 million. The Portfolio Committee is especially concerned about this in light of the high profile of poor waste management and waste services, in especially impoverished areas;
• The People and Parks programme, which focuses on the development of infrastructure in protected areas through community entrepreneurs and thereby addressing both employment creation and the increased ability of protected areas to generate income through tourism activities – no funds of the R550 million requested have been provided over the MTEF cycle; and lastly
• In terms of the fight against rhino poaching, only R75 million of the approximately R250 million needed was allocated.
The consequences of insufficient resources for these programmes include, inter alia:
• The inability of the Department and the Country to meet its international obligations and commitments in terms of, inter alia, the United Nations Framework Convention on Climate Change (reduction of green house gas emissions in accordance with the peak, plateau and decline trajectory, as well as facilitating transitioning to a low carbon, climate resilient economy); and the United Nations Convention on Biodiversity (percentage of land under formal protection - in order to realise the agreed 17 per cent of land under protection by 2020 from the current baseline of only 7.7 per cent - the expansion of the conservation estate is essential, whilst land for this purpose has been identified in line with the National Biodiversity Framework, no funds have been allocated to acquire the land needed);
• The inability to implement an integrated and multipronged strategy to arrest the surge in Rhino Poaching and the inability to reverse an increasing trend of wildlife crime in spite of crime prevention being a key priority of government’s (enforcement strategy);
• The inability to implement programmes and interventions that would, whilst addressing the poor state of waste management services in the majority of municipalities, also create employment for especially youth; and
• The inability to optimally utilise the state of the art research vessels and deployment of South African innovation in terms of research equipment that would increase our understanding of the ocean, the opportunities it offers for the economy and the role it plays in climate change.
5. An overview of the strategic objectives and spending focus of the programmes of the Department and the entities over the medium term
Policy developments, legislation and other factors affecting expenditure within the new national budget format – the Estimates of National Expenditure - expand the scope and quality of information on government’s spending plans. Details of measurable objectives, outputs, output performance measures or service delivery indicators are provided as another step forward to setting ‘measurable objectives’ for each expenditure programme, in line with the PFMA.
Integrating service delivery and performance information into planning and budgeting processing contributes to better budgeting and enhanced service delivery. Monitoring and measuring service delivery and performance may be viewed as a process of assessing progress towards achieving predetermined goals. The process may be used as a tool for self-assessment, goal-setting, monitoring of progress and to facilitate communication of objectives and service delivery targets and progress. The sections that follow will provide an overview of the strategic objectives and spending focus of the programmes underpinning the work of the Department and the entities.
1. Overview of strategic objectives and spending focus of the programmes
6.1.1 Departmental Programme 1 (Administration, International Relations, Information Management and Integrated Environmental Management) related to:
• Engagement with the OAG and the Department on the Performance Audit conducted on the use of consultants (12 March 2013);
• Engagement with the Department on their analysis of and response to the National Development Plan 2030 (13 March 2013);
• Whilst not specifically targeted in the budget hearings and related processes, the achievements of and challenges associated with the Environmental Impact Assessment regime, is a priority area for the Portfolio Committee and public hearings in this regard have been scheduled for the third parliamentary term of 2013;
• The integrated environmental management approach to mining is an additional area of priority of the Portfolio Committee and briefings by the Department with regard to the approach to off-shore mining, coastal mining and the inland mining of sand will be scheduled for the 3rd or 4th Parliamentary term of 2103; and
• The critical importance of the 2012 South African Environmental Outlook Report (incorporating the State of the Environment) in policy making would also require further engagement with the Department and will be scheduled post the publication of the Report towards the middle of 2013.
The spending focus over the medium term for the Administration programme will be on providing for office accommodation for the Department and maintaining the required personnel to provide corporate and other support services. Over the medium term, expenditure in the Environmental Advisory Services subprogramme is expected to increase to capacitate this unit, which was created during the departmental restructuring process in 2012/13.
2. Departmental Programme 2 (Legislation, Authorisations, Compliance and Enforcement) related to:
• Engagement with the Department on its legislative programme (NEMLA Bill, ICMA Bill) (on 12, 13 February 2013);
• Engagement with the Department on legislative programmes of other portfolios impacting on the Department (Infrastructure Development Bill, Mineral and Petroleum Resources Development Bill, Spatial Planning and Land Use Management Bill) (on 13 February 2013); and
• Engagement with the Department on its approach and systems in compliance with the Promotion of Access to Information Act (PAIA) and Promotion of Administrative Justice Act (PAJA) (of 13 March 2013).
The strategic objectives of the Legal, Authorisation and Compliance programme are to:
• Improve the level of compliance with environmental legislation by increasing the number of inspections of facilities in environmentally sensitive areas from 85 in 2012/13 to 115 in 2015/16; increasing the percentage of administrative enforcement actions resulting in compliance from 67 per cent in 2012/13 to 80 per cent in 2015/16; and increasing the number of criminal investigations finalised per year and dockets handed over for prosecution from 17 in 2012/13 to 37 in 2015/16.
• Ensure that the possible negative impacts of development activities and patterns are minimised, mitigated or managed by increasing the percentage of environmental impact assessment decisions processed within prescribed time frames from 60 per cent in 2012/13 to 67 per cent in 2015/16; and to increase the number of progress reports that include potential risks on strategic infrastructure projects and associated developments submitted per year from 4 in 2013/14 to 8 in 2015/16.
• Improve the quality and timely legal support rendered to the Department in accordance with service level standards, protocols and applicable legislation, by increasing the percentage of litigation matters dealt with from 90 per cent in 2012/13 to 95 per cent in 2015/16.
The spending focus over the medium term will be on enhancing compliance and enforcement efforts to increase the private sector’s/industry’s voluntary compliance with environmental legislation, which is reflected in the increased expenditure on the Integrated Environmental Authorisations subprogramme.
3. Departmental Programme 3 (Oceans and Coasts) related to:
• Engagement with the Department on disputed jurisdiction between the Department and DAFF on Marine Protected Areas, Boat Based Whale Watching and Shark Cage Diving (12 February 2013); and
• Engagement with the Department on the Green Paper on Ocean Management (12 February 2013).
The strategic objectives of the Oceans and Coasts programme are to ensure effective management of the ocean and coastal environment by gaining approval for the Ocean Management White Paper by 2013/14 and promulgating the draft legislation by 2015/16; ensuring response preparedness for oil spills along the South African coast through the review of 14 of the 25 oil pollution response plans by 2015/16; and launching the national coastal management programme to enable management of the entire coastline, including planning and conservation of the coast, by 2014/15. Other strategic goals under this programme are to:
• Strengthen the national science programme for integrated ocean and coastal management by conducting research annually to determine baseline information for biodiversity species and priority habitats within South Africa’s exclusive economic zone and associated large marine ecosystems; increasing the number of surveys of representative or priority habitats every year from 2 in 2012/13 to 8 in 2015/16; and supporting biodiversity and assessing marine protected areas through the cataloguing of new or unknown species, with emphasis on benthic invertebrate species, on an ongoing basis.
• Improve the conservation status of marine top predator populations, especially seals and the 12 million South African seabird species, by monitoring and researching their behaviour for baseline information annually; and providing appropriate management advice based on population numbers as required.
• Implement a functional coastal and ocean observation and monitoring network for the establishment of a climate and early warning system by increasing the number of observational platforms deployed from 3 in 2012/13 to 6 in 2014/15; and using the information gathered by the observational platforms to provide a basis for the annually compiled State of the Ocean report.
The spending focus over the medium term will be on developing a policy and regulatory framework to guide the sustainable development, conservation and management of ocean environmental resources, and on developing an ocean environmental management strategy and regime. Spending is thus expected to increase on agency, support and outsourced services to operate and manage the SA Agulhas II and Algoa research vessels. The programme also receives R20 million over the MTEF period for the upgrading of its research laboratories in order to comply with the occupational health and safety regulations.
4. Departmental Programme 4 (Climate Change and Air Quality Management) related to:
• Engagement with the Department on the Outcomes of UNFCCC COP 18 (20 February 2013);
• Public hearings on regulations and notices relevant to the National Environmental Management Air Quality Act (8 May 2013); and
• Future engagement with the Department on the legal framework, approach to and systems in place to monitor air pollution and the quality of air (11 June 2013).
The strategic objectives of the Climate Change and Air Quality Management programme are to:
• Ensure an effective response to climate change impacts by building adaptive capacity, socio-economic resilience and emergency response capacity by 2015/16; and completing Phase 1 of the development of the national integrated climate change adaptation strategy for South Africa by 2015/16.
• Contribute to the global effort to stabilise greenhouse gas concentrations in the atmosphere by making recommendations on aligning a climate change sectoral policies and plans by 2015/15; and finalising three (3) sector mitigation plans by 2015/16.
• Enable South Africa to meet its national and international obligations by developing a national monitoring and evaluation system for climate change by 2015/16.
• Ensure the continuous improvement of ambient air quality throughout the country by implementing air quality management plans in priority area hotspots and providing legislative support and leadership to other spheres performing air quality management functions over the medium term period.
• Reduce the national air quality indicator from 1.150 in 2011/12 to 1.130 in 2015/16 through the national implementation of the regulatory framework of the Air Quality Act of 2004 over the medium term; and growing and maintaining the number of monitoring stations in the country that report to the South African air quality information system from 60 in 2011/12 to 80 in 2015/16.
The spending focus over the medium term will be on air quality management and providing for the country’s ability to more accurately predict significant changes in weather patterns. Over the medium term, expenditure is expected to increase due to the transfer of the SAWS from the previous programme 2 to this programme, and an additional allocation of R50 million for high performance computers to improve the accuracy of weather forecasting. The relocation of the South African Weather Service to this programme also accounts for the projected increase in expenditure on transfers to departmental agencies and accounts for the medium term.
5. Departmental Programme 5 (Biodiversity & Conservation) related to:
• Engagements with the Department, SANParks, SANBI and Isimangaliso during the budget hearings on 19 and 20 March 2013 focusing on the Conservation mandate and priorities in this regard; Biodiversity mandate and priorities rd; CITES; Hunting Indaba; Rhino Issue Manager’s Report; and subsequent engagements with the Department, SANParks and Isimangaliso on Transfrontier Conservation Areas (5 June 2013).
The strategic objectives of the Biodiversity and Conservation programme are to:
• Improve conservation and biodiversity through the safeguarding of ecosystems, species, genetic diversity and the minimising of threats to ecological sustainability, by increasing the percentage of land under conservation from 7.7 per cent in 2012/13 to 8.5 per cent in 2015/16.
• Ensure the sustainability of ecosystems by regulating and promoting the use of biological resources, species and genes, by implementing 1 new sustainable natural resource based project per year over the MTEF period.
• Promote and enhance livelihoods through access to, and fair and equitable sharing of benefits arising from the use of biological resources, by developing a draft system for transformation of the biodiversity sector by 2015/16.
The spending focus over the medium term will be on implementing the Protected Areas Expansion Strategy to ensure that endangered biodiversity, ecosystems and natural heritage areas are protected. This accounts for the significant spending on transfers to public entities which make up to 76 per cent of the programme’s budget over this period.
6. Departmental Programme 6 (Environmental Programmes and the Green Economy): No additional areas considered during this cycle as it was a focus area during the oversight visits of 2012. Further engagements on job creation, biosecurity and value-added industries will be scheduled during the 3rd and 4th Parliamentary term of 2013.
The strategic objectives of the Environmental Programmes are to:
• Promote the empowerment of designated communities by creating 219 089 work opportunities and 113 748 full time equivalents within environmental projects through the implementation of the expanded public works projects over the MTEF period.
• Restore and maintain vegetation structure and function in order to contribute to ecosystem services by clearing or treating of 870 089 hectares of invasive alien plants per year; cleaning 2 113 kilometres of coastline per year; extinguishing 2 000 fires per year; and restoring and rehabilitating 92 157 hectares of land over the MTEF period.
• Facilitate the transition to a growth path that is low in carbon and resource efficient by providing catalytic finance to 65 green initiative projects over the medium term.
The spending focus over the medium term will be on protecting environmental infrastructure, water resource management and promoting sustainable livelihoods by developing skills in a green context. These efforts will lead to the creation of 113 745 full time job equivalents and 219 089 work opportunities through the expanded public works programme. The bulk of spending over the medium term goes towards the implementation of these programmes.
7. Departmental Programme 7 (Chemicals and Waste Management) related to:
• Engagement with the Department on Industrial Waste Management Plans (26 February 2013);
• Engagement with the Department on the Integrated Waste Management Strategy, the budget allocation and priorities related to waste management; and
• Further engagement on the management of priority waste streams (tyres, packaging & medical waste) during the 3rd and 4th Parliamentary term of 2013.
The strategic objectives of the Chemicals and Waste Management programme are to:
• Oversee, monitor and evaluate waste sector performance, strategies, policies and initiatives by improving waste management by increasing the percentage of households with basic service collection from 56 per cent in 2012/13 to 75 per cent by 2015/16; regulating negative environmental impacts through the development of policies, processes and systems by 2015/16; finalising the approval of 96 per cent of waste licence applications within the MTEF period; managing and coordinating 116 reductions in unlicensed waste disposal sites within the MTEF period; and supporting municipalities to increase waste expenditure by 5 per cent over the MTEF period.
• Create enabling waste policies and strategies by improving intergovernmental coordination over the MTEF period; developing national policies, strategies, legislation, and norms and standards on chemical waste; monitoring and evaluating the impact of policy on the environment on an ongoing basis; and providing specialised advisory services on chemicals, waste and pollution management as and when required.
The spending focus over the medium term will be on developing an appropriate legislative framework and building capacity to improve the provision of quality chemical and waste management services across the country with clear environmental health benefits for communities.
6.2 Spending focus of entities over the medium term
For SANParks, revenue is expected to grow over the medium term due to an increase in the transfers received from government for infrastructure development and a projected increase in tourism income. The spending focus over the medium term will be on improving the state of the conservation estate and contributing to conservation nationally and globally. Fighting poaching crimes across the country remains a top priority, and an additional R75 million has been allocated for this purpose. The maintenance and upgrading of tourism facilities also remain a key focus area for spending.
The spending focus over the medium term for iSimangaliso is on infrastructure and maintenance, and the expansion of core operations. The Park Authority receives an additional allocation of R70 million over the MTEF period from the economic competitive support package to provide for equipment, facilities and infrastructure upgrade.
The spending focus of the SANBI over the medium term will be on biodiversity mainstreaming and conservation, maintaining and improving the national botanical gardens, and enhancing the Institute’s corporate services. The expenditure increase over the medium term is mainly due to an additional allocation of R150 million for infrastructure upgrades, including replacement of the roof at the education centre of the Kirstenbosch National Botanical Garden.
SAWS generates revenue mainly through transfers from the Department. Additional revenue is provided by commercial services. The spending focus over the medium term will be on ensuring the continued relevance of the organisation’s meteorological products and services. This will entail directing R50 million of additional funding towards the acquisition of a high performance IT system that will allow the entity to forecast weather patterns more accurately and within smaller geographic areas, and predict natural disasters more precisely.
6. Portfolio Committee findings, recommendations and decisions regarding the Department and the Entities’ Programmes and plans
This section summarises the Portfolio Committee’s observations, recommendations and resolutions flowing from the engagements with the Department and the entities as detailed in the sections above. These are dealt with according to the Programmes as they appear in the Department’s Strategic Plan and APP, whilst the four (4) entities are dealt with together with the Departmental Programme relevant to them.
7.1 Presentation of strategic plans of Department and the Entities in a composite report
The Portfolio Committee requested that, in future, when the Department reported on conservation and biodiversity, this should be done in an integrated report which would encompass the work of the Department and all entities involved in this activity. In this way, entities would not each have to report separately, but would merely supplement whatever had not been dealt with fully in the integrated report. The strategic plans should not be heard from the entities as different perspectives, but should all be encompassed under the broad thematic areas and work of the Department. The achievements should be pulled together, so that there is no huge disjuncture between the activities of one entity over the other due to limited funding. There needed to be a holistic approach to budgeting and requests for funding ought to be read in combination with a composite motivation for funding. This would have an impact on the way targets were reached. This did not mean that the entities were being disregarded by the Portfolio Committee, but if an integrated approach was used, it would ensure that, years down the line, closer relationships between the Department and the entities would ensure greater efficiency in meeting the mandates of the Department and each of the entities.
7.2. Overview of observations, recommendations and resolutions as per programme
7.2.1 Administration (Programme 1)
The Portfolio Committee noted that in terms of:
• The business performance management, a Balance Score Card (BSC) approach is being utilised by the Department and each of the entities separately, to monitor in-year performance and to a limited degree, performance over the medium term expenditure framework. The BSC approach is specific to legal entities and in line with the reporting and accountability prescripts stemming from the PMFA; and whilst the Environment Sector Strategic Plan contains elements of a BSC approach, an integrated BSC system is not in place for the Strategic Plan and APPs of the Department and the entities;
• Human Capital Management, the Portfolio Committee questioned the review of the Personnel Performance Management and Development System and how this links to the determination of Performance Bonuses. Another key issue raised was the success of the vacancy management approach and its contribution to the reduction of the use of consultants;
• Communication and Environmental Awareness, issues were raised on the focused approach to Public Awareness Campaigns stemming from the successes of the Climate Change awareness campaign before, during and after UNFCCC COP 17. Another matter raised under this component related to the closing down of Indalo Yethu due to it not being financially sustainable, further, that the Eco-Labelling work of Indalo Yethu will be taken forward by the Cleaner Production Centre of the Department of Trade and Industry (DTI) and a memorandum of agreement between the Department and the DTI are being finalised in this regard. The Trust would be fully dissolved towards the end of May 2013;
• The deregistration of Buyisa-e-Bag: The Portfolio Committee required more information on the progress made towards a zero balance financial statement and the final audit required for deregistration, and the envisaged time frame for concluding the matter is 31 May 2013;
• Environmental Advisory Services, the Portfolio Committee noted that there has been delays in finalising the South African National Environmental Outlook Report (including the State of the Environment Report), but publication is still intended to take place in 2013; the progress made towards the development of a sector wide Enterprise GIS and the importance of GIS in the Department (and the Entities’) business processes; and the interventions planned to further improve the efficiency and effectiveness of the Environmental Impact Assessment Regime and to overcome the challenges in this regard;
• International obligations and processes with the extensive list of conventions, treaties, bilateral and multilateral agreements that the Department leads or contributes to; and the role and responsibilities of the Department and the entities in the reporting regime in place for the Department’s work in this regard; and
• The Green Fund, the Department highlighted the progress made in the establishment of the Green Fund’s institutional arrangements; the progress made in implementing the Green Fund; and the delays experienced during the initial phases of implementation.
On the inputs raised above, the Portfolio Committee recommended that in terms of:
• The business performance management, an integrated, single, Balance Score Card for the Department and the Entities be developed with a longer term approach in terms of targets, progress and likelihood of achieving targets; and that such BSC be linked to the SAEOL system and be utilised for reporting to the Portfolio Committee in an integrated fashion;
• The dissolution of Indalo Yethu and deregistration of Buyisa–e-Bag, that a report be tabled by the Department in the Portfolio Committee when each of these has been done; and
• International commitments and processes, The Portfolio Committee is involved in multilateral processes, especially in terms of engagement with legislatures of targeted treaty parties in furtherance of South Africa’s and Africa’s interests.
The Portfolio Committee resolved to:
• Support the key performance indicators and targets set for Programme 1 in the Department’s Strategic Plan and APP for 2013-2014;
• Require the Department to submit to the Portfolio Committee a full list of employees awarded performance bonuses, as well as the amounts to be paid out before such payments are made;
• Further engage the Department and the Entities on the 2013 South Africa Environmental Outlook Report (including the State of the Environment Report) and all of the sub-sector “State of..” reports that fed into it; the planned sector wide Enterprise GIS and the integration of SANBI’s BioGIS into such system; and the Green Fund and the transition to a Green Economy;
• Require the Department to table a report in the Portfolio Committee when Buyisa–e-Bag has been de-registered and Indalo Yethu has been dissolved;
• That the Department must consider the policy and legislative framework associated with soil protection and sustainable management of soil and brief the Portfolio Committee in this regard, including what the role and mandate of the Department are in this regard. This report must be tabled in the Portfolio Committee before November 2013; and
• Conduct public hearings on the efficiency and effectiveness of the Environmental Impact Assessment Regime and the challenges in this regard.
7.2.2 Legal, Authorisation, Compliance and Enforcement (Programme 2)
The Portfolio Committee noted that in terms of the legislative programme of the Department:
• the Department provided the Portfolio Committee with a comprehensive list of legislation, regulations and other legal instruments currently under development or amendment, as well as the medium planning in this regard; and the Department prioritises the future implementation/alignment or amendment of the following Bills:
− The National Environmental Management Laws First and Second Amendment (NEMLA) Bills, (2012/2013);
− NEMLA First (2103) focusing on the alignment of the environmental legislation with the Mineral Petroleum Resources Development Amendment Bill;
− NEMLA Second (2013) focusing on urgent amendments to the NEM: Biodiversity Act and the NEM: Protected Areas Act;
− Integrated Coastal Management Amendment Bill (already tabled in Parliament);
− South African Weather Services Amendment Bill;
− Substitute Bill for Marine Life Bill;
− National Environmental Management: Waste Amendment Bill; and
− National Environmental Management: Air Quality Amendment Bill.
On the inputs raised above, the Portfolio Committee recommended that in terms of:
• Departmental compliance with PAJA and the management thereof, the Portfolio Committee noted the management of compliance with PAJA through building relevant provisions in sector legislation and regulations as far as licensing and permitting processes are concern; and the inadequacy of the system to monitor and report on compliance with PAJA for monitoring and reporting on compliance for departmental decision-making processes falling outside of the authorisations mentioned above. In response to the above, the Portfolio Committee recommended that in terms of departmental compliance with PAJA and the management thereof, the Department develop a checklist and monitoring system to ensure compliance to PAJA and enhance its ability to report against such compliance in terms of all administrative actions and the decision-making of the Department.
• Departmental compliance with PAIA and the management thereof, the Portfolio Committee commended the Department’s compliance record with a 100-per cent response rate, substantially within the time frames prescribed; and the creation of a centralised electronic system utilised for the registration, management and monitoring of PAIA applications and queries.
The Portfolio Committee resolved to:
• Support the key performance indicators and targets set for Programme 2 in the Department Strategic Plan and APP for 2013-2014;
• Request the Department to provide progress reports of the process of developing a comprehensive Compliance & Enforcement Strategy;
• Require the Department to report on a quarterly basis on the progress against the submitted programme; and in addition to the requirements stemming from the Interpretations Act requiring the tabling of subordinate legislation in Parliament after publication of such regulations, the Department be required to also table such subordinate legislation and legal instruments informally to the Portfolio Committee; and.
