National Assembly - 23 August 2005

TUESDAY, 23 AUGUST 2005 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                ____

The House met at 14:06.

The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                   WELCOMING OF SWAZILAND SPEAKER

The SPEAKER: Hon members, before we start I would like to welcome the hon the Speaker of Swaziland, Speaker Sgayoyo Magongo, and his delegation. [Applause.]

                             NEW MEMBER

                           (Announcement)

The Speaker announced that the vacancy caused by the resignation from the National Assembly of Mr R K Henderson has been filled by the nomination of Ms S J Loe with effect from 17 August 2005. OATH Ms S J Loe, accompanied by Mr D K Maluleke and Ms S V Kalyan made and subscribed the oath, and took her seat. [Applause.]

                    LEADER OF GOVERNMENT BUSINESS


                           (Announcement)

The SPEAKER: Order! Hon members, before we proceed with today’s business I wish to make the following announcements.

The President has informed me that he has appointed the Deputy President as Leader of Government Business in the National Assembly with effect from 28 June 2005 thereby replacing the hon Mr Charles Nqakula who was appointed on 15 June 2005. [Applause.]

APPOINTMENT OF PARLIAMENTARY COUNSELLOR TO THE PRESIDENT AND PARLIAMENTARY COUNSELLOR TO THE DEPUTY PRESIDENT

                           (Announcement)

The SPEAKER: In terms of Rule 319 I have, with effect from 18 August, designated Mr J H Jeffrey, formerly counsellor to the Deputy President, as Parliamentary Counsellor to the President and Ms S D Motubatse-Hounkpatin as Parliamentary Counsellor to the Deputy President. I wish to congratulate the hon members. [Applause.] I do not know if the hon members in the House know these two hon members and I would like them to rise. I request the hon members to rise.

                             NEW MEMBER


                           (Announcement)

The SPEAKER: Mr H B Cupido has been nominated on 1 August 2005 to fill the vacancy caused by the resignation of Mr K D S Durr. Mr Cupido has made the solemn affirmation in my office.

Hon Cupido, hon members would like to see you. Welcome.

                          NOTICE OF MOTION

The CHIEF WHIP OF THE OPPOSITION: Madam Speaker, I hereby give notice that I intend moving the following motion:

That the House -

    (1) notes that President Robert Mugabe has refused to accept a loan
    of $5 billion from the South African government; and

(2) therefore -

      a) expresses its gratitude and delight;


      b) (b) urges the government to abide by President Mugabe’s
         decision and not to insist that he should take our money;
         and


      c) debates the matter urgently.

[Applause.]

                   CONDOLENCES TO THE TINTO FAMILY


                         (Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Thank you, Madam Speaker.

Ndiphakamisa ngaphandle kokunika isaziso:

Ukuba le Ndlu –

(1) iqaphele ngosizi novelwano ukushiywa kwethu nguBawo uFihla Christmas Tinto, abaninzi bethu ebebemazi njengo “Com T”;

(2) ikhumbule ukuba uBawo uTinto walulwa ngokuzinikezela nangokuzincama ucalucalulo nengcinezelo kweli lizwe

(3) ikhumbule nokuba uBawo uTinto namanye amagqala omZabalazo basebenza kakhulu ukumisela umbutho weUnited Democratic Front ngowe-1983, emva komsebenzi omkhulu ababewenzela umbutho wesizwe i- ANC noMkhonto weSizwe, kwanokuba bathabatha inxaxheba emzabalazweni wokukhulula eli lizwe lakowethu;

(4) ikhumbule ukuba ngowe-1994, uBawo uTinto wayelilungu lale Palamente, ephaya kwiNdlu yeeNgwevu, waza ngowe-1997 wabalilungu eNdlu yoWiso-mthetho yePhondo yase eNtshona Koloni;

(5) ikholelwe ekubeni ubomi beqhawe nompondozihlanjiwe wenkokeli enjengale, bubonisa ngokumhlophe ukuzinikezela kwamalungu ombutho wesizwe i-ANC ekudaleni intlalontle kwilizwe liphela; yaye

(6) idlulise uvelwano olunzulu kusapho lwakhe nakwinkosikazi yakhe, ilungu elibekekileyo umama uBulelwa Tinto, abantwana, izalamane, nalo lonke usapho lwakwaNyawuza, ingabalibali oogxa bakhe awayesebenza nabo kwimibutho yabasebenzi nakumbutho wesizwe i-ANC, ithi: “Phumla ngoxolo, Nyawuza, Ngqungqushe, Matshob’endlovu.” Hamba kakuhle, Mkhonto! (Translation of Xhosa draft resolution follows.)

[I move without notice:

That the House –

(1) notes with sadness the passing on of Mr Fihla Christmas Tinto, known by many as “Com T”;

(2) recalls that Mr Tinto fought tirelessly and wholeheartedly against apartheid and oppression in this country;

(3) remembers that Mr Tinto and other veterans worked very hard to establish the United Democratic Front in 1983, after working hard for the ANC and the Spear of the Nation, and the fact that they played a role in the fighting for our country;

(4) also remembers that Mr Tinto was a member of the NCOP in 1994, and subsequently 1997 became a member of the Western Cape Provincial Legislature in 1997;

(5) believes that the life of a hero and a well-versed leader clearly shows the commitment of the members of the ANC in creating a better life for all in the whole country; and

(6) conveys its heartfelt condolences to his family, his wife, hon member Mrs Bulelwa Tinto, his children, relatives and Nyawuza family at large and, not forgetting his colleagues in workers’ unions and the ANC, we say: “Rest in peace, Nyawuza, Ngqungqushe, Matshob’endlovu”. Farewell, Spear of the Nation!]

The SPEAKER: I believe that by arrangement by the Whips those hon members who would like to have an opportunity to say something for a minute. Hon Gibson!

The CHIEF WHIP OF THE OPPOSITION: Mr Madam Speaker, on behalf of the DA I wish to extend very sincere condolences to the family, the loved ones, the friends and the political party of the late Mr Christmas Tinto.

His is a famous name. It is a catchy name; one that is easy to remember, but also a famous name in politics in South Africa because of what he did in helping to move our country from apartheid oppression to democracy and the contribution which he made will not easily be forgotten. We honour his memory. [Applause.]

Mnu V B NDLOVU: Somlomo neNdlu ehloniphekile, egameni leqembu leNkatha yeNkululeko sidlulisela ukukhala kwethu okokuqala emndenini wakwamfowethu uChristmas Tinto, eqenjini likaKhongolose, emndenini wonke, kunkosikazi uBulelwa nakuzo zonke izihlobo nabangane.

Kuyazeka ukuthi umfowethu uTinto abanye bebethi ubenguthisha kothisha, enokubekezela, enomoya ophansi amukela bonke abantu futhi enesineke. Abamazi kahle bebethi ukuhola kwakhe bekungukuhola okuhlakaniphile nokwamukelekayo kubo bonke abangamalungu angaphansi kwakhe namkhethileyo.

Thina beNkatha yeNkululeko sikhalisana nani nina bakaKhongolose ngokudlulelwa yiqhawe nomholi wenu. Sengathi iNkosi ingamsiza angene ezulwini. Ngiyabonga. (Translation of Zulu speech follows.)

[Mr V B NDLOVU: Madam Speaker and hon members, on behalf of the Inkatha Freedom Party we would like to extend our condolences, firstly to the immediate family of our brother Christmas Tinto, to the African National Congress, the whole family, his wife Bulelwa and all friends and relatives.

It is well known that others used to call our brother Tinto a teacher amongst the teachers. He had a passion for people, was humble, receptive of all people and considerate. Those who knew him well used to say that his leadership was a wise leadership, accepted by all who were under his leadership and who had elected him.

We, the Inkatha Freedom Party, sympathise with you, the African National Congress, for losing your hero and a leader. May God help him reach his haven. Thank you.]

Mr A HARDING: Madam Speaker, it is with great sadness and regret that the Independent Democrats received the news of the passing away of Mr Christmas Tinto, a well-known ANC leader and anti-apartheid activist.

His invaluable contribution will remain with us always. His role in recruiting young people to join the struggle is well known and he was like a father to many of the young lions. He was humble and well liked by all the cadres because of his pleasant disposition. He will be remembered as a man of great wisdom and a natural leader. The Independent Democrats wish to extend their condolences to his wife, Bulelwa, his children, his grandchildren his great-grandchildren and the ANC. I thank you.

Mr L W GREYLING: Mevrou die Speaker, dit is met leedwese dat kennis geneem word van die heengaan van Christmas Tinto op 14 Augustus. [Madam Speaker, the death of Christmas Tinto on 14 August is noted with regret.]

He was born on Christmas Day in 1925 near Transkei and joined the ANC in

  1. Better known on the Cape Flats as Comrade T, Tinto played a key role in the defiance campaigns in the Western Cape during the early 1950s.

In recognition of his fearless anti-apartheid leadership and for his contribution to the democratic government the Order of Luthuli was conferred on him by President Mbeki earlier this year. Today we bid farewell to a hero whose commitment, discipline and passion were an inspiration to all his comrades. I wish to express our deepest condolences to his family and his loved ones. I thank you. [Applause.] Mr L M GREEN: Madam Speaker, the ACDP conveys its condolences to the family, friends and colleagues of Mr Christmas Tinto. We pay tribute to him for his struggle against apartheid and for nonracialism.

The late Christmas Tinto was a brave and almost fearless man. He is remembered for maintaining a positive attitude in the face of much adversity. Not even lengthy periods of incarceration could deter him from his cause. Mr Tinto was widely praised when he was awarded the Order of Luthuli for the role he played in the transition to democracy.

The ACDP acknowledges the significant contribution made by Mr Tinto and wishes his family strength and comfort during this time of bereavement. Our prayers are with the family in their time of bereavement. I thank you.

Mr G T MADIKIZA: Madam Speaker and hon members, the UDM joins the House in paying tribute to the late Mr Fihla Christmas Tinto. We extend our heartfelt condolences to his family and friends during this time of bereavement. He will be remembered particularly for his active role in the establishment of the UDF.

By all accounts, he was not only a leader who walked at the front but also a unifier. Even in his personal life his family has attested to the fact that he possessed a unique humaneness that always sought to bring people together no matter how far removed they may have been physically or otherwise.

It is always sad to bid farewell to members of the liberation struggle who went on to become leading role-players in the Houses of Parliament. As with those who have gone before him, we can at least find consolation in the fact that Mr Tinto lived a full life and left a lasting legacy in pursuit of democracy and freedom.

Mr P J NEFOLOVHODWE: Azapo learned with shock and sadness of the untimely death of Comrade Christmas Tinto. Azapo knew him when many Azapo members were in gaol on Robben Island with him and he was indeed an inspiration in the fight against apartheid. We wish to join the ANC and all comrades within the alliance in celebrating the life of a true patriot, comrade in arms and indeed a dedicated fighter who spent most of his adult life in the struggle for freedom. Azapo expresses its condolences to the Tinto family and relatives. May his soul rest in peace. I thank you.

Ms S RAJBALLY: Madam Speaker, it is sad when one struggled for one’s country and achieved freedom and then one is not here to enjoy it. The MF associates itself with the House and expresses its heartfelt condolence to Mr Fihla Christmas Tinto’s family and says: Hamba kahle, we are going to miss you. May you rest in peace. Thank you very much.

Dr C P MULDER: Geagte Mevrou die Speaker, die VF Plus wil hom graag vereenselwig met die mosie, gestel deur die agb Hoofsweep, waarin hy hulde betuig het teenoor Mr Tinto wat afgesterf het. Ons vereenselwig ons daarmee, ook met ander uitsprake gemaak deur ander lede van die Raad, en wil ook graag ons simpatie en meelewing oordra aan sy familie en sy ander naasbestaandes. Baie dankie. [Applous.] (Translation of Afrikaans speech follows.)

[Dr C P MULDER: Madam Speaker, the FF Plus would like to associate itself with the motion moved by the hon Chief Whip, in which he pays tribute to the late Mr Tinto. We associate ourselves with this statement and endorse the remarks made by other members of the House. We would also like to convey our sympathy and condolences to his family and next of kin. Thank you. [Applause.]]

Mr N T GODI: Madam Speaker, the PAC wants to join the House and the other speakers in expressing our deepest condolences to the Tinto family and our solidarity with the motion on the occasion of his passing away.

As we mourn his passing away and celebrate his life we remember that Comrade Tinto belonged to a generation whose contribution, whose fearlessness and whose optimism during the dark years of apartheid propelled and gave hope that democracy was going to prevail at the end of the day.

Comrade Tinto, unlike some of his comrades, lived to see the dawn of liberation and was able to make a contribution in the transformation of our country and we want to believe that as we continue with the process of democratising and transforming our country his legacy will continue to inspire and guide us all. [Applause.]

The SPEAKER: I think it is obvious that there are no objections to the motion and I would take this opportunity to add the heartfelt condolences of both the Deputy Speaker and myself and we will accordingly convey the condolences of the House to the Tinto family.

Debate concluded. Motion agreed to.

CONGRATULATIONS TO SPRINGBOK RUGBY TEAM ON BEATING AUSTRALIA AND BEST
            WISHES FOR UPCOMING MATCH AGAINST ALL BLACKS


                         (Draft Resolution)

Mr D K MALULEKE: Madam Speaker, I hereby move without notice:

That the House -

1) congratulates the Springbok rugby team on their victory against
   Australia in Perth in the Tri-nations Competition on Saturday;

2) notes that this victory is the first away win against a major rugby
   nation in seven years;

3) commends the team for the great maturity and commitment it has shown
   on the field; and

4) wishes the team and coaching staff well and every success for the
   crucial clash against the All Blacks in Dunedin this coming Saturday.

Agreed to.

                  DEATH OF VICE PRESIDENT OF SUDAN


                         (Draft Resolution)

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move without notice:

That the House -

 1) notes the great tragedy that befell the people of Sudan when, on 30
    July 2005, a Ugandan presidential helicopter carrying Dr John
    Garang de Mabior, Vice President of Sudan, crashed, killing him and
    others;

 2) recalls that Dr Garang de Mabior led the Sudan People’s Liberation
    Movement and Army for more than 20 years and that in January this
    year the SPLM and the Government of Sudan signed a comprehensive
    peace agreement;

 3) further recalls that on 9 July 2005, Dr Garang de Mabior was sworn
    in as the first Vice President of a peaceful Sudan and that Dr
    Garang was committed to the unification of Sudan and peace among
    its people;

 4) expresses its commitment to helping the people of Sudan in their
    continuing effort to realise peace, development and prosperity in
    their country; and

 5) conveys its heartfelt condolences to the Garang family, the SPLM,
    the Sudanese government and the Sudanese people at this tragic and
    untimely loss.

Agreed to.

          CELEBRATION OF 130-YEAR ANNIVERSARY OF AFRIKAANS


                        (Member’s Statement)

Die HOOFSWEEP VAN DIE MEERDERHEIDSPARTY (ANC): Mevrou die Speaker, die ANC wil graag sy gelukwense oordra aan die Afrikaanse taalgemeenskap in ons land met die 130-jarige viering van Afrikaans as taal. Die ontwikkeling van Afrikaans die afgelope 130 jaar tot ’n volwaardige wetenskaplike taal behoort as inspirasie te dien vir die ontwikkeling in Suid-Afrika van ander inheemse tale. [Tussenwerpsels.]

Inderdaad is Afrikaans een van slegs vier tale wat in die 20ste eeu tot ’n wetenskaps-, literêre en handelstaal kon ontwikkel. Die ANC is ook dankbaar dat Afrikaans die afgelope dekade die stigma van onderdrukkerstaal kon afwerp en in die volksmond kon ontwikkel tot algemene spreektaal van ’n snel groeiende Afrikaanse taalgemeenskap. [Tussenwerpsels.] Die ANC verbind hom opnuut tot pogings om Afrikaans, net soos ander inheemse tale, te beskerm en te bevorder. Hartlik dankie. [Applous.] (Translation of Afrikaans member’s statement follows.)

[The CHIEF WHIP OF THE MAJORITY PARTY (ANC): Madam Speaker, the ANC would like to convey their congratulations to the Afrikaans language community in our country on the 130-year celebration of Afrikaans as a language. The development of Afrikaans over the past 130 years into a full-fledged scientific language should serve as an inspiration for the development of other indigenous languages in South Africa. [Interjections.]

In fact, Afrikaans is one of only four languages that could develop into a scientific, literary and commercial language in the 20th century. The ANC is also grateful that Afrikaans could, in the past decade, shed the stigma of being the language of the oppressor and in popular usage could develop into the colloquial language of a rapidly expanding Afrikaans language community. [Interjections.] The ANC recommits itself to efforts to protect and promote Afrikaans, as is the case with other indigenous languages. Thank you very much. [Applause.]]

                 THE SO-CALLED ZUMA CAMP IN THE ANC


                        (Member’s Statement)

Mrs S M CAMERER (DA): Madam Speaker, the so-called Zuma camp in the ANC, which includes Cosatu, the Young Communists and the feckless ANC Youth League, persist in demonstrating, at best, a profound ignorance of the law and our Constitution, and, at worst, a cynical disrespect for the rule of law and our legal institutions.

Their rabid, ill-considered statements in support of the man they regard as their leader, ex-Deputy President Jacob Zuma, attacking the Scorpions, the National Prosecuting Authority and the judiciary, are doing damage to the ANC’s image as an organisation committed to the rule of law.

The Zuma camp seems to believe that there is one law for poor, ordinary folk and another for the politically powerful. In other words, they see themselves as above the law. If they reflect the view of their hero – and he has not contradicted them publicly – then God help South Africa if he should ever become the President. [Interjections.] It would mean the end of constitutionalism and the end of good governance and the rule of law, and would ensure that our country became part of the African basket-case scenario. The ANC should not pussyfoot around these constitutional terrorists.

Contrary to what the Zuma camp claim, in terms of the National Prosecuting Authority Act the Scorpions had every right to enter Mr Zuma’s house and offices and those of his associates and advisers as they were in possession of a valid search warrant.

There are specific provisions to protect privileged information, but any attorney-client privilege is not an unlimited right, and attorneys’ offices are not sacrosanct. It’s really only Mr Zuma’s statements to his attorneys and perhaps even a confession that might be privileged. Zuma’s attorneys were entitled to withhold documents they alleged contained privileged information, but they failed to do so. The National Prosecuting Authority has the final discretion to investigate and prosecute cases. Thank you. [Applause.]

                   ISRAELI PULLOUT FROM GAZA STRIP


                        (Member’s Statement)

Mr M B SKOSANA (IFP): Madam Speaker, this House should compliment the Israelis and the Palestinian leaders for the courageous steps they have taken in what is now referred to as “the Gaza pullout”, but which is, in fact, the implementation of the subprovision of the Oslo Accord, namely the Cairo Agreement of 4 May 1994. The civil societies should, equally, be applauded for their co-operation in this.

This has been a long, hard and torturous road since the formation of the state of Israel in 1948 throughout the demands of the Palestinians for an independent homeland based on the two-state solution to accommodate both the Arabs and the Jews. It has been a long way from the intifada in 1982, the surging of the Palestinian uprising that could not be subdued by military means alone, but which made political initiatives and negotiations imperative for peace and stability.

It has been a long way from the recognition of the state of Israel by the Palestinian National Council in November 1988 to Yitzhak Shamir’s 1989 twin- track peace plan, the subsequent Madrid Formula and the Gaza and Jericho Agreement, outlining the perimeters of Palestinian interim self-rule.

Oslo II, signed in Washington, the USA, on 28 September 1995, was in fact a consolidation of past agreements and the foundation of what is popularly known as the roadmap. It is now self-evident that the axiomatic principle of land for peace is central to a destiny intertwined, that is peaceful coexistence between the Israelis and the Palestinians.

Therefore, the European Union, the United States, Russia and the Republic of South Africa ought to be commended for their positive role in this process. I thank you. [Applause.]

                  A CALL TO UPHOLD THE RULE OF LAW

                        (Member’s Statement)

Mr A MLANGENI (ANC): Madam Speaker, the manner in which the Scorpions raided certain residencies in relation to the investigation on the ANC Deputy President refers. The sensational nature of the investigation processes criminalises the ANC Deputy President, even before he gets a chance to appear before a court of law.

We further condemn the statement made by Cosatu, calling on the President to disregard the Constitution and interfere with due legal processes. The call by Cosatu that the President should reinstate Comrade Jacob Zuma fundamentally undermines the President’s prerogative to appoint his Cabinet.

We call on all South Africans to uphold the rule of law as enshrined in our Constitution. [Applause.]

                  COSATU’S LACK OF COHERENT POLICY


                        (Member’s Statement)

Mr M STEPHENS (UDM): Madam Speaker, the UDM noted with interest the launch yesterday of the so-called new UDF by Cosatu and assorted others. Cosatu leaders publicly avowed their support for the ruling party and their commitment to the ruling alliance, yet they are seeking a vehicle to oppose major aspects of the ruling party’s policies. Are they in government or are they in the opposition? Straddling the fence is such an undignified position.

Cosatu obviously has a major identity crisis on hand. It represents an important section of our society, but are they a political party or a trade union? Do they represent any consistent political philosophy? Increasingly the organisation has a schizophrenic approach. They lack a coherent policy stance. Do they support the former Deputy President’s right to a trial, or do they oppose it? Are they campaigning for the ANC in the local government elections or are they fighting Gear? Are they part of the ruling alliance or in opposition? They appear to want to do both.

Up to now the new UDF has not added a single new idea to the national debate on poverty and unemployment. Admittedly, the overall noise volume is going up but the policy content is not increasing. The UDM and other social democrats in the opposition are already pursuing the very goals now adopted by the new UDF. If Cosatu and their partners are really serious about attaining those goals, they should have the honesty and the courage to give up the comfortable spoils of government and join us in the opposition. I thank you. [Applause.]

                      DA SUPPORT FOR DEVELOPER


                        (Member’s Statement)

Me F BATYI (ID): Mevrou die Speaker, op 18 Julie 2005 is daar ’n gemeenskapsvergadering te Westlake, Constantia, gehou. Tydens hierdie vergadering wou ’n ontwikkelaar, John Vivieros, die gemeenskap oorreed om hul huise vir ’n belaglike prys van R40 000 aan hom te verkoop. Ek is in besit van beëdigde verklarings van die gemeenskap wat weier om hul huise aan die ontwikkelaar te verkoop. Dié stukkie waardevolle grond in Constantia en die huise wat ons mense besit, moet beskerm word teen ongevoelige uitbuiters onder die dekmantel van besorgdheid.

Hierdie insident bevraagteken die integriteit van die DA wat hon daarop roem dat hulle besorg is oor armoedeverligting en die behuisingsnood van ons mense. [Tussenwerpsels.] Die DA-raadslid Leon van Rensburg was by die vergadering en het die ontwikkelaar gehelp om mense te oorreed om hul huise te verkoop. [Tussenwerpsels.]

Dit is interessant dat die ontwikkelaar terdeë bewus is dat die uitbreiding grens aan die nuwe Amerikaanse ambassade. Die waarde van die grond alleen beloop miljoene rande. Wat is dit anders as “daylight robbery”? Waarom het hy wat ’n prokureur en raadslid is nie die mense ingelig oor die voor- en nadele en hul verantwoordelikhede om nie hul huise te verkoop nie?

Hulle wil die regerende ANC-party laat vuil lyk, maar nou moet dieselfde mense weer gaan plak op ongedienste grond in Ottery. Mense maak oop jul oë! Die DA het nie verander nie. ’n Jakkals verander van hare maar nie van snare nie! Dankie. [Applous.] (Translation of Afrikaans member’s statement follows.)

[Ms F BTYI (ID): Madam Speaker, on 18 July 2005 a community meeting was held at Westlake, Constantia. During this meeting a developer, John Vivieros, sought to convince the community to sell their houses to him for the ridiculous price of R40 000. I am in possession of sworn affidavits from members of the community who have refused to sell their houses to the developer. This valuable piece of land in Constantia and the houses that our people own should be protected from insensitive exploiters who pretend to be concerned.

This incident places a questionmark over the integrity of the DA, who boast that they are concerned about relieving poverty and the lack of housing among our people. [Interjections.] DA councillor Leon van Rensburg was at the meeting and helped the developer to convince people to sell their houses. [Interjections.]

It is interesting that the developer was well aware that the extension borders on the new American embassy. The land alone is worth millions of rands. What else is this but daylight robbery? Why did he, as an attorney and councillor, not inform the people about the pros and cons and their responsibility not to sell their houses?

They want to make the ruling ANC party look bad, but now these same people have to go and squat on unserviced land in Ottery. People, open your eyes! The DA has not changed. A leopard does not change its spots! Thank you. [Applause.]]

                      MUGABE’S RULE SHOULD END





                        (Member’s Statement)

Dr P W A MULDER (VF PLUS): Mevrou die Speaker, hier word vandag sulke mooi Afrikaans gepraat en nadat ek na die Hoofsweep geluister het, is dit vir my duidelik dat Afrikaans baie belangrik is. Eers het die DA daarna gevry en nou die ANC. Ons het waardering vir die mooi Afrikaans wat die Hoofsweep vandag gepraat het.

Die VF Plus stem saam met president Mbeki, wat in verlede week se ANC Today skryf dat die 14 SADC-lande gemeenskaplike probleme het, waarvan een Zimbabwe is. Hierdie lande sal moet saamwerk om oplossings vir hierdie probleme te vind. As Zimbabwe dan in duie stort, raak dit al hierdie lande en nie net Suid-Afrika nie. Waarom word dit dan van Suid-Afrika alleen verwag om Zimbabwe te red met ’n finansiële lening van etlike miljarde rande?

President Mugabe is nou 25 jaar lank president van Zimbabwe en hy is ouer as 80. As enige lening van Suid-Afrika die posisie van president Mugabe in Zimbabwe gaan versterk of sy regering se posisie gaan versterk, sal die VF Plus dit ten sterkste teenstaan. Dit is ongelukkig tyd vir pres Mugabe om te gaan. Suid-Afrika kan Zimbabwe help opbou nadat mnr Mugabe gegaan het.

Die VF Plus is wel ten gunste daarvan dat maatreëls getref word om die gewone mense van Zimbabwe wat tans baie swaar kry en onderdruk word, nou te help. Hierdie hulp moet verkieslik geskied deur die kerke en welsynsorganisasies ten einde te voorkom dat president Mugabe dit kan misbruik.

Waar die Internasionale Monetêre Fonds, die Verenigde Nasies en die Europese Unie tans druk op president Mugabe se regering plaas, moet Suid- Afrika nie die swak skakel word deur die Mugabe-regering nou suurstof te gee en sodoende die lyding van die mense in Zimbabwe langer uit te rek nie. Ek dank u. (Translation of Afrikaans member’s statement follows.)

[De P W A MULDER (FF PLUS): Hon Madam Speaker, such beautiful Afrikaans is being spoken here today and having listened to the Chief Whip it is clear to me that Afrikaans is very important. First the DA was enamoured of it and now the ANC. We appreciate the beautiful Afrikaans spoken by the Chief Whip today.

The FF Plus agrees with President Mbeki, who wrote in last week’s ANC Today that the 14 SADC countries have common problems, one of which is Zimbabwe. These countries will have to co-operate to find solutions to these problems. If Zimbabwe collapses totally, this will affect all these countries and not only South Africa. Why then is South Africa alone expected to rescue Zimbabwe with a financial loan of several billions of rands?

President Mugabe has now been the president of Zimbabwe for 25 years and he is over 80 years old. If any loan from South Africa is going to strengthen the position of President Mugabe in Zimbabwe or strengthen the position of his government, the FF Plus will strongly oppose it. It is unfortunately time for President Mugabe to go. South Africa can help build up Zimbabwe after Mr Mugabe has left.

The FF Plus is, however, in favour of measures being taken now to help the ordinary people of Zimbabwe, who at present are suffering greatly and are being oppressed. This assistance must preferably be given through the churches and welfare organisations in order to prevent President Mugabe from abusing it.

Whereas the International Monetary Fund, the United Nations and the European Union are at present putting pressure on President Mugabe’s government, South Africa must not become the weak link by now resuscitating the Mugabe government and in this way further prolonging the suffering of the people in Zimbabwe. I thank you.]

                          HOUSING DELIVERY


                        (Member’s Statement) Ms M M RAMAKABA-LESIEA (ANC): Thank you, Madam Speaker, fifty years ago the Congress of the People declared in the Freedom Charter that there shall be houses, security and comfort. The apartheid regime bequeathed to the democratic South Africa informal housing segregated along racial lines. Special distortions reinforce apartheid cities and confine black people to areas with no economic opportunities.

The democratic government is turning the tide on housing delivery. The new settlements plan seeks to promote the achievement of a nonracial, integrated society through the development of sustainable human settlements and quality housing. Joe Slovo is but one of the informal settlements where by December 2005, the ANC-led government will deliver 22 000 units of housing stock, and 8 000 units will be completed.

The transformation of informal settlements into integrated, sustainable housing contributes to job creation. Local economic development, black economic empowerment and special integration and the implementation of a people’s contract to create work and fight poverty will bring a better life for all. I thank you.

                  MONEY CHANNELED TO ANC BY IMVUME


                        (Member’s Statement)

Ms H ZILLE (DA): Thank you, Speaker. At the heart of the Oilgate scandal lies the undisputed fact that R11 million of taxpayers’ money was channelled into the ANC’s 2004 election campaign from the state company PetroSA, by Imvume Management.

The CHIEF WHIP OF THE MAJORITY PARTY: What is wrong with that?

Ms H ZILLE: What’s wrong with that? [Interjections.] I’ll tell you what is wrong with that. A sum of R11 million cannot simply vanish without somebody being called to account. That is the problem. The ANC says: What is wrong with that? It is the utmost corruption that any government can perpetrate. [Interjections.] And yet, none of the parties involved have adequately explained what amounts to a gross abuse of state resources for the ANC’s political gain.

Whether it is placing loyal ANC cadres into key positions in independent institutions, such as the Public Protector who also doesn’t see anything wrong with it, or misusing public money for party-political purposes, the ANC continues to place its own interests above those of ordinary South Africans. In doing so, the ANC ignores the distinction between party and state – and I suppose you’re going to ask: What is wrong with that? It undermines the integrity of our Constitution’s Chapter 9-institutions.

Until the ANC repays that money and answers all outstanding questions satisfactorily, the DA will not let this matter rest. [Applause.]

The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Speaker, on a point of order: If I heard Ms Zille correctly, she accused the government of corruption. As far as I know, the government has not been found guilty of corruption. It is unparliamentary and I would ask that it be withdrawn unconditionally.

The SPEAKER: I think it is better for me to check the Hansard, hon member, and then I will come back to the issue.

           THE ROAD BETWEEN ZEERUST AND MAFIKENG-MMABATHO


                        (Member’s Statement)

Mr B E PULE (UCDP): Thank you, Madam Speaker. The UCDP would like to congratulate the North West provincial government on the improvement of the road between Zeerust and Mafikeng-Mmabatho. The concern, however, is the method used to construct it, because it is a recipe for more accidents, as has happened already.

The road is approximately 80 kilometres long and two contractors are engaged for phase 1 and phase 2 respectively. There is always a traffic jam because of the two stops per phase, with vehicles having one pair of wheels on the old tarred road and the other pair on the gravel road that is never maintained, except for pouring water on corrugations. One drives for almost two hours to cover such a short distance.

It would have been more cost-effective to make detours than to try and save money at the expense of losing lives. An intervention by the Department of Transport, even at this late stage, will still save some lives. Driving on that road, especially at night, is real mayhem.

                          ISRDS IN LIMPOPO


                        (Member’s Statement)

Mrs T L P NWAMITWA-SHILUBANA (ANC): Thank you, Madam Speaker. The ANC is happy to note that there is remarkable progress in the Integrated Sustainable Rural Development Strategy, launched in 1999. In 2000 President Mbeki visited the Sekukhune Area in Limpopo, this area was included in the ISRDS and he declared it a presidential nodal point.

The rural area of Sekukhune in Limpopo, like many other rural areas of our country, was neglected by the past racist government. Since then, a total of R355 million was spent to supply water and a total of R12,8 million was spent on the supply of electricity. Klara Sekwathi who has lived in Mamone village outside Jane Furse for more than four decades says, “Sekukhune used to be a very poor area with only teachers and nurses able to find employment. Today Sekukhune has been put on an improved path for sustainable development.”

The ANC commends the initiatives taken by our government to extend the fight against poverty and unemployment to rural areas and other poverty- stricken communities. I thank you. [Applause.]

                DISMAL PERFORMANCE OF MUNICIPALITIES


                        (Member’s Statement) Mr W P DOMAN (DA): Madam Speaker, the ANC has dismally failed in its governance of municipalities. Communities all over the country have realised that they were misled by empty promises and violent protests have engulfed many municipalities. Evaluated on performance, I do not know of one ANC-governed municipality where the ANC deserves a second term. [Interjections.] On the other hand, the DA municipalities such as Nokeng, Satemane, George and Cape Agulhas are shining examples of how municipalities should be run.

The government itself admits that 136 out of 284 municipalities need to be rescued. A staggering amount of R32 billion is owed to municipalities in outstanding rates and taxes. This figure has doubled since 2000 as a result of the ANC’s lack of political will. Many ANC-appointed municipal managers do not have the necessary qualifications but are awarded salaries approaching the million rand mark.

Nog erger as die swak administrasie is die nepotisme en korrupsie wat feitlik in elke munisipaliteit aanwesig is. In Kaapstad het die ANC- burgemeester Mfeketo net nou die dag die beheer oorgeneem en haar broer is al reeds aangestel as die adjunkhoof van die munisipale polisie. [Tussenwerpsels.] Soos die ANC aangaan, sal familiegeskiedenis in die toekoms deur munisipale aanstellings nagevors kan word.

Wat korrupsie betref, is daar ondersoeke hangende in feitlik elke munisipaliteit wat deur die ANC beheer word. In Bloemfontein is die burgemeester van die Mangaung-munisipaliteit verlede maand saam met sy vrou en vier ander beamptes in hegtenis geneem en van diefstal, bedrog en korrupsie aangekla. Meer as R100 miljoen van die belastingbetaler se geld is daarby betrokke.

Daarom, geagte Speaker, vereenselwig ek my met wat mnr Tony Leon gister gesê het: Ons sal net slaag as ons die behoefte aan regstellende aksie opweeg teen die meer basiese en grondliggende behoefte aan bevoegdheid en doeltreffendheid in plaaslike regering. Ons moet mislukkings straf en prestasie beloon. Bowenal, ons moet die mense voorop stel, en dit is wat die DA doen. [Applous.] (Translation of Afrikaans paragraphs follows.)

[Nepotism and corruption, which are present in virtually every municipality, are even worse than the poor administration. In Cape Town ANC mayor Mfeketo took over just the other day and already her brother has been appointed as the deputy chief of the municipal police. [Interjections.] The way the ANC is carrying on, in future it will be possible to trace family lineage by way of municipal appointments.

With regard to corruption, there are investigations pending in virtually every municipality that is controlled by the ANC. Last month the mayor of Mangaung in Bloemfontein, his wife and four other officials were arrested and charged with theft, fraud and corruption. More than R100 million in taxpayers’ money is involved here.

Therefore, hon Speaker, I agree with what Mr Tony Leon said yesterday: We will only succeed if the need for affirmative action is weighed against the more basic and fundamental need for competency and efficiency in local government. We must punish failures and reward accomplishments. Above all, we must put the people first and this is what the DA is doing. [Applause.]]

               DISTRICT EDUCATION AND SERVICE DELIVERY

                        (Member’s Statement)

Mr A M MPONTSHANE (IFP): Madam Speaker, the IFP is concerned that the provision of education remains and continues to be the weakest at district level in spite of the department’s undertaking two years ago to turn our districts into sites of delivery.

In some districts, particularly in the Eastern Cape, officials have to contend with makeshift buildings. At this level, inspectors of schools do not have decision-making powers except for the powers of a messenger. Hence the system cannot deal effectively with the question of temporary teachers.

In some instances it takes more than three months to pay teachers, again because of disorganisation at this level. Again, we urge the Minister to take urgent steps to ensure that districts become accountable sites of delivery. I thank you.

                 MANAGEMENT OF ECONOMY BY GOVERNMENT

                        (Member’s Statement)

Mr S E ASIYA (ANC): Madam Speaker, the ANC welcomes the decision taken by hon President Mbeki to form a task team to investigate ways to accelerate economic growth, generate more jobs and reduce poverty and underdevelopment. The task team will be led by the hon Deputy President of the Republic of South Africa, Comrade Phumzile Mlambo-Ngcuka.

We applaud the progress made by the ANC government in managing the economy. These efforts have not gone unnoticed. Recently the Centre for Policy Studies reported in a special edition, and I quote:

South Africa’s macroeconomic success over the past decade has been considerable and unprecedented by global standards.

The Deputy Managing Director of the International Monetary Fund, Ms Anne O Krueger, said of our country, and I quote:

These achievements are remarkable; all the more so given that this economic progress has been made during a period of unprecedented political and social transformation.

The setting up of the task team should ensure that the nation goes beyond these remarkable achievements with the specific objective of including in the economic prosperity more South Africans, especially blacks, women, the youth and other marginalised sections of our nation.

We wish the hon Deputy President and her team success in its work to ensure a growing economy that benefits all South Africans. Thank you, Madam Speaker. [Applause.]

The SPEAKER: Before we move on to ministerial responses, I just want to point out to hon members that they should not exceed the time allocated for their statements. I have been as generous as I could be, but next time I won’t be so generous. Members have taken between 30 and 50 seconds beyond the time they are supposed to take. So please, hon members, when you plan your statements, do budget according to the time allocated and agreed.

The CHIEF WHIP OF THE MAJORITY PARTY: On a point of order, before that, Madam Speaker: When the Minister of Finance entered the House, I saw him kiss the Minister of Correctional Services. [Laughter.]

The SPEAKER: Is that a point of order or a point of observation?

The CHIEF WHIP OF THE MAJORITY PARTY: On enquiry, I was informed that it is the birthday of the Minister of Correctional Services. I would like you to rule whether it is parliamentary for Ministers to kiss each other in the House. [Laughter.] [Applause.]

The CHIEF WHIP OF THE OPPOSITION: Madam Speaker, may I address you on that point of order, because today also happens to be the birthday of the shadow minister of correctional services. [Laughter.] I haven’t kissed him yet, but I will now, if you’d like.

The SPEAKER: Maybe, from the Chair, I should take the opportunity to wish the hon members a happy birthday. [Applause.]

  HOUSING IN THE WESTERN CAPE AND THE INTEGRATED RURAL DEVELOPMENT
                              PROGRAMME

                        (Minister’s Response)

The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Madam Speaker and members, I would like to react to two statements that were made by members. The first one was on the housing issue here in the Western Cape, that indeed is a matter of concern for government. I think that all of us, as parliamentarians in the House, have to be concerned about it because, indeed, when we try to ensure that we improve the quality of life of the people, we need to do so with honesty.

As members of Parliament and as government, as well as South Africans, we are dealing with the legacy of our past that ensured that the majority of our people never had access to even basic services, including shelter. It can, therefore, not be correct that those among us who might have enough resources to buy other people out can actually have the privilege to do so at the expense of the poor. And I hope that the Portfolio Committee on Housing, together with the Minister of Housing, will be able to reflect on this matter so that we can find a way in which we can ensure that we protect the poor from those who have access to resources.

Members will recall that this issue also arose in relation to the issue of tenure security in rural areas, where the debate was whether we move immediately to full title and what the dangers inherent in this were. I think this example of the Western Cape indicates to us what the likely dangers are if we were to move immediately to a full title programme without taking into consideration the issue of protection of the vulnerable and the poor.

Secondly, I think that on the issue of the Integrated Rural Development Programme Strategy, it is true that when we identified this programme our intention was to ensure that we changed the character of South Africa, with a clear focus on those people who are underprivileged, and that as we did so as government, to ensure that there was a level of co-ordination amongst all spheres of government.

We have also indicated in this House some of the difficulties that have resulted in our not being able to move with speed with regard to some of these issues. Some of them relate to the capacity levels in municipalities. Other issues, of course, relate to resources, given the competing needs. But I can assure hon members that in all the rural and urban nodes there have been interventions. They might not be what we all wanted today, but I think they are a step in the right direction.

Through those interventions we have been able to learn how we can work as the different spheres of government in attacking the problem of poverty. I thank you. [Applause.]

   MANAGEMENT OF ECONOMY, RESPONSIBLE USE OF PUBLIC RESOURCES AND
                     COSATU’S LAUNCH OF NEW UDF


                        (Minister’s Response)

The MINISTER OF FINANCE: Madam Speaker, I’ll deal briefly with three issues. Firstly, responding to hon Asiya: it is correct that there is a large task force that the Deputy President is heading. The job has just become a lot easier because the GDP figures for the second quarter which were released this morning reflect that the economy grew by 4,8% in this second quarter. So the work has become a lot easier for all of us. [Applause.] It is clear that the hand of the Deputy President is helping the growth very quickly. [Applause.]

In response to the hon Mulder, I can give him the assurance that I have given publicly, that we will not be cavalier with public resources in South Africa. We can deal with this issue in different ways. On Zimbabwe or on everything that you have ever spoken about, hon Zille, we are not cavalier with the finances of this country, or of the taxpayers. Thank you very much.

I want to turn next to the hon Stephens. It’s not often that I find myself in agreement with what is said by members from across the House, but I want to agree with him. You see, I think that it is important to recognise that this initiative, which was launched last night, is trying to capture the spirit of the United Democratic Front in a very different time and space.

The United Democratic Front served its purpose and had amongst its guiding principles the fact that it would not ever replace the liberation movements of our people. So whatever individuals are trying to achieve in the name of the United Democratic Front has to be written off as populist and opportunist. [Applause.]

The history of the struggle is the history of collectives. I have not seen anything but one individual’s name associated with this. Unfortunately he missed out because he wasn’t there for the United Democratic Front. He has also never been a member of the ANC. If he were, he would know exactly what our policies are. He would know that a resolution was adopted by the ANC at the Mafikeng conference in 1997 that confirms that there is an interrelationship between the RDP and Gear, and he would not be so silly as to ask the ANC to campaign against its own existing policies.

I thought that we shouldn’t actually give this initiative too much attention because I am sure that it will float like a lead balloon. Thank you very much. [Applause.]

        DEVELOPMENT OF FRAMEWORK TO GUIDE EDUCATION DISTRICTS

                        (Minister’s Response)

The MINISTER OF EDUCATION: Madam Speaker, for once, mina noBaba uMpontshane siyavumelana [Mr Mpontshane and I agree]. I agree that indeed more needs to be done to strengthen the districts so that they can execute a professional mandate adequately.

With my colleague in the Eastern Cape, we are working very hard to ensure that this happens, but it must happen nationally. Therefore, out of the study on the functioning of districts, we have begun to develop a framework that will guide districts throughout the country and guide provinces in terms of resources and structures of the district offices so that they are able to execute a mandate that promotes the kind of quality educational support that you are referring to.

Bendifuna ukuthi nje ndiyavuya, ngoba siyavumelana namhlanje, kwaye ndiyathemba ukuba nangomso siza kuvumelana. Ndiyabulela. [I just wanted to say that I am happy, because we agree with each other today and I hope that we will agree tomorrow. I thank you.]

                RECOGNITION OF CONSTITUTIONAL RIGHTS


                        (Minister’s Response)

The MINISTER OF DEFENCE: Madam Speaker, the struggle against the old order was basically a struggle for constitutionalism. It took root from the fact that the Union Act of 1910 denied the majority of South Africans their constitutional rights, and subsequent actions of white rule perpetuated that.

Successive generations of the people of our country, black and white, who joined the ranks of the liberation movement understood that it was crucial that if the future was to benefit everybody a constitutional order should be introduced that recognised the rights of all.

I think that the 1994 achievement of our democracy crowned the efforts of all of us with the success that we have been hungering after. The rights enshrined in our Constitution are there for all. Everyone has, amongst other things, the right to freedom of speech. So we will grant this right and we must maintain it for all South Africans.

What, nevertheless, we would not allow is for that right of expression to be used to undermine the Constitution, to be abused in such a way as to make a banana arrangement of the current democracy and the Republic.

So the statement by hon Mlangeni that we carry a responsibility to defend the Constitution in our democracy, that has our full support and Cabinet will remain loyal to that goal. [Applause.]

                    PERFORMANCE OF MUNICIPALITIES


                        (Minister’s Response)

The DEPUTY MINISTER FOR PROVINCIAL AND LOCAL GOVERNMENT: Madam Speaker, in response to what the hon Doman has referred to … [Interjections.] It’s not important. What I would like to say is that it is very easy for him to start blaming the ANC local government, forgetting that they were, in fact, in charge in the City of Cape Town and they left that mess untouched. That is the reason the ANC government is struggling in this province. Don’t forget so easily. You were there before and you did nothing about it.

Now, what the ANC local government is doing at the moment is dealing with the legacy of the past. What we are trying to do is to empower these municipalities because the past gave us the bucket system, and we are trying to get rid of that. That is exactly what we are doing now.

He has failed to mention what the DA mayor in the West Coast has done in terms of corruption. That mayor paid with municipal credit cards for his wife’s overseas trip. That you must mention. [Interjections.]

When it comes to the local government elections we will all be in the field, but I am telling you that the ANC is going to show you. Perhaps you are heartbroken because you have failed to gain from the floor-crossing. You have won nobody and you are not going to win anybody. You will remain the small party that you are. Thank you. [Applause.]

CONSIDERATION OF REPORT OF AD HOC COMMITTEE ON APPOINTMENT OF DEPUTY
   PUBLIC PROTECTOR – NOMINATIONS FOR APPOINTMENT OF DEPUTY PUBLIC
                              PROTECTOR


There was no debate.


The Chief Whip of the Majority Party moved: That the report be adopted.


Motion agreed to.


Report accordingly adopted.

RATIFICATION OF DECISION TO ESTABLISH AD HOC JOINT COMMITTEE TO CONSIDER DRAFT AMENDMENT REGULATIONS TO PUBLIC FUNDING OF REPRESENTED POLITICAL PARTIES ACT, 1997

There was no debate.


Decision of the Speaker of the National Assembly and Chairperson of the
National Council of Provinces to establish an Ad Hoc Joint Committee to
consider draft amendment regulations to Public Funding of Represented
Political Parties Act, 1997 (Act 103 of 1997), ratified.


  RATIFICATION OF DECISION OF JOINT SUBCOMMITTEE OF JOINT PROGRAMME
           COMMITTEE TO FAST-TRACK CONSTITUTIONAL MATTERS
                           AMENDMENT BILL

On 4 August 2005, the Joint Subcommittee of the Joint Programme Committee decided, in accordance with Joint Rule 216(2), that the Constitutional Matters Amendment Bill (B 22-2005) should be fast-tracked, where necessary dispensing with any relevant House Rule or Joint Rule and shortening any period within which any step in the legislative process relating to the Bill has to be completed, including the submission of the translated version of the Bill as introduced before the debate in the National Assembly takes place because the process must be completed in order for the Bill to be enacted and for the Act to be published in the Government Gazette by 31 August 2005.

There was no debate.

Decision of the Joint Subcommittee of the Joint Programme Committee to fast- track the Constitutional Matters Amendment Bill ratified.

    CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON JUSTICE AND
   CONSTITUTIONAL DEVELOPMENT ON CONSTITUTIONAL MATTERS AMENDMENT
                                BILL




There was no debate.


The Chief Whip of the Majority Party moved: That the report be adopted.


Motion agreed to.


Report accordingly adopted.





                CONSTITUTIONAL MATTERS AMENDMENT BILL


                       (Second Reading debate)

The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Madam Speaker, hon Ministers, Deputy Ministers and hon members, comrades and friends, ladies and gentlemen, I want to start by apologising on behalf of Minister Mabandla who is abroad and could not be here today to address the House on this Bill. I also want to commence by thanking in advance all those parties who will be supporting the passing of this legislation.

The principle objects of the Bill before the House today are twofold, namely, to amend the Public Funding of Represented Political Parties Act of 1997, and to amend the Determination of Delegates (National Council of Provinces) Act of 1998.

The majority of the amendments to these two Acts are necessary as consequential amendments to address certain matters emanating from the floor-crossing legislation that was passed by this Parliament in 2002 and

  1. I therefore want to make it clear, upfront, that the Bill does not deal with the principle of floor-crossing, but merely seeks to regulate matters in other legislation consequential to such floor-crossing.

The Portfolio Committee on Justice and Constitutional Development, in 2003, in its report on the floor-crossing legislation recommended, amongst others, that the Department of Justice and Constitutional Development:

Review the laws pertaining to the funding of political parties, in particular parties represented in a legislature, and take such steps as may be necessary to ensure that those provisions are aligned with the changes effected in terms of the above legislation, and consider all legislation which may need to be amended in order to bring it into line with the new laws referred to in paragraph 1, and make recommendations regarding such changes as may need to be effected.

As a direct outcome of this injunction of the portfolio committee in 2003, the Constitutional Matters Amendment Bill before the House today seeks to amend, inter alia, the delegates Act so as to make provision for the redetermination of certain delegates of a provincial legislature to the NCOP, which has been reconstituted on account of changes in party membership and mergers or subdivisions of parties in that legislature, because of the floor-crossing.

As the amendments to the delegates Act do not affect this House or its members, I will today concentrate on the amendments to the funding Act. In terms of section 236 of the Constitution, ``national legislation must provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis’’. The funding Act that was enacted to give effect to that constitutional requirement, among other things, established the Represented Political Parties Fund, with a view to making provision for the funding of political parties participating in Parliament and provincial legislatures, and it regulates the allocation of moneys from the fund by the Independent Electoral Commission to political parties.

In terms of section 5(2)(a) of the funding Act, allocations from the fund must be made and paid to each of the political parties concerned in accordance with the prescribed formula, based in part on the principles of proportionality and equity. Consequently, if a political party’s representation in the National Assembly or a provincial legislature has been affected as a result of floor-crossing, this will of course affect the allocations from the fund.

In terms of the regulations made under section 10 of the funding Act, the IEC must, within two weeks of the beginning of a financial year of the fund, announce the total amount of funding available for allocation. Provision is further made that the allocations from the fund to be made and paid to each of the political parties concerned are calculated by allocating 90% of the total amount of funding proportionately, and 10% of the amount equitably.

The regulations also provide that all allocations each year are paid in four equal instalments. These instalments are payable in April, July, October and January of each year. The window for floor-crossing, which is from 1 to 15 September, falls between the date on which the second instalment has been paid and the date on which the third instalment is payable.

Consequently, if a political party’s representation in the National Assembly or a provincial legislature has been affected as a result of floor- crossing, this will also affect the third and fourth instalments to which it is entitled. A need has therefore arisen to regulate the reallocation of moneys from the fund after the window period for floor-crossing for that particular year. In order to address that need, it is necessary to amend the funding Act, and the regulations made under that Act.

This Bill therefore seeks to amend the funding Act so as to regulate the repayment of unspent balances of all allocated moneys in terms of the funding Act, when parties cease to qualify for such allocations as a result of changes in party membership, mergers or subdivisions during the window period of floor-crossing, and provide for the reallocation of moneys in the year in which floor-crossing takes place where a member of a legislature becomes a member of another party whilst retaining membership of that legislature, or where an existing party merges with another party, subdivides into more than one party, or subdivides and any one subdivision merges with another party.

The new section 6(a) that the committee has included, that is to be inserted in the funding Act, regulates the circumstances in which a political party, after the window for floor-crossing, has to repay to the IEC the unspent amounts of all moneys that had been allocated to it in terms of the funding Act.

The main principles contained in that new section can be summarised as follows: Firstly, if a member of a legislature becomes a member of a party other than the party which nominated that person as a member, the nominating party does not have to repay to the IEC its unspent balances in respect of the seat held by the member concerned.

Secondly, a party which immediately prior to the window for floor-crossing qualified for an allocation does not have to repay to the IEC its unspent balances, if it subdivides into more than one party or subdivides and any subdivision merges with another party during the floor-crossing, and any subdivision of the original party continues to represent that party and the legislature concerned after the date on which the speaker of a legislature has published a notice required in terms of item 5(3) of Schedule 6(a) to the Constitution that reflects the number of seats allocated to that party in that legislature, and the name of and party represented by each member, and qualifies for the allocation of moneys from the fund, whether the subdivision of the original party has changed its name or not.

