National Assembly - 08 November 2005
TUESDAY, 8 NOVEMBER 2005 __
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:02.
The Acting Speaker, Mr G Q M Doidge, took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS - see col 000.
The ACTING SPEAKER (Mr G Q M Doidge): Hon members, before we proceed I wish to advise the House that I have agreed to the request by the hon Minister of Correctional Services for an opportunity to make a statement on the Zonderwater incident. This will come after we have dealt with Members’ Statements.
TIME ALLOCATED TO PARTIES FOR RESPONSE
(Draft Resolution)
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Acting Speaker, I move without notice:
That -
notwithstanding Rule 106(5), which stipulates the time to be utilised by parties when responding to Ministerial statements, the following times be allocated in respect of party responses to the Statement by the Minister of Correctional Services today: ANC 6, DA 3, IFP 2 and other parties 1 minute each.
MEMBERS’ STATEMENTS
FRAUD-BUSTING TEAM
(Member’s Statement)
Mr D C MABENA (ANC): Chairperson, the Freedom Charter declares that “there shall be houses, security and comfort”. The establishment of a fraud- busting team in the national Department of Housing can play an important role in addressing some of the housing challenges that are hampering the realisation of this vision. This team will probe corruption and fraud associated with government housing projects. The team is one of the interventions by the ANC-led government to restructure national and provincial housing departments to increase service delivery.
Another intervention is the appointment of additional housing inspectors to monitor the quality of houses being built by developers.
The ANC welcomes the action taken by the Minister. Those contractors who are found to be unscrupulous will be stopped so that the governments’ intent to create sustainable communities that are able to create a better life for themselves is realised. I thank you.
ARMED ROBBERIES
(Member’s Statement)
Mr R JANKIELSOHN (DA): Chairperson, armed robberies with automatic and other weapons are fast becoming part of the South African experience. Cash- in-transit heists and armed robberies at retail outlets, shopping malls, and even at doctors’ and dentists’ waiting rooms are now an everyday occurrence in the country.
The greater Johannesburg area alone experienced no less than six armed cash- in-transit heists, two bank robberies and seven robberies at supermarkets in the last week alone. Travelling on our roads and shopping at retail outlets should be a pleasurable and not a dangerous experience for consumers. The South African Police Services will have to take additional steps to ensure the safety of consumers during our festive season. Armed security guards carrying large amounts of cash among innocent shoppers should be limited.
Furthermore, the management of large shopping centres should work out strategies with private security companies and the South African Police Services to ensure the safety of consumers. A central and secure point for the storage and collection of cash at shopping centres could be a good start. Thank you, Chairperson [Applause.]
PHASING OUT OF TARIFFS
(Member’s Statement)
Mr H J BEKKER (IFP): Mr Speaker, the IFP has noticed with appreciation that after five years the European Union has now agreed to phase out all tariffs on South African automotive imports by 2010. This should be a boost for our local manufacturers to seize the moment and to further expand the manufacturing of automobiles and particularly components and spare parts of vehicles.
In contrast, our automotive sector will have to adjust and even become more competitive since the contra requirement of the European Union was that South Africa would have to reduce our tariffs on European car imports from the existing 25% to 18% by 2012. Of course, this will have a significant impact on the South African automotive industry, and could in certain categories even have a negative effect.
However, the IFP believes that with the resilience and initiative of the South African entrepreneurs, timeous adjustments and innovations can be implemented to counteract any negative aspects of this EU-SA ruling, and to create a win-win situation for both. Thank you.
VOLUNTEERS IN HOUT BAY
(Member’s Statement)
Ms S P RWEXANA (ANC): Chairperson, Hout Bay, like many communities in South Africa, is one of the many examples where the stark contrast of the two economies mentioned by President Mbeki is evident. The impoverished community of the Imizamo Yethu informal settlement overlooks the mansions on the hills on the opposite side. The ANC therefore notes with appreciation the contribution made by the Niall Mellon township project. It consists of volunteers from Ireland who aim to build more than 100 homes over the period of two weeks in Imizamo Yethu.
More than 700 volunteers have paid to join hands with the members of the Imizamo Yethu community to improve their lives. The initiative was launched in 2002 as a random act of kindness by businessman Niall Mellon, who was moved by the plight of the Imizamo Yethu community. The ANC calls on our own more privileged communities to emulate the spirit of ubuntu and have the generosity of spirit, in order to give a handout to those less fortunate. I thank you.
GAUTRAIN PROJECT
(Member’s Statement)
Mr S N SWART (ACDP): Chairperson, the ACDP shares in the mounting unease regarding the financial costs of the Gautrain project. We are astounded that the costs have escalated from the initial R7 billion to R20 billion. There are also no assurances that this will be the final figure, as financial closure has yet be obtained, because government is still negotiating the contract with the Mbombela consortium. We are also concerned that the project will not be completed before the 2010 Soccer World Cup. Whilst we appreciate that the project was not conceived with this event in mind, it has become an integral part of the plans for the event.
The progress will undoubtedly be closely monitored by Fifa, when it conducts the 2008 inspection, as to our readiness to host the event. We understand that the only obligation upon the consortium is to complete the project within 54 months. At this stage, should construction commence in January next, it will be cutting it extremely fine to have the project completed with all safety testing taking place before the World Cup. The ACDP welcomes the enquiry into the feasibility of the project conducted by the transport portfolio committee.
Whilst this project has been dealt with as a provincial matter, there can be no doubt that it has become a national issue, with mounting concern as to the costs of the project and questions as to whether this huge amount, or parts thereof, could not be spent more wisely on improving roads and rail infrastructure throughout the country. I thank you.
ABOLITION OF DISTRICT MUNICIPALITIES
(Member’s Statement)
Mnr P J GROENEWALD (FF PLUS): Agb Voorsitter, die Minister van Finansies het tydens die minibegroting aangekondig dat die streeksheffing aan distriksmunisipaliteite op 30 Junie volgende jaar gestaak gaan word. Distriksmunisipaliteite is oorblyfsels van die ou streekdiensterade en heffings wat steeds aan hulle betaal word, blyk ongrondwetlik te wees.
Die belastingbetaler moet egter steeds opdok, aangesien daar nou R24 miljard deur die sentrale regering toegeken gaan word aan distriksmunisipaliteite. Distriksmunisipaliteite is oorbodig en behoort afgeskaf te word, aangesien die funksies van distriksmunisipaliteite deur plaaslike stadsrade self gedoen kan word. Onnodige heffings en belasting word aan hierdie munisipaliteite betaal en dít terwyl die munisipale bestuurders van distriksmunisipaliteite salarisse verdien gelykstaande aan Ministers en selfs meer as die President.
Deur die afskaffing van hierdie munisipaliteite sal miljarde rande bespaar word - net aan administratiewe koste alleen. Die VF Plus doen ’n beroep op die regering om nie net die heffings uit te faseer nie, maar ook distriksmunisipaliteite in geheel af te skaf. Dankie. (Translation of Afrikaans member’s statement follows.)
[Mr P J GROENEWALD: Hon Chairperson, during the minibudget the Minister of Finance announced that the regional levy for district municipalities will cease as of 30 June next year. District municipalities are remnants of the old regional services councils and levies that are still paid to them are apparently unconstitutional.
The taxpayer will still have to pay up, however, since R24 billion will be assigned to the district municipalities by the central government. District municipalities are superfluous and should be abolished, as their functions can be carried out by local municipalities. Unnecessary levies and taxes are paid to these municipalities while the municipal managers of district municipalities receive salaries equivalent to those of Ministers and even exceed that of the President.
By abolishing these municipalities, billions of rands will be saved – in administrative expenses alone. The FF Plus appeals to government not only to phase out these levies, but also to abolish district municipalities entirely. Thank you.]
DISSOLUTION OF ABAQULUSI MUNICIPALITY IN KWAZULU-NATAL
(Member’s Statement)
Mnu B Z ZULU (ANC): Sihlalo, uhulumeni kaKhongolose uzibophezele ekuphatheni ngobuqotho kanti futhi, uma kudingekile, uyakugxambukela ngenhloso yokulungisa kulezo zindawo lapho kubonakala kuphazamiseka khona ukuhlangabezana nezidingo zabantu kanye nokuletha intuthuko kohulumeni basekhaya. Ngakho siyasincoma kakhulu isinqumo esithathwe yisigungu sikahulumeni waKwaZulu-Natali sokuhlakaza umasipala wabaQulusi obuholwa yiqembu leNkatha. Lesi sinqumo silandele ngemuva kophenyo olukhombise ngokusobala ukuthi lo masipala wabaQulusi wehlulekile ukufeza lokho owawukuthunywe ngabantu ukuba ubenzele khona.
Ukungenelela kukahulumeni ukwenze elandela isigatshana 139(3) soMthethosisekelo wezwe lethu, futhi lokho kulandele izigigaba eziningi ezenzakele kulo masipala. Esinye sazo kube yilapho iqembu leNkatha lixoshe khona amakhansela alo ayisishiyagalolunye abekulo masipala ekuqaleni kwawo lo nyaka. Uhulumeni oholwa uKhongolose uzoqhubeka enze lokho okudingwa umphakathi ukuze sibe nabaholi bomphakathi abazimisele ukuguqula izimpilo zabantu bakithi. Ngiyabonga. [Ihlombe.] (Translation of Zulu member’s statement follows.)
[Mr B Z ZULU (ANC): Chairperson, the ANC government is committed to govern according to the highest ethical and moral standards and, if necessary, it will intervene with the objective of addressing those areas where service delivery and development in local government has been hampered. We therefore salute the decision taken by the KwaZulu-Natal cabinet to dissolve the AbaQulusi Municipality controlled by the Inkatha Freedom Party. This decision was taken after an investigation clearly showed that this municipality has failed to meet its mandate.
Intervention by the government was done in terms of section 139(3) of the Constitution after several incidents occurred at this municipality. One of those is the dismissal of nine of its councillors at the beginning of this year by the IFP. The ANC government will continue to do what the public needs in order to have leaders who are prepared to change the lives of our community. Thank you. [Applause.]]
REDETERMINATION OF MUNICIPAL BOUNDARIES – UNREST
(Member’s Statement)
Mr T LIKOTSI (PAC): Chairperson, the recent spate of unrest about poor service delivery and redetermination of municipalities in our country is a recipe for spontaneous uprisings. All political parties, social movements, business and civic society must close ranks to nip these unrests in the bud; else we may suffer the consequences thereafter.
Urgent measures must be taken against corrupt and nonperforming municipalities and provinces whose councillors and members of provincial legislatures, including officials, are involved. The redetermination of the Merafong local municipality in Gauteng Province and that of the Matatiele local municipality in the province of KwaZulu-Natal must be revisited.
Our people have for a very long time suffered extreme oppression and harassment by the past colonial and apartheid regimes, and may not be expected to endure hardships during our time of governance. The voice of the people of Kgotsong, Matatiele, Mount Frere, Mount Ayliff, Umzimkhulu and Maluti must be heard. I thank you.
CORRUPTION IN KUNGWINI
(Member’s Statement)
Mr K J MINNIE (DA): Mr Chairperson, the people of Kungwini, Bronkhorstspruit in Gauteng have had to suffer the incompetence and poor governance of the ANC council for long enough. It is time for a change.
