National Assembly - 26 October 2010
TUESDAY, 26 OCTOBER 2010 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:05.
The Deputy 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.
NEW MEMBERS
(Announcement)
The Deputy Speaker announced that the vacancies which occurred owing to the resignations of Dr T S Farisani and Adv Z L Madasa had been filled by the nomination of Hosi T L P Nwamitwa-Shilubana and Ms A Z Ndlazi with effect from 8 October and 18 October 2010 respectively.
The members had made and subscribed the oath in the Deputy Speaker’s office on 21 October 2010.
NOTICES OF MOTION
Mr S N SWART: Deputy Speaker, I hereby give notice that I shall move, on behalf of the ACDP, on the next sitting day of the House:
That the House debates the significance of South Africa receiving a seat on the United Nations Security Council, albeit not a permanent seat, particularly in view of South Africa’s previous controversial stances when it served on the council, including the country’s much-derided defence of the military junta in Burma and even of Sudanese President Omar al-Bashir, when one would have expected the country to have spoken forcefully and unambiguously on the human rights abuses in these countries.
Mr L S NGONYAMA: Madam Speaker, I give notice that at the next sitting of the House I shall move on behalf of Cope:
That the House debates the urgent need to stop the Companies and Intellectual Property Registration Office, Cipro, from becoming a serious disincentive to entrepreneurs wanting to own and operate a business company in South Africa on account of the ease with which hackers can steal a registered company.
Mr M S F DE FREITAS: Deputy Speaker, I hereby give notice that I shall move on behalf of the DA:
That the House debates the reasons why alleged guilty persons implicated in a Deloitte & Touche forensic report, involving fraud committed at the respective Tshwane and Durban offices of Metrorail, have not yet been investigated and brought to book.
Dr W G JAMES: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That this House debates the minimum standards of infrastructure, of teacher quality and of intellectual content we should aim for for our children to acquire at public and private schools.
Mrs L S CHIKUNGA: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House debates the achievements and challenges in the areas of forensic detective and prosecution services that improve or hamper the efforts to reduce the overall levels of crime.
Mr J J SKOSANA: Hon Deputy speaker, I hereby give notice that on the next sitting day of this House I shall move:
That the House debates mechanisms to increase water conservation in communities.
Mr S E KHOLWANE: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move:
That the House debates the development and adoption of policies that take into account the strategic role of information and communication technology in our economic growth, economic infrastructure, investments, government administration, poverty alleviation programmes and service delivery.
Mr I M OLLIS: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That this House debates possible amendments to labour legislation to prevent violence and destruction of property during strike action and to come up with solutions on how to hold unions accountable for the actions of their members, and means by which members of the public who incurred damages during strikes can seek compensation from unions.
I hope the hon Nzimande is listening.
Ms S P LEBENYA-NTANZI: Madam Deputy Speaker, I hereby give notice that I shall move on the next sitting day of the House:
That this House debates the failure of the National Youth Development Agency to meet its core mandate of looking after the interests of all South Africa’s youth and whether this organisation should be restructured or disbanded.
Dr P J RABIE: Madam Deputy Speaker, I hereby give notice that I shall move on the next sitting day of the House on behalf of the DA:
That the House debates the effectiveness of South Africa’s current economic policy in reducing the high unemployment rate and in reducing the number of citizens who rely on grants from the state, and to come up with policy solutions to improve the performance of the economy.
Mr S C MOTAU: Madam Deputy Speaker, I hereby give notice that I shall move on the next sitting day of the House on behalf of the DA:
That this House debates the nearly R40 million in fruitless and wasteful expenditure incurred by PetroSA and the Central Energy Fund during the past financial year as outlined in the Auditor-General reports, and to come up with means to hold office bearers of these organisations accountable and measures to improve financial governance in these institutions.
Prof C T MSIMANG: Hon Madam Deputy Speaker, I hereby give notice that I shall move on the next sitting day of the House on behalf of the IFP:
That the House debates the rapid deterioration of South Africa’s water quality and safety and the influence this has on food security.
ALBERTINA SISULU’S 92ND BIRTHDAY
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, I move without notice:
That the House -
1) notes that 21 October 2010 marked the 92nd birthday of Albertina
Sisulu, affectionately known as maSisulu, a woman who has dedicated
her life to champion the rights of the people of South Africa,
especially women and children;
2) acknowledges the many contributions she made, as an activist par
excellence and nurse, a wife and a mother to the nation;
3) further acknowledges the contributions she made when elected to
become a Member of Parliament in 1994;
4) recognises that she joined the ANC Women's League in the late 40s
and became active in the Federation of South African Women, which
lobbied for equality, was also part of the organising team for the
historic anti-pass protest of 1956 and became the first woman to be
arrested under the General Laws Amendment Act of 1963 and faced
detention for 90 days without charge;
5) further recognises her active participation in the preparations for
the launch of the United Democratic Front and her continued
participation in the UDF, even after being arrested;
6) wishes maSisulu a happy 92nd birthday; and
7) thanks her for all the sacrifices she made for this country and its
people, both black and white.
Agreed to.
19TH COMMONWEALTH GAMES IN DELHI, INDIA
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Madam Deputy Speaker, I move without notice:
That the House -
1) notes that the 19th Commonwealth Games took place from 3 to 14
October 2010 in Delhi, India;
2) further notes that, despite initial challenges, India rose to the
occasion to produce a safe and successful event;
3) acknowledges the efforts by the Indian government, the Commonwealth
Games Federation, the Organising Committee, participating nations
and all others involved, that contributed to the spectacular event;
4) further acknowledges the success of the South African team in
finishing 5th overall on the medal standings, which included 12
gold, 11 silver and 10 bronze medals;
5) congratulates all competitors who took part in the Games; and
6) applauds the spirit of human dignity, perseverance and overall good
sportsmanship that characterised the 2010 Commonwealth Games.
Agreed to.
RESCUE OF THE 33 CHILEAN MINERS TRAPPED UNDERGROUND FOR 69 DAYS
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, I move without notice:
That the House -
1) notes the heroic rescue of the 33 Chilean miners after enduring 69
days of ordeal in a hot, humid shelter some 700 meters underground;
2) further notes the significant role played by the South Africa-based
company, Murray and Roberts, in providing the rescue team with its
drilling machine to drill a pilot hole to reach the trapped miners;
3) recognises that South Africa and the mining sector in particular
can learn from this extraordinary feat; and
4) commends the Chilean authorities and all those who took part in the
rescue efforts. Agreed to.
COMMEMORATING THE ESTABLISHMENT OF THE UNITED NATIONS
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, I move without notice:
That the House -
1) notes that 24 October marks the day when the United Nations was
formally established after a majority of its founding members
ratified a treaty setting up the world body 65 years ago;
2) further notes that in 1971 the United Nations General Assembly
adopted a resolution recommending that the day be observed as a
public holiday by member states; and
(3) recognises that this day is traditionally commemorated worldwide by meetings, discussions and exhibits on the goals and achievements of the United Nations.
Agreed to.
RATIFICATION OF DECISION BY ACTING SPEAKER TO APPOINT AD HOC COMMITTEE ON COMMISSION FOR GENDER EQUALITY FORENSIC INVESTIGATION
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:
That the House in terms of Rule 214(2) ratifies the decision by the Acting Speaker, published in the Announcements, Tablings and Committee Reports on 19 October 2010, p 2923, to appoint an Ad Hoc Committee on the Commission for Gender Equality Forensic Investigation.
Agreed to.
ANC WISHES MATRICULANTS SUCCESS IN THEIR EXAMS
(Member’s Statement)
Mrs M T KUBAYI (ANC): Deputy Speaker, the ANC would like to wish all matriculants writing their exams, which commenced yesterday, all the success. We further support the Silence Campaign that calls for all members of the community to reduce noise levels in support of the class of 2010. This is to create an environment that is more conducive for them to focus on their exams. We further call for less partying, for taxis to reduce noise levels and for residences to reduce noise levels, and we request taverns and shebeens to also support this campaign by ensuring that they close their taverns and shebeens early, and reduce their noise levels within communities, especially in our rural areas and townships.
We understand and believe that all this will not only be to the benefit of the matric class of 2010, but also to all learners and students writing their exams at this time.
Finally, we encourage all learners and students who may feel depressed and who are not coping to utilise the services, provided by our government and NGOs in the country, of call centres for counselling purposes. We are looking forward to improved matric results, and we say “Good luck” to all the learners and all the students who are writing their exams. Thank you. [Applause.]
SUDDEN TERMINATION OF INVESTIGATION INTO THE ARMS DEAL
(Member’s Statement)
Mr M H STEELE (DA): Madam Deputy Speaker, the decision to terminate the arms deal investigation might seem like a successful short-term solution to an embarrassing political problem, but it simply leaves too many questions unanswered. What is in the more than 40 boxes of documents collected by the Scorpions? What of the more than one million electronic messages, which Gen Dramat reported to the Standing Committee on Public Accounts, Scopa, as being the subject of the Hawks’ investigation? And how much of the more than R450 million, which the same general confirmed, was paid in bribes?
The trouble with the way this investigation was terminated is that these questions remain unanswered. And when questions go unanswered, the speculation continues. What noted columnist Allister Sparks called the “stench of corruption” at the heart of the arms deal will continue to tarnish the reputations of all who were involved.
If one googles the words “arms deal South Africa”, some 325 000 hits appear. The bibliography of books on the arms deal grows every year, all of which means the scandal isn’t going to go away until an independent judicial inquiry finally unpacks the contents of those boxes.
Those people involved in the arms deal who have an interest in any investigation being stopped, should not feel that they can breathe easy. The DA will not stop pursuing this issue. Thank you. [Applause.]
MANY WHISTLE-BLOWERS DYING IN MYSTERIOUS CIRCUMSTANCES
(Member’s Statement)
Mr M E GEORGE (Cope): Madam Speaker, something is very rotten in the state of South Africa. Assassins for hire are being used by some key persons in the ANC government with a lot to hide from whistle-blowers and witnesses. All the while, the criminal justice cluster has been unable to do anything about the many whistle-blowers dying in mysterious circumstances. Criminals are literally getting away with murder. Not surprisingly, South Africa is looking more and more like it is becoming a mafia state.
To add insult to injury, the wife of the Minister of State Security is at present being tried as a drug-importing and Mandarine disciple taker. Already the ANC has conflated state with party. Now state security itself may very well … [Interjections.]
Mr C T FROLICK: Madam Deputy Speaker, I rise on a point of order.
The DEPUTY SPEAKER: Hon member, there is a point of order. What is the point of order, Mr Frolick?
Mr C T FROLICK: I just need a point of clarity, Deputy Speaker. We are under the impression that the hon member has been suspended by his party, but he is here in Parliament. [Laughter.]
Mrs J D KILIAN: Hon Deputy Speaker, that is not a point of order. [Interjections.] Mr M E GEORGE: In the meanwhile, in the guise of protecting state information through the Protection of Information Bill, the ANC-led government will silence criticism and allow criminality in government to reach new depths.
The assassination of Nkambule is an omen of bad things to come for those who dare to reveal criminality in high places. What makes the mysterious death of Nkambule particularly significant is that he met with Gen Bheki Cele, shared information with him, and was then arrested. Shortly after that he died in mysterious circumstances. Did the state have a hand in his death?
We raise this question, because of the four assassins who were identified, three have already died. A judicial commission of inquiry is needed to lay bare the activities of the assassins and their paymasters. How the ANC responds will be critical to the future of South Africa. I thank you. [Applause.]
Mrs J D KILIAN: Madam Deputy Speaker, some of the members are conversing aloud and in terms of Rule 46 that is not allowed. [Interjections.] May I perhaps remind some of the ANC members what the Rule says: During debate no member … [Interjections.]
The DEPUTY SPEAKER: Is that a point of order or what?
Mrs J D KILIAN: I am asking the Deputy Speaker on a point of order to please ask the ANC Whippery to enforce the Rules of the House.
The DEPUTY SPEAKER: Please sit down, hon member.
PERFORMANCE AGREEMENTS WITH MINISTERS
(Member’s Statement)
Ms N P KHUNOU (ANC): Deputy Speaker, the task of the Presidency is to lead, manage and develop the strategic agenda of government, and oversee and continually monitor the realisation of government’s programme of action especially under the current economic climate.
Since the ANC assumed power in 1994, we have made the point consistently that government programmes should be geared towards changing the lives of our people and uplifting them.
President Zuma has responded to this challenge by creating new mechanisms to ensure that there is continuous monitoring and evaluation of programmes aimed at eradicating poverty and improving service delivery to the poorest of the poor.
For the first time in the history of South Africa, Cabinet members are signing performance agreements. The ANC welcomes and supports the signing of these contracts as it is a testament to the commitment the ANC-led government has made towards eradicating poverty, fighting crime, and providing affordable and quality health care and education. Working together as various spheres of government, the Presidency is changing the way government works, showing us that together we can do more. I thank you. [Applause.]
REASONS BEHIND DEPARTURE OF MRS MARY METCALFE FROM HER POST IN THE
DEPARTMENT OF HIGHER EDUCATION AND TRAINING
(Member’s Statement)
Mr A M MPONTSHANE (IFP): Hon Deputy Speaker, last week the IFP called on the Minister of Higher Education and Training to admit to the real reasons behind Mrs Mary Metcalfe’s decision to leave her post as the Department of Higher Education and Training’s Director-General.
We strongly believe that there appears to be a major cover-up of the real reasons of her departure. To make matters worse, we are now shocked to read that Minister Nzimande’s special adviser, Gwebinkundla Qonde, will be the department’s next acting director-general. Again, political affiliation seems to be the main reason for Qonde’s promotion rather than academic qualifications and experience.
As far as the IFP is concerned, the nature of Mary Metcalfe’s departure is bad news for education in South Africa. Education is the key to unlocking South Africa’s potential but critical challenges remain, such as access to and the affordability of education. These are challenges which Mrs Mary Metcalfe had set out to conquer.
Therefore, we call on Minister Nzimande to come clean on what led to Mrs Mary Metcalfe’s decision to depart. We call on the Minister to leave no stone unturned in ensuring that the matter between them is resolved for the benefit of education and the future of the youth of South Africa. I thank you. [Applause.]
ID WISHES 2010 MATRICULANTS SUCCESS IN THEIR EXAMS
(Member’s Statement)
Mr J J MCGLUWA (ID): Deputy Speaker, the matric class of 2010 has had to endure more challenges this year than any other matric class of our new democracy. The public servants’ strike and the Soccer World Cup caused major upheaval and saw students out of the classroom for longer than usual.
Schools were left to come up with their own recovery plans and, owing to the unresolved salary negotiations, unions appallingly instructed teachers not to attend school and even resorted to destructive activities. Throughout this, the department gave the impression that they were not interested in the impact this was having on senior learners.
It caused a lot of grievances between Members of Parliament, parents and also learners themselves as the matter was not attended to with urgency. With fear running high that matric pupils would be far from ready as the examinations started drawing closer, we are however pleased that, according to reports, the first day of the matric exams has been successful.
Unfortunately, the Soccer World Cup also cost matriculants precious preparation time. Although the department has said that the school year had not been shortened despite the extended June school holidays, the impact thereof has done so.
The ID hopes that the matriculants can rise above all these challenges they were forced to endure this year. We wish them every success for their examinations. I thank you.
RE-ELECTION OF SOUTH AFRICA TO THE UNITED NATIONS SECURITY COUNCIL
(Member’s Statement)
Ms K R MAGAU (ANC): Deputy Speaker, the ANC welcomes the re-election of South Africa as a nonpermanent member to the United Nations Security Council for the period 2011 to 2012. The ANC views the re-election of South Africa to the UN’s most powerful seat as a vote of confidence in the role that the country is playing in international diplomacy, particularly in championing the African agenda in areas such as peacekeeping, security, human rights and economic development.
Furthermore, the ANC reaffirms South Africa’s continual commitment to the creation of a new world order, and the advancement of international peace, security and human rights.
We further call on the Department of International Relations to communicate South Africa’s positions clearly and coherently to the nation to avoid misunderstandings and misinterpretations of South Africa’s positions in the United Nations, as happened with Myanmar. I thank you. [Applause.]
REMUNERATION AND PROVISION OF CERTIFICATES FOR TRADITIONAL LEADERS
(Member’s Statement)
Mr N T GODI (APC): Madam Deputy Speaker, in our meeting with the Minister for Co-operative Governance and Traditional Affairs soon after his appointment, the APC raised two issues which we believe needed his urgent and sustained attention.
These matters related to traditional leaders, especially the remuneration and provision of certificates for headmen and headwomen, as well as the issues of boundary disputes in Meraphong, Matatiele and Moutse. Since then, the APC is aware that the lack of certificates for some serving traditional leaders persists. The issue of remuneration for some traditional leaders remains unresolved.
The APC makes a strong call for the urgent resolution of these matters, taking into account that they are long-standing and impact negatively on the traditional leaders concerned.
On the boundary disputes, only Meraphong has been successfully resolved, in line with the popular will of the people. The APC understands that in the case of Matatiele and Moutse, a testing of views referendum was held. The APC urges the Minister to make the outcome of these referenda public and use them as a basis for settling these long-simmering boundary disputes. If not, the millions used in these referenda will amount to fruitless and wasteful expenditure. This would be a violation of the Public Finance Management Act.
South Africa has been promised that an era of dialogue and openness has set in. Let this be the experience of the residents of Matatiele and Moutse. The remuneration of some traditional leaders and the settling of boundary issues in Moutse and Matatiele are long overdue. They need urgent resolution. The APC calls for and supports their speedy and undelayed resolution. Thank you.
SHORTAGE OF SOCIAL WORKERS
(Member’s Statement)
Dr J C KLOPPERS-LOURENS (DA): Madam Deputy Speaker, South Africa faces a critical shortage of social workers. In light of this, the prospect of the Huguenot College in Wellington being closed is too terrible to even contemplate. This college produces 90 well-trained social workers and community development workers every year. It has received applications from 600 prospective students for enrolment in 2011.
This private college relies on partnerships with public higher learning institutions, but these partnerships have fallen foul of the Higher Education Act. I recently visited the college to see first-hand the excellent work that it does in training students to perform social work. I received a petition from the students, outlining the plight of the college and containing an urgent appeal to Minister Nzimande to intervene to keep the doors of the college open. This petition will be given to the Minister.
I am pleased that, in the interim, the Department of Higher Education and Training has indicated that it is prepared to respond to the DA’s urgent appeal to prevent the college from closing, and that the Minister realises that South Africa can ill afford to have even fewer qualified social workers. I will be following the Minister’s efforts closely to ensure that the commitments of the department are indeed carried out. Thank you. [Applause.]
ANC WELCOMES BY-ELECTIONS VICTORY
(Member’s Statement)
Ms C C SEPTEMBER (ANC): Madam Deputy Speaker, the ANC welcomes the outcome of the by-elections held on 6 October 2010 in all four provinces. The ANC emerged with an overwhelming victory.
We are particularly pleased with the inroads we have made in the Western Cape where we took over two wards in Oudtshoorn … [Applause.] … which formerly belonged to the ID. This by-election being the first to be contested by the DA-ID coalition in the ward demonstrates the people’s vote of no confidence in the Zille-De Lille marriage of convenience. The outcome, ahead of next year’s local government polls, further points to the strengthening of the ANC support base in the Western Cape and is a strong showing that the organisation is on the verge of reversing past losses. [Interjections.]
Out of a total of 18 by-elections - 12 in the Eastern Cape, 3 in the Free State, 1 in KwaZulu-Natal and 2 in the Western Cape – the ANC won 17 wards. In the Eastern Cape, the Free State and KwaZulu-Natal, the ANC retained all 15 of the wards it won in 2006, except 1 lost to an independent candidate in the Eastern Cape.
Viva, ANC! Viva! Together, we can do more. [Applause.]
KILLING OF IFP MEMBERS
(Member’s Statement)
Mr K P SITHOLE (IFP): Deputy Speaker, the IFP is calling for urgent police intervention following the murder of two more prominent leaders of the IFP in Gauteng. Mr Bhunu Zungu from Ward 61, Jeppestown, and the chairperson of the IFP in Nancefield, Mr Thandazani Shange, were gunned down on Friday night.
This brings the number of IFP members who have been shot and killed in Gauteng in recent weeks to four. While we are not sure of the motive behind these attacks, it is clear that they are not isolated incidents. We are worried that these might be politically motivated killings. There has been a steady increase in attacks on IFP leaders in Gauteng, yet we have seen no arrests in any of these cases. We appeal to the Minister of Police to intervene immediately so that we can bring to an end these senseless attacks. I thank you. [Applause.]
PROBLEMS AT SABC BOARD
(Member’s Statement)
Mrs J D KILIAN (Cope): Deputy Speaker, Cope supports the concerns expressed by the Portfolio Committee on Communications recently, but believes it falls short of fingering the real problems, namely the close friendship between the board chairperson and senior ANC leaders, which has led to political interference in the running of the board.
Another key reason is the serious management capacity problems that also undermine the effective functioning of the SABC board. Serious skills shortages and breaches of regulations were highlighted in a presentation made to Parliament by 11 out of 12 nonexecutive board members and tabled on 24 August.
Cope is perturbed by the resignation of four board members recently, which is within the first 10 months of their term of office. We fear that more resignations may follow unless the board chairperson is called to order or preferably asked to resign.
By waiving the three-month notice period of the two most recent resignations, President Zuma and the ANC sent an ominous message to the board members that they should heed his master’s voice or get out. These members were willing to serve a full three-months’ notice period to avoid a governance crisis at the SABC.
This sudden-death type of resolution is a clear manifestation of the ANC’s obsession to take control of the public broadcaster. It should also send a spine-chilling message to media houses in South Africa that this government will not tolerate critical thinking. Thank you. [Time expired.] [Interjections.]
LIFTING THE USA-IMPOSED EMBARGO AGAINST CUBA
(Member’s Statement)
Mr S L TSENOLI (ANC): Madam Deputy Speaker, today the United Nations General Assembly will once again consider the item: “Necessity of ending the economic, commercial and financial embargo imposed by the United States of America against Cuba” during its 65th period of sessions of the General Assembly.
Last year, 187 member states voted in favour of this resolution. Despite this overwhelming democratic outcome, the United States continues to ignore the world body’s decision.
We in the ANC fully support our government for consistently supporting this resolution before and since its adoption by the overwhelming majority of members of the United Nations. We believe that this clear expression of democracy must be respected by those who want us to believe them to be champions of democracy.
Cuba and the Cuban people are correct in identifying this embargo as the most important factor undermining their country’s natural development. It inhibits even other partners of the United States itself and its own citizens from freely conducting social and economic relations with Cuba.
No respectable reason or justification exists for the continuation of this embargo against the wishes of the majority of governments of the world. No reason exists for our government representatives in the United Nations to change their principled support for Cuba on the matter during voting.
We appeal to the United States to respect the outcome of the result of the vote as it expects others to do in other situations. I thank you. [Time expired.] [Applause.]
CRIME IN PINETOWN, KWAZULU-NATAL
(Member’s Statement)
Mr G R MORGAN (DA): Madam Deputy Speaker, the high level of crime in Pinetown in KwaZulu-Natal has resulted in residents, frustrated by the lack of leadership at their local police station, taking to the streets to vent their anger.
The tipping point was the tragic murder of local matric learner, Llewelyn Bond, during a hijacking last week. While the number of murders dropped overall in South Africa during the last reporting period, the number of murders in Pinetown increased.
In addition, the residents of this west-Durban suburb suffered a 60% increase in burglaries at residential premises. The Pinetown police station, like so many police stations around South Africa, faces chronic shortages of resources. Its vehicle complement is 50% of what it should be, while its staff complement is only 70% of what it should be.
It is pleasing that Llewelyn’s murderers were apprehended, but this will bring little comfort to his family or the community. The murder should never have happened.
Crime-prevention efforts in Pinetown are weak. The fault cannot be laid at the door of the community policing forum, the CPF, which has members who are engaged and who want to be part of the solution.
On Sunday, over 500 community members gathered in the town hall to express their anger. They want the station commander, Brigadier Zama, removed from his position. I have a petition which I will be giving to the Minister.
The DA supports this call. We urge the national and provincial commissioners and the Minister of Police to install an experienced and capable commander, and to ensure that he or she is given the resources to achieve the security that the residents of Pinetown are entitled to. I thank you. [Applause.]
REGULARISATION OF ZIMBABWEAN NATIONALS RESIDENT IN SOUTH AFRICA
(Member’s Statement)
Mrs T M A GASEBONWE (ANC): Madam Deputy Speaker, on 20 September 2010 the Department of Home Affairs commenced the process of issuing permits to all qualifying Zimbabwean nationals. This came after the department announced that all Zimbabwean immigrants had to apply for the relevant documents and register their status in the country, because a special dispensation, allowing Zimbabweans crossing into South Africa the right to live, work, attend education facilities and access basic health care for a period of six months, was coming to an end.
Since the start of this process, all nine provincial Home Affairs offices have been processing applications. The ANC-led government has received praise for this policy of regularisation from the United Nations High Commissioner for Refugees, during the meeting of the 61st session of the United Nations High Commissioner for Refugees. We acknowledge that the department has experienced some challenges during the roll-out process, and urge it to deploy more officials to assist and ensure that all applications are processed by the cutoff date.
This special dispensation will come to an end on 31 December 2010. Therefore, we urge all Zimbabwean nationals to take full advantage of the opportunity to regularise their stay and to comply with South Africa’s immigration laws. Thank you. [Applause.]
SHORTAGE OF SOCIAL WORKERS
(Minister’s Response)
The MINISTER OF HIGHER EDUCATION AND TRAINING: Thank you, Acting Speaker. I just wish to assure the member, as she has also pointed out, that as the department we are actively dealing with the matter of the Huguenot College. I have indeed asked the relevant branch in my department to prioritise dealing with this matter.
But I do wish to point out that this matter was not brought to my attention for the first time by the DA. It had already been raised with me a while back by my colleague, the Minister of Social Development, Minister Molewa. [Interjections.]
It is good that the DA has raised this issue, but it is very opportunistic to claim that this matter has been raised by the DA for the first time. [Interjections.] We are not asleep. We are aware. As this government, we are concerned. That is why, indeed, we do have a programme to ensure that we train more social workers in this country.
Ngiyabonga, Sihlalo! [Ihlombe.] [Thank you, Chairperson! [Applause.]]
ANC WISHES MATRICULANTS SUCCESS IN THEIR EXAMS
ID WISHES 2010 MATRICULANTS SUCCESS IN THEIR EXAMS
(Minister’s Response)
The MINISTER OF BASIC EDUCATION: Thank you, Deputy Speaker. Indeed, we also want to join all the members of the House in wishing the matric class of 2010 success in their exams. We also want to take this opportunity to thank private individuals who came forward to assist our learners; the business community that came out in numbers also to give support; the learners’ parents; and also the very teachers who, after coming back from the strike, did work very hard to make sure that we could recover lost ground.
I am quite confident that, indeed, we have recovered lost ground. As we have been saying to our learners on an ongoing basis, they must stay focused, because no amount of complaints, blame - ID member - or even self- pity will help them through their exams. All they have to do is to work hard. It is only by working hard and staying focused that they will succeed.
This year, 2010, is their year. They should feel successful and succeed and not blame anybody, as it won’t help them. So, don’t tell them about anything that happened which won’t appear in the exams, about who did what to them. They just have to refocus, and that’s the only way they will succeed. Thank you, Deputy Chair. [Applause.]
REGULARISATION OF ZIMBABWEAN NATIONALS RESIDENT IN SOUTH AFRICA
(Minister’s Response)
The MINISTER OF HOME AFFAIRS: Thank you, Madam Deputy Speaker. I just like to thank the hon Gasebonwe for the statement on the Zimbabwean dispensation. In order to update the hon member and other members, as of yesterday we had received 33 117 applications, and we have already adjudicated 9 890 of them.
As you know, we also announced amnesty for those who return the South African documents that they received fraudulently, if they follow the procedures and get their own documents. We have already given amnesty to 1 046 people who have returned their documents to us. So, this process is going very well.
I would like to also just say that we have opened an additional office. We have 42 offices that are dealing with this matter, so this should be adequate. We also have 246 dedicated staff dealing with this matter. Tomorrow we will add another 51 staff. So, we think, this should be enough to deal with this matter.
We would like - as the hon member did - to call on the Zimbabweans to use this opportunity and not wait until 31 December, because the offices are there, and some of them are actually underutilised. However, as there have been too many applications in Gauteng, we have opened a special additional office in Harrison and Market Streets to deal with this matter. We are confident that we are well equipped to deal with it, as long as they come on time and not wait until the last minute. Thank you. [Applause.]
MANY WHISTLE-BLOWERS DYING IN MYSTERIOUS CIRCUMSTANCES
KILLING OF IFP MEMBERS
(Minister’s Response)
The MINISTER OF POLICE: Hon Deputy Speaker, I don’t believe that the member here really asked the question he did. Hon George, perhaps because you are a member of the committee, you would have served this House better by explaining to the House that since the appointment of the new Provincial Commissioner in Mpumalanga, people are being arrested. Now, how Mr Nkambule died – that will be investigated by the police. I thought you would commend the police on that, especially as a member.
To the hon member from the DA: I will await your paper. I don’t know whether it’s a … What did you say, a petition? Oh, okay. I’ll wait for your petition, but please don’t include operational matters because I won’t deal with them. There are people who deal with those things. Whether an officer is fit to hold office is a matter for operations, not a matter for a Minister. Otherwise, I will await your petition. Thank you very much. [Applause.]
SOUTH AFRICAN CITIZENSHIP AMENDMENT BILL
(Decision of Question on Second Reading)
The DEPUTY SPEAKER: Hon members, I wish to remind you that, after the debates on the Second Reading of this Bill and the next two Bills previously on the Order Paper, the decisions on the Second Reading of the Bills were postponed. Are there any objections to the South African Citizenship Amendment Bill being read a second time? Declarations of vote:
Mr M MNQASELA: Madam Deputy Speaker, on 16 September this year, during the debate on the same Bill in this House, I made it clear that the Minister had misled this House and the public. An alarming amendment to section 6 of the Citizenship Act allows for citizens to be deprived of their citizenship because of their engagement in a war that the government does not support.
The MINISTER OF SCIENCE AND TECHNOLOGY: Madam Deputy Speaker, on a point of order: There is no way that the member made it clear that the hon Minister had misled the House. I think he must withdraw that, because that’s a very serious statement to make about an hon member. [Interjections.]
Mr M MNQASELA: She did mislead the House.
The DEPUTY SPEAKER: The member will continue. We will review and come back to that.
The LEADER OF THE OPPOSITION: Madam Deputy Speaker, on a point of order: The previous speaker got up and said that that was a serious matter. This is a serious matter, this is a serious House and I take exception to the hon Minister telling me to shut up. [Interjections.] I take exception to the hon Minister telling me to shut up and I’d like her to withdraw that. The DEPUTY SPEAKER: Hon members …
The MINISTER OF SCIENCE AND TECHNOLOGY: Madam Deputy Speaker, I never uttered such words. I have never spoken to that person in my life. [Laughter.]
The DEPUTY SPEAKER: Hon Trollip, are you saying that the Minister said you must shut up?
The LEADER OF THE OPPOSITION: That is precisely what I am saying, Madam Deputy Speaker, and I am now saying that the hon Minister has spoken to me before in her life. [Laughter.]
The DEPUTY SPEAKER: Can we allow the member to continue?
Mr M MNQASELA: Madam Deputy Speaker, this section applies to all citizens, not only naturalised citizens. All citizens will be rendered stateless if the current Bill goes through as is. The Minister asserted here and in the media that this applies only to naturalised citizens. We are opposed to that as it is not true.
If we pass this Bill, we will be in contempt of section 20 of the Constitution. The right to citizenship can be limited, but certainly not by arbitrary decisions of the Minister.
The DA’s legal opinion tells us that this Bill cannot withstand constitutional scrutiny. The Minister has been reported as now acknowledging that the proposed amendments did not sufficiently articulate the Bill’s intention. She undertook to table a proposal in this Parliament. It would be very pleasing if you, hon Minister, did so and the DA will support that proposal if you bring it forward.
However, it is important to note that this Bill, as it stands, is highly likely to be unconstitutional, and can have life-changing impacts. Even the Minister, in the statements that she has made publicly, agrees with us regarding the Bill. You know where you spoke, Minister, when you said: This Bill has implications and it needs to be brought much closer.
In addition, this Bill proposes that children who are born to parents who are foreigners will qualify for naturalisation when they turn 18. This will have very serious implications for their education and the DA proposes that these children should qualify for naturalisation at least at the age of 16. Thank you very much. [Applause.]
Mr B A D MARTINS: Hon Deputy Speaker, section 3(3) of Chapter 1 of the Constitution empowers this House to formulate legislation pertinent to the acquisition, loss and reacquisition of citizenship. In considering the Bill, which was debated at the last sitting of this House, a number of pertinent issues were discussed in the process of formulating the Bill into its current state.
I would remind the House that clause 6(b) of the Bill empowers any citizen who has lost his or her citizenship to appeal to the Minister in order to reinstate such citizenship that has been revoked.
The other issues that have also been mentioned here by the previous speaker have been discussed and debated at length in the said Bill that is before us. Our submission as the ANC is that we proceed with the Bill as it stands. Thank you. [Applause.]
Division demanded.
The House divided:
AYES - 207: Abram, S; Adams, P E; Ainslie, A R; Bam-Mugwanya, V; Bapela, K O; Bhengu , N R; Bhengu, P; Bikani, F C; Booi, M S; Borman, G M; Botha, Y R; Burgess, C V; Buthelezi, M G; Carrim, Y I; Cebekhulu, R N; Cele, M A ; Chikunga, L S; Chohan, F I; Coleman, E M; Cwele, S C; Dambuza, B N; De Lange, J H; Diale, L N; Dikgacwi, M M; Dlakude, D E; Dlamini-Zuma, N C; Dlulane, B N; Dubazana, Z S; Dube, M C; Dunjwa, M L; Fihla, N B; Frolick, C T; Gasebonwe, T M A; Gcwabaza, N E; Gelderblom, J P; Gigaba, K M N; Gina, N; Gololo , C L; Gona, M F; Goqwana, M B; Gumede, D M; Hanekom , D A; Holomisa, S P; Huang, S-B; Jacobus, L; Jeffery, J H; Joemat-Pettersson, T M; Johnson, M; Kekane, C D; Kenye, T E; Kganyago, N M; Khoarai, L P; Kholwane, S E; Khunou, N P; Komphela, B M; Koornhof, G W; Kubayi, M T; Landers, L T; Lebenya- Ntanzi, S P; Lekgetho , G; Line, H; Lishivha, T E; Mabasa, X; Mabedla, N R; Mabuza, M C; Madikizela- Mandela, N W; Madlala, N M; Mafolo, M V; Magagula, V V; Magama, H T; Magau, K R; Magazi , M N; Magubane, E; Makasi, X C; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S; Malale, M I; Maluleka, H P; Maluleke, J M; Mandela, Z M D; Mangena, M S; Manuel , T A; Mapisa-Nqakula, N N; Martins, B A D; Maserumule, F T; Mashatile, P; Mashigo, R J; Mashishi, A C; Masilo, J M; Masutha, T M; Mathebe, D H; Mathibela, N F; Matlanyane, H F; Matshoba, J M; Maunye, M M; Mavunda, D W; Mayende-Sibiya, N A; Maziya, M; Mbili, M E; Mdaka, M N; Mdakane, M R; Mgabadeli, H C; Mjobo, L N; Mkhize, H B; Mkhulusi, N N P; Mlambo, E M; Mlangeni, A; Mmusi, S G; Mncwango, M A; Mnisi, N A; Mohale, M C; Mokoena, A D; Molebatsi, M A; Molewa, B E E; Moloi-Moropa, J C; Moss, L N; Motimele, M S; Motshekga, M A; Motshekga, M S; Mphahlele, L M; Mpontshane, A M; Msimang, C T; Msweli, H S; Mthethwa, E M; Mthethwa, E N; Mtshali, E; Mushwana, F F; Nchabeleng, M E; Ndabandaba, L B G; Ndabeni , S T; Ndlanzi, A Z; Nelson, W J; Nene, N M; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo, B T; Ngcobo, E N N; Ngele, N J; Ngwenya, W; Ngwenya-Mabila, P C; Nhlengethwa , D G; Njikelana, S J; Nonkonyana, M; November, N T; Ntapane, S Z; Ntuli, B M; Ntuli, Z C; Nwamitwa-Shilubana, T L P; Nxumalo, M D ; Nyalungu, R E; Nyanda, M F; Nyekemba, E; Nzimande, B E; Oliphant, G G; Padayachie, R L; Pandor, G N M; Petersen-Maduna, P; Phaahla, M J; Phaliso, M N; Pilusa-Mosoane, M E; Radebe, G S; Radebe, J T; Ramatlhodi, N A; Ramodibe, D M; Saal, G; Schneemann, G D; Segale-Diswai, M J; Selau, G J; September, C C; Shabangu, S; Sibanyoni, J B; Sibhidla, N N; Singh, N; Sisulu, L N; Sithole, K P; Skosana, J J; Skosana, M B; Smith, P F; Smith, V G; Snell, G T; Sonto, M R; Sosibo, J E; Suka , L; Sulliman, E M; Sunduza, T B; Surty, M E; Thibedi, J D; Thobejane, S G; Tinto, B; Tobias, T V; Tsebe, S R; Tseke, G K; Tsenoli, S L; Tshivhase, T J; Tshwete, P; Tsotetsi, D R; Turok, B ; Twala, N M; Vadi, I; Van der Merwe, S C; van Rooyen, D D; van Wyk, A; Xaba, P P; Yengeni, L E; Zondi, K M; Zulu, B Z.
NOES - 81: Bosman , L L; Botha, T; Carter, D; Coetzee, T W; Davidson, I O; De Freitas, M S F; Dexter, P D; Doman, W P; Dreyer, A M; Du Toit, N D; Ellis, M J; Figlan, A M; Gcume, N P; George, M E; Greyling, L W; Harris, T; James, W G; Kalyan, S V; Kganare, D A; Kilian, J D; Kloppers-Lourens, J C; Kohler-Barnard, D; Krumbock, G R; Lamoela, H; Lee, T D; Lekota, M G P; Lorimer, J R B; Lotriet, A; Lovemore, A T; MacKenzie, G D; Madisha, W M; Marais, E J; Masango, S J; Max, L; Maynier, D J; Mbhele, P D; McGluwa, J; Michael, N W A; Mnguni, P B; Mnqasela, M; More, E; Morgan, G R; Motau, S C; Mubu, K S; Ndude, H N; Ngonyama, L S; Nhanha, M A; Njobe, M A A; Ntshiqela, P; Ollis, I M; Paulse, S; Pretorius, P J C; Rabie, P J; Rabotapi, M W; Ramatlakane , L ; Robinson, D; Rwexana, S P; Schafer, D A; Selfe, J; Shinn, M R; Smalle, J F; Smiles, D C; Smuts, M; Steele, M H; Steyn, A; Steyn, A C; Stubbe, D; Swart , M; Swart, S N; Swathe, M M; Tolo, L J; Trollip, RAP; Van Dalen, P; Van de Linde, J J; Van den Berg, N J; Van der Westhuizen, A P; Van Dyk , S M; Van Schalkwyk, H C; Vukuza-Linda, N Y; Waters, M; Wenger, M.
ABSTAIN - 2: Dikobo, K J; Holomisa, B H.
Question agreed to.
Bill accordingly read a second time.
BIRTHS AND DEATHS REGISTRATION AMENDMENT BILL
(Decision of Question on Second Reading)
Bill read a second time.
MAGISTRATES’ COURTS AMENDMENT BILL
(Decision of Question on Second Reading)
Bill read a second time.
DEFENCE AMENDMENT BILL
(Second Reading debate)
The MINISTER OF DEFENCE AND MILITARY VETERANS: Deputy Speaker, after consultation with my colleagues, I thought to use the first minute of this debate to inform the House of an unfortunate incident that happened on the border between Mozambique and South Africa yesterday. We had two fatalities. One was a South African, a member of the Reserve Force, the other, a Mozambican. One Mozambican woman was critically injured.
We, together with the Mozambican government, have formed a joint commission to look into the matter so that we can deal with it as expeditiously as possible. In the meantime, another Reserve Force member who was involved in the incident is in the hands of the police, and we are also looking at possible wrongdoing on his part. I thought I should inform members, because it does involve our neighbours; it does involve our responsibilities.
The second amending Bill of the Defence Force Act has been occasioned by three separate issues that needed our urgent attention. The first is the creation of a new dispensation for the Defence Force, with the establishment of the Defence Force Commission. The second is the creation of an obligation by Reserve Force members to serve in peace time, and the third is the definition of “military command”.
To this end, this marks the end of a saga around a Bill, a saga based on a deliberate misunderstanding intended to inflame and misrepresent. However, I will come back to this later on. As it marks the end of the saga, so it ushers in the beginning of a better dispensation for the Defence Force and the opportunity to deal with the needs of our soldiers in a very unique environment that requires unique responses.
When we took over government in 1994 and adopted a minimalist approach to our Constitution, our intention was very clear. Defence had to be changed from what it was in apartheid days to reflect the ethos of the present. In our engagement and our eagerness to do this, we rode roughshod over a number of matters. We are now saddled with a situation where the conversion of the Defence Force to a department of state is not working and which impedes the development of a force as a force. We have sought, therefore, to pause awhile and create a dispensation that responds to the uniqueness of the Defence Force.
The Constitution requires the SA Defence Force to be “a structured institution managed as a disciplined military force”. Internationally, service in the military differs from that in the civilian sector. The high standards of patriotism, discipline, courage and self-sacrifice that are demanded in the execution of these duties are very unlike those which you find in the civil service. Unity of command and obedience to legitimate orders from superiors are the foundation of military cohesion and the attainment of military objectives. By their very nature, these prerequisites underscore the uniqueness of military service and therefore require a different approach towards determining conditions of service within the military. The proposed establishment of the National Defence Force service conditions responds to this need and seeks to create a unique military service dispensation outside the general Public Service.
With this legislation, we create the commission that will do for the Defence Force what the Public Service Commission does for the Public Service. The Minister for the Public Service and Administration issues regulations that govern the Public Service. The regulations governing the Public Service can hardly be the environment in which we manage a military force.
Through this legislation today, we will now have the Minister of Defence issuing the regulations for the Defence Force. These regulations are called
- and I underscore this - conditions of service for the Defence Force, with recommendations that come from the commission. In the Public Service, these conditions are called conditions of service of the Public Service. So too, in the Defence Force, do we call them conditions of service for the Defence Force. They will cover a whole range of matters, from promotions to rank, and many others. In short, conditions of service cover the totality of how the state relates to the Defence Force, and the terms of engagement, as it were.
Unfortunately, the reading by some of us, fuelled also by the media, has been a misreading of the conditions of service relating to salaries and living conditions. It is not about what you have been reading in the media. The Bill relates to conditions of service, which is a technical term used exclusively in the Public Service to mean the conditions under which both the state and the entity will abide as they continue to conduct their relationship.
Through this Bill, the commission that will be established will align us with internationally accepted best practice. A commission of this nature is part and parcel of the governance structures of the Defence Force. We have sought and received a great deal of support from the Public Service Commission. They see in this sectoral, but much-needed help in their constitutional mandate. We have negotiated what we will be responsible for and remain committed to ensuring that we will provide the Public Service Commission with reports on our work on an annual basis.
Having said that, please allow me to offer my profound gratitude to the Interim National Defence Force Commission, whose job included assistance in crafting the Bill before you now. For the past two years, the department has been engaged in studies involving several countries, and when the interim commission was established, the work was handed over for them to complete. I wish to thank them most sincerely, and especially those of them who are in this House, for the hard work they have put into this. I want to underline here that the creation of the Defence Force Commission had nothing to do with the protesting soldiers. It is a commission mooted two months before the protests in this House during my Budget Vote speech on 3 July 2009. It is an institution we established in the intelligence services in 2002 and it worked very well. It gave me the experience that I sought to bring into this environment.
It is an institution the Defence Force has been battling to establish for some time, and at this point I would encourage the hon Lekota to listen. Had the hon Lekota not been busy fighting for the leadership of the ANC, he might have attended to this much earlier. However, we are here now and we are attending to the matter, hon Lekota. [Applause.] [Interjections.]
When the interim commission has concluded its work, the report will be presented to Cabinet and, thereafter, tabled here. I repeat, for emphasis, that the establishment of the commission was not in response to the deplorable conduct that took place at the Union Buildings. Instead, the Bill establishes a mechanism to deal with the unique position of the Defence Force and the governance that it requires. I move on.
Secondly, the Bill, in its amendment, fills a lacuna we experienced in the appointment of Chiefs of the Defence Force. What we have defined here is “military command”. This is spelled out in the Constitution, section 202(1), and it directs the President to appoint the military command of the Defence Force. The Constitution, however, does not define or provide any guidance on who would constitute the envisaged military command. The Defence Act, 2002, also does not provide any guidance in this regard. The proposed insertion of a new section 4(a) of the Defence Act Amendment Bill seeks to address this lacuna in the law and create certainty as to the composition of the military command.
The military command, as agreed to by the portfolio committee, consists of the following: the Chief of the Defence Force, the Chief of the SA Army, the Chief of the SA Air Force, the Chief of the SA Navy, the Surgeon- General, the Chief of Joint Operations, the Chief of Defence Intelligence, the Chief of Human Resources, and the Chief of Logistics. This composition is informed by the level of the posts, which is a three-star-level general, and the responsibility for the command of the forces under them.
Finally, the Bill also regularises the deployment of the Reserve Force in peace time, a much-needed step that will assist us in overcoming a number of impediments. Reserve Force members currently serve on a voluntary basis or render service in terms of a contract. Put simply, they are only compellable to serve during war time or a state of national defence. Now that we have this Bill before us, we are hoping to utilise this much-needed resource to assist us in the work that we are doing, especially around the borders. I thank all of those members of the committee who supported the Bill. The Defence Force needed this a long time ago, and now that we have come to this, I would like to thank them most sincerely, despite the glitches that we had with assenting to this Bill. Thank you very much. [Applause.]
Mr M S BOOI: Thank you, Deputy Chair and Deputy Speaker. Thank you, Minister, for being able to put into perspective what we think is very important regarding Defence and Military Veterans. The work is done and we have engaged on it. We have gone through the legislation and it is in front of Parliament now. Different members of our committee have really applied their minds. As the Minister has already indicated, we are very thankful for the type of work that we have been able to do together.
The work that we have done has always been in consideration of the ordinary soldier in terms of what is expected of him and what he expects from Parliament. We have managed to do that work.
I must indicate, Minister, to you today again, that the level of reporting that has taken place through your annual report and through your speech today clearly indicates to us that the winds of change are taking place within Defence itself. We do sincerely hope that the contribution that we are making as Members of Parliament will be able to help you to strengthen your hand in being able to do what is in front of you. Regarding a concern that was expressed on the role that should be played by the service commission, we have been able to get around it. Regarding the matter that has been raised in that it might create some unconstitutionality, we have been able to deal with it.
We have indicated to you and to the broader service that what was called irregular expenditure – an amount of R1 billion – we have been able to sort out today. We have applied our minds and, within the Bill, we have been able to say that we are giving you back that power, the power to be able to decide. It is a necessary power that we thought should be legislated.
The issues that have been indicated in terms of the Bill, that there is a dysfunctional Military Bargaining Council and Military Arbitration Board, are challenges. We are very clear in our minds as Members of Parliament that it is not our obligation to assist the trade union movement to be put together with Defence. Your job is not to go and create unions. If there are those who are interested in doing that, let them do that. But we have an obligation to be able to make decisions on behalf of Defence.
So, when we introduce section 55(3) that gives you the power to make decisions on behalf of Defence with the interim commission, we are quite clear that you deserve to do that because it is not your responsibility to make sure that the Military Bargaining Council and the Military Arbitration Board function. We do know, as a matter of fact, that you tried it and you tested it, former Minister, and that it was always judged against you.
As Members of Parliament, using the institution itself and our power for legislating, we have arrived at that particular decision and we have given the power back to the Minister to be able to make that type of decision.
With the primary Bill, we would constitute those structures. But we say that that power should rest with the Minister to use whenever she thinks things are very difficult in the department and she is unable to tolerate them.
We have also applied our minds quite strongly to the issue that has been raised by one of our members in terms of national security and the commission itself. We thought it was an important development, and we need to be able to protect it and be able to give power to it because the permanent national commission will have a lot of access to the department itself and that might touch on sensitive areas. We thought that that power should not be taken away. Our encouragement is that whenever you come across confidential reports in the department, those reports must not be accessed by the department.
In terms of the mindset of the committee, we are dealing with a military institution that deals with life and death. It is very important that we should be able to protect those men and women who are active in the department. This is not to say that we don’t recognise transparency; we do, but we say that there will definitely be a lot of sensitive information that will go through the hands of the commission, and that has to be protected in the interests of our own country and the security of the country. We do give that power to the national commission to reflect on it.
We have also dealt with the issue that if ever a Reserve Force member, or anyone of us here, feels that he cannot go through the processes put in front of him and feels that his democratic rights are being taken away, we will definitely maintain, after applying our minds, that we are not here to criminalise different people who want to come in as Reserve Force members. However, we maintain that it is in the interests of those who want to play an active role in the Defence Force that we should encourage them to go into the Reserve Force. But it is recognisable that we should also not undermine our Constitution and some of the rights of individuals. We therefore crafted the Bill in a manner that it protects that particular right so that people do try all mechanisms. But at the end of the day, the appeals board and final person who appeals will be the Minister herself.