Thirdly, a political party which, immediately prior to the window of floor- crossing, qualified for an allocation must repay to the IEC its unspent balances if it ceases to qualify for the allocation of moneys from the fund as a result of its only member or members changing party membership, a merger with another political party or subdivision into more than one party.

The new section 6(a) also places some obligations on the accounting officer or leader of a political party that has to repay to the IEC its unspent balances. Provision is further made that an accounting officer or a leader of a party who fails to comply with these obligations will be guilty of an offence in certain circumstances.

In order to enable a political party that ceases to qualify for the allocation of moneys from the fund and that has to repay its unspent balances to comply with its existing legal and financial obligations, the IEC has granted the discretion to determine the amount of any unspent balances that must be repaid.

The regulations made under the funding Act have been amended to empower the IEC to reallocate 50% of the total amount of funding for the financial year in which floor-crossing is permitted to the political parties that, after the date on which the speaker of a legislature has published the notice in terms of item 5(3) of the Constitution, qualify for the allocation of moneys from the fund, and regulate the times and intervals of payment of the reallocations.

You may well ask: What on earth has he just said? In a nutshell, let me say this. Basically, what we are saying is: In the year of floor-crossing at provincial and national level, there are two instalments that have not yet been allocated, and then, if parties change, this Act will allow those two instalments, for that year only, to be reallocated, and in the next year, the IEC will, of course, then make the allocations in terms of whatever proportions there are.

The second point it deals with is that in certain instances where parties really cease to exist … [Interjections.] Yes, like the National Party, but they will join a decent party now, a bigger party, so hopefully they will bring all their money with them, and they won’t have to give it back. [Interjections.] Forget that party for the moment. The principle is that the unspent balances of certain parties that cease to exist is taxpayers’ money and must be given back to the IEC. In the next year, it will then be allocated downwards.

I have also noted the report of the portfolio committee and will bring its contents to the attention of the Minister as a matter of urgency, because they raised a few points that we have to investigate further.

Lastly, I thank the portfolio committee, especially its chairperson, Ms Chohan-Khota, and the leaders of the parties in the committee for a job very well done, and especially for doing it in a very short space of time as a fast-tracked Bill. May you all do very well during the floor-crossing, and may this Bill help you to get more money into your coffers. Thank you very much. [Applause.]

Ms F I CHOHAN-KHOTA: Thank you, Madam Speaker. Hon members, I’ll try not to explain as well as the Deputy Minister did, but let me just begin by saying that because this is called the Constitutional Matters Amendment Bill, many people have come to me to ask: Do we need a two-thirds majority to pass this Bill?

The immediate answer is, no, this does not pertain to a constitutional amendment at all. This does, however, deal with the consequences of certain constitutional provisions and therefore the Bill was introduced as a Constitutional Matters Amendment Bill.

In essence, as was explained earlier, the Bill deals with the consequences of the floor-crossing regime, and amends the Public Funding of Represented Political Parties Act of 1997, as well as the Determination of Delegates of the National Council of Provinces Act of 1998.

Insofar as it pertains to the funding Act, this Bill now obliges the IEC to reallocate funding to qualified political parties in recognition of the changes occurring during a floor-crossing period. The Bill, read with the regulations, requires the IEC to reallocate 50% of the funding available to parties in a floor-crossing year in a manner that takes cognisance of the changes in party representation immediately following a floor-crossing period.

The funding to political parties in October of the relevant year would have to be reallocated on the basis that those parties that gained seats would qualify for and be entitled to more money, and those that lost seats would have their allocations reduced accordingly.

The formula on which allocations to parties is currently based, remains completely unchanged. It is possible for many things to happen during a floor-crossing period - some parties become stronger, others become weaker, and some vanish completely from Parliament and the legislatures. Sometimes brand-new parties even emerge. The Bill takes care of all of these possibilities.

As far as unspent moneys are concerned the Bill has provided for unspent moneys to be paid back to the IEC under certain circumstances, but not others. The committees conferring felt that a principle had to be developed and adhered to under all circumstances. The principle we devised was that if, after a floor-crossing period, certain parties are no longer represented in the legislatures, those parties will cease to get funding and must also repay unspent moneys.

So parties can be disqualified from receiving funding if they merge into other existing parties, if all their members cross to other parties, or through subdivisions and mergers. The principle, simply stated, is this: As long as a party is no longer entitled to funding at the level of a legislature or Parliament it has to pay back unspent moneys.

It is also significant to note that it is the IEC, and not the political parties themselves, who will determine what the unspent moneys amount to in each case. In deciding what moneys would have to be repaid we considered the fact that political parties incur certain obligations that may extend beyond the floor-crossing period.

The aim of the legislation is not to create parties that can’t meet their legal obligations. We therefore provide that political parties who are no longer represented in Parliament or legislatures after floor-crossing must submit to the IEC their financial statements, as well as supporting documents of things like leases, contracts of employment, and suchlike, which the IEC must take cognisance of before determining the amount of unspent moneys. Unspent moneys must be repaid to the IEC and will go into the fund, and be redistributed amongst the parties that qualify for funding in the following financial year.

In the report of the committee we point out that unspent moneys are to be paid back under two further circumstances, which are provided for currently in the funding Act: Firstly, when a political party ceases to qualify for allocations of moneys from the fund, that is when it loses an election; and secondly, where any or every legislature or Parliament dissolves.

In our report we suggest that the desirability of aligning matters related to unspent moneys be investigated, bearing in mind those may be mutually exclusive circumstances. However, in regard to who should be responsible for actually paying the unspent moneys the Act, as it currently stands, is silent.

It is with this in mind that we suggest a closer look at the funding Act. In amending the funding Act we have inserted a new section 9(a), which makes it an offence for a party’s accounting officer not to comply with certain financial accountability mechanisms and the repayment of moneys by a certain period.

While we do not envisage that unspent moneys will mean huge sums of money being returned to the IEC, the principle adopted in this legislation, because it deals with public money, is that of accountability and transparency. Both these issues have to be fine-tuned in the rest of the Act. We were unfortunately unable to deal with these matters in the two weeks we had to process this Bill, and have therefore requested the department to investigate further and return with proposals after consulting all stakeholders.

Coming now to the Determination of Delegates (National Council of Provinces) Act, the Constitution, in Part B of Schedule 3, indicates the formula that is to be used to determine the number of NCOP delegates that a party represented in a legislature is entitled to. The formula to be used to determine the number of special and permanent delegates is to be found in the delegates Act.

Essentially, the formula in the delegates Act mirrors, as far as possible, the formula in the Constitution. We have now amended this to provide for the possibility of the extreme changes that may occur in legislatures and in Parliament during the floor-crossing window periods. In this regard, when the formula provided for in the Act results in more than six permanent delegates, or less than four special delegates, the deadlock-breaking mechanism was to resort to the number of votes actually cast for a party during the preceding election.

During a floor-crossing period, however, brand-new parties may emerge that have never participated in elections at all. Mindful of the fact that our system is essentially a PR system, and that votes are cast for parties and not individual members, in such a case we provide that a zero or nil vote is recorded for such parties in the deadlock-breaking mechanism.

At the other extreme is the possibility that two parties who have contested elections, each one of them recording votes in the preceding election, may merge in their entirety. In such a case, as long as no single person remains who is representing such parties, and that the merger was not a result of a subdivision and merger, the combined number of votes cast for each party would be considered for the purpose of the deadlock-breaking mechanism.

If, however, there remains further deadlocks, ie in the case of two parties recording exactly the same number of votes at the polls, or two brand-new parties emerging after the floor-crossing, the Act now provides that the legislatures determine, in accordance with the principles of democracy, the question of which party gets the permanent delegate.

I would like to raise a matter that we have not dealt with in the report. It seems to me that there is absolutely no reason why the formula in the Constitution should not be amended to reflect both these extremes that arise during floor-crossing.

Currently, as it stands, the Constitution does take into account the one extreme, ie when two parties merge, but it doesn’t take into account the possibility of brand-new parties emerging during floor-crossing. This is then a matter that the department should also consider at an appropriate time.

Finally, let me take this opportunity, Madam Speaker, to thank all the members of the committee, across party lines, for their frankness and co- operation over the last two weeks. Thanks to the state law advisers and departmental officials, in particularly, Mr Johan Labuschagne, who worked really tirelessly on this Bill and dealt with me with great patience and compassion. Thank you, Mr Labuschagne.

I’m told that he is also continuing to try to beat the clock to ensure that this Bill gets promulgated before 1 September. I do thank you for your attention. [Applause.]

Mrs S M CAMERER: Madam Speaker, the DA supports the Constitutional Matters Amendment Bill. However, we find ourselves in the invidious position of supporting amendments to legislation which we as a party are now entirely opposed to. In fact, the DA will be introducing a motion, asking Parliament to review and rescind floor-crossing legislation.

It is true that the DA has supported the right of public representatives to change parties on the basis of conscience. In fact, the DP’s negotiator on these matters at the constitutional negotiations, Colin Eglin, proposed that this right to cross the floor be incorporated in the Constitution from the beginning. However, experience has taught us how inappropriate floor- crossing has become in our current constitutional dispensation.

Forget principle. In the hands of the ANC majority, floor-crossing has degenerated into the lowest form of chequebook politics, a legal form of bribery at the taxpayers’ expense. [Interjections.]

The ANC is currently driven by lines of dissent: the Mbeki camp versus the Zuma camp. Which one are you in, hon Minister? [Interjections.] Cosatu versus Minister Trevor Manuel’s economic conservatives. The centralists versus the new UDF.

In order to shore up its faltering unity, the ANC will no doubt attempt to use the upcoming floor-crossing period, which starts next week, to cannibalise several smaller opposition parties.

According to the highest decision-making body of the DA, its federal council, at our last meeting in June we accepted the following motion: “In light of the perversion and abuse by the ANC of floor-crossing, chiefly through . . . ”

Mr P A C HENDRICKSE: Madam Speaker, I rise on a point of order.

The SPEAKER: Order, hon member. Yes, hon member?

Mr P A C HENDRICKSE: Madam Speaker, if I understood the Deputy Minister correctly, this Bill does not deal with the principle of floor-crossing, and it appears as if the person at the podium is now addressing the principle.

The SPEAKER: That is true actually, hon member. It is not about the principle of floor-crossing; it’s about issues surrounding it. [Interjections.]

Mrs S M CAMERER: Exactly. Thank you, Madam Speaker.

I’ve noticed that a number of government members have been raising issues around floor-crossing during the proceedings today. Anyway, we accept the motion, but because of the revulsion it arouses among our voters who believe their mandate has been betrayed, the party has revisited its position and now opposes floor-crossing.

Within the provisions of the law, the DA will penalise any of its own public representatives who cross the floor to another party in defiance of the mandate of the voters. The DA, however, will accept representatives of other parties into its ranks who join for reasons of personal conscience and who are committed to our principles and policies. [Interjections.] However, to minimise opportunistic enticements, no person joining the DA can be offered or assume a post within the legislature or council which attracts more remuneration than he or she was earning before joining the party, for a period of two years. [Interjections.]

The DA also believes that the task of South Africa’s only remaining national opposition is to hold the line against the ANC. Whereas the ANC uses floor-crossing as a way of expanding its power, opposition parties must use it as a way to make sure that ordinary people have a say in government. The DA will welcome those public representatives who choose to join our ranks out of a sincere commitment to strengthening the opposition and upholding our democratic principles. [Interjections.]

This Bill has two main purposes. In the first instance, it seeks to clarify the rules pertaining to the allocation of funds to political parties in terms of the Public Funding of Represented Political Parties Act. The right of public representatives to cross the floor was introduced after the acceptance of the funding Act, which necessitates this amendment. The amendment specifically provides for the allocation of funding after the crossovers.

The basic principles upon which the amendments rest include the principle that a recalculation is made of the funding allocation to parties as if an election had taken place, and that the unspent balances, as defined in the Bill, paid over to political parties, are required to be paid back to the fund if the relevant party ceases to exist and therefore ceases to be entitled to the funding. So, in the event of a party ceasing to be represented as a result of the crossing of all its members because of a merger or subdivision, unspent balances do have to be repaid.

A party does not cease to exist if one or more members cross, or there is a subdivision, or there is a name change, but the party concerned – or parties in the event of a subdivision – continues to be represented. Criminal sanctions are introduced for failing to comply.

In the second instance, the Bill attends, as the Deputy Minister indicated, to unfinished business. After the debacle of the original floor-crossing legislation, as it affected national and provincial government, being found to be procedurally defective and invalid by the Constitutional Court in October 2002, the matter was rectified by the passing of the Constitution of the Republic of South Africa Amendment Act of 2003, the principal object of which was to re-enact floor-crossing legislation in a procedurally correct manner.

However, the amendments to the Determination of Delegates (National Council of Provinces) Act of 1998 were not re-enacted. Accordingly, this Act is now amended to take care of changes in the composition of legislatures as a result of crossings. Once again, the point of departure is that a new calculation is made as if an election had taken place.

The only aspect that this amendment affects are the rare cases in which it is necessary to refer back to the votes obtained by a party in order to allocate a delegate to one or more parties who tie on a fraction. Also, the Bill provides that in the event of a new political party coming into existence or in the event of a subdivision – and, consequently, no previous election participation – the new party will be regarded as having obtained no votes in the previous election. This was the DA’s proposal, which was accepted by the committee.

The committee, as has been indicated by our chair, has raised one or two further points in a report to the House and has recommended that the Minister for Justice and Constitutional Development look into them for possible further action.

While this legislation may now more or less be complete, the whole floor- crossing system as it is now practised remains as odious as ever. The DA can only call on genuine opposition MPs, marooned in disintegrating parties or movements as a result of the ANC’s depredations, to join with us during the window period to honour the mandate of opposition voters in South Africa. The DA looks forward to the forthcoming local government elections, which we believe will considerably strengthen our political position. Thank you. [Applause.]

Mr L K JOUBERT: Chairperson, hon members, as pointed out by previous speakers, the need for these amendments emanated from floor-crossing legislation that has been adopted since 2002. That legislation is now part of our positive public law and, as was also correctly pointed out, is not part of this debate. However, the parliamentary record will show that the IFP voted against that particular legislation.

As far as the present amendments are concerned, it is conceded that they are necessary in view of the existing legislation, and we will therefore support this Bill in so far as it addresses a void created by the previous legislation.

However, apart from the merits or demerits of this Bill, what is worrying is that although we had two to three years to address this matter and make the necessary provisions timeously, this matter only became urgent as the date for the forthcoming window period came nearer, with the result that the Bill had to be fast-tracked in the past couple of weeks to have it in the statutes by 1 September 2005.

I have no doubt that we will be meeting this deadline, but my question is: Do we have our priorities right? Here we gave priority to a matter that basically only concerns the financial interests of political parties. We gave it such a high priority that it was fast-tracked and joint sittings of the portfolio committee and the select committee of Justice and Constitutional Affairs were held.

Do we have our priorities right if we fast-track legislation that concerns us as political parties, while there are more pressing matters concerning the public at large that remain under the line? If a deadline is our criterium for fast-tracking legislation, should we not have deadlines for all the important matters before such matters become urgent?

We call this the People’s Parliament and we talk about taking Parliament to the people. We should therefore give priority to matters that concern the people directly. I thank you. [Applause.]

Mr G T MADIKIZA: Chairperson, hon members, the Bill before us is a continuation of a legislative process which, in our opinion, disgraces this House and undermines democracy. Voters entrust parliamentary and legislative seats to parties and not individuals, yet the two biggest parties in this House have seen fit, for reasons of political expediency, to amend the Constitution in order to introduce into our body politic unnecessary instability.

It is common knowledge that floor-crossing always tends to favour the ruling party, and so it greedily pursues those seats which the voters did not entrust to them. We have repeatedly said to the ruling party that floor- crossing in a proportional representation electoral system is a betrayal of the voters.

In a constituency-based system, floor-crossing could be allowed because then the voters could be consulted in the by-elections about individual public representatives’ decisions to defect. It is the height of irony that whilst the majority of political parties support a constituency-based electoral system, the ANC opposes it.

The Bill before us, in all its convoluted glory, is a legalistic tap dance to accommodate the effects of floor-crossing. In itself it is proof of the unseemly eagerness with which floor-crossing was introduced without considering all the consequences.

We will have nothing to do with anything that has to do with floor- crossing. The UDM does not support this Bill. Thank you. [Applause.]

Ms C B JOHNSON: Chairperson, hon members, the Constitutional Matters Amendment Bill is a Bill which has been drafted specifically to provide for certain inevitable consequences of floor-crossing. It’s a technical Bill.

The Bill’s primary aim is to regulate the funding and the financial implications of floor-crossing both during and after the window period is opened. Also, if one bears in mind that all the funds from the IEC to political parties are, after all, public funds and taxpayers’ money, we are of the view that the Bill makes adequate provision for proper transparency and accountability in the way that these funds are managed. In view thereof, we support the Bill.

May I respond to what the hon Camerer said? I can’t believe that the DA can be against a principle when it doesn’t suit them, but for the very same principle when it does suit them. I find that unprincipled in the extreme.

Then, hon Camerer, I am glad that you brought up chequebook politics, because I don’t know if you are aware that the DA in the Western Cape is currently offering persons MEC positions as well as the premiership of the Western Cape in order to lure them to cross the floor. [Interjections.]

So, Mrs Camerer, you are either against something or you are for something. You cannot be both. You cannot have your cake and eat it. So, let me explain this to you in terms that you might understand. Political principles are not Italian shoes. You cannot have a different pair for each day of the week. [Interjections.] [Applause.]

Mr S N SWART: Chairperson, the ACDP is on record as being opposed to floor- crossing. When the legislation was considered in 2002, I pointed out the impact that floor-crossing and reduced party funding would have on existing legal obligations of a party, such as employment and rental contracts. Whilst we thus remain firmly opposed to floor-crossing, we believe that the inevitable consequences of floor-crossing, as undesirable as they may be, must be properly regulated – particularly as we are dealing here with public funds allocated by the Independent Electoral Commission, and for that reason we will be supporting this Bill.

If a party ceases to qualify for funds, as has been pointed out, it must repay unspent balances, following an audit procedure, as set out in the amending legislation. The IEC will, however, have discretion to consider standing legal obligations, such as rental and employment contracts in determining the repayment of such amounts.

Additionally, should a provincial legislature be reconstituted due to floor- crossing, the provincial delegates to the NCOP may have to be redetermined. This, again, is a consequence that must be properly regulated, particularly regarding deadlock-breaking mechanisms. Where a new party competes with an existing party on the basis of votes in the allocation of special or permanent delegates, the new party must, of course, be allocated zero votes, and this is contained in the Bill. This is eminently reasonable, as this new party would not have competed in the previous election.

Thus, the ACDP will support this amending Bill, but as the threshold for the window period opens, I would just like to say: Don’t call us; we’ll call you. Thank you very much. [Interjections.]

Dr C P MULDER: Mnr die Voorsitter, vandag se debat het weer eens bewys waarom dit soos ’n paal bo water staan dat die DA sleg is vir Suid-Afrika. Die DA is die kampioen van politieke opportunisme. Wat is die feite? Die aanvanklike Grondwet het nie oorlopery in Suid-Afrika toegelaat nie, want dit maak nie sin by ’n proporsionele stelsel nie. Wie kom na vore en vra dat die Grondwet gewysig moet word om oorlopery moontlik te maak? Die DA. Hulle vra dat die ANC die Grondwet moet wysig. Die DA stem toe vir die wet wat oorlopery moontlik maak. Toe hulle egter agterkom dat die publiek daarvoor gril, is hulle skielik daarteen. Dit pas die DA en skielik is hulle toe ook teen oorlopery gekant.

Vandag in hierdie Raad stem die DA weer vir die wet, want dit pas hulle om dit vandag te steun. Hulle steun die wet vandag, maar in hulle toespraak sê hulle hul is eintlik teen oorlopery. Die juweel van die dag is egter die feit dat hulle tog almal uitnooi om by hulle aan te sluit.

Dit is ongelooflik! G’n wonder die publiek daar buite gril vir politici en vir politieke partye nie. Dit is eintlik een party se verantwoordelikheid; dit is die DA se verantwoordelikheid. Julle maak ons almal sleg. Hou op daarmee asseblief. [Tussenwerpsels.] [Applous.]

Die feit van die saak is die volgende: ten grondslap aan die demokrasie lê die Grondwet en grondwetlike demokrasie - die verteenwoordiging daarvan - in die hart van ons stelsel. Kiesers stem vir mense wat hulle verteenwoordig en hul stemme word op daardie manier omgesit in verteenwoordiging, maar dan word daar ook fondse gegee. Daardie kiesers wat gestem het se belastingbetalersgeld word indirek gekanaliseer om daardie ideale voort te sit.

Die probleem met hierdie wet is dat dit nie ’n goeie wet is nie, want dit is ’n vooruitloping van daardie verkeerde beginsel. Nie alleen word daardie kiesers van hulle stemme en verteenwoordiging ontneem nie, maar nou word ook daardie geld wat eintlik saam met hulle gedagte moes gegaan het, hulle ook ontneem.

Nasionale Party-mense wat vir die NNP gestem het se stemme is hulle reeds ontneem. Nou word daardie belastingbetalersgeld hulle ook ontneem, want dit gaan na die ANC. Julle is besig om op ’n verkeerde beginsel ’n vrot wet deur hierdie Parlement te voer. Ek dank u. (Translation of Afrikaans speech follows.)

[Dr C P MULDER: Hon Chairperson, today’s debate has once again proved why it is so evident that the DA is bad for South Africa. The DA is the champion of political opportunism. What are the facts? The initial Constitution did not allow for floor-crossing in South Africa, because it does not make sense in a proportional system. Who came forward and asked that the Constitution be amended to allow for floor-crossing? The DA. They asked the ANC to amend the Constitution. The DA then voted for the law that makes provision for floor-crossing. However, when they realised that it was irking the public they were suddenly against it. This suited the DA and suddenly they were also opposed to floor-crossing. Today in this House the DA is once again voting for this law, because it suits them to support it today. They are supporting this law today, but in their speech they say that they are actually opposed to floor-crossing. But the best part is the fact that they are still inviting everyone to join them.

This is unbelievable! No wonder the public out there is irked by politicians and political parties. It is actually the doing of one party; it is the DA’s fault. You are making us all look bad. Please stop that. [Interjections.] [Applause.]

The fact of the matter is the following: The Constitution and constitutional democracy are at the heart of democracy – the representation of it at the heart of our system. The electorate votes for people who represent them and in this way their votes are converted into representation, but then funds are also given. The taxpayers’ money of voters is indirectly channelled to pursue those ideals.

The problem with this law is that it is not a very good one, because it is in anticipation of that incorrect principle. Not only are those voters being deprived of their votes and representation, but now they are also being deprived of that money that was actually supposed to accompany their ideals.

National Party supporters who voted for the NNP have already been deprived of their votes. Now they are also being deprived of that taxpayers’ money, because it is going to the ANC. You are piloting a rotten law through this Parliament, based on an incorrect principle. I thank you.]

Mrs S A SEATON: Could it be noted that there is no isiZulu interpretation?

The HOUSE CHAIRPERSON (Mr G Q M Doidge): We’ll take care of that Mrs Seaton. We will ask the Table to send a message up to them.

Mr I S MFUNDISI: Chairperson and hon members, the Bill we discuss today seeks to shore up section 6 of the Constitution of the Republic of South Africa Amendment Act of 2003 by managing the retention of membership of the National Assembly or provincial legislature after a change of party membership.

We supported the Bill at the time, and we will do so even today, as consideration is being given to the amendment of the Public Funding of Represented Political Parties Act of 1997, because it has become necessary to ensure that whoever leaves his or her party to go to another party should have the necessary financial support from the day he or she changes party membership.

We in the UCDP have always maintained that although it is immoral to change party membership midstream, there is nothing to be done if members are not happy. All we are against, and will continue to view with contempt, is the overt recruitment of members of one party by another. We maintain that members should uphold the spirit and the letter of the Act, which stipulates that people may leave parties voluntarily without being coerced, recruited and promised heaven and earth.

We lament that there are spineless and intolerant rolling stones in our midst who masquerade as representatives of the people, yet are only there to satisfy their personal political lust. One wonders where such people will be during the next floor-crossing period before the end of the five- year term of this Parliament.

The UCDP believes that all we need are men and women of substance who would not be blown over by just any wind. The unfortunate part of the law is that it is fertile ground for the proliferation of insignificant parties that then also subdivide in amoeba-like fashion, or strengthen the ruling ANC through the backdoor.

Notwithstanding all that, as we said, the UCDP will support the Bill.

Mr N T GODI: Chairperson, Comrade Deputy Minister, comrades and hon members, I wish to state from the onset that the PAC supports this amending Bill. The amendments to be effected do not seek to introduce anything substantively outside the current framework of our parliamentary and political landscape, but rather to adjust and better regulate certain practices and aspects currently in operation.

Although, when introduced, the PAC vehemently opposed what is generally known as the floor-crossing legislation, we do take cognisance of the fact that it is now law and operational. We are not going to act like “bittereinders”. We are a revolutionary and forward-looking party. I am not going to waste time trying to kill a dead horse, because I do not think anything substantive is being amended. Suffice it to say, for example on the Determination of Delegates of the NCOP Act, that it is not only logical, but long overdue, that these amendments should be effected, just as it has been effected in the local municipalities where after floor- crossing there is a redetermination in terms of delegates from local municipalities to district levels.

I wish to state, Comrade Deputy Minister, that as far as the PAC is concerned, floor-crossing is not a threat, but more of an opportunity. We have declared that the PAC is a home for all those who believe that they still want to contribute positively to the development of our country and people. I thank you. [Interjections.] [Applause.]

Ms S RAJBALLY: Chairperson, please excuse me, I have very bad flu. The MF returns to the podium on the matter of floor-crossing, which we are opposed to. While we have no problem with parties merging and subdividing, we find it unjust and immoral for a member to cross the floor in his or her independent capacity.

We honour and cherish the people we represent, and we acknowledge our responsibility to these people who voted for us in confidence. When voting for us they trusted that we would be honourable leaders and bold representatives of their needs, wants and existence. We are here because of the faith our constituencies have in us. When we cross the floor we fail our people.

We are a democracy, a government for the people by the people. We need to remember that the people hold our seat that we represent, and that they have voted for the party, and they have chosen to elect us as the people best suited to represent them.

In terms of the amendments regarding funds we have assessed that it has been compiled fairly and equitably. Amendments regarding the reallocation of funds to political parties whose membership has been affected by floor- crossing have been given an appropriate formula to ensure the equitable and fair distribution of funds.

Provisions made for the reconstitution of provincial delegations to the NCOP when floor-crossing affects party membership in that House also seem apt.

We once again appeal to those intending to cross the floor in September 2005: Remember the people, don’t fail them. Our nation is a family, not a division of individualists.

The MF supports the Constitutional Matters Amendment Bill. [Applause.]

Mr G SOLOMON: Chairperson, this piece of legislation seems to irritate a number of political parties here. It might be because of the legislation or maybe because of floor-crossing and the impact it will have on their parties. Maybe we should talk about floor-crossing and remind this House and the members who are irritated by this piece of legislation about the rationale behind floor-crossing and the principles in the Constitution which gave rise to floor-crossing. In any case, this piece of legislation before us is a very important piece of legislation, which is part of a series of pieces of legislation in the process of the democratisation of our electoral system, including floor-crossing.

There is no doubt that this legislation, together with the electoral principle of proportional representation and an anti-defection clause - section 43(b) of the Interim Constitution of 1993 – was necessary for the political stability that was required for institutional and social transformation in South Africa during a very critical period in our democracy. If we were, for example, to allow free floor-crossing indiscriminately, we would not have this political stability which we need in order to bring about those changes in South Africa.

Whilst the anti-defection clause of the Interim Constitution was strongly supported as an intricate component of the party list system - the DA, at that time the DP, strongly supported this system on which the 1994 election was based - it became one of the most contested elements in our system of representative democracy. And we heard it here today. It was heavily criticised, and correctly so, for being undemocratic and that it allegedly stifled freedom of speech and association and, in the interests of democracy, the government decided to change this.

Whilst democracy demands that the process must be allowed to develop without undue interference, the challenge that faced the government was to find a way of allowing crossing of the floor within our party list system. The most important factor we need to take into consideration, and I quote our previous chairperson – the present Deputy Minister for Justice and Constitutional Development, the hon Mr Johnny de Lange, during the heat of the debate in 2002 – as saying: “We need to take into consideration the possible impact the legislation may have on the stability of all three tiers of government.” We were also alerted to the dangers of political corruption, intimidation, enticement and opportunism by various scholars and legal teachers at universities.

The introduction of the concept of floor-crossing into our electoral system has taken a number of forms in the heat of the debate. There was complete opposition from the IFP - and we appreciate and respect them, they still have the same position. The UDM also have the same position as do the ACDP. There was support for complete and unimpeded freedom to cross the floor from Mr Collin Eglin, at the time of the then DP. The FF Plus might have changed, but not the DA. I am surprised by what Mrs Camerer said today.

The ANC’s position is, however, quite clearly based on the principle of the South African constitutional order, namely the party list system of proportional representation, political accountability to the electorate through the nomination of parties and the value of a multi-party system that encourages the representation of all significant voices in our society. All these must be underpinned by the critical need for political stability in our system.

In view of these principles, the ANC believes that it is in the interests of the democratic process to accommodate the differences of opinion that might arise in parties. If during the lifespan of a party these differences in principle or policy become unmanageable and threaten the stability of the party, it would be undemocratic to allow such representatives to be booted out of parties and out of the legislature. We therefore should allow defections, subdivisions and mergers.

A critical question, however, is: When are such moves worthy of constitutional protection? The ANC was of the opinion that a threshold of 10% is reasonable to ensure there is sufficient consensus of opinion where changes in political affiliation are contemplated. To avoid constant reconfiguration of the representational profile of parties in legislatures, only two 15-day window opportunities to cross the floor should be allowed in September of the second and fourth year respectively of the five-year term of office.

We believe that the threshold of 10% and the limitation to the windows of opportunity imposed on defections, mergers and subdivisions are in the interest of political stability and integrity while allowing changes in political affiliation without compromising the principle of proportional representation.

Today, however, strange things are happening on the eve of the cross-over. Different parties respond in different ways, and I will quote the positions of some of them. The UDM says: “You walk - take your pick - I fire, why shoot? The DA says: “We did not do so well the first time, but this time we have a dream team and a ghost cabinet; we want to become Premier, particularly of the Western Cape, or an MEC; walk to the democratic circus.” The ANC says: “We are the people’s party; we are popular, particularly amongst the working class, the poor and the marginalised; we have a hardworking team clearing up the mess caused by others; we are making great headway despite many challenges; we are quite full presently, but there is always space for more. You know that we believe that South Africa belongs to all who live in it, both black and white. So you will be welcome.”

To come back to the Bill in front of us, we believe that this finely balanced mechanism to allow floor-crossing under controlled conditions, together with today’s amendments unanimously agreed upon in the portfolio committee, including by the DA, will facilitate the allocation of the third instalment of funds from the IEC and the allocation of representation in the NCOP in a manner consistent with our democratic principles.

In conclusion, to those who will receive a bigger third and fourth instalment from the IEC and increased representation in the NCOP by the end of September, good luck. For the rest, there will be another opportunity in September 2007. Thank you, Chairperson. [Applause.]

The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Chairperson, I thought today was going to be a nice calm day, no problems and that everyone was going to be happy. But, it does not work like that in this Parliament.

I am going to start off by congratulating Dr Mulder, because Dr Mulder will remember that it was he who came to the committee in 2003 and said look, there are a whole lot of consequential issues that you are not addressing here, please address them. So, we passed a resolution to accommodate Dr Mulder. We went back to see how we could fix this thing up. We fixed it up, but when we came back he said he didn’t like it. You just can’t please everyone all the time. Dr Mulder, this one is yours, congratulations!

To the member from the UDM, I imagine that you are not one of those members who has been suspended, because you spoke with so much enthusiasm and you were so strong on principle that I couldn’t understand what you were saying. But I could see you felt strongly about it. So you might still be one of them, if you have not been suspended, obviously. [Laughter.]

I want to thank the department, particularly Johan Labuschagne who has done a great job and everyone else who has been involved. And I want to thank the parties for processing this very quickly.

You know, Sheila, I love you so dearly. You are such a wonderful person. You are the biggest bag of contradictions that one can imagine. [Laughter.] You come and tell us about principles. I looked in the Oxford Dictionary and found that the word ``principle’’ is defined as a fundamental truth or in law as the basis for reasoning or action, or as a fundamental source. In other words, it is something fixed and immutable. It’s something that you don’t just change as you wake up in the morning and so on.

Now, I’ll tell you what isn’t a principle. It can’t be a principle when your party is one of the strongest initiators of floor-crossing. You know what happened, you guys got into a marriage. It was a disaster and you pushed us in all kinds of ways to go for floor-crossing. And we went that route to try and solve the problem. Then you, hon Mrs Camerer, were one of the members that took the opportunity to walk from one party to the other. Then you come here today . . . [Interjections.]

Mrs S M CAMERER: Chair, on a point of order: Is the Minister not refusing to talk about the Bill but instead talking ``chequebook’’ politics here?

The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Now, you are making confessions. Did they buy you? Oh, that is even worse. Did they buy you?

Mrs S M CAMERER: They wanted to buy me. [Laughter.]

The DEPUTY MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: I could forgive you for all those things, but you can’t come here today and say it’s a principle of the party to oppose floor-crossing but you are going to accept anyone who comes to you. I mean that can’t be a principle. That is opportunism. [Laughter.] And it’s opportunism of the worst kind. I’ll tell you why, because you stand on a platform and say we have principles. And when we ask you what principles, you say you don’t like floor-crossing and that if a member crosses the floor in your party you are going to penalise that member, you are going to hammer them, but anyone who wants to come and join you must please come and join you. That is not a principle.

So, your whole confused logic, I think, has made it quite fun for this debate because it has exposed a whole lot of stuff. And what I want to say to you is that if you want to cross, Mrs Camerer, we will talk, without a ``chequebook’’. You have made a habit of these things, so we can keep letting you walk across this room. [Laughter.]

So, the issue of floor-crossing you are opposing now is definitely not a principle, it’s clearly very opportunistic and we should be careful about trying to sell it to people because people are not fools. I mean anyone will know that if you say you are against anyone crossing the floor and then you accept people, they know that is opportunism. It’s nothing else.

For example, people know that you guys didn’t do very well in the last floor-crossing. So, what is it that the party can do? They are scared about the next floor-crossing, what they then do as a principle is to oppose it and try and dress it up as principle. It is not! It’s not a principle! It never has been a principle! And in the case of this particular party and the way they are dealing with it, it could not be that. But what it does do is create a lot of fun and a lot of excitement in the House.

I want to assure the hon Joubert, as well. I agree with the point made about fast-tracking. We should be very careful in this House not just to fast-track issues, particularly if they affect political parties. But I can assure you in terms of this legislation that nothing was set aside, nothing was put aside to let it pass through on this occasion. So, you do not have to worry about that.

Lastly, I think there are still some outstanding issues that need to be dealt with. Some of them have been raised in the resolution, some in the debate of the chairperson, some by one or two other persons. Again, can I just say thank you very much to all of you. And again, make use of the floor-crossing. You may not be here afterwards. So, don’t stand on your principles because you may become very, very small in the process.

Thank you very much, Chairperson. [Applause.]

Debate concluded.

Question put: That the Bill be read a second time.

Division demanded.

The House divided:

AYES - 217: Abram, S; Anthony, T G; Arendse, J D; Asiya, S E; Balfour, B M N; Baloyi, M R; Batyi, F; Beukman, F; Bhamjee, Y S; Biyela, B P; Bloem, D V; Blose, H M; Booi, M S; Botha, N G W; Burgess, C V; Buthelezi, M G; Cachalia, I M; Camerer, S M; Chang, E S; Chauke, H P; Chikunga, L S; Chohan-Khota, F I; Cronin, J P; Cupido, H B; Davidson, I O; Davies, R H; De Lange, J H; Dhlamini, B W; Diale, L N; Didiza, A T; Dlali, D M; Dodovu, T S; Dreyer, A M; du Toit, D C; Farrow, S B; Fihla, N B; Fraser- Moleketi, G J; Frolick, C T; Fubbs , J L; Gaum, A H; Gcwabaza, N E ; George, M E; Gerber, P A; Gibson, D H M; Gigaba, K M N; Gillwald, C E ; Godi, N T; Gogotya, N J; Gololo, C L; Green, L M; Greyling, C H F; Gumede, D M ; Gxowa, N B; Hajaig, F; Hanekom, D A; Hendrickse, P; Hogan, B A; Huang, S; Jacobus, L ; Johnson, C B; Johnson, M; Jordan, Z P; Joubert, L K; Kalako, M U; Kalyan, S V; Kasienyane, O R; Kati, Z J; Kekana, C D; Khoarai, L P; Kholwane, S E; Khumalo, K M; Khunou, N P; Kohler-Barnard, D; Komphela, B M; Kondlo, N C; Koornhof, G W; Labuschagne, L B; Landers, L T; Likotsi, M T; Lishivha, T E; Louw, J T; Louw, S K; Lowe, C M; Lucas, E J; Ludwabe, C I; Luthuli, A N; Maake, J J; Maduma , L D; Magau, K R; Mahlangu-Nkabinde, G L; Mahlawe, N M; Mahomed, F; Mahote, S; Maja, S J; Makasi, X C; Makgate, M W; Maloney, L; Maloyi, P D N; Maluleka, H P; Maluleke, D K; Mars, I; Martins, B A D; Masango, S J; Mashangoane, P R; Mashile, B L; Masutha, T M; Mathibela, N F; Matsepe-Casaburri, I F; Maunye, M M; Mayatula, S M; Mbombo, N D; Mdladlana, M M S; Mdlalose, M M; Mfundisi, IS; Mgabadeli, H C; Mkhize, Z S; Mlangeni, A; Mnguni, B A; Mnyandu, B J; Modisenyane, L J; Mofokeng, T R; Mogale, O M; Mohamed, I J; Mokoto, N R; Molefe, C T; 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; Mthethwa, E N; Ndou, R S; Ndzanga, R A; Nel, A C; Nene, N M; Newhoudt- Druchen, W S; Ngaleka, E; Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngema, M V; Nhlengethwa, D G; Njobe, M A A; Nogumla, R Z; Nonkonyana, M; Ntuli, B M; Ntuli, M M; Ntuli, R S; Ntuli, S B; Nxumalo, S N ; Oliphant, G G; Pahad, E G; Phala, M J; Pieterse, R D; Pule, B E ; Rabie, P J; 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; Sayedali-Shah, M R; Schmidt, H C; Schneemann, G D; Schoeman, E A; Seaton, S A; Sefularo, M; Selfe, J; Semple, J A; September , C C; Seremane, W J; Sibanyoni, J B; Sibuyana, M W; Sigcau, Sylvia N; Sithole, D J; Skosana, M B; Smith, V G; Solomon, G; Sonto, M R; Steyn, A C; Surty, M E; Swart, P S; Swart, S N; Thabethe, E; Tolo, L J; Tsenoli, S L; Tshivhase, T J; Tshwete, P; Turok, B; Vadi, I; Van den Heever, R P Z; Van der Walt, D; Van Dyk, S M; Van Wyk, A; Vezi, T E; Vos, S C; Vundisa, S S; Waters, M; Weber, H; Woods, G G; Zikalala, C N Z; Zille, H; Zita, L; Zulu, B Z ; Zulu, N E.

NOES - 7: Groenewald, P J; Madikiza, G T; Mulder, C P; Mulder, P W A; Nkabinde, N C; Pheko, S E M; Spies, W D;

ABSTAIN - 1: Greyling, L W.

Question agreed to.

Bill accordingly read a second time.

CONSIDERATION OF REPORT OF PARLIAMENTARY DELEGATION TO 49th SESSION OF UN COMMISSION ON THE STATUS OF WOMEN - (BEIJING +10 CONFERENCE)

The DEPUTY SPEAKER: Hon Chairperson, hon members, ladies and gentlemen, the Inter-Parliamentary Union affirms:

The concept of democracy will only assume true and dynamic significance when political policies and national legislation are decided upon jointly by men and women, with equitable regard for the interests and aptitudes of both halves of the population.

In September 1995, South Africa participated in the United Nations’ Fourth World Conference on Women, which was held in Beijing, China. At this conference, our government committed itself to the Beijing Platform for Action.

The 49th session of the United Nations’ Commission on the Status of Women, which was held in New York from 28 February to 11 March 2005, provided an opportunity to review progress made towards gender equality since the Fourth World Conference on Women held in 1995.

The primary objective of the session was to reiterate, renew and enhance the Beijing commitments. As Parliament, we have a particular role to play with regard to overseeing the implementation of the Beijing Platform for Action. One of the primary areas of work of the Joint Monitoring Committee on the Improvement of Quality of Life and Status of Women is to monitor and evaluate progress made in relation to enhancing the quality of women’s lives in South Africa, with specific reference to the government’s commitment to the Beijing’s Platform for Action, the Convention on the Elimination of All Forms of Discrimination Against Women, Cedaw, and any other specific international instruments.

The programme for the 49th session of the Commission on the Status of Women was structured around the following thematic areas: Innovations in institutional arrangements for promoting gender equality at national level; review of the implementation of the Beijing Platform for Action and the outcome documents of the special sessions of the General Assembly; current challenges and forward-looking strategies for the advancement and empowerment of women and girls; observance of Women’s Day; remaining challenges in relation to statistics and indicators; building on the discussions at the high-level round table organised during the 48th session of the commission last year; available data from The World’s Women: Trends and Statistics, 2005, and the world survey on the role of women in development; future perspectives on the promotion of gender equality through the eyes of young men and women; and the role of regional and intergovernmental organisations in promoting gender equality.

In addition to the main programme outlined above, the African Union organised a panel discussion on monitoring gender equality commitments.

The Inter-Parliamentary Union also organised a session to explore the role of parliaments in giving effect to the promotion of gender equity. Various non-governmental organisations also organised a series of side events, which ranged in thematic focus. This included sessions on violence against women; critics of Beijing +10; women in armed conflict; the economic empowerment of women; women and the environment; the trafficking of women and girls; women with disabilities, and widows.

Governments reaffirmed their commitment to the implementation of the Beijing Declaration and Platform for Action and the outcome document of the 23rd Special Session of the General Assembly in 2000.

The declaration emphasises that the full and effective implementation of the Beijing Declaration and the Beijing Platform for Action are essential in achieving the internationally agreed upon development goals, including the millennium development goals, and highlights the need to ensure a gender perspective in the high-level plenary meeting on the review of the millennium declaration.

It calls upon the United Nation systems, international and regional organisations, civil society, women and men to commit themselves and intensify contributions to the implementation of the Beijing Declaration and the Beijing Platform for Action, and the outcome document of the 23rd Special Session of the General Assembly. The report we are tabling here today should enable them to chart a course of action for acting upon its recommendations.

One of the mechanisms suggested is that the report be referred to the relevant committees for discussion, including recommendations on taking the issues forward. It is further suggested that a number of debates be held in both Houses on the content area above. For example, in a week’s time, we will be hosting a Women’s Parliament over two days, which will evaluate and discuss the contents of the Beijing +10 report in depth.

We expect members of Parliament to be there on 30 and 31 August when we celebrate the Women’s Parliament. We have involved provinces. Each province will be sending 5 delegates; one of the delegates will be a girl-child, so that they are here to chart their future. [Applause.]

Most of the members of Parliament who formed part of South Africa’s national delegation to the 49th session of the United Nations - the members of the South African parliamentary delegation include myself, the hon Nhleko, hon Botha, hon Windvoël, hon Morutoa, hon Mabe, hon Roopnarain and hon J Semple - will be addressing you today. They will tell you how difficult it was for us to close our eyes under the leadership of Minister Nkosazana Zuma and Minister Frazer-Moleketi, that we were working into the night, because we as parliamentarians would be in all the committee meetings, and then in the evening, we would meet together with the officials and the Ministers to plan for the next day. It was a very fulfilling experience. We worked a lot and it was freezing, but it was worthwhile to put our country where it is supposed to be.

In 1992, the Nobel Peace Prize winner Rigoberta Menchu, advocate for Indian rights in Guatemala, said women should be:

. . . . a beacon of hope, to change systems promoting racism, discrimination, exclusion and the lack of economic opportunity. It is us who will eventually have to convince our governments that women need to be given equal space, to be given an opportunity to exploit their potential, and that it is not a gift for women to participate in decision- making - it is a right.

Recent statistics from the International Parliamentary Union show that, by the end of 2003, for the first time, women had broken the 15% barrier across all national parliaments. Globally, women currently comprise 15,2% of the combined numbers of both lower and upper houses.

However, only 14 countries have so far managed to reach the 30% threshold of women in national parliaments, a figure widely considered to signify the point at which women can make a meaningful impact on the work of parliament. It is very exciting that South Africa is one of those 14 counties.

Rwanda’s elections in 2003 saw one of the most significant increases in women’s representation in parliament. This increase amounted to 23,1% more women being elected to the national assembly. The representation of women in parliament currently stands at an impressive 48,8%, rendering Rwanda the country which has come closest to reaching equal numbers of men and women in national parliament. Among the reasons for this shift is the fact that woman MPs in Rwanda benefited from a constitutional quota, which reserves 24 of 80 seats in the lower house and 30% of the seats in the upper house for women.

From a regional perspective, sub-Saharan Africa has also made significant shifts, where the regional average has increased from 11,3% in 2000 to 15,3% in 2004. South Africa does not have an electoral quota for women, or a constitutional guarantee that spells out numbers with respect to the National Assembly, the National Council of Provinces or appointments in Parliament.

However, we are a signatory of the SADC Declaration on Gender and Development of 1997, and its addendum on the prevention and eradication of violence against women, signed by heads of state in 1998. Article H of that declaration refers to a minimum of 30% representation of women in decision- making structures.

We have made substantive progress in advancing women in political and decision-making positions, especially in the public sector. The private sector still remains a challenge, even though matters are progressing there. We have reason to celebrate the great strides this government has made in advancing gender equity and representivity.

The Office on the Status of Women resides in the Presidency. The gender machinery has been implemented effectively, with each department having its own gender division. Women currently comprise a significant part of the South African Cabinet. Within Cabinet the representation of women in 2004 was 42,8%, which is a 9,5% increase from 33% in 2003. In 2002, women made up 57,1% of Deputy Ministers. In 2003, the figure was 50% and, in 2004, the figure stood at 47,6%.

The decrease in the percentage does not translate into a decrease in the actual number of women, but to an increase in the number of Deputy Ministers. For the first time in the history of the country, the Deputy President is a woman. Of the 28 Ministers, 12 are women of the 19 Deputy Ministers, 10 are women, and of the nine provincial premiers, four are currently women. Please give South Africa a big hand. [Applause.]

There are six office-bearers in the National Assembly, and women currently fill three of these positions. There are currently 400 members in the National Assembly, of these 134 are women. I am told the number has increased, but the last time I checked the statistics, they came to 134.

Women make up 52% of the adult population in South Africa, and 41% of the working South African population. They constitute 19,8% of all executive managers, 10,7% of all directors in the country, and 6,2% of all CEOs and chairs of boards. In essence, the above means that, altogether, 4% of chairs of boards in South Africa are women, while only eight CEOs in South Africa are women. Both statistics have increased since 2004, where only 11 chairs of boards were women and seven CEOs were women. I think a lot of work has to be done, but at least there is some improvement. Politics should involve an equal partnership between women and men, afford equal standing to the needs and interests of both sexes, and allow both women and men to participate in the pursuit of such needs and interests.

This principle of gender equality has been entrenched in numerous treaties, including the United Nations Charter, the Convention on the Elimination of All Forms of Discrimination, and its protocol, which we rectified earlier in the year, and the Beijing Declaration and Platform for Action. However, statistics indicate that many parliaments throughout the world are still dominated by male representatives, and are thus neither gender balanced nor gender sensitised.

I am aware that all South Africans throughout the country are committed to ensuring that we do achieve gender representivity in all spheres of our society. However, one of the key challenges is: what do we do once we get there? We need to make a difference, move from commitment to implementation, and lift other women as we rise. Don’t leave them down there.

Remember, it is very lonely up there, and one would need a foundation of people that will form a support base, so that when the challenges that come with the territory cause you to trip and fall, there are warm hands that encourage you to rise and fly again.

We need to qualitatively change the lives of those who are most vulnerable. Gender equity means that we need to raise our voice to be the champions of fairness and equity. It also means that we need to impress upon our girl children that abuse is wrong and must be confronted at all times. More importantly, there is a greater need to raise strong girl and boy children, who have a heightened sense of botho, Ubuntu, tlhompho le maitseho (humanity, respect and manners).

Advancing women’s issues in Parliament ought to lead to policies, laws, new attitudes, and a public culture that empowers women in broader society. This is less likely to happen if women do not have a public face, and if those in the corridors of power, marginalise women’s issues.

It has been shown that setting minimum levels of women’s involvement in politics and other spheres, forces organisations to examine their attitudes and policies. It forces them to develop criteria and draw on wider pools of talent, and make concerted efforts to attract people they would normally use, but who prove to be highly talented members of Parliament.

It is important that Parliament is composed of members who are, in turn, a reflection of the broader society in terms of gender, race, and its socio- economic diversity. Surely, we can be proud of what we have achieved. In fact, hon members, we should, as a challenge, put it to Parliament to review its electoral law, so that all parties reflect agreed minimum women participation in election lists, so that we do not only rely on the ruling party’s commitment to affirming women, but on South African law for gender parity which is already in our Constitution.

In the upcoming local government elections, I know for a fact that the ANC candidates’ list will reflect 50:50 of both men and women. I challenge the remaining parties to follow suit.

We need to create a chain of sisterhood that encourages support and growth within our ranks. It is a strong chain that identifies, nurtures and promotes talent. I am challenging all of you present here to begin to build a legacy that we will be proud of by stretching the net much wider. Let us ensure that through all our activities, be it in the public or private sector, a lot more women do have a better life.

Let us link with other women’s groupings, and influence the shape of things. Let us destroy the chasm that separates us from our communities. Let your leadership and knowledge have a dramatic impact on our sisters and mothers in the rural areas, by including and not excluding them from the net of empowerment and development.

As human beings, we have a lot to learn from the animal kingdom. You would understand with my environmental background that I can never leave the animal kingdom.

In conclusion, I am going to tell a story of robins. Robins fly by making wonderful patterns on the skyline. They do this with the first one telling the next one to turn left or right. This message is passed from the first bird to the last. At no stage do you hear the next robin saying, “I am too stressed to turn left, let somebody else do it.” [Laughter.]

As women we need to unite and make synchronised patterns on the political, social and economic landscape, because it is only as a united force that we can make significant and lasting change. Let us take up the baton and raise our national flag on high. “Igama lamakhosikasi. Malibongwe.” [Let the name of women be praised.] [Applause.]

Ms J A SEMPLE: Chairperson, hon members, I would like to start off by thanking Parliament and the Democratic Alliance for allowing me to represent them in New York this year. It was the most wonderful experience to see thousands of women from all over the world congregating at the UN and practically taking over that huge office and building for at least two weeks. Thank you.

I am also pleased today to be able to talk about women and the environment; something that I know is close to the Deputy Speaker’s heart and to mine. As the primary caregivers of the family, women bear the worst consequences of policies that ignore principles of environmental sustainability, since they must cope with the increased difficulties of the day-to-day survival of their families.

The Beijing Platform for Action and Cedaw both call for women to be actively involved in environmental decision making, for gender perspectives to be integrated into policies and programmes, and for national, regional and international mechanisms to be established, to assess the impact of environmental policies on women.

Beijing +5 also emphasised women’s rights to own land. The extent to which these mandates have been implemented varies greatly throughout the world, but despite country differences, women everywhere are mobilising around the issue of access to and control over natural resources.

Women are major contributors to the wellbeing and sustainable development of their communities and nations, and to the maintenance of the earth’s ecosystems, biodiversity, and natural resources. Very often, the survival of their families depends on the sustainability of the surrounding environment in terms of water, firewood, indigenous plants and animals, and the soil.

Across the globe, women are working to become more involved and more adequately represented in decision-making on natural resources. South African women are proud to have Madam Rejoyce Mabudafhasi as our Deputy Minister of Environmental Affairs and Tourism. In those areas where governmental representation is low, women still work at grassroots level on environmental issues.

In Kenya, for example, most community-based organisations working on environmental conservation are women led. Wangari Maathai, assistant Minister for Environmental and Natural Resources, and the chairperson of the Greenbelt Movement, won the 2004 Nobel Peace Prize for her contribution to the environment, sustainable development, democracy and peace.