Die munisipale bestuurder het aan die einde van 2004 byna R3 200 spandeer op vleis vir ’n personeelfunksie. Hy’t egter al die vleis self huis toe geneem. Terwyl ses beamptes en die munisipale bestuurder hulself verryk, bly die armer mense van Kungwini in haglike omstandighede. Dis egter nie al nie.
Die DA het die Gautengse provinsiale minister belas met plaaslike regering in kennis gestel van eiendomstransaksies ter waarde van R1,3 miljoen wat deur die Kungwini-raad aangegaan is, maar wat strydig met munisipale regulasies is. Die raad het met ander woorde die wet verbreek (Translation of Afrikaans paragraphs follows.)
[The municipal manager had spent almost R3 200 on meat for a staff function at the end of 2004. He, however, took all the meat home himself. While six officials and the municipal manager enrich themselves, the poorer people of Kungwini live in appalling circumstances. This, however, is not all.
The DA informed the Gauteng provincial minister charged with local government that, contrary to municipal regulations, the Kungwini Council had entered into property transactions to the value of R1,3 million. In other words, the council had contravened the law.]
After the DA had intervened and blew the whistle, the executive mayor of Kungwini was forced to resign, and the municipal manager and six officials were suspended. I have good news for the people of Kungwini. On election day next year you can tell the ANC council to pack their bags and leave office. The DA is ready to fix what the ANC has broken in Kungwini. [Interjections.] The people of Kungwini, Bronkhorstspruit, deserve better than the ANC. I thank you. [Applause.]
WORLD ASSOCIATION OF SIGN LANGUAGE INTERPRETERS CONFERENCE
(Member’s Statement)
Chief M NONKONYANA (ANC): Chairperson and hon members, 250 delegates representing 39 countries attended the World Association of Sign Language Interpreters’ Conference in Worcester in the Western Cape last week. The delegates included sign language interpreters from 10 African countries.
South Africa, having one of the most, if not the most, progressive constitutions in the world, recognises sign language as a language to be developed. In our own Parliament we have a member who makes use of the services of sign language interpreters. When the state of the nation address is televised we have someone doing sign language interpretation.
However, more needs to be done since there are only six accredited sign language interpreters, and there are 1,5 million people with hearing disabilities in the country. One of the suggestions made by the conference was creating an enabling environment that would assist people interested in a career as a sign language interpreter to find employment. I thank you. [Applause.]
DISPROPORTIONATE GAP BETWEEN HIGHEST PAID AND LOWEST PAID
(Member’s Statement)
Prince N E ZULU (IFP): Mr Chairman, some analysts describe the gap between the highest paid and the lowest paid in the country as alarmingly disproportionate. Their concerns intersect with those in the private sector and with those in the public sector. This underscores what is regarded as a fact of life in South Africa, that factors of production are not distributed proportionately. Inequalities are more on the increase than on the decline. Those who have are blessed with more and more resources, while those who don’t have are cursed with scarcity and poverty.
While others are notching up R40 million per year, others live on a hand-to- mouth pittance. Economists don’t dispute this state of affairs. They believe one has to be rewarded according to his or her performance. Even shareholders of companies accept that large packages for executives, who add value and contribute to the long-term interests of their companies, deserve what is due to them.
Expectations regarding those who live on hand-to-mouth toil were heightened by statements made in this House that an accelerated and shared growth initiative may be on the cards in the new year. The new year is only two months away. This statement was further expanded on in that it would shift the focus and emphasis away from macroeconomic management towards the restructuring of the real economy through infrastructure investment. Thank you. [Time expired.]
PROTECTION OF CHILDREN’S RIGHTS
(Member’s Statement)
Ms M D NXUMALO(ANC): Chairperson, the ANC led-government has been vigorous in putting the issue of children at the top of its agenda - being a signatory to the United Nations Convention on the Rights of the Child and by taking seriously our responsibility of ensuring that children are protected from harmful influences, abuse and exploitation.
We welcome the announcement by Cell C, MTN and Vodacom to put measures in place that will protect children from accessing inappropriate images and texts on their phones. The steps taken by the South African cellphone operators will play an important role in protecting children against a new form of exploitation and abuse. According to a new code of conduct, operators will be required to adopt measures to ensure that no illegal content is screened over their networks.
Children make up almost half of our population. Therefore, as the guardians of South African children let us commit ourselves vigorously and oppose any action that threatens their right to a safe environment. Protecting their safety and innocence must be our everyday business. I thank you. [Applause.]
SPORTS DEVELOPMENT POLICIES OF THE ANC
(Member’s Statement)
Mr T D LEE (DA): Chairperson, the ANC is not interested in the development of sport in South Africa. To them it’s all about a numbers game and race, and nothing more. Merit should be the only criteria for decision-making for the national and international competitive stages.
The teams representing South Africa in all codes should always be the strongest possible squads we can put together. It is at grass-roots level where development should be taking place. Instead of trying to legislate on everything they can find, government should make sure that all our schools and sports clubs have the necessary facilities at their disposal.
Just imagine if the USA tried to apply the ANC’s mad formula to its basketball teams or athletes. They would lose all the encounters they now win as a matter of course. Black Americans play a hugely disproportionate role on merit even though they are a minority of less than 15%. We need to develop our own potential sportsmen and sportswomen. We don’t need more laws. I thank you, Chairperson.
KHOMANANI EXCELLENCE AWARDS FOR COMMUNITY CARE WORKERS
(Member’s Statement)
Mr C T MOLEFE (ANC): Chairperson, Mr Bob Phato of Queenstown, the winner of the community care worker category in the second Khomanani Excellence Awards hosted by the Health Ministry at the Presidential guesthouse last week, has showed that ordinary people can do extraordinary things.
This 53-year-old man is helping more than 700 orphans with, among other things, food, clothes and blankets. With the help of the Department of Education, he ensures that orphans can go to school without having to pay school fees and he assists child-headed households by applying for their birth certificates, IDs and social grants. He truly is practising the maxim, “Your child is my child.”
We commend Mr Phato for his selflessness and his dedication in putting a smile on the faces of so many children. We also commend the winners in the other categories of the Khomanani Excellence Awards. Their example is an inspiration to all of us to respond with passion and compassion as we strive collectively to find a solution to reduce the impact of HIV and Aids on our society. Thank you, Chairperson. [Applause.]
INFORMATION ON VIOLENT CRIMES AGAINST SOUTH AFRICA’S CHILDREN
(Member’s Statement)
Mr M WATERS (DA): Thank you, Chair. Safety and Security Minister Charles Nqakula says that he has no idea how many crimes are committed against South Africa’s children, despite the government claiming that the protection of children is a priority. If he doesn’t know how many children are raped, kidnapped or killed each year, how can the government draw up an action plan to tackle this problem?
The Minister has told Parliament that the gathering of information is too time-consuming. Yet, how can he plan to curb the scourge of rape, kidnapping and murder of children if he doesn’t know the extent of the problem or the patterns of where and how these crimes occur? Either the Minister knows that the answers will be an embarrassing indictment of his department, or he has been misleading the public into thinking that he is tackling these crimes with some degree of seriousness. Is he hiding the information or is he genuinely clueless? It is time for the Minister to come clean on violent crimes against children. I thank you. [Applause.]
WORLD ASSOCIATION OF SIGN LANGUAGE INTERPRETERS CONFERENCE
(Minister’s Response)
The DEPUTY MINISTER OF SCIENCE AND TECHNOLOGY: Chairperson, I’d like to thank the hon member from the ANC for reporting back to this House on some of the key suggestions made by the 250 delegates representing 39 countries who attended the World Association of Sign Language Interpreters conference in the past week.
There are many things that make us proud of being members of this House. But, one of the things that I think we can rightfully be proud of is that we have a member in this House who has the assistance and enjoys the assistance of sign language interpreters. That’s a good thing and sends out a very good message.
Equally, the fact that the state of the nation address is communicated to 1,5 million people with hearing difficulties throughout the country is something that we can rightfully feel proud of.
One thing that strikes me when I watch the sign language interpreters – I watch them with a great deal of admiration – is that they are immensely skilled people. But the point that came out of this workshop is that there are not enough people with sign language interpreting abilities and that we need more people to provide this service. I think when we take into account that there are 1,5 million deaf people in our country, this is a matter that needs to be addressed with some urgency.
Sign language is something that doesn’t belong to a region, that knows no ethnic boundaries and no race boundaries. People with hearing difficulties communicate with each other using sign language. It’s really about time that we gave full recognition for the value that sign language has in our society. Certainly, the Minister of Education and we in the Department of Science and Technology will try to rise to the challenges put to us by the member to ensure that people who are interested in careers in sign language interpretation are given as much assistance as possible. Thank you, Chairperson. [Applause.]
SPORTS DEVELOPMENT POLICIES OF THE ANC
(Minister’s Response)
The DEPUTY MINISTER OF SPORT AND RECREATION: Chairperson, the hon Lee came here today and made petty politics out of something that is very serious in this country - our sport and the transformation in general. However, what the hon member doesn’t do is to recognise the lack of facilities due to the skewed development this country has because of the legacy of apartheid. We are rectifying that. We have embarked on eradicating those backlogs through the Municipal Infrastructure Grant and the IDPs of the local authorities. You should be going out, hon Lee, and assisting government to allocate those facilities to local authorities. That includes the IDPs
We also went further by entering into a landmark agreement with schools sport. We will see schools sport phased in on an incremental basis as from next year because we want to see our 12 million children playing sport on Wednesday afternoons and Saturday mornings. It is because we want to identify the talent we have in this country, the talent that was previously ignored. The moment we succeed with that and with the mass participation programme of this government, we will bring opportunities to the people that never had them before.
No one, not the DA, not the hon Lee, will stop this government on our road and on our march to unlock the potential and all the talent we have for sport in our country. Thank you, Chairperson. [Applause.]
INFORMATION ON VIOLENT CRIMES AGAINST SOUTH AFRICA’S CHILDREN
(Minister’s Response)
The DEPUTY MINISTER OF DEFENCE: Comrade Chair, we welcome the statement by the comrade about the protection of children from harmful influences, abuse and exploitation. To Cell C, MTN and Vodacom we say, “Ukwanda Kwaliwa ngumthakathi! [Forward!]
This government takes the issue of the rights of children very seriously. For this to succeed, all of us, including Cell C, MTN and Vodacom – particularly parents – must begin to look at how we make sure that our children are protected. I thank you, Comrade Chair. [Applause.]
KHOMANANI EXCELLENCE AWARDS FOR COMMUNITY CARE WORKERS
(Minister’s Response)
The DEPUTY MINISTER OF EDUCATION: Chairperson, we would like to commend the Minister of Health for hosting the Khomanani Excellence Awards. What this does is in fact to recognise and acknowledge the important role of people such as Bob Phato in assisting those who are indigent and poor, particularly orphans.
It is also consistent with the policy and legislation of government in terms of which for the first time in the history of this country learners would be exempted from paying fees.
With the introduction of the Education Laws Amendment Bill, which has been passed by this House, many schools, which are located in communities that suffer from abject poverty, would be completely exempted from charging fees. This will go a long way in eradicating poverty. It also reflects the kind of compassion and empathy that is necessary in the caring society such as ours.
I think we must applaud the wonderful efforts by persons such as Bob Phato and others, for contributing meaningfully to the eradication of poverty and who show the kind of affinity in association with those who are less privileged and who are indigent and in need.