We have been very clear that this is a ministerial commission, and not a presidential commission. We have given quite number of powers to the Minister to be able to run the Ministry and the commission itself. We were not blind to that. We are quite conscious about it after having applied our minds to and engaged with it.
Even at the level of looking at the different commissions, we are giving you that particular power regarding the nominations and creation of the nomination board, not because of overzealousness, but after a lot of interrogation and reflection within the committee on the challenges and the nature of these types of commissions and where those types of powers reside. The committee has come to the decision that it is not a presidential commission, but a ministerial commission.
For us to be able to make these types of decisions and to give the Minister the capacity to make decisions, it should remain her responsibility that she gets to be the one who controls the commission and makes sure that the commission does deliver on the expectations because it is an advisory body to her. It is not a body that lies all over; it’s an advisory body that is going to assist the Ministry to have the capacity to be able to do and make decisions within the institutions. For us, that is a very dynamic and progressive thinking to allow the Minister to be the one who takes full responsibility.
With regard to the reflection on the military command, as the Minister has already outlined, we thought that those powers, as reflected in the Bill, are powers that could be shared. But after reflecting on the Constitution, we realised that that responsibility is the sole responsibility that we would have to give to the President himself. That is what the committee seems to have come to an agreement on - that the military command has to be commanded by the President himself as Chief of Defence, as directed by the Constitution. We have been able to give that responsibility to him to be able to reflect on it.
I must again thank the different members who were part of the committee. While there have been issues that we would all have eagerly wanted to be expressed earlier, throughout the work that we have been able to do in the past two weeks, it became very clear to us, that, one, the defence of the Constitution was very important and that’s what members have been able to apply their minds to as they created legislation; and, two, it was very important that we maintained the integrity of Parliament, which has been maintained without a fight or tension between any people. We think the Bill reflects all those things, and the challenges have been incorporated in a helpful manner.
On behalf of the committee, I still want you to be able to say to the Minister that we do want to thank the interim commission that has been able to play that role. On our behalf, I would like to pass on our thankful regards to the commission for the manner that it handled this particular matter. We will be able to strengthen all these things in the near future. We do know from where we are seated that we have encouraged a relationship between ourselves and the commission. When the commission gets constituted, it will have to come back to Parliament, after it has reported to the Minister, and make sure that it does put a report before Parliament.
We have incorporated one or two sentences to say that sometimes you have to make some of the reports public so that you can know what is going on. So, Parliament will be the type of institution to sit down and receive those reports, go through them, reflect on them and see if they are able to help the ordinary soldier. That’s the challenge, and we want to thank all members of the committee. Thank you, Chairperson. [Applause.]
Mr D J MAYNIER: Chairperson, the Defence Amendment Bill triggered an unprecedented political battle between the executive and the legislature, the outcome of which reflects poorly on the state of our constitutional democracy. The debate today should, therefore, focus not just on the merits of the Defence Amendment Bill, but also on the political battle that the Defence Amendment Bill triggered.
The Defence Amendment Bill’s primary objective is to establish a permanent Defence Force Service Commission. The Defence Force Service Commission’s purpose is to advise the Minister of Defence and Military Veterans on the improvement of service conditions in the Defence Force. We support the establishment of the permanent Defence Force Service Commission, because it will go some way towards improving the service conditions of our soldiers in the Defence Force. However, that should not be taken to mean that we support all the provisions in the Defence Amendment Bill which, in the end, was rammed, legislative warts and all, through the Portfolio Committee on Defence and Military Veterans.
On 26 August 2009 more than a 1 000 soldiers participated in a protest march which turned violent when soldiers went on the rampage in front of the Union Buildings. These soldiers did irreparable harm to the reputation of the Defence Force. But, at the same time, they focused political minds on the deplorable service conditions in the Defence Force. To her credit, the Minister moved swiftly to put a battle plan in place to deal with service conditions which included, despite what the Minister may say, establishing an interim National Defence Force Service Commission.
The commission was established, inter alia, to investigate and provide advice to the Minister on remuneration and service conditions in the Defence Force. By visiting several military formations, the commission aimed, in their own words, “to gain a deeper understanding of the nature and depth of the issues facing the SA National Defence Force”. The commission was evidently so shocked by what they found, that they described service conditions in the Defence Force as a “ticking time bomb”.
Because of this, the commission produced two interim reports which were submitted to the Minister before the end of 2009. The interim reports were reportedly explosive and concluded that troop morale was so bad that it could threaten state security. This, of course, is a devastating indictment, not only of the civilian leadership of the Defence Force, but also of the military leadership of our Defence Force.
The Portfolio Committee on Defence and Military Veterans requested copies of the interim reports, because the interim reports were, after all, the only official findings and recommendations on service conditions in the Defence Force. But the Minister dug in her heels and refused to make the interim reports available. This triggered, firstly, a sort of Mexican political standoff, and then a full-scale political battle between the Minister of Defence and Military Veterans and the Portfolio Committee on Defence and Military veterans. What follows is a very short summary of these events.
The portfolio committee “loaded” with a legal opinion advising that the Minister could be compelled to produce the interim reports; then the portfolio committee “fired” - with a letter urging the Minister to produce the interim reports; the portfolio committee then “took cover”, because it was not long before the Minister “fired back” with a legal opinion advising that the interim reports could not be produced because of executive privilege.
But the Minister made a fundamental error, because she did not score a “political headshot” and so it was not long before the portfolio committee fired back: requesting that the reports be produced within a reasonable period of 30 days; stating that until the interim reports were received, deliberations on the Defence Amendment Bill would be suspended, and suggesting that if the interim reports were not produced, the portfolio committee reserved the right, as a last resort, to compel the Minister to produce the interim reports.
The fact that the portfolio committee had effectively given the Minister a deadline to produce the interim reports and had threatened what amounted to a “legislative go-slow” was a major escalation in the political battle. One could almost hear the political alarm bells ringing, not only in the Presidency, but also in Luthuli House.
At this point the Minister fired back, but this time with some very heavy- calibre political weapons which included the Deputy President Kgalema Motlanthe, the Leader of Government Business and Tony Yengeni, chairperson of the ANC NEC’s subcommittee on peace and stability.
In the end, the ANC NEC’s subcommittee pronounced ominously that: “We take a dim view of ANC deployees who make premature public announcements on the Defence Force Commission’s interim report before all due processes are concluded.” Mr M S BOOI: Hon Chairperson, order!
The HOUSE CHAIRPERSON (Mr K O Bapela): What is your point of order, hon member?
Mr M S BOOI: I thought that we were debating the Defence Amendment Bill, not these issues. This debate has nothing to do with the issues he is raising. If I were chairing, I would have reflected totally differently on the issue. [Interjections.] This has nothing to do with the Defence Amendment Bill that has been presented. [Interjections.]
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon members, I can’t hear now. You are making a noise.
Mr M S BOOI: What I’m saying, Chairperson, is that the issues the member is dealing with have nothing to do with the Defence Amendment Bill. [Interjections.] They have never been debated anywhere, and the things that he is reflecting on are misleading the House. They have nothing to do with anything. He is talking more about press statements than about what happened within the committee itself.
Mr M J ELLIS: Mr Chairman, on point of order, sir. The hon Booi cannot stand up and say that the member is misleading the House. The hon member is making a speech. Under what circumstances does the hon Booi say that this member is misleading the House? That is unparliamentary. [Interjections.]
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon member, I do not want to go into issues of misleading of the House, because there is still an outstanding ruling that is going to come to the House. So, we will then come before that issue later, combining it with the other one. But for now, the member should continue with his speech. I think that he was just describing the processes that led to the Bill itself being concluded. [Applause.]
Mr D J MAYNIER: Thank you, Chairperson. As the hon member often likes to advise me: Be patient; I will get round to it. In the end, the ANC NEC’s subcommittee pronounced ominously that, “We take a dim view of ANC deployees who make premature public announcements on the Defence Force Commission’s interim report before all due processes are concluded. We caution that such acts border on ill discipline.”
The implication for ruling party members on the portfolio committee was clear: back down or you may be disciplined. With that the portfolio committee, with the exception of me, then furiously waved their white handkerchiefs and effectively surrendered to the Minister. [Interjections.]
In the end, democratic centralism of the ruling party made sure that Parliament was subordinate to the party, and in so doing undermined our constitutional democracy.
Ruling party members of the portfolio committee had effectively been brought back into line by what amounted to a political sjambokking by the Minister. So it was not long before the portfolio committee snapped to legislative attention and began deliberations on the Defence Amendment Bill. But after their political sjambokking, ruling party members of the portfolio committee appeared to get such a big “skrik” [fright] that they would not contemplate suggestions for any amendments to the Defence Amendment Bill. In the end, the Defence Amendment Bill was rammed through the Portfolio Committee on Defence and Military Veterans.
We support the establishment of the Defence Force Service Commission, because it will go some way towards improving conditions in the Defence Force. But we have reservations.
The fact is that in terms of this legislation the Minister has wide powers to appoint members of the commission, to intervene in the work of the commission and to terminate the employment of members of the commission. The commission will also be accountable to the Minister and not to the Minister and Parliament. Annual reports should not ominously contain: “Confidential information that may be detrimental to national security.” Taken together, this means that there is a danger that the commission will end up beyond the scrutiny of Parliament. Moreover, the fact is that the portfolio committee was advised that the section 55 amendment may possibly be unconstitutional.
Let me conclude with a cautionary note. We must not raise expectations of the National Defence Force Service Commission to unreasonable levels. The National Defence Force Service Commission will not and cannot solve the service condition crisis in the Defence Force on its own. We have to ensure that the chain of command functions effectively and deals with service condition problems before they explode on the streets, as in the protest march in front of the Union Buildings.
But in the end, we support the establishment of the Defence Force Service Commission, because it will go some way towards improving service conditions. This is a step in the right direction, and for that reason we support the Defence Amendment Bill with reservations. I thank you. [Applause.]
Mna L J TOLO: Mohlomphegi Modulasetulo, pele ke tšwela pele ka Molaokakanywa wa rena, ke rata go phošolla temana ye nngwe. Ke gopola gore Tona ya tša Tšhireletšo le Bagale ba Seš ole o imelwa ke kgoro ye ya gagwe. Ke a dumela gore ba swanetše ba mo fetole. Ke a ikwa ge ke bolela ka tsela ye. Ke bolela se ka lebaka la gore ke ile ka mmotšiša potšišo re le kopanong gore na ke kae moo mašole a nago le mokgatlo lefaseng – kontinenteng le ditšhabatšhabeng. Tona o ile a palelwa ke go araba potšišo ye gomme a re ke ye go botšiša mopresidente wa Cope, Khomoreiti Terror Lekota. Le lehono o sa dutše a bolela ka tsela ye. Se se bontšha gabotse gore o a imelwa. Ke gopola gore ba mo humanele se sengwe se bonolo. Le ga bjale ga se nke a nkarabe. Ke sa letetše karabo.
Tona, re le ba Cope re thekga Molaokakanywa wo. Eupša ke rata go laetša gore karolo 62(c) go Molaokakanywa e bolela ka ga go hlongwa ga komiti yeo e swanetšego go bopša ke banna le basadi. Se se bohlokwa. Eupša re swanetše go hlokomela gore go se šome taba ya go kgetha ka boleloko gomme go kgethwe batho bao ba nago le bokgoni bjalo ka seo se diragetšego dikgethong tša khomišene ya lebakanyana yeo e lego gona. E na le banna le basadi bao ba nago le maikarabelo.
Ge re ka šoma ka boleloko, re bea naga ya gaborena tseleng yeo e sego yona. O tla humana motho a se na tsebo eupša a fiwa mošomo wo itšego ka gore e le leloko la ANC. Ka mantšu a mangwe, gore motho yo a gole ke phošo.
Ge re thekga Molaokakanywa wo re thekga naga ya gaborena gore e sepele gabotse. Mohlomphegi Booi o boletše ka mekgatlo. Setšweletšwa sa Cosatu se ile sa nkgakantšha. Ga se se gakantš he nna ke le noši. Cosatu e gapeletša gore mokgatlo wa mašole o akaretšwe go Cosatu. Se se ra gore mokgatlo wo o ka gare ga mokgatlo wa dipolotiki gomme o tla ba le kgwerano le ANC. Taba ye ga e gabotse. Mašole a swanetše gore a ikemele ka bowona. Ke a rena ka moka. Re le ba komiti, ga se re dumelelane le taba ya mohuta wo. Ba laeditše gore ge re sa dumelelane le taba ye ba tla tšea kgang le rena pele ga Kgorotsheko ya Molaotheo. Re le setšhaba sa Afrika-Borwa, re duma gore re be ngatana e tee tabeng ye.
Tona, komiti ya khomišene ye e tlogo kgethwa e bohlokwa. Mašole a rena a na le mohola, gomme megolo ya bona e swanetše go hlokomelwa. Go bolela nnete, seo re se bonego se diragala kua Union Building ga se botse. Re dira boipiletšo bja gore mašole e be mohlala wo mobotse bathong. Re le ba Cope re rata mašole a rena. Eupša go a baba ge mašole a rena a emelela a šwahla Union Building mola e le bona ba swerego dibetša tša rena. Bjale, re dira boipiletšo bja gore ba be le maitshwaro a mabotse.
Eupša re swanetše go kgonthišiša gore mašole a rena a a kgotsofala. Re swanetše go leka go hlokomela megolo ya bona le moo ba šomelago gona gore tše ka moka di sepele ka tshwanelo. Le ge karolo 62(c), temaneng ya pele go fihla go ya boraro, e laetša gore go be le banna le basadi tabeng ya go kgetha komiti, re swanetše re lebelele le taba ya go akaretša merafe ye mengwe komiting ye. [Tšhwahlelo.] Ke a leboga. [Legofsi.] (Translation of Sepedi speech follows.)
[Mr L J TOLO: Hon Chairperson, I would first like to correct something, before I continue with the Bill. I think the Minister of Defence and Military Veterans is unable to manage this department and should therefore be replaced. [Interjections.] I hear what I am saying. I asked the Minister one day in a meeting to tell me of any place in the world where members of the Defence Force are affiliated to a union. The Minister did not give me an answer, but instead told me to go and ask the Cope president, Comrade Terror Lekota. She is still repeating the same thing today and this shows that she is unable to manage the department. I think they should find her something easier to manage. Even now she has not yet answered me; I am still waiting for an answer.
Cope supports the Defence Amendment Bill. According to section 62 (c) of the Bill, we have to establish a committee and in that committee both males and females have to be represented. We have to nominate people according to their competency, but not according to their political affiliations. We nominated competent people in the current interim commission. The members of the current interim commission are responsible men and women. Cadre deployment is unacceptable because it will mislead the country. People should be employed based on their competency and not on the fact that they are ANC members.
By supporting this Bill we are also supporting the smooth running of things in our country. Hon Booi talked about trade unions and we are confused by the fact that Cosatu is forcing the SA National Defence Union to join the alliance, meaning it will have political alliance with the ANC. We are against this as the committee members because the SA National Defence Force represents the whole nation. They even threatened to take us to the Constitutional Court if we do not agree on this matter. We would love to see the South African nation working together on this matter.
The committee that is to be nominated is very important. The members of the SA National Defence Force are playing an important role and therefore their needs have to be taken care of. We were not impressed by what happened at the Union Building and we therefore call upon the members of the SA National Defence Force to behave themselves well and be a good example to the public. We as Cope members do love the members of the Defence Force and we do not want to see again what happened at the Union Building.
We have to ensure that the members of the SA National Defence Force are satisfied with their salaries and the conditions of their work environment. Even if the first three paragraphs of section 62 (c) indicate that both males and females have to be represented in the committee to be nominated, we should also nominate across the diverse racial groups. [Interjections.] Thank you. [Applause.]]
Mr M A MNCWANGO: Hon House Chair, the Defence Amendment Bill seeks to ensure the contingent availability of all Reserve Force personnel at all times, inclusive of peacetime, as well as establish a permanent Defence Force Service Commission. Whilst the IFP strongly supports both of these initiatives, we also wish to raise the following reservations associated therewith.
One, the appointment of the commissioners by the Minister to the Defence Force Service Commission is most irregular, and will not lend itself to an accountable executive. Our country is already faced with enough incongruities regarding accountability in government. Surely, we should be looking at drafting legislation that enhances rather than detracts from an accountable executive.
Two, in terms of the current appalling service conditions faced by our servicemen and - women in the Defence Force, we note that the Defence Force Service Commission has been set up to address exactly these issues, but we urge the Minister to prioritise this aspect of her portfolio and implement immediate corrective actions herein.
Three, the IFP is still waiting, with bated breath, for the opportunity to revisit the issue of military veterans. We need to revisit the issue of the integration process, which left out a number of combatants who had sacrificed their future to join the liberation struggle. In addition, the IFP also believes that we need to relook at the definition of what constitutes a military veteran, so that we ensure that not a single person who contributed to the liberation and democracy of our country is left out.
In conclusion, this Bill is in a sense a natural evolution of our Defence Bill, the amendments seeking to address certain gaps and deficiencies therein. And we, as the IFP, although subject to our reservations as stated before, support the Bill. I thank you. The HOUSE CHAIRPERSON (Mr K O Bapela): Thank you, hon member. The hon N R Mabedla, I understand, is making her maiden speech, so if you could note that please. [Applause.]
Ms N R MABEDLA: Hon Chairperson, as an elected representative of the people in an open and democratic society based on human dignity, equality and freedom, the National Assembly should, according to section 42(3) of the Constitution, ensure government by the people under the Constitution. Government by the people is the essence of constitutional democracy, which in principle is underpinned by the maxim: “The voice of the majority shall prevail, and the voice of the minority shall be heard.” In this regard, while the majority enjoys prominence, the minority views should however be neither diminished nor disregarded.
In her 2009 budget speech, delivered to the National Assembly on 3 July, the Minister of Defence and Military Veterans said: “I stand very proud that there is not a single South African that needs medical assistance at affected public hospitals that is not provided such assistance, as the Defence Force has stepped in to fill the gap left by the striking medical practitioners.” This is but one of innumerous testimonies to the commitment of the Defence Force in not only securing South Africa, but also ensuring that the right to health and other rights in the Bill of Rights are protected, promoted and fulfilled.
As Parliament, we take our hat off in saluting the women and men of the SANDF for their display of gallantry and patriotism, particularly during the recent public-sector strikes, and at a time when the nation needed their help the most. Our commitment to building a national democratic society characterised by, inter alia, nonracialism and nonsexism is entrenched in section 9(3) of the Constitution, which states that: “The state may not 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.”
In this regard, the ANC is committed to ensuring that women are allowed to take their rightful place in every area of South African life without impediment or discrimination. It is in recognition that patriarchal oppression was also embedded in economic relations that its manifestations and consequences, such as open or hidden exclusion from positions of authority and power, need to be eliminated.
In that light we want to acknowledge the gender transformation that continues to take place in the department. We, however, want to urge the department to fast-track the process of gender transformation. All programmes of the Defence Force must begin to reflect the demographics of our population, and thus we need to have more women, especially black women, trained and employed as fighter-jet pilots, navy captains, engineers, etc. It is in our government departments, such as the Department of Defence and Military Veterans, that we can and should be able to reverse and defeat the twin legacy of apartheid and patriarchy.
Coherence and focus are essential to maximum output and successful achievement of outcomes. A Defence Force management should in this regard be empowered to exercise full authority over all members of the Defence Force at all material times. However, this is currently not the case with our Defence Force, as it currently has limited powers when it comes to Reserve Force members.
The Reserve Force currently serves on a voluntary basis and renders services in terms of a contracted period. Furthermore, members of this force have no statutory obligation to report for training, exercises or any deployment for border-line control or peacekeeping purposes. The Reserve Force can only be compelled to serve in times of war, states of emergency or states of national defence.
However, if the Reserve Force is to serve as a force multiplier, it is critical that the Reserve Force members are compelled to serve once they have volunteered and when required by the SANDF both for training and operations. Enforcing of individual contracts through courts consumes a lot of time. Certainty demands that a matter of service in the Defence Force should not be left to the whims of an individual but to legislation. This approach will have the effect of eliminating contractual disputes at a later stage. In light of this background, as the ANC we support this amending Bill. I thank you. [Time expired.] [Applause.]
Mr B H HOLOMISA: Chairperson, hon Ministers and hon members, from reading the daily newspapers and the department’s annual report we are deeply concerned about whether our Defence Force is in a state of readiness. Whilst we welcome this Bill, it should be noted, however, that it will not produce the desired results if government does not view military security as one of its priorities.
It would be prudent for the Department of Defence and Military Veterans to immediately produce a new Defence Force review, which would enable government to determine where Defence fits in in terms of national priorities. This is necessary since the previous review is 12 years old and does not take into account the Defence Force’s mandate to participate in peacekeeping missions, nor its renewed border patrol duties.
It should be clear to everybody that by approving this Bill, we are endorsing a general practice all over the world, namely, that a Defence Force is a unique service, requiring a special human resources legal framework. The provisions in this Bill for the appointment of a permanent Defence Force Service Commission is intended to ensure that this special legal framework is properly managed.
The success of this Bill will largely depend on the readiness and willingness of the Defence Force leadership. There also needs to be closer co-ordination between the Department of Defence and Military Veterans and the Department of International Affairs, to ensure that the Defence Force is not committed to duties for which it has no budget, training or equipment.
Finally, one of the long-term human resource factors that needs consideration is the career prospects of soldiers. What is being done to provide soldiers with the skills that will help them find employment once they retire from the Defence Force? We hope that this Bill will make it easier and quicker to address the grievances of soldiers as well. The UDM supports the Bill. I thank you. [Applause.]
Mnr P J GROENEWALD: Agb Voorsitter, daar is nie twyfel dat die instelling van ’n permanente militêre dienstekommissie die korrekte ding, op die regte tyd en op die regte plek is nie. Inderdaad ja, ek wonder wat dink die agb Mosiuoa Lekota, die voormalige Minister van Verdediging, as hy hier sit en na al hierdie kritiek luister. Ek wil vir die vorige Minister sê dat hy die Weermag laat verrot het. Dit is nie ’n goeie ding om teen u naam te hê in die geskiedenis nie. Dit is dus nodig dat ons hierdie kommissie het. (Translation of Afrikaans paragraph follows.)
[Mr P J GROENEWALD: Hon Chairperson, there is no doubt that the introduction of a permanent military service commission is the right thing, at the right time and in the right place. In fact, I wonder what the hon Mosiuoa Lekota, the former Minister of Defence, is thinking as he sits here and listens to all this criticism. I want to tell the former Minister that he let the Defence Force rot away. That’s not a good thing to have against your name in history. So it is necessary for us to have this commission.]
The FF Plus, however, differs on clause 2: the definition of the military command. That was thumb-sucking. There are no direct criteria to say that it is lieutenant generals and upwards. That is not acceptable. What happened is that the Military Command Council was taken with the exclusion of the commander of the reserve forces. That is, in effect, what it is.
As lid van die kommissie wil ek vandag vir die agb Minister sê dat ’n Lid van die Parlement – en dis my persoonlike ervaring – nie die tyd het om ook ’n lid van die kommissie te wees nie. Daardie lid gaan óf sy parlementêre pligte óf die werk van die kommissie laat skade ly. Dink daaraan.
Minister, dit is ongelukkig ook so dat ons vir mekaar moet sê dat die verslae van die bestaande kommissie wel ’n bepaalde leemte gelaat het. Die agb Maynier is reg rakende sekere goed wat hy sê, alhoewel ek verskil oor ander aspekte.
Wat ons wel vasgestel het is dat dit ’n werklikheid is dat ’n portefeuljekomitee nie die mag het om ’n Minister te dwing om ’n verslag daar te stel voor dit nie by die Kabinet was nie. Dis ’n leemte in die parlementêre Reëls waarna gekyk moet word. As die Minister dit gebruik, dan is sy reg oor wat dit is. Hierdie wetsontwerp bewys nou egter dat daar ’n jaarlikse verslag van die kommissie aan hierdie Parlement voorgelê moet word. Dan sal ek sê dis beter om voort te gaan om hierdie wetsontwerp goed te keur en die VF Plus sal dit ondersteun. (Translation of Afrikaans paragraphs follows.)
[As a member of the commission I can tell the Minister today that a Member of Parliament – and this is my personal experience – does not have the time to be a member of this commission as well. That member will harm to either his parliamentary duties or the work of the commission. Keep that in mind.
Minister, unfortunately it is also true that we must admit to each other that all the reports of the current commission have left a certain gap. The hon Maynier is correct regarding some of the things he has said, although I differ on other aspects.
But we have determined that it is a reality that a portfolio committee does not have the power to force a Minister to make a report available before it has gone to Cabinet. This is a deficiency in the parliamentary Rules that should be investigated. If the Minister should use it, she will be correct in that regard. This Bill now proves, however, that an annual report by the commission must be submitted to this Parliament. I would therefore say it is better to proceed and agree to this Bill and the FF Plus will therefore support it.]
Mr A M MAZIYA: Hon Chairperson, hon Minister, Members of Parliament, I want to start my speech by quoting from the summary of the minority judgment in the Dikoko case on ubuntu by Judge Albie Sachs. I quote:
Ubuntu is more than just a phrase to be invoked from time to time to add a gracious and affirmative gloss to a legal finding already arrived at. It is intrinsic to and constitutive of our constitutional culture. Historically, it was foundational to the spirit of reconciliation and bridge-building that enabled our deeply traumatised society to overcome and transcend the divisions of the past. In present-day terms, it has an enduring and creative character, representing the element of human solidarity that binds together liberty and equality to create an affirmative and mutually supportive triad of central constitutional values.
Ubuntu is indeed South Africa’s gift to the world which transcends race, class, culture and gender barriers. Ubuntu is the glue that keeps humanity together because by affirming “I am because you are,” imposes an obligation on everyone to not only be his brother’s keeper, but to be ready to lay down his life for the sake of his brother or sister.
I venture to say that no greater form of humanity and no greater form of patriotism than the willingness to lay down his life for the sake of others can be demonstrated by anyone. It takes an exceptional character to demonstrate hatred for a system that thrives on oppressing and segregating the indigenous and the majority, not by rhetoric and well-sounding words, but by taking up arms against all odds to fight against the system.
Indeed, no amount of love and ubuntu can surpass the action and words of the young guerrilla, Solomon Kalushi Mahlangu, when he faced the gallows of apartheid executioners and when he said with a daring voice, and I quote:
Mama, tell my people I love them. My blood will water the tree of freedom. We shall overcome, we shall overcome someday. Deep in my heart, I do believe we shall overcome.
[Applause.]
In her 2009 budget speech, with reference to plans then afoot to establish the Department of Military Veterans and directing herself to the veterans, the Minister said, and I quote:
It is indeed a poignant and significant moment for all of us who sit in these Chambers and craft laws, secure in democracy which we owe to our veterans. It has taken us as a government a long time to get to this point. We recognise that without you, we would not be who we are, where we are. Finally, you are in your rightful place and that is cause for celebration.
I stole from your words, Minister.
The formation of uMkhonto weSizwe, MK, on 16 December 1961 was a response to the brutality of the apartheid regime towards peacefully demonstrating civilians, as evidenced by the merciless shooting of the Sharpeville and Langa peaceful demonstrators. From thenceforth, MK continually attacked centres of apartheid symbolism, and the South African Defence Force, SADF, and its agents were at pains - running helter-skelter – to try to neutralise the elusive and agile MK guerillas.
Arguably, the turning point was the memorable humiliation and defeat in the 1980s of South African Defence Force, SADF, by MK and Cuban soldiers at Cuito Cuanavale in Angola. The battle of Cuito drove the regime to the negotiation table, whose outcomes were, among other things, the integration of the armed forces under one wing … [Interjections.]
Mr P J GROENEWALD: Chairperson, on a point order: I just want to ask to which clause the hon member is referring in his speech because there were complaints from the hon Booi that there was no reference to the Bill just now. I did not see uMkhonto weSizwe in there. I did not see Cuito Cuanavale in there. Which clause is he referring to?
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon member, that is not a point of order. It is the nature of the debate. Could we allow the member to continue?
Mr A M MAZIYA: Hon Groenewald, just listen. I know you were a soldier at the time. It should be appreciated that the integration of former blood enemies under one flag and command and control had and still continues to have its challenges and casualties. It is common cause that former MK and Apla - Azanian People’s Liberation Army - members were not receiving treatment equal to that of former SADF and TBVC states’ soldiers.
This kind of discrimination has demonstrated itself in disparities and opaqueness in ranking of soldiers, remuneration and other service benefits. It was indeed as if the liberated had turned their backs against their liberators. What a painful sight it was to behold those who sacrificed their future and put their lives on the line to liberate their people, being relegated to the peripheries and margins of the very society they fought to liberate.
This Bill offers an opportunity to us as members of this august House of Parliament to demonstrate ubuntu to sons and daughters of South Africa who have dedicated their lives to and have vowed to even put down their lives in order to secure this hard-won democracy. It is now our turn as legislation crafters to demonstrate our heartfelt gratitude and acknowledgment for the sacrifices of the gallant men and women of the SA National Defence Force, SANDF. We would not be who we are and where we are.
The Bill establishes a Defence Service Commission whose functions, inter alia, will be to make recommendations to the Minister on improvements in salaries and service benefits; make recommendations to the Minister on policies in respect of conditions of service; consider, among other things, the rank structure of the Defence Force; and also consider, among other things, affordability of different levels of remuneration.
The commission is but one step towards fair and equitable treatment of the members of the Defence Force, not only verbally, but materially. The effect of the commission will be to improve the employment conditions of all Defence Force members. It is the commission that, through its investigations and consultations with members of the Defence Force and any other interested person or body as provided for in section 62(b) of the bill, will recommend to the Minister a workable plan to improve service conditions … [Time expired.] [Applause.]
The HOUSE CHAIRPERSON (Mr K O Bapela): Order! While the Minister comes to the podium, I want to say that the hon member was quoting Solomon Kalushi Mahlangu, and I saw some members remonstrating with this. I hope it is parliamentary, and will not be regarded as unparliamentary. Thank you. Hon Minister …
The MINISTER OF DEFENCE AND MILITARY VETERANS: So, do I understand you to say this is parliamentary? Thank you, Chairperson.
Chairperson, I wanted to start off with the question asked by the hon Groenewald as to what relevance the input of the hon Maziya has on this Bill.
I was actually touched by the passion that the hon Maziya has for the Defence Force. I’m touched by the passion that he brings to his work; and I want you to compare it to the egotistic, vacuous rantings of some other member that we have in the committee.
Who could I be referring to? I wonder if Parliament allows me to be general. Just take any other, and if you feel worried about people who are vacuous then perhaps you have a guilty streak in you. However, I want to thank the hon Maziya for what he has said. I want to thank him for constantly reminding us that we are here because people sacrificed their lives for us to be here, at all times. [Applause.] This is what governance is about. We’ve promised our people a better life. In this particular case, we promised the Defence Force a better life. Thank you very much, hon Maziya.
I also want to thank the hon Mabedla on her maiden speech, putting a feminine touch on the fact that we have women in the Defence Force. I think it was a very good maiden speech. Hon Mabedla, keep it up; you make me very proud. [Applause.]
Hon Holomisa, we are seized with the matter of the review of the White Paper to ensure that we are in line with the concerns that you have raised. We are also very concerned about it and want to make sure that our policies are in line with the issues that we have already taken on, especially the issues of a peacekeeping force. We worked very closely with the Defence Export Control Office, Deco, and we are attending to the matters that you raised as concerns.
Hon Groenewald, the definition we have for military command is not a thumb- suck. As I indicated to you, we came into a very sticky situation where the Constitution says the President shall appoint the military command. The Defence Act of 2002 is silent on this. In the absence of this, it means therefore that we fall back of what is provided by the Public Service.
What is provided by the Public Service is that we have to submit ourselves to putting up advertisements for people to fill those posts, something that, in fact, traditionally we do not do in the Defence Force. We had to come up with a definition that covered the problem and the lacuna that we faced. It was thoroughly discussed in the portfolio committee and this is what the portfolio committee agreed to. It is not a thumb-suck. You might not agree with it, but it is a three-star general who is commissioned by the President ultimately.
I wanted also to thank the chairperson and everybody else who has taken part in this debate. Finally, I was intrigued that here was an hon member from the DA, given the opportunity to express the position of the DA on an important matter such as this one. Instead, what he did was go off on something that sounded very much like a battle plan he had planned in his head when he couldn’t sleep - he was lying half-awake because he always has these schemes - going on about: “This is what we did; then they did that …” That to him, is more important than what we sit here to do: to legislate and ensure that the Defence Force in this particular case has a better life. [Applause.] This is what the ANC is here for.
We found a situation where it was necessary to move the Defence Force from where it is and put it in a situation where we can better attend to the uniqueness of this. What does he do? He goes on, on this egotistical trip: “This is what we did …” In fact, it becomes quite clear that the battle scheme came from him. Feeding the media, he became dial-a-mania a day. Any media which wants any quote, David will give a quote. Dial-a-quote from David and he will give you a quote. It did not work, because the institutions of governance are very clear. They are very clear, and this is what we followed.
The matter will not serve until it has served before the Cabinet. Right now, when dealing with the situation where the report is being completed, the report will be given to me. It will be tabled in Cabinet. It will be brought to you, and you will see and the country will see that that report had nothing to do – nothing to do - with this legislation; and you know that. But it offered you a tangent; it offered you a platform to sell yourself at the expense of what you should be doing. I think this is the most extreme form of unpatriotism you could ever come across. I thank you, Chairperson. [Applause.] Debate concluded.
Bill read a second time.
The House adjourned at 16:28. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 17 SEPTEMBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Introduction of Bills
(1) The Minister of Transport
a) Merchant Shipping (Safe Containers Convention) Bill [B 31 –
2010] (National Assembly – proposed sec 75) [Explanatory
summary of Bill and prior notice of its introduction published
in Government Gazette No 33390 of 16 July 2010.]
Introduction and referral to the Portfolio Committee on
Transport of the National Assembly, as well as referral to the
Joint Tagging Mechanism (JTM) for classification in terms of
Joint Rule 160.
In terms of Joint Rule 154 written views on the classification
of the Bill may be submitted to the JTM within three
parliamentary working days.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Correctional Services
(a) Report and Financial Statements of Vote 18 – Department of
Correctional Services for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 18 for 2009-2010 [RP 119-2010].
- The Minister of Water and Environmental Affairs
(a) Report and Financial Statements of the Trans-Caledon Tunnel
Authority (TCTA) for 2009-2010, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-2010.
(b) Report and Financial Statements of the Water Research
Commission for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2008-2009 [RP 188-2010].
National Assembly
- Portfolio Committee on Justice and Constitutional Development - legislative proposal
On 16 September 2010, the National Assembly gave permission for the
Portfolio Committee on Justice and Constitutional Development to
initiate legislation that will amend the Repeal of the Black
Administration Act and Amendment of Certain Laws Act, 2005. The
National Assembly also instructed the Portfolio Committee to publish
the full particulars of its legislative proposal in the Announcements,
Tablings and Committee Reports forthwith.
The Committee hereby tables the particulars of the proposed
legislation:
Repeal of the Black Administration Act and Amendment of Certain Laws Bill
To amend the Repeal of the Black Administration Act and Amendment of
Certain Laws Act, 2005, so as to substitute a date; and to provide for
matters connected therewith.
Parliament of the Republic of South Africa enacts as follows:-
Amendment of section 1 of Act 28 of 2005, as amended by section 1 of
Act 8 of 2006, section 1 of Act 13 of 2007, section 1 of Act 7 of 2008
and section 1 of Act 20 of 2009
1. Section 1 (3) of the Repeal of the Black Administration Act and
Amendment of Certain Laws Act. No 28 of 2005, is hereby amended by
the substitution in subsection (3) for paragraph (a) of the
following paragraph:
“(a) [30 December 2010] 30 December 2012; or”.
Short title and commencement
2. This Act is called the Repeal of the Black Administration Act and
Amendment of Certain Laws Amendment Act, 2010, and comes into
operation on 29 December 2010.
MEMORANDUM ON THE OBJECTS OF THE REPEAL OF THE BLACK ADMINISTRATION ACT
AND AMENDMENT OF CERTAIN LAWS AMENDMENT BILL, 2010
- PURPOSE OF BILL
The purpose of the Bill is to amend the Repeal of the Black
Administration Act and Amendment of Certain Laws Act, 2005 (Act No. 28
of 2005) in order to substitute a date.
- OBJECTS OF BILL
Section 1(3) of the Repeal of the Black Administration Act and
Amendment of Certain Laws Act, 2005 (Act No. 28 of 2005) (the Act),
provides that the remaining provisions of sections 12 and 20 and the
Third Schedule of the Black Administration Act, 1927 (Act No. 38 of
1927), will be repealed on 30 December 2010 or on such date as national
legislation to further regulate the matters dealt with in these
provisions has been implemented, whichever occurs first. These sections
deal with the judicial functions of traditional leaders.
The Traditional Courts Bill, which regulates the matters dealt with in
sections 12 and 20 and the Third Schedule of the Black Administration
Act, 1927, (Act 38 of 1927) is currently before the Portfolio Committee
on Justice and Constitutional Development. It is foreseen that the
Traditional Courts Bill will not be signed into law by the deadline of
30 December 2010. The Bill, consequently, intends extending the date of
the application of the provisions of sections 12 and 20 and the Third
Schedule of the Black Administration Act, 1927 to 30 December 2012.
The same deadline has been determined in section 1(2), (4), (5) and (6)
of the Act in respect of legislation which is administered by other
Departments, namely the Departments of Rural Development and Land
Reform and Cooperative Governance and Traditional Affairs. These
deadlines are, likewise, being extended from 30 December 2010 to 30
December 2012.
- FINANCIAL IMPLICATIONS FOR STATE
None.
COMMITTEE REPORTS
National Assembly
-
Fifth Report of the Standing Committee on Public Accounts on the Report of the Auditor General on the 2008/09 Financial Statements of the Compensation Fund, dated 25 August 2010
-
Introduction
The Standing Committee on Public Accounts (the Committee), heard evidence on and considered the contents of the Annual Report and the Report of the Auditor-General on the 2008/2009 financial statements of the Compensation Fund (the Fund). The Committee noted the disclaimed audit opinion, highlighted areas which required urgent attention of the Accounting Authority, and reports as follows:
- Governance Issues
The Auditor-General reported the following: a) “The Audit Committee met ten times during the year, as required by Section 77 of the Public Finance Management Act (No. 1 of 1999). b) The Audit Committee noted internal control deficiencies and that a number of these matters had been reported in previous years. c) The entity utilised the Internal Audit Unit of the Department of Labours. However, due to vacancy constraints, the Internal Audit Unit could only execute 10% of the operational plans. d) A vacancy rate of 41.6% was reported at senior management level, including the leadership in the Finance Unit. e) In addition, personnel within the Finance Unit did not have adequate skills. A permanent Chief Financial Officer was only appointed in September 2009”.
The Committee noted that significant unresolved issues led to a disclaimer which could have been resolved had an effective internal audit function been in place. The Committee recommends that the Accounting Authority ensures that: a) The internal audit function is adequately staffed as a matter of urgency, b) The Fund establishes an effective Audit Committee that acts upon control deficiencies and takes corrective action where necessary; c) The Audit Committee takes into consideration work done by internal audit; d) Disciplinary action is taken against officials who persist in under performing; e) The Fund employs personnel with adequate skills; and f) The management is urged to rectify staff shortages as a matter of urgency.
- Basis for accounting opinion The Auditor-General noted various instances where it was not possible to express an opinion and which led to a disclaimer.
With regard to “revenue contributions and assessment debtors, a) “Materially incorrect assessments recorded by the Fund; b) Inadequate monitoring of controls over overdue assessment debtors resulted in the accumulation of incorrect provisional assessments and materially incorrect debtors with credit balances; and c) Lack of a proper management framework for the continuous review of the ageing of assessment debtors which resulted in an unreliable ageing of assessment debtors being applied for purposes of determining the provision for credit losses”.
The Committee recommends that the Accounting Authority ensures that: a) Management understands and exercises oversight responsibility related to financial reporting and related internal controls; b) Management designs and implements internal controls to ensure that revenue contributions and assessment of debtors are performed timeously; c) Professionally skilled personnel are used to perform duties and senior staff evaluate work of subordinates; and d) Proper evaluation of managerial abilities is undertaken prior to the appointment of any staff to a managerial position, and that managers who do not possess the required management skills to perform oversight be relieved of their management duties.
With regard to “bank reconciliations, the Fund transferred the un- reconciled differences from its compensation and pensions bank reconciliations to a suspense account. At the end of the year, a balance amounting to R 86, 4 million remained in the suspense account. The large volume of transactions did not allow management to reconcile the bank balances with the general ledger and clear the suspense account prior to the finalization of the financial statements”.
The Committee recommends that the Accounting Authority ensures that: a) Ongoing monitoring and supervision are undertaken to enable management to ensure internal control over financial reporting; b) Internal control deficiencies are identified and communicated to those responsible for taking corrective action; and c) The suspense account is cleared within three months and thereafter monthly, and that proper follow-ups are made by the relevant senior officials.
With regard to claims incurred, the Auditor-General reflected that a backlog in the scanning of documentation onto the the Fund’s electronic document management system and inadequate management of supporting documentation for claims incurred have resulted in the Fund being unable to retrieve appropriate documentation in support of claims incurred. In addition, an unexplained difference of R81,6 million remained at year end between the total claims approved per the claims system and the general ledger”.
The Committee recommends that the Accounting Authority ensures that: a) Adequate steps are taken, with due regard to the costs thereof and the potential effectiveness in mitigating risks to the achievement of financial reporting objectives; b) Significant information is identified, captured and used at all levels of the entity and distributed in a form and within a timeframe that supports the achievement of financial reporting objectives; and c) Steps are taken to recover losses incurred due to a backlog and inadequate management of supporting documentation for claims.
With regard to accounts payable, the Auditor-General indicated that “the Fund was unable to submit creditor reconciliations and analysis or appropriate detailed listings of creditors at the end of the year, amounting to R89.6 million. In addition, the Fund did not accrue interest on unclaimed monies due to beneficiaries”.
The Committee recommends that the Accounting Authority ensures that: a) Adequate controls are implemented to ensure efficient and effective resource usage as measured by the extent to which specific control objectives are achieved; b) Internal control deficiencies are identified and communicated timeously; c) Monthly creditors’ statements are obtained from the procurement creditors and reconciliation is performed; and d) Disciplinary action is taken against staff responsible transgression.
- Property, Plant and Equipment
The Auditor-General indicated that “the Fund revalued its Compensation House Property as at 31 March 2009. However, the value of the property disclosed in the financial statements differs by R55.9 million from the valuation amount. According to accounting standards property, plant and equipment require that if a category of assets is revalued all assets in the category need to be revalued, as the Fund in Bisho did not obtain a valuation of its property”.
The Committee recommends that the Accounting Authority ensures that: a) Management and employees are assigned appropriate levels of authority and responsibility in ensuring that they understand accountability to facilitate effective internal control over financial reporting; b) Officials are provided with in-service training; and c) All records are updated in order to keep staff updated on the relevant information.
- Disclosure of Information
The Auditor-General reported that “the Fund did not disclose the following in respect of its financial instruments as required by Statement of Generally Accepted Accounting Practice, IFRS7 (AC 144):
a) The classification of financial assets and liabilities into the
required categories;
b) The maximum exposure to credit risk on trade and other
receivables;
c) A reconciliation of movements in the provisions for credit losses;
d) A comparison of the carrying amount and fair value for each class
of financial asset and liability;
e) The methods and assumptions applied for valuing financial assets
and liabilities;
f) For each type of risk arising from financial instruments,
quantitative data about its exposure to that risk; and
g) A sensitivity analysis for each type of market risk to which the
Fund is exposed”.
The Committee recommends that the Accounting Authority ensures that:
Disciplinary action is taken against staff who fail to perform their duties satisfactorily.
- Non-compliance with Laws and Regulations
The Auditor-General reported the following: a) “Ineffective, inefficient and lack of transparent functioning of financial and risk management and internal control systems as required by section 53(1)(a)(ii) of the Public Finance Management Act, 1999 (Act No 1 of 1999) (PFMA); b) Lack of adequate system for bank and cash reconciliations as required by paragraph 31.1.1 of the National Treasury Regulations; and c) Internal control deficiencies”.
The Committee recommends that the Accounting Authority ensures that: a) The fund has a clear understanding of the risks assessed, self assessment processes, reviews by the internal audit function and an effective audit committee; b) Vacant posts in the internal audit unit are filled to ensure compliance with PFMA; c) Improves its organisational structure by addressing areas of responsibility and establishing lines of reporting in order to support effective internal control over financial reporting; and d) Steps are taken to ensure that written procedures, record keeping, management reviews and asset safeguards are not segregated to prevent fraudulent financial data and asset misappropriation.
- Conclusion The Committee further recommends that the Executive Authority submit a progress report on the implementation of the above recommendations to the National Assembly within 60 days of the adoption of this report by the House.
Report to be considered
-
Tenth Report of the Standing Committee on Public Accounts on the Report of the Auditor General on the 2008/09 financial statements of the Department of Public Works and its Property Management Trading Entity, dated 25 August 2010
-
Introduction
The Standing Committee on Public Accounts (the Committee) heard evidence on and considered the contents of the Annual Report and Report of the Auditor- General on the 2008/09 financial statements of the Department of Public Works. The Committee noted the qualified audit opinion, highlighted areas which required urgent attention by the Accounting Authority and reports as follows:
- Movable tangible capital assets and minor assets
The Auditor-General noted various instances where the existence, completeness, rights and obligations as well as accuracy of assets in the asset register could not be verified.
The following were reported: a) “Moveable tangible assets could not be supported by a complete asset register and minor assets could not be confirmed due to the incomplete asset register; b) Not all immovable assets were accounted for in the asset register; title deeds and stand numbers for some of the assets were not indicated on the asset register; c) The Departments of Public Works, Rural Development, and Provincial Departments as custodians were tasked with leading a government-wide initiative to complete the vesting of ownership of state owned land; and d) The adjustment of intangible assets consisted of software purchased during the 2005/06 financial year to an amount of R40,3 million. At the time of reporting the software had not been utilised”.
The Committee recommends that the Accounting Officer ensures that: ▪ Management understands and exercises oversight responsibility in relation to financial reporting and internal control; ▪ Management undertakes a needs’ assessment before any assets are purchased; and ▪ Progress with regard to the government-wide initiative in respect of the vesting of ownership of state owned land is continually monitored and reported on annually.
- Non-compliance with applicable legislation
The Auditor-General reported the following: “The Department did not comply with applicable legislation and regulations, inter alia: a) PFMA - the management and safeguarding of assets; b) Treasury Regulations - persons in charge at pay points did not verify on the date of payment that all persons listed on the payroll report were entitled to payment; c) Treasury Regulations - immovable state property was not always let at market-related tarriffs; d) Treasury Regulations - evidence was not provided that transfers and subsidies to entities were applied for the intended purposes; e) Public service regulations - cases were noted where senior management positions were advertised and filled before the job evaluation was approved; and f) Division of Revenue Act - the Department did not evaluate the performance of programmes funded by conditional grants and report thereon to Treasury within four months after the end of the financial year as prescribed by the Division of Revenue Act (No. 12 of 2009)”.
The Committee recommends that the Accounting Officer ensures that:
a) Ongoing monitoring and supervision are undertaken and that controls are present and functioning;
b) Officials are held accountable and that disciplinary steps are taken against those who contravene prescripts; and
c) Management implements a performance management system in terms of which staff performance is evaluated against key performance indicators to enable management to take appropriate steps based on agreed deliverables.
- Investigations
The Auditor- General reported on the following: a) “The process followed with the procuring of the SAS Business Intelligence Solution; b) Allegations of irregular appointments and management practices; c) The process followed with the appointment of service providers for the asset verification and condition assesment project; and d) Allegations of unauthorised changes in service providers’ bank details”.
The Committee recommends that the Accounting Officer ensures that: a) The Department finalises all pending investigations by ensuring that the necessary resources are made available;
b) Management understands and exercises oversight in respect of
financial reporting and internal controls; and
c) Investigation reports are submitted to SCOPA when finalised.
- Staff Establishment
The Auditor-General reported that “The marginal decrease in the vacancy rate (from 22 percent to 16 percent,) is insufficient and impedes service delivery”.
The Committee recommends that the Accounting Officer ensures that vacancies are filled urgently, so as to strengthen internal controls and improve service delivery.
- Governance Issues
The Auditor-General reported that “the Audit Committee saw the resignation of some members during the year, and new members were appointed on 31 May 2009”.
The Committee recommends that the Accounting Officer ensures that the Audit Committee becomes effective and oversees controls in order to eliminate non- compliance.
- Property Management Trading Entity
The Committee heard evidence on and considered the contents of the Annual Report and Report of the Auditor-General on the 2008/09 financial statements of the Property Management Trading Entity. The Committee noted an adverse audit opinion, highlighted areas which required the urgent attention of the Accounting Officer and reports as follows:
7.1 Inter-departmental receivables
The Auditor-General reported that “inter-departmental receivables owed by a number of national departments and national public entities amounted to R419 million (31 March 2008: R48 million). This has been outstanding for more than two years. Management did not implement appropriate steps to collect money owed and further did not assess the recoverability of the long-outstanding debts. The receivables amount disclosed is thus overstated by an unknown amount and the provision is understated due to the assessment not being performed”.
The Committee recommends that the Accounting Officer must ensure that: a) Disciplinary action is taken against staff who fail to perform their duties as required; b) Reasonable steps are taken to recover debts before they are written off; and c) Management understands and exercises oversight in respect of finances and related internal controls.