It was my great pleasure to listen to her on several occasions during the New York declaration summit, and to present to her a gift on behalf of the South African delegation. Ms Maathai correctly points out the direct correlation between democracy, rights and the environment. It is always the poorest communities with the least rights that suffer most from environmental degradation.

Her Greenbelt Movement planted over 20 million trees in Kenya alone, which helped prevent soil erosion, while at the same time providing shade and fuel. This is why I believe every house that is built in South Africa should have a tree planted in its yard. If it’s a fruit tree, all the better, as it will also be a food source.

We learnt of women in the Pacific Islands who have been developing partnerships with national and international agencies, using a community approach to raising awareness. For example, rural women have worked with the World Wildlife Fund for Nature on a wetlands conservation initiative. Women in CARICOM countries are also highly involved in civil society organisations that work on environmental affairs, and the ministries and departments of gender affairs have played a part in supporting these initiatives.

However, in other parts of the world, things are not going so well. In Bangladesh, for example, women remain largely absent at all levels of policy formulation and decision-making in natural resource management, conservation, protection and rehabilitation, and their experience and skills too often remain marginalised in policy-making and decision-making bodies.

Even bodies like the EU, which one would expect to be more gender compliant, have failed to develop a gender perspective in environmental policy. No legislation has been adopted that deals with women and the environment directly, even though there is increased knowledge that environmental hazards impact on women and men differently, such as the possible link between breast cancer and high levels of toxic chemicals in women’s bodies.

I would like to show you a picture that probably only the front people can see. This is actually in China. It shows a mother and daughter standing in a sorghum field with a highly polluting power station behind them. That picture could have been taken in any one of our environmental hotspots in South Africa, like Vanderbijlpark or Mpumalanga.

In many parts of Southern Africa women are not adequately involved in the management of the environment. We welcome Pam Yako’s appointment as Director-General of our Department of Environmental Affairs and Tourism, and we hope that under her guidance, environmental policies will now have the gender perspective that was previously lacking. Perhaps we should consider having a feminine EIA process to assess the impact of environmental policies on women, both rurally and in urban areas.

Environmental degradation disproportionately affects women and subsequently increases their workloads in the informal sector. In Somalia, grassland degradation, marine pollution, deforestation and coastal desertification increase the amount of time women must spend looking for fuel wood, and threaten the livelihood of women farmers. Have any similar studies been done in South Africa? We have very much the same environmental problems, and no doubt they have the same effect on women.

Indigenous women throughout the world are hit hardest by environmental degradation. In Canada, environmental contaminants such as persistent organic pollutants, known as POPs, have bio-accumulated in Artic wildlife, and subsequently have impacted negatively on Inuit women’s health through their diet, which primarily consists of meat.

In the US, POPs disproportionately affect native American women and children, as toxic runoffs from factories near tribal land poison water and food sources that are then consumed by women and transferred to their children through breast milk. Do we know what effect air pollution hotspots in South Africa are having on our women?

Ecological disasters also impact on women in particular ways. The December 2004 Indian Ocean tsunami made no distinction between men and women in the death toll list, but according to the UN it produced gender-specific aftershocks, ranging from increasing women’s traditional role in caring for the sick, to an escalation in cases of rape and abuse. Once again, drought, floods and shack fires, probably have the same effect on South African women. We need to do specific environmental research to find out exactly what these effects are.

At the 2002 World Summit on Sustainable Development held in South Africa, women activists succeeded in winning landmark recognition of women’s rights to inherit land. Yet throughout the world there are still laws blocking women’s rights to inheritance and ownership.

It would seem that gender equality and equity in the environmental sector have not yet been achieved, not only in South Africa, but throughout the world. Women’s access to and control over resources needs to be safeguarded, and their skills, knowledge and experiences and their practical and strategic needs should be respected. South African women must hold the government to account in ensuring that a rights-based approach to gender and the environment, as specified in the Beijing Platform, is promoted. I thank you. [Applause.]

Dr U ROOPNARAIN: Hon Chairperson and hon members of this House, I would like to begin my speech by thanking the Inkatha Freedom Party for allowing me the opportunity to represent my party at the New York conference.

The 49th session of the Commission on the Status of Women provided a unique opportunity to review progress made towards gender parity and equity. The last two decades have witnessed far-reaching changes shaped by the influx of women into the public sphere. The results of these events include shifts in the labour market, educational achievements, significant decreases in fertility rates and a modification in relationships within the family and in certain decision-making areas.

Important issues were discussed at the conference, but the greatest learning experiences at the Beijing Conference in New York didn’t happen during speeches and resolutions. They happened during conversations. They begin as a collective learning process. They happen when women of different cultures and backgrounds share experiences and information.

My speech is premised on such an intervention. I was deeply touched when I heard accounts of women with HIV/Aids, women with disabilities, women who were victims of armed conflict, women who were affected by the tsunami disaster, and many other accounts.

One point was clear: It is women’s voices that are heard above all others, women are the advocates, and they are the activists. It is women who are moved to act selflessly and speak publicly, often risking prejudice, abuse or violence in order to improve the lives of others. The Convention on the Elimination of Discrimination Against Women underlines that:

. . . all human beings are born free and equal in dignity and rights and    that everyone is entitled to all rights and freedoms set forth therein,    without distinction of any kind, including distinction based on sex.

Yet, what we as delegates listened to were in total contempt of this convention. Woman after woman, from one country after another, spoke about the inhumane oppression they suffered.

One factor that incessantly reared its head was the situation of HIV/Aids and women, where women now account for half of all people living with HIV. Why are more women vulnerable to the infection, you ask? Why is it that so many are women, even when it is the men who have more sexual partners outside marriage? Usually, it is society’s inequalities that put them at risk.

A range of factors conspire to make women more vulnerable - poverty, abuse, lack of information, coercion by older men, and men having several concurrent sexual relationships. But one does not need to attend the Beijing Conference to discover this. Here at home, young women are desperate for the three Cs, as they are called – cell phone, clothes and cash. And often, they engage in sexual relations with older men, ignorant of the partner’s status.

Let me be clear: HIV/Aids is the most ferocious assault ever made by communicable disease on women’s health. But it does not stop there. Other calamities include female genital mutilation, violence against women and sexual violence in particular, rape as a weapon of war, especially in countries like Rwanda, Darfur, Northern Uganda, Eastern Congo, and marital rape.

I pause to point out that studies now show that, in some parts of Africa, the prevalence rates of HIV in marriage are often higher than they are for sexually active single women in the surrounding community. Who would have thought that this was possible?

One thing was clear at the conference: It cannot be business as usual. We must be more strategic in our efforts to mainstream gender into the overall macrocontext and the microcontext of communities, and certainly in our response to HIV/Aids.

Another area that deeply touched me was the area of women with disabilities and their vulnerability. Time and time again, women spoke about their experiences. Very often, mentally challenged women became victims of pornography. These women had no idea that they were being photographed, only for their photographs to be published in pornographic material and on websites.

Physically challenged women gave chilling accounts of how men repeatedly raped them, and left them totally naked in a bathtub. These women were wheelchair-bound and could not access help. Sometimes men deliberately rearranged the furniture in the house without telling their blind partners. This meant further hurt and injury. Many women gave accounts of how people view disabled women as being asexual.

Research shows that women with disabilities face double oppression. Women cannot continue to be denied access to fundamental rights, fundamental health care and reproductive care.

When landmines, domestic abuse, genital mutilation and other forms of violence continue to tear at the lives of women around the globe, we need action. When prejudice, ignorance and other barriers stop women with disabilities from getting the nutrition, physical activities and other tools they need to survive, we need action.

We need to strive and work for the day when issues affecting women are not dealt with as a side issue, a day when research on women with disabilities is part of all research, and when health care for women with disabilities is part of all health care.

Women and children make up a large majority of the world’s refugees. It is a violation of human rights when women and girls are sold into slavery and prostitution. It is a violation of human rights when women are doused with gasoline, set on fire and burnt to death because their marriage dowries are deemed too small. It is a violation of human rights when individual women are raped in their own communities and thousands of women are subjected to rape as a tactic or prize of war.

It is a violation of human rights when a leading cause of death amongst women aged 14 to 44 is violence. It is a violation of human rights when young girls are brutalised by the painful and degrading practice of genital mutilation. It is also a violation of human rights when women and young girls are denied access to antiretroviral treatment. It is a violation of human rights when babies are raped and killed.

We need to look forward to the day when governments across the globe understand that women constitute half of everything that affects mankind, and women have to be involved in absolutely everything. The political leadership of Africa needs to be lobbied with greater intensity on issues of gender.

The IFP adopts this report, but we cannot just deliberate and have dialogue on issues emanating from this report. We need to calibrate what recommendations can be taken forward. And these factors cannot be addressed piecemeal. These are non-negotiable. Change can only be brought about through education of young girls, through legal or social reforms.

Finally, I would like to end by repeating what one representative told us, “What will kill us more than Aids is despair and hopelessness; what we need is hope”. Only if we put our report into action will we be able to answer the question: Who will give Africa hope and who will look after Africa’s children? Only we in this House can answer this question. I thank you. [Applause.]

Ms N C NKABINDE: Chairperson and hon members, it is good that the international community remains dedicated to the Beijing Declaration, as well as the Beijing Platform for Action. Sadly, it seems that the United States of America remains opposed to important aspects of gender equality. Despite this, we can only hope that the international community will not waver in their resolve and will continue with the vital work of implementing the goals of Beijing +10.

As with all long-term international programmes, the important thing is to keep momentum and ensure that regular reviews show progress and do not become an end in themselves; in other words we must avoid the talk shop syndrome.

In this regard, the various resolutions and recommendations reported on by the South African delegation are welcomed on two fronts; firstly, because it shows the continuation of a broad international front in support of gender equality, and secondly, it demonstrates South Africa’s leading role in this campaign.

Three of the resolutions deserve special mention, the economic advancement of women, the elimination of the trafficking of women and children and, finally, the mainstreaming of a gender perspective into all national policies and programmes. It is our hope that these resolutions will result in significant improvement in the quality of life of women around the globe. In our view, these three resolutions tackle the problem of women being marginalised and exploited in specific and relevant ways.

Turning towards the recommendations of the report, the UDM supports these wholeheartedly. We urge government and this House to pursue the policy and legislative development required vigorously. The leading role that South Africa is playing in the international multilateral gender campaign, must at all times be underpinned by our speedy domestic implementation of the resolutions.

Therefore, the three resolutions mentioned earlier, must be implemented within South African society immediately. Legislative measures against the trafficking of women and girls must be introduced as a matter of urgency; we must not countenance the possibility of our country as a haven for this modern-day slavery. Similarly, the implementation and scope of our efforts to stamp out violence and abuse of women must be stepped up. Our mothers, sisters and daughters deserve to be free from the fear of rape and abuse.

The participation of women in the South African economy, as well as mainstreaming gender issues within national programmes, require renewed attention. Whilst these are not legislative issues, but rather a question of policy, we need to ask whether the existing mechanisms are sufficient. The question we need to ask is whether gender equality truly and adequately informs all major economic and policy decisions. If the answer is, no, then I would suggest that this House must be in the forefront of designing new mechanisms to ensure that the needs and concerns of women are heard and heeded. I thank you. [Applause.]

Ms F BATYI: Chairperson, members of Parliament, South Africa has made substantial progress with regard to the protection of women’s rights and gender equality, as enshrined in our progressive Constitution, which states that neither the state nor any person –

. . . may unfairly discriminate directly or indirectly against anyone on    one or more grounds, including race, gender, sex, pregnancy, marital    status, ethnic or social origin, colour, sexual orientation, age,    disability, religion, conscience, belief, culture, language and birth.

Overall, the ID wants to commend the South African government on its efforts to uphold the constitutional provision by means of the Beijing Programme for Action. We fully support the work of the institutions established under our national gender machinery and are very pleased with the accompanying progress and successes.

The increase in the number of women in the National Assembly after our last general elections, and their lobbying for laws that promote gender justice, such as the Domestic Violence Act, the Maintenance Act, the Recognition of Customary Marriages Act and the Choice of Termination of Pregnancy Act, are achievements we should all take pride in.

Moreover, the new credit scheme for small-scale farmers, as announced by Finance Minister Trevor Manuel in his budget speech this year, provides ample opportunity to ensure that women have access to land, as well as the means to work their land.

Finally, the appointment of a female Deputy President has been an invaluable step by our President to include women in important decision- making positions. [Applause.]

Yet, many challenges remain to be addressed; women still constitute the majority of the poor, homeless, jobless and dispossessed, where about 57% of all unemployed people in our country are women and 80% of female-headed households have no wage earners.

In addition, South Africa continues to have very high levels of sexual and domestic violence, and our courts are still unable to deal with rape cases quickly and sensitively. Illiteracy and lack of skills are still very predominant amongst our women, especially in rural areas, which make it difficult for them to access jobs and take part in our mainstream economy.

Finally, women, especially young women, are more vulnerable to the HIV/Aids pandemic, as they are still powerless when it comes to negotiating safe sex. The lack of health resources in schools and the absence of Aids training information centres in rural areas exacerbate this problem.

In conclusion, the ID agrees with the NGO sector that the Beijing Platform for Action serve as a minimum standard. South Africa and the rest of the world should aim to achieve much more. South Africa has done extremely well as far as legislation is concerned, but this means nothing if implementation and a change in society’s attitude are not part of the package.

We need to get back to basics and focus on action – action from government, civil society and women themselves. Only then will we as government and citizens of this country do justice to the right to equality as entrenched in our constitutional Bill of Rights. I thank you. [Applause.]

Ms M R MORUTOA: Chairperson, Madam Deputy Speaker, hon Ministers, hon Deputy Ministers, hon Deputy President, hon members of Parliament and the public at large, I greet you all.

Sihlalo, ndizakuthetha ngohambo lwamalungu ePalamente awayeye kwinkomfa eyayiseMelika isaziwa njenge 49th Session of the United Nations Commission on the Status of Women eyayibanjelwe e-New York ngomhla wama-28 kuFebruwari ukuya kumhla we-11 kuMatshi 2005.

Ndizakuthetha ngovavanyo lwamazwe onke jikelele mayelana nezivumelwano ezazenzwe apho nguMzantsi Afrika, owayeyinxalenye yamanye amazwe kwinkomfa yesine yeZizwe Ezimanyeneyo, kwinkomfa yamakhosikazi eBeijing naseChina. Ndaye ndizakuchaza nemeko yethu apha eMzantsi Afrika malunga nezozigqibo zazithathwe kuloo nkomfa. (Translation of Xhosa paragraphs follows.)

[Chairperson, I rise to give a report about the visit of some members of Parliament to the 49th Session of the United Nations Commission on the Status of Women, which was held in New York in the United States from 28 February to 11 March 2005.

I will also touch on the review and appraisal of the Beijing Declaration and Platform for Action that was adopted in Beijing, China, during the United Nations Fourth World Conference on Women by various countries, including South Africa. The status and position of South Africa with regard to the decisions that were taken at that conference will also be reflected in this report.]

The 49th session provided an opportunity to review progress made towards gender equality since the Fourth World Conference on Women held in 1995. The objective of the session was to reiterate, renew and enhance the Beijing commitments.

The Parliament of South Africa has a particular role to play with regard to overseeing the implementation of the Beijing Platform for Action. One of the primary tasks of the Joint Monitoring Committee on the Improvement of Quality of Life and Status of Women is to monitor and evaluate progress made in relation to enhancing the quality of women’s lives in South Africa, with specific reference to the government’s commitments, such as the Beijing Platform for Action, the Convention on the Elimination of All Forms of Discrimination Against Women, Cedaw, and any other specific international instruments.

The programme of the 49th session of the Commission on the Status of Women was structured around six thematic areas: Firstly, remaining challenges in relation to statistics and indicators. We must build on the high-level round table discussions we had when organising the 48th session of the commission in 2004, as well as available data on the world’s women’s trends and statistics of 2005 and the World Survey on the Role of Women in Development.

Secondly, future perspectives on the promotion of gender equality through the eyes of young men and women, and this was also discussed at the high- level round table discussions, as was the role of regional and intergovernmental forums in promoting gender equality.

In addition to the main programme outlined above, the African women organised a panel discussion on monitoring gender equality commitments. The International Parliamentary Union also organised a session to explore the role of parliaments in giving effect to the promotion of gender equity.

Various NGOs organised a series of side events, which ranged in thematic focus. These included a session on violence against women, economic empowerment of women, women and the environment and the trafficking in women and girls, etc.

Maybe I should hint at the declarations emanating from the 49th session of the Conference on the Status of Women, namely that all governments reaffirm their commitment. My focus will be on some of the resolutions of the conference, such as the elimination of the trafficking of women and girls for all forms of exploitation.

Internationally, the trafficking of persons has been identified as a serious threat to human security and development. It thrives because it is extremely profitable, with relatively few risks attached. It is easier to move human cargo through borders and past immigration officials than it is to traffic drugs or weapons. In Africa the situation is exacerbated by the collapse of the rule of law in certain countries, widespread corruption and failure to implement existing antislavery laws, which allows perpetrators to go unpunished.

Trafficking of people, especially women and children, is considered to be the third largest source of profits for organised crime next to drugs and guns. The trafficking of women has become a global problem of such magnitude that Interpol has established a working group on trafficking in women for sexual exploitation.

The working group initially comprised 40 member countries, mainly from Europe. Interpol has devoted its attention in 2005 to increasing the participation from Africa, Asia and the Americas. The purposes for trafficking persons are varied, including sexual exploitation, forced labour or slavery practices, servitude, forced marriages, adoption or the removal of organs or other body parts.

Human trafficking for sexual purposes constitutes a form of violence against women and children and serves to bring about systematic gender inequity, as it reinforces the premise that women and children are commodities. The overwhelming majority of victims of trafficking for sex work purposes are women and girls, while perpetrators are predominantly men.

Limited research has been conducted on trafficking in South Africa. There are no official statistics on the number of persons trafficked to and from South Africa, particularly into the sex industry. South Africa does not have antitrafficking legislation. This is one of the factors that make this debate to be of utmost importance. We need to hasten the process of legislating the antitrafficking legislation. South Africa is considered to be mainly a country of destination for victims of trafficking. It is also considered to be a transit point of trafficking operations between developing countries and Europe.

Research conducted by Molo Songololo has brought this information to the joint monitoring committee. The findings continue to tell us how street children are coerced or forcibly abducted by men and taken across the border to towns and asparagus farms in the Eastern Free State. They are then held captive in private houses and are sexually assaulted over the course of a few days. My good people of South Africa, we cannot keep quiet about this.

One of the resolutions concerned violence against women - both domestic violence and violence perpetrated in public arenas. This remains unacceptably high in South Africa. Gender-based violence perpetrated against women is widespread. Its occurrence cuts across geographical areas, race, class and cultural boundaries.

South African government structures place considerable emphasis on the use of quantitative data to inform policy and hence their spending priorities and the availability of accurate statistics on gender-based violence are key factors when determining government policy interventions. Unfortunately the joint monitoring committee, when it exercised its oversight role last time, discovered that these statistics were not readily available. If we cannot collate reliable statistical information pertaining to violence against women in the domestic arena, we will rely virtually on speculation on this level of violence.

The development of an integrated response to violence against women is an ongoing and evolving process. Measures have thus far included the following: Policy framework development and law reform - this is a comprehensive law reform programme that has sought to strengthen the integrated approach to violence against women.

Law reform measures give priority to sexual offences and domestic violence and a specific focus is placed on crimes such as trafficking in women and children and child pornography. In terms of law interventions, the focus is on bail, sentencing, victim empowerment and integrated responses.

Administratively, guidelines to support the implementation of laws have been developed and include, for example, the sexual offences. Institutional mechanisms have also been created to address violence against women. With all the tools I have mentioned in place, we should be experiencing minimal domestic incidents, but just the opposite is true: More women are being killed by their partners.

Previously when we struggled for the emancipation of women, we knew that women were triple oppressed: by virtue of their colour, at home, and at their places of work. This escalated into domestic violence, intimate femicide, and trafficking of women and children. These offences became first class enemies to women and society.

Gauteng has been identified as one of the provinces where intimate femicide is rife. A recent incident was related to a power struggle between a husband and a wife, and what aggravated the situation was that the wife was given authority over their property, which previously was a family house. This means that women are not safe in their marriages.

Intimate femicide or intimate female homicide refers to killing of women by intimate partners. This is one of the most extreme forms of violence against women. International studies have linked the occurrence to a history of domestic violence, the risk increasing where there is trial separation or actual separation.

A study conducted in 1999 showed a link between the ownership of legal guns and incidents of femicide. One in five of the perpetrators of intimate femicide, ie 20,6%, had a legal firearm, compared to 3,5% of the perpetrators of nonintimate femicide who had alcohol abuse problems, and compared to 12,5% of the perpetrators of nonintimate femicide. Only 37,3% of female homicides resulted in convictions. Lack of evidence was the reason given in 69,9% of cases in which the perpetrators were acquitted.

The joint monitoring committee strongly appeals to male partners to be part of the eradication of this source of violence against women. We know that the Medical Research Council, MRC, and the Commission on Gender Equality hosted a workshop on 1 June 2005, at which the findings of the MRC’s national study on intimate femicide were presented.

In addition, here in Parliament, tomorrow, 24 August 2005, we are hosting a discussion between civil society, members of Parliament, the Women’s Caucus and their male counterparts, business people and, of course, girl children. This is to describe the problem of intimate femicide in South Africa; to identify the factors associated with intimate femicide and violence against women and children; and to compare the management of women killed in domestic violence.

If we, as parliamentarians, husbands, civil society and nongovernmental organisations, do not make this our responsibility, we will experience a negative result in the implementation of our laws. I thank you. [Applause.]

Mr L M GREEN: Chairperson, the ACDP expresses its appreciation for the excellent task performed by the parliamentary delegation to the 49th Session of UN Commission on the Status of Women.

The report compiled by the delegation emphasises that women have a significant role to play in restoring order to this country. Women are the cornerstones of our society. Yet they suffer extreme abuse, exploitation and degradation. It is extremely sad when government passes legislation that renders women even more vulnerable, or when they neglect to pass legislation that would effectively address the problems of women.

Parliament is urged to take cognisance of the references to legislation, contained in this report, regarding pornography and child trafficking. The ACDP is particularly pleased to note that the link between pornography and violence has finally been acknowledged without reservation. We support the call for legislators and civil society to protect our women and children from the dangers of pornography.

We no longer have to wait for the official release of statistics to see the devastating effects of moral degeneration on our women, our children and our society. All South Africans know that babies are being raped on almost a daily basis. We are all aware that children from as young as seven years of age are being sold into prostitution. We are aware that prostitution leads to misery for women and children: What kind of society are we trying to create?

This question is also posed by the delegates in their report. At the 2004 Women’s Parliament certain South African women’s groups unfortunately voiced their support for the legalisation of prostitution. However, the Beijing +10 delegation is calling for a review of that demand. They ask the question: What will better serve to protect women’s rights and their social status? Is it the legalisation of sex work or its criminalisation?

The ACDP is of the view that there are many unintended consequences in legalising prostitution. An obvious consequence would be a rapid increase in the use of children in prostitution and trafficking. The absence of legislation pertaining to trafficking of women and children in South Africa - and this has been referred to by several speakers at this podium - has meant that offenders have been given almost a free rein to abduct, prostitute, degrade, abuse and exploit. Trafficking separates mothers from their children. It exposes children to being used in pornography and makes women and children more vulnerable to violence.

In conclusion, August is the month for women. Let us make a concerted effort to address these issues that affect the lives of South African women so profoundly. It is encouraging to witness the wisdom and clarity of mind with which women are attacking the obstacles that confront them. Let us harness all our strength and give them all our support in any way we can. I thank you.

Dr S E M PHEKO: Mr Chairperson, our national liberation will be meaningless if it allows the persistence, in any form whatever, of the oppression, suppression, exploitation, depersonalisation, discrimination against and social degradation of women.

The Beijing Platform for Action provides our nation with a scorecard and we should do everything in our power to advance everything that will lead to social equality between men and women.

The representation of women in this Parliament and in South Africa’s Cabinet is commendable. The call by Salga for 50% representation of women in the upcoming local government elections is a call that all political parties must heed. We also need to call for the increased representation of women in the private and economic sectors.

African women are taking up the banner of advancing equality in our society evidenced by initiatives such as the fatherhood project and men as partners in the fight to end gender violence. However, many challenges remain. South Africa has one of the highest levels of gender violence in the world. Whatever the statistics, one rape is one too many.

The long-awaited sexual offences legislation has been dormant in this House for a long time. This is a scandal in a country with high levels of gender violence. The implementation of this legislation is long overdue. We cannot miss the opportunity to do so during this period of Beijing +10, before the end of 2005.

Ten years after Beijing we should celebrate African women’s determination and our liberation struggle to eliminate women’s landlessness, homelessness, privatisation of water and health care, joblessness, illiteracy, poverty, HIV/Aids, violence against women and negative cultural practices, which return women to an archaic conception of tradition that impacts negatively on women in our society.

Far from creating division, the struggle of our women is one of the key instruments to speed up liberation and social advancement of the African people. Let the Beijing Platform for Action move us from broken promises and rhetoric to action. The PAC supports the report of the Parliamentary Delegation to the 49th Session of the UN Commission on the Status of Women. Thank you. [Applause.]

Ms S RAJBALLY: Chairperson, all protocol observed, from 1991 South Africa committed itself to being a democracy, a democracy that shall be exemplified by the values of equality, freedom and human rights enshrined in our national Constitution of 1996 that governs as the supreme law of the land.

Since 1994 we have experienced a total metamorphosis of South African life and society. No matter our colour, creed, religion or sex, we are free and equal. With the machinery to pave the way to a true democracy in South Africa, it is for South Africans to seize the opportunity to be whoever they want to be.

However, even with a government of great competence to steer South Africa to its true democracy, the aftermath of many years of exploitation by the apartheid regime has left many challenges on our path to success. In ten years, South Africa has achieved so much and has developed into a great nation.

One of our greatest challenges has been to achieve gender equality, and the MF is proud that South Africa is working hard to ensure the advancement and the development of women in all sectors. However, loopholes and challenges do exist and the MF especially expresses its concern on the matter of violence against women.

We are proud to be part of the Beijing Platform for Action and its commitment to improve the status and quality of life of women. We are committed to the protection and status of women globally. South Africa is a country that firmly advocates the adherence to and enforcement of human rights and stands as a strong supporter of the Beijing Platform for Action’s concerns that clearly correlate with our domestic concerns.

In view of our report at the Beijing +10 on our progress in achieving our commitment to the Beijing Platform for Action, the MF is proud of our achievement. The report, which engaged the contribution of our NGOs, served to reflect the true status and progress domestically.

We are pleased that this strategy of a report was opted for, as it reflects South Africa’s commitment to true advancement. Matters covered by the South African report reflect on issues of great concern. The individual reports of NGOs are strongly supported.

This commitment extends to the greater continent of Africa and we are pleased at the achievements attained at the 7th African Regional Conference on Women that took place in October 2004 in Addis Ababa, and the recommendations made to the African continent are supported.

It is hoped that our African brothers and sisters excel at these recommendations domestically and the liberation of women of South Africa would be shifted from paper and words into reality.

The MF reaffirms its commitment to the Beijing Platform for Action and we acknowledge that success domestically is beyond government and should be all of South Africa’s commitment.

We are equal and free. Stop all violence against women and children. Women celebrate who you are; you have the power to be whoever you want to be. Malibongwe! Igama lamakhosikazi! [Let it be praised! The name of women!] [Applause.]

Mrs S M CAMERER: Thank you, Chairperson. I would just like to say a few words about the resolution referred to on page 34 of the report to the commission which ensures that UN member states recognise the need to reduce demands for trafficked women and children. This was introduced by the US but the report makes it clear that South Africa demanded a holistic approach to trafficking; saying that focusing on demand was too narrow. Our delegation insisted that reference should be made to Cedaw and other key international instruments, as well as contributory factors such as poverty and unemployment.

South Africa, which eventually co-sponsored the resolution, got its way and the final text of the resolution called on governments to take action to address root factors, including poverty and gender inequality as well as external factors that encouraged trafficking for protection and other forms of commercialised sex and to take steps to criminalise trafficking in persons.

It is ironic that South Africa was so upfront about this on the international stage because as far as our own laws to criminalise trafficking are concerned, we have not got our house in order. In spite of the fact that the UN Protocol to prevent trafficking in persons is in force in South Africa, we do not have any legislation as yet which specifically outlaws trafficking in persons, especially women and girl children for the purpose of sexual or any other form of exploitation.

This is in spite of the fact that there is ample evidence that trafficking is on the increase in our subcontinent. The International Organisation for Immigration contends that there is one long grass pathway between the DRC and Cape Town with minimal border control and the main destination of victims of trafficking from sub-Saharan Africa is South Africa – our country.

I have recently listened to briefings by the SA Police’s sexual offences and child protection unit as well as by specialists in sexual offences from the NPA, and both deplore the fact that South Africa still has no specific legislation outlawing trafficking in persons, in spite of years of requests by these authorities and years of research by the SA Law Reform Commission.

Such legislation should also ensure that counselling and assistance to victims of trafficking be made available by government. The NPA points out that it is extremely difficult to prosecute successfully for trafficking in the current legal environment.

As a signatory to the UN Protocol South Africa is obliged to adopt legislative measures to establish trafficking as a criminal offence but we are going about it piecemeal. For example, a provision has been included in the recently passed Children’s Act to outlaw trafficking in children for all purposes.

However, these provisions of the new Act have not yet been enacted so the police and prosecution services still have to rely on section 28 of the Constitution, which protects children, common law crimes such as abduction, kidnapping, rape and indecent assault, and some statutory provisions in the old Child Care Act and Sexual Offences Act which are ineffective. They have even tried using the Prevention of Organised Crime Act, with limited success.

Similarly for women, the Sexual Offences Bill, when it last served before the Portfolio Committee on Justice prior to the April 2004 general election contained a clause outlawing trafficking in women and children. This was included at the specific request of the DA, as I had submitted a Private Member’s Bill outlawing trafficking, which was supported by the relevant committee of Parliament and the Department of Justice agreed that it should be incorporated.

In the meantime, the Sexual Offences Bill has disappeared back into the Department of Justice where it has remained for the past 16 months! Repeated questions to the Minister of Justice as to when it might return to Parliament have elicited the response that she regards it as a priority and we will get it back this year. But it is already nearly September and there is no sign of the Bill!

The bottom line is that as things stand now South Africa has not complied with its international obligations to criminalise trafficking, and the government is not assisting the law enforcement agencies to combat this growing scourge in our sub-continent. We can only appeal to the government to get a move-on, and I am delighted to see our new Deputy President, the Leader of Government Business, present at this debate. The DA will soon be making its own submissions for a comprehensive anti-trafficking Bill. Thank you. [Applause.]

Mr T M MASUTHA: Chairperson, Deputy President, let me start by saluting the many heroines, sung and unsung, standing and those that have fallen, for the gallant demonstration of dedication to struggle that they displayed in 1956 when they marched on the Union Buildings, as the Bapedi would say: “Mmago ngwana o swara thipa ka bogaleng.” [If a woman wants to achieve something she has to be courageous.] [Applause.]

I am deeply honoured yet humbled at having been afforded this opportunity of addressing you on this subject, on which I am least qualified as indeed are, in my humble opinion, all men. For, as men, we have never known how it feels to conceive and give birth to new life, and to experience the pain of delivery at childbirth; the anxiety associated with the intimate responsibility of ensuring the survival and development of this new life; the agony of its paternity being denounced and having to face the challenge of raising it single-handedly whilst the paternal side of this joint venture steps aside, completely indifferent to the situation.

Yes, indeed, social and economic inequalities between men and women in most societies of the world, including our own, persist because human society, steeped in its patriarchal legacy, continues to have cold feet and will not take the plunge into the unchartered waters of gender equality. Yet many lessons are there to be learnt from nature itself, even by observing the social structures of various species in the animal kingdom itself.

In that kingdom, for example, it is generally unheard of that males perpetrate violence against their offspring and female counterparts, let alone within the same family unit. On the contrary, the males would perform a supportive and protective role and share in the core familial responsibilities of caring for, and protecting, the young.

But where could things possibly have gone wrong in our human society, resulting in phenomena such as paedophilia, infanticide, femicide – the killing of women - and other violent crimes against women and children? Where did we lose our inherent human attributes of compassion, care and responsibility commonly known as ubuntu, particularly for those who will ensure our continued existence into the future, namely the women and children they give birth to?

It is because of this and other similar concerns that the world gathered in Beijing in November 1995 and made the following declaration, and I quote:

We, the governments participating in the Fourth World Conference on Women, gathered here in Beijing in September 1995, the year of the 50th anniversary of the founding of the United Nations; determined to advance the goals of equality, development and peace for all women everywhere in the interest of all humanity; acknowledging the voices of all women everywhere and taking note of the diversity of women and their roles and circumstances; honouring the women who paved the way and inspired by the hope present in the world’s youth; recognise that the status of women has advanced in some important respects in the past decade but that progress has been uneven, inequalities between women and men have persisted and major obstacles remain serious consequences for the wellbeing of all; also recognise that this situation is exacerbated by the increasing poverty that is affecting the lives of the majority of the world’s people, in particular women and children, with origins in both the national and international domains; dedicate ourselves unreservedly to addressing these constraints and obstacles and thus enhancing further the advancement and empowerment of women all over the world; and agree that this requires urgent action in the spirit of determination, hope, co- operation and solidarity now, and to carry us forward into the next century.

In addition, the Beijing Platform for Action, BPA, which is an agenda for women’s empowerment, was also adopted on the same occasion. It aims at removing all the obstacles to women’s active participation in all spheres of public and private life through a full and equal share in economic, social, cultural and political decision-making. This means that principles of shared power and responsibility should be established between women and men, at home, in the workplace and in the wider national and international communities.

Equality between women and men is a matter of human rights and a condition for social justice. It is also a necessary and fundamental prerequisite for equality, development and peace. A transformed partnership based on equality between women and men is a condition for people-centred and sustainable development. A sustained and long-term commitment is essential so that women and men can work together for themselves, for their children and for society to meet the challenges of the 21st century.

In June 2000, a special session of the General Assembly reviewed the implementation of the BPA at the Beijing +5 conference. Governments pledged, in the outcome document they adopted, to review domestic legislation with a view to striving to remove discriminatory provisions as soon as possible, preferably by 2005.

The 10-year international review and appraisal of the Beijing Platform for Action took place at the 49th session of the Commission on the Status of Women in March 2005 at Beijing +10. In addition to reviewing the implementation of the resolutions of the Platform for Action, the commission discussed current challenges and forward-looking strategies for the advancement and empowerment of women and the girl child. After the Beijing conference, many African governments, including our own, declared their support for the implementation of the BPA resolutions and developed national action plans to give effect to their commitment.

These action plans outlined governmental priorities in implementing the BPA as well as the proposed methods and institutional frameworks within which the stated objectives were to be met. In 2000, our government adopted the national policy framework for women’s empowerment and gender equality. This policy framework sets out the country’s vision for gender equality and details the means by which the vision is to be achieved.

National gender machinery, which refers to structures that have been put in place by the state to take responsibility for the periodic review of changing conditions, or lack thereof, of women’s lives and for eradicating the factors that perpetuate women’s subordination, were established to drive the process.

The mechanisms and processes in the national machinery are set, among others, to create the political, economic, legislative and judicial environment that enables women to enjoy, exercise and defend all their economic, social and political rights on an equal basis with men; achieve equality for women as active citizens, decision-makers and beneficiaries in the political, economic, social and cultural spheres of life; prioritise the needs of women most in need of social upliftment; develop and implement mechanisms through which the country can meet its constitutional and international commitments towards gender equality, human rights and social justice; promote the enactment of laws that take into account the needs and aspirations of women; and allocate resources for the benefit of women in rural and urban areas, and ensure that these resources reach them.

Several structures and mechanisms have been put in place at various levels of state and civil society with the above aims in mind. Last year, in October, I was privileged to be part of a delegation to the 111th conference of the Interparliamentary Union in Geneva, where, amongst other matters traversed, was the adoption and evaluation of progress made in preparation for Beijing +10 by the Interparliamentary Union.

One of the specific areas covered by the recommendations emanating from this report was that states and political parties needed to commit themselves to gender equality and to prioritise gender as a permanent feature of their policies. From the ANC, I can speak without fear of contradiction of our unwavering commitment to the full attainment of this goal.

In so far as our laws are concerned, a number of women-friendly laws have been passed by Parliament that seek to advance the human rights and freedoms of women. Amongst these is a package of laws calculated to protect women against all forms of violence including, and in particular, domestic violence as well as to introduce victim empowerment strategies that have either been passed and are being implemented or are in the process of being developed.

In addition, significant progress has been made in the implementation of the new and more progressive measures contained in the current maintenance legislation, through the injection of additional resources, both human and material. The new Children’s Bill that has already been alluded to this morning and that was recently passed by this House – and is also awaiting passage in the NCOP – was aimed primarily at the protection of the rights of children, as required by our Constitution and international law. It has added protective measures that will specifically address the safety and wellbeing of the girl child.

These measures include extensive provisions against child trafficking – as has already been alluded to by some of my colleagues – child abduction and the sexual exploitation of children. For the first time in our history, provisions regulating the adoption of South African children by foreigners will also ensure the necessary protection of those children in those circumstances. The Bill also introduces a paedophile register and measures to prevent paedophiles from working in close contact with children. There is still a long way to go but we are getting there.

To back these measures up, government has extended the social security net to the large majority of poor children to enhance social cohesion and in pursuit of a holistic approach for the protection of children, especially in support of poor women in their quest and challenge to protect and ensure the survival of their children. I thank you. [Applause.]

Debate concluded.

The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, on behalf of the Chief Whip of the Majority Party, I move:

  That the report be adopted.

Motion agreed to.

Report accordingly adopted.

The House adjourned at 17:44. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS


                       THURSDAY, 23 JUNE 2005

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Bills passed by Houses – to be submitted to President for assent
 (1)    Bills passed by National Council of Provinces on 23 June 2005:


    (i)      Taxation Laws Amendment Bill [B 19 – 2005] (National
         Assembly – sec 77)


    (ii)     Taxation Laws Second Amendment Bill [B 20 – 2005]
         (National Assembly – sec 75)
  1. Translations of Bills submitted
 (1)    The Minister of Finance


     Tweede Wysigingswetsontwerp op Belastingwette [W 20 – 2005]
     (National Assembly – sec 75)


      This is the official translation into Afrikaans of the Taxation
      Laws Second Amendment Bill [B 20 – 2005] (National Assembly – sec
      75).

National Assembly

  1. Message from National Council of Provinces to National Assembly in respect of Bill passed by Council and transmitted to Assembly
 (1)    Bill passed by National Council of Provinces on 23 June 2005 and
    transmitted for concurrence:


    Older Persons Bill [B 68B - 2003]  (National Council of Provinces –
      sec 76)


    The Bill has been referred to the Portfolio Committee on Social
    Development of the National Assembly.

COMMITTEE REPORTS

National Assembly

  1. Report of the Portfolio Committee on Science and Technology on Statute of the Centre for Science and Technology of the Non-Aligned Movement and Other Developing Countries, dated 21 June 2005:

The Portfolio Committee on Science and Technology, having considered the request for approval by Parliament of the Statute of the Centre for Science and Technology of the Non-Aligned Movement and Other Developing Countries, referred to it, recommends that the House, in terms of section 231(2) of the Constitution, approve the said Statute.

Request to be considered.

  1. Report of the Portfolio Committee on Labour on Oversight visits to Northern Cape and North West Provinces, dated 8 February 2005:

The Portfolio Committee on Labour, having conducted oversight visits to the Northern Cape and the North West from 4 to 8 October 2004, reports as follows:

A. Names of delegation

  Ms O R Kasienyane (ANC-Chairperson)
  Mr T G Anthony (ANC)
  Mr M Maduma (ANC)
  Ms L N Moss (ANC)
  Mr M J G Mzondeki (ANC)
  Ms N D Ngcengwane (ANC)
  Mr G G Oliphant (ANC)
  Mr S M Rasmeni (ANC)
  Ms B Tinto (ANC)
  Mr R K Henderson (DA)
  Prince N E Zulu (IFP)
  Mr N T Godi (PAC)
  Ms S Rajbally (MF)
  Mr W D Spies (FF Plus).
  Ms P Jayiya (Committee Secretary) and Ms C B Paulse (Committee
  Assistant) accompanied the delegation.

B. Terms of reference

  The terms of reference of the Committee were to:


  *     Exercise oversight over the DOL’s adherence to the strategic
    objectives as set out in its strategic plan for 2004-05, and to
    assess progress made with the implementation of the set objectives.
  *     Assess the level of compliance with the existing labour
    legislation by the DOL and employers.
  *     Ascertain whether targets set in relation to employment equity,
    learnerships, occupational health and safety and job creation were
    met.
  *     Establish progress and challenges faced at provincial level by
    the DOL and other stakeholders.
  *     Conduct oversight by interacting with the DOL, labour centres,
    employers and employees (including organised labour), the
    Commission for Conciliation, Mediation and Arbitration (CCMA),
    Umsobomvu Youth Fund, designated groups (Women, people with
    disabilities and the youth) and other stakeholders.

C. Itinerary

  Day one: 4 October 2004

  (1)   Briefing at Northern Cape Provincial Office in Kimberley.
  (2)   Presentation at PPC Lime Mine.
  (3)   Departure to Kuruman.

  Day two: 5 October 2004


  (1)   Presentation at Sishen Iron Ore Mine.
  (2)   Presentation by DOL and labour centre staff at Livingstone
  Lodge, Kuruman.
       End of Northern Cape programme.
       Depart for Vryburg.
  (3)   Meeting with staff from Vryburg and Taung Labour Centres

  Day three: 6 October 2004


  (1)   Visit to two farms in Vryburg - interaction with farmers and    farm workers.
              Depart for Mafikeng.

  Day four: 7 October 2004

  (1)   Briefing by provincial office (Mmabatho).
  (2)   Meeting with Provincial Skills Development Forum (PSDF),
       Umsobomvu Youth Fund, SANGOGO, and designated groups.
       Depart for Klerksdorp.
  (3)   Meeting with CCMA.

  Day five: 8 October 2004


  (1)   Meeting with North West Labour Market Co-ordinating Forum
  (NWLMCF).
  (2)   Media briefing.
       End of visit.

D. Structure of the report

  The report presents the daily activities undertaken by the delegation.
  It outlines the various presentations made to the delegates by the
  various stakeholders, site visits, salient issues and problems
  identified by the Committee while on site visits, and recommendations
  put forward by the Committee for action.

4 October 2004

  (1)   Presentation by Northern Cape DOL Provincial Office


  The Committee received a briefing from the management team comprising
  the following persons:


       i     Mr D Makhanda, Provincial Executive Manager;
       ii    Mr J Mphahlele, Head: Regional Office, Kimberley;
       iii   Ms P Ruwana, Business Unit Manager: Labour Market
       Information,
             Statistics and Planning (LMIS&P);
       iv    Ms I Schoeman, Business Unit Manager: Management Support
             Services
             (MSS);
       v     Mr A K Pillay, Business Unit Manager: Beneficiary
       Services;
       vi    Ms F Camphor, Business Unit Manager: Employment and Skills


             Development Services (ESDS);
       vii   Mr R Geswint: Inspection and Enforcement Services (IES);
       viii  Mr G Sefotlho, Communications Officer.

  The Provincial Executive Manager briefly introduced the organisational
  structure. The Business Unit Managers of the various programmes made
  presentations as follows:


  (2)   IES


       The province has a total of seven labour centres and 42
       inspectors. The labour centres are serviced by two assistant
       directors, two senior practitioners and three practitioners. The
       centres are located in Kimberley, Kuruman, Calvinia, De Aar,
       Springbok, Upington and Postmasburg.



       Constraints



             (a)   Lack of subsidised 4x4 vehicles for areas that are
                   not reachable by any other means. Areas mentioned
                   were Noenieput, Mier, Van Zylsrus, etc. Most
                   inspectors can only afford a Toyota Tazz or a VW
                   Golf.
             (b)         Lack of facilities in remote areas.
             (c)   Distances traveled by inspectors within the
                   respective regions. The concern expressed is that
                   more time is spent on the road.



       Proposals



             (a)   The introduction of 4x4 mobile units can enhance
                   service delivery in remote areas. The introduced
                   mobile units could serve as labour centres.
             (b)   The DOL should investigate suitable affordable
                   transport for level-five and level-six inspectors.

             Comments/Questions


             (a)         Follow up on inspections conducted.
             (b)         The timeframe set for filling vacancies.
             (c)   Whether the DOL considered renting those 4x4 mobile
                   units on an ad hoc basis.
             (d)   Whether the inspectors covered the inspection of
                   seasonal workers.
             (e)   How does the DOL envisage servicing areas that are
                   not accessible as a result of distances to be
                   traveled?
             (f)   What role does organised business play?
             (g)         Progress on the integration of the inspectorate
                   and learnerships in respect of inspections.
             (h)   Accessibility of CCMA offices.

  Responses

  (a)   There have been successes in conducting follow-up inspections.
                   Standards and timeframes have been set. Such an
                   exercise is done within a specific period.
             (b)   All vacancies in the IES are in the process of being
                   filled. All posts in the inspectorate are regarded as
                   critical.
             (c)   The DOL is currently engaged in a special project of
                   conducting inspections in the agricultural sector.
                   The approach of the DOL in purchasing 4x4 mobile
                   units is to assist inspectors in conducting
                   inspections in remote areas.
             (d)   The DOL takes the issues of seasonal workers and
                   child labour seriously. For example, a two-week blitz
                   was conducted in the Kakamas area. The DOL is
                   currently consolidating a report on those
                   inspections. Provincial structures have adopted a
                   collective approach in dealing with child labour.
             (e)   Regarding vast distances to be traveled, more
                   emphasis is put on planning so that visits are
                   conducted in almost all the regions. The DOL,
                   however, is in the process of servicing the Orange
                   Valley area to ascertain what is happening on those
                   farms. Law enforcement is exercised where incidents
                   are identified.
             (f)   Agri SA and government departments, including NOCCI
                   from organised business, are role players who
                   constitute the stakeholders’ forum.
             (g)   In relation to the integration of the inspectorate,
                   the national office deals with the matter.
             (h)   Regarding learnerships and inspections, the province
                   is currently finalising the curriculum and learning
                   material for learners in each labour centre in the
                   province.
             (i)   The offices of the CCMA are located closer to
                   transport nodes, such as taxi ranks.


       (3)   ESDS
             This Unit is assigned the responsibility of enhancing
             employment and skills development in the province.


             Constraints


             (a)   Shortage and capacity of computers;
             (b)   Lack of space for learners;
             (c)   Implementation of the NSFDIS;
             (d)   Staff shortage;
             (e)   Shortage of pool cars.


             Remedial action


             (a)   Write submission to the Business Unit
                   Manager/Provincial Executive Manager for new
                   computers.
             (b)   Siemens to install new server to increase the
                   capacity and speed of old computers.
             (c)   The management to approve the submission on the
                   allocation of office space.
             (d)   The responsible Deputy Director-General to fast track
                   the response on the submission on the implementation
                   of the NSFDIS.
             (e)   The filling of existing vacancies of ESPs to be
             prioritised.
             (f)   Feedback on applications for subsidised cars to be
             sped up.

             Comments/Questions


             (a)   Is the impact of the support on social projects
                   assessed?
             (b)   How well has the social plan been implemented?
             (c)   What is the attitude of the community towards the
                   prison inmates who underwent training on various
                   skills?  Does the latter receive capital to pursue
                   the acquired skills. How many get jobs after
                   training?
             (d)   What is the relationship between the DOL and the
                   SETAs?  What is the role of the latter in reaching
                   the remote areas, especially farms?
             (e)   For how long have the noted constraints on service
                   providers been experienced?
             (f)   How does the DOL assist the retrenchees?
             (g)   To what extent does the DOL assist small business
                   organisations?
             (h)   Is the training provided based on the skills required
                   in the labour market?
             (i)   How has the consultation process progressed on the
                   new National Skills Development Strategy (NSDS)?


             Responses


             With respect to the consultation process on the NSDS, it
             was mentioned that issues raised were compiled in a
             booklet. People were also given an opportunity to submit
             verbal inputs.



             Finding



             No constraints were mentioned on the targets set on skills
             needed.


             Recommendations


             (a)   The DOL should provide a more comprehensive
                   presentation on how the scourge of unemployment could
                   be alleviated.
              (b)  Bottlenecks in the upgrading of computers should be identified.
             (c)   The DOL’s response to questions raised on this
                   programme should be forwarded to the Committee in
                   writing.


       (4)   Beneficiary Services


             The approved budget for Unemployment Insurance and the
             Compensation for Occupational Injuries and Diseases for
             2004/05 amounted to R10 236m and R1 482 m respectively.


             Constraints


             (a)   Major stakeholders are experiencing problems around
                   the unemployment insurance cheque payment method and
                   the constitution of the regional appeals committee.
             (b)   Certain enquiry screens in the province relating to
                   compensation for occupational injuries and diseases
                   were inaccessible.
             (c)   Most staff leave the institution as a result of
             salary levels.


             Remedial action
             (a)   Introduction of the TEBA Bank A-card.
             (b)   Shorten the Compensation for Occupational Injuries
                   and Diseases Act enquiry system through the
                   implementation of the Safika Project.
             (c)   The process of the regional committees is still at
             NEDLAC.


             Comments/Questions


        (a)   What mechanism does the DOL use to remedy the problem of
                   non-compliance with the Unemployment Insurance Act?
        (b)   What is the progress regarding reducing the delays in the
                   processing of claims?
  (c)   How will the introduction of the TEBA card help people in areas
                   without banking facilities?
              (d)  How much is known about NEDLAC in the province?
             (e)   How does the province ensure that it reaches its
                   population, especially taking into consideration that
                   the province is predominantly Afrikaans-speaking?
             (f)   Does the farming community form part of the main
                   stakeholders covered? The delegation wanted more
                   information on the payments relating to adoption
                   benefits.


             Responses


             (a)   The farming community is one of the main
             stakeholders.
             (b)   The duration of the claim process is 18 days, and the
                   success rate of claimants is almost 98%.
             (c)   In relation to service points, the DOL is trying to
                   reach all the areas.
             (d)   The DOL acknowledged that NEDLAC is not well
                   understood by the communities.
             (e)   The issue of the language policy is adhered to. Forms
                   on the Internet are also available in Afrikaans.


       (5)   MSS


             Out of 231 existing posts, 178 are filled and 53 are
             vacant. Of the 53 vacancies, 17 are in the process of being
             filled.


             Constraints


             (a)   Staff are poached by other provinces. It is a
                   struggle to get disabled people in all levels,
                   especially at senior management levels.
             (b)   There is lack of office accommodation.


             Comments / Questions


             (a)   What strategy does the DOL have to address the
                   problem of office accommodation? The Committee
                   suggested a clustered approach, which encompassed the
                   use of Multi-Purpose Community Centres (MPCCs) to
                   alleviate this problem.
             (b)   Are there any time frames set for filling the vacant
       posts?


             Concerns raised by the Committee


             (a)   The absence of disabled people at senior management
                   levels in the DOL;
             (b)   No mention was made of the relationship between the
                   DOL and the Expanded Public Works Programmes (EPWPs);


             (c)   The under-representation of Coloureds and Whites in
                   the DOL, and the Indian representation that is not
                   gender sensitive;
             (d)   The issue of over and under-representation.


             Responses


             (a)   With regard to addressing the office accommodation
                   problem, the DOL does make use of MPCCs, especially
                   for the inspectorate and the UIF. Agreements were
                   made with the Departments of Safety and Security, and
                   of Justice to make use of their offices.
             (b)   Most disabled people in the province are at senior
                   levels. The shortage lies in middle management.
                   Communication remains a problem as a result of
                   difficulties in getting service providers.
             (c)   With respect to equity figures, the national office
                   is over-represented by Whites. The DOL is working
                   towards getting provincial figures right.
                   Advertisements for vacancies are inclusive. There is
                   a lot of poaching of African and Coloured staff. The
                   EE Forum targets the issue of Indian females. The
                   gender representation in the Northern Cape is
                   estimated at 55% male and 45% female. In relation to
                   time frames set on filling vacant posts, the DOL has
                   two months to finalise the matter.
             (d)   On the issue of over and under-representation, the
                   DOL has certain targets to be reached.
             (e)   The DOL is not involved in the co-ordination of
                   EPWPs. Its role is only related to training projects
                   that are identified by the departments.


