National Assembly - 22 February 2005
TUESDAY, 22 FEBRUARY 2005 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:02.
The House Chairperson (Ms C-S Botha) took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.
NOTICES OF MOTION
Mev D VAN DER WALT: Voorsitter, hiermee gee ek kennis dat ek by die volgende sitting van die Huis sal voorstel:
Dat die Huis –
(1) met innige meegevoel kennis neem van die afsterwe op 20 Februarie 2005 van die skryfster Dalene Matthee –
(a) wie se boeke, waarvoor sy jare se strawwe navorsing gedoen het,
in 14 tale vertaal is;
(b) wat deur haar Bos-trilogie die Knysnabos internasionaal bekend
gemaak het en dié deel van ons land ook hierdeur aan duisende
Suid-Afrikaners bekend gestel het;
(c) wat onder verskeie toekennings ook die gesogte ATKV-prys vir
goeie, gewilde prosa vier keer ontvang het; en
(d) wat onthou sal word as ’n beduidende stem in die Afrikaanse
letterkunde; en
2) sy innige meegevoel aan haar familie en geliefdes betuig.
(Translation of Afrikaans notice of motion follows.)
[Mrs D VAN DER WALT: Chairperson, I hereby give notice that on the next sitting of the House I shall move: That the House -
(1) notes with deepest sympathy the passing away of the writer Dalene Matthee on 20 February 2005 -
a) whose books, for which she did years of intensive research,
have been translated into 14 Languages;
(b) who, by means of her forest trilogy, made the Knysna
Forest internationally known and also introduced this part of
our country to thousands of South Africans;
(c) who, apart from various awards, also received the much
sought after ATKV award for good, popular prose four times;
and
(d) who will be remembered as a significant voice in Afrikaans
literature; and
(2) conveys its deepest sympathy to her family and loved ones.]
The HOUSE CHAIRPERSON (Ms C-S Botha): Can I reclassify that as a motion without notice, and not a notice of motion?
Mr M J ELLIS: Madam Chair, not necessarily, we prefer it to be regarded as a motion with notice.
The HOUSE CHAIRPERSON (Ms C-S Botha): We will keep it like that then.
Mnr T D LEE: Voorsitter, ek gee hiermee kennis dat ek sal voorstel:
Dat die Huis die onaanvaarbare gebruik van rasse-etikettering deur die
meerderheidsparty in ’n poging om opposisiesprekers te intimideer,
bespreek. (Translation of Afrikaans notice of motion follows.)
[Mr T D LEE: Chairperson, I hereby give notice that I shall move:
That the House discusses the unacceptable practice of race-labelling by
the majority party in an attempt to intimidate speakers of the
opposition.]
The HOUSE CHAIRPERSON (Mrs C-S Botha): Thank you, hon Lee. I was going to recognise the lady first.
Mrs C DUDLEY: Madam Chair, on behalf of the ACDP I give notice that I shall move:
That the House debates the following topic: Education needs for disabled children and the integrated education model.
Ms H ZILLE: Madam Chair, I hereby give notice that I shall move:
That the House discusses the extent to which education policy is infringing on the right to receive mother-tongue education.
[Interjections.]
Mr M WATERS: Madam Chair, I hereby give notice that I shall move:
That the House discusses the challenges facing child-headed households and the role this House can play in helping to meet those challenges.
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chair, I am not rising to give notice of a motion, but I think there is a problem with the procedures that we, as the Whips, would really need to sort out. I do not want us to entertain a discussion here, but I think we must come to some understanding of how we deal with this matter of motions. I am just raising it for it to be noted.
The HOUSE CHAIRPERSON (Ms C-S Botha): Thank you. So you will sort it out with the Whips.
Mr M J ELLIS: Madam Chair, may I just say that there is no problem. What we are doing is proposing motions. This is the first opportunity this year for us to do this, consequently there is a bit of a build-up in the party, but what we are doing is perfectly within the agreed laws of Parliament. We will discuss it at the Chief Whips’ Forum tomorrow.
The HOUSE CHAIRPERSON (Ms C-S Botha): Thank you, hon member.
Mr R JANKIELSOHN: Chair, I hereby give notice that I shall move:
That the House -
1) notes that political unrest in the Free State province has
escalated since the September revolution in Intabazwe last year;
2) notes that the root cause of this unrest is infighting between
the elected ANC leadership and Mbeki-appointed leadership, that
has even forced the ANC to cancel its provincial congress;
3) notes that service delivery to impoverished, marginalized
communities is affected by this; and
4) resolves that the House discuss the increased incidence of
violence within the communities as a result of the perceived
lack of delivery at local government level.
[Interjections.] Thank you, Chair.
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, please do not debate the motion when you give notice of it. Thank you.
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chair, it is becoming a circus now. Please. [Interjections.] No, no, no, it is becoming a circus. Can we ask you to please move on to the other business of the House?
Mr M J ELLIS: Madam Chair …
The HOUSE CHAIRPERSON (Ms C-S Botha): One moment, hon Whip, hon Deputy Whip. I accept that you may find it a bit worrying, but I do not think I have a rule with which to stop the motions. I would ask, please, hon Chief Whip, that if there is a problem with the existing rules that you address that in the Whips’ meeting, and that the problem be taken to the Rules Committee please. Thank you. Mr C M LOWE: Madam Chairperson, I hereby give notice that I shall move as follows:
That the House discusses freeing small business from some aspects of labour legislation in order to advance skills development and promote job creation.
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chair, I respect the fact that there is no rule that you can use to stop motions being heard, but I do believe that you have powers to use discretion. You can’t allow a situation where a single party gives more than five notices of motion in the House in succession. Common sense must please prevail, Madam.
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Chief Whip, I have no precedence which instructs me to allow only five motions. I will ask the party not to make this too problematic for me, please, but you may continue with your motions. Mr M J ELLIS: Madam Chair, we guarantee that this will be the last motion that we’ll put this afternoon. [Laughter.]
The HOUSE CHAIRPERSON (Ms C-S Botha): Thank you.
Mr E W TRENT: Madam Chair, I give notice that I shall move:
That the House –
(1) notes that the National Assembly parliamentary service received a qualified audit opinion for the 2004 financial year;
(2) further notes that the financial affairs of the institution to which the executive must account should be beyond reproach;
(3) concludes that Travelgate, which resulted in part from a lack of physical discipline and clear guidelines, has seriously affected Parliament’s credibility, and that this must be restored;
(4) notes that a draft Bill aimed at regulating the financial administration of Parliament and the provincial legislatures was prepared in November 2003, and that the Portfolio Committee on Finance was supposed to report back on this Bill by 31 August, but failed to do so - there are differing opinions as to whether Parliament and the provincial legislatures should fall under the Public Finance Management Act or its own legislation …
The HOUSE CHAIRPERSON (Ms C-S Botha) Order! Member, please state your motion.
Mr E W TRENT: I have just the final paragraph, Chair.
and …
(1) therefore resolves that a date be set for a discussion of how to remedy the situation and further that a deadline be set by which the finance committee should conclude this matter and report to the National Assembly. The HOUSE CHAIRPERSON (Ms C-S Botha): Thank you. That was a very long, complicated motion. [Interjections.]
CONGRATULATIONS FOR AWARDS TO LADYSMITH BLACK MAMBAZO AND U-CARMEN
EKHAYELITSHA
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chairperson, maybe it’s the Zimbabwe blues. [Laughter.] I move without notice:
Ukuba le Ndlu –
1) iqaphele ukuba –
(a) iqela lomculo wesicathamiya, i-Ladysmith Black
Mambazo, liphumelele imbasa ye-Grammy kwicandelo lelona cwecwe
libalaseleyo lomculo wemveli;
(b) eli qela iLadysmith Black Mambazo laye lagqatswa
izihlandlo zalithoba ligqatselwa iwonga le-Grammy, kodwa
laphumelela izihlandlo ezibini, elokuqala liliphumelela ngo-
1987;
(c) ukuphumelela kweLadysmith Black Mambazo, ethe yathengisa
amacwecwe angaphaya kwe-6 000 000, kulenza libe liqela
elikhokelayo kwiAfrika iphela;
(d) nokuba ngoMgqibelo, umhla we-19 kuFebhruwari, elinye iqela
lalapha eMzantsi Afrika lomdlalo webhanyabhanya othi “U-Carmen
eKhayelitsha”, nalo liphumelele imbasa ye-Golden Bear
kumnyhadala wemidlalo yebhanyabhanya obubanjelwe eJamani;
(e) ibikokokuqala ukuba umdlalo webhanyabhanya waseMzantsi Afrika
ube uphumelela imbasa ye-Golden Bear; kwaye
(f) ezi mbasa zibonisa ngokuphandle imfuneko yokuba abantu bahlale
kwinkcubeko yabo, besebenzisa ulwazi lwabo lwemveli ukuze babe
nokuphumelela; kwaye
(2) ivuyisana nawo omabini la maqela ngale mpumelelo ingaka, kwaye iyazidla ngawo.
[Kwaqhwatywa.] (Translation of Xhosa draft resolution follows.)
[That the House –
(1) notes that -
(a) the Isicathamiya music group, Ladysmith Black Mambazo, has won a
Grammy award for its traditional world music album;
(b) the group has been nominated for nine Grammys but has won only
two, the previous Grammy award having been won in 1987;
(c) the group has sold over six million albums, making it the number
one seller in Africa;
(d) the South African film uCarmen eKhayelitsha has won a Golden
Bear Award at the Berlin Film Festival in Germany on Saturday,
19 February 2005;
(e) this is the first South African movie that has received the
Golden Bear Award; and
(f) these awards indicate that both these groups have proved the
importance of retaining their traditional and cultural values;
(2) congratulates both these groups on their success and for making us proud to be South Africans.
[Applause.]]
Agreed to.
MOTION OF CONDOLENCE
(The late Mr R M Mhlaba)
Mr A MLANGENI: Madam Chairperson, I move without notice:
That the House –
1) notes with a deep sense of shock and sadness the death of Comrade
Raymond Mphakamisi Mhlaba, who passed away on 20 February 2005;
2) recognises that Oom Ray was a South African patriot who lived a
selfless life, making an enormous contribution to the struggle for
peace, democracy and social progress in our country and for humanity
in general;
3) recognises that Oom Ray was a founder member of uMkhonto weSizwe
and became the leader of uMkhonto weSizwe after the arrest of Nelson
Rolihlahla Mandela;
4) notes that, having spent more than two decades on Robben Island
with comrades such as Nelson Mandela, Walter Sisulu, Govan Mbeki,
Alias Motswaledi, Ahmed Kathrada, Wilton Mkwayi and yours truly …
[Laughter.]
... he remained committed to this cause till the last seconds of his
life;
5) notes that, for the contribution he has made, the African National
Congress awarded him the Isitwalandwe Seaparankwe Award in 1992 and
the South African Communist Party awarded him the Moses Kotane Award
in 2002 for his contribution in building the party and his service
to the working class and the poor;
6) recalls that Oom Ray joined the South African Communist Party in
1943 and in 1944 he joined the African National Congress and that he
was amongst the volunteers in the Eastern Cape who led the defiance
campaign of 1952 and also the first to be arrested for defiance
campaign activities, for which he earned the nickname Vulindlela;
and
7) further recalls that Oom Ray was the first Premier of the Eastern
Cape from 1994 to 1996 and that he took up the post of South African
Ambassador to Uganda from 1997 to 2001, when he retired from active
public life.
Thank you. [Applause.]
Dr J T DELPORT: Geagte Voorsitter, dit is ’n voorreg om hierdie mosie te steun en ’n paar woorde te sê by hierdie geleentheid waar die Parlement hulde bring aan die nagedagtenis van Raymond Mhlaba.
Die eerste openbare debat tussen ’n lid van die destydse F W de Klerk- regering en ’n leiersfiguur in die ANC het in 1990 plaasgevind by die Setlaarsmonument, Grahamstad. By dié geleentheid het ekself, toe ’n Adjunkminister, en Ray Mhlaba opgetree. Ek kan vandag sê, as alle debate maar so rustig, so sonder verbittering en so toekomsgerig kon wees, sou dit goed gegaan het in Suid-Afrika.
Ná 1994 was ek die enigste lid van die opposisie wat in sy uitvoerende raad in die Oos-Kaap gedien het. Ons verbintenis was dus besonder, ten spyte van ons besliste politieke verskille.
Beide ek en my eggenote het net die hoogste waardering vir die wyse waarop oom Ray ook vir ons geakkommodeer het. In ’n sekere sin was ons selfs partykeer verleë oor die ereposisie wat hy aan ons langs hom en sy dierbare eggenote Dideka toegeken het by funksies wat eintlik ANC-geleenthede was, en nie regeringsfunksies nie. Dit het nie vir hom saak gemaak nie.
Hy kon vir homself lag, soos toe ’n polisiekolonel onverwags in die vergadering van die uitvoerende raad ingestap het om ’n boodskap te bring, en oom Ray sigbaar geskrik het, net om daarna verlig te glimlag en te sê:
To think it is my own, and I still feel a little bit of shock when I see a senior policeman.
Hy kon dit verwerk … (Translation of Afrikaans paragraphs follows.)
[Dr J T DELPORT: Hon Chairperson, it is an honour to support this motion and to say a few words on this occasion when Parliament is paying tribute to the memory of Raymond Mhlaba.
The first public debate between a member of the former government of F W de Klerk and a leading figure of the ANC took place in 1990 at the Settler’s Monument, Grahamstown. On that occasion Ray Mhlaba and I, a Deputy Minister then, were the speakers. Today I can say that if all debates could be so peaceful, without bitterness and aimed at the future, things would go well in South Africa.
After 1994 I was the only member of the opposition who served in his executive council in the Eastern Cape. Therefore our association was exceptional despite our unquestionable political differences.
My wife and I both have only the highest regard for the way in which Oom Ray accommodated us as well. To some extent we were sometimes even surprised at the position of honour he bestowed upon us to be seated next to him and his dear wife Dideka at functions, which were actually ANC functions and not government functions. It did not matter to him.
He was able to laugh at himself, as was the case when a police colonel unexpectedly walked into a meeting of the executive council to pass on a message and Oom Ray, visibly shaken, just smiled with relief afterwards and said:
To think it is my own, and I still feel a little bit of shock when I see a senior policeman.
He could deal with it …]
… because Oom Ray was a kind man. He bore no hatred. He only sought co- operation, friendship and the improvement of the lives of all our citizens. Right up to the end, in his sickness, he preached reconciliation, love and understanding. For me he will not be remembered in the first instance as an administrator or politician, but as a man leading others by his own example to a better future, a future of the rainbow nation.
Van hom kan ek werklik sê:
Stil broers, daar gaan ’n man van vrede verby.
Ons groet hom met agting. [Applous.] (Translation of Afrikaans sentences follows.)
[I can really say of him:
Be quiet, brothers, a man of peace is passing by.
We salute him with respect. [Applause.]] The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Holomisa.
Mnu V B NDLOVU: Ngisacela ukukhuluma, Sihlalo. [May I talk, Chairperson?]
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, I am very sorry but I didn’t see you first. So, may I recognise the hon Holomisa whom I did see and I will recognise you subsequent to that.
Mr B H HOLOMISA: Hayi, ungathetha, mkhuluwa wam, umdala kunam. [Go ahead, my brother, you are much older than me.]
Mnu V B NDLOVU: Ngiyathokoza. Egameni leqembu le-IFP, sifuna ukudlulisa ukukhala kwethu sikubhekise kumndeni kababa uMhlaba, izihlobo zakhe zonke, abangani bakhe bonke neqembu lakhe uKhongolose kanye namakhomanisi. Sikusho lokhu … [Ubuwelewele.] Ayikho into ehlekisayo. Sikusho lokhu ngoba siyazi ukuthi ukudlula kukababa uMhlaba emhlabeni kuyinxeba elikhulu ebuholini balawa maqembu engikhuluma ngawo.
Sikusho lokhu ngoba siyazi ukuthi ulisebenzele le lizwe kwaze kwaba sekugcineni. Ukuqokwa kwakhe ukuba abe uNdunankulu wokuqala emuva kokuthi sikhethile ngo-1994 kwakukhombisa khona ukusebenzela isizwe nokusebenzela izwe. Ukuqokwa kwakhe ukuthi ayomela izwe e-Uganda futhi asebenze ngokuxhumana ne-Rwanda kwakukhombisa ukumethemba njengoba eshilo okhulume ngaphambilini ukuthi waze waklonyeliswa ngeSithwalandwe.
Thina beqembu leNkatha Yenkululeko siyahlupheka njalo ngokuhamba kwabantu abadala, okokuqala. Okwesibili, siyahlupheka ngokuhamba kwabantu abanobuhlakani, abanobuholi bokwakha isizwe nokwakha ubuntu phakathi kwabantu. Ngakho-ke sidlulisela ukukhala kwethu kuMongameli weqembu likaKhongolose nakusihlalo weqembu lamakhomanisi nawo wonke amalungu abo. Balahlakelwe kanye nezwe lonke laseNingizimu Afrika. Silahlekelwe sonke ngoba ubelwela uxolo kwaze kwaba sekugcineni. Sengathi umphefumulo wakhe ungaphumula ngokuthula. [Ihlombe.] (Translation of isiZulu speech follows.)
[Mr V B NDLOVU: Thank you. On behalf of the IFP, we wish to express our condolences to the family of Mr Mhlaba, all his relatives, his friends, and his party, the ANC, together with the South African Communist party. We say this … [Interjections.] There is nothing funny. We say this because we know that the passing on of Mr Mhlaba is a big blow to the leadership of the parties mentioned.
We say this because we know that he worked for this country until the end. His appointment as the first Premier after the 1994 elections was an indication of his work done in the service of the nation and the country. His appointment as representative of the country in Uganda, and working hand in hand with Rwanda, was an indication of trust, as the previous speaker indicated, and that he was very highly regarded.
Firstly, we as the IFP are disturbed by the passing on of older people. Secondly, the passing away of intelligent people, with leadership qualities to build the nation and to engender humanity amongst people, disturbs us. Therefore we extend our condolences to the ANC government and the chairperson of the Communist Party and all their members. They have lost together with the whole country of South Africa. All of us have lost a person who fought for peace until the end. May his soul rest in peace. [Applause.]]
Mr B H HOLOMISA: Chairperson and hon members, once again we are called upon to bid farewell to a member of that generation which was at the forefront of the efforts to create a democratic South Africa that gives freedom and equality to all her citizens. We extend our sincerest condolences to the family, friends and colleagues of the late Raymond Mhlaba.
Oom Ray will forever stand in the select pantheon of leaders who were prosecuted at Rivonia and jailed on Robben Island. We are indebted to those leaders who were willing to face death and persecution in pursuit of democracy and freedom for all.
Oom Ray’s contribution to our freedom did not end there. He was the first Premier of the Eastern Cape, where he will be remembered for his willingness to listen to all sides and consider all arguments before taking decisions. While some were critical of his continuous search for consensus and complained about the lengthy nature of proper consultation, history will prove that true democratic leaders follow this route and no other.
Siya kukhumbula ukuba uTata uOom Ray ebekwangumntu owonwabisayo. Kwakhe kwathiwa kuye kwesinye isihlandlo: “Mhlekazi, awubonakali phakathi kwabantu.” Waphendula ngelithi: “Heyi, andingomoya oyingcwele, andinakubakho kwindawo yonke.” [Kwahlekwa.]
Sithi ke kusapho lukaOom Ray nakumbutho wakhe, anga angalala ngoxolo, akhatshwe kakuhle ngempelaveki. Enkosi. [Kwaqhwatywa.] (Translation of Xhosa paragraphs follows.)
[We will remember that hon Oom Ray was full of humour. One time he was asked why he was hardly ever seen in public places. His replied by saying, “ I am not the Holy Ghost, I cannot be present everywhere”. [Laughter.]
We say to his family and his organisation, may his soul rest in peace, and have a decent funeral. Thank you. [Applause.]]
Mr L M GREEN: Madam Chairperson, hon members, it is with regret and great sadness that the ACDP has learnt of the passing on of a veteran of the ANC, the honourable Raymond Mhlaba, former Premier of the Eastern Cape.
Oom Ray, as he was affectionately known, was a man of principle. When he became a member of the Non-European Laundry Workers Union in his youth, he fearlessly defended the rights of workers. He took a bold stand against the exploitation of labourers in the laundry industry, and throughout his life he defended the poor and the oppressed.
He, alongside other veterans and Rivonia trialists such as former President Nelson Mandela, Walter Sisulu, Govan Mbeki, the hon Andrew Mlangeni and others, will be recognised by historians as amongst those who paid a heavy price for the freedom of this nation. He was jailed with Nelson Mandela and other Rivonia trialists for 25 years on Robben Island for his role in resisting the policies of the government of the day. After his release from prison, he worked tirelessly to fulfil the vision of a new, transformed and better South Africa.
We wish to express our sincere condolences to the ANC, his close family, friends and the loved ones of the honourable Oom Ray. Our prayers are with his close family members during this time of grief. I thank you. [Applause.]
Mr C B HERANDIEN: Voorsitter, ons neem met hartseer kennis van die tragiese heengaan van Raymond Mhlaba Sondagaand in Port Elizabeth. [Chairperson, we note with sadness the tragic passing away of Raymond Mhlaba in Port Elizabeth on Sunday evening.]
Raymond Mhlaba, better known as Oom Ray, served his country with the utmost dedication and commitment, using his vast talent and energy. Oom Ray was die eerste ANC-lid wat in Suid-Afrika gearresteer is in die 1952-versetveldtog. Hiervoor is hy vereer met die bynaam Vulindlela …[Oom Ray was the first ANC member who was arrested in South Africa in the 1952 resistance campaign. For this he was honoured with the nickname Vulindela …]
… he who opens the way.
Today we bid farewell to a man who offered himself and his knowledge to the struggle. His contribution will not be forgotten. On behalf of the NNP and the people of South Africa I wish to express our deepest condolences to his family, his loved ones, the ANC and the SACP. I thank you. [Applause.]
Mrs P DE LILLE: Chairperson, the ID would like to extend our condolences to the family, the ANC and the SACP on the passing on of a great man. Every time one of the liberation heroes passes on we are rudely reminded that a generation that has fought so hard for the freedom of this country is beginning to leave us one by one.
Oom Ray is certainly one of those heroes, but it is important for us to continue building on what they have started, leading by example, showing commitment to our country, working tirelessly for our people, and Oom Ray certainly did that, not only during the struggle against apartheid, but also after 1994. Hamba kahle, Oom Ray. [Go well, Oom Ray.]
Rre B E PULE: Ke a leboga, Modulasetilo. Re le mokgatlo wa UCDP, le rona re gamaregile go utlwa ka ga loso la ga rre Raymond Mohlaba. Fa re lebelela dingwaga tsa gagwe, re leboga Modimo gore o bo o re mo file. Rona ka segarona re a tle re re lerapo fa le le monate kgotsa nama fa e le monate wa e kokona. Jaanong re mo kokonne. O tlogetse ditiro tsa gagwe, re a di bona mme re rata go tlisa matshidiso mo mokgatlong o a neng a dira le ona wa ANC, SA Communist Party le ba bangwe ba a neng a dira le bone. Re rata go tlisa matshediso gape mo lelapeng la gagwe gore mme le bana le losika lotlhe ba amogele gore Modimo o ne o ba file, Modimo o tsere mme go bakwe leina la one. Ke a leboga. [Legofi.] (Translation of Tswana paragraph follows.)