- Further Recommendation
The Committee is concerned with various government Departments’ failure to honour their debts to the Department of Public Works for services rendered on their behalf and has ordered the Property Management Trading Entity to forward the list of such defaulters. The Committee has already written to some of the defaulting Departments and entities seeking clarity on their non-payments.
- Conclusion
The Committee further recommends that the Executive Authority submits a progress report on the implementation of all the above recommendations to the National Assembly within 60 days of the adoption of this report by the House.
Report to be considered
-
Eleventh Report of the Standing Committee on Public Accounts on the Report of the Auditor General on the 2008/09 financial statements of the Government Printing Works, dated 25 August 2010
-
Introduction
The Standing Committee on Public Accounts (the Committee) heard evidence on and considered evidence on the Annual Report and the Report of the Auditor- General on the 2008/09 financial statements of the Government Printing Works (GPW). The Committee noted the qualified audit opinion, highlighted areas which required the urgent attention of the Accounting Officer, and reports as follows:
- Inventory The Auditor General reported the following: a) “Inventories state that the cost of inventories shall comprise all costs of purchase, conversion and other costs incurred in bringing the inventory to their present location and condition. b) A status report generated on the non-integrated stock system includes job tickets amounting to R2.784 million (2008: R4.278 million) which had not been properly allocated and included in the financial system. The GPW could not provide sufficient and appropriate audit evidence to confirm the accuracy of the applicable balances and accounts”.
The Committee recommends that the Accounting Officer ensures that: a) Control activities are regularly evaluated to guarantee that they are appropriate and working as intended; b) Reports are updated timeously when the job is completed to avoid delayed invoicing; and c) Explanations are provided by management for all the jobs that are still showing their status as work-in-progress.
- Accounts payable
The Auditor-General reported the following: a) “The Accounting Officer did not ensure that amounts included in the suspense accounts relating to payments received from debtors, were cleared and correctly allocated to the relevant debtor accounts on a monthly basis as required by Section 17.1.2 (b) of the Treasury Regulations. The balances for these accounts amounted to R22.383 million (2008: R16.620 million) at year-end. b) The goods received control account included long-outstanding amounts totalling R4.080 million (2008: R8.991 million).These amounts had accumulated as from 2005/06. Had these amounts been properly accounted for, payables would have decreased by R4.080 million (2008: R8.991 million), expenses decreased by R3.723 million and accumulated reserves increased by R357 million”.
The Committee recommends that the Accounting Officer ensures that: a) The implementation of policies and procedures to guarantee the clearance of suspense accounts to their relevant cost centres on a monthly basis takes place; and b) GPW improves its capacity in the creditors section by permanently designating employees who must perform monthly reconciliations of the suspense accounts in line with Section 17.1.2 (b) of the Treasury Regulations.
- Governance Issues
The Auditor-General reported the following: a) “The Internal audit unit of GPW did not have sufficient resources during the year and therefore the internal audit scope was very limited. b) This limitation also resulted in the Audit Committee not being able to fully comply with the Audit Committee’s requirements, such as the approval of an annual internal audit plan and the oversight of matters reported by the internal audit unit”.
The Committee recommends that the Accounting Officer ensures that: The functioning of the internal audit unit is strengthened, amongst other things, by providing appropriately high level reports to the relevant Executive Authority on a regular basis. Such reports must, as a minimum requirement, express a view on all internal control risks.
- Further Recommendations
The Committee recommends that the GPW Audit Committee develops an annual audit plan to address matters raised by the internal audit unit.
- Conclusion
The Committee further recommends that the Executive Authority should submit a progress report on the implementation all the recommendations to the National Assembly within 60 days after the adoption of this report by the House.
Report to be considered.
- Twelfth Report of the Standing Committee on Public Accounts on the Report of the Auditor General on the 2008/09 Financial Statements of the Companies Intellectual Property Office in South Africa, dated 25 August 2010
- Introduction
The Standing Committee on Public Accounts (the Committee) heard evidence on and considered the contents of the Annual Report and Report of the Auditor- General on the 2008/09 financial statements of the Companies Intellectual Property Registration Office in South Africa (CIPRO). The Committee noted the qualified audit opinion, highlighted areas which required the urgent attention of the Accounting Authority and reports as follows:
- Revenue
The Auditor-General reported the following: a) “CIPRO’s accounting policy of recognising revenue from annual returns on a cash basis was not consistent with the substance of the transactions and the accrual principle. b) CIPRO only recognised revenue for companies that had submitted their annual returns during the financial year and not for all companies that were liable to lodge a return. c) Consequently, revenue, accounts receivable, the accumulated surplus and the corresponding figures were understated.
The corresponding figures for 31 March 2008 have been restated as a result of an error discovered during the year ended 31 March 2009”.
The Committee recommends that the Accounting Authority ensures that: a) Policies and procedures related to financial reporting are established and implemented; b) Regular follow-ups are done on companies and close corporations that have not submitted their annual returns; c) Companies and close corporations that persist in not complying with the provisions of the Companies Act should are de-registered; d) An effective debtor’s management system is implemented for annual returns; and e) Ongoing monitoring and supervision are undertaken to enable an assessment of the effectiveness of internal control over finances.
- Fruitless and Irregular Expenditure
The Auditor-General reported that “the annual report reflected that an amount of R86 778 was identified as irregular as a result of the prescribed approval process not having being followed”.
The Committee recommends that the Accounting Authority ensures that: a) Strict rules and regulations are implemented to prevent irregularities and that disciplinary steps are taken against transgressors; and
b) No expenditure is incurred that is in conflict with the provisions of any law or prescripts.
- Investigations
The Auditor-General reported on the following:
With regard to “deficiencies in procurement process followed by SITA in accrediting suppliers on the list for contract 398 to supply Enterprise Content Management Solutions to CIPRO; a) Inaccuracies were noted in the calculations on the scoring sheets completed by SITA’s bid evaluation committee during the evaluation of tenders for contract 398. The sheets were not signed and it was impossible to determine whether these were combined scores or scores of individual members of the evaluation committee; b) No evidence could be submitted that the financial position/status of bidders had been evaluated before they were placed on SITA’s approved suppliers list; and
c) No business case had been approved for the tender by the Department of Public Service and Administration after consultation with the Government Information Technology Officers Council. SITA and the Department of Public Service and Administration did not comply with SITA’s regulations”.
The Committee recommends that the Minister of Public Service and Administration and the SITA Board of Directors must improve processes and regulations in the following areas:
a) SITA must improve contract administration by ensuring that score
sheets are processed accurately and are properly safeguarded and
that those responsible be held accountable in cases where this
standard practice is not adhered to;
b) Regulations must be improved to clearly state the responsibilities
of SITA and that of its clients with regard to a transversal
framing term contract and the evaluation of the financial
sustainability of suppliers; and
c) SITA must comply with procurement regulations in order to mitigate
a potential risk to government departments.
With regard to “deficiencies in process followed by CIPRO to procure the Enterprise Content Management (ECM) system a) The estimated vendor cost according to the business case for the tender was R141 million. The Auditor-General reported that the business case had been furnished only to the successful bidder for the ECM system and that some information in the proposal of the successful bidder was almost exactly the same the information in CIPRO’s business case. The tender prices of the various bidders ranged from R52 million to R181 million; b) The evaluation of the functional specifications was conducted by two evaluation teams. However, the bid evaluation committees were not appointed according to prescripts. Scoring by the two evaluation teams on certain functional criteria varied as much as 67% per criteria in instances where the scores were expected to vary very little; c) CIPRO did not evaluate the financial position of bidders as part of the process. According to CIPRO they accepted that, as part of SITA’s transversal framing term contract process, the financial stability of the various bidders would have been verified by SITA to ensure continuity and sustainability of project implementation; and d) According to the bid proposal, the design phase included the design of a blueprint, and once approved, the software could be procured. However, in the contract signed in March 2009 the stipulations of the proposal were changed and the software licences amounting to R56 million were paid in April 2009, although the blueprint was only approved in June 2009”.
The Committee recommends that the Accounting Authority assesses the risk of the supplier not being financially sustainable and should implement measures to address the related risks.
- Conclusion
The Committee noted that the Department of Trade and Industry has since cancelled the contract with the chosen bidder. The Committee commends the Minister for Trade and Industry for acting promptly in resolving the matter,
The Committee further recommends that the Executive Authority submits a progress report on the implementation of all the above recommendations to the National Assembly within 60 days of the adoption of this report by the House.
Report to be considered
MONDAY, 20 SEPTEMBER 2010
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Communications
(a) Final Acts of the International Telecommunications Union (ITU)
Plenipotentiary Conference, Antalya, 2006, tabled in terms of
section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum to the Final Acts of the International
Telecommunications Union (ITU) Plenipotentiary Conference, Antalya,
2006.
(c) Report and Financial Statements of Sentech Limited for 2009-
2010, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2010.
- The Minister of Finance
(a) Report and Financial Statements of Vote 7 – National Treasury
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 7 for 2009-
2010.
(b) Financial Statements of the Project Development Facility for
Auditors for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010.
(c) Financial Statements of the Office of the Technical Assistance
Unit for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010.
- The Minister of Justice and Constitutional Development
(a) Report and Financial Statements of the Department of Justice and
Constitutional Development on the Criminal Assets Recovery Account
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
224-2010].
- The Minister of Police
(a) Report and Financial Statements of Vote 22 – Department of
Police for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 22
for 2009-2010 [RP 163-2010].
TUESDAY, 21 SEPTEMBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
-
Resignation from SABC Board and request for filling of vacancy
a) A letter dated 8 September 2010 has been received from the Minister of Communications –
i) informing the National Assembly of the resignation of Ms B J Masekela, in terms of section 15(2) of the Broadcasting Act (No 4 of 1999), from the South African Broadcasting Corporation Board with effect from 31 October 2010; and ii) requesting the National Assembly to recommend a candidate for appointment, in terms of section 13 of the Broadcasting Act, for the unexpired portion of the period for which Ms Masekela was appointed, ie until 9 January 2015. Referred to the Portfolio Committee on Communications for consideration and report. -
Referral to Committees of papers tabled
1) The following papers are referred to the Portfolio Committee on
Justice and Constitutional Development for consideration:
a) Report of the South African Law Reform Commission on Privacy
and Data Protection – February 2009.
b) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate M T Masinga, an additional
magistrate at Umlazi.
c) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate L B Maruwa, an additional
magistrate at Daveyton.
d) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate D Jacobs, a magistrate at
Clocolan.
e) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate C M Dumani, a magistrate
at Graaff Reinet.
f) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate M K Chauke, an additional
magistrate at Pretoria.
g) Progress report in terms of section 13(3)(f) of the
Magistrates’ Act, 1993 (Act No 90 of 1993), on the provisional
suspension from office of Magistrate W J M Prinsloo, an
additional magistrate at Ermelo.
2) The following papers are referred to the Portfolio Committee on
Human Settlements for consideration and report. The reports of the
Auditor-General and Independent Auditors on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the National Housing
Finance Corporation Ltd for 2009-10, including the Report of
the Independent Auditors on the Financial Statements and
Performance Information for 2009-10.
(b) Report and Financial Statements of the Housing Development
Agency for 2009-10, including the Report of the Independent
Auditors on the Financial Statements and Performance
Information for 2009-10.
(c) Report and Financial Statements of the National Home
Builders Registration Council for 2009-10, including the Report
of the Auditor-General on the Financial Statements for 2009-10.
(d) Report and Financial Statements of the Rural Housing Loan
Fund for 2009-10, including the Report of the Independent
Auditors on the Financial Statements and Performance
Information for 2009-10.
(e) Report and Financial Statements of the Social Housing
Foundation for 2009-10, including the Report of the Independent
Auditors on the Financial Statements and Performance
Information for 2009-10.
(f) Report and Financial Statements of the National Urban
Reconstruction and Housing Agency for 2009-10, including the
Report of the Independent Auditors on the Financial Statements
for 2009-10.
3) The following paper is referred to the Joint Standing Committee on
Defence for consideration and to the Portfolio Committee on Defence
and Military Veterans:
(a) Letter from the President of the Republic, dated 27 August
2010, to the Speaker of the National Assembly, informing
members of the Assembly of the employment of the South African
National Defence Force for service in cooperation with the
South African Police Service and to assist other government
departments during the countrywide Public Service strike.
4) The following papers are referred to the Portfolio Committee on
Science and Technology for consideration and report. The reports of
the Independent Auditors and the Auditor-General on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
a) Report and Financial Statements of the Academy of Science of
South Africa for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and
Performance Information for 2009-10.
b) Report and Financial Statements of the National Research
Foundation for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10.
5) The following papers are referred to the Portfolio Committee on
Trade and Industry for consideration and report. The reports of the
Independent Auditors and the Auditor-General on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the National
Empowerment Fund for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and
Performance Information for 2009-10 [RP175-2010].
(b) Report and Financial Statements of the Small Enterprise
Development Agency for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(c) Report and Financial Statements of Export Credit Insurance
Corporation of South Africa Limited for 2009-10, including the
Report of the Independent Auditors on the Financial Statements
and Performance Information for 2009-10.
(d) Report and Financial Statements of the South African
National Accreditation System for 2009-10, including the Report
of the Independent Auditors on the Financial Statements and
Performance Information for 2009-10 [RP82-2010].
(e) Report and Financial Statements of the National Lotteries
Board for 2009-10, including the Report of the Auditor-General
on the Financial Statements and Performance Information for
2009-10.
(f) Report and Financial Statements of the National Gambling
Board for 2009-10, including the Report of the Auditor-General
on the Financial Statements and Performance Information for
2009-10 [RP196-2010].
(g) Report and Financial Statements of the Estate Agency
Affairs Board for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and
Performance Information for 2009-10.
(h) Report and Financial Statements of the National Credit
Regulator for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP154-2007].
(i) Report and Financial Statements of South African Bureau of
Standards for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP226-2010].
(j) Report and Financial Statements of the National Regulator
for Compulsory Specifications for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP80-2010].
(k) Report and Financial Statements of the National Consumer
Tribunal for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10.
(l) Report and Financial Statements of the National Metrology
Institute of South Africa for 2009-10, including the Report of
the Independent Auditors on the Financial Statements and
Performance Information for 2009-10 [RP214-2010].
(m) Report and Financial Statements of the Technology and
Human Resources for Industry Programme for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10.
n) Report and Financial Statements of the South African Council
for the Non-Proliferation of Weapons of Mass Destruction for
2009-10.
o) Report of the Consumer Affairs Committee (Cafcom) for 2009-10
[RP234-2010].
6) The following paper is referred to the Portfolio Committee on Trade
and Industry for consideration and report and to the Portfolio
Committee on Science and Technology. The report of the Independent
Auditors on the Financial Statements and Performance Information is
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Support Programme
for Industrial Innovation for 2009-10, including the Report of
the Independent Auditors on the Financial Statements and
Performance Information for 2009-2010.
7) The following papers are referred to the Portfolio Committee on
Trade and Industry:
a) Trade Agreement between the Government of the Republic of South
Africa and the Government of the State of Kuwait, tabled in
terms of section 231(3) of the Constitution, 1996.
b) Explanatory Memorandum to the Trade Agreement between the
Government of the Republic of South Africa and the Government
of the State of Kuwait.
c) Agreement on Economic, Commercial and Technical Cooperation
between the Government of the Republic of South Africa and the
Government of the State of Qatar, tabled in terms of section
231(3) of the Constitution, 1996.
d) Explanatory Memorandum to the Agreement on Economic, Commercial
and Technical Cooperation between the Government of the
Republic of South Africa and the Government of the State of
Qatar.
e) Bilateral Agreement on Economic, Trade and Technical
Cooperation between the Government of the Republic of South
Africa and the Government of the United Arab Emirates, tabled
in terms of section 231(3) of the Constitution, 1996.
f) Explanatory Memorandum to the Bilateral Agreement on Economic,
Trade and Technical Co-operation between the Government of the
Republic of South Africa and the Government of the United Arab
Emirates.
g) Trade Agreement between the Government of the Republic of South
Africa and the Government of the Republic of Yemen, tabled in
terms of section 231(3) of the Constitution, 1996.
h) Explanatory Memorandum to the Trade Agreement between the
Government of the Republic of South Africa and the Government
of the Republic of Yemen.
i) Report of the National Industrial Participation Programme –
Performance Review 2009.
8) The following papers are referred to the Standing Committee on
Finance:
(a) Government Notice No R381, published in Government Gazette
No 33171, dated 14 May 2010: Amendment of Schedule No 3 (No
3/660) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(b) Government Notice No R437, published in Government Gazette
No 33211, dated 28 May 2010: Amendment of Part 1 of Schedule No
1 (No 1/1/1405) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(c) Government Notice No R438, published in Government Gazette
No 33211, dated 28 May 2010: Amendment of Part 1 of Schedule No
1 (No 1/1/1406) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R439, published in Government Gazette
No 33211, dated 28 May 2010: Amendment of Part 1 of Schedule No
1 (No 1/1/1407) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No R440, published in Government Gazette
No 33211, dated 28 May 2010: Amendment of Schedule No 2 (No
2/325) in terms of section 56 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(f) Government Notice No R441, published in Government Gazette
No 33211, dated 28 May 2010: Amendment of Schedule No 3 (No
3/662) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(g) Government Notice No R454, published in Government Gazette
No 33211, dated 28 May 2010: Exemption in terms of section 74
of the Financial Intelligence Centre Act, 2001 (Act No 38 of
2001).
(h) Government Notice No 471, published in Government Gazette
No 33241, dated 4 June 2010: Exemption in terms of section 74
of the Financial Intelligence Centre Act, 2001 (Act No 38 of
2001).
(i) Government Notice No R622, published in Government Gazette
No 33382, dated 14 July 2010: Amendment of Rules (DAR/72) under
sections 49A and 120 of the Customs and Excise Act, 1964 (Act
No 91 of 1964).
(j) Government Notice No R623, published in Government Gazette
No 33382, dated 14 July 2010: Amendment of Schedule No 2 (No
2/326) in terms of section 56 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(k) Government Notice No R624, published in Government Gazette
No 33383, dated 15 July 2010: Amendment of Part 1 of Schedule
No 1 (No 1/1/1410) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(l) Government Notice No R604, published in Government Gazette
No 33370, dated 16 July 2010: Amendment of Part 1 of Schedule
No 1 (No 1/1/1409) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(m) Government Notice No R606, published in Government Gazette
No 33370, dated 16 July 2010: Amendment of Schedule No 3 (No
3/662) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(n) Government Notice No R616, published in Government Gazette
No 33370, dated 16 July 2010: Amendment of Schedule No 2 (No
2/327) in terms of section 56 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(o) Government Notice No R630, published in Government Gazette
No 33385, dated 23 July 2010: Amendment of Schedule No 4 (No
4/332) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(p) Government Notice No R639, published in Government Gazette
No 33385, dated 23 July 2010: Regulations made under section
121 of the Income Tax Act, 1962 (Act No 58 of 1962).
(q) Government Notice No R637, published in Government Gazette
No 33394, dated 23 July 2010: Amendment of General Notes in
Part 1 of Schedule No 1 (No 1/1/1411) in terms of section 48 of
the Customs and Excise Act, 1964 (Act No 91 of 1964).
(r) Government Notice No R638, published in Government Gazette
No 33394, dated 23 July 2010: Amendment of Schedule No 2 (No
2/328) in terms of section 56 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(s) Government Notice No R653, published in Government Gazette
No 33400, dated 30 July 2010: Amendment of Part 1 of Schedule
No 1 (No 1/1/1408) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(t) Government Notice No R655, published in Government Gazette
No 33400, dated 30 July 2010: Amendment of Part 1 of Schedule
No 2 (No 2/329) in terms of section 56 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(u) Government Notice No R656, published in Government Gazette
No 33400, dated 30 July 2010: Amendment of Part 2 of Schedule
No 2 (No 2/330) in terms of section 56 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(v) Government Notice No R672, published in Government Gazette
No 33423, dated 30 July 2010: Amendment of Rules (DAR/73) under
sections 38A and 120 of the Customs and Excise Act, 1964 (Act
No 91 of 1964).
(w) Government Notice No 710, published in Government Gazette
No 33457, dated 13 August 2010: Amendment of regulations in
terms of section 36 of the South African Reserve Bank Act, 1964
(Act No 90 of 1989).
(x) Government Notice No R738, published in Government Gazette
No 33481, dated 20 August 2010: Amendment of Part 1 of Schedule
No 1 (No 1/1/1412) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(y) Government Notice No R739, published in Government Gazette
No 33481, dated 20 August 2010: Amendment of Part 1 of Schedule
No 1 (No 1/1/1413) in terms of section 48 of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
9) The following paper is referred to the Portfolio Committee on Basic
Education for consideration and report. The report of the
Independent Auditors on the Financial Statements and Performance
Information is referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of the South African
Council for Educators for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and
Performance Information for 2009-10.
10) The following papers are referred to the Portfolio Committee on
Communications for consideration and report. The reports of the
Auditor-General on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of Vote No 21—Department
of Communications for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP126-2010].
(b) Report and Financial Statements of the Independent
Communications Authority of South Africa for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP210-2010].
(c) Report and Financial Statements of the National Electronic
Media Institute of South Africa for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10.
11) The following papers are referred to the Portfolio Committee on
Transport for consideration and report. The reports of the Auditor-
General and Independent Auditors on the Financial Statements and
Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Airports Company
South Africa (Ltd) for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and
Performance Information for 2009-10.
(b) Report and Financial Statements of the South African Civil
Aviation Authority for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(c) Report and Financial Statements of the South African
National Roads Agency Limited for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP81-2010].
12) The following paper is referred to the Standing Committee on
Finance for consideration and to the Portfolio Committee on
Transport:
(a) Report of the Executive Officer of the Financial Services
Board on the Road Accident Fund for the period 1 April 2006 to
31 March 2009, tabled in terms of section 4 of the Financial
Supervision of the Road Accident Fund Act, 1993 (No 8 of 1993).
13) The following papers are referred to the Portfolio Committee on
Justice and Constitutional Development for consideration and
report. The reports of the Auditor-General on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the National
Prosecuting Authority for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP87-2010].
b) Report and Financial Statements of Legal Aid South Africa for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10
[RP44-2010].
c) Report and Financial Statements of the President’s Fund for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10
[RP223-2010].
14) The following papers are referred to the Portfolio Committee on
Justice and Constitutional Development for consideration:
a) Proclamation No R35, published in Government Gazette No 33425,
dated 30 July 2010: Amendment of proclamation under section
2(4) of the Special Investigating Units and Special Tribunals
Act, 1996 (Act No 74 of 1996).
b) Proclamation No R36, published in Government Gazette No 33425,
dated 30 July 2010: Referral of matters to existing Special
Investigating Unit and Special Tribunal under section 2(1) of
the Special Investigating Units and Special Tribunals Act, 1996
(Act No 74 of 1996).
(c) Proclamation No R37, published in Government Gazette No
33425, dated 30 July 2010: Referral of matters to existing
Special Investigating Unit and Special Tribunal under section
2(1) of the Special Investigating Units and Special Tribunals
Act, 1996 (Act No 74 of 1996).
(d) Proclamation No R38, published in Government Gazette No
33425, dated 30 July 2010: Referral of matters to existing
Special Investigating Unit and Special Tribunal under section
2(1) of the Special Investigating Units and Special Tribunals
Act, 1996 (Act No 74 of 1996).
e) Proclamation No R41, published in Government Gazette No 33448,
dated 6 August 2010: Commencement of the Jurisdiction of
Regional Courts Amendment Act, 2008 (Act No 31 of 2008), in
terms of section 11 of the Act.
f) Proclamation No R42, published in Government Gazette No 33451,
dated 10 August 2010: Referral of matters to existing Special
Investigating Unit and Special Tribunal under section 2(1) of
the Special Investigating Units and Special Tribunals Act, 1996
(Act No 74 of 1996).
15) The following papers are referred to the Portfolio Committee on
Trade and Industry for consideration and report. The reports of the
Auditor-General on the Financial Statements and Performance
Information is referred to the Committee on Public Accounts for
consideration:
a) Report and Financial Statements of Vote No 32 – Department of
Trade and Industry for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote No 32 for 2009-10.
b) Report and Financial Statements of the Companies and
Intellectual Property Registration Office for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP174-
2010].
16) The following paper is referred to the Portfolio Committee on
Transport for consideration and report:
(a) Report of the Regulating Committee to the Airports Company
of South Africa and Air Traffic and Navigation Services Company
for 2009-10.
17) The following paper is referred to the Portfolio Committee on Rural
Development and Land Reform and to the Portfolio Committee on
Women, Youth, Children and People with Disabilities:
(a) Report of the Commission for Gender Equality on A Gendered
Analysis of Land Reform Policy and Implementation Outcome in
South Africa, (2006 – 2008/09) – 5 May 2010 (Final
Comprehensive Version).
18) The following paper is referred to the Portfolio Committee on
Social Development, the Portfolio Committee on Economic Development
and the Portfolio Committee on Women, Youth, Children and People
with Disabilities:
a) Report of the Commission for Gender Equality on A Gendered
Review of South Africa’s Implementation of the Millennium
Development Goals. TABLINGS
National Assembly
1 The Speaker
(a) Letter from the Minister of Social Development dated 14 September 2010, to the Speaker of the National Assembly explaining the delay in the submission of the Annual Report of the South African Social Security Agency (SASSA’s) for 2009-2010.
Tabling the South African Social Security Agency (SASSA’s) Annual
Report for 2009/2010
This letter serves to apprise you that the effect that SASSA will
not be able to comply with Section 65 of the Public Finance
Management Act, 1999 with respect to the tabling of its 2009/10
Annual Report.
The PFMA requires the submission of the Annual Financial Statements
(AFS) to the Auditor General (AG) by 31 May each year. The Auditor
General takes two months to complete the audit and issue an audit
report. However, the Annual Financial Statements could not be
submitted by 31 May 2010. This was attributable to the challenges
relating to the migration from Modified Cash Basis of accounting to
accrual basis of accounting.
In order to successfully implement an accrual basis of accounting,
the SASSA had to migrate from the government transversal systems
(BAS, PERSAL and LOGIS) to the Enterprise Resource Planning system
(ERP), in particular Oracle.
The implementation of this major project subsequently led to the
late submission of the Annual Financial Statements to the Auditor-
General which was finally done on 16 July 2010.
Further challenges were experienced in providing system reports
required by Auditor General. The finalization of these reports took
an additional two weeks after which the Auditor General requested
that the submission date be revised to 10 August 2010. The final
Audit report is expected by the 10 October 2010, given that the
Auditor General requires two months to provide the final audit
opinion after submission thereof. Consequently the due date of 30
September 2010 for the tabling of the annual report will not be met.
I hope that the Honourable Speaker finds the above explanation in
order.
signed
MS B E E MOLEWA, MP
MINISTER OF SOCIAL DEVELOPMENT
WEDNESDAY, 22 SEPTEMBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
-
Request for filling of vacancies in Media Development and Diversity Agency Board
a) A letter has been received from the Minister in the Presidency: Performance Monitoring and Evaluation as well as Administration –
i) informing the National Assembly that the term of office of the following board members of the Media Development and Diversity Agency (MDDA) will expire on 31 December 2010: Mr S Minyi, Ms S Gongxeka and Prof G Berger; and ii) requesting the National Assembly to recommend three candidates in terms of section 4(1)(b) of the Media Development and Diversity Agency Act, 2002 (Act No 14 of 2002) to fill the vacancies that will arise. Referred to the Portfolio Committee on Communications for consideration and report. -
Appointment of caucus leader
(a) Mr J J McGluwa has been appointed as leader of the ID Caucus in the National Assembly with effect from 14 September 2010.
TABLINGS
National Assembly and National Council of Provinces
- The Minister in The Presidency: Performance Monitoring and Evaluation as well as Administration
(a) Report and Financial Statements of the South Africa
International Marketing Council Trust (IMC) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 134-2009].
- The Minister of Agriculture, Forestry and Fisheries
(a) Report and Financial Statements of the Agricultural Research
Council (ARC) for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 201-2010].
(b) Report and Financial Statements of the Perishable Products
Export Control Board (PPECB)for 2009-2010, including the Report of
the Independent Auditors on the Financial Statements and
Performance Information for 2009-2010.
(c) Report and Financial Statements of the National Agricultural
Marketing Council for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 199-2009].
- The Minister of Sport and Recreation
(a) Report and Financial Statements of Vote 17 – Sport and
Recreation South Africa for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 17 for 2009-2010 [RP 205-2010].
- The Minister of Transport
(a) Report and Financial Statements of the Air Traffic and
Navigation Services Company Limited (ATNS) for 2009-2010, including
the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2009-2010.
(b) Reports and Financial Statements of the Cross-Border Road
Transport Agency (C-BRTA) for 2009-2010, including the Reports of
the Auditor-General on the Financial Statements and Performance
Information for 2007-2008 and 2008-2009.
National Assembly
- The Speaker
(a) Report of the Public Service Commission (PSC) on Financial
Misconduct for 2008-2009 Financial Year [RP 76-2010].
(b) he President of the Republic submitted the following letter
dated 15 September 2010 to the Speaker of the National Assembly,
informing members of the Assembly of the employment of the South
African National Defence Force for a service in co-operation with
the South African Police Service in the prevention and combating of
crime and maintenance and preservation of law and order within the
Republic of South, in order to curb the possible outbreak of
attacks against foreign nationals
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR A
SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE IN
THE PREVENTION AND COMBATING OF CRIME AND MAINTENANCE AND
PRESERVATION OF LAW AND ORDER WITHIN THE REPUBLIC OF SOUTH AFRICA,
IN ORDER TO CURB THE POSSIBLE OUTBREAK OF ATTACKS AGAINST FOREIGN
NATIONALS
This serves to inform the National Assembly that I have employed
495 members of the South African National Defence Force (SANDF)
personnel for service in co-operation with the South African Police
Service in the prevention and combating of crime and maintenance
and preservation of law and order within the Republic of South
Africa, in order to curb the possible outbreak of attacks against
foreign nationals in the Gauteng, Western Cape and KwaZulu Natal
Provinces.
This employment is authorised in accordance with the provisions of
section 201(2)(a) of the Constitution of the Republic of South
Africa, 1996, read with section 19 of the Defence Act, 2002 (Act No
42 of 2002).
Members of the SANDF were employed from 15 July 2010 until 31 July
2010.
I will communicate this report to members of the National Council
of Provinces and wish to request that you bring the contents hereof
to the attention of the National Assembly.
Regards
signed
J G ZUMA
COMMITTEE REPORTS
National Assembly
-
Ninth Report of the Standing Committee on Public Accounts on the Report of the Auditor-General on the 2008/09 Financial Statements of The Presidency, dated 25 August 2010:
-
Introduction The Standing Committee on Public Accounts (the Committee) heard evidence on and considered the contents of the Annual Report and the Report of the Auditor-General on the 2008/09 financial statements of the Presidency. The Committee noted the qualified audit opinion, highlighted areas which required the urgent attention of the Accounting Officer, and reports as follows:
-
Capital Assets
The Auditor-General reported the following: a) “Insufficient appropriate audit evidence as to the current year adjustments to prior year balances with a combined net amount of R9,463 million for computer equipment, furniture, office equipment and other machinery.
b) Due to inadequate document administration, the department’s prior year records did not permit the application of alternative procedures. c) The completeness of the asset register due to the identification of assets not been recorded on the asset register and the absence of documentation neither support the disposal of assets nor verify the completeness of major and minor assets”.
The Committee recommends that the Accounting Officer ensures that:
a) Regular asset counts and reconciliations are performed to maintain the integrity of the asset register and figures disclosed in the financial statements;
b) All discrepancies identified are investigated and corrected;
c) Identified assets are properly recorded on the asset register;
d) Effective internal control mechanisms are implemented to properly monitor critical information and asset verification process for the completeness of the asset register.
-
Irregular Expenditure
The Auditor General reported the following:
a) “The Presidency continued to transfer funds amounting to R24, 520 million to the National Youth Commission (NYC) without having obtaining written assurance from the entity as required by Section 38(1) (j) of the PFMA.
b) The Presidency had referred the matter to National Treasury for condonation and Treasury was of the opinion that this matter was not irregular but rather was an instance of non-compliance with the PFMA”.
The Committee recommends that the Accounting Officer ensures that:
a) Disciplinary action is taken against officials who were responsible for the transfer of funds without assurance in order to avoid such occurrences in the future; and
b) Monitoring controls are put in place to make certain that funds are transferred to entities by compliance with legislative requirements.
-
Unauthorised Expenditure
The Auditor General reported that “an unauthorised expenditure to the value of R14,511 million occurred”. The Committee recommends that the Accounting Officer ensures that a follow-up is made with National Treasury regarding the progress on the motivation for unauthorised expenditure as was submitted in September 2009 so that Parliament could take a decision with respect to it.
-
Conclusion
The Committee notes that the National Youth Commission (NYC) has not submitted its 2008/09 annual reports to Parliament. At the hearing, the Minister in the Presidency for the Performance Monitoring and Evaluation promised to investigate this and report back to the Committee. The Committee is awaiting feedback on this matter, and would like to see those responsible held accountable. The Committee further requests the Executive Authority to submit a progress report on all the recommendations to the National Assembly within 60 days after the adoption of this report by the House.
Report to be considered.
THURSDAY, 23 SEPTEMBER 2010 -
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Draft Bills submitted in terms of Joint Rule 159
(1) Rural Development and Land Reform General Amendment Bill, 2010,
submitted by the Minister of Rural Development and Land Reform.
Referred to the Portfolio Committee on Rural Development and Land
Reform and the Select Committee on Land and Environmental Affairs.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Agriculture, Forestry and Fisheries
(a) Report and Financial Statements of the Department of
Agriculture, Forestry and Fisheries for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 218-2010].
(b) Report and Financial Statements of the Onderstepoort Biological
Products (Ltd) for 2009-2010, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-2010.
- The Minister of Arts and Culture
(a) Report and Financial Statements of the South African Heritage
Resources Agency (SAHRA) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
(b) Report and Financial Statements of the Blind SA for 2009-2010,
including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2009-2010.
(c) Report and Financial Statements of the Afrikaans Language
Museum and Language Monument for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 239-2010].
(d) Report and Financial Statements of the Artscape for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 200-2010].
(e) Report and Financial Statements of Business and Arts South
Africa for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-2010 [RP 70-2010].
(f) Report and Financial Statements of the Ditsong Museums of South
Africa for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010.
(g) Report and Financial Statements of the Freedom Park Trust for
2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
213-2010].
(h) Report and Financial Statements of the Iziko Museums of Cape
Town for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 166-2010].
(i) Report and Financial Statements of the Luthuli Museum for 2009-
2010, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 187-2010].
(j) Report and Financial Statements of the Market Theatre
Foundation for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 54-2010].
(k) Report and Financial Statements of the Msunduzi/Voortrekker
Museum for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010.
(l) Report and Financial Statements of the Natal Museum for 2009-
2010, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 203-2010].
(m) Report and Financial Statements of the National Arts Council
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
245-2010].
(n) Report and Financial Statements of the National English
Literary Museum for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-2010.
(o) Report and Financial Statements of the National Film and Video
Foundation for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 186-2010].
(p) Report and Financial Statements of the National Heritage
Council for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010 [RP 221-2010].
(q) Report and Financial Statements of the National Library of
South Africa for 2009-2010, including the Report of the Auditor-
General on the financial Statements and Performance Information
for 2009-2010 [RP 209-2010].
(r) Report and Financial Statements of the Nelson Mandela Museum
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
225-2010].
(s) Report and Financial Statements of the Pan South African
Language Board for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010.
(t) Report and Financial Statements of the Kwazulu-Natal Performing
Arts Company (Trading as the Playhouse Company) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010.
(u) Report and Financial Statements of the Robben Island Museum for
2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
180-2010].
(v) Report and Financial Statements of the South African Library
for the Blind for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 159-2010].
(w) Report and Financial Statements of the South African State
Theatre for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010 [RP 161-2010].
(x) Report and Financial Statements of the War Museum of the Boer
Republics for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010.
(y) Report and Financial Statements of the William Humphreys Art
Gallery for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010.
(z) Report and Financial Statements of the Windybrow Centre for the
Arts for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010.
-
The Minister of Rural Development and Land Reform (a) Report and Financial Statements of Vote 27 – Department of Rural Development and Land Reform for 2009-2010, including the Report of the Auditor-General on the Financial Statements and Performance Information of Vote 27 for 2009-2010 [RP 241-2010].
-
The Minister of Social Development
(a) Report and Financial Statements of Vote 16 – Department of
Social Development for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 16 for 2009-2010 [RP 127-2010].
(b) Report and Financial Statements of the National Development
Agency for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010 [RP 19-2010].
MONDAY, 27 SEPTEMBER 2010
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Human Settlements
(a) Report and Financial Statements of Vote 26 – National
Department of Human Settlements for 2009-2010, including the Report
of the Auditor-General on the Financial Statements and Performance
Information of Vote 26 for 2009-2010 [RP 185-2010]. National Assembly
- The Speaker
(a) Report and Financial Statements of Vote 10 – Public Service
Commission (PSC) for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information of
Vote 10 for 2009-2010 [RP 172-2010].
TUESDAY, 28 SEPTEMBER 2010
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Finance
(a) Report and Financial Statements of the Financial Services Board
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
195-2010].
- The Minister of International Relations and Cooperation
(a) Accession to the African Charter on Democracy, Elections and
Governance, tabled in terms of section 231(2) of the Constitution,
1996.
(b) Explanatory memorandum to the Accession to the African Charter
on Democracy, Elections and Governance.
- The Minister in The Presidency for National Planning
(a) Report and Financial Statements of Vote 11 - Statistics South
Africa for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 11
for 2009-2010 [RP 91-2010].
- The Minister for the Public Service and Administration
(a) Report and Financial Statements of the State Information
Technology Agency (Pty) Ltd (SITA) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 248-2010].
- The Minister of Science and Technology
(a) Report and Financial Statements of Vote 31 – Department of
Science and Technology for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 31 for 2009-2010 [RP 244-2010].
(b) Report and Financial Statements of the Tshumisano Trust for
2009-2010, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2010.
(c) Report and Financial Statements of the South African National
Energy Research Institute (Pty) Ltd for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010.
WEDNESDAY, 29 SEPTEMBER 2010
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Co-operative Governance and Traditional Affairs
(a) Report and Financial Statements of the Municipal Demarcation
Board for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 227-2010].
(b) Report and Financial Statements of the Commission for the
Promotion and Protection of the Rights of Cultural, Religious and
Linguistic Communities for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 235-2010].
- The Minister of Communications
(a) Report and Financial Statements of the South African Post
Office (Ltd) for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-2010.
(b) Report and Financial Statements of the South African
Broadcasting Corporation Limited (SABC) for 2009-2010, including
the Report of the Independent Auditors on the Financial Statements
for 2009-2010.
(c) Report and Financial Statements of the Universal Service and
Access Agency of South Africa (USAASA) for 2009-2010, including the
Reports of the Auditor-General on the Financial Statements of
Universal Service and Access Agency of South Africa (USAASA) and
the Universal Service and Access Fund (USAF) for 2009-2010 [RP 202-
2010].
- The Minister of Energy
(a) Report and Financial Statements of the National Nuclear
Regulator for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 78-2010].
(b) Report and Financial Statements of Vote 28 – Department of
Minerals and Energy for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 28 for 2009-2010 [RP 69-2010].
(c) Report and Financial Statements of the Electricity Distribution
Industrial Holdings (Pty) Ltd (EDIH) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 236-2010].
(d) Report and Financial Statements of the Central Energy Fund
Group of Companies (CEF) for 2009-2010, including the Report of the
Auditor-General and the Independent Auditors on the Financial
Statements and Performance Information of the Central Energy Fund
Group of Companies for 2009-2010 [RP 168-2010].
(e) Report and Financial Statements of the South African Nuclear
Energy Corporation Limited (NECSA) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 197-2010].
(f) Report and Financial Statements of the National Energy
Regulator of South Africa (NERSA) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 192-2010].
- The Minister of Home Affairs
a) Report and Financial Statements of Vote 4 – Department of Home
Affairs for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 4
for 2009-2010 [RP 190-2010].
- The Minister of Mineral Resources
(a) Report and Financial Statements of Vote 28 – Department of
Minerals and Energy for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 28 for 2009-2010 [RP 69-2010].
(b) Report and Financial Statements of the Council for Mineral
Technology (Mintek) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 31-2010].
(c) Report and Financial Statements of the State Diamond Trader for
2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010.
(d) Report and Financial Statements of the Council for Geoscience
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
79-2010].
(e) Report and Financial Statements of the Mine Health and Safety
Council (MHSC) for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 09-2010].
(f) Report and Financial Statements of the South African Diamond
and Precious Metals Regulator for 2009-2010, including the Report
of the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 83-2010].
- The Minister of Public Enterprises a) Report and Financial Statements of South African Express Airways (Proprietary) Limited for 2009-2010, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-2010.
(b) Report and Financial Statements of the South African Airways
(Pty) (Ltd) for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-2010.
(c) Report and Financial Statements of the Alexkor Limited for 2009-
2010, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2010.
- The Minister of Transport
(a) Report and Financial Statements of the Road Accident Fund for
2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
45-2010].
(b) Report and Financial Statements of the Railway Safety Regulator
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP
67-2010].
(c) Report and Financial Statements of the Driving License Card
Account for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010 [RP 199-2010].
THURSDAY, 30 SEPTEMBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
-
Referral to Committees of papers tabled
- The following papers are referred to the Standing Committee on Finance for consideration and report. The reports of the Auditor- General and the Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the South African Revenue Service (Sars) for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP173-2010]. (b) Report and Financial Statements of the Financial Intelligence Centre for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP240-2010]. (c) Report and Financial Statements of the Accounting Standards Board for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10 [RP206-2010]. (d) Report and Financial Statements of the Independent Regulatory Board for Auditors for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP207-2010]. (e) Report and Financial Statements of Vote No 7 – National Treasury for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10. (f) Financial Statements of the Project Development Facility for Auditors for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10. (g) Financial Statements of the Office of the Technical Assistance Unit for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.-
The following papers are referred to the Portfolio Committee on Science and Technology for consideration and report. The reports of the Auditor-General and Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Human Sciences Research Council (HSRC) for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP164-2010].
(b) Report and Financial Statements of the Africa Institute of South Africa for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
(c) Report and Financial Statements of the South African Council for Natural Scientific Professions for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
(d) Report and Financial Statements of the National Advisory Council on Innovation for 2009-10.
-
The following paper is referred to the Portfolio Committee on Health for consideration and report. The report of the Independent Auditors on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the National Health Laboratory Service for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
-
The following papers are referred to the Portfolio Committee on Justice and Constitutional Development for consideration and report. The reports of the Auditor-General on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Department of Justice and Constitutional Development for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP219-2010].
(b) Report on Monies in Trust kept in the Guardian’s Fund for 2009-10, including the Report of the Auditor-General on Monies in Trust kept in the Guardian’s Fund for 2009-10 [RP237-2010].
(c) Report and Financial Statements of the Department of Justice and Constitutional Development on the Criminal Assets Recovery Account for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP224-2010].
-
The following paper is referred to the Portfolio Committee on Correctional Services for consideration and report. The report of the Auditor-General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 18 – Correctional Services for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP119-2010].
-
The following papers are referred to the Portfolio Committee on Water and Environmental Affairs for consideration and report. The reports of the Auditor-General and Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Trans-Caledon Tunnel Authority (TCTA) for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
(b) Report and Financial Statements of the Water Research Commission for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2008-09 [RP188-2010].
-
The following paper is referred to the Portfolio Committee on Police for consideration and report. The report of the Auditor- General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 22 – Police for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information of Vote No 22 for 2009-10 [RP163-2010].
-
The following papers are referred to the Portfolio Committee on Agriculture, Forestry and Fisheries for consideration and report. The reports of the Auditor-General and Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Agricultural Research Council for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP201-2010].
(b) Report and Financial Statements of the Perishable Products Export Control Board for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
(c) Report and Financial Statements of the National Agricultural Marketing Council for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP199-2009].
(d) Report and Financial Statements of the Department of Agriculture, Forestry and Fisheries for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP218-2010]. (e) Report and Financial Statements of the Onderstepoort Biological Products (Ltd) for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
-
The following paper is referred to the Portfolio Committee on Sport and Recreation for consideration and report. The report of the Auditor-General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 17 – Sport and Recreation South Africa for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP205-2010].
-
The following papers are referred to the Portfolio Committee on Transport for consideration and report. The reports of the Auditor- General and Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Air Traffic and Navigation Services Company Limited for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009- 10.
(b) Reports and Financial Statements of the Cross-Border Road Transport Agency for 2009-10, including the Reports of the Auditor-General on the Financial Statements and Performance Information for 2007-08 and 2008-09.
-
The following papers are referred to the Portfolio Committee on Arts and Culture for consideration and report. The reports of the Auditor-General and Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the South African Heritage Resources Agency for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.
(b) Report and Financial Statements of the Blind SA for 2009- 10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10.
(c) Report and Financial Statements of the Afrikaans Language Museum and Language Monument for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP239-2010].
(d) Report and Financial Statements of the Artscape for 2009- 10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP200-2010].
(e) Report and Financial Statements of Business and Arts South Africa for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-10 [RP70-2010].
(f) Report and Financial Statements of the Ditsong Museums of South Africa for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
(g) Report and Financial Statements of the Freedom Park Trust for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP213-2010].
(h) Report and Financial Statements of the Iziko Museums of Cape Town for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP166-2010].
(i) Report and Financial Statements of the Luthuli Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP187-2010].
(j) Report and Financial Statements of the Market Theatre Foundation for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP54-2010].
(k) Report and Financial Statements of the Msunduzi/Voortrekker Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.
(l) Report and Financial Statements of the Natal Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP203-2010].
(m) Report and Financial Statements of the National Arts Council for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP245-2010].
(n) Report and Financial Statements of the National English Literary Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.
(o) Report and Financial Statements of the National Film and Video Foundation for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP186-2010].
(p) Report and Financial Statements of the National Heritage Council for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP221-2010].
(q) Report and Financial Statements of the National Library of South Africa for 2009-10, including the Report of the Auditor- General on the financial Statements and Performance Information for 2009-10 [RP209-2010].
(r) Report and Financial Statements of the Nelson Mandela Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP225-2010].
(s) Report and Financial Statements of the Pan South African Language Board for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
(t) Report and Financial Statements of the KwaZulu-Natal Performing Arts Company (Trading as the Playhouse Company) for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10.
(u) Report and Financial Statements of the Robben Island Museum for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP180-2010].
(v) Report and Financial Statements of the South African Library for the Blind for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP159-2010].
(w) Report and Financial Statements of the South African State Theatre for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP161-2010].
(x) Report and Financial Statements of the War Museum of the Boer Republics for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
(y) Report and Financial Statements of the William Humphreys Art Gallery for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
(z) Report and Financial Statements of the Windybrow Centre for the Arts for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10.
-
The following paper is referred to the Portfolio Committee on Rural Development and Land Reform for consideration and report. The report of the Auditor-General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 27 – Department of Rural Development and Land Reform for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP241-2010].
-
The following papers are referred to the Portfolio Committee on Social Development for consideration and report. The reports of the Auditor-General on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration: (a) Report and Financial Statements of Vote No 16 – Department of Social Development for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP127-2010].
(b) Report and Financial Statements of the National Development Agency for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP19-2010].
-
The following papers are referred to the Portfolio Committee on Tourism:
(a) Agreement between the Government of the Republic of South Africa and the Government of the Republic of Kenya on Cooperation in the Field of Tourism, tabled in terms of section 231(3) of the Constitution, 1996.
(b) Explanatory Memorandum to the Agreement between the Government of the Republic of South Africa and the Government of the Republic of Kenya on Cooperation in the Field of Tourism.
(c) Agreement between the Government of the Republic of South Africa and the Government of the Arab Republic of Egypt on Cooperation in the Field of Tourism, tabled in terms of section 231(3) of the Constitution, 1996.
(d) Explanatory Memorandum to the Agreement between the Government of the Republic of South Africa and the Government of the Arab Republic of Egypt on Cooperation in the Field of Tourism.
-
The following papers are referred to the Portfolio Committee on Public Service and Administration for consideration:
(a) Report of the Public Service Commission (PSC) on the Implementation of the Performance Management and Development System for Senior Managers in the Limpopo Province – April 2010 [RP85-2010].
(b) Report of the Public Service Commission (PSC) on Financial Misconduct for 2008-09 Financial Year [RP76-2010].
-
The following papers are referred to the Portfolio Committee on Communications for consideration and report. The report of the Independent Auditors on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Final Acts of the International Telecommunications Union (ITU) Plenipotentiary Conference, Antalya, 2006, tabled in terms of section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum to the Final Acts of the International Telecommunications Union (ITU) Plenipotentiary Conference, Antalya, 2006.
(c) Report and Financial Statements of Sentech Limited for 2009-10, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009- 10.
-
The following paper is referred to the Portfolio Committee on Social Development for consideration:
(a) Letter from the Minister of Social Development, dated 14 September 2010, to the Speaker of the National Assembly, explaining the delay in the submission of the annual report of the South African Social Security Agency (Sassa) for 2009-10.
-
The following paper is referred to the Joint Standing Committee on Defence for consideration and to the Portfolio Committee on Defence and Military Veterans:
(a) Letter from the President of the Republic, dated 15 September 2010, to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in cooperation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa, in order to curb the possible outbreak of attacks against foreign nationals.
-
The following paper is referred to the Portfolio Committee on Human Settlements for consideration and report. The report of the Auditor- General is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 16 – Human Settlements for 2009-10, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-10 [RP185-2010].