Lastly, with regard to the HIV/Aids situation, the Department of Education, in collaboration with Khomanani, has piloted an advertisement in which it has appealed to the communities to support initiatives in terms of which people who are affected and infected by HIV/Aids must be supported by communities so that they are not stigmatised and are provided with the appropriate community care that is necessary. Thank you very much, Chairperson. [Applause.]
INCIDENT AT ZONDERWATER CORRECTIONAL CENTRE
(Statement by Minister)
The MINISTER OF CORRECTIONAL SERVICES: Chairperson, hon members of this House, thank you for giving me the opportunity to address this House on the recent incident of an attempted escape at Zonderwater Correctional Centre in Cullinan just outside of Pretoria, which resulted in one official fighting for his life in hospital and one offender dead.
A group of five callous, long-term offenders with no respect for human life, took hostage five officials in an attempt to escape from Zonderwater Correctional Centre on the morning of Sunday, 6 November 2005. Our partners, the SA Police Service, were immediately called in with their experts to help handle the situation. Negotiators managed to control the situation, without panic or irrational decisions that could have led to a blood bath, from about 11am until about 6pm when the intervention put an end to that ordeal.
The offenders were demanding loaded assault rifles, two loaded R5s loaded; a getaway Kombi, with its windows painted to conceal the people inside; and they also demanded a passage out of the correctional centre without police interference. In short, the professionalism and dedication of the SAPS officials and Correctional Services managed to save many lives. Regrettably, one official, Mr Dirk Thiart, was seriously injured and is currently fighting for his life in Montana Hospital. I’m sure members of this House will join us, as Correctional Services, in praying for his life.
Four other officials survived unhurt and were provided with counselling services. These officials are: Mr Mpho Masemola (33); Nursing Sister Marcel Naude (33); Sister Grace Sekgabutla (47); and Mr Goodman Mthimkhulu (43), who is also a diabetic. I praise them for their bravery and courage.
One offender serving 80 years for multiple, serious crimes, including murder, armed robbery and possession of illegal firearms and ammunition, Classmed Lekota, was killed. [Interjections.] Four other offenders - no, he is no relation of the Minister - were immediately transferred to the C-Max Correctional Centre in Pretoria and will face the full might of the law. I’m not going to mention their names, only their sentences: the first one is serving two life sentences for murder, attempted murder and robbery; the other one is serving a life sentence for murder and robbery; the next one is serving 15 years for rape; and the last one is serving a life sentence for robbery.
Criminal and internal investigations are being done following strong leads that indicate that there was collusion by at least three officials of my department. It is because of incidents such as these perpetrated by callous offenders, who have no respect for human life, that some people may begin to ask the question: Is the route we have taken of transforming Correctional Services into a rehabilitation-centred institution the correct one? Let me hasten to respond by saying that we are winning the war on violence, the war on escapes and the war on safety in our correctional centres.
We therefore remain quite resolute, working side by side with our partners in the criminal justice system, to build a rehabilitation-centred correctional system with a secure, safe and humane framework as our contribution to a safer society.
Various strategies are being rolled out to create a safe and secure environment in our centres for the effective implementation of our programmes aimed at correcting the offending behaviour of human development, including a roll-out of a R88 million state-of-the-art security system that is based on biometric access control. We have put in metal detectors and a closed-circuit TV system to prevent entry of illegal and dangerous weapons and substances into our centres.
The programme is 100% complete in the Eastern Cape, nearly complete in Gauteng and KwaZulu-Natal, while the roll-out has begun in other provinces. Our national escape prevention strategy progressively registers the desired results, as we have already reduced escapes by more than 33% between January and September 2004, compared with the same period in 2005 – 105 in
- We have reduced it to 70 escapes so far this year.
Internationally, running a correctional system is a function full of risks and there can be no quick fixes for the challenges we have to overcome. Although we are making significant progress, the desired targets can only be achieved with every role-player, including families of the offenders and communities, putting their weight behind all these efforts in order to realise corrections as a societal responsibility.
Guns kill people. It matters not how many people are at work at that stage, smuggling a firearm into a correctional centre for use by people who do not shy away from breaking the law, will never serve any right-thinking person, be that a colleague, a corrupt official or a family member, because at the end of the day lives may be lost.
This question of the staff complement over weekends does not arise at all. The first thing that normal, caring human beings do when a life is or lives are lost is to offer condolences and show sympathy, and have empathy for that family; not to point fingers and not to score points. I therefore implore all people and organisations sharing the passion of building a better life for all in South Africa to unequivocally condemn, first of all, any act of smuggling illegal weapons and substances into our centres.
I also wish to condemn in the strongest possible terms any efforts to justify these illegal actions by raising issues of dissatisfaction or any allegations of ill treatment or abuse. We have built an accountable system of governance to ensure that the transformation of Correctional Services is kept in check and is on course.
My door, as Minister, is open at any time to any family member, any offender in any prison, any relative of an offender, or any hon member in this House to call on me, to call on the area commissioner, to call on the Commissioner of Correctional Services, the Deputy Minister, and report any abuse or humiliation by any of my staff members, and vice versa. Acquiring an illegal weapon, brandishing a weapon to try to get out of a correctional centre will never work. I condemn any criminal activity, irrespective of who is involved. Anyone may also report these incidents of dissatisfaction to the Judicial Inspectorate of Prisons and the Human Rights Commission, which are the state agencies assigned to deliver checks and balances in the delivery of Correctional Services.
Lastly, to my staff members all around the country in the 243 centres in the country – you might call them prisons – and to those who are applying and aspire to join Correctional Services to become ideal correctional officials, I’d like to assure your that your wellbeing and your safety as members of staff will always be paramount to the Minister. I appreciate the hard work that you guys do. Keep it up. Thank you very much. [Applause.]
Mr J SELFE: Acting Speaker, the incident in Zonderwater on Sunday comes in the wake of similar incidents in the Pretoria C-Max and Baviaanspoort correctional centres. All involved hostage taking, all involved serious injury and or fatalities; two involved firearms smuggled into prison; all happened on a Sunday.
Perhaps, more than anything else, all these tragic incidents demonstrate very graphically the enormous danger every single Correctional Services official lives with every single day. We take our hats off to the men and women who are prepared to face those dangers uncomplainingly and professionally.
But, these incidents also call for action. Firstly, many of the inmates who are involved in these incidents are serious criminals facing very long sentences. In Zonderwater one inmate was serving a double life sentence, two were serving life sentences and another a sentence of 80 years. These are violent criminals without fear of consequences and without hope of release. Owing to the fact that they have no expectation of release, they can become violent. These people and similar offenders in other prisons belong in C-Max prisons.
At the moment the C-Max prison in Kokstad does not have the necessary capacity and needs to be capacitated immediately, and those violent inmates need to be transferred there before there are other incidents. Secondly, it is worrying; indeed, it is almost unbelievable that firearms continue to be able to be smuggled into maximum security institutions.
While security has been improved and the Minister referred to it, in many centres it is clear that still more attention needs to be given to stopping this from happening. Thirdly, all these incidents happened on Sundays when security tends to be a little bit more relaxed than on other days. It is an unfortunate reality that security in maximum prisons will have to be just as strict on Sundays as it is on any other day. We must ensure that there are enough staff over weekends to ensure the safety of both staff and inmates.
Finally, we would like to express our appreciation to the Minister, who displayed enormous personal courage and commitment in this particular incident, to the SA Police Service’s task force, and to the DCS for successfully defusing the situation in Zonderwater, and for preventing these offenders from escaping.
We wish those injured and traumatised a speedy recovery, but, more than anything else, we express the hope that this is the last time that an incident of this nature will have to be debated in Parliament. I thank you. [Applause.]
Mrs S A SEATON: Chairperson, hon Ministers, hon members, the IFP is very concerned about yet another hostage drama. It is really getting beyond a joke. It is not acceptable that we keep having this sort of situation. We wish that those who have been traumatised will recover very soon. We wish Mr Thiart full recovery. We will keep him in our prayers.
Minister, we hope that you find the persons responsible for smuggling the arms into the prison because this really is the problem. The problem is that firearms are being smuggled into high security prisons.
I agree with Mr Selfe that we really have to do something about security. We cannot allow complacency in our prisons on any day, at any time. We have to make sure that we maintain tight security, especially in high security prisons.
We believe that any official found guilty of having smuggled arms into such places as the high security prison one way or the other should be dealt with in the firmest possible manner. They should be put behind bars for the rest of their lives because they have in fact brought about damage to other people and serious concern to our country. I, too, would like to commend you, Minister, first of all for your courageous dealings over the weekend and also for bringing it to Parliament’s attention very speedily. We heard early this morning already from you. We appreciate that. And we would ask you please to convey our appreciation to your departmental staff. We would also like to thank the SA Police Service special task team and all who attended to the matter for the way in which they did to save lives as they did. Thank you, Chairperson.
Mr S N SWART: Acting Speaker, the ACDP is similarly shocked at the events that unfolded at Zonderwater Prison near Cullinan this past Sunday. The immediate question that arises is yet again how it was possible that a firearm was smuggled into the prison. These are not petty criminals; they have been convicted of cases ranging from murder, rape and robbery and are serving multiple life sentences.
Severe punishment must be meted out, should it be found that any warder assisted the inmate in obtaining the firearm. We support you in that, hon Minister.
Additionally, the ACDP shares concerns that staff shortages may have contributed to the weekend security breach. It is to our horror in fact that we hear security is slightly more lax over weekends. The fact that there are more visitors over weekends as well as various activities such as church services logically dictate that there should be more security, not less. I’m sure, hon Minister, that you are looking into that as well.
The ACDP wishes to commend you, hon Minister, for your actions as well as your department for the professional manner in which this hostage situation was dealt with, which resulted in the shooting and capture of prisoners who had attempted to escape.
We similarly commend the SAPS special task team for its successful intervention, and trust and pray that Mr Thiart, the severely injured warder, will fully recover. I thank you.
Mnr P J GROENEWALD: Agb Voorsitter, van die VF Plus se kant af wens ons die gewonde persone alles van die beste toe. Mnr die Voorsitter, ek wil vir die agb Minister sê dat dit nou ‘n gewoonte word by die agbare Minister dat wanneer ‘n insident plaasgevind het, om hier na die Parlement toe te kom en dan vir ons te vertel wat gebeur het. Dan wil dit lyk so asof hy sy hande in onskuld wil was en vir ons sê, “Ek het julle ingelig”.
Mnr die Voorsitter, in die beperkte tyd wat ek het wil ek vir die agbare Minister net sê as dit nie vir die optrede van die polisie was nie dan kan ‘n mens maar net dink wat die verdere gevolge sou gewees het. ‘n Besondere dank aan hulle vir hul vinnige optrede.
Maar ek wil vir die agbare Minister sê hy moet ophou om verklarings te maak. Hy moet begin optree en iets doen. Dankie, mnr die Voorsitter. (Translation of Afrikaans speech follows.)
[Mr P J GROENEWALD: Hon Chairperson, from the FF Plus’s side we wish the injured persons all the best. Mr Chairperson, I want to tell the hon Minister that it is now becoming a habit of his that when an incident has taken place, he comes here to Parliament and tells us what happened. It then seems as if he wants to wash his hands of it and tells us, “I have informed you”.