[Mr B E PULE: Thank you, Chairperson. The UCDP is also very sad to hear about the death of Mr Raymond Mhlaba. When we look at his years, we thank God for having given us Mr Mhlaba. In our language there is a saying that translates to “when a bone or meat is tasty, we enjoy it”. We have enjoyed being with him. He has left an indelible mark and we are witnesses to his work. We would like to extend our condolences to his party, the ANC, of which he was a member, the SA Communist Party and those who used to work with him. We also wish to extend our condolences to his wife and children. His whole family should accept that it is God who has given and it is God who has taken, and let his name be praised. I thank you.] [Applause.]
The HOUSE CHAIRPERSON (Ms C-S Botha): I regret that there was no translation.
Mr P J NEFOLOVHODWE: Madam Chairperson, on behalf of Azapo we wish to join the ANC and the SA Communist Party and all people who knew and associated with Comrade Mhlaba in expressing our heartfelt condolences to his family and friends.
Azapo remembers Comrade Mhlaba for his dedication to the emancipation of the working class and his courage and sacrifice. He gave his entire life for the noble goals of peace, freedom, democracy and independence. As Azapo we salute this gallant son of the soil and freedom fighter. Sithi hamba kahle, oom Ray [Rest in peace, Oom Ray.]! Siyophinda sibonane [We will meet again.]! Thank you. [Applause.]
Ms S RAJBALLY: Madam Chair, the MF associates itself with conveying our condolences to the bereaved family of the late Mr Raymond Mhlaba. His deeds and contribution to our country in the struggle will always be remembered and will go down in history for our future generations to remember and know how the great Raymond discharged his duties.
Unfortunately Mr Raymond had very little time to enjoy his freedom, the freedom of democracy. May his soul rest in peace. Hamba kahle, ndodana yasemhlabeni wethu. [Go well, son of our soil.] Thank you. [Applause.]
Mr N T GODI: Chairperson, on behalf of the PAC we wish to express our heartfelt condolences to and solidarity with the Mhlaba family and the comrades movement on the occasion of the death of Comrade Raymond Mhlaba.
As illustrated by previous speakers, Comrade Mhlaba had distinguished himself as a dedicated freedom fighter, who not only fought against apartheid but also had the opportunity to contribute immensely to the democracy that we have had for the past ten years.
Like the PAC, Comrade Mhlaba was committed to a society that is democratic in form, nonracial in character and socialistic in content. Democracy we have achieved, a society that is free of the scourge of racism is still a work in progress, and a society that is egalitarian and socialistic is likewise a work in progress. I think those of us who remain behind are challenged to double and quadruple our efforts to realise the ideals for which Comrade Mhlaba and many other comrades have sacrificed their lives. [Applause.]
Dr P W A MULDER: Agb mev die Voorsitter en agb lede, die VF Plus assosieer homself met die mosie van roubeklag vir die oorledene, Raymond Mhlaba, in die naam van die agb Hoofsweep. Ek wil graag namens die VF Plus ons opregte meelewing en simpatie betuig teenoor sy familie, sy naasbestaandes, sy geliefdes en ook teenoor die ANC, wat een van hul kollegas verloor het wat ’n lang pad saam met hulle in die stryd gekom het.
Dit was opvallend dat die oorledene, Raymond Mhlaba, hier aan die einde van sy lewe baie klem gelê het op versoening, nasiebou en samewerking, en dit kan vir ons elkeen ’n les wees, asook die vasberadenheid waarmee hy gestreef het vir die ideale waarin hy geglo het.
Die VF Plus steun graag die mosie en ons betuig ons opregte meelewing. Baie dankie. [Applous.] (Translation of Afrikaans paragraphs follows.)
[Dr P W A MULDER: Madam Chair and hon members, the FF Plus identifies with the motion of condolence for the deceased, Raymond Mhlaba, put forward by the hon Chief Whip. On behalf of the FF Plus, I would like to extend our sincere condolences and sympathy to his family, his next of kin, his loved ones and also to the ANC for losing one of their colleagues, who came a long way with them through the struggle.
It is noteworthy that the deceased, Raymond Mhlaba, towards the end of his life set great store by reconciliation, nation-building and co-operation, and that can be a lesson to each one of us, as well as the resolve with which he strove for the ideals he believed in.
The FF Plus gladly supports the motion and expresses its sincere condolences. Thank you very much. [Applause.]]
Mnu Z J KATI: Sihlalo neNdlu yePalamente, le ndoda sithetha ngayo apha, uRaymond Mhlaba, ndaqala ukudibana nayo ngo-’52 apha embuthweni. Ngaloo mhla, wama-26 kuJuni, uRaymond Mhlaba wayesiya kwaphula imithetho yentswela- bulungisa, ephuma kwicawe yakwaDonki.
Wayefika evela ekhayeni lakhe. Wayengazi ukuba yayinguye owayeya kuthi aqale aye kungena ejele. Sasisazi ukuba umntu wokuqala owayeya kungena ejele yayinguRobert Maji. Wagula ke uRobert Maji, saze sakhupha uRaymond Mhlaba, efika evela ekhaya, ngokomyalelo we-ANC. Sidla ngokutsho ebantwini ukuba mabayibazele iindlebe imiyalelo ye-ANC. Ibalulekile imiyalelo ye-ANC kuba kaloku imenza umntu afane noMhlaba, asweleke engazange abe nazo izinto ezininzi ezisemzimbeni. URay wayewuthobele lo mbutho.
Wangena ejele nabantu abangama-8 000 phaya eNew Brighton, eBhayi. Wayengumntu wokuqala phaya eMpuma Koloni ukungena ejele. Ngoko ke, ndibulela kakhulu kubantu abathe bathabatha inxaxheba apha, benza kwaqondakala ukuba kumke igorha, uRaymond Mhlaba.
Le ndoda yaya phesheya kweelwandle ineqhuma elalilapha entloko, kodwa yabuya selingasekho iqhuma, lisusiwe ngaMakomanisi. Yathi ukubuya kwayo yaya kungena kwindawo ekuthiwa yi-Korsten phaya eBhayi, ikunye noWilton Mkwayi, kanti baya kungena kwindawo eyayinomlilo ovuthayo. Ndaya kubakhupha kuloo mlilo, ndabathatha ndaya kubalahla kwenye indawo, ukusuka apho ndaya kungena nabo eQonce, ndaphinda ndemka nabo ndaya kubalahla eRivonia.
Ngoko ke, uRay ubeyindoda enomqolo. Wanceda amavolontiya aKwazakhele esengxakini, evalelwe ngomonakalo owawenzeke eholweni. Ukuhamba kwenye indodana emhlophe kwenza ukuba nakanjani uRay aphakamise umsila kuba yayinguye yedwa inkokeli eyayisele inkulu eyayikhona phaya, kuba zonke ezinye zazisetrongweni. UOom Ray wazama ukuba senze indlela yokuba aphume loo maqabane.
Yindoda enesibindi kakhulu le singayo apha. Yindoda ekwaziyo ukuhlanganisa abantu, kuba into ebalulekileyo kwa-ANC kukuhlanganisa abantu. Ayibalulekanga into yokuba uthi, “ndiza kuvela phaya ndibe yinkokeli”. Okubalulekileyo kukuba ususwe ezantsi ngabantu bakunyuse bakuse phezulu. Ebeyindoda enjalo ku uRaymond Mhlaba.
Siyayibulela ke yonke imibutho yezopolitiko ethe yathabatha inxaxheba kulo msitho wokuvakalisa uvelwano kusapho lwale ndoda. Ligorha eli singalo apha. Namhlanje akuwanga umthi nje phaya eBhayi, kuwe umthi omkhulu. Wonke umntu uya kuthi ehleli phaya eBhayi, nakwezinye iindawo, aqonde ukuba iMpuma Koloni yakhiwe nguRaymond Mhlaba kunye noGovan. Lawo ngamadoda akhe laa Mpuma Koloni nabangele ukuba ibe kulaa mgangatho ikuwo namhlanje.
Lilonke ke ndithetha ukuthi asazi ukuba siza kusala nabani. Azi ukuba ngubani oza kusala endaweni yakhe? Kodwa ke sithi, “phambili, madelakufa”. Akuzange kukhalwe, kuhlalwe kusongwe izandla; kukhalwa kusiyiwa emfazweni. Masiye phambili maqabane.
UOom Ray andinakuthetha kakhulu ngaye, zinkosi. Ngumlweli wamalungelo abasebenzi lowa. Ukuba bendingathetha ngaye uOom Ray belingatshona eli lishushu ilanga, kuba kaloku ndimazi njengokuba naye ebendazi. Kukho nezinye ke esingena kuzithetha … [Kwahlekwa.] Ezo zifuna mna naye, okanye mna nawe sihleli ndaweninye, hayi nje zithethwe esidlangalaleni.
Ndithetha ukuthi ke sibulela kakhulu kule Ndlu. Enkosi, nangomso. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)
[Mr Z J KATI: Speaker and hon members of Parliament, I met Raymond Mhlaba in the ANC struggle in 1952. On this day, 26 June, he was going to protest against injustices committed by the Methodist Church in Southern Africa.
He did not know that he would be the first person to be imprisoned, until he arrived home. The person who was supposed to be jailed first was Robert Maji. Robert Maji fell ill and Raymond Mhlaba had to stand in on being mandated by the ANC.
We usually urge people to heed the calls from the ANC. The mandates are very important as they make a man stay healthy. Raymond Mhlaba respected the ANC.
He was put in prison with 8 000 people in New Brighton, Port Elizabeth. He was the first person in the Eastern Cape to be jailed. I thank everyone here for supporting Raymond Mhlaba as a hero.
He went overseas with a tumour on his brain, but came back without it, as communists had removed it. With Wilton Mkwayi, Raymond Mhlaba went to Korsten in Port Elizabeth, a place where there were many problems during the apartheid era. I rescued them from that situation and took them to another place, and we went to King William’s Town and later to Rivonia.
Raymond Mhlaba was a man with backbone. He helped the volunteers from Kwazakhele who were jailed because of some conflict in the hall. A white man had died, which compelled him to stand up as he was the only old leader who was not in jail. Oom Ray tried everything to have the comrades released.
He was a brave man. He had the skill of uniting people because unity was very important to the ANC. Being a self-made leader is not that important, what is important is that people elevate you to the position of their leader. The latter describes Raymond Mhlaba the best.
We say thank you to all political organisations that have taken part in bidding farewell to Raymond Mhlaba on this occasion. He was a hero. A great man has fallen. People in the Eastern Cape will soon realise that Raymond Mhlaba and Govan Mbeki have developed the province. These two people contributed to the growth of the Eastern Cape so that today it reflects those standards.
In all, I do not know who is going to take care of us. Who will take his place? Nevertheless, we say: Forward! to the warriors. We cannot afford to cry and fold our arms; we must cry and go forward. Let us move forward, comrades.
Oom Ray’s works speak volumes about him. He was a trade unionist. I knew him very well and I can talk about him until tomorrow. There are other issues that I cannot talk about here … [Laughter.] I can relate those issues outside, and not in public.
I appreciate what the House has done. Thank you, do so again. [Applause.]]
The HOUSE CHAIRPERSON (Ms C-S Botha): The condolences of the House will be conveyed to the family.
Debate concluded.
Motion agreed to.
PORTFOLIO COMMITTEE ON FINANCE TO REPORT TO HOUSE
(Draft Resolution) The CHIEF WHIP OF THE MAJORITY PARTY: Madam Chair, I move without notice:
That, upon the introduction of the Main Appropriation Bill, the Portfolio Committee on Finance, notwithstanding Rule 290(3), reports to the House within fourteen consecutive working days.
Thank you.
Agreed to.
INTERNATIONAL MOTHER LANGUAGE DAY
(Member’s statement)
Mong M J G MZONDEKI: (ANC): Ke a leboha, Modulasetulo. Maobane e ne e le Letsatsi la Matjhaba la Puo. Mokgatlo wa Matjhaba a Kopaneng o ne o nke qeto ya letsatsi lena dilemong tse tsheletseng tse fetileng. Letsatsi lena le kgethetswe ho kgothaletsa tshebediso le tshireletso ya dipuo tsa habo rona. Lekgotla la Afrika Borwa le thehetsweng ho etella pele letsholo lena le kene ka setotswana mosebetsing ona, ho kenyeletsa phatlalatso moketeng wa maobane wa ho thakgola semmuso dipuo tse molaong profensing ya Kapa Bophirimela. Jwalo ka mokgatlo o moholo, ANC e rolela Mokgatlo wa Matjhaba kgaebana letsholong lena la ho kgothaletsa poloko ya mafa ana a rona, tudisano le phedisano-mmoho, le ha re fapane.
Batho bohle ba tla ba le tokelo tse lekanang tsa ho sebedisa puo tsa bona le ho tsweletsa botjha makgabane a meetlo le botjhaba ba bona. Ho tloha ha esale qalong, ntweng ya boitseko kgahlanong le bokoloniale mmusong wa kgethollo, re ntse re tseka ho kgaba le ho sebedisa puo tsa rona tse neng di nyefolwa. Ke ntho e ntle ha dilemong tsena tse 50 tsa Tokomane ya Tokoloho, re tiisa botjha hore meetlo yohle e tla ba le tokelo tsa botho tsa mantlha, ka ho lekana. Ka tsela e jwalo … [Nako e fedile.] [Mahofi.] (Translation of Sotho member’s statement follows.)
[Mr M J G MZONDEKI (ANC): Thank you, Chairperson. Yesterday was International Language Day. The United Nations took a decision about this day six years ago. This day was chosen to encourage the use and protection of our languages. The South African Board that was formed to lead this campaign is hard at work, and an announcement was made at yesterday’s party to officially launch languages that are official in the Western Cape province. As the majority party, the ANC salutes the United Nations in their campaign to encourage the preservation of our heritage, togetherness in our diversity.
All the people will have equal rights to use their languages and to promote the beauty of their cultures and traditions. Ever since the struggle against colonialism during the apartheid era, we have been striving to use our languages, which were despised. It is a good thing when in 50 years of the Freedom Charter we can reaffirm that all cultures have equal human rights. In that way … [Time expired.] [Applause.]]
USING THE BUDGET FOR JOB CREATION
(Member’s statement)
Mr I O DAVIDSON (DA): Madam Chair, the national Budget should be the most important job creation tool in the government’s box. Yet, year after year, the Minister of Finance Trevor Manuel presents budgets which contain precious few direct interventions to deal with our chronic 40% unemployment rate crisis.
I challenge Minister Manuel, who has so successfully turned our debt-ridden national accounts into a well-functioning, balanced fiscus, to announce a bold set of tax and expenditure reforms designed to create millions of jobs. I offer the DA’s alternative national budget, which I presented yesterday, as a guide to such reforms. [Interjections.]
Our budget delivers, firstly, tax breaks to both companies and individual households, to encourage them to create permanent employment; secondly, broad reforms on retirement funds and other taxes to encourage domestic and foreign investment; and thirdly, targeted interventions to grow our skills base through effective education, bursary and opportunity vouchers and training incentives.
If Minister Manuel breaks the Treasury’s tradition of weak answers to the job creation question with such bold reforms, he will set our economy on a new path of job creation and economic prosperity. [Applause.]
FATAL ACCIDENTS IN THE FUEL-PRODUCING INDUSTRY
(Member’s statement)
Prince N E ZULU (IFP): Chairperson, in the fuel-producing industry Sasol and Natref have experienced unprecedented numbers of fatal incidents, causing death and misery to some of the workers and their families in the past couple of months. Gas leaks and mechanical failures have been responsible for these incidents.
Workers are the breadwinners in every family unit. Life is more precious than gold itself. Precautionary measures are a must in every work situation. Workers need to be skilled and reskilled in every sense of the word.
The IFP takes this opportunity to express its heartfelt sympathies to the families and relatives of workers who fell victim to these blasts and urges management to do all possible to avoid similar incidents in the future. We appreciate the efforts of the Minister of Labour and his department in raising his voice in condemning these incidents and calling for a speedy solution.
The labour unions at these plants have acted swiftly, decisively and honourably in bringing the facts to the table and we urge management to consider seriously all the proposals, as such proposals are informed by research and experience. We hope the Compensation Commission will not delay
in fulfilling their mandate.
A word of thanks goes to the Portfolio Committee on Labour for its concern and oversight conducted in loco. I thank you.
RESEARCH AT WITS LEADS TO CHEAPER HIV TESTING
(Member’s statement)
Prof I J MOHAMED (ANC): Thank you, Madam Chair. The ANC wishes to recognise and commend Prof Deborah Glencross and her team at Wits University for devising an effective and reliable method of testing and monitoring immune levels in HIV/Aids patients. The Food and Drug Administration of the USA has accredited the South African Aids technology that radically reduces the cost of monitoring immune levels in Aids patients.
The exorbitant cost of monitoring HIV/Aids is a major stumbling block in treating the continent’s most devastating disease. With this groundbreaking research, Prof Deborah Glencross will save South Africa, Africa and countries further afield billions of rands. The World Health Organisation is supporting Prof Glencross in establishing a quality support programme for CD4 testing across Africa. The test will provide a cost saving of 70% to 80% over traditional HIV testing. The test will cost R60, compared to the current test which costs R1500.
We in the ANC join the Department of Health and health workers in general in saluting Prof Glencross for her meritorious contribution in the great battle against this scourge which afflicts humanity. I thank you. [Applause.]
RECENT MORTALITY STATISTICS
(Member’s statement)
Mr J BICI (UDM): Thank you, Chair. The UDM notes with concern the recently released Statistics SA report on mortality and the causes of death in South Africa.
When official statistics tell us that for the period 1997 to 2002 there has been a 62% increase in adult deaths, we ought to be seriously concerned. Even more disturbing is the dramatic and escalating rate of deaths among people between the ages of 15 and 55. We know from other statistics that population growth for the corresponding period does not explain these deaths.
As the Statistician-General has acknowledged, this report provides evidence that the HIV/Aids pandemic is raising mortality levels and that Aids- related diseases are on the increase. The sheer scale of this pandemic presents a threat to the social fabric and economic prospects of our country. As a society we need to respond with even greater vigour to this crisis to prevent future infections and to provide treatment and support to those already infected and affected. Thank you.
A PEOPLE’S BUDGET TO ERADICATE UNEMPLOYMENT
(Member’s statement)
Mr A HARDING (ID): Madam Chair, the tenth anniversary of the end of apartheid and the first democratic elections in South Africa has been widely celebrated throughout the country. The government has used this occasion to congratulate itself on its performance in eradicating poverty and reducing inequality. However, a report last year by the United Nations presents a different picture to that painted by government.
The South African Human Development Report assesses progress made by the government in social development and policy-making. The key issues of poverty and inequality, access to basic services, environmental sustainability, employment and economic growth were examined.
One of the most significant issues affecting working-class South Africans is massive unemployment. Over the past nine years the rate of unemployment has steadily increased, with between 30% and 42% of the labour force caught in a vicious cycle of hope and unemployment. Between 5,2 million and 8,4 million South Africans are unemployed, depending on whether one applies the official definition or an extended definition of unemployment.
The report points out that being employed does not necessarily mean having full or adequate employment, with large numbers of people, predominantly women, underemployed. Low-quality jobs, characterised by poor working conditions and low wages, are prevalent in the economy, and only a small proportion of South Africans enjoy the benefits of high-quality jobs.
It is against this background that the ID supports the call for a people’s budget that will aim to reduce unemployment, and protect and create quality jobs, meet basic needs, redistribute wealth, eradicate poverty, and bring about economic and social equality. I thank you. [Time expired.]
SAPS COMMENDED FOR EFFORTS IN FIGHTING CRIME
(Member’s statement)
Mr S MAHOTE (ANC): Mhlalingaphambili, umbutho wesizwe, i-ANC, wothulela umnqwazi amapolisa oMzansi Afrika ngokuthi gqolo esebenza nzima esusa imigulukudu nemigewu phakathi kwabantu. Le mpumelelo ingqinwa kukubanjwa kukanqalintloko ominyaka ingamashumi mathathu ananye ngenj’ixukuxa eBhayi. Lo mrhanelwa ubefunwa kumaphondo amathathu malunga neziganeko zokukhuthuzwa kuxhotyiwe kunye nokuqweqwediswa kweemoto zabantu. Lo mrhanelwa sithetha ngaye uye wavela enkundleni.
Urhulumente oxhuzula imikhala uthembise abemi beli ukuba uya kuzama ngazo zonke iindlela, ebambisene nabahlali, ukuba wonke ummi weli ahlale ngokukhuselekileyo naseluxolweni.
UMqulu weNkululeko kunye noMgaqo-siseko ugunyazisa ukuba ezi zinto zenzeke. Le mpumelelo yamva nje ilandela ekhondweni lesithembiso esenziwe ngurhulumente osezintanjeni. Sithi phambili ngokulwa ubukrelemnqa, phambili! (Translation of Xhosa member’s statement follows.)
[Mr S MAHOTE (ANC): Chairperson, the ANC takes its hat off to the South African Police for working hard and apprehending criminals in our communities. The early-morning arrest of a 31-year-old-criminal from Port Elizabeth proves that efforts are made by the police. This suspect was pursued in three provinces for armed robbery and car hijacking. The suspect has appeared in a court of law.
The ruling party has promised South African citizens that it will ensure that, with the co-operation of the rest of society, everyone shall live in peace and security.
Those are the expectations tabled in the Freedom Charter and the Constitution.
The successes achieved by the police are a result of the promises made by the government. We say, forward to crime fighting, forward!]
PRESIDENT MBEKI’S STANCE ON ZIMBABWE’S PRESIDENT MUGABE
(Member’s statement)
Mr D H M Gibson (DA): Chairperson, as a prohibited immigrant in Zimbabwe, I object to President Mbeki’s defence of Mr Mugabe. The DA, the SACP, Cosatu and the whole world believe that the chances of a fair election in Zimbabwe are almost nonexistent.
Only our President and the ANC Youth League believe in Mugabe. The President is proud of his very good relationship with Mugabe. The ANC must be totally confused by the attitude of our President, because even our Minister of Foreign Affairs is starting to look embarrassed. I wonder if she knows what the President is doing.
President Mugabe is seen by most countries as a dictator and a tyrant. US secretary of state Condoleezza Rice describes Zimbabwe as one of the six outposts of tyranny. No one understands why Mr Mbeki continues to place his own reputation, Nepad and the AU itself at risk by supporting President Mugabe, who laughs at him and does what he pleases, knowing that President Mbeki lacks the will to bring him into line. What a difference between President Mbeki and Zimbabwe on the one hand, and West-African leaders on Togo on the other: decisive and principled action can bring results. [Applause.]