-
The following paper is referred to the Portfolio Committee on Public Service and Administration for consideration and report. The report of the Auditor-General is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 10 – Public Service Commission (PSC) for 2009-10, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-10 [RP172-2010].
TABLINGS
National Assembly and National Council of Provinces
-
The Speaker and the Chairperson
(a) Report and Financial Statements of the Electoral Commission for 2009- 2010, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-2010 [RP 52-2010].
(b) Report and Financial Statements of the Commission for Gender Equality (CGE) for 2009- 2010, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-2010.
-
The President of the Republic
a) Report and Financial Statements of Vote 1 – The Presidency for 2009- 2010, including the Report of the Auditor-General on the Financial Statements and Performance Information of Vote 1 for 2009-2010 [RP 86-2010].
-
The Minister of Finance
(a) Report and Financial Statements of the Office of the Ombud for
Financial Services Providers for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
(b) Report and Financial Statements of the Public Investment
Corporation Limited for 2009-2010, including the Report of the
Auditor-General on the Financial Statements for 2009-2010 [RP 92-
2010].
(c) Report and Financial Statements of the Sasria (Limited) for
2009-2010, including the Report of the Independent Auditors on the
Financial Statements for 2009-2010.
(d) Report and Financial Statements of the Office of the Pension
Funds Adjudicator for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010[RP 251-2010].
(e) Report and Financial Statements of the South African Reserve
Bank for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements for 2009-2010.
(f) Annual Economic Report of the South African Reserve Bank for
2010.
- The Minister of Transport
(a) Report and Financial Statements of Vote 33 – Department of
Transport for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information of
Vote 33 for 2009-2010 [RP 198-2010].
(b) Report and Financial Statements of the Passenger Rail Agency of
South Africa (PRASA) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 169-2010].
(c) Report and Financial Statements of the South African Maritime
Safety Authority (including the Maritime Fund) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 216-2010].
(d) Reports and Financial Statements of the Ports Regulator of
South Africa for 2009-2010, including the Reports of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010.
(e) Report and Financial Statements of the South African Search and
Rescue Organisation for 2009-2010.
(f) Report and Financial Statements of the State of Railway Safety
in South Africa of the Railway Safety Regulator for 2008-2009 [RP
256-2010].
- The Minister of Higher Education and Training
(a) Report and Financial Statements of the Clothing, Textiles,
Footwear and Leather Sector Education and Training Authority (CTFL-
Seta) for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 99-2010].
(b) Report and Financial Statements of the Chemical Industries and
Training Authority (CHIETA) for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 98-2010].
(c) Report and Financial Statements of Construction Education
Training Authority (CETA) for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 100-2010].
(d) Report and Financial Statements of the Mining Qualifications
Authority (MQA) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 115-2010].
(e) Report and Financial Statements of the Banking Sector Education
and Training Authority (Bank-Seta) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 97-2010].
(f) Report and Financial Statements of The Insurance Sector
Education and Training Authority (Inseta) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 108-2010].
(g) Report and Financial Statements of the Transport Sector
Education and Training Authority (TETA) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 116-2010].
(h) Report and Financial Statements of the Agricultural Sector
Educationand and Training Authority (AgriSeta) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 96-2010].
(i) Report and Financial Statements of the Forest Industries Sector
Education and Training Authority (FIETA) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 93-2010].
(j) Report and Financial Statements of the Food and Beverages
Manufacturing Sector Education and Training Authority for 2009-
2010, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 144-2010].
(k) Report and Financial Statements of the Media, Advertising,
Publishing, Printing and Packaging Sector Education and Training
Authority (MAPPP-Seta) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 150-2010].
(l) Report and Financial Statements of the Public Service, Sector
Education and Training Authority (PSETA) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 112-2010].
(m) Report and Financial Statements of the Safety and Security
Sector Education and Training Authority (SASSETA) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010.
(n) Report and Financial Statements of the Local Government Sector
Education and Training Authority (LGSETA) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 109-2010].
(o) Report and Financial Statements of the Health and Welfare
Sector Education and Training Authority (HWSETA) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 106-2010].
(p) Report and Financial Statements of Education Training and
Development Practices Sector Education and Training Authority (ETDP
SETA) for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 101-2010].
(q) Report and Financial Statements of the Information System,
Electronics and Telecommunications Technologies Sector Education
and Training Authority (Isett-Seta) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 107-2010].
(r) Report and Financial Statements of the Finance, Accounting,
Management Consulting and other Financial Services Sector Education
and Training Authority for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 103-2010].
(s) Report and Financial Statements of the Manufacturing,
Engineering and Related Services Education and Training Authority
(MER-Seta) for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 111-2010].
(t) Report and Financial Statements of the Tourism, Hospitality and
Sport Education and Training Authority (Theta) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance information for 2009-2010 [RP 118-2010].
(u) Report and Financial Statements of the Wholesale and Retail
Sector Education and Training Authority (W&RSETA) for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010 [RP 117-2010].
(v) Report and Financial Statements of the Council on Higher
Education (CHE) for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-2010.
(w) Report and Financial Statements of the South African
Qualifications Authority (SAQA) for 2009-2010, including the Report
of the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 94-2010].
(x) Report and Financial Statements of the National Student
Financial Aid Scheme for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
- The Minister of Water and Environmental Affairs
(a) Report and Financial Statements of Vote 34 – Department of
Water Affairs for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information of
Vote 34 for 2009-2010 [RP 247-2010].
- The Minister for Cooperative Governance and Traditional Affairs
(a) Report and Financial Statements of Vote 29 – Department of
Cooperative Governance and Traditional Affairs for 2009-2010,
including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 29 for 2009-2010 [RP
252-2010].
(b) Report and Financial Statements of the South African Local
Government Association (SALGA) for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010.
- The Minister for the Public Service and Administration
(a) Report and Financial Statements of Vote 9 – Department of
Public Service and Administration for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 9 for 2009-2010 [RP 211-2010].
(b) Report and Financial Statements of Public Administration
Leadership and Management Academy (Palama) for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010 [RP 191-2010].
- The Minister of Agriculture, Forestry and Fisheries
(a) Report and Financial Statements of the Ncera Farms (Pty)Ltd for
2009-2010, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2010.
- The Minister of Arts and Culture
(a) Report and Financial Statements of the National Museum – Bloemfontein for 2009-2010, including the Report of the Auditor- General on the Financial Statements and Performance Information for 2009-2010.
(b) Report and Financial Statements of the Performing Arts Centre
of the Free State for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
- The Minister of Police
(a) Report and Financial Statements of Vote 20 – Independent
Complaints Directorate (ICD) for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information of Vote 20 for 2009-2010 [RP 243-2010].
- The Minister of Defence and Military Veterans
(a) Report and Financial Statements of the Armaments Corporation of
South Africa Limited (ARMSCOR) for 2009-2010, including the Report
of the Auditor-General on the Group Financial Statements and
Performance Information for 2009-2010 [RP 215-2010].
(b) Report and Financial Statements of the Castle Control Board of
Good Hope for 2009-2010, including the Report of the Auditor-
General on the Financial Statements and Performance Information for
2009-2010 [RP 165-2010].
- The Minister of Public Works
(a) Report and Financial Statements of Vote 5 – Department of Public
Works for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information of Vote 5 for
2009-2010.
(b) Report and Financial Statements of Agrément South Africa (ASA)
for 2009-2010, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2009-2010.
(c) Report and Financial Statements of the Council for the Built
Environment (CBE) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
(d) Report and Financial Statements of the Independent Development
Trust for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 184-2010].
(e) Report and Financial Statements of the Construction Industry
Development Board (CIDB) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 257-2010].
- The Minister of Public Enterprises
(a) Report and Financial Statements of Pebble Bed Modular Reactor
(Pty) Limited (PBMR) for 2009-2010, including the Report of the
Independent Auditors on the Financial Statements for 2009-2010 [RP
258-2010].
(b) Report and Financial Statements of the South African Forestry
Company (Ltd) for 2009-2010, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-2010. 15. The Minister of Home Affairs
(a) Report and Financial Statements of the Film and Publication
Board for 2009-2010, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2009-2010
[RP 250-2010].
- The Minister of International Relations and Cooperation
(a) Report and Financial Statements of Vote 3 – Department of
International Relations and Cooperation for 2009-2010, including
the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 3 for 2009-2010.
- The Minister of Rural Development and Land Reform
(a) Report and Financial Statements of the Ingonyama Trust Board
for 2009-2010, including the Report of the Auditor-General on the
Financial Statements for 2009-2010.
-
The Minister of Economic Development
(a) Report and Financial Statements of - the Department of Economic Development for 2009-2010.
(b) Report and Financial Statements of the South African Micro- finance Apex Fund for 2009-2009, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-2010 [RP 128-2010]. (c) Report and Financial Statements of Khula Enterprise Finance Limited for 2009-2010, including the Report of the Independent Auditors on the Financial Statements for 2009-2010 [RP 160-2010].
(d) Report and Financial Statements of the Competition Tribunal for 2009-2010, including the Report of the Auditor-General on the Financial Statements and Performance information for 2009-2010 [RP 50-2010].
(e) Report and Financial Statements of the Industrial Development Corporation of South Africa Limited (IDC) for 2009-2010, including the Report of the Independent Auditors on the Financial Statements for 2009-2010.
(f) Report and Financial Statements of the International Trade Administration Commission of South Africa for 2009-2010, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-2010.
(g) Report and Financial Statements of the Competition Commission for 2009-2010, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-2010 [RP 217-2010].
-
The Minister of Sport and Recreation
(a) Report and Financial Statements of Boxing South Africa for 2009-
2010, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010.
(b) Report and Financial Statements of the South African Institute
for Drug-Free Sport for 2009-2010, including the Report of the
Auditor-General on the Financial Statements for 2009-2010.
- The Minister of Health
(a) Report and Financial Statements of Vote 14 – National
Department of Health for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information of Vote 14 for 2009-2010 [RP 177-2010].
(b) Report and Financial Statements of the Compensation
Commissioner for Occupational Diseases in Mines and Works for 2009-
2010, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-2010.
(c) Report and Financial Statements of the South African Medical
Research Council (MRC) for 2009-2010, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-2010.
(d) Report and Financial Statements of the Council for Medical
Schemes for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
2010 [RP 67-2010].
National Assembly
1. The Speaker
(a) Petition objecting to the Protection of Information Bill
[B6–2010], submitted in terms of Rule 312 (Mr L W Greyling).
Referred to the Ad Hoc Committee on Protection of Information
Legislation for consideration and report.
(b) Letter from the Minister in The Presidency undated, to the
Speaker of the National Assembly explaining the delay in the
submission of the Annual Report of the National Development Agency
(NYDA) for 2009-2010.
DELAY IN THE TABLING OF THE NATIONAL YOUTH DEVELOPMENT AGENCY
(NYDA) ANNUAL REPORT: 2009/2010
In line with the Parliamentary procedures, it is incumbent on me as
the Executive Authority of the NYDA to table the Annual Report of
this institution once the Auditor General has completed his audit
of the financial statements.
There has been delay in receiving the audit opinion from the
Auditor General on one aspect of the NYDA audit, which is the part
on the National Youth Commission (NYC). Following the merger of
Umsobomvu Youth Fund and National Youth Commission to establish the
NYDA, the audit of this institution comprised the former two
entities and this resulted in the audit process being a complex
one, hence the delay.
The Auditor General indicates that he will provide his opinion in
the next few days, I therefore request to submit the NYDA Annual
Report for 2009/10 by the 15th of October 2010.
Yours sincerely
(signed)
O.C. CHABANE: MP
MINISTER IN THE PRESIDENCY
PERFORMANCE MONITORING AND EVALUATION
FRIDAY, 1 OCTOBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Introduction of Bills
(1) The Minister of Home Affairs
(a) Immigration Amendment Bill [B 32 – 2010] (National Assembly –
proposed sec 75) [Explanatory summary of Bill and prior notice of
its introduction published in Government Gazette No 33478 of 20
August 2010.]
Introduction and referral to the Portfolio Committee on Home
Affairs of the National Assembly, as well as referral to the Joint
Tagging Mechanism (JTM) for classification in terms of Joint Rule
160.
In terms of Joint Rule 154 written views on the classification of
the Bill may be submitted to the JTM within three parliamentary
working days.
(2) The Minister of Rural Development and Land Reform
a) Rural Development and Land Reform General Amendment Bill [B 33
– 2010] (National Assembly – proposed sec 75) [Explanatory
summary of Bill and prior notice of its introduction published
in Government Gazette No 33500 of 3 September 2010.]
Introduction and referral to the Portfolio Committee on Rural
Development and Land Reform of the National Assembly, as well
as referral to the Joint Tagging Mechanism (JTM) for
classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification
of the Bill may be submitted to the JTM within three
parliamentary working days.
FRIDAY, 8 OCTOBBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
1. Submission of Private Member’s Legislative Proposal
(1) The following private member’s legislative proposal was
submitted to the Speaker on 5 October 2010 in accordance with Rule
234:
(a) Legislative proposal to amend the Labour Relations Act,
1995 (Act No 66 of 1995) (Mr I M Ollis)
Referred to the Committee on Private Members’ Legislative Proposals
and Special Petitions for consideration and report.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Finance
(a) Proclamation No R. 46 published in Government Gazette No 33551
dated 13 September 2010: Commencement of the South African Reserve
Bank, in terms of the South African Reserve Bank Amendment Act,
2010 (Act No 4 of 2010).
(b) Government Notice No R. 758 published in Government Gazette No
33507 dated 27 Aug 2010 : Amendment of Schedule No.1 (No.
1/1/1414)), in terms of the Customs and Excise Act, 1964 (Act No 91
of 1964).
(c) Government Notice No R. 770 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Rules, (DAR/74), in terms
of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R. 771 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.1 (No.
1/1/1415), in terms of the Customs and Excise Act, 1964 (Act No 91
of 1964).
(e) Government Notice No R. 772 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.1 (No. 1/3/9),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(f) Government Notice No R. 773 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.1 (No.1/3/10),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No R. 774 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.3 (No.3/663),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R. 775 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.4 (No. 4/334),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R. 776 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.5 (No. 5/91),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R. 777 published in Government Gazette No
33514 dated 31 August 2010: Amendment of Schedule No.6 (No. 6/17),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R. 762 published in Government Gazette No
33501 dated 3 September 2010: Amendment of Schedule No.2 (No.
2/331), in terms of the Customs and Excise Act, 1964 (Act No 91 of
1964).
(l) Government Notice No R. 763 published in Government Gazette No
33501 dated 3 September 2010: Amendment of Schedule No.4 (No.
4/333), in terms of the Customs and Excise Act, 1964 (Act No 91 of
1964).
(m) Government Notice No R. 808 published in Government Gazette No
33552 dated 13 September 2010:Regulations relating to the South
African Reserve Bank, in terms of the South African Reserve Bank
Act, 1989 (Act No 90 of 1989).
- The Minister of Trade and Industry
(a) General Notice No 704 published in Government Gazette No 33374
dated 12 July 2010: Prohibition of the use of the Moses Mabhida
Stadium and other stadiums intellectual property rights, in terms
of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
(b) Government Notice No R. 644 published in Government Gazette No
33398 dated 20 July 2010: Direction and Procedure for the
Distribution Agencies in relation to the distribution of funds from
the National Lottery Distribution Trust Fund , in terms of the
Lotteries Act, 1997 (Act No 57 of 1997).
(c) Government Notice No R. 645 published in Government Gazette No
33398 dated 20 July 2010: Application for Grant of the Act, in
terms of the Lotteries Act, 1997 (Act No 57 of 1997).
(d) Government Notice No 634 published in Government Gazette No
33384 dated 23 July 2010: Accounting officer-Profession whose
members qualify in terms of section 60: Southern African Institute
of Government Auditors, in terms of the Close Corporations Act,
1984 (Act No 69 of 1984).
(e) Government Notice No R. 685 published in Government Gazette No
33427 dated 6 August 2010: Regulations: Payment of levy and fees
with regard to compulsory specifications: Amendments, in terms of
the National Regulator for Compulsory Specifications Act, 2008 (Act
No 5 of 2008).
- The Minister for Cooperative Governance and Traditional Affairs
(a) Report and Financial Statements of the National House of
Traditional Leaders (NHTL) for 2009-2010 [RP 267-2010].
- The Minister of Defence and Military Veterans
(a) Report and Financial Statements of Vote 19 – Department of
Defence for 2009-2010, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 19
for 2009-2010. [RP 179-2010].
National Assembly
1. The Speaker
(a) Letter from the Acting Minister of Defence and Military
Veterans dated 30 September 2010, to the Speaker of the National
Assembly explaining the delay in the submission of the Annual
Report of the Department of Defence for 2009-2010.
DEPARTMENT OF DEFENCE ANNUAL REPORT – FINANCIAL YEAR 2009/10
I regret to inform you that, due to unforeseen technical
circumstances, the Minister of Defence and Military Veterans is
unable to table the Department of Defence’ s annual Report for the
2009/2010 financial year before the deadline of 30 September 2010.
It is envisaged that the tabling of said Annual Report will
possibly be delayed by one day.
The inconvenience caused is sincerely regretted.
Yours sincerely
(signed)
J Radebe, MP
Acting Minister of Defence and Military Veterans
MONDAY, 11 OCTOBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Assent by President in respect of Bills 1) Criminal Law (Forensic Procedures) Amendment Bill [B 2B – 2009] – Act No 6 of 2010 (assented to and signed by President on 1 October 2010).
-
Draft Bills submitted in terms of Joint Rule 159
(1) Basic Education Laws Amendment Bill, 2010, submitted by the
Minister of Basic Education.
Referred to the Portfolio Committee on Basic Education and the
Select Committee on Education and Recreation.
(2) Criminal Procedure Amendment Bill, 2010, submitted by the
Minister of Justice and Constitutional Development.
Referred to the Portfolio Committee on Justice and Constitutional
Development and the Select Committee on Security and Constitutional
Development.
- Classification of Bills by Joint Tagging Mechanism (JTM)
(1) The JTM in terms of Joint Rule 160(6) classified the following
Bills as section 75 Bills:
a) Refugees Amendment Bill [B 30 - 2010] (National Assembly – sec
75).
b) Merchant Shipping (Safe Containers Convention) Bill [B 31 -
2010] (National Assembly – sec 75). TABLINGS
National Assembly and National Council of Provinces
- The Minister of Justice and Constitutional Development
(a) Directives (Plea and Sentence Agreements), issued in terms of
section 105A (11) of the Criminal Procedure Act, 1977 (Act No 51 of
1977).
- The Minister in The Presidency: Performance Monitoring and Evaluation as well as Administration
(a) Report and Financial Statements of the National Youth
Development Agency (NYDA) for 2009-2010, including the Report of
the Independent Auditors on the Financial Statements and
Performance Information for 2009-2010.
TUESDAY, 12 OCTOBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
-
Recommendations on tools of trade for public office-bearers (1) A letter has been received from the chairperson of the Independent Commission for the Remuneration of Public Office- Bearers, Judge L W Seriti, requesting comment and input from members of Parliament on the commission’s Concept Paper on Tools of Trade and its Annexure “A” by 11 November 2010.
Referred to the Joint Rules Committee for consideration.
TABLINGS
National Assembly and National Council of Provinces
-
The Minister of Transport
(a) Reports and Financial Statements of the Cross-Border Road Transport Agency (C-BRTA) for 2009-2010, including the Reports of the Auditor-General on the Financial Statements and Performance Information for 2009-2010.
Correction: The above entry replaces item 4(b) under Tablings in the name of the Minister of Transport in the Announcements, Tablings and Committee Reports of 22 September 2010, on p 2867. WEDNESDAY, 13 OCTOBER 2010
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Higher Education and Training
a) Report and Financial Statements of the Energy Sector Education and
Training Authority (ESETA) for 2009-2010, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-2010 [RP 102-2010].
-
The Minister of Economic Development
(a) Report and Financial Statements of the South African Micro- finance Apex Fund for 2009-2010, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2009-2010 [RP 128-2010].
Correction: The above entry replaces item 18(b) under Tablings in the name of the Minister of Economic Development in the Announcements, Tablings and Committee Reports of 30 September 2010, on p 2901.
National Assembly
- The Speaker
(a) Petition from Mr Amichand Munasur, praying for a pension — (presented by Mr L T Landers).
Referred to the Committee on Private Members’ Legislative Proposals
and Special Petitions for consideration and report.
(b) Letter from the Minister of Higher Education and Training dated 13 October 2010, to the Speaker of the National Assembly explaining the delay in the submission of the Annual Report of the Energy Sector Education and Training Authority (ESETA) for 2009-2010.
SUBMISSION OF ENERGY SETA ANNUAL REPORT 2009/10
I hereby wish to inform the Speaker to Parliament, as the Minister
of Higher Education and Training that it has come to my attention
that the Energy SETA (ESETA) was unable to submit its Annual Report
2009/10 on time as per the deadline stipulated from the PFMA, for
tabling in Parliament.
However, I am aware that the ESETA has recently been subject to
internal capacity constraints, which necessitated the placing of the
ESETA under administration. These capacity constraints also impacted
on the effective appointment of a service provider, which caused
undue delay in the process.
Further delays were caused by the change in signatories,
necessitated by the dismissal of the CEO and the suspension of the
Accounting Authority, which delayed payment to the service provider
and caused an additional delay in production, until accounts had
been settled.
Hence, the ESETA could not meet the requirement of submitting the
Annual Report to the Department of Higher Education for submission
to Parliament.
The constraints as set out above have been addressed and the Annual
Report will be submitted to my Office by no later than Tuesday, 12
October 2010 for tabling to Parliament.
I therefore, apologise for any inconvenience that this might cause.
Yours sincerely
signed
Dr Blade Nzimande, MP
Minister of Higher Education and Training
THURSDAY, 14 OCTOBER 2010
TABLINGS
National Assembly
- The Speaker
(a) Report of the Public Service Commission (PSC) on An Assessment
of the State of Professional Ethics in the Western Cape Provincial
Government – May 2010 [RP 77-2010].
COMMITTEE REPORTS
National Assembly
- Report of the Portfolio Committee on Defence and Military Veterans on the Defence Amendment Bill [B 11 – 2010] (National Assembly – sec 75), dated 13 October 2010:
The Portfolio Committee on Defence and Military Veterans, having
considered the subject of the Defence Amendment Bill [B 11 – 2010]
(National Assembly – sec 75), referred to it, and classified by the
Joint Tagging Mechanism as a section 75 Bill, reports the Bill with
amendments [B 11A – 2010].
MONDAY, 19 OCTOBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
- Classification of Bills by Joint Tagging Mechanism (JTM)
(1) The JTM in terms of Joint Rule 160(6) classified the following
Bills as section 75 Bills:
a) Immigration Amendment Bill [B 32 - 2010] (National Assembly –
sec 75).
b) Rural Development and Land Reform General Amendment Bill [B 33 -
2010] (National Assembly – sec 75).
National Assembly
The Acting Speaker
- Appointment of Ad Hoc Committee
After consultation with the Chief Whip of the Majority Party and senior
whips of the other parties, I have decided to appoint an Ad Hoc
Committee on the Commission for Gender Equality (CGE) Forensic
Investigation. The Committee will consider and report on the Forensic
Investigation Report of the Auditor-General of South Africa and the
Office of the Public Protector, and will -
1. consist of 14 members, in the following proportions: ANC 8; DA
2; COPE 1; IFP 1; and other parties 2;
2. exercise those powers in Rule 138 that may assist it in
carrying out its task; and
3. report to the House by no later than 26 November 2010.
This decision will be tabled in the Assembly for ratification in terms
of Rule 214(2).
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Finance
(a) Proclamation No R. 55 published in Government Gazette No 33596
dated 1 October 2010: Commencement of section 28 and section 51,
in terms of the Financial Intelligence Centre Act, 2001 (Act No 38
of 2001).
(b) Proclamation No R. 56 published in Government Gazette No 33598
dated 1 October 2010: The reappointment of members of the Tax
Courts, in terms of the Income Tax Act, 1962 (Act No 58 of 1962).
(c) Government Notice No R. 867 published in Government Gazette No
33596 dated 1 October 2010 : Amendment of Money Laundering and
Terrorist Financing Control Regulations, in terms of the Financial
Intelligence Centre Act, 2001 (Act No 38 of 2001).
(d) Government Notice No R. 869 published in Government Gazette No
33596 dated 1 October 2010: Exemption, in terms of the Financial
Intelligence Centre Act, 2001 (Act No 38 of 2001).
(e) Government Notice No R. 846 published in Government Gazette No
33585 dated 1 October 2010: Amendment of Schedule No.1 (No.
1/1/416), in terms of the Customs and Excise Act, 1964 (Act No 91
of 1964).
(f) Government Notice No R. 847 published in Government Gazette No
33585 dated 1 October 2010: Amendment of Schedule No.3 (No. 3/664),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No 866 published in Government Gazette No
33597 dated 1 October 2010: Determination of interest rate for
purposes of paragraph (a) of the definition of “official rate of
interest” in paragraph 1 of the Seventh Schedule to the Act, in
terms of the Income Tax Act, 1962 (Act No 58 of 1962).
h) Government Notice No R. 871 published in Government Gazette No
33601 dated 8 October 2010: Amendment of Schedule No.3 (No. 3/665),
in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
WEDNESDAY, 20 OCTOBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
- Vacancies on SABC board
a) A letter dated 19 October 2010 has been received from the President
of the Republic –
i) informing the National Assembly of the resignation of Ms B
Masekela, Mr M A Mello, Mr D Niddrie and Ms F Sekha from the
board of the South African Broadcasting Corporation (SABC); and
ii) requesting the Assembly to recommend, in accordance with the
provisions of the Broadcasting Act, 1999 (Act No 4 of 1999),
four suitable candidates to fill the above-mentioned vacancies
for the unexpired portion of the period for which the vacating
members had been appointed.
Referred to the Portfolio Committee on Communications for
consideration and report.
TABLINGS
National Assembly and National Council of Provinces
- The Minister in The Presidency: National Planning Commission
a) Millennium Development Goals Country Report 2010.
- The Minister of Justice and Constitutional Development
a) Code of Judicial Conduct, submitted on 30 September 2010 in terms
of section 12(2) of the Judicial Service Commission Act, 1994 (No 9
of 1994).
b) Regulations on Judges’ Disclosure of Registrable Interests,
submitted on 30 September 2010 in terms of section 13(7) of the
Judicial Service Commission Act, 1994 (No 9 of 1994).
COMMITTEE REPORTS National Assembly
-
Report of the Committee on Private Members’ Legislative Proposals and Special Petitions on the legislative proposal regarding the President’s power to pardon (Honourable J Selfe, Democratic Alliance), dated 15 September 2010:
The Committee on Private Members’ Legislative Proposals and Special Petitions, having considered the legislative proposal regarding the President’s power to pardon, and having consulted with the Portfolio Committee on Justice and Constitutional Development, the Ministry of Justice and Constitutional Development and the Presidency and listened to the presentation and briefing by Honourable J Selfe, recommends that permission not be granted to the member to proceed with the proposed legislation. Two members of the committee, Honourable J Kilian (Congress of the People) and Honourable PJC Pretorius (Democratic Alliance), noted their objections to the recommendation of the majority of the committee.
The committee wishes to make the following observations with regards to its recommendation:
-
The legislative proposal of Honourable J Selfe, if allowed to proceed, would result in the implementation of an administrative system to regulate the exercise of the President’s constitutionally endorsed power to pardon.
-
The President’s power to pardon flows from the Constitution and is not based on the historical influence of the prerogative of the Crown to pardon as found in the United Kingdom. This was confirmed by the Constitutional Court in the Certification of the Constitution of the RSA (1996 (10) BCLR 1253 (CC)).
-
The President’s power and functions as the head of state (as found in section 84 of the Constitution) are in nature exercised at his discretion.
-
The Constitutional Court has confirmed that it has no substantive issue with the power to pardon as found in the Constitution. Although it may appear to be an unfettered power, it is subject to the Constitution and subject to review by the Constitutional Court as the guardian of the Constitution if it is not rationally exercised.
-
The judiciary does not have the power to pardon; accordingly there is no overlap between the power exercised by the President as head of state and that exercised by the judiciary. The principle of separation of powers is unaffected.
In light of the above, the committee is of the view that the legislative proposal of Honourable J Selfe is not feasible and should not be proceeded with.
-
Report to be considered.
THURSDAY, 21 OCTOBER 2010
ANNOUNCEMENTS National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Bills passed by Houses – to be submitted to President for assent
(1) Bills passed by National Council of Provinces on 21 October
2010:
a) South African Postbank Bill [B 14B – 2009] (National Assembly
– sec 75).
b) Taxation Laws Amendment Bill [B 28 – 2010] (National Assembly
– sec 77).
c) Voluntary Disclosure Programme and Taxation Laws Second
Amendment Bill [B 29 – 2010] (National Assembly – sec 75).
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Water and Environmental Affairs
(a) Report and Financial Statements of the Breede-Overberg
Catchment Management Agency for 2009-2010, including the Report
of the Independent Auditors on the Financial Statements and
Performance Information for 2009-2010 [RP 221-2010].
(b) Report and Financial Statements of the Inkomati Catchment
Management Agency for 2009-2010, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-2010 [RP 162-2010].
COMMITTEE REPORTS
National Assembly
-
Report of the Committee on Private Members’ Legislative Proposals and Special Petitions on the legislative proposal regarding the President’s power to pardon (Honourable P De Lille, Independent Democrats), dated 15 September 2010:
The Committee on Private Members’ Legislative Proposals and Special Petitions, having considered the legislative proposal regarding the President’s power to pardon, and having consulted with the Portfolio Committee on Justice and Constitutional Development, the Ministry of Justice and Constitutional Development and the Presidency and listened to the presentation and briefing by Honourable P De Lille, recommends that permission not be granted to proceed with the proposed legislation, as Ms De Lille is no longer a Member of Parliament. In terms of Rule 234(1) of the Rules of the National Assembly, only “[a]n Assembly member” can submit a legislative proposal “in an individual capacity”.
The committee wishes to make the following observations with regard to the legislative proposal:
-
The legislative proposal of Honourable De Lille, if allowed to proceed, would have resulted in an amendment of the Constitution as it was argued that section 84(2)(j) should be removed from the Constitution.
-
The President’s power to pardon flows from the Constitution and is not based on the historical influence of the prerogative of the Crown to pardon as found in the United Kingdom. This was confirmed by the Constitutional Court in the Certification of the Constitution of the RSA (1996 (10) BCLR 1253 (CC)).
-
The President’s power and functions as the head of state (found in section 84 of the Constitution) is in nature a power exercised at his discretion.
-
The Constitutional Court has confirmed that it has no substantive issue with the power to pardon as found in the Constitution. Although it may appear to be an unfettered power, it is subject to the Constitution and subject to review by the Constitutional Court as the guardian of the Constitution if it is not rationally exercised.
-
The judiciary does not have the power to pardon; accordingly there is no overlap between the power exercised by the President as head of state and that exercised by the judiciary. The principle of separation of powers is unaffected.
In light of the above, the committee is of the view that the legislative proposal of Honourable P De Lille is not feasible and should not be proceeded with.
Report to be considered.
-
-
The Budgetary Review and Recommendation Report of the Portfolio Committee on Water and Environmental Affairs on the performance of the Department of Environmental Affairs for the 2009/10 financial year, dated 21 October 2010.
The Portfolio Committee on Water and Environmental Affairs, having
assessed the service delivery performance of the Department of
Environmental Affairs, reports as follows:
1. Introduction
In May 2009, the President of the Republic of South Africa announced the
restructuring of Cabinet and national departments to align the structure
and the electoral mandate of government with the developmental
challenges confronting our country. Proclamation No. 32367, gazetted in
2009, determined the re-alignment of the following departments:
Department of Water Affairs and Forestry; Department of Environmental
Affairs and Tourism and Department of Agriculture. This resulted in the
establishment of the following: Departments of Tourism; Agriculture,
Forestry and Fisheries; the Department of Environmental Affairs and
Department of Water Affairs (under the Ministry of Water and
Environmental Affairs).
Within the fisheries component, the Department of Environmental Affairs
retained its activities in regard to conserving and sustaining the use
of marine and coastal resources. This is reflected in the work of the
department within Programme 3: Marine and Coastal Management. A
government-wide task team was established under the auspices of the
Department of Public Services and Administration (DPSA) to oversee the
transition.
The committee, in undertaking the process of compiling this report, has
interacted and engaged with the following source documents, and
engagements with the department and other stakeholders:
• A strategic planning workshop was held with the department and all
the public entities reporting to it, which included the Ministry and
all senior managers. • Departmental quarterly expenditure trends briefings, to ascertain
expenditure patterns.
• Through correspondence and briefings, the committee received
progress reports on the departmental programmes and projects on the
ground such as pollution and waste treatment management and
infrastructure, Expanded Public Works Programme, public
awareness campaigns and climate change mitigation and adaptation
programmes/projects.
• Annual report briefings, in terms of Section 65 of the Public
Finance Management Act of No.1 of 1999, which requires that
Ministers table the annual reports and financial statements for the
department and public entities to parliament.
-
The mandate and role of the committee
The mandate of the committee is underpinned by the provisions of the Constitution of the Republic of South Africa, 1996, Parliament’s vision and mission, and the rules of Parliament.
The mandate and role of the committee is therefore to:
• Conduct oversight on behalf of the public, over the Department of Environmental Affairs to ensure executive enforcement of environmental rights as enshrined in the Constitution of the Republic of South Africa, 1996. Section 24 guarantees all South Africans a right to an environment that is nor harmful to their health or well-being of its citizens. • Oversee and review all matters of public interest relating to the environmental sector and economic development to ensure service delivery. • Ensure compliance by the department and its entities to relevant legislation (financial and other). • Monitor the expenditure of the department and its entities and ensure regular reporting to the committee, within the scope of accountability and transparency.
- The mandate of the Department
The mandate and core business of the department is underpinned by the Constitution and all other relevant legislation and policies applicable to the government, including the Batho Pele White Paper.
The vision and mission of the department embodies the mandate of the department, as follows:
• A prosperous and equitable society living in harmony with our natural resources. • To lead sustainable development of our environment and tourism for a better life for all.
2. Department’s Strategic Priorities and Measurable Objectives
2.1 Strategic Priorities of the Department
The key strategic priorities, in line with the vision and mission of the
department, over the medium-term, comprise the following:
• Promoting the conservation and sustainable utilisation of natural resources. • Protecting and improving the quality and safety of the environment. • Facilitating an effective national mitigation and adaptation response to climate change. • Promoting a global sustainable development agenda. • Facilitating transformation and job creation within the sectors towards poverty eradication.
2.2 Measurable Objectives of the Department
Five (5) critical programmes determine the work of the department.
Within each of the programmes, the department identified a number of
measurable objectives, which relate specifically to the purpose:
In Programme 1: Administration and Support, the purpose is to provide
strategic leadership, administration, executive support and corporate
services. Within this programme, and for the 2009/10 financial year,
the department achieved the following:
• 80% employee cases were processed within timeframes. • Human resource development strategy was implemented. • Implementation of Master Systems Plan (knowledge and information management system). • Effective frontline services with 95% of call centre requests being processed as per service level standards – within 48 hours. • Optimized 55% of media sources. • There was a 95% website uptime, despite the 10% increase in traffic. • Unqualified audit report.
One of the concerns expressed in this programme is the continued lack of
meeting of employment targets due to high staff turnover. Ironically,
it was stated in the departmental 2008/09 annual report that the
department had succeeded in reducing the rate at which departmental
staff had been leaving the department for other opportunities. For
example, it was stated in the 2008/09 annual report that the effective
implementation of an economically efficient retention strategy by the
department resulted in lowering the annual rate of departure of staff
from 22.1% in the 2007/08 financial year to 11.96% in the 2008/09
financial year. However, the 2009/10 annual report indicates that 17.9%
of various positions in the establishment were vacant. Of particular
concern to the committee is that the departmental documentation is
silent on time-frames in which they hope to achieve the full complement
of skilled personnel.
Other gains reported during the 2008/09 financial year included the
progress made in the tendering process for the construction of the new
building. Interestingly, the same matter is reported as a gain in the
2009/10 annual report.
In Programme 2: Environmental Quality and Protection, the purpose is to
improve the quality and safety of the environment in order to give
effect to the right of all South Africans to an environment that is not
harmful to health and well-being, the achievements for 2000/10 reflect
the following:
• 75% of 560 Environmental Impact Applications (EIAs) were processed
within prescribed timeframes. • 100 appeals inputs were made within prescribed timeframes. • 286 officials were trained in EIA administration. • 42 ambient air quality monitoring stations provided information to
SAAQIS. • Waste management activities were published. • 95 waste treatment sites were licensed.
It is reported that for this programme, the department continues to see
an increase in compliance with environmental legislation by industry.
The department trained 286 officials in EIAs administration, thereby
contributing to increasing the rate of processing of EIA applications.
It is stated that 75% of 560 EIA applications were processed. However,
there is no clarity about the duration of the timeframe within which the
EIA applications should be considered. In fact, several attempts were
made during committee meetings to determine the duration of these
timeframes. The committee therefore requires, as a matter of urgency,
this information from the department as soon as possible.
The department should work toward attaining 100% in assessing EIA
applications on time, rather than any percentage below 100%, as delayed
consideration of EIA applications may discourage potential investors and
developers. Some of the developments for which EIA applications are
being delayed might have very significant implications for job creation
and hence poverty eradication. Furthermore, the department stated that
it received and reviewed only a limited number of Environmental Impact
Management (EIM) applications during the 2009/10 financial year. It
would be appropriate to state why only four EIM allocations were
received and the conditions under which these applications are made.
The committee is concerned that despite the year-on-year growth in the
number of qualified Environmental Management Inspectors, the
overwhelming number of these EMIs work on ‘green issues’ with a
comparatively small number of EMIs, less than 20% of the total, focusing
on the so-called ‘brown issues’ of compliance and enforcement in the
fields of waste management and air quality management. There needs to
be a concerted effort by the department not only to grow the number of
EMIs, but to ensure that more are trained in ‘brown issues’.
In Programme 3: Marine and Coastal Management, the purpose is to
promote the conservation and sustainable use of marine and coastal
resources to contribute to economic growth and poverty alleviation.
This is also aimed at facilitating transformation and job creation
within the sector towards poverty alleviation in achieving this
department. The department in this financial year achieved the
following:
• All planned relief voyages to Antarctica, Marion and Gough Islands
were successfully carried out (oceanographic and biodiversity
research, as well as meteorological observations). • Population estimates of top marine predators (seals and seabirds)
conducted.
• Research towards the establishment of the first offshore Marine
Protected Area in the immediate exclusive economic zone was
published. • Prince Edward Island Marine Protected Area was gazetted for comment.
• Physical marine coastal environment was assessed to produce bi-
annual state of the ocean environment reports.
• Integrated Coastal Management Act, No. 24 of 2008 was promulgated in
December 2009. Supporting measures are in place to implement the
Act. • Water quality guidelines for recreational use of coastal waters have
been revised.
The Marine Living Resources Fund (MLRF) finances the operations of the
Marine and Coastal Management (MCM) Programme, which served as the
branch of the national Department of Environmental Affairs and Tourism.
The Marine and Coastal Management Programme is responsible for managing
the development and sustainable use of South Africa’s marine and coastal
resources, as well as for protecting the integrity and quality of its
marine and coastal ecosystems.
This mandate is a complex and often controversial one, that is, the
achievement of a healthy balance between sustainable utilization of
marine and coastal resources, and the protection and conservation of
these same resources, is an ongoing challenge that requires a well-
planned strategy and regular time-framed monitoring and evaluation of
implementation processes. However, growing and enhancing the
sustainability of the marine fisheries sector, as indicated in the
2009/10 annual report of the department is indeed a strategic objective,
particularly in the quest for poverty eradication among the impoverished
communities in the proximity of these marine and coastal resources.
Marine aquaculture is poised to play a significant role in this regard.
Thus, it would be appropriate for the department to clarify the progress
made in the establishment of marine aquaculture in the context of
integrated coastal management per the relevant legislation (Integrated
Coastal Management Act, No. 24 of 2008). Similarly, instead of
reporting on the population estimates of top marine predators, such as
seals and sea birds, it would be appropriate for the department to
report generally on the ecological status of the South African marine
fisheries resources, taking into account the pollution status of the
marine environment in the country’s exclusive economic zone, number of
effluent pipes discharging directly into the sea, conservation status of
commercial fisheries species and the number of commercial fishing
vessels and their profiles in terms of BEEE.
In Programme 5: Biodiversity and Conservation, the purpose is to
ppromote the conservation and sustainable use of natural resources to
contribute to economic growth and poverty alleviation. The department,
for the 2009/10 financial year achieved the following:
• CITES Regulations were published for implementation. • Draft Norms and Standards for the Management of damage causing animals were developed. • National Regulations for Alien Invasive Species were finalized. • 25% of the National Biodiversity Framework was implemented. • All relief voyages were successfully executed (Marion and Gough Islands and SANAE base)
This programme saw the reviewing of 42 permit applications for
conducting bioprospecting activities involving indigenous biological
resources. It is stated that considerable benefits would flow to the
communities who own the concerned biological resources and the
associated indigenous knowledge. In fact, it is pointed out that a
permit had been issued for one such application and that benefits had
already accrued to the relevant beneficiaries. It would be appropriate
to clarify those kinds of benefits and also identify the recipient
communities, as well as the inception time of the bioprospecting project
to gain an understanding of its sustainability. It was further stated
that all of the 34 bioprospecting permit applications, which were from
the 2008 backlogs, were assessed in the period under review. There
needs to be clarity on whether the 34 permit applications were part of
the 44 permit applications that were evaluated during the 2009/10
financial year and if so, what merits the double entry of the same
activity? There also needs to be clarity on whether there are existing
backlogs, for example, from 2009, considering the fact that backlogs
from 2008 were only assessed in the 2009/10 financial year.
Similarly, the Draft Norms and Standards for the Management of Damage-
causing Animals, which were supposed to be completed in the 2009/10
financial year, are deferred for submission for approval in the 2010/11
financial year. The department should clarify the current management of
human-and-wildlife conflicts in the absence of these norms and
standards.
There is also a low submission rate of elephant management plans to the
department by the relevant conservation agencies. More clarity is also
required on how the elephants in the country’s protected areas are being
managed. The department also indicated that processes are underway to
establish elephant research programmes and desertification and dry-lands
research programmes, although it is conventional wisdom that there are
South African scientists who have long been involved in these types of
research. It would be appropriate for the department to explain the
context in which ongoing elephant and desertification and dry-lands
research is being done.
In Programme 6: Sector Services, Environmental Awareness and
International Relations, the purpose is to promote a global sustainable
developmental agenda, and the department, achieved the following:
• 218 persons trained over 365 days, which created 79 733 training days within the EPWP. • 186 permanent jobs were created. • 21 138 temporary jobs created. • 369 SMME’s were used. • 995 youth benefited from the department’s National Youth Programme.
This programme, along with the Department of International Relations
continued to play a leading role in international negotiations centering
on sustainable development, chemicals management, fisheries management,
climate change and biodiversity. South Africa is indeed visible in
relevant bi-and multi-lateral forums, as well as playing a crucial role
in South-South relations. At the local level, the department is
implementing the strategic goal of ‘empowerment through information
sharing and sound stakeholder relation’. This is being achieved through
the improvement of intergovernmental cooperation and coordination,
optimizing access to information and through improved quality of
stakeholder engagements.
3. Analysis of the Department’s Current Strategic, Operational and
Financial Framework
For the 2010/11 financial year, the department stressed the importance
of attaining the following:
Climate Change is a new programme, with the aim of facilitating an
effective national mitigation and adaptation response to climate change.
This is indeed necessary, considering the ongoing and anticipated
negative consequences of climate change for South Africa, in the absence
of appropriate mitigation and adaptation interventions by the
Government. The other key areas that will be focused on in the next
financial year are:
• The protection, conservation and enhancement of environmental
assets, natural and heritage resources. • Ensuring a sustainable and healthy environment. • Contributing to sustainable economic growth, livelihoods and social
cohesion. • Providing leadership on climate change action.
• Promoting skills development and employment creation by facilitating
green and inclusive economic growth.
• Creating a better Africa and a better world by advancing national
environmental interests through a global sustainable development
agenda.
3.1 Current expenditure trends
A cursory overview of the appropriations in Vote 29 and the spending
trends for the first quarter of 2010/11 is as follows:
• In the 2010/11 financial year, the Department of Environmental
Affairs was allocated a total budget of R2.6 million before the
adjustment period. In the first quarter of the 2010/11, the
department spent R444.5 million of its budget.
The breakdown for each of the programmes is as follows:
Programme 1: Administration was allocated a total amount of R255.037
million for 2010/11 financial year before adjustment. The department
spent R40.349 million or 16%. This is due to the fact that the
department had not as yet received its first quarter claims from the
Department of Public Works for office accommodation.
Programme 2: Environmental Quality and Protection was allocated
R321.311 million for the 2010/11 financial year. The department spent
R73.806 million or 23% of the allocation. The largest part of the
expense was attributed to employee compensation, amounting to R17.8
million. A breakdown shows that R3.2 million was spent on performance
bonuses; R2.1 million on domestic travel; R1.7 million on foreign travel
and R3.7 million on other operational expenses – a total of R28.5
million.
Buyisa-e-Bag did not receive a transfer in the first quarter, as no
business plans were provided.
Programme 3: Oceans and Coastal Management was allocated an amount of
R229.356 million for the 2010/11 financial year before adjustment. The
department spent approximately R53.019 million or 23% of the allocation.
A breakdown reflects the following: Integrated Coastal Management used
R27.8 million and Coastal and Oceans Assessment and Research used R25
million.
A number of personnel had been transferred to the Department of
Agriculture, Forestry and Fisheries, whose personnel database had not
been ready at the time of the transfer, and therefore the department had
paid R16.2 million in salaries and performance bonuses of R4 million in
the interim.
Programme 4: Climate Change was allocated R573.865 million for the
2010/11 financial year. The department spent R19.1 million or 3% in the
first quarter on relief vessels, of which 308 million of the total
allocation was utilised for the replacement of the Polar Research
Vessel, which reduced the amount of money available for the rest of the
programme. Installments for this would be paid in September 2010 and
January 2011 and the vessel would be delivered in early 2013.
Programme 5: Biodiversity and Conservation was allocated R399.588
million for the 2010/11 financial year. In the first quarter, the
department spent R91.362 million or 23% mainly towards transfers to the
public entities, whilst the bulk of the expenditure, after transfers
went towards compensation of employees and performance bonuses. The
transfers to entities for the first quarter of 2010/11 are as follows:
• iSimangaliso Wetland Park Authority: R5.3 million. • South African National Parks: R38 million. • South African National Biodiversity Institute: R35 million. Programme 6: Sector Services, Environmental Awareness and International Relations received an allocation of R828.637 million or 20% for the 2010/11 financial year. Of this amount, R166 million was spent in the first quarter on social responsibility, policy and projects, including the Expanded Public Works Programme.
3.2 Committee’s concerns in relation to attaining current objectives
Programme 1: With regards to the high turnover rate within the
department, the Recruitment and Retention strategy needs to be evaluated
and not just reported on as a tool that is in place. If the tool is not
achieving the objectives, then other strategies and mechanisms need to
be explored to remedy the constraint. The committee is cognizant that
the environmental management sector is a lucrative one and the movement
of staff into the private sector is a key contributing factor and cannot
be controlled. The constraints experienced with regards to the
construction of the new green building should be clearer and the
feasibility in achieving the objective needs to be explored further.
Programme 2: The indicators selected for measuring performance with
regards to levels of Environmental Quality and Protection does not
actually address the issue of sustainability of the environment or the
extension of ecosystem services. The department needs to provide more
clarification on how the selected performance indicators actually
measure the long term protection of a sustainable environment for all
South Africans.
The legislative timeframes for processing of EIA applications are set
and instead of actually measuring progress made in achieving these
targets, the indicator fails to illustrate how a safe and healthy
environment can be assured for present and future generations.
The environmental impacts and cost of the 100 appeal applications need
to be quantified and loss of environmental goods and services need to be
further correlated with the goal of achieving a safe, healthy and
sustainable environment for all South Africans.
The department is applauded for the extensive training and capacity
building that is associated with the EIA process, but how this relates
to achieving the goals set for the programme is still unclear.
The committee therefore recommends that the indicators should include
the actual impact the EIA process and related legislation has had on
achieving a sustainable and quality environment for all South Africans.
Furthermore, the representation of all the spatial products developed by
the department for decision making (viz. Environmental Management
Frameworks, EMF and EMPs) and the extent to which these products are
actually utilized would be a more accurate performance indicator for
this programme. Just ensuring that environmental authorizations are
processed according to legislative timeframes does not actually address
the level of environmental protection or quality of environment provided
for present and future generations.
Another weakness within the programme is the lack of information
(performance and financial) related to the progress made in the
implementation of the various policies and legislation (e.g. National
Strategy for Sustainable Development and NEM: Waste Management Act) that
was promulgated in the financial year. The challenges experienced by
respective provinces in achieving the indicators are also poorly
reflected. Of particular interest is the processesing of 95 waste
management sites, are all these sites approved with Environmental
Management Plans and are they monitored annually? Is the data from the
ambient air quality monitoring stations, being processed and utilized
for decision making in the Climate Change Strategy? How is the
department actually tackling disincentives for ’dirty’ industries in
implementing the National Strategy for Sustainable Development, e.g.
granite mining industries should be charged an ecological surcharge for
extracting natural resources for private use.