Mr Chairperson, in the limited time that I have I would just like to tell the hon Minister that if it were not for the action of the police, one can only think of what the further consequences would have been. A special thanks to them for their quick action.
But I want to tell the hon Minister he should stop making statements. He should start acting and do something. Thank you, Mr Chairperson.]
Mr I S MFUNDISI: Chairperson and hon members, the UCDP is greatly concerned about the apparent, incessant attacks on law-enforcing agents in our prisons. Praise goes to the police for the bravery they showed to bring the situation under control. The public has however not come to regarding the rape of nurses at Bavianspoort and the stabbing of a doctor at C-Max prison in the past. The lack of vigilance with regard to the acquisition of dangerous weapons by inmates in our prisons is cause for concern. The UCDP, in the interest of law and order in respect of the citizens of this country, calls on the Ministry and the officials of Correctional Services to ensure that those incarcerated are kept where they belong. Those who collude with prisoners should join them – behind bars. On the flipside, we call on members of society to desist from aiding those incarcerated.
The UCDP regrets the death of one of the prisoners in that Zonderwater debacle and wishes the injured officer well. We still call for a greater use of . . . [Time expired.]
Mr T LIKOTSI: Chairperson, the PAC wishes to send condolences to the families of the bereaved Classmed Lekota and wishes a speedy recovery to the injured Dirk Thiart at Zonderwater correctional centre.
Our prisons are a hive of gangsters, and there is very little on the side of rehabilitation. The PAC has time and again warned this government of overcrowding, ill treatment and gang-related misconduct in our prisons.
The issues of gun trafficking and drug trafficking are norms in our prisons. We have, and are still calling for the release of all imprisoned former guerrillas from our prisons. This government cannot afford to imprison the very people who fought for the democracy we all so cherish and enjoy.
We support the position of Popcru on demanding better working conditions and improved staff complements in the prisons. This will boost the morale of prison authorities. I thank you, Chairperson. [Time expired.]
Ms S RAJBALLY: Chairperson, it is sad that one has to stand here and speak about crime again.
The MF has in the past moved notices of motion and also made statements in respect of crime in the country. In spite of the rehabilitation taking place in the correctional service, we still face such terrible crimes. We want to applaud your bravery, hon Minister, and your team for the quick action that you took in respect of this crime that happened.
The MF prays for the warder who is fighting for his life and wishes him recovery, and conveys its condolences to the bereaved families of the lost ones. Thank you very much, Chairperson. [Applause.]
Mr S SIMMONS: Chair, the Department of Correctional Services is in chaos. Since the hon Minister Balfour has taken office, this department has had one crisis after the other. The list is too long to mention. But security and safety within prisons have for a long time been an area of serious concern for South Africans. The security issue, hon Minister, has not improved as you have claimed. It is quite clear that the Department of Correctional Services lacks competent management skills and therefore requires drastic damage control management.
Subsequently, the UPSA calls on the Minister of Correctional Services to resign, and for the President to appoint a commission of inquiry into obvious poor management of the Department of Correctional Services. I thank you, Chairperson.
Mr N B FIHLA: Hon Chair, hon members, it is unfortunate that amongst us there are some who are very ignorant of the dangers and conditions that the staff and the members of the Department of Correctional Services are working under, and the risks that they are taking. And it is unfortunate that there are members who are ignorant of the difficulties experienced and risks that are taken by this department. These members have unfortunately never been part of the committee and have never visited a prison but they are speaking from hearsay. It’s just unfortunate, indeed.
The ANC is in deep sympathy with the member of the department who was repeatedly shot by those heartless and brutal inmates at Zonderwater Prison. We, as the ANC, condemn this act in the strongest terms and assure the people of South Africa that our department will try by all means to get hold of the culprits who have done this dastardly act, including those who helped them with the smuggling of weapons. We will deal with these corrupt elements by giving them the severest sentences that our justice system can give for exposing our members to the most dangerous conditions.
We can assure the people of South Africa that our department will work endlessly to sharpen the security at all prisons and ensure the safety of all inmates and the staff. I thank you, Chairperson. [Applause.]
Debate concluded.
REVENUE LAWS AMENDMENT BILL
(Introduction)
The ACTING MINISTER OF FINANCE (Mr A Erwin): Thank you, Chairperson. Hon members, the Revenue Laws Amendment Bill of 2005 and the Revenue Laws Second Amendment Bill of 2005 contain the remaining tax proposals as announced in the 2005 Budget. The reason for the two Bills is to ensure that matters that must be dealt with by way of a money Bill, are dealt with separately from administrative and other matters.
The tax changes dealt with in the two Bills include a variety of matters, and I will deal with each of these. Firstly, the medical scheme contributions, medical expenses, and employer-provided medical services. The attached Bills provide for taxpayers to deduct medical scheme contributions from their taxable income, provided the amount does not exceed specified limits per beneficiary.
Where the employer pays for medical scheme membership for its employees, this benefit will be tax free in the hands of the employee, subject to certain gaps. These limits are R500 for each of the first two beneficiaries, and R300 for each additional beneficiary. This proposal will also provide relief to self-employed persons or employees not entitled to employer-sponsored medical scheme membership.
The tax-free medical scheme contributions may be for any dependant of the taxpayer, as defined in the Medical Schemes Act, to take cognisance of the fact that a taxpayer may be responsible for the care of family members other than his or her immediate family. Medical expenses exceeding 7,5% of taxable income will also be tax deductible, and this is aimed at providing tax relief to those taxpayers who incur high, out of pocket medical expenses in cases of a medical catastrophe.
Other medical expenses paid are only permitted as a tax deduction in respect of the taxpayer, spouse and children, to encourage medical scheme membership and limit the potential for abuse in this area.
Further, in order to assist low-income earners who cannot afford even the most basic medical scheme package, but who are entitled to employer- provided medical care, no taxable value should be placed on this offside- employer provided medical services. This treatment may also be provided to the employee’s spouse and children without attracting tax in the hands of the employee.
In terms of dealing with tax-free travel facilities, in terms of current legislation where an employer provides free travel facilities to the relatives of an employee to visit that employee, who may be stationed for work purposes away from his/her main residence, this facility will be taxable in the hands of the employee.
It is proposed that where an employee is, by virtue of the conditions of service of that employee, placed more than 250km away from his/her main residence, or where they ordinarily reside, any travel facilities granted to them by their employer, to the spouse and minor children of the employee, to visit that employee, will be taxable as a fringe benefit. However, the employee is required to spend at least 183 days of the year in the assessment place.
Company cars and the fringe benefit of that - as from 1 March 2006, the monthly fringe benefit associated with the use of a company car is to be increased from 1,8% to 2,5% of the value of the car, excluding VAT. This is in line with the adjustments to the treatment of motor vehicle allowances.
Where an employee bears the running costs for private use of a company car, the monthly monetary caps for fuel and maintenance are to be replaced with percentage adjustments to the monthly fringe benefit. This would be less 0,2%, where the employee pays private fuel costs and less 0,18%, when an employee pays private maintenance costs.
A measure to attract foreign, skilled expatriates; the implementation of worldwide bases of taxation, and a capital gains tax in South Africa, serves as an unintended deterrent to nonresidents with scarce skills to work in South Africa. This system imposes taxation on a nonresident’s foreign income and capital gains when they are physically present in the country for a period of more than three years, and thereby become a resident for income tax purposes. In line with other countries, essentially this three-year limit has been extended to five years.
It is an internationally accepted practice that nonresident entertainers and sportspersons are liable for income tax in the countries in which they perform. A failure by South Africa to collect taxes from such persons is, in effect, an erosion of its tax base in favour of the country of residence of that person.
The Bill proposes that South African residents withhold a 15% tax from payments to nonresident entertainers and sports persons, and pay the tax over to SARS. Failure to do so will result in these residents becoming personally liable for the tax. The withholding tax will be a final tax at a flat rate, ie there is no need to file a tax return. This means that there will be no opportunity to claim tax deductions.
In order to compensate for the inability to claim tax deductions, the rate of tax to be imposed will be at 15%, which is lower than the existing highest individual marginal rate of 40%, and the corporate rate of 29%. As it is highly likely that these entertainers and sportspersons will be taxed on the same income in their own countries, tax certificates will be issued to them so that they can claim tax relief accordingly.
The Urban Development Zone Tax Incentive is intended to encourage investments in identified urban development zones, to address the problem of urban decay. This incentive takes the form of an accelerated appreciation allowance for the construction of new buildings and refurbishment of existing buildings in identified inner cities.
Under current law the allowances are available to taxpayers who own the building, or have constructed or refurbished it, and are using it solely for the purposes of trade, including the letting of the property. Therefore if a developer builds, in an urban development zone with the intended on- sale of the building, no allowance under this section will be available, since the developer will not use the building.
The purchase of the property will also not be eligible for the allowance, as a purchaser had not undertaken the construction or improvements.
Essentially, and I won’t go through the detail of it, we are remedying this to allow for the first purchaser to benefit from this incentive, and the detail is spelled out in the Amendment Bill.
With regard to public benefit organisations, given that many public benefit organisations need to find innovative ways to raise additional finances, provision was made to allow such PBOs to engage in certain trading activities. However, a difficult accounting by many such PBOs is that if their trading activities exceed the threshold as defined, their tax-exempt status is terminated altogether. This all-or-nothing approach has proved to be impractical.
A system of partial taxation is proposed. This means that PBOs who do conduct business activities that fall outside the permissible trading rules, may continue to do so without losing their exemption for nonprofit activities. They, however, pay income tax on the income from those business activities falling outside the allowable trading rules.
A tax-free gross income threshold of 5% of total receipts and accruals or R50 000, whichever is the greater, will be introduced. The revised thresholds will accommodate two concerns raised by the PBOs. It will not discriminate against larger PBOs or those who are late for group registration, and will allow for some, if not most, of the rental income earned, from the letting of manses by certain churches and other faith- based organisations, to be treated as tax-free income.
Regarding corporate restructuring, the threshold to qualify as a group of companies is reduced from 75% to 70% to accommodate more intragroup tax- free transfers of assets. This reduction will help to facilitate the implementation of BEE charters. A group of companies, for example, which is transferring a 26% interest in the group to a BEE partner, will continue to be able to benefit from the current tax neutral intragroup transfers, and no degrouping charge will be triggered.
The threshold to qualify for tax neutral company information transactions has been reduced from an interest of more than 25% to 20%. This would enable, for example, five persons to transfer assets tax-free into a company where the parties hold equal shareholder interest in the newly formed company. The leave provisions are also made for the incorporation of partnerships consisting of individuals.
In order to streamline the administration of the collections of the road accident levy, SARS will become the agency responsible for collecting the road accident levy. Accordingly the Bill proposes various amendments to the Customs and Excise Act of 1964, as well as the amendments to the Road Accident Fund Act of 1966. These amendments will come into effect on the date to be determined by the President.
Regarding measures to combat smuggling, the Bills introduce measures to combat the smuggling of goods subject to excise and customs duty, by introducing antidiversionary rules for goods removed in bond, and the probation of transiting of imported cigarettes through the Republic, when bearing the diamond stamp impression.