• Request the Department to report on a quarterly basis on its compliance with PAIA and PAJA; and to engage the Department on the following matters also to be included in the ongoing agenda of the Committee: The system developed for ensuring and monitoring compliance with PAJA; and the Centralised, intranet-based system utilised for the management and monitoring of PAIA queries and applications.
7.2.3 Oceans & Coastal Management (Programme 3)
The Portfolio Committee, on Programme 3 engaged the Department on the terms of the State of the Ocean Report with regard to the content of the report; the importance of a healthy ocean environment for climate change mitigation and adaptation purposes; the opportunities the ocean environment holds for conservation and economic purposes; the gaps in information with regard to the state of the oceans; and the integration of the report into the 2012 South African Environmental Outlook Report.
The Portfolio Committee noted that in terms of:
• The National Environmental Ocean Management Green Paper, the focus was on the content, especially in relation to the extent of South Africa’s territory or “land” with the inclusion of the Ocean and Islands; the application currently under consideration to expand the territorial waters of South Africa; the economic opportunities of the Ocean; the environmental management threats and opportunities offered by the Ocean; the extensive research needs associated with the Ocean management mandate; the progress with and planned consultative process for the further development of the policy; and the targets set in this regard;
• Ocean Research, the Portfolio Committee focused on the increased ability of the Department to honour its research commitments due to the transfer of the Algoa from DAFF to the Department; the programme of the vessels both in terms of research and relief voyages; and the inadequacy of the current deployed observation platforms and buoys to meet the data needs to satisfy adequate management of our oceans;
• Marine and Coastal mining, the issues deliberated on are the number of off-shore and coastal exploration and mining applications currently under consideration; the Department’s ongoing research into the potential environmental threats and opportunities associated with such mineral and petroleum product development; and the inadequacy of the current legislative framework in terms of consideration of cumulative environmental impacts and sustainability; and
• In relation to the collaboration between the Ocean and Coasts Programme and the SAWS in terms of indicators and targets set for research and data collection, the Portfolio Committee required more information, especially in terms of the Antarctica and Prince Edward Islands Programmes; the SAWS station on Gogh Island; the voyages of the research vessels; and the observation platforms and buoys.
After due consideration of the above aspects relevant to Programme 3, the Portfolio Committee, resolved to:
• Support the key performance indicators and targets set for Programme 3 in the Department’s Strategic Plan and APP for 2013-2014;
• Request further input from the Department on the progress made in finalisation of the Estuary Management Protocol.
• Engage the Department further on the following matters that are also to be included in the ongoing agenda of the Portfolio Committee: The Department’s ability to monitor compliance with and enforce environmental legislation in the Ocean; The Ocean Research Strategy; and Off-shore and Coastal exploration and mining; and
• Schedule public hearings on the National Environmental Ocean Management Green Paper.
7.2.4 Climate Change and Air Quality Management (Programme 4) and the South African Weather Services
The Portfolio Committee, in engaging on Programme 4, noted the progress made and targets set for the implementation of the National Environmental Management Policy on Climate Change Response; the outcomes of the United Nations Framework Convention on Climate Change 18th Conference of the Parties and the implications thereof for the programmes and plans of the Department; the State of the Air Report; and its integration into the 2012 South Africa’s Environmental Outlook Report.
The Portfolio Committee was also interested in the collaboration between the Department and SAWS in relation to the performance indicators and targets for Air Quality Information Management; Monitoring and modelling changes to climatic conditions over time due to climate change; and Climate Change adaptation through disaster prevention such as early warning mechanisms on severe weather conditions.
In response to the insights offered by the Department to Programme 4, the Portfolio Committee recommended that SAWS develop a strategy to recover the aviation tariffs due to it.
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The Portfolio Committee, after its deliberations on Programme 4, resolved to:
• Support the key performance indicators and targets set for Programme 4 in the Department’s Strategic Plan and APP for 2013-2014;
• Support the key performance indicators and targets set for SAWS in its Strategic Plan and APP for 2013-2014;
• Engage the Department and SAWS further on the approach to and systems in place for the monitoring of and reporting on air quality – this matter will also be included in the ongoing agenda of the Portfolio Committee;
• Conduct hearings on the notices gazetted in terms of the Air Quality Management Act on emission standards and transitioning of industry to cleaner production processes; and
• Continue with the annual workshop and engagement with the Department and key role players, probably in July 2013, on the implementation of the National Climate Change Response Policy.
7.2.5 Biodiversity & Conservation (Programme 5); Isimangaliso Wetland Park; the South African National Biodiversity Institute and South African National Parks.
With regard to Programme 5, the Portfolio Committee noted the Key Performance Indicators and targets set for Programme 5 in the Department’s 2013-2014 Strategic Plan and APP and those set for Isimangaliso, SANBI and SANParks in theirs; and noted that the Key Performance Indicators of the above entities are aligned with those of the Department in Programmes 3, 5 and 6; and that the conservation and biodiversity mandates are interlinked and interdependent.
7.2.5.1 Concurrent functions of biodiversity and conservation
In addition to national legislation, some of South Africa's nine provinces have their own provincial biodiversity legislation, as nature conservation is a concurrent function of national and provincial government in terms of the Constitution. Provincial laws contain some regulatory provisions on similar issues to those governed by national legislation. This sometimes leads to conflict and confusion, especially with the issuing of permits. There is also the problem of concurrent jurisdiction with provincial and national legislation, which results in ineffective enforcement of biodiversity and conservation legislation.
Functional areas of concurrent national and provincial legislative competence include environmental management, pollution control, soil conservation, nature conservation (excluding national parks, national botanical gardens and marine resources) and regional planning and development.
The wide range of legislation dealing with various aspects of biodiversity, including various types of protected areas, has resulted in a relatively high number of state departments and agencies being responsible for managing biodiversity within protected areas, and across the landscape and seascape outside the protected area network.
In terms of the conservation mandate, the Portfolio Committee interrogated the role and responsibilities of the Department, Isimangaliso and SANParks in terms of the management of the Conservation Estate; the targets set for the expansion of the conservation estate and the challenges in this regard, mostly due to lack of resources; and the challenges associated with the management of Transfrontier Conservation Areas.
7.2.5.2 Target of 17 per cent for land under conservation by 2020
The Portfolio Committee stressed the importance of South Africa committing itself internationally to reach its 17 per cent target of land under conservation by 2020, but the Portfolio Committee noted that the National Treasury had rejected the Department’s motivation for increased funding to attain this target. The Portfolio Committee was concerned that South African would renege on its international commitment, and this matter due to its international implications should be treated as a priority by the Department and Treasury.
In terms of Rhino Management, the Portfolio Committee deliberated on the statistics and alarming increase in rhino poaching incidents; the establishment of the National Wildlife Information Management Unit; The impact of tightening the permitting regime; the statistics associated with arrests and convictions and the challenges in this regard, especially where foreign nationals are involved; the progress in amendment of the legislation to enforce disclosure on rhino horn stockpiles; the management plan developed for white rhinos in terms of the NEM Biodiversity Act; the report and recommendations of the Rhino Issue Manager; the interventions of SANParks related to surveillance, intelligence and the vetting of rangers and managers potentially involved in Rhino poaching; the progress made with the investigation into re-establishment of the border fence between South Africa and Mozambique; the progress made with regards to memorandae of agreement with neighbouring countries, major user countries and other African Countries; and the Outcomes of CITES COP 16; and the implications thereof on the management of the rhino population.
In terms of other Biodiversity matters, the Portfolio Committee raised questions on the BioGIS system of SANBI and its application in planning, decision-making and policy formulation; the outcomes of the hunting Indaba; the National Biodiversity Assessment Report and its integration into the 2012 South African Environmental Outlook Report; the role that SANBI plays in the implementation of the Biodiversity Sector Skills Plan and the Jobs Fund, especially the Groen Sebenza programme; and the appointment of SANBI as the national implementing agent of the Adaptation Fund.
In response to the input on Programme 5, the Portfolio Committee recommended that:
• The Department expedite the conclusion of MOUs with all our neighbours and the major user countries;
• The Department expedite the plans in terms of the Rhino Horn stockpiles and the inventory in this regard;
• The Department publish the Rhino Issue Manager’s report and start engaging the recommendations;
• The Department expedite the strategy on discussion of and the investigation into restricted and controlled trade in rhino horn;
• The Department integrate the BioGIS into the sector wide Enterprise GIS tool under development;
• The Department call on the assistance of the Portfolio Committee to engage the National Prosecution Authority in order to increase the profile and prioritisation of wildlife crime; and
• The Department profile the success stories of the hunting industry, as a key contributor to the wildlife economy, which in turn is a contributor to transitioning to a green economy.
After its deliberations on Programme 5, the Portfolio Committee resolved to:
• Support the key performance indicators and targets set for Programme 5 in the Department’s Strategic Plan and APP for 2013-2014;
• Support the key performance indicators and targets set for the SANBI in its Strategic Plan and APP for 2013-2014;
• Support the key performance indicators and targets set for SANParks in its Strategic Plan and APP for 2013-2014;
• Support the key performance indicators and targets set for Isimangaliso in its Strategic Plan and APP for 2013-2014;
• Require the Department to submit to the Portfolio Committee, in three months time: a costed and time bound action plan in terms of the Rhino Horn Stockpile issue; the entering into MOUs with neighbouring countries, key Africa states and the key user states; the implementation of adopted recommendations of the Rhino Issue Manager’s Report of 2012; and the strategy and communication plan into the investigation of restricted and controlled trade in Rhino Horn in six months time;
• Further engage the Department and SANBI on: the approach to the Transformation of the Biodiversity sector; the implementation of the Adaptation Fund; the National Biodiversity Assessment of 2012; and SANBI’s Bio GIS; and
• Further engage the Department, SANParks and Isimangaliso on the strategy for expansion of the Conservation Estate; the relation between mining and protected areas; the entrepreneurs programme of Isimangaliso; and the management of and challenges associated with Transfrontier Conservation Areas.
7.2.5.3 Environmental Programmes (Programme 6)
The Portfolio Committee in deliberating on Programme 6 focused on the key performance indicators and targets set for the creation of jobs through environmental programmes and the value-added industries associated with it; the training and skilling of beneficiaries of the job creations programmes; with due attention being paid to the following programmes: the management and control of alien invasive species; the management of veld fires; the development of environmental infrastructure; eco-factories; eco-towns and greening; the wildlife economy; and on the Working on Wetlands and Working on Waste programmes.
Other important aspects deliberated on by the Portfolio Committee were the departmental approach to coordinating the Environment and Cultural sector of the Expanded Public Work Programme; the partnerships with Isimangaliso, SANParks and SANBI in implementation of the above programmes; the partnership with SANBI in terms of research and planning related to Biosecurity; and the partnership with SAWS in terms of the early warning system associated with veld fire risk.
After substantially engaging on Programme 6, the Portfolio Committee resolved to:
• Support the key performance indicators and targets set for Programme 6 in the Department’s Strategic Plan and APP for 2013-2014; and
• Engage the Department further on the job creation programmes, included, but not limited to, the Expanded Public Works Programme; the Biosecurity programme; and the Ecofactories.
7.2.5.4 Chemicals and Waste Management (Programme 7)
The Portfolio Committee in engaging on Programme 7 focused on the amended key performance indicators and targets set for the national integrated waste management strategy; improving the delivery of waste services; Reduction of waste to landfill for various priority waste streams; improved management and environmental performance of landfill sites; the Waste Information Management System; contaminated land; and implementation of Multilateral Environmental Agreements associated with the management of Chemicals.
Other issues deliberated upon in relation to Programme 7 were the:
• Collaboration with the Department of Cooperative Governance and Traditional Affairs on Waste Management Services;
• Approach to management of waste streams through Industry Waste Management Plans and the inadequacies of the legislative framework in this regard; and
• The mandate of the Department in terms of contaminated land and its relevance in terms of concerns raised by the Portfolio Committee on the legislative and policy framework on the management of soil towards sustainability.
The Portfolio Committee in deliberating on the input by the Department resolved to:
• Support the key performance indicators and targets set for Programme 7 in the Department Strategic Plan and APP for 2013-2014; and
• Engage the Department further on the implementation of the Integrated Waste Management Strategy; amendments required to the NEM Waste Act; and the approach to priority waste streams.
8. Conclusion
The Portfolio Committee concluded its deliberation on the Strategic Plans, Annual Performance Plans and budgets of the Department, Isimangaliso, SANBI, SANParks and SAWS and resolved to:
• Support the plans as tabled and noted with appreciation how these plans are aligned with and respond to the National Development Plan and international obligations such as the Millennium Development Goals;
• Whilst concerned about the inadequacy of the budget allocation to the Department and the entities and the implications this have for the Department (and Entities) in delivering on their mandates and against the country’s international obligations, appreciates the constraints within the fiscal environment and request the Treasury to reconsider the areas that are not sufficiently funded during the next Medium Term Expenditure Framework budget allocation process; and
• Support the approval of Budget Vote 30.
Report to be considered.
TUESDAY, 30 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bills
1) Prevention and Combating of Trafficking in Persons Bill [B 7B – 2010] – Act No 7 of 2013 (assented to and signed by President on 28 July 2013).
2) Prevention of Combating and Torture of Persons Bill [B 21B – 2012 (Reprint)] – Act No 13 of 2013 (assented to and signed by President on 24 July 2013).
National Assembly
The Speaker
1. Introduction of Bills
1) Ms M Smuts
a) Constitution Eighteenth Amendment Bill [PMB 6 – 2013] (National Assembly – proposed sec 74) (see below) [Bill and prior notice of its introduction published in Government Gazette No. 36566 of 14 June 2013.]
Introduction and referral to the Portfolio Committee on Justice and Constitutional Development of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
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2. Changes to National Executive
1) A letter dated 16 July 2013 has been received from the President of the Republic, informing the Assembly of the appointment of the following Ministers and Deputy Ministers:
a) Mr S L Tsenoli as Minister for Cooperative Governance and Traditional Affairs;
b) Ms C C September as Minister of Human Settlements;
c) Mr Y I Carrim as Minister of Communications;
d) Mr B A D Martins as Minister of Energy;
e) Ms E D Peters as Minister of Transport;
f) Mr J H Jeffery as Deputy Minister of Justice and Constitutional Development;
g) Mr A C Nel as Deputy Minister for Cooperative Governance and Traditional Affairs;
h) Mr T M Masutha as Deputy Minister of Science and Technology; and
i) Ms P Tshwete as Deputy Minister of Rural Development and Land Reform.
3. Public hearings of Arms Procurement Commission
1) A letter dated 24 July 2013 has been received from the Arms Procurement Commission –
a) giving notice of commencement of public hearings by the Commission on Tuesday, 5 August 2013; and
b) inviting the Speaker and/or a representative to observe or participate in the
public hearings.
4. Appointment of Parliamentary Counsellor to Deputy President
Ms M T Kubayi has been designated as Parliamentary Counsellor to the Deputy President of the Republic in terms of Rule 319 of the Rules of the National Assembly with effect from 24 July 2013.
5. Referral to Committees of papers tabled
1) The following papers are referred to the Standing Committee on Finance:
(a) Proclamation No 12, published in Government Gazette No 36485, dated 31 May 2013: Commencement of Financial Markets Act, in terms of section 112 of the Financial Markets Act, 2012 (Act No 19 of 2012).
(b) Proclamation No 13, published in Government Gazette No 36509, dated 30 May 2013: Amendment of Schedule 1, in terms of section 33 of the South African Revenue Service Act, 1997 (Act No 34 of 1997).
(c) Government Notice No 362, published in Government Gazette No 36472, dated 24 May 2013: Approval that one set of annual financial statements and annual report for 2012/13 was produced, in terms of section 92 of the Public Finance Management Act, 1999 (Act No 1 of 1999).
(d) Government Notice No R 384, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 1 (No 1/1/469), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No R 385, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 3 (No 3/1/692), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(f) Government Notice No R 386, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 3 (No 3/1/694), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No R 387, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 1 (No 1/1/1470), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R 388, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 2 of Schedule No 1 (No 1/2A/156), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R 389, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1C of Schedule No 6 (No 6/1C/35), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R 390, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1D of Schedule No 6 (No 6/1D/01), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R 391, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1C of Schedule No 6 (No 6/1C/36), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(l) Government Notice No R 392, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1D of Schedule No 6 (No 6/1D/02), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
2) The following paper is referred to the Standing Committee on Finance for consideration and report:
(a) Annual Report of the Bank Supervision Department of the South African Reserve Bank for 2012.
3) The following paper is referred to the Portfolio Committee on Home Affairs:
(a) Agreement between the Government of the Republic of South Africa and the Government of the Federal Republic of Nigeria regarding the Waiver of Visa requirements for categories of citizens holding Diplomatic or Official Passports, tabled in terms of section 231(3) of the Constitution, 1996.
4) The following paper is referred to the Portfolio Committee on Human Settlements for consideration:
a) Housing Development Agency draft regulations, submitted for consultation with Parliament in terms of section 32 of the Housing Development Agency Act, 2008 (No 23 of 2008).
5) The following papers are referred to the Portfolio Committee on Trade and Industry:
a) General Notice No 560, published in Government Gazette No 36505, dated 29 May 2013: Invitation for the public to comment on the draft National Credit Amendment Bill, 2013.
b) General Notice No 466, published in Government Gazette No 36446, dated 8 May 2013: Invitation for the public to comment on the draft Lotteries Amendment Bill, 2013.
c) General Notice No 485, published in Government Gazette No 36454, dated 17 May 2013: Notice of intention to amend the regulations of the Act, in terms of section 42 of the Trade Metrology Act, 1973 (Act No 77 of 1973).
6) The following papers are referred to the Portfolio Committee on Trade and Industry for consideration and report:
a) Southern African Development Community (SADC) Protocol on Trade in Services, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the Southern African Development Community (SADC) Protocol on Trade in Services.
7) The following papers are referred to the Portfolio Committee on Cooperative Governance and Traditional Affairs for consideration and report:
a) Strategic Plan of the Department of Traditional Affairs for 2013-16.
(b) Annual Performance Plan of the Department of Cooperative Governance for 2013-14.
8) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs:
a) General Notice No 154, published in Government Gazette No 36207, dated 8 March 2013: Correction notice: Waterberg- Bojanala National Priority Area, in terms of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
b) General Notice No 171, published in Government Gazette No 36207, dated 8 March 2013: Draft Regulations prescribing the atmospheric emission licence processing Fee Calculator, made in terms of sections 53(o), 37, 44, 45 and 47 read with section 57(1) of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
c) General Notice No 607, published in Government Gazette No 36559, dated 14 June 2013, in accordance with Rule 241 (1) (c) of the Rules of the National Assembly: Department of Environmental Affairs: Explanatory Summary of the South African Weather Service Amendment Bill, 2013.
9) The following paper is referred to the Portfolio Committee on Rural Development and Land Reform for consideration and report:
a) Report and Financial Statements of the Commission on Restitution of Land Rights for 2012-13 [RP191-2013].
10) The following paper is referred to the Joint Standing Committee on Defence for consideration and to the Portfolio Committee on Defence and Military Veterans:
a) Letter from the President of the Republic, dated 27 June 2013, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service within the Republic of South Africa.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Home Affairs on the Electoral Amendment Bill [PMB 2 - 2013], dated 30 July 2013
The Portfolio Committee on Home Affairs (the Committee), having considered the Electoral Amendment Bill [PMB 2 - 2013] (National Assembly – section 75), referred to it and classified by the Joint Tagging Mechanism (JTM) as a section 75 Bill, reports as follows:
The Electoral Amendment Bill [PMB 2 - 2013], a private member’s bill, was tabled and referred to the Committee on 27 March 2013. The Committee met with the sponsor of the Bill, Mr James Selfe, MP, on 19 June 2013, in order to receive a briefing on the Bill.
The Bill seeks to amend the Electoral Act, 1998 (Act 73 of 1998), so as to amend the manner in which voters who are absent from their voting districts can vote; to provide for the institution of constituencies for the National Assembly; to provide for the demarcation of such constituencies; to provide for the method of election of members of the National Assembly from such constituencies, and to provide for matters incidental thereto.
During the briefing, Mr. Selfe indicated that it was envisioned that the proposed amendments relating to a mixed constituency and proportional representation electoral system would only be implemented in time for the 2019 elections.
The Committee deliberated on the Bill on 23 and 24 July 2013. The Committee adopted a motion that the legislation is not desirable at the moment for the following reasons:
• The proposed changes to the electoral system to include both a constituency and proportional representation list system might very well dilute the constitutional principle of multi-party democracy. It does appear that these changes to the system will be to the detriment of smaller parties and result in a two or three party system instead of the current multi-party system. The net result of the Bill would be an increased threshold, resulting in a system that is less proportionate to the votes received by each party than what is currently the case. The introduction of a constituency-based proportional representation list system will result in a more complex electoral system.
• Whilst aimed at greater accountability, it is questionable to what extent a proportional representation list at constituency level will achieve this. The voter will still vote for a party, not a candidate. Each party will have a list of more than one candidate and this may confuse voters as far as who they are voting for. On his own admission, the member who sponsored the Bill, Mr Selfe, indicated the acceptance of the Bill would amount to trade-offs, such as greater accountability on the one hand as opposed to smaller parties being negatively affected. The member admitted that there would be gains as well as losses.
• As far as the part of the Bill dealing with absent and special voters is concerned, the Committee is of the following opinion:
- The Electoral Amendment Bill [B22-2013], 2013, has been submitted to the Speaker by the Minister of Home Affairs in terms of Joint Rule 159.
- This Bill has been properly researched by the Electoral Commission and deals with similar matters to those in this part of the private member’s bill. The Committee will therefore prefer to deal with these matters when it deals with the Electoral Amendment Bill [B22-2013]. It is hereby suggested that Mr Selfe’s proposal could be dealt with at that time.
Given the fact that the implementation of the proposed private member’s bill is unlikely to occur in time for the imminent general elections in 2014, the Committee is of the opinion that this is probably not the time for legislation of this nature to be passed.
On the balance therefore, the Committee believes that the Bill is not desirable at this stage.
The Committee thanks Mr Selfe for sponsoring this Bill and in so doing giving the Committee the opportunity to engage in a continuous debate on the most appropriate electoral system for our country. This is certainly a matter that will receive ongoing attention of both the Committee and the Electoral Commission.
Report to be considered.
WEDNESDAY, 31 JULY 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Classification of Bills by Joint Tagging Mechanism (JTM)
(1) The JTM in terms of Joint Rule 160(6) classified the following Bill as section 75 Bills:
(a) Electronic Communications Amendment Bill [B 17 – 2013] (National Assembly – sec 75).
b) Independent Communications Authority of South Africa Amendment Bill [B 18 – 2013] (National Assembly – sec 75).
c) Merchant Shipping (International Oil Pollution Compensation Fund) Bill [B 19 – 2013] (National Assembly – sec 75).