Programme 3: Marine and Coastal Management
The mandate of the programme was modified last year, and as a result,
the programme’s focus of ensuring the sustainable utilization of marine
fisheries, especially for marginalized coastal communities was
recalibrated. Removing the marine aquaculture component to the
Department of Agriculture, Forestry and Fisheries is severely inhibiting
the department’s ability to engage effectively with all stakeholders
within the marine fisheries sector. The increase in poaching activities
of lucrative marine species (like abalone), the severe decline in
population numbers of the African penguin, coupled with the collapse of
some marine fish species are indicators of a marine ecosystem in
trouble. The programme is ineffective in meeting its objectives and is
in dire need of serious interventions if the marine ecosystem is to be
used sustainably for present and future generations. The committee also
notes that although the Integrated Coastal Management Act, No. 24 of
2008 was promulgated, the department has not reported on the progress
made and the challenges experienced during implementation.
Programme 5: Biodiversity and Conservation
On the whole, the indicators that are selected to illustrate the mandate
of the programme are inappropriate. The department is more concerned
with providing quantitative information as opposed to the qualitative
information regarding the conservation and sustainable utilization of
biodiversity within the country. The department reports as an
achievement that 25% of the National Biodiversity Framework (NBF) was
implemented, but the percentage is not related to any actual products or
progress made within the implementation plan. Is there a clear and
directed implementation plan for the NBF? How is this plan being
implemented at a provincial level? Furthermore, the rate that the
department is producing Biodiversity Management Plans is very
concerning; currently we have a list of Threatened or Protected Species
(TOP’s), which all require Biodiversity Management Plans, within what
timeframes will these be completed and will they still be applicable if
the rate of species decline is factored into the timeframes.
The department has been reporting for the last few years on the need for
securing a grassland national park, yet this biome is constantly
threatened by other land-uses (e.g. development, agriculture and
mining), especially in Gauteng, Free State and Mpumalanga. The committee
is concerned that no real progress can be reported on this objective due
to the lack of suitable land to conserve. The high rate of urbanization,
increased agricultural production and the reliance on coal as an energy
source are all contributing to the dramatic destruction of important
grassland and wetlands which provide ecosystem services like flood
attenuation and water purification.
The latest WWF Living Planet Index indicates that South Africa, together
with other developing countries is experiencing the highest levels of
species extinctions. The Red List of South African Plants, launched by
the South African Biodiversity Institute (SANBI), within the financial
year under review also quotes alarming statistics. The department
though, is not providing the interventions and strategies to curb these
trends but rather concerned with achieving targets that have no
relevance to ensuring that natural resources are used sustainably. The
challenges and constraints in drafting and implementing Biodiversity
Management Plans, Bioregional Plans and Conservation Plans to ensure
effective decision making on the conservation of South Africa’s unique
and important biodiversity is severely lacking. Impoverished communities
rely on natural resources for the basic food requirements and medicinal
needs and these are not addressed in this programme. As a signatory to
the Convention on Biological Diversity (CBD), South Africa has an
obligation to conduct a biodiversity inventory and have mechanisms in
place to address impacts associated with over harvesting and other
unsustainable practices. The current trends indicate that as a nation we
are increasing our ecological footprint so drastically that many of our
endemic (occurring no where else in the world) species are listed as
threatened due to poor land-use management decisions and unsustainable
practices.
Other: Millennium Development Goals
MDG7: Ensure environmental sustainability
The recent Millennium Development Goals Country Report 2010, presented
to parliament on 20 October 2010 notes that current indicators suggest
that the timetable for implementing the indicators of MDG 7 will not be
met. The reports suggest that to reverse the situation calls for the
following:
• The need for South Africa to integrate the principles of sustainable
development into its national policies and programmes.
• The international community should encourage action towards
sustainable biodiversity management as a vehicle for sustainable
development. In this regard, the commitments made by developed
countries in the Copenhagen Accord of December 18, 2009 to provide
resources amounting to USD 30 billion for the period 2010 – 2012
with balanced allocation between adaptation and mitigation should be
concretized.
• The additional commitment by developed countries which relates to
the mobilization of USD 100 billion a year by 2020 to address the
need of developing countries is an opportunity for South Africa to
speed up the transformation of MDG 7.
The committee stresses the importance of the department taking note of
the weaknesses in the country report and urgently addresses the
highlighted issues.
4. Analysis of Section 32 Expenditure Reports
The Department of Environment and Tourism was allocated an amount of
R3.51 billion in the 2009/10 financial year, which is 0.8 per cent of
the main budget. This takes into account the adjustment made by the
department during adjustment period in the same year. During the
adjustment the department received about R29.8 million as additional
budget in the 2009/10 financial year, this has increased the final
appropriation of the department from R3.48 billion to R3.510 billion
respectively. The department has spent R3.50 billion or 99.8 per cent at
the end of 2009/10 which is R7.3 million or 0.2 per cent under-spending.
This under- spending has emanated from the following programmes.
A breakdown of the spending trends for each of the programmes reflects
the following:
• Programme 1: Administration was allocated a total budget of R273.1
million for the 2009/10 financial year after the adjustment budget.
The programme spent exactly R273.1 million or 100 per cent of this
budget. The department spent according to its projections in this
programme. Although the budget is well spent in this programme, there
was an amount of R50 million, which was shifted from other programmes
to this programme. This was, as a result of, increased office
accommodation space, which includes municipal costs and leases of the
building. This increased the balance of the budget in this programme.
The movement of funds was done during the adjustment period, within
the scope of Section 43 of the Public Finance Management Act.
• Programme 2: Environmental Quality and Protection was allocated a
total amount of R624.6 million for the 2009/10 financial year after
the adjustments period. The department had spent R285.8 million or
99.8 per cent of this budget. The reasons for lower than expected
expenditure was due to the under expenditure on Buyisa-e-Bag sub
programme, which did not spend the entire budget of R30 million but
only about R28 million or 98 per cent of its allocation. Of
note is that an amount of R9.1 million was still shifted from this
programme to other programmes in the same period.
• Programme 3: Marine and Coastal Management was allocated a total
amount of R624.6 million for the 2009/10 financial year. The
programme spent R621.6 million or 99.5 per cent at the end of the
financial year. The reasons for the unspent funds were due to
compensation of employee costs related to overtime and filling of
vacancies. An amount of R34.8 million was shifted form other
programmes to this programme during the adjustment period.
• Programme 5: Biodiversity and Conservation was allocated a total
amount of R387.6 million for the 2009/10 financial year. Of this
amount, the department spent up to R386.8 million or 99.8 per cent of
the entire budget of this programme. An amount of R13.4 million was
moved from this programme to other programmes during the adjustment
period in the same year.
• Programme 6: Sector Services and International Relations was
allocated a total amount of R1.126 billion for the 2009/10 financial
year. Of this amount, the department spent up to R1.123 billion or
99.7 per cent of the entire budget of this programmme. An amount of
R88.6 million, R81.6 million and R14.1million were moved away from
this programme to other programmes during the adjustment period in
the same year.
According to some analysts, this movement of funds could result in un-
intended consequences. When a department moves funds from one programme
to the other, the funds do not move with the programme. This could
defeat the intended goal of a particular programme. Personnel in the
department often move funds precisely because of poor financial planning
for a particular year. This may also indicates that personnel do not
make use of the medium term expenditure framework correctly, which
provides clear three year projections.
5. Analysis of the Department’s Annual Report and Financial Statements
The Department of Environmental Affairs and Tourism remained focused on
ensuring that they jointly deliver on the commitments made in the
Strategic Plan during the period under consideration, although the
Department of Tourism had been established as a stand-alone department.
Vote 25 of 2009/10 had combined environmental affairs and tourism. As
of April 2010, Vote 29 had come into effect and encompassed only
environmental affairs.
The department had managed to spend 98% of its budget and much of the
remainder was related to capital expenditure that would take place in
2010/11.
Financial management
The department’s audit committee indicated that internal controls have
been operating as intended in some areas, while others needed attention.
In instances where control weaknesses were detected, the Audit
Committee has considered and evaluated management responses and action
plans to facilitate corrective measures. The implementation of such
corrective measures is monitored through issue tracking reports and
follow-up review reports submitted regularly to the committee.
Report of the Auditor-General
The Auditor-General expressed unmodified audit opinion on the
performance of the department, with emphasis of matter on the following:
• The financial statements and performance information were subjected
to material amendments.
• The financial statements and other information, which were to be
included in the 2009/10 annual report were not checked for
completeness and accuracy before submission for audit.
• The management of the department took long to provide appropriate
information needed for auditing the performance of the department
against its predetermined objectives.
• Much effort was required to obtain adequate appropriate audit
evidence to verify the departmental performance against its own
predetermined objectives.
It may be appropriate for the department to address the concerns raised
by the Auditor-General and state how it aims to ensure that these
problems do not recur.
Consideration of reports of Committee on Public Accounts
The department appeared twice before the Standing Committee on Public
Accounts in the 2009/10 financial year. These related to the
department’s plan of dealing with confiscated abalone and the
department’s involvement in dealing with abandoned mines. The
department has no outstanding resolutions from this process.
6. Committee’s Observations
The committee noted that the department, at a strategic level, is doing
satisfactory work, but this does not necessarily translate into
effective service delivery in rural areas. For example, there needs to
be climate change mitigation and adaptation projects in impoverished
rural parts of South Africa. Similarly, the focus on biodiversity
conservation should not only be on protected areas projects, but also on
utilizable landscape, such as areas owned by communities to improve the
living standards of poor communities.
It is also worth noting that three pieces of legislation have been fully
commenced over the period of the current and previous financial year:
The Waste Act; The Air Quality Act and The Integrated Coastal Management
Act. These Acts place considerable new financial burden on the
department, provincial government and local government. Despite full
commencement, full actual realization of these statutes is going to take
several years to implement, primarily because of considerable skills
shortages and budgetary constraints at the local government level. It is
imperative that an increased budgetary allocation towards the full
realization of these Acts over an accelerated time-frame is provided.
The department needs to be able to increase its capacity building
initiatives at a local government level, and provide strategic support
and interventions, in terms of the co-operative governance framework, to
other spheres of government.
7. Conclusion and Recommendations
The Department of Environmental Affairs is well governed, compliant with
relevant Treasury regulations and achieves satisfactory outcomes against
the annual business plan. The department is however not nearly realizing
its full potential and is, by admission of its own senior officials,
hampered by the inadequate allocation that is appropriated to it each
year, in addition to the lack of skilled human resources in some
projects/programmes.
Environmental Quality and Protection is a programme of this department
that needs an increased budgetary allocation. The committee would like
to point out that a healthy environment contributes to a healthy and
productive citizenry. A degraded environment increased the burden on the
public health sector and the economy. Further, it must be noted that the
health risks encountered from degraded environments acutely affect the
poor and marginalized in our country.
With this in mind, this committee would like to strongly recommends that
efforts to fully implement and enforce the Air Quality Management Act,
No. 39 of 2004; the National Environmental Management Act, No. 107 of
1998 (as amended in 2009) and the Waste Act, No 59 of 2008 are urgently
required. South Africa urgently needs more Environmental Management
Inspectors that work on ‘brown issues’ and it needs further capacitation
of other spheres of government, but particularly local government, to
design plans for the implementation of this legislation, and to enforce
it.
This committee is of the strong opinion that the Department of
Environmental Affairs requires a higher budgetary allocation for
Environmental Quality and Protection.
Report to be considered.
FRIDAY, 22 OCTOBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
- Referral to Committees of papers tabled
1) The following papers are referred to the Standing Committee on
Finance for consideration and report. The reports of the Auditor-
General and the Independent Auditors on the Financial Statements
and Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Financial Services
Board for 2009-10, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
10 [RP195-2010].
(b) Report and Financial Statements of Vote No 11 - Statistics
South Africa for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP91-2010].
(c) Report and Financial Statements of the Office of the Ombud
for Financial Services Providers for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10.
(d) Report and Financial Statements of the Public Investment
Corporation Ltd for 2009-10, including the Report of the Auditor-
General on the Financial Statements for 2009-10 [RP92-2010].
(e) Report and Financial Statements of Sasria (Ltd) for 2009-
10, including the Report of the Independent Auditors on the
Financial Statements for 2009-10.
(f) Report and Financial Statements of the Office of the
Pension Funds Adjudicator for 2009-10, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP251-2010].
(g) Report and Financial Statements of the South African
Reserve Bank for 2009-10, including the Report of the
Independent Auditors on the Financial Statements for 2009-10.
(2) The following papers are referred to the Portfolio Committee on
International Relations and Cooperation for consideration and
report:
(a) Accession to the African Charter on Democracy, Elections
and Governance, tabled in terms of section 231(2) of the
Constitution, 1996.
(b) Explanatory memorandum to the Accession to the African
Charter on Democracy, Elections and Governance.
(3) The following papers are referred to the Portfolio Committee on
Public Service and Administration for consideration and report. The
reports of the Auditor-General on the Financial Statements and
Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the State Information
Technology Agency (Pty) Ltd (Sita) for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP248-2010].
(b) Report and Financial Statements of Vote No 9 – Department
of Public Service and Administration for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP211-2010].
(c) Report and Financial Statements of the Public
Administration Leadership and Management Academy (Palama) for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10 [RP
191-2010].
(d) Report of the Public Service Commission (PSC) on an
Assessment of the State of Professional Ethics in the Western
Cape Provincial Government – May 2010 [RP77-2010].
(4) The following papers are referred to the Portfolio Committee on
Science and Technology for consideration and report. The reports of
the Auditor-General and Independent Auditors on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 31 – Department
of Science and Technology for 2009-10, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP244-2010].
(b) Report and Financial Statements of the Tshumisano Trust
for 2009-10, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2009-
10.
(c) Report and Financial Statements of the South African
National Energy Research Institute (Pty) Ltd for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10.
(5) The following papers are referred to the Portfolio Committee on
Cooperative Governance and Traditional Affairs for consideration
and report. The reports of the Auditor-General on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Municipal
Demarcation Board for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP227-2010].
(b) Report and Financial Statements of the Commission for the
Promotion and Protection of the Rights of Cultural, Religious
and Linguistic Communities for 2009-10, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP235-2010].
(c) Report and Financial Statements of the National House of
Traditional Leaders (NHTL) for 2009-2010 [RP267-2010].
(d) Report and Financial Statements of Vote No 29 – Department
of Cooperative Governance and Traditional Affairs for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP252-2010].
(e) Report and Financial Statements of the South African Local
Government Association (Salga) for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10.
(6) The following papers are referred to the Portfolio Committee on
Communications for consideration and report. The reports of the
Auditor-General and the Independent Auditors on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the South African Post
Office (Ltd) for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-10.
(b) Report and Financial Statements of the South African
Broadcasting Corporation Limited (SABC) for 2009-10, including
the Report of the Independent Auditors on the Financial
Statements for 2009-10.
(c) Report and Financial Statements of the Universal Service
and Access Agency of South Africa (Usaasa) for 2009-10,
including the Reports of the Auditor-General on the Financial
Statements of Universal Service and Access Agency of South
Africa (Usaasa) and the Universal Service and Access Fund (USAF)
for 2009-10 [RP202-2010].
(7) The following papers are referred to the Portfolio Committee on
Energy for consideration and report. The reports of the Auditor-
General and the Independent Auditors on the Financial Statements
and Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the National Nuclear
Regulator for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP78-2010].
(b) Report and Financial Statements of Vote No 28 – Department
of Minerals and Energy for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP69-2010].
(c) Report and Financial Statements of the Electricity
Distribution Industrial Holdings (Pty) Ltd (EDIH) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP 236-
2010].
(d) Report and Financial Statements of the Central Energy Fund
Group of Companies (CEF) for 2009-10, including the Report of
the Auditor-General and the Independent Auditors on the
Financial Statements and Performance Information for 2009-10
[RP168-2010].
(e) Report and Financial Statements of the South African
Nuclear Energy Corporation Limited (Necsa) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP 197-
2010].
(f) Report and Financial Statements of the National Energy
Regulator of South Africa (Nersa) for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP192-2010].
(8) The following papers are referred to the Portfolio Committee on
Home Affairs for consideration and report. The reports of the
Auditor-General on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of Vote No 4 – Department
of Home Affairs for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP190-2010].
(b) Report and Financial Statements of the Film and
Publication Board for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP250-2010].
(9) The following papers are referred to the Portfolio Committee on
Mining for consideration and report. The reports of the Auditor-
General on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 28 – Department
of Minerals and Energy for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP69-2010].
(b) Report and Financial Statements of the Council for Mineral
Technology (Mintek) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP31-2010].
(c) Report and Financial Statements of the State Diamond
Trader for 2009-10, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
10.
(d) Report and Financial Statements of the Council for
Geoscience for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP79-2010].
(e) Report and Financial Statements of the Mine Health and
Safety Council (MHSC) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP09-2010].
(f) Report and Financial Statements of the South African
Diamond and Precious Metals Regulator for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP83-2010].
(10) The following papers are referred to the Portfolio Committee on
Public Enterprises for consideration and report. The reports of the
Independent Auditors on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of South African Express
Airways (Pty) (Ltd) for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-10.
(b) Report and Financial Statements of the South African
Airways (Pty) (Ltd) for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-10.
(c) Report and Financial Statements of Alexkor Limited for
2009-10, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2010.
(d) Report and Financial Statements of Pebble-Bed Modular
Reactor (Pty) Ltd (PBMR) for 2009-10, including the Report of
the Independent Auditors on the Financial Statements for 2009-10
[RP258-2010].
(e) Report and Financial Statements of the South African
Forestry Company (Ltd) for 2009-10, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2009-10.
(11) The following papers are referred to the Portfolio Committee on
Transport for consideration and report. The reports of the Auditor-
General on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Road Accident Fund
for 2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10
[RP45-2010].
(b) Report and Financial Statements of the Railway Safety
Regulator for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP67-2010].
(c) Report and Financial Statements of the Driving License
Card Account for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP199-2010].
(d) Report and Financial Statements of Vote No 33 – Department
of Transport for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP198-2010].
(e) Report and Financial Statements of the Passenger Rail
Agency of South Africa (Prasa) for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP169-2010].
(f) Report and Financial Statements of the South African
Maritime Safety Authority (including the Maritime Fund) for 2009-
10, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP216-2010].
(g) Reports and Financial Statements of the Ports Regulator of
South Africa for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-2010.
(h) Report and Financial Statements of the South African
Search and Rescue Organisation for 2009-10.
(i) Report and Financial Statements of the State of Railway
Safety in South Africa of the Railway Safety Regulator for 2008-
09 [RP256-2010].
(j) Reports and Financial Statements of the Cross-Border Road
Transport Agency (C-BRTA) for 2009-10, including the Reports of
the Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(12) The following paper is referred to the Portfolio Committee on
Home Affairs for consideration and report. The report of the
Auditor-General on the Financial Statements and Performance
Information is referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of the Electoral
Commission for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP52-2010].
(13) The following papers are referred to the Portfolio Committee on
Women, Youth, Children and People with Disabilities for
consideration and report. The reports of the Auditor-General and
the Independent Auditors on the Financial Statements and
Performance Information is referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the National Youth
Development Agency (NYDA) for 2009-2010, including the Report
of the Independent Auditors on the Financial Statements and
Performance Information for 2009-2010.
(b) Report and Financial Statements of the Commission for
Gender Equality (CGE) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(14) The following papers are referred to the Portfolio Committee on
Higher Education and Training for consideration and report. The
reports of the Auditor-General on the Financial Statements and
Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Clothing, Textiles,
Footwear and Leather Sector Education and Training Authority
(CTFL-Seta) for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP99-2010].
(b) Report and Financial Statements of the Chemical Industries
and Training Authority (CHIETA) for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP98-2010].
(c) Report and Financial Statements of the Construction
Education and Training Authority (CETA) for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP100-2010].
(d) Report and Financial Statements of the Mining
Qualifications Authority (MQA) for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP115-2010].
(e) Report and Financial Statements of the Banking Sector
Education and Training Authority (Bank-Seta) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP97-2010].
(f) Report and Financial Statements of the Insurance Sector
Education and Training Authority (Inseta) for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP108-2010].
(g) Report and Financial Statements of the Transport Sector
Education and Training Authority (TETA) for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-2010 [RP116-2010].
(h) Report and Financial Statements of the Agricultural Sector
Education and Training Authority (AgriSeta) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP96-2010].
(i) Report and Financial Statements of the Forest Industries
Sector Education and Training Authority (Fieta) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP93-2010].
(j) Report and Financial Statements of the Food and Beverages
Manufacturing Sector Education and Training Authority for 2009-
10, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP144-2010].
(k) Report and Financial Statements of the Media, Advertising,
Publishing, Printing and Packaging Sector Education and Training
Authority (MAPPP-Seta) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP150-2010].
(l) Report and Financial Statements of the Public Service
Sector Education and Training Authority (PSETA) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP112-2010].
(m) Report and Financial Statements of the Safety and Security
Sector Education and Training Authority (SASSETA) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10.
(n) Report and Financial Statements of the Local Government
Sector Education and Training Authority (LGSETA) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP109-2010].
(o) Report and Financial Statements of the Health and Welfare
Sector Education and Training Authority (HWSETA) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP106-2010].
(p) Report and Financial Statements of the Education Training
and Development Practices Sector Education and Training
Authority (ETDP SETA) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP101-2010].
(q) Report and Financial Statements of the Information
Systems, Electronics and Telecommunications Technologies Sector
Education and Training Authority (Isett-Seta) for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10 [RP107-2010].
(r) Report and Financial Statements of the Finance,
Accounting, Management Consulting and other Financial Services
Sector Education and Training Authority for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP103-2010].
(s) Report and Financial Statements of the Manufacturing,
Engineering and Related Services Education and Training
Authority (MER-Seta) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP111-2010].
(t) Report and Financial Statements of the Tourism,
Hospitality and Sport Education and Training Authority (Theta)
for 2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance information for 2009-10
[RP118-2010].
(u) Report and Financial Statements of the Wholesale and
Retail Sector Education and Training Authority (W&RSETA) for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10
[RP117-2010].
(v) Report and Financial Statements of the Council on Higher
Education (CHE) for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10.
(w) Report and Financial Statements of the South African
Qualifications Authority (SAQA) for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP94-2010].
(x) Report and Financial Statements of the National Student
Financial Aid Scheme for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(y) Report and Financial Statements of the Energy Sector
Education and Training Authority (ESETA) for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP102-2010].
(15) The following paper is referred to the Portfolio Committee on
Water and Environmental Affairs for consideration and report. The
report of the Auditor-General on the Financial Statements and
Performance Information is referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of Vote No 34 – Department
of Water Affairs for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP247-2010].
(16) The following paper is referred to the Portfolio Committee on
Agriculture, Forestry and Fisheries for consideration and report.
The report of the Independent Auditors on the Financial Statements
and Performance Information is referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of Ncera Farms (Pty)Ltd
for 2009-10, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2009-
10.
(17) The following papers are referred to the Portfolio Committee on
Arts and Culture for consideration and report. The reports of the
Auditor-General on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of the National Museum –
Bloemfontein for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10.
(b) Report and Financial Statements of the Performing Arts
Centre of the Free State for 2009-10, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(18) The following paper is referred to the Portfolio Committee on
Police for consideration and report. The report of the Auditor-
General on the Financial Statements and Performance Information is
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 20 –
Independent Complaints Directorate (ICD) for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10 [RP243-2010].
(19) The following papers are referred to the Portfolio Committee on
Defence and Military Veterans for consideration and report. The
reports of the Auditor-General on the Financial Statements and
Performance Information are referred to the Committee on Public
Accounts for consideration:
(a) Report and Financial Statements of the Armaments
Corporation of South Africa Limited (Armscor) for 2009-10,
including the Report of the Auditor-General on the Group
Financial Statements and Performance Information for 2009-10
[RP215-2010].
(b) Report and Financial Statements of the the Castle of Good
Hope Control Board for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP165-2010].
.
(c) Report and Financial Statements of Vote No 19 – Department
of Defence for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP179-2010].
(20) The following papers are referred to the Portfolio Committee on
Public Works for consideration and report. The reports of the
Auditor-General and the Independent Auditors on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 5 – Department
of Public Works for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10.
(b) Report and Financial Statements of Agrément South Africa
(ASA) for 2009-10, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-10.
(c) Report and Financial Statements of the Council for the
Built Environment (CBE) for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10.
(d) Report and Financial Statements of the Independent
Development Trust for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP184-2010].
(e) Report and Financial Statements of the Construction
Industry Development Board (CIDB) for 2009-10, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-10 [RP257-2010].
(21) The following paper is referred to the Portfolio Committee on
International Relations and Cooperation for consideration and
report. The report of the Auditor-General on the Financial
Statements and Performance Information is referred to the Committee
on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 3 – Department
of International Relations and Cooperation for 2009-10,
including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2009-10.
(22) The following paper is referred to the Portfolio Committee on
Rural Development and Land Reform for consideration and report. The
report of the Auditor-General on the Financial Statements is
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Ingonyama Trust
Board for 2009-10, including the Report of the Auditor-General
on the Financial Statements for 2009-10.
(23) The following papers are referred to the Portfolio Committee on
Economic Development for consideration and report. The reports of
the Auditor-General and the Independent Auditors on the Financial
Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Department of
Economic Development for 2009-10.
(b) Report and Financial Statements of the South African Micro-
finance Apex Fund for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP128-2010].
(c) Report and Financial Statements of Khula Enterprise
Finance Ltd for 2009-10, including the Report of the Independent
Auditors on the Financial Statements for 2009-10 [RP160-2010].
(d) Report and Financial Statements of the Competition
Tribunal for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance information
for 2009-10 [RP50-2010].
(e) Report and Financial Statements of the Industrial
Development Corporation of South Africa Limited (IDC) for 2009-
10, including the Report of the Independent Auditors on the
Financial Statements for 2009-10.
(f) Report and Financial Statements of the International Trade
Administration Commission of South Africa for 2009-10, including
the Report of the Auditor-General on the Financial Statements
and Performance Information for 2009-10.
(g) Report and Financial Statements of the Competition
Commission for 2009-10, including the Report of the Auditor-
General on the Financial Statements and Performance Information
for 2009-10 [RP217-2010].
(24) The following papers are referred to the Portfolio Committee on
Sport and Recreation for consideration and report. The reports of
the Auditor-General on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for
consideration:
(a) Report and Financial Statements of Boxing South Africa for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10.
(b) Report and Financial Statements of the South African
Institute for Drug-Free Sport for 2009-10, including the Report
of the Auditor-General on the Financial Statements for 2009-10.
(25) The following papers are referred to the Portfolio Committee on
Health for consideration and report. The reports of the Auditor-
General on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote No 14 – National
Department of Health for 2009-10, including the Report of the
Auditor-General on the Financial Statements and Performance
Information for 2009-10 [RP177-2010].
(b) Report and Financial Statements of the Compensation
Commissioner for Occupational Diseases in Mines and Works for
2009-10, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-10.
(c) Report and Financial Statements of the South African
Medical Research Council (MRC) for 2009-10, including the Report
of the Auditor-General on the Financial Statements and
Performance Information for 2009-10.
(d) Report and Financial Statements of the Council for Medical
Schemes for 2009-10, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2009-
10 [RP67-2010].
(26) The following paper is referred to the Committee on Public
Accounts for consideration and to the Portfolio Committee on Women,
Youth, Children and People with Disabilities:
(a) Letter from the Minister in The Presidency, undated, to
the Speaker of the National Assembly, explaining the delay in
the submission of the Annual Report of the National Youth
Development Agency (NYDA) for 2009-10.
(27) The following papers are referred to the Standing Committee on
Finance:
(a) Proclamation No R46 published in Government Gazette No
33551, dated 13 September 2010: Commencement of the South
African Reserve Bank Amendment Act, 2010 on 13 September 2010 in
terms of section 9 of the South African Reserve Bank Amendment
Act, 2010 (Act No 4 of 2010).
(b) Government Notice No R758 published in Government Gazette
No 33507, dated 27 Aug 2010 : Amendment of Schedule No 1 (No
1/1/1414)) in terms of section 48 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(c) Government Notice No R770 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of rules, (DAR/74) in
terms of chapter VA and section 120 of the Customs and Excise
Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R771 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 1 (No
1/1/1415) in terms of section 48 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(e) Government Notice No R772 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 1 (No
1/3/9) in terms of section 48 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(f) Government Notice No R773 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 1 (No
1/3/10) in terms of section 48 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(g) Government Notice No R774 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 3 (No
3/663) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(h) Government Notice No R775 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 4 (No
4/334) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(i) Government Notice No R776 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 5 (No
5/91) in terms of section 75 of the Customs and Excise Act, 1964
(Act No 91 of 1964).
(j) Government Notice No R777 published in Government Gazette
No 33514, dated 31 August 2010: Amendment of Schedule No 6 (No
6/17) in terms of section 75 of the Customs and Excise Act, 1964
(Act No 91 of 1964).
(k) Government Notice No R762 published in Government Gazette
No 33501, dated 3 September 2010: Amendment of Schedule No 2
(No 2/331) in terms of section 56 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(l) Government Notice No R763 published in Government Gazette
No 33501, dated 3 September 2010: Amendment of Schedule No 4
(No 4/333) in terms of section 75 of the Customs and Excise Act,
1964 (Act No 91 of 1964).
(m) Government Notice No R808 published in Government Gazette
No 33552, dated 13 September 2010:Regulations made in terms of
section 36 of the South African Reserve Bank Act, 1989 (Act No
90 of 1989).
(n) Annual Economic Report of the South African Reserve Bank for 2010.
(28) The following papers are referred to the Portfolio Committee on
Trade and Industry:
(a) General Notice No 704 published in Government Gazette No
33374, dated 12 July 2010: Prohibition in terms of sections
15(1) and 15(1)(a) of the Merchandise Marks Act, 1941 (Act No 17
of 1941) on the use of the intellectual property rights of the
Moses Mabhida stadium and other stadiums.
(b) Government Notice No R644 published in Government Gazette
No 33398, dated 20 July 2010: Direction and procedure for
distribution agencies in relation to the distribution of funds
from the National Lottery Distribution Trust Fund, issued in
terms of section 32(3) of the Lotteries Act, 1997 (Act No 57 of
1997).
(c) Government Notice No R645 published in Government Gazette
No 33398, dated 20 July 2010: Regulations and form for the
application for a grant, issued in terms of section 60 of the
Lotteries Act, 1997 (Act No 57 of 1997).
(d) Government Notice No 634 published in Government Gazette
No 33384, dated 23 July 2010: Declaration of Southern African
Institute of Government Auditors as accounting officers in terms
of section 60 of the Close Corporations Act, 1984 (Act No 69 of
1984).
(e) Government Notice No R685 published in Government Gazette
No 33427, dated 6 August 2010: Amendments to regulations on the
payment of levy and fees on compulsory specifications in terms
of section 14(3)(b) of the National Regulator for Compulsory
Specifications Act, 2008 (Act No 5 of 2008).
(29) The following paper is referred to the Portfolio Committee on
Justice and Constitutional Development for consideration and
report:
(a) Directives (Plea and Sentence Agreements) issued in terms
of section 105A(11) of the Criminal Procedure Act, 1977 (Act No
51 of 1977).
(30) The following paper is referred to the Committee on Public
Accounts for consideration and to the Portfolio Committee on Higher
Education and Training:
(a) Letter from the Minister of Higher Education and Training,
dated 13 October 2010, to the Speaker of the National Assembly,
explaining the delay in the submission of the Annual Report of
the Energy Sector Education and Training Authority (ESETA) for
2009-10.
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Home Affairs on the Local Government: Municipal Electoral Amendment Bill [B 27 – 2010] (National Assembly – sec 75), dated 21 October 2010:
The Portfolio Committee on Home Affairs, having considered the subject of the Local Government: Municipal Electoral Amendment Bill [B 27 – 2010] (National Assembly – section 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with amendments [B 27 A – 2010].
Report to be considered.
CREDA INSERT T101022e-insert1 – PAGES 2970 - 2987
CREDA INSERT T101022e-insert2 – PAGES 2988 - 3026
CREDA INSERT T101022e-insert3 – pages 3027 - 3052
MONDAY, 25 OCTOBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
1. Membership of Committees
The following changes to Committee membership have been made by the DA:
Portfolio Committee on Arts and Culture
Discharged: Van der Walt, Ms D
Appointed: Smalle, Mr J
Portfolio Committee on Basic Education
Discharged: Kloppers-Lourens, Dr JC and Lorimer, Mr JRB
Appointed: James, Dr WG and Smiles, Mr D
Portfolio Committee on Communications Discharged: Mazibuko, Ms LD
Appointed: Micheals, Mrs NWA
Portfolio Committee on Cooperative Governance
Discharged: Doman, Mr WP
Appointed: Lorimer, Mr JRB
Portfolio Committee on Correctional Services
Discharged: Fritz, Mr AT
Appointed: Max, Mr L
Portfolio Committee on Defence and Military Veterans
Discharged: Smiles, Mr DC
Appointed: Masango, Mr SJ
Portfolio Committee on Economic Development
Appointed: Marais, Mr K Standing Committee on Finance
Discharged: Swart, Mr M
Appointed: Marais, Mr K
Portfolio Committee on Higher Education and Training
Discharged: James, Dr WG and Boinamo, Mr GG
Appointed: Kloppers-Lourens, Dr J and Van der Westhuizen, Mr A
Portfolio Committee on Home Affairs
Discharged: Terblanche, Mrs J
Appointed: Lovemore, Mrs A
Portfolio Committee on Justice and Constitutional Development
Discharged: Micheal, Ms NWA
Appointed: Schafer, Mrs DA
Portfolio Committee on Labour Discharged: Louw, Mr A
Appointed: Boinamo, Mr G
Portfolio Committee on Police
Discharged: Schafer, Mrs DA
Appointed: Swathe, Mr M
Portfolio Committee on Public Works
Discharged: Masango, Mr SJ
Appointed: Doman, Mr W
Portfolio Committee on Rural Development and Land Reform
Discharged: Swathe, Mr MM
Appointed: Mazibuko, Ms LD
Portfolio Committee on Tourism
Discharged: Shinn, Ms MR Appointed: Terblanche, Mrs J
Portfolio Committee on Trade and Industry
Discharged: Marais, Mr SJF and Van der Westhuizen, Mr AP
Appointed: Harris, Mr T and Smalle, Mr J
Portfolio Committee on Water and Enviromental Affairs
Discharged: Lovemore, Ms AT
Appointed: Kaylan, Ms S.
The following appointment to Committee membership has been made by the ACDP:
Portfolio Committee on Water and Enviromental Affairs
Appointed: Meshoe, Rev. K
TABLINGS
National Assembly
-
The Speaker (a) Letter from the Minister of Human Settlements dated 20 October 2010, to the Speaker of the National Assembly explaining the delay in the submission of the Annual Report of the Servcon Housing Solutions (Proprietary) Limited (SERVCON) for 2009-2010.
EXTENSION OF SUBMISSION OF THE 2009 / 10 ANNUAL REPORT BY SERVCON
In terms of Section 55 (3) of the PFMA, public entities must within five months of the end of the financial year, submit annual reports on the activities of that public entity during the financial year, to the relevant Executive Authority for tabling in Parliament through the Accounting Officer of a department designated by the Executive Authority. Submission of Annual Reports for 2009/10 financial year was expected on or before 31 August 2010.
However the National Department of Human Settlements received a letter from SERVCON’s Acting Manager Director indicating their inability to comply with the above prescript. The entity could not submit the report in time to meet the end of August 2010 deadline due to the outstanding written confirmation for the write off of interest and penalties by the South African Receiver of Revenue Services (SARS) which has effect on the Financial Statements of SERVCON as it has implications on the reduction of the entity’s liabilities.
The entity will only be able to submit once the confirmation from SARS has been received, then the entity would emend the Annual Financial Statements and present the Annual Report to Parliament.
signed T MG SEXWALE MINISTER OF HUMAN SETTLEMENTS
COMMITTEE REPORTS
National Assembly and National Council of Provinces
-
Report of the Portfolio Committee and Select Committee on Women, Youth, Children and People with Disabilities: Public hearings on the implementation of the Domestic Violence Act, 116 of 1998, dated 17 February 2010
The committee, having considered oral and written submissions, reports as follows:
-
Introduction
The Portfolio and Select Committees on Women, Youth, Children and People with Disabilities conducted public hearings on the 11 year implementation of the Domestic Violence Act (DVA), No 116 of 1998 on the 28 and 29 October 2009.
- Objectives
The objectives of the public hearings were to:
• Investigate the incidence of human rights violations with respect to
violence and abuse.
• Establish whether the Domestic Violence Act has been effectively
implemented.
• Identify key challenges with respect to the implementation of the
Domestic Violence Act.
• Understand shortcomings in government’s response to domestic violence.
• Identify best practices models that can be scaled up to mitigate
domestic violence.
• Make findings and recommendations – identify short, medium and long
term solutions and action required by Parliament and the Executive.
• Ascertain the impact of the Domestic Violence Act on people,
particularly women, youth, children and persons with disabilities.
- Delegation
The delegation consisted of members of the Portfolio Committee on Women, Youth, Children and People with Disabilities from the National Assembly and the Select Committee on Women, Children and People with Disabilities from the National Council of Provinces.
National Assembly
African National Congress (ANC)
Mr DC Kekana Ms NM Madlala Ms P Petersen – Maduna Ms HH Malgas Ms DM Ramodibe Mr GJ Selau Ms B Thompson Ms GK Tseke
Democratic Alliance (DA)
Ms PC Duncan Ms D Robinson
Congress of the People (COPE)
Ms SP Rwexana
Inkatha Freedom Front (IFP)
Ms SP Lebenya Ms HN Makhuba
United Christian Democratic Party (UCDP)
Ms IC Ditshetelo
National Council of Provinces
Eastern Cape Ms AND Qikani
Free State Mr DA Worth
KwaZulu – Natal Prince MMM Zulu
Mpumalanga Ms MP Temba
Northern Cape Mr GG Mokgoro
Limpopo Mr TA Mashamaite
Gauteng Ms BP Mabe
Departments in attendance
• Department of Police, Department of Social Development, Department of
Health, Department of Women, Children and Persons with Disabilities,
Department of Justice and Constitutional Development. The following provinces were represented:
• Limpopo, Mpumalanga, Gauteng
The committee received 39 submissions from the public including the following organisations and individuals who requested to make oral submissions.
| NAME/ORGANISATION | WRITTEN/ORAL |
| 1. Molo Songololo | Oral |
| 2. MM | Written |
| 3. Southern African Catholic Bishops’ Conference | Oral |
| (SACBC) - | |
| Parliamentary Liaison Officer | |
| 4. DG (Lecturer: Criminology and Security Science) | Written |
| 5. Ms CW (NGO: Advice Desk for the Abused) | Oral |
| 6. SD | Oral |
| 7. Restorative Justice Centre | Oral |
| 8. Project Abroad Human Rights Office | Oral |
| 9. Tshwaranang Legal Advocacy Centre | Oral |
| 10. National Institute for Crime Prevention and | Oral |
| Reintegration of | |
| Offender (NICRO) | |
| 11. Resources Aimed at the Prevention of Child Abuse | Oral |
| and Neglect | |
| (RAPCAN) | |
| 12. Rural Education Awareness and Community Health | Oral |
| (REACH) | |
| 13. Cape Law Society | Oral |
| 14. Commission for Gender Equality | Oral |
| 15. Red Cross Children’s Hospital | Oral |
| 16. SG | Written |
| 17. Child Welfare | Oral |
| 18. Childline | Oral |
| 19. Centre for the study of violence and reconciliation | Oral |
| (CSVR) | |
| 20. Khulisa Crime Prevention Initiatives | Written |
| 21. Thohoyandou Victim Empowerment Programme | Oral |
| 22. Catholic Commission of Justice and Peace | Written |
| 23. Mrs Msomi (Pietermaritzburg) | Oral |
| (individual) | |
| 24. South African National Civic Organisation (SANCO) | Oral |
| 25. Women of Farms Project | Oral |
| 26. AG (Research Office: UCT) | Oral |
| (individual) | |
| 27. Ms UP | Oral |
| (individual) | |
| 28. Ms QS | Oral |
| (individual) | |
| 29. Western Cape Network on Disability and Women of | Oral |
| Action | |
| 30. Disabled People of South Africa | Oral |
| 31. Gender Advocacy Programme (GAP) | Oral |
| 32. Legal Resource Centre and People Opposing Women | Oral |
| Abuse | |
| (POWA) | |
| 33. Mosaic | Oral |
| 34. Ms JG | Oral |
| 35. Gun Free Society | Oral |
| 36. Western Cape Network against violence against women | Written |
| 37. Ms EP | Oral |
| 38. South African Human Rights Commission | Oral |
| 39. Women’s Legal Centre | Oral |
- FINDINGS
The committee made the following observations:
4.1 GENERAL
• In the absence of a costing framework of the DVA, service delivery was
severely impeded, hence resulting in the poor implementation of the
Act.
• Gender-based violence disproportionately affects women and children.
Notwithstanding this, the committee acknowledges that based on the
submissions received, persons with disabilities, women and children
living on farms, in rural areas and impoverished environments were
considerably less likely to have access to effective help. As a
result, they may have to endure violent and abusive relationships for
longer and thus experience more serious long-term, consequences than
those with better access to help and resources.
• Patriarchal attitudes and differential power dynamics were at the
heart of domestic violence.
• Many victims of domestic violence were unaware that their rights were
violated and even when they knew, struggled to access the appropriate
support services.
Lack of co-ordination
• It was noted in several submissions that there was an over-emphasis on
criminal justice measures to deal with domestic violence and an under-
development of violence prevention measures.
• There was no overarching framework and implementation strategy to deal
with domestic violence holistically.
• It was noted that collaboration and communication between the
different departments involved in providing services to victims of
domestic violence was severely lacking, which resulted in the absence
of a holistic vision of service intervention.
Resourcing
• A number of submissions highlighted the inadequate nature of the
resources available to combat the scourge of domestic violence.
Current departmental budgets were not gender responsive, nor did they
take into consideration the needs of youth and persons with
disabilities. This brings into question how women, children, youth and
persons with disabilities were prioritised in departmental spending.
Lack of reliable data
• It was highlighted that there was a lack of credible administrative
data and related indicators to effectively monitor and evaluate
whether government’s existing programmes were addressing the needs of
victims and perpetrators of domestic violence.
• In addition to a lack of data, available statistics to effectively
monitor and evaluate domestic violence trends were not disaggregated
or reported on timeously.
• Existing information systems between various departments on domestic
violence was not compatible.
• There was no integrated information system to track trends in domestic
violence and determine whether the targets set for reducing its
incidence and rendering the required programmes in a holistic manner
was achieved. It was also not clear what the targets were for reducing
the incidents of domestic violence in the country.
Faith-based sector
• The faith-based sector was identified as a key role player in
providing support and assistance to victims of domestic violence as
religious leaders were often contacted initially for advice. However,
presenters at the public hearings were concerned that religious
leaders did not always provide the help victims sought and, at times,
subjected the victim to secondary abuse.
4.2 PEACE AND SECURITY CLUSTER
Department of Police
Numerous reports of non-compliance by members of the police with provisions of the Domestic Violence Act were made by presenters. These included:
Non-compliance • It was noted that there appeared to be a disincentive by police officers to record incidents of domestic violence, abuse or rape, as this would negatively affect their target of reducing contact crimes between 7 - 10% annually. Hence, incidents of rape were often reported as a common assault or turned away, with the same practice being adopted in abuse cases. • Firearms were not always confiscated after being used to threaten victims and the license of the alleged perpetrator suspended. • The safety of persons who had obtained protection orders were being compromised by some police officials’ unwillingness to arrest perpetrators who violated the protection order. • The behaviour of police officials dealing with victims of domestic violence were reported as being demeaning and discriminatory. Police officials discouraged women from taking action. Police officers also often did not inform victims about accessing a protection order or laying a criminal charge. Submissions by individuals working on farms indicated that particularly in the case of farm workers, police responded by saying that they were ‘drunk’ farm women and did not attend to their cases. Numerous incidents were reported citing the appalling attitude of police officials who often subject victims to secondary abuse. • Numerous concerns arose regarding protection orders as it relates to ensuring the safety of persons requesting protection orders, the reluctance and often refusal of police officers to serve the order, or to arrest the perpetrator who has violated the protection order. • It was also highlighted that risk assessment needs to be prioritised, so as to make victim safety a priority. This becomes especially important when victims are told to return the next day, resulting in cases where women did not return to file charges.
Lack of resources • The lack of resources was noted as an impediment that compromised on the ability of the police to act in accordance with the provisions of the Act. There have, for example, been instances where the police have claimed that they had no vehicles available and situations where the areas from which victims call were not in their jurisdiction, particularly in rural areas. Hence the service was not rendered.
Servicing of protection orders • Protection orders often did not serve the purpose they are intended for in that they were not adequately enforced and the victim continued to suffer abuse despite the serving of the protection order. • The cost implications for serving a protection order were not applied uniformly across the country. • Some police officers were reluctant to serve protection orders and in some instances even refused to do so. The undue delay in serving a protection order on an assailant placed the victim in grave danger.
Training • There was insufficient training of SAPS officials to deal with victims of domestic violence. In addition, once-off training was inadequate to ensure officials were equipped to deal with matters related to domestic violence. • Some training of police officials has taken place. However, given the reports of negative attitudes by some police officials, there was a need to review existing training modules and monitor and evaluate their application. The monitoring and evaluation of whether officials require training, at what level, as well as if officials were implementing what they know required serious attention. • It was also highlighted that there was a need to debrief police officials who consistently deal with issues of domestic violence to enable them to cope with their exposure to trauma and remain sensitive to the issue. Specialised units • Presenters at the public hearings welcomed the re-establishment of specialised units such as the Family Violence Child Protection Unit and Sexual Offences Units (FCS). More clarity was sought as to when and how these units would be introduced, including the provision of adequate resources to these structures. The mandate of these units in relation to domestic violence had been very limited in the past so it was also necessary to clarify their mandate around such cases in future.
Victim Empowerment Programme • Many police stations lack facilities for private consultation due to the absence of trauma rooms or Thuthuzela Centres. As a result, such victims often had to provide statements in environments that were not conducive to confidentiality or safety. • In some instances, lay counsellors assigned to trauma rooms were ill equipped to deal with the counselling needs of victims of domestic violence. The training of these volunteer counsellors was not monitored and/or evaluated. There was also often inadequate supervision of volunteers, as well as a high turnover of volunteers at police stations and trauma rooms. • It also appeared that there was a lack of interdepartmental collaboration between all role players responsible for victim empowerment. • Batho Pele principles were not being applied and the attitude of officials often deterred victims from laying a charge or seeking a protection order.
Record-keeping • Domestic violence should be recognised as a reportable category of crime. It was noted that there appeared to be a disincentive by police officers to record incidents of domestic violence, abuse and rape as this would negatively affect their overall performance rating. • In addition, it was also highlighted that domestic violence registers were not being maintained in the manner required.
Community Police Forums • Community Police Forums did not appear to be dealing with domestic violence. These forums were seen as often being politicised and their effectiveness varied across the country.
Department of Justice and Constitutional Development
Accessibility • For persons with disabilities, access to the criminal justice system remains a problem. An example cited was that localised sign language was not being used within courts, making communication and interpretation difficult. • Courts and police officials needed to become more available in terms of their operating hours. Court services in particular were not available after hours in many areas resulting in limited access, as well as loss of wages for farm women, shift workers and casual employees who have to take time off work to access court. • Victims of domestic violence were subjected to secondary victimisation within the judicial process. • Many court officials were ill-equipped to deal with matters related to domestic violence. • Availability of magistrates after hours was problematic.
Secondary victimisation • Victims of domestic violence were subject to secondary victimisation by court officials and undue delay in court processes. • In many instances, victims were not granted a protection order but requested to return with sufficient evidence or a notice to show cause for a protection order to be granted. This often resulted in women having to return home to the perpetrator without any protection. Victims, who have already suffered trauma, were therefore additionally victimised by the institution whose protection they sought. In addition, the court may also allow the alleged perpetrator to provide a notice to show cause for why a protection order should not be issued. • It was noted that there was a lack of privacy in court when dealing with domestic violence cases. Although sensitive, these proceedings were often open to the public.
Specialisation • There was a lack of a child-centred approach in matters related to court processes and children as victims of domestic violence e.g. postponement of cases and long waiting periods, as well as attitudes of court officials which impact negatively on the child.
Co-ordination • Domestic violence was often inter-related with divorce and maintenance matters. Thus, many cases were a combination of criminal and civil matters. However, according to the submissions, many victims of domestic violence report having to engage with the judicial system at multiple points which was costly, confusing and inefficient. Individual cases were not dealt with holistically, which leaves the victim to seek services from multiple points, rather than having all matters dealt with in one place.
4.3 SOCIAL SERVICES CLUSTER
Department of Social Development Psycho-social support • The current provision of psycho-social services to victims of domestic violence by government was inadequate. Most victims received support from non-governmental organisations that were battling to survive financially and still render a service. • Government psycho-social interventions were rendered from a purely bio- medical perspective as opposed to a developmental and community-based approach that included psycho-social rehabilitation. Where medical intervention was provided, it was often provided initially with little or no follow-through for the victim after a J88 form had been completed. • Overall, there was insufficient attention to ensuring the safety of children, as well as addressing their specific needs which arose from either witnessing domestic violence or being victims of domestic violence. • It was also highlighted that services were not reaching children. Government social workers did not always visit children in their homes, and as such, children had to go to their offices which impeded access. • In many instances, psycho-social services were only offered to the domestic violence victim, thus ignoring the possible needs of other family members such as children, grandparents etc who had witnessed the violence. • The extent and range of psycho-social services offered was limited, for example, there were few support groups for victims of domestic violence.