ANC’S POSITION ON PARLIAMENTARY TRAVEL VOUCHER INVESTIGATION
(Member’s statement)
Mr D M GUMEDE (ANC): Chairperson, the ANC has noted the appearance in court on Friday, 18 February 2005, of a number of serving and former members of Parliament in relation to the parliamentary travel voucher investigation. It further notes the postponement of the case to June 2005.
The ANC reiterates the position it has consistently held on this matter, namely that, firstly, the law must take its course without fear or favour; secondly, the outstanding areas of the investigation should be concluded as thoroughly and as speedily as possible; thirdly, the ANC remains ready to provide whatever assistance it can to the investigation, including encouraging the full co-operation of its members; and fourthly, the principle of presumption of innocence until found guilty should be respected by all.
The ANC continues to view this matter as a serious one which calls for due process to be adhered to and respected. We furthermore support the decision by the Joint Rules Committee to adopt a proposal by the Presiding Officers to establish a multiparty task team to consider the findings and recommendations contained in reports prepared by PriceWaterhouseCoopers. Thank you. [Time expired.] [Applause.]
NAME CHANGE OF PRETORIA
(Member’s statement)
Mnr K J MINNIE (DA): Voorsitter, die ANC het die inwoners van Pretoria jammerlik gefaal met sy emosiebelaaide veldtog om die naam van Pretoria te verander. Pretoria is die administratiewe hoofstad van Suid-Afrika. Sy grense is afgebaken en geregistreer by the Landmeter-generaal. Die bemarkingswaarde van Pretoria, nasionaal en internasionaal, moet aangewend word.
Wanneer regerings besig is om te faal, word daar na ander opsies gesoek om mislukkings te verbloem. Die burgemeester van Tshwane voel die druk van swak dienslewering en gebruik emosionele veldtogte om die aandag van sy swakhede af te lei. Ons beleef weer eens die bekende kat-en-muis-speletjie van die ANC. Wanneer die feite nie meer jou argument pas nie, verander jy doodeenvoudig die feite.
Nie eens R1 miljard laat die ANC van sy bisarre gedagte afsien nie. In die gees van die ooreenkoms wat in 2000 ten opsigte van die Tshwane-naam bereik is, behoort die President persoonlik in te gryp om die naam van Pretoria te behou. Ek dank u. (Translation of Afrikaans member’s statement follows.)
[Mr K J MINNIE (DA): Chairperson, the ANC has failed the residents of Pretoria miserably with its emotion-laden campaign to change the name of Pretoria. Pretoria is the administrative capital of South Africa. Its borders have been demarcated and registered with the Surveyor-General. The marketing value of Pretoria, nationally and internationally, must be applied.
When governments are failing, they seek other ways to cover up failures. The mayor of Tshwane is feeling the pressure of poor service delivery and uses emotional campaigns to divert attention from his shortcomings. We are once again experiencing the well-known game of cat and mouse by the ANC. When the facts do not suit one’s argument any longer, one simply changes the facts.
Not even R1 billion makes the ANC give up this bizarre idea. In the spirit of the agreement reached in 2000 regarding the name Tshwane, the President should intervene personally to keep the name of Pretoria. I thank you.]
INSTABILITY AT CERTAIN UNIVERSITIES
(Member’s statement)
Mr A M MPONTSHANE (IFP): Madam Chair, the IFP is concerned about the instability at some universities in the country. Whilst we expected birth pains during the mergers, the alleged causes of instability call for immediate and decisive action by both the Department of Education and the management of the institutions concerned.
We call for constraints on the part of students while we support their right to protest. The destruction of public property which has accompanied such protests cannot be condoned. We also call on the Department of Education to ensure that the equalisation process in terms of salaries, student fees and conditions of service is fast-tracked; otherwise we’ll see endless protests.
The previously disadvantaged universities must not be made to feel that they are being swallowed by the previously advantaged institutions in these mergers. Give and take is a sine qua non in these educational marriages.
CONGRATULATIONS TO FEMALE SOCCER REFEREE
(Member’s statement) Ms S H NTOMBELA (ANC): Ke a leboha, Modulasetulo. Re rata ho phahamisa le ho neha tlotla ho morwetsana, Matankiso Thite, ya dulang mane Thaba-Bosiu, Qwaqwa, ho la Foreistata. Ke yena feela ka hara porofensi ya Foreistata, motho e motshehadi, eo e leng moletsaphala wa netebolo le bolo ya maoto. Re utlwile hore le ba lefapha la Fifa ba mo ananetse. Re re tswela pele ka ho etsa mosebetsi o motle moo mahaeng. Lefapha la tsa dipapadi, le kopaneng le wena ha ba ne ba le leetong la diphuputso ka Foreistata, ba re “kgabane, o a hlompheha, Matankiso.” Ke a leboha. (Translation of Sotho member’s statement follows.)
[Thank you, hon Chairperson. We would like to pay tribute to a young woman, Matankiso Thite, who resides in Thaba-Bosiu, Qwaqwa, in the Free State. She is the only female in the Free State province who is qualified as a referee for both netball and soccer. We heard that she got recognition even from FIFA. We say, continue with the good work over there in the rural areas. The department of sport officers, whom you met when they were doing research in the Free State, say; “Lady, you are indeed honourable, Matankiso.” Thank you.]
REFUSAL OF RELIGIOUS LEADERS TO PROMOTE CONDOMS
(Member’s statement)
Mr S N SWART (ACDP): Madam Chair, the ACDP commends the stance of religious leaders who told the Minister of Health, Manto Tshabalala-Msimang, that they could not promote the use of condoms. Instead they advocate sexual abstinence and faithfulness to partners as elements of the fight against HIV/Aids.
According to media reports, the Minister of Health insisted the use of condoms was a matter of individual choice. The clash of views, according to media reports, emerged after the Minister of Health met with these religious leaders across the spectrum yesterday. Chairman of the Religious Leaders’ Forum said, and I quote:
All religious heads expressed the strong view that there should be a greater emphasis on faithfulness and abstinence as opposed to the use of condoms.
The ACDP has consistently supported the call for sexual abstinence and faithfulness to partners, and requests that the Minister of Health follow a similar approach of emphasising these aspects, with less emphasis on the usage of condoms. I thank you.
ZIMBABWE ELECTIONS
(Member’s statement)
The CHIEF WHIP OF THE MAJORITY PARTY: Sifuna ukuvakalisa njengeANC ukuba asigungqi nokugungqa kundlela esiwuphatha ngayo umba waseZimbabwe. Le ndlela siwuphatha ngayo lomba iphumela kumava neemfundiso esizifumeneyo njengabantu abanonxulumano ulunzulu nabantu baseAfrika jikele, kwananjengabantu abanephupha elinye ngeAfrika. Siyamangaliswa bobubugorhana bexeshana obuqala ukuthi qhanbu, gqi! ngoku. Obabungazange bubekho ngelonaxesha obabufuneka ngalo kusiliwa idabi lenkululeko kweli lizwe.
Ayizange yaviwa naphina into yokuthi unganyanzelisa uyokungena endlwini yomntu, kungakhathaliseki ukuba wenza ntoni na endlwini yakhe. Ukuze ube noncedo kufuneka ufumane imvume yomninimzi, ukuba ngaba uyalidinga na uncedo lwakho.
Ukunyanzelisa kwenza ukuba sikrokre ukuba yindelelo kubantu abamnyama leliqela labantu abamhlophe. Sizakuqhubeka ngokuthethana neZimbabwe. Sinethenba elikhulu lokuba unyulo lwakhona lamkeleke kwizizwe zonke. Enkosi. (Translation of Xhosa member’s statement follows.)
[We, as the ANC, want to say that we are not moving away from the manner in which we are dealing with the Zimbabwe issue. The manner in which we are dealing with this issue stems from our experience, and the teachings we received as people with strong communication with people of Africa generally, also as people sharing the same dream for Africa. We are amazed at this heroism of the moment, which is only emerging now. This never existed during the time it was needed when there was a struggle for freedom in this country.
It has never been heard anywhere that someone should forcefully gain entry into the house of someone else, and that he does not even care what that person does in his house. In order for you to be of assistance, you need to get permission from the owner of the house, if he needs your assistance.
To do things forcefully makes us suspect that white people are being disrespectful towards blacks. We are going to continue negotiating with Zimbabwe. We hope indeed that their elections will be accepted by all nations. Thank you.]
ANC’S MANAGEMENT OF THE BUDGET
(Minister’s response)
The DEPUTY MINISTER OF SAFETY AND SECURITY: Chairperson, I would like to rise on the issue of the budget raised by the DA, the DA who had ample opportunity to influence the budget of this country for the benefit of all. Instead, for many, many years they sought to support a system and a regime that was using the resources of this country and the budgets for the benefit of the minority, to the detriment of the majority. [Interjections.]
When we took over as the ANC, the economy of this country had experienced negative growth for a decade. Since we took over the economy grew by 2,8%. Last year it grew by 3% and this year it is growing by 4%. It’s the result of the management of the budget by this organisation, the ANC, which is in government today.
Interest rates are at an all-time low, inflation is low, consumer spending is high, and the economy is growing because of the way we are managing the resources. We have ensured that through our management of the resources, the budget in particular, we are creating equity and equality in this country. The DA is therefore the last party that can come and preach to us regarding what we must do with the budget of this country. [Applause.]
AIDS PREVENTION AND ZIMBABWE ELECTIONS
(Minister’s response)
The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Chairperson, regarding the issue that was raised by the hon member supporting the religious leaders on their stance, I wish to indicate that it will be a sad day when we take a one-track approach in dealing with the problem we face with regard to HIV/Aids.
If one looks at the comprehensive plan of government to deal with HIV and Aids, it deals with all three issues: issues of prevention, issues of treatment and issues of care and support. I do not think anybody has said we should not deal with issues of prevention, among which is also the issue of abstinence. But it would be a fallacy to say that we should not appeal to people who decide to engage in unsafe sex in their homes to protect themselves and their partners, and therefore to say that we will stand by abstinence no matter what happens.
I think the approach that government has taken does appreciate that for the sake of prevention we need to strengthen the delaying of engaging in sexual activity, abstinence where it is possible, but where it is not, condoms must be used to protect oneself as well as others.
I should also like to support hon Chief Whip Goniwe in his indication of the approach that government and the ANC has taken in dealing with the issue of Zimbabwe. I think it would be a mistake if we as this country think Zimbabwe is an extension of South Africa. I think that is a mistake.
On issues of human rights violations, this government has spoken out. We have engaged on issues of ensuring that there is a free and fair election in Zimbabwe, not on platforms but with the government of Zimbabwe and the MDC. And I think it is unfortunate that hon Gibson starts attacking the President in his personal capacity, because this is the position of this government and the ANC in engaging on the matter of Zimbabwe. Obviously, we might differ. We agree that on some of the matters we will agree to differ. But I think it would be unfortunate to start isolating an individual when dealing with matters of policy. [Applause.]
UNREST ON CAMPUSES
(Minister’s response)
The MINISTER OF EDUCATION: Chairperson, I am rising to speak on the matter with respect to protests on a number of campuses throughout the country, which was raised by the hon Mpontshane. I do not think anybody has expressed their concern better than the Department and Ministry of Education. We have indicated that there is no justification for violent and irresponsible action by any student on any of the campuses of our country, and I think that is where we must begin.
The mergers are not the cause. There is no reason for anyone to act in the manner that we have observed on television in recent days. It is absolutely unacceptable and I object to it.
Secondly, the mergers will not result in an equalisation of staff salaries, campus fees, etc. That is not going to happen, because you go up, you go down - it is a deliberate engagement of institutions that we should have in order to decide exactly what kind of framework there should be. But the sort of equalisation hon Mpontshane refers to definitely won’t be the result.
We have had a number of institutions approach us, indicating that they have difficulties with respect to the fee structure, and we have been able, when approached, to arrive at a result that avoids the kinds of situations we are seeing on our campuses.
A third point: We have played a role in resolving disputes. Therefore, to call on us to be decisive shows absolutely a lack of appreciation of the fact that our officials do not sleep, spending time on the campuses, avoiding the kind of trouble that we have seen. I think they have to be congratulated for the role that many of them have played in assisting to resolve the disputes, without taking any public centre stage.
I have stressed the need for engagement on campuses, because in many of the cases, hon Mpontshane, we find that a lot of the leadership of the institutions have never had a proper meeting with their SRCs. If you don’t engage the young people, where else do they express some of the concerns that they have? The manner of expression is wrong, but the need for engagement is right.
You cannot have an announcement about fee increases in January, when students are already on campus, when during the entire year there has been no meeting with students. I therefore have urged the leaders of institutions to ensure that they do engage with their SRCs and the student leadership on their campuses. In closing, I therefore urge the political parties in this House to desist from seeking political capital from situations that require maturity and honest problem-solving. Thank you. [Applause.]
PETROLEUM PRODUCTS AMENDMENT BILL
(Consideration of Bill and of Report thereon)
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Chair, we move that the Bill be passed. Thank you.
Motion agreed to.
Bill accordingly passed.
ADOPTION OF VISION STATEMENT FOR PARLIAMENT
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Deputy Chair, I move the motion printed on the Order Paper in the name of the Chief Whip of the Majority Party:
That the House, pursuant to the decision taken by the Joint Rules
Committee at its meeting on 18 November 2004, adopts the following
Vision Statement:
To build an effective people’s Parliament that is responsive to
the needs of the people and that is driven by the ideal of
realising a better quality of life for all the people of South
Africa.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson and hon members, we rise to support the motion that Parliament adopts a Vision Statement that commits us to build an effective people’s Parliament that is responsive to the needs of the people and that is driven by the ideal of realising a better quality of life for all the people of South Africa.
We believe that this vision correctly captures the role that Parliament must play in meeting the challenge facing our whole society – that of creating a united, nonracial, nonsexist and democratic society. A fundamental condition for the achievement of this goal is democracy and an abiding culture of human rights. All citizens should be guaranteed the right to elect a government of their choice, freedom of expression, freedom from discrimination, and other rights entrenched in the Constitution. They should have a government not only formally based on their will, but one that is open and transparent, and one that consults and continually involves the people in policy formulation and implementation.
The vision that we’re adopting today provides a yardstick for measuring the performance of Parliament and ensures the possibility of continuous improvement of our performance and our work as parliamentarians. It will also assist in evaluating the role of parliamentarians as representatives of the people. The vision provides a broad-based collective view of the direction in which Parliament should be heading and makes it possible for parliamentarians to develop, across party lines, a shared understanding of the core business of Parliament. It will also provide a basis for Parliament’s planning framework and for an assessment of the progress that we as a Parliament are making in achieving our transformation objectives. Lastly, the vision provides a basis on which to argue for the allocation of material resources to Parliament.
This Vision Statement envisages a people’s Parliament that will play an active part in transforming our entire society based on democratic values, social justice and fundamental human rights; a people’s Parliament of freely elected representatives building on the foundation of a democratic and open society based on the will of the people, their participation in and access to Parliament; a people’s Parliament educating, informing and involving the people of South Africa in its processes, and acting as a voice of the people; a people’s Parliament co-operating with other spheres of government as it deepens and entrenches our democratic values; a people’s Parliament working with continental and international bodies to create a new democratic and participatory world order; a people’s Parliament passing good laws, and scrutinising and overseeing the executive action as it moves to improve the quality of life of the people of South Africa, building a united and democratic South Africa; in short, a people’s Parliament creating a better life for all.
The adoption of this Vision Statement is historic, coming at the close of the year of celebrating our first decade of freedom and the start of our second decade of freedom. Appropriately, it also takes place in the year that we celebrate the fiftieth anniversary of the adoption of the Freedom Charter.
We adopt this vision, having had the benefit of 10 years of experience as a democratic Parliament, upon which we have been able to reflect and do the necessary assessment. And the past 10 years have been momentous ones indeed. We have written a Constitution that is recognised internationally as one of the most advanced and progressive in the world. Our Constitution was inspired, not only by the content of the Freedom Charter, but by the inclusive and participatory spirit of the campaign that culminated in the Congress of the People.
In a relatively short space of time this Parliament replaced the draconian and oppressive legal framework of apartheid with a democratic one that was arrived at through a legislative process characterised by transparency and public participation.
We have transformed this Parliament from one that was of a minority, for a minority and by a minority to one that is representative, inclusive, participatory, open and transparent, and that actively seeks to realise the ideals that the people shall govern and that South Africa belongs to all who live in it.
The ANC played a leading role in this work and was guided and inspired by the vision contained in successive documents developed by the majority of South Africans in their struggle against colonialism and apartheid. There’s a golden thread that runs through African Claims, the Freedom Charter, Strategy and Tactics of the ANC, Ready to Govern, the Reconstruction and Development Programme and many others.
In the words of the Strategy and Tactics of the ANC –
Our commitment to open and transparent government, and to ensuring an informed and active citizenry, are more than just high-sounding phrases. They are the life-blood of democratic governance, the core values of people-centred and people-driven transformation. We shall therefore continue to strengthen relations between government and civil society, including nongovernmental and community-based organisations, and promote their role in the process of transformation.
This approach has been implemented at all levels, as witnessed by examples of community policing fora, school-governing boards, public participation in integrated development plans, ward committees, bodies such as Nedlac, participation in parliamentary processes and izimbizo.
The fact that we’re adopting this vision after 10 years illustrates the validity of the adage that theory without practice is sterile and practice without theory is blind. We are indeed well equipped to be adopting this Vision Statement.
Of course, crucial to the success of implementing this vision will be the allocation of the necessary resources, because just as theory without practice is sterile and practice without theory is blind, so the pursuit of a vision without resources and capacity to implement is sterile and the spending of resources without a vision is wasteful.
We need to ensure that parliamentary committees are geared to carry out the function of assisting to remove obstacles to improving the lives of the people and strengthening the links between the people and government. This will include ensuring that committees have the necessary resources, financial, human and technical, to carry out their tasks.
It will also require of Parliament to schedule its work in such a way as to allow committees to do direct and active oversight work. Parliament will also need to look seriously at how our committee system is managed. We will need to make sure that there is co-operation between and co-ordination of committees in similar clusters.
It is vital that members of Parliament play an active role in their constituencies. We need to ask whether the resources currently allocated by Parliament to members who do constituency work are sufficient to play a meaningful role. We also need to ask whether the time allocated for constituency work is sufficient and properly structured.
We need to give special attention to those members who have special needs. Here we think particularly of veterans and members with disabilities.
Before we conclude, there are a few matters that we think require attention and that are related to this debate. During the debate on the state of the nation address a number of speakers tried to draw a false dichotomy between our Constitution and the Freedom Charter. This is a false dichotomy. The founding provisions of the Constitution provide that South Africa is one sovereign, democratic state founded on the following values: human dignity, the achievement of equality and the advancement of human rights and freedoms; nonracialism and nonsexism; supremacy of the Constitution and the rule of law; and universal adult suffrage, a national common voters’ roll, regular elections and a multiparty system of democratic government to ensure accountability, responsiveness and openness.
The preamble to the Freedom Charter states that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it is based on the will of the people; that our people have been robbed of their birthright to land, liberty and peace by a form of government founded on injustice and inequality; that our country will never be prosperous or free until all our people live in brotherhood, enjoying equal rights and opportunities; that only a democratic state based on the will of the people, black and white together, equals, countrymen and brothers, adopt this Freedom Charter; and we pledge ourselves to strive together, sparing neither strength nor courage until the democratic changes here set out have been won.
Far from being in contradiction to each other, the Constitution and the Freedom Charter are bound by an unbreakable thread that runs throughout the history of our nation’s struggle to rid ourselves of colonialism and apartheid, and the creation of a united, nonracial, nonsexist and democratic society.
There is an unfortunate tendency on the part of the proponents of the view that the Constitution and the Freedom Charter stand opposed to each other. Their unshakeable belief in their own superiority makes it impossible for them to take seriously any views that they have not had a direct and controlling part in formulating. Their ideological ancestors were invited to participate in the Congress of the People. They refused. Now, years later, when one would have thought that they would have learnt from history, they persevere in their arrogant and stubborn refusal to hear the voice of the people.
Secondly, both opposition parties as well as political commentators have argued that ANC MPs are not playing a sufficiently aggressive oversight role and that they are not challenging the executive on policy matters, but are restricting themselves to oversight that facilitates implementation of policies. [Interjections.] We need to deal with these matters head-on. The ANC is characterised by a highly participatory policy formulation process. ANC national conferences decide on ANC policy. They are attended by delegates who are elected by branches. Our conferences are preceded by policy discussions at branch, regional, provincial and national level. Discussions are characterised by vigorous and open debate. All ANC members of Parliament are part of these structures at one level or another. These are the very same policies which guide all ANC members, be they in the executive or in Parliament. It would therefore be odd for members of Parliament, having participated in the formulation of the very policies which guide the executive, to then wake up one day and start disagreeing with these policies on the basis that this is a sign of healthy democratic practice. [Interjections.]
Where policies are not being implemented it is the duty of ANC members of Parliament to engage in oversight work to ensure that these policies are implemented. This duty derives from the oath that they have taken as members of Parliament to uphold the Constitution, as well as the oath that they took when they became members of the ANC to defend the organisation and its policies. [Interjections.]
Therefore, to pose the question whether members of Parliament are performing oversight for the executive or of the executive is misplaced. Members of Parliament must do both. The fact of the matter is that members of Parliament and the executive have an objective interest in seeing policies carried out successfully. Oversight does not have to be antagonistic in order to be successful. It can and, where possible, should be co-operative.
The Joint Rules Committee has established a task team on oversight and accountability. This task team will be making recommendations regarding how Parliament can conduct oversight in the most systematic and thorough manner. We hope that all parties participate actively in this process and ensure that we make the Vision Statement a reality.
In conclusion, we wish to thank the presiding officers, the Secretary to Parliament and all parliamentary staff for the excellent work that they have done in assisting us to formulate this Vision Statement. We support the resolution. Thank you. [Applause.]
Mr M J ELLIS: Thank you, Mr Chairman. I want to say that Mr Nel certainly was at his very pompous best today, and said all the things a very good ANC cadre would have to say in defence of his party’s stand on this particular issue. [Interjections.]
I beg your pardon, Johnny. Let me hear that again.
The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: He’s never been more pompous than you!
Mr M J ELLIS: Oh my word, Sir! Thank you very much indeed. I didn’t know you put me in the same class as him. Thank you very much indeed. [Interjections.] The matter of a vision for Parliament has been debated at length by the Joint Rules Committee, as Mr Nel indicated, but the debate came to an abrupt halt when the ANC realised that not all parties agreed with them as to what the vision should be. The use of party slogans and electioneering slogans such as “people’s Parliament” and “a better life for all” in a vision for Parliament was, quite frankly, unacceptable to the DA.
The ANC has made an amendment to its original proposal by including the word “quality” so that the one clause now reads “a better quality of life for all” instead of simply “a better life for all”, which was of course a good ANC slogan. This softens somewhat the vision, and we appreciate this amendment, but the concept of a “people’s Parliament” remains, a point that Mr Nel certainly placed great emphasis on today.