2. Draft Bills submitted in terms of Joint Rule 159
1) Customs Control Bill, 2013, submitted by the Minister of Finance.
2) Customs Duty Bill, 2013, submitted by the Minister of Finance.
3) Customs and Excise Amendment Bill, 2013, submitted by the Minister of Finance.
Referred to the Standing Committee on Finance and the Select Committee on Finance.
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Communications
a) South African Post Office Soc Ltd Amendment Bill [B 24 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36665 of 12 July 2013.]
b) South African Postbank Limited Amendment Bill [B 25 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36651 of 10 July 2013.]
Introduction and referral to the Portfolio Committee on Communications of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bills may be submitted to the JTM. The Bills may only be classified after the expiry of at least three parliamentary working days since introduction.
MONDAY, 5 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Referral to Committees of papers tabled
1) The following papers are referred to the Standing Committee on Appropriations for consideration and report:
(a) Revised Strategic Plan of the National Youth Development Agency (NYDA) for 2013-18.
(b) Revised Annual Performance Plan of the National Youth Development Agency (NYDA) for 2013-14.
2) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development for consideration and report:
(a) United Nations International Covenant on Economic, Social and Cultural Rights, tabled in terms of section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum to the United Nations International Covenant on Economic, Social and Cultural Rights.
3) The following paper is referred to the Portfolio Committee on Rural Development and Land Reform:
(a) Report of the Communal Property Associations for 2011-12, tabled in terms of section 17 of the Communal Property Associations Act, 1996 (Act No 28 of 1996).
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Public Enterprises
a) Report and Financial Statements of Eskom Holdings SOC Limited for 2012- 2013, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-2013.
b) Integrated Report of Eskom Holdings SOC Limited for 2012-2013.
2. The Minister of Trade and Industry
a) General Notice No 733, published in Government Gazette No 36659, dated 12 July 2013: Final prohibition on the use of a certain words together with an emblem, in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
3. The Minister of Finance
a) Government Notice No 463 published in Government Gazette No 36627 dated 2 July 2013: Determination of a date upon which section 13(1) of the Taxation Laws Amendment Act, shall come into operation, in terms of the Taxation Laws Amendment Act, 2011 (Act No 24 of 2011).
b) Government Notice No R.473, published in Government Gazette No 36638, dated 12 July 2013: Amendment of Schedule No 3 (No 3/1/695), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
c) Government Notice No R.474, published in Government Gazette No 36638, dated 12 July 2013: Amendment of Schedule No 1 (No 1/1/1471), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
d) Government Notice No R.475, published in Government Gazette No 36638, dated 12 July 2013: Amendment of Schedule No 1 (No 1/1/1472), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
e) Government Notice No R.476, published in Government Gazette No 36638, dated 12 July 2013: Amendment of Schedule No 3 (No 3/1/696), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Trade and Industry on the Special Economic Zones Bill [B 3 - 2013], dated 31 July 2013:
The Portfolio Committee on Trade and Industry, having considered the subject of the Special Economic Zones Bill [B 3 – 2013], referred to it and classified by the Joint Tagging Mechanism (JTM) as a section 76 Bill, reports the Bill with amendments [B 3A – 2013].
Report to be considered.
TUESDAY, 6 AUGUST 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bills
1) Co-operatives Amendment Bill [B 17B – 2012] – Act No 6 of 2013 (assented to and signed by President on 2 August 2013).
2) Spatial Planning and Land Use Management Amendment Bill [B 14BB – 2012] – Act No 16 of 2013 (assented to and signed by President on 2 August 2013).
National Assembly
The Speaker
1. Membership of Committees
1) The following changes to Committee membership have been made:
(a) Mr JD Thibedi has been elected Chairperson of the Ad Hoc Committee to exercise co-ordinated oversight on the Legacy of the Native Land Act of 1913 with effect from 06 August 2013.
(b) African Christian Democratic Party:
Portfolio Committee on Trade and Industry
Appointed: Thring, Mr W (ALT)
Portfolio Committee on Police
Appointed: Thring, Mr W (ALT)
Portfolio Committee on Economic Development
Appointed: Thring, Mr W
(c) African National Congress
Portfolio Committee on Transport
Discharged: Jacobus, Ms L
Appointed: Pule, Ms D
Portfolio Committee on Science and Technology
Discharged: Jacobus, Ms L
Appointed: Mathale, Mr C
Portfolio Committee on Water and Environmental Affairs
Appointed: Ndlazi, Ms Z
Portfolio Committee on International Relations and Cooperation
Appointed: Kubayi, Mrs M
Portfolio Committee on Human Settlements
Appointed: Mathale, Mr C
Portfolio Committee on Justice and Constitutional Development
Appointed: Motshekga, Dr M
Constitutional Review Committee
Appointed: Sexwale, Mr T
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Public Enterprises
a) Report and Financial Statements of Denel SOC Limited for 2012-2013, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-2013.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Trade and Industry on the joint attendance with the Portfolio Committees on Science and Technology and on Rural Development and Land Reform of the 4th International Meeting for Parliamentarians as part of the 63rd International Astronautical Congress held in Naples, Italy, 30 September 2012, dated 31 July 2013
The Committees having attended the fourth International Meeting for Parliamentarians as part of the 63rd International Astronautical Congress hosted by the International Astronautical Federation (IAF), reports as follows:
1. Introduction
The IAF brings together major players in the space sector, including institutional, public and private sector stakeholders, on an international scale. In the context of developing its vision: “A space-faring world cooperating for the benefit of humanity”, the IAF has been expanding its network to include the community of politicians with a special focus on Members of Parliaments. As the responsible oversight Portfolio Committees regarding space matters in South Africa, the IAF invited members of the Portfolio Committees on Trade and Industry, on Science and Technology and on Rural Development and Land Reform to attend the 4th International Meeting for Parliamentarians held in Naples, Italy, on 30 September 2012 and the 63rd International Astronautical Congress on 1 to 6 October 2012.
In pursuing this initiative, the IAF offered Members of Parliaments a well-defined and organised platform for a dialogue with the traditional space community (governmental representatives, agencies, industry, engineers and scientists) on a global scale. The event gave an opportunity to present to political stakeholders from governing and non-governing parties alike the potential of current or future space technologies to deal with key topics of global interest. The key topic for the 4th International Meeting for Members of Parliaments was “Satellite Applications – Tools for Policy Implementation and Verification”.
The following Members of Parliament attended:
1. Ms J L Fubbs (ANC) (Chairperson of the PC on Trade and Industry and the leader of the delegation)
2. Dr E N N Ngcobo (ANC) (Chairperson of the PC on Science and Technology)
3. Mr P S Sizani (ANC) (Chairperson of the PC on Rural Development and Land Reform)
Members of Parliament were able to share experiences of their respective countries and to engage on the case studies presented by scientists and manufacturers of astronautical equipment but also the components that had been invented and produced for this field but which were more widely used in society such as various communication systems and gadgets. An additional purpose of the meeting was to identify and draw the linkages between the scientific sectors and the consequent benefits to society as a whole. Parliamentarians and scientists spent a full day in such discussions. The South African parliamentary delegation also participated in meetings of the IAF Africa Regional Group and attended various technical sessions of the Congress.
2. Legislative mandate
The primary South African legislative instrument governing the regulation of both governmental and non-governmental space-related activities is the Space Affairs Act (No. 84 of 1993). The Act establishes the South African Council for Space Affairs under the authority of the Minister of Trade and Industry to implement its regulatory, monitoring and registration functions. In 2009, the Minister of Trade and Industry launched South Africa’s National Space Policy, which sets out various objectives to develop the national space arena to support sustainable development, industrial development, human capital development and international cooperation in space activities.
The South African National Space Agency (SANSA) has been established under the Department of Science and Technology to implement the National Space Strategy.
3. The 4th International meeting for Members of Parliaments
Ms M Vaissiere, Director for Telecommunications and Integrated Applications for the European Space Agency (ESA), presented a paper on the “Potential for Sustainable Services and Economic Growth”. The focus was on maintaining and improving competition in the European industry on the promotion of the use of satellite technology. The reliance on the satellite infrastructure to communicate, travel, and in support of rescue and relief efforts cannot be over-emphasised. Satellite technologies and applications are also used for developing and monitoring precision agriculture, trading and fishing policies which enables the creation of business opportunities, therefore having a direct link to economic growth. A critical observation was that if the penetration of broadband increases domestically, it would have a positive impact on the Gross Domestic Product (GDP) of the country.
Challenges relating to the provision of information in real-time remain a concern but Europe is building a communication relay system that would allow for the transmission of information in real-time.
In respect of future air travel safety, ESA is developing a programme that could provide satellite communications for air traffic control. This application could contribute to indirect growth by allowing greater volume of aircraft to fly safely.
4. Special achievements/milestones reached by the South African government
The following special achievements/milestones were achieved by the responsible South African government departments and entities such as the Departments of Science and Technology, and of Trade and Industry (DTI) and various councils:
• The IAF African Regional Group meetings agreed on the objectives of the Regional Group for the period November 2012 to September 2013.
• The possible hosting of an International Space University (ISU) session in South Africa in 2015 was discussed with representatives of the ISU and SA delegations. Hosting such a programme in South Africa would have major capacity building benefits for the country and the Continent at large. Follow-up discussions with potential SA partner institutions are ongoing.
• Meetings with experts in Space law regarding the current study that South Africa is undertaking as a precursor to the review of the Space Affairs Act.
• Attending the IISL (International Institute of Space Law) Moot Court Competition, this is a capacity building programme for space law. South Africa through the DTI and the University of Pretoria coordinated the first ever African regional round and supported the winning team to attend the International Astronautical Congress in 2012.
• Attending various informative plenary sessions with parliamentary members on the broad applications of space in telecommunications, navigation, urban planning, geo-spatial activities, disaster monitoring and management, which in turn would enable the state to enhance its service delivery.
• A meeting was held with the Indian delegation and the SANSA on concluding a Memorandum of Understanding (MOU) and introducing the agency as an implementing body for this agreement.
5. Lessons learnt/value added to the DTI
• In addition to advancing South Africa’s interests in the global space arena, substantial progress was also made on a number of responsibilities that South Africa currently have within the United Nations and international intergovernmental organisations.
• The huge exhibition space at the 63rd International Astronautical Congress provided South Africa with an opportunity to have discussions with a number of companies in the space, aerospace and electro-technical sectors, which exhibited inherent cross-cutting areas. In the absence of parliamentary staff, the DTI officials had to provide support to the Parliamentary delegation attending the annual Members of Parliament meeting within the IAF framework.
• Interactions also took place with a number of stakeholders from the education sector, technology and innovation advancement institutions, and trade and industry development sectors. It was highly valuable to meet with a number of country delegates in the space arena to understand the similarities with the South African space structure and their rationale for their institutional framework. Discussions also related to international regulatory challenges, trends and developments. Lessons were learnt from the Canadian, Korean and Indian space arenas which are potential partners for South Africa in the space and related sectors.
6. Concluding remarks
Space is ubiquitous. Space industries touch every South African through: ATM’s; cell-phones; GPS; radio and television; weather forecasts, the internet, stock-markets and exchange-rates. Whether planning for dams, roads, towns or hubs, the economic impact of space technologies and applications are virtually incalculable. Space technologies and applications can improve the lives of all South Africans.
We have had the industrial revolution, the technical revolution and indeed now we have the cyber and space revolution. Always, these revolutions facilitated trade and had a vision to improve the lives of the people. In Africa and indeed our country, South Africa, we are intent on building infrastructure, and the space industry and technology is about infrastructure. South Africa is committed to becoming a producer, and a contributor not only a consumer of the benefits of space industry and technology. South Africa now more than ever is ideally positioned to develop a favourable position in the world of space.
Part of the answer lies in stimulating industry and technology development and also in having the right government involvement and regulatory and legal frameworks in place. Having a South African stand at the IAC exhibition provided a very convenient platform for members of our delegation to interact with their international counterparts. This platform assisted to showcase the country’s aerospace industry and continuation and broadening of such a provision with Trade and Industry South Africa would be advisable in the future to enable other thriving South African companies.
Awareness of what the South African government is doing on a national and international level is also necessary within the parliamentary structures and the delegation found that to be quite valuable for understanding and committing to the space programme, which includes the space industry.
2. Report of the Portfolio Committee on Transport on the Amendments to the National Road Traffic Regulations, dated 6 August 2013
The Portfolio Committee on Transport, having considered the Amendments to the National Road Traffic Regulations: 2000 tabled in terms of section 75(6)(a) of the National Road Traffic Act, 1996, referred to it, reports as follows:
1. The Committee considered the report of the Interim Joint Committee on Scrutiny of Delegated Legislation on the Regulations on 18 June 2013.
2. The Committee is satisfied that its comments on the Regulations pertaining to the second-hand genuine car parts industry contained in Regulation 13A were incorporated.
3. The Committee noted that some of the provisions in the Regulations apply retrospectively, which is not expressly provided for in the principal Act, and is of the view that those provisions should apply from the date on which the Regulations come into effect.
Report to be considered.
WEDNESDAY, 7 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Referral to Committees of papers tabled
1) The following papers are referred to the Standing Committee on Finance:
(a) Proclamation No 12, published in Government Gazette No 36485, dated 31 May 2013: Commencement, in terms of section 112 of the Financial Markets Act, 2012 (Act No 19 of 2012).
(b) Proclamation No 13, published in Government Gazette No 36509, dated 30 May 2013: Amendment of Schedule 1, in terms of section 33 of the South African Revenue Service Act, 1997 (Act No 34 of 1997).
(c) Government Notice No 362, published in Government Gazette No 36472, dated 24 May 2013: Approval that one set of annual financial statements and annual report for 2012/13 was produced, in terms of section 92 of the Public Finance Management Act, 1999 (Act No 1 of 1999).
(d) Government Notice No R 384, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 1 (No 1/1/469), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No R 385, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 3 (No 3/1/692), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(f) Government Notice No R 386, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 3 (No 3/1/694), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No R 387, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1 of Schedule No 1 (No 1/1/1470), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R 388, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 2 of Schedule No 1 (No 1/2A/156), in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R 389, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1C of Schedule No 6 (No 6/1C/35), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R 390, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1D of Schedule No 6 (No 6/1D/01), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R 391, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1C of Schedule No 6 (No 6/1C/36), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(l) Government Notice No R 392, published in Government Gazette No 36515, dated 7 June 2013: Amendment of Part 1D of Schedule No 6 (No 6/1D/02), in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
2) The following paper is referred to the Standing Committee on Finance for consideration and report:
(a) Annual Report of the Bank Supervision Department of the South African Reserve Bank for 2012.
3) The following paper is referred to the Portfolio Committee on Home Affairs :
(a) Agreement between the Government of the Republic of South Africa and the Government of the Federal Republic of Nigeria regarding the Waiver of Visa requirements for categories of citizens holding Diplomatic or Official Passports, tabled in terms of section 231(3) of the Constitution, 1996.
4) The following paper is referred to the Portfolio Committee on Human Settlements and to the Interim Joint Committee on the Scrutiny of Delegated Legislation for consideration and report:
a) Housing Development Agency draft regulations, submitted for consultation with Parliament in terms of section 32 of the Housing Development Agency Act, 2008 (No 23 of 2008).
5) The following papers are referred to the Portfolio Committee on Trade and Industry:
(a) General Notice No 560, published in Government Gazette No 36505, dated 29 May 2013: Invitation for the public to comment on the draft National Credit Amendment Bill, 2013.
(b) General Notice No 466, published in Government Gazette No 36446, dated 8 May 2013: Invitation for public comment on the draft Lotteries Amendment Bill, 2013.
(c) General Notice No 485, published in Government Gazette No 36454, dated 17 May 2013: Notice of intention to amend the regulations of the Act, in terms of section 42 of the Trade Metrology Act, 1973 (Act No 77 of 1973).
6) The following papers are referred to the Portfolio Committee on Cooperative Governance and Traditional Affairs for consideration and report:
(a) Strategic Plan of the Department of Traditional Affairs for 2013-16.
(b) Annual Performance Plan of the Department for Cooperative Governance for 2013-14.
7) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs:
(a) General Notice No 154, published in Government Gazette No 36207, dated 8 March 2013: Correction notice: Waterberg- Bojanala National Priority Area, in terms of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
(b) General Notice No 171, published in Government Gazette No 36207, dated 8 March 2013: Draft Regulations prescribing the atmospheric emission licence processing Fee Calculator, made in terms of sections 53(o), 37, 44, 45 and 47 read with section 57(1) of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
TABLINGS
National Assembly and National Council of Provinces
1. The Speaker and Chairperson
a) 2013 Second Quarterly Report of the National Conventional Arms Control Committee (NCACC), tabled in terms of section 23(1)(c) of the National Conventional Arms Control Act, 2002 (Act No 41 of 2002).
Referred to the Joint Standing Committee on Defence for consideration.
2. The Minister of Finance
a) Annual Economic Report of the South African Reserve Bank for 2013.
b) Report of the Registrar of Pension Funds for 2011 [RP 204 -2013].
COMMITTEE REPORTS
National Assembly and National Council of Provinces
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National Assembly
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2. Report of the Portfolio Committee on Arts and Culture on a letter dated 12 February 2013, from the Minister of Arts and Culture, requesting the Assembly to commence with the process outlined in the Pan South African Language Board Act (No 59 of 1995) for the filling of vacancies on the Pan South African Language Board (PanSALB), dated 30 July 2013
1. Introduction and Background
The Pan South African Language Board (PanSALB) derives its mandate from section 6(5) of the Constitution of the Republic of South Africa (Act 108 of 1996). It is mandated to perform the following functions:
a) Promote, and create conditions for, the development and use of:
i. All official languages;
ii. The Khoi, Nama and San languages; and
iii. Sign language; and
b) Promote and ensure respect for:
i. all languages commonly used by communities in South Africa, including German, Greek, Gujurati, Hindi, Portuguese, Tamil, Telegu, and Urdu; and
ii. Arabic, Hebrew, Sanskrit and other languages used for religious purposes in South Africa.
iii. The promotion of multilingualism in South Africa (s8 (iii)(b)(iii) of Act 10 of 1999).
The PanSALB was established by an Act of Parliament (Act 59 of 1995, amended by Act 10 of 1999). The Act established the Board as a governance structure to oversee the operation of PanSALB. The Board is appointed by the Minister responsible for Arts and Culture for a term of five years. Members are eligible for reappointment for a further one term only.
The Minister of Arts and Culture, Hon Mashatile, appointed an ad hoc committee which facilitated the process of inviting the general public to nominate persons for the appointment to serve on the Board. All nomination documents including curriculum vitae of nominees were submitted to the National Assembly (ATC No 14-2013, published on 21 February 2013) and were subsequently referred to the Portfolio Committee on Arts and Culture for processing.
2. Short-listing
The Portfolio Committee received 69 nominees. As mandated by section 5(3)(b)(i-ii) of the Pan South African Language Board Act the Committee compiled a shortlist of the following 25 candidates who were invited to an interview:
| | |
|Number |Name of Candidates |
|1 |Mr MJ Mohoto |
|2 |Prof JJ Malan |
|3 |Ms S Singh |
|4 |Mr MA Zwane |
|5 |Adv LK Ramadi-Adebola |
|6 |Mr J Blose |
|7 |Ms S Mkhize |
|8 |Dr PH Nkuna |
|9 |Mr BJ Skhosana |
|10 |Mr TP Ntuli |
|11 |Ms PS Sobahle |
| 12 |Mr TJ Nemutanzhela |
|13 |Mr RC White |
|14 |Mrs CM Mayevu |
|15 |Dr HS Theys |
|16 |Dr PA Phindane |
|17 |Prof MAB Nyamende |
|18 |Mr PDK Makhudu |
|19 |Dr Z Jama |
|20 |Dr M Alberts |
|21 |Mrs M Arries |
|22 |Prof M Madiba |
|23 |Prof WAM Carstens |
|24 |Mrs N Levin |
|25 |Mr GM Isaka |
3. Interviewing Panel
Members of the Portfolio Committee on Arts and Culture conducted interviews on 24, 25 and 28 May 2013. From the 25 candidates who were short listed, 24 candidates were interviewed. One candidate, Mrs M Arries, withdrew from the interview.
| | |
|Name of the Committee Member |Political Party |
|Hon TB Sunduza (Chairperson of the panel) |African National Congress |
|Hon MR Morutoa |African National Congress |
|Hon DW Mavunda |African National Congress |
|Hon LN Moss |African National Congress |
|Hon TLP Nwamitwa- Shilubana |African National Congress |
|Hon E van Schalkwyk |Democratic Alliance |
|Hon N van den Berg |Democratic Alliance |
|Hon P Ntshiqela |Congress of the People |
Hon L Khoarai (ANC); Hon FF Mushwana (ANC); Hon SZ Ntapane and Hon HS Msweli (IFP) only attended interviews held on 28 May 2013.
4. Recommendations
In terms of section 5(3)(b)(iii) the Portfolio Committee on Arts and Culture recommends that the National Assembly adopts the following nominees to be considered by the Minister responsible for Arts and Culture for the appointment to the Board of the Pan South African Language Board:
| | |
|Number |Name of Candidates |
|1 |Ms PS Sobahle |
|2 |Dr PA Phindane |
|3 |Mr PDK Makhudu |
|4 |Prof MAB Nyamende |
|5 |Mrs N Levin |
|6 |Prof WAM Carstens |
|7 |Dr M Alberts |
|8 |Mrs CM Mayevu |
|9 |Prof M Madiba |
|10 |Mr TJ Nemutanzhela |
|11 |Mr TP Ntuli |
|12 |Dr PH Nkuna |
|13 |Dr Z Jama |
|14 |Mr RC White |
|15 |Prof JJ Malan |
|16 |Mr MA Zwane |
|17 |Adv LK Ramadi-Adebola |
|18 |Mr J Blose |
|19 |Ms S Mkhize |
|20 |Dr HS Theys |
The Portfolio Committee on Arts and Culture notes that Mr. MA Zwane has a temporary contract as a Caretaker Chief Executive Officer of PanSALB. If the Minister responsible for Arts and Culture chooses to appoint him to the board he must resign with immediate effect and thus his contract be terminated.
Report to be considered.
THURSDAY, 8 AUGUST 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
1. Draft Bills submitted in terms of Joint Rule 159
1) National Environmental Management Laws Amendment Bill, 2013, submitted by the Minister of Water and Environmental Affairs.
(2) National Environmental Management: Waste Amendment Bill, 2013, submitted by the Minister of Water and Environmental Affairs.
(3) National Environmental Management: Protected Areas Amendment Bill, 2013, submitted by the Minister of Water and Environmental Affairs.