Shelters • It was highlighted that there was a severe shortage of shelters for women, particularly in rural areas. It was not evident if any measures were in place to address the shortage. • In addition, the limited access to emergency shelters for victims of domestic violence required urgent attention. Poor co-ordination • There was a lack of synergy between the different programmes within the Department of Social Development. As such, a victim of domestic violence was often not assessed for social security benefits. Social security • It was noted that in many instances, persons with severe mental illness struggle to access disability grants, and that the South African Social Security Agency must ensure measures to make these services accessible.
Victim Empowerment Programme • The Victim Empowerment Programme had failed many victims of domestic violence, largely due to the inadequate allocation of resources to implement the programme, as well as the Minimum Standards for Service Delivery in Victim Empowerment. • The lack of guidelines for the Victim Empowerment Programme (VEP) severely impedes service delivery.
Lack of human resources • The high case load of social workers had a direct bearing on whether a victim will indeed access a service. There appeared to be an over- reliance on social workers and a lack of a multi-disciplinary team to address domestic violence. Apart from social workers, it was not clear what other cadres of professionals, if any, were employed as part of a multi-disciplinary team to deal with domestic violence in terms of rendering psycho-social interventions.
Department of Health • Forensic specialists were a scarce resource, which directly impacts on the ability to provide medico-legal services to victims of domestic violence. • It was highlighted that there appeared to be little or no follow-up of victims of domestic violence after they initially visit a health facility. • Health care professionals had been reported to subject victims of domestic violence to secondary victimisation and were often not held accountable for this. • Many health care professionals did not know about the Domestic Violence Act. • There was a need for holistic care provisions to victims of domestic violence, particularly in relation to psycho-social trauma.
Department of Human Settlements
• It was noted that the marital status of the domestic violence
victim/survivor should not hinder access to government services, such
as housing. It was reported that in many instances, women who had RDP
houses were not eligible for additional or new houses as records
indicated that they had already received housing, despite the fact
that the perpetrator was occupying the house or that they had
separated or divorced.
• There was therefore an urgent need to respond to secondary housing for
victims of domestic violence.
• In addition to the need for more shelters, there was also no policy
that made provision for women who exit shelters to access housing.
4.4 GOVERNANCE CLUSTER
Department of Women, Children and Persons with Disabilities • At present, there was no overarching National Strategic Policy Framework to combat domestic violence, resulting in a lack of synergy between departments. The new department which is responsible for the needs of socially vulnerable groups is well placed to take leadership in the development of a National Strategic Policy Framework. • In addition, the department must outline specific programmes to address high levels of violence against women, children and persons with disabilities, and to ensure that these programmes are adequately costed and resourced. • The department must work collaboratively with other departments to ensure implementation of the Domestic Violence Act. It must also ensure the inclusion of organisations addressing domestic violence in the planning of the National Strategic Policy Framework.
National Planning Commission & Monitoring and Evaluation
• As the primary bodies responsible for planning, monitoring and
evaluation, it was imperative that these two bodies are included in
the development of a National Strategic Policy Framework for domestic
violence
• Monitoring and evaluation was important for oversight in terms of
implementation of the DVA, as well as holding service providers to
account for the effective implementation of the DVA.
Commission for Gender Equality
• The role of the Commission of Gender Equality must be strengthened and
closely monitored as an organ of the state and a key role player of
the gender machinery established to address gender discrimination.
- RECOMMENDATIONS
The committee made the following recommendations:
5.1 Legislative amendments
It was recommended that certain sections of the Domestic Violence Act should be amended to effect changes that best speak to the needs of victims of domestic violence.
Amendments to the Domestic Violence Act (DVA)
The discretionary powers of police officials in effecting arrests on perpetrators of domestic violence is highly problematic and highlights the gaps that exist in the combating of crimes of domestic violence. In certain circumstances, police officials were not obligated to arrest suspected perpetrators of domestic violence where suspicion existed of continued abuse of a spouse or intimate partner. It was therefore recommended that the DVA should be amended in order to remove the discretionary powers of police officials in matters relating to domestic violence. In particular, it was recommended that section 3 of the DVA should be amended by replacing the phrase “may arrest” with the phrase “must arrest” in order to ensure that victims of domestic violence were protected against retaliation from or by the abuser.
One of the critical areas in terms of legislative amendments deals with the issue of imminent harm as described in section 8(4)(b) of the DVA. The section speaks to a situation where the police officer, on reasonable grounds, suspects that the complainant may suffer imminent harm as a result of an alleged breach of the protection order, that police officer must arrest the respondent. The notion of imminent harm is not clearly enough dealt with in the DVA. It therefore raises questions around whether a police officer should arrest a respondent for having verbally abused his or her partner. In this regard, it was recommended that clarity should be given to what exactly was meant by ‘imminent harm’ by either a legislative amendment or through the establishment of guidelines through the inclusion of further regulations.
The criminalisation of domestic violence was a proposal that emerged at the public hearings and requires vigorous debate to determine the feasibility of such an amendment to the Act.
The lack of a provision within the DVA in terms of the co-ordination of services between various role players severely impedes service delivery. As such an amendment should be considered in this regard.
Domestic Partnerships Legislation
In terms of domestic partnerships, the DVA is under-utilised by women who cohabit with their partners. It is critical to ensure that legislation is enacted that recognises domestic partnerships and in so doing, grants them legitimacy and entitlements. Currently, women who cohabit, on the dissolution of their relationship, are entitled to nothing but that which they brought to the relationship. They have no legal claim to property or any other assets to whose purchase they have contributed. This group of abused women thus lose substantially and materially when their relationships end.
Costing of DVA
It would be imperative that the proposed new provisions of the Act were costed along with the existing sections to ensure that adequate resources were allocated for its implementation. Clear time frames need to be established as to by when the costing will be completed.
General Recommendations With the exercise of parliamentary authority and oversight over the executive, the review of the implementation of legislation was constitutionally mandated. However, where an Act contains regulations for the implementation of the legislation, the powers of the legislature were considerably hampered as those regulatory powers were conferred on the Minister in whose department that legislation falls. However, it was critical to note that parliament still conducts oversight over the performance of the Minister and as such can hold the Minister concerned accountable. It was therefore necessary that where legislation deals with domestic violence, that the development of regulations to such legislation does not fall within the exclusive jurisdiction of the executive authority alone, but was also subject to legislative scrutiny.
Firearm Control
In terms of the Firearms Control Act, No 60 of 2000, it was recommended that a review of the training received by police officials on the DVA and Firearms Control Act (FCA) should be conducted. In this regard, it was further recommended that such a review highlight the need for improved training with disciplinary consequences for police officers not knowing of, or complying with, the National Instruction on Domestic Violence.
In terms of the seizure of firearms and other weapons used in the perpetration of acts of domestic violence, it was essential that police question witnesses at the scene of a domestic violence incident, search for a firearm and remove it, regardless of the state of the alleged abuser or alleged threats with a firearm.
The safety of victims of domestic violence during the period between the granting of an interim protection order, and the approval of a final protection order in terms of the firearms control legislation had also been brought into question. It remained critical that guidelines should be drafted in order to strengthen the protections afforded to victims of domestic violence by the interim order. These proposed guidelines should focus on the protection of the victim and in particular seek to:
• Introduce more rigorous questions relating to the presence of weapons
in the communal home, whether these firearms are the property and or
registered to the victim or the perpetrator.
• The transferring of the onus for the request to remove firearms from
the communal home from the applicant to the presiding officer.
• Providing for clarity, making it clearer that the firearm must be
removed immediately and not only on the return date when the
protection order is made final.
The Independent Complaints Directorate (ICD)
In terms of oversight over the conduct of the South African Police Service (SAPS), the Independent Complaints Directorate was tasked with reviewing allegations of abuse of police power, particularly where it pertains to situations of domestic violence. However, it has been reported that the South African Police Service Act, No. 68 of 1995, did not afford the ICD sufficient powers to compel the South African Police Service to comply with recommendations that have been made by the ICD. This was particularly problematic as it did not provide victims of domestic violence with sufficient recourse in instances of police misconduct. It was recommended that the South African Police Service Act should be amended in order to widen the scope of the powers and compel the SAPS to comply with recommendations made by the watchdog.
Furthermore, the ICD was currently in advanced discussions around assigning their responsibilities in terms of the DVA to the SAPS Secretariat. In this regard, it would be critical for both the portfolio and select committees to be actively involved in this process in order to ensure that weakness in the ICD are not duplicated in the SAPS Secretariat. Moreover, the committees would need to ascertain what resources the SAPS Secretariat have available to ensure effective oversight over the DVA.
Development of a Performance Monitoring Framework for Courts
As has already been noted, record-keeping at South African courts remains poor. This was further complicated insofar as domestic violence was concerned. Particular problems around the implementation and interpretation of provisions of the DVA were experienced. It was therefore necessary that a performance monitoring framework was implemented to assess the courts’ effective implementation of the Act. This would enable the authorities to:
• Assess the quality and completeness of recordkeeping by the courts.
• The standardisation of processes and procedures across courts
including courts’ working hours and their interpretation and
application of the DVA’s provisions.
• Making it mandatory that all domestic violence applications be dealt
with in private offices where applicants’ confidentiality may be
maintained.
The committee should therefore request the Quality Assurance Division of the Magistrates Commission to outline their current procedures for monitoring court performance in relation to the DVA. It is critical that such a report to Parliament contain specifics about the availability of magistrates after hours to issue interim protection orders where they are urgently required. However, the executive authority responsible for monitoring the conduct of magistrates, the Department of Justice and Constitutional Development, should present recommendations to the committee on how monitoring could be strengthened and its findings made enforceable by courts. Service of the Protection Orders
One of the major concerns in terms of the DVA was the servicing of protection orders on respondents. The public hearings demonstrated that that process presented a real obstacle to women’s access to the protections police officials in the service of protection orders was problematic as police officials were unwilling to serve these documents in favour of more pressing police matters. In that regard, the Department of Justice and Constitutional Development should rework Regulation 15 of the regulations to the DVA, entitled ‘Service of documents’, in order to ensure that court officials increase their use of the sheriffs and substantially reduce their use of police officials to serve orders. It was further recommended that the Department of Justice and Constitutional Development present these proposed amendments to Parliament.
The costs involved in the serving of protection orders, in certain circumstances, severely hampers the ability of victims of domestic violence to obtain protection orders. This was more so the case in rural areas where victims can ill afford the costs involved in the serving of protection orders on the respondent. The financial threshold for assistance applied in rural areas with respect to sheriff’s services should therefore be lower than those applied in urban areas. The present regulatory framework gives court officials too much discretion in the application of Regulation 15(4) of the regulations to the DVA. Regulation 15(4) states that:
“The complainant or respondent who requires a document to be served in terms of the Act or these regulations, shall be responsible for the costs of such service provided that the clerk of the court may, after consideration of such proof as he or she may require, direct that the State must be responsible for the costs of any service in terms of the Act or these regulations if he or she is satisfied that the complainant or respondent as the case may be, or both the complainant and respondent, do not have the means to pay for such costs at the time when service is required.” The regulations must therefore also make explicit reference to the courts’ need to take payment of the sheriff’s fees into account when compiling their annual budgets.
One particular concern around the issuing and service of protection orders relates to the accessibility of protection orders to persons with disabilities, especially persons with visual impairments. It was recommended, that in cases where the need arises, protection orders should be accessible e.g. Braille.
Ensuring the Availability of Shelter and Counselling Services
The availability of shelters and counselling services to victims of domestic violence was raised as a serious concern by those who made submissions to the Portfolio and Select Committee on Women, Youth, Children and People with Disabilities. It was noted that the DVA placed no corresponding obligations on health or social service providers to make such services available. This gap weakens referral systems and contributes to fragmented responses to domestic violence by various service providers. In terms of section 19(c) of the DVA, the Minister may make regulations on “any other matter s/he deems necessary or expedient to be prescribed in order to achieve the objects of this Act.” It was therefore recommended that certain regulations governing the availability of shelter and counselling services might be necessary.
In this regard, the Department of Social Development should be consulted around the guidelines for shelters and services to victims of domestic violence. The documents must clearly articulate:
• How counseling services and shelters will be funded.
• The training norms and standards, as well as competencies required by
those working in this field.
• The management and recruitment of volunteers.
• The nature of interventions required to address domestic violence.
Moreover, these documents should note and address the relationship between child abuse and intimate partner violence and describe how both children’s agencies, as well as those dealing with abused women, could address this link. The Department of Health has health care professionals suitably trained to render counseling services, general emergency and medical care as well as a range of psycho-social services for victims of domestic violence. The DVA does not overtly state the need for health care services should be rendered to victims of domestic violence nor specify the direct role of the Department of Health hereto. Hence, a legislative amendment to this end was proposed with specifications followed up in the regulations.
Once finalised, these guidelines (in relation to counseling, shelter provision, health care) should be submitted to Parliament and gazetted as regulations in terms of section 19(1)(c). This was a particularly critical issue and needed to be ensured that it was appropriately resourced.
5.2 OVERSIGHT
General
• Strategies should be developed to deal with marginalised groups most
vulnerable to domestic violence that do not benefit from the Act’s
protection such as children, persons with disabilities, pensioners,
foreign nationals etc.
• The National Youth Development Agency, the Commission for Gender
Equality and the South African Human Rights Commission should report
annually to Parliament on progress with respect to addressing domestic
violence as per their given mandates.
• A mechanism should be devised within Parliament to ensure that the
implementation of the DVA was overseen by all committees concerned
namely the Portfolio Committee on Women, Youth, Children and People
with Disabilities, the Select Committee on Women, Children and People
with Disabilities, the Portfolio Committee on Safety and Security, the
Portfolio Committee on Justice and Constitutional Development, the
Portfolio Committee on Health, the Portfolio Committee on Social
Development, the Portfolio Committee on Human Settlement and the
Select Committee on Social Services.
• All relevant departments must report to the respective portfolio
committees on an annual basis in terms of progress with respect to the
DVA, as per the template in Appendix A. A scorecard related to the
implementation of the DVA should be devised for monitoring and
evaluation purposes.
• The Portfolio Committee on Women, Youth, Children and People with
Disabilities must hold the Inter-departmental committee to account and
include the National Treasury to reinforce the importance of
adequately funding programmes that address domestic violence.
• It was imperative that Parliament insists on reports from the
Department of Police on its compliance with the DVA and the Firearms
Control Act as it relates to domestic violence.
• Parliament must request reports on the implementation of measures to
ensure that all firearms are returned when staff go off duty because
of the escalating domestic violence incidents resulting in family
murders committed by officers (e.g. police, South African National
Defence Force soldiers and private security guards) with access to
legal firearms.
• Parliament should oversee that the various government departments
should raise awareness around the existence of the Act and its
importance to be disseminated to all sectors of society in order to
effectively use and implement the DVA.
• In order for Members of the Portfolio Committee on Women, Youth,
Children and People with Disabilities and the Select Committee on
Women, Children and People with Disabilities to conduct effective
oversight with respect to the implementation of the DVA, members
require training on the implications of the DVA.
• The lack of an overarching policy framework to address domestic
violence severely impedes the effectiveness of services rendered to
victims of domestic violence. As such, establishing a framework for
the DVA will ensure service norms and standards, training and
monitoring requirements, reporting channels and the role of
volunteers. The Ministry for Women, Children and Persons with
Disabilities will be best suited to lead such a process for developing
an overarching policy framework.
Policing • Norms and standards regarding training for police must be developed as a matter of priority. This training framework should be included in the South African Police Services National Instructions. • The Department of Police must amend its National Instructions to provide clear guidelines around when police officers should or should not arrest perpetrators of abuse. • A five year plan for the effective policing of domestic violence must be developed. This plan needs to set clear goals, timelines and targets for the effective implementation of the DVA. The role of the SAPS Evaluation Service in monitoring whether these targets are being met or not should be clearly stated. • The referral of victims of domestic violence to health care services and counselling by police officers must be closely monitored as the public hearings revealed that this was not being implemented. • It was imperative that domestic violence registers were maintained and monitored at all police stations. To this end, the officials responsible for monitoring and maintaining the registers must be held to account. • A mechanism should be developed to deal with withdrawals, or situations where women do not wish to lay charges but nonetheless still require help and protection. • It was imperative that sufficient resources such as specialised personnel, forensic specialists, forensic laboratories etc. should be allocated for evidence collection.
JUDICIARY
Develop a costed policy and/or legislation around the Family Courts (and other specialised courts) • The status and future of the Family Courts was unclear. It was recommended that a clear policy should be issued in this regard and that the blueprint should be elevated to the status of regulations. Clear timeframes and goals for the proliferation of family courts should be developed. • Engagement with the Department of Justice and Constitutional Development with respect to strengthening revisions for specialised courts.
Develop norms and standards around training for court personnel • It is imperative that training standards and norms around the DVA should be clearly established by the Department of Justice and Constitutional Development. These should include stipulating the basic level of knowledge that magistrates, prosecutors and clerks should demonstrate before being permitted to deal with domestic violence. This training framework should also indicate the basic content of the training, as well as the minimum competence required of those who provide the training. Training should be ongoing, with follow-up courses building on previous training. • In the case of the Department of Justice and Constitutional Development, this training framework should be included in the revised regulations. • The department should assess the efficacy of training regularly and adapt the training programme where necessary.
Accessibility • It was imperative that a detailed plan should be developed that outlines how courts would be made accessible over the next five years, with specific reference to the needs of children, persons with disabilities and victims of domestic violence and sexual offences. In addition, the issue of after hour access to courts was another crucial issue requiring attention.
Sheriff’s Office • A means test must be developed that assesses on an equitable basis the cost incurred for having a protection order served by the Sheriff’s office. SOCIAL SERVICES
Victim Empowerment Programme (VEP) • The VEP programme required review in terms of provisions and resourcing as the public hearings revealed that the programme did not serve the needs of victims it is intended for. • Neither the Victims’ Charter nor the Minimum Standards define secondary victimisation. This was problematic as many victims of domestic violence were subjected to secondary victimisation by government officials. It was imperative that this was done so that government departments had an understanding of secondary victimisation and in so doing, were in a position to prevent re-victimisation through appropriate institutional responses. • Re-assess funding criteria for VEP grants to civil society organisations. Grants should be made available to shelters given that they provide a critical service to victims of domestic violence. • Victim Empowerment Legislation: There was a need to expedite the promulgation of appropriate legislation which was developed in close consultation with civil society. • Greater public awareness was required in terms of the rights of victims of domestic violence and the Domestic Violence Act itself. To this end, government must allocate sufficient resources to undertake such an awareness campaign. • Greater synergy was required between the VEP, the Victims’ Charter, the Minimum Standards for Service Delivery and the Uniform Protocol on Victim Management to ensure services were better co-ordinated. This in turn will avoid the duplication of services and the more efficient use of resources. • The management of lay counsellors at Thuthuzela centres has not been working effectively across the country on account of the poor supervision, lack of accountability and often ill-equipped counsellors. A proposal for the establishment of Victim Advocates should be considered, whereby the role is merely to assist the victim throughout the administrative process within justice and police sector to health and social development. Hence, the counselling of victims should be left to appropriately trained professionals that are equipped to deal with domestic violence.
HEALTH SERVICES
Psycho-social support • A review of existing services and programmes must be done to determine where services are absent or need to be up-scaled. • An audit of government personnel rendering psycho-social support should be undertaken to determine where the skills shortages were and a plan should be devised to address the shortfall. Identify a recruitment strategy to increase the cadre of skilled personnel e.g. bursaries for psychologists, occupational therapists etc. • A review of existing programmes was required that was focused on the rehabilitation of perpetrators to determine whether these programmes were effective and could be demonstrated to bring about change in the abusers’ behaviour. Where such programmes could be identified, their replication may be considered. To this end, such programmes must be equipped with suitably-trained personnel and adequately resourced. • It was proposed that Thuthuzela Care Centres and the services offered should be made available for victims of domestic violence and not only be limited to rape survivors.
Effective information systems • An effective systemised screening within and across government departments such as Health, Education and Police, for domestic violence against children and women was lacking. For example, a victim of domestic violence can present numerous times at a health care facility but this information maybe absent at the Department of Police if a case has not been opened. A framework for screening was required and a mechanism for locating pertinent information regarding the victim. This could be achieved by establishing databases at hospitals and schools in order to identify victims of violence. This could monitor trends and incidences of violence as it relates to particular demographics. Databases can also be used to identify and refer victims to the necessary and appropriate psychosocial services based on their specific cases.
Policy and strategy development • The Department of Health should develop a comprehensive health sector policy to deal with domestic violence. Such a policy must clearly outline the roles and responsibilities of health care workers, the training required by health workers to implement the policy, a monitoring and evaluation strategy as well as a budget to effectively implement such a policy. It would be imperative that a policy of this nature should be developed in consultation with civil society organisations rendering services to victims of domestic violence to ensure effective networking and referral between role players concerned. It is Parliament’s role to oversee that the policy is developed and implemented. • It was recommended that the Department of Health should develop a strategy to work with the Department of Police in ensuring that victims of domestic violence are taken to a medico-legal facility to have the incident reported officially. This, in turn, would require that health personnel should be adequately trained and competent in documenting the nature and extent of the injury and be able to testify in a court of law. • In the context of the HIV and AIDS pandemic, the Department of Health should develop a plan stipulating how the existing public communications campaigns will address domestic violence in the current messaging. A targeted strategy was required to deal with women in abusive relationships who had limited choices in terms of applying the Department’s current prevention strategies (abstain, be faithful, use a condom).
Human Settlement
• The Department of Human Settlement was recommended to develop a policy
that addresses the secondary housing needs of domestic violence
victims.
- CONCLUSION
The committees had also agreed to the following:
• All individual cases from the public hearings must be followed up and
that government departments would have to account in this regard in an
official response in writing and through a briefing to the committee.
• The names of individuals that presented at the public hearings will
not be published in the committee’s report and that anonymity would be
adhered to.
• The report will be used as a tool to monitor government departments
again in terms of implementation of the DVA. The committees will
request the relevant government departments responsible for
implementing the DVA to provide a written report (annually) to the
committee on progress with regards to programmes implemented and
services rendered in this regard as well as funding allocated hereto.
• A copy of the strategic report and the committee’s report will be sent
to all those participants and respective government departments.
• Joint oversight with respective portfolio committees to assess the
implementation of the DVA. The committees agreed that the report should be published in the ATC and debated in the National Assembly House in 2010.
Report to be considered.
National Assembly
- The Budgetary Review and Recommendation Report of the Portfolio Committee on Correctional Services on the performance of the Department of Correctional Services for the 2009/10 financial year, dated 21 October 2010.
The Portfolio Committee on Correctional Services, having assessed the service delivery performance of the Department of Correctional Services, reports as follows:
- INTRODUCTION
1.1 The Money Bills Amendment Procedure and Related Matters Act (2009) provides for, amongst others, a parliamentary procedure to amend Money Bills, thus granting parliamentary committees greater opportunity to influence the allocation of funds to the departments they oversee. Section 5 compels the National Assembly, through its Committees annually to submit Budgetary Review and Recommendation (BRR) reports on the financial performance of departments accountable to them. The BRR report must be informed by a Committee’s interrogation of, amongst others, each national department’s medium-term estimates of national expenditure, strategic priorities and measurable objectives, National Treasury-published expenditure reports, annual reports and financial statements, as well as observations made during oversight visits. Essentially the BRR report is a committee’s assessment of a departments’ service delivery performance given its available resources, as well as the effectiveness and efficiency with which its programmes are implemented. Although BRR reports must be published at a specific time in the budget cycle, it is clear that the work that informs the report must be ongoing.
1.2 According to Section 2 of the Correctional Services’ Act (CSA), the Department of Correctional Services (DCS) is mandated to contribute towards maintaining and protecting a just, peaceful, and safe society, by enforcing court-imposed sentences in the manner prescribed by the CSA, detaining inmates in safe custody and promoting social responsibility and human development of all offenders and persons subject to community corrections.
1.3 The Portfolio Committee on Correctional Services is mandated to, amongst its other statutory obligations, support the DCS in delivering on its mandate through rigorous monitoring of the implementation of, and adherence to, policies such as the White Paper on Correctional Services (“White Paper”) and legislation such as the CSA, as well as the delivery of services to all sentenced and unsentenced offenders incarcerated in South Africa’s state-owned and privately operated correctional centres.
1.4 At the start of its term in May 2010, the Committee had agreed to six focus areas that inform its oversight activities. Most importantly the Committee agreed to intensify oversight of the DCS’ administration and financial management, as weaknesses in that area impact negatively on, amongst others, the implementation of the rehabilitation and reintegration objectives contained in the “White Paper”. To this end, the Committee receives quarterly financial and administrative reports from the DCS which are closely scrutinised, in order to detect weaknesses and recommend remedies in a timely manner. The Committee is not merely a watchdog over the DCS and its entity, the Judicial Inspectorate for Correctional Services (JICS), but a strategic partner in ensuring that the vision of a better life for all South Africans, shared by Parliament and enshrined in the Constitution, is vigorously pursued. The Committee’s oversight must therefore be driven by ensuring service delivery to both sentenced offenders and remand detainees i.e. humane conditions of incarceration, effective rehabilitation and reintegration programmes, and adequate care and development. The successful delivery of these programmes will ensure that upon release, offending behaviour would have been “corrected”, thus ensuring successful reintegration of offenders.
1.5 The JICS receives its budget from the DCS. At the time of the compilation of this report, the JICS had however not yet tabled its 2009/10 Annual Report and therefore their performance in the 2009/10 financial year will not be detailed here.
1.6 In preparing to report on the DCS’ financial and service delivery performance for the 2009/10 financial year and the first two quarters of the current financial year the Committee considered, amongst others, all its previous reports and recommendations related to the DCS’ service delivery and financial performance, the 2009/10 Annual Report and Financial Statements, National Treasury-published expenditure reports, reports of the Standing Committee on Public Accounts (SCOPA) and the Auditor-General of South Africa (AGSA), DCS briefings to the Committee, as well as stakeholder-input on the DCS’ performance.
1.7 The Report comprises four parts detailing the Committee’s observations and recommendations (Part A); analyses of DCS’ 2009/10 Annual Report and Financial Statements (Part B); and its prevailing strategic objectives, budget allocation and financial performance to date (Part C); as well as the Committee’s concluding remarks (Part D).
PART A: OBSERVATIONS AND RECOMMENDATIONS 1.1 OBSERVATIONS 1.1.1 The Auditor-General’s assertion that, had the DCS been audited on its pre-determined service delivery objectives, it would have received an adverse opinion, is noted with concern. This assertion echoes the Committee’s own evaluation of centre-level service-delivery in particular. 1.1.2 Unlike previous years, the Auditor-General did not note overcrowding in correctional centres as a matter of emphasis. This is welcomed, particularly as overcrowding can largely be attributed to the large numbers of remand detainees in the DCS’ care. The time a person spends incarcerated without having been sentenced is largely dependent on the speed with which matters are investigated, and court proceedings completed. Prison overcrowding can therefore not be reduced without dedicated efforts from both the departments of Justice and Constitutional Development, and Police. 1.1.3 Despite the DCS’ persistent qualifications owing to poor performance and financial management, and despite SCOPA recommendations, the DCS has failed to strengthen its internal audit capacity. This has without a doubt contributed to its persistent audit qualification. 1.1.4 Both stakeholders and the Committee have raised concerns about DCS senior managers’ capacity to manage. Regions are not adequately held to account, and there appears to be no effective system for managing their performance. Senior managers appear to be completely unaware of what happens at centre-level, as they rely solely on sporadic, and often inaccurate reports received from regions. 1.1.5 The Committee realises that the “White Paper” is to be implemented over a 15-year period, and therefore does not expect radical improvements to occur overnight. However, the fact that there appears to be little or no improvement in the DCS’ performance, and even more disturbingly, little if any commitment to such improvements, is a matter of grave concern.
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The Committee has reported its extreme concern that despite the rehabilitation and social reintegration objectives contained in the “White Paper”, and echoed in the DCS’ core mandate, Development, Care and Social Reintegration programmes remain underfunded. The Committee undertook to interact with the DCS to monitor whether there is synergy between strategic objectives and budget allocation. The 2010/11 budget did not reflect such synergy, and thus it is difficult to believe the DCS’ claim that it is placing rehabilitation at the centre of its activities.
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It is a matter of serious concern that programmes responsible for the welfare and rehabilitation of offenders have always received the smallest share of the DCS’ budget. It remains to be seen whether, without sufficient funds having been allocated to these programmes, the DCS will achieve Government’s objective of reducing serious and violent crime through rehabilitating inmates and equipping them with skills to be used after release, thus reducing the recidivist rate and contributing to South Africans being and feeling safe.
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The high rate of repeat-offending is indicative of the DCS’ limited success in the area of social reintegration. If a significant improvement is to be made, a radical shift in the budget allocation to this programme would have to be effected..
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The Inspecting Judge is mandated with, amongst others, reporting on the treatment of inmates, conditions and any corrupt or dishonest practices in correctional centres .This duty is to be performed independently and without fear or favour. While the JICS has played an important role in creating awareness around conditions of detention, especially through its annual reports, concerns about its effectiveness and power to improve conditions of detention remain. This is largely owing to concern about how independent it can be, given that it is reliant on the department it is meant to monitor, for its funding.
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Finally, the Committee must emphasise its extreme concern about the DCS’ recent leadership instability. In the past five years alone, the DCS has had three accounting and three chief financial officers. At least two regional commissioners have been suspended for very long periods, one for more than a year. In addition, resignations and suspensions in key management positions are too frequent not to impact negatively on the DCS’ stability.
2.2 RECOMMENDATIONS 2.2.1 The National Commissioner must as a matter of urgency put in place measures for ensuring compliance with all relevant legislation, particularly the CSA, and service delivery in line with its mandate. The DCS reported that a turnaround strategy has been developed to address these and other challenges. This strategy must contain clear performance indicators, be clear about who is responsible for functions, and the sanctions should those functions not be performed. The complete turnaround strategy should be tabled before the Committee by no later than 28 February 2011. 2.2.2 The DCS, though not solely responsible for the high levels of overcrowding in its centres, must spearhead interventions aimed at lowering the inmate population, as it is feeling its impact most. Heads of correctional centres (HCCs) have the powers to approve parole for eligible inmates serving sentences of two years or less. The National Commissioner must submit a report detailing the extent to which HCCs apply their powers for reducing overcrowding, and the numbers of offenders that have been released as a result thereof. This report, as well as the proposed policy/action plan for managing the remand system, must be tabled before the Committee by 28 February 2011. 2.2.3 Internal Audit departments play an integral role in ensuring that effective internal controls are in place, thus enabling government departments to identify areas of weakness before they become areas of audit qualification. All the DCS‘ internal audit vacancies must be filled as a matter of urgency. The National Commissioner must, by 24 November 2010, provide the Committee with a progress report in this regard. 2.2.4 Asset management remains a major challenge and a source of qualification for the DCS. The DCS must theredfore develop and implement a strategy that will address verification, recording and documentation of tangible assets. While the Committee welcomes the appointment of interns as an immediate intervention, their appointment will be temporary. The interns must be appointed by 31 January 2011, and the Chief Financial Officer must, by 15 March 2011, provide a report on this intervention’s sustainability beyond the expiration of the intern-contracts.
2.2.5 The DCS’ attempts at realising the rehabilitation and reintegration objectives contained in the White Paper are undermined by its continued administrative challenges. Leadership instability, lack of discipline and corruption seriously impede delivery and must be addressed as a matter of urgency. Long suspensions are of particular concern, and will therefore be monitored closely. The National Commissioner must ensure that investigations into allegations against all officials, including senior managers, are addressed within the required timeframes, and recent years’ extraordinarily high staff turnover at senior management level must be prevented going forward.
2.2.6 As recommended in previous reports on the DCS’ budget allocation, the budget must be aligned with its rehabilitation and reintegration objectives. The DCS must reconsider and increase its targets for developmental interventions and make the requisite allocations to its Care and Development, Social Reintegration and Corrections programmes. These programmes are integral to the reduction of recidivism, which is the only measure for determining the DCS’ success in “correcting” offending behaviour and rehabilitating offenders.
- As the JICS plays a major role in ensuring humane detention, all measures aimed at strengthening it, including a legislative review, should be investigated. The National Commissioner must, by 28 February 2010, provide a progress report on the DCS’ exploration of ways in which the JICS’ can be allocated its own budget and be sufficiently resourced to perform the functions it is mandated to perform.
PART B: THE DCS’ 2009/10 ANNUAL REPORT AND FINANCIAL STATEMENTS 3.1 While the DCS’ 2009/10 Annual Report reflects an attempt to improve on previous reports, more should be done to guarantee a more reader- friendly and accessible document that clearly outlines whether strategic objectives for the year under review have been met, and, if not, the reasons for that. In some instances information is not presented in the same format as the target, making it difficult for the reader to determine whether the target has been achieved. Furthermore some indicators could not be linked to targets, and more disturbingly some information was, upon closer interrogation, found to be inaccurate. 3.2 Austerity measures and capacity constraints have led to most of the targets not being met. The 2009/10 financial statements reflect an under-expenditure of 1.1%. Underspending occurred in the security, care, development and facilities programmes and can be related to, amongst others, lower than anticipated expenditure on medical benefits for staff with the conversion to GEMS, savings owing to the non- appointment of officials to the New Kimberley Correctional Centre, vacancies resulting from natural attrition, lower than expected expenditure arising from late billing by the Department of Public Works (DPW) as well as the non-finalisation of the new Public Private Partnership (PPP) correctional centre bid process.
3.3 Performance across programmes 3.3.1 Administration: Compliance with regard to financial and supply chain management remains a major challenge, with the DCS not meeting any of the targets it has set for itself. Though it managed to maintain a less than 50% vacancy rate in relation to scarce skills and professionals, it failed to meet any of the other targets for compliance with Human Resource policies, procedures, standards and applicable legislation. 3.3.2. Security: In an effort to improve security, the DCS intended to roll out eight additional sites with security access control and fences. This could however not be realised owing to there being no budget for this activity. This is surprising given that the security programme received a budget allocation of R4.4 billion. The DCS reported 2 240 assaults, a figure far below the 83 per 10 000 inmates targeted. 3.3.3 Corrections: The DCS failed to comply with policy, procedure, standards and legislation applicable to this programme. It further failed to implement unit management, structured day programmes and the three-meal system. The installation of video arraignment equipment and the development of remand detention tools and protocols were also not achieved. At the end of March 2009, 165 230 offenders were incarcerated in correctional centres across the country i.e. the 140% overcrowding target, maintained across centres, could not be met. 3.3.4 Care: The 2009/10 strategic plan did not reflect clear and measurable targets for the attendance of care programmes. The Annual Report however claims that 171 746 social work sessions were conducted, thus exceeding the targeted 105 sessions. In terms of psychological services, 9 494 offenders participated, against a target of 8 400 offenders. This was attributed to an increase in the number of psychologists in the period under review. 3.3.5 Development: Only 15 130 offenders participated in formal education programmes i.e. the target was not met. This failure was ascribed to the DCS not meeting the Department of Education’s requirements for fulltime schools, thus resulting in a decrease in enrolments. Although the report is unclear as to whether self- sufficiency targets have been met, it does reflect that the DCS produced 1 160 748 kg of chickens, 1 543 542 dozen eggs, 6 133 467 litres of milk and 581 477 kg of red meat. It further produced 56 632 wood, 71 752 steel and 1 350 285 textile products. 3.3.6 Social Reintegration: Owing to austerity measures and capacity constraints, most of the targets related to the supervision of probationers and parolees, and compliance with policy and procedures programmes could not be met. Although the DCS continued with their monitoring of parolees and probationers, the number of parole violations increased. 3.3.7 Facilities: All regions implemented existing policies, including the Minimum Facilities Standards. Renovations and upgrading of existing facilities continued in the 2009/10 financial year: Ceres (262 additional beds); Brandvlei (346 additional beds) and Van Rhynsdorp (338 additional beds). As in earlier years, provision was made for 12 000 bed spaces via public-private partnership projects at Allandale, East London, Klerksdorp and Nigel. Provision was also made for 53 Parole Board offices of which 81.1% were completed. 11.3% are in the process of being built, while 7.5% are at the tender stage.
3.4 Budget Overview 3.4.1 The DCS was allocated an adjusted budget of R 13 834 545 billion in the 2009/10 financial year and succeeded in spending up to 98.9% of that budget. The 13.6% average annual growth as projected in the 2009 Estimates of National Expenditure was as a result of the following additional allocations over the medium term: R300 million per year for the implementation 7DE: R419.5 million, R409.7 million, and R415.4 million for inflation-related adjustments in compensation of employees; and a R1.2 billion adjustment to the 2011/12 baseline as a capital contribution to the public- private partnership facilities. 3.4.2 R900 million was added to the 2009/10 financial year’s budget allocation: R308 million was added for Administration, R248 million or Security, R50 million for Corrections, R174 million for Care, R1.7 million for Development, R13.2 million for Social Reintegration and R103 million for Facilities. Savings of up to R187 million have been made in goods and services, and transfers to public entities. In addition the implementation of the 7DE will result in savings of up to R720 million per year on overtime. 3.4.3 There has been movement of funds between different programmes. The Administration, Corrections, Development and Facilities programmes showed net increases of R40,77 million, R10 million, R18.1 million and R21,6 million respectively. While the Security, Care and Social Reintegration programmes showed net decreases of R60, 140 million, R25.4 million and R4.9 million respectively. 3.4.4 In the year under review the DCS incurred fruitless and wasteful expenditure to the value of approximately R87 000. This was due to the hiring of a charted aircraft at R25 000, a trip from Makhado to Randburg at R1 000, and R61 000 paid for an EAP conference which delegates failed to attend. All three of these cases are being investigated. The DCS has also incurred material losses to the value of R9 million. 3.4.5 The Accounting Officer condoned irregular expenditure to the value of R788 000, while and additional R377 000 in irregular expenditure is still being investigated. Two officials are said to have received written reprimands for approving price quotations to the value of R536 000 when they ought to have invited bids.
3.5 Audit outcome
3.5.1 The DCS was unable to provide supporting documents for adjustments to the value of R129 million in the opening balance, and therefore the occurrence, accuracy and completeness of these adjustments could not be verified. The DCS’ records also did not allow for an alternative means of verification. 3.5.2 The Auditor-General could not confirm the existence i.e. physically identify major movable tangible assets to the value of approximately R63 million, nor could the completeness of major movable tangible capital assets disclosed in the financial statement be verified.
3.5.3 Departments are required to value assets at cost, fair value or R1. The DCS’ major movable tangible assets as disclosed in the financial statement did however not always reflect the cost or fair value of the assets and as a result, assets were over-valued by approximately R57 million. This is the consequence of inadequate control measures over information captured in the assets register.
3.5.4 The Auditor-General reported that the unauthorised expenditure to the value of R483 million that the DCS incurred in the 2008/09 financial year was, at the time of the latest audit report, still awaiting Parliament’s authorization.
3.5.5 Owing to a significant loss in state vehicles (R5 million), claims ( R3 million ) and other sources (R1million) the DCS incurred material losses to the value of R9 million.
3.5.6 The DCS failed to comply with Treasury Regulations 8.2.3 and section 38 (1)(f) of the Public Finance Management Act (PFMA) as it did not always settle debt to creditors within 30 days of the receipt of invoices
3.5.7 The Auditor-General also detailed a number of weaknesses in the DCS’ leadership, governance, and financial and performance management that had contributed to the qualified audit opinion. These included a lack of an effective organisational structure, placing people with appropriate accounting skills in assets management, especially at regional level; insufficient action taken to address risks relating to the achievement of complete and accurate financial and performance reporting; human resource policies that did not facilitate adequate training and discipline of personnel as far as assets management is concerned; and internal controls that were not carefully selected and adequately developed to prevent material misstatements in financial reporting and reporting on predetermined objectives.
3.5.8 The Auditor-General further noted that had the DCS been audited on its service delivery objectives, it would have received an adverse audit opinion.
PART C: THE DCS’ PREVAILING STRATEGIC OBJECTIVES, 2010/11 BUDGET ALLOCATION AND FINANCIAL PERFORMANCE AS AT SEPTEMBER 2010
4.1 Overview of the DCS’ key strategic areas
4.1.1 According to its strategic plan the DCS is committed to putting rehabilitation at the centre of all its activities through: - the integrated application and direction of resources to the correction of offending behaviour, and the promotion of social responsibility; - the provision of cost-effective correctional facilities that will promote efficient security, corrections, care and development services; and - progressive and ethical management and staff practices within which every correctional official performs an effective correcting and supportive role.
4.1.2 The DCS has committed itself to the pursuit of the following five priorities over the medium term: - an intensified fight against crime and corruption through improved security, hopefully resulting in a decrease in escapes, assaults and unnatural deaths; - entrenching corrections as a societal responsibility through, amongst others, facilitating structured stakeholder participation, the establishment of community safety fora, contributing to the development of the national policy framework for community safety, and the promotion of the care and development of offenders in order to facilitate reintegration and decrease recidivism; - improving service delivery at correctional centre level through the development of correctional sentence plans and the establishment of remand detention facilities; - building internal capacity for improved centre level service delivery; and - aligning the Correctional Services legislation with the 2005 White Paper on Corrections
4.2 Overview of the DCS’ 2010/11 budget allocation
4.2.1 The DCS received R15 129,1 billion in the 2010/11 financial year i.e. 3,8 % of the total national budget and 14 % of the allocation to the Justice, Crime Prevention and Security (JCPS) cluster, which received 23,6% (R108 781 billion) of the national budget. The DCS’ budget thus reflects a R1,3 billion nominal increase which translates to a real increase of only R344,5 million.
4.2.2 The DCS’ allocation is expected to reach R18,3 billion in the 2012/13 financial year i.e. an annual increase of 9,7 % owing largely to an additional allocation over the Medium-Term Expenditure Framework (MTEF) period for the Occupational Specific Dispensation (OSD) for correctional officials (R300 million per year) and the adjustment to compensation of employees (R583,1 million in 2010/11; R619,4 million in 2011/12 and R652,8 million in 2012/13). The allocation of additional funds for the construction of four new public-private partnership (PPP) correctional facilities in Paarl, East London, Klerksdorp and Nigel, at a combined cost of R1,4 billion, has also contributed to the increased allocation.
4.2.3 As was the case in 2009/10, the Administration and Security programmes received the largest allocation of the budget – 26,3% and 34% respectively. 70% (R10 483 billion) of the total budget allocation will go towards the compensation of employees which, until 2012/13 is expected to grow at an average annual rate of 7.6%. 4.2.4 Together receiving only 7,3% of the total budget, the Development and Social Reintegration programmes received the lowest allocation. In addition, the Care programme showed a 5% decrease (R80,1 million in real terms).
4.3 Overview of the DCS’ allocation and measurable objectives across its seven programmes 4.3.1 The Administration programme provides the administrative, management, financial, information communication and technology, research, policy co-ordination and good governance support functions necessary for service delivery, good governance and accountability to oversight institutions. As in 2009/10 the programme has received the second largest allocation. The 14, 66% increase in the allocation in the current financial year and the increases in recent years are due mainly to the DCS’ use of consultants for the provision of computerised systems, maintenance of information systems and for payment of legal, as well as internal and external audit services. As stated above, in the medium-term growth in expenditure will be mainly for the implementation of the OSD, inflation-related salary adjustments and allocations for the Master Information System. Measurable objectives: provision of effective and efficient financial and supply chain management; improving human resource capacity and management; and ensuring effective planning, resourcing, delivery, project management, monitoring, evaluation and reporting for improved service delivery. 4.3.2 The Security programme aims to provide safe and healthy conditions of incarceration that are consistent with human dignity for all inmates, thereby ensuring security for both personnel and the public. It remains the programme receiving the highest allocation - in 2010/11 34% of the total budget. It reflects a nominal increase of 3.66 % i.e. just over R5,1 billion, in real terms translating to a R141, 3 million (2,85%) decrease compared to 2009/10 allocation. The activities of this programme are labour intensive and employee compensation accounts for 98%of the programme’s budget. Measurable objectives: preventing inmates from participating in criminal activities and escaping, by providing an environment that ensures the safety of all persons entrusted to the DCS’ care, thereby ensuring public safety.
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The Corrections programme provides needs-based correctional sentence plans and interventions based on an assessment of an inmate’s security and criminal profile. It targets all elements associated with offending behaviour, and focuses on the offence for which a person is sentenced to correctional supervision, remanded in a correctional centre, or paroled. The programme receives only 10,5% of the total budget, reflecting a 27,38% increase and a real increase of only R240 million. 99,3% of the allocation to this programme will go towards employee compensation. Increases in expenditure are ascribed to the implementation of the OSD and Seven-Day Establishment (7DE) as well as inflation-related salary adjustments.
Measurable objectives: to address the specific rehabilitation needs of persons paroled, sentenced to correctional supervision or incarcerated in a correctional centre, through regular assessment and the provision of needs-based correctional programmes to address all the elements associated with offending behaviour.
4.3.4 The Care programme provides for needs-based programmes and services aimed at maintaining the personal wellbeing of incarcerated offenders by facilitating physical fitness; social functioning; health care and spiritual, moral and psychological wellbeing. The allocation to this programme shows a 5,06% decrease, in 2010/11 receiving only R1, 504 billion, 47% of which will go towards employee compensation. The increase in expenditure on this programme over the MTEF is mainly due to additional remuneration for health care workers in line with the OSD and inflation- related salary adjustments. Measurable objectives: to ensure the personal well-being of incarcerated persons by providing various needs- based services
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The Development programme focuses on the personal development of offenders through the provision of programmes and services aimed at both skills and social development; including technical training, recreation, sports, education and the operation of prison farms and production workshops. The programme receives only 3,5% of the total budget i.e. R526 million, 78% of which goes towards employee compensation, and growth in expenditure over the MTEF period is largely due to the implementation of the 7DE and the OSD.
Measurable objective: to provide needs-based educational, skills and other development-related programmes, thereby facilitating the reintegration of offenders into communities.
4.3.6 The Social Reintegration programme provides services focused on offenders’ preparation for release, their effective supervision after being paroled, and on facilitating their social reintegration. Although the programme reflects a 21,7% increase, it receives only 3,8% of the total budget i.e. R574,7 million. 96.6% of that allocation goes towards employee compensation. Measurable objective: to provide needs-based programmes and services to offenders to facilitate their social acceptance and effective reintegration of offenders into their communities.
4.3.7 The Facilities programme provides physical infrastructure that supports safe and secure custody; humane conditions; and corrective services, care, development and general administration. This programme has been allocated R1,813 billion, reflecting a 9,33% increase accounting for 12 % of the total budget. The allocation of additional funds for the construction of four new (PPP) correctional facilities in Paarl, East London, Klerksdorp and Nigel at a combined cost of R1.4 billion has also contributed to the increased allocation. Measurable objective: Provide facilities to support the department in its core function of security, corrections, development, care and social reintegration.
- The DCS has identified the following 11 specific strategies for realising its five medium priorities:
4.4.1 Implementation of 7-Day Establishment: The DCS intends to implement the new shift system in 2010/11, but full implementation is only expected to be reached in 2013/14. 4.4.2 Remand Detention Management: The 2010/11 target is to develop a white paper on remand detention and to establish a remand detention management branch. This priority will be pursued further in the 2011/2012 financial year.
4.4.3 Offender Population Management: In its efforts to improve the management of the offender population, and the effective management of the remand detention population, the DCS will in 2010/11 keep to a level of no more than 38% overcrowding, reducing it by 2% in each of the following years until overcrowding is eradicated altogether.
4.4.4 Utilisation of offender labour: In 2010/11 the DCS intends to effect a 25% improvement on the 2005 agriculture and production workshop baseline for offender skills utilisation and employability in agriculture and production workshops. This would be achieved through increased participation in skills development programmes.
4.4.5 Enhanced Parole System: The DCS has since 2009/10 been engaged in a review of the parole system, and for the 2010/11 year envisaged the development of revised medical parole policy and legislation, the finalisation of the incarceration framework and the development of a work study report on revised norms and caseloads for correctional supervision and parole boards.
4.4.6 Service Provision for Youth and Child Offenders: In its efforts to enhance the level of education among offenders, particularly youth and children, the DCS will in 2010/11 report on offender enrolment and participation in formal education, skills development, sports, recreation, art and culture and participation in production workshops and agricultural programmes. 4.4.7 Improvement of Governance: The DCS will implement a mechanism for the effective prevention, detection and response to fraud and corruption in the Department, by, in 2010/11, developing, approving and implementing a litigation turnaround strategy. Progress will be reported on a quarterly basis. Furthermore, the effectiveness of the DCS’ anti–corruption and fraud prevention programme elements will be assessed.
4.4.8 Stakeholder Relations Management: The DCS must develop and execute an integrated stakeholder relations management strategy for Correctional Services. To this end the DCS will in 2010 /11 aim to improve relations with existing and new stakeholders through the effective execution of a five-year integrated and overarching stakeholder relations management strategy that includes development and use of quantitative and qualitative measuring tools.
4.4.9 Delivery on Targets on Performance Indicators: The DCS must improve its monitoring of service delivery against performance indicators and service delivery targets in its operations strategy, and will from 2010/11 produce annual performance reports.
4.4.10 Legislative Framework: The DCS will develop a policy and legislative framework on remand detention. Its target for 2010/11 is a “widely consulted White Paper”.