We had hopes that greater consensus could be found, but it is clear that consensus-seeking was generally on ANC terms only. Consequently, at a meeting of the Joint Rules Committee late last year, the decision to bring the matter to Parliament for debate was taken. In the spirit of the ANC’s determination to use their large majority in both Houses to push their choice of wording through this House and through the NCOP, consensus- seeking, quite frankly, was once again forgotten, this despite an appeal by the Speaker at that particular meeting of the Joint Rules Committee for parties to try to reach consensus. We never had any further contact with the ANC on this matter. This is a pity, because I do believe that greater consensus could have been reached, but we didn’t hear anything more from them until this meeting today.
What the ANC vision for Parliament does not recognise is that the time will come when that party is no longer in power in this country. [Interjections.] It does not recognise that the time will come when that party is no longer in power in this country. The problem with the Vision Statement in the hands of the ANC is that, in many ways, it represents the sort of tribute that vice pays towards virtue. In other words, when it suits the ANC, there is no consultation, zero transparency and an insistence on making the ANC’s political philosophy the undifferentiated work of Parliament. To include even one party slogan in a vision for all South Africans is divisive and, in reality, an abuse of power by the majority party. That is the main reason the DA cannot accept the vision as prepared by the ANC – even with its amendment today.
We also find that the vision is vague. We do not believe that it provides the yardstick that Mr Nel claims that it does with regard to the running of this country, and the running of Parliament in particular.
The time between the debate on this matter in the Joint Rules Committee and the debate in this Chamber today has certainly given us much more time to reflect on this matter. We believe that the vision should pay far more attention to the founding principles of the Constitution, and the chapter on Parliament as it appears in the Constitution. It should set out that the main role of Parliament is to be an effective legislature and that it achieves this by representing citizens, making laws and giving effective oversight of the executive. This is of critical importance – the whole issue of effective oversight.
A vision for Parliament should be something with which South Africans everywhere should feel they can associate, that creates the awareness that Parliament is for them and that Parliament works in their best interests, regardless of which party they voted for.
HON MEMBERS: Hear, hear!
Mr M J ELLIS: A vision for Parliament should be something that unites people. It should create the feeling that Parliament is representative of all its members, and those that voted for them.
The emphasis on a “people’s Parliament” panders to the few Marxists here. The word “people” has become a pejorative because, in most cases, countries paying lip service to the “people” are deeply undemocratic. [Interjections.]
The DA, therefore, wants to propose an amendment to the resolution before the House, which would read as follows:
That all the words after the words “To build …” be replaced by the words:
An effective Parliament that is responsive to the needs of citizens
protected equally by law, which provides a national forum for public
consideration of issues and which scrutinises and oversees executive
action.
This fits in with what the Constitution believes Parliament should be. We are proposing a Parliament that provides citizens with access to decision- making by promoting public participation in the legislative process; a Parliament of freely elected representatives that considers and debates national issues, resulting in legislation that enhances the quality of life of citizens; and a Parliament that fiercely maintains its independence from other branches of government and, in so doing, plays a crucial role in holding the executive to account.
It is a vision of this nature that will help to deepen and entrench our democratic values through holding government to account – a Parliament that gives effect to the Constitution through the passing of good laws and executive oversight as it moves to improve the quality of life of the people of South Africa, building a united and democratic South Africa. I urge the House to accept our proposal in this regard. Thank you, Mr Chairman. [Applause.]
Mrs S A SEATON: Chairperson and hon members, this Vision Statement is long overdue. Our members have been looking at the Vision Statement for many years. We have participated and considered proposals and yet nothing was done. At long last the process has been taken forward. I want to commend here our presiding officers, the Secretary to Parliament and other officials who have been involved in this process.
The IFP also had a problem with the initial wording and we expressed our concerns quite vehemently. We also had a problem with the fact that the ANC slogans were being utilised. However, the IFP is a party that, we believe, tries to come to a decision on what is right, deals with the issues that are important and does not dwell on petty issues. We discussed this issue and felt that it was really irrelevant what words were being used. We felt that we should get on with the process and do whatever we have to, to have a vision for Parliament, a vision that Mr Nel claims to be a yardstick. It is a vision that I would say is a plan for the future. We may not agree with all the words of this vision but we believe it is important to move forward at this stage.
We believe it is important to have something to work towards and to ensure that we have a Vision Statement. But more importantly, we believe that we should legislate to ensure true democracy and a better life for all, irrespective of race, colour, sex, creed or party affiliation and freedom of expression to ensure that South Africans find their rightful place in the world, so that our children and grandchildren can be proud in years to come of the things we have done for them.
The vision is but a yardstick, as Mr Andries Nel puts it, or but a plan for Parliament. Inspirational author Og Mandino, in his book The Greatest Success in the World, speaks of ten commandments. The sixth commandment reads as follows: “Thou must realise that plans are only dreams without action.”
Parliament’s plan or vision or yardstick – however you see it – is only a plan. For it to succeed, it must be encompassing. It must not exclude anyone. All members of Parliament must be seen to be making a better life for all South Africans, irrespective of their colour, race, sex, creed or party affiliation.
To do this, there needs to be adequate resources, as has been said. Members of Parliament do need to be empowered and we are a long way from being where we should be, to be able to make this a success. The ninth commandment in Og Mandino’s book says: “Thou must never forget that it is always later than ye think.”
Ladies and gentlemen, it is later than we think. It’s time we started moving towards making this country what we believe it is - but for all South Africans, not just for the chosen few. Now is the time for us to commit ourselves to the vision of the South African Parliament for young and old and to make this a country that we can all be proud of.
Mr G T MADIKIZA: Chairperson and hon members, Parliament is in the process of adopting various symbols and measures that properly reflect its grounding in a new South Africa under a democratic Constitution. The Constitution guarantees a multiparty democracy and a representative and accountable Parliament. The process of reflecting this reality in the symbols and objectives of this institution cannot override or negate the constitutional guarantees regarding the nature of Parliament.
The proposed Vision Statement for Parliament is part of this effort. Correctly, the operative aspect of this vision is to build. It recognises not only our historic duty to establish a new democratic order, but it also calls on us to continue along this path. We, and every successive Parliament, are entreated to build an effective Parliament and continuously to strive towards a Parliament that is evermore responsive to the needs of all South Africans.
A Vision Statement for Parliament should be elevated beyond the realms of party-political and partisan ideology. Each of us, irrespective of our separate ideologies, must collectively subscribe to this greater vision. The challenge therefore is not whether this vision currently appears similar to a certain partisan slogan, but whether this institution can take ownership of this vision, and thus make it transcend partisan politics.
By its very nature, a vision statement should be able to stand the test of time and reflect the overarching goals of this institution, no matter which parties are represented here or in what numbers. By these standards, the UDM believes that the proposed Vision Statement is sufficient for the purposes it was intended for. I thank you. [Applause.]
Mr A HARDING: Mr Chair, the ID supports the Vision Statement of Parliament and views it as a crucial element for the promotion of the principles of democracy in a postapartheid South Africa. The ID believes that the Vision Statement needs to be of such a nature that it will continue to promote and strengthen democracy in South Africa. As a result, it is crucial that the vision should be nonpartisan or nonaligned.
Parliament’s vision must be independent of whichever political party in power now and also those which will be in power in the future. Moreover, the vision of Parliament must coincide with the South African Constitution, and in particular the principles stated in Chapter 1 of the Constitution, amongst which one of the most important is that of universal suffrage, a national common voters’ roll, regular elections, a multiparty system of democratic government to ensure accountability, responsiveness and openness.
The ID believes that if Parliament does not strive to operate by this code of conduct, dire consequences for our democracy will be the result and the faith of the people in Parliament will be jeopardised. By adhering to and promoting these principles as stated in the Vision Statement of Parliament, that is, of transparency and objective legislative oversight, democratic lawmaking will greatly improve. This will correlate with South Africa’s ideal of an effective democratic system and realising a better quality of life for all the people of South Africa. I thank you. [Applause.]
Ms M P MENTOR: Thank you, Chairperson. Before I start my speech, I would like to thank hon Madikiza and his party, Ms Seaton - who has just left – and her party, as well as hon Harding of the ID and his party, for playing a constructive role in terms of the vision of Parliament.
To the hon Mr Mike Ellis of the DA: The amendments you are proposing will never see the light of day because they are anti-people, anti-poor and anti- marginalised. I will come back to you after I have delivered my speech, but you know as well as I do that the role you have played consistently as an opposition is not a constructive but a destructive role. Even the amendments that you are proposing are in line with that destructive role that you have chosen for yourself.
I dedicate my speech to two people. For the Northern Cape, where I come from - which is a sparsely populated but very big geographic area, with a lot of minerals - the issue of minerals as a national resource and beneficiation is very important to the people of the Northern Cape. I dedicate this speech to the first premier of the Northern Cape, Comrade Manne Dipico, because for the ten years that he was premier he would mention at every turn, in every one of his speeches, the issue of beneficiation, which is now becoming a reality.
My second tribute goes to the Minister of Minerals and Energy, Comrade Pumzile Mlambo-Ngcuka, for her dedicated, systematic and deep-running programme of dealing with minerals and energy, and delivering on the issue of beneficiation in the next few weeks, as I have learnt will be happening. I thank these two people very much, and the people of the Northern Cape are very happy to know that government, after ten years of persuasion, is coming closer to concluding the issue of beneficiation of minerals before they are exported.
The vision that is being debated by Parliament today comes directly from the Constitution, and whoever opposes it is actually indirectly opposing what the Constitution is saying. Section 42(3) of Chapter 4 of the Constitution, which deals with Parliament, reads as follows:
The National Assembly is elected to represent the people and to ensure government by the people . . .
Therefore I find it strange today that the DA has a problem with the concept of “the people”, which is enshrined in every tenet of our Constitution, right from the beginning, from the preamble of the Constitution. I just selected two parts today. The first was the issue that deals with Parliament.
I will go to the issue of the Public Service, which puts the people at the centre of what Parliament should be doing. So when hon Ellis and his party say they have a problem with the word “people”, I would still assert that they are actually against both the letter and the spirit of the Constitution. Chapter 10 of the Constitution deals with the Public Service and outlines the basic values and principles that should govern public administration. Section 195(1)(e) of the Constitution reads:
People’s needs must be responded to, and the public must be encouraged to participate in policy-making.
The Constitution is actually quoted verbatim in the vision of Parliament. I therefore still maintain that, by way of a back door, the DA is actually opposing the Constitution, because the vision derives directly from the Constitution.
The Joint Rules Committee of Parliament is also a committee founded on the basis of the Constitution. It has, as the previous speaker said, considered this matter before. We have placed a new governance model for Parliament before the Joint Rules Committee, and this model was adopted by the committee. Part of that new governance model is the issue of the vision that is before us, this very vision that says that Parliament should be effective – I emphasise effective - in ensuring the centrality of the people in its business. That is what the vision is saying, and that is what the DA is against.
We are saying this Parliament, in terms of this vision before us, should have the people at its centre at every step of the way and during every activity. And when we talk about the people, as the ANC and the other parties that I have stated, we understand the people to be especially those who have been marginalised and those who are very poor, not necessarily those who have access to e-mail and the Internet, those who can buy air tickets or those who are able to read and write and petition Parliament. At the heart of our business are those who are voiceless, those who are in the deep rural areas where there are absolutely nothing. We are saying those very people should be the ones who are at the centre of what Parliament is doing, what Parliament should aim for.
When you put a vision before an institution, you are saying to that institution or that group of people, when you deliver your day-to-day tasks, that this is the springboard for your activities. This mission and this vision is therefore actually saying that whatever we do as this Parliament, we must make sure that the people are effectively placed at the centre of what we are doing. If we do that, we will be making the Freedom Charter’s assertion a reality, to say that the people should govern. I want to emphasise that the people who should govern are those who have never governed before, who have nothing, who cannot read and write, who cannot fly in and out to the committees of Parliament. The essence is that we should not only take Parliament to the people, but we should, in terms of this vision, also be able to bring those people to Parliament, those who do not have the means to come and interact with us here.
The other issue that the vision is talking about, is the issue of a better quality of life for our people. I don’t understand the DA when they say they have a problem with the word “quality”. They have a problem with it simply because they think it is what the ANC has stated. We mean business when we say that the quality of life of all South Africans, black and white, should be improved. There is nothing wrong with saying that this Parliament is the centre of integration, because it finds itself between the executive and the people - if you can draw that triangle of the executive – and the people and government departments. Parliament should be at the centre of integrating service, which will then in turn make sure that the executive and government departments are involved in an integrated way in improving the quality of life of our people.
I would like to cite an example of a situation in which I was involved before I became a member of Parliament. Early one Sunday evening, as I was buying bread with my friend the then MEC for Safety and Security, we came across a very rude interaction between two homeless teenagers and two SANDF officers, who were driving a military vehicle and were wearing military uniforms. They were speaking very rudely in Afrikaans to these two homeless children. They were using a very rude four-letter word and referring to former President Mandela and President Thabo Mbeki, saying that the children should ask them for money for food. These children recognised MEC Connie Seoposengwe. They knew her as the Minister for Safety and Security in the province. They immediately ran to us and said: “Minister, these two officers are insulting the former President and the current President. What do the two Presidents have to do with us asking for money for bread from them?” This was a clear confidence shown by a very marginalised sector of our people, the homeless. They saw an MEC and knew that they could run to the MEC to lodge a complaint. We agreed with the MEC that we, as the legislature, should take it to Parliament, to the defence committee. I would take it to the same committee as a member of the public. We wrote several letters, the MEC in her capacity as MEC, and I in my capacity as an ordinary member of the public, to the chair of the defence committee. Between the two of us, we wrote about ten letters.
What I am raising with this story is that our people might be in the deep rural areas, they might be homeless, they might be uneducated, they might be very poor, but they know that since the roll-out of democracy they can run to any legislature or to Parliament with whatever bothers them. And they have the confidence that Parliament or a legislature, or an MEC for that matter, will take their aspirations into consideration and will do everything possible when they are offended or hurt. They also know their responsibility in defending the democratic state. This is why they took offence when the former President and the President were insulted. We cannot betray their confidence.
This mission seeks to bolster that confidence. A woman who might be forced to drink contaminated water in the deep rural areas knows that there is a public representative, by the name of Mantuli, who is accessible to her and who is accountable, one whom she can go to to tell her that the water is contaminated. Because she is a member of Parliament, the matter is raised with her and the member of the public will know that Mantuli is an accountable member of a responsive Parliament, who will take those issues to this Parliament and ensure that they are addressed. I hope that I still have a few minutes because I want to deal with Mr Ellis. [Interjections.]
In conclusion, “the people” to us are especially the poor, as I outlined before. Mr Ellis, nobody in the world has perfected pompousness like you and your party. You are claiming that Mr Nel was pompous. He doesn’t come anywhere close to your party, which represents those who have, and protects the previous status quo. You know, and the whole world knows, that when it comes to transparency, it is the ANC and its allies that have made sure that the issue of transparency is alluded to in the Constitution itself and in all the many Acts of Parliament. [Interjections.] Therefore it is wishful thinking on your part to think that the ANC will not be in power in the near future. You are fooling yourself, because the ANC is founded amongst the people. We will be in power with the people for many hundreds of years to come, because the people are at the centre of ANC policy and thinking. I thank you. [Applause.]
Mr L M GREEN: Chairperson and members, the ACDP agrees that our Parliament should be responsive to the needs of the people, and that it should be driven by the ideal of realising a better quality of life for all the people of South Africa.
When one unpacks the vision of Parliament, it stands to reason that the history of this nation plays an important role. I believe that the vision of this Parliament wasn’t a vision that was dreamt up ten years ago, even last year or two years ago, but I am sure that this vision must have been birthed in the hearts of many people long before they even came to Parliament.
I do not know what the vision of Parliament was before 1994, or if there was one, but what I do know is that the previous parliament was far less participatory, far less accessible and open to ordinary people of all races.
President Kalam, the president of India, said at a joint session of parliament in India in 2003, when he spoke on the vision to transform India into a developed nation, and I quote: “No nation attains greatness without an energising vision guiding it.”
The prime minister, in his independence day address last year, called upon the people to strive towards the goal of transforming India into a developed nation by 2020. This was their vision, and it was also the vision of their parliament. So, whilst India, as a developing nation, has struggled with a new invigorating vision for their nation and their parliament, we also stand today before a challenge to promote a new vision.
Now, I know it was a difficult process, it wasn’t easy to get to this vision, and as the ACDP we would have liked to have a vision that contains maybe less sloganeering and more words that are less party-political, but we won’t throw away the baby with the bathwater today. Therefore, the ACDP supports the Vision Statement of Parliament, because we believe it encapsulates the spirit of a new South Africa and a new Parliament. I thank you. [Applause.]
Dr C P MULDER: Chairperson, we have a problem. In the Rules Committee I said, after the compromise was reached, that the FF Plus would support the Vision Statement. But after I listened to the speech by the hon Mentor, I can no longer do so, for the simple reason, and she made it very clear, that this is not a parliamentary statement, this is an ANC statement. [Interjections.] That is all it is; it is an ANC statement.
Now, if we want to adopt a statement for Parliament that is not supported by everyone in this Place, then we might just as well leave it, because this is absolutely, and only, an ANC statement.
I want to come back to the hon Mentor, because what she said is not exactly true. What she said was, and … Agb Mentor, ek wil graag met u praat. Die agb lid daar, as sy sal luister ná die groot gelukwensing vir haar toespraak? Sy’t verwys na die Grondwet van Suid-Afrika en sy het aangehaal uit … [Hon Mentor, I would like to talk to you. The hon member there, could she listen to me after all the great congratulatory remarks for her speech? She referred to the Constitution of South Africa and she quoted from …]
… section 42(3) of the Constitution, when she referred to the National Assembly. She quoted that the National Assembly is there to represent the people and to ensure government by the people under the Constitution. That is technically correct, but we are not today adopting a vision for the National Assembly. We’re adopting one for Parliament, and I would really recommend that next time you read the following section as well. The next section, section 42(4), deals with the National Council of Provinces, which represents the provinces, and the NCOP is part of Parliament.
In this vision not one word is mentioned about the NCOP that looks after the interests of the nine provinces in the country, which are not ANC- administrative regions only. They are supposed to be, in their own right, provinces that have certain powers and functions in terms of the Constitution.
The point that finally convinced me that no one could support this was when the hon Mentor gave her interpretation of what is meant by “all the people” as stated in this proposed vision. She says very clearly that it does not mean all the people in this country; basically, it means the people that the ANC identifies as their supporters. Not all the people are included. The ANC always says that they will govern for always. I challenge you to show me one ruler, or government, who has made the same statement, and who is still in power. [Time expired.] [Applause.]
Mr P H K DITSHETELO: Chairperson, the advent of the third democratic Parliament of the Republic started with new presiding officers in the Speaker, the Deputy Speaker and the Secretary to Parliament. In keeping with that, government departments are expected to have a vision and mission statement clearly displayed.
Parliament saw that they needed to lead in seeking a vision statement. It was a difficult task to have all parties agree to the proposed Vision Statement, but the pleasure was that, of the two options presented, all political parties accepted option two, with modifications as preferred.
For us in the UCDP option two is the most suitable in that it calls upon Parliament not to be passive, but to be responsive to the needs of the people. Its very purpose should be to realise a better quality of life for the people of South Africa. This is a clarion call to all of us who have had the privilege to grace a portal of this building, to serve our people without fear, favour and prejudice. It is a challenge to all elected representatives to cease being selfish, and to look for ways and means of rendering service honestly to those who earnestly deserve it.
With this awesome responsibility the UCDP will support the motion that the Vision Statement of Parliament should be adopted. I thank you. [Time expired.] [Applause.]
Mr N T GODI: Thank you, Chairperson. The PAC welcomes the new vision of Parliament as part of our dialectical movement away from the memories, symbols and mindset of the bitter past into the bright future.
When the People’s Mace was unveiled last year, the PAC cautioned that the transformation of the institution of Parliament should not stop there, that we still had a considerable number of aspects that required change. The PAC is happy that today we are setting Parliament on a new and higher footing, a paradigm shift in terms of how it defines itself, and the role it ascribes to itself. Indeed, it was long overdue, that, reflective of the new popular democratic dispensation, Parliament’s vision and mission also needed to take a popular character.
This Parliament, inherited from the forces of white domination, could not be a ready-made instrument for democracy. It had to be transformed, and this is part of such inevitable substantive changes. As elected representatives of our people we are, in the first instance, supposed to be responsive to the needs of those who have put us here – the people. It is therefore only correct that Parliament should serve as a vehicle for the realisation of the fundamental aspirations of our people. The PAC supports the motion. [Applause.]
Ms S RAJBALLY: Igama lamakhosikazi! [In the name of the woman!] Thank you, Chairperson. Much discussion has been engaged in on this matter of a vision statement, and it is most unfortunate that criticism has been used as an opportunity for parties to compete with one another over petty technicalities, rather than agreeing on a mutual vision regardless of our differences.
Our people already have a vision; the vision entails a democracy, freedom, unity, a government committed to this, and the prosperous advancement of all South Africans. Our national Constitution serves as the backbone of our nation, and in these ten years of democracy we have gained, achieved and succeeded so much. Do you know what pushed us this far? It has been our commitment to our vision of a free, democratic and sustainable better life for the people of South Africa.
Our vision might not have been drafted in the form of a statement for our past ten years in government, but nonetheless the vision has been, and is, there. Regardless of how many different parties constitute this House, this vision has been shared by each and every one of us to some degree or another. In such a diverse population, how can differing opinion be unexpected, in a House so representative of such diversity?
However, the MF claims that in this diversity we have each contributed to the advancement of our democracy over the past ten years, and that hon members symbolise a mutual, unanimous vision for this House. So, when the MF made submissions on the proposed Vision Statement, we did not indulge in selfish and petty self-serving party criticism, but rather saw ourselves as further campaigning towards the true inculcation of our national Constitution as part of the National Assembly, serving to uphold our representation of a people’s government. The MF supports and upholds the Vision Statement of Parliament. [Time expired.] [Applause.]
Ms C C SEPTEMBER: Chair, hon members, comrades and the people of South Africa, the preamble of the Constitution of the Republic of South Africa correctly states:
We, the people of South Africa, Recognise the injustices of our past … and Believe that South Africa belongs to all who live in it, united in our diversity.
Therefore this institution, our national institutions, including this Parliament of the Republic of South Africa, indeed belong and should belong to all who live in South Africa, including those on the African continent through their membership of the African Union.
In this debate the ANC has and will continue to recommit ourselves to the call of the Freedom Charter that the people shall govern. As we are all aware, the apartheid regime denied our people access to institutions of power and governance. The ANC has since 1994 been committed to ensuring that the people have access to this institution. In doing so we have ensured that ANC MPs in particular are drawn from all sectors of the South African population. We have also made considerable progress in achieving gender equity, but more could be done in this regard.