       (6)   PPC Lime Mine


             The Committee, accompanied by officials from the DOL, met
             with the management and worker representatives. This mine
             has two divisions, namely, Barloworld and Portland Cement,
             and produces both calcitic and dolomitic lime. It supplies
             95% of South African lime. The mine provides employment to
             350 people, who are housed in company and private
             accommodation.


             The presentation included the following:


             *     The background of PPC Lime;
             *     Kambuku process;
              *    Employment Equity;
             *     Skills Development;
             *     Learnerships;
             *     Occupational Health and Safety (OHS);
             *     The perception of employees.

             Concerns raised by the Committee


             (a)   The employment equity figures reflect a need for more
                   White workers. Was the Mining Charter covered by the
                   figures? The DOL also raised a concern around the
                   employment equity categories. It expressed a need for
                   a more substantive approach and an interrogation of
                   company plans and figures provided.
             (b)   The presentation on OHS made no mention of
                   occupational diseases.


             Responses


             (a)   The figures presented were derived from the Mining
                   Charter. The supply and demand of labour is an
                   agreement between the employer and the employee.
             (b)   The incident rate only applied to the injured. On the
                   issue of occupational diseases, an annual fitness
                   test was conducted on all employees.


             Questions


             (a)   How organised are the workers?
              (b)  Does the training provided extend to the community?
              (c)  Are employees trained to reach higher levels?
             (d)   Has the company had any retrenchments in the past? Is
                   any assistance given to the retrenchees?
              (e)  Does the company have a health and safety committee?


             Responses


             (a)   In relation to training, the community benefits
                   through ABET programmes and the bursary scheme
                   provided.
             (b)   A BEE-owned and controlled company has been
                   established. PPC has shares in the company.
             (c)   The recent retrenchments occurred in April 2004. Each
                   of the retrenchees was offered R5 000 to register for
                   training.


             Recommendation


             The DOL should facilitate that the Committee is provided
             with a comprehensive report on employment equity,
             inspections, learnership programmes and diseases and
             injuries at PCC Mine.


             The Committee conducted an inspection of the invocom,
             mining and production areas.

5 October 2004



       (1)   Sishen Iron Ore Mine


             The Committee met with the management and labour
             representatives from the Solidarity Union and the National
             Union of Mineworkers. Presentations covered labour issues,
             wellness and HIV/AIDS programmes, and the UIF collection of
             levies.


             The Committee commended Khumba for its role in training the
             unemployed. It also acknowledged the conversion of hostels
             into family units.


             The Committee expressed a concern that the report given
             lacked information on how the company transforms its
             management structure, and its progress in meeting equity
             targets.


             Questions


             (a)   Does the company have a health and safety committee?
             (b)   What is the rate of disease, its nature and the
                   number of persons discovered on a monthly basis?
             (c)   What happens to employees who get to a stage of being
                   non-productive?
              (d)  Was HIV/AIDS testing voluntarily or compulsory?
              (e)  Are retrenched persons linked with community
  projects?
             (f)   What time frames were set to meet employment equity
                   targets on the placement of disabled persons?
             (g)   What is the percentage of TB in the area?
              (h)  Who are the beneficiaries of procurement
  opportunities?
             (i)   What yardstick does the company use to monitor
                   compliance with labour standards by subcontractors?
             (j)   Are there any recreational facilities for employees
                   and their families?
             (k)   Does the company liaise with its counterparts to find
                   alternative jobs for retrenchees?


             Responses


             (a)   In relation to the rate of disease, the most common
                   problems related to skin sensitivity. These problems
                   are caused by glue and dust in the mine. There are
                   regular instances of finger injuries. The company has
                   an annual routine health check of the entire body for
                   every employee, as well as a six-monthly red-card
                   testing. There is also a follow-up lung function
                   check-up every six months.
             (b)   Identified non-productive persons are often
                   accommodated on rehabilitation projects and/or by
                   changing jobs. In instances where the latter is not
                   applicable, an employee is put on a pension scheme.
             (c)   The time frame set for employment equity targets is
                   2008. Those targets that are not easy to meet will
                   stretch to 2009. Consultation has taken place with
                   special organisations or persons to identify all
                   positions suitable for the disabled.
             (d)   Training programmes on entrepreneurship skills are
                   provided to retrenchees. With regard to sharing
                   information with other mines on the possible
                   placement of retrenchees, the company provides names
                   of such incumbents to its counterparts.
             (e)   The company has a procurement policy in place. There
                   is a provincial screening committee that screens
                   people who want to be contracted. All contractors are
                   rated in terms of a Black-owned or managed company.
                   There is an ongoing process of auditing contractors,
                   and those who do not comply with labour and internal
                   laws will be dealt with accordingly.


             Resolution


             The Committee resolved that the DOL facilitates that the
             company provide it with reports on nodal projects on
             irrigation and rice, the housing plan, the follow-up
             process of rehabilitation, and the company’s procurement
             plan.


             The Committee also conducted an inspection of the ABET
             Skills Training Centre.


        (2)   Labour Centre - Kuruman


             The delegation, accompanied by the Provincial Executive
             Director, met with staff from Kuruman Labour Centre. The
             City Manager of Kgasigonyane Municipality welcomed the role
             players.


             The DOL presented a report that covered the period 1 July
             to 30 September 2004. The Committee noted that there were
             only two inspectors to service the vast region.


             The briefing covered client services, inspection and
             enforcement, employment services, service providers and
             problems encountered and challenges faced.


             Client services

             A total of 760 domestic workers were registered during the
             period July to September 2004. An amount of 108
             unemployment insurance claims were paid up. A total of 89
             complaints were resolved at client services.
             The constraints experienced are due to incomplete
             information provided by employees about their employers.
             Such cases are referred to IES.


        (3)  IES

             Out of 35 inspections conducted during this period, 25 were
             finalised. A total of 53 blitz inspections were conducted
             in the domestic worker sector.


             Problems encountered


             (a)   Most employers did not conduct the risk assessment
                   and were issued with contravention notices;
             (b)   Transport for inspectors;
             (c)   Untraceable employers;
             (d)   Foreign business people, especially in the wholesale
                   and retail sector.


       (4)   Employment Services

             During the current financial year, an amount of R2 175
             million was approved for the following projects:


             (a)   Kgalagadi Dipudi Co-operative Enterprise
             (b)   Livestock improvement & production projects
             (c)   Kgalagadi integrated energy centre

       (5)   Service providers

             Out of five service providers, only two were registered.
             Three were in the process of registering. Most service
             providers were in the catering and cleaning sectors.

        (6)  The Committee commended the DOL on its report.


             It raised a concern about the number of inspectors, the
             vastness of the area to be serviced, and the issue of
             foreign business people who are claimed to be taking over
             businesses in Kuruman.


             Questions by the Committee


             (a)   Is there an organisation that represents domestic
                   workers in the region?
             (b)   What is the percentage of untraceable employers and
                   unemployed people?


             Responses


             (a)   The majority of domestic workers is not organised.
                   The DOL deals with most of their cases. CAWU
                   sometimes gets involved.
             (b)   The unemployed in the region is estimated at 50-60%.
                   The DOL, however, is currently creating a database
                   for employers. The information captured on the
                   database would reflect the number of employed people.
             (c)   The DOL, together with the provincial office, is
                   working on a strategy to deal with untraceable
                   employers. The DOL is embarking on the Siyaya project
                   for beneficiary services. Such a project will link
                   employers to the database and to SARS.
             (d)   With respect to foreign business people, the concern
                   is the language barrier. This results in a
                   communication problem.
             (e)   A number of training programmes are provided to the
                   disabled to enable them to start their projects. Most
                   disabled people in the Kgalagadi area had received
                   computer literacy and business skills training. Some
                   were absorbed into the local municipality. Others
                   relocated to regions where chances of employment were
                   good.
             (f)   The Committee noted the problem of the shortage of
                   computers and transport. It was suggested that the
                   general lack of resources should be quantified from
                   time to time.


             Resolution


             The DOL should provide the Committee with reports on the
             stakeholder profile, the cause of such high vacancy levels,
             and how it hopes to deal with that problem, as well as a
             report on learnerships and child labour.


       (7)   Vryburg


             The Committee met with the Provincial Executive Manager: Mr
             A Makaphela, managers and staff from the Vryburg and Taung
             Labour centres.


             Challenges raised


             (a)   There is a need to intensify the advocacy approach in
                   farm areas as most of the people are vulnerable.
             (b)   There is a need to enhance co-operative governance.
             (c)   In respect of cross-border servicing, many cases that
                   come to Taung are referred to Kimberley. This
                   affected service delivery and turnaround time.


             Questions


             (a)   What is the level of compliance by employers?
             (b)   Has the DOL approached the Department of Home Affairs
                   (DHA) regarding the problem of foreign business
                   people?


             Responses


             (a)   There is a decrease in the prosecution mechanism.
                   Reports from team leaders reflect a 50-70%
                   compliance. The situation has improved since
                   inspectors had been provided with subsidised
                   vehicles. The capacity given to inspectors has had a
                   positive impact on the operations. There are
                   employers though who do not comply. The DOL is of the
                   view that if procedural process can be reduced, the
                   situation can improve even more. There is a need to
                   get other partners on board, such as the Department
                   of Trade and Industry (DTI). The route taken to
                   prosecute foreign business people who flout the law
                   is too long. There is a need to engage DTI to check
                   the issuing of licenses. The legislative framework
                   makes it difficult for the DOL to intervene in
                   assisting local business people.
             (b)   The DHA was contacted regarding some Pakistanis who
                   were inside the country illegally. The legislative
                   framework does not make it easy for the DOL to
                   intervene in cross-border labour migration.


             Recommendations by the Committee


             (a)   The focus in addressing the problem of foreign
                   business people should be on checking compliance with
                   South African laws.
             (b)   There is a need for politicians to engage other
                   colleagues on the matter.
             (c)   The DOL should interact with municipalities that
                   issue licences willy-nilly. A report on such
                   interactions should be made available to the
                   Committee. Parliamentary Constituency Offices should
                   also be used to circulate those reports.
             (d)   The Committee should investigate the procedural
                   impediments in the prosecution of foreign business
                   people who do not comply with legislation.
             (e)   The Committee should look into the issuing of
                   licences.


             Questions


            (a)    How often does the DOL meet with worker
                   representatives?
            (b)    How does the DOL deal with closure of mines?


             Responses


             (a)   SACCAWU is an active union in the region. There has
                   been a concern that most of its members are losing
                   their cases.
             (b)   The issue of rehabilitation happens as soon as the
                   Department of Minerals and Energy issues a mine
                   closure certificate.

             Resolutions


             (a)   The Committee feels that there is a need for the DOL
                   to ensure good relations with the Department of
                   Minerals and Energy, especially on issues such as the
                   closure of mines and mine rehabilitation.
             (b)   The Committee requested that it be provided with what
                   was reported on in writing.


   6 October 2004

       North West Provincial Office

       The Committee met the staff in the provincial office and
       received a briefing from the five business units, namely, MSS,
       LMIS&P, BS, IES, and ESDS. Each presentation was based on
       achievements and challenges.


       (1)   MSS

             The core business of this unit is to render support to
             business units. It is responsible for safety and security
             and the administration of IT services.


             Challenges


             (a)   Commitment of staff;
             (b)   Lack of sense of urgency among certain staff members;
             (c)   Getting buy-in from staff to support the DOL’s
             initiatives;
             (d)   Effective communication.


       (2)   Business Services


             Challenges


             (a)   The long turnaround time in the payment of claims;
             (b)   Employers who change their addresses continuously;
             (c)   Companies that have been liquidated;
             (d)   Untraceable employers;
             (e)   Incomplete information supplied by companies.


             Solution


             As a solution to the long turnaround time in the payment of
             claims, the Province formed a team to look into its
             processes. This resulted in the reduction in turnaround
             time by 92%. The  is participating in Compensation
             Commission workshops directed at the new processes that
             will reduce backlogs.


       (3)   IES


             The presentation covered inspections and enforcement,  and
             compliance.


             Challenges


             (a)   The protocol inhibits effective inspection;
             (b)   Access to farms, if no prior arrangements were made;
              (c)  Delays in the processing of cases by the Labour
  Court;
             (d)   Lack of knowledge of legislation of the DOL by the
                   Labour Court;
             (e)   Accessibility to private household by inspectors.


             In relation to the protocol problem, Agri SA needs to
             provide the DOL with its members’ names and contact
             details. It is sometimes difficult to establish where a
             certain farm is located. Not all farmers are members of
             Agri SA. This would make it difficult for the DOL to
             identify farms.


             Questions raised by the Committee


             (a)   Was it possible for DOL to use the same inspectors to
                   fight the backlogs?
             (b)   Does the DOL conduct inspections at employment
                   agencies to monitor compliance?
             (c)   What are the experiences of inspectors on
             casualisation?


             Response


             (a)   There has been a concern that putting too much
                   responsibility on the inspectors could compromise the
                   quality of inspections.
             (b)   The Province has no problems although it is not
                   strong economically. Most problems related to
                   subcontracting in the mining sector.
             (c)   Most employers use casualisation to escape their
                   social responsibility. This practice is common with
                   big enterprises, such as Pick n Pay, Checkers, etc.
                   The wholesale and retail sector remained a problem.


             The Committee sought clarity on the commitment of the DOL
             to ABET and raised a concern about the environment in which
             people in the provincial office worked, as well as the
             vacancy levels of inspectors.


        (4)  ESDS


             The ESDS is a public employer agency and a skills
             development facilitator and implementer in the second
             economy.


             The ESDS unit budgeted R27 million for training the
             unemployed. However, 2 452 persons were trained and placed
             in income-generating entities. Out of the trained
             incumbents, 1% was from the disabled. There was a need to
             increase the intake of the disabled in order to meet the 4%
             target set.


             Challenges


             (a)   The cross-border labour migration in the Britz area;
             (b)   The visibility of SETAs in the Province to escalate
                   consciousness and intake of learners into
                   learnerships. The PSDF tried to engage sectors such
                   the mining and agriculture, although they were
                   reluctant;
             (c)   The relationship with the private sector is weak;
             (d)   The issue of leadership and ranks remained a problem.
                   There was a need to upgrade the structure of the
                   department;
             (e)   Changing the IT system to a secure one would ensure
                   that there was a decreased chance of fraud;
             (f)   The challenge in assisting retrenchees according to
                   the social plan is around companies that do not
                   inform the DOL of intended retrenchments;
             (g)   Privileged service providers were still in the
                   monopoly. The challenge is for the emerging service
                   providers to undergo training in order to be linked
                   with the SETAs;
             (h)   There was a problem with government departments who
                   did not comply with legislation.


             Way forward

             (a)   A meeting with the farming community and DHA
                   officials around the Britz area should be convened.
             (b)   An all-sector consultative meeting with business and
                   the SETAs in the Province will be convened
             (c)   Employers were encouraged to register with SETAs in
                   order to claim grants.

             Questions


             (a)   What is the average period of placement after
                   completion of training?
             (b)   How many disabled people have benefited from the
                   bursary fund and the list of projects that have been
                   funded?
             (c)   Do foreigners benefit from the DOL’s social plan?
             (d)   Is success achieved in the area of the social plan,
                   and the training of people who have been laid off?
                   Were various sectors of the economy engaged in this
                   endeavour?


             Responses


             (a)   The average period of placement could be three
                   months. Employers often come to the labour centres to
                   seek workers.
             (b)   The bursary fund is centralised in Pretoria. The role
                   of the Province was to sensitise people with
                   disabilities to apply and to make recommendations.
                   The Committee would be provided with the statistics.
                   The Committee noted the issue of training providers
                   who do not include disabled persons in their
                   training. It suggested that the department look at
                   the matter when contracts were issued. In relation to
                   training, the Province was of the view that there was
                   a need to monitor the aftercare of people after
                   training.
             (c)   According to its policy, the DOL does not engage in
                   the training of foreigners. It only gets involved in
                   providing services in cases of retrenchments, for
                   example through counseling. The issue is still being
                   debated within the DOL.
             (d)   The successes in terms of the social plan depended
                   upon all departments, and the Department of
                   Provincial and Local Government should assist. In
                   addition the ESDS unit had agreed that labour centres
                   needed to identify all vulnerable sectors and be
                   encouraged to team up a structure where there was an
                   impending retrenchment.


             Concern raised by Committee


             The Committee was concerned about the non-visibility of
             SETAs. However, a meeting had been organised by the DOL to
             address the matter, including the impact of SETAs.


             Clarity sought by Committee


             The Committee sought clarity on whether the employment
             equity report fell within the ESDS domain. The response
             given was that although this is not its area of work,
             skills development could not be divorced from employment
             equity.


             Questions


             (a)   Was training provided and skills development related
                   to market demand? How did cross-border migration
                   affect the local employment?
             (b)   Are problems experienced as result of employment
                   agencies recruiting people to work outside of
                   country?


             Responses


             (a)   Training was based on the demand on the ground. In
                   relation to cross-border migration, there were
                   employers, especially in the agricultural sector, who
                   were taking advantage of the legislation.
             (b)   No problems were raised. There were 13 employment
                   agencies in the Province. This made it easy for the
                   DOL to monitor.

Visit to farms

       The Committee, accompanied by the departmental officials,
       visited two farms and interacted with farmers, farm workers and
       a domestic worker.


       (1)   Liliesfontein Farm

              Findings


             (a)   Workers worked for eight hours a day, and were paid
                   according to the minimum wage. Some workers worked
                   overtime.
             (b)   The rate of illiteracy was high.
             (c)   Workers were not aware of their rights. In most cases
                   they received information through correspondence sent
                   to the employers.
             (d)   In cases where the employer paid for the medical
                   expenses of employees, the former reclaimed the
                   money. Dependants were not covered in such
                   arrangements.
             (e)   Part of the deal during the start of employment was
                   that one of the benefits would be groceries and meat.
                   The current situation showed that they received
                   groceries without meat.
             (f)   Each family had a four-roomed electrified house.
             (g)   In the event that workers had complaints,
                   arrangements were made for the employer to meet with
                   all of them.
             (h)   Families should report when expecting visitors.
             (i)   Spouses of other employees got casual jobs on the
             farm.

Recommendations by Committee

             (a)   In relation to housing, employees should be
                   encouraged to access government grants so that they
                   could have their own houses.
             (b)   Employees should be capacitated so that they could
                   consider having their own farms and be self-
                   sustaining.
             (c)   Employers should do something about the level of
                   illiteracy through ABET programmes.


             Responses and concerns from the employers


             (a)   Workers resisted the advice given by employers.
             (b)   Transport for school-going children was a problem.
             (c)   The minimum wage has caused some retrenchments as
                   farmers could not afford to pay the employees at the
                   promulgated rate.
             (d)   There were good relations between farmers and their
                   employees, except in isolated cases where employers
                   mishandled employees. Those cases were published in
                   the media, and not all of them involve farmers.

       (2)   Drassybend New York Farm



       Findings



             (a)   Employees received a minimum wage of R770.00 per
                   month and a pay slip.
             (b)   Workers also received a 10% annual increase, 12 days’
                   leave and a bonus of R1000.00.
             (c)   Employees were responsible for their medical care. In
                   some cases they had to find their own way to reach
                   medical facilities.
             (d)   Workers were not aware of their rights. In most cases
                   they received information through correspondence sent
                   to their employers. No one came to educate or inform
                   workers of things to look for.
             (e)   The money that should be paid for overtime was not
                   reflected on the pay slip.
             (f)   No formal disciplinary hearings took place - the
                   employer and employee resolved their problems.
             (g)   The level of illiteracy was a cause for concern.
             (h)   The workers were aware that the existing laws have
                   brought positive changes.
             (i)   Ablution facilities, such as the toilet, were located
                   in an awkward position and were not in good order.
             (j)   The Committee noted with great concern that there was
                   still a lack of advocacy among farm and domestic
                   workers. It was also concerned that facilities, such
                   as toilets, were not in good condition.



             Recommendations



             (a)   Employers should look into the possibility of
                   improving toilet facilities for employees.
             (b)   Employers should address the issue of transport when
                   employees are sick, rations should include meat and
                   overtime payments should be reflected on pay slips.
             (c)   Illiteracy should be addressed through ABET
                   programmes.


             Responses from employers


             (a)   Employers tried to comply with the new laws and often
                   attended training on labour issues.
             (b)   Workers had the privilege of buying sheep at a cost
                   of R200.00.
             (c)   The new laws make it difficult for employers to
                   institute disciplinary actions.
             (d)   Deductions are based on the loans made to employees.
             (e)   Landlords often exploit farm workers on rentals they
                   pay for their children who attend school away from
                   the farm.
             (f)   Working hours differ according to seasons.
             (g)   The inspector from the DOL alluded to the fact that
                   the minimum wage has affected seasonal workers. There
                   is a need to review and amend the legislation to
                   address this problem.


             The Committee noted that there was a level of compliance
             with the law by employers. An appeal was made to employers
             to re-instate paying above the minimum wage. Workers who
             received training on certain skills should receive more
             than the minimum wage.

    7 October 2004


        Presentation by North West Provincial Skills Development Forum (NWPSDF)


       The NWPSDF was a strategic forum set up to identify skill needs
       in the Province. It comprises provincial government departments,
       the  Premier’s Office, organised labour, non-governmental
       organisations (NGOs), and academic institutions.


       The Committee received briefings from the following
       stakeholders: Office of the Status of Women (OSW), SANGOGO, the
       Disability Group, Umsobomvu Youth Fund and government
       departments


       (1)   NWPSDF


             (a)   NWPSDF members needed training on their
             responsibilities.
             (b)   ABET centres are flooded by matric repeaters who are
                   not where they are supposed to be. Those centres are
                   unable to offer subjects such as physics.
             (c)   There was also a problem of mainstreaming further
                   education and training (FET) since matric repeaters
                   flooded that area.
             (d)   There are problems that resulted from the merger of
                   academic institutions, especially that some
                   institutions had to be transformed.
             (e)   In respect of using funds contributed by the DOL,
                   such funds were centralised, and therefore
                   institutions that were supposed to access them did
                   not.
             (f)   Young people were still caught up in the idea of
                   being academics.


       (2)   SANGOGO


             (a)   Most members of NGOs bear the brunt of service
                   providers who were not accredited.
             (b)   There was no guarantee of placement after training.
             (c)   Service providers designed training material without
                   consulting the people.
             (d)   Most often skills acquired from training were not
                   recognised.
             (e)   There was a gap between the curriculums provided by
                   educational institutions and the skills required by
                   the market.
             (f)   There was a need for an integrated skills development
                   approach that would address the problem.


       (3)   COSATU


             (a)   There was a gap between the schools and skills
             training.
             (b)   There was a proliferation of ABET centres throughout
                   the province.
             (c)   Skills development initiatives did not benefit the
                   people on the ground.
             (d)   As a result of the nature of the province, there was
                   a need to identify skills in which people should be
                   trained.
             (e)   The vast number of people were not aware of the
                   existence of the NWPSDF, legislation, training
                   programmes, outcomes of the GDS and how to access
                   learnerships. The plea was that the information
                   should filter down to the people on the ground.

       (4)   UYF


             (a)   The UYF had embarked on projects that involved
                   recruits from the province. Efforts should be made to
                   enhance their visibility in the province.
                b) National organisations were mostly based in Gauteng.
                c) The UYF was in process of appointing a provincial co-
                   ordinator to ensure sufficient integration of
                   efforts.
                d) There has been a vacuum between national and
                   provincial levels.
                e) The UYF was conscious that there should be an
                   equitable distribution of resources within the
                   province.
                f) A submission on the review of the NSDS was made to
                   the DOL.
                g) The UYF was working with the DOL through the labour
                   centres as access points for youth who wanted to
                   access its services.
             (h)   The UYF was also working within the FET arena to
                   enable young people to acquire skills according to
                   the needs of the province. Four FET institutions were
                   due to get funding to the value of R6m in this
                   regard.


       (5)   Youth Commission


             The Commission has participated in the process of
             developing learnerships that would be implemented by the
             public service.  It was concerned that the province would
             not respond proactively to the learnerships.


             The Commission was also concerned about the commitment from
             government and the poor co-ordination of activities that
             took place amongst the youth structures. Its view was that
             the integration of various youth organisations would
             exonerate the youth from this poor co-ordination. For the
             Commission, the issue of public service learnership
             programmes warranted political intervention.


       (6)   Disabled persons


             Oral submissions were received from the North West Council
             for the Blind, the Ikageng Self Help Project and the Deaf
             Federation of the North West.

             Findings



             (a)   According to the disabled groups, statistics
                   reflected that since 2002, almost 1, 2 million
                   disabled people have been unemployed.
             (b)   The other form of discrimination was the
                   inaccessibility to facilities.
             (c)   Disabled people, especially from the deaf community,
                   experienced problems when accessing public facilities
                   such as hospitals. In most cases there was no
                   interpreter to assist with sign language. It was
                   suggested that support relating to sign language and
                   interpreters be strengthened.
             (d)   Most people from the deaf and blind communities were
                   unemployed.
             (e)   Most institutions when approached to assist the
                   disabled claimed that they did not have people to
                   assist.


             The DOL was requested to monitor equity and affirmative
             action when the disabled applied. There was a plea for the
             DOL to intervene in problems raised by the disabled
             communities.


             There was also an appeal for government to employ sign
             language interpreters to work in various offices.


             The Committee wanted to know how many disabled persons were
             employed and whether they were happy. The provincial
             Department of Sport, Arts and Culture (DSAC) acknowledged
             that sign language interpretation was a scarce skill. It
             conceded that there has been a problem in training due to
             the unavailability of necessary equipment. It was suggested
             that SETAs ensure that service providers during the tender
             process undertake to have the necessary resources to cater
             for the blind.


             The DOL alluded to the fact that the Health and Welfare
             SETA funded registered projects to train employees from the
             disabled sector. Five trainees from the province benefited
             from that project. Out of the 16 disabled people trained in
             computer skills, eight were deaf.


             Comments/concerns by the Committee


             The Committee noted with great concern that service
             providers did not always have the necessary resources
             and/or equipment to cater for the disabled. It also
             observed that there were no funds allocated to projects for
             the disabled. The Committee emphasised its role in
             monitoring and ensuring that the existing laws are
             implemented. The DOL realised that although not much had
             been done in respect to the disabled, there was progress
             and room for improvement.


       (7)   OSW


             The OSW registered a concern about the institutional
             arrangements pertaining the gender focal areas in the DOL
             and its status in the appointment of the gender co-
             ordinator in the province.


             Response


             The DOL does have gender focal people at provincial offices
             and labour centres. The provincial office kept close
             contact with the Gender Desk in the Office of the Premier.

       (8)   Department of Agriculture, Conservation and Tourism


             A concern was raised that there was no SETA that catered
             for conservation since the North West Province was a prime
             conservation area. A request was made to the UYF to assist
             in encouraging the youth to get into the mainstream of
             conservation.


       (9)   Siyasa Security Industry (SSI)


             The majority of members of this organisation are employers
             who are in support of the skills training and empowerment.
             SSI was of the view that the Skills Development Act needed
             to focus on training people to be entrepreneurs, and that
             there was a need to pilot projects that were meant to
             empower people. SSI was concerned about SETAs that were
             sitting with surpluses on discretionary grants.


             Recommendations by the Committee


             (a)   The Committee should be provided with a report on
                   projects and programmes in which stakeholders were
                   engaged.
             (b)   A skills audit should be conducted in the province.
             (c)   The NWPSDF should identify other stakeholders,
                   including Parliamentary Constituency Offices, to
                   assist in the dissemination of information.
             (d)   It should be provided with the information about the
                   regularity of the meetings of the NWPSDF.
             (e)   It was crucial for members of the NWPSDF to be
       empowered.





       (10)  CCMA



             The Committee met with Mr Kekana, Head of the CCMA in
             Klerksdorp.


             One of the achievements highlighted was that the
             organisation had since managed to stabilise the labour
             market and had succeeded in its endeavour to make a
             paradigm shift from the old system.

             Challenges



             (a)   There were limited resources and facilities. The
                   organisation cannot dictate on facilities to be
                   provided. The province was faced with the problem
                   that eight commissioners had to use five rooms in
                   Rustenburg. The CCMA was unable to address those
                   challenges as a result of resources.
             (b)   There was a shortage of commissioners. There was a
                   need for three to five additional commissioners.
             (c)   There was an infiltration by consultants. The
                   sophistication of parties made it impossible to
                   handle cases speedily. However, with better resources
                   people could be serviced optimally.


             Questions/comments by the Committee


             (a)   Was there any relationship between the CCMA and the
                   PCOs in the province?
             (b)   Were cases brought to the CCMA by domestic workers
                   mainly as a result of victimisation, and how aware
                   are they of their jurisdiction?
             (c)   Was there a database of people whose cases were
                   referred by CCMA to the Labour Court?
             (d)   How frequently was the call-up process used?
             (e)   What was the level of case reviews?
        (f)   More clarity was sought on the enforcement of awards by
                   the CCMA.
             (g)   How did the CCMA deal with cases that took place on
                   the shop floor?
             (h)   Was the shortage of Commissioners the result of
       poaching?
             (i)   The Committee registered its concern over the issue
                   of vulnerable workers who were not unionised, and the
                   disability sector that was characterised by unfair
                   labour practices.


             Responses


             (a)   The CCMA acknowledged that it had no structured
                   relationship with PCOs. It did have a relationship
                   with the paralegals that operated through the advice
                   offices, the DOL and heads of the labour centres. It
                   has just established a relationship with the
                   Department of Land Affairs on evictions.
                   Commissioners have been capacitated to deal with such
                   cases. No relationship had been established with the
                   South African Police Service (SAPS) as yet.
             (b)   The impact of the minimum wage resulted in the
                   dismissal of some domestic workers . However, the
                   common type of victimisation may be related to people
                   living with HIV/AIDS. The other problem was that
                   domestic workers did not become organised. This,
                   however, made it difficult to train them so that they
                   could become aware of the services rendered by the
                   CCMA.
             (c)   There was a database of enforcements and reviews that
                   was sent to the Labour Court. However, the legal
                   officer who was dealing with a particular case did
                   not keep in contact with the worker until the CCMA
                   received an outcome from the Labour Court.
             (d)   The call-up process was meant to assist in the
                   backlog in processing of cases.
             (e)   Ten percent of referred cases go for review. About 80
                   to 100 cases handled monthly-required arbitration.
             (f)   The enforcement of awards to domestic and farm
                   workers remained a problem. The difficulty lay with
                   the enforcement of a writ of execution. The CCMA felt
                   that although the amendments had assisted, the
                   issuing of the writ of execution remained a problem.


             Recommendations by the Committee


             (a)   The CCMA and the DOL should agree on issues that
                   required education and advocacy.
             (b)   A follow-up report that reflected cases, their
                   profiles, for example domestic, farm and mine
                   workers, should be forwarded to the Committee.

    8 October 2004


       Meeting with Labour Market Co-ordinating Forum (LMCF)



       The Committee also met with stakeholders of the LMCF in
       Klerksdorp.


       (1)   Education and Labour Institute


             Concerns raised


             (a)   Not enough was done in consultation with the public
                   representative bodies on legislation. An example was
                   the consultative process during the sectoral
                   determination on the minimum wage.
              (b)  The interpretation of legislation was not the same.
              (c)  Cases took a long time to be processed.
             (d)   Public hearings were not formulated in such a way
                   that the public was able to make an input.


             Recommendation



             The time taken to resolve cases in the Labour Court needed
             attention.


       (2)   FEDUSA


             FEDUSA appreciated and acknowledged that organised labour
             had access to legislators. An appeal was made for an
             amendment so that there could be a reason for conciliation
             not to take place.


             Concerns raised


             The Labour Relations Act (LRA) did not give direction to
             most employers on pre-arbitration. Certain sections in the
             LRA required the CCMA to use minimal powers.



             Recommendation



             Access to the Labour Court should be strengthened.

       (3)   Afrikaanse Handelsinstituut (AHI)

             Concerns raised


             (a)   People did not receive notices on time, which
                   resulted in employers being served with execution
                   orders;
             (b)   Access to the Skills Development Fund;
             (c)   Client service process at the CCMA.

             Responses by CCMA


             (a)   The CCMA acknowledged the limitation of resources,
                   and that there is a need to look into intensifying
                   the area of learnerships. A suggestion made was that
                   the office should look into a possibility of
                   utilising the facilities of the DOL.
             (b)   The servicing of notices differs from the High Court.
             (c)   The execution of the writ is the same as the process
                   in the High Court.


  (4)   COSATU



             COSATU acknowledged the role played by the DOL and the
             CCMA.


             Concerns raised


             (a)   COSATU was concerned about processes relating to
                   Labour Court cases, especially farm worker cases.
             (b)   Casual workers did not benefit from the Basic
                   Conditions of Employment Act.
             (c)   NEDLAC did not do enough to ensure that skills
                   development was enhanced.

       (5)   Black Management Forum

             Concerns raised


                a) Women and the disabled were not represented well.
                b) The South African Revenue Services did not do enough
                   to assist people in filling in the tax returns.
             (c)         Queues in the grants payment pay points were
             too long.

       (6)   NAFCOC

             NAFCOC acknowledged the DOL for the legislation that was in
             place.


             Concern raised


             The DOL had not done enough in driving poverty alleviation
             programmes.

       (7)   SACWU

             SACWU acknowledged the CCMA for empowering stakeholders
             through user forums. It was suggested that these forums be
             extended to other regions.


             Concern raised


             Only organised bodies benefited from the publicity of laws.
             There was a need to improve the role of the public
             broadcaster in order for the information to reach all the
             people.



             Recommendation



             Legislators should monitor the implementation of
             legislation.


       (8)   CCMA

             Concerns raised


             (a)   Commissioners operated on a stringent budget, while
                   having to deal with many cases.
             (b)   Grounds for review according to the legislation was
                   very narrow, and was being widened by the Court. This
                   was an area that needed to be tightened.
             (c)   Bogus trade unions wes a cause for concern. However,
                   the registration of employee organisations needed to
                   be looked at.

       (9)   Media briefing



             The Committee held a media briefing with the SABC at the
             CCMA offices in the North West Province.


        (10)  Recommendations


             (a)   The Committee report should be sent to the DOL and to
                   the two provinces concerned.
             (b)   The Committee should raise the concerns that arose
                   from the visits with the DOL.
  1. Report of the Portfolio Committee on Environmental Affairs and Tourism on Visit to Koeberg Nuclear Power Station, dated 21 June 2005:

  2. Background

    As part of conducting an oversight function, a multi-party delegation of the Portfolio Committee on Environmental Affairs and Tourism visited the Koeberg Nuclear Power Station in Western Cape on the 19th of January 2005.

1.1 Objective

   The main objectives of the visit was to examine and evaluate how
   Koeberg Nuclear Power Station deals with environmental safety and
   learn about its internal business operations.

1.2. Delegation

   A multi-party delegation from the Committee under the leadership  of
   the
   Chairperson, Ms E Thabethe (ANC) included Mr. J Combrick (ANC), Ms N
    Khunou, (ANC), Mr. J Arendse (ANC), Ms MM Ntuli (ANC), Ms R Ndzanga
   (ANC), Mr. A Mokoena (ANC), Mr. S J  Maja  (ANC),  Mr.  DAA  Olifant
   (ANC), Mr. G Morgan (DA) Ms J Semple (DA), Ms C Zikalala (IFP),  and
   Mr. LW
   Greylling (ID).


   The Committee Secretary, Mr. T Manele, Ms  S  Sixaso,  Secretary  to
   Chairperson
   and Mr. J Durand, Parliamentary Liaison Officer, from the Department
   of
   Environmental Affairs and Tourism, accompanied the delegation.

1.3. Reporting

   Having conducted its oversight visit to Nuclear Power Station on the
   19th of February 2005, the Committee to report as follows:
  1. Arrival at Nuclear Power Station

    On arrival, the Acting General Manager Mr. P Prozesky welcomed the delegation and proceeded to outline the programme of the oversight visit that included the briefings on the nuclear cluster, the safety and performance programme, the role and involvement of Eskom in Pebble Bed Modular Reactor (PBMR), and the tour around the station.

2.1. Nuclear Power Station Cluster

   The General Manager of Eskom Nuclear Cluster, Dr R  Pillay,  briefed
   the delegation on the cluster’s activities. The presentation focused
   on the role of Koeberg in national grid,  nuclear  fuel  cycle,  the
   life expectancy of the plant emergency planning, long-  term  health
   effects and human resource challenges.

2.1.1. Potential Health Effect

   According to Dr R Pillay, the primary driver of any health effect is
   dose. This public  dose  is  therefore  perceived  as  an  important
   measurement  of  Koeberg  Nuclear  Power   Station’s   environmental
   management system. The examples of these doses includes  comparative
   dose such as chest X-ray, transatlantic flight, cup  of  coffee  and
   glass of beer.

2.1.2. Emergency Planning

   Koeberg Nuclear Power Station has developed an emergency plan  whose
   objective  is  to  protect  its  staff,  general  public  and,   the
   environment from potential harmful effect of emergency situation  at
   Koeberg.

2.1.3. Protective Actions

   The main protective actions used by Koeberg  Nuclear  Power  Station
   include,  public  notification,  evacuation,   sheltering,   thyroid
   protection, zone isolation, reallocation and, food banning.

2.1.4. Human Resource Challenges

   As nuclear skills are very specific and its creation  and  retention
   is also vital, the organizational human  resource  challenge  facing
   them is a need to develop a national nuclear skills  programme  that
   will ensure the implementation of PBMR  and  other  related  nuclear
   matters.
  1. Safety and Performance

    The Manager of Safety and Performance Evaluation, Mr L Tyabashe, briefed the delegation on organizational safety and performance programme. The main focus of the presentation was on plant, operation and safety, performance and waste management.

3.1 Waste Management

   The delegation was informed that the organisation manages  different
   kinds of waste. The types of waste mentioned included the low  level
   waste such as gloves, plastic and paper, coal and, high level  waste
   such as filters, non-compactable waste, resins and concentrates that
   are all safely stored in Vaalputs Storage Facility.
  1. Eskom Role in Pebble Bed Modular Reactor

    The Senior Manager of Stakeholder Management, Mr. T Stott briefed the delegation on organizational programme of the Pebble Bed Modular Reactor. The presentation focused on an overview, client and investment roles and feasibility study on Pebble Bed Modular Reactor.

4.1. Client Role in Pebble Bed Modular Reactor

   The Generation Division of Eskom is responsible for client  role  in
   PBMR. In June 2000, application for Environmental Impact  Assessment
   (EIA) was submitted to the Department of Environmental  Affairs  and
   Tourism  and  subsequent  to  that  a  consortium   of   independent
   consultant  was  appointed  to  perform  an   Environmental   Impact
   Assessment.


   The  consultation  process  around  EIA  included  extensive  public
   participation, with numerous interaction and  public  meetings  and,
   extended periods for comments during scooping  and  EIA  phases.  In
   October 2002, a final report on environmental impact assessment  was
   submitted to the Department of Environmental Affairs and Tourism. In
   June 2003, the Director–General of the Department  of  Environmental
   Affairs and Tourism issued a positive record of decision.

4.2. Eskom Pebble Bed Modular Reactor Process

   In  developing  its  PMBR  programme,  Eskom  invited  international
   partners to contribute funding, technical  expertise,  international
   stature and credibility. In 2001, a feasibility study was  conducted
   with 22.5% contribution of British Nuclear Fuels Industry, 12.5 % by
   Exelon, 25% by Independent Development Corporation (IDC) and 40%  by
   Eskom. In  2001,  draft  feasibility  report  on  Eskom’s  PBMR  was
   completed. Exelon has since withdrawn from the project.  PBMR  (Pty)
   Ltd is currently in negotiation with potential invertors to  replace
   Exelon.
  1. In-House Tour

    As part of developing an understanding on how Koeberg Nuclear Power Station operates, the delegation conducted an in-house tour to areas such as the Turbine Hall, the Low Level Waste Store, the Emergency Control Centre, the Unit Control Rooms and, the Fuel Pools Unit.

  2. Conclusion and Recommendations

    Having conducted an oversight visit to Koeberg Nuclear Power Station on the 19th of January 2005 and being briefed on organizational activities related to the PBMR, waste management, safety planning and, human resource challenges, the Portfolio Committee on Environmental Affairs and Tourism concludes and recommends as follows:

6.1. Noting that Koeberg Nuclear Power Station has developed  emergency
   plan to ensure  that  it  does  not  have  an  environmental  safety
   problem, it is recommended that the Portfolio Committee wishes to be
   briefed from time to time on environmental  management  polices  and
   mechanisms; and


6.2. Also noting that Koeberg Nuclear Power  Station  has  conducted  a
   feasibility study on PBMR programme, it is further recommended  that
   the Portfolio Committee should  call  relevant  section  within  the
   Department of Environmental Affairs and Tourism to brief members  on
   the findings of the feasibility study.


                        FRIDAY, 24 JUNE 2005

TABLINGS

National Assembly and National Council of Provinces

  1. The Speaker and the Chairperson

                 THE SOUTH AFRICAN PARLIAMENTARY
                        OBSERVER MISSION
                            REPORT ON
            THE 2005 ZIMBABWE PARLIAMENTARY ELECTIONS
    
                          31 MARCH 2005
    

PLEASE NOTE:

A Supplement to this Report, containing the delegation’s observation of the Zimbabwean political background, the legislative framework and the electoral process, is available in the Office of the Clerk of the Papers.

                              REPORT ON
              THE 2005 ZIMBABWE PARLIAMENTARY ELECTIONS

                              Contents

Introduction The objectives of the Report The nature, context and method of work of the mission

The pre-election period Work and deployment of observers Report submissions Events and meetings Political climate Violations of the Electoral Law Compliance with SADC guidelines The media Overview of the pre-election period Preliminary conclusion

Polling Day Introduction Voting Counting

Conclusion

Recommendations INTRODUCTION

On the 31st of March 2005, the Republic of Zimbabwe held her sixth Parliamentary General Elections since Independence on 18 April 1980.

Following an invitation to the Republic of South Africa to send observers to witness these elections, Parliament constituted a 20-member delegation, (hereinafter referred to as the Mission), under the leadership of the hon M T Goniwe, with the mandate of observing the 2005 Zimbabwe Parliamentary Elections.

The Mission was constituted for purposes of:

(a) Assessing whether conditions in Zimbabwe allowed for the conducting of elections that would demonstrate the general will of the Zimbabwean electorate; (b) Assessing whether Zimbabwean voters would have sufficient freedom to cast their votes in secret; (c) Assessing whether the elections were conducted within the context of the Zimbabwean Constitution and the electoral legislative framework; (d) Assisting the people of Zimbabwe, within the context of the African Renaissance, the African experience and reality, to hold successful parliamentary elections.

In brief, Parliament tasked the Mission to, on its behalf, observe, support and work together with the people of Zimbabwe as they prepared and exercised their democratic right to elect parliamentary representatives of their choice.

THE OBJECTIVES OF THE REPORT

The Report seeks to indicate:

  1. Whether the purpose of the Mission was achieved;
  2. Whether in doing so, the Constitutional and legislative framework of Zimbabwe was adhered to;
  3. Whether, in our view, the will of the people of Zimbabwe has been demonstrated through the elections; and
  4. The extent to which our conclusions are based on verifiable data that is presented concisely - including possible recommendations.

THE NATURE, CONTEXT AND METHOD OF WORK OF THE MISSION

  1. The Mission was a united delegation representing Parliament and the people of South Africa. The Mission was constituted by the Parliament of the Republic of South Africa in order to allow South Africans, through their representatives, to play a role in supporting their Zimbabwean neighbours to exercise freely their democratic right to choose their parliamentary representatives.

  2. In addition to being a Mission of the South African Parliament, the Mission’s outlook was also informed by the regional context in which both Zimbabwe and South Africa are members.

  3. More significantly, for South Africa, the parliamentary elections in Zimbabwe have a bearing on the continent’s political and economic initiatives represented by, inter alia, the African Union and its development programme, NEPAD.

  4. The parliamentary elections, therefore, took place at a crucial moment in the history of the African continent.

  5. A further circumstance characterizing the current political environment with regard to Zimbabwe, is the hostile international and regional media environment, which is grossly biased, prejudiced and partisan against the government. State print media is, on the other hand, pro-government pro-ruling party.

  6. In the execution of its mandate, the Mission recognized the sovereignty of the Zimbabwean state and observed the elections in an independent and non-partisan manner.

  7. The Mission observed all aspects of the elections, beginning with the pre-election period, polling day and counting, as well as the political mood after the elections.

  8. The Mission familiarized itself with the Zimbabwean electoral processes, laws, regulations and the Constitution of the land, obtaining relevant information from electoral bodies including the Electoral Supervisory Commission (ESC) and the Zimbabwe Electoral Commission (ZEC).

  9. The mission, through its leadership, paid a courtesy call on the President of the Republic of Zimbabwe, Mr Robert Mugabe. It also paid a courtesy call on the president of the MDC, Mr Morgan Tsvangirai.

  10. The mission, collectively or through its leadership, also interacted with various role players and stakeholders in the electoral process. There were also meetings with Zanu-PF, the MDC, the Zimbabwe Council of Churches, the Zimbabwe Crisis Coalition, the Electoral Supervisory Commission, the Zimbabwe Electoral Commission, the media, and candidates contesting various const ituencies.

  11. The Mission collected data through attending rallies and meetings called by the contesting candidates and other relevant stakeholders.

  12. The Mission travelled to various provinces of Zimbabwe during the pre- election observation period. On polling day, in accordance with the laws of the country, the Mission had access to polling stations and counting centres throughout the country.

  13. The Mission recorded its observations and referred concerns raised to appropriate authorities.

  14. The Mission issued public statements where it deemed necessary it to do so.

  15. The Mission interacted with representatives of other observer missions, including the African Union (AU) and the SADC Observer Mission.

  16. The Mission assessed the role of the media in the electoral pr ocess.

THE PRE-ELECTION PERIOD

Five (5) political parties and fourteen (14) independent candidates contested the 2005 Parliamentary Elections. Zanu-PF and the MDC contested all the constituencies.

Zanu-PF focused its campaign on the anti-colonialist political strategy (Anti-British), the completion of the land reforms and on the successful economic turnaround with its emphasis on the “Look East” policy.

The MDC concentrated its campaign on Zimbabwe’s economic crisis, accusing the government of mismanagement, corruption and cronyism. It encouraged the people of Zimbabwe to vote for the MDC and promised to deal more equitably with the current land distribution issue.

The two main campaigns took place in a calm and peaceful political climate. There were isolated cases where meetings were described as having been “tense but without incident”.

Independent candidates also campaigned without hindrance, under calm and peaceful conditions.

The Mission observers submitted daily reports of their observations and experiences throughout the provinces.

Work and Deployment of Observers

On arrival in Harare, on 14 March 2005, the Mission immediately sat down to work. It received its first briefing from the South African Ambassador to Zimbabwe. The second briefing was from the Zimbabwe Electoral Commission, and finally, the Mission was given a political overview by ambassadorial staff.

On 15 March 2005, the Mission received briefings from the Electoral Supervisory Commission, the Zimbabwe Council of Churches and the Zimbabwe Crisis Coalition.

The Mission convened at the South African Embassy on the 16 March 2005 to receive a background briefing on the security situation in the country. After this briefing, the Mission was divided into teams and deployed to the provinces. The following provinces were covered:

  • Harare and Chitungwiza
  • Mashonaland East
  • Mashonaland West
  • Mashonaland Central
  • Bulawayo Metro
  • Matebeleland South
  • Masvingo; and
  • Manicaland.

Report Submissions

The Mission received 135 reports from its observer teams. Of these, 91 relate to the pre-election period and 44 capture observations on polling day.

Events and Meetings

Numerous political rallies and meetings were observed. Average attendance at rallies ranged between 2 000 and 4 000 people. Some rallies were attended by as many as 25 000 people.

The teams also attended and observed voter education sessions, the training of election monitors, and party canvassing. There were also meetings with political parties, electoral officials, civil society organisations, security officials and other observe rs.

Among the issues discussed at these meetings were the Voters’ Roll, voter registration, the demarcation of constituencies, the placement of polling stations, the recruitment of electoral staff, the voting process, the provision of electoral material, the role of observers, voter education, the role of party agents, the candidates’ list, the political climate, political party campaigning and dispute resolution processes.

Political Climate

In general observer teams indicated that the pre-election polit ical climate in Zimbabwe was calm and peaceful. This observation was also consistent with the determinations made by other observers and by civil society, including the Zimbabwe Council of Churches.

There were, however, instances where some rallies or meetings were described as “tense but without incident ”.

Violations of the Electoral Law

During the pre-election period no violations of the electoral law were observed.

Compliance with the SADC Guidelines

Generally, all teams were satisfied that the SADC Principles and Guidelines were complied with in the period leading to polling day.

In some of the reports there were concerns raised around certain issues, including:

• Equal access to the media
• Food distribution along party political lines
• Intimidation
• Double booking of venues
• Removal/defacing of election posters
• The role of traditional leaders

Observers followed up on these concerns, but no verifiable evidence was found.

The Media

By the time the Mission started its work, regulations had already been promulgated to ensure that the Zimbabwe Broadcasting Holdings (ZBH) gives the contending parties equitable access.

Political parties were allocated 91 free minutes on state television and current affairs shows, interviews, talk shows and general election news characterized the election period.

Furthermore, provision was made for parties that received more than 5% of the vote in the previous parliamentary elections to receive a proportional amount of state funding. In this regard, both the Zanu-PF and MDC received approximately R3 million each, which funds they could use to finance their election campaigns.

Overview of the Pre-election Process

The Mission noted that:

• The delimitation or demarcation process resulted in the reduction of
  urban constituencies by three and an increase of rural constituencies
  by the same number. The Delimitation Commission determined that
  massive urban-rural migration that had taken place in the past
  justified the adjustments.


• Allegations were received that some people were assaulted or
  intimidated and that there was selective distribution of food parcels
  by the government. Observers followed these up. No evidence was found
  to substantiate these allegations.

• Generally, just before the elections, polling stations were properly
  st affed, accessible, easily identifiable and the law had been
  complied with regarding the location and preparation of voting
  stations.

• Voter education was well planned and executed.

• The voter registration process appeared to have been accessible to all
  voters. The Voters’ Roll was accessible to the public and the parties.

• There was satisfaction with the training of electoral staff. They were
  taken through the Electoral Act page by page and the exercise was done
  in user-friendly language. This staff component was composed of both
  young women and men.

• Party agents were trained using practical demonstrations. This
  component also was composed of both women and men.

• The general impression was that security in relation to the electoral
  process was well organised and that the political climate in the
  country was calm and peaceful.

• Other observers, political parties, commentators and leaders in the
  country also expressed a view that there was peace and political
  tolerance in the country and that the people of Zimbabwe were
  demonstrating commendable levels of political maturity.

Preliminary Conclusion

Accordingly, the Mission’s pre-election conclusion was that the country, from both logistical and political perspectives, was well prepared to hold the 2005 Parliamentary Elections.

Based on the reports relating to the pre-election period, the Mission concluded that the pre-election political climate in Zimbabwe was favourable for elections to take place. All parties and candidates had campaigned without hindrance and the parties and candidates themselves had conducted their campaigns in a manner that demonstrated commitment to the promotion of peace, stability and the holding of free and fair elections.

POLLING DAY

Introduction

Cognisant of the fact that an election is not a single event of casting a ballot paper on the day of polling, the SA Parliamentary Observer Mission adopted a comprehensive approach to observing the election process, working to ascertain and preserve the integrity of every stage of the process, from the pre-election phase through to counting.

March 31, 2005 presented the Mission with an opportunity to assess, in line with its mandate, whether conditions prevailed for the Zimbabwean people to elect, freely, their parliamentary representatives.

The observers paid particular attention to the following:

     • Efficiency and impartiality of election staff;
     • Monitoring by party agents and independent monitors and
       observers;
     • Fair access of voters to polling stations and a manageable
       number of voters per constituency;
     • Legal voting procedures, including the Voters’ Rolls, proper
       identification documents, checks and balances against fraud,
       translucent ballot boxes and the security of ballot papers; and
     • Security at the voting precincts

Voting

With regard to the voting process, the Mission noted as follows:

• Party agents, local monitors, regional and international observers
  were present at polling stations.
• The voting process was orderly.
• Polling stations opened on time, staff and election materials were
  present and there were no unauthorised personnel.
• The performance of staff at polling stations was described either as
  efficient or very efficient.
• Election procedures were explained, identities checked and voting was
  secret.
• Security personnel were always present at poling stations.
• Due to certain reasons, some potential voters could not vote. These
  included cases where voters had gone to wrong constituencies - their
  names did not appear on the Voters’ Roll - or did not possess
  acceptable identification documents. Presiding Officers noted the
  reasons and personal details of those turned away.
• Polling stations closed on time. Procedures were followed.