4.4.11 Offender Rehabilitation Path Implementation: This strategy is aimed at enhanced offender participation in skills development programmes, resulting in increased employability. The target for 2010/11 is increased participation in sports, recreation, and art and culture programmes, with special emphasis on the participation of youth and child offenders.
4.5. Summary of areas where, following its in-year review, the DCS’ targets for 2010/11 have been shifted.
4.5.1 According to its 2009/10 strategic plan the DCS intended to reduce its vacancy rate to 7% in the 2010/11 financial year. That target was, however, reduced to 3%. The 2009/10 plan sets the turnaround time for the filling of vacancies for the 2010/11 year at 90 days, but the 2010/11 strategic plan has set the target at 60 days. While the 2009/10 plan sets targets for reducing the vacancy rate for professionals, that target is not contained in the 2010/11 strategic plan at all.
4.5.2 In 2009/10 the DCS set a less than 3.9 escapes per 10 000 inmates target, but in the 2010/11 that target has been reduced to 4 escapes per 10 000 inmates. Similarly the 2009/10 strategic plan targeted a 10% reduction in security incidents over the festive season, while the latest review sets the target at 5% for the same period.
4.5.3 In 2009/10 the DCS committed itself to compiling Correctional Sentence Plans (CSPs) for 12 100 newly admitted offenders serving sentences of 24 months and more; yet the current strategic plan increased that target to all (100%) of newly admitted offenders serving sentence of longer than 24 months having CSPs prepared.
4.5.4 The 2009/10 strategic plan set the target for the installation of video arraignment facilities at 12 correctional centres, whereas the current strategy sets the target at roll-out to 14 facilities.
4.5.5 The 2009/10 strategic plan did not have measurable targets for social work, psychological service, spiritual care, heath care and HIV and AIDS programmes; whereas the 2010/11 plan has set clear and measurable targets for provision of these services.
4.6 Financial Performance in the first two quarters of 2010/11 4.6.1 Of the R15.1 billion budget allocated to it, the Department had, by the end of September, spent R6.5 billion (43%). This is 6% lower than the 49% approved projection. The DCS has underspent on all but the care programme. Explanations for the under-expenditure include lower than anticipated expenditure on compensation for employees, owing to migration to centres; advertised posts not being filled; delays in the re-allocation of posts from the security programme; and delays in the finalisation of salary negotiations. Clearing backlogs on purchases of items such as food, medicines and hygiene materials for inmates, resulted in the slightly higher than projected expenditure in the Care programme. 4.6.2 Section 43 of the Public Finance Management Act (No 1 of 1999) makes provision for virements and shifting of funds from one programme to another, and the movement of funds within programmes, provided that the accounting officer meets the requirements outlined in subsections (2) and (4). While the DCS has not indicated or reported any virements, additional funds have been spent on the Administration and Reintegration sub-programmes despite such funding not having been budgeted for.
PART D: CONCLUSION The Portfolio Committee on Correctional Services, having considered the DCS’ performance in the 2009/10 financial year, and the first two quarters of the current financial year, remains dissatisfied with the latter’s financial management and service delivery performance. The recommendations made in this report are aimed at, in the main, addressing the DCS’ perennial audit qualification owing to poor asset control, while echoing earlier recommendations for the alignment of the DCS’ budget with its rehabilitation mandate. The Committee trusts that under the leadership of the recently appointed National Commissioner and Chief Financial Officer positive change will be effected. Report to be considered
- The Budgetary Review and Recommendation Report of the Portfolio Committee on Mining on the performance of the Department of Mineral Resources for the 2009/10 financial year, dated 21 October 2010.
The Portfolio Committee on Mining, having assessed the performance of the Department of Mineral Resources, reports as follows:
- Introduction
During May 2009, the President of the Republic of South Africa announced the restructuring of Cabinet and national departments to align the structure and electoral mandate of government with developmental challenges. As a result, the Department of Minerals and Energy (DME) was divided into two Departments, that of Mineral Resources and that of Energy. A government-wide task team was established under the auspices of the Department of Public Service and Administration (DPSA) to oversee the transition. The establishment of the Department of Mineral Resources as a stand alone Department was finalised at the end of the 2009/2010 financial year. This report therefore seeks to analyse, amongst others, the performance and expenditure of the Mineral Resources part of the former DME during the 2009/2010 financial year.
- The Committee
1.1.1 The role of the Committee
In terms of the Constitution of the Republic of South Africa, Portfolio Committees have a mandate to legislate, conduct oversight over the Executive and facilitate public participation. The Portfolio Committee on Mining’s mandate is governed by Parliament’s mission and vision, the rules of Parliament and Constitutional obligation. The mission of the Portfolio Committee on Mining is to contribute to the realisation of a developmental state and ensure effective Service Delivery through discharging its responsibility as a Portfolio Committee of Parliament. Its vision includes enhancing and developing the capacity of Committee Members in the exercise of effective oversight over the Executive Authority. One of the Committees core objectives is to oversee, scrutinise and influence the action of the Executive and its agencies. This implies holding the Executive and related entities accountable through oversight of objectives of its programmes, scrutinising its budget and expenditure (annually), and recommending through Parliament actions it should take in order to attain its strategic goals and contribute to service delivery.
Furthermore, Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009 (the Act) provides that the National Assembly, through its committees, must annually assess the performance of each national department and these Committees must annually submit Budgetary Review and Recommendations reports for tabling in the National Assembly. These should be submitted to the Minister of Finance and the relevant Ministers.
- Process/method followed by the Committee in writing the BRR Report
For the period under review, the Portfolio Committee on Mining, in exercising its oversight role, had interacted with the Department of Mineral Resources and analysed its 2009/10 to 2011/12 strategic plan, the 2009/10 annual report, the 2009/10 Estimates of the National Expenditure and used the Constitution as its basis.
- The Department
The Department of Mineral Resources (DMR) is the primary Government institution that is responsible for formulating and implementing policy on mining. It reports to and advises the Minister of Mineral Resources who, in conjunction with the Cabinet, takes final responsibility for Government policy. The DMR is headed by the Director-General responsible for ensuring the exploration, development, processing, utilisation and management of South Africa’s mineral resources.
The mandate of the stand alone Department of Mineral Resources is to ensure transformation, economic growth, health, safety and sustainability of the minerals and mining sector. Its vision is to promote investment in the mineral sector and through regulation ensure a healthier, safer and equitably transformed mineral sector by 2014, and also be a leader in the transformation of South Africa through economic growth and sustainable development by 2025. Its mission includes promoting and regulating the Minerals and mining sector for transformation, growth, development and ensures that all South Africans derive sustainable benefit from the country’s mineral wealth.
The mandate of the former Department of Minerals and Energy was to provide services for effectual transformation and governance of minerals and energy industries for economic growth and development, thereby improving the quality of life. The vision of the Department was to become the world-class minerals and energy sectors through sustainable development, with its mission being to regulate and promote the minerals and energy sectors for the benefit of all.
- Department’s Strategic Priorities and Programmes
2.1 Strategic Priorities of the Department
The strategic objectives of the Department of Minerals and Energy (DME) for the period under review comprised the following:
• Promoting and regulating the minerals and energy sector, through ensuring optimal service to all stakeholders by improving turnaround times, providing clear regulatory and policy frameworks and credible and accessible information, building alliances and partnerships, and improving the awareness and reputation of the DME.
• Ensuring effective service delivery through efficient organisational processes-through implementing legislation, consistent monitoring and enforcement guidelines, standardised policies and procedures, service standards and managed service level agreements, as well as understanding and managing customer expectations and providing regular consultation and feedback.
• Promoting and maintaining a learning organisation-by attracting, developing and retaining skills, improving leadership and management capabilities, instilling core institutional values and managing institutional knowledge.
• Ensuring efficient, effective and economic use of financial resources-by aligning strategy with budget, managing budgets and costs, effectively providing State-owned entity oversight and ensuring good corporate governance.
2.2 Programmes of the Department
The activities of the Department were organized in the following programmes: Programme 1: Administration
The purpose of the Administration programme was to enable the Department to deliver on its mandate by providing strategic management and administrative support to the Department of Minerals and Energy and its Ministry.
Programme 2: Promotion of Mine Health and Safety
The purpose of the Promotion of Mine Health and Safety programme was to execute the Department’s statutory mandate to safeguard the health and safety of the mine employees and people affected by mining activities.
The measurable objective of the programme was to reduce mining-related deaths, injuries and ill-health through the formulation of national policy and legislation, the provision of advice and application of systems that monitor, audit and enforce compliance in the mining sector.
Programme 3: Mineral Regulation
The purpose of the Mineral Regulation programme was to regulate the minerals and mining sectors to achieve transformation and sustainable development.
The objective of the programme was to transform the minerals and mining sectors into one that competitively contributed to the sustainable development in the country.
Programme 4: Mineral Policy and Promotion The purpose of this programme was to formulate mineral-related policies and promote the mining and minerals industry of South Africa, making it attractive to investors.
The measurable objective of the programme was to, through research, provide relevant information to enhance global competitiveness, review policies and formulate legislation to achieve transformation and attract new investment into South Africa’s minerals industry.
Programme 7: Associated Services
The purpose of the Associated Services programme was to provide services in support of the Department’s mandate through funded and non-funded statutory bodies and organisations.
The measurable objectives were to enhance the Department’s objectives through policies and directives, promoting its legislative mandate and leading to the creation of an environment conducive to sustainable development, investment and the improvement of the quality of life of all South Africans.
- Analysis of the Department’s Prevailing Strategic and Operational Plans
Programme 1: Administration
Under this programme, the Department has done the following: • Successful implementation of the President’s request to split the Department of Minerals and Energy into Department of Mineral Resources (DMR) and Department of Energy (DOE) by: ▪ Successfully realigning the Organizational Structure in line with the new mandate of the newly established Department. ▪ Successful matching and placing. ▪ Developing a Service Level Agreement and agreeing to be the hosting Department for DOE. ▪ Sharing Support Services. • Evaluation of Memorandum of Understandings signed with prioritized countries. • Implementation of the Media and stakeholder engagement plan. • Compliance Framework developed, approved and implemented. • Policies, procedures and guidelines approved. • Development and implementation of the balance score card implementation plan. • Completion of the executive leadership development program through Wits. • Improved security measures. • Continued addressing of issues of transformation regarding vulnerable groups.
Programme 2: Promotion of Mine Health and Safety
With regard to this programme, the Department has managed to do the following:
• Improved stakeholder relationships by having quarterly meetings in all
regions with Unions and also by having quarterly meetings with the
Department of Labour, Department of Human Settlements and Director of
Public Prosecution.
• Addressed Health and Safety Risks by completing inquiries and
investigations as planned with Audits by 83 percent and Inspections by
91 percent.
• Developed Guidelines by reviewing the existing Guidelines (e.g.
Underwater Mining; Emergency Preparedness; and Drawpoints, Tipping
Points and Orepasses).
• Reviewed and developed internal policies and procedures by
establishing Exams Policy, Medical Appeal Procedure; and Inclusion or
Non-Inclusion of Fatal accidents in Statistics.
• Developed Human Resources by letting 99 Officials complete a course on
Risk Management in Mining and 97 Officials on Health and Safety
Training (Legal, Inspection, Audit, Investigation and inquiries).
Programme 3: Mineral Regulation
Some achievements of the programme include: • A total of 465 mineral rights were granted to historically disadvantaged South Africans (HDSA) against a target of 27. • A total of 73 women led companies were licensed against a target of 18. • The Mineral Regulation Branch conducted a total of 18 workshops with mineral and mining industry stakeholders against a target of 10. • The Branch achieved 317 Mining Charter compliance inspections against a target of 140. • It conducted 3 449 environmental management plan inspections against a target of 1 380.
Programme 4: Mineral Policy and Promotion
Achievements for this programme were the following:
• Mining Summit was held with all industry stakeholders.
• Mining Industry Growth Development and Employment Task Team (MIGDETT)
intervened to mitigate job losses and saved 60 000 jobs in excess.
• A strategy on sustainable growth and meaningful transformation of
mining industry by stakeholders was adopted.
• The state’s exposure to mining industry was evaluated leading to the
moratorium on disposal of State owned mining assets.
• A report outlining the mining industry’s progress against the
developmental targets agreed at the 2002 United Nations Commission on
Sustainable Development (UNCSD) was submitted.
• The Mining Charter Assessment report was completed.
• The Minister approved the strategy for rehabilitation of derelict and
ownerless mines.
- Analysis of Expenditure Reports
4.1 The Overall Departmental Allocations and Expenditures for 2009/10
For the period under review, the Department of Minerals and Energy was allocated an amount of R4.65 billion, which was 1.08 per cent of R429.64 billion which was the main budget. When adjustments are taken into account, the total budget amounted to R4.68 billion. Of the R4.68 billion budget, the Department managed to spend R4.54 billion or 96.9 per cent at the end of the fourth quarter of the 2009/10 financial year. The variance between total budget and actual expenditure amounted to R143.21 million or 3.1 per cent. This is less than the five per cent benchmark of the National Treasury. The expenditure in the fourth quarter per programme was as follows:
4.1.1 Administration:
The total budget for the Administration programme amounted to R257.3 million. The programme had spent R252.3 million or 98.1 per cent of this budget at end of the fourth quarter. This means that the programme under spent by R4.963 million or 1.9 per, which is an insignificant amount of under expenditure.
4.1.2 Promotion of Mine Safety and Health:
Programme 2 had a budget of R138.7 million after adjustments. Of this budget amount, the programme spent about R138.5 million or 99.9 per cent.
4.1.3 Mineral Regulation:
The total budget for Mineral Regulation programme was R151.1 million in the 2009/10 financial year. The programme spent R147.6 million or 97.6 per cent at the end of the fourth quarter. The reason for the lower than anticipated expenditure related to delays in the signing of contracts with appointed service providers and subsequent payments for projects aimed at rehabilitating ownerless and derelict mines.
4.1.4 Mineral Policy and Promotion:
Of the R69.3 million total budget allocated for this programme, R73.7 or 106.5 per cent was spent. The reason for the higher than expected expenditure under this programme was due to an increase in compensation of employees as a result of additional staff employed above the limitations of the existing approved structure.
4.1.5 Associated Services
Out of the R3.7 billion total allocated programme budget, R3.5 billion or 96.5 per cent was spent. The reason for the lower than expected expenditure was mainly due to transfers amounting to R82 million that did not take place as anticipated for the Integrated National Electrification Programme (INEP-Non Grid service providers), due to delays in the finalisation of the contracts with commissioned service providers.
Of the R43.1 million allocated for assistance to mines under this programme, R31.1 million or 72.1 per cent was spent. A total of R12 million was not spent due to delays in submission of invoices from beneficiaries of the mining subsidy.
4.2 Expenditure analysis per Economic Classifications
4.2.1 Transfers and Subsidies
A lower than expected spending in the 2009/10 financial year amounting to R143.2 million comprised of the following transfers:
• INEP: Non-grid service providers: Out of the R84 million total allocated programme budget, R1.3 million was spent leading to a lower than expected expenditure amounting to R82.7 million. This was due to delays in the procurement processes of appointing service providers and the signing of contracts thereof. • INEP municipalities: Out of the R932.95 million total allocated budget for transfers to municipalities, only R899.55 million was transferred as at 31st March 2010, culminating in a lower than expected expenditure of R33.41 million (equivalent to 3.6 per cent). This was due to late submission of requests for funds by municipalities and delays in finalising the service level agreements between municipalities and the Department. • Assistance to mines: Out of the R43 million total allocated budget, R31.1 million which translates to 72 per cent of the total available budget was spent leaving R12 million not transferred due to delays in submission of invoices from beneficiaries of the mining subsidy.
4.3 The First Quarter Expenditure Report for the 2010/11 Financial Year
In the 2010/11 financial year, the Department of Mineral Resources was allocated a budget of R1.0 billion which is 0.2 per cent of R461 billion which is the main budget. This does not take into account the adjustment. Of the R1.0 billion budget, the Department has managed to spend R249.1 million or 24.2 per cent at the end of the first quarter of the 2010/11 financial year. This is in line with the 25 per cent benchmark which the Department is supposed to spend every quarter. The expenditure in first quarter per programme was as follows:
4.3.1 Administration: Programme 1 was allocated a total budget of R239.0 million. The programme spent R67.4 million or 28.2 per cent of this budget in the first quarter. This means that the Department has over spent by 3.2 per cent in the first quarter budget. The over expenditure was due to spending on goods and services, which was associated with the payments of the previous financial year that took effect in April and May 2010. The expenditure for this programme was therefore expected to slow down during the second quarter of the financial year.
4.3.2 Promotion of Mine Safety and Health: Programme 2 was allocated a total amount of R145.9 million. Of this budget allocation, the Department spent about R34.6 million or 23.7 per cent. This was below the 25 per cent per quarter benchmark for the programme. This programme spent almost the total budget allocation for the 2009/10 financial year at 99.9 per cent.
4.3.3 Mineral Regulation: Programme 3 was allocated a total amount of R215.9 million in the 2010/11 financial year. The programme only spent about R40.5 million or 18.7 per cent at the end of the first quarter. Slower than expected spending was as a result of spending on goods and services, which stood at 5.3 per cent by the end of the first quarter. This programme managed to spend only 97.6 per cent of its total budget during the 2009/10 financial year.
4.3.4 Mineral Policy and Promotion: Programme 4 was allocated a total budget of R429.2 million in the 2010/11 financial year. The Department managed to spend about R106.7 million or 24.9 per cent. The spending was reported to be 18 per cent below the projections for the quarter and this was due to a technical challenge with the contracts that the Industrial Development Corporation of South Africa (IDC) signed with the SSME and for Assistance to mines where the administrative processes were not yet finalised, therefore the funds could not be transferred. This appears to be a recurring problem since an amount of R12 million reserved for assistance to mines could not be transferred in the last financial year due to administrative problems.
Of the R106.7 million that has been spent by the programme, R96.3 million or 90.2 per cent was spent on transfers and subsidies. This included transfers to the Council for Geoscience and Mintek.
4.4 Expenditure analysis per Economic Classifications
Table 1: Economic Classification spending trends as at the end of the fourth quarter of the 2009/10 financial year. | | |ACTUAL EXPENDITURE| | |ECONOMIC |AVAILABLE |TO DATE | | |CLASSIFICATIONS |BUDGET | |% SPENT | |Compensation of |352.344 |83 930 |23.8 | |Employees | | | | |Goods and Services |254 919 |53 724 |21.1 | |Current Payments |607 263 |137 654 |22.7 | |Transfers and |408 681 |108 421 |26.5 | |Subsidies | | | | |Payment for Capital |14 072 |3 076 |21.9 | |Assets | | | | |Payments for Financial| |12 | | |Assets | | | | |TOTAL |1 030 016 |249 163 |24.2 |
Source: National Treasury (2010)
4.4.1 Current Payments
4.4.1.1 The compensation of employees was allocated a total budget of R352.3 million in the 2010/11 financial year. The Department of Mineral Resources has managed to spend up to 23.8 per cent of this budget. This spending is in line with the 25 per cent spending per quarter benchmark.
4.4.1.2 Goods and Services were allocated a total amount of R254 919 in the 2010/11 financial year. The Department has only spent up to R53.7 million or 21.1 per cent on goods and services. This indicates that the Department has spent far below the 25 per cent benchmark for the first quarter in goods and services budget. It is therefore important to ascertain what could be the reason for this slower spending.
4.4.2 Transfers and Subsidies
The transfer and subsidies were allocated a total amount of R408.7 million for the 2010/11 financial year. The Department managed to spend about R108 4 million or 26.5 per cent of the budget. While this spending appears to be above the 25 per cent benchmark, the Department reported that it was 18 per cent below the projected expenditure for the quarter due to the administrative processes that were not finalised and the funds could therefore not be transferred by the IDC to the SSMEs for mine assistance.
4.4.3 Payments for Capital Assets (CAPEX)
The CAPEX were allocated an amount of R14.1 million in the 2010/11 financial year, however, the Department only spent about R3.1 million or 21.9 per cent in the first quarter. The reason for slower spending had to be ascertained from the Department.
4.4.4 Payments for Financial Assets
The Department spent only R12 000 on payments for financial assets for the first quarter of the 2010/11 financial year.
4.5 Roll-overs of Unspent Funds during 2010/11 Financial Year
Table 2 below reflects that an amount of R5 million roll-overs was requested for the rehabilitation of ownerless asbestos mines project at the end of the 2009/10 financial year and approved by the Ministry of Finance. Table 2: Approved Roll Overs for the Department |R thousand |Requested |Approved | |Department of Mineral Resources |5 000 |5 000 | |Rehabilitation of ownerless asbestos mines project|5 000 |5 000 |
Source: National Treasury (2010)
4.6 Virements and Shifting of Funds from and to, within and between Programmes during the Adjustment Period in line with the Legislative Framework
Though section 43 of the Public Finance Management Act No 1. of 1999 (the Act) makes provision for the virements and shifting of funds from one programme to the other, as well as movement of funds within the programme, there are certain requirements that need to be met by an accounting officer.
These conditions are as follows:
• The Act provides that the amount of a saving under a main division of
a vote that may be utilised to defray excess expenditure under another
main division may not exceed eight per cent of the amount appropriated
under that main division.”
Moreover, section 43 (4) states that the section on virements does not authorise the utilisation of a saving in:
• An amount specifically and exclusively appropriated for a purpose
mentioned under a main division within a vote;
• An amount appropriated for transfers to another institutions; and
• An amount appropriated for capital expenditure to defray current
expenditure.
Most importantly, it was noted that the Department of Mineral Resources did not report any virements and shifting of funds during the first quarter of the 2010/11 financial year.
4.7 Issues for the Committee’s Considerations
Mostly, the over or under expenditure of the departmental budget in the first quarter of the 2010/11 financial year was as a result of the following issues:
• The administrative processes that were not finalised and the funds could not be transferred. • Payments of the previous financial year that took effect in April and May 2010. • Slower expenditure on goods and services.
- Analysis of the Department’s Annual Report and Financial Statements
The following brief seeks to analyse the performance of the Department of Minerals and Energy during the 2009/2010 financial year with a special focus on the programmes of the Mineral sector.
- Performance analysis
5.1.1 Programme performance The former Department of Minerals and Energy was composed of seven programmes that are reflected in Table 3 below. Some of the programmes were sector specific like Promotion of Mine Health and Safety, Mineral Regulation, and Mineral Policy and Planning were specific to the minerals sector while Hydrocarbons and Energy Planning, and Electricity, Nuclear and Clean Energy were specific to the energy sector respectively. Administration and Associated Services programmes were over arching programmes providing services to both sectors.
This analysis therefore focuses on the minerals sector since It relates to the Department of Mineral Resources.
Table 3: Summary of expenditure per programme |Programme |Original |Total |Actual |Variance |Variance| | |Budget as per |Budget |Expenditure | | | | |ENE | | | | | | |R’000 |R’000 |R’000 |R’000 |% | |Administration |229.282 |250.216 |249.253 |963 |0.4 | |Promotion of Mine|133.027 |138.717 |138.543 |174 |0.1 | |Health and Safety| | | | | | |Mineral |168.066 |158.164 |150.596 |7 568 |4.8 | |regulation | | | | | | |Mineral Policy |62.363 |73.776 |73.724 |52 |0.1 | |and Promotion | | | | | | |Hydrocarbons and |55.285 |56.973 |56.925 |48 |0.1 | |Energy Planning | | | | | | |Electricity, |338.363 |338.936 |334.070 |4.866 |1.4 | |Nuclear and Clean| | | | | | |Energy | | | | | | |Associated |3 660.810 |3 665.222 |3 541.605 |123 617 |3.4 | |Services | | | | | | |Total |4 647 196 |4 682 004 |4 544 716 |137 288 |2.9 |
Source: Department of Minerals and Energy-Annual Report 2009/2010 5.1.1.1 Administration
The performance of this programme was affected by the split of the Department into two separate departments since it was providing services to both minerals and energy sectors. However, the Department attributed some of the failures to achieve set targets to budgetary constraints. This might be a sign of poor planning since the Department is supposed to draft its planning based on available resources.
Table 3 indicates that the Department under-spent by R963 000 on the Administration programme.
5.1.1.2 Promotion of Mine Health and Safety
The Inspectorate reported that it appointed 19 Engineering Learner Inspectors on 1 August 2007 on a two-year training contract which ended on 31 July 2010. The learners comprised 15 males and four females. The Inspectorate also reported that it offered 18 bursaries to students during the reporting period.
The objective of promoting and regulating minerals and energy sectors was not achieved. The failure to achieve this objective was attributed to the system still being developed.
The Inspectorate conducted fewer audits (83 per cent) and inspections (91 per cent) than it set out to and the reason proffered was the lack of capacity.
5.1.1.3 Mineral Regulation
The Annual Report of the Department indicated that funds amounting to R9.9 million were shifted from the Mineral Regulation programme in terms of section 43 of the Act, resulting to the reduction of the total programme budget from R168 million to R158 million as reflected in Table 3.
5.1.1.4 Mineral Policy and Promotion
The achievements of this programme during the year under review included the following:
• The programme continued to play a lead role in the Mining Industry Growth Development and Employment Task Team (MIGDETT), which sought to mitigate job losses and position the mining industry along a growth path with concurrent transformation. This intervention saved in excess of 60 000 jobs, representing more than half of the original projected losses. MIGDETT also developed a draft strategy on sustainable growth and meaningful transformation in South Africa’s mining industry with an emphasis on growth and transformation. • The Mineral Policy and Promotion undertook a survey of the South African assets in the mining industry with the ultimate aim of ascertaining the possibility for consolidation of those assets to establish the state owned mining company. Consequent to the findings of this exercise, Cabinet imposed a moratorium on the disposal of any state mining assets subject to a more detailed audit completed by the Department. The completed report on the creation of the state mining company was expected to be tabled for consideration by Cabinet during the 2010/2011 financial year. • The consultation of the beneficiation strategy was finalised and the strategy is now ready for tabling before Cabinet for formal adoption as a policy of South Africa. • The Branch developed a rehabilitation strategy for derelict and ownerless mines, which was approved by the Minister of Mineral Resources in December 2009. An interim rehabilitation oversight committee was also established to develop an implementation plan for the rehabilitation strategy until the Branch was adequately capacitated to take over this responsibility. • South Africa’s sustainable development (SD) framework was finalised and the SD thematic report submitted to the United Nations Commission on Sustainable Development (UNCSD) in preparation for the 18th session of the Commission.
5.1.1.5 Associated Services
The greater percentage of the Departmental budget (close to 80 per cent) was allocated to this programme. The greater portion of the programme budget was for transfers and subsidies. Funds were transferred from this programme to entities like, Mintek, Council for Geoscience, State Diamond Trader and the South African Diamond and Precious Metals Regulator (SADPMR). During the year under review the amounts of R155.5 million, R129.5 million, and R39.4 million were allocated to Mintek, Council for Geoscience and SADPMR respectively. An amount of R43.1 million was allocated to Assistance of Mines sub-programme. This sub-programme aimed to prevent the uncontrollable movement of water in and out of underground mine openings or holdings in the Witwatersrand area by providing pumping subsidies to marginal mines and to undertake research to develop and implement strategic solutions for mine water management, including contaminated water. The actual transfers to entities are discussed under Statement of Financial Performance.
5.2. Annual Financial Statements
5.2.1 Report of the Auditor-General
The Department received a qualified audit opinion on the following basis: • In terms of section 38(1)(a)(i) and section 40(1)(a) of the Public Finance Management Act (Act 1 of 1999) the accounting officer of the Department did not ensure that full and proper records of the receivables for the Departmental revenue were kept as prescribed by the norms and standards. The Department could not provide sufficient appropriate audit evidence to support the Departmental receivables for revenue balance amounting to R25.6 million. There were no satisfactory alternative audit procedures that could be performed to obtain reasonable assurance that all the receivables for Departmental revenue were properly recorded and disclosed. • Interest was not levied and recorded on all outstanding balances and for the individual receivable balances where interest was levied, the rate used was not in accordance with the rate specified by the Minister of Finance, as required by Treasury Regulation 11.1.
5.2.1.1 Emphasis of matter
The Auditor-General drew attention to; inter alia, the following matters:
• Irregular expenditure to the amount of R4.2 million incurred as a result of contravention of the authorised delegations of authority of the Department, the irregular expenditure was condoned in the financial year. • The Department has materially under spent the budget on Programme 5: Associated services to the amount of R123 million.
5.2.1.2 Report on other legal and regulatory requirements
Incomplete reporting on all predetermined objectives The actual achievements with regard to 26 per cent of all planned indicators and targets specified in the strategic plan for the year under review for the selected programmes were not reported in the annual performance report submitted for audit purposes.
Timeliness of the reported performance information The reliability of 40 per cent of the targets could not be verified, since the information was not received in time for audit purposes.
5.2.2 Statement of Financial Performance
The total revenue of the Department amounted to R4.9 billion comprising R4.7 annual appropriation and R217.1 million departmental revenue. The total revenue increased by 20.35 per cent from the allocation of the last financial year. However, the departmental revenue decreased by 17.95 per cent.
The total expenditure amounted to R4.6 billion comprising R673 million total current expenditure; R3.8 billion total transfers and subsidies; and R48.7 million total expenditure for capital assets. The total current expenditure increased by 10.94 per cent and the total transfers and subsidies by 22.63 per cent respectively. The overall expenditure increased by 21.42 per cent from the R3.8 billion spent in the last financial year. The surplus for the year amounted to R348.6 million. The transfers included R150.3 million to Council for Geoscience, R5.1 million to Mine Health and Safety Council, R39.4 million to South African Diamond and Precious Metals Regulator and R1 million to State Diamond Trader. The transfer to Mintek amounted to R161.1 million during the year under review. A total amount of R21 million was made available for transfer to Grootvlei Proprietary Mines but R13.5 million was actually transferred. The Assistance to Mines sub- programme had a total budget of R38.6 million after the adjustments but its actual expenditure was R31.1 million.
5.2.3 Statement of Financial Position
The value of total assets of the Department amounted to R215 million and total liabilities to R211.7 million resulting in net assets of R3.3 million. The total assets of the Department increased by 20.61 per cent and total liabilities by 20.84 per cent from the previous financial year.
5.3. Human Resource Management
The former Department of Minerals and Energy had an establishment of 1 554 employees during the year under review. Of these posts, 1 350 were filled, translating to a vacancy rate of 13.1 per cent. The vacancy rate was highest among the highly skilled supervision salary band at 17.4 per cent. The expenditure on compensation of employees amounted to R403.3 million, which constituted 8.9 per cent of the R4.5 billion total voted expenditure. The training expenditure amounted to R7.3 million, which constituted 1.8 percent of the total expenditure on personnel.
The Department made 202 appointments and 79 terminations during the period under review, which translated to a turnover rate of 6.5 per cent. The majority of terminations (58.2 per cent) were through resignations.
Total number of employees per occupation category
Table 4: Total number of employees per occupational category
| Occupation Category | Male | Female | Total |
| A | |||
| Office on the Rights of the Child | |||
| Children’s Rights Mainstreaming | Mainstreaming of a child centred | ||
| Conceptualised and advocated in | approach in development, | ||
| 80% of the Districts and Local | governance and service delivery | ||
| Municipalities | processes. | ||
| Review the National Plan of Action | Ensure that policies are | ||
| Policy for children in South | children’s rights sensitive | ||
| Africa | Capacity building on mainstreaming | ||
| To conduct an audit of children’s | children’s rights in Government | ||
| rights focal points at all spheres | Advocacy for children’s rights | ||
| of government | delivery in government | ||
| To review the South African | Coordination, Monitoring, | ||
| Children’s Charter | evaluation and reporting on the | ||
| Piloting of the Child Friendly | children’s rights. | ||
| Cities Model in select | |||
| Municipalities. | |||
| Facilitate processes towards the | |||
| Commemoration of the Day of the | |||
| African Child and Celebration of | |||
| the National Children’s Day | |||
| Finalise planning on an accredited | |||
| CR training programme working in | |||
| collaboration with PALAMA and use | |||
| manuals to train municipalities | |||
| Tracking the implementation of | |||
| inclusive education. | |||
| Review functionality of the | |||
| National Children’s Rights | |||
| Advisory Council | |||
| Facilitate finalisation and | |||
| submission of South Africa’s 3rd | |||
| Children’s Rights Country Report, | |||
| 2005-2007 to the United Nations | |||
| Committee on the Rights of the | |||
| Child (UNCRC) | |||
| Develop standardised National | |||
| Monitoring and Evaluation | |||
| Framework and populate Children’s | |||
| Rights indicators | |||
| Office on the Status of Disabled Persons | |||
| Facilitate inclusion of People | Review and facilitate | ||
| with Disabilities and disability | implementation of policies | ||
| mainstreaming in all economic | pertaining to the rights of | ||
| growth and development programmes. | persons with disabilities. | ||
| Promote capacity development | |||
| Coordination of disability related | programmes & mainstreaming of | ||
| research conducted by higher | disability considerations into | ||
| education Institutions, Stats SA, | government programmes. | ||
| HSRC and other research | Conduct Monitoring and Evaluation | ||
| institutions. | and undertake research to ensure | ||
| Supporting principals in | compliance and comprehensive | ||
| coordinating NCOP and Izimbizo | reporting on the implementation of | ||
| events. | disability programmes. | ||
| Submit National Disability Policy | Provide strategic leadership, | ||
| to Cabinet, train stakeholders, | support and oversight. | ||
| and monitor. | Facilitate networking and liaison | ||
| within departmental, | |||
| inter-departmental and | |||
| stakeholders including national | |||
| and provincial focal points and | |||
| National Machineries | |||
| Office on the Status of Women | |||
| Review the National Policy | Mainstreaming of gender issues in | ||
| Framework for Women’s Empowerment | development, governance and | ||
| and Gender equality | service delivery processes. | ||
| Develop comprehensive monitoring | Ensure that policies are gender | ||
| and evaluation system and | sensitive and there is compliance | ||
| reporting framework. | in terms of gender responsive | ||
| Develop effective coordination | implementation | ||
| mechanism with National Gender | Facilitate and coordinate capacity | ||
| Machinery partners | development for gender | ||
| Develop a costed five year action | mainstreaming | ||
| plan | Advocacy and awareness-raising on | ||
| Establishment of gender units in | issues of women’s rights, | ||
| all national and provincial | empowerment and gender equality | ||
| departments and in local | Coordination, planning, | ||
| government structures | Monitoring, evaluation and | ||
| Focus on the financial crisis and | reporting on women’s empowerment | ||
| its negative impact on women and | and gender equality issues | ||
| girls, including the | Compliance with international and | ||
| conditionality for rescue | continental commitments on women’s | ||
| packages. | empowerment and gender equality. |
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Report of the Portfolio Committee on Police on Property Management and Capital Works within the South African Police Service, dated 21 October 2010.
The Portfolio Committee on Police reports as follows:
Introduction
This report identifies key research findings of the Task Team, and areas of concern emanating from the meetings held with the SAPS on the issue of Supply Chain Management: Property Management (18 May 2010 and 3 September 2010). It highlights the response of the Department of Police (and where relevant the response of the Department of Public Works) to these concerns. In addition, the report identifies recommendations of the Portfolio Committee on Police to address some of these concerns.
- Background
1.1. Portfolio Committee meeting 18 May 2010
1.1.1 On 18 May 2010, the Portfolio Committee on Police met with the National Commissioner of Police and a delegation from the Department to discuss the issue of Supply Chain Management: Property Management within the South African Police Service (SAPS).
1.1.2. The Department provided a briefing to the Committee on Property Management within the SAPS. Key areas covered in the briefing included: • Agreements between SAPS and the Department of Public Works (DPW) and the principles on the devolvement of the budget from DPW to the SAPS • Property management including the number of leased buildings (1 368), government-owned buildings occupied by the SAPS (5 843) and devolved properties from DPW (271) • The process for planned and unplanned maintenance projects • Budget and expenditure for capital works, municipal services, private leases, maintenance and property rates (including planned maintenance and unplanned maintenance) from 2006/07 to 2009/10. • Capital Works budget and expenditure per types of infrastructure (such as forensic science laboratories, police stations, office accommodation etc) from 2006/07 to 2009/10 • Infrastructure development including process, police stations completed (2006/07 to 2009/10) and projects (including police stations) planned for completion in 2010/11-2015/16 • Projects completed by SAPS Building Services (including construction, repairs, renovations and upgrades) since 2004/05 and SAPS Building Service projects currently in progress.
1.1.3. Members posed a number of questions and concerns to the delegation at this meeting. However, the National Commissioner requested that the meeting be adjourned to a later date to enable the Department to fully prepare itself in order to address the questions and concerns raised by Members. The chairperson acceded to this request.
1.1.4. A key concern noted by Members during the meeting of 18 May 2010, was that the capital budget for construction, including for the building of police stations, has increased enormously since 1994, and especially over the past four years. Yet, only a few police stations are reported to be completed each year. Members were therefore concerned that there seemed to be no correlation between the increased resourcing for capital projects and the outputs, specifically in the form of new police stations constructed.
1.2 Task Team on the construction of police stations
1.2.1 As a result of this key concern and other concerns raised by Members during the meeting of 18 May 2010, a Task Team on Property Management and Capital Works was initiated by the chairperson, led by Honourable van Wyk and comprising of the following additional Members from the Committee:
• Honourable Schaefer
• Honourable Dube
• Honourable Ndlovu
• Honourable Meshoe
1.2.2 The focus of the Task Team was to research comprehensively the area of construction and expenditure on police stations, specifically new and re- established police stations, from 1994 to date.
1.2.3 The key objective of the Task Team was to empower Members of the Portfolio Committee on Police to provide effective oversight over a crucial area of Property Management, the area of construction of police stations by:
• providing a comprehensive overview of the construction of police
stations by collating all available information about the construction
of police stations from 1994 to date, and organising this information
into a searchable format; and
• analysing this information in order to identify trends, areas of
concern and discrepancies in information.
1.2.4 This information would also be prepared for use by the Members of the Portfolio Committee on Police in preparation for the follow-up meeting on Supply Chain Management: Property Management which was scheduled to take place on 3 September 2010 between the Committee and the SAPS, thus enabling the Members to interrogate the issues with the SAPS from an informed position.
1.2.5 The Task Team sourced and collated the information contained in all Annual Reports of the SAPS (and the Reports of the Auditor-General), SAPS Strategic Plans, Estimates of National Expenditure, briefings by the SAPS to the Portfolio Committee on Police, additional information provided by the SAPS to the Committee, as well as the Reports of the Portfolio Committee on Police from 1994 to date.
1.2.6 In this process, the Task Team compiled a searchable database on the construction of police stations, which can be used by the Portfolio Committee on Police in all future oversight initiatives around police station construction. This database will enable the Portfolio Committee on Police to effectively and efficiently oversee construction of police stations (irrespective of whether the construction project is the responsibility of the Department of Police or the Department of Public Works).
- Findings of the Task Team
2.1 The following are the key research findings emanating from the work of the Task Team, into the area of the construction of police stations: • Since 1994, a total of 100 police stations have been constructed. Of these 100 police stations, only 31 are new police stations constructed in areas where no police station existed previously. The remaining 69 stations are re-established police stations whereby existing police stations are replaced by new structures on their existing sites or on new sites. Since 1994, a total of R6.25 billion (including the allocation for 2010/11) has been allocated to the Capital Works budget which includes (but is not limited to) expenditure for the construction of police stations. Conclusion: the high capital works budget since 1994 to date has not been used effectively to increase the number of police stations.
• The capital budget has increased from R80,261 million in 1999/2000 to R1,049 billion in 2009/10 (by 1206%). Yet the number of police stations completed each year is not increasing commensurately. Despite an allocation of R1,049 billion for 2009/10 only five police stations were completed during that financial year, in comparison with nine police stations that were completed in 1999/2000. In addition, from 2006/07 to 2009/10 the capital budget has doubled from R510,5 million in 2006/07 to R1,049 billion in 2009/10. Yet in 2006/07, eight police stations were completed, in comparison to the five completed in 2009/10. Conclusion: the increasing capital works budget especially between 2006/07 and 2009/10 is not reflected in an increase in the number of police stations completed.
• Most police stations that have been completed (71 out of the 100 police stations) have been the responsibility of the Department of Public Works. A total of 19 police stations have been completed by the SAPS. The remaining 10 police stations were completed under the auspices of the European Union. Between 2006/07 and 2009/10, a total of 23 police stations were completed (new and re-established). Of these 23 police stations completed, only four were completed by the SAPS. • A focus on those 19 stations completed by the SAPS since 1994 and on the 11 construction projects currently in execution by the SAPS reveals the following:
- Most of these 19 police stations took over three years to complete. In some cases the time taken to complete the police stations was as high as six-and-a- half years, such as in the case of the Inanda police station which was commenced on 1 April 2003 and was finally completed on 21 August 2009.
- The cost escalations in SAPS construction projects were in some cases extremely high. The Inanda police station escalated by 270% from a planned cost of R15,9 million to an actual expenditure of R43 million.
- Of the 11 projects currently in execution by the SAPS, five commenced as early as 2004 and five commenced in 2006. Only one project (Ga-masemola) commenced after 2006 - in 2009. Thus expected completion dates for 10 of the 11 current SAPS projects are between four and six years. Conclusion: In the majority of cases where the SAPS is responsible for the building of police stations, these stations take at least three years (and in most cases between four to six years) to complete and the cost escalations are extremely high. In comparison, police stations completed by DPW, on average, are completed in shorter time periods and with less cost escalation.
• When the SAPS is responsible for police station construction projects extensive use is made of both consultants and contractors. On average it is estimated that approximately 18% of the total expenditure for each police station is spent on consultants. Despite requests for this information, the Department did not provide a breakdown of exactly how much was spent on consultants for each building project undertaken by the SAPS. Both National Treasury guidelines and the Acquisition Manual of the SAPS themselves state that consultants should only be appointed when the requisite skills are not available within the organisation. While the appointments of consultants and contractors for building projects are not in themselves problematic, the Task Team raised the concern as to whether the extensive use of consultants and contractors is in fact in line with the agreement entered into with the Department of Public Works. As early as 2006 the SAPS stated that it had the necessary core expertise in architects, engineers, quantity surveyors, technical personnel, builders and financial managers and was in the process of further recruitment. On this basis, DPW agreed to the devolution pilot. Conclusion: Continuous outsourcing to consultants and contractors reflects that the SAPS may not have the required expertise within the organisation. It is a concern that the Department could not provide details of the exact amount spent for each project on consultants. The 18% estimate seems high.
• The research revealed a number of potential problems with the bid processes used by the SAPS. Until very recently, 1 April 2010, the Bid Adjudication Committee within the SAPS were responsible for the final decision on all bids, without the approval of the National Commissioner. The two Bid Adjudication Committees were, until very recently, chaired respectively by General Hlela and General Siwundla. In addition, National Treasury notes that consultants should, wherever possible, be appointed through a bid process, yet the research revealed that, in many cases, consultants are appointed though quotations rather than the bid process. Conclusion: There are danger signs with regard to possible mismanagement in the tender and appointment process in capital projects.
• The research revealed that the SAPS had outsourced the development of the Immovable Asset Management Plan to a consultant, but there was no indication that this plan had been completed or adopted. The plan is a requirement in terms of the Government Immovable Asset Management Act, No 19 of 2007. In addition, it has not finalised a Planned Maintenance Policy or an updated Unplanned Maintenance Policy which would reflect its current agreement with DPW around maintenance issues. It also has not completed a Prioritisation Model which would assist in systematically identifying projects for prioritisation, particularly in terms of construction. Conclusion: key policy and plans required both in terms of law and to assist the organisation in property management have not been finalised even though costs have been incurred. • The collation of information from the sources used revealed extreme inaccuracies in the reporting of information on the construction of police stations. These inaccuracies are apparent in formal documentation such as the Annual Reports of the South African Police Services, as well as the written documentation provided to the Portfolio Committee on Police during briefings and written responses to questions. In many cases, police stations are reported as completed for a particular year, when they were not actually completed during that year (for example, in the presentation to the Committee 18 May 2010- where is was stated that Steinkopf police station was completed in 2006/07 when it was actually completed in July 2005) . Planned completion dates are totally arbitrary and are merely shifted from one reporting year to another. For example, Inanda police station was reported to be projected for completion in January 2006 in the 2004/05 Annual Report, in October 2006 in the 2005/06 Annual Report, in 2007 in the 2006/07 Annual Report and in 2008 in the 2007/08 Annual Report. It was eventually completed in 2009. In addition, financial figures provided in the Infrastructure tables in the Estimates of Expenditure produced by National Treasury are sometimes inaccurate and therefore unusable. Conclusion: Reporting errors in published and unpublished information renders effective oversight impossible.
- Proclamation 42:2010 by the President of the Republic of South Africa
3.1 During this same time period, there were reports in the media with regard to possible irregularities in the leasing agreements for the new police head office in Pretoria and the building in Durban. On 10 August 2010, the President of South Africa issued Proclamation 42, 2010 published in the Government Gazette. This Proclamation referred certain matters regarding the SAPS to the Special Investigating Unit (SIU) for investigation. Four key areas are covered by this investigation including: • Issues around procurement of and contracts for goods, work or services, including leased accommodation by the SAPS or on behalf of the SAPS by DPW or SITA • Irregularities/problems in relation to payments made to DPW and SITA or to suppliers/service providers for goods, work or services (including leased accommodation) procured by the SAPS or on behalf of the SAPS • Problems in the manner in which SAPS Building Services conduct their projects including non-compliance with the Government Immovable Asset Management Act or non-compliance with the ‘devolution agreement’ • Unlawful or irregular conduct by members of the SAPS, suppliers, service providers or third parties relating to any of the above- mentioned allegations.
- Further Developments
4.1 On instruction of the Minister of Public Works all lease agreements (including the two SAPS agreements mentioned above) were put on hold pending the results of the investigation.
4.1.1 In addition, approximately a week prior to the follow-up meeting with the National Commissioner and the members of the SAPS scheduled for 3 September 2010 on the issue of supply chain management and property management, it was reported in the media that a number of key officials within the Supply Chain Management division of the SAPS had resigned. These included the head of Supply Chain Management, General Hamilton Hlela, as well as General Stefanus Terblanche and General Matthews Siwundla.
- Portfolio Committee meeting 3 September 2010
5.1 On 3 September 2010, the National Commissioner and his delegation met again with the Portfolio Committee on Police in order to address the concerns raised by Members in the meeting of 18 May 2010 on Supply Chain Management: Property Management.
5.2 The Director-General of the Department of Public Works and his delegation were also invited to this meeting, as were representatives from the Special Investigation Unit (SIU) and the Hawks.
5.2.2 Key issues discussed at this meeting included:
• The resignations of three key Supply Chain Management managers
• The Pretoria head office lease and the lease of the Durban office
• Agreements and relationship between DPW and the SAPS
• The capacity of the police to build police stations including issues
around the use of consultants, and the internal capacity within SAPS
Building Services.
5.2.3 The presentation by the SAPS, which attempted to address some of the concerns that had been raised by Members at the previous meeting of 18 May 2010, included information on:
• Current challenges within SAPS Supply Chain Management and
interventions to address these challenges
• Agreements between DPW and the SAPS including the advantages and
disadvantages of the devolution of custodial functions
• Summary of capital works projects completed by DPW and those completed
by the SAPS from 2006/07 to 2009/10
• Needs analysis and the prioritisation process for the construction of
police stations, including the identification of backlogs
• The status of current funding for police station construction and
other facilities
• The bid process for the appointment of consultants and contractors
• Information on the Eastern Cape Radio upgrading project
• Expenditure and allocation for forensic science laboratories
construction projects
• Leases including the lease reduction plan
• Planned and unplanned maintenance including process, expenditure and
backlogs.
- Deliberations of the Committee: Issues of discussion and concern
The following are the key issues of discussion and of concern to the Committee:
6.1. Irregularities in Supply Chain Management including lease agreements
6.1.1 Committee concerns: Members raised numerous concerns around the controversial leases. Areas of particular concern to Members included: whether the leases for the Pretoria office (Sanlam building)/Durban office were published for tender, and, if not, why not; whether the National Commissioner had signed the needs assessment and budget letters confirming available funds for the Pretoria building; and why a second lease agreement for a second building was signed while the lease agreement for the current head office in Pretoria had been extended.
6.1.2 Members also asked for the reasons for revoking the decision to build a new head office using the public private partnership model (PPP); and whether costs had been involved in the investigation of the feasibility of using PPP. The Committee had information that a transaction adviser and a project officer had been appointed as consultants for this process.
6.1.3 Departmental response and response by the Director-General of the Department of Public Works: With regard to the PPP, the National Commissioner noted that soon after he was appointed he had been given a document to sign, containing details and costs of building a new head office for the SAPS, using PPP, to be constructed on a plot near the Department of Correctional Services’ building in Pretoria. He had requested further information, and had not signed the document, as, in his opinion, this money would be better spent on building more police stations, than on building a new head office. The matter was not raised with him again.
6.1.4 According to the National Commissioner the lease for the current head office had been renewed by DPW (on 28 July 2009) without informing the SAPS. The National Commissioner stated that he had not signed the new lease agreement for the Sanlam building. In terms of affordability, he stated that the SAPS budgeted R1.2 billion per year for leases, and thus as the reported R500 million lease was actually the amount over a 10-year period, it was affordable to the SAPS.