Regarding financial transaction tax relief with regard to the issue of new shares, as from 1 January 2006, stamp duty, as an uncertified security tax on the issue of new shares, will be abolished. This amendment will align the tax treatment of shares with other financial debt instruments. Appropriate safeguards are proposed to ensure that this exemption is not used to avoid the payment of stamp duties, or uncertified securities tax imposed on the sale between shareholders or the so-called secondary trade. In regard to stamp duties, in order to limit the amount of stamp duties that will be payable in terms of a long-term lease, a 10% limit equivalent to the maximum transfer duty rate is proposed in respect of any lease executed on or after 1 January 2006.
In keeping pace with modern technology, adhesive revenue stamps and franking machines will be phased out. The Bill proposes a number of consequential amendments to provide for the introduction of electronic stamping. In order to simplify administration and compliance, no stamp duties will be payable where the aggregate duty payable on a lease is R200 or less during the lessor’s financial year.
Certain amendments are being made to the VAT Act. The Bill proposes that generally input VAT cannot be claimed on motor vehicles and entertainment expenses. Accordingly, as proposed, vendors may claim input VAT on motor vehicles and entertainment that are awarded as prizes, provided that bets are placed. It is proposed that goods supplied to a foreign company, but delivered to a registered vendor in South Africa, should be zero-rated.
This amendment will ensure that VAT is not a cost to the South African vendor, where it contracts with a foreign company. The Bill also provides for the zero-rating of the supply of services under a warranty agreement, where the warrantor is a nonresident. This amendment will ensure that VAT is not a cost to the South African vendor, where it contracts with a foreign warrantor.
Finally, international donor-funded agreements, to which government is a party, often contain clauses stating that the funds may only be used for the agreed purpose, and not be spent on tax. Amendments proposed create the mechanism to give practical effect to the agreements in that such funds received will be zero-rated, and all VAT paid on expenses will be claimable as an input tax.
Regulating the write-off, waiver and compromise of undisputed tax debts by the commissioner, the now repealed Exchequer Act provided a mechanism which enabled the then Commissioner for Inland Revenue, as part of the Treasury, to write off the whole, or any portion of a tax claim. The Exchequer Act was repealed upon the commencement of the Public Finance Management Act of 1999, and section 76(1), of the PFMA, and regulations issued in terms thereof, provided for the writing off of losses of state money, or other assets or amounts owed to the state.
However, section 76(1) and consequently the regulations issued hereunder are not applicable to SARS. The Bill proposes that enabling legislation be incorporated into the Income Tax Act to grant the Minister of Finance the power to prescribe, by regulation, the circumstances of write-off, waiver, or compromise, of undisputed tax debts. The Bill provides for the draft regulations to be published and made to available for Parliament before their promulgation.
Finally, on behalf of Minister Manuel, I would like to thank the chairs and members of the PCOF and the SCOF for their constructive engagement with the national treasury and SARS teams, with the view to improving the Revenue Laws Amendment Bills. I thank you. [Applause.]
Order disposed of without debate.
Bill referred to the Portfolio Committee on Finance for consideration and report.
RECOMMENDATION FOR APPOINTMENT OF MEMBERS OF THE BOARD OF THE MEDIA
DEVELOPMENT AND DIVERSITY AGENCY
(Consideration of Report)
Question put: That the recommendation for the appointment of Mr M K Jara and Mr C J Moerdyk to the Board of the Media Development and Diversity Agency be approved.
Question agreed to.
Mr M K Jara and Mr C J Moerdyk accordingly recommended to the President for appointment to the Board of the Media Development and Diversity Agency.
Consideration of Thirty-Second Report of Standing Committee on Public Accounts - Land Bank and Agricultural Bank of South Africa
Consideration of Thirty-Third Report of Standing Committee on Public Accounts - Accounting Standards Board
Consideration of Thirty-Fourth Report of Standing Committee on Public Accounts - Corporation for Public Deposits
Consideration of Thirty-Fifth Report of Standing Committee on Public Accounts - Development Bank of Southern Africa Limited
Consideration of Thirty-Sixth Report of Standing Committee on Public Accounts - Export Credit Insurance Corporation of South Africa
Consideration of Thirty-Seventh Report of Standing Committee on Public Accounts - Greater St Lucia Wetland Park
Consideration of Thirty-Eighth Report of Standing Committee on Public Accounts - Khula Enterprise Finance Limited
Consideration of Thirty-Ninth Report of Standing Committee on Public Accounts - National Botanical Institute
Consideration of Fortieth Report of Standing Committee on Public Accounts - National Gambling Board
Consideration of Forty-First Report of Standing Committee on Public Accounts - South African National Accreditation System
Consideration of Forty-Second Report of Standing Committee on Public Accounts - South African National Parks
Consideration of Forty-Third Report of Standing Committee on Public Accounts - Finance, Accounting, Management Consulting and Other Financial Sectors
Consideration of Forty-Fourth Report of Standing Committee on Public Accounts - Transport Education and Training Authority
Consideration of Forty-Fifth Report of Standing Committee on Public Accounts - Insurance Sector Education and Training Authority
Consideration of Forty-Sixth Report of Standing Committee on Public Accounts - South African Tourism
Consideration of Forty-Seventh Report of Standing Committee on Public Accounts - Banking Sector Education and Training Authority
Consideration of Forty-Eighth Report of Standing Committee on Public Accounts - Information Systems, Electronics and Telecommunications Technologies Services Sector Education and Training Authority
Consideration of Forty-Ninth Report of Standing Committee on Public Accounts - Forest Industries Education and Training
Consideration of Fiftieth Report of Standing Committee on Public Accounts - Health Welfare Sector Education and Training Authority
Consideration of Fifty-First Report of Standing Committee on Public Accounts - Diplomacy, Intelligence, Defence and Trade and Training Authority
Consideration of Fifty-Second Report of Standing Committee on Public Accounts - Media, Advertising, Publishing, Printing and Packing Sector Education Training Authority
Consideration of Fifty-Third Report of Standing Committee on Public Accounts - Tourism, Hospitality and Transport Education and Training Authority
Consideration of Fifty-Fourth Report of Standing Committee on Public Accounts - Chemical Industries Education and Training Authority
Consideration of Fifty-Fifth Report of Standing Committee on Public Accounts - Education, Training and Development Practises Sector Education and Training
Consideration of Fifty-Sixth Report of Standing Committee on Public Accounts - Food and Beverage Seta Consideration of Fifty-Seventh Report of Standing Committee on Public Accounts - Energy Sector for Education and Training Authority
Consideration of Fifty-Eighth Report of Standing Committee on Public Accounts - Unauthorized Expenditure (Government Communication and Information Services)
Consideration of Fifty-Ninth Report of Standing Committee on Public Accounts - Unauthorised Expenditure (Presidency)
Consideration of Sixtieth Report of Standing Committee on Public Accounts - Unauthorized Expenditure (Department of Home Affairs)
Consideration of Sixty-First Report of Standing Committee on Public Accounts - Unauthorized Expenditure (South African Management Development Institute)
Consideration of Sixty-Second Report of Standing Committee on Public Accounts - South African Diamond Board
Consideration of Sixty-Third Report of Standing Committee on Public Accounts - POSLEC-Seta
Consideration of Sixty-Fourth Report of Standing Committee on Public Accounts - Primary Agriculture Education and Training Authority (PAETA)
Consideration of Sixty-Fifth Report of Standing Committee on Public Accounts - Financial and Fiscal Commission
Consideration of Sixty-Sixth Report of Standing Committee on Public Accounts - Independent Communications Authority of South Africa (ICASA)
Consideration of Sixty-Seventh Report of Standing Committee on Public Accounts - The Council for Scientific and Industrial Research
Consideration of Sixty-Eighth Report of Standing Committee on Public Accounts - South African Broadcasting Corporation Limited (SABC)
Consideration of Sixty-Ninth Report of Standing Committee on Public Accounts - Competition Tribunal
Consideration of Seventieth Report of Standing Committee on Public Accounts
- South African Veterinary Council
Consideration of Seventy-First Report of Standing Committee on Public Accounts - Local Government Water and Related Services Seta
Consideration of Seventy-Second Report of Standing Committee on Public Accounts - Financial Services Board
Consideration of Seventy-Third Report of Standing Committee on Public Accounts - Clothing, Textiles, Footwear and Leather Seta
Consideration of Seventy-Fourth Report of Standing Committee on Public Accounts - Airports Company South Africa Ltd (ACSA)
Mr N T GODI: Chairperson, comrades and hon members, let me start off by expressing my appreciation for the privilege and responsibility given to me to chair this important committee. I want to give my assurance that the trust placed in me will not be in vain. For me it is an opportunity to serve and grow; to serve Parliament and our people in the continuous struggle to transform our country and substantively improve the material conditions of the majority.
It is a responsibility that I take upon me with open eyes. It is a responsibility that I will discharge with neither fear, nor favour, sparing neither courage nor energy in the service of our people. These are values bequeathed to us by the liberation movement.
The reports we are presenting to the House were considered by Scopa when it was still under the stewardship of Comrade Francois Beukman. May I take this opportunity to salute him for the role he has played in ensuring that Scopa, with its numerous challenges, is still able to discharge its responsibilities as provided for in the Constitution, legislation and National Assembly Rules.
My appreciation also goes to the members of Scopa, its administrative staff and the Auditor-General’s Office for their service and sacrifice.
I understand that a total average of between 270 and 290 reports of the Auditor-General are referred to Scopa annually. Scopa has to ensure that all these reports receive the attention they deserve. This is a huge workload.
Scopa is bringing before this House reports that, in the first instance, have been considered to have a clean bill of health in that they were both unqualified audits and have no material issues of concern. The committee is happy and hopes that they will maintain this level of financial management forever and that others can copy from them.
There are, however, other reports that have unqualified audit reports, but have other deficiencies that Scopa believes cannot be left unconsidered or unattended. We consider them in a serious light and we have made recommendations that we expect these entities to follow up and report back to Scopa to ensure compliance with the Public Finance Management Act and Treasury regulations.
We cannot condone a situation in which a public entity keeps huge cash reserves when the demand for service delivery is so high. Nor is it acceptable to have incomplete asset registers, weak or almost nonexistent internal audit mechanisms. This is a perversion of Treasury regulations.
Worst still are instances where some entities do not have fraud prevention plans. The question of fraud prevention plans is not just a good thought; it is legislated for and regulated. It is one of the basic building blocks in the fight against fraud and corruption.
To not have such plans is completely intolerable. As the Auditor-General has always indicated - and I would like to believe that that is our common understanding - we need a preventative approach. It is more effective than a reactive one.
If only we could - and we should - change the mind-set of the executive authorities, the accounting authorities and the general cadreship of the Public Service to lead by the dictum, “Prevention is better than cure”.
Some other concerns raised by Scopa look so unnecessary that they can only be a pointer to a lackadaisical attitude towards probity, good governance and accountability.
For example, the qualified report of the Land Bank of South Africa contained a lot of issues that were disturbing and unacceptable. The committee called senior management to a hearing, which then only further confirmed the existing inadequacies. There were clear instances of noncompliance with the Public Finance Management Act and Treasury regulations.
What is disturbing is that in the financial year in question the bank incurred losses, yet it was able to dish out bonuses of about R3,4 million to senior management. On checking, we found that there were no clear guidelines or policies for awarding bonuses.
I think that I still need to be schooled in this incomprehensible practice of the captains of industry, of dishing out bonuses to themselves, to the total exclusion of the workers, even when a company or entity has incurred losses. If this is not daylight looting, I need to be enlightened differently. The committee has made numerous tough recommendations that we expect the bank to implement to improve its lamentable state.