The general conclusion was that the polling process was well managed, transparent for all stakeholders, monitors and observers. The conditions under which people voted were orderly, peaceful and allowed the people to express their democratic will freely.

Counting

With regard to counting, the Mission observed that:

• Counting staff, party agents, local monitors and observers were
  present during the counting process.
• There were no unauthorised personnel during counting and procedures
  were followed.
• Security personnel were always present.
• When disputes arose regarding the status of certain ballot papers,
  these were placed in separate envelopes.
• The performance of counting staff is rated from satisfactory to very
  efficient. The counting exercise went well and was strictly monitored.

CONCLUSION

Therefore, meeting on 2 April 2005, in Harare, the South African Parliamentary Observer Mission unanimously agreed that, with regard to the 2005 Zimbabwe Parliamentary Elections;

• The pre-election processes were well organised and executed.
• The election campaigns were peaceful and parties and candidates had
  the political space to canvass support.
• Parties and leaders demonstrated a commitment to peace and the
  tolerance of divergent views.
• There were adequate and accessible polling stations.
• Polling stations were sufficiently provided for in terms of logistics
  and security.
• Polling stations opened and closed on time.
• There were correct Voters’ Rolls at the stations and the layout was
  done properly.
• Ballot boxes were empty at the start of polling, and were sealed
  correctly afterwards.
• During voting, voters correctly identified themselves. There was no
  intimidation and voting was secret. No repeat voters were observed.
  The voting process was smooth and efficient.
• All persons at the polling and counting stations were accredited.
• The electoral process was, by and large, transparent and observed
  throughout by party agents, monitors and observers.

Therefore, the SA Parliamentary Observer Mission concluded that the 2005 Zimbabwe Parliamentary Elections were executed efficiently. The electoral processes were legitimate and credible and, to the extent that it is possible and reasonable, they allowed for the broad participation of all stakeholders and interested parties.

The electoral processes were executed in line with the laws of the land and, by and large, were consistent with the SADC Principles and Guidelines.

The Mission accordingly concluded that the 2005 Zimbabwe Parliamentary Elections were free and fair.

Recommendations

The March 2005 Parliamentary Elections are critically important for the short- and long-term future of Zimbabwe and the region. Having concluded the electoral process, the country needs to work on rebuilding regional and international confidence through continued focus on electoral reforms and economic revival policies.

Among other things, attention may need to be paid to the reduction of the number of people turned away on voting day. Political parties should also play a role in ensuring that voters are registered correctly.

The Mission felt that it benefited from observing a meticulously planned and executed electoral process. Among the many interesting lessons, the door-to-door voter education programme as well, as the method of voting whereby voters are divided into three queues in alphabetical order were of particularly interest.

                       WEDNESDAY, 29 JUNE 2005

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Finance
1) Report and Financial Statements of the Public Accountants' and
   Auditors' Board for 2004, including the Report of the Independent
   Auditors on the Financial Statements for the year ended 31 December
   2004.

2) Report and Financial Statements of Sasria Limited for 2004,
   including the Report of the Independent Auditors on the Financial
   Statements for the year ended 31 December 2004.
  1. The Minister for Justice and Constitutional Development
1) Draft Regulations made in terms of the Promotion of Administrative
   Justice Act, 2000 (Act No 3 of 2000).
  1. The Minister of Arts and Culture
1) Report and Financial Statements of the National Arts Council of
   South Africa for 2003-2004, including the Report of the Auditor-
   General on the Financial Statements for 2003-2004.

2) Report and Financial Statements of Robben Island Museum for 2003-
   2004, including the Report of the Auditor-General on the Financial
   Statements for 2003-2004 [RP 212-2004].

COMMITTEE REPORTS

National Assembly

  1. Report of the Portfolio Committee on Defence on the Armaments Corporation of South Africa, Limited Amendment Bill [B 14 - 2005] (National Assembly – sec 75), dated 21 June 2005:

    The Portfolio Committee on Defence, having considered the  subject
    of the Armaments Corporation of South  Africa,  Limited  Amendment
    Bill [B14 - 2005] (National Assembly –sec 75), referred to it  and
    classified by the Joint Tagging Mechanism as a  section  75  Bill,
    endorses the classification of the Bill and reports the Bill  with
    an amendment [B 14A -2005].
    
    
    
    The Committee further reports that the current situation  is  that
    the Secretary for Defence and the  Chief  of  the  SANDF  are  ‘ex
    officio’ members of the  Board  of  Directors  of  Armscor,  South
    Africa’s armaments acquisition agency. The  Armaments  Corporation
    of South Africa, Limited Amendment Bill [B14-2005] aims to  remove
    the Chief of the South African National Defence Force (SANDF) from
    the Board  of  Directors  of  Armscor.  This  is  to  address  the
    ‘conflict of interest’ of the  Chief,  who  will  be  ‘player  and
    referee’, i.e. he requests and uses the military equipment as head
    of the military establishment, but also approves  the  acquisition
    and supplier as a director of the board.
    
    
    In addition the Committee and the Department of  Defence  believed
    that the Secretary for Defence as a member of the Board is also in
    a  potential  position  where  there  would  be  a  ‘conflict   of
    interest’.  As  the  head  and  the  accounting  officer  of   the
    Department of Defence (department), he has to oversee and  account
    for  Armscor,  which  receives  a  transfer   payment   from   the
    department. If he is on the board, then he will  not  be  able  to
    objectively oversee and account for the activities of  the  Board.
    This would have adverse implications for corporate governance  and
    adherence to the  Public  Finance  Management  Act.  As  such  the
    Committee amended the bill to also remove the Secretary  from  the
    Armscor board.
    

    Report to be considered.

                      TUESDAY, 12 JULY 2005
    

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Draft bills submitted in terms of Joint Rule 159 (1) Constitutional Matters Amendment Bill, 2005, submitted by the Minister for Justice and Constitutional Development on 1 July 2005. Referred to the Portfolio Committee on Justice and Constitutional Development and the Select Committee on Security and Constitutional Affairs.

                      FRIDAY, 15 JULY 2005
    

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Introduction of Bills
 (1)    The Minister for Justice and Constitutional Development


        i) Constitutional Matters Amendment Bill [B 22 – 2005] (National
           Assembly – sec 75) [Bill and prior notice of its introduction
           published in Government Gazette No 27782 of 12 July 2005.]


     Introduction and referral to the Joint Tagging Mechanism (JTM) for
     classification in terms of Joint Rule 160, on 15 July 2005.


     In terms of Joint Rule 154 written views on the classification of
     the Bill may be submitted to the Joint Tagging Mechanism (JTM)
     within three parliamentary working days.


                        FRIDAY, 22 JULY 2005

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Assent by President in respect of Bills

    1) Petroleum Products Amendment Bill [B 16B – 2004] – Act No 2 of 2005 (assented to and signed by President on 18 June 2005); 2) Sterilisation Amendment Bill [B 12B – 2004] – Act No 3 of 2005 (assented to and signed by President on 18 June 2005); 3) Appropriation Bill [B 7 – 2005] – Act No 4 of 2005 (assented to and signed by President on 18 June 2005); 4) Citation of Constitutional Laws Bill [B 5B – 2005] – Act No 5 of 2005 (assented to and signed by President on 23 June 2005); 5) Re-determination of the Boundaries of Cross-Boundary Municipalities Bill [B 12 – 2005] – Act No 6 of 2005 (assented to and signed by President on 23 June 2005); 6) Taxation Laws Amendment Bill [B 19 – 2005] – Act No 9 of 2005 (assented to and signed by President on 14 July 2005); and 7) Taxation Laws Second Amendment Bill [B 20 – 2005] – Act No 10 of 2005 (assented to and signed by President on 10 July 2005).

  2. Classification of Bills by Joint Tagging Mechanism:

 (1)    The Joint Tagging Mechanism (JTM) on 19 July 2005 in terms of
     Joint Rule 160(3), classified the following Bill as a section 75
     Bill:


     (i)     South African Abattoir Corporation Act Repeal Bill [B 21 –
          2005] (National Assembly – sec 75)
  1. Draft bills submitted in terms of Joint Rule 159

    (1) Auditing Profession Bill, 2005, submitted by the Minister of Finance on 23 June 2005. Referred to the Portfolio Committee on Finance and the Select Committee on Finance.

    (2) Special Pensions Amendment Bill, 2005, submitted by the Minister of Finance on 23 June 2005. Referred to the Portfolio Committee on Finance and the Select Committee on Finance.

National Assembly

  1. Referral of Bills

    The Speaker 1) The Constitutional Matters Amendment Bill [B 22 – 2005] (National Assembly – sec 75) was introduced in the National Assembly on 15 July 2005 and referred to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160, and is now referred to the Portfolio Committee on Justice and Constitutional Development for consideration and report.

       In terms of Joint Rule 147(2), the Chairperson of the National
       Council of Provinces and I, acting jointly, have decided that
       the Portfolio Committee on Justice and Constitutional
       Development of the Assembly and the Select Committee on
       Security and Constitutional Affairs of the Council must confer
       on the subject of the Bill.
    

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister for Justice and Constitutional Development
 a) Draft Amendment Regulation made  in  terms  of  Public  Funding  of
    Represented Political Parties  Act,  1997  (Act  No  103  of  1997)
    submitted in Parliament in terms of section 10 of the Act.


 b) Proclamation No R 18 published in the Government Gazette  No  27468
    dated 6  April  2005:  Referral  of  matters  to  existing  Special
    Investigating Unit and Special Tribunal, made in terms  of  section
    2(1) of the Special Investigating Units and Special  Tribunal  Act,
    1996 (Act No 74 of 1996).

 c) National Assembly
  1. The Speaker

    a) Letter received from the President dated 12 July 2005 informing the National Assembly of the employment of the South African Defence Force:

    EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE IN COTE D’IVOIRE IN FULFILLMENT OF THE INTERNATIONAL OBLIGATIONS OF THE REPUBLIC OF SOUTH AFRICA TOWARDS COTE D’IVOIRE

    This serves to inform the National Assembly that I authorised the employment of the South African National Defence Force (SANDF) personnel to Cote D’Ivoire for service in fulfillment of the International obligations of the Republic of South Africa towards Cote D’Ivoire, in the provision of assistance in the implementation of the Pretoria Agreement, with specific emphasis on the Disarmament, Demobilisation and Reintegration process.

    The employment was authorised in accordance with the provisions of section 201(2)(c) of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996), read with section 93 of the Defence Act, 2002(Act No 42 of 2002).

    A total of 46 members of the SANDF will be deployed for the mission as from 08 July 2005 to 31 March 2006.

    The total estimated cost to be borne by South Africa for the deployment of personnel to the mission until 31 March 2006 will be R 26 090 724.

    I will communicate this report to the Members of the National Council of Provinces and the Chairperson of the Joint Standing Committee on Defence, and wish to request that you bring the contents hereof to the notice of the National Assembly.

    Regards

    TM MBEKI PRESIDENT

    b) Report of the Public Service Commission on Financial Misconduct for 2002-2003 and 2003-2004 financial years [RP 41/2005].

                         FRIDAY, 29 JULY 2005
    

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. Introduction of Bills
 (1)    The Minister of Education


     ii) Education Laws Amendment Bill [B 23 – 2005] (National Assembly
         – sec 76 [Bill and prior notice of its introduction published
         in Government Gazette No 27599 of 27 May 2005.]


     Introduction and referral to the Portfolio Committee on Education
     of the National Assembly, as well as referral to the Joint Tagging
     Mechanism (JTM) for classification in terms of Joint Rule 160, on
     27 July 2005.


     In terms of Joint Rule 154 written views on the classification of
     the Bill may be submitted to the Joint Tagging Mechanism (JTM)
     within three parliamentary working days.
  1. Membership of Committees

    The following changes have been made to the membership of Joint
                    Monitoring Committee viz:
    

    JMC on Improvement of Quality of Life and Status of Children, Youth and Disabled Persons:

    Appointed: Mazibuko, Ms N F Discharged: Madlala, Ms M M

National Assembly

  1. Membership of Committees
 (1)    The following changes have been made to the membership of
    Standing Committees, viz:

    Public Accounts:
    Appointed: Molefe, Mr C T

 (2)    The following changes have been made to the membership of
    Portfolio Committees, viz:

    Correctional Services:
    Appointed: Khoarai, Mr L P
    Discharged: Magau, Ms K R

    Labour:
    Discharged: Oliphant, Mr G G
  1. Membership of the Assembly

    (1) The following members will vacate their seats in the National Assembly with effect from 1 August 2005:

           Mpaka, H M; Ntshulana-Bhengu, N R; Magazi, M N; Joemat, R    R; Mnandi, P N; Herandien, C B.
    

    (2) The following member will vacate his seat in the National Assembly with effect from 31 July 2005:

      Durr, K D S.
    
      The vacancy which occurred owing to Mr K D S Durr vacating his    seat in the National Assembly with effect from 31 July 2005 is to    be filled with effect from 1 August 2005 by the nomination of Mr H    B Cupido.
    

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Transport

    a) Report and Financial Statements of the South African Maritime Safety Authority (SAMSA) for 2002-2003, including the Report of the Auditor-General on the Financial Statements for 2002-2003.

    b) Report and Financial Statements of the South African Maritime Safety Authority (SAMSA) for 2003-2004, including the Report of the Auditor-General on the Financial Statements for 2003-2004.

  2. The Minister of Safety and Security

a) Proclamation No R.18 published in Government Gazette No 27502 dated
   15 April 2005: Commencement of the Protection of Constitutional
   Democracy Against Terrorist and Related Activities Act, 2004 (Act No
   33 of 2004).


b) Proclamation No R.22 published in Government Gazette No 27598 dated
   20 May 2005: Notification by President in respect of entities
   identified by the United Nations Security Council in terms of
   section 25 of the Protection of Constitutional Democracy Against
   Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).


c) Government Notice No R.474 published in Government Gazette No 27598
   dated 20 May 2005: Direction by the National Commissioner of the
   South African Police Service in terms of section 12(3) of the
   Protection of Constitutional Democracy Against Terrorist and Related
   Activities Act, 2004 (Act No 33 of 2004).
  1. The Minister of Trade and Industry

    a) Government Notice No R.282 published in Government Gazette No 27419 dated 29 March 2005: Assignment of inspection functions in terms of the Credit Agreements Act, 1980 (Act No 75 of 1980).

    b) Government Notice No R.283 published in Government Gazette No 27419 dated 29 March 2005: Assignment of inspection functions in terms of the Sale and Service Matters Act, 1964 (Act No 25 of 1964).

    c) Government Notice No R.293 published in Government Gazette No 27440 dated 8 April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58 of 1962).

    d) Government Notice No R.294 published in Government Gazette No 27440 dated 8 April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58 of 1962).

    e) Government Notice No R.295 published in Government Gazette No 27440 dated 8 April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58 of 1962).

    f) Government Notice No R.296 published in Government Gazette No 27440 dated 8 April 2005: Strategic Industrial Project (SIP) in terms of the Income Tax Act, 1962 (Act No 58 of 1962).

    g) Government Notice No R.358 published in Government Gazette No 27475 dated 15 April 2005: International Trade and Administration Commission of South Africa: Countervailing Regulations in terms of the International Trade Administration Act, 2002 (Act No 71 of 2002).

  2. The Minister of Water Affairs and Forestry

    a) Government Notice No 513 published in Government Gazette No 27614 dated 3 June 2005: Release of parts of a state forest which is no longer required for forestry in terms of sections 50(4) of the National Forests Act, 1998 (Act No 84 of 1998).

    b) Government Notice No 874 published in Government Gazette No 27650 dated 3 June 2005: Prohibition on the making of fires in the open air, the destruction by burning of ground cover, including slash, the clearing or maintenance of a fire belt by burning or the execution of blockburns: Kwazulu-Natal Province in terms of the Forest Act, 1984 (Act No 122 of 1984).

    c) Government Notice No 531 published in Government Gazette No 27641 dated 10 June 2005: Transformation of the Umlaas Irrigation Board. Magisterial Districts of Pietermaritzburg, Camperdown and Richmond, Kwazulu-Natal Province, into the Upper Mlazi Water User Association, Water Management Area number 11, Kwazulu-Natal Province in terms of the National Water Act, 1998 (Act No 36 of 1998).

    d) Government Notice No 532 published in Government Gazette No 27641 dated 10 June 2005: Transformation of the Groenland Irrigation Board, Magisterial District of Caledon (Theewaterskloof Municipality), Western Cape Province, into the Groenland Water User Association, Water Management Area number 18, Western Cape Province in terms of the National Water Act, 1998 (Act No 36 of 1998).

    e) Government Notice No 533 published in Government Gazette No 27641 dated 10 June 2005: Transformation of the Vanwyksdorp Irrigation Board, Magisterial District of Calitzdorp, Western Cape Province, into the Vanwyksdorp Water User Association, Water User Association, Water Management Area number 16, Western Cape Province in terms of the National Water Act, 1998 (Act No 36 of 1998).

    f) Government Notice No 534 published in Government Gazette No 27641 dated 10 June 2005: Establishment of the Nzhelele Catchment Water User Association, Vhembe District Municipality, Limpopo Province, Water Management Area number 1 in terms of the National Water Act, 1998 (Act No 36 of 1998).

    g) Government Notice No 558 published in Government Gazette No 27674 dated 10 June 2005: Prohibition on the making of fires in the open air, the destruction by burning of slash and clearing or maintenance of fire belts by burning and the execution of blockburns: Districts of Nelspruit, White River, Pilgrim’s Rest, Lydenburg, Belfast, Waterval-Boven, Carolina and Barberton in terms of the Forest Act, 1984 (Act No 122 of 1984).

    h) Government Notice No 559 published in Government Gazette No 27674 dated 10 June 2005: Prohibition on the making of fires in the open air, the destruction by burning of slash and clearing or maintenance of fire belts by burning and the execution of blockburns: Districts of (A) Ermelo, Eerstehoek, Carolina and Waterval-Boven; (B) Piet Retief and Wakkerstroom in terms of the Forest Act, 1984 (Act No 122 of 1984).

    i) Government Notice No 560 published in Government Gazette No 27674 dated 10 June 2005: Prohibition on the making of fires in the open air, the destruction by burning of slash and clearing or maintenance of fire belts by burning and the execution of block- burns Vhembe District Municipality (formerly Soutpansberg areas) in terms of the Forest Act, 1984 (Act No 122 of 1984).

    j) Government Notice No 561 published in Government Gazette No 27674 dated 10 June 2005: Prohibition on the making of fires in the open air, the destruction by burning of slash and clearing or maintenance of fire belts by burning and the execution of block- burns Mopane District Municipality (formerly Letaba and Pietersburg Districts) in terms of the Forest Act, 1984 (Act No 122 of 1984).

    k) Government Notice No 554 published in Government Gazette No 27664 dated 10 June 2005: Release of state forest land at Sederberg, Grootvadersbosch, Hawequas, (Limtedberg) and Kogelberg Forest Reserves – Western Cape, which is no longer required for forestry purposes in terms of the National Water Act, 1998 (Act No 36 of 1998).

    l) Report of the Department of Water Affairs and Forestry to the National Assembly on Write-off of Loan Guaranteed by the State (Kanoneiland Settlement Management Board), in terms of section 70(4) of the Public Finance Management Act, 1999 (Act No 1 of 1999).

National Assembly

  1. The Speaker

    Report on an Investigation by the Public Protector into an Allegation of Misappropriation of Public Funds by the Petroleum Oil and Gas Corporation of South Africa, trading as PetroSA, and Matters Allegedly Related Thereto.

    Referred to the Portfolio Committee on Minerals and Energy for consideration.

COMMITTEE REPORTS

National Assembly

  1. Report of the Portfolio Committee on Agriculture and Land Affairs on the South African Abattoir Corporation Act Repeal Bill [B 21 – 2005], dated 14 June 2005:

      The Portfolio Committee on Agriculture and Land Affairs, having   considered the subject of the South African Abattoir Corporation   Act Repeal Bill [B 21 – 2005], referred to it and classified as a   section 75 Bill, reports the Bill without amendment.
    
                     TUESDAY, 2 AUGUST 2005
    

ANNOUNCEMENTS

National Assembly

  1. The Speaker

    Ms P Mlambo-Ngcuka has been appointed as Leader of Government Business in the National Assembly with effect from 28 June 2005, in terms of section 91(4) of the Constitution of the Republic of South Africa, 1996 (Act No 108 of 1996), thereby replacing Mr C Nqakula who had been appointed on 15 June 2005.

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Finance

    a) Response of National Treasury to Recommendations of the Portfolio Committee on Finance on Budget Vote 8 – National Treasury for 2005- 2006 and Strategic Plan.

    b) Response of National Treasury to Recommendations of the Portfolio Committee on Finance on the South African Revenue Services (SARS) Strategic Plan for 2005 to 2008.

    c) Response of National Treasury to Recommendations of the Portfolio Committee on Finance on Budget Vote 13 – Statistics South Africa.

    d) Annual Report of the South African Reserve Bank - Bank Supervision Department for 2004 [RP 10-2005].

    e) Government Notice No 535 published in Government Gazette No 27656 dated 6 June 2005: Notice setting out particulars of areas demarcated by Municipalities of Ekurhuleni, Msunduzi, Nelson Mandela and Polokwane in terms of section 13quat of the Income Tax Act, 1962 (Act No 58 of 1962), which shall constitute urban development zones.

    f) Government Notice No R.25 published in Government Gazette No 27681 dated 17 June 2005: Fixing of a date on which section 14(1)(a) of Revenue Laws Amendment Act, 2004 (Act No 32 of 2004), shall come into operation.

  2. The Minister of Safety and Security

    a) Proclamation No R.31 published in Government Gazette No 27746 dated 1 July 2005: Notification by President in respect of entities identified by the United Nations Security Council in terms of section 25 of the Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).

    b) Proclamation No R.29 published in Government Gazette No 27713 dated 1 July 2005: Notification by President in respect of entities identified by the United Nations Security Council in terms of section 25 of the Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004 (Act No 33 of 2004).

  3. The Minister of Education

    a) Government Notice No R.744 published in Government Gazette No 27819 dated 20 July 2005: National Policy regarding Further Education and Training Programme: Approval of the Document, the National Senior Certificate: A qualification at Level 4 on the National Qualifications Framework (NQF), in terms of the National Education Policy Act, 1996 (Act No 27 of 1996) and the South African Schools Act, 1996 (Act No 84 of 1996).

COMMITTEE REPORTS

National Assembly

  1. Tenth Report of Standing Committee on Public Accounts: Business and Arts South Africa, dated 8 June 2005:

  2. INTRODUCTION The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Business and Arts South Africa for the year ended 31 March 2004, tabled in Parliament on 03 September 2004 and referred to it, reports as follows:

  3. AUDIT OPINION

    The Committee commends the Board and the Executive of the Business and Arts South Africa for the unqualified audit opinion expressed by the independent auditors, Grant Thornton, and trusts that future audit opinions will be equally unqualified.

  4. CONCLUSION

    The Committee is of the view that no further interaction with the accounting authority of Business and Arts South Africa is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Eleventh Report of Standing Committee on Public Accounts: William Humphreys Art Gallery, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the William Humphreys Art Gallery for the year ended 31 March 2004, tabled in Parliament on 31 August 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee commends the Council of the William Humphreys Art Gallery for the unqualified audit opinion expressed by the Auditor General and trusts that future audit opinions will be equally unqualified.

  1. CONCLUSION

    The Committee is of the view that no further interaction with the accounting authority of William Humphreys Art Gallery is necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Twelfth Report of Standing Committee on Public Accounts: Council for Medical Schemes, dated 8 June 2005:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Council for Medical Schemes for the year ended 31 March 2004, tabled in Parliament on 29 September 2004 and referred to it, reports as follows:

AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts that future audit opinions shall be equally unqualified.

EMPHASIS OF MATTER

The Committee notes the incidence of non-compliance with the Public Finance Management Act regulations and expects the situation to be rectified by the next audit.

CONCLUSION

The Committee is of the view that no further interaction with the Council of Medical Schemes would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Thirteenth Report of Standing Committee on Public Accounts: Engelenburg House Art Collection, dated 8 June 2005:

  2. INTRODUCTION

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Engelenburg House Art Collection for the year ended 31 March 2004, tabled in Parliament on 21 September 2004 and referred to it, reports as follows:

  3. AUDIT OPINION

    The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts that future audit opinions shall be equally unqualified.

  4. CONCLUSION

    The Committee is of the view that no further interaction with the Engelenburg House Art Collection would be necessary for the financial year under review.

    The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Fourteenth Report of Standing Committee on Public Accounts: Statistics South Africa, dated 8 June 2005:

A. Introduction

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor General on the Financial Statements of Statistics South Africa for the year ended 31 March 2004, tabled in Parliament on 28 September 2004 and referred to it reports as follows:

Expenditure procured in contravention of tender procedures (par 3.1, page 96)

The Auditor-General reported that STATS SA had once again not complied with procurement regulations during the year under review. State Tender Board regulations were not complied with in the procurement of services amounting to R3,3 million from the same supplier that services amounting to R16,1 million had been procured irregularly in the previous financial year (2002/03)

The Committee recommends that the Accounting Officer immediately takes all appropriate steps to ensure that, in future – a) all matters of procurement within STATS SA are compliant with all regulatory requirements, including State Tender Board Regulations and Regulations in terms of the Framework for Supply Chain Management; and b) Disciplinary enquiries take place, as required by the PFMA, in all instances where negligence or wrongdoing may have taken place in order to cultivate a culture of compliance and discipline in line with Government’s Batho Pele concept.

Regarding the three amounts of irregular expenditure in question (R16,1 million; R3.3 million, and R9 million)[1], the Committee further recommends that the Accounting Officer reports –

c) whether investigations in terms of sections 84 and 44 of the Public Finance Management Act had taken place, and if not, why not; and if so, what the outcomes of the investigations were, and d) why the notes to the financial statements did not disclose, as required, detail regarding disciplinary actions taken in the case of irregular expenditure, or in the case of fruitless and wasteful expenditure.[2]

Unreconciled advances written off (par 3.2, page 96)

The Auditor General reported that an amount of R1.3m was written off without any steps first having been taken to recover it.

The Committee, therefore, recommends that the Accounting Officer ensures that:

a) At all times, he carries out his responsibility of ensuring that
   before any debt is written off, he ensures that evidence exists that
   all reasonable steps have been taken to recover the debt in question,
   and that is it in fact irrecoverable;
    b) Finalise the investigation on the reasons for R1.3m and report
       to Parliament, sixty days after this report has been adopted by
       Parliament; and
    c) Take disciplinary action against officials responsible for poor
       control and financial administration.

Asset Registers (par. 3.3, page 97)

Auditor General reported that separate registers are kept for office equipment, computers and related equipment. The computer assets and related equipment of R13.1m could not be verified.

The Committee recommends that the Accounting Officer urgently ensures that:

a) Responsibility for a complete and accurate asset register is vested in a single senior manager at STATS SA who can be held responsible for the asset register in future; b) Appropriate measures are taken to ensure that the head of asset management will receive the support from all division heads to ensure a speedy and effective rectification of the weaknesses, e.g. including in the performance contracts of all line managers asset management as an area of responsibility; and that the R13.1m computer assets are verified; and c) A proper plan with clear target dates is provided to the Minister, in terms of which the Accounting Officer can be held accountable for the rectification of this matter.

Tax Payments (par 5.1, page 97)

The Committee is concerned that the Auditor-General could not verify the validity and accuracy of payments to enumerators and related tax and levies due to late submission of the reconciliations and supporting documents.

The Committee recommends that in future the Accounting Officer ensures that the necessary reconciliations are done, and supporting documents are submitted timeously.

5 Delegation of Authority (par 5.2.1, page 97)

The Auditor-General reported that delegation of authority to budget managers was inadequate and very broad.

The Committee recommends that the Accounting Officer:

a) Comply with Treasury Regulation 15.12.1 and assign authority in writing to approve warrant vouchers, cheques or electronic payments; b) Delegates authority in terms of other best practices, e.g. specifying the levels of approval per post and correct rank, indicating whether authority can be delegated further, and regularly reviewing the delegations.

Internal Audit recommendations

The Committee is not satisfied with the delay in the implementation of internal audit recommendations.

The Committee therefore recommends that the Accounting Officer ensures that:

a) All outstanding internal audit recommendations are implemented as a matter of urgency; and b) Quarterly reports are submitted to the Minister on progress being made by management in response to internal and external audit findings (including a report by the Audit Committee on the adequacy of the focus areas of internal audit).

The Committee further recommends that the required risk management strategy[3] – not available during the year under review – is immediately finalised and submitted to the Auditor-General for auditing purposes.

Vacancies

The Accounting Officer confirmed that the Deputy Director-General (Population Statistics) has been suspended for a period of two years and that other critical positions are still not filled due to scarcity of skills. The Committee recommends that the Accounting Officer ensures that he -

a) Takes all the necessary steps to ensure that STATS SA has the required senior management capacity in order to deliver on its important mandate; b) Reports progress regarding the filling of all critical top management positions to the Minister on a regular basis; and (c) The suspension of the DDG is addressed and finalised as a matter of urgency.

General

The Committee recommends that all issues raised above are addressed in future strategic and business planning of STATS SA.

The Committee further recommends that Parliament be provided with a progress report made on the matters raised above.

Report to be considered.

  1. Fifteenth Report of Standing Committee on Public Accounts: Municipal Demarcation Board, dated 8 June 2005:

Introduction

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor General on the Financial Statements of the Municipal Demarcation Board for the year ended 31 March 2004, tabled in Parliament on 29 September 2004 and referred to it reports as follows:

FINANCIAL MANAGEMENT (page 103, 4.1, 2003/04 annual report)

The Auditor General reported that policies and procedures as implemented by management were not fully adhered to.

The Committee recommends that:

a) The Audit Committee should review whether the implementation of the control measures has occurred.

b) The MDB should report to this committee that all deficiencies have been resolved.

c) MDB should acknowledge non-compliance and deal with the root causes of weak financial management and compliance with regulations and procedures.

d) MDB should ensure that there are compensating controls to take care of operational segregation, e.g public participation and maps.

DONOR FUNDING (page 103, 4.3, 2003/04 annual report)

It was reported that MDB did not keep accurate records of the spending of the Danish donor funds received as required by the Donor Funding Agreement.

The Committee recommends that:

a) The MDB implements control measures to ensure that the terms of the donor funding agreement are complied with.

b) The Audit Committee should review the compliance with the donor funding agreement.

BUDGET PROCESS / GOING CONCERN (page 103, 4.4, 2003/04 annual report)

It was reported that the following factors indicate that the going concern ability of the MDB appears to be at risk:

a) The accumulated surpluses at the end of 2003/04 are not considered sufficient to address the going concern problem faced by the MDB.

The Committee recommends that:

  i) The MDB and National Treasury should resolve  the  funding  issues,
     and progress on this should be reported to this Committee.

b) The MDB does not have an effective system of monitoring its expenditure against the allocated budget. The Committee recommends that:

  i) The MDB should implement adequate measures to monitor  the  budget,
     the implementation of which will be followed up by the AG’s Office;

 ii) MDB should ensure that they put in place sustainable measures  with
     regard to their budgeting processes; and

iii) MDB to write to SCOPA  with  regard  to  when  sustainable  control
     measures will be put in place.

COMPUTERISED GENERAL CONTROLS (page 103, 4.1, 2003/04)

The Auditor-General identified that there was a lack of password controls at the Board.

The Committee recommends that:

(a) The MDB should satisfy the Committee that it will ensure that all its policies and procedures in regard to its computerised system have been implemented, especially with regards to implementing the necessary password controls to safeguard IT system.

GENERAL

(a) The Committee recommends that the Portfolio Committee on the Department of Provincial and Local Government should follow up on the role of DPLG in supporting the MDB; and (b) Within 60 days after this report has been adopted by Parliament, MDB should supply the Committee with actual amounts and rates of the consultants.

Report to be considered.

  1. Sixteenth Report of Standing Committee on Public Accounts: National Housing Finance Corporation Limited, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the National Housing Finance Corporation for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by Ernst & Young and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with National Housing Finance Corporation Limited would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Seventeenth Report of Standing Committee on Public Accounts: National Urban Reconstruction and Housing Agency, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the National Urban Reconstruction and Housing Agency for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors Fisher Hoffman and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with the National Urban Reconstruction and Housing Agency would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Eighteenth Report of Standing Committee on Public Accounts: Public Service Commission, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Public Service Commission for the year ended 31 March 2004, tabled in Parliament on 21 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with the Public Service Commission would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Nineteenth Report of Standing Committee on Public Accounts: The Social Housing Foundation, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of The Social Housing Foundation for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by Price WaterHouseCoopers and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with The Social Housing Foundation would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Twentieth Report of Standing Committee on Public Accounts: Special Investigating Unit , dated 8 June 2005:

  2. I NTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Special Investigating Unit for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by Price WaterHouseCoopers and trusts that future audit opinion shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with Special Investigating Unit would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Twenty-First Report of Standing Committee on Public Accounts: Thubelisha Homes, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of Thubelisha Homes for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by Deloitte & Touché and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with Thubelisha Homes would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Twenty-Second Report of Standing Committee on Public Accounts: Parliament of the Republic of South Africa, dated 8 June 2005:

A. Introduction

The Standing Committee on Public Accounts, having considered the Annual report and the Report of the Auditor General on the Financial Statements of Parliament for the ended 31 March 2004, tabled in Parliament on 4 November 2005 and referred to it, reports as follows:

  1. Expenditure (par 3.2, page 71)

During the period under review there were insufficient controls over payment vouchers. The Auditor-General had found that no supporting documentation for payments amounting to R3 050 068 could be submitted for auditing purposes.

The Committee recommends that the Accounting Officer urgently ensures that:

(a) All procedure manuals are updated to ensure clarity regarding the supporting documentation required for all items of expenditure, and that staff who do not comply with the requirements be dealt with in terms of the applicable disciplinary code; (b) Managers authorising payments do so only in cases where the required supporting documentation exists; and (c) The inadequacies regarding the filing system are addressed without delay.

  1. Receivables and Payables (par 3.5 & 3.6, page 72)

The Auditor General reported that a complete debtors age analysis could not be submitted for audit purposes and the recoverability of the debtors could thus not be determined. An approved debt control policy did not exist during the period under review. Also, the creditor’s reconciliation revealed an overstatement of R6 726 706; and proof of the validity of, or services rendered in respect of payments amounting to R4 624 213 could not be submitted for auditing purposes. The Committee found this to be unacceptable and recommend that Parliament should submit documentation timeously.

The Committee therefore recommends that the Accounting Officer ensures that:

(a) Debtors are properly administered and managed in accordance with an approved debt control policy, including ensuring that a debtors age analysis is available as required, and that all irrecoverable debtors are written off in terms of the applicable policies and procedures; (b) Payables are disclosed in the financial statements in terms of the applicable accounting policy; (c) Creditors’ reconciliations are reviewed and authorised; (d) Use of suspense account is discouraged; and (e) The financial management skills audit is finalised and recommendations implemented as a matter of urgency.

  1. Internal Control (par 5.4, page 75)

The Auditor General reported that various internal and external audit findings in respect of previous audits had not received the necessary attention from management. There was also no policy or system in place to follow-up internal and external audit findings to ensure that corrective steps are taken, with the result that weaknesses are not rectified timeously or not at all.

The Committee therefore recommends that the Accounting Officer:

(a) Urgently implement an effective system in terms of which all internal and external audit findings and recommendations are responded to by management and corrective actions assessed.

  1. Third party payments and employee benefits and compensation (par 3.3, page 71;par 3.8, page 73 and par 5.2, page 74)

The Auditor-General reported concern regarding the following aspects:

▪ The occurrence of third party payments that could not be traced;
▪ Leave entitlement of employees and leave paid out on resignation;
  ▪ The correctness of medical aid allowances paid to various staff
    members since no proof was submitted that the employees belong to a
    medical aid scheme as well as tarriffs in respect of employer and
    employees' contribution; and
   ▪ General problems regarding the implementation of the Manqoba
     management information system.




  The Committee recommends that the Accounting Officer ensures that:-

a) A proper audit trail exists for all payments in order to verify payments to the cash book and relevant bank statements; and furthermore, the Committee finds it unacceptable that third party payments amounting to “R7m” could not be supplied timeously for auditing. b) All the necessary steps are taken to ensure that leave is managed properly, inter alia ensuring that – ▪ the backlog of leave forms should be captured on books of account as a matter of urgency; ▪ monthly verification of leave taken versus leave captured be completed by the division managers; and c) Records are updated in respect of medical allowances according to the employee contracts, d) Correct contributions are paid by employer and employee; and (e) Urgently rectify mistakes flowing from the implemenation of the Manqoba system.

  1. Loans granted to former members of Parliament (note 11, page 89) In the notes to the annual financial statements on page 89, an amount of R87 000 is disclosed as loans to former Members of Parliament for the purposes of acquiring motor vehicles.

(a) The Committee therefore recommends that the accounting officer ensures that an investigation is done to determine the possibility of recovering the loans to the former Members of Parliament and a report, in this regard, is submitted to Parliament sixty days after this report is adopted by Parliament.

  1. Donor funding (par 3.1, page 71)

The Committee is concerned that the Auditor General could not confirm the validity and completeness of donor funding received by Parliament from various local and foreign donors during the year under review.

The Committee recommends that the Accounting Officer ensures that:

(a) The financial statements of Parliament disclose all donations received; (b) A proper audit trail exist for the purposes of the internal and external auditors; (c) A formal policy that governs donor funding and financial accountability is implemented as a matter of urgency; (d) All donations received are approved by the Presiding Officers of Parliament in terms of their controlling and supervisory functions provided for in section 3 of the Public Finance Management Act and other applicable legislation.

Inventories and Parliamentary Shop (par. 3.7, page 72; 5.1, page 73 )

Notwithstanding various shortcomings reported on by the Auditor-General in the previous management letters, these were again noted in the year under review.

The Committee recommends that the Accounting Officer ensures that:

(a) Issues raised by the Auditor General in management letters are addressed; (b) The necessary financial management policies and procedures, as well as a proper system, are implemented to control inventories; and (c) Stock-taking and the financial progress of the shop are monitored and, in regard to the above, a report is submitted to Parliament sixty days after this report is adopted by Parliament.

Report to be considered.

  1. Twenty-Third Report of Standing Committee on Public Accounts: National Department of Health, dated 8 June 2005:

  2. Introduction

    The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor General on the Financial Statements of the National Department of Health for the year ended 31 March 2004, tabled in Parliament on 6 October 2004 and referred to it, reports as follows:

A. MAIN VOTE

Transfer payments and Conditional Grants to provinces (par 3, page 61-62)

During the year under review, transfer payments to various provincial
   departments constituted 91.4% (approximately R7 billion) of the    Department of Health' expenditure.  The report of the  Auditor General   revealed fundamental deficiencies and non-compliance with the provisions
 of the Division of Revenue Act, as well as instances of inadequate
                  monitoring of conditional grants.

The Committee recommends that the Accounting Officer immediately:

(a) Takes all appropriate steps to comply with the requirements of the Division of Revenue Act relating to transfer payments in particular those sections that deal with underspending and non- achievement of objectives; (b) Ensures the development and implementation of a policy framework and clear guidelines for grant utilisation and accountability in the provinces; (c) Carry out ongoing financial and operational monitoring, especially on-site monitoring; and (d) Implements effective project management systems and processes within the Department for general monitoring, as well as to ensure an early warning system to timeously identify and address problem areas.

Inadequate monitoring of conditional grants (par. 5.1, page 62)

It was reported that no distinction was made between equitable share funding and conditional grant funding in the financial management systems of the benefiting provinces.

The Committee recommends that the Accounting Officer immediately facilitate the implementation of effective management systems that will clearly separate grant funds from equitable share funds, so as to ensure that funds are utilised for the purposes defined in the business plans and the DORA framework.

Transfer payments to Non-Governmental Organisations (NGO’s) (par 5.3, page 62)

The Auditor-General reported that an amount of R110 million was transferred to NGO’s. However, there was non-compliance with the provisions of the PFMA and the Treasury Regulations as well as the conditions of funding agreements with the department. The Department transferred funds without obtaining assurance from the NGOs that they had implemented effective, efficient and transparent financial management systems.

The Committee recommends that the Accounting Officer:

(a)     Complies with his legal obligation regarding transfer of  funds
    by obtaining the assurances required by the PFMA in  all  instances
    where funds are transferred, or run the risk of being found  guilty
    of financial misconduct;
(b)     Immediately takes  all  appropriate  steps  in  monitoring  the
    performance and compliance with the grant conditions of NGOs;
(c)     Facilitates a process to ensure  that  the  Financial  Year  of
    NGO's coincide with the Department's financial year.

Fixed Assets (par 5.2, page 62)

The fixed asset register maintained on the logistical system is not integrated with the accounting system of the Department. Controls over the movement of assets were also reported to be inadequate.

The Committee therefore, recommends that the Accounting Officer urgently ensure that:

(a) A complete asset and inventory register is maintained in terms of best practice, and that it be verified and reviewed by a senior official on a regular basis; and

(b) Financial management policies and procedures are established or refined in order to enhance the custody and safekeeping of assets and inventory.

Vacancies and personnel turnover

The Committee recommends that the Portfolio Committee on Health:

(a) Monitors the progress with the filling of all vacancies, especially critical top management positions; (b) Ensures that, overall, the issues raised by the Committee in this Report, are addressed in the Department’s next strategic plan, and are monitored for implementation.

South African National Aids Trust (SANAT)

In 2002 SANAT was established with a donation of R20 million. The Auditor- General reported that inadequate progress has been made regarding the objectives of the Trust as set out in the Deed of Trust, and that fruitless and wasteful expenditure of R571 114 had been incurred. The Committee recommends that the Accounting Officer ensures that:

(a) Proper planning is done in order to achieve the objectives of the Trust, including the preparation of a budget as required by the PFMA six month prior to the year end. (b) The membership to the Board of Trustees is finalised and that the Board is functional as a matter of urgency, and progress in this regard be provided to Parliament sixty days after this report has been adopted by Parliament; and (c) Meeting of the Trustees three times a year is facilitated as required by par. 10.3 of the Deed of Trust.

Report to be considered.

  1. Twenty-Fourth Report of Standing Committee on Public Accounts: National Home Builders Registration Council, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the National Home Builders Registration Council for the year ended 31 March 2004, tabled in Parliament on 29 October 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts that future audit opinions shall be equally unqualified.

  1. EMPHASIS OF MATTER

The Committee notes that the NHBRC has not adopted a formal guide and policy on the accounting methods and standards for the recognition of premium income and insurance/warrant liabilities and expect this situation to be rectified in accordance with South African Statements of Generally Accepted Accounting Practice, by the following audit.

The Committee further notes that the new Council was not yet appointed by 31 March 2004 in accordance with Section 4(1) of the Housing Consumers Protection Measures Act, 1998 and will monitor the situation in the following audit report.

  1. CONCLUSION

The Committee is of the view that no further interaction with the National Home Builders Registration Council would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Twenty-Fifth Report of Standing Committee on Public Accounts: National Prosecuting Authority, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the National Prosecuting Authority for the year ended 31 March 2004, tabled in Parliament on 14 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by Auditor General and trusts that future audit opinion shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with National Prosecuting Authority would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Twenty-Sixth Report of Standing Committee on Public Accounts: The Presidency, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Presidency for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor General and trusts that future audit opinions shall be equally unqualified.

  1. EMPHASIS OF MATTER

The Committee notes the weakness identified by the Auditor-General with regard to inadequate policies to govern procedures relating to asset management. The Committee notes the progress made to bar code individual assets but urges the Department to reconcile the register by the following audit. The Committee expects the Department to comply with the provisions of the PFMA in this regard.

The Committee notes the weaknesses identified in the Information System audit and the indication that management is addressing the situation and will monitor the situation in the following audit.

  1. CONCLUSION

The Committee is of the view that no further interaction with the Presidency would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Twenty-Seventh Report of Standing Committee on Public Accounts: Rural Housing Loan Fund, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Rural Housing Loan Fund for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by independent auditors Ernst and Young and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with the Rural Housing Loan Fund would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Twenty-Eight Report of Standing Committee on Public Accounts: South African Council for Educators, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African Council for Educators for the year ended 31 March 2004, tabled in Parliament on 30 August 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors PriceWaterhouseCoopers and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with the South African Council for Educators would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report.

Report to be considered.

  1. Twenty-Ninth Report of Standing Committee on Public Accounts: Sport and Recreation South Africa, dated 8 June 2005:

  2. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of Sport and Recreation South Africa for the year ended 31 March 2004, tabled in Parliament on 30 September 2004 and referred to it, reports as follows:

  1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions shall be equally unqualified.

  1. CONCLUSION

The Committee is of the view that no further interaction with Sport and Recreation South Africa would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

  1. Thirtieth Report of Standing Committee on Public Accounts: Unemployment Insurance Fund, dated 8 June 2005:

Introduction

The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on the Annual Report and the Report of the Auditor- General on the financial statements of the Unemployment Insurance Fund (UIF) for the year ended 31 March 2004, reports as follows:

Structure and Governance

The Committee is very concerned about the fact that although the Unemployment Insurance Fund (Fund) is being listed as a Schedule 3A public entity in terms of the PFMA, the Accounting Officer of the Fund is the Director-General of the Department of Labour. The Fund has an Advisory Board with one of the Deputy Director-Generals being the Chairperson .

There is currently an arrangement between the Department of Labour (DoL) and the Fund where staff of the DoL provide services to the Fund in order to assist the Fund to carry out its functions. The DoL then invoices the Fund for the services that have been rendered by DoL staff.

The matter has been raised during previous hearings with no solution forthcoming from the Fund.

The Committee recommends that the Accounting Authority should ensure that:

(a) the reporting structures of the fund is reviewed and if necessary ammended to ensure unambiguous accountability of the Fund; (b) a decision is reviewed whether the Fund should be a schedule 3A public entity or a division of the DoL; and (c) SCOPA is updated with quarterly progess reports and timeframes (starting sixty days after the adoption of this report by Parliament) indicating the improvements on the structure of the Fund.

Debtors

The Committee took note of:

(a) the fact that there is no proper debtor system in place which ensures that the fund collects all revenue due from both SARS and non-SARS employers (b) the Committee is also not satisfied with the progress of the project Siyaya.

The Committee therefore recommends that: (a) an adequate debtor system be put in place to control revenue; and (b) SCOPA be provided with time frames, sixty days after the adoption of this report by Parliament, for the full implementation of the debtor system, as well as the key milestones of project Siyaya.

Material breakdown in internal control

3.1 Bank reconciliation

The Committee noted that bank reconciliations were not performed and reviewed on a weekly basis and that there were inadequate controls over paid cheques during the audit period.

The Committee recommends that the Accounting Authority should ensure that: (a) bank reconciliation should be prepared in terms of Treasury Regulation 31.1.2(j); (b) all reconciling items on the reconciliation should be followed up timeously; and (c) systems, procedures, processes, training and awareness programmes are established to ensure efficient and effective banking and cash management.

3.2 Fixed assets

The Auditor-General was unable to verify the existence of movable fixed assets due to an incomplete and inaccurate fixed asset register.

The Committee finds the situation unacceptable as this matter has been reported for three successive years and to date the Fund has not rectified the position. The Committee was informed during the hearing that the Fund has contracted the services from Siemens Business Services, which is a Public Private Partnership. The Committee is concerned that this contract does not cover all fixed assets.

The Committee recommends that the Accounting Authority ensures: (a) the existence and maintenance of a complete and accurate fixed asset register; (b) that proper controls over the management of all fixed assets are immediately implemented, monitored and that discrepancies identified are followed up timeously; (c) that a progress report be submitted to the Committee by July 2005 with regards to the full implementation of the integrated fixed asset register; and (d) that the Fund should implement mechanisms to monitor the adherence to internal controls and procedures.

3.3 General computer controls

Significant weaknesses in the general computer control environment were highlighted in the audit report with regard to programme change control, security administration and monitoring, and logical access security. The Committee further noted that the proposed action plan to address the weaknesses identified has not been implemented.

The Committee recommends that the Accounting Authority ensures: (a) the implementation of an action plan with immediate effect; (b) time frames for the implementation process are set and forwarded to SCOPA, sixty days after the adoption of this Report by Parliament; (c) proper management and compliance monitoring take place with respect to contracts and service level agreements of all service providers; and (d) an information system environment that complies with required standards is available.

Non-compliance with laws and regulations

The Committee is concerned about various issues of non-compliance highlighted in the audit report with regards to the PFMA, Treasury Regulations, the UIF Act and the Unemployment Insurance Contributions Act. However, it has not been informed of any disciplinary actions taken to address non-compliance issues.

The Committee recommends that the Accounting Authority urgently ensures that:

a) measures are implemented immediately to monitor the Fund’s compliance with all applicable laws and regulations; b) corrective actions are taken where the fund has not fully complied with applicable laws and regulations; c) a designated official is tasked to take responsibility for compliance and to facilitate effective corporate governance; and d) SCOPA be informed forthwith of any disciplinary actions taken to address non-compliance issues.

Responses to previous hearing

The Committee noted that although improvements were made since the previous hearing in 2002, some significant issues were not addressed. This raises doubts/ concern as to whether management is proactive and strategically focused to address the problems that resulted in the material break down in internal control.

The Committee recommends that the Accounting Authority should provide SCOPA and the Auditor-General, sixty days after the adoption of this Report by Parliament, with timeframes for the harmonisation of the database for Department of Labour, UIF and the Compensation Fund.

  General: Departure from GAAP

It was noted that non-SARS contributions are accounted for on the cash basis.

The Committee recommends that a database of contributors and employers should be updated and maintained to ensure full compliance with GAAP.

Having considered the evidence and the opinion expressed by the Auditor- General in previous years reports; the Committee is of the view that the Minister should investigate the possibility of negligence and misconduct with a view of conducting disciplinary action if necessary. The committee further requests that the outcome of this investigation be reported back to SCOPA within 60 days of the adoption of the report by Parliament.

Report to be considered.

  1. Thirty-First Report of Standing Committee on Public Accounts: Department of Defence, dated 8 June 2005:

  2. Introduction

The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on the Annual Report and the Report of the Auditor- General on the financial statements of the Department of Defence (DoD) for the year ended 31 March 2004, reports as follows:

  1. Contingent liabilities and leave - page 143, paragraph 3.1

    The audit report highligted unavailability of detailed supporting reports for leave credits relating to a contingent leave liability of approximately R1,064 billion as well as inadequate internal controls in respect of the leave administration system. The Committee is very concerned as the matter was raised several times during previous hearings with no solution forthcoming from the DoD.

    The Committee recommends that the Accounting Officer ensures that the following are in place: a) A reliable system that gives the monetary value, correct amount of leave credits for each member in the SANDF and generates accurate, detailed management information; b) Leave credits are disclosed in the financial statements as prescribed including the directive on leave of absence; c) Proper adherence to all relevant rules, regulations and instructions of the internal control system. d) Proper management controls, which include regular independent checking and reviewing of attendance and leave registers.

  2. Physical and intangible asset movement schedules - page 144, paragraph 3.2

    The audit report reflected that due to un-integrated systems existing at the DoD, no amounts could be disclosed in the physical and intangible asset movement schedules as prescribed by the Treasury Regulation.

    It was further noted that the DoD is not in a position to move to a modified accrual accounting system any time soon.

    The Committee notes that notwithstanding the recurrance of these system failures, the DoD has yet to implement the necessary corrections.

    The Committee recommends that the Accounting Officer:

 a) Establishes a single logistical system that  ensures  accurate  and
    complete disclosure; or
 b) Upgrades the present  logistical  systems  to  make  provision  for
    accrual accounting; and
 c) Indicates to the Committee time  frames  for  implementation  of  a
    system  that  is  integrated  and  able  to  report  the  financial
    information required.
  1. Management of inventory, machinery and equipment page 144- 146, paragraph 5.1

  2. The audit conducted on the management of inventory, machinery and equipment revealed that the same weaknesses in internal controls as reported on in prior years still existed in all main processes of asset management. This matter could mainly be ascribed to the fact that management policies and procedures were not adequately followed.