6.1.5 The Director-General of the Department of Public Works noted that the DPW is responsible for entering into lease agreements on behalf of departments, based on their needs and confirmation of budget. He stated that the Minister of Public Works, on his appointment had identified a number of concerns around the Supply Chain Management (SCM) within DPW. The Special Investigating Unit was thus approached to investigate SCM processes within DPW, which included, but was not limited to, lease agreement processes. The manner in which the Sanlam building as well as the Durban building leases had been procured raised concerns around due processes within DPW, and required further investigation. DPW thus supported the SIU investigation into this matter as well as embarking on its own internal investigation, and have also suspended the lease agreements for both these buildings pending the outcome of the investigation. DPW has escalated all urgent leases to the office of the Director-General and implemented additional measures to strengthen procurement processes.
6.1.6 Members agreed that it would be important to discuss the matter further pending the finalisation of the current internal investigations and the investigation by the Special Investigating Unit. Many of the questions posed by Members could not be answered by either the National Commissioner or the Director-General of the Department of Public Works at the meeting of 3 September 2010, as the facts would only be uncovered during the investigations.
6.2 Resignation of key managers in the area of supply chain management and property management
6.2.1 Committee concerns: Committee concerns about the resignations of General Hlela, General Terblanche and General Siwundla centred on the timing of their resignations and whether their resignations were directly related to probing by the Portfolio Committee into the issues around supply chain management, and the investigation by the Special Investigating Unit (SIU). Members were concerned that when problems within the Department are brought to light, key members are allowed to resign. Members wanted to know the reasons for the resignations, whether these officials left of their own volition or were ‘pushed out’, and whether these Members received ‘golden handshakes’. Members voiced disappointment that the top management of the Supply Chain Management, who had resigned, were therefore not before the Committee, and would not therefore be held accountable for their actions. 6.2.2 Departmental response: The National Commissioner stated that General Siwundla had retired for personal reasons as he wanted to take care of his sick wife. General Terblanche had been shifted ‘in order to open up some space for the investigation’ but had preferred to resign rather than to be shifted to a different environment. The Commissioner noted that the Generals resigned in the interest of the organisation and to allow for improved ‘efficiency’ within the organisation. None of the Generals received ‘golden handshakes’ but had only received the money that was owed to them.
6.3 Agreement between the SAPS and the Department of Public Works with regard to property management
6.3.1 Departmental presentations: According to the SAPS, agreements between the DPW and the SAPS around devolution of budget and functions are consolidated in three documents. The devolution of budgets and the introduction of accommodation charges were introduced on 18 December 2005. A Memorandum of Understanding (MOU) on the devolution of immovable assets between SAPS and DPW was signed by SAPS on 31 January 2006. Thirdly, National Treasury approved SAPS’ State of Readiness on the Devolution of Custodial Responsibilities from NDPW to SAPS on 3 December 2008. According to the SAPS, the SAPS and DPW still needed to agree on and finalise the draft Service Level Agreement dated April 2010.
6.3.2 The devolution of custodial functions from DPW to the SAPS is limited, in terms of the agreement, to functional assets, such as police stations and supporting structures. To date, a total of 271 police stations have been devolved. The SAPS has stated that the SAPS is still negotiating with DPW on the exact number of police stations that will be devolved from 2011/12 onwards, but that they estimate that 59 additional police stations would be devolved to the SAPS in 2011/12.
6.3.3 The MOU on custodial devolution addresses four areas including: maintenance and property rates; payment of municipal services; property leases; and capital works. Currently, neither property leases nor the payment of municipal services has been devolved. Thus the two areas of particular interest to the Committee are the devolvement of maintenance and property rates functions; and the area of capital works.
6.3.4 In terms of these functions, the SAPS presented to the Committee that there were advantages to devolving the maintenance function to the SAPS as it gave the SAPS more control over their maintenance plans and expenditure. However, they acknowledged that the absence of a maintenance plan (for both planned and unplanned maintenance) was a problem. This plan was still being developed. In terms of the devolvement of capital works functions, the SAPS believed that this was advantageous to them as they would have increased control over planning, in terms of time frames as well as contractual issues. In their presentation to the Committee they did not acknowledge any of the disadvantages in taking over this construction responsibility from DPW.
6.3.5 Committee concerns: During the two meetings, Members of the Portfolio Committee raised a number of key concerns around the devolution of these functions. Key concerns of Members included:
6.3.6 The request for the devolution of capital budgets and functions from DPW to the SAPS was on request of the SAPS as early as 2005/2006. It was clear that the DPW had agreed to this request based on assurances given to it that the SAPS ‘would develop the necessary capacity and expertise’ and were given in addition the assurance that the SAPS already had core expertise in this regard. Members raised concerns that, in fact, the SAPS did not have this capacity and expertise as could be seen by the myriad of functions (ranging from technical functions such as engineering and quantity surveying to basic building functions) that were outsourced to consultants and contractors. 6.3.7 Members highlighted that the extremely poor track record of SAPS Building Services to date (including high cost escalations in building projects completed and the fact that it can take between four to six years, or longer, for the SAPS to complete construction of a police station) raised very serious questions as to whether it was desirable for this function to be devolved from DPW. While DPW’s track record in this regard was far from perfect, it was clear that both in terms of costs and timeframes, its record was better than that of the SAPS. Members questioned whether the building of police stations was in line with the core function of the police, which is to fight crime.
6.3.8 Members highlighted concerns in terms of the increased responsibility that the SAPS would have in terms of the devolution agreements. Currently only 271 police stations have been devolved, with possibly 59 more in the 2011/12 financial year. Members questioned whether the SAPS would have the ability to cope with the responsibility of all of the over 1100 police stations around the country. Members noted that they had no faith in the ability of the SAPS to cope with this responsibility in the light of its poor track record to date.
6.3.9 Members stated that they hoped that the SAPS would reassess its desire to be responsible for the building of police stations and that this function should remain with DPW. An alternative view expressed by a Member was to further capacitate the SAPS Building Services to fulfil this function more effectively. Members noted that it would be important for the SAPS to ascertain whether it was more cost-effective, as well as more efficient, to hire additional permanent staff within the SAPS or to allow DPW to do the work of construction of police stations.
6.3.10 Departmental response: The SAPS in its presentations to the Committee did not express any concerns around the devolution of the capital works custodial function from DPW to the SAPS. In fact, in the presentation on 3 September 2010 in particular, the devolution of this building function from DPW to the SAPS was presented as having a number of advantages to the SAPS, primarily in terms of control over timeframes and contracts. The presentation seemed to imply that it would be desirable for the SAPS to take over this responsibility for other assets currently not included in the devolution agreement such as forensic science laboratories and training centres by recording as a disadvantage the fact that the ‘SAPS has no control over contractual issues between a supplier/contractor’ with respect to non-devolved assets. In addition, it was stated in the presentation that the SAPS wanted to actively drive the devolution process to ensure that more stations could be devolved in the next few years.
6.3.11 However, the National Commissioner, in his response to the concerns of Members, acknowledged that the SAPS did not have the capacity to build police stations. He stated that all capacity, including the capacity to oversee projects, was outsourced. The National Commissioner requested that he be allowed to discuss the issue of capacity for capital works projects within the SAPS so that they could respond to Members adequately. He would then report to the Committee with a final conclusion on the matter. The chairperson agreed to this request.
6.3.12 The Director-General of the Department of Public Works acknowledged that DPW also faced challenges around the turnaround time for capital projects and were also concerned about the escalations in costs and the managing of consultancy fees. However, the Director-General stated that he welcomed the National Commissioner’s admission that the SAPS did not have the capacity to build police stations, and stated that the DPW believed that it did indeed have this capacity to deliver on projects and provide infrastructure to client departments.
6.4 Track record of the SAPS in capital construction projects
6.4.1 Departmental presentation: The SAPS, in its presentations to the Committee, did not explicitly acknowledge any problems with its current track record with regard to the construction of police stations. In the briefing of 3 September 2010, the SAPS presented a slide illustrating ideal and actual construction time periods for small, medium, large and mega stations. It did acknowledge in this slide that the actual construction time periods were indeed longer than those that are ideal. However, the actual time periods for construction identified in the slide (ranging from two years for a small station to under three years for a mega station) are clearly not a reflection of the actual time periods for SAPS building projects. The research of the Task Team highlighted above, has illustrated that these range between three to over six years. In addition, the SAPS presented a slide illustrating rising costs for construction. The slide did not illustrate the difference between planned and actual costs. However, some acknowledgement was made of the fact that SAPS building projects had not historically been completed within acceptable timeframes, in the slide which states that the ‘aim is to have shorter delivery time (1st project currently ahead of program-Ga-Masemola)’.
6.4.2 Committee concerns: Members raised numerous concerns around the length of time taken by the SAPS to build a police station and the high cost escalations involved. Members questioned whether the projected timeframes for completion of the current SAPS Building Services police stations would in fact be realised, given the fact that the research has shown that the SAPS continuously extends its projected completion dates.
6.5 Supply Chain Management
6.5.1 Departmental presentation: In contrast to the presentation on 18 May 2010, the Department, in its presentation on 3 September 2010, did acknowledge some serious problems with Supply Chain Management within the SAPS. Problems identified included the lack of a professional supply chain management practice and understanding; a fragmented management approach and practices, including general lack of command and control, poor financial and asset management and selective compliance with the regulatory environment; the lack of availability of management information; and the lack of a coherent strategic framework, including a policy framework, no strategic planning and no development framework for supply chain management capabilities. Additional challenges included integrity challenges specifically around bid and tender processes and conflict of interests between members and service providers; management complacency with regard to undetected incidents of corruption and fraud; and ineffective alignment between performance outputs and services rendered. The present organisational culture within the supply chain management environment is characterised by a lack of service orientation and professionalism and a poor administrative attitude.
6.5.2 The acting head of Supply Chain Management, Lieutenant Gary Kruse identified a number of guiding principles for interventions that would be taken to address these extremely serious problems within the Division. The interventions would focus on: strategic management issues (improved strategic planning processes and agenda; scoping of a professional supply chain management practice for the SAPS; development of management information capabilities for priority areas; and alignment of performance management); service delivery priority areas (including facility management- building of police stations, vehicle fleet management- mechanical services and availability of vehicles, provider (supplier) management, and inventory management); and addressing integrity issues (including integrity and corruption awareness; integrity reporting; coordinated interventions and investigations and integrity risk identification).
6.5.3 Committee concerns: Members welcomed the acknowledgement by the SAPS in the meeting of 3 September 2010 of the serious problems that exist within the supply chain management environment within the organisation. Members were, however, extremely concerned about these problems and questioned how they had been allowed to continue and fester for so long within the SAPS. The Members also questioned whether in the light of these extremely serious challenges within the supply chain management division, it was correct for the SAPS to be taking on even more responsibilities in terms of the construction of police stations. Concerns around the bid processes, selective adherence to policies and procedures, and the lack of an effective management information system had been identified as concerns in the research conducted by the Task Team as well.
6.6 Use of consultants and contractors
6.6.1 Departmental presentation: The Department in its presentations to the Committee identified that when SAPS are responsible for building projects, they have two options- they may decide to use own resources for planning (in-house architects, engineers etc) and own resources for construction (in- house builders); or they may decide to outsource planning (or some planning functions) to consultants and outsource building functions to contractors. The presentation described the situations when the formal bid process is used for the appointment of consultants and contractors and when quotations are used for the appointment. In the case of consultants the SAPS uses the pre-qualified roster, on a rotational basis, for appointments. The SAPS described that in terms of design planning, in-house personnel are used to control quality in terms of planning and monitoring. They presented that professional consultants/service providers are appointed when specialised skills are required and where specialised conditions add risk. Only registered professionals are used and are paid in terms of milestones and set fees. The SAPS in-house professionals are used in planning and to monitor projects and service providers.
6.6.2 Committee concerns: The key concern of the Committee centred around the extensive use of consultants and contractors and the high percentage of costs of construction projects (on average 18%) that are paid to these consultants, in particular. Members raised this concern in the light of assurance that had been made to DPW and to the Committee at various meetings, that the SAPS did indeed have internal capacity, for example, architects, bricklayers, quantity surveyors, etc. to take over devolved functions, including the building of police stations. Members raised numerous questions in this regard.
6.6.3 Additional concerns raised with regard to consultants included the amount paid to consultants (project manager and transaction adviser) for the Head Office that at one point was going to be built though Public Private Partnership. Members queried why a consultant was used to draft the immovable asset management plan instead of in-house SAPS personnel and whether this reflected lack of internal capacity in this regard. They also queried the amount paid to this consultant and whether the plan had been completed and implemented;
6.6.4 Departmental response: The National Commissioner acknowledged the concern of Committee Members with regard to the extensive use of consultants and stated that, in his opinion, where the SAPS referred to internal capacity they were in fact referring to outsourcing. The National Commissioner stated that he was concerned about the extensive use of consultants and the fact that 18% of costs were for consultant fees. A possible solution was to ensure that internal skills were retained more effectively.
6.6.5 The Head of Expert Services seemed to disagree with this position. She explained to the Committee that the SAPS never intended to execute all construction work in-house and they only intended to manage the process of appointments and construction. The in-house capacity was to be used for in- house planning and documentation. In addition she stated that not all SAPS projects were outsourced and that some projects were indeed planned in- house. However, she did not have the documentation before her to identify those stations that had been completely planned in-house. 6.7 Prioritisation of police stations for construction
6.7.1 Departmental presentation: The SAPS in its presentation noted a number of important challenges with regard to the current prioritisation process whereby police stations for construction are identified and prioritised. Essentially the process relies on input via the provinces on identification of provincial priorities which are then consolidated into a national list and prioritised and approved by the National Commissioner. A work-study is used to quantify the need in terms of the available resources. Key problems include that the Prioritisation Model, required in terms of the Government Immovable Asset Management Act, has not been completed; and there are no clear criteria in place to ascertain backlogs. Thus to date the SAPS does not know what the extent of its backlogs are in terms of police stations and satellite stations (estimated at 158 of which 28 are currently in execution, 103 are in the 2010-2016 building programme, but construction has not yet begun; and 27 have approved works studies but are not included in the 2010-2016 building programme), or indeed the other facilities (estimated at 182). The SAPS: Efficiency Services in conjunction with the Department of Public Services and Administration will develop a scientific process to identify backlogs.
6.7.2 Committee concerns: Members raised a number of concerns around prioritisation and the identification of backlogs. A central concern was the fact that stations that were identified as prioritised for construction sometimes take many years before they are eventually constructed. Many stations identified as a priority as early as 2005 have yet to be built.
6.7.3 Departmental Response: The National Commissioner acknowledged serious constraints in the prioritisation process and stated that, as Commissioner, he knew that there was a shortage of police stations, but could not get information from the SAPS as to the extent of that shortage and how long it would take to address this backlog. He reiterated that he would revert to the Committee after consultation with SAPS as to the exact extent of the backlog and time frames to address this backlog.
6.8 Maintenance
6.8.1 Departmental presentations: The agreements with the Department of Public Works with regard to devolution of functions means that in effect, from 1 April 2009, in terms of the devolved and new police stations, the SAPS is responsible for both planned and unplanned maintenance of these stations. In terms of non-devolved police stations and other facilities, the Department of Public Works is responsible for planned maintenance and for unplanned maintenance over R30 000. Unplanned maintenance under R30 000 (increased from R20 000 as of April 2010) comes from the provincial budget for both devolved and non devolved facilities.
6.8.2 Committee concerns: Members raised concerns around how practically, at station level, Station Commanders access funds/authority to fulfil their responsibility in terms of maintenance complaints under R30 000. Members noted that in many cases, Station Commanders complain that they cannot access this money without authorisation from the provincial offices, and that many delays are experienced in this regard. Members remained confused during both briefings on this issue, as the presentations continuously state that Station Commanders are responsible for the management of day-to- day maintenance; yet, because the money comes from the provincial office, the Committee is aware that in fact they do not have the autonomy to act in this regard, but need to process these maintenance complaints/requests through the provincial office.
6.9 Inaccuracies in reporting on capital projects
6.9.1 Committee concerns: The results of the research by the Task Team identified serious concerns around inaccurate reporting on the issue of police station construction. Committee Members raised numerous concerns in this regard including the identification of inaccuracies in the information given in the presentation of 18 May 2010. Inaccuracies in this presentation included the reporting of two stations as completed in 2006/07 when in fact these stations were completed in mid 2005; and the incorrect reflection of actual expenditure for Capital Works which did not correlate with the audited expenditure figures. Members were extremely concerned that the written information, both in official publications such as the Annual Reports and Estimates of National Expenditure and in written reports presented to or provided to the Committee, reflected serious inaccuracies and contradictions. This severely hampers effective oversight.
6.9.2 Members questioned the motivation for inaccurate reporting to the Committee and there were concerns that this reporting was purposefully inaccurate in order to mislead the Committee. This could in fact be seen as ‘lying’ to Parliament.
6.9.3 Departmental response: The National Commissioner agreed that this was a serious concern and stated that he had himself addressed this issue with his officials, specifically with regard to the information that they relayed to the Committee in meetings. He reflected that it seemed as if members of SAPS were purposefully providing inaccurate answers to the Committee so that the SAPS ‘looked like fools’. He hoped to be able to address this problem.
- Information required
7.1 Investigations
7.1.1 It is recommended that the Special Investigating Unit and other bodies investigating the issue of Supply Chain Management and lease agreements (DPW, HAWKS, Public Protector), relating to the SAPS, should present a report to the Portfolio Committee on Police, on completion of the investigations.
7.2 Agreement between the SAPS and the Department of Public Works with regard to property management
7.2.1 The SAPS should report to the Portfolio Committee on Police by mid February 2011 on the capacity (and continued desire) within the SAPS to take responsibility for the devolved function of capital works for the building of police stations. This report should not be limited to, but should include the vision and objectives of the Immovable Assets and Expert Services Management structure currently and in the medium to long term, for each of the units that fall under this structure, including Demand Management and Policy Coordination, Resource Management: Facilities, Expert Services, and Building Services; current capacity constraints within each of these units/sections; assessment of current performance of each of these units in delivering on its key objectives; and steps that are or will be taken to address the challenges faced by each of these units. The report should include comment on whether, in the light of the track record of Building Service, the SAPS still believes that it is desirable that they take over this function from DPW. The Portfolio Committee on Police will also make a recommendation on this matter.
7.2.2 The SAPS should report to the Portfolio Committee on Police by mid February 2011 on progress and any changes with regard to the finalisation of the Service Level Agreement (draft SLA dated April 2010) between DPW and the SAPS.
7.2.3 The SAPS should report to the Portfolio Committee on Police by mid February 2011 on progress on the agreement/plan with DPW on the exact number of police stations that will be devolved from 2011/12 onwards.
7.3 Track record of the SAPS in capital construction projects
7.3.1 The SAPS should report to the Portfolio Committee on Police by mid February in the form of a written report on the status of completion of the 11 Building Service projects (or 10 if the project for the Khayelitsha police station is excluded) projected for completion in 2010/11. This report should not be limited to, but should include, status of each project; explanation of delays or extension of projected completion date; new (realistic) projected completion dates; expenditure to date; final expenditure; explanation for escalation if actual expenditure is higher than projected expenditure; description of what technical functions were performed in-house and which were outsourced; if technical functions were outsourced, outline of the expenditure on consultants; and explanation of the decision for using contractors or for construction being completed in- house.
7.3.2 The SAPS should report to the Portfolio Committee on Police on a six- monthly basis, in the form of a written report on the status of completion of all projected projects each year until completion of the Medium Term Framework period. This report should includethe status of the project; explanation of delays or extension of projected completion date; new (realistic) projected completion date; expenditure to date; final expenditure; explanation for escalation if actual expenditure higher than projected expenditure; description of what technical functions were performed in-house and which were outsourced; if technical function were outsourced, include the cost of expenditure on consultants; and provide an explanation for reasons for using contractors or completing function in- house.
7.4 Supply Chain Management
7.4.1 The SAPS should report to the Portfolio Committee on Police on a six- monthly basis, in the form of a written report, on progress with interventions taken to address the challenges within the supply chain management environment. This report should include progress on: strategic management issues, service delivery priority areas, and addressing integrity concerns.
7.4.2 The Office of the Auditor-General should report to the Committee by mid February 2011 on findings of the Auditor-General on Supply Chain Management in the SAPS over the past five years. The SAPS has received an unqualified audit for the past six years (the last qualified report was in 2003/04). The Report should address the reasons for why certain problems may not have been detected by this Office or taken seriously enough. In addition, the Office should provide a report to the Committee on the finding of its investigation into the use of consultants by the SAPS, on finalisation of this performance audit.
7.5 Prioritisation of police stations for construction
7.5.1 The SAPS should report to the Portfolio Committee on Police by mid February 2011 on progress with regard to the accurate identification of current backlogs for police stations/satellites stations as well as other facilities. This report should include progress in the development of a scientific process to identify backlogs by Efficiency Services and the DPSA and details on this ‘scientific’ process’; progress in the development of the Prioritisation Model as required by the Government Immovable Asset Management Act and key aspects of this model; identification of current backlogs; the medium- to long-term plan with timeframes to address these backlogs; and detailed projected costs. 7.6 Maintenance
7.6.1 The SAPS should report to the Portfolio Committee on Police in the form of a written report to the Committee by mid February 2011 on maintenance issues within the SAPS. This report should not be limited to but should include a report on the average time taken by each provincial office to address maintenance concerns emanating from stations, reasons for delays experienced in each province, and the steps taken to address these problems.
7.6.2 The SAPS should report to the Portfolio Committee on Police by mid February 2011 on progress in finalisation of the Maintenance Plan/s for both planned and unplanned maintenance indicating projected completion date for these plans.
7.7 Inaccuracies in reporting on capital projects
7.7.1 The SAPS needs to ensure that it has an effective Management Information system in place to accurately track and report on progress with capital projects. The SAPS should report to the Portfolio Committee on Police in the form of a written report by mid February 2011 detailing steps taken to ensure that information both in formal publications (such as Annual Reports; and relayed to National Treasury for inclusion in the Estimates of National Expenditure) and written and oral information provided to the Committee during meetings and in response to questions is accurate. The SAPS should liaise with National Treasury to ensure that information in the Infrastructure tables is both accurate and consistent over time. The same categories of information should thus be reported on each year and the same variables contained within each category.
7.8 Debate The Portfolio Committee requests that this report be debated in the National Assembly.
Report to be considered.
TUESDAY, 26 OCTOBER 2010
ANNOUNCEMENTS
National Assembly
The Speaker
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Message from National Council of Provinces to National Assembly in respect of Bills passed by Council and returned to Assembly
1) Bills, subject to proposed amendments, passed by National Council of Provinces on 26 October 2010 and returned for consideration of Council’s proposed amendments:
a) Deeds Registries Amendment Bill [B 13 – 2010] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 20 October 2010, p 2929). The Bill has been referred to the Portfolio Committee on Rural Development and Land Reform of the National Assembly for a report on the amendments proposed by the Council. b) Sectional Titles Amendment Bill [B 14 – 2010] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 21 October 2010, p 2954). The Bill has been referred to the Portfolio Committee on Rural Development and Land Reform of the National Assembly for a report on the amendments proposed by the Council.
TABLINGS
National Assembly and National Council of Provinces
- The Minister of International Relations and Cooperation
a) Report and Financial Statements of the African Renaissance and
International Co-operation Fund for 2009-2010, including the
Report of the Auditor-General on the Financial Statements and
Performance Information for 2009-2010.
b) Agreement between the Government of the Republic of South Africa
and the Government of the Republic of Uganda for the establishment
of a Joint Commission of Cooperation, tabled in terms of section
231(3) of the Constitution of the Republic of South Africa, 1996.
c) Explanatory Memorandum to the Agreement between the Government of
the Republic of South Africa and the Government of the Republic of
Uganda for the establishment of a Joint Commission of Cooperation. COMMITTEE REPORTS
National Assembly
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- The Budgetary Review and Recommendation Report of the Portfolio Committee on Labour on the performance of the Department of Labour for the 2009/10 financial year, dated 26 October 2010
The Portfolio Committee on Labour, having assessed the service delivery performance of the Department of Labour, reports as follows:
- Introduction
Government Gazette No. 32137 indicated that the President had assented to the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No.9 of 2009) and the Act was published on 16 April 2009 and therefore comes into effect on this date. The Act aims to provide for a procedure to amend money Bills before Parliament and related matters. In broad terms the Act provides the procedure for Parliament to amend the budget, in which includes the annual Division of Revenue Bill (although the bill is not classified as a money bill in terms of the Constitution), the Annual Appropriation Bill and Adjustments Appropriation Bill. Provision is also made for the procedure to amend other money Bills.
- The role of the Committee
The role of the Portfolio Committee on Labour is to represent the people and to ensure government by the people by providing a national forum for public consideration of issues through legislation and overseeing executive action over the national Department of Labour on behalf of the House. In terms of the Money Bills Amendment Procedure and Related Matters Act (Act No.9 2009), the procedure hinges on the constitutional obligation of Parliament to maintain oversight over the national executive authority. Therefore the annual assessment of national departments by the National Assembly through its committees provides the starting of the procedure.
In this respect the Act requires committees of the Assembly to submit annually Budgetary Review and Recommendation Report (BRRR) after the adoption of the adoption of the Appropriation Bill and prior to the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS). The BRRR and the reports on the MTBPS serve as an indication whether amendments might be proposed to the fiscal framework and the budget bills when these are introduced the following year. In fact, when the Minister of Finance introduces the national annual budget, a report to Parliament setting out how the Division of Revenue Bill and the national budget give effect to, or the reasons for not taking into account, the recommendations contained in the BRRR and the reports on the MTBPS.
1.2 The Department
The mandate of the Department of Labour is to play a significant role in reducing unemployment, poverty and inequality through a set of policies and programmes developed in consultation with social partners, which are aimed at:
▪ Improved economic efficiency and productivity
▪ Skills development and employment creation
▪ Sound labour relations
▪ Eliminating inequality and discrimination in the workplace
▪ Alleviating poverty in employment
▪ Enhancing occupational health and safety awareness and compliance in
the workplace
▪ Nurturing the culture of acceptance that worker rights are human
rights
The Department of Labour will strive for a labour market which is conducive to economic growth, investment and employment creation and which is characterized by rising skills, equity, sound labour relations, respect for employment standards and worker rights.
- Department’s Strategic Priorities and Measurable Objectives
2.1 Strategic Plans of the Department
The Department has adopted the following strategic priorities:
• Speeding up economic growth and transforming the economy to create
decent work and sustainable livelihoods
• Strengthen skills and human resource base
• Improve the health profile of the nation
• Comprehensive rural development strategy linked to land and agrarian
reform and food security
• Intensity the fight against crime and corruption
• Massive programme to build economic and social infrastructure
• Build cohesive, caring and sustainable communities
• Sustainable resource management and use
• Pursuing African advancement and enhanced international co-operation
• Build a Development State including improvement of public services and
strengthening democratic institutions
2.2 Measurable Objectives of the Department
• Communication creates awareness about available services in DoL
• Financial Management, enhance assets and office administration and
supply chain management
• Human Resources Management ensures effective and efficient utilization
of human capital and renders legal services to the department
• Information Technology through the Private Partnership (PPP) with
Siemens for the full spectrum of IT needs and requirements of the DoL
• Internal Audit provides management and the Audit committee with
independent objective assurance that improves effectiveness of
governance, risk management and control processes
• Risk Management pro-actively manages and addresses risks that have a
negative impact on the DoL’ s performance
• Security Services renders security support aimed at protecting DoL
information, staff and assets 3. Analysis of the Department’s Prevailing Strategic and Operational Plan
The Department’s broad policy priorities remained:
• Contribution to employment creation using programmes that already
exist such as leanerships, Growth and Development Summit agreements
commitments, supporting Expanded Public Works Programmes (EPWP)
initiatives etc.
• Enhancing skills development by strengthening institutions such as
SETAs in order to support Small Medium and Micro Enterprises
(SMMEs), and other scarce skills programmes
• Promoting equity in the labour market by strengthening enforcement
mechanisms to promote a culture of compliance in the labour market
through the Employment Equity Strategy and the Broad Economic
Empowerment (BEE) targets.
• Protecting vulnerable workers by continuously evaluating Sectoral
Determinations and through establishing bargaining councils and
implementing the Child Labour Programme
• Strengthening multilateral and bilateral relations through effective
participation in the International Labour Organisation (ILO),
Southern African Development Community (SADC) and the African Union
Labour and Social Affairs Commission
• Strengthening social protection through widening the beneficiary
threshold of Unemployment Insurance and the Compensation Funds
• Promoting sound labour relations through sound social dialogue and
through effective and efficient dispute resolution system
• Strengthening the capacity of labour market institutions by
strengthening capacity within statutory institutions and public
entities to deliver services through performance standards
• Monitoring the impact of legislation through bi-annual labour market
reviews and labour statistics and by ensuring the harmonisation of
the labour market policies with other government policies
• Strengthening the institutional capacity of the Department by
decentralising services provided by the Department and improved
management practices within the Department
- Analysis of Section 32 Expenditure Reports
The First Quarter Expenditure Report for Financial Year 2010/11
In the 2010/11 financial year, the Department of Labour was allocated a total budget of R1.78 billion which is 0.3 of the main budget for 2010/11 financial year. In the first quarter, the Department has only managed to spend about R488 million or 27.4 per cent of the allocated budget in 2010/11 before the adjustment. In the beginning of the financial year, however, the Department has indeed reported a number of under / over expenditure in various programmes for the first quarter 2010/11 financial year. This is highlighted in the following programmes namely,
Programme1: Administration was allocated a total budget of R649.9 million for the 2010/11 financial year before adjustment. The Department has spent about R134.4 million or 20.6 per cent of the allocation in the first quarter. Even though the programme has over-spent on its transfer to household budget but it has spent less than expected in the first quarter in general. The programme had been allocated about R159 thousand for the household transfer budget but an amount of R1.1 million or 698.7 per cent of the allocation has been spent in the first quarter. According to the Department, the programme has under spent due to the fact that it is difficult to budget for such items as it depends on staff initiative. The over spending on the household budget is a symbol that funds have been redirected from other programmes to this programme which is indicative of poor budgeting.
Programme 2: Inspection and Enforcement Services was allocated a total budget of R356.6 million for the 2010/11 financial year before adjustment. The Department has spent about R69.8 million or 19.6 per cent of the allocation in the first quarter. This expenditure was mainly driven by the subsistence and travelling as well as transfers to household in respect of inspections and severance and retirement packages respectively. Though the programme has over spent on its transfer to household budget by 176 per cent of the allocation in the first quarter but the programme in general has under spend hence this programme has spent less than 25 per cent which is a spending benchmark for all departments per quarter. This reflects an under expenditure of 5.4 per cent of the programme allocation in the same period.
Programme 3: Public Employment Services was allocated a total budget of R280.4 million for the 2010/11 financial year before adjustment. However, the department has managed to spend about R66.8 million or 23.8 per cent in the first quarter. Of this expenditure the programme is still remaining with unspent funds of R2.6 million which was part of the approved projections for the first quarter. This level of under expenditure was due to the delays in the clarification of role and responsibilities of staff within this programme (PES) particularly in provinces due to restructuring process. Part of the slow spending in this programme was due to the decrease in claims by civil servants for injuries on duty which then reduces the administration costs.
Programme 4: Labour Policy and Labour Market Programme was allocated a total budget of R496.8 million for the 2010/11 financial year before adjustment period. The Department has managed to spend about R216.9 million or 43.6 per cent of the allocation in the first quarter. The higher than expected expenditure in this programme was due to the high spending on transfers and subsidies to Strengthen Civil Society, the once off payment to COSATU and SACOTU for May Day celebration in April. Part of this high level of expenditure was also the transfer payment to CCMA which is done into two tranches. Though most of the over expenditure in this programme emanated from the once off payments which is transfer budget but this is an indication that this Department will shift funds or request for additional budget in order to carry out its mandate for the rest of financial year.
- Analysis of the Department’s Annual Report and Financial Statements
The 2009 global economic climate presented numerous challenges for the South African labour market, with several sectors shedding thousands of jobs further straining the already vulnerable groups. Both the private household and agriculture sectors shed 38 000 and 31 000 respectively during the fourth quota of 2009. This trend continued well into 2010 as employment continued to decrease the formal non-agricultural business sectors in 2009 and 2010, as 79 000 people lost their jobs between December 2009 and March 2010. As can be expected, during such periods, much pressure is on government’s Active Labour Market Programmes established to deal with unemployment through skills training and placement programmes. Consequently the Department of Labour’s resources and its entities have been under pressure during this period in order to either assist people seeking new work opportunities and those in the process of being retrenched. The role of the National Economic Development and Labour Council (NEDLAC) and the Commission for Conciliation Mediation and Arbitration (CCMA) were also prominent during this period. As such, this demand on the entities’ resources has raised issues of their financial capacity to meet these demands.
Moreover, the social insurance programmes such as the Unemployment Insurance Fund (UIF) experience a sharp increase in claims by the mounting numbers of the unemployed and retrenched workers. During the 2009/10 financial year, the UIF paid out a total of R4 536 million compared with the R2 834 million in 2008/09 financial year in unemployment benefits, wherein a total of 628 595 were approved new claims.
The Department of Labour was allocated an amount of R2.09 billion in the 2009/10 financial year which is 4.2 per cent of the main budget. This takes into account the adjustment made by the Department during adjustment period in the same year. However, the Department has only managed to spend R 2.06 billion or 98.7 per cent at the end of 2009/10 which is R26.8 million or 1.2 per cent under-spending. Furthermore, an amount of R36 million was shifted from the Departmental budget during the adjustment period of 2009/10, meaning that the allocated amount at the beginning of the financial year was R2.1 billion before the adjustment.
Administration: Programme 1 was allocated a total budget of R419 million for the 2009/10 financial year after the adjustment budget. The programme has managed to spend exactly R419 million or 100 per cent of this budget. This means that the Department has spent exactly according to its projections in this programme. However, even though the budget is well spent in this programme but there is an amount of R31.3 million which was shifted from other programmes to this programmes, in turn increasing this programme’s budget balance from R392 million to R419 million. This movement of funds was done during the adjustment period, though the PFMA allows it but it is subject to abuse in a number of ways and results in unintended consequences. Firstly, when a Department moves funds from one programme to another those funds do not move with a programme therefore this movement defeats the intended goal of that particular programme. Secondly, people move funds precisely because of poor financial planning in that particular financial year. It is also an indicative of incomprehensible use of the medium term expenditure framework (MTEF) hence it gives proper projections three years prior on how the budget will look like. When used correctly, the medium term expenditure gives a chance to departments to adjust their budgets prior the implementation stage.
Whilst the programme achieved some of its objectives, however the Department’s contract with Siemens has been under scrutiny for a number of years, due to failure to deliver on important objectives. As a result, the Auditor-General and the Standing Committee on Public Accounts have repeatedly raised the challenges that have transpired due to the nature and conditions of the contract. The contract agreement expires in 2013. In response, during the 2009/09 strategic plan, the department set targets to improve the management of the IT PPP contract with Siemens, to identify and document all outstanding items as agreed in the PPP and agree on an implementation plan to finalise these within the contract period, to review the PPP to determine the strengths, weaknesses, shortcomings and challenges during the contract period, enhance the capacity of the office of the Chief Information Officer (OCIO) to effectively manage the ICT PPP Agreement and drive the Department’s ICT Strategy, Internal Audit. On these targets, the department has partially achieved its objectives.
Service Delivery: Programme 2 was allocated a total amount of R712.5 million for the 2009/10 financial year after adjustments period, but the Department only spent about R710 million or 99.7 per cent of this budget. This shows a 0.3 under expenditure in this programme at the end of the 2009/10 financial year. The reasons for lower than expected expenditure was due to the unspent R74.3 million which was supposed to have been spent in the buying of Hilux bakkies and the Department decided to purchase less than what was budgeted for as well as failure to spend on machinery and other equipments. Of note is that an amount of R72.3 million was shifted from compensation of employees to other programmes due to high vacancies (13.8 % in 2009/10 and 11% in 2010/11) which were not filled in the 2009/10 financial year.
Whereas the service delivery programme has partially delivered on its set targets, but there are ongoing concerns over issues relating to capacity to investigate occupational health and safety incidents due to high vacancy rates and unqualified inspectors. Whilst the department is actively implementing the Enforcement and Inspectorate Services turnaround strategy in order to transform and empower the inspectorate services, other challenges such as those of IT systems inefficiencies also aggravate the already strained key service delivery point of the department.
Employment and Skills Development Services / Human Resources Development: Programme 3 was allocated a total amount of R406 million for the 2009/10 financial year. The programme has only spent about R390.6 million or 96 per cent at the end of the financial year. This level of under expenditure was due to the R16.3 million unspent funds, this due to the function shift of skills development from the Department of Labour to the newly established Department of Higher Education and Training (DHET). Furthermore these unspent funds are mainly related to the Quality Council for Trade and Occupation (QCTO). Since October 2009, all skills development competencies together with unspent funds have been transferred to the Department of Higher Education and Training for the establishment of the QCTO and once off filling of vacancies. Of note is that an amount of R74.2 million was shifted from this programme to other programmes during the adjustment period of 2009/10 financial year.
Labour Policy and Labour Market Programme: Programme 4 was allocated a total budget of R541.7 million in 2009/10 financial year and the Department has also managed to spend R536 million or 99 per cent. According to the National Treasury, the under expenditure attributed to unspent R5.3 million due to the delays in the tender process for the Research Monitoring and Evaluation Agenda. The Department has applied for roll-overs in this regard. Part of this under expenditure, was the slower than expected expenditure on Membership fees for International Organisations which was budgeted R9.2 million and the Department only spent R8.6 million at the end of the financial year. To this end it was noted that an amount of R40.7 million was also shifted from other programmes towards this programme as an additional budget in the same period in this programme.
On the Employment Services System: Unemployment is acutely high in South Africa, especially amongst the youth. As a result, when government announces initiatives, with the promise of immediate or future employment, people hastily flock those offices. It is therefore no surprise that the department estimated 30 000 people to be registered with the ESSA was an underestimation as 636 140 people registered (606 140 more). To illustrate the demand of services offered by this programme, within the first six months of the 2009/10 financial year, 13 725 new jobs were registered on employment services database and 5 600 of job seekers were placed in permanent employment within the first six months of the financial year under review.
Whilst more employment opportunities, than expected, were registered in provinces such as the Eastern Cape, Free State, Gauteng North, Gauteng South, KwaZulu/Natal, and Western Cape others registered below expected numbers. These include the Limpopo Province, Mpumalanga Province, Northern Cape and North West Province. Although not explained in the annual report, part of the reasons could be the ongoing skills mismatch in the labour market, i.e. continued oversupply of unskilled to semi-skilled labour. Another reason could be the continued use and preference of Private Employment Services over the department’s ESSA by employers. Hence, the department should also provide the skills profile of people registered in ESSA so as to establish reasons for such low intake of registered work- seekers.
The Sheltered Employment Factories: in 2007, when the department met with the portfolio committee regarding the 2005/06 audit performance of the Sheltered Employment Factories (SEF), various assurances were made; such as re-establishing the factories in accordance with the PFMA and Treasury regulations, as well as the commitment to determine the legal persona and the appropriate structure of the SEF. In response to the Auditor-General’s findings on the lack of staff with adequate financial and management accounting at the SEF, the department made undertaking that a project dedicated to addressing these challenges had been initiated, as well as job profiles had been completed for finance staff and training was underway. These commitments were made four years ago, but similar challenges continue within the factories.
It is worth noting that, the Sheltered Employment Factories (SEF) received a qualified audit opinion during the 2008/09 financial year, following the 2006/07 qualified audit opinion with numerous matters highlighted that included internal controls, non-compliance with the legislation and for the year 2009/10 the SEF received an Adverse Opinion Inventories on issues relating to cost of sales, property and plant equipment, disclosures: including irregular expenditure. The dismal performance of SEF over the years raises serious concerns about the capacity of the Department to give guidance and oversight over the entity. It is also quite clear, based on the audit outcome, that the SEF lack serious financial skills or competencies. It is also of great concern that, the SEFs are a unique design for the people with disabilities and probably the only form of empowerment for the disabled where they solely produce high standard quality products that can compete equally in the open market. Therefore, the potential value of these factories is inconceivable; as such need immediate attention from the department.
Social Insurance: Programme 5 was allocated a total amount of R8.9 million for the 2009/10 financial year. Of this amount, the Department has only spent up to R6 million or 67 per cent of the entire budget of this programme with no adjustment or additional budget. Under expenditure was due to the slower than expected expenditure on administration costs for claims by civil servants injured on duty. This level of under expenditure in this programme remains a cause for concern hence this programme was meant to compensate people who are injured on duty.
Analysis of Economic Classifications 2009/10
Current Payments are divided into two categories namely, compensation of employees and goods and services. Compensation of employees only spent about 98.9 per cent of its adjusted budget in 2009/10 financial year. Though programme 3 (Employment and Skills Development) was unable to spent a total of R6.5 million in this category in the same period. It was further noted that an amount of R94.1 million was shifted from this category and 98.7 per cent of this amount was from programme 2 (Service Delivery). When all the unspent funds are added together in this programme (R6.5 million +R94.6 = R100.7 million) is equal to R100.7 million was unspent in the same period. The high level of poor expenditure can be attributed, firstly to high vacancy rate among labour inspectors, human resource practitioners and finance staff in the department. Secondly, part of this under expenditure was also due to delays in payments to State Information Technology Agency (SITA) for data lines and delays in payments to the Department of Public Works (DPW) for operating lease agreement.
Transfers and Subsidies only spent about 86.3 per cent of its total budget of which 78.8 per cent was a statutory transfer in relation to the skills development levies and 7.5 per cent was transferred to public entities and non profit institutions.
Capital Payment (CAPEX) the expenditure is relatively poor in this category due to the slow spending on buildings and other fixed structures namely, the construction of Rustenburg Labour Centre. The slower than expected spending was due to delays in the tender process and the submission of claims regarding capital projects on office buildings by DPW. Audit Performance
The department received a 5th consecutive qualified audit opinion based on certain discrepancies, the Auditor-General (AG) could not obtain adequate assurance of the PPP assets amounting to R1444 62000 due to:
• The department’s non-ability to provide reconciliation of the asset
register to the amount in the financial statements
• IT assets register that was not adequately maintained, assets to the
value of R37 126 651 did not have purchase dates and assets worth R16
131 870 could not be verified
Furthermore, the AG drew the following emphasis of mater:
• Contingent assets: the department is claiming an amount of R5 020
000 from the Siemens due to the overpayments of unitary fees which
was based on a larger number of users than actually employed by the
department. Siemens had not yet made the repayment nor had it
acknowledged any overpayments when the report was compiled
• Unauthorised/Fruitless and wasteful/irregular expenditure worth R3
392 125 due to payments made a supplier after the contract had
expired, incorrect procurement procedures followed and the inspector
posts that were upgraded to a higher level without prior approval
from the Minister.
The AG further raised issues that relate to:
• Non-compliance with regulatory and reporting requirements: where the
department did not comply with Treasury Regulations 5.3.1 regarding
the establishment of procedures for quarterly reporting to the
executive authority. Secondly, the strategic plan did not form the
basis for reporting on performance information in the annual reports
of the accounting officer as required by Treasury Regulations 5.4.2
and thirdly, the annual report did not reasonably present the stet of
affairs of the department and its performance against predetermined
objectives as required by section 40(3) (a) of the Public Finance
Management Act (PMFA)
• Presentation of reported performance information: service delivery
programme performance information is not presented in a simple,
accessible format, relevant and useful to the intended user, and in
accordance with the requirements of Treasury Regulation 18
• Usefulness of reported performance information: the department did
not report on all the predetermined objectives as required by section
40(3)(a) of the PFMA and Treasury Regulations 5.2.4 and 18.3.1.
secondly, the measurable objectives of the service delivery programme
were not consistent with the indicators as per the strategic plan
• Compliance with laws and regulations as required by the PFMA,
Treasury Regulations and the Public Service Act and the Public
Service Regulations.
The AG also raised issues concerning:
• Leadership: the accounting officer did not exercise satisfactory
oversight responsibility and internal control to ensure that
financial information and predetermined objectives reported were
accurate, complete and existed.
• Financial and Performance Management: financial information
supporting the amounts disclosed in the financial statements
submitted on the PPP assets were not prepared timely to allow for
sufficient review by management.
• Governance: the internal audit did not provide adequate review
function over the internal controls of the department. The AG
identified a number of control weaknesses which were not identified
and corrected by the internal audit.
Other Reports:
• Investigations in progress: the investigation was underway, at the
time of reporting, regarding the alleged internal control deficiencies
and possible override of controls at INDLELA. Though the programme has
been transferred to Higher Education, like the rest of other skills
development competencies, the investigation continued
• Investigations completed during the financial year: an investigation
into fraudulent payments amounting to R981 450 that occurred during
the 2008/09 financial year was concluded. The department recovered
R142 404 from the account that was used to deposit the fraudulent
payments.
- Consideration of Reports of Committee on Public Accounts
Having received a qualified audit opinion, the Department of Labour appeared before the Standing Committee on Public Accounts in 2009 regarding its 2008/09 financial year audit performance. Following which the committee made the following recommendations:
a) Control activities are identified and developed with consideration of their cost and their potential effectiveness in mitigating risks; b) Management establishes, documents and implements a fraud prevention plan; c) Management maintains an effective risk management policy which continuously evaluates and updates the financial management and internal control risks; d) Reasonable steps are taken to recover debts before they are written off and further steps are taken to recover debts from the individuals responsible; e) Criminal charges are laid against individuals who have committed financial misconduct; f) Internal control deficiencies are identified and communicated in a timely manner to those responsible for taking corrective action;
g) An effective and well capacitated internal audit division is established;
h) Management implements regular assessments of supply chain performance to ensure that deficiencies are corrected;
i) The entity addresses areas of responsibility and establishes lines of reporting in order to support effective internal control over financial reporting; and
j) Effective policies and procedures in relation to financial reporting are established and communicated.
- Committee’s Observations
Following the consideration of the department’s 2009/10 and 2010/11 financial and programmatic performance, the committee identified the following issues
• The high level of vacancy rate which according to the department has decreased from 24.6 per cent in June 2009 to 11.8 per cent in June 2010. It was also noted that these vacancies are dominated by the following categories of labour inspectors 11.4 per cent, Human Resource practitioners 16.7 per cent, finance and other administrative posts 13.2 per cent
• The delays in the procurement processes such as the late submission of invoices and claims by the Department of Public Works (DPW) for capital projects have also contributed to the culture of under expenditure in the first quarter for 2010/11.
• The misalignment of processes and lack of proper financial planning which resulted in the shifting and virements of funds within and from one programme to another programme, though this practise is allowed by section 43 of the Public Finance Management Act. However, it does have a negative impact, which ultimately defeats the initial purpose of the programme. It also promotes the culture of inability to plan accurately. additionally, the committee also observed that, as a result of grave under-funding of certain entities, the department has had to continuously adjust its budget in order to meet critical programmatic objectives
• It was also noted that the Department is still struggling to project accurately for its transfers and subsidies budget particularly those that are transferred to household sub-programmes in various programmes. The Department has over spent on these sub-programmes within various programmes, citing the fact that it is difficult to budget for it.
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Recommendations
• On Sheltered Employment Factories, the Committee observed that the dismal performance of SEF over the years raises serious concerns about the capacity of the Department to give guidance and oversight over the entity. It is also quite clear, based on the audit outcome, that the SEF lack serious financial skills or competencies, starting from the head of the factories to the staff in general. It is also of great concern that, the SEFs are a unique design for the people with disabilities and probably the only form of empowerment for the disabled where they solely produce high standard quality products that can compete equally in the open market. Therefore, the potential value of these factories is inconceivable. The department must address these challenges immediately, and report on a quarterly basis on the progress regarding all issues raised by the AG. • Whereas the department continues to implement the turnaround strategy on the Inspectorate and Enforcement Services, however the committee observed that the slow progress at which this has been implemented should be addressed. As a result, the committee recommends that the department should on the details of the turnaround strategy and progress with regards to targets set. Furthermore, the committee recommends that in addition to the consultation on the turnaround strategy, the department should also give details of the proposed Occupational Health and Safety draft policy and Bill as the integrated inspectorate services has potential to address numerous challenges regarding the inspectorate services.
• With regard to Service Delivery, additional funds should also be allocated to the Department to provide more mobile labour centres especially in rural areas in order to bring the services closer to the people.
• The Department must consistently report on all the predetermined measurable objectives and indicators, as per the relevant strategic plan
• The Department must prioritise the filling of vacancies within the Inspectorate and Enforcement Services and the entities. • Given the amount of work that has been transferred to labour centres, due to decentralisation of services from the head office, the Committee recommends that resources, i.e. both human and financial should be transferred to these centres in order to provide best possible services to the people. The Committee recommends that the department should appear before the Committee in order to provide details on how the department proposes to address challenges faced by the labour centres. Furthermore, the Committee recommends that the Director-General and the Minister should commence regular meetings with their counterparts from the Department of Public Works in order to fast-track the construction of labour centres.
• The Committee would have regular briefing sessions with the Department in order to report on progress regarding audit challenges, with the intention of preventing further negative audits in future. These briefing sessions should include reports on progress regarding the filling of key vacancies within the department and its entities.
• The Global Financial Crisis is just one example of how much work is demanded from the National Economic Development and Labour Council (NEDLAC) and the Commission for Conciliation Mediation and Arbitration (CCMA). The demand on these two entities far outweigh their current appropriation, hence such a demand outstrips their financial resources. Consequent to this, NEDLAC is unable to attract requisite skills due to financial constraints. As a matter of urgency, the Committee recommends that National Treasury should address the financial position of these two entities, in view of the fact that their work has serious socio-economic implications if not properly addressed.
Signed: Date:
-------------------------------- Hon. L.E. Yengeni (MP) Chairperson: Portfolio Committee on Labour
Report to be considered
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