4) National Environmental Management: Air Quality Amendment Bill, 2013, submitted by the Minister of Water and Environmental Affairs.
Referred to the Portfolio Committee on Water and Environmental Affairs and the Select Committee on Land and Environmental Affairs.
National Assembly
The Speaker
1. Referral to Committees of papers tabled
1) The following paper is referred to the Portfolio Committee on Women, Children and People with Disabilities for consideration:
(a) Report of the Commission for Gender Equality on Position Paper on Sex Work 16 January 2013.
2) The following paper is referred to the Portfolio Committee on Transport for consideration and report:
(a) Updated Strategic Plan of Road Traffic Management Corporation for 2013-17 and Annual Performance Plan for 2013-14.
3) The following paper is referred to the Portfolio Committee on Water and Environmental Affairs:
a) Yearly Report to Parliament on international environmental instruments for 2012-13, tabled in terms of section 26(1) of the National Environmental Management Act, 1998 (Act No 107 of 1998).
4) The following papers are referred to the Portfolio Committee on Trade and Industry:
a) General Notice No 463, published in Government Gazette No 36432, dated 10 May 2013: Final prohibition on the use of certain wards and emblems, in terms of section 15 (1)(b) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
(b) General Notice No 464, published in Government Gazette No 36432, dated 10 May 2013: Proposed prohibition on the use of the South African Music Awards Logo, in terms of section 13 of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
5) The following paper is referred to the Portfolio Committee on Justice and Constitutional Development for consideration:
(a) Report on the provisional suspension of Magistrate J F van Schalkwyk, Chief Magistrate at Kempton Park, in terms of section 13(3)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Trade and Industry
a) Integrated Strategy on the Development and Promotion of Co-operatives for 2012 – 2022.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Justice and Constitutional Development on the Protection of Personal Information Bill [B9 - 2009], dated 24 July 2013
The Portfolio Committee on Justice and Constitutional Development, having considered the Protection of Personal Information Bill [B9B – 2009], recommitted to it by the National Assembly on 18 June 2013, reports the Bill with amendments [B9C – 2009].
Report to be considered.
MONDAY, 12 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Introduction of Bills
1) Ms M Smuts
a) Constitution Nineteenth Amendment Bill [PMB 7 – 2013] (National Assembly – proposed sec 74) (see below) [Bill and prior notice of its introduction published in Government Gazette No. 36608 of 28 June 2013.]
Introduction and referral to the Portfolio Committee on Justice and Constitutional Development of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM. The Bill may only be classified after the expiry of at least three parliamentary working days since introduction.
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2. Referral to Committees of papers tabled
Please note: The following entry replaces item 2 of the Referrals to Committees of papers tabled in the ATC of 20 June 2013, on page 2941.
1) The following paper is referred to the Portfolio Committee on Defence and Military Veterans for consideration:
a) Draft regulations on criteria that military veterans have to meet in order to qualify for benefits, made under section 24(1) and tabled in terms of section 24(3) of the Military Veterans Act, 2011 (Act No 18 of 2011).
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Finance
(a) Report and Financial Statements of the Land Bank for 2012-13, including the Report of the Auditor-General on the Consolidated Financial Statements of the Land and Agricultural Development Bank of South Africa (Land Bank) for 2012-13 [RP 168-2013].
TUESDAY, 13 AUGUST 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bills
1) Superior Courts Bill [B 7B – 2011] – Act No 10 of 2013 (assented to and signed by President on 12 August 2013).
TABLINGS
National Assembly and National Council of Provinces
1. The Speaker and the Chairperson
(a) Consolidated General Report of the Auditor-General on the Local
Government Audit Outcomes for 2011-12 [RP 198-2013].
2. The Minister of Finance
(a) Agreement between the Republic of South Africa and the Argentine Republic regarding Mutual Assistance between their Customs Administrations, tabled in terms of section 231(3) of the Constitution, 1996.
(b) Explanatory Memorandum to the Agreement between the Republic of South Africa and the Argentine Republic regarding Mutual Assistance between their Customs Administrations.
COMMITTEE REPORTS
National Assembly
1. Report of the Standing Committee on Finance on the Banks Amendment Bill [B43 - 2012] (National Assembly- section 75), dated 13 August 2013:
The Standing Committee on Finance, having considered the Banks Amendment Bill [B43 - 2012] (National Assembly – section 75), referred to it, and classified by the JTM as a section 75 Bill, reports the Bill with amendments (B 43A – 2012).
Report to be considered.
2. Report of the Standing Committee on Finance on the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B12 - 2013] (National Assembly- section 77), dated 13 August 2013:
The Standing Committee on Finance, having considered the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B12 - 2013] (National Assembly – section 77), referred to it, and classified by the JTM as a Money Bill, reports that it has agreed to the Bill.
Report to be considered
3. Report of the Portfolio Committee on Police on the Criminal Law (Forensic Procedures) Amendment Bill [B 9 – 2013] (National Assembly – sec 75), dated 13 August 2013:
The Portfolio Committee on Police, having considered the subject of the Criminal Law (Forensic Procedures) Amendment Bill [B 9 – 2013] (National Assembly – sec 75), referred to it and classified by the JTM as a section 75 Bill, reports the Bill with amendments [B 9B – 2013].
Report to be considered.
4. Report of the Portfolio Committee on Human Settlements on the oversight visit to the North West province, dated 24 October 2012
The Portfolio Committee on Human Settlements (the Committee), having conducted an oversight visit to the North West from 17 to 22 June 2012 in relation to the policy and legislative compliance and the implementation of the human settlements strategic plans, projects and programmes, reports as follows:
1. Background
In terms of the RSA Constitution of 1996 and Parliamentary Rules, the Committee has an obligation to conduct oversight over any executive organ of State that falls within its portfolio. In line with this mandate, the Strategic Plan of the Committee undertakes to conduct provincial visits to oversee the implementation of project plans and programmes. The Committee also undertakes to evaluate progress made and identify any challenges encountered in the implementation processes. Furthermore, the Committee seeks to promote and enhance co-operative governance and intergovernmental principles in the delivery of sustainable human settlements. In order to fulfil its strategic plan objectives the Committee conducted an oversight visit to the North West province from 17 to 22 June 2013. .
1.1 Objectives of the visit
The objectives of the oversight visit were to receive a briefing from the MEC and the provincial department responsible for human settlements on the following:
• Implementation of a comprehensive integrated human settlements strategy in the province;
• Performance in meeting service delivery targets set for 2011/12 and challenges encountered and ascertain whether there has been value for money;
• Plans, programmes and progress in the implementation of rural sanitation;
• Plans, programmes and service delivery targets for 2012/13;
• Progress report in support of the disaster affected communities;
• Blocked projects and plans to unblock them;
• Status on audit of poorly constructed houses and cost implications for rectification of such houses;
• The number of informal settlements, the plan and the progress in upgrading such settlements, including community residential units (CRUs);
• Progress in the implementation of the Farm Worker Assistance Programme;
• The co-ordination and management of the beneficiary list and incorporation of backyard dwellers to the provincial housing data base;
• Use of alternative technologies in construction of houses;
• The North West Housing Corporation closure;
• The role played by the private sector in service delivery.
2. Delegation
The multiparty delegation consisted of Ms BN Dambuza (ANC), Chairperson of the Committee and leader of the delegation; Ms JE Sosibo (ANC); Ms D Dlakude (ANC); Ms G Borman (ANC); Ms N Mnisi (ANC); Mr JM Matshoba (ANC); Ms P Duncan (DA); Mr S Mokgalapa (DA) ) and Mr KP Sithole (IFP).
2.1 Officials from the national Department of Human Settlements
The delegation was accompanied by Mr L Jolobe, Chief Director: Transformation; Ms M Pine, Office Manager: Transformation; Mr S Solomon, Deputy Director: Parliamentary Service and Stakeholder Liaison: Office of the Director-General; Ms N Yako, Assistant Director: Cabinet Cluster and Parliamentary Liaison: Office of the Director-General; Mr N Cele, Deputy Director: Project Implementation Support; Mr A Matshego, Deputy Director: Sector Information Management; Mr M Lelosa, Director; Mr R Kolokoto, Deputy Director; Mr T Madonsela; and Mr S Habib, Deputy Director.
2.2 Members of Provincial Legislature and officials as well as officials from the provincial Department of Human Settlements
The delegation was accompanied by the Chairperson of the Standing Committee, Mr H Mahlakeng; Ms TB Motshegare, Member of the Provincial Legislature, and Ms C Rens, Administrator: Standing Committee.
It was also accompanied by Mr T Mokhatla, Head of Department: Human Settlements; Mr N Mgengo, Chief Director: Human Settlements; Mr A Manuel, Manager: Strategic Planning and Ms E Mhlanga, Protocol Officer.
3. Summary of the purpose of the visit
Ms BN Dambuza, leader of delegation briefly explained the purpose of the oversight visit. She informed the meeting that the delegation was executing its constitutional mandate as guided by the Rules of Parliament and other legislative reforms to promote cooperative governance, and intra and inter-governmental relations. The visit was underpinned by the need to establish what legislative provisions served as obstacles to service delivery. Moreover, it sought to evaluate the progress made with regard to the attainment of Outcome 8 and whether, the delivery agreements with the Department of Cooperative Governance and Traditional Affairs and the Department of Water Affairs were implemented for the purpose of Outcome 8.
3.1 Executive summary of the oversight visit
The delegation visited the North West province from the 17 to 22June 2012. The visit covered all four-district municipalities namely: Dr Kenneth Kaunda; Dr Ruth Mompati; Dr Modiri Molema and Bojanala. The delegation met with MEC for Human Settlements and Public Safety, Mr NPD Maloyi. At the time of the oversight visit the province was experiencing service delivery protest. Some of the protests were due to incomplete and sinking houses due to lack of or poorly conducted geotechnical studies. Tranche payments were made by the province to various municipalities for building of houses; however municipalities also made tranche payments to contractors who served as implementing agents. Many of the contractors failed to build houses or disappeared subsequently upon receiving the tranche payments, which gave rise to blocked projects. The province reported that tranche payments were no longer being made. Conditional grant was used for rebuilding the old houses instead of building new houses (new old houses) and that impacted on targets being not met. The province undertook to have a clean audit by 2014, following the qualified audit for past financial years. There were areas that were still using the bucket system (informal settlements) and in other areas using Ventilated Pit Latrine (VIP) toilets. An amount of R57 million was allocated during 2012/13 financial year to cater for proper sanitation. The said amount was not used by the time of the visit (second quarter).
A service provider was appointed for the winding down process of the North West Housing Corporation (NWHC) and was working closely with the office of the Public Protector. The process was challenged by the absence of asset register for the corporation. The province was considering appointing a Commission of Enquiry to further investigate the past performance of the corporation. An amount of R11 million has been spent on the winding up process and the costs were expected to escalate.
4. Presentation by the provincial department at Hotel School in Mafikeng
4.1 Welcoming remarks by the Member of the Executive Council (MEC)
The delegation was welcomed by the MEC for Human Settlements and Public Liaison, Mr PDN Maloyi. The MEC assured the delegation that even though there were delivery protests spread all over the province the delegation was safe and secured. He also informed the delegation that he was only seven weeks in his new deployment. The Chairperson of the Standing Committee on Human Settlements was also seven days in the office. He informed the delegation that the department was faced with various challenges of service delivery protests. The department undertook to have a clean audit by 2014.
Most of the municipalities were still not providing relevant documents for audit purposes, thus resulted to qualified audit report for three consecutive financial years. In Potchefstroom and Swartruggens, houses were sinking due to dolomite. That was due to failure of municipalities to conduct proper geotechnical studies. Incomplete houses in most areas of the province were due to the failure of contractors, contactors disappearing with money and inferior workmanship. Some of the contractors’ contracts were terminated and appointed credible contractors. Some houses were allocated in 2002, but still not completed. The conditional grant was used for the rebuilding of old houses instead of building new houses. The MEC informed the delegation that the challenges of service delivery required a concerted collaborative effort from all stakeholders.
The MEC informed the delegation that the North West Housing Corporation was a great challenge that was delaying the delivery in the province. He further informed the delegation that the decision was taken to wind-down the corporation, but not all the necessary steps were taken into account. The Corporation was formed through the Provincial Act, which was not repealed and no documents were available. Properties that were bought by individual persons were never transferred to the owners and there were no title deeds issued. The report received indicated that one house was sold to more than three people by unregistered estate agents. It was alleged that an individual bought the whole township for R2 million of which proper documents were not found. The North West Housing Corporation had appointed unregistered and scrupulous company to sell houses for it and the money never reached the Corporation. In some instances an individual purchased two townships with one cheque.
4.2 Presentation by the Head of Department, Mr T Mokhatla
Mr Mokhatla informed the delegation that the department was in a process of developing sustainable Human Settlements but was relying on the cooperation of the municipalities to release land. The municipalities were also expected to deliver bulk serves; however, they would prioritise other issues not related to human settlements. He suggested that provincial departments should be mandated to electrify completed state subsidy houses and claim later from Eskom. The request was because beneficiaries were not able to occupy their houses as electricity was not yet installed and that led to vandalism of the units and or illegal occupations.
The province had planned to deliver 13 853 units for 2011/12 and the total delivery by March 2012 was at 16 333 with a variance of 2 480. During the 2010/11 financial year the department had under-spent by (12%) of its total Conditional Grant allocation. Subsequently a roll-over of R148, 810 million was requested. An amount of R100 million of the initial voted allocation was also transferred to Merafong Local Municipality due to cross bounder issues and this resulted in the grant being reduced. The housing disaster relief grant for rural intervention was R15 840 million, only 15% of the grant was spent.
An Expenditure Recovery Committee was established for 2011/12 financial year to monitor the conditional grant expenditure on weekly basis. After the department had noticed that it might not spend a turnaround master plan was developed to ensure the attainment of delivery targets and spending of the allocated budget. Based on the turnaround master plan the department achieved 100% of expenditure of conditional grant and rolled over funds.
Mr Mokhatla reported that in a MinMec meeting that was held the national Department of Human Settlements adopted a Macro Coordinated and Alignment Framework which seeks to foster cooperation and joint planning. The purpose of the framework was to promote and enhance the coordination of the sector departments and alignment of services such as bulk service provision, social amenities and other community across sectors.
The provincial department had enhanced its intergovernmental relations with delivery partners that were municipalities, contractors or developers. It had also signed implementation protocol with Social Housing Regulatory Authority (SHRA) and the National Housing Finance Corporation (NHFC) for rental stock. The development of provincial plans with a particular focus on the conditional grant business plan was based on a number of key aspects like the consideration of municipal Integrated Development Plans (IDPs) and the provincial Housing Chapters; integration of existing information initiatives and sustainable human settlements development and asset creation. The 2012/13 Departmental Conditional Grant Business Plan, Project List and Cash Flow projections were developed in full consultation with municipalities. The provincial department had planned to deliver 10 932 houses and rectify 1 285 units in 2012/13 financial year. The units include all the district municipalities.
The provincial department had conceptualised a North West Informal Settlement Upgrading Programme in 2007, with a view to eradicate informal settlements and establish a baseline of informal settlements in the province. The province had 140 informal settlements with 76 000 temporary structures. An Atlas informing the informal settlements upgrading was completed. An amount of R230 million was set aside to develop those areas (informal settlements).
The province reported that it was not doing well on the rental stock; however, it has signed an implementation protocol with SHRA. The affordable rental Housing Programme was one of the initiatives towards the eradication of housing backlog, providing rental housing opportunities for low income persons who cannot be accommodated in the formal private rental market. The department had a target of 20 000 units per annum over a four year period (contribution towards Outcome 8) and the two rental housing programmes have been introduced in the form of Community Residential Units and Social Housing. There were 100 community residential units that were under construction in the City of Tlokwe Local Municipality. Those units were scheduled for completion by July 2012.
The provincial department reported that state owned entities and state departments were known to own several pieces of land that were closer to urban centres and were underutilised. An implementation protocol was signed with delivery partner Housing Development Agency (HDA) and 259.67 hectares of land were purchased in Ventersdorp for R14 million. An amount of R25 million was set aside to purchase more land parcels.
Three municipalities were assessed for level 1 accreditation by the Compliance and Capacity Assessment Panel. However, the national Department of Human Settlements targeted to accredit one municipality, Rustenburg. With regard to the implementation of Finance Linked Individual Subsidy Programme (FLISP), the department reported that 124 beneficiaries have been approved and an amount of R23 461 million has been set aside for the programme. Implementation protocol has been signed with the National Housing Finance Corporation (NHFC).
The role of private sector partnership was crucial as it was enabling the provincial department to implement various housing programmes for various categories of beneficiaries. The provincial department has engaged the mining sector in the Province, i.e. Impala and Anglo mines through FLISP and over than 1 300 employees have benefited on the programme. Further engagements were being held with other mining houses such as HERNIC in Brits with the view to address challenges of De-Kroon informal settlement as part of informal settlement upgrading programme. Working relationship with National Housing Finance Corporation had been established for the implementation of the FLISP programme and an amount of R24 million has been committed to the programme for 2012/13. Impala committed to deliver 2 500 units and such a benefit would be extended to other qualifying beneficiaries such as public servants, etc.
Farm Worker Assistant programme has been implemented through the Department of Rural Development and Land Reform and an amount of R159 million has been committed. A portion of land has been acquired in the Ventersdorp area to provide suitable human settlements to some of the beneficiaries who come from the neighbouring farm area. The People’s Housing Process Programme was implemented in two projects Lethabong with 96 and Ditsobotla with 710 units. The people were beginning to establish housing cooperative and stockvels in an endeavour to create their own schemes. Jobs were created during the implementation of the programme as well as the skills were transferred.
The provincial department reported that there was no disaster fund allocated during the previous financial year. The provincial department was using the Human Settlements Development Grant (HSDG) to address the issues of disasters. In Mooinooi, Madibeng municipality feasibility studies were conducted for 500 units that were affected by disasters. In 2006, a contractor was appointed to build 1000 housing units for families who were victims of a natural disaster in Taung. It was reported that the contractor only built one (1) house and disappeared after receiving a tranche payment of R87 million. In Greater Taung Local municipality, contractors were appointed to build 263 units during 2010/11 financial year. The Special Investigations Unit (SIU) allegedly refused to furnish the provincial department with a progress report, because the Department is also subjected to the ongoing investigation. The provincial department reported that it received its Disaster Relief Funds very late in the 2011/12 financial year and could not spend their allocation, but have subsequently applied to have the funds rolled over for the 2012/13 financial year.
The number of blocked projects was not provided instead a number of reasons that contributed to projects being blocked were cited. The province reported that tranche payments were made to various municipalities for the building of houses, however, municipalities also made tranche payments to contractors who served as implementing agents. Many of the contractors disappeared subsequent upon receiving the tranche payments, which gave rise to blocked projects, irregular and unauthorized payments. The province however confirmed that the tranche payments practise has been stopped by the current MEC. In Kothlong municipality tranche payment was made to a contractor and a project was approved and later discovered that the land was not owned by the municipality and the project became blocked. The provincial department undertook to investigate extensively all the municipalities that failed to account for the money that was transferred to them. It also acknowledged that the process would be costly; nevertheless, it was hoping to get good results.
It was also stated that the rectification programme was the competency of the national department. The provincial department reported that conventional housing delivery method was used in most of the projects in the province. However, there were approximately 176 beneficiaries identified, who benefit from the use of innovative technology system. The contractor was already appointed and occupied site. It was reported that the establishment of the Housing Needs Register was underway. The system would be linked to the national department database and will in future inter-phase with the Department of Home Affairs. It would be allocated at municipalities with the server at the provincial department.
The provincial department stated that sanitation was a new mandate that was implemented by national department. The bucket system had been eradicated in most areas of the province. Nonetheless, the system was still being used in the informal settlements of Klerksdorp and the community of Popo Molefe Informal Settlement (in Madibeng Municipality) was compelled to use open defecation or share temporary toilets that were allocated. However, those temporary toilets were not emptied constantly. An undertaking was made by the national department to supply the Committee with a detailed report on the Rural Housing Infrastructure Programme. The delegation was disappointment to learn that the national department had assigned R57 million for 2012/13 financial year for the provision of sanitation in North West province, but failed to utilise such funds in the first quarter of the financial year. The national department was requested to provide a detailed report to the Committee on the state of sanitation in the province, including the expenditure plans of the R57 million allocated to address sanitation challenges in the province. The provincial department had committed itself to provide Jojo tanks in all new generation houses for water harvesting that can also be use for irrigation purposes (food security gardens).
4.3 Winding down of North West Housing Corporation (NWHC) - by Adv Mogale
Adv Mogale indicated that the process of winding down the North West Housing Corporation was initiated in 2009. The process was to be overseen by the provincial Department of Human Settlements. No due diligence report was conducted. The service provider was appointed and terms of reference were signed, and the service provider assumed its duties on the 15th November 2010.
The service provider was expected to mainly compile an asset register, prepare financial statements and audits, close the corporation legally and financially manage the revenue of the institution. The service provider was expected to wind down the process within a period of a year. Adv Mogale indicated that, because there was no due diligence conducted, it was even more difficult because terms of reference that were set, were not enabling the service provider to achieve its mandate, and because the challenges were immense.
The service provider was a joint venture comprising of three categories: the financial, the legal and the technical sections. The technical section’s responsibility was to look for properties of the institution. They have used all means including conducting the desktop research, interacting with municipalities and communities. There were no records in the institution; the Department of Public Works was contacted to establish if they could have any records. Unfortunately, the information that was available was neither reliable nor authentic.
It was further indicated that the Board of Directors was dormant and the department has a duty to resuscitate the board, as it was the only accounting authority that could assist at the time. The employees who were with the corporation were transferred to different departments because the institution had financial problems. By the time of the visit, the technical section had collated 33 000 properties classified as old and new stocks and or vacant land. Old stocks were zero related houses and were built during the Bophuthatswana era.
Adv Mogale indicated that Cabinet took a resolution that the old stock houses should be handed over beneficiaries rather than selling to them. It was also found that other areas that were in the then Bophuthatswana, some beneficiaries had deed of grants. However, the deeds given to beneficiaries were not given as full title deed. Beneficiaries were given a perpetual possession as condition in the title deed. The executive committee and provincial department agreed that those deeds must be given a full status.
The financial section’s responsibility was to organise financial statements and oversee the audit process. This was done due to the finding that there were no authentic documents. As a result this posed a biggest challenge. It was also observed that there were no assets registers.
The third section was the legal section. The Department of Human Settlements did not know that there was an influx of litigation matters against the corporation. A repeal bill was drafted and taken to the state law advisory, but, unfortunately it could not be tabled before the legislature because it lacks full record of assets and liabilities as per requirement. It was then put aside for a while and concentrated on cases that were coming forth. The cases were similar and had high amounts of money that creditors were claiming against the corporation. The legal section came up with a strategy of how the cases could be dealt with, and one of the cases were a three storey building that an individual claimed that he had bought on auction. On the eve of the case being heard, the legal representative that the department had, told the department that they do not have a case. But, when the team looked in to the issue, it was discovered that the department had a strong case.