  The Committee finds it unacceptable that  matters  reported  in  prior
  years still remain unresolved.


  The Committee recommends that:
 a)  Internal  control  procedures  be  revised  and   improved   where
    necessary;


 b) Vacancies should be filled with  skilled  personnel   and  relevant
    training should be given and the  Portfolio  Committee  on  Defence
    should monitor progress;


 c)  Disciplinary  action  be  implemented  where  non-compliance  with
    prescribed policies/ regulations occurred;


 d) Storage facilities be upgraded;


 e) The reporting  structure  within  a  general  support  basis,  army
    support basis and joint support basis should be investigated and  a
    practical/workable structure  be  considered  that  will  give  the
    officer commanding full responsibility over all the offices  within
    his/her unit; and
 f) Logistic systems be integrated.

4.2 The Committee further noted that the DoD made commitments to SCOPA during previous hearing regarding implementation of corrective measures in respect of excessive stock levels. These include amongst other things disposal plans to be put in place for each service.

  The Committee recommends that disposal plans be finalised on time  and
  that SCOPA be provided with the progress  report  within  60  days  of
  adoption of the report by Parliament.
  1. Purchases and payables (accruals) - page 144, paragraph 3.4

    The audit report reflected an instance where information could not be generated from the accounting systems of the DoD resulting in the amount disclosed as accruals understated by an unknown amount.

    The Committee is concerned about the DoD’s slow progress in addressing the issue.

    The Committee recommends that the Accounting Officer ensures that: a) An integrated system that will comply with the accrual accounting principles and disclosures is implemented; and (b) The current systems are upgraded/replaced or National Treasury has to revisit its requirements on disclosure within the limitations placed by the existing information systems.

  2. Departmental income - page 144, paragraph 3.3

  The committee is concerned about the completeness of income  amounting
  to  R266,342  million   that  could  not  be  verified  due   to   the
  inconsistent  application  of  the  internal  controls  applicable  to
  income.


  This has been a serious concern to  the  Committee  as  the  situation
  worsened and the DoD implemented controls  that  are  not  functioning
  properly. The Committee is of the view  that  the  DoD  is  not  in  a
  position to satisfy SCOPA that the matter will be corrected during the
  next financial year.


  The Committee therefore recommends that the Accounting Officer ensures
  that:
 a) Steps are taken  to  ensure  that  monies  received  are  regularly
    reconciled and checked by senior personnel at unit level; and
 b) Systems are reconfigured to ensure that income can be  managed  and
    controlled at unit level.
  1. Irregularities and losses - page 144, paragraph 3.5

    The Committee noted inconsistent application of policies and procedures resulting in losses and damages not reported to the finance division and that damage and loss registers at unit level were not updated regularly.

    The Committee recommends that the Accounting Officer ensures that: a) Losses are reported and the loss register is updated and reviewed on a regular basis; (b) Reconciliation is performed on a regular basis; and (c) Training in financial management for senior personnel at unit level is implemented.

  2. Land and buildings - page 146, paragraph 5.2

    The Committee is concerned about various instances that caused uncertainity over the completeness and accuracy of the DoD’s facility register system. Reconciliations could not be performed with Public Works’ asset register due to the incompatibility of the two systems. This matter was raised in the previous report.

    The Committee recommends that the Accounting Officer ensures that : a) A complete and accurate facility register is kept; b) Proper maintenance of buildings are carried out by the Department of Public Works, over and above innovative ways of maintaining buildings by the Department itself; c) Timeous investigations are carried out regarding the economic viability to either restore or demolish uninhabitable buildings and houses to reduce third party liability to an acceptable level; d) The current land and buildings register inventory be submitted to SCOPA within 30 days of the adoption of this report by Parliament. e) Provide SCOPA with a plan of action on how the Department will minimise possible health and safety risk which could result in the DoD becoming liable to third parties due to the uninhabitable status of buildings and houses

    The Committee further recommends that: a) a completed integrated land inventory be established in consultation with the Department of Public Works and Department of Land Affairs addressing problems causing the current incompatibilities between the registers of the various departments; and b) the Committee be supplied with a progress report, within 90 days of the adoption of this Report by Parliament, on how the above problems are being addressed, and thereafter with a copy of the full reconciliation register.

  3. Gifts, donations and sponsorships - page146, paragraph 5.3

    The Committee noted with concern shortcomings with regards to validity, accuracy and completeness of gifts received, donations and sponsorships made and received in kind.

    The Committee recommends that internal control measures should be revised to ensure that all gifts, donations and sponsorships are reported and ultimately reflected correctly in the financial statements.

  4. Personnel expenditure: Commuted overtime - page 146, paragraph 5.4

    The Committee noted that internal controls with regards to overtime were not followed. In certain cases, the policies and procedures did not seem to be adequate to address all weaknesses in the system.

    The Committee was also informed about the investigation that the DoD instituted with regards to issues raised in the audit report.

    The Committee recommends that the Accounting Officer ensures: a) Improved management of commuted overtime in order to achieve acceptable levels; b) Updated implementation instructions and revised contracts for commuted overtime; and c) Adherence by all managers and supervisors to the implementation manual to monitor commuted overtime constantly to prevent over- underpayments.

  5. Information systems - page 147, paragraph 5.7

    The Committee noted that the Auditor-General could not place reliance on the general controls surrounding Computer Aided Logistic Management Information Systems (CALMIS) this resulted in the activities of database administrators not being logged and monitored.

    The Committee recommends that security management be improved by means of baseline security standards based on the security policy. It should be enforced through detailed, documented and monitored processes and procedures and must be reported back to SCOPA within 60 days of adoption of this report by Parliament.

  6. Revenue and receivables (foreign aid in kind) - page 146, n paragraph 5.5

    The Committee is concerned that nothing has been done in the previous financial years to address the shortcomings in the system for recording and collation of foreign aid assistance received in kind. The Committee finds the situation unacceptable, as the matter has been recurring for three consecutive years.

    The Committee recommends that a progress report be submitted to SCOPA within 30 days of the adoption of this report by Parliament.

  7. Rooivalk - page 49 & 81

The committee noted the time spent and cost thereof together with the number of Rooivalk aircraft manufactured and recommend that SCOPA be supplied with a cost benefit analysis of this project and how future operational cost been funded.

  1. General

The Auditor-General should follow up on the following issues during the financial year ending 2004/05 audit and provide feedback to SCOPA: a) All the aspects highlighted above including previous SCOPA recommendations on the DoD and SDA; and b) Findings on the statutory mandate of National Conventional Arms Control Committee (NCACC) as reported on pages 146 -147, paragraph 5.6 of the audit report.

The Committee is of the view that the Department should adapt to systems that satisfy the Department’s needs in consultation with National Treasury.

Report to be considered.

                      WEDNESDAY, 3 AUGUST 2005

ANNOUNCEMENTS

National Assembly and National Council of Provinces

  1. DECISION BY THE SPEAKER AND THE CHAIRPERSON OF THE NATIONAL COUNCIL OF PROVINCES TO ESTABLISH AN AD HOC JOINT COMMITTEE ON AMENDMENT REGULATIONS TO PUBLIC FUNDING OF REPRESENTED POLITICAL PARTIES ACT, 1997 (ACT NO 103 OF 1997) IN TERMS OF JOINT RULE 138(1)(b).

The Speaker of the National Assembly and the Chairperson of the National Council of Provinces, acting jointly, have decided in terms of Joint Rule 138(1)(b) to establish an Ad Hoc Joint Committee to consider draft amendment regulations tabled by the Minister for Justice and Constitutional Development (on behalf of the President of the Republic) on 22 July 2005, the Committee to -

  a) consist of the Portfolio Committee on Justice and Constitutional
     Development of the Assembly and the Select Committee on Security
     and Constitutional Affairs of the Council;
  b) make recommendations to the President, in terms of section 10(1) of
     the Public Funding of Represented Political Parties Act, on the
     draft amendment regulations;
  c) inform the Assembly and the Council of its recommendations to the
     President;
  d) complete its task by not later than 19 August 2005; and
  e) exercise those powers in Joint Rule 32 that may assist it in
     carrying out its task.



 SPEAKER                                  CHAIRPERSON


NATIONAL ASSEMBLY  NATIONAL COUNCIL OF PROVINCES

National Assembly

  1. Membership of the Assembly

    Mr E M Dipico resigned as Member of the National Assembly and Parliamentary Counsellor to the President with effect from 1 August 2005.

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Finance

1,Government Notice No 636 published in Government Gazette No 27748 dated 30 June 2005: Exemptions from section 117, in terms of the Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003).

  1. Government Notice No 637 published in Government Gazette No 27748 dated 30 June 2005: Revocation of Government Notice No 1404 of 1 December 2004 and Exemption from certain Supply Chain Management Provisions and Regulations Promulgated under section 168 of the Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003).

3.Government Notice No 638 published in Government Gazette No 27748 dated 30 June 2005: Repeal of the Municipal Accountants Act, 1998 (Act No 21 of 1998).

4.Government Notice No 639 published in Government Gazette No 27748 dated 30 June 2005: Exemptions from section 16(2) of the Municipal Finance Management Act, 2003 (Act No 56 of 2003).

  1. Government Notice No 622 published in Government Gazette No 27729 dated 1 July 2005: Amendment of the Rules of the Government Employees Pension Fund in terms of the Government Employees Pension Law (Proclamation No 21 of 1996).

    6.Response of South African Revenue Services (SARS) to Recommendations of the Portfolio Committee on Finance on the Strategic Plan of the South African Revenue Services (SARS) for 2005 to 2008.

    1. Response of Statistics South Africa to Recommendations of the Portfolio Committee on Finance on Budget Vote 13 – Statistics South Africa.

    2. Proclamation No R.25 published in Government Gazette No 27681 dated 17 June 2005: Fixing of a date on which section 14(1)(a) of Revenue Laws Amendment Act, 2004 (Act No 32 of 2004), shall come into operation.

      Please Note: Numbers (f), (g) and (h) above replaces (b), (c) and (f) respectively tabled in the Minister of Finance’s name on Announcements, Tablings and Committee Reports (ATC) of 2 August 2005, Page No. 1401.

COMMITTEE REPORTS

National Assembly and National Council of Provinces

  1. Report of the Joint Budget Committee on National and Provincial Expenditure from April 2004 to March 2005:

A. NATIONAL EXPENDITURE

  1. Introduction Departmental expenditure has been fairly consistent throughout the financial year. However, it is evident that Departments increased their expenditure in the last quarter, as was the case in the last financial year. The Department of Communications, in particular, always spends more than half of its budget in the last month of the financial year. These two departments, together with the Department of Sports and Recreation, increased their expenditure significantly in March 2004.

The Department of Communications had only spent 41.29% of its budget at the end of the third quarter, leaving it with 58.71% to spend in the last quarter. However, in a period of one month (March 2005) the Department managed to spend 50.09% of its budget, bringing its total expenditure to 98.22% by the end of the financial year. Likewise, the Department of Foreign Affairs had spent 47.48% by the end of the third quarter and increased its expenditure significantly towards the end of the financial year.

It is worth mentioning that the same trend was evident in the expenditure of the Department of Communications for the past three financial years. For example, in February 2003, the Department had only spent 45.75% of its budget, and then managed to spend 49.72% in the last month of that financial year (March 2003). Similarly, in February 2004, the Department had spent 45.67% of its budget, and then spent 50.75% in the last month of the financial year.

Table 5 (Appendix 1) indicates that Departments underspent by R 6.3 Billion, which is lower than the R8 Billion underexpenditure from the 2003/04 financial year. In addition, Figure 1 indicates that Departmental spending has been gradually decreasing over the past three financial years.

Figure 1: Average departmental Spending trends [pic]

  1. Analysis Of Expenditure Per Quarter

2.1. First Quarter

In the first quarter of the financial year, some departments were disbursing funds to institutions and their budgets reflected these transfers. Most notable was the Department of Education, which spends most of its budget during the first and second quarters. Another example is the Department of Social Development.

The First quarter expenditure report showed a gradual decline in expenditure from April to June 2004. Average expenditure declined gradually from 9.84%, 7.80% to 6.75% in April, May and June 2004 respectively.

The Department of Education was the highest spender in the first two quarters and the Departments of Foreign Affairs and Communications were already lagging behind with their spending.

2.2. Second and Third Quarters

The second quarter indicated some fluctuation of expenditure in certain departments, notably the Departments of Social Development, Public Enterprises, as well as Provincial and Local Government. These Departments transfer a large portion of their funds in certain months and thus present highly fluctuating expenditure from month to month. The Department of Social Development, for example, spent 24.43% of its budget in October 2004 and only 0.56% in November 2004. In addition, while the Department of Provincial and Local Government spent only 2.42% of its budget in October, it spent 18% of its budget in November.

The Department of Minerals and Energy was the highest spender in December 2004, spending 27.92% of its budget in this month. The department explained that the increase in expenditure was attributed to a huge payment of R447.688 million made to ESKOM for the National Electrification Programme.

The Departments of Communications and Foreign Affairs had spent only 41.29% and 47.48% of their budgets at the end of the third quarter. The Department of Communications was still a cause for concern at the end of the third quarter, as had been the case in the preceding two financial years. The Department however, had increased its expenditure marginally from 32.52% in the third quarter of the 2003/04 financial year, to 41.29% at the end of the third quarter of the 2004/05 financial year. The Department of Communications’ expenditure has continuously been a cause for concern for the Committee due to the department’s trend of under spending on its budget and then spending a huge chuck of the budget in the last month of the year. The Committee has previously recommended that the Department appear before it.

The Departments that had spent highest on their budget were: the Departments of Education (91.19%), Defence (79.36%), Parliament (76.56%) and GCIS (74.87%). The expenditure of Departments was consistent and fairly predictable throughout the first three quarters; with Departments spending slightly lower than they did in the same periods of the previous financial years.

The ratio in spending between current and capital expenditure remained unchanged in the second and third quarters. Although some Departments had increased their capital expenditure, the average remained the same, with Departments spending 72.76% on current expenditure, 71.39% on Transfers and 65.82% on capital expenditure.

The social services sector was the highest spending sector with an average expenditure of 77.52%. Departmental expenditure had dropped slightly from the 2003/04 financial year from 71.67% in the third quarter of the 2003/04 financial year to 69.71% in the third quarter of the 2004/05 financial year. In addition, Departments are consistent in terms of their spending trends, and there are no major changes from the last financial year.

2.3. Fourth Quarter

During the last quarter of the financial year, departments increased their expenditure tremendously, most notably the Department of Communications. Similar to the last financial year, the Department had spent lowest by February 2005, and then spent a huge chunk of its budget in the last month of the financial year. Departments increased their average expenditure from 10.14% in January to 11.65% in March 2005. Tables 1 and table 2 indicate the highest and lowest spenders at the end of the financial year. Although the Department of Communications does not appear on these tables, it was the lowest spender for the first three quarters of the financial year, but then spent 50.09% of its budget in the last month of the financial year (March 2005). The same trend had been evident in the preceding two financial years.

  1. Analysis of Average Expenditure as at 31 March 2005

3.1. Highest spending Departments

Table 1 |R’000 |Total |Expenditu|% |Total |% |Underspendi| | |Budget |re for |Expendit|expendit|Expendit|ng | | | |the Month|ure for |ure to |ure to | | | | | |the |date |date | | | | | |month | | | | |Voted |15353163|17891904 |11.65% |14992264|97.65% |3608991 | |Amounts |7 | | |6 | | | | | | | | | |0 | |Central |24327550|2874461 |11.82% |23467110|96.46% |860440 | |Government | | | | | | | |Administrati| | | | | | | |on | | | | | | | |The |175852 |22327 |12.70% |167729 |95.38% |8123 | |Presidency | | | | | | | |Parliament |576 144 |37 018 |6.43% |576 144 |100.00% | | |Foreign |2546649 |570394 |22.40% |2307698 |90.62% |238951 | |Affairs | | | | | | | |Home Affairs|2377615 |343972 |14.47% |1987006 |83.57% |390609 | |Provincial |13137381|1146557 |8.73% |13121073|99.88% |16308 | |and Local | | | | | | | |Government | | | | | | | |Public Works|5513909 |754193 |13.68% |5307460 |96.26% |206449 | | | | | | | | | |Financial |15060896|1588422 |10.55% |14351960|95.29% |708936 | |and | | | | | | | |Administrati| | | | | | | |ve Services | | | | | | | |Government |203149 |18294 |9.01% |202844 |99.85% |305 | |Communicatio| | | | | | | |ns and | | | | | | | |Information | | | | | | | |Services | | | | | | | |National |14021916|1449526 |10.34% |13489905|96.21% |532011 | |Treasury | | | | | | | |Public |77377 |8272 |10.69% |75668 |97.79% |1709 | |Enterprises | | | | | | | |Public |144296 |32805 |22.73% |127318 |88.23% |16978 | |Service and | | | | | | | |Administrati| | | | | | | |on | | | | | | | |Public |73081 |8366 |11.45% |71129 |97.33% |1952 | |Service | | | | | | | |Commission | | | | | | | |S A |40887 |13418 |32.82% |34361 |84.04% |6526 | |Management | | | | | | | |Development | | | | | | | |Institute | | | | | | | |Statistics |500190 |57741 |11.54% |350735 |70.12% |149455 | |South Africa| | | | | | | | | | | | | | | |Social |28803489|1794952 |6.23% |27945256|97.02% |858233 | |Services | | | | | | | |Arts and |1176097 |218578 |18.59% |1091665 |92.82% |84432 | |Culture, | | | | | | | |Education |11405095|488976 |4.29% |11293774|99.02% |111321 | |Health |8818400 |676375 |7.67% |8387748 |95.12% |430652 | |Labour |1228697 |128376 |10.45% |1098646 |89.42% |130051 | |Science and |1 282 |121 114 |9.44% |1 281 |99.97% |441 | |Technology |412 | | |971 | | | |Social |4598575 |68698 |1.49% |4509964 |98.07% |88611 | |Development | | | | | | | |Sport and |294213 |92835 |31.55% |281487 |95.67% |12726 | |Recreation | | | | | | | |South Africa| | | | | | | | | | | | | | | |Justice and |57538746|7315806 |12.71% |56945869|98.97% |592877 | |Protection | | | | | | | |Services | | | | | | | |Correctional|8457492 |1059541 |12.53% |8026420 |94.90% |431072 | |Services | | | | | | | |Defence |19 411 |3 233 272|16.66% |19 396 |99.92% |15 637 | | |819 | | |182 | | | |Independent |42 114 |6 586 |15.64% |42 547 |101.03% |-433 | |Complaints | | | | | | | |Directorate | | | | | | | |Justice and |5054417 |585404 |11.58% |4907815 |97.10% |146602 | |Constitution| | | | | | | |al | | | | | | | |Development | | | | | | | |Safety and |24 572 |2 431 003|9.89% |24 572 |100.00% |-1 | |Security |904 | | |905 | | |

Table 1 indicates that Parliament and the Department of Safety and Security have spent their total budget, as was the case in the previous financial year. The only Department that overspent on its budget is the Independent Complaints Directorate (ICD), which overspent by 1.03%. Expenditure trends indicate that Departments have generally decreased their expenditure, particularly the lowest spending Departments.

Figure 2: Average Expenditure of highest spending Departments [pic]

3.2. Lowest spending departments

Table 2: Lowest Spenders |R’000 |Total |Expend|% |Total |% |Underspendin| | |Budget|iture |Expenditur|expendi|Expen|g | | | |for |e for the |ture to|ditur| | | | |the |month |date |e to | | | | |Month | | |date | | |Voted Amounts |153531|178919|11.65% |1499226|97.65|36089910 | | |637 |04 | |46 |% | | | | | | | | | | |Central |243275|287446|11.82% |2346711|96.46|860440 | |Government |50 |1 | |0 |% | | |Administration| | | | | | | |The Presidency|175852|22327 |12.70% |167729 |95.38|8123 | | | | | | |% | | |Parliament |576144|37018 |6.43% |576144 |100.0| | | | | | | |0% | | |Foreign |254664|570394|22.40% |2307698|90.62|238951 | |Affairs |9 | | | |% | | |Home Affairs |2377 |343 |14.47% |1 987 |83.57|390 609 | | |615 |972 | |006 |% | | |Provincial and|131373|114655|8.73% |1312107|99.88|16308 | |Local |81 |7 | |3 |% | | |Government | | | | | | | |Public Works |551390|754193|13.68% |5307460|96.26|206449 | | |9 | | | |% | | | | | | | | | | |Financial and |150608|158842|10.55% |1435196|95.29|708936 | |Administrative|96 |2 | |0 |% | | |Services | | | | | | | |Government |203149|18294 |9.01% |202844 |99.85|305 | |Communications| | | | |% | | |and | | | | | | | |Information | | | | | | | |Services | | | | | | | |National |140219|144952|10.34% |1348990|96.21|532011 | |Treasury |16 |6 | |5 |% | | |Public |77377 |8272 |10.69% |75668 |97.79|1709 | |Enterprises | | | | |% | | |Public Service|144 |32 805|22.73% |127 318|88.23|16 978 | |and |296 | | | |% | | |Administration| | | | | | | |Public Service|73081 |8366 |11.45% |71129 |97.33|1952 | |Commission | | | | |% | | |SA Management |40 887|13 418|32.82% |34 361 |84.04|6 526 | |Development | | | | |% | | |Institute | | | | | | | |Statistics |500 |57 741|11.54% |350 735|70.12|149 455 | |South Africa |190 | | | |% | | | | | | | | | | |Social |288034|179495|6.23% |2794525|97.02|858233 | |Services |89 |2 | |6 |% | | |Arts and |117609|218578|18.59% |1091665|92.82|84432 | |Culture, |7 | | | |% | | |Education |114050|488976|4.29% |1129377|99.02|111321 | | |95 | | |4 |% | | |Health |881840|676375|7.67% |8387748|95.12|430652 | | |0 | | | |% | | |Labour |1228 |128 |10.45% |1 098 |89.42|130 051 | | |697 |376 | |646 |% | |

Only three Departments spent their total budgets, as opposed to five in the last financial year. In addition, more departments underspent with a higher margin in the last financial year and Departments such as the South African Management Development Institute (SAMDI) and the Department of Public Service and Administration spend a large amount of their budgets in the last month of the financial year.

The Departments of Home Affairs and Public Service and Administration have been among the lowest spenders for three consecutive financial years, and SAMDI for two consecutive financial years.

    Figure 3: Average expenditure of lowest spending departments

[pic]

  1. National Current, Transfer and Capital Expenditure

Departments spent most in capital expenditure rather than transfer or current expenditure. This is a huge shift as it is the opposite trend to the last two financial years, wherein Departments have been spending most on their current and less on their capital budgets. In the 2004/05 financial year, Departments exceeded the average capital expenditure, spending an average of 106.33%, 98.28% and 96.11% in Capital, Transfer and Current Expenditure respectively.

This represents a decrease in current and an increase in capital expenditure from the last two financial years. 4.1 Current Expenditure

The lowest spenders of current expenditure are the Departments of Provincial and Local Government (59.03%), Sports and Recreation South Africa (66.49%), Stats SA (72.21%), SAMDI (72.38%) and education (73.14%).

The highest spenders of current expenditure are the Departments of Public Enterprises, which overspent by 4.52%, Defence overspent by 3.76%, Public Works by 3.28%. Parliament reported an expenditure of 100% on current expenditure.

4.2 Transfers

The lowest spenders of transfer expenditure are the Public Service Commission (0%), the Departments of Public Enterprises (29.82%), Public Works (73.48%), Sport and Recreation South Africa (79.87%), Foreign Affairs (88.52%).

Several Departments overspent tremendously on their transfer expenditure. These are the Departments of Correctional Services, which spent five times more than its original transfer budget1, the ICD, which spent more than double its allocated transfer budget2. In addition, Statistics South Africa overspent on its transfer budget by 12.12%, Public Service and Administration by 5.63% and Justice and Constitutional Services by 3.28%.

4.3 Capital Expenditure

The lowest spenders of capital expenditure are Arts and Culture (3.35%), National Treasury (29.33%), Home Affairs (39.17%) and Stats SA (40.53%).

Several Departments overspent tremendously on their capital expenditure. Departments which underspent most on capital expenditure are the Departments of Sport and Recreation, which spent R56.9 Million from a budget of R2.6 Million. The Department of Science and Technology (521.88%) spent five times more than its original budget3. Other Departments that spent more than double their allocated capital funds are the Independent Complaints Directorate, SAMDI and the Department of Housing.

     Figure 4: Average current, transfer and capital expenditure
                                [pic]

The graph below indicates that while current expenditure has decreased from the previous financial year, capital expenditure has increased4.

3 Provincial Expenditure

OVERALL PROVINCIAL EXPENDITURE

Most provinces underspent marginally on their budgets. Provincial expenditure increased from an average of 98.72% in 2002/03, to 99.47% in 2003/04, and again decreased to 96.94% in the 2004/05 financial year. The trend is illustrated in figure 5.

  Figure 5: Provincial Expenditure trends over the last three years

[pic] Table 3 indicates the expenditure of provinces at the end of the financial year. The North West Province was the lowest spending province, underspending by 5.22%. Other provinces that underspent on their budgets are Mpumalanga (4.7%), Free State (4.55%), Northern Cape (3.99%) and Gauteng (3.09%). These are the lowest spending provinces. These provinces, with the exception of the Northern Cape province, were also the lowest spenders in the 2003/04 financial year.

                               Table 3 |R'000           |Total     |Total         |% Expenditure|2003/04      | |                |Budget    |Expenditure   |as at 31     |Expenditure  | |                |          |              |March 2005   |             | |Eastern Cape    |31 273 372|30 974 745    |99.05%       |102.08%      | |Free State      |13 489 087|12 875 741    |95.45%       |98.87%       | |Gauteng         |31 206 772|30 243 249    |96.91%       |99.73%       | |Kwazulu-Natal   |38 994 044|38 849 053    |99.63%       |100.65%      | |Limpopo         |25 616 015|24 994 842    |97.58%       |97.51%       | |Mpumalanga      |13 787 688|13 140 204    |95.30%       |97.52%       | |Northern Cape   |4 641 768 |4 456 699     |96.01%       |101.51%      | |North West      |15 881 229|15 051 807    |94.78%       |97.69%       | |Western Cape    |18 670 995|18 250 348    |97.75%       |97.49%       |

        Figure 6: Provincial Expenditure: 2003/04 and 2004/05
                                [pic]
        Current, Transfer and Capital Provincial Expenditure
                               Table 4 |R'000                        |Current Budget     |Current exp. to   | |                             |                   |date              | |African National Congress                                           | |Asiya, Mr S E  (NA)          |26/08/2004         |                  | |Baloyi, Mr M R *  (NA)       |26/08/2004         |                  | |Botha, Mr D J  (NCOP)        |30/09/2004         |                  | |Cwele, Dr S C  (NA)          |26/08/2004         |                  | |Davies, Dr R H *  (NA)       |26/08/2004         |                  | |Goeieman, Mr M C  (NCOP)     |30/09/2004         |                  | |Hogan, Ms B A  (NA)          |26/08/2004         |                  | |Kannemeyer, Mr B W  (NA)     |26/08/2004         |01/11/2004        | |Kolweni, Mr Z S  (NCOP)      |30/09/2004         |                  | |Mabe, Ms L L  (NA)           |26/08/2004         |                  | |Manyosi, Mr A T  (NCOP)      |30/09/2004         |                  | |Mashiane, Ms L M   (NA)      |26/08/2004         |                  | |Mkhaliphi, Mr B J  (NCOP)    |30/09/2004         |                  | |Moloto, Mr K A*  (NA)        |26/08/2004         |                  | |Nene, Mr N M  (NA)           |26/08/2004         |                  | |Ntwanambi, Ms N D  (NCOP)    |30/09/2004         |                  | |Nyanda, Ms F  (NCOP)         |30/09/2004         |22/02/2005        | |Ralane, Mr T  (NCOP)         |30/09/2004         |                  | |Robertson,                   |22/02/2005         |                  | |Schneemann, Mr G D  (NA)     |26/08/2004         |                  | |Sikakane, Mr M R  (NA)       |26/08/2004         |                  | |Sithole, Mr D J *  (NA)      |26/08/2004         |                  | |Zita, Mr L  (NA)             |26/08/2004         |                  | |                             |                   |                  | |Democratic Alliance                                                 | |Rabie, Dr P J  (NA)          |26/08/2004         |                  | |Taljaard, Ms R  (NA)         |26/08/2004         |01/01/2005        | |                             |                   |                  | |Inkatha Freedom Party                                               | |Raju, Mr N M  (NCOP)         |30/09/2004         |Passed away on    | |                             |                   |27/10/2004        | |Smith, Mr P F *  (NA)        |26/08/2004         |                  | |Woods, Dr G G  (NA)          |26/08/2004         |                  | |                             |                   |                  | |United Democratic Movement                                          | |Stephens, Mr M  (NA)         |26/08/2004         |                  | |                             |                   |                  | |African Christian Democratic Party                                  | |Durr, Mr K D S  (NA)         |26/08/2004         |                  | |                             |                   |                  | |Independent Democrats                                               | |Burgess, Mr C  (NA)          |13/10/2004         |                  | |                             |                   |                  | |New National Party                                                  | |Sinclair, Mr K *  (NCOP)     |30/09/2004         |                  | |                             |                   |                  |

• indicates an alternate member

  1. Report of the Joint Budget Committee on Departmental Hearings on the Appropriation Bill [B7-2005], dated 22 June 2005:

  2. Department of Public Works

Building Classrooms and Hospital Revitalization Project

Summary

The Director-General of Public Works, Mr. James Maseko, presented before the Joint Budget Committee that his department has no funding role in the building of schools infrastructure and Hospital Revitalisation Programme. Funding is provided directly to provinces through the provincial equitable shares and directly to provinces through conditional grants or through the national Departments of Health and Education. The Department of Public Works’ role is to implement projects budgeted for by sector departments, the department only acts as an agency. He highlighted that planning and delivery of classrooms has been complicated by migration of learners between provinces and schools within provinces. The national Departments of Public Works and Education, however, are now working together and have established the Infrastructure Delivery Improvement Programme to improve provincial education infrastructure delivery.

Institutional Arrangement and funding

The Department of Public Works does not budget or is allocated funds for building schools or hospital revitalisation. Sector departments such as Education and Health budget and plan for infrastructure expenditure and the Department of Public Works only implements these plans by building classroom or hospital buildings.

Currently, in some provinces Service Level Agreements are in place between the various provincial departments. Gauteng Province utilises an independent agency for this function and not the Department of Public Works. However, the Department has opted to resume working with the Department of Public Works for the following reasons:

  1. To ensure improved integration and coordination on the planning and delivery of infrastructure projects.
  2. To ensure a coordinated effort in enabling BEE and target group inclusion and development, resulting in greater impact in the development of contractor and professional development.   In some provinces, such as Limpopo and the Eastern Cape, the provincial departments of Education and Health use other implementation agents such as the Independent Development Trust (IDT) as a way of expediting delivery. The result of these varied arrangements is that there is a lot of finger pointing when problems emerge.

The current funding arrangement between the Department of Public Works, Education and Health is that of transfer of budgets or cost recovery where the Department of Public Works uses its own resources to deliver and claims back from the client department. Concerns were raised regarding the complex and confusing institutional (constitutional) arrangements, particularly relating to the roles of national and provincial departments.

Expenditure trends

National Treasury has released figures indicating under-expenditure on provincial capital budgets for the 2004/2005 financial year. National Treasury still has to release the final provincial infrastructure expenditure figures for 2004/2005.

For education, in the past two financial years, the trend has been a slow expenditure of the budget for education infrastructure at the beginning of the financial year, but a marked increase of the expenditure in the last quarter of the financial year. Similar trends are experienced in health.

Although there are major issues that need to be resolved, under-expenditure in the past financial years has not been the most important problem affecting delivery.

Programme to improve delivery

A joint task team has been established between the national Departments of Education and Public Works to improve provincial education infrastructure delivery. This has led to the establishment of the Infrastructure Delivery Improvement Programme ( IDIP). The programme will address problems affecting delivery at the provincial level. The IDIP is coordinated by National Treasury and is being rolled out to all provincial Departments of Education, Health and Public Works.

A similar approach is being envisaged between the national Departments of Health and Public Works.

Planning and delivery

Planning for classrooms has been complicated by the migration of learners between provinces and schools within provinces, which has resulted in some schools being under-utilised and others overpopulated. It was highlighted that problems and solutions are not always infrastructure related but rather social

Delivery of classrooms has further been hampered by late submissions of plans by provincial Departments of Education to the provincial Departments of Public Works. This has resulted in further delays in tendering processes, which takes long and is a tedious process. Another problem include late payments of contractors by both Departments of Education and Public Works, as well as the inadequate management of contractors.

The national Department of Public Works pointed out that projects are handed out to provincial Departments of Public Works for implementation; the role of the national department is to ensure that national plans were properly implemented at the provincial level. The problem of paying contractors was recognised as a national one, affecting all government departments.

Other problems identified include:

• Lack of skills in all three departments
• Lack of communication between departments at provincial level
• Insufficient joint planning
•  Lack  of  clear  Sector  Level  Agreements  that  define  roles   and
  responsibilities
• Inadequate business processes at all stages of the supply chain cycle

It is hoped that the Infrastructure Delivery Improvement Programme will address these problems.

The following concerns were raised: concern regarding the proper planning for projects, whether sufficient information was made available for the proper planning. A question was raised whether the national Department of Public Works was supposed to have set standards for other departments, especially provincial departments. Furthermore, concerns were raised regarding the late payments and late submission of plans, which has affected service delivery. The issue of migration and long distance travelled by schoolchildren was highlighted.

2.Department of Land Affairs

Summary

The Chief Financial Officer, Ms C Choane, Department of Land Affairs, provided an overview of the department’s strategy and budget for 2005/06. The bulk of the 2005/06 budget would be channelled to the Land Restitution Programme. This comprises 69% of the budget over the Medium Term Expenditure Framework. This is in line with policy directives according to the MTBPS toward the finalisation of land restitution within three years.

To provide more substance to the above comments, the Chief Land Claims Commissioner, Mr T Gwanaya, described the progress made in land restitution, the measures to speed up the process and challenges faced by the Department.

Some of the issues that were raised by the Committee included the following:

• Land occupied by the South African National Defence Force (SANDF).
• Mechanisms to protect farm-dwellers.
• High land prices.
• Ensuring that communities were not exploited by housing developers.

Department of Land Affairs Briefing

In expanding on strategies to be utilised for 2005/06 within the framework for implementing land and agrarian reform, the following was noted:

• The land reform budget had increased substantially and the bulk of the
  budget would go on the land restitution programme.
• The government  had  set  itself  the  target  of  delivering  30%  of
  commercial agricultural land (approximately 22  million  hectares)  by
  2014 to black citizens.
• About 20.6 million hectares should still be delivered at 1.87  million
  hectares per year to meet the target.
• The total amount of land delivered since 1994 was 3.5 hectares.   More
  than a million people had benefited from land reform.

In focusing specifically on land restitution, the following was highlighted:

• 59 345 restitution claims had been settled from 1999 to 31 March 2005,
  benefiting 172 769 households and delivering 887 093 hectares.
• A total of 28 087 claims still had to be settled by 2008/09.
• The Land Claims Commission had developed an implementation  plan  that
  indicated how the process was to be finalised.
• The Minister announced  a  R6  billion  increase  in  the  budget  for
  restitution over the next three years, and 280 posts were  created  to
  increase capacity for the processing of claims.
• New strategies have been developed to fast  track  the  processing  of
  claims, such as the grouping of claims,  standard  settlement  offers,
  outsourcing and the use of interns and seconded officials.
• Furthermore, the Belgian government had approved 6 million  Euros  for
  fast tracking the settlement of claims, and a further 6 million  Euros
  for post-settlement support.

In terms of the 2005/06 budget for restitution, the following was detailed:

• The Commission spent their budget of R1.18  million  during  the  past
  financial year.
• The original allocation had been depleted in  October  2004,  and  the
  National Treasury  had  advanced  an  additional  allocation  of  R200
  million in January 2005.
• For the new financial year,  the  commission  was  allocated  a  total
  budget of R2.7 billion.

The challenges, noted by the department comprised the following:

• High land prices.
• Uncooperative sellers.
• The shortage of state land for redistribution or restitution.
• Organised agriculture should demonstrate more concrete  commitment  to
  land reform.
• The culture of respect for the land rights of vulnerable groups should
  be increased.
• Technical support and skills development for land reform beneficiaries
  were critical for sustainable land reform.

In conclusion, Mr Gwanya maintained that whilst significant progress has been made towards the implementation of the land policy in South Africa, the following issues needed to be prioritised:

• Additional resources were required to meet the 30% target for 2014.
• The Land Summit (in its planning stages) will  assist  in  identifying
  areas for policy reviews,  such  as  the  willing-buyer-willing-seller
  policy.
• More research is needed from international experiences in land  reform
  and the financing of land reform.
•  The  role  of  provincial  departments  of   agriculture,   organised
  agriculture, the  non-governmental  sector  (NGOs),  and  the  private
  sectors, is  critical  for  post-settlement  support  to  land  reform
  beneficiaries.

Issues Highlighted by Committee Members:

• On the issue of whether the matter of  land  occupied  by  the  SANDF,
  specifically the Lohatla military base had been resolved, it was noted
  that 30 000 hectares lf the required 62 000 hectares had been provided
  to the community.  Although in this instance, the court had  ruled  in
  favour of the SANDF, the Commission was still trying to  consult  with
  the SANDF, or alternatively, find land outside Lohatla.   Madimbo  was
  an example of where the SANDF had made land available.
• A major concern also arose on the issue of developers buying up  large
  tracts of land.  In many instances, the communities did not  have  the
  skills to evaluate properties and were convinced  of  accepting  deals
  from which they  would  not  really  benefit.   This  issue  had  been
  discussed with the Department of Finance and a  committee  to  address
  this had been set up.  If a particular community wanted to sell  their
  land, they should consult with the Department.
• A question was raised as to the rationale of the  Department  of  Land
  Affairs preference of acquiring privately owned land.  It  was  argued
  that in many instances, owners were  not  cooperating,  demanded  high
  prices and private land was being left fallow.   In  response  it  was
  noted that high land prices were  a  serious  problem  but  that  land
  subsidies received from government were subtracted from the historical
  cost of land and the improvements  made.   Furthermore,  some  farmers
  were demanding prices higher than  market  value  but  the  Commission
  insisted on the market prices and refused to pay higher  as  they  had
  the right to expropriate.  The problem was that they could end up with
  high prices, as the Expropriation Act required all the  costs  of  the
  farmer to be included.
• Land owned  by  absentee  landlords  was  also  a  challenge  and  the
  Commission had given a report to the Minister to consider.
• There was a need to compile a register of land  ownership,  indicating
  the race and nationality of the owners, but this  plan  had  met  with
  resistance  by  the  media  who  argued  that  it  would  bring   back
  apartheid’s racial classification.  However, the  Commission  stressed
  that this would not  be  the  case  as  such  data  was  required  for
  transformation purposes.
• A concern was raised on the issue of a  lack  of  proper  consultation
  with  communities  regarding   land   prices   and   conflict   within
  communities.  In response, the  Commission  maintained  that  conflict
  could  be  resolved  through   consultation   with   communities   and
  municipalities.
• The verification of claims and boundaries was  also  raised,  and  the
  Commission noted that the issue of boundaries did not affect  people’s
  right of ownership of land.
• The issue of mechanisms to assist farm-dwellers who were  increasingly
  evicted from farms was raised.  It  was  stressed  that  this  was  of
  particular concern in Limpopo and Mpumlanaga.  It was noted  that  the
  Land Reform (Labour Tenants) Act, 3 of 1996 should have been  tied  to
  the Restitution of Land Rights Act, 22 of 1994,  as  amended,  as  the
  legislation (Labour Tenants Act) protected the rights of farm dwellers
  and farm-workers.
• 20 000 tenancy claims in Kwazulu-Natal had been received.  There  were
  problems  between  farm  owners,  labour  tenants  and  farm  workers,
  especially when farmers “loaded” payslips for commodities  like  water
  and electricity.  The South African Police (SAPS)  had  not  responded
  adequately to complaints from communities.
• In terms of the implementation of  the  department’s  budget,  it  was
  noted that a strategy and implementation plan had been  devise,  which
  went into details of the projects.  The department was looking at  the
  milestones and aligned these with the claims they were settling.  This
  information would be provided to the Committee as soon as possible.

3.Department of Health

Hospital Revitalization Project

The presentation by the Department of Health focused on the Hospital Revitalization Grant, which is intended to provide strategic funding to enable provinces to plan, manage, modernize, rationalize and transform the infrastructure, health technology, organizational management and evaluations of hospitals so as to bring hospitals in line with national policy objectives. The Hospital Revitalization Programme did not entail the building of new hospitals but instead revitalized existing ones.

Expenditure

The total medium-term expenditure framework for the nine provinces increases from approximately R1 billion in 2005/ 2006 to R 1,2 billion in 2007/ 2008. Provinces are required to submit business cases so as to be included in the project. The National Department of Health appraises all business cases so as to ensure that the Strategic Plan of provinces is adhered to and size, location, cost, sustainability and level of service adheres to National Guidelines. The methodology of allocation was based on needs and the capacity of provinces to spend their allocations. The allocations are heavily dependent on the quality of information and prioritisation received from provinces.

Challenges

Three hospitals have been completed to date, 5 to be completed in the 2005/ 2006 period and 4 hospitals to be completed in the 2006/ 2007 period. The programme has faced with many challenges including:

• Delays in appointing contractors on site
• Department of Public Works and contractors
• Provincial capacity including technical staff
• Reporting/ communication to and from  provinces  are  ineffective  and
  unreliable
• Hospitals in rural areas

Regarding the expenditure on the grant, KwaZulu-Natal requested that their allocation be taken back due to a problem with the provincial Department of Public Works. This challenge has been corrected. Extensive rollovers had affected the allocation for the next year. The Committee focused some attention on the oversight role of the National Department of Health. The National Department also acted as the source of funding. The committee called for budgetary control systems that measure delivery and quality – value for money.

The Department of health has created extensive capacity through the new Project Management Unit to deal with the Hospital Revitalization Project. It was reported that the completion of the Hospital Revitalization Project would take approximately ten to twenty years for completion.

  1. Report of the Joint Budget Committee on National and Provincial Expenditure from 1 October to 31 December 2004, dated 22 June 2005:

  2. INTRODUCTION

The report analyses expenditure trends for the third quarter of the 2004/05 financial year. Part A of the document analyses the expenditure of National Departments, while part B analyses the expenditure of Provincial Departments.

A. THE NATIONAL SPHERE OF GOVERNMENT

The Third Quarter Expenditure Report indicates that Departments that were under spending in the second quarter continue to be the lowest spenders. These include the Departments of Communication, Foreign Affairs, Sport and Recreation, Public Service and Administration, SAMDI and Statistics South Africa. The Departments of Communications and Foreign Affairs were also the lowest spenders in the third quarters of the previous two financial years.

The Department of Foreign Affairs, which has been the second-lowest spender for two consecutive financial years, has provided an explanation for its low expenditure in previous reports5. By the third quarter of the last financial year, the Department had only spent 44.34% of its budget compared to 47.48% in the current financial year. The Department of Communication, which was the lowest spender at 32.52% by the third quarter of the last financial year, is still the lowest spender for three consecutive financial years with an expenditure of 41.29%.

It can thus be observed that the same Departments who were struggling to spend their budgets in the last two financial years are still under spending in this financial year. However, all Departments have spent marginally less than they had in the third quarter of the last financial year. Average expenditure has decreased from 71.67% in the third quarter of the last financial year to 69.91% in this quarter. The decrease in expenditure was evident from the beginning of the financial year.

  1. MONTHLY EXPENDITURE

The months under review are October, November and December 2004.

2.1. DEPARTMENTAL EXPENDITURE TRENDS IN OCTOBER 2004

Average expenditure in October 2004 was 8.01%. Table 1 illustrates that the Department of Social Development was the highest spending department in October 2004, which was also the case in the previous financial year. Other departments have also followed similar spending trends as in preceding financial years, e.g. the Department of Provincial and Local Government is still the lowest spender in this financial year. The reason for the fluctuating expenditure of this Department, as well as other departments that make large transfers periodically like the Department of Social Development is due to the fact that the department makes transfers during certain months. Although the Department of Provincial and Local Government is the lowest spender, its expenditure is higher than it was in the same month of the last financial year when it spent only 1.96% of its budget in October 2003.

  2.1.1       Highest Spending departments in October

The social services sector is still the highest spending sector and the central government administration sector is the lowest spending sector.

Table1: Highest spending departments in October | | |Total |%Expenditure | |R’000 |Total Budget|Expenditure |for the month | |Social Development |4598575 |1123278 |24.43% | |Water Affairs and Forestry |3823112 |406411 |10.63% | |Environmental Affairs and |1652268 |173195 |10.48% | |Tourism | | | | |Government Communications and |203149 |20057 |9.87% | |Information Services | | | | |Foreign Affairs |2546649 |250558 |9.84% | |The Presidency |175852 |17196 |9.78% | |Housing |4826781 |468158 |9.70% |

  2.1.2.      Lowest Spending departments in October

Table2: Lowest spending departments in October | | |Total |%Expenditure | |R’000 |Total Budget|Expenditure |for the month | |Provincial and Local Government |13137381 |318564 |2.42% | |Agriculture |1449391 |41030 |2.83% | |Mineral and Energy |1945143 |64786 |3.33% | |SA Management Development |40887 |1764 |4.31% | |Institute | | | | |Sport and Recreation South |294213 |14076 |4.78% | |Africa | | | |

2.2 DEPARTMENT EXPENDITURE TRENDS IN NOVEMBER 2004

Average Expenditure in November 2004 rose slightly to 8.23%. Tables 3 and 4 indicate that the Department of Provincial and Local Government was the highest spender in November 2004, and the lowest spender was the Department of Social Development.

  2.2.1.       Highest Spending departments in November

Table 3: Highest spending departments in November | | |Total |%Total | |R’000 |Total Budget|Expenditure |Expenditure| |Provincial and Local Government |13137381 |2364852 |18.00% | |Science and Technology |1282412 |158214 |12.34% | |National Treasury |14021916 |1628285 |11.61% | |Transport |6769171 |720636 |10.65% | |Foreign Affairs |2546649 |263675 |10.35% | |Independent Complaints Directorate |42114 |4353 |10.34% |

  2.2.2.       Lowest Spending departments in November

Table 4: Lowest spending departments in November | | |Total |%Total | |R’000 |Total Budget|Expenditure |Expenditure| |Social Development |4598575 |25556 |0.56% | |Public Service and Administration |144296 |6261 |4.34% | |Sport and Recreation South Africa |294213 |13598 |4.62% | |Statistics South Africa |500190 |23817 |4.76% | |SA Management Development Institute |40887 |1972 |4.82% | |Minerals and Energy |1945143 |95491 |4.91% | |Agriculture |1449391 |72091 |4.97% |

2.3. DEPARTMENTAL EXPENDITURE IN DECEMBER 2004

Average expenditure in December 2004 dropped to 7.03%. The Department of Minerals and Energy was the highest spender in December, spending 27.92% of its budget in this month. The department has explained that the increase in expenditure was attributed to a huge payment of R447.688 Million made to ESKOM for the National Electrification Programme.

  2.3.1.       Highest Spending departments in December

Table 5: Highest spending departments in December | | | |% | | | |Expenditure |Expenditure | |R’000 |Total Budget|for the |of the month| | | |month | | |Minerals and Energy |1945143 |543157 |27.92% | |Agriculture |1449391 |154604 |10.67% | |Housing |4826781 |498336 |10.32% | |Foreign Affairs |2546649 |237348 |9.32% | |Independent Complaints Directorate |42114 |3841 |9.12% |

  2.3.2.      Lowest Spender in December

Table 6: Lowest spending Departments in December | | | |% Total | | | |Total |Expenditure | |R’000 |Total Budget |Expenditure|for the Month| |Education |11405095 |154603 |1.36% | |SA Management Development Institute|40887 |593 |1.45% | |Social Development |4598575 |119015 |2.59% | |Communication |1679917 |61074 |3.64% |

2.4. OVERALL EXPENDITURE AT THE END OF THE THIRD QUARTER The Social services sector is the highest spending sector with an average expenditure of 77.52%. Departmental expenditure has dropped slightly from the previous financial year from 71.67% in the third quarter of the previous financial year to 69.71% in this quarter. It can also be observed that departments are consistent in terms of their spending trends and that there are no major changes from the last financial year.

The Department of Communication is still cause for concern, as has been the case in the previous two financial years. The Department however, has increased its expenditure marginally from 32.52% in the third quarter of the 2003/04 financial year, to 41.29% at the end of the third quarter of the 2004/05 financial year. The Department of Communication’s expenditure has continuously been a cause for concern for the Committee due to the department’s trend of under spending on its budget and then spending a huge chuck of the budget in the last month of the year (approximately half of the department’s budget is usually spent in the last month of the financial year)[4]. The Committee has previously recommended that the department appear before it.

       2.4.1.      Highest spending Department for the quarter ending
       31 December 2004

Table 7: highest spending departments as at 31 December 2004 | | |Expenditur| |Total | | | |Total |e for the |%Expenditure|Expenditur|% | |R’000 |Budget |Month |for the |e to date |Expenditure | | | | |Month | |to date | |Housing |4826781|498336 |10.32% |3838498 |79.53% | |Parliament |576144 |49011 |8.51% |441104 |76.56% | |GCSI |203149 |11228 |5.53% |152100 |74.87% | |Transport |6769171|604006 |8.92% |5051498 |74.63% |

  2.4.2.      Lowest Spending Departments  for  the  quarter  ending  31
       December 2004

Table 8: Lowest spending departments as a 31 December 2004 | | |Expenditur| |Total | | | |Total |e for the |% |Expenditur|%Expenditure| |R’000 |Budget |Month |Expenditure |e to date |To date | | | | |for the | | | | | | |month | | | |SA Management |40887 |593 |1.45% |18589 |45.46% | |Development | | | | | | |Institute | | | | | | |Foreign Affairs |2546649|237348 |9.32% |1209208 |47.48% | |Statistics South |500190 |27076 |5.41% |245661 |49.11% | |Africa | | | | | |

Chart 1: Lowest Spending Departments at the end of third quarter 2004/05

                              Chart 1: [pic]

Chart 2: Lowest Spending Departments (Financial year 2003/04) [pic]

Chart 3: Highest spending Department at end of the third quarter 2004/05 [pic]

       Chart 4: Highest Spending Departments (END of 2003/04)

[pic]

2.5.    CURRENT, TRANSFER AND CAPITAL EXPENDITURE OF NATIONAL
DEPARTMENTS

National Departments have increased their Capital expenditure tremendously. Average Current expenditure is 68.47%; transfers are 71.39% and Capital expenditure at 64.23%. In this regard, the highest spenders of Current expenditure are Parliament (76.94%), Public Enterprises (76.47%) and Public Works (75.58%). In Contrast, the lowest spenders of Current expenditure are SAMDI (36.28%), Sport and Recreation South Africa (41.51%), Social Development (41.70%) and Education (48.18%).

In this financial year, the National Treasury added another dimension to its reporting. Previously, the Treasury only reported on Current and Capital Expenditure. The Treasury has now added transfers and subsidies to its report. In this regard it is now possible to clearly monitor transfers to subsidiaries and provinces by departments. As is to be expected, the Social Services sector makes the most transfers and subsidies. The highest transfers were made by the Department of Correctional Services (349.08%), Government Communications and Information Services (99.93%) and Education (93.13%).

Departments have decreased their capital expenditure slightly from 65.82% in the third quarter of the 2003/04 financial year to 64.23% of the third quarter of the 2004/05 financial year. However, the gap between current and capital expenditure has decreased. Table 9 and 10 indicate trends in capital expenditure in Departments.