As we commend these reports to the House, we commit ourselves, despite the huge workload, to ensuring that all reports referred to Scopa by this honourable House will receive the attention they deserve. Scopa will continue to work as methodically as possible, sifting the more serious reports from the less serious ones, and dealing with the more serious reports in sufficient detail.
The criteria that Scopa uses are well known. We’ll have to see whether these should be improved to make Scopa’s examinations even more relevant to the priorities of Parliament, for example, the optimal utilisation of public resources, intolerance of fraud and corruption and effective administration that can support the service delivery that our people deserve.
Scopa seeks to ensure improved financial management to provide quality public service and ensure careful use of public money. There is indeed a very direct relationship between effective financial management and service delivery.
The dialectical transformation of the institution of Parliament also involves the areas of focus and method of work of committees, including Scopa. From what I have so far heard and seen as chairperson, one may want to see improvements in one or two areas that might need priority attention.
It seems that the time line from the date of a hearing to the tabling of reports and recommendations in the House is too long. These well-considered reports make appropriate recommendations on identified areas of concern. It would enhance oversight processes if these recommendations were brought to the appropriate authorities more quickly.
The Rules Committee’s Task Team on Accountability and Oversight focus group is developing a best practice guide on parliamentary oversight with respect to parliamentary committees, and one of its recommendations is that Parliament should develop a mechanism and processes to monitor the implementation of its recommendations to the executive to ensure improved executive compliance.
The effectiveness of Scopa is dependent on the response to its recommendations. Where entities have responded positively to Scopa’s recommendations the overall quality of their financial management and administration has improved. It is, therefore, not surprising that these institutions have unqualified opinions.
Another aspect that needs attention relates to cases where departments or entities appear before Scopa year after year, and often with much the same problems, without financial management as one of their strategic objectives. Surely, if an institution’s financial management doesn’t get a clean bill of health from the Auditor-General, then improving its financial management should be an obvious strategic objective, and Scopa would have to ensure this.
Lastly, comrades and hon members, I think it is appropriate for me to dispel the myth, once and for all, that there is anyone in this country who is more concerned about fraud and corruption than the liberation movement. Corruption is about greed, and not poverty. It is the well connected, the well off, and not the poor, who are the motivating force of corruption.
It is about a clique of the ideologically corrupt acting against the people. It is completely inimical, in sharp contradiction with the ethos and values of the liberation movement. It is against revolutionary morality.
There is, therefore, no way that the liberation movement can sacrifice itself on the altar of corruption. Of course, in our unceasing battle against corruption we are not going to be hysterical. We will be systematic and unequivocal; just firm and decisive.
We fought for this democracy, and the spirit of our martyrs forbids that we can hand the baton of guarding and advancing this democracy to reactionary elements, not now, not ever! Thank you. [Applause.]
Mr T R MOFOKENG: Hon Chair, the House at large, allow me to welcome and congratulate our new chairperson. I give him our vote of confidence and hope that the workload we have on our hands will be minimised. And I hope that he will work within the maximum speed limit required by this institution. He has already indicated his intention to do so, and I appreciate it.
Today’s debate on Scopa is not surprising, I think. I think it has not been held in this institution for many, many years. Now the question is: Why do we have it today?
That shows that there is really improvement in that committee. Without any fear of contradiction, we are not worried that there will be any criticism. Our aim is to deal with corruption. That is the reason we brought this issue for debate here. Whoever thinks that we are not doing the right thing should spell that out clearly.
The work of Scopa is not merely about ensuring proper financial management in government departments and public entities. Scopa’s oversight role is important to service delivery.
Coming to the reports, I think that we have got approximately 42 reports. However, of the 42 reports 17 deal with the education Setas. Of the 42, four reports, I think, deal with unauthorised spending. However, the chairperson of the task team will deal with that.
I would like to dwell more on 17 of the 42 reports. To throw some light on this, at Scopa we allocated members to deal with the administration. Even though our approach is more political, we are dealing more with the administrative side of things. You take along documents and deal with them over the weekend.
The question of Setas, which we are considering now, is normally dealt with by hon member Don. Apparently, when we were called in I had to deal with it myself. He normally deals with close to 70 entities of all the Setas. So without any waste of time, let me proceed to the matter.
I will speak exclusively on the 17 reports of Scopa that deal primarily with the Sector Education and Training Authority. The Skills Development Act of 1998 and the Skills Development Levies Act of 1999 were specifically put in place to address the skills shortage in our country by encouraging and supporting training across all sectors of the economy through the Setas, and therefore those falling under their jurisdiction should make every effort to adhere to the policy framework contained in the legislation.
The question is: Why are we pushing for the education Setas? I think that we are responding to a statement that has been made by the President many a time about the problem that we have in our country, that our country is handicapped by the so-called “two economies”. So to deal with this dualistic economic model we have to think of the labourers based in rural areas moving to urban areas. As they move, they try to fit into the modern economy.
The modern economy has for years been fraught with problems related to apartheid. So its not going to be easy to pay the salaries paid in the modern economy. That is the reason you will find a big gap existing between the highest paid and the lowest paid workers.
As is the case with all annual reports before Scopa, we carefully scrutinise all reports from the Setas. In most cases these are unqualified audit reports. This is indeed a compliment to the Minister for the manner in which he deals with the Setas.
Occasionally, there are Setas that do not meet the requirements. In those instances Scopa does not hesitate to outline to the Minister, through the resolutions, the areas that need improvement.
At Scopa we believe that we are not here to haunt the Ministries and examine with malicious intent all their financial accounting structures. Rather, we are here to work with the Ministries to rectify things where there have been contraventions of the Public Finance Management Act and Treasury regulations in order to achieve compliance with these.
So in the case of the 49th report on Forestry, Industry, Education and Training, which had an unqualified audit report, we found that Fiat had not submitted its budget by 30 September 2003 as required in terms of the Public Finance Management Act. We thought it prudent to bring this matter to the attention of the Minister of Labour. Similarly, there were cases in which Scopa was very concerned about the very excessive surplus, as was the case in the 50th report of the Health, Wealth Sector Education and Training Authority. Again, the Auditor-General gave an unqualified audit opinion, but Scopa requires details of how and when the Health, Wealth Sector Education and Training Authority plans to reduce excessive cash reserves.
We found that they still have lots of cash reserves in their budget, which will get rolled over the following year. Now this gives a bad picture. The same holds true for the Advertising, Publishing, Printing and Packaging Seta.
Here Scopa requires a progress report regarding the forensic audit into discrepancies regarding grant payments. Consciously, we believe, as any ANC member would, that it is in the interests of the new democracy to ensure that those who attempt devious means of self-enrichment by diverting government funds into their own pockets are found out and removed from the positions of trust that they hold.
We cannot, and will not, condone corruption in any form, which will undermine this democracy that you people have fought hard for. Consequently, we know that the National Skills Development Strategy was reviewed by the Minister and tabled for adoption by Cabinet in January 2004, and proposed for implementation in April 2005. This is, of course, a very welcome intervention since it seeks to prioritise certain areas of work and to direct skills and funds to where they are most needed.
We are pleased to note in the Ministry of Labour’s annual report, that the Minister has instituted a uniform set of annual financial statements for the Setas. Scopa is also pleased that in addition to this, the statements of the Setas were consolidated in the new format prescribed by the Office of the Accountant-General.
These positive steps augur well for increased financial accountability and adherence to the Public Finance Management Act and Treasury regulations.
Scopa is also awaiting the full implementation of the National Skills Development Strategy from 2005 to 2010, which the Minister of Labour hopes will play a key role in realising government’s goal of halving the country’s unemployment by 2014.
The Minister sees learnerships and internships targeted at unemployed youths as critical to addressing unemployment. For the adults he sees adult basic education and training policy, driven through the National Skills Development Strategy, as a way to enhance the basic skills of people beyond their school-going years and tackle long-term unemployment.
We wish the Minister of Labour well in his endeavours to bring about sound financial accountability in the many Setas under his jurisdiction. We look forward to the new annual reports, which are already in Parliament for our scrutiny. I think I am through, Chair. Thank you very much to everybody. [Time expired.] [Applause.]
Mr E W TRENT: Acting Deputy Speaker, during the period 1994 to 2004, I served on and chaired our province’s standing committee on public accounts. I believe that I have sufficient experience and the licence to make a few fundamentally important observations as a contribution to the ongoing debate on accountability and oversight.
If hon members accept the recommendations of this afternoon’s debate, and hopefully they will, they must be reminded that they must have something in mind at the end. It’s not just a debate.
Let me illustrate this Transformation, oversight and accountability are powerful words. I hear them often. However, if transformation fails to improve the lives of the intended beneficiaries, then it remains just a meaningless word.
By the same token, if the oversight role of Parliament, and therefore that of the Standing Committee on Public Accounts does not result in improved accountability on the part of the executive, and of course the resultant better governance and use of resources, then the word ``oversight’’ also becomes meaningless.
The reports under discussion deal with government entities, not departments, and they were tabled during the last quarter of last year. They, however, remain the direct responsibility of the various Cabinet Ministers and, I presume, the Deputy Ministers.
On 14 September, 27 were tabled, and then again, in October, a further 17 were tabled. I will deal with each group separately, but briefly, because of the time constraints. However, all are published in full in the Announcements, Tablings and Committee Reports.
I have divided the 26 reports tabled in September into four basic categories. Eight of these entities can be described as being in the financial sector. All are clean, except for the Land Bank, a very important institution if we are going to succeed in assisting emerging farmers under the government’s programme of land reform. Sadly, this institution remains problematic.
Scopa has recommended 20 interventions. However, it is important for hon members to note that these recommendations will take effect after the Land Bank’s 2005 annual report and audit report has already been tabled. The time lag is simply too long.
There are reports from 14 sector education and training authorities - four have clean reports, nine carry the obligation to respond to Parliament in 60 days. This is a new innovation. If we are serious about addressing the skills shortage, Setas must be made to work. It is therefore disappointing that the Auditor-General has seen fit, once again, to raise the issue of excessively high cash reserves in some of them.
Three are environmental entities, all with clean reports, and finally, the National Gambling Board, the wild card, is okay. I’m not so sure that those who frequent the casinos whilst their families starve are OK, but that is a personal opinion.
The Scopa reports tabled on 12 October contain at least 40 recommendations that are broken into subrecommendations. There are many, many more matters that have to be dealt with. Many of them also carry the 60-day requirement.
If Parliament says yes to these recommendations, and it does so in the belief that this will lead to better governance, then Parliament must also be prepared to say yes to punitive action against those who fail to respond to the decisions of this House. What are our chances of success if history continues to repeat itself? The end objective of this process must be to get responses as quickly as possible, because poor financial management leads to wastage of resources, fraud and theft.
I have tracked the Scopa reports tabled on 16 March, and 18 May respectively, which were adopted on 7 June. There were only six, comprising four entities and two departments. The entities pose no problem, but the two departments, Correctional Services and Public Works were asked to respond, collectively, to no less than 17 recommendations that deal with serious matters. It is important to note that these recommendations were adopted by this House. I am not aware of any responses that have been tabled thus far.