The case was continued and it was ruled in favour of the department. An amount of R22 million was saved from this outcome. That case was taken as a test for the department and could be used as a reference in other cases. The challenge was that the management did not adhere to regulatory frameworks; there was non-compliance of procedures and of awarding tenders.
The greatest challenge was that, the beneficiaries that were disgruntled because the problem has been persisting for many years. In other instances one property was sold to more than five people. The other challenge was that, all the people paid money to the corporation but the money could not be traced. All those people had complied with the requirements but they could not get tittles deeds or security tenure. There was also a challenge of bogus agents going around telling people that they were acting on behalf of the corporation.
An investigating team has been established with the South African Police Service (SAPS) and the Commercial Crimes Unit. A case had been opened against those bogus agents. One of them was arrested and the case was still sub judice. There was no township register. The other challenge was that houses have been allocated to certain individuals and some of them had passed on. Adv Mogale indicated that in such cases, houses were to be transferred to families and they were required to execute the Administration of the Estate.
The service provider went to the municipalities concerned and assisted with establishment of township register. Another challenge was that other townships fall under the jurisdiction of other provinces, while the stock in those provinces was registered under the provincial department. Gauteng came forth and assisted with the occupancy survey and that was really adding value to the service provider. When the service provider came on board, a moratorium was placed; stating that, none of the asset transfers to be effected until further notice, this resulted in a new challenge.
In the compilation of assets registry, approximately 63 000 properties were uncovered and had already been transferred. It was discovered that other properties were fraudulently transferred and there were no records to trace all those. There were law firms that had money in their trust accounts but the money could not be transferred to the corporation nor effecting transfers to beneficiaries. The provincial department had decided that the former board members should not be charged with fiduciary duties so that they could also assist in resolving those challenges.
Adv Mogale indicated that they were at a stage where they were not sure if the corporation was solvent or insolvent, because there was, no baseline and the assets could not be located. The office of the Public Protector was also assisting due to the influx of queries.
4. Deliberations by delegation
The delegation appreciated the sincerity and transparency by the MEC on the issues of service delivery challenges and further welcomed the extensive presentation by the HOD. The delegation enquired about the strategy to recover funds that were paid to contractors, as tranche payments. The delegation established whether there was a relationship between the provincial department and the National Home Builders Registration Council (NHBRC) in terms of quality assurance compliance. The winding-down of the NWHC was wearisome as it has taken too long to finalise. Therefore, the Commission of enquiry was most welcomed and persons responsible should account. Another concern was the issue of unspent funds (MIG) on bulk infrastructure by the municipalities. The delegation raised a concern on the fairly low expenditure of about 15 per cent on rural housing development yet the province is a rural set-up. The delegation sought clarity as to how many houses were due for rectification and the number of units rectified as from 2009/10 to 2011/12. The delegation enquired whether the housing needs register was aligned with the Housing Subsidy System in the national Department of Human Settlements. The delegation was concern about the lack of progress on Community Residential Units programme while there was budget allocated for the programme. The delegation enquired about the cost of the winding-down process of the NWHC and on which budget was the project funded from.
The delegation sought clarity on the number of families who were to benefit from the disaster programme as well as the number of units that were affected. The delegation ascertains the number of beneficiaries to benefit from the FLISP programme. The delegation requested the provincial department to furnish a detailed report on the performance of RHIP during the previous financial year. The Committee sought clarity on how many informal settlements have been upgraded on what form.
5. Responses by the provincial department
The provincial department reported that all projects were taken over from the municipalities, and it was only Moses Kotane that was not completely taken over. With regard to CRU, the provincial department reported that 100 units were under construction and would be finalised by July 2012. It was reported that due to lack of information from some municipality, the provincial department would take costly exercise to recover the tranche payment made. With regard to NWHC, the old stock was to be handed over to beneficiaries. The new stock will be sold to the occupancy. The power of attorney would be taken by the Premier and the houses would be registered on the deceased name and later transferred to their beneficiaries. The provincial department reported that quarterly meetings were held with NHBRC.
The funds for winding down the NWHC were sourced from the Department’s savings. The Auditor-General proposed that the Executive Committee (Exco) should fund the winding down of the Corporation.
5. Meeting in different districts and local municipalities
5. 1 Meeting at Dr Modiri Molema Council Chambers – Mafikeng municipality
The delegation was welcomed by the Chief Director, who later handed over to the Regional Manager to present the project profile of the Municipality. The delegation was later joined by the leadership of the Mafikeng municipality.
The Regional Director presented the profile of Ditsobotla project. He informed the delegation that the project had 48 units for people with special needs. The project was approved in 2008.
Ditsobotla People’s Housing Process project with 710 units and were allocated into four villages. The developer was challenged by dolomite risk as discovered by Geographical Information System (GIS) studies that were conducted. Ventilated Pit Latrine (VIP) toilets were provided in all rural villages.
Mafikeng Villages project with 1 000 units, started in 2011 and envisaged to be completed in October 2012. There were 381 units completed and an amount of R53 million was already been spent. The project was aimed at eradication of informal settlements in around the Rooigrond Correctional Services. The project was not enrolled with National Home Builders Registration Council (NHBRC) and internal bulk services were not applicable and VIP toilets were installed. The money for the project was transferred to Tlokwe Municipality and later transferred to the developer.
The delegation proposed that the municipality and the provincial department should brief the Committee on the tranche payment in Parliament. The date of the meeting was to be communicated.
5.2 Meeting at Dr Ruth Mompati District Council Chambers
The Chief Director presented human settlements projects in the district. It was indicated that there were approximately 106 villages in the area of Taung. The area has been identified as being prone to floods. The delegation was informed that in Vryburg Ext 25 in Naledi local municipality there was a project where 1 000 units were approved. Construction of the houses started in 2009, during the time, the municipality was an implementing agent. The project was supposed to start in December 2011 but delayed due to challenges in the appointment of service provider. The project was approved at a total amount of R56.2 million; expenditure was at R540 000 at the time of the visit and the balance of R55.7 million. There were no units completed by the time of the visit. It was reported that tranche payments were made by the province to the municipality. It was reported that 405 units were completed; however the audit revealed that they required rectification. Furthermore, those units were illegally occupied. It was further reported that the district area was challenged by the discovery of traces of dolomite after a borehole had been drilled near the area where development was to take place. The project had to stall until the study of the stern of the dolomite was complete.
In another village the contractor was supposed to construct 3000 units and R87 million was paid towards this project. It was indicated that when the province took over, a lot of work had to be done in resuscitating the project and that was to be done in phases. In the previous financial year the project was taken to the Special Investigating Unit (SIU) to try to recover whatever that has been paid to the contactor because of the shoddy workmanship. It was further stated that the province will have to take care of all the issues that were not taken care-off by the previous contractor including the Geographical Information System (GIS) studies. Then, there were 100 foundations reported to have been completed in that project.
The municipality was stricken by disasters in 2006/07 financial year. Various villages were affected. An emergency housing project was approved consisting of 2 000 units which forms was part of disaster project. The units were divided amongst four women contractors that were appointed. An amount of R87 million was allocated with the aim of responding to disasters. With regards to sanitation, Ventilated Pit Latrines were to be installed. Unfortunately, one contractor completed its units. Some had challenges varying from dolomite challenges and among others.
In greater Taung, Ba Ga Mothibi village, there were 21 subsidies approved and 18 units were reported to be completed by the time of the visit. This was called War on poverty project. It was reported that VIP toilets were to be installed.
In Pampierstad rectification, it was reported that the project was initiated in 2002, consisting of 900 units approved. The units were poorly constructed and an audit was conducted. The results revealed that out of 900 units, 578 units required rectification. It was reported that rectification was completed.
In Boitomelong Ext 5, it was reported that the project started in December 2011. There were 257 units that were approved. The project value was R14, 3 million and by the time of the visit, expenditure was at R7, 4 million.
The delegation requested a full report on the criteria used to screen the developers. It further established whether the provincial department was able to recoup monies from the constructors producing poor workmanship. Finally, the delegation agreed that the information presented was not convincing and either or in monetary value and units delivered. The delegation agreed that a proper report should be compiled and submitted to the Committee.
5.3 Meeting at the City of Matlosana local municipality
The Chief Director presented the project profiles. He reported that Jourberton 20 was a Breaking New Ground (BNG) project. The project was an informal settlements upgrading with 975 units. It was indicated that sites were serviced and there was water connections and access roads. Approximately, there were 130 units that have been approved. The project was allocated an amount of R9 million. Houses that were completed have been occupied. Bulk water and water reticulation was already in place. House specifications were 45m² two bedrooms, bath, toilet and a basin.
Jakaranda farm worker project was a project that was going to accommodate 64 families from the farms. An amount of R4, 5 million was allocated for the construction of 64 units and 63 beneficiaries were approved. It was reported that the Department of Rural Development and Land Reform purchased land for the beneficiaries. There was no bulk sewer and the provincial department opted for integrated VIP system. The houses were 45m², two bed-roomed houses with a kitchen. The project was constructed by a woman contractor.
Jourberton Ext 24 was a pilot project that was aimed to built 1 752 units, Khuma Ext 11 was aimed at building 316 units. It was reported that in Khuma Ext 11, there was a trace of dolomite; however the Council for Geoscience recommended that the construction should continue. In Kanana had 2 600 units to be constructed. It was reported that contractors were appointed.
Tlokwe Community Residential Units was reported to have 100 units which were aimed to be completed by July 2012.
The delegation was concerned about the number of units that were given to one contractor Toro ya Africa who seemed to fail to built and some houses showed poor workmanship. The developers in the province seemed to be administering everything i.e. beneficiary list management and construction of houses. The delegation requested the provincial department to furnish it with a full report clarifying reasons for the project to delay, the number of units to be constructed and the contractors appointed. The delegation was concerned about the non involvement of NHBRC at the initial stages of the projects. Furthermore, the delegation was concerned about the balance of R18 million in Jakaranda while houses were completed. It was proposed that 30% of work should be given to women and youth contractors. The delegation was concerned about the provision of VIP toilets to farm dwellers whereas the farm owners were utilising waterborne system and that was viewed as some kind of discrimination.
The Chief Director reported that the provincial department had a practice of giving the developer the function of beneficiary management as well as the allocation of houses but it was since stopped by the MEC. The provincial department later took a decision that it would manage the beneficiary list. That was due to the fact that the provincial department had trained staff to utilise the Housing Subsidy System. It was reported that there were no accredited municipalities to handle beneficiary list but they were tasked to deal with data capturing.
The Chief Director reported that in Khuma Ext 14, private geographical information system studies were utilised. It proposed that for units to sustain dolomite the units should have aprons and gutters to redirect rain water. It was reported that in Jakaranda the province was obliged to install VIP toilets as there was no bulk infrastructure.
The mayor reported the there was a housing backlog was at 31 000; 14 900 household in informal settlements; some of the areas in Klerksdorp were using bucket system and pit toilets; there were illegal settlements in private owned farm land, with no services at all and some with only on water tap installed.
The provincial department undertook to provide the study of all informal settlements that were upgraded and or receiving services.
The delegation recommended that the province should assist Matlosana in drafting an urgent a plan to access funding from RHIG to address sanitation and water challenges within the municipality.
5.4 Meeting at Bojanala District Municipality
The Acting mayor welcomed the delegation. He informed the delegation that the district was not yet accredited and local municipalities were developing agents. The regional director reported that there were five local municipalities in the district. He then presented seven projects that were Mazista 500; Mothutlung; Boitekong Ext 15; Serelang Ext 1; Redirile; Rasimone and Sunnyway.
5.4.1 Mazista 500, Kgetleng local muncipality
It was reported that Slate is mined at Mazista for roof tiling and other tiling purposes. Some of the mine workers travel each day from Swartruggens to the area whilst others live in old mining houses on the site or in old railway houses and shacks at the former Mazista railway station. These houses and shacks were generally in a bad condition. The owner of the slate mine, Mr. Roelof Brits, donated land for a new housing project for these contract workers. Water is obtained from communal taps while the people were using pit latrines as a means of sewage disposal. The project was approved in 2009 for the construction of 500 housing subsidy units. Toro Ya Africa Consultants was appointed as a turnkey developer. The project was located at Swartruggens to eradicated informal settlements in the area of Kgetleng local municipality. The proposed development has been constructed on Portion 29 of the farm Doornkom 418 JP, Mazista, North West Province. The farm is situated to the west of the R509 provincial road between Koster and Swartruggens. The development falls within the jurisdiction of the Kgetlengrivier Local Municipality and the Bojanala Platinum District. The size of the property measures 89.9805 ha.
5.4.2 Derby 129, Kgetlengrivier local municipality
The project was initially approved for 126 beneficiaries in October 2003. At the time of approval of the project the land was still in the ownership of Department of Public Works. The project was blocked while waiting for transfer process. The transfer process was finalised in November 2009 and in 2010 the project was resuscitated as a special women project. The project was approved in 2009 for the construction of 129 housing subsidy units. An Ikatiseng Property developer was appointed as a turnkey developer. Delay was experience in project preplanning. The project was completed in May 2012. This project forms part of the Women’s build initiative where women contractors were allocated projects to implement
5.4.3 Boitekong Ext 15, Rustenburg local municipality
The Department entered into an MoU with the National Housing Funding Corporation (NHFC) and Impala Platinum to implement the Finance Linked Individual Subsidy Programme (FLISP) in Boitekong Ex 15. The aim of the project was to deliver 1553 units in the area. The land was purchased by the mine from the municipality for residential purposes. Two types of houses were developed in the area. The description of the houses are 60 square meters at the price of R265 000.00 for three-bedroom houses and 50 square meters at a price of R225 000.00 for two-bedroom houses. The mine provides a R75 000 interest-free loan to its members and the rest of the money is financed through a loan from NHFC and the subsidy amount from FLISP. It was reported that the project was valued at R52 million.
5.4.4 Serelang Ext 1, Rustenburg local municipality
On 13 November 2008 Anglo American Platinum and the Department entered into memorandum of understanding to implement FLISP project in Seraleng. The sod turning for project launch was done in April 2009. The project was to construct 1 000 housing units. Phase one of infrastructure was completed by the last quarter of 2010. The infrastructure includes sewer, water, electricity and roads.
5.4.5 Mothutlung, Madibeng local municpality
The project was approved on 21 September 2005 for the installation of Internal Services and the construction of 1000 housing units at Mothutlung Ext 2, within the jurisdiction of the Madibeng Local Municipality. Two show houses were built and during the construction phase the Council was notified that there were no bulk services in the area and MIG funding was applied for and approved. Proconse Consulting Engineers were contracted by Madibeng Local Municipality in 2011 as Project Managers for the installation of bulk services. The engineers have struggled to complete installation of bulk services up to now. Tranche payments were made to the Municipality for the installation of internal water and sewer connections. The contract was subsequently ceded to Homes 2000 (Pty) Ltd by the Municipality. The construction of top structure has started but cannot be completed due to the unavailability of bulk services. The developer has completed the internal services and awaiting bulk for internal connections. Presently the project has registered 927 wall-plates. The wall plates are waiting for completion. The developer cannot complete the houses because beneficiaries cannot move into the houses without ablution facilities, which will create a health hazard. The completion of these houses may also lead to illegal occupation of these houses whilst awaiting completion of bulk services installation.
5.4.6 Rasimone, Rustenburg local municipality
The Department entered into agreement with Tawana Business Projects to construct 50 units in the village of Rasimone. After finalization of a contract with the developer, the project was delayed while the subsidy administration and geotechnical investigation was concluded. In February 2011, the developer was instructed to establish the site plan and start construction of housing units. The project formed part of the women’s build initiative where women contractors were allocated projects to implement. The project was reported as complete. This project participated in the Provincial Govan Mbeki awards in the category of best women contractor projects and won. The project also participated in the national Govan Mbeki Human Settlements awards and won in the category of best woman contractor.
5.4.7 Sunnyway, Madibeng local municipality
The Department and Madibeng Local Municipality entered into an agreement with Sunset Bay Trading 441 for the construction of 1000 housing units and services at Sunnyway Village within the Madibeng Local Municipality. This project is under construction and the developer was finalizing the installation of services and the construction of top structure was anticipated to commence during the second quarter of the 2012/13 financial year.
The construction of proper road infrastructure was also in progress, in order to allow for easy access of public transport to the area and a much higher standard of service to the beneficiaries of this development. The project by its nature is an integrated rural development and will enhance the normal living of people as it would also accommodate different categories of the community and facilities such open parks, sports, picnic facilities and a sustainable fresh produce garden and market might be considered at a later stage. That would strongly contribute towards the Comprehensive Plan for the establishment of Integrated Human Settlements by Government.
5.4.8 Delegation concerns, comments and questions for clarity
The delegation was concerned about the omission of Moses Kotane projects in the presentation yet a request was made to report on all projects undertaken at the municipality. A Member of Parliament deployed in Bojanala district municipality informed the meeting that there was a project consisting of 4 000 units was left unfinished; in Serelang 460 were illegal occupied; houses built under the power line; the communities were complaining that loan houses were not belonging to human settlements but to the mines. She was surprised that Moses Kotane challenges were not mentioned and appealed to the delegation of the Portfolio Committee on Human Settlements to consider revisiting the housing delivery matters in the district.
The delegation requested the district to provide it with the number of informal settlements and plans to upgrade such settlements and budget allocation; programmes and plans in place for rectification programme and the number of housing backlog. The delegation was concerned about the report on Madibeng local municipality on its bulk infrastructure delays whereas there was money for sanitation (RHIG) which had not been used by the province. It was concerned about the beneficiary management as corruption was rife. The delegation enquired when was the municipality going to purchase honey sucker trucks as it seemed that then the number was low. The delegation observed that the relationship between the province and the NHBRC seemed to be boardroom based as it was not visible on the ground. A concern was raised on under expenditure on MIG while the district had challenges of bulk infrastructure.
5.4.9 Responses
The regional director informed the delegation that the district was struggling to get beneficiaries for FLISP projects and only 65 applications received; only 49 of the applicants were approved due to stringent conditions. It was further reported that mines would continue to build houses and allocated people who qualifies to access loans. The district reported that Moreteng project which was build under power line became blocked while was on wall plate and was vandalised. It was reported that it was under resuscitation and the service provider was appointed. The township registration was approved and planned to be finalised by March 2013. On illegal occupation, it was reported that it was a huge challenge as people would go as far as swapping the stands. The eviction process was started and could not get the court order on three occasions. The district was also concerned that it should provide alternative accommodation for the evicted people.
It was reported that the municipality do not own the electricity licence in Mothutlung. In Mazista it was reported that the developer was lobbying for funding, unfortunately the municipality could not agree with the technology. With regards to land issues, it was reported that the study conducted revealed that only 4% of land was owned by the Rustenburg municipality. It was reported that housing units backlog was at 58 000.
The district municipality was concerned that the department of minerals energy was issuing mineral rights to the mines without consultation. The district reported that it had 68 informal settlements consisting of 54 392 shacks. In Rustenburg, it was reported that there were 13 informal settlements consisting of 34 846 informal dwelling. In Madibeng, there were 31, with 15 022 shacks. It was reported that there was a need of three honey sucker trucks for the municipality. It was reported that in the upgrading of informal settlement both the in-situ and relocation were used. The district reported that it had no knowledge of the bucket system.
The delegation noted that district was unable to respond on issue of bucket system. The delegation stated that a Member of Parliament has a Constitutional mandate to execute an oversight on any executive authority on issues pertaining service delivery. Therefore it was recommended that a meeting be convened between a deployed Member of Parliament within Bojanala constituency area, especially Moses Kotane and the province to deliberate on human settlements issues and report outcomes to the Committee within three months.
6. Projects visited by the delegation
6.1 Site visit to Rooigrond informal settlement
The delegation was informed that the settlement was established in 2007. A large number of the Rooigrond community consists of farm workers that were evicted from the farms around the area. The community experience service delivery challenges such as lack or poor basic services, housing, water, sanitation, health services and access to economic opportunities. A decision was taken by the municipality to move the residents 500m away from the correctional services. One of the reasons for moving them was to prevent the smuggling of drugs to the prisoners. The community urged the delegation to assist in reinstating the services such as mobile clinic, internal roads for easy access by ambulance, police, disaster management services and also other services outlined in the indigent policy such as burial of indigent members of the community. The municipality informed the delegation that basic services were provided in the area closer to the correctional facility where the community was requested to move to. The provincial department indicated that the funds were made available for the construction of 1000 units for the Rooigrond informal settlements. However, the funds were moved to another project as the municipality was waiting for Councils’ resolution on the final decision about the settlement.
The delegation resolved that the municipality should communicate with the community and consider their concerns. The municipality should review the decision of moving the community away from the correctional services, as that was unnecessary. It was also resolved that basic services should be provided and VIP toilets should be installed. The municipality undertook to meet the community and discuss the way forward.
6.2 Site visit to Ditsobotla special houses for people with disabilities
The project started in 2008, as the Premier’s initiative to assist people with disabilities who were attending school in the vicinity to be accommodated and to use houses as hostel. The project had 48 units and those houses were 49 m², two bed-roomed, bathroom and open kitchen. The project was enrolled with NHBRC. The terms of the project was that the houses should be transferred to beneficiaries and issued with title deeds. The municipality stated that there was a process in place for transferring the houses to beneficiaries. The old structures that people were previously residing in belonged to the Department of Public Works. Those structures were dilapidated.
Local people were employed as subcontractors for building and painting. The contractor informed the delegation that it had applied for top-up funding to install gutters for water redirecting. The houses were well constructed.
The delegation observed that the houses were not user-friendly as there were no hand rails in the bathrooms and there were baths instead of showers. There were no sinks in the kitchen. Electricity was not yet connected. The beneficiary stated that it was difficult for her to use a bath and she would prefer a shower but they were not consulted. The delegation emphasised that hand rails, shower instead of a bath, sink in the kitchen should be installed. Furthermore, that an apron should be broadening to accommodate wheel chairs beneficiaries.
6.3 Site visit to Ditsobotla People’s Housing Process (PHP) pilot project
A developer was appointed to build houses for the beneficiaries (that is called managed PHP). The municipality was monitoring the construction and was paying the contractor based on the report received from its inspectors. The project was enrolled with the National Home Builders Registration Council. There was electricity in the village, but no water even though water reticulation was done. The water from the boreholes was not enough for the village. There were 31 units that were constructed and there were in different stages i.e. foundation, wall plate and some on roof stage. The communities were using Ventilated Improved Pit (VIP) toilets. The delegation was informed that an amount of R3 million was set aside to resolve water shortages in the village. There were no baths or sinks installed in all PHP houses. It was alleged that houses that were in municipal land had basic services installed but those in tribal land were not provided with such services.