Highest Capital Expenditure

Table 9 |R’000 |Capita|Capital |% Capital |Capital |% Capital | | |l |Expenditu|Expenditure|Expenditu|expenditur| | |Budget|re for |for the |re to |e to date | | | |December |month |date | | |Voted Amounts |540011|418403 |7.75% |3468281 |64.23% | | |8 | | | | | | | | | | | | |Central Government |161227|98852 |6.13% |838088 |51.98% | |Administration |9 | | | | | |The Presidency |3668 |14 |0.38% |1963 |53.52% | |Parliament |33436 |2786 |8.33% |25078 |75.00% | |Foreign Affairs |200547|12683 |6.32% |54353 |27.10% | |Home Affairs |602352|2823 |0.47% |43203 |7.17% | |Provincial and Local |5407 |846 |15.65% |2989 |55.28% | |Government | | | | | | |Public Works |766869|79700 |10.39% |710502 |92.65% | | | | | | | | |Financial and |78206 |2998 |3.83% |25861 |33.07% | |Administrative Services | | | | | | |Government Communications |4350 |1517 |34.87% |4610 |105.98% | |and Information Services | | | | | | |National Treasury |33364 |118 |0.35% |6084 |18.24% | |Public Enterprises |2247 |-196 |-8.72% |1559 |69.38% | |Public Service and |2027 |407 |20.08% |900 |44.40% | |Administration | | | | | | |Public Service Commission |1182 |165 |13.96% |653 |55.25% | |S A Management Development |995 |33 |3.32% |137 |13.77% | |Institute | | | | | | |Statistics South Africa |34041 |954 |2.80% |11919 |35.01% | | | | | | | | |Social Services |164773|15436 |9.37% |99386 |60.32% | |Arts and Culture, |3697 |1 |0.03% |233 |6.30% | |Education |10682 |1304 |12.21% |4989 |46.70% | |Health |38433 |1914 |4.98% |13101 |34.09% | |Labour |102224|4298 |4.20% |30344 |29.68% | |Sport and Recreation South |2616 |7746 |296.10% |42812 |1636.54% | |Africa | | | | | | |Science and Technology |1015 |0 |0.00% |4098 |403.74% | |Social Development |6106 |173 |2.83% |3809 |62.38% | |Housing |3922 |515 |13.13% |6680 |170.32% | | | | | | | | |Justice and Protection |295121|210911 |7.15% |1860342 |63.04% | |Services |3 | | | | | |Correctional Services |127663|21155 |1.66% |705248 |55.24% | | |2 | | | | | |Defence |71613 | |0.00% | |0.00% | |Independent Complaints |1336 |839 |62.80% |1609 |120.43% | |Directorate | | | | | | |Justice and Constitutional |430865|35686 |8.28% |193525 |44.92% | |Development | | | | | | |Safety and Security |117076|153231 |13.09% |959959 |81.99% | | |7 | | | | | | | | | | | | |Economic Services and |593647|90206 |15.20% |644604 |108.58% | |Infrastructure Development | | | | | | |Agriculture |47076 |15092 |32.06% |50961 |108.25% | |Communications |7013 |67 |0.96% |2081 |29.67% | |Environmental Affairs and |74418 |5875 |7.89% |41685 |56.01% | |Tourism | | | | | | |Land Affairs |36653 |4983 |13.60% |19977 |54.50% | |Minerals and Energy |5897 |-137 |-2.32% |1675 |28.40% | |Trade and Industry |10937 |1259 |11.51% |4826 |44.13% | |Transport |22453 |389 |1.73% |3769 |16.79% | |Water Affairs and Forestry |385278|62163 |16.13% |512949 |133.14% |

The Department of Sport and Recreation South Africa has indicated that its records do not indicate an overexpenditure on its capital budget. However, the Department indicated that it needs to investigate the matter further and provide a response to the Committee.

Lowest Capital Expenditure

Table 10 |R’000 |Capital |Capital |% Capital|Capital |% | | |Budget |Expenditu|Expenditu|Expenditu|Capital | | | |re |re for |re to |expendit| | | | |the month|date |ure to | | | | | | |date | |Voted Amounts |5400118 |418403 |7.75% |3468281 |64.23% | | | | | | | | |Central Government |1612279 |98852 |6.13% |838088 |51.98% | |Administration | | | | | | |The Presidency |3668 |14 |0.38% |1963 |53.52% | |Parliament |33436 |2786 |8.33% |25078 |75.00% | |Foreign Affairs |200547 |12683 |6.32% |54353 |27.10% | |Home Affairs |602352 |2823 |0.47% |43203 |7.17% | |Provincial and Local |5407 |846 |15.65% |2989 |55.28% | |Government | | | | | | |Public Works |766869 |79700 |10.39% |710502 |92.65% | | | | | | | | |Financial and |78206 |2998 |3.83% |25861 |33.07% | |Administrative Services | | | | | | |Government Communications |4350 |1517 |34.87% |4610 |105.98% | |and Information Services | | | | | | |National Treasury |33364 |118 |0.35% |6084 |18.24% | |Public Enterprises |2247 |-196 |-8.72% |1559 |69.38% | |Public Service and |2027 |407 |20.08% |900 |44.40% | |Administration | | | | | | |Public Service Commission |1182 |165 |13.96% |653 |55.25% | |S A Management Development |995 |33 |3.32% |137 |13.77% | |Institute | | | | | | |Statistics South Africa |34041 |954 |2.80% |11919 |35.01% | | | | | | | | |Social Services |164773 |15436 |9.37% |99386 |60.32% | |Arts and Culture, |3697 |1 |0.03% |233 |6.30% | |Education |10682 |1304 |12.21% |4989 |46.70% | |Health |38433 |1914 |4.98% |13101 |34.09% | |Labour |102224 |4298 |4.20% |30344 |29.68% | |Science and Technology |1015 | |0.00% |4098 |403.74% | |Social Development |6106 |173 |2.83% |3809 |62.38% | |Sport and Recreation South |2616 |7746 |296.10% |42812 |1636.54%| |Africa | | | | | | | | | | | | | |Justice and Protection |2951213 |210911 |7.15% |1860342 |63.04% | |Services | | | | | | |Correctional Services |1276632 |21155 |1.66% |705248 |55.24% | |Defence7 |71613 |0 |0.00% |0 |0.00% | |Independent Complaints |1336 |839 |62.80% |1609 |120.43% | |Directorate | | | | | | |Justice and Constitutional |430865 |35686 |8.28% |193525 |44.92% | |Development | | | | | | |Safety and Security |1170767 |153231 |13.09% |959959 |81.99% | | | | | | | | |Economic Services and |593647 |90206 |15.20% |644604 |108.58% | |Infrastructure Development | | | | | | |Agriculture |47076 |15092 |32.06% |50961 |108.25% | |Communications |7013 |67 |0.96% |2081 |29.67% | |Environmental Affairs and |74418 |5875 |7.89% |41685 |56.01% | |Tourism | | | | | | |Housing |3922 |515 |13.13% |6680 |170.32% | |Land Affairs |36653 |4983 |13.60% |19977 |54.50% | |Minerals and Energy |5897 |-137 |-2.32% |1675 |28.40% | |Trade and Industry |10937 |1259 |11.51% |4826 |44.13% | |Transport |22453 |389 |1.73% |3769 |16.79% |

B. THE PROVINCIAL SPHERE OF GOVERNMENT

Part B of the report analyses the expenditure trends of provinces by the end of the third quarter of the 2004/05 financial year. The figures in the third quarter report include the additional funds totaling R4, 3 billion allocated to provinces on 26 October 2004 through the adjustments budget. Provinces have spent 70.6% of their adjusted budget in the first nine months of the financial year8.

Most spending pressure facing provinces is in the Departments of Social Development. Provinces received an increase of R3, 3 billion in this regard through the adjustments budget, and have spent 73.4% or R37, 2 billion of their R50, 7 billion adjusted budget. This represents an increase of R6, 4 billion or 20.9% over the same period last year.

The National Treasury, in a report on the state of provincial expenditure, indicated that some provinces also face some risks from their personnel expenditure, i.e. in the Departments of Education and Health. The total personnel expenditure in all nine provinces is R65, 7 billion or 73.6% of the R89, 3 billion personnel budget.

This fact is clearly indicated by the imbalance between current and capital expenditure in this report. The biggest underspending problem in provinces continues to be the slow rate of spending on capital expenditure, as provinces spent 46.4% or R5, 6 billion of their combined R12 billion adjusted capital budgets. This is significantly lower than the 64.23% spent by national departments9. Fact sheet on Provincial Spending10.

The highest share (39.3%) of provincial capital budgets was for roads, transport and public works departments, which spent R2.6 billion or 54.3% against the total R4.7 billion adjusted budget.

Education spending totalled R47.8 billion or 72.6% of the R65.7 billion total adjusted budget for education. The spending pattern reflected a R4.3 billion or 9.9 percent increase compared with spending during the same period in 2003/04. Capital spending in education was relatively slow at 42.9 percent or R1.3 billion up to the end of December 2004. Personnel expenditure was high at 74.5 percent.

Health spending totalled R28.7-billion (70.2%), which was R2.5 billion higher compared with the same period last year. Capital spending in health was also relatively slow at 45.4% or R1.3-billion.

  1. PROVINCIAL ANALYSIS

The expenditure pattern of provinces in the third quarter of the current financial year is as follows:

3.1. EASTERN CAPE PROVINCE

Table 11 illustrates that the Eastern Cape Province had spent an average of 72.24% of its budget by the end of the third quarter. The Province’s Departments have spent their budgets satisfactorily, with the Provincial Treasury being the lowest spender at 57.48%.

Table 11: Total Expenditure of Departments in the Eastern Cape Province

R’000 Total Total Percentage Total Percentage
  Budget Expendit Expenditure Expendit Total
    ure for for the ure to Expenditure
    the Quarter date to date
    Quarter      
2.Health 5221266 1373348 26.30% 3963872 75.92%
3.Social Development 9687860 1749765 18.06% 6660730 68.75%
4.Office of the 225967 48390 21.41% 138604 61.34%
Premier          
5.Provincial 95549 23676 24.78% 68949 72.16%
Legislature          
6.Roads & Public 1821793 553773 30.40% 1509375 82.85%
Works          
7.Housing, Local 1039212 233758 22.49% 758145 72.95%
Government &          
Traditional Affairs          
8.Agriculture 882143 255277 28.94% 585672 66.39%
9.Economic Affairs, 799624 226796 28.36% 489081 61.16%
Environment &Tourism          
10.Transport 302586 80016 26.44% 219658 72.59%
11.Provincial 155030 33329 21.50% 89114 57.48%
Treasury          
12.Sport, Recreation, 239883 50329 20.98% 154805 64.53%
Arts & Culture          
13.Safety & Liaison 11322 3271 28.89% 8573 75.72%
Total 31277501 7596875 24.29% 22593529 72.24%
2.Health 2757267 730151 26.48% 2024257 73.42%
3.Social Development 3632596 995305 27.40% 2637104 72.60%
4.Department of the 85380 17920 20.99% 54924 64.33%
Premier          
5.Free State 61964 16848 27.19% 45337 73.17%
Legislature          
6.Tourism, 249050 39073 15.69% 161576 64.88%
Environmental &          
Economic Affairs          
7.Free State 134022 29907 22.31% 78351 58.46%
Provincial Treasury          
8.Local Government & 763490 177506 23.25% 445140 58.30%
Housing          
9.Public Works, 808983 267248 33.04% 548716 67.83%
Roads & Transport          
10.Public Safety, 27140 5376 19.81% 16198 59.68%
Security & Liaison          
11.Agriculture 257283 45938 17.86% 122304 47.54%
12.Sport, Arts, 94262 20418 21.66% 55774 59.17%
Culture, Science &          
Technology          
Total 1348908 3518096 26.08% 9351976 69.33%
  7        
2.Health 8943840 2206943 24.68% 5856157 65.48%
3.Social 6342534 1800729 28.39% 4675026 73.71%
Development          
4.Office of the 101402 25657 25.30% 66505 65.59%
Premier          
5.Gauteng 98695 22137 22.43% 63574 64.41%
Provincial          
Legislature          
6.Finance & 1207232 131587 10.90% 601332 49.81%
Economic          
Affairs          
7.Housing 1440226 371209 25.77% 1011733 70.25%
8.Local 237367 95371 40.18% 138174 58.21%
Government          
9.Public 1787446 411952 23.05% 1138334 63.68%
Transport,          
Roads & Works          
10.Community 162669 30396 18.69% 49211 30.25%
Safety          
11.Agriculture, 206579 43008 20.82% 114971 55.65%
Conservation &          
Environment          
12.Sport, 142252 39702 27.91% 89427 62.87%
Recreation,          
Arts and          
Culture          
13.Gauteng 509181 129373 25.41% 310075 60.90%
Shared Services          
Center          
Total 31206772 8193373 26.26% 21619254 69.28%
2.Health 8875985 2349877 26.47% 6435717 72.51%
3.Social 10950554 2988392 27.29% 8617471 78.69%
Welfare &          
Population          
Development          
4.Office of the 201884 38006 18.83% 98609 48.84%
Premier          
5.Provincial 130792 23349 17.85% 70869 54.18%
Parliament          
6.Agriculture & 963846 253774 26.33% 648687 67.30%
Environmental          
Affairs          
7.Economic 146897 46487 31.65% 127597 86.86%
Development          
8.Provincial 694021 34754 5.01% 115666 16.67%
Treasury          
9.Housing 975915 203188 20.82% 684709 70.16%
10Community 17127 4461 26.05% 9927 57.96%
Safety &          
Liaison          
11.The Royal 25212 6854 27.19% 18299 72.58%
Household          
12.Traditional 487186 115898 23.79% 275982 56.65%
& Local          
Government          
Affairs          
13Transport 1809647 497656 27.50% 1405631 77.67%
14.Works 402004 92841 23.09% 244964 60.94%
15.Arts, 200608 14695 7.33% 24095 12.01%
Culture &          
Tourism          
16.Sport & 43652 5768 13.21% 11915 27.30%
Recreation          
17.Reconstructi - - - - -
on &          
Development          
Total 3899404 10045447 25.76% 28308435 72.60%
  4        
1.Education 9689857 2537041 26.18% 7013229 72.38%
2.Health 4239622 1047859 24.72% 2959007 69.79%
3.Welfare 6712055 1675453 24.96% 4749914 70.77%
4.Sport, Arts & Culture 78788 18686 23.72% 52664 66.84%
5.Safety, Security & 20883 4416 21.15% 12626 60.46%
Liaison          
6.Office of the Premier 261144 64139 24.56% 134027 51.32%
7.Local Government & 857720 168477 19.64% 517674 60.35%
Housing          
8.Provincial Legislature 103167 19051 18.47% 57480 55.72%
9.Public Works 1518006 328028 21.61% 1026010 67.59%
10.Finance & Economic 852250 205179 24.07% 560722 65.79%
Development          
11.Agriculture 795233 184359 23.18% 514477 64.70%
12.Transport 487290 142859 29.32% 358630 73.60%
Total 2561601 6395547 24.97% 17956460 70.10%
  5        
1.Education 5206947 1300949 24.98% 3595256 69.05%
2.Health 2393885 587868 24.56% 1560220 65.18%
3.Social Development 3368928 1029686 30.56% 2580891 76.61%
4.Office of the Premier 111780 27027 24.18% 77319 69.17%
5.Finance 192162 53150 27.66% 113433 59.03%
6.Agriculture & Land 500735 122207 24.41% 323703 64.65%
Administration          
7.Roads & Transport 834874 211900 25.38% 505737 60.58%
8.Safety & Security 36268 8926 24.61% 25079 69.15%
9.Local Government & 551394 170718 30.96% 434059 78.72%
Housing          
10.Provincial 51984 13396 25.77% 37201 71.56%
Legislature          
11.Culture, Sport & 72826 16803 23.07% 50449 69.27%
Recreation          
12.Economic Development 175236 67503 38.52% 135531 77.34%
& Planning          
13.Public Works 290669 80224 27.60% 190348 65.49%
Total Payments 137876 3690357 26.77% 9629226 69.84%
  88        
2.Health 266437 655000 24.58% 1830426 68.70%
  0        
3.Social Development 431345 994612 23.06% 3201225 74.21%
  8        
4.Office of the Premier 153270 33134 21.62% 98357 64.17%
5.Provincial Legislature 77463 13921 17.97% 47104 60.81%
6.Safety & Liaison 20679 5576 26.96% 14313 69.22%
7.Finance & Economic 311877 59492 19.08% 173281 55.56%
Development          
8.Local government & Housing 688775 129571 18.81% 290824 42.22%
9.Transport & Roads 114504 308369 26.93% 756451 66.06%
  7        
10.Public Works 367939 89264 24.26% 228910 62.21%
11.Agriculture, Conservation, 512733 121683 23.73% 338517 66.02%
Environment & Tourism          
12.Sport, Arts & Culture 170383 37892 22.24% 102584 60.21%
13.Contingency Reserve 30627 - 0.00% - 0.00%
Total 15881229 3914358 24.65% 10978400 69.13%
1.Education 1398132 389641 27.87% 1083601 77.50%
2.Health 874839 216125 24.70% 602021 68.82%
3.Social Services & 1317875 296402 22.49% 935085 70.95%
Population Development          
4.Office of the Premier 67781 12606 18.60% 46034 67.92%
5.Legislature 46226 10085 21.82% 31660 68.49%
6.Provincial Safety & 12143 2673 22.01% 7989 65.79%
Liaison          
7.Transport, Roads & Public 373975 97074 25.96% 234920 62.82%
Works          
8.Economic Affairs & 48049 9898 20.60% 22870 47.60%
Tourism          
9.Sport, Arts & Culture 53014 9953 18.77% 38715 73.03%
10.Finance 68288 12365 18.11% 35121 51.43%
11.Housing & Local 251492 49236 19.58% 198591 78.97%
Government          
12.Agriculture, Land 129954 25513 19.63% 72497 55.79%
Reform, Environment &          
Conservation          
Total 4641768 1131571 24.38% 3309104 71.29%
1.Education 5516384 1541706 27.95% 4040551 73.25%
2.Health 4878343 1256807 25.76% 3463187 70.99%
3.Social Services & 4326504 1099111 25.40% 3110194 71.89%
Poverty Alleviation          
4.Provincial 297241 64256 21.62% 177084 59.58%
Administration          
5.Provincial Parliament 46861 10974 23.42% 34110 72.79%
6.Provincial Treasury 108980 23370 21.44% 68069 62.46%
7.Community Safety 161627 48430 29.96% 116222 71.91%
8.Housing 712881 174597 24.49% 371929 52.17%
9.Environmental Affairs & 137417 31314 22.79% 94753 68.95%
Development Planning          
10.Transport & Public 1882316 399152 21.21% 1066682 56.67%
Works          
11.Agriculture 230644 60393 26.18% 135522 58.76%
12.Local Government 89022 13059 14.67% 36685 41.21%
13.Economic Development & 126536 66971 52.93% 97223 76.83%
Tourism          
14.Cultural Affairs & 156239 36043 23.07% 102713 65.74%
Sport          
Total 18670995 4826183 25.85% 12914924  
           
Central Government 24327550 1258559 5.17% 5.29%  
Administration          
Parliament 576144 49011 8.51% 7.68%  
Foreign Affairs 2546649 250558 9.84% 6.05%  
Home Affairs 2377615 151053 6.35% 10.35%  
Provincial and Local 13137381 318564 2.42% 1.96%  
Government          
Public Works 5513909 472177 8.56% 9.07%  
Financial and 15060896 874190 5.80% 9.92%  
Administrative Services          
National Treasury 14021916 800462 5.71% 10.05%  
Public Enterprises 77377 4992 6.45% 6.25%  
Public Service and 144296 11372 7.88% 6.74%  
Administration          
Public Service Commission 73081 5948 8.14% 7.87%  
S A Management Development 40887 1764 4.31% 8.69%  
Institute          
Statistics South Africa 500190 29595 5.92% 10.55%  
Social Services 28803489 3208057 11.14% 9.48%  
Education 11405095 1028339 9.02% 7.81%  
Health 8818400 764299 8.67% 11.29%  
Labour 1228697 78888 6.42% 9.25%  
Science and Technology 1282412 111675 8.71% 5.24%  
Social Development 4598575 1123278 24.43% 13.87%  
Sport and Recreation South 294213 14076 4.78% 9.10%  
Africa          
Justice and Protection 57538746 4846459 8.42% 9.06%  
Services          
Defence 19411819 1535182 7.91% 10.56%  
Independent Complaints 42114 3390 8.05% 6.64%  
Directorate          
Justice and Constitutional 5054417 417003 8.25% 7.76%  
Development          
Safety and Security 24572904 2163719 8.81% 8.48%  
Economic Services and 27800956 2103395 7.57%    
Infrastructure Development       8.61%  
Communications 1679917 103299 6.15% 4.99%  
Environmental Affairs and 1652268 173195 10.48% 8.44%  
Tourism          
Housing 4826781 468158 9.70% 9.99%  
Land Affairs 2031882 178616 8.79% 7.85%  
Minerals and Energy 1945143 64786 3.33% 9.21%  
Trade and Industry 3623291 277725 7.66% 7.67%  
Transport 6769171 390175 5.76% 8.64%  
Water Affairs and Forestry 3823112 406411 10.63% 7.64%  

Appendix 2: November Expenditure in National Departments

R’000 Total Budget Total % expenditure % Expenditure in
    Expenditure in November November 2003
      2004  
         
Central Government 24327550 3243210 13.33% 12.53%
Administration        
Parliament 576144 49011 8.51% 6.23%
Foreign Affairs 2546649 263675 10.35% 5.45%
Home Affairs 2377615 146401 6.16% 7.21%
Provincial and Local 13137381 2364852 18.00% 18.34%
Government        
Public Works 5513909 407723 7.39% 7.48%
Financial and 15060896 1683448 11.18%  
Administrative Services       5.54%
National Treasury 14021916 1628285 11.61% 5.33%
Public Enterprises 77377 5759 7.44% 7.04%
Public Service and 144296 6261 4.34% 9.54%
Administration        
Public Service Commission 73081 6326 8.66% 6.99%
S A Management Development 40887 1972 4.82% 8.22%
Institute        
Statistics South Africa 500190 23817 4.76% 6.87%
Social Services 28803489 1940534 6.74% 7.22%
Education 11405095 835165 7.32% 8.29%
Health 8818400 724720 8.22% 5.86%
Labour 1228697 123912 10.08% 5.86%
Science and Technology 1282412 158214 12.34% 12.84%
Social Development 4598575 25556 0.56% 6.47%
Sport and Recreation South 294213 13598 4.62% 9.75%
Africa        
Justice and Protection 57538746 4418486 7.68% 7.41%
Services        
Defence 19411819 1107190 5.70% 5.96%
Independent Complaints 42114 4353 10.34% 6.24%
Directorate        
Justice and Constitutional 5054417 418538 8.28% 8.40%
Development        
Safety and Security 24572904 2154776 8.77% 8.71%
Economic Services and 27800956 2279078 8.20%  
Infrastructure Development       7.81%
Communications 1679917 136227 8.11% 2.25%
Environmental Affairs and 1652268 109604 6.63% 2.32%
Tourism        
Housing 4826781 480263 9.95% 10.92%
Land Affairs 2031882 148862 7.33% 15.31%
Minerals and Energy 1945143 95491 4.91% 8.72%
Trade and Industry 3623291 215665 5.95% 6.59%
Transport 6769171 720636 10.65% 5.83%
Water Affairs and Forestry 3823112 300239 7.85% 9.24%

Appendix 3: December 2004 Expenditure

R’000 Total Expendi % Total %
  Budget ture Expenditu expendi Expenditu
    for the re for ture to re as at
    Month the month date 31
          December
          2004
Voted Amounts 83526916 5036221 6.03% 5962828 71.39%
        4  
           
Central Government Administration 15311946 972357 6.35% 9472422 61.86%
The Presidency 16650 22 0.13% 11999 72.07%
Parliament 78371 6530 8.33% 58781 75.00%
Foreign Affairs 299409 7480 2.50% 102796 34.33%
Home Affairs 537666 44579 8.29% 477214 88.76%
Provincial and Local Government 12902923 820320 6.36% 8210970 63.64%
Public Works 1476927 93426 6.33% 610662 41.35%
           
Financial and Administrative 11999524 689261 5.74% 8248829 68.74%
Services          
Government Communications and 73124 12296 16.82% 73071 99.93%
Information Services          
National Treasury 11907993 676154 5.68% 8167166 68.59%
Public Enterprises 7065 -92 -1.30% 75 1.06%
Public Service and Administration 320 18 5.63% 234 73.13%
Public Service Commission 137   0.00%   0.00%
S A Management Development Institute 10101 839 8.31% 7644 75.68%
Statistics South Africa 784 46 5.87% 638 81.38%
           
Social Services 25884159 1037856 4.01% 2056241 79.44%
        7  
Arts and Culture, 955863 70376 7.36% 470798 49.25%
Education 10913490 129769 1.19% 1016398 93.13%
        6  
Health 8058600 653693 8.11% 5982271 74.23%
Labour 337636 2081 0.62% 221506 65.60%
Science and Technology 1147127 71238 6.21% 745307 64.97%
Social Development 4241973 100778 2.38% 2903838 68.45%
Sport and Recreation South Africa 229470 9921 4.32% 74711 32.56%
           
Justice and Protection Services 8416372 177923 2.11% 6060033 72.00%
Correctional Services 42330 20216 47.76% 147767 349.08%
Defence 7354033 73013 0.99% 5118526 69.60%
Independent Complaints Directorate 89 38 42.70% 186 208.99%
Justice and Constitutional 617261 44291 7.18% 483470 78.33%
Development          
Safety and Security 402659 40365 10.02% 310084 77.01%
           
Economic Services and Infrastructure 21914915 2158824 9.85% 1528458 69.75%
Development       3  
Agriculture 756959 65571 8.66% 458220 60.53%
Communications 1402104 40166 2.86% 527520 37.62%
Environmental Affairs and Tourism 1200491 100345 8.36% 932178 77.65%
Housing 4651928 484309 10.41% 3743290 80.47%
Land Affairs 1329980 49828 3.75% 1007274 75.74%
Minerals and Energy 1533588 517583 33.75% 1197243 78.07%
Trade and Industry 2957815 236486 8.00% 1601229 54.14%
Transport 6231395 542942 8.71% 4733098 75.96%
Water Affairs and Forestry 1850655 121594 6.57% 1084531 58.60%

Appendix 6: Capital expenditure of National Departments as at 31 December 2004

R’000 Capita Capital % Capital Capital % Capital
  l Expendit Expenditure Expendi expenditu
  Budget ure for the ture to re at at
      month date 31
          December
          2004
Health 422469 1125280 26.64% 3283349 77.72%
  8        
Social Development 777130 217455 27.98% 563925 72.57%
Office of the Premier 168659 41369 24.53% 113433 67.26%
Provincial Legislature 88264 21756 24.65% 64172 72.70%
Roads & Public Works 934852 226945 24.28% 701582 75.05%
Housing, Local Government & 287040 75722 26.38% 183506 63.93%
Traditional Affairs          
Agriculture 681278 149183 21.90% 454742 66.75%
Economic Affairs, Environment 135183 29897 22.12% 82288 60.87%
&Tourism          
Transport 197030 59324 30.11% 158356 80.37%
Provincial Treasury 148684 32403 21.79% 88002 59.19%
Sport, Recreation, Arts & Culture 195457 46480 23.78% 134173 68.65%
Safety & Liaison 10988 3265 29.71% 8561 77.91%
Total 18051283 4831627 26.77% 13294259 73.65%
Health 551985 132213 23.95% 365455 66.21%
Social Development 8888806 1530295 17.22% 6094602 68.56%
Office of the Premier 41555 4448 10.70% 19414 46.72%
Provincial Legislature 5675 1793 31.59% 4264 75.14%
Roads & Public Works 7438 12720 171.01% 44827 602.68%
Housing, Local Government & 737681 152878 20.72% 567401 76.92%
Traditional Affairs          
Agriculture 190916 105493 55.26% 124267 65.09%
Economic Affairs, Environment 661170 196224 29.68% 405895 61.39%
&Tourism          
Transport 55743 17242 30.93% 36627 65.71%
Provincial Treasury 2112 185 8.76% 279 13.21%
Sport, Recreation, Arts & Culture 30195 1579 5.23% 18375 60.85%
Safety & Liaison   6   12  
Total 1146502 2239702 19.54% 7939356 69.25%
  0        
Health 444583 115855 26.06% 315068 70.87%
Social Development 21924 2015 9.19% 2203 10.05%
Office of the Premier 15753 2573 16.33% 5757 36.55%
Provincial Legislature 1610 127 7.89% 513 31.86%
Roads & Public Works 879503 314108 35.71% 762966 86.75%
Housing, Local Government & 14491 5158 35.59% 7238 49.95%
Traditional Affairs          
Agriculture 9949 601 6.04% 6663 66.97%
Economic Affairs, Environment 3271 675 20.64% 898 27.45%
&Tourism          
Transport 49813 3450 6.93% 24675 49.54%
Provincial Treasury 4234 741 17.50% 833 19.67%
Sport, Recreation, Arts & Culture 14231 2270 15.95% 2257 15.86%
Safety & Liaison 334 -3 -0.90%   0.00%
Total 176119 525546 29.84% 1359914 77.22%
  8        
Health 245713 654081 26.62% 1807866 73.58%
  5        
Social Development 356113 119165 33.46% 225400 63.29%
Department of the Premier 74152 15102 20.37% 46207 62.31%
Free State Legislature 50804 12619 24.84% 36840 72.51%
Tourism, Environmental & Economic 134395 33475 24.91% 96159 71.55%
Affairs          
Free State Provincial Treasury 126053 28284 22.44% 74714 59.27%
Local Government & Housing 141802 29615 20.88% 73361 51.73%
Public Works, Roads & Transport 644043 226894 35.23% 498183 77.35%
Public Safety, Security & Liaison 25850 4594 17.77% 15357 59.41%
Agriculture 182703 44677 24.45% 119272 65.28%
Sport, Arts, Culture, Science & 65354 16046 24.55% 43822 67.05%
Technology          
Total 838543 2248964 26.82% 5911811 70.50%
  3        
Health 92936 37948 40.83% 93167 100.25%
Social Development 324636 871331 26.84% 2405426 74.10%
  1        
Department of the Premier 10452 2670 25.55% 8372 80.10%
Free State Legislature 8088 3190 39.44% 5497 67.96%
Tourism, Environmental & Economic 102777 3325 3.24% 57209 55.66%
Affairs          
Free State Provincial Treasury 441 53 12.02% 197 44.67%
Local Government & Housing 616379 147567 23.94% 370409 60.09%
Public Works, Roads & Transport 3363 1074 31.94% 3714 110.44%
Public Safety, Security & Liaison 547 28 5.12% 87 15.90%
Agriculture 31086 154 0.50% 709 2.28%
Sport, Arts, Culture, Science & 5019 915 18.23% 3752 74.76%
Technology          
Total 4444107 1158786 26.07% 3163327 71.18%
Health 207196 38122 18.40% 123224 59.47%
Social Development 21122 4809 22.77% 6278 29.72%
Department of the Premier 776 148 19.07% 345 44.46%
Free State Legislature 3072 1039 33.82% 3000 97.66%
Tourism, Environmental & 11878 2273 19.14% 8208 69.10%
Economic Affairs          
Free State Provincial Treasury 7528 1570 20.86% 3440 45.70%
Local Government & Housing 5309 324 6.10% 1370 25.81%
Public Works, Roads & Transport 161577 39280 24.31% 46819 28.98%
Public Safety, Security & 743 753 101.35% 753 101.35%
Liaison          
Agriculture 43494 1107 2.55% 2323 5.34%
Sport, Arts, Culture, Science & 23889 3457 14.47% 8200 34.33%
Technology          
Total 659547 110345 16.73% 276837 41.97%
Health 7700578 1964004 25.50% 5293596 68.74%
Social Development 561312 149416 26.62% 401283 71.49%
Office of the Premier 97050 24887 25.64% 63576 65.51%
Gauteng Provincial 87300 20609 23.61% 55766 63.88%
Legislature          
Finance & Economic Affairs 139749 73107 52.31% 188267 134.72%
Housing 131237 39442 30.05% 112901 86.03%
Local Government 96982 24027 24.77% 62176 64.11%
Public Transport, Roads & 1088746 352010 32.33% 950510 87.30%
Works          
Community Safety 151678 29991 19.77% 43153 28.45%
Agriculture, Conservation & 195073 41997 21.53% 110949 56.88%
Environment          
Sport, Recreation, Arts and 84689 22049 26.04% 56911 67.20%
Culture          
Gauteng Shared Services 4755520 127583 2.68% 302600 6.36%
Center          
Total 1929868 5324955 27.59% 1424652 73.82%
  9     3  
Health 747322 206415 27.62% 490942 65.69%
Social Development 5769575 1650302 28.60% 4270951 74.03%
Office of the Premier 113 38 33.63% 91 80.53%
Gauteng Provincial          
Legislature          
Finance & Economic Affairs 1008326 57178 5.67% 409847 40.65%
Housing 1294066 331084 25.58% 894459 69.12%
Local Government 138950 71166 51.22% 75783 54.54%
Public Transport, Roads & 60 58116 96860.00% 181127 301878.33%
Works          
Community Safety 1109 128 11.54% 465 41.93%
Agriculture, Conservation & 2866   0.00% 92 3.21%
Environment          
Sport, Recreation, Arts and 56936 17255 30.31% 31385 55.12%
Culture          
Gauteng Shared Services          
Center          
Total 975205 2632699 27.00% 6959796 71.37
  2       %

Capital Expenditure |R’000 |Capit|Capital |% |Capital |% Capital | | |al |Expenditur|Capital |Expendit|Expenditur| | |Budge|e for the |Expendit|ure to |e to date | | |t |Quarter |ure for |date | | | | | |the | | | | | | |Quarter | | | |Health |49594|36524 |7.36% |71619 |14.44% | | |0 | | | | | |Social Development |11647|1010 |8.67% |2791 |23.96% | |Office of the Premier |4239 |732 |17.27% |2838 |66.95% | |Gauteng Provincial Legislature |11395|1528 |13.41% |7808 |68.52% | |Finance & Economic Affairs |59157|1302 |2.20% |3218 |5.44% | |Housing |14923|683 |4.58% |4373 |29.30% | |Local Government |1435 |178 |12.40% |215 |14.98% | |Public Transport, Roads & Works |69864|1826 |0.26% |6697 |0.96% | | |0 | | | | | |Community Safety |9882 |277 |2.80% |5593 |56.60% | |Agriculture, Conservation & |8640 |1011 |11.70% |3930 |45.49% | |Environment | | | | | | |Sport, Recreation, Arts and |627 |398 |63.48% |1131 |180.38% | |Culture | | | | | | |Gauteng Shared Services Center |33661|1790 |5.32% |7475 |22.21% | |Total |2156031|235718 |10.93% |412934 |19.15% | |Education |456170 |139381 |30.55% |698047 |153.02% | |Health |366677 |70525 |19.23% |256768 |70.03% | |Social Welfare & Population |9976262|2674687 |26.81% |7847960|78.67% | |Development | | | | | | |Office of the Premier |18056 |1454 |8.05% |4317 |23.91% | |Provincial Parliament |10613 |2531 |23.85% |7574 |71.37% | |Agriculture & Environmental |304371 |71839 |23.60% |199043 |65.39% | |Affairs | | | | | | |Economic Development |63599 |29229 |45.96% |82955 |130.43% | |Provincial Treasury |804 |301 |37.44% |909 |113.06% | |Housing |749460 |149168 |19.90% |509048 |67.92% | |Community Safety & Liaison |85 |275 |323.53% |286 |336.47% | |The Royal Household |137 |18 |13.14% |73 |53.28% | |Traditional & Local Government |126943 |42155 |33.21% |60814 |47.91% | |Affairs | | | | | | |Transport |27340 |1693 |6.19% |14232 |52.06% | |Works |6513 |1014 |15.57% |4259 |65.39% | |Arts, Culture & Tourism |105899 |5701 |5.38% |8261 |7.80% | |Sport & Recreation |4610 |610 |13.23% |660 |14.32% | |Reconstruction & Development | | | | | | |Total |1221753|3190581 |26.11% |9695206 |79.35% | | |9 | | | | | |Education |710353 |81163 |11.43% |95854 |13.49% | |Health |569197 |165853 |29.14% |318366 |55.93% | |Social Welfare & Population |55701 |13981 |25.10% |23337 |41.90% | |Development | | | | | | |Office of the Premier |5512 |449 |8.15% |1037 |18.81% | |Provincial Parliament |30361 |507 |1.67% |4338 |14.29% | |Agriculture & Environmental |99054 |11152 |11.26% |17189 |17.35% | |Affairs | | | | | | |Economic Development |3257 |359 |11.02% |1014 |31.13% | |Provincial Treasury |17380 |2952 |16.99% |3832 |22.05% | |Housing |13027 |1919 |14.73% |5740 |44.06% | |Community Safety & Liaison |364 |6 |1.65% |12 |3.30% | |The Royal Household |3053 |763 |24.99% |1740 |56.99% | |Traditional & Local Government |36308 |1839 |5.06% |16690 |45.97% | |Affairs | | | | | | |Transport |1099581|269201 |24.48% |806706 |73.36% | |Works |62973 |5796 |9.20% |12885 |20.46% | |Arts, Culture & Tourism |4257 |84 |1.97% | 91 | 2.14% | |Total |271257|556060 |20.50% |1308904 | | | |5 | | | | | |Health |376009|956160 |25.43% |2669456 |70.99% | | |4 | | | | | |Welfare |575724|141759 |24.62% |299392 |52.00% | |Sport, Arts & Culture |72401 |18584 |25.67% |50217 |69.36% | |Safety, Security & Liaison |16102 |3665 |22.76% |11444 |71.07% | |Office of the Premier |199420|45134 |22.63% |110353 |55.34% | |Local Government & Housing |358322|73332 |20.47% |243083 |67.84% | |Provincial Legislature |84436 |18147 |21.49% |48091 |56.96% | |Public Works |751716|197792 |26.31% |524769 |69.81% | |Finance & Economic Development |490238|140280 |28.61% |325964 |66.49% | |Agriculture |606358|156601 |25.83% |431602 |71.18% | |Transport |309596|95367 |30.80% |233352 |75.37% | |Total |162309|4262758 |26.26% |11509933|70.91% | | |93 | | | | | |Health |83489 |11774 |14.10% |41258 |49.42% | |Welfare |604604|1532061 |25.34% |4438432 |73.41% | | |9 | | | | | |Sport, Arts & Culture |2142 |16 |0.75% |896 |41.83% | |Safety, Security & Liaison |2381 |510 |21.42% |524 |22.01% | |Office of the Premier |40354 |17830 |44.18% |21829 |54.09% | |Local Government & Housing |418576|86653 |20.70% |226084 |54.01% | |Provincial Legislature |8898 |541 |6.08% |7054 |79.28% | |Public Works |665793|113495 |17.05% |455858 |68.47% | |Finance & Economic |267927|59351 |22.15% |178735 |66.71% | |Development | | | | | | |Agriculture |45408 |10694 |23.55% |33231 |73.18% | |Transport |155626|46809 |30.08% |113456 |72.90% | |Total |7909477 |1926821 |24.36% |5640320 |71.31% | |Health |396039 |79925 |20.18% |248293 |62.69% | |Welfare |90282 |1633 |1.81% |12090 |13.39% | |Sport, Arts & Culture |4245 |86 |2.03% |1551 |36.54% | |Safety, Security & Liaison|2400 |241 |10.04% |658 |27.42% | |Office of the Premier |21370 |1175 |5.50% |1845 |8.63% | |Local Government & Housing|80822 |8492 |10.51% |48507 |60.02% | |Provincial Legislature |9833 |363 |3.69% |2336 |23.76% | |Public Works |100497 |16741 |16.66% |45383 |45.16% | |Finance & Economic |94085 |5548 |5.90% |56023 |59.55% | |Development | | | | | | |Agriculture |143467 |17064 |11.89% |49644 |34.60% | |Transport |22068 |683 |3.09% |11822 |53.57% | |Total |147554|205968 |13.96% |806208 |54.64% | | |5 | | | | | |Education |482575|1233257 |25.56% |3360830|69.64% | | |9 | | | | | |Health |206779|553245 |26.76% |1469816|71.08% | | |8 | | | | | |Social Development |266771|89594 |33.58% |202735 |76.00% | |Office of the Premier |108057|26490 |24.51% |75963 |70.30% | |Finance |176748|51888 |29.36% |106803 |60.43% | |Agriculture & Land |335487|80107 |23.88% |206780 |61.64% | |Administration | | | | | | |Roads & Transport |454527|139834 |30.76% |321446 |70.72% | |Safety & Security |35247 |8614 |24.44% |24437 |69.33% | |Local Government & Housing|112377|33428 |29.75% |91243 |81.19% | |Provincial Legislature |47593 |12364 |25.98% |34011 |71.46% | |Culture, Sport & |64186 |16826 |26.21% |47390 |73.83% | |Recreation | | | | | | |Economic Development & |59219 |18051 |30.48% |40593 |68.55% | |Planning | | | | | | |Public Works |258781|69526 |26.87% |171040 |66.09% | |Total Payments |8812550 |2333224 |26.48% |6153087 |69.82% | |Health |73596 |20803 |28.27% |51775 |70.35% | |Social |3095130 |939636 |30.36% |2377592 |76.82% | |Development | | | | | | |Office of the |1174 |30 |2.56% |118 |10.05% | |Premier | | | | | | |Finance |69 |18 |26.09% |57 |82.61% | |Agriculture & |141027 |37278 |26.43% |111291 |78.91% | |Land | | | | | | |Administration | | | | | | |Roads & |982 |629 |64.05% |1453 |147.96% | |Transport | | | | | | |Safety & |66 |200 |303.03% |530 |803.03% | |Security | | | | | | |Local Government|377866 |149456 |39.55% |340369 |90.08% | |& Housing | | | | | | |Provincial |2700 |967 |35.81% |2759 |102.19% | |Legislature | | | | | | |Culture, Sport &|1980 |-88 |-4.44% |2499 |126.21% | |Recreation | | | | | | |Economic |115833 |49452 |42.69% |95020 |82.03% | |Development & | | | | | | |Planning | | | | | | |Public Works |478 |511 |106.90% |972 |203.35% | |Total Payments |3967106 |1238585 |31.22% |3120388 |78.66% |

Capital

R’000 Capita Capital % Capital Capital % Capital
  l Expenditur Expenditure Expenditu Expenditure
  Budget e for the for the re to to date
    Quarter Quarter date  
Health 252491 13820 5.47% 38629 15.30%
Social Development 7027 456 6.49% 564 8.03%
Office of the Premier 2549 507 19.89% 1238 48.57%
Finance 15345 1244 8.11% 6573 42.83%
Agriculture & Land 24221 4822 19.91% 5632 23.25%
Administration          
Roads & Transport 379365 71437 18.83% 182838 48.20%
Safety & Security 955 112 11.73% 112 11.73%
Local Government & 61151 -12166 -19.90% 2447 4.00%
Housing          
Provincial Legislature 1691 65 3.84% 431 25.49%
Culture, Sport & 6660 65 0.98% 560 8.41%
Recreation          
Economic Development & 184   0.00%    
Planning          
Public Works 31410 10187 32.43% 18336 58.38%
Total Payments 1008032 118548 11.76% 355751 35.29%
Health 2328748 595761 25.58% 1675195 71.94%
Social Development 379484 80557 21.23% 237917 62.69%
Office of the Premier 142436 31851 22.36% 93727 65.80%
Provincial Legislature 60225 9559 15.87% 33701 55.96%
Safety & Liaison 20087 5143 25.60% 13802 68.71%
Finance & Economic Development 239460 51542 21.52% 150951 63.04%
Local government & Housing 92661 20711 22.35% 58652 63.30%
Transport & Roads 621428 169493 27.27% 405856 65.31%
Public Works 330791 82505 24.94% 216214 65.36%
Agriculture, Conservation, 327596 82314 25.13% 232745 71.05%
Environment & Tourism          
Sport, Arts & Culture 103338 19307 18.68% 55344 53.56%
Contingency Reserve 13100   0.00%   0.00%
Total 973801 2506931 25.74% 6834479 70.18%
  2        
Health 69276 18825 27.17% 43353 62.58%
Social Development 391142 912277 23.32% 2958942 75.65%
  0        
Office of the Premier 7994 1197 14.97% 4287 53.63%
Provincial Legislature 62 17 27.42% 54 87.10%
Safety & Liaison 479 409 85.39% 471 98.33%
Finance & Economic Development 58313 5472 9.38% 18068 30.98%
Local government & Housing 573814 106789 18.61% 225148 39.24%
Transport & Roads 281526 84553 30.03% 247027 87.75%
Public Works 3193 480 15.03% 2127 66.61%
Agriculture, Conservation, 173684 38509 22.17% 102402 58.96%
Environment & Tourism          
Sport, Arts & Culture 61682 18370 29.78% 40513 65.68%
Contingency Reserve          
Total 528267 1210778 22.92% 3742785 70.85%
  9        
Education 204714 83776 40.92% 135640 66.26%
Health 266346 40414 15.17% 111878 42.00%
Social Development 22554 1778 7.88% 4366 19.36%
Office of the Premier 2840 86 3.03% 343 12.08%
Provincial Legislature 17176 4345 25.30% 13349 77.72%
Safety & Liaison 113 24 21.24%  40 0.00%
Local government & Housing 22300 2071 9.29% 7024 31.50%
Transport & Roads 242093 54323 22.44% 103568 42.78%
Public Works 33955 6279 18.49% 10569 31.13%
Agriculture, Conservation, 11453 860 7.51% 3370 29.42%
Environment & Tourism          
Sport, Arts & Culture 5363 215 4.01% 6727 125.43%
Contingency Reserve 17527   0.00%   0.00%
Total 860538 196649 22.85% 401136 46.61%
Health 731547 187060 25.57% 555097 75.88%
Social Services & Population 174057 39688 22.80% 116471 66.92%
Development          
Office of the Premier 60530 11835 19.55% 44810 74.03%
Legislature 42996 9854 22.92% 28852 67.10%
Provincial Safety & Liaison 11593 2643 22.80% 7568 65.28%
Transport, Roads & Public Works 177337 36782 20.74% 108717 61.31%
Economic Affairs & Tourism 30140 5575 18.50% 15097 50.09%
Sport, Arts & Culture 37267 9159 24.58% 29968 80.41%
Finance 67102 12330 18.38% 34435 51.32%
Housing & Local Government 78843 15153 19.22% 47049 59.67%
Agriculture, Land Reform, 125840 25279 20.09% 70744 56.22%
Environment & Conservation          
Total 281176 720824 25.64% 2038157 72.49%
  7        
Health 18000 3017 16.76% 10265 57.03%
Social Services & Population 113001 255032 22.57% 814022 72.04%
Development 1        
Office of the Premier 6598 24 0.36% 67 1.02%
Legislature 3030 25 0.83% 2954 97.49%
Provincial Safety & Liaison   6   18  
Transport, Roads & Public Works 88606 15242 17.20% 39652 44.75%
Economic Affairs & Tourism 17479 4071 23.29% 7503 42.93%
Sport, Arts & Culture 6047 781 12.92% 2786 46.07%
Finance 95 19 20.00% 62 65.26%
Housing & Local Government 170118 33491 19.69% 150524 88.48%
Agriculture, Land Reform, Environment 314 140 44.59% 320 101.91%
& Conservation          
Total 154894 332641 21.48% 1121610 72.41%
  0        
Health 125292 26048 20.79% 36659 29.26%
Social Services & Population 13807 1682 12.18% 4592 33.26%
Development          
Office of the Premier 653 747 114.40% 1157 177.18%
Legislature 200 206 103.00% -146 -73.00%
Provincial Safety & Liaison 550 24 4.36% 403 73.27%
Transport, Roads & Public 108032 45050 41.70% 86551 80.12%
Works          
Economic Affairs & Tourism 430 252 58.60% 270 62.79%
Sport, Arts & Culture 9700 13 0.13% 5961 61.45%
Finance 1091 16 1.47% 624 57.20%
Housing & Local Government 2531 592 23.39% 1018 40.22%
Agriculture, Land Reform, 3800 94 2.47% 1433 37.71%
Environment & Conservation          
Total 282061 78106 27.69% 149337 52.94%
Health 4314542 1126520 26.11% 3099669 71.84%
Social Services & Poverty 422694 99992 23.66% 269254 63.70%
Alleviation          
Provincial Administration 251969 60372 23.96% 169301 67.19%
Provincial Parliament 37038 9467 25.56% 26157 70.62%
Provincial Treasury 102744 22184 21.59% 66113 64.35%
Community Safety 127069 33680 26.51% 86436 68.02%
Housing 81135 14358 17.70% 39994 49.29%
Environmental Affairs & 63526 14306 22.52% 38154 60.06%
Development Planning          
Transport & Public Works 951556 210321 22.10% 587760 61.77%
Agriculture 142554 40783 28.61% 105760 74.19%
Local Government 53661 9461 17.63% 24502 45.66%
Economic Development & Tourism 49051 12580 25.65% 28411 57.92%
Cultural Affairs & Sport 122864 30678 24.97% 83213 67.73%
Total 117859 3067367 26.03% 832880 70.67%
  57     2  
Health 458641 111716 24.36% 328408 71.60%
Social Services & Poverty 388462 991717 25.53% 282990 72.85%
Alleviation 3     9  
Provincial Administration 4880 1936 39.67% 4006 82.09%
Provincial Parliament 8495 1507 17.74% 7657 90.14%
Provincial Treasury 320 22 6.88% 138 43.13%
Community Safety 31513 14351 45.54% 28802 91.40%
Housing 629821 159919 25.39% 330802 52.52%
Environmental Affairs & 72515 16989 23.43% 56134 77.41%
Development Planning          
Transport & Public Works 73828 13515 18.31% 30263 40.99%
Agriculture 40959 17279 42.19% 24656 60.20%
Local Government 29003 3191 11.00% 11341 39.10%
Economic Development & Tourism 77080 54121 70.21% 68347 88.67%
Cultural Affairs & Sport 31285 5302 16.95% 18391 58.79%
Total 57637 1546130 26.83% 4067584 70.57%
  54        
Health 10516 18571 17.66% 35110 33.39%
  0        
Social Services & Poverty 19187 7402 38.58% 11031 57.49%
Alleviation          
Provincial Administration 40392 1948 4.82% 3777 9.35%
Provincial Parliament 1328   0.00% 296 22.29%
Provincial Treasury 5916 1164 19.68% 1818 30.73%
Community Safety 3045 399 13.10% 984 32.32%
Housing 1925 320 16.62% 1133 58.86%
Environmental Affairs & 1376 19 1.38% 465 33.79%
Development Planning          
Transport & Public Works 85693 175316 20.46% 448659 52.36%
  2        
Agriculture 47131 2331 4.95% 5106 10.83%
Local Government 6358 407 6.40% 842 13.24%
Economic Development & Tourism 405 270 66.67% 465 114.81%
Cultural Affairs & Sport 2090 63 3.01% 1109 53.06%
Total          
Input into and early view on policy priorities, new spending          
policies and outstanding issues          
Activities          
2006/7 – 2008/9 drafting cycle          
1. The JBC will be briefed by National Treasury at earliest possible          
point on          
Budget process and Treasury Guidelines          
Cabinet’s guidelines regarding budget priorities          
Outstanding issues on spending departments’ budgets          
The JBC will receive further briefings on outcomes of executive          
processes as cycle unfolds          
2. The JBC will receive briefings by Finance and Fiscal Commission          
on its recommendations on the Division of Revenue Bill; and the          
outcome of FFC research in other areas          
3. The JBC will continue to work with the NT to maintain and develop          
observation status in key executive events          
4. The Portfolio and Select Committees will be briefed by spending          
departments on new spending policies submitted to Treasury in terms          
of the budget process guidelines.          
5. The Portfolio and Select Committees will channel comments /          
concerns to JBC for inclusion in pre-budget report to executive          
6. The JBC will provide a pre-budget report to executive in time for          
meeting of Ministers’ Committee on Budget in October. The JBC will          
design a process for this report, including whether it will be          
tabled in the main House, and whether a response will be requested          
from the executive and when.          
7. The JBC will meet on the MTBPS, consider whether its concerns          
have been addressed and report to Parliament. The JBC will decide          
closer to the time whether to conduct hearings.          
2007/8 – 2009/10 preparation cycle          
8. The JBC will review the effectiveness of its activities in the          
2006/7—2008/9 cycle early in 2006 and develop a programme for 2007/8          
to 2009/10 along similar lines.          
9. In addition the JBC will identify key issues for in depth          
research (Public Expenditure Review style) in the 2007/8 to 2009/10          
cycle in October 2005 in order to inform its engagement in this          
cycle          
10. The JBC will highlight areas of concern for drafting 2007/8 to          
2009/10 in its report after the first reading of 2006/7 Budget          

3.2 Conceptualising the JBCs role in the Legislative phase

Guiding decisions

  1. The legislative phase starts when the Budget is tabled and ends when the relevant Acts are passed. • Parliament has the strongest constitutional mandate in the legislative phase of the budget process. • The JBC will review allocations in line with government’s spending priorities and existing legislation. • The JBC will however not attempt in depth engagement with all spending. Given current capacity constraints, the JBC will rather focus on specific, substantive spending areas or departments. These areas will be identified in advance of the budget being tabled, on account of its oversight over actual expenditure and its interaction with Portfolio and Select Committees. The JBC will also use its interaction with the executive in the budget preparation phase to identify priority focus areas. These might be in line with the executive’s spending priorities. • In the legislative phase the JBC will utilize the budget documentation to o Relate past performance to spending plans o Ascertain whether concerns in drafting phase have received attention • The JBC will coordinate its investigation into specific spending areas with relevant portfolio and select committees • In engaging with the budget as tabled in the immediate future, the JBC would pay particular attention to o Funding of new spending policies o Changes over baseline o Capital projects funding and implementation o Intergovernmental issues (FFC report) o Financial management issues

Activities in the Legislative Phase |Objective | |Meaningful engagement with budget in approval phase, facilitation of | |public debate and budget transparency on budgeting issues | |Activities | |For Budget 2006/7 | |1. The JBC will develop a process and discuss it with stakeholders in | |Parliament at the end of 2005 to include Portfolio Committee and | |Select Committee input into its activities for Budget 2006/7. | |2. The JBC will hold hearings on selected issues after budget day. | |3. The JBC will compile a report for Parliament | |The Report will present findings and make recommendations on the | |effectiveness and efficiency of spending in specific areas as | |investigated over the course of the budget cycle. | |If relevant, the report will also make recommendations on new issues | |arising from the Committee’s deliberations | |If relevant, the report will make recommendations on budget | |allocations more broadly (with other words on the distribution of | |expenditure between spending areas) relating to the executive’s | |overall policy priorities and relating to existing legislation. | |The report will include recommendations not only on budget policy | |issues, but also on issues of financial management where relevant | |These recommendations will be aimed at | |Addressing progress on concerns highlighted in pre-budget report | |Highlighting areas of concern for upcoming budget (for which | |preparation in executive is just starting), with other words, engage | |with forward treatment in budget preparation of allocations in outer | |years | |Highlighting areas of concern for engagement with actual expenditure | |reports | |Highlighting areas of concern for Portfolio and Select Committee | |follow-up | |For Budget 2007/8 | |4. The JBC will review its set of post-budget activities in the course| |of 2006 for Budget 2007/8, taking into account the outcome of the | |Taskforce on Oversight and Accountability. |

The Diagramme below sets out role and activities up to point of budget approval.