Our position as the ANC – a people’s movement – is that the vision of Parliament should be a vision that obviously should be in line with the Freedom Charter’s words that, “All people should be entitled to take part in the administration of the country”. The notion of a people’s Parliament, as proposed by the ANC, builds on the Reconstruction and Development Programme, and the RDP states very clearly that democracy requires that all South Africans have access to power and the right to exercise their power. As a movement the ANC made sustained efforts to reach out to our people and engage them directly in the system of government, including through the programme of izimbizo and the programmes of the Letsema campaign. The notion of a people’s Parliament, as proposed by the ANC, builds further on the RDP, which states that the people shall govern. That programme of reconstruction and development requires a population that is empowered through expanded rights, meaningful information and education, and, as an institution, networking and fostering representative, participatory and desired democracy.
Democracy, we all agreed, requires that all South Africans have access to power and the right to exercise their power. This will ensure that all people will be able to participate in the process of reconstructing our country. Deepening our democracy in our society is not only about various government and nongovernmental institutions. Effective democracy implies and requires empowered citizens. It requires the people.
We have made a considerable start with programmes such as the Women’s Parliament and the sitting of the National Council of Provinces in KwaZulu- Natal and, of course, their visits to Mpumalanga. However, much more needs to be done. We have to make sure that Parliament reaches all South Africans, united in our diversity. We need to free up resources through our committee system to make sure that all our people are reached. What this means is, that we should make the money available to ensure that, for example, young people in deep rural areas are able to attend the next set of public hearings on issues which affect them. We want to make sure that women employed in the clothing industry can come to Parliament and make representations on the influence of tariff reductions on their livelihoods. We want to make sure that farmworkers and farmers from Vredendal can come to tell MPs what new export control measures will do to the wine industry. Women from Sekhukhune in Limpopo should have the means and opportunities to address this Parliament on issues of access to water. We want the unemployed from Orange Farm and the elderly in Mitchells Plain, in fact, all our people, to have complete access to Parliament.
It has been said that many of these countries that have people’s parliaments are countries that have a particular history of parliaments. Let me cite the example of Uganda, and in Africa in particular this is being put to us. Uganda provides a very, very telling story. It’s an example of what difference access to the institutions of government can make to the lives of ordinary people.
The Ugandan Participatory Poverty Assessment Project was a three-year process that sought the perspectives of poor Ugandans through consultations into the formulation and implementation of policies and planning for poverty reduction, both at district and national levels. The project began its work in 1998 and involved consultations with the poor, both in urban and rural areas. Not only has the resulting information been incorporated into the poverty eradication action plan, it has indeed influenced budget allocations. For example, as a result of communities identifying access to clean water as a priority, a higher weighting was given to the provision of safe water supply in budgets at central and district levels.
As South Africans, with our vast and diverse population, with the poor making up a significant proportion of this population, we would do well to learn from this example. In addressing people’s issues, we should take heed from successful international examples of how unorganised communities and/or interest groups can be involved with parliamentary processes. We should consider that participants should be involved in defining the manner in which to participate, and should be provided with the information they need to make their contributions meaningful. We should also consider their need to be informed as to the manner in which their submissions were accounted for and how they are reflected in the decisions we make.
Moreover, this Parliament should endeavour to take on board the fact that we are celebrating 50 years of the Freedom Charter. We think this Parliament owes it to the people of the country to consider having celebrations of the Freedom Charter in this Parliament also. We must also remain mindful of the fact that we are committed to creating vehicles for more dialogue between government and the people, and that where the people are not involved in decisions that affect their lives, social policies and political interventions are likely to fail.
The RDP is very explicit when it says that reconstruction and development require a population that is empowered through meaningful information and education. This means that our people need to know what is happening in Parliament. To achieve this goal, we need to examine the possibility of greater coverage of the parliamentary process in widely accessible forms of the media, not this 2h00 - 4h00 slot. At the moment only people with access to satellite television, a small percentage, can continuously watch the proceedings of Parliament.
We need to give greater coverage to the parliamentary proceedings in our community newspapers, and on our community radio stations and the public television channels.
There were quite a lot of allegations made in terms of the position that we, as the ANC, have taken on why we should adopt the vision that the ANC supports. We thank the parties that have supported the view we hold as to why we need to incorporate in the vision, in particular, the aspect of people. I find it quite strange that today we were confronted in this Parliament with the statement that the vision of Parliament the ANC wants to put forward is a vision that is full of slogans, that talks of more people here and more people there. I find it quite strange because indeed in the Constitution, in the preamble, as I said, it does say that we need to involve the people of this country.
Dr C P MULDER: Chairperson, I know the hon member has a lot of time. Is she prepared to take a very easy question?
Ms C C SEPTEMBER: If there is any time left. Dr C P MULDER: Thank you very much.
Ms C C SEPTEMBER: I want to say that we cannot understand why there are any hang-ups. I think the FF Plus would agree with us that “people’s Parliament” in Afrikaans is “volksraad”. What is the difficulty in understanding something that is called “volksraad”, which in English is then “people”? We cannot understand why there is any difficulty in accepting that.
It is a pity that it comes from certain parties, parties that have been here previously, that are particularly opposed to the fact that we need to include the “people”. We understand the hang-ups that they have about having to go back to how things were done the English way, but I think it is important to point out to all of them that the Danish parliament, for example, does not have the luxury of just saying that the people can participate. In fact, the Danish parliament determines the extent of public access in participation. The German house of representatives says the same thing. They have the discretion of who from the public they include in their parliament.
Uganda’s case, which has been put forward, is a telling one. Every Ugandan, as I have stated, has the right to influence the process and policies of the government. There is an increasing global shift towards greater public participation in parliament. But we can understand that there is great fear when it comes to the DA around the issue of the people.
Indeed, it has been demonstrated here today that the DA cannot stomach people. During the election campaigns one sees them driving through Soweto on a topless bus instead of walking around among the people. [Interjections.] We can understand why they cannot make that connection, and make sure that they reach out. The ANC prefers the situation of door-to- door, where we are able to confront and engage with our people. We are not prepared to sit on a topless bus with a number of balloons to engage our people in that kind of way. We can only call on the DA. The Chief Whip said to us the other day in his speech that, indeed, even in the road where the DA leader stays, there is a bit of uncomfortableness of how the engagement with the people should be. It is a pity that they are saying that it is party slogans, and that the fact that we are including the word “people” is more than just party slogans. If that is the case, I am very concerned, because of what our constitutional obligations are. I am really worried about whether the DA is asking us to change the Constitution or not.
There is an allegation that we are pandering to a few Marxist ideas and a number of examples were mentioned of countries that are more undemocratic. We cannot understand this fear that is being put forward. This fear has not deterred our people from voting for the ANC in large numbers. This fear about the vision that we are espousing is not going to persuade our people. Rather, we can only use these last few minutes to persuade them to be part of the global village and of the entire South Africa.
In conclusion, I want to say that maybe when Parliament has the state of the nation address again, instead of saying “make way for everyone”, we should say “make way for the people’s Parliament”. I thank you. [Time expired.] [Applause.]
Prof B TUROK: Chair, I wish to draw your attention, and indeed that of all the presiding officers, to the fact that when one is speaking at the podium, the noise from that side is so loud, and on that side there is total quiet. [Interjections.] I am not making a frivolous point, Chair. There is a real problem …
Mr M J ELLIS: Chair, is hon Ben Turok allowed to just stand up and make a statement of this nature? On what Rule is he standing?
The HOUSE CHAIRPERSON (Mr N P Nhleko): Can I just ask you to finish your point, Prof Turok?
Prof B TUROK: Yes, Sir. The problem is that because they are so near to the microphone the noise is absorbed, whereas on this side there is no noise, with the effect that a speaker cannot hear himself speak. That is the difficulty I experienced the other day and I could see that the hon September was in the same situation. A speaker standing there is unable to hear his or her own voice because they are so near. [Interjections.]
The HOUSE CHAIRPERSON (Mr N P Nhleko): Hon members, order!
Mr M J ELLIS: Mr Chairman, I should like to make a point, please. How can you favour the hon Turok without … [Interjections.]
The HOUSE CHAIRPERSON (Mr N P Nhleko): Can I just ask you to take your seat? [Interjections.]
Mr M J ELLIS: I can’t hear what you are saying, Sir, there is so much noise coming from that side.
The HOUSE CHAIRPERSON (Mr N P Nhleko): Order! Hon members, I think we all have a duty to maintain order in the Chamber during our debates and discussions. The issue that hon member Turok is raising is an issue that forms part of the political management of this institution. We would ask that the whole question of order and behaviour in the House is a matter that Chief Whips in particular and party representatives must look into, and take a particular focus in their discussion on that, so that we do not experience unnecessary disturbances in the House.
I think the second point that we should take account of is the distinction between heckling and what could then amount to interference with a member speaking at the podium. I think that is an issue that we would like the Chief Whips Forum in particular to pay some attention to.
Mr M J Ellis moved as an amendment: That all the words after “To build” be replaced by the words “an effective Parliament that is responsive to the needs of citizens protected equally by Law, which provides a national forum for public consideration of issues and which scrutinises and oversees executive action”.
Division demanded.
The House divided:
AYES - 42: Blanché, J P I; Botha, C-S; Davidson, I O; Delport, J T;
Dreyer, A M; Ellis, M J; Farrow, S B; Gibson, D H M; Jankielsohn, R;
Kalyan, S V; King, R J; Kohler-Barnard, D; Lee, T D; Leon, A J; Lowe, C
M; Maluleke, D K; Masango, S J; Mashile, B L; Minnie, K J; Mnyandu, B
J; Mogale, O M; Morgan, G R; Mulder, C P; Nel, A H; Nkem-Abonta, E;
Ntuli, R S; Opperman, S E; Sayedali-Shah, M R; Semple, J A; Sibuyana, M
W; Smuts, M; Spies, W D; Swart, M; Swart, P S; Swathe, M M; Trent, E W;
van der Walt, D; van Dyk, S M; Vezi, T E; Waters, M; Weber, H; Zille,
H.
NOES - 208: Abram, S; Ainslie, A R; Arendse, J D; Asiya, S E; Baloyi, M
R; Bapela, K O; Batyi, F; Benjamin, J; Bhamjee, Y S; Bhengu, F; Bhengu,
M J; Bhoola, R B ; Biyela, B P ; Bloem, D V; Bogopane-Zulu, H I; Booi,
M S; Botha, N G W; Burgess, C V; Cachalia, I M; Carrim, Y I; Chalmers,
J; Chauke, H P; Chikunga, L S; Chohan-Khota, F I; Combrinck, J J;
Cronin, J P; Cwele, S C; Davies, R H; De Lange, J H; Dhlamini, B W;
Diale, L N; Didiza, A T; Dikgacwi, M M; Direko, I W; Dlali, D M;
Doidge`, G Q M; Fihla, N B; Frolick, C T; Fubbs , J L; Gabela, L S;
Gaum, A H; George, M E; Gerber, P A; Gigaba, K M N; Godi, N T; Gogotya,
N J; Gololo, C L; Goniwe, M T; Greyling, L W; Gumede, D M ; Gxowa, N B;
Haasbroek, S F; Hajaig, F; Hanekom, D A; Henderson, R K; Hendricks, L
B; Hendrickse, P; Herandien, C B; Hogan, B A; Huang, S; Jacobus, L;
Jeffery, J H; Joemat, R R; Johnson, C B; Johnson, M; Kalako, M U;
Kasienyane, O R; Kasrils, R; Kati, Z J; Kholwane, S E; Khumalo, K K;
Khumalo, K M; Khunou, N P; Komphela, B M; Kondlo, N C; Koornhof, G W;
Kotwal, Z; Landers, L T; Lekgoro, M K; Lishivha, T E; Louw, J T; Lucas,
E J; Maake, J J; Mabandla, B S; Mabe, L L; Mabuyakhulu, D V; Maduma , L
D; Madumise, M M; Magazi, M N; Magubane, N E ; Magwanishe, G B; Mahote,
S; Maine, M S; Maja, S J; Makasi, X C; Malahlela, M J; Maloney, L;
Maloyi, P D N; Maluleka, H P; Manana, M N S; Martins, B A D;
Mashangoane, P R; Mashiane, L M; Masithela, N H; Masutha, T M;
Mathibela, N F; Maunye, M M; Mayatula, S M; Maziya, A M; Mbombo, N D;
Mentor, M P; Meruti, M V; Mgabadeli, H C; Mkongi, B M; Mlambo-Ngcuka, P
G; Mlangeni, A; Mnandi, P N; Mngomezulu, G P; Mnguni, B A; Moatshe, M
S; Mofokeng, T R; Mohamed, I J; Mohlaloga, M R; Mokoena, A D; Mokoto, N
R; Moloto, K A; Monareng, O E; Montsitsi, S D; Moonsamy, K; Morobi, D
M; Morutoa, M R; Morwamoche, K W; Mosala, B G; Moss, M I; Mpontshane, A
M; Mthembu, B; Mzondeki, M J G; Ndlovu, V B; Ndou, R S; Ndzanga, R A;
Nel, A C; Nene, N M; Newhoudt-Druchen, W S; Ngaleka, E; Ngcengwane, N
D; Ngcobo, B T; Ngcobo, E N N; Ngculu, L V J; Ngema, M V; Ngwenya, M L;
Nhlengethwa, D G; Njikelana, S J ; Njobe, M A A; Nogumla, R Z; Ntuli, M
M; Ntuli, S B; Nxumalo, M D; Nxumalo, S N ; Nzimande, L P M; Olifant, D
A A; Oliphant, G G; Padayachie, R L; Pandor, G N M; Pieterse, R D;
Radebe, B A; Rajbally, S; Ramakaba-Lesiea, M M; Ramgobin, M; Ramodibe,
D M; Ramotsamai, C P M; Ramphele, T D H; Rasmeni, S M; Reid, L R R;
Roopnarain, U; Rwexana, S P; Saloojee, E; Schoeman, E A; Sefularo, M;
September , C C; Sibande, M P; Siboza, S ; Sigcau, Sylvia N; Sikakane,
M R; Sithole, D J; Skhosana, W M; Skweyiya, Z S T; Smith , V G;
Solomon, G; Sonto, M R; Sosibo, J E; Surty, M E; Thabethe, E; Thomson,
B; Tinto, B; Tolo, L J; Tshivhase, T J; Tshwete, P; Turok, B; Vadi, I;
Van den Heever, R P Z; Van der Merwe, S C; Van Wyk, Annelizé; Woods, G
G; Xolo, E T; Yengeni, L L; Zikalala, C N Z; Zita, L; Zulu, B Z.
ABSTAIN - 1: Wang, Y.
Amendment accordingly negatived.
Motion moved by the Chief Whip of the Majority Party put.
Division demanded.
The House divided:
AYES - 210: Abram, S; Ainslie, A R; Arendse, J D; Asiya, S E; Baloyi, M
R; Bapela, K O; Batyi, F; Benjamin, J; Bhamjee, Y S; Bhengu, F; Bhengu,
M J; Bhoola, R B ; Biyela, B P ; Bloem, D V; Bogopane-Zulu, H I; Booi,
M S; Botha, N G W; Burgess, C V; Cachalia, I M; Carrim, Y I; Chalmers,
J; Chauke, H P; Chikunga, L S; Chohan-Khota, F I; Combrinck, J J;
Cronin, J P; Cwele, S C; Davies, R H; De Lange, J H; Dhlamini, B W;
Diale, L N; Didiza, A T; Dikgacwi, M M; Direko, I W; Dlali, D M;
Doidge`, G Q M; Fihla, N B; Frolick, C T; Fubbs , J L; Gabela, L S;
Gaum, A H; George, M E; Gerber, P A; Gigaba, K M N; Godi, N T; Gogotya,
N J; Gololo, C L; Goniwe, M T; Greyling, L W; Gumede, D M ; Gxowa, N B;
Hajaig, F; Hanekom, D A; Hendricks, L B; Hendrickse, P; Herandien, C B;
Hogan, B A; Huang, S; Jacobus, L ; Jeffery, J H; Joemat, R R; Johnson,
C B; Johnson, M; Kalako, M U; Kasienyane, O R; Kasrils, R; Kati, Z J;
Kholwane, S E; Khumalo, K K; Khumalo, K M; Khunou, N P; Komphela, B M;
Kondlo, N C; Koornhof, G W; Kotwal, Z; Landers, L T; Lekgoro, M K;
Lishivha, T E; Louw, J T; Lucas, E J; Maake, J J; Mabandla, B S; Mabe,
L L; Mabuyakhulu, D V; Maduma , L D; Magazi, M N; Magubane, N E ;
Magwanishe, G B; Mahote, S; Maine, M S; Maja, S J; Makasi, X C;
Malahlela, M J; Maloney, L; Maloyi, P D N; Maluleka, H P; Manana, M N
S; Martins, B A D; Mashangoane, P R; Mashiane, L M; Mashile, B L;
Masithela, N H; Masutha, T M; Mathibela, N F; Maunye, M M; Mayatula, S
M; Maziya, A M; Mbombo, N D; Mentor, M P; Meruti, M V; Mgabadeli, H C;
Mkongi, B M; Mlambo-Ngcuka, P G; Mlangeni, A; Mnandi, P N; Mngomezulu,
G P; Mnguni, B A; Moatshe, M S; Mofokeng, T R; Mogale, O M; Mohamed, I
J; Mohlaloga, M R; Mokoena, A D; Mokoto, N R; Moloto, K A; Monareng, O
E; Montsitsi, S D; Moonsamy, K; Morobi, D M; Morutoa, M R; Morwamoche,
K W; Mosala, B G; Moss, M I; Mpontshane, A M; Mthembu, B; Mzondeki, M J
G; Ndlovu, V B; Ndou, R S; Ndzanga, R A; Nel, A C; Nene, N M; Newhoudt-
Druchen, W S; Ngaleka, E; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N;
Ngculu, L V J; Ngema, M V; Ngwenya, M L; Nhlengethwa, D G; Njikelana, S
J ; Njobe, M A A; Nogumla, R Z; Ntuli, M M; Ntuli, S B; Nxumalo, M D;
Nxumalo, S N ; Nzimande, L P M; Olifant, D A A; Oliphant, G G;
Padayachie, R L; Pandor, G N M; Pieterse, R D; Radebe, B A; Rajbally,
S; Ramakaba-Lesiea, M M; Ramgobin, M; Ramodibe, D M; Ramotsamai, C P M;
Ramphele, T D H; Rasmeni, S M; Reid, L R R; Roopnarain, U; Rwexana, S
P; Saloojee, E; Schoeman, E A; Sefularo, M; September , C C; Sibande, M
P; Siboza, S ; Sibuyana, M W; Sigcau, Sylvia N; Sikakane, M R; Sithole,
D J; Skhosana, W M; Skweyiya, Z S T; Smith , V G; Solomon, G; Sonto, M
R; Sosibo, J E; Surty, M E; Thabethe, E; Thomson, B; Tinto, B; Tolo, L
J; Tshivhase, T J; Tshwete, P; Turok, B; Vadi, I; Van den Heever, R P
Z; Van der Merwe, S C; Van Wyk, Annelizé; Vezi, T E; Wang, Y; Woods, G
G; Xolo, E T; Yengeni, L L; Zikalala, C N Z; Zita, L; Zulu, B Z.
NOES - 41: Blanché, J P I; Botha, C-S; Davidson, I O; Delport, J T;
Dreyer, A M; Ellis, M J; Farrow, S B; Gibson, D H M; Haasbroek, S F;
Henderson, R K; Jankielsohn, R; Kalyan, S V; King, R J; Kohler-Barnard,
D; Lee, T D; Leon, A J; Lowe, C M; Madumise, M M; Maluleke, D K;
Masango, S J; Minnie, K J; Mnyandu, B J; Morgan, G R; Mulder, C P; Nel,
A H; Nkem-Abonta, E; Ntuli, R S; Opperman, S E; Sayedali-Shah, M R;
Semple, J A; Smuts, M; Spies, W D; Swart, M; Swart, P S; Swathe, M M;
Trent, E W; van der Walt, D; van Dyk, S M; Waters, M; Weber, H; Zille,
H.
Vision Statement accordingly adopted.
The House adjourned at 16:35.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY,18 FEBRUARY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
- Classification of Bills by Joint Tagging Mechanism:
(1) The Joint Tagging Mechanism (JTM) on 18 February 2005 in terms
of Joint Rule 160(3), classified the following Bills as section 75
Bills:
(i) Minerals and Energy Laws Amendment Bill [B 1 - 2005]
(National Assembly - sec 75)
(ii) Judicial Matters Amendment Bill [B 2 - 2005] (National
Assembly - sec 75)
(iii) Intergovernmental Relations Framework Bill [B 3 - 2005]
(National Assembly - sec 75)
(iv) Co-operatives Bill [B 4 - 2005] (National Assembly - sec
75)
National Assembly
- Submission of Private Members’ Legislative Proposals:
(1) The following private member’s legislative proposal was submitted to the Speaker on 9 February 2005, in accordance with Rule 234:
(i) Magistrates’ Courts Amendment Bill (Mr L K Joubert).
In accordance with Rule 235 the legislative proposal has been referred to the Standing Committee on Private Members’ Legislative Proposals and Special Petitions by the Speaker.
COMMITTEE REPORTS
National Assembly
- Report of the Portfolio Committee on Minerals and Energy on the Petroleum Products Amendment Bill [B 16 - 2004] (National Assembly - sec 75), dated 16 February 2005:
The Portfolio Committee on Minerals and Energy, having considered the Petroleum Products Amendment Bill [B 16 - 2004] (National Assembly - sec 75) and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 27 October 2004, p 985), referred to the Committee, reports the Bill with amendments [B 16A - 2004].
MONDAY, 21 FEBRUARY 2005
TABLINGS
National Assembly and National Council of Provinces
- The Minister for Public Enterprises
Report and Financial Statements of Alexkor Limited for the year ended
June 2004, including the Report of the Independent Auditors on the
Financial Statements for the year ended June 2004.
- The Minister of Trade and Industry
Report to Parliament on the Strategic Industrial Projects (SIP) for
April 2002 to March 2004.
National Assembly
- The Speaker
Petition from Mrs C J Kellerman praying for a pension - (Presented by
Mr D H M Gibson).
Referred to the Standing Committee on Private Members' Legislative
Proposals and Special Petitions for consideration and report.
TUESDAY, 22 FEBRUARY 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
- Draft bills submitted in terms of Joint Rule 159
(1) Precious Metals and Diamonds General Amendment Bill, 2005,
submitted by the Minister of Minerals and Energy on 7 February
2005. Referred to the Portfolio Committee on Minerals and Energy
and the Select Committee on Economic and Foreign Affairs.
(2) Convergence Bill, 2005, submitted by the Minister of
Communications on 11 February 2005. Referred to the Portfolio
Committee on Communications and the Select Committee on Labour and
Public Enterprises.
- Membership of committees
(1) The following changes have been made to the membership of Joint
Committees, namely:
Budget:
Appointed: Manyosi, Mr A T (Alt); Mkhaliphi, Mr B J; Robertson, Mr
M O.
Discharged: Nyanda, Ms F.
National Assembly
- Membership of committees
(1) The following changes have been made to the membership of
Portfolio Committees, namely:
Foreign Affairs: Subcommittee on International Affairs:
Appointed: Camerer, Ms S M (Alt).