The Community Development Worker informed the delegation that the VIP toilets were installed in 1998 and were not maintained. Sanitation issue was a challenge. The district normally emptied the toilets but the challenge was with disposal and not knowing what to do with it. It was alleged that there was no proper social facilitation. The community was never given a chance to contribute in building of their houses. People that were working in the project were not registered and were victimised, not paid on time.
The delegation was not happy that kitchen sinks, bathrooms and toilets were not provided.
6.4 Site visit to Dihatswane village
Dihatswane is one of the six villages that have been identified for housing developments in the area. A total number of 145 units were planned. It was indicated that the municipality had planned the units to be 150 and they were reduced to 145. The contractor, Mosegedi and Associates built 135 and the construction started in 2011. It was further indicated that progress on construction was dependent on the approved beneficiaries. The municipality indicated that they traced the beneficiaries according to the location. There were people who were in a wrong side of the village and there's a dispute between the Tribal Authorities and the municipality; that was why houses could not be build in such areas. The challenge was that on the application people write an address only to find that they live on the other side of the village, hence the disputes with the Tribal Authorities.
The delegation raised a concern that there was a perception that houses that were built for people living in the villages should be substandard and this should not be the case, houses must be of the same quality. It was enquired whether the National Home Builders Registration Council was assisting with the issues of quality.
The Councillor indicated that there were more than 300 people who needed houses; however, a decision was taken that 1000 will no longer be allocated to Rooigrond because of the disputes in the area. In Schoongesigt only 45 beneficiaries would benefit, others were told that the area was dolomatic but there was no geotechnical study report to attest to that. She further indicated that people were promised that the municipality will come to verify if they were on the list or not; out of those, there were nine beneficiaries’ people on the tribal land. The provincial department had indicated that there was a memorandum of understanding that people should benefit.
The Ward Councillor informed the delegation that houses that were built were not the ones that they were promised. She alleged that the Integrated Development Plans (IDPs) were not taken into account when developments were taking place.
The delegation through interaction with community members, observed that there were people who had been residing in Schoongesigt for the period more than 20 years. However, the provincial department did not considered nor provide those communities with houses and that was totally unacceptable. The delegation stated that the Rooigrond project should continue, as the budget was already made available. It was concerned that the communities were not consulted about the issues that concern them.
6.5 Site visit Moshawane in Signal Hill
The Regional Manager stated that the project was a rural project. There were 72 units completed out of 300 units that were initially approved. The houses were two bed-roomed houses, reported to be poorly constructed, and would require rectification. There were no internal doors and the delegation requested that doors should be installed. There was a need to register beneficiaries in the area of Moshawane. Water was raised as critical and scarce resource in the area.
A community member complained that there was no school, no clinic and there was no water and no electricity. She alleged that unscrupulous people sold houses while others were not getting them.
The delegation urged the municipality to assist communities with water as it is a basic constitutional right.
6.6 Site visit to Setlopo disaster area
The Dithakong disaster of 2006 had affected 130 housing units. By the time of the visit only 40 units were completed and 90 units were to be completed by end of September 2012. The village had communal taps, electricity and outside VIP toilets.
The chief in the area informed the delegation that water was still a challenge as the area was experiencing water scarcity; in other houses people were digging their own boreholes. The Municipal Manager told the delegation that there should be a review of legislation, as most of the powers and functions between local and the district municipality, rest with the district. The grants were received by the district and most decisions were taken by the district on how the grant should be spent without consulting the local municipality.
6.7 Site visit to Pampierstad
The project was part of the cross boarder project between Northern Cape and North West. The project started in 2002 with 900 units. After the demarcation, the area was handed over to Northern Cape. Records reflect that 578 houses in Pampierstad were being subjected to rectifications due to shoddy workmanship. In the same housing project in Pampierstad, it was evident that contractors were contravening norms and standards e.g. there were no aprons on the outside walls and the inside walls were merely backwashed and not plastered. It was evident that the provincial department therefore runs the risk of conducting rectifications upon rectifications if the matter was not attended.
The delegation supported that the funding formula should be reviewed and thereby ensuring that funds for the Rectification Programme are separated from the Human Settlements Development Grant. The province made a commitment to furnish the Committee with a separate report on this matter.
6.8 Site visit to Synchrocom
The delegation visited Synchrocom where 257 housing units were constructed. The delegation was concerned about the reporting that was not clear and lacked specific issues e.g. foundations done and structures completed. Clarity was sought on what happens when a contractor leaves the site without completing the units and also what happened to the retention fees. A concern was raised on why R87 million was transferred to that particular contractor because that could open doors for corruption. It was further indicated that payment system of the municipality was not up to standard. It was alleged that rules of the Public Finance Management Act (PFMA), No 1 of 1999, were flouted, and the system needed to be tightened to avoid corruption.
In response, the municipality informed the delegation that upon receipt of the funds they immediately transfer them to contractors without having conducted a proper study on the progress of the project. However, the SIU have been investigating the issue, and the reports were still outstanding. The delegation was requested to intervene in the matter. The Mayor indicated that Naledi municipality was going to locate people who occupied incomplete houses. It was further indicated that there was a house that was built for R8 million and there was no proper briefings as to what was the progress on the Special Investigating Unit (SIU) investigations in respect of the house. It was further indicated that there was no coordination in the running of projects, the national Department of Human Settlements does its own programme, another Department will also come with its own programme, and the information received was disjointed.
6.9 Visit on the War on poverty project
The housing units were called new generations. There were 18 out of the 21 units completed with VIP toilets installed and water was available. The toilet was designed in such a way that when it was full they can dig a pit next to the full one, move the top structure, and cover the new pit. Another one is to provide the chemicals that will help to decompose the solid waste. Eskom was also called in to provide electricity.
The delegation enquired as to which process was followed in identifying beneficiaries. It was further enquired whether the province does the screening of beneficiaries. It was indicated that the municipality identifies the beneficiaries that are needy.
The municipality indicated that out of 21 beneficiaries that were initially approved it was later discovered that three beneficiaries did not qualify. It was further indicated that the initiative was a joint venture between local and provincial governments. However, three beneficiaries failed because they might have benefited in the past.
The delegation indicated that when a beneficiary could not be located, the municipality should be advertised in the local media such as community radio station as well as in the print media until they were located. The delegation was concerned about the size of houses build by the province (45 m²) and sought clarity on how the province was managing it.
The delegation reported that people always complain that they have been taken out of the beneficiary list without them being informed. However it was requested that when taking them out, they should be duly informed.
The delegation was impressed with the quality of the house. However, there was no toilet or a water sink inside the house.
6.10 Site visit to Matsheng project
The project was declared a project of war on poverty and was an initiative by the Deputy President, Kgalema Montlante. The project consisted of 50 approved units and was still in the process of completion in Matsheng.
6.11 Site visit to Vryburg
It was indicated that initially the project was supposed to deliver 3 000 units. It was stated that 87 units were poorly constructed. There were 405 units that were illegally occupied and unfortunately those units had defects that required rectification. It was also reported that NHBRC was involved in the quality assurance determination, therefore the delegation instructed the national department to make a follow-up on the issue and NHBRC should be liable for the rectification cost. People were supposed to be evicted but they were refusing. The area was initially identified to upgrade three informal settlements in the area. By the time of a visit, units were supposed to be 90 percent complete, but the process has stalled.
Adjacent to the 405 units’ project, there was a site which was identified to develop 1000 units and the geotechnical studies outcome report stated that the area was dolomitic. However, the second opinion revealed that the area was not dolomitic all and that raised a serious concern about the credibility of some geotechnical studies conducted. The delegation enquired if there has been a survey to see how many people need to be relocated. On issues of land, the community indicated that the land is theirs.
The mayor of Naledi municipality indicated that there was a huge backlog in the area. A beneficiary list was in his office and would like the regional manager to explain the processes to be followed in compiling the beneficiary list.
It was indicated that other beneficiaries did not qualified as alleged to be previously benefited, some people live in old structures and they were found not to be having title deeds.
The delegation recommended that community education was very crucial and communities should be educated about various policies in human settlements. It was also indicated that not everyone could be given a house free. It was recommended that the provincial department should convene an urgent meeting to support the Naledi municipality in addressing housing challenges in the area. Furthermore, a team from the national department should form part of the meeting and to Vryburg, meet with the mayoral committee with the aim of resolving challenges encountered, and provide a report to the Portfolio Committee. The mayor of Naledi municipality indicated that a local housing Indaba was scheduled to take place during the 1st week of July 2012.
The delegation indicated the Vryburg project should be treated as a priority project. She further indicated the committee would follow the progress in that particular housing project. It was indicated that the SIU investigation issue might be a delicate one and the Committee will liaise with the national Department of Human Settlements on the matter.
6.12 Interaction with Community members
A community representative from Huhudi, indicated that they had three informal settlements in the area. He further informed the delegation that the community moved into the houses in November 2011 because they no longer had patience of waiting. It was also stated that the community was informed that the houses would be demolished, however they did not understood why the houses would be demolished when so much money was already spent in constructing of those houses. The community also reported that they applied long ago for houses and were not receiving them and those who recently applied were the ones receiving the houses.
The delegation informed the community that their issues were being investigated. The mayor indicated that there were houses to be constructed where the community would be given proper shelter. It was further stated that people would be given houses in accordance to the beneficiary list.
6.13 Site visit to open land where construction was due to start in June 2012
Site visit to an open Land parcel where there was going to be a Housing Development in Vryburg. Mrs Annel Barnard from NHBRC indicated that the project was enrolled but the NHBRC discovered that the area was dolomitic. It was then decided that geotechnical report will be complied. Mrs Barnard also indicated that the NHBRC was involved with other project in Vryburg but the community has illegally occupied the units. The NHBRC stated that there is going to be 1000 units. She further indicted that in some areas, developers do not listen when they are told that they should stop with developments following the geotechnical findings.
A representative from Toro ya Africa, Mr Less Davis, indicated that part of the reason that project was stalled is that there were no services installed. This has led to houses not being insured.
The leader of the delegation stated that, once the project is enrolled with NHBRC, it is not a project of the Province and in this instance where shoddy work was done, NHBRC should take the responsibility. NHBRC must take ownership and a report be provided to the Portfolio Committee in two weeks time.
6.14 Site visit Joubertina Ext 6
It was indicated that the project started in 2005 and finished in 2010. There are no doors inside. The delegation enquired as to whether the assessment of this project was done because it is an old project with old specification. In viewing the house, it was found that the house qualifies for rectification. The toilet is outside but there is water.
The delegation recommended that those houses must be fitted with doors, especially for those beneficiaries who are unemployed.
6.15 Site visit in Tlokwe in Ikageng Township in Potchefstroom R24 million project
The project was meant to cater for 100 units. The project was to transform old hostels into family units. It was indicated that the municipality prioritized this project and it is going to be rental units. It was stated that from the revenue collected, maintenance of the structures can be carried out. The project will was meant to be handed over in July. The municipality will take charge in the running and maintenance of the units. The units are not yet complete. The yard will be paved and there will be playing grounds and other amenities. It was stated that R2 million has been budgeted carry out the objectives.
The delegation enquired if SHRA was involved in the project and how much the municipality was going to charge for rentals. It was further enquired if there is a Memorandum of Understanding between SHRA and the Municipality. It was indicated that the project is meant to improve the quality of lives of the people who live in these Hostels. The Municipality will take charge of identifying these beneficiaries. The delegation enquired as to who will be managing the property. The Contractor Andisa, a youth Contractor indicated that they went to rope in Toro ya Afrika to form a joint venture. He further stated they also made sure that youths form part of this project and there are about seven companies owned by youths.
The leader of the delegation enquired if there are plans in place that will make sure that local people from the area are provided with skills. It was indicated that a meeting was held with SHRA and another company called Madulammoho (they are responsible for management of buildings such as the ones visited by the delegation). It was indicated that Madulammoho from Johannesburg will be in the area for five years and will transfer skills to the local community. Beneficiaries are already been identified and 2000 applications have already been received. It was stated that beneficiaries are per the policy. It indicated that rentals will be charged as follows, bachelor flat (10 of them) at R550.00 per month. There would be one bed-roomed flat (30 of them) at R750.00 per month; and two bed-roomed (60 of them) at R900 per month. It was indicated that the project is enrolled with NHBRC.
6.16Site visit to Reagile EXT 3 in Koster (the incomplete project)
It was indicated that the project was started between 2003 and 2007 and the houses have been identified for rectification. It was a blocked project and was awaiting the enrolment with NHBRC. It was indicated that some people could not wait any longer and they decided to move into the units even those that were not completed. The area has got bulk services.
6.17 Site visit to Mazista Project in Swartruggens
It was indicated that the community were relocated to this site from the other area. The delegation enquired as to where are the facilities such as schools and clinics. It was indicated that mobile clinics are available and children attend school in Swartruggens about 20 km a distance. It was further stated that there is no proper school transport system and children use hikes to get to school.
The mayor of Swartruggens indicated that there are 30 houses that are not occupied. Another challenge is the health system in the area. She further indicated that Eskom has committed to put electricity in the area. The project was initiated in 2009 and has not been completed.
The Chairperson of the Provincial Portfolio Committee indicated that the Provincial Department of Education should prioritize the education in the area and will request that scholar transport be provided
It was recommended that mobile facilities are needed in the area, even mobile classes are needed. The delegation stated that when a settlement is being planned, facilities such as schools and clinics should be included in the plans. There is no water in the area. Community member indicated that there are periodical water cuts; the community is told that the machine pumping the water is not working properly. Regional Director indicated that the water comes from the boreholes, and then they fill the reservoir. He further indicated that there is Magalis Water Board acting as the Water Services Authority and they should be brought in to assist with water issues.
In viewing the house: The house is a two bedroom house with a bath and a toilet and water basin. The HOD indicated that ceiling is included according to the specifications.
6.18 Site visit to Swartruggens Borolelo Ext 23 (incomplete blocked project)
The project started in 2003 and was initially planned for 500 units. The project has been blocked and some people took it upon themselves to finish their structures.
It was enquired as to what happened to the beneficiaries.
The HOD indicated that audits are being conducted in the area as to which houses would need rectification and which ones need to be demolished. He further indicated that some of the projects were handled by municipalities on the behalf of the province.
The Mayor indicated that the Province must go back to the communities and report as to what is the status of the project, because the province has informed the municipality that there are geotechnical teams that must come and assess these houses. Meanwhile, when the Municipality checks on their systems they find that a beneficiary has benefitted and they cannot be approved. This is a challenge because the community is up in arms complaining about the delay in the provision of houses.
It was indicated that the NHBRC was not involved initially. Some houses had defects.
Mayor indicated that they have about 80 beneficiaries facing the challenge of reflecting on the system as having benefited but no houses were allocated.
6.19 Site visit in FLISP Project Hartebeest - Madibeng municipality
Phase one was understood to consist of 1000 units. It was indicated that there was no funding for sewer then. Original Record of Decision was not followed but the engagements were continuing. The Department indicated that they could not proceed with the project without water and sanitation connections and meeting the NHBRC interventions. It was indicated that a plan was in place for the provision of schools and a clinic in the project.
The delegation commended the municipality for showing them the initial plans reflects the BNG plans. The delegation enquired whether there were plans for social amenities since a settlement cannot be established or be complete without social amenities being available. The delegation expressed a concern as to whether the province was still operating within its budget.
The Province indicated that it would complete the units with the budget allocated. That project started back in 2006. Land was identified and province negotiated with the municipality for the land to be released. In 2008 province had the approval, and in 2009, the project was signed. Municipality does not have land for the development of Social housing. People working in the area travel approximately 30 km a day hence the need for this kind of development. Parks and playing areas are also provided for in the planning, including soccer fields. It was indicated that what Cosmo City in Johannesburg has done, was that they have distinctly kept RDP houses apart. This does not encourage integration, however, in this project integration is catered for. The area has 36 Wards.
The delegation raised a concern that MIG funding is supposed to cater for the connection of water services and the municipality could not say that they lack funding to provide water services
The delegation also enquired if was there a provision for solar system as per Millennium Development Goals.
The municipality indicated that they are negotiating with Eskom to come to the party to assist with the provision of electricity in the area. It was indicated that historically Tshwane has supplied electricity. The municipality indicated that Eskom requires that they build a R45 million substation but the municipality cannot afford that kind of a project. Madibeng does not have the infrastructure of this kind. Madibeng has applied to Eskom for assistance
The delegation recommended that Eskom should be invited before the Portfolio Committee to present on how it can assist poor communities.
Ward councillor in the area indicated that the concern is on the sewage area, R15 million was provided for installation of sewer. Sanitation system is nonexistent in the three rural areas; people go to the field to relieve themselves.
The leader of the delegation indicated that VIP toilet is not a good system; new systems should be looked at. In the providing Human Settlements it means that construction of a structure be accompanied by other services. It also enquired as to how often the municipality empties the buckets form the toilets.
A Councillor indicated that the buckets are collected twice a month. The delegation raised a concern that if buckets are collected twice a month, how many buckets are provided per house?
Municipality has indicated that Popo Molefe informal settlement was established next to the sewer plant so they might have to be moved.
Bucket systems are a problem in the area, ward councillor indicated that they provide six buckets for 46 households.
6.20 Site visit to Jacaranda informal settlements
This is a farmland and the owner left about three families. It was indicated that people came and invaded the land. There is about 500 families living in this land at the current moment and this is a private land. There is only one water tap shared by the whole settlement.
A resident informed the delegation that the owner of the land had promised to build about 50 houses for his employees and this was said to have attracted many people in the area. They indicated that they have applied for housing through the municipality.
6.21 Site visit to Jakaranda
The second visit, the delegation proceeded to women build project in Jakaranda RDP Houses.
The number of units allocated is 111. The contractor said that they have started with the aprons and have completed 50 of them. In viewing the house, it was a 45 square meter house.
The delegation was impressed with quality of a house. Chief Director Mr Mgengo indicated that there is 80 percent occupation. The Mayor indicated that they have been engaging Eskom; they have been excluded from the municipal budget. He further requested that Eskom should make a presentation before parliament on how they are planning to roll out their electricity programme.
6.22 Site visit to Jourbeton Ext 20
This is an informal settlement-upgrading project with 975 units. It was indicated that sites were serviced and there was water connections and access roads. The project was allocated R9 million. Houses that were completed have been occupied. Bulk water and reticulation were already in place. The houses specifications were 45 m², two bed-roomed with bath, toilet and hand basin.
6.23 Site visit to Jourbeton Ext 24
The project was allocated 2084 units and an amount of R98 million was allocated.
It was indicated that the project was complete with 1700 units. Toro ya Africa was a contractor responsible. Toro ya Africa built 1752 units while the remainder was given to Kosh Construction.
The delegation raised a concern that the developer seems to be too much involved even with the registration of beneficiaries and need an explanation on this issue. The delegation further enquired about the reasons behind the blocking of this project because of dolomite, and where is NHBRC a case like this.
A concern was also raised as to why houses were built without toilets provision. In addition, if there was additional funding for the additional services mentioned during the presentation. The delegation enquired as to what was meant by integrated VIP. The delegation condemned the issue of developers involved in the registration of beneficiaries.
In his response, the Chief Director indicated that it was recommended that the women and youth should be involved in the construction of houses. The delegation indicated that there has to be 80 % of houses constructed by established companies. It was indicated that for the surveying of GIS, private surveyors were used. It was indicated that, before NHBRC could come into play, dolomite studies were not conducted. In rural areas the Department provide VIP because there are no bulk services.
The delegation raised a concern that even on this democratic era departmental officials seem to apply the same pattern or practises that were used during the apartheid era where communities in rural and townships were subjected to substandard services, hence toilets or sanitation facilities are still of low quality or houses built without these facilities.
It was indicated that the land was purchased on behalf of beneficiaries from land affairs. On the bucket system, Deputy Director Sanitation, indicated that there are no bucket toilets in the province. The backlog was estimated at 31000, with nine informal settlements.
The Executive Mayor indicated that there were approximately 14 000 households in need if housing. There was an areas in Kosh were there was bucket system, others have pit toilets. In other areas, because of the geotechnical survey not done, the Municipality cannot build in some other areas. Next to Jakaranda there is a new informal settlement on a private land, about 500 households.
A concern was raised about R57 million that was allocated to RHIP, because in some other areas people do not have water and sanitation. The delegation stated that a remedial plan should be provided as to how this money is going to be used and how RHIP will be rolled out.
6.22 Site visit to Reagile Ext 3 in Koster
This project is from 2003 and 2007, it was incomplete project and houses are due for rectification. It was blocked and was awaiting the enrolment with NHBRC. It was indicated that some people could not wait any longer and they decided finish their houses and move into the structures. The area has bulk services.
6.23 Site visit to Toro ya Africa emergency housing project
The project was an emergency housing project responding to disasters. In 2006, the greater Taung was hit by the disaster which affected more than 2000 households. The entire infrastructure was damaged. An amount of R87 million was allocated. Toro ya Africa was the company appointed to rebuild damaged post the disaster. Sanitation project was provided in a form of enviro low system but the community was not comfortable with this system. Communities did not want to be relocated to other areas; they preferred to remain where they are. Four different women constructors were appointed, and only one constructor delivered successfully. Those who failed, one of the reasons was that the area of dolomitic. It was indicated that the Department only received allocation towards the end of the financial year which is R15 million. It was indicated that the project is now proceeding very well and has been registered with the NHBRC.
The delegation raised a concern that in many projects that the briefings were done, it all boils down to the developer as the person to be blamed. The delegation stated that it should be fully briefed on how developers were appointed.
The Department indicated is that the challenge was that, when the development has commenced which do not have bulk infrastructure, the developer would to move ahead with the view that bulk issues would be sorted at a later stage.
A concern was raised that when a contractor is appointed to come rectify what the previous contractor has done, this is a wasteful expenditure. The delegation enquired as to what has been done to recover the money that has been lost. In addition, what happened to the issue of the SIU investigation?
6.24 Site visit to Redirile 129 units Kgetleng Revier Local Munipality,
Project is called Redirile. It was indicated that 129 units were approved. A women contractor was appointed to construct the units and they were completed without any challenges. It was indicated that it was occupation 100% in all the units.
The delegation enquired as to why are there no aprons. The department indicated the specifications at that time did not include aprons. The delegation also enquired as to why are there no inside doors, because recently developed houses should have doors inside. In viewing the house, the owner told the delegation that the doors were fitted when they moved in. The leader of the delegation enquired as to where is the toilet and the bathroom, because this is a new project and this BNG.
VIP toilets were provided long before the project came in. A concern was raised about VIP toilets that were provided, while there MIG fund for providing bulk infrastructure. The municipality indicated that the water sources are from the borehole.