I am also concerned about the time lags between the tabling of annual reports and the ultimate acceptance of Scopa recommendations by this House. Let me illustrate by using just a random example. The Department of Correctional Services tabled its 2004 report on 30 September 2004. Scopa’s report was finally adopted by Parliament on 7 June this year. By then, the 2005 accounts were almost ready for audit.
I use this example – and there are many – not as a criticism of the committee, but to emphasise that all is not well with Parliament’s oversight role.
I conclude with a few observations in respect of the draft final report on the developing of a best practice guide for Parliament’s oversight role. I have noted the challenges set out on pages 24 and 29, and the chair referred to this. I quote: There is very little follow-up on recommendations to the executive. Committees do not have the power to sanction the executive when the latter does not comply with a request of this committee.
I repeat: If the end objective to this whole process is better governance, then we cannot continue to allow reports and recommendations to pass through the system simply to be ignored. There is no rule that specifically places an obligation on the executive committee to report and respond to decisions of this House. There are no easy choices. If we are to have voluntary compliance, as is pointed out in a document by the state law adviser of 27 August 1999, it doesn’t seem as if that is going to come easily.
The simple fact is that a recommendation to the executive remains but a recommendation, even though it emanated from a parliamentary committee and has been endorsed by a House of Parliament. That is what the law advisers to Parliament tell us.
However, Parliament is not without redress. There are other avenues to explore. The refusal or the failure of the executive to act in accordance with the recommendations of the committee need not necessarily be the end of the matter. Parliament, by virtue of its position as the supreme legislative authority, could pass legislation to regulate or rectify the mischief concerned, thus imposing its legislative will on the executive.
I am sure that none of us would like to go to those ends, and hopefully, in this new phase in Scopa’s cycle, we will get better co-operation from the executive. What we need to understand is that it is no good the executive’s passing the buck to civil servants. They carry the ultimate responsibility for what happens in their departments, and they also carry the responsibility for those entities that fall within the jurisdiction of their departments.
The DA will be supporting these reports, and we look forward in anticipation to see how many of them are responded to by the executive committee. [Applause.]
Mr H J BEKKER: Hon Mr Deputy Speaker, I am glad to see you here. It may only be for a few days, but at least the “misters” have gained control of this honourable House for a few days.
The IFP supports the comments and all the relevant reports of the Standing Committee on Public Accounts, the relevant reports from the 32nd report to the 74th report, totalling an enormous 43 reports. This, in no uncertain way, reflects the enormity and scope of work being done by this standing committee.
Primarily, this debate is about the approval of the reports as listed. I have, however, not been an integral part of the Scopa committee, since I have just been redeployed by my party to be the principal member.
I have, however, in the past, served for several years on this committee during the previous political dispensation. Therefore, I have a real appreciation of the workload and the dedication required from members. More so, I do have sympathy for our new chairperson, and I can only wish him well with his great task. He will have the full support of the IFP. Also, I congratulate the hon Godi on his maiden speech as chairperson.
I cannot speak on the detail of the reports, since this is my first speech in my new capacity. Acting Deputy Speaker, I hope I will have the latitude and your protection, as this is practically also a maiden speech. So, therefore, I am now hopefully being protected against howling and interjections.
I haven’t had that privilege since 1981. In fact, since 1981, this is now approximately my fourth maiden speech, taking into consideration my sojourn between provincial legislatures, and moving forwards and backwards in this highly esteemed Chamber of the National Assembly.
Coming back to the importance of the Scopa reports and detailed minutes of this committee, it may suffice to reflect on some of the watchdog achievements going back to even the previous dispensation.
Scopa was, at that time, indeed responsible for the ultimate appointments of judicial commissions into the corruption scandal of the then Department of Bantu Education, and more so the investigation into the atrocities of the Civil Co-operation Bureau. Scopa and even the representatives of the then ruling party had to convince a reluctant State President to appoint the relevant judicial committees.
In this regard, I personally played a role, particularly in respect of the CCB, when I requested and proposed a snap debate on the atrocities, which was duly seconded by Mr Harry Schwartz of the opposition. This snap debate indeed opened the proverbial ``can of worms’’.
Scopa will remain important and will carry on its duty as the watchdog of this government. [Time expired.]
Mr S N SWART: Chairperson, the ACDP would firstly like to commend the Standing Committee on Public Accounts for its sterling work this year, and congratulates the new chairman, Mr Godi, on his appointment.
Scopa scrutinises annual reports and the Auditor-General’s reports and, in so doing, holds national departments, public entities and government business enterprises financially accountable in terms of the Public Finance Management Act and the Treasury regulations.
We in the ACDP share concerns regarding the long period of time it takes to respond to decisions of this committee and this House, and believe that something needs to be done in this regard.
In the limited time at my disposal, I would like to highlight certain aspects from the report. We share the concerns relating to the Land Bank, regarding the late submission of financial statements and their incompleteness. How is it possible that financial statements were not drawn up in accordance with generally accepted principles of accounting practice regarding impairments, that is, the difference between the book value and the expected recoverable amount? And this for a bank! In the absence of this accounting requirement, how will this bank know what the correct amount recoverable from its debtors should be? No wonder that bad debts to the amount of approximately R1 million were written off in the period under review.
We share concerns that bonuses to the total amount of R3,4 million were paid, notwithstanding that the bank experienced losses. A further concern is that the bank’s key capital adequacy rate fell from 12% to 9,8% for the year under review. We agree that the liquidity situation of the bank is too low, and must be built up to an acceptable level.
Regarding other Scopa reports, we note that Scopa recommends that Parliament approve unauthorised expenditure of various amounts in various departments, such as R1,591 million in government communications, for example.
We note the various concerns expressed by the committee and that various national departments, public entities and government business enterprises will be closely monitored. This, in addition to parliamentary portfolio committees checking expenditure against Budget Votes, should have resolved problems of financial accounting. However, again we look at the delay in these entities responding to the concerns that Scopa and the portfolio committees raised, and again I reiterate that something needs to be done in this regard.
What can be done? The point was raised in the reports that we in Parliament have ensured that the Public Finance Management Act contains provisions aimed at strict budgetary discipline. This must be emphasised. All instances of unauthorised expenditure should be thoroughly scrutinised to ensure compliance with sections 34, 38 and 81 of the PFMA. Section 81 contains provisions relating to financial misconduct by accounting officers and can result in disciplinary action. Perhaps Scopa should consider instituting disciplinary action against accounting officers where such action is warranted. In conclusion, we are pleased to note that the majority of entities considered by Scopa received unqualified auditor’s opinions. Therefore, the ACDP will support these reports. I thank you.
Mr P A GERBER: Deputy Speaker, on behalf of the ANC, I’d like to welcome Mr Godi as chairperson to this committee. I also would like to welcome Mr Hennie Bekker back to this committee because he has been on this committee since 1994. I believe that Dr Woods is apparently leaving the committee, and I’d like to thank him for the hard work he has done on this committee.
I would like to concentrate only on two of these reports we are tabling today. One of these is the report of the South African National Parks Board. Although it is a clean report, one is a bit concerned if you look at certain information in their latest report. For instance, its turnover increased by only 6% from R392 million to R419 million. Its salaries rose by 9% from R233 million to R256 million. These figures might look insignificant to you, but the salaries constitute more than 60% of their turnover. This can’t be healthy.
If SA National Parks’ turnover was compared to the market value of their nature reserves, then it will be one of South Africa’s biggest under- performers in terms of capital and turnover.
The SA National Parks also has a board of 18 people. One can dissect the attendance register of all the board meetings, and it will raise a few questions of concern. However, what concerns us the most is that the seven- member audit committee had only met six times during the course of that year. Only the chairperson of the audit committee attended all six of these audit committee meetings. The other six members only attended one meeting each. This is sad, Mr Acting Speaker, and really unacceptable.
The SA National Parks earned income less than the R43 million, namely R41 million. Yet its executive management were paid R9 million, of which R2 million was for bonuses.
Scopa is basically concerned with value for money for the taxpayer and the state. I think the Department of Environmental affairs and Tourism should go and analyse if SA National Parks is still the best vehicle in terms of value for money for the taxpayer to manage these most beautiful parks in the world. Other reasons that were motivated for the formation of that unit are still valid today.
I’d like to move on to the report on the SA Diamonds Board. One of these reports deals with investigation relating to the export and sale of diamonds in terms of the Diamonds Act of 1986. The committee noted with concern the significant weaknesses highlighted in the audit report with regard to the export and sale of diamonds.
The following issues were raised: firstly, the validity of exemptions given under section 63 of the Diamond Producers and Dealers Act by virtue of agreements entered into in terms of section 59 of the Act; secondly, limited documentation for section 59 agreements; Thirdly, the drastic decline in export duties; fourthly, differences and disputes between the government diamond valuator and the South African Diamond Board relating to the role and functions of the government diamond valuator; and lastly, the length of time for which the above issue remained unresolved.
Having heard and considered the views of National Treasury, the South African Diamond Board, the Department of Minerals and Energy and the Auditor-General, the committee is of the view that this matter has been unduly prolonged. The committee is aware of the many administrative initiatives to resolve these issues, but notes the failure of these to produce any positive results.
The committee therefore recommends that firstly, the relevant state institutions should initiate legal proceedings with the view to resolving the section 59 exemptions in question; and that a special meeting should be convened by the Auditor-General for this purpose within 30 days after this report has been accepted and adopted by Parliament - in other words, 30 days from today. Secondly, the board should ensure that all South African- produced diamonds be valued in South Africa on a fair market basis. Thirdly, the board should strengthen its efforts to increase local beneficiation of South African diamonds. Lastly, the board should confer with the Department of Minerals and Energy to finalise and implement the new legislation.
In a nutshell, we had a public hearing with the South African Diamond Board. The Auditor-General raised questions about the shipment of R19 million carats of uncut diamonds where De Beers shipped more than nearly three tons to London just before the April 1994 elections and avoided paying the 15% export duty to the state. Scopa investigated the matter as millions of rands, if not a billion rand, in export duty was at stake.
Scopa is now adopting this resolution, which we will bring to the House on the matter, asking that the relevant state institutions should initiate legal proceedings with a view towards resolving the section 59 exemption in question. A special meeting is to be convened by the Auditor-General with all stakeholders within 30 days after today to resolve this issue. This resolution we are bringing to this House today. All we want this company to do is to give us a copy of the exemption from paying this 15% export duty - nothing else, nothing more and nothing less.
Apparently, the same thing also happened on the eve of the independence of Namibia with certain mining companies. They say the golden rule in Africa is: He who controls the gold, makes the rules.
I thank all the members of Scopa for their hard work in processing all these reports, as this is our last report for the year. Thank you very much, Mr Deputy Speaker. [Applause.]
Mr B E PULE: Hon Chair and hon members, the Standing Committee on Public Accounts looked at the aforementioned annual reports, that is the 32nd and 74th Reports.
Scopa observed that most reports were generally unqualified, but there were some concerns about some matters such as those in the 54th report, that is, that of the Chemical Industries Sector Education and Training Authority. The following were noted: Firstly, there was no fraud prevention plan as required by Treasury Regulation No 21.2.1; secondly, there were no weekly bank reconciliations as required by the Public Finance Management Act; and thirdly, they failed to update the asset register during the 2003-04 financial year.