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Social Development
(a) Report of the Central Drug Authority for 2003 [RP 16-2005].
(b) Report of the Central Drug Authority for 2004 [RP 17-2005].
National Assembly
- The Speaker
(a) Letter from the Minister of Social Development dated 18 February
2005 to the Speaker of the National Assembly, in terms of section
65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of
1999), explaining the delay in the tabling of the Annual Report of
the Central Drug Authority for 2003:
EXPLANATION ON THE LATE SUBMISSION AND TABLING OF THE CENTRAL DRUG
AUTHORITY (CDA) ANNUAL REPORT FOR 2003, BY THE DEPARTMENT OF
SOCIAL DEVELOPMENT, FOR THE YEAR WHICH ENDED ON 31 MARCH 2003
In terms of section 2(11)(a)(b) of the Prevention and Treatment of
Drug Dependency Amendment Act (Act, 14 of 1999) and Section
65(1)(a) of the PFMA, I am required to table the CDA Annual Report
in the National Assembly. Subsection (2)(a) further requires me to
table a written explanation to Parliament on the circumstances
that prevented me from tabling such a report within six months
from the end of the financial year.
In this regard I would like to report that I was unable to table
the said report, in June 2003, due to the following reasons:
1. Firstly, the CDA Chairperson, who was responsible for
finalizing the report, in June 2003, was unable to do so as he
was involved in the arrangements to launch the National Drug
Awareness campaign, "Ke Moja" in Cape Town on the
International Day Against Drug Abuse and Illicit Trafficking.
This project enabled the stakeholders to work together to
combat and prevent substance abuse in the country.
2. Secondly, the Chairperson, retired from his employment,
Department of Justice, at the end of October 2003, before
having finalized the CDA Annual Report. The aplogy letter to
the National Assembly was subsequently not submitted.
3. Thirdly, the acting Chairperson, who took over the reigns in
terms of section 2(7)(b) of the Prevention and Treatment of
Drug Dependency Amendment Act, (Act 14 of 1999), could
unfortunately not finalise the report to be tabled immediately
in 2004, due to an overload personal work schedule.
Kind regards,
signed
Dr Z S T Skweyiya, MP
MINISTER
(b) Letter from the Minister of Social Development dated 18 February
2005 to the Speaker of the National Assembly, in terms of section
65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of
1999), explaining the delay in the tabling of the Annual Report of
the Central Drug Authority for 2004:
EXPLANATION ON THE LATE SUBMISSION AND TABLING OF THE CENTRAL DRUG
AUTHORITY (CDA) ANNUAL REPORT FOR 2004, BY THE DEPARTMENT OF
SOCIAL DEVELOPMENT, FOR THE YEAR WHICH ENDED ON 31 MARCH 2004
In terms of section 2(11)(a)(b) of the Prevention and Treatment of
Drug Dependency Amendment Act (Act, 14 of 1999) and Section
65(1)(a) of the PFMA, I am required to table the CDA Annual Report
in the National Assembly. Subsection (2)(a) further requires me to
table a written explanation to Parliament on the circumstances
that prevented me from tabling such a report within six months
from the end of the financial year.
In this regard I would like to report that I was unable to table
the said report, in June 2004, due to the following reasons:
1. Firstly, the CDA Chairperson was appointed in January 2004 and
had to work on the outstanding 2003 and 2004 reports. The
major cause for the delay is the fact that the Chairperson is
employed elsewhere and is holding a full time position.
2. Secondly, the chairperson was unable to finalize and table the
outstanding reports due to a busy work schedule at his
permanent place of employment.
Kind regards,
signed
Dr Z S T Skweyiya, MP
MINISTER
(c) Report of Delegation to 8th Session of African, Caribbean, Pacific- European Union Joint Parliamentary Assembly, The Hague, Netherlands, 22-25 November 2004.
The 8th Session of the African, Caribbean, Pacific-European Union Joint Parliamentary Assembly (ACP-EU JPA) met in The Hague, Netherlands from 22 to 25 November 2004 As usual, the joint plenary was preceded by meetings of the ACP and Joint Bureaus (of which South Africa is now a member), of the ACP plenary and also of the three Standing Committees – on Political Affairs, on Economic Development, Finance and Trade and on Social Affairs and the Environment.
The delegation consisted of Dr. Rob Davies (ANC), Ms Dumisile Nhlengethwa (ANC) and Mr Douglas Gibson (DA). We were accompanied by Mr Saul Pelle of the South African Embassy to the EU in Brussels and Ms Grace Constable of Parliament’s International Relations Unit. Ambassador Jerry Matjila of the South African Mission to the EU was also with us for part of the time.
The 8th Session operated according to the rules of procedure adopted ahead of the 6th session. These provide for resolutions to be tabled via the Standing Committees with the possibility of only two “urgent resolutions” per session being tabled independently on topics agreed by the Joint Bureau. The motivation for this procedure is to encourage the JPA to focus its attention on the common issues of ACP-EU relations, rather than the bilateral issues that have in the past, in practice, dominated JPA proceedings. It was agreed at the Joint Bureau meeting held in Brussels in September that the “urgent resolutions” would be on “The Situation in Darfur (Sudan)” and “Hurricane damage in the Caribbean”. The Joint Bureau also agreed on debates without resolution on the situation in Cote d’Ivoire and in the African Great Lakes Region (the latter following a statement by the EU Special Representative, Aldo Ajello). The plenary agenda also included the customary statements by, and questions to, the EU Commission (represented by the new Development Commissioner, Louis Michel), the ACP Council (represented by Jamaican Minister Keith Knight) and the EU Council (represented by the Netherlands Minister of Development Cooperation, Agnes van Ardenne-van der Hoeven). In addition there were statements followed by exchanges of views with Mr Phillipe Kirsch, President of the International Criminal Court and Ms Carol Bellamy, Executive Director of UNICEF. As usual, there was a formal opening ceremony with speeches from the Co- Presidents, the Mayor of the Hague and the President of the Second Chamber of the Netherlands Parliament. The Prince of Orange formally declared proceedings open in a speech that referred to challenges in promoting better water management in ACP countries.
The ACP plenary, in addition to the usual discussion of the Agenda for the JPA, finalized a long running discussion on the establishment of an ACP Consultative Assembly. This is a substantially more modest proposal than that first put forward at the JPA session held in Cape Town in March 2000. Essentially, the current proposal envisages formalizing the existing ACP plenary through a “Charter” and “Rules of Procedure”. The main new developments would provide for the ACP Consultative Assembly to pass resolutions and set up Committees covering the same subjects as the JPA joint Committees. The ACP Co-President and joint Bureau members would also become Consultative Assembly President and Bureau members respectively. A note from the ACP Secretariat indicated that the Georgetown Agreement establishing the ACP envisages the creation of an ACP Parliamentary Assembly and also argued that the current version “will not entail any further financial burdens for the national parliaments”. The draft “Charter” and “Rules of Procedure”, which were seen by the delegation for the first time at the ACP plenary, had apparently been sent to Missions and National Parliaments with a “Note Verbale” some time ago. They will again be sent with another “Note Verbale” requesting that delegations attending the Bureau and Committee meetings in late January/early February come with a mandate to approve these documents. A copy will be sent separately to the Speaker’s Office, but we indicated in the ACP meeting that due to the recess it was unlikely that we would have a mandate from our Parliament by early February.
The ACP plenary also received reports on the mid-term re-negotiation of the Cotonou Agreement and on the regional Economic Partnership Agreement (EPA) negotiations. The main issues under discussion in the review of the Cotonou Agreement are political in nature and include provisions against mercenary activity, the International Criminal Court, terrorism, an investment facility and humanitarian assistance (all areas where there is a degree of convergence) plus weapons of mass destruction, providing for more joint decision-making on the passage from Article 8 to Article 96 political dialogue, the establishment of a dispute settlement mechanism and alternatives for non-Least Developed countries not able to conclude reciprocal free trade agreements (all areas where there are divergences of views). All 6 EPA negotiating configurations have now agreed road maps for negotiations in 2005. These mostly focus on identifying development issues and addressing non-tariff barriers. It is apparent, however, that while the ACP wants to focus on “real economy” transformations – including identifying measures to overcome supply side constraints and address adjustment costs arising from the introduction of free trade –as well as issues like the implications of the EU’s new food safety regulations for ACP access to the EU market, the EU is eager for the EPA process to move into tariff reduction negotiations. Once again, neither the Committee nor the plenary agendas allowed for a thorough debate on these matters. We continued to press both in the Bureau and in the Committee on Economic Development, Finance and Trade (on which we serve) for more time to made available to enable the Committee to hold public hearings on the EPA negotiations. Although this call is received sympathetically, it runs up against a range of organizational constraints that have prevented it being implemented up to now. In the meantime, more time was devoted to discussing EPAs in fringe meetings (organized by NGOs and a research institution) and a seminar organized by ourselves with delegates from the SADC EPA configuration.
Although we are full voting members of the Committee on Economic Development, Finance and Trade, the delegation divided itself to cover discussions in all three Committees. Ms Dumisile Nhlengethwa also attended a meeting of the Women’s Forum, which seeks to promote dialogue among women participants in the JPA.
The resolutions emerging from Committees were on “Political Dialogue under Article 8 of the Cotonou Agreement” (Political Affairs Committee) and on “Food Aid and Food Security in ACP Countries” (Social Affairs Committee). The first resolution called for a reform of Article 8 political dialogue in the direction of “proactive, concrete and positive” dialogue instead of merely being a step towards Article 96 dialogue, which is the last stage before suspension of the Cotonou agreement in respect of what the EU sees as “delinquent” ACP countries. In an attempt to create a more even handed political dialogue, Rob Davies in his capacity as ACP Co-Vice President for Human Rights submitted a report that dealt also with issues like the impact of the “war on terror” on human rights in the EU as well as issues like racism and xenophobia and their impact on migration policy. This report was tabled in the Bureau meeting in September. As there was then no EU Co-Vice President, it was agreed after then appointing one that the two should use this draft as the basis for a joint report to be tabled at the next Bureau meeting in February. In The Hague, the two exchanged views on this process.
Both the above-mentioned resolutions passed unanimously. The Economic Development, Finance and Trade Committee, however, did not submit a resolution. The Committee has been working on the issue of “budgetising” the European Development Fund (EDF). Most MEPs are strongly in favour of this, as it would enhance the role of the European Parliament. Many ACP delegations are wary fearing it will lead to unpredictability and possible reductions in development aid to some countries. This debate is complicated by the fact that some proposals from the Commission, which would at least partly address some ACP concerns, are being opposed by some member states that are resisting “budgetisation” because they do not want to have to increase their contributions. This has led to a decision to establish a 10th EDF based on the current system of voluntary contributions. During the course of the JPA, the two Co-Rapporteurs managed to produce a draft compromise resolution on this matter, which will be put to the vote at the next Committee meeting.
The draft resolutions tabled on the “urgent topic” of Darfur were very divergent, with a draft sponsored by the Sudanese delegation welcoming the cooperation of the Government of Sudan and blaming the rebels in Darfur for the continuing conflict. European Parliamentary groups, on the other hand, were strongly critical of the Government of Sudan and several threatened sanctions or embargoes. Rob Davies was asked by the ACP Co-President to work with Professor Ephraim Kamuntu, the delegate from Uganda, to seek a compromise. After much negotiation, and greatly assisted by the agreement signed at the UN Security Council meeting in Nairobi, a compromise was agreed. This basically reinforced calls made on all parties by the UN and AU, welcomed the Nairobi agreement and called for a joint mission to visit the area (a suggestion emanating from the Sudanese delegation). This resolution was adopted unanimously without the tabling of any amendment. The other urgent resolution on hurricanes in the Caribbean was much less controversial and also passed unanimously.
In the plenary, we took the floor in the debates on Darfur and the International Criminal Court (lamenting US pressure for bilateral exemption agreements) and on “exchanges of views” with the Commission and ACP council. We had previously tabled questions to the Commission (on progress in addressing the SACU revenue restructuring issue) and the ACP council (on the implications of the new EU food safety regulations). A feature of Commissioner Michel’s answer to our question and several others was that he said he was not happy with the formal written reply and wanted time to review the dossiers on these subjects. We learnt that DG Development wants to appoint a team of economists to review policy on some issues. The SACU group met with an official from the Commissioner’s office and will request a meeting with him during the Committee meetings in Brussels in January/February.
As usual Workshops were held on issues pertinent to the host country – Health, Architecture and town planning and the Port of Rotterdam. The delegation divided itself among the various topics, which really took the form of an excursion to learn about the issues concerned. Members of the delegation also participated in lunches with political groups associated with their respective parties. These lunches, that have now become an established part of the programme, offer an opportunity for an exchange of views across the ACP-EU divide with “like minded” political groupings.
The next Bureau and Committee meetings have been scheduled for 30th January- 2nd February in Brussels, and the 9th Joint Parliamentary Assembly will take place in Bamako, Mali from 16 to 21 April 2005.
Rob Davies Dumisile Nhlengethwa Douglas Gibson.
Copies of the draft “Charter” and “Rules of Procedure” of the proposed ACP Consultative Assembly are available from the office of the Clerk of the Papers.
COMMITTEE REPORTS
National Assembly
- Report of the Portfolio Committee on Health on the World Health Organisation (WHO) Framework Convention on Tobacco Control, dated 22 February 2005:
The Portfolio Committee on Health, having considered the request for
approval by Parliament of the World Health Organisation (WHO) Framework
Convention on Tobacco Control, referred to it, recommends that the
House, in terms of section 231(2) of the Constitution, approve the said
Convention.
- Report of the Portfolio Committee on Public Enterprises on Annual Reports of Department of Public Enterprises and Transnet, Eskom and Denel, dated 16 February 2005:
The Portfolio Committee on Public Enterprises, having considered the annual reports of the Department of Public Enterprises and Transnet, Eskom and Denel, reports as follows:
A. An Initial Foray
-
The Committee considered the annual reports of the Department of Public Enterprises (DPE) on 12 October, Transnet on 13 October, Denel on 14 October and Eskom on 27 October.
-
The Committee did not consider the annual reports of Alexkor, Safcol and Arrivia.kom because of time limitations and other considerations, including difficulties posed by the different reporting cycles of Alexkor and Safcol. However, the Committee considered briefings from Alexkor and Safcol. These will not be covered in this report. The Committee will meet with Arrivia.kom early in the New Year.
-
This was the first time that the Committee considered the annual reports of DPE and the state-owned enterprises (SOEs). Most of the members are new to the Committee. There is also a new developmental thrust being given to SOEs. We had limited time and research support. We also have limited technical capacity, especially in respect of financial, accounting, economic and management issues. Our programme of empowering ourselves has just begun.
-
The Committee is, moreover, seeking to establish what precisely our role should be in considering the annual reports of DPE and the SOEs. The Constitution, the rules of parliament, and the Public Finance Management Act (PFMA), Act 1 of 1999, provide a framework for the Committee’s role. But there needs to be greater clarity, especially in respect of the SOEs. Of course, the Standing Committee on Public Accounts (SCOPA) also considers annual reports. Essentially, as we see it, for now, their focus is largely on financial performance, and ours is mainly on the achievement of measurable objectives and on outcomes. Of course the two aspects cannot be crudely separated. The work of our committee and SCOPA needs to be complementary. We are to engage with SCOPA, the Finance Portfolio Committee, the Committee of Chairpersons, the National Treasury and other relevant stakeholders to get greater clarity on this.
-
As we see it, for now, our Committee’s concerns in considering annual reports revolve mainly around the following issues:
• What were the main measurable objectives, strategy and programmes in the business plan of DPE and SOEs for the financial year under review? How does the business plan advance the agenda set by government and parliament?
• What are the key aspects of the shareholder compact between government and each SOE? To what extent does the business plan of each SOE reflect the priorities in the compact?
• How was the budget allocated to fulfill the plan?
• To what extent was the plan fulfilled and why? In particular, if objectives were not achieved, why is this so and what is being done to ensure that they are met?
• How was the money allocated in the budget spent?
• What lessons were drawn from implementing the plan of the previous financial year for the implementation of the plan for the current financial year?
• What progress has there been in the six months since the end of the financial year and now? What are the projections for the remainder of the current financial year? What are the projections for the longer term?
-
Obviously, the Committee did not expect clear and comprehensive answers to all the questions in section 5 above this time around. The Committee is also acutely aware that DPE and the SOEs are currently re- defining their mandates to take account of the new emphasis the government is placing on the role of SOEs in economic growth, development and service delivery. Major investment plans are being finalised. But, over time, the Committee is to engage in appropriate consultation with all the relevant authorities and stakeholders, including the Ministry, DPE and relevant SOEs, and secure greater clarity on how annual reports should be considered by a parliamentary committee. The Committee will certainly be clearer about its role and what it seeks to do in considering annual reports reasonably soon.
-
In view of the considerations set out here, the Committee decided to be strategic in our approach and choose to take on only so much as we can mange in this first attempt at considering the annual reports of DPE and the SOEs. Our approach must be understood in terms of the Committee’s programme, “Towards Developing a Longer-Term Programme: Setting the Foundations”, adopted on 4 August 2004. Our aims have been modest. We have a phased approach to dealing with the issues in our portfolio. Essentially, we have sought through these briefings to:
• Get a feel for the issues. • Express our initial views. • Set the foundations for a more rigorous consideration of the annual reports next year. • More clearly identify our role and responsibilities. • Begin to shape our overall programme for next year.
-
Of course, the financial year being considered is 1 April 2003 to 31 March 2004. In view of the new emphasis being placed on SOEs, the Committee did not focus too much on the extent to which DPE and the SOEs fulfilled the objectives set out in their strategic and business plans; in future years the Committee will be far more concerned about this. But, inevitably, an assessment of the past financial year cannot be crudely separated from current developments and projections for the rest of this financial year and beyond.
-
Of course, a key concern of the majority in the Committee in these briefings is the contribution of DPE and SOEs to the goals of job creation, fighting poverty and reducing the gap between the “first” and “second” economies. These briefings represent our first consideration of this. We understand that DPE and the SOEs are still finalising plans, programmes, and budgets on this. In future briefings, we will pursue these issues more rigorously.
-
This report does not dwell on the new investment plans for SOEs. The first tranche of this, the R165 billion proposed for Eskom and Transnet, was announced by the Minister of Public Enterprises just as the final briefing on annual reports was being considered by the Committee. These investment plans will be considered by the Committee in due course.
-
This report is longer than it should, ideally, be. The overviews provided of the submissions of DPE and the SOEs on their annual reports to the Committee are perhaps too detailed. But the extent of detail is partly related to the fact that this was our initial consideration of annual reports and we need to quickly come to terms with our portfolio. However, the report still provides no more that an overview of the submissions. A fuller account of the presentations to the Committee is to be found in the annual reports and submissions received by the Committee. These can be obtained from the Committee Secretary, Mr Chris Thisani.
-
In a way, this report is as much about the Committee shaping its identity and role as it is about the Committee’s views on the annual reports of DPE and the SOEs – and so, inevitably, it must be for now!
B. Department of Public Enterprises
1. The Department was represented by Director General, Dr M Eugene
Mokeyane; Deputy Directors General, Ms Portia Molefe, Mr Tebogo
Mphuti and Mr James Theledi; Chief Director: Communications and
External Liaison, Mr Andrew Aphane; Director: Analysis and Risk
Management, Mr Mvikeli Ngcamu; Director: Policy, Mr Denzil Matjila;
Chief Finance Officer, Mr Mario van der Walt; Chief Operations
Officer, Mr Mandla Mazibuko; Parliamentary Liason Officer, Ms Dudu
Mhlongo; and Ministerial Spokesperson, Ms Gaynor Kast.
2. Dr Mokeyane explained that DPE’s vision is “excellence in
shareholder management” and its mission is “to provide an enhanced
shareholder management system, inclusive of restructuring” to
promote economic efficency. DPE’s key objective is to develop a
“coherent approach to restructuring and transforming SOEs to ensure
improved economic and social impact”. DPE seeks to “systematically
monitor the performance of SOEs to ensure the alignment of their
activities with government policies”.
3. DPE’s “strategic goals” for the 2003-4 financial year were:
• Clear mandates with SOEs regarding the operating parameters
between government and the SOEs.
• Performance criteria and a process of monitoring performance on
a regular basis.
• Ensuring that SOEs adhere to corporate governance principles.
• Developing and implementing an effective communication process
with all stakeholders.
• Restructuring of SOEs.
4. The Department had organised its work around four programmes to
achieve these goals: administration; restructuring of SOEs;
performance monitoring and shareholder management; and alternative
service delivery. The Department felt that it had made significant
progress in advancing these goals. In particular, it had
strengthened its oversight role over the SOEs, especially in ways
that overlapped with the government’s more recent “strategic shift”
of emphasis on the crucial role of SOEs in investing in the economy
and contributing to economic growth and development. Among the
achievements pointed to were the following:
• Development of a new shareholder management model.
• Progress in finalising a Risk Management Policy Framework for
SOEs.
• Creation of Restructuring Frameworks for SOEs.
• Alienation of “non-core, non-strategic” assets.
• Development of a Guarantee Exposure Monitoring System (GEMS)
to monitor guarantees issued to SOEs on a quarterly basis.
• Establishment of an SOE database of quarterly and annual
results of SOEs.
• Development of an “Investment Map” to monitor SOE
investments.
• Progress in terms of broad-based Black Economic Empowerment
(BEE).
• Development of an IPO (Initial Public Offering) Reference
Manual based on the Telkom experience.
• Development of new skills within DPE to effectively implement
the strategic shift in emphasis.
5. In order to play its role more effectively, the Department had
strengthened its internal structures and streamlined its
operations. With the “strategic shift”, the Department had also
been restructured. It now had four Deputy Directors General for
Analysis and Risk Management; Governance and Policy; Corporate
Strategy and Structure; and Corporate Finance and Transactions.
Currently, the staff is made up of 82% Africans, 6% Coloureds, 2%
Indians and 10% Whites. 53% of the staff is female.
6. DPE had been allocated a budget of R88,1 million for 2003-4. DPE
had underspent by 5%. National Treasury’s benchmark is 3%. For the
fourth year in a row, DPE had received an unqualified audit from
the Auditor-General.
7. The Director General explained that the “government has repeatedly
maintained that we are not going to have a bargain basement,
wholesale sell-off of state assets”. But the government was going
to do everything to encourage private sector participation in state-
owned enterprises through a variety of other forms. In transport,
the state would mainly retain control of the infrastructure, but
the operations will be largely in private hands. In the energy
sector, 30% of new electricity generation will be provided by an
independent power producer. Generation and transmission within
Eskom will be ring-fenced. A multi-market model for wholesale
electricity trading is on the agenda. A South African Power
Exchange is to be established. The government had decided to shelve
for now getting a strategic equity partner for Denel. A strategy
for Denel is being worked on.