The contractor indicated the following challenges: getting the beneficiary list on time, costs of building material that has escalated completion of the project in three months. The contractor indicated that they currently doing the social responsibility of building two houses for the disabled. Other challenge is the delay in payments. The contractor indicated she borrowed the money from NURCHA and her concern is that the interest is high. NURCHA charges R30 000 in administration fee and this is too high. A concern was raised that, women contractors seem to be allocated fewer units.
6.25 Site visit to Popo Molefe informal settlement
The informal settlement started in 1996; it had 167 shacks and 96 beneficiaries. There were six bucket toilet facilities that were emptied twice a month. The communities were complaining about the mobile clinic that was coming to them only once a month or never come and the nearest clinic was two hours away walking distance.
There was also a block of municipal hostel building with six rooms within the informal settlements which was appalling. The delegation was told that municipal officials who were maintaining the sewer plant were residing there in that hostel. There was no storm water drainage, no electricity and water pipes were leaking.
6.26 Site visit to Sunnyway Village
The delegation was informed that the project proposal was presented to the Council in 2006, and the project was approved in 2009. The proposed plan of the project indicated that the project would accommodate low-cost housing. Apparently, the municipality had encountered land challenges to proceed at the time. It was further realised that the municipality did not have sufficient land to accommodate both low cost and social housing opportunities to its community.
Eventually, private sector donated a land parcel of which another portion was to be paid for by the local government later. Approximately, 1 110 stands were made available and were serviced. Water pipelines were connected. Once again, the project was challenged by lack of a reservoir and funding for sewer connections. A Record of Decision (ROD) was not yet provided. Another challenge facing the municipality was lack of funding to address sanitation as a whole in the area. The Department of Water Affairs made funds available to upgrade the Rietfontein sewer plant, approximately, R15 million was provided. However, more funds were required for the success of the project. The housing development project was divided into four phases. Phase 1 was state subsidy houses, phase 2 and 3 was for private sale and affordable houses and phase 4 would be high-density houses. The project was meant to accommodate people from the three rural areas. Sanitation was cited as a challenge.
6.26.1 Deliberations
The delegation enquired about the number of informal settlements within the municipality. The delegation further enquired if the municipality was using bucket system, if so how often the buckets were emptied and allocation ratio per household. The delegation further enquired about the beneficiary management and coordination.
6.26.2 Responses
The municipality reported that it has 31 informal settlements and approximately 15 000 households living there. It was reported that the bucket system was still in use and six buckets were allocated to 46 families. There were also 330 people living at the dumping site who were to be accommodated in the new housing development.
7. Outcomes of the follow-up meeting held with the North West MEC – 26 July 2012
The Committee held a meeting with the province and the respective municipalities in Parliament as a follow-up on issues raised during the oversight visit. The objective of the meeting was to meet with the national department, the MEC and the mayors of the following municipalities i.e. Naledi, Mafeking and Swartruggens to brief the Committee on outstanding issues. It was agreed that the Rooigrond communities would not be evicted anymore. The national and provincial department should facilitate the process to address the 405 illegally occupied units in Naledi Local Municipality. The national department should present the SIU report regarding the North West for the alleged fraud and corruption practises to the Committee. The province should update the Committee on the response by NHBRC on the 405 units with serious defects while the project was under its supervision. Furthermore, the national department to report on the role of Maxima Consultants with regard to the roll-out of sanitation, in the province and the costing thereof. The national department should also report on what plans they have to extend the sanitation service providers that will include Community Based Organisation and cooperatives. It was further stated that the national department should present its plans and process to implement the 10% deduction from provinces for rectification. To present processes and policy framework on the utilisation MIG for human settlements development.
8. Observations
The delegation observed the following:
The province was experiencing service delivery protests that were mainly due to incomplete houses; sinking houses due to poor geotechnical studies that were done. Even though the provincial department painted a glossy picture and good relationship between them and the National Home Builders Registration Council, there were projects that were not enrolled and some required rectification. The tranche payments that were made by the provincial department to municipalities and later to contractors who failed to complete projects and left them blocked. The allocated conditional grant was used to rebuild old houses instead of new houses and that impacted on targets and plans not being met. The provincial department did not utilise its allocated budget for the provision of sanitation even though most of the informal settlements and other townships were still using bucket system and in some areas including rural areas people were opting for open defecation.
Lack of required capacity of provincial department and its municipalities to manage the Housing Beneficiary List and credible Housing Subsidy System (HSS) was of concern. This meant that the Housing Beneficiary List could be easily manipulated by officials (as had been witnessed in many municipalities). There were reports of unruly individuals who vandalised and illegally occupied houses in order to jump the queue of the Housing Beneficiary List. The under-spending persisted to be a common challenge for most municipalities despite the dire need for housing, sanitation and other services. There were houses that were built in isolation of social amenities such as clinics, schools, and playgrounds. Many projects were not subjected to geotechnical studies and were subsequently blocked thus resulting in poorly constructed houses that require rectification. Houses are built without sanitation facilities or pit toilets and the Committee does not approve this kind of a system or facility.
Most municipalities in the province had capacity constraints in areas of technical expertise that is town planners, engineers etc. Many communities had no basic services like running water, electricity and refuse removal. In the delivery of Community Residential Units, the provincial department was moving at a snail pace as far as reaching the targets. Discrepancies in the reported figures for housing backlog and housing needs were noted. The late allocation of Disaster Relief Fund in the 2011/12 financial year resulted in the fund not been spent. The rectification of rectified houses was also a concern. Lack of public participation was raised as great concern, as it is a Constitutional imperative for people to participate in decision making on their development or service delivery undertaken in their area. Decision taken in very important governance structures are not honoured and respected such as the adoption of Macro Coordinated and Alignment Framework by MinMec, however it appeared as a talk show as it is not implemented. The commitment by the province in empowering women and youth contractors was very much commendable. The decision by the MEC to take over the implementing status from the municipalities that were not accredited was also applauded to, as that was compromising service delivery.
9. Recommendations
The Committee recommends that the Minister should ensure that the national department:
1. Brief the Committee on the progress made to address the sanitation challenges as well the budget expenditure to that effect.
2. Ensure that the adopted Macro Coordinated and Alignment Framework by MinMec are implemented as it a vehicle to the realisation of an integrated development envisaged by the government.
3. Ensure that Delivery Agreement Foras address service delivery issues adequately, thus include the mineral rights licensing which was raised by the province sharply as huge challenge in mining town areas.
4. Ensure that the provincial department assist the municipal workers who were residing at the dilapidated hostel in Popo Molefe informal settlements with an alternative accommodation whilst waiting for housing allocation process.
5. Ensure that the provincial department provide an appropriate sanitation facility to Popo Molefe and Jacaranda informal settlements to maintain and restore their dignity.
6. Ensure that the both the national and provincial departments furnish the Committee with the provincial land audit report.
7. Ensure that the provincial department provides a detailed report on the informal settlements upgrading programme.
8. Report on the outcomes of the meeting held in Parliament between the national department, the MEC and the Mayors of the following municipalities i.e. Naledi, Mafeking and Lekgetleng.
9. Ensure that mining sector extends its partnership with government to other parts of the province and its model of delivery should be adopted across the country.
10. Ensure that bulk services are installed prior any project commencement.
11. Encourage the province and municipalities to utilise expertise of professional councils such as Council for Geo-science hence, the province is prone to dolomite challenges.
12. Ensure that provincial department engage Eskom to address challenges of electricity in particularly in Sunny way project, etc
13. Encourage and provide necessary support to the provincial department in spending the human settlements grants that have been allocated to them.
14. Present the SIU report regarding the millions of public funds that were paid by the provincial department to contractors as tranche payment including the R8 million allegedly build only one house.
15. Ensure that there is school transport for Swartruggens new settlement.
16. Ensure that public participation is seriously considered in all human settlements delivery programmes as it is a Constitutional obligation
17. Provide a full report on challenges reported on Moses Kotane projects and the outcome of the meeting suggested by the Committee between the province, local municipality and the Member of Parliament, deployed in that constituency..
18. Furnish a detailed report on disaster-affected areas and the number of affected households including the budget allocated to address such problems.
19. Provide the necessary support and advice to the local municipality that have under spent their MIG especially on sanitation.
20. Present progress report on North West Housing Cooperation (NWHC) winding down process quarterly.
21. Ensure that Housing Development Agency services are accessible as the province encounters land challenges for human settlements development
The Minister is requested to report progress made to address challenges and respond to recommendation of the Committee 30 days after the adoption of the report by the House.
Report to be considered.
WEDNESDAY, 14 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Introduction of Bills
1) The Minister of Water and Environmental Affairs
a) National Environmental Management Laws Amendment Bill [B 26 – 2013] (National Assembly – proposed sec 76) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36673 of 18 July 2013.]
(b) National Environmental Management: Air Quality Amendment Bill [B 27 – 2013] (National Assembly – proposed sec 76) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36673 of 18 July 2013.]
c) National Environmental Management: Protected Areas Amendment Bill [B 28 – 2013] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 36682 of 26 July 2013.]
Introduction and referral to the Portfolio Committee on Water and Environmental Affairs of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bills may be submitted to the JTM. The Bills may only be classified after the expiry of at least three parliamentary working days since introduction.
2. Request for filling of vacancy on MDDA board
1) A letter dated 5 August 2013 has been received from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration –
a) informing the Assembly that the term of office of Media Development and Diversity Agency board member Ms Nadia Bulbulia will expire on 31 December 2013 in terms of section 8(2) of the Media Development and Diversity Agency Act, 2002 (No 14 of 2002); and
b) requesting the Assembly to commence with the process of recommending, in accordance with the principles set out in section 4(1)(b) of the Act, a suitable candidate to fill the impending vacancy.
Referred to the Portfolio Committee on Communications for consideration and report.
3. Referral to Committees of papers tabled
1) The following paper is referred to the Portfolio Committee on Justice and Constitutional Development:
(a) Register of Debt Collectors in terms of section 12(1) (a) of the Debt Collectors Act, 1998 (Act No 114 of 1998).
2) The following papers are referred to the Portfolio Committee on Women, Children and People with Disabilities for consideration:
a) Report of the Commission for Gender Equality on 365 Days of Action to end violence against Women and Children – Assessing the Work of Civil Society Organisations in Relations to The National Implementation Plan 2012.
b) Commission for Gender Equality: Employment Equity Report on Hearings in the Northern Cape, 2012. [this Tabling entry does not read well]
c) Commission for Gender Equality: Provincial Hearings on Employment Equity and Gender Transformation Report - Kwazulu-Natal Province, 2011.
d) Commission for Gender Equality: Provincial Hearings on Employment Equity and Gender Transformation Report -Western Cape Province, 2012.
e) Commission for Gender Equality: Provincial Hearings on Employment Equity and Gender Transformation Report – North West Province, 2011.
f) Commission for Gender Equality: Gender Barometer National Report, 2012.
3) The following paper is referred to the Portfolio Committee on Women, Children and People with Disabilities for consideration and to the Portfolio Committee on Health and the Portfolio Committee on Correctional Services:
a) Report of the Commission for Gender Equality on Assessing the Effectiveness of Implementation by Departments of Health and Correctional Services – The Victims Charter: National Report 2012.
4) The following paper is referred to the Portfolio Committee on Women, Children and People with Disabilities for consideration and to the Portfolio Committee on Sport and Recreation.
a) Commission for Gender Equality: Public Hearing Report on Gender Transformation in South African Football – 28 June 2012.
5) The following papers are referred to the Portfolio Committee on Arts and Culture for consideration and report:
a) The 2001 Unesco Convention on the Protection of Underwater Cultural Heritage, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the 2001 Unesco Convention on the Protection of Underwater Cultural Heritage.
c) The 1999 Second Protocol to the 1954 Hague Convention for the Protection of Cultural Property in the event of Armed Conflict, tabled in terms of section 231(2) of the Constitution, 1996.
d) Explanatory Memorandum to the 1999 Second Protocol to the 1954 Hague Convention for the Protection of Cultural Property in the event of Armed Conflict.
e) The 1995 Unidroit Convention on Stolen or Illegally Exported Cultural Objects, tabled in terms of section 231(2) of the Constitution, 1996.
f) Explanatory Memorandum to the 1995 Unidroit Convention on Stolen or Illegally Exported Cultural Objects.
6) The following papers are referred to the Standing Committee on Finance for consideration and report. The Report of the Independent Auditors is referred to the Committee on Public Accounts for consideration:
a) Annual Financial Statements of the Corporation for Public Deposits for the year ended 31 March 2013.
b) Report and Financial Statements of the South African Reserve Bank for 2012-13, including the Report of the Independent Auditors on the Financial Statements for 2012-13.
7) The following papers are referred to the Portfolio Committee on Trade and Industry:
a) General Notice No 605, published in Government Gazette No 36556, dated 12 June 2013: Invitation to interested parties who wish to conduct the National Lottery, in terms of section 13(1) (a) of the Lotteries Act, 1997 (Act No 57 of 1997).
b) General Notice No 632, published in Government Gazette No 36575, dated 21 June 2013: East London Industrial Development Zone General Notice No 632 B-BBEE Facilitation Status, in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003).
c) Government Notice No R446, published in Government Gazette No 36593 dated 28 June 2013: Proposed amendment of the Compulsory Specification for single-capped fluorescent lamps, in terms of section 13(4) of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).
d) General Notice No 690, published in Government Gazette No 36614, dated 5 July 2013: Final prohibition on the use of the South African Music Awards Logo, in terms of n terms of Section 15(1)(b) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
e) General Notice No 678, published in Government Gazette No 36600, dated 2 July 2013: Intention to introduce the Lotteries Amendment Bill, 2013 into Parliament.
f) General Notice No 722, published in Government Gazette No 36637, dated 12 July 2013: Proposed prohibition on the use of certain words in terms of Section 13 of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
8) The following paper is referred to the Portfolio Committee on Justice and Constitutional Development:
a) Government Notice No R381, published in Government Gazette No 36515, dated 7 June 2013: Regulations Relating to Debt Collectors, 2003: Amendment, in terms of section 23 of the Debt Collectors Act, 1998 (Act No 114 of 1998).
9) The following paper is referred to the Portfolio Committee on Public Enterprises for consideration and report. The Report of the Independent Auditors is referred to the Committee on Public Accounts for consideration:
a) Report and Financial Statements of Transnet SOC Ltd (Volumes1 and 2) for 2012-13, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-13.
10) The following paper is referred to the Portfolio Committee on Public Enterprises for consideration and report:
a) Sustainability Report of Transnet SOC Ltd for 2013 (Volume 3).
11) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs:
a) Government Notice No 341, published in Government Gazette No 36432, dated 10 May 2013: National Estaurine Management Protocol, in terms of section 33 (2) of the National Environmental Management Integrated Coastal Management Act, 2008 (Act No 24 of 2008).
b) General Notice No 433, published in Government Gazette No 36411, dated 26 April 2013: Biodiversity Management Plan for Pelargonium Sidoides in South Africa 2011-2020, in terms of section 43(1)(b), read with section 43(3) of the National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).
c) General Notice No 437, published in Government Gazette No 36418, dated 3 May 2013: Intention to proclaim the Vredefort Dome World Heritage Site in terms of sections 1(xxiv)(a) and 5(b) of the World Heritage Convention Act, 1999 (Act No 49 of 199).
d) General Notice No 467, published in Government Gazette No 36447, dated 10 May 2013: National norms and standards for the remediation of contaminated land and soil quality in the Republic of South Africa for public comments, in terms of section 7(2)(d) read with section 73(1)(a) of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008).
e) General Notice No 607, published in Government Gazette No 36559, dated 14 June 2013: Explanatory Summary of the South African Weather Service Amendment Bill, 2013.
f) Government Notice No R422, published in Government Gazette No 36572, dated 21 June 2013: Regulations for the Management of the Prince Edward Islands Marine Protected Area, in terms of of section 77(2)(x)(i) of the Marine Living Resources Act, 1998 (Act No 18 of 1998).
g) General Notice No 638, published in Government Gazette No 36585, dated 21 June 2013: Intention to establish accreditation standards for a panel of environmental mediators, in terms of section 21 of the National Environmental Management Act, 1998 (Act No 107 of 1998).
h) Government Notice No 427, published in Government Gazette No 36575, dated 21 June 2013: Withdrawal Notice in terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).
12) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs for consideration and report:
a) The Benguela Current Convention on Environmental Protection and Conservation of the Benguela Current Large Marine Ecosystem between the Government of the Republic of Angola, the Government of the Republic of Namibia and of the Government of the Republic of South of Africa, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum on the Benguela Current Convention on Environmental Protection and Conservation of the Benguela Current Large Marine Ecosystem between the Government of the Republic of Angola, the Government of the Republic of Namibia and of the Government of the Republic of South of Africa.
TABLINGS
National Assembly
1. The Minister of Justice and Constitutional Development
(a) Report on lifting of provisional suspension from office of Mr F K S Ntuli, an additional magistrate at Uitenhage, in terms of section 13(3) of the Magistrates Act, 1993 (No 90 of 1993).
2. The Minister of Arts and Culture
a) African Union Charter for African Cultural Renaissance, tabled in terms of section 231(2) of the Constitution, 1996.
b) Explanatory Memorandum to the African Union Charter for African Cultural Renaissance.
Referred to the Portfolio Committee on Arts and Culture for consideration and report.
COMMITTEE REPORTS
1. The following report replaces the Report of the Portfolio Committee on Police on the Criminal Law (Forensic Procedures) Amendment Bill [B 9 – 2013] (National Assembly – sec 75), dated 13 August 2013 which appeared on page 3189 of the ATC published on 13 August 2013:
The Portfolio Committee on Police, having considered the subject of the Criminal Law (Forensic Procedures) Amendment Bill [B 9 – 2013] (National Assembly – sec 75), referred to it and classified by the JTM as a section 75 Bill, presents a redraft of the Bill [B 9B – 2013].
Report to be considered.
THURSDAY, 15 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Request for recommendation of 12 SABC board members
1) A letter dated 13 August 2013 has been received from the Minister of Communications –
a) informing the House that the term of office of the interim board of the South African Broadcasting Corporation (SABC) will expire on 25 September 2013; and
b) requesting the Assembly to commence with the process of recommending 12 non-executive board members in accordance with the requirements of section 13(2) of the Broadcasting Act, 1999 (No 4 of 1999); and
c) further requesting that the recommended members of the board, when viewed collectively, comply with the provisions of section 13(4) of the Broadcasting Act, 1999.
Referred to the Portfolio Committee on Communications for consideration and report.
TABLINGS
National Assembly
1. The Speaker
a) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Agriculture, Forestry and Fisheries on Performance of Department of Agriculture, Forestry and Fisheries, as adopted by the House on 14 November 2012.
Referred to the Portfolio Committee on Agriculture, Forestry and Fisheries.
b) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Arts and Culture on Performance of Department of Arts and Culture for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to the Portfolio Committee on Arts and Culture.
c) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Communications on Performance of Department of Communications for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to the Portfolio Committee on Communications.
d) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Cooperative Governance and Traditional Affairs for 2011-12 Financial Year and First Two Quarters of 2012-13, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Cooperative Governance and Traditional Affairs.
e) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Correctional Services on Performance of Department of Correctional Services in 2011-12 and First Quarter of Current Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Correctional Services.
f) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Defence, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Defence.
g) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Economic Development on Performance of Economic Development Department for 2011-12 Financial year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Economic Development.
h) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Basic Education on Performance of Department of Basic Education for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Basic Education.
i) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Higher Education and Training on Performance of Department of Higher Education and Training for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Higher Education and Training.
j) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Energy on Performance of Department of Energy for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Energy.
k) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Health on Performance of Department of Health for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Health.
l) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Home Affairs on Performance of Department of Home Affairs for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Home Affairs.
m) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Human Settlements on Budget Vote 31 - Human Settlements for financial year ended 31 March 2012, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Human Settlements.
n) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Justice and Constitutional Development, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Justice and Constitutional Development.
o) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Labour on Performance of Department of Labour, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Labour.
p) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Mineral Resources on Performance of Department of Mineral Resources for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Mineral Resources.
q) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Police on Performance of Department of Police for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Police.
r) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Public Enterprises for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Public Enterprises.
s) Reply from the Minister of Finance to recommendations in Report of Portfolio Committee on Public Service and Administration on Oversight Visit to Gauteng from 24 to 26 July and Limpopo from 31 July to 2 August, as adopted by the House on 8 November 2012.
Referred to Portfolio Committee on Public Service and Administration.
t) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Public Works on Performance of Department of Public Works for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Public Works.
u) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Rural Development and Land Reform on Performance of Department of Rural Development and Land Reform, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Rural Development and Land Reform.
v) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Science and Technology on Performance of Department of Science and Technology for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Science and Technology.
w) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Social Development on Performance of Department of Social Development for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Social Development.
x) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Sport and Recreation on Performance of Department of Sport and Recreation for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Sport and Recreation.
y) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Tourism on Performance of Department of Tourism for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Tourism.
z) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Energy on Performance of Department of Energy for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Energy.
aa) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Trade and Industry on Performance of Department of Trade and Industry, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Trade and Industry.
ab) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Energy on Performance of Department of Energy for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Energy.
ac) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Transport on Performance of Department of Transport for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to Portfolio Committee on Transport.
ad) Reply from the Minister of Finance to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Water and Environmental Affairs on Performance of Department of Water and Environmental Affairs for 2011-12 Financial Year, as adopted by the House on 14 November 2012.
Referred to Portfolio Committee on Water and Environmental Affairs.
ae) Reply from the Minister of Finance to recommendations in Report of Standing Committee on Finance on the 2013 Fiscal Framework and Revenue Proposals, as adopted by the House on 12 March 2013.
Referred to Standing Committee on Finance.
FRIDAY, 16 AUGUST 2013
TABLINGS
National Assembly
1. The Speaker
a) Reply from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration to recommendations in Report of the Portfolio Committee on Communications on Oversight Visit to Mpumalanga Province from 18 to 12 March 2013, as adopted by the House on 6 June 2013.
Referred to the Portfolio Committee on Communications.
b) Reply from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration for the Government Communications and Information System (GCIS) to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Communications on Performance of Department of Communications for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to the Portfolio Committee on Communications.
c) Reply from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration for the Media Development and Diversity Agency (MDDA) to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Communications on Performance of Department of Communications for 2011-12 Financial Year, as adopted by the House on 6 November 2012.
Referred to the Portfolio Committee on Communications.
d) Reply from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration for the Government Communication and Information System (GCIS) to recommendations in Report of Portfolio Committee on Communications on Oversight Visit to North West Province, as published in the Announcements, Tablings and Committee Reports on 19 June 2013.