Diagramme 1: JBC Role and Activities in Budget Preparation and Approval Phases

  [pic]

3.3 Principles for JBC activities during Budget Execution

Guiding Decisions

  1. The JBC has a mandate to monitor the actual revenue and expenditure reports published by the National Treasury. In fulfilling this task the JBC will • Link up its monitoring with its pre-budget work. With other words, it will track spending areas and issues it highlighted in the pre-budget and budget report. • Coordinate with Portfolio and Select Committees by o Alerting these committees to issues that should be tracked or that arise from the actual revenue and expenditure reports o Coordinating oversight on actual revenue and expenditure with oversight of Annual Reports and Strategic Plans • Target specific spending areas and departments on account of o Experience with quarterly reports (year-on-year) o Scopa and OAG o From government policy priorities (eg DTI re job creation)

  2. In order to practice effective oversight the monthly and quarterly reports on their own are not enough. They need to be complemented by additional information from departments (through sector committees) • the JBC would need monthly cash flow projections and the operational plans of spending departments. • It would also need additional information on the strategic plan linkages to budget and the quarterly reports. Given current capacity, it is clear that the JBC will not be able to engage in depth with all spending areas. It will therefore focus on specific spending areas to investigate beyond the numbers.

  3. The JBC will utilise monthly and quarterly cash flow reports to • Watch for implementation of new spending policies (request additional information from identified departments) • Underspending / savings • Pull through issues id-ed into implementation • Identify areas for closer focus • Personnel spending (vacancies and filled posts; particularly where personnel sizable portion of budget) Activities in the Execution Phase |Objective | |Effective parliamentary oversight over the implementation of the | |budget, service delivery in line with plans | |Activities (2005/6) | |1. The JBC will request aggregate monthly cash flow projections for | |all spending departments as soon as possible, plus updates during | |the year where relevant | |2. JBC will request more detailed cash flow projections and | |operational plans from specific spending departments, in | |coordination with the relevant Portfolio and Select Committees | |3. The JBC will request briefings from specific departments, in | |coordination with the relevant Portfolio and Select Committees, on | |Strategic Plan linkages to budget and operational plans and to the | |cashflow projections. | |4. The JBC will request follow-up briefings, in coordination with | |the relevant Portfolio and Select Committees, on implementation in | |line with Strategic Plan and Budgets, and on the achievement of | |spending undertaken for specific spending departments. | |5. The JBC will commission research on budget implementation in | |specific spending areas and departments (in coordination with the | |relevant Portfolio and Select Committees), piloting in 2005 – if | |funds can be raised – and extending the programme in 2006. | |6. The JBC will compile quarterly reports for Parliament that | |relates the actual revenue and spending reports to budget | |implementation and service delivery. The reports will comment on | |progress with budget implementation overall. The reports will draw | |on investigations into specific spending areas by commenting on | |The timeliness of activities of the spending department | |The efficiency of spending and the speediness and quality of service| |delivery (JBC not only to investigate whether spending is taking | |place, but to which effect) | |7. At end of fiscal year the JBC will compile a briefing report to | |SCOPA highlighting areas of high concern on account of its | |engagement with budget implementation. |

The JBC expects to make slow progress in moving from commenting on spending to coordinate work on and commenting on the timeliness, quality and efficiency of service delivery on back of the actual revenue and expenditure reports. However, it will endeavour to shift its practice in this direction from the 2005/6 spending year.

Committee structure and work method

The following principles were formulated for how the committee will work to fulfill the tasks set out above.

  1. There will be specialization within the committee. Specific members will be assigned to specific sub-committees charged with engaging with specific spending areas, Portfolio and Select Committees and spending departments.
  2. The Committee will deliberate further as to whether this specialization in the current cycle will be in line with the identified areas of investigation, or whether it will organize itself immediately in broad functional sub-committees, to which specific spending area issues will be assigned. The latter carries the benefit of being permanent for this Parliament, and of more in-depth engagement over time.
  3. The sub-committees will be the engines of the JBCs work. With other words, the committee will meet mainly as a full committee a. In September/October to agree and compile the pre-budget report b. At the time of the MTBPS c. After the Budget has been tabled d. On a quarterly basis (see point 6 below) However, the JBC Chair may call a full committee meeting at any point.
  4. Portfolio and Select committees will be invited to delegate a ‘budget specialist’ who will a. act as ‘floating’ members of the JBC, that is join the JBC and relevant JBC sub-committees b. be the liaison with the JBC c. facilitate joint sittings of the Portfolio and Select Committees and the JBC sub-committee to undertake the activities as set out above. The JBC will work through the Chairs of the relevant committees to agree and operationalise the system. Part of this process would be to agree what level of representation the ‘budget specialist’ will enjoy on the JBC: whether as observers or full members.
  5. The JBC will undertake in full committee and as sub-committees joint sittings – albeit in the budget preparation and approval or implementation phases – with Portfolio and Select Committees to a. Deliberate on areas highlighted and formulate report findings and recommendations b. Receive briefings from spending departments and National Treasury on specific spending areas and issues The JBC may at times formulate findings and recommendations not in a joint sitting, but with the participation of the ‘budget specialist’ only.
  6. On a quarterly basis the JBC will have extended meetings to a. Agree on forward work of sub-committees b. Report back on on-going work in sub-committees c. Agree on Quarterly report to Parliament.
  7. The JBC may create ad-hoc sub-committees to look at cross-cutting areas. Members of Portfolio and Select Committees may be invited onto these committees.
  8. When the cluster system is in place, the JBC will align its operations to make use of the system.
  9. The JBC will commission research into specific spending areas that it targets for engagement.
  10. The JBC may undertake oversight visits to spending departments or to service delivery sites as part of its oversight work.
  11. The JBC will draft a proposal before end 2005 to establish a Parliamentary Budget Office. To this end it will delegate a sub- committee.
  12. The JBC will formulate a strategy to increase financial resources of the committee in the meantime, to undertake research and further development work.

  13. Operationalising the Strategic Plan

This strategic plan is at a fairly high level. The JBC needs to undertake further development, as well as monitoring activities in support of strategic plan implementation. This section briefly discusses the further planning and budgeting; and monitoring and evaluation activities that are required.

5.1 Planning and budgeting

The JBC needs to programme steps in specific activity areas – for example getting agreement from parliamentary structures on coordination between the committee and other committees and developing a methodology for undertaking public expenditure reviews. It also needs to develop a guideline financial requirement for undertaking the identified activities, and prioritise its activities against its existing and potential financial resources. These activities will be undertaken in the 3rd quarter of 2005, resulting in an operational plan for 2005/6. A draft implementation plan is provided in Annex 1. This plan will be finalized in the 3rd quarter of 2005/6.

5.2 Monitoring and Evaluation

The JBC will monitor the effectiveness of its Strategy by holding a quarterly review meeting – in September 2005, November 2005, February 2006 and May 2006 – to monitor progress with strategy implementation, do a scan for changes in the national budget environment, identify obstacles to strategy implementation and formulate mitigation strategies. The JBC will adjust the strategy in year if required. The meeting in May 2006 will be more extensive, and will be utilized to roll over the Strategy Document for 2007/8 – 2009/10 budget cycle.

         Annex 1. Draft Operational Plan Outline and Budget



                          Operational Plan
    2005 2006 2007
         
2 Discuss interface of activities with NT; briefing by National Treasury      
3 Present programme of activities to NT and agree interaction for budget cycle for      
  2006 Budget      
7 First Briefing completed      
10 JBC clarify process for compiling and submitting pre-budget discussion paper to      
  MCoB      
16 JBC agrees focus areas, identifies required preparation work and agrees      
  programme for MTBPS      
20 JB      
  C      
  re      
  vi      
  ew      
  s      
  ac      
  ti      
  vi      
  ti      
  es      
  an      
  d      
  fi      
  na      
  li      
  se      
  pr      
  og      
  ra      
  mm      
  e      
  fo      
  r      
  pr      
  ep      
  ar      
  at      
  io      
  n      
  ph      
  as      
  e      
  of      
  Bu      
  dg      
  et      
  20      
  07      
         
23 Develop and agree process in Parliament for Budget 2006 legislative      
  phase      
24 JBC finalises process      
28 JBC holds hearings      
31 JBC reviews successes and failures of process for Budget 2006 and make      
  recommendations for Budget 2007      
33 JBC request spending department cash flow projections for remainder of      
  2005, and 2006      
  JBC reviews engagement with Budget 2005, adjust activities forward      
41 Finalise programme and budget      
42 JB      
  C      
  su      
  bm      
  it      
  s      
  st      
  ra      
  te      
  gi      
  c      
  pl      
  an      
  to      
  Pa      
  rl      
  ia      
  me      
  nt      
         
46 JBC finalises committee structure, interface with Portfolio and Select      
  Committees (Streamline with rows 11, 24)      
54 Quarterly meetings to      
  review strategic      
  effectiveness of      
  programme, structures      
  and activities      
  (streamline with rows      
  20,21, 30 and 43)      
Budget Oversight Interrogate All    
  Departmental Budgets      
  with a view to      
  monitoring the      
  allocation of funds      
  for issues relating to      
  youth      
Mainstreaming Strategy Ensure that To be assigned    
  mainstreaming strategy      
  is applied to all      
  Departments (focus on      
  Target Departments for      
  this financial year)      
National Youth Service Ensure that Youth have DPSA    
  access to bursaries in Department of    
  Science and Technology Finance    
  as per the national Department of    
  commitment of the Education    
  Minister of Finance      
         
HIV and AIDS and TB Ensure that grants for Social    
  child headed Development    
  households are Department of    
  distributed Health    
  effectively      
Support to Programmatic Ensure Youth are • Agriculture    
Work of Various trained in and Land Affairs    
Departments Agribusiness and as      
  emerging farmers      
         
Website To be assigned      
Youth Toll Free Line/ To be assigned      
Youth Information        
Guide/ Youth        
Information Services        
Economic Ensure employment of Public works    
Participation/Relations Youth through the DOL    
hips with Umsobomvu Extended Public Works DWAF    
Youth Fund Programme DEAT    
  DOL placement of Agriculture and    
  Learnership candidates Land Affairs    
  –% of jobs created      
  focused on youths      
         
  Ensure Youth      
  entrepreneurship with DTI    
  a focus on Youth DEAT    
  Co-ops (Agri and Trade (Provincial)    
  and Industry) DEAT(National)    
         
  Ensure that Youth are      
  absorbed in franchises      
  and that training is DTI    
  provided DEAT    
    (Provincial)    
    DEAT(National)    
Local Government To be assigned      
Capacity Building Ensure access for DPSA    
  Youth on Bursaries DOF    
  focusing on Science Department of    
  and Technology as per Education    
  the national      
  commitment from the      
  Minister of Finance      
         
    DPSA    
  Ensure access to DOL    
  Learnerships (5% of      
  each Departments      
  establishment)      
         

3.27 Children

As protection of the vulnerable includes children, the Committee identified the media and its impact on the young as a key area to be monitored.

Strategic Focus Area Action for Committee Target
    Departments
Budget Oversight Interrogate Sport
  Departmental Budgets Social
  with a view to Development
  monitoring the DOE
  allocation of funds DOL
  for issues relating to  
  children  
Mainstreaming Strategy Ensure that All
  mainstreaming strategy  
  is applied to target  
  departments  
Media Ensure that Media Communications
  Houses are screening ICASA
  programmes for BCCSA
  Violence, Language, DOE
  Nudity, Sex and  
  Prejudice  
Safety in Schools Ensure that issues of DOE, DOL, Safety
  safety and security in and Security,
  schools are dealt with SAPS, Sport,
  at a Presidency
  policy/implementation  
  level  
Recreational Services Ensure appropriate Sport, Arts and
  recreational services Culture, DOL,
  are developed for Safety and
  Children Security, SAPS,
    Local Government
    (SALGA),
    Presidency
Interface with civil To be assigned  
society    
Early Childhood Ensure that resources DOE, DOL, DOH,
Development (ECD) and policy development Social
  are assigned to ECD Development,
    Presidency
Policy Gaps Ensure that policy DOE, DOH, DOL,
  gaps are identified Sport, Arts and
  and policies are Culture,
  developed Presidency
Database Development Ensure that a database STATS SA, DOE,
  is developed and DOH, Safety and
  updated for tracking Security, SAPS,
  and monitoring issues Presidency
  affecting Children  
Legislation Ensure that all All
  legislation affecting  
  children is monitored  
  for compliance. Ensure  
  that public  
  participation  
  processes are complied  
  with respect to the  
  processing of  
  legislation  
Children’s Day Ensure that Programmes All
  are included in all  
  Department’s plans  
  with regard to  
  celebratory events  
  such as Children’s’  
  Day  
Follow up on Reports Ensure follow up with Refer to Report
  the relevant for target
  Departments on the departments
  implementation of  
  recommendations  
  contained in the  
  report of the Task  
  Group on the Sexual  
  Abuse of Children.  
                       3.28  Disabled Persons

The principle of “Nothing About Us, Without Us” is the principle that needs to be reflected in all aspects of Departments’ strategies and policies.

Strategic Focus Action for Committee Target Departments
Area    
Budget Oversight Interrogate Departmental All
  budgets with a view to  
  monitoring the allocation  
  of funds for issues  
  relating to disabled  
  persons  
Presidency Ensure unnecessary delays Committee to
  in policy implementation address directly
  are addressed  
Mainstreaming Ensure that mainstreaming All
Strategy strategy is applied to  
  target Departments  
Transport Ensure meaningful Transport
  accessibility to public Public Works
  transport and related DPSA
  facilities DOL
Health Ensure the following DOH
  Health Care priorities DOE
  are focused on:  
  Access to healthcare  
  Early childhood  
  development for children  
  with disabilities  
  Disability detection and  
  assessment  
  Rehabilitation  
Social Ensure drafting of a Social Development
Development definition and assessment  
  of disability  
  Ensure adequate provision  
  of social grants for  
  poverty alleviation  
Trade & Industry Ensure development of an DTI
  Economic Participation DOL
  Programme DOE
Labour Ensure Skills development DOE
  is implemented  
  Ensure Employment Equity,  
  Basic Conditions of  
  Employment, Code of Good  
  Practice are applied  
Education Ensure access to DOE
  (inclusive) education and Social Development
  school feeding  
Housing Ensure access to Housing
  construction  
  Ensure access to  
  accessible accommodation  
  and ownership  
Communication Ensure access to Communication
  broadcasting and DOL
  communication ICASA
  Ensure access to BCCSA
  information technology  
  Ensure skills development  
  and employment  
  opportunities in  
  broadcasting  
Public Service Ensure implementation of DPSA
  the Presidential review  
  with regard to Batho Pele  
  Ensure implementation of  
  Community Development  
  Workers  
Science & Ensure promotion and Science and
Technology development of Braille as Technology
  an augmentative tool for  
  readers who require it  
Arts & Culture Ensure development and Arts and Culture
  promotion of sign  
  language  
  Ensure economic  
  development and skills  
  development through the  
  Arts  
Public Works Ensure accessibility to DPSA
  Public Buildings and  
  services  
Provincial and Ensure access to service Local Government
Local Government delivery and (SALGA)
  implementation of  
  Indigent Policy  
 3.29  The following key issues were highlighted by all the groups:


• Unnecessary delays in the  development  of  programme  policy  in  the
  Office of the Presidency;
• An input has been made to the MTEF to assist with  the  needs  of  the
  OSDP. A suggestion was made that tax should be directed  to  the  OSDP
  and contribute to disabled persons in the economy;
• Inter-Departmental collaboration is weak;
• Line Department responses with regard to Youth, Children and  Disabled
  Persons are not forthcoming. In 2001, only 3 Departments responded  to
  Disability alignment;
• Staff who advocate for Youth, Children and Disabled Persons issues are
  normally at a low level in the organisation. This is  not  aligned  to
  the national priority provided by the placement of Youth, Children and
  Disabled Persons in the Presidency;
• The monitoring of Provincial Departments was raised as  a  problem  as
  there is currently no link with the Provinces;
• A lack of an overall communication strategy was highlighted by all
  three groups;
• The lack of a link between the work of the JMC QLS of Youth,  Children
  and Disabled Persons was raised with regard to how Committee  work  is
  taken to the Constituencies;
• The need was raised for identifying national priorities; and
• The National Plan of Action is being updated. The issue raised here
  related to the need for a Provincial Plan of Action to enable holistic
  oversight of issues relating to Youth, Children and Disabled Persons.

3.30 Operating Principles

It was suggested the following principles be adopted to ensure effective delivery on the mandate of the Committee:

  • Dedicated membership of the Committee
  • Scheduling of meetings to avoid clashes and provide adequate
    resources for the Committee to do its work; and
  • Scheduling to facilitate Committee sub-group effectiveness

3.31 Support

The Committee requires a much more comprehensive and focused support system to fulfil its mandate. Therefore, it must be very clear on its deliverables so that the appropriate support is provided to it. The existing support structure is able to provide this support to a limited degree. However, this is set to change as an investigation is currently being commissioned to propose a robust support structure for Committees in Parliament.

A proposal was forwarded for a Committee Support Coordinator to oversee Secretarial support, Research support and Administrative support.

In terms of systems and procedures, Members felt that current support provision is not adequate with regard to document management, the production process, prioritisation, research, meeting and hearing preparation, follow-through and staff management.

The proposals regarding more effective support for this Committee included:

  • A shared support structure in which legal, research and information
    services work as a technical support team.

Integral to the success of this support team, the Committee has to:

  • Have regular briefings with the team
  • Assist with the scrutiny of issues
  • Track issues with the team
  • Assist in developing tools for use by the team
  • Identify emerging issues for the benefit of the Team and the
    Committee

3.32 Method of Work

The Committee has to decide on a range of tools to use to manage its oversight function. Amongst these are:

  • Tools used in plenary (questions, motions, statements, debates);
  • Tools used as part of the oversight function (public hearings, site
    visits); and
  • Tools  used  in  ensuring  the  legislative  process  (tracking  of
    legislative process, briefings).

The Committee needs to redefine its operating structure and systems to enable it to fulfil its mandate with regard to its role of oversight and monitoring. According to a discussion document on the Mandates and Functioning of Joint Monitoring Committees, it was found that the Committee’s monitoring role is specifically related to “Government’s commitments”. Further, the Committee as a Forum of Parliament would be expected to focus its role on the national sphere of government (in accordance with the principles of co-operative and intergovernmental relations in the Constitution, Chapter 3) 4

What this means for the Committee is that it has to monitor and track national policy, programmes and budgets. The Committee’s mandate is specific and multi-sectoral covering all national Departments and Organs of State.

However, practical issues relating to the quality of life and status of Youth, Children and Disabled Persons are often experienced directly at community or provincial level. It has been suggested that the provincial legislatures establish similar committees to monitor compliance on a provincial level. This would allow for meaningful interaction with the Committee and would result in the Committee having a comprehensive “window” on national and provincial competences concerning Youth, Children and Disabled Persons.

Bills that are brought before Parliament may respond to particular policy directives affecting Youth, Children and Disabled Persons directly or indirectly. The Committee should therefore scan all Bills for impact on the Quality of Life and Status of Youth, Children and Disabled Persons. The Committee would have to engage with relevant Committees on any issues of concern in a Bill.

In monitoring progress it would also engage with specific Departments on the implementation of relevant provisions (affecting Youth, Children and Disabled Persons) when Bills are enacted.

The Committee can on its own initiative also scan departmental reports and other papers that are tabled.

As a basis for carrying out its role, the Committee should compile a register of international commitments entered into by government.

In exercising its functions, the Committee has agreed, together with the Office of the Presidency, in particular with the (ORC), (YC), and the (OSDP), to engage in a more constructive manner so that the Committee might fulfill its mandate more effectively.

3.33 Meetings and Scheduling of Meetings

One of the difficulties experienced by the Committee was the effective scheduling of meetings and the availability of Members for these meetings.

By virtue of being joint structures, the Committee has difficulty in scheduling meetings to accommodate the activities and programming of both Houses. A schedule was developed by the previous Chairperson of Committees in the NA, in which it was agreed to set aside Fridays for Joint Monitoring Committees. This was not successful as Committee members still experienced clashes with NCOP meetings scheduled for Fridays and Members were also unavailable due to other commitments.

The current situation requires creative planning and scheduling to deal with this problem. It was suggested that meetings be planned in advance and placed on the Order Paper and that Members prioritise Committee meetings.

In addition, the Committee should make use of an integrated electronic scheduling system to facilitate easy access and information sharing. The Committee could then schedule meetings at short notice to scan Bills, for instance, as it would have an overall view of all meetings scheduled.

3.34 Committee Views

The Committee resolved that it should strengthen its ties with all relevant departments by working closely with Director-Generals and all relevant Committees in Parliament, tracking all legislation that has a direct bearing on the Committee. This will be done by deploying one or two representatives in these meetings, ensuring that matters affecting children, youth and disabled persons are properly addressed and attended to prior the finalization of such legislation.

The Committee acknowledged that unemployment is global problem and advised that youth can do voluntary services e.g. in police or military service for them to learn. The Committee has to hold briefings, hearing of evidence and write letters where necessary and to solicit research capacity form the office of Dr Gabriel and in the office of legal advisors within Parliament. The Committee can also write letters to SALGA and to Provinces to establish on how issues are mainstreamed. The Committee acknowledged that the NCOP would have a more dynamic interaction with Provinces. Furthermore in future engagements, the Umsobomvu Youth Fund should appear before the Committee to brief it on its functions and progress and problems if there are any. It should have a similar working relationship with the other three sectors.

The Committee has to improve on communication, there is a need to take these matters beyond Parliament and the society needs to be informed in a manner that would make them really understand issues. The Committee needs to have a database e.g. on all the reports that come to it by liaising with the Minister Pahad’s office, source out information on Budget Vote1 e.g. establish the role of the Committee in the budget process. It is the view of the Committee that the creation of subcommittees would curtail absenteeism in meetings, which is caused mainly by the clashes of meetings among other reasons.

  1. RECOMMENDATIONS

The Committee made the following recommendations:

  • Subcommittees should be formulated and the Committee has  to  elect
    conveners and agree on the functional areas  of  those  committees,
    targeting  priority  areas  that  they  have   to   cover.    These
    subcommittees  have  to  find  creative  and  effective   ways   of
    researching areas of interest that are relevant to their  theme  by
    using the right tools e.g. strategic plans of relevant departments,
    budget speeches and by referring to the State of the Nation Address
    content.
  • The Committee can propose amendments through available channels  to
    the Rules Committee.
  • The parent Committee should meet once a month or  once  a  term  to
    deliberate and finalise the business of  the  subcommittees  or  to
    consider reports of the work of its subcommittees.
  • The subcommittees would meet at times convenient for all members of
    that particular subcommittee.  The  convener  will  work  with  the
    Chairperson, the Deputy Chairperson and the Committee Secretary  to
    ensure  the  smooth  running  of  the  process.   The  subcommittee
    meetings should be advertised in the order paper.
  • Both the Chairperson and the Deputy Chairperson should  be  present
    in all the subcommittees whenever they convene.
  • There should be a standard format of reporting (a Dynamic Reporting
    Mechanism)
  • The Committee should get reports of the Employment Equity  Act  and
    Skills  Development  Act  among  other  relevant   legislation   to
    establish the extent to which the Department of Labour  managed  to
    address matters affecting the development of  Children,  Youth  and
    Disabled Persons.
  • The Committee requires a Subject  Specialist  that  will  help  the
    Committee to fulfil its mandate
  • Reciprocal communication – inter-sectoral,  inter-departmental  and
    inter-governmental  collaboration  has  to  be  strengthened,   the
    Committee should invite relevant departments, relevant  sectors  to
    give an account of their respective budgets  on  disability,  youth
    and  children.   It  can  also  invite  or  write  letters  to  the
    communities or local government to check on the  level  of  support
    given for the projects and programmes aimed at the  improvement  of
    quality of life and status of children, youth and disabled persons.
  • It is critical for  the  Committee  to  call  Disability  Units  to
    account  on  their  budget  so  that  the  Committee  can  make   a
    determination on whether the money allocated to them is  enough  or
    not enough for these units to function optimally.
  • The Committee has to look at  the  programme  of  the  Medium  Term
    Expenditure Framework (MTEF), hold discussions with  the  MTEF,  be
    aware of the its time frames and work according to the cycle of the
    MTEF so that it can be better positioned to raise issues  affecting
    its work timeously.
  • The Committee would report to both Houses on the work  that  it  is
    doing
  1. CONCLUSION

The Committee could not formulate its programme for 2005 to 2006 due to the work that members had to cover within the two days of the strategic planning workshop. It was important for the Committee to first wait for the report that would emanate form the workshop in order to come up with a comprehensive programme. The Committee agreed to hold a follow up workshop for this purpose. The Committee took a resolution that it would report to both Houses on its work and follow up on its recommendations by checking the implementation thereof

  1. APPENDAGES

WORKFLOW, OPERATING MODEL, STRUCTURE AND INTEGRATED OVERSIGHT MODEL

The following diagrams present a workflow, an operating model, and a structure, and an integrated oversight model for the Committee.

JMC ON IMPROVEMENT OF LIFE AND STATUS OF CHILDREN, YOUTH, CHILDREN AND DISABLED PERSONS WORKFLOW

                                      Designed by Consultancy In Session

International Conventions inform the policy and strategy positions with regard to Youth, Children and Disabled Persons. The Presidency houses Offices representing Youth, Children and Disabled Persons. Oversight of the Executive is enabled through Departments, which are responsible for governance, management and implementation. Amongst others, the Committee monitors and tracks Legislation, Programmes and Budgets of Departments for compliance with the rights of Youth, Children and Disabled Persons.

JMC ON IMPROVEMENT OF LIFE AND STATUS OF CHILDREN, YOUTH, AND DISABLED PERSONS OPERATING MODEL

                                      Designed by Consultancy In Session

The strategic planning process for the Committee is based on the Constitutional mandate of the Committee. Its Vision and Mission are its strategic statements of intent.

The Operating Model, consisting of an appropriate organizational design structure, systems (Committee Programme and reporting systems) and Committee support, will ensure successful service delivery.

JMC ON IMPROVEMENT OF QUALITY OF LIFE AND STATUS OF CHILDREN, YOUTH AND DISABLED PERSONS STRUCTURE AND SUB GROUPS

                                      Designed by Consultancy In Session

The structure for the Committee is as follows:

  • A core committee consisting of 24 fulltime Members and 10
    alternates;
  • A convenor for each of the 3 sub-groups namely, Youth, Children and
    Disabled;
  • A Working group consisting of selected Members. The Chair or Deputy
    Chair rove within these groups;
  • Focal Points to streamline Committee delivery as mandated; and
  • Partnerships with relevant institutions to enhance strategic impact
        of the Committee.

JMC QUALITY OF LIFE AND STATUS OF YOUTH, CHILDREN AND DISABLED PERSONS INTEGRATED OVERSIGHT MODEL

There are various ways in which oversight takes place. Amongst these are:

  • Departmental Hearings;
  • Visits (National and International);
  • Committee initiatives; and
  • Referrals of reports from the House(s).

The information gathered during this process is evaluated, monitored and tracked by the Committee in partnership with the YC, ORC and OSDP, as well as other related role-players. The oversight function is active when challenges and gaps are identified and solutions are defined and channelled to the appropriate source.

The workshop resolved that:

  The  breakaway  sessions  were  useful  in  mapping  the   Committee’s
    direction with regard to children, youth and disabled persons,  but
    more work will be required to develop a comprehensive work plan for
    the Committee;


  The Committee will have a follow-up meeting (possibly in the form of a
    workshop) to develop its programme, based on information  assembled
    during this workshop; and


  The interaction between the Committee and  the  3  Programmes  in  the
    Presidency must be significantly enhanced.
  1. Report of the Ad Hoc Joint Committee on Amendment Regulations to Public Funding of Represented Political Parties Act, dated 12 August 2005:
  The Ad Hoc Joint Committee on Amendment Regulations to Public  Funding
  of  Represented  Political  Parties  Act,  having   considered   draft
  amendment  regulations  tabled  by  the  Minister  for   Justice   and
  Constitutional Development on 22 July 2005, referred to it, recommends
  to the President, in terms of section 10(1) of the Public  Funding  of
  Represented Political Parties Act, 1997 (Act No. 103  of  1997),  that
  the said regulations be amended to read as follows:


                              SCHEDULE


  Definitions


       1.  In this Schedule "the  Regulations"  means  the  regulations
  published under Government Notice No.  R 117 of 20 November 1998.


  Amendment of Regulation 5 of the Regulations

        2.   Regulation 5 of the Regulations is hereby amended—
  (a)   by the substitution  for  subregulation  (1)  of  the  following subregulation:
          "(1) Subject to subregulation (3), all allocations to which a
       political  party  is  entitled  as  determined   in   terms   of
       regulations 3 and 4, must be paid  to  the  political  party  in
       question in four equal instalments, each within three months  of
       the previous payment.  The first instalment must be paid  within
       four weeks of the beginning of the financial year in question.";
        and
  (b)   by the addition of the following subregulation:
         "(3) (a) The Commission must, within ten days after the date on
       which the Speaker of a  legislature  has  published  the  notice
       contemplated in item 5(3) of Schedule 6A to the Constitution, re-
       allocate in accordance with the provisions of regulations 3  and
       4, as the case may be, fifty (50) per cent of the  total  amount
       of funding determined  in  terms  of  regulation  2(1)  for  the
       financial year in question to the political parties that, at the
       expiry of the period referred to in item 5(3) of Schedule 6A  to
       the Constitution, qualify for the allocation of moneys from  the
       Fund in terms of section 5 of the Act.
         (b) All allocations to which a political party is  entitled  in
       terms of paragraph (a), must be paid to the political  party  in
       question in two equal instalments.  The first instalment must be
       paid within the first fifteen days of  October  and  the  second
       instalment must be paid within the first fifteen days of January
       of the financial year in question.".

  Amendment of Regulation 8 of the Regulations

       3.  Regulation 8 of the Regulations is  hereby  amended  by  the
  substitution for subregulation (2) of the following subregulation:
         "(2) The information required for the purposes of subregulation
       (1) must be furnished to the Commission—
       (a)   by the accounting officer referred to in section  6(1)  of
           the Act within three months after the end of  the  financial
           year in question;  or
       b) in the case of a  political  party  contemplated  in  section
          6A(3) of the Act, by the person who last held the  office  of
          accounting officer referred to in section 6(1) of the Act  of
          that party or, if he or she is not available, the  leader  of
          that party within two months after the date on which a  party
          is required to close its books  and  records  of  account  in
          terms of section 6A(4) of the Act.".



National Assembly
  1. Report of the Ad Hoc Committee on Appointment of Deputy Public Protector, dated 10 August 2005:

    The Ad Hoc Committee on Appointment of Deputy Public Protector, having been appointed by the House on 17 May 2005 to make a nomination to the House in order to enable it to recommend to the President in terms of section 2A(1) of the Public Protector Act (Act No 23 of 1994) a person for appointment as Deputy Public Protector, reports as follows:

    The Committee invited the public to submit nominations to it. Nominations were received in respect of 10 candidates, 9 males and 1 female.

    The Committee met on 2 August 2005 to consider the nominations. On 10 August 2005, however, the Committee felt that there was not sufficient gender representation, and therefore resolved to readvertise for further nominations.

    The Committee therefore requests the House to extend the deadline of 18 August 2005 by which it was required to report, to 20 October 2005.

Report to be considered.
  1. Report of the Portfolio Committee on Justice and Constitutional Development on the Constitutional Matters Amendment Bill [B 22 - 2005] (National Assembly - sec 75), dated 19 August 2005:
The Portfolio Committee  on  Justice  and  Constitutional  Development,
having considered the subject of the Constitutional  Matters  Amendment
Bill [B 22 - 2005] (National Assembly - sec 75),  referred  to  it  and
classified by the  Joint  Tagging  Mechanism  as  a  section  75  Bill,
endorses the classification of the  Bill  and  reports  the  Bill  with
amendments [B 22A - 2005].
The Committee wishes to report further, as follows:


  1.    During its deliberations on the Bill, the Committee  noted  that
       the Public Funding of Represented Political  Parties  Act,  1997
       (Act 103 of 1997) (the Funding Act), already  provides  for  two
       scenarios where a political party has to repay to the  Electoral
       Commission the unspent balances of all  moneys  that  have  been
       allocated to it in terms  of  section  5  of  the  Funding  Act,
       namely—
       (a)    where  a  political  party  ceases  to  qualify  for  the
             allocation  of  moneys  from  the   Represented   Political
             Parties’ Fund (the Fund) (existing section 5(4));  and
       (b)    if  Parliament  and  every  provincial  legislature   are
             dissolved in terms of the Constitution or if Parliament  or
             any provincial legislature is so  dissolved  in  any  other
             circumstances (existing section 9(3) and (4)).

  2.    The provisions of the new section 6A that are to be inserted  in
       the Funding Act create a third scenario where a political  party
       has to repay to the Electoral Commission the unspent balances of
       all moneys that have been allocated to it in terms of section  5
       of the Funding Act, namely where  a  political  party,  after  a
       window  for  "floor  crossing",  ceases  to  qualify   for   the
       allocation of moneys from the Fund in terms of section 5 of  the
       Funding Act.  The Committee, during  its  deliberations  on  the
       Bill, deemed it appropriate to regulate the repayment of unspent
       balances of moneys in terms of the new section 6A in more detail
       than the repayment of unspent balances of  moneys  is  presently
       regulated in the existing sections 5(4) and 9(3) and (4) of  the
       Funding Act.


  3.    The new section  6A(8)  empowers  the  Electoral  Commission  to
       appoint  a  public  accountant  and   auditor   registered   and
       practising as such in  terms  of  the  Public  Accountants'  and
       Auditors' Act, 1991 (Act No. 80 of 1991),  to,  amongst  others,
       audit the books and records of account kept in terms of  section
       6 of the Funding Act by a political party that—
       (a)   ceases to qualify for the allocation of  moneys  from  the
             Fund in terms of section 5  of  the  Funding  Act  after  a
             window for "floor crossing";  and
       (b)   consequently, has to repay to the Electoral Commission the
             unspent balances of the moneys allocated to it.
       The question has been raised whether this power  should  not  be
       extended to instances─
       (i)   where the accounting officer of a political  party,  after
             the end of a financial year, fails to have  the  books  and
             records of  account  of  the  party  audited  by  a  public
             accountant and auditor  and,  subsequently,  to  submit  an
             auditor’s report and audited  statement  to  the  Electoral
             Commission as required by section 6 of the Funding Act;  or
       (ii)  where the Electoral Commission  is  dissatisfied  with  an
             auditor’s report and audited statement so submitted.


  4.    The Committee also deemed it desirable to insert a  new  section
       9A in the Funding Act providing for certain offences that  could
       be committed by the accounting officer or leader of a  political
       party that has to repay, in terms of the  new  section  6A,  the
       unspent balances of all moneys that have been allocated to it in
       terms of section 5 of the Funding Act.   Those  offences  could,
       however, not be made applicable to the  accounting  officers  of
       political parties that have to repay their unspent  balances  of
       moneys in terms of sections 5(4) and 9(3)(b) and  (4)(b)(ii)  of
       the Funding Act, as no provision is made in those sections as to
       who will be responsible for repaying the unspent balances to the
       Commission.


  5.    Due to the urgency of having the Bill passed by  Parliament  and
       implemented before the next window  for  "floor  crossing"  that
       starts on 1 September 2005, the Committee was not in a  position
       to—
       (a)   investigate the desirability of—
             (i)   bringing the provisions of the existing sections 5(4)
                   and 9(3) and (4) of the Funding Act  into  line  with
                   the new section 6A and to consider the  consequences,
                   if any, of such alignment;
             (ii)  empowering the  Electoral  Commission  to  appoint  a
                   public accountant and auditor in instances where  the
                   accounting officer of a political  party,  after  the
                   end of a financial year, fails to have the books  and
                   records of account of the party audited by  a  public
                   accountant and auditor as required by  section  6  of
                   the Funding Act or where the Electoral Commission  is
                   dissatisfied with an  auditor’s  report  and  audited
                   statement  so  submitted  to  it  in  terms  of  that
                   section;
             (iii) making the offences created in  the  new  section  9A
                   applicable to the accounting  officers  of  political
                   parties that have to repay their unspent balances  of
                   moneys in terms of  sections  5(4)  and  9(3)(b)  and
                   (4)(b)(ii) of the Funding Act;  and
             (iv)  contemplating  appropriate  sanctions  for  political
                   parties which or  accounting  officers  of  political
                   parties who contravene or fail  to  comply  with  the
                   provisions of section 6 of the Funding Act;  and
       (b)   obtain the formal views of the Electoral Commission on the
             above matters.


  6.    In the light of the above, the  Committee  recommends  that  the
       Minister for Justice and Constitutional Development be requested
       to direct her Department to investigate the matters referred  to
       in  paragraph  5  above  with  a  view  of  submitting  amending
       legislation,  if  necessary,  to  Parliament  at  the   earliest
       opportunity.

Report to be considered.

                       TUESDAY, 23 AUGUST 2005

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

  1. Classification of Bill by Joint Tagging Mechanism:
The Joint Tagging Mechanism (JTM) on 22 August 2005 in terms of Joint
Rule 160(4), classified the Repeal of Black Administration Act and
Amendment of Certain Laws Bill [B 25 – 2005], introduced in the
National Assembly, as a section 76 Bill and as a Bill falling within
the ambit of section 18(1)(a) of the Traditional Leadership and
Governance Framework Act, 2003 (Act No. 41 of 2003).

National Assembly

The Speaker

  1. Membership of Assembly

    (a) The following member vacated his seat in the National Assembly with effect from 16 August 2005:

      Henderson, R K.
    

    (b) The vacancy which occurred owing to the resignation of his seat in the National Assembly by Mr R K Henderson with effect from 16 August 2005 had been filled with effect from 17 August 2005 by the nomination of Ms S J Loe.

TABLINGS

National Assembly and National Council of Provinces

  1. The Minister of Finance

    a) Report and Financial Statements of the South African Reserve Bank for 2004-2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005.

    b) Report and Financial Statements of the Development Bank of Southern Africa for 2004-2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005.

    c) Activities Report of the Development Bank of Southern Africa for 2004-2005.

    d) Development Bank of Southern Africa – Footprints of Development 2001-2005.

    e) Report and Financial Statements of the Financial Services Board for 2004-2005, including the Report of the Auditor-General on the Financial Statements for 2004-2005 [RP 51-2005].

    f) Government Notice No 1114 published in Government Gazette No 27773 dated 15 July 2005: Amendment of the list of public entities as contained in schedule 2 and 3 of the Public Finance Management Act, 1999.

  2. The Minister of Communications

    a) Report and Financial Statements of the South African Broadcasting Corporation (SABC) for 2004-2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005.

  3. The Minister for Justice and Constitutional Development

    a) Report on the provisional suspension from office with remuneration: Mr K Sulliman, an additional magistrate at the Durban Magistrate Court.

    b) Report on the provisional suspension from office with remuneration: Mr M S E Khumalo, magistrate and Head of office at the Amsterdam Magistrate Court. c) Report on the provisional suspension from office with remuneration: Mr M F Mathe, an additional magistrate at the Pine Town Magistrate Court.

COMMITTEE REPORTS

National Assembly:

  1. Report of the Portfolio Committee on Transport on the Budget Hearings, dated 22 June 2005:

  2. Introduction

1.1 The Portfolio Committee on Transport conducted a series of budget hearings in Parliament between the 9th March and 18th May 2005. The hearings covered the Department of Transport, as well as all of the public entities that fall under the national transport budget: the South African Rail Commuter Corporation, the South African National Roads Agency Limited, the Road Accident Fund, the Cross-Border Road Transport Agency, the South African Maritime Safety Authority, the South African Civil Aviation Authority, the Road Traffic Management Corporation, the Railway Safety Regulator, the Air Traffic and Navigation Services Company, and the Airports Company of South Africa. The Urban Transport Fund will now be incorporated into the Department’s budget and will no longer be a separate reporting entity. 1.2 In the hearings, the Committee focused on assessing whether the transport budget made adequate provision for the strategic plans of the Department and of the public entities. The hearings were also used as an opportunity to discuss the appropriateness of the major objectives of these various strategic plans.

1.3 In regard to this general approach, the Committee notes that, while the Department complied with the requirement that departmental strategic plans be tabled seven days before the relevant budget vote in the National Assembly, one week is entirely inadequate for an effective public hearings process. The Department did, indeed, provide the committee with an advance draft version of the strategic plan, and we commend them for this. Our concern is not with the Department, but with the need to improve the general approach of Parliament to the budget hearings and votes.

1.4 In the course of our hearings many matters of detail emerged, some indicating important progress, others indicating areas that require attention. The Committee will follow up on all of these matters in detail. In this report we highlight some of the major features of the Transport Budget, and we note some significant areas of concern.

  1. The National Department of Transport 2.1 The department’s budget for 2005/6 is aligned to and generally supports an important organisational restructuring underway within the department. In the previous year, the Portfolio Committee expressed some concern about the department’s organisational design. It was not always clear why some functions belonged to one programme rather than another. The Committee believes that the strategic objectives of the department and the alignment of departmental programmes are now significantly improved. In particular, the organisational changes, and the budget allocations to support these changes, provide greater focus to the critical area of transport regulation. Key areas of transport, which have tended to be somewhat neglected, the rail, aviation and maritime sectors, now also receive better attention in the new organisational design.

2.2 This year’s transport budget also more adequately reflects government’s overall strategic objective of leading a major and expanded infrastructural programme to lower the costs of doing business in South Africa, to address our developmental challenges, and to provide jobs. Additional allocations for passenger rail infrastructure, for instance, have been made – R500 million for the 2005 budget, with a further R100 million and R250 million envisaged for the following budgets. In partnership with provinces, the Department has been active in revitalising a number of strategic branch lines that are critical to the economic and social sustainability and development of rural areas and towns. Work is nearing completion on the Kei Rail line in the Eastern Cape, and preliminary work has started on improving the Nkwaleni line in KZN and the Belmont-Douglas line in the Northern Cape.

2.3 The Committee is also tracking the infrastructural spending on road construction, upgrading and maintenance. R1, 5bn (up from R1, 1bn in 2001/2) is earmarked in this budget for this purpose, and is almost entirely transferred through to the South African National Roads Agency Ltd. The Committee believes that closer monitoring and coordination is required of other road infrastructure funding, including funding allocated to expanded public works programmes, poverty relief and job creation.

2.4 The area of road traffic enforcement remains a major concern. This year’s budget sees a significantly increased allocation to the Road Traffic Management Corporation (R10, 7 million), but the RTMC has failed to function thus far. The Committee notes that the founding legislation was passed in 2000, and there has been a chief executive officer at the corporation for some two years already. Progress is now a matter of urgency and will need to be monitored closely in the coming period. The important Administrative Adjudication of Road Traffic Offences legislation has also still to be implemented by the Department. 2.5 Another area of significant challenge lies in meeting the Department’s objective of providing safe, affordable and efficient public transport. The Committee played an active role in helping to re- define the taxi recapitalisation programme, scaling it down from its original well intentioned but unworkable approach. We welcome the new scaled-down policy, and we welcome the Department’s assurance that it will continuously engage the SA National Taxi Council and all other relevant stakeholders as the process unfolds.

2.6 We also welcome the important budgetary increases provided for bus and rail subsidies – they are expected to grow (along with rail infrastructure spending) by 7,6 percent per year between 2004/5 and 2007/8. However, we note that the institutional channels through which public transport subsidies are administered still tend to militate against achieving modally integrated public transport services. The rail subsidy is administered by a national agency, the South African Rail Commuter Corporation. Bus subsidies are transferred from the National Department to provinces. Minibuses, the major mode of public transport in our country, are not operationally subsidised, although the nationally administered recapitalisation programme will be a major capital subsidy.

  However, these different subsidy streams tend in practice to
  discourage rather than foster inter-modal integration of all forms of
  public transport at the local level. There is also an institutional
  disjuncture between urban spatial planning related to IDPs (a local
  government competence) and public transport subsidies that tend to be
  driven nationally or provincially. The Committee believes that in the
  coming years we must move towards a much more integrated approach to
  the subsidisation, planning and regulation of public transport.

2.7 In the previous Parliament, the Transport Portfolio Committee initiated the proposal that the South African Police Services should establish a dedicated transport unit. Although this falls under the Safety and Security budget, we are pleased to note that the SAPS has indeed trained and launched a pilot railway police unit for the Metro rail system in the Western Cape. We warmly welcome this development, and trust that it will be replicated elsewhere in the country. Working together with our counterparts in the Safety and Security Portfolio Committee, we will continue to monitor progress in this respect.

2.8 The Committee is satisfied that the Department and other relevant public entities in the transport field are beginning to gear-up for the 2010 World Soccer Cup Finals in South Africa. The event will present many public transport challenges. These challenges are, however, also an opportunity to undertake public transport initiatives that need to be addressed in any case. While we are satisfied that the relevant preparations are being undertaken, finalisation and much of the rolling-out of transport infrastructure will only be possible when firm decisions are taken in regard to venues. The Committee will continue to track developments on this front.

  1. Transport-related public entities

3.1 In its budget hearings the Committee also engaged with all the public entities reporting to the Minister of Transport (as listed in 1.1 above). Many of these entities are functioning effectively in their respective areas – in particular, we note the work of the Air Traffic Navigation Services Agency, the South African National Roads Agency Limited and the Airports Company of South Africa. The Committee also noted an important improvement in the reporting to Parliament of the Cross-Border Road Transport Agency. However, some of the other public entities are facing complicated challenges and/or are failing to perform adequately.

3.2 The Committee has been monitoring the Public Finance Management Act compliance of the public entities falling under our budget. In this regard, the Department reported to the Committee that several public entities failed to meet the 30th September 2004 deadline for the submission of their audited reports. These entities were the SARCC, RAF, SAMSA, SACAA, CBRTA, RTMC and RSR. In the case of the CBRTA, this was the third time running that it has missed the annual deadline. The Committee also notes that the Auditor General gave qualified reports to the RAF, SARCC and SAMSA, and disclaimers to his reports on SANRAL and CBRTA.

3.3 The Road Accident Fund continues to be a major concern. There has been a significant increase in revenue for the fund from the fuel levy. Revenue grew from R2, 6 billion in 2001/2 to R4, 5 billion in 2004/5. Despite this growth, the Fund’s expenditure has consistently outstripped revenue since 2001/2, exhausting its reserves. Total claims paid rose from R3.1bn in 2003 to R3, 99bn in 2004. There is a significant backlog of claims and the discounted actuarial liability of the Fund is of great concern. It is clear that the present situation is not sustainable. The underlying reasons for this situation are several and include poor management, significant levels of apparent corruption, and excessive payments to legal and medical professionals to the detriment of actual road accident claimants – itself the consequence of the often excessively litigious, fault-based system the RAF is mandated to operate. While important progress has been made in revamping management structures and in rooting out corruption, many of the problems of the Fund are of a more systemic kind. Government has accepted, in principle, the recommendations of the Road Accident Fund Commission, although affordability concerns remain. It is the view of the Committee that decisive and far-reaching decisions will have to be made about the Fund in the coming years. Piece-meal reforms, including the present RAF Amendment Bill with which the Committee is busy, may be helpful but will not get to the root of the challenges.

3.4 The Department is overseeing a process of integration of the South African Rail Commuter Corporation and Metro rail. The Committee supports this process, while appreciating that institutional integration is often a complex process. One such complexity is that the SARCC’s assets have been incorrectly valued. Generally Accepted Accounting Practice (GAAP) depreciates rail rolling stock over a 33- year period. When the SARCC was devolved out of the old SA Transport Services in 1990, for some reason the used rolling stock assets it then acquired were treated as if they, too, were new and the 33-year depreciation count started all over again. The assets of the SARCC have, therefore, been significantly over-valued, and it is for this reason that its recent audited reports have been qualified. A second major challenge facing the integration of SARCC and Metro rail lies in the funding flow.

  The SARCC has been operating as a public utility with a public service
  mandate, transferring the rail subsidy from the national budget
  through to the operator, Metro rail. However, Metro rail functions as
  a public enterprise and its estimated R950 million annual fare income
  is not passed back to SARCC, but on to its current parent company,
  Transnet. Achieving an effective integration of two public entities
  with somewhat different institutional mandates and cultures will need
  to be accomplished with the strategic priority being placed on
  expanded, safe and affordable rail transport as part of a wider public
  transport system.

3.5 The Railway Safety Regulator is a new public entity established in terms of legislation passed in 2002. The total transfers to the RSR from the Department of Transport are expected to increase by 14,1% per year over the MTEF period, from R15 million in 2004/5 to R22, 3 million in 2007/8. The Committee appreciates that the RSR is still in a formative stage, but we are concerned that the present Board does not appear to have any significant railway experience, nor are there any relevant trade union representatives. In our budgetary hearings we were also concerned that the RSR representatives did not appear to have a clear strategic plan. Progress at the RSR will need to be closely monitored over the coming period.

Report to be considered.


[1] See par 3.1 on page 96 of annual report. [2] See notes 11.5 and 11.4 on pages 124 and 123. Treasury Regulation 3.2.1. . 12 See Appendix 8. [3] In the first year (2004) the Pan-African Parliament operated without a budget and therefore relied on voluntarism by National Governments. The Parliament was established in terms of Article 5 of the Constitutive Act of the Union as the representative body of the African people to enable full participation in the development of their continent, promotion of peace and human rights and development of culture of democracy in Africa.

[4] , The PAP work plan is attached as Annexure 1.

[5] The PAP budget is attached as Annexure 2.