8. The Department feels that since the elections in April, it has made
significant progess in clarifying the “strategic shift” in
emphasis, finalising new SOE investment plans, and restructuring
the Department and appointing new senior managers. The Minister had
also concluded a new performance contract with the Director General
and senior managers. A process has also begun of ensuring more
regular contact between the Minister and the Chairpersons of the
SOE Boards, and between the Director General and the CEOs of the
SOEs. The Director General explained that DPE’s progress towards
achieving its measurable objectives was set out in its website, and
the Department would be prepared to give the Committee a quarterly
report on this. The Director General said that attempts are being
made to brand DPE more effectively as it is not seen to be visible
enough.
9. Overall, the Committee feels DPE made valuable progress in the 2003-
4 financial year. It is to be commended for the way it has dealt
with the “strategic shift” in emphasis, and it has certainly made
significant progress in the financial year to date. The new
structure of the Department seems to be more consistent with the
“strategic shift”. The Committee feels too that the composition of
the Department’s staff is very consistent with the requirements of
the Employment Equity Act 55 of 1998, and is particularly impressed
with the fact that 53 % of the staff comprise women. The Committee
welcomes the Department’s Employee Wellness Programme and hopes
that it will contribute to ensuring the stability of the staff. The
Committee commends the Department for the unqualified report it
received from the Auditor-General and for its minimal under
spending.
10. While welcoming the progress in the strengthening of DPE’s
oversight role over the SOEs, the Committee feels this needs to be
taken further. The Committee will offer concrete suggestions in
this regard within the next six months. The Committee would also
like DPE to in future spell out more clearly in its presentations
on its annual reports to the Committee the shareholder compacts
concluded with the SOEs and how precisely DPE monitored the
progress of SOEs in fulfilling the objectives and other aspects of
the compacts. The Committee believes that consideration should be
given to tabling the shareholder compacts in parliament. This would
also serve to clarify the oversight responsibilities of the
Committee in respect of both DPE and the SOEs. The Committee feels
it would be useful to have a workshop with DPE within the next six
months on corporate governance of the SOEs and the new shareholder
management model being developed.
11. The Committee would also like a briefing from the Department on the
development of its SOE Risk Management framework within the next
six months. The Committee is concerned at the inadequate sanctions
for SOE Board members and officials who take hedging and other
decisions which lead to huge financial and other losses. While
appreciating the complexities, the Committee would like the
Minister and Department to clarify what is being done to avoid a
recurrence of these unsound decisions and what sanctions,
consistent with the PFMA, will be applied to those responsible,
should they occur again.
C. Transnet
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Transnet was represented by the Board Chairperson, Mr Phaswana; and Group Chief Executive Ms Maria Ramos; the CEO of Spoornet, Ms Dolly Mokgatle; the CEO of the National Ports Authority (NPA), Mr Siyabonga Gama; the CEO of South African Port Operations (SAPO) Mr Tau Morwe; the CEO of Petronet, Mr Charl Moller; the Group Executive: Strategy and Transformation, Mr Pradeep Maharaj; the SAA Executive Manager: Strategy and Planning; Mr Mohan Vivekanandan and Transnet Group Executive: Legal, Mr Vuyo Kahla.
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Ms Ramos explained that Transnet’s role is to “contribute to the sustainable economic development of South Africa by providing the best connected and efficient transport network run by world-class rail, pipeline and port operators.” It seeks to reduce the cost of doing business, make South Africa more globally competitive and stimulate job-creating economic growth. It aims to provide “an integrated, seamless transport and logistics solution to its customers and users”. It seeks to respond to the challenges posed by globalisation and integrate the needs of the first and second economies in our country.
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In 2003 the transportable production in the economy amounted to 745 million tons. Mining accounted for 49%, manufacturing 45% and agriculture 6% of this. (In 1998, the total amount was 580 million tons.) The total transport costs associated with this production to the economy was R135 billion. With an associated logistics cost of R45 billion, the total logistics cost was R178 billion, which was 14,7% of GDP.
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Transnet has nine main divisions and a number of subsidiaries and related businesses. Currently, Transnet’s key businesses are Spoornet, NPA, SAPO, Petronet and SAA. It also has several other operating divisions, including Freight Dynamics (dealing with road freight), Metro Rail, Autopax (dealing with inter-city and cross- border road passenger services), Marine Data Systems (disposed of subsequently), Virtual Care (pharmacies that have subsequently been disposed of), Transtel (telecommunications), and Transnet Housing, Transnet has assets in excess of R70 billion and over 77 000 employees.
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Transnet faces huge challenges in fulfilling its role. During the 2003- 4 financial year, Transnet suffered a R6,3 billion loss. Its operating profit fell to R187 million from R5,1 billion the previous year. Cash flow and capital reserves were down. Turnover increased by only 5,7% to R43,6 billion. Transnet carried a debt of R27, 8 billion. Its gearing ratio was 83%, when 55 to 60% is a more reasonable benchmark.
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Transnet attributed its weak financial position to “inadequate corporate governance, lapses in financial discipline and risk management which resulted in poor operating performances and substantial financial impairments in many businesses within the Group. Inefficiencies, low margins, investment backlogs, aged assets and infrastructure as well as the maintenance costs of under-utilised rail networks and port infrastructure are undermining operational returns”.
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A key explanation for Transnet’s financial position is SAA’s R15 billion net loss over the past two years. These losses stem largely from hedging activities undertaken by SAA as well as a significant downturn in the global aviation sector post-11 September and the outbreak of SARS. There also had to be a large adjustment in the valuation of SAA’s aircraft due to a drop in market value of aircraft in view of exchange rate differentiations and the poor airline business environment. The hedge book was closed off on 30 June 2004. SAA’s current net exposure is $100 million. SAA was technically insolvent at year end and requires further capitalisation of R4 billion with a further R1,5 billion credit line of credit from its parent company to enable SAA to continue operations over the current next year.
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Transnet’s losses also have to be explained in terms of the new accounting standards in terms of which it has to report, particularly AC128 and AC133, which deal with asset impairments and fair value adjustments and the valuation of embedded derivatives related to customer service contracts.
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Post-retirement liabilities continue to plague the financial position of Transnet with the unfounded obligation at year end valued at R7,6 billion.
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Spoornet experienced a loss of R668 million in 2003- 4, as against a profit of R400 million in the previous year. This was mainly due to changes of commodity prices in respect of the iron-ore contract and high operating costs and increases in maintenance costs, an ageing workforce and loss of valuable skills also made their mark.
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The NPA increased profits before tax by 31% to R2,1 billion. SAPO posted a profit before tax of R348 million as against a reported loss of R86 million the previous year. Petronet increased profits before tax by 99% to R239 million.
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To improve its financial position and ensure that it fulfills its crucial role, Transnet is undergoing major restructuring. It is to be transformed from “a diversified conglomerate into a focused freight transport and logistics provider”. Its core business is to be rail, ports and pipelines. SAA is to be removed from the Transnet stable. Transnet recognizes that there are significant shifts in the South African economy that require a change in supply chains. South Africa has to reduce logistic costs by a third to sustain its competitiveness. There is a need to “focus on strategic clusters and strategic corridors”. It is also necessary to have long-term planning that anticipates demand.
13. Transnet has a 4-point turn-around plan:
1. Redirecting the business.
2. Restructuring the balance sheet.
3. Implementing and adopting strict corporate governance principles.
4. Adhering to a vigilant risk management process.
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Transnet’s revised industry positioning focuses on:
• Vertical separation of operations and custodianship of infrastructure in its core businesses of rail ports and pipelines. • Inter-modal co-ordination to ensure seamless integration between rail and ports. • Non-core operations to be housed in an investment portfolio for potential future divestment.
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Other aspects of its strategy include increasing operational efficiencies; changing the organisational culture; developing new skills; raising productivity; radically restructuring the head office and reducing costs; developing a strong customer orientation; and addressing the legacy of post-retirement benefits. The aim is to have a lean, well-functioning, more focused holding company with infrastructural and operational arms, which would be corporatised in time. A key aspect of the strategy is to have greater synergy between Spoornet, NPA and SAPO, and to integrate investment strategies.
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There is a multi-year plan under way. In 2004-5 the focus is on “Building a Solid Foundation”, with the emphasis on operational efficiency, vertical separation; corporate office restructuring; and divestment. The focus in 2005-6 will be on “Implementing A New Business Model”, with the focus on operational synergy between SAPO, NPA and Spoornet, and a restructured portfolio. The focus in 2006-7 will be on “Delivering the Mandate”, with the emphasis on operational integration of the ports and rail with the private sector; and local and global partnerships for growth. None of these phases are mutually exclusive and will be run concurrently.
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Transnet believes that the implementation of its new strategy will, over time, improve its financial position. It will substantially reduce its borrowings if it divests its non-core assets and restructure its balance sheet. By strengthening its balance sheet, it will be able to raise fresh capital in the market and use this to strengthen its core business.
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Ms Ramos explained that she could not at this stage spell out the impact Transnet’s new strategy will have on jobs within the company. But any job losses will be negotiated with the trade unions in terms of the National Framework Agreement. Transnet’s key contribution to job-creation was through reducing the cost of business and assisting the economy to expand so that more jobs can be created.
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Spoornet is a “stagnant business warranting fresh solutions”. It has been losing market share to the roads which accounts for 82% of the value of transport in the economy. Since 1990 there has been minimal growth in the total freight tansported by Spoornet. For over 60 years, there has been no new railway constructed in South Africa. Spoornet is to be revitalized and has engaged in a “re- strategisation programme’. This will revolve around customer service, operational efficiency, safety, profitability and skills. A key component of the strategy is to better understand the needs of the customer base. Resources will be used in a segmented way with the focus on large paying customers. To increase density on the lines, new locomotives with on-board signalling and changes to signal spacing, especially on the Sishen-Saldanha corridor are planned. Metrorail and Shosholoza Meyl are to be ceded to the Department of Transport. There is a three-phase strategic direction spanning the next five years. Phase 1 focuses on “Fixing the Basics”, phase 2 on “Growth” and phase 3 on “Adding Value. A National Operations Centre is to be established to ensure planning, co-ordination and implementation. The CEO, Ms Dolly Mogkatle, is actively in the field herself, constantly engaging with customers and staff in different parts of the country.
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Based on the new strategy and with the aim of investing R14 billion in upgrading infrastructure over the next 5 years, the aim is to increase Spoornet’s freight capacity by 30% in 5 years.
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The NPA is to be strengthened as the custodian of the country’s seven commercial ports. It will have landlord, maritime and control functions. It will set and monitor efficiency standards to meet customer expectations. The NPA will have to adjust its operation in line with the impending introduction of a port regulator. Aspects of the NPA’s strategy include ring-fencing of assets, corporatisation, private sector participation, and funding plans. The aim is to invest R16,3 billion in ports infrastructure over the next 5 years. The NPA’s challenge is to reduce tariff income while increasing capital investment.
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SAPO operates 13 terminals in 6 ports with assets of R3,2 billion. Its revenue of R3,2 billion in the 2003-4 financial year is expected to grow by 9% per annum. It aims to reduce operating costs by 10% per unit of volume in the 2005-6 financial year. It will also seek to diversify revenue streams through partnerships with the private sector to grow the revenue in real terms by 2007, anticipate market demand to plan timeously, and create a performance management culture.
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Petronet’s core business is the bulk transportation of energy, which includes a range of petroleum products and gas. It does this though 3 000 kms of high-pressure, underground steel pipelines. Petronet transports about 40% of the country’s refined fuel requirements and all of Natref refinery’s crude oil requirements, which is 21% of South Africa’s total crude requirement. About 80% of Johannesburg International Airport’s requirements are supplied by Petronet’s Avtur pipeline.
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SAA serves over 600 intercontinental, 30 African and 21 domestic destinations, and offers 358 daily frequencies. Intercontinental routes account for 60% of passenger revenue. About 50% of SAA’s sales are generated outside South Africa. By 2005, SAA will have 61 aircraft. All but 7 of them will be on lease. Despite its major financial challenges, SAA clearly has the potential to become successful. Currently, it is ranked among the top ten transatlantic airlines in the world. A strategy for SAA’s renewal is currently being worked out.
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The Committee welcomed the frank and comprehensive presentation offered by the Transnet Group CEO and her team. The Committee agrees with Ms Ramos that it will not do to expect dramatic changes overnight and that it will take time to effect the strategy. The Committee appreciates the enormous challenges that confront Transnet, but believes that the clear, measured, creative, wide- ranging strategy Transnet set out has much to commend it. The Committee is very encouraged by the determination of the Chairperson of Transnet’s Board and the senior managers who were present at the briefing to make Transnet work. While appreciating the difficulties it could cause, the Committee thinks it is commendable that the Group CEO and all the senior managers have not taken a salary increase or incentive bonuses this year in view of Transnet’s financial challenges.
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While expressing strong support for the new management of Transnet, the DA believes more space should be given to the use of private sector capital in the financial restructuring of Transnet.
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The Committee feels that the major challenge now is phasing in the strategy appropriately and implementing it effectively. It would be vital to negotiate maximum support for the strategy from Transnet managers, the staff, trade unions, business, public representatives, and civil society and other stakeholders. The Committee is aware that Transnet has in recent years devised grand strategies, but has simply not implemented them. This time Transnet has to implement its strategy, plans and programmes effectively, and has to be given all the necessary support to do so. While the Committee appreciates the difficulties, we would like to see in Transnet’s presentation on the annual report next year more specific measurable targets that were decided on and the time-frames that were allocated to achieve these. The same would apply to the projections for the future that Transnet sets out.
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The Committee also wants greater clarity on the financial implications of Transnet’s restructuring. There is also a need for greater clarity on how Transnet is going to fund its proposed R37 billion investment programme.
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The Committee is keen to get greater clarity on the following, among other issues:
• The impact of Transnet’s restructuring and the investment plans on job-creation. • Transnet’s broad-based Black Economic Empowerment policy and programme. • The synergy being effected between Spoornet, NPA and SAPO.
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The Committee is especially keen to find out what the new risk management framework of Transnet is and how it will seek to avoid a recurrence of the financial losses experienced in recent years. As raised in section B11 above, the Committee feels that appropriate sanctions, consistent with the PFMA, should be applied to those responsible for such decisions that could be avoided. The Committee will arrange with Transnet appropriate briefings with it and its subsidiaries to take further issues raised in the briefing on the annual report.
D. Eskom
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Eskom was represented by CE, Mr Thulani Gcabashe; Finance Director, Mr Bongani Nqwababa; Managing Director: Distribution, Mr Mongezi Ntsokolo; Managing Director: External Relations Division, Mr Joe Matsau; Liasion Manager: External Relations Division, Ms Pravashini Govender; and Eskom spokesperson, Mr Fani Zulu. An apology was tendered on behalf of the Board Chairperson, Mr Reuel Khoza, who was away from the country.
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Eskom’s “strategic intent” is to be “the pre-eminent African energy and related services business of global stature”. Its mission is to “grow shareholder value by exceeding the needs of local and foreign customers with energy and related services”. Its “key competency” is “the ability to develop and manage the extended electricity value chain so as to deliver high quality, low cost electricity, using low- grade and scarce resources (e.g. coal and water) in a challenging business, social, natural and political environment”. The key objective of Eskom is to “provide the most people with the safest and lowest cost electricity”. Eskom generates 95% of South Africa’s electricity and over 50% of the electricity consumed in Africa. It is the 11th largest utility in the world in terms of generation capacity and the 9th in terms of sales.
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Eskom focuses on sustainable development, in terms of a strategy to ensure integrated achievement of economic, environmental and social goals. Eskom measures and reports on its performance in a single integrated sustainability report covering the following 4 key aspects:
• Socio-economic: electrification; BEE. • Technical: plant availability; plant reliability; system minutes. • Financial: profit before tax; return on assets; debt-equity. • People, Safety, Health and Environment: Peoples measures; HIVand AIDS; Eskom Fatalities; Specific Water Consumption; relative particular emissions.
4. Eskom Holdings Limited is a vertically integrated utility that is
split into:
• The Regulated Businesses: This entails generation;
transmission; distribution; key sales and customer services; and
corporate divisions.
• The Subsidiaries: Eskom Enterprises (Pty) Ltd; Eskom Finance
Company (Pty) Ltd; Escap Limited; and Gallup Insurance Company
Limited.
Eskom Enterprises and its subsidiaries carry out all Eskom’s non-
regulated activities. Its “core lines of business are infrastructure
development, energy business operations, specialised energy services and
the pursuit of key opportunities in related or strategic businesses such
as information technology and telecommunications”. Eskom Enterprises
has its own Board, as do all Eskom’s other wholly-owned enterprises.
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Eskom has 13 coal-fired stations, 2 gas turbines, 6 hydroelectric stations, 2 pumped storage schemes, and a nuclear power station. Eskom serves more than 3,5 million customers by means of 336 270 kms of power lines of all voltages. 3 million of these customers were connected in the past 10 years. Eskom electrified 7 976 schools and clinics since 1994. Eskom’s theme for the year is “Corporate Delivery in a Decade of Democracy”. Currently, more than 70% of South Africans can have access to electricity. Eskom estimates that about 80% of them are active customers.
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Eskom received the Platts Global Energy Award for the “ Community Development Programme of the Year” in 2003.
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Eskom has about 32 000 employees. It ranks high on the Human Resources Sustainability Index at 91,8%, well above the threshold of 80% and the previous year’s score of 89,9%. The Human Resources Sustainability Index combines 25 weighted measures in the areas of employee satisfaction, competence, equity, and health and wellness, to reflect on a company’s ongoing ability to achieve its human resources objectives. In terms of representivity, the percentage of Blacks in the managerial, professional and supervisory levels increased from 54,6% in 2002 to 56,3% in 2003. Women at these levels increased from 24,5% to 27,8% and people with disabilities from 0,16% to 1,4%. Blacks in managerial, professional and supervisory positions increased from 8,9% in 1994 to 56,5% in 2003. Women in such positions increased from 10,4% to 27,8%.
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Eskom’s financial reports cover the period 1 January 2003 to 31 December 2003. In line with the request from the Department of Public Enterprises, the Board of Eskom has approved the change of its financial year end from 31 December to 31 March. Eskom reported a Group profit after tax of R3,5 billion in 2003. The profit was R3,7 billion in the previous year. There was a 4,8% growth in electricity sales in 2003. The growth was 3,5% in 2002. Debt-equity ratio improved from 0,30 in 2002 to 0,46 in 2003. Total productivity improvement for the year increased from 1,6% in 2002 to 2,5% . Eskom’s real rate of return declined from 1,69% to 0,53%. The delay in the issuing of the licence prompted the Eskom Board to raise an important provision of R649 million against its investment in the second national operator. The Eskom Board also raised a provision of R154 million relating to the Eskom Enterprises investment in Mountain Communications (Pty) Ltd, a Lesotho registered telecommunications company. Overall, Eskom’s assets are worth about R100 billion.
- Eskom spent R7,3 billion on procuring goods and services from BEE
companies in 2003. Since 1997 Eskom has spent more than R20 billion.
Eskom spent R714 million with Black women-owned enterprises since
- Eskom has a comprehensive strategy to deal with “fronting”, including unannounced visits to companies to verify information given to Eskom to qualify as BEE companies.
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Eskom has a major programme on HIV and Aids. Tests conducted in 2000 and 2002 found that 11% of the staff was found to be HIV positive. The company has a multi-pronged approach, and provides information, education, testing, counseling, free condoms, and a medical aid package including anti-retrovirals. Eskom has contributed R67 million towards research to develop an Aids vaccine and has allocated a further R45 million until 2007 for this.
- Eskom’s safety record has improved with a reduction in public
electrical fatalities and injuries, and the lowest work-related
fatalities in 30 years. Eskom improved its environmental ratings in
- Many parts of Eskom have received ISO 14001 certification, while the remainder of the group demonstrated compliance during 2003, through third-party audits. Eskom made a commitment to reduce overall particulate emissions to an average of 0,28 kg/MWh sent out by the end of 2003. This target was achieved. 12. Mr Gcabashe stressed Eskom’s commitment to NEPAD and the related energy projects on the continent. Eskom’s strong emphasis is on providing energy in the Southern African region. The possibilities of hydro energy in the region are being explored. Obviously, there are risks entailed in Eskom’s engagement in the continent, but Eskom is sensitive to this, he said.
13. Eskom explained that at the current growth rate for electricity
demand, and in the absence of any corrective measures, South Africa
will run out of excess peaking capacity in 2007. A major
restructuring of the whole electricity industry is under way, and
major investment plans are being finalised for new electricity
generation capacity. Eskom will meet most of these needs, but there
will be room for an independent power producer. Eskom is in the
process of returning to service 3 of its mothballed coal-fired
stations. In line with the Cabinet decision of the 20 October 2004,
Eskom will lead South Africa’s drive to create new electricity
generation capacity.
14. Eskom explained that the entire country cannot be provided
electricity from the grid. South Africa’s topography in the rural
areas makes this very difficult. Eskom is in discussion with the
Department of Minerals and Energy to discuss other non-grid options,
especially for some of the remote rural areas. Solar non-grid is
one of the options discussed. Mr Gcabashe explained that Eskom
would like to increase the pace of delivery of free basic
electricity services, but that negotiations with municipalities
often took too long. Eskom would prefer to be allocated money
directly from the national fiscus to deliver the free services,
instead of the money being allocated through the municipalities.
15. Eskom does not anticipate any job losses through the disposal of
its non-core assets, as part of government’s restructuring
programme. These non-core businesses are viable and would be sold
as going concerns. Many of them are potential BEE companies with
room for expansion. Eskom will inform the Committee shortly about
the number of jobs that will be created through the re-
commissioning of the 3 power stations. It is too early to say how
many jobs will flow from the major investment drives being
finalised, but these figures, too, will be sent to the Committee as
soon as they become available.
16. Eskom explained that illegal electrical connections occur mostly in
areas not set aside as residential areas (informal settlements and
unproclaimed areas). Eskom estimates that it loses 18% of its
domestic household sales as a result of illegal connections. The
financial impact is low but the hazard and nuisance factors are
high. Eskom is working with municipalities to reduce these illegal
connections and also has a major advertising campaign to do this.
17. The Committee congratulated Eskom on its many successes and
expressed the hope that it will rise to greater heights. Apart from
Eskom’s many well-known achievements, the Committee was interested
to hear about the company’s advanced HIV and AIDS programme, and
commended Eskom for this. From what the Committee can tell, it
seems that Eskom’s BEE programme is also encouraging, even if they
still have a long way to go.
18. The DA believes that the government had earlier planned a phased
privatisation of Eskom, and expresses its disappointment that the
original target of 30% of generation capacity being provided by an
independent power producer has been down-scaled to 30% of new
capacity.