Referred to the Portfolio Committee on Communications.
e) Reply from the Minister of Mineral Resources to recommendations in Report of Portfolio Committee on Mineral Resources on Strategic Plan and Budget Vote 32 – Mineral Resources for the 2013-14 Financial Year, as adopted by the House on 4 June 2013.
Referred to the Portfolio Committee on Mineral Resources.
f) Reply from Minister of Water and Environmental Affairs to recommendations in Second Report of Committee on Public Accounts on Report of Independent Auditors on 2009-10 Financial Statements of Bushbuckridge Water, as adopted by the House on 1 November 2012.
Referred to the Committee on Public Accounts.
g) Reply from Minister for the Public Service and Administration to recommendations in Report of the Portfolio Committee on Public Service and Administration on Strategic Plan and Budget Vote, as adopted by the House on 4 June 2013.
Referred to the Portfolio Committee on Public Service and Administration.
COMMITTEE REPORTS
National Assembly
1. Progress report of the Portfolio Committee on Communications on the process followed on recommending persons to be appointed to serve on the South African Broadcasting Corporation (SABC) Board dated, 14 August 2013
The Portfolio Committee on Communications, having considered the nominations of candidates submitted for appointment to serve on the SABC Board in terms of the Broadcasting Act, No 4 of 1999, reports as follows:
A request from the Minister of Communications, Mr Yunus Carriem to appoint the SABC Board was referred to the Portfolio Committee on Communications on 15 August 2013 (see ATC dated 15 August 2013). The Committee advertised calling for nominations to fill the vacancy.
The Committee received 147 CVs and agreed to shortlist the following 37 candidates:
Adv Zola Majavu
Ms Amanda Notando Madikiza
Ms Clare Frances O’Neil
Mr Darkey Ephraim Afrika
Ms Deborah Angelique Thompson
Dr Ndivhoniswani Aaron Tshidzumba
Ms Hope Zinde
Prof Johannes Jacobus Rossouw
Ms Kate Skinner
Mr Krish Naidoo
Mr Martin Mhlanga
Ms Merle O’Brien
Mr Joe Makhafola
Mr John Matisson
Mr Lazaurus Serobe
Mr Lumko Mtimde
Mr Paul Serote
Ms Rachel Kadilaas
Mr Ronnie Lubisi
Mr Thembinkosi King Bonakele
Ms Charlotte Mampane
Ms Constance Seoposengwe
Ms Dudusile Ledwaba
Ms Zandile Ellen Tshabalala
Ms Leah Khumalo
Ms Noluthando Gosa
Ms Nomvuyo Memory Mhlakaza
Prof Bongani Khumalo
Prof Mbulaheni Obert Maguvhe
Prof Thidziambi Sylvia Tshivhase-Phendla
Mr Mahmood Mia
Prof William Gumede
Colonel Sipho Luyolo Majimbozi
Prof Theodore Mncedisi Jordan
Mr Thulani Tshefuta
Mr Tshilidzi Ratshitanga
Mr Vusumuzi Mavuso
The interviews are scheduled to take place on 20 – 23 August 2013
MONDAY, 19 AUGUST 2013
ANNOUNCEMENTS
National Assembly
The Speaker
1. Referral of paper tabled
Erratum: The following replaces Item (12) on p 269 of the ATC of Thursday, 21 February 2013:
1) The following paper is referred to the Portfolio Committee on International Relations and Cooperation and the Joint Standing Committee on Defence:
a) Revised White Paper on South African Participation in International Peace Missions.
2. Membership of Committees
Rules Committee
Discharged:
Mpahlele, L M (PAC)
Appointed:
Mpethi, S A (PAC)
Discharged:
Magau, K R (ANC)
Magwanishe, G B (ANC)
Appointed:
Sizani, P S (ANC)
Dlakude, D E (ANC)
TABLINGS
National Assembly
1. The Speaker
a) Reply from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration to recommendations in Report of the Standing Committee on Appropriations on Annual Performance Plan and Budget for Department of Performance Monitoring and Evaluation, as adopted by the House on 4 June 2013.
Referred to the Standing Committee on Appropriations.
TUESDAY, 20 AUGUST 2013
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Bills passed by Houses – to be submitted to President for assent
1) Bill passed by National Assembly on 20 August 2013:
a) Protection of Personal Information Bill [B 9D – 2009] (National Assembly – sec 75).
National Assembly
The Speaker
1. Membership of Committees
1) The following changes to Committee membership have been made:
a) African Christian Democratic Party
Portfolio Committee on Basic Education
Discharged: Dudley, Mrs C
b) Rules Committee
Discharged: Masutha, T M (ANC); September, C C (ANC); Tshwete, P (ANC)
Appointed: Gina, N (ANC); Snell, G T (ANC); Sibanyoni, J B (ANC)
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Trade and Industry
(a) Government Notice No R.517, published in Government Gazette No 36684, dated 26 July 2013: Withdrawal of VC8062 “Retro-Reflective number plates for motor vehicles” in terms of the National Regulation for Compulsory Specifications Act, 2009 (Act No 5 of 2009).
(b) Government Notice No R.518, published in Government Gazette No 36684, dated 26 July 2013: Withdrawal of VC8078 “Material for contour marking on motor vehicles” in terms of the National Regulation for Compulsory Specifications Act, 2009 (Act No 5 of 2009).
(c) Government Notice No R.519, published in Government Gazette No 36684, dated 26 July 2013: The withdrawal of the compulsory specification for firearm proofing for civilian use – VC8028 in terms of the National Regulation for Compulsory Specifications Act, 2009 (Act No 5 of 2009).
National Assembly
The Speaker
1. Report of the Rules Committee of the National Assembly, 2013
CREDA PLEASE INSERT - T130820e – Insert 1 – PAGES 3267-3268
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Women, Children and People with Disabilities on the implementation of the United Nation’s Convention on the Rights of Persons with Disabilities, dated 14 August 2013
The Portfolio and Select Committees on Women, Youth, Children and People with Disabilities having conducted public hearings on the implementation of the United Nation’s Convention on the Rights of People with Disabilities held on 25 and 26 July 2012, reports as follows:
1. Background
The United Nations Convention on the Rights of Persons with Disabilities South Africa ratified the Convention and the Optional Protocol on 30 November 2007. Furthermore, South Africa has also agreed to be a pilot country for implementing the international treaty into domestic legislation and practice.
It has been noted that the Convention marked a major shift in the way societies view persons with disabilities, with the disabled person being the key decision-maker in his or her own life. The Convention makes persons with disabilities “rights holders” and “subjects of the law” with full participation in formulating and implementing plans and policies affecting them. While South Africa has committed to the treaty obligations with regards to the Convention it has not delivered on its initial country report in this regard. Given Parliament’s oversight role on treaty compliance and public participation it was therefore essential for Parliament to host public hearings on South Africa’s compliance with the Convention as the institution, through its oversight function, plays a key role in ensuring respect for the human rights of people with disabilities.
2. Objectives
The objectives of the public hearings were to:
a) To identify progress made in implementing the Convention,
b) To identify challenges in implementing the Convention from both civil society and the Executive,
c) To ascertain mechanisms that would aid the implementation of the Convention.
3. Delegation
The delegation consisted of the Portfolio Committee on Women, Children and People with Disabilities from the National Assembly and the Select Committee on Women, Children and People with Disabilities from the National Council of Provinces.
4. Submissions
The Committee received 24 submissions from the public including the organisations and individuals who requested to make oral submissions. These included Sadeco Quantum Consulting; Dr Thereza Lorenzo, Disability Studies and Occupational Therapy and Dr Harsha Kathard, School of Health and Rehabilitation Sciences, University of Cape Town; Transport User’s Group; Down Syndrome South Africa; Empowerment Programme: Children with disabilities and their families; Mr Ncedo Skosana; Ms June McIntyre, Occupational Therapist, University of KwaZulu-Natal; Dr Helen Combrinck, Centre for Disability Law and Policy, University of Western Cape; Amanda Gibberd, Director Universal Design in Public Transport Projects; Dementia South Africa; Association for Physically Challenged; Michele Tonks; the South Africa Human Rights Commission; Right to Education – Children with Disabilities; Mr P Maibi; Early Childhood Development (ECD) sub-group on the Right to Education for Children with Disabilities; Blind South Africa; Central Gauteng Mental Health Society; Association for Hearing Loss Accessibility and Development; Mfuza Paramount Mapukata; Afrika Tikkum and mothers for children with disabilities from Orange Farm, Gauteng Province; KwaNothemba Workshop for the Disabled; Disabled People of South Africa and Community-Based Rehabilitation Education and Training Empowerment.
5. Observations
Having interacted with the organisations, the Committees made the following observations. Numerous concerns and challenges were raised as key issues that impact the lives of people with disabilities at the public hearings, as well as within the written submissions and based on the radio interviews that Members conducted on the public hearings. Herewith a summary of key issues that emerged:
1. Education
• Access to education remains a major concern for children, youth and persons with disabilities.
• Despite the current provisions in law and policies, the vast majority of children with disabilities are not attaining a secondary school qualification in order to access opportunities for further education.
• Early Childhood Development was noted as an imperative foundation phase for young children with disabilities. Several submissions highlighted that attitudinal and physical barriers inhibited children with disabilities from accessing early childhood development centres and/or primary schools. Where children with disabilities do gain entry in foundation phase education, the transition to secondary schooling is low and the attainment of a grade 12 certificate is dismal. As such, youth with disabilities are unable to access opportunities for higher education and this in turn impacts on their employability in the future.
• Special Schools for children with disabilities, their resourcing, quality education and curriculum were some of the concerns also raised.
• In terms of higher education institutions, access to finance (bursaries) to attain a tertiary qualification was noted as a major hindrance along with the lack of assistive technology and support.
2. Employment and Economic Empowerment
• The majority of submissions highlighted the link between poverty and the impact on persons with disabilities in terms of vulnerability, thus reiterating the importance of promoting economic empowerment.
• The employment prospects in the open labour market for persons with disabilities were dismal in the country. This was attributed to a number of factors such lack of appropriate educational qualifications and skills; poor compliance of the 2% employment equity target in public and private sector; reasonable accommodation only partially implemented; lack of accessible transport and negative attitudes and stereotypes of employees who refuse to employ persons with disabilities and or a reluctance to enhance career paths for existing employees with disabilities.
• In terms of entrepreneurship development, a lack of access to financial aid and business support impeded persons with disabilities from advancing in opportunities of the second economy insofar as small medium and micro enterprises are concerned.
• Overall there appears to be very low levels of participation of persons with disabilities in the financial sector and formal economy with insufficient targeted investments focussed on persons with disabilities. An example cited was how the proudly South African campaign could potentially be incorporating persons with disabilities in terms of promoting South African products.
3. Sexual Abuse, Maltreatment and Neglect
• Many reports on the sexual abuse, maltreatment and neglect particularly of children and women with intellectual disabilities, psycho-social disabilities were received. This was noted as a major concern.
• Perpetrators are known in the community and often are never held to account or else released on bail.
• Victims are often unaware that the perpetrator is not allowed to be in close proximity or contact with him/her even though the protection order affords the protection.
• Victims and their families are often persuaded by the perpetrators family to withdraw the charges and offered monetary compensation or the like.
• Police officers expected to take down statements once a victim reports an instance of abuse and or rape, have been reported to be extremely insensitive, not taking the matter seriously or dismissing the charge completely.
4. Health and Rehabilitation
• Access to rehabilitation for persons with disabilities is hindered at primary health care level due to non-availability of rehabilitation professionals (speech therapists, occupational therapists, physiotherapists).
• South Africa trains many rehabilitation therapists, however due to brain drain to foreign countries and private sector, despite the overwhelming need in the public sector, rehabilitation is limited for persons with disabilities. Furthermore, the retention of rehabilitation therapists is also poor.
• Rehabilitation extends beyond the health domain and includes but is not limited to vocational rehabilitation and psycho-social rehabilitation.
• Linked to rehabilitation services, is the challenge faced with regards to providing assistive devices, technology and mobility aids such as wheelchairs within the public health sector.
5. Transport
• Participants highlighted that the Convention is weak on its identification of transport services as a means of mobilising people with disabilities to be able to participate in society.
• Many of the submissions indicated that there is a lack of accessible transport for persons with disabilities. In some instances it was noted that taxis charged persons with disabilities extra for also transporting their wheelchairs or other assistive devices.
• In addition, accessibility to public transport, especially buses and trains, remained hampered in many areas due to a lack of ramps.
• It was highlighted that persons with disabilities should be considered in the “travel chain”; from the point of deciding to take a trip and accessing information on it, to the point of completing a trip and providing feedback on it. Without the acknowledgment of this whole process, the idea of transport is reduced to whether a vehicle itself is accessible. There are plenty of examples of accessible vehicles, but this does not result in an accessible transport service.
6. Accessibility
• People with disabilities have experienced, and continue to experience, architectural apartheid all over the world and there is nothing in the Convention that urges member states to start addressing it.
• Participants indicated that unless there are significant changes to the way settlements and transport are planned and designed, we will not reach the goals of inclusive employment, education, health, recreations and the other desired outcomes for persons with disabilities.
7. Need for strategies and integrated plan
• Submissions indicated a need for strategies and integrated plans that considers and includes the needs of persons with disabilities.
• In addition it is imperative that persons with disabilities are included in the planning and implementation of these strategies and plans.
8. Inter-sectoral and Inter-Departmental Collaboration
• Numerous submissions highlighted that when it came to addressing the needs of persons with disabilities, Departments operated in silos and that there is an urgent need for better collaboration and synergy between them.
9. Negative attitudes and stereotypes
• Many submissions highlighted that persons with disabilities experienced discrimination and were often subjected to negative attitudes, in particular at government departments.
• In addition, they are also often ostracised within their communities and by family members.
• There is a need to change perceptions in the way that communities, families and society at large engage with persons with disabilities.
10. Special groups – intellectual disability, Down’s syndrome, Dementia
• Submissions were made by organisations and individuals with a particular focus on intellectual and cognitive disability
• It was noted that there was a need to raise the profile around these issues, and take cognisance of the specific needs and challenges faced by this target group.
11. Lack of awareness about UNCRPD
• It was highlighted that general awareness about the Convention and its Optional Protocol was poor and that there is a need to educate persons in this regard. Special reference was made to educating and training government officials on the treaty and its articles so as to ensure better service delivery for persons with disabilities.
6. Outcomes and deliberations
At the conclusion of the public hearings, the relevant Departments and entities were called to account during August to October 2012 to respond to the issues that emerged at the public hearings. The following Departments and entities responded to the Committee namely; the Department of Public Works; Department of Arts and Culture; Department of Human Settlements, Department of Communication; Department of Transport; Department of Women, Children and People with Disabilities; Department of Basic Education; Department of Higher Education; Department of Police; Department of Social Development; Department of Justice and Constitutional Development; Department of Health; Pan-South African Language Board (Pansalb) and the South African Broadcasting Corporation (SABC).
Engagement with Government Departments and entities ensured that the Committees exercised its oversight over the Executive by ensuring that treaties were complied with. Once briefings with the Departments and entities were concluded, the Committees deliberated on the outcomes of the public hearings and the Executive engagement. Thus this report was compiled which will be tabled and serve as the basis for a discussion in the House. The report is envisaged to note the key observations and recommendations for what the Committees suggests as a way forward. The Committee also had the opportunity to engage with the Department of Women, Children and People with Disabilities who is responsible for compiling the initial country report on the UNCRPD.
The engagement with various Departments and entities revealed that despite South Africa being a signatory to the Convention awareness about it was poor and there was a lack of the understanding of what was required to in terms of the obligations for duty bearers in this case the Executive. Thus the requisite data and information required to monitor and evaluate progress was either difficult to ascertain; lacking; absent and outdated. Moreover, with respect to policy development and implementation; the key concerns related to implementation and the requisite budget required to give effect to the policy. To this end, the Integrated National Disability Strategy is outdated and as such ineffectual in guiding the Executive to give effect to the rights of persons with disabilities in the country. Furthermore, the slow pace of progress towards the achievement of the 2% target for the employment of persons with disabilities and inclusive education for children with disabilities illustrates policy inertia. In addition, the lack of co-ordination, joint planning and collaboration within Government with respect to giving effect to the rights of persons with disabilities was also apparent. As such, the role played by the Department of Women, Children and People with Disabilities in addressing this was critical.
7. Conclusion
The Portfolio and Select Committee on Women, Children and Persons with Disabilities acknowledges the advancements made in the country with respect to the rights of persons with disabilities. Notwithstanding this, the public hearings on the implementation of the Convention revealed the major challenges with the fulfilment, protection and advancement of the rights of persons with disabilities in South Africa. To this end, Parliament as a duty-bearer of the rights of persons with disabilities has a crucial role to play in terms of oversight in this regard.
8. Recommendations
Having considered the outcomes of the public hearings and the engagement with various Departments and entities, the Committees have prioritised the following key recommendations:
• Government Departments and institutions/entities should report to Parliament annually on how it has mainstreamed disability into its core programmes;
• Government Departments and institutions/entities should report to Parliament annually on what programmes are rendered to persons with disabilities and the cost incurred;and
• Government Departments and institutions/entities should report to Parliament annually on progress with regards to the implementation of the 2% employment equity target.
Further, the Minister should ensure that:
1. General
• The Department of Women, Children and People with Disabilities expedites the development of an overarching framework for the domestication of the Convention in the country, with clear implementation guidelines, all of which need to be costed accordingly;
• The Department of Women, Children and People with Disabilities examines the feasibility of national disability legislation that will give greater protection to persons with disabilities;
• The South African Sign Language is considered as an official language to be recognised in the Constitution. Pansalb must report on progress in this regard; and
• Special recognition should be given to categories of persons with disabilities experiencing multiple forms of discrimination.
2. Ensuring Compliance with UNCRPD
• Government Departments have a responsibility to ensure that policies, programmes and service are in line with the Convention. Parliament would thus ensure that the Executive is held accountable to ensure that there are reports on the status of compliance in this regard on an annual basis;
• Budgeting from a disability rights perspective should be looked at within Government; and
• Disaggregated data is required from respective Government Departments and entities in order to monitor and evaluate the outcomes of the provisions within the Convention.
3. Monitoring and Evaluation
• The establishment of an independent statutory agency in terms of Article 31 and 32 of the Convention in order to monitor and enforce compliance with legislation should be looked at; and
• The Department of Women, Children and People with Disabilities should lead the process of determining how South Africa would comply with Article 33 (2).
4. Disability Awareness
• The Convention should be made available in all official languages;
• Sign Language Interpreters should be made available in all Government Departments; and
• More efforts are required to initiate education and awareness programme within Government that focus on the rights of people with disabilities. The role of the media is an important stakeholder in this regard and should be utilised.
5. Access
• More efforts are required to ensure that Government information and delivery of services is made more accessible to persons with disabilities.
• Accessible and safe transport for children with disabilities needing to attend school, crèche or stimulation centres requires urgent attention by Government.
6. Training and capacity building
• Training for state officials in how to make services more disability friendly by persons with disabilities or family member of person with disabilities is required.
• Specific training should be done on the South African Sign Language.
• Training and capacity of statutory workers within NGO’s and even within Government should be ongoing.
7. Education
• The Department of Basic Education must ensure compliance with the Convention and by ensuring the expedition of White Paper 6. Inclusive education must be implemented and resourced accordingly as a priority.
• The Department of Women, Children and People with Disabilities should finalise the audit of special schools and disseminate the findings.
• The Department of Higher Education must also ensure compliance of the Convention by institutions of higher learning and the Department itself.
• Greater synergy is require between the Department of Basic Education, Higher Education and Labour to better prepare youth with disabilities to obtain employment but acquiring the requisite skills.
8. Health
• Rehabilitation programmes should be easily accessible and affordable to all persons with disabilities in the country.
• Best practice models such as SACLA Project in Khayelitsha, Western Cape, the CORE training programme of Wits-Tinswalo Hospital in partnership in Acornhoek, Mpumalanga and IUPHC CBR training in Alexandra and its satellite project of CREATE in Pietermaritzburg should be looked at to examine the role of community rehabilitation worker versus the generic or profession-specific Mid-Level Rehabilitation Worker as a viable option for rendering community based rehabilitation. All stakeholders including but not limited to the Department of Health, Social Development, Higher and Basic Education should work collaboratively in this regard.
• The Department of Health must ensure that more reliable statistics is collated to that would support the development of more realistic budget for rehabilitation for which assistive devices is but one aspect. Ring-fencing of the budget should be considered to ensure that funds earmarked for rehabilitation services are not usurped by other competing programmes.
• Research should be encouraged to ensure that evidence supports the practice.
9. Economic Empowerment, Employment
• Providing access to finance for disabled persons between National Treasury, Trade & Industry, Public Enterprises, Economic Development, Monitoring and Evaluation, Women, Children and Persons with Disabilities and the National Planning Commission must be better co-ordinated. All relevant financial sector role players should participate in the development of such a co-ordinated mechanism.
• Parliament must hold to account relevant Government Departments and entities for facilitating the economic empowerment of persons with disabilities. To this end, more emphasis should be placed on employment of persons with disabilities and more stringent compliance of the 2% target.
10. Child care and protection
• Due recognition should be given to children with disabilities in need of care and protection. To this end, the funding requirements of statutory workers and services providers rendering programmes on behalf of the State should be examined and addressed accordingly. Moreover, places of safety and children’s homes must be accessible and available to children with disabilities in need of care and protection.
• An integrated system is required between the Department of Basic Education, Health, Social Development, Justice and Constitutional Development and Police for monitoring children within the child care protection system but also as an early warning system to detect abuse and neglect so that matters can be addressed more efficiently.
11. Justice, Safety and Security
• Best practice models such as the Sexual Assault Victim Empowerment programme (SAVE) should be re-examined and considered for roll-out to other provinces as a matter of urgency.
• The State should train its personnel staff across the criminal justice system with specific focus on police, prosecutors and magistrates and it should include disability – specific training as well as on the provision of the Criminal Law (Sexual Offences and Related Matters) Amendment Act 32 of 2007.
• Government should partner with civil society where specialised skills have been developed to deal with people with disabilities. Closer collaboration is required between Disabled Peoples Organisations and gender-based violence organisation to improve referral mechanisms.
• The Department of Justice and Constitutional Development should be sensitised to the needs of caregivers and children with disabilities in court. Moreover, officials within the criminal justice system should also be sensitised around persons with mental health concerns/mental illness. Advocacy should be undertaken to review policy to undertake other measures of justice. Efforts should be made to protect the persons with disabilities from secondary abuse of the current court system.
12. Local Government
• Self-representation of people with disabilities at ward level should be encouraged within local municipalities and compliance with the 2% target.
• Disability should be mainstreamed into the State of the Municipality Address and the Integrated Development Plan.
• Municipalities should go beyond awareness campaigns and develop programmes for the implementation in communities.
Report to be considered.
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