19. In order to get a better sense of Eskom’s achievements and to
facilitate MPs constituency work, the Committee would like Eskom to
in future provide a provincial and municipal breakdown of the
statistics it provides, where possible. With major investment plans
pending, the Committee appreciates that there will be pressure to
increase Eskom’s tariffs, but stresses the importance of deciding
on a price structure that does not burden the poor or impede the
delivery of free basic services. The Committee will pursue this
further with Eskom. The Committee also needs to understand better
the financial implications of the restructuring of the electricity
industry for municipalities. A joint meeting of the Public
Enterprises, Minerals and Energy, and Provincial and Local
Government portfolio committees to consider this further is
proposed for early next year. The Committee will also raise with
the Provincial and Local Government Portfolio Committee Eskom’s
concerns about the slow pace of negotiations with municipalities on
the delivery of free basic services. While appreciating the many
complexities, the Committee feels that more should be done to
extend electricity in the rural areas. The Committee is interested
in developments on the Pebble Bed Modular Reactor project. The
Committee is also interested to get a better understanding of
Eskom’s role in the rest of Africa, and will pursue this further.
E. Denel
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Denel was represented by Board Chairperson, Mr Sandile Zungu; and CEO, Mr Victor Moche; Group Executive Director: Commercial and IT Business: Director of Finance (Acting); Mr Pottie Potgieter; and Chief of Staff in the CEO’s Office, Ms Cassandra Gabriel.
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Mr Zungu stressed that Denel sees it as very valuable to engage with the Portfolio Committee and welcomes the decision of the Committee to formally consider its annual report each year from now on. He explained that contrary to media reports, it was not true that Denel had concluded a contract for artillery systems in India. Denel is in partnership with an Indian company for the self-propelled version of the Howitzer gun, which makes up about 25% of the contract. However, the Indian government had not yet awarded the contract. If it is approved, it would be worth about R6 billion. However, the positive effects of this would only be reflected in Denel’s balance sheet in 2 to 3 years’ time.
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Mr Moche explained that the manufacturing arm of Armscor was hived off to form Denel in 1992 as a state-owned commercial company. Armscor remains as the procurement division of the SANDF (South African National Defence Force). Denel defines itself as a “technology-based company with a strong emphasis on high technology research, development and manufacturing of defence products and the provision of services”. It “commands a wide spectrum of management, research and development, engineering, and manufacturing capabilities in the defence industry”. The “key focus areas of the business are in Aerospace, Land Systems and commercial businesses, mainly industrial properties”. Denel aims to “create economic value by transforming its technological capabilities into superior quality defence and commercial products and related services for the global market. It aims to achieve this by “international partnering, international market penetration and maintaining the position of key supplier to the SANDF”.
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Denel has 23 major divisions and subsidiaries spread over 3 provinces. The 3 major business lines of Denel are Aerospace, Land Systems, and Commercial and Information Technology (IT). Among its key Aerospace products and services are missiles and guided weapons; helmet-lighting systems; the Rooivalk attack helicopter; aircraft parts manufacture, repair and refurbishment; flight test facilities; unmanned aerial vehicle observation systems; and target drones. Among its key land systems products and services are artillery systems; artillery propellant charges and projectiles; plant manufacture; infantry weapons; and small and medium calibre ammunition.
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Denel’s non-military products include humanitarian demining; mine action; hunting and sporting ammunition; rock-breaking and mine drilling equipment; marine distress flares; hilti industrial percussion products; and micro-gas generators used for triggering airbags in the motor industry.
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Denel’s non-core businesses include an Arrivia.kom shareholding (IT), SPP (soya processing plant), Irenco (plastics and electronics), Sybase (IT), Voltco (household electronics ), Bonaero Park (property), Cosource (IT) and Dendustri (aluminium).
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Denel currently has a staff of 9 742: 50,1% is Black and 24,3% comprise women. In 2003-4, Denel had a staff of 10 925, of which 51,6% were Black and 25,6% women. The number of Black executives and senior managers increased from 35 in 2002-3 to 65 in 2003-4. The number of women senior managers increased from 4 to 25. 70% of Denel’s employees are technical staff, engineers and scientists. Denel believes that it is challenged by a shortage of engineers and technicians, an ageing skills base, and a lack of employment equity.
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Apart from DPE, Denel also works with the Departments of Defence, Finance, Foreign Affairs, Labour, Science and Technology, Intelligence, and Trade and Industry. Denel is bound by international conventions and agreements signed by the government, including the Nuclear Non-proliferation Treaty, Biological and Chemical Weapons Convention, Mines Ban Treaty, and the Non-proliferation of Weapons of Mass Destruction Act.
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Denel’s highlights for the year under review included:
Aerospace
• Contracted by BAE Systems/Saab for design, development and supply of helmet tracking system for Eurofighter-Typhoon and the export version of Gripen. • OTB involvement with NASA’s Mars rover mission. • Installation of manufacturing cell and start of production of Boeing commercial airplanes detail components for The Boeing Company. • Further exports of Ingwe anti-armour missile. • An international award for best live demonstration at IDEX 2003 exhibition in Abu Dhabi.
Land Systems
• Despite the strengthening of the rand and postponement of
awarding of a major contract (Kingfisher), Denel Land Systems
achieved its profit and cash flow budgets.
• Six sites have ISO 9000 quality certification.
• Five sites have ISO 14000 environmental certification.
• Four sites have NOSA NOSCAR gradings, and two sites have five-
star awards for safety, health and environment (SHE).
• The Naschem division at Potchefstroom was awarded first place in
the NOSA Top 100 International award for compliance with SHE
management.
Commercial and IT Activities
• Good business performance by the properties group.
• Solid financial performance by Dendustri.
• A centralised property management model for Denel’s industrial
properties has been implemented.
• Rigorous risk management processes have resulted in low claims
ratio and good business performance for Densecure (Pty) Limited.
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42% of Denel’s revenue comes from sales to the SANDF, 20% from the Middle East, 15% from Europe, 11% from Asia, 5% from South America, 4% from Africa and 3% from North America.
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Denel posted a loss of R377,5 million from total revenues of R4,4 billion in 2003/4. In the previous year, the loss was R72,6 million and revenues were R4,3 billion. Current liabilities amount to R2,4 billion and non-current debt to R832 million. Denel’s assets are worth just over R4 billion.
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Denel identified the following immediate reasons for its financial difficulties:
a. Implementation of accounting standard AC133, which reduced Denel’s possible profit and reserves by about R270 million. b. The reduction in value of non-productive assets by R65,4 million. c. The strengthening of the Rand by 26% against the US dollar. d. Major losses from non-core businesses. e. Retrenchment costs of R22,9 million. f. The write-off of research and development costs of R64,7 million.
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Other reasons cited for Denel’s unfavourable financial position include:
• Operational inefficiencies. • High overhead costs. • Decline in orders from the SANDF. • Decline in Research and Development funding. • Investment in and losses from the Rooivalk programme (about R2 billion over 9 years). • An unsuccessful commercial diversification strategy (about R900 million). • The global economic slowdown. • Intensified international competition.
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Both the Board Chairperson and CEO stressed that Denel was severely disadvantaged by the open tender policy of Armscor, which forced it to compete with foreign companies for tenders from the SANDF. Denel is completely opposed to this policy and claims that very few, if any, countries with a defence manufacturing industry has such a policy; the defence industry is highly protected. Denel even says that “domestic orders often exceed the national requirement, but tend to secure the industry, which is seen as a strategic entity with export potential”. Denel also feels that foreign defence forces would be discouraged from buying from Denel if the domestic defence force is not doing so.
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Denel holds that it was partly forced to venture into non-defence commercial businesses because of the decline in SANDF orders. At the time that Denel was formed, there was a decline in international defence spending, and many defence companies turned to non-defence commercial activities to survive.
16. The CEO explained that the Rooivalk combat helicopter has been
developed for 20 years now. Very few countries have been able to
build a sophisticated helicopter like this. In terms of “aerospace
technology, this places South Africa in the same state-of-the-art
league as the United States, France, Germany, Italy, Britain and
Russia”. The Rooivalk was ranked in the top three internationally,
in terms of capabilities. It is considered better than its American
and Chinese counterparts, and foreign defence forces showed much
interest in it. There was a need to speed up the process of putting
a finished product in the market. It requires an injection by the
Department of Defence of R661 million until 2007 to be completed,
and a further R283 million until 2007 for support. If the flow of
funds through Armscor is managed properly, Denel will complete the
Rooivalk in three years.
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Denel is implementing a new strategy of turn-around interventions. It is selling off its non-core businesses. It defines its core business as “the manufacturing, refurbishment and maintenance of land and aerospace defence systems, products and components”. However, activities not directly defence or aerospace related, such as project management and electronic or engineering manufacturing will be retained because of the cost-effective synergies derived from them for the core businesses. But Denel’s food and plastic manufacturing, IT investments, household electronics and commercial property businesses are to be sold.
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The core businesses will also be restructured and rationalised. For example, Vektor will be integrated into LIW (engineering plant) saving millions of rands by avoiding duplication of management, and operational structures and resources. Support services were provided separately in each of the 23 divisions of Denel. These services are now being centralised and consolidated. They include finance, procurement, marketing, IT, human resources, legal services and communication. Products are also being reviewed to ensure that Denel’s product base remains internationally competitive. The Aerospace and Land Systems business lines are being restructured. Programmes of cost-cutting, rightsizing, business process re- engineering and contract re-negotiation have been implemented. Other elements of the restructuring include better alignment of skills; more effective performance management; “zero tolerance” of fraud, corruption and mismanagement; and aggressively growing new markets.
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Denel has already successfully turned around some loss-making businesses, including Somchem (explosives and propellants), Menchem (landmine clearance) and PMP (small calibre ammunition).
- Recognising the importance of developing mathematics, science and technological skills among South Africans, especially those historically disadvantaged, Denel established the Denel Centre for Learning and Development in March this year. The Centre has 4 schools: the School of Business Leadership, Marketing and Management; the School of Aerospace; the School of Land Systems; and the Denel Youth Foundation Training Programmes. Denel offered bursaries of R4,3 million in 2003-4 for students doing engineering and related courses. About 200 students each year are being sponsored by Denel and the SANDF. Denel also runs a tuition programme for matriculants with inadequate mathematics and science passes to assist them to meet the requirements to enter mathematics and science courses at university. Denel has also started an outreach programme at schools to encourage learners, especially girl children, to become interested in Denel-related careers.
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Denel spent R136,5 million on procurement from BEE companies in 2003- 4, out of a total procurement spend of R1.07 billion. Denel believes this to be far from adequate. To improve spending on BEE suppliers, Denel is implementing the following initiatives: training for BEE entrepreneurs, verification of BEE credentials, publicising opportunities in Denel and externally, and sanctions for “fronting”. Denel noted the following BEE challenges: continued BEE credential verification, rewarding achievement of BEE targets, developing current and potential BEE companies, educating employees on the importance of BEE in the economy, and supporting the adoption of the Defence BEE Charter.
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Denel explained that with its divestment it will obviously end up with fewer employees. Its projections are that it will have 8 928 employees by 1 April next year, down from the current 9 933. Most of these employees will be retained by the companies being sold. Denel’s restructuring also raises the need to address issues around the skills mismatch, redeployment, development of new skills and other related matters. Over 40% of revenues are spent on salaries. Denel believes that this is too high, and should ideally be 30% for a manufacturing company like Denel. Denel is seeking to address this by increasing revenues and efficiencies, which includes ensuring the right people in the right jobs and the right numbers of people in the different areas.
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In terms of its turn-around strategy, the Board and the management has essentially identified the following key objectives:
• Completion of disposal of non-core businesses. • Finalisation of turn-around of Denel Aviation. • Continued restructuring for efficiency. • Continued cost reductions. • Joint ventures at business unit or product level. • Positioning for future major SANDF and global projects. • Incentivising and modernising the workforce.
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Denel has requested the government as its shareholder to consider the following: • Review Armscor’s preferential procurement policy to benefit local industry and secure a base load on consumable products. • Increase research and development funding to benefit Denel and the local defence industry. • Recapitalisation of Denel: remove balance sheet risks and position Denel for future growth. • Divestiture and recapitalisation to renew certain critical plants. • Review Armscor’s requirement for costly bank guarantees on major Denel contracts.
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Denel reported that it had estimated that it lost over R1 million through fraud and corruption in 2003-4, and was pursuing criminal action against those responsible, even if the process is extremely slow. A materiality and significant framework is currently being developed to report material losses through criminal conduct and irregular, fruitless and wasteful expenditure, as well as for significant transactions that require reporting to the Minister as envisaged in section 54(2) of the PFMA.
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Denel’s projections of its financial situation are that it will reduce its loss to R283,6 million in this financial year and to R2,2 million in 2005-6, and make profits of R81,4 million in 2006-7, R361,5 million in 2007-8 and R459,7 million in 2008-9.
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The Committee acknowledges that Denel faces major challenges and that there are no easy turn-around strategies. The CEO and senior managers addressing the challenges have been in Denel for just 18 months. The majority in the Committee feels that, overall, they are to be commended for evolving the new turn-around strategy and interventions. The Board Chairperson and CEO were very frank and open in their engagement with the Committee and conveyed a strong sense of their awareness of the challenges facing Denel. The majority in the Committee hopes that the potential of the present leadership of Denel to address its challenges conveyed to us will be fulfilled.
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The DA, however, has reservations about the performance and future of Denel under the present management. The DA feels that there is no need for the government to own Denel and that it should be sold to the private sector. The DA certainly does not support any government funding for Denel.
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Some of the issues, especially about defence policy, that Denel raised with us are more appropriately dealt with by the Defence Portfolio Committee and will be referred to them. The Committee has, anyway, raised with the Minister of Public Enterprises Denel’s concerns about Armscor’s open-tender policy and its view that government should provide funding for Denel’s recapitalisation, the Rooivalk and research and development, and has been assured that these issues are being addressed through interaction with Denel and other stakeholders.
- The majority in the Committee recognises the overall value of Denel’s turnaround strategy. But the Committee as a whole would like to see more clearer, time-bound measurable objectives and the programmes of action to implement them, and will pursue this further with Denel. The Committee is also concerned about the negative effect of Denel’s balance sheet on the prospects of getting export orders. The Committee is not sufficiently clear about the basis on which Denel has prepared its financial projections for the next 5 years, and will need to engage with this further. The Committee would also like greater clarity on the outcome of Denel’s divestment on jobs and the composition of Denel’s new staff structure. Clarity will also be sought on Denel’s pension and provident schemes.
F.On SOEs in General
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As the Committee sees it, Transnet and Denel are seriously challenged, and Eskom is doing very well, but also faces major challenges ahead. However, all of them have huge potential to, over time, meet their challenges. To the Committee, the leaders of these SOEs seem very impressive; they came across as clear, innovative, determined. Of course, in briefings such as these, Committees will not get “the whole story”, but “parts of the story”, usually the positive parts, but we feel, anyway, that the SOE leaders engaged with us in a commendably open and frank manner. The Committee believes that these SOEs play a very crucial role in our economy and society and it is vital that the huge potential conveyed to us is realised.
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In general the Committee feels that the overall strategies of the SOEs, which are, in a broad sense, similar, are sound. The Committee believes that it is vital that these new strategies are appropriately negotiated with the widest range of stakeholders. While appreciating the magnitude of the challenges being addressed, and that the SOEs are still in an early phase of evolving the new strategies, the Committee would like to see the SOEs set out more specific business plans and programmes with more specific measurable objectives and time-frames by the time of the next presentation of annual reports to the Committee, in the fourth quarter of next year. It is in the business plans, programmes of action and deadlines for achieving measurable objectives and the fulfillment of these, that a strategy is ultimately assessed. More specific business plans, programmes, objectives and time-frames will also provide greater clarity on what the Portfolio Committee is monitoring and contribute towards a clearer framework for interaction between the Committee and the SOEs.
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As explained in section B 10 above, the Committee believes that consideration has to be given to the shareholder compacts concluded by the Ministry and DPE with the SOEs being tabled in parliament. This will also provide greater certainty on what the Portfolio Committee is monitoring in respect of the SOEs.
- Given the government’s “strategic shift” of emphasis on SOEs, DPE will also be more actively fulfilling its oversight role over SOEs. While recognizing the staff, resource and other constraints of DPE, and the need for DPE to respect the necessary autonomy of the SOEs, the Committee feels that it is vital that DPE is more active in its oversight of SOEs. This will also assist the SOEs to become clearer about what government and parliament expects of the SOEs. The Committee will certainly be more actively monitoring DPE’s implementation of its oversight role over the SOEs and in this sense too also be monitoring the SOEs.
- The Committee feels that in parts the SOE submissions were far more technical than they need be. The SOEs should explain issues in a more useful way, and focus mainly on their relevance to the major questions raised in section A5 above.
- Of course, the Committee also has a direct oversight responsibility for SOEs and we mean to fulfill this more effectively over time. As part of the process of doing this, we need greater clarity on the following, among other issues: • The ways in which our oversight role is influenced by the fact that funds are not directly allocated from the national fiscus to SOEs. • The ways in which our oversight role over the SOEs overlaps with and is distinct from that of the Transport, Minerals and Energy, Defence Portfolio Committees and SCOPA, so as to avoid duplication. • The ways in which our oversight role over the SOEs is distinct from that of DPE. To what extent and in which sense, if at all, would the notion of “shareholder activism” apply to a parliamentary committee as distinct from government. Greater clarity on these issues will assist the SOEs to better understand the manner in which they are accountable to our Portfolio Committee, other Portfolio Committees, DPE and other government departments.
- The Committee appreciates that the annual reports of the SOEs are prepared in terms of the Companies Act 61 of 1973, the PFMA and other relevant legislation, and long-standing norms and conventions, and they address the concerns of a wide range of stakeholders. But these reports can be challenging to read and do not necessarily address some of the specific concerns of the Portfolio Committee. The Committee will, of course, consider these annual reports as a whole. But we feel very strongly that the SOEs should make available a user-friendly summary of the key features of the annual report to the Committee at least 7 days before they brief the Portfolio Committee, usually in October each year. These summaries would also be of value to other stakeholders. The cue could be taken from National Treasury, which produces a very helpful user-friendly summary of the national budget each year so that the lay-person can understand its key aspects. The summaries from the SOEs should seek to address the concerns of the Portfolio Committee set out in section A5 above and related concerns. To encourage a more productive exchange between the Committee and the SOEs, the Committee will explore the possibility of general guidelines or a format being made available to SOEs to prepare for their briefings of the Committee on their annual reports. The Committee will discuss this matter with the House Chairperson, SCOPA, Joint Budget Committee, DPE, National Treasury, the SOEs and other stakeholders. 8.The SOEs argue that the primary way in which they can contribute to job-creation is through contributing to economic growth, mainly through reducing the costs of doing business. They explain that if they are restructured to become more efficient and productive and fulfill their new responsibilities effectively, they will probably have to shed jobs. The Committee is clear that if job losses are unavoidable altogether, this should be negotiated appropriately with the trade unions and dealt with in terms of the National Framework Agreement (NFA). The Committee needs to get a better understanding of how the SOEs are going to deal with the possibility of job losses. The Committee is very interested to find out what the impact is going to be on job-creation of the proposed investment plans. To what extent, for example, will the SOEs be stressing labour-intensive building of infrastructure?
- The Committee appreciates that it can be very challenging to appoint suitably qualified and representative Boards of SOEs. Those appointed to the Boards often have many other responsibilities and cannot give the SOEs the attention they deserve. But the Committee feels that the Boards of the SOEs have to be far more effective and meet the requirements of the PFMA and other relevant legislation. The Ministry and DPE are urged to assist the Board, and empower Board members, where necessary, to fulfill their role much more effectively. The Committee believes that the chairperson of the Boards, or if they are absolutely not available, another non-executive member of the Board should be present at the briefings to the Committee on the annual reports of the SOEs.
- The Committee recognises that the remuneration packages of senior managers and Board members raise many complex issues. Among other issues relating to the remuneration of senior managers, the Committee is aware of the following: • Market forces obviously influence the remuneration packages. • SOEs have to compete in particular with the high remuneration packages available in the private sector. • As the responsibilities of the SOEs increase, there will be increasing pressure for higher remuneration packages for senior managers. The Committee welcomes the government’s decision to develop a framework for the remuneration of senior managers and Board members in the SOEs and looks forward to its release.
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The Committee is very concerned that the Boards and senior managers are not being made to take full responsibility for decisions they made that have had extremely negative consequences for the SOEs. While recognizing the complexities, the Committee feels very strongly that the Minister and DPE should take appropriate action in terms of the PMFA and other relevant legislation. As raised in section B 11 above, the Committee would like DPE to discuss its new risk management framework with the Committee. We also want the SOEs to address the Committee on their risk management frameworks.
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As the Committee held a briefing on “The contribution of SOEs to Women’s Empowerment” in August, this matter was not pursued in detail with the SOEs during these briefings. But as agreed in the report we adopted on this, there will be a follow-up briefing in the first half of next year.
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The Committee did not sufficiently explore the challenges posed by fraud and corruption in the SOEs – and will raise this matter more fully in future meetings with the SOEs.
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Overall, the Committee is very encouraged by its exchanges with the SOEs, and we are motivated to fulfill our oversight role in a helpful and effective manner. We do not believe that our oversight role consists in just monitoring the performance of the SOEs. As is appropriate for a portfolio committee we should also, where possible, through our parliamentary, constituency and party political work, also contribute to the implementation of the programmes and the achievements of objectives of the SOEs. Obviously, we respect the operational autonomy of the SOEs. We will not seek either to micro-manage the SOEs or reduce our oversight role to mere verbal exchanges with the SOEs; we will try to strike a sensible path in between, that is consistent with parliament’s definition of the oversight role of a portfolio committee – and we will shape this path through consultation with all the relevant stakeholders, including the Ministry, DPE and the SOEs.
G.The Way Forward
1. This report, together with our programme adopted in August, “Towards
Developing a Longer-Term Programme: Setting the Foundations,” will
be important in shaping our programme for 2005 and beyond.
2. In February next year we should have a workshop with the Ministry
and DPE to establish what their programme for 2005 is. This
workshop will assist us in clarifying our programme for 2005. At
the workshop we should also seek a response from DPE to this
report. It would be useful to have such a workshop with the
Ministry and DPE in February each year so that we are clearer
about our respective programmes.
2. If we are to play our oversight role effectively, it is important
that we are empowered. As part of this, we should have an education
and training programme. Flowing from our consideration of the
annual reports of DPE and the SOEs, the following are among the
workshops we should try to organise in 2005:
• Evaluating the budgets and financial statements of government
departments and SOEs.
• Towards greater understanding of the PFMA, the Companies Act,
other relevant legislation and the King II Report as they apply
to SOEs.
• Shareholder management models and corporate governance.
• The lessons of restructuring of SOEs in Africa and other
developing countries.
• Different forms of private sector participation in SOEs.
• Towards greater clarity on the oversight role of the Portfolio
Committee in respect of SOEs.
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The Committee has to finalise the appointment of a suitable full-tim researcher for the Committee as soon as possible.
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The Committee needs to take further its study tour of SOE sites next year.
H. Appreciation for Co-operation
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The Committee expresses its appreciation to the Director General of the DPE, the Board Chairpersons and CEOs of the SOEs, and their teams for their co-operation on the briefings on the annual reports.
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The Committee also thanks Mr Ekhsaan Jawoodeen, Mr Nickie van Zyl and Mr Victor Ngaleka from Parliament’s Research Unit (Information Services Section) for their initial research reports on which this report drew.