Furthermore, there are some unauthorised expenditures in some reports: firstly, R1 million incurred by GCIS during the 2003-04 financial year; secondly, R491,2 million and R256,9 million incurred by the Department of the Presidency in 1998-99 and 2002-03 respectively; thirdly, R4,6 million incurred by the Department of Home Affairs in the 2000-01 financial year; and fourthly, R4,3 million incurred by the entity Samdi in the 2002-03 financial year.
After considering the evidence provided by National Treasury and the department, the committee recommended approval of expenditure by Parliament where it was found that the expenditure was not wasteful or fruitless. It is only on those conditions that the approval could be made.
Allow me furthermore, Chairperson, to revert to the most disturbing report among these reports, that is, the 32nd report on the Agricultural Bank of South Africa. The following were of great concern: firstly, noncompliance with generally accepted accounting principles - Gaap; and secondly, unresolved deficiencies in the banking loan module of the computer system used by the Agricultural Bank of South Africa during the 2003-04 financial year - there were also a number of internal control weaknesses identified; and thirdly, bad debts to the value of R1 million written off during February 2004 without formalised approved policies and procedures. [Time expired.]
Mr T LIKOTSI: Hon Chairperson, the PAC wishes to join all progressive political parties in congratulating the incoming committee chairperson. I’m sure he is going to be equal to the task.
On the report, the PAC wishes to observe that almost all the reports of the Standing Committees are unqualified; that some committees default on various administrative issues such as rules, regulations, policies and accounting procedures that do not conform to the Generally Accepted Municipal Accounting Practices and the Public Management Finance Act. These are basic accounting principles and must be followed.
On the internal auditing functions, deficiency and incomplete asset register may lead to nontracing of default and theft. Some committees failed to submit their budgets timeously, and as a result they may be affected by unauthorised expenditures.
There are high costs of research in some Setas, and that is to the disadvantage of the unskilled and unemployable persons.
In conclusion, some Setas have no fraud-prevention plan whilst this country is fast being affected by fraud and corruption. I thank you, hon Chairperson. [Time expired.]
Ms S RAJBALLY: Chairperson, with regard to the public accounts investigated by Scopa, all accounts appeared to be adequately managed and maintained; and if any remedy is needed for an account, that too appears to be in place.
This, the MF finds, creates satisfaction with and trust and confidence in the system that appears to be adequately managing the sector. Our compliments are extended to those accounting institutes that have rendered these services and delivered effectively on the task of balancing all public accounts.
We especially extend our good wishes to the independent auditors for the forthcoming year and the reports they will efficiently, effectively and precisely deliver.
The transparency advocated by our nation is tremendously important to the democracy we are building, maintaining and upholding. The people have a right to all this information, not only to have access to the doings of the government but to engender confidence in our responsibility towards them and our nation.
The MF takes this opportunity to thank Scopa for bringing to the House an open and descriptive report of our public accounts situation. We respect this and expect that this efficiency and delivery will be maintained. The MF supports the 32nd and 74th Scopa Reports.
May I also take these few minutes to congratulate hon Godi on his appointment as the Chairperson of Scopa. Thank you very much, Chairperson. [Applause.]
Mr S SIMMONS: Deputy Speaker, having read the report of the Standing Committee on Public Accounts on the Land Bank and Agricultural Bank of South Africa dated 7 September 2005, it has become abundantly clear according to the evidence submitted by the Auditor-General that the financial statements of the Land Bank for the year ended 31 March 2004, leave much to be desired.
Why are so many loans being written off by the said bank? The UPSA is of the opinion that improper criteria are being applied when considering a loan application. This should be the starting point in preventing a continuation of the huge number of bad debts that have occurred up to now.
In conclusion, the UPSA calls for a review of the application criteria as well as the appointment of competent loan officers. I thank you, Chairperson.
Mr V G SMITH: Chairperson, in 1999 the Minister of Finance stated that the Public Finance Management Act is one of the most important pieces of legislation passed by the first democratic government in this country. He went further to state that the Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources.
It is for this reason that Scopa and Parliament have a duty to intensify the scrutiny of financial management by government departments and agencies.
Having considered the Auditor-General’s reports, Scopa presents over 40 resolutions to Parliament for consideration. The overwhelming majority of these reports are unqualified and we acknowledge the visible improvement by departments as far as financial management is concerned.
At the same time, it must be noted that among these resolutions being tabled today, four departments have incurred unauthorised expenditure totalling R13 706 962. In simple terms, what we are saying is that these four departments overspent their allocated budgets in excess of R13,7 million.
It is of concern to Scopa that the Auditor-General’s reports highlight incidences of unauthorised expenditure incurred by some government departments year after year. The question that we must all answer is: Was the overexpenditure a result of poor financial planning and poor financial management, or was this expenditure a result of unforeseen circumstances? Or, if this expenditure was not incurred, would the results of not incurring such expenditure be life threatening?
These questions must be answered before Parliament can approve any unauthorised expenditure, especially in the light of the fact that section 81 of the Public Finance Management Act states that an accounting officer for a department or a constitutional institution commits an act of financial misconduct if that accounting officer wilfully or negligently makes or permits an unauthorised expenditure, an irregular expenditure or a fruitless and wasteful expenditure.
Section 34 of the Public Finance Management Act is very clear that unauthorised expenditure does not automatically become a charge against a Revenue Fund unless when such expenditure is approved by Parliament.
An HON MEMBER: Why?
Mr V G SMITH: I’ll tell you why in a few minutes. Finally, section 38(2) states that an accounting officer may not commit a department, trading entity or a constitutional institution to any liability for which money has not been appropriated. In the event of Parliament not approving the unauthorised expenditure incurred, this amount becomes a charge against the funds allocated for the next future financial years under the relevant department’s budget.
This in essence means that departments will have less to spend in future years and, as a result, service delivery will be hampered and the ultimate goal of pushing back the frontiers of poverty may just not be attained.
After consulting with National Treasury and the Auditor-General, Scopa established that the reasons for unauthorised expenditure were as a result of noncompliance with procurement procedures totalling R4,5 million, noncompliance with National Treasury regulations totalling R653 000 and overspending totalling R8,5 million.
In considering its resolution to recommend approval for the unauthorised amounts, Scopa was satisfied that the services for expenditure were received to the satisfaction of the department, that no individual benefited from such expenditure and that control measures are now in place to prevent this from reoccurring. Today we, as Scopa, are recommending to Parliament that these amounts of unauthorised expenditure be approved and charged against the Revenue Fund.
Future requests by the departments that Scopa and Parliament consider unauthorised expenditure and finally approve such will be subjected to thorough evaluation before any approval is granted.
The reality of our oversight role as Scopa is that we only get to find out about these deviations from approved budgets by departments, 12 to 18 months after the fact. By this time, corrective action might not be as useful as it might have been had corrective action or explanations been sought much earlier in the oversight cycle.
For the financial oversight cycle to be more comprehensive and meaningful, portfolio committees must be encouraged to review actual spending versus budgets of departments on a more regular basis during the course of the current financial period.
Finally, we want to take this opportunity of welcoming the chairperson of Scopa and assure the hon Godi that the ANC, together with him, will ensure that oversight and accountability grows from strength to strength. Thank you very much, Chairperson. [Applause.]
Debate concluded.
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move:
That the Reports be adopted.
Motion agreed to.
Reports accordingly adopted.
The House adjourned at 16:11. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 4 NOVEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Introduction of Bill
(1) The Minister of Minerals and Energy
i) Diamonds Second Amendment Bill [B 39 – 2005] (National
Assembly – sec 76) [Explanatory summary of Bill and prior
notice of its introduction published in Government Gazette No
27929 of 19 August 2005.]
Introduction and referral to the Portfolio Committee on Minerals
and Energy of the National Assembly, as well as referral to the
Joint Tagging Mechanism (JTM) for classification in terms of Joint
Rule 160, on 7 November 2005.
In terms of Joint Rule 154 written views on the classification of
the Bill may be submitted to the Joint Tagging Mechanism (JTM)
within three parliamentary working days.
National Assembly
The Speaker
- Designation of Acting Speaker and Acting Deputy Speaker
As both the Deputy Speaker and I will be absent from Parliament from 7
to 9 November 2005, in accordance with the resolution adopted by the
House on 24 June 2004 I have designated –
1. House Chairperson Mr G Q M Doidge to act as Speaker, and
2. House Chairperson Mr K O Bapela to act as Deputy Speaker for this
period.
TABLINGS
National Assembly and National Council of Provinces
-
The Minister of Trade and Industry
a) Special Report from the South African Women Entrepreneurs – A burgeoning force in our economy for 2005.
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Finance on the Auditing Profession Bill [B 31-2005] (National Assembly – sec 75), dated 4 November 2005:
The Portfolio Committee on Finance, having considered the subject of the Auditing Profession Bill [B 31-2005] (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 31A-2005].
MONDAY, 7 NOVEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Introduction of Bill
(1) The Minister of Defence
(i) Prohibition of Mercenary Activities and Prohibition and
Regulation of Certain Activities in Areas of Armed Conflict Bill
[B 42 – 2005] (National Assembly – sec 75) [Explanatory summary
of Bill and prior notice of its introduction published in
Government Gazette No 28163 of 24 October 2005.]
Introduction and referral to the Portfolio Committee on Defence of
the National Assembly, as well as referral to the Joint Tagging
Mechanism (JTM) for classification in terms of Joint Rule 160, on
8 November 2005.
In terms of Joint Rule 154 written views on the classification of
the Bill may be submitted to the Joint Tagging Mechanism (JTM)
within three parliamentary working days.
- Draft Bills submitted in terms of Joint Rule 159
(1) Revenue Laws Second Amendment Bill, 2005, submitted by the
Minister of Finance on 7 November 2005. Referred to the Portfolio
Committee on Finance and the Select Committee on Finance.
2) Prohibition of Mercenary Activities and Prohibition and Regulation
of Certain Activities in Areas of Armed Conflict Bill, 2005,
submitted by the Minister of Finance on 7 November 2005. Referred
to the Portfolio Committee on Defence and the Select Committee on
Security and Constitutional Affairs.
- Membership of Committees
(1) The following changes have been made to the membership of Joint
Committees viz:
Budget:
Asiya, Mr S E (Alt)
Chikunga, Mr L S
Cwele, Mr S C (Alt)
Dithebe, Mr S L
Fubbs, Ms J L (Alt)
Gumede, Mr D M
Mabe, Ms L L
Mashigo, Ms R J
Mahomed, Ms F
Mkongi, Mr B M
Mnguni, Mr B A (Alt)
Schippers, Mr J
Wang, Mr Y
Constitutional Review Committee:
Beukman, Mr F
Burgess, Mr C V
Chohan-Khota, Ms F I
Gaum, Mr A
Jeffery, Mr J H
Masutha, Adv T M
Ndzanga, Mr R A
Njobe, Ms M A A
Schoeman, Dr E A
Defence:
Booi, Mr M S
Cele, Mr M A
Diale, Mr L N
Johnson, Ms C B
Koornhof, Dr G W
Madasa, Adv Z L (Alt)
Matsemela, Ms M L
Maziya, Mr A M (Alt)
Monareng, Mr O E
Montsitsi, Mr S D
Mngomezulu, Mr G P
Nxumalo, Ms M D
Ntuli, Mr S B
Phungula, Mr J P
Sotyu, Ms M M (Alt)
Schippers Mr J
Tolo, Bishop L J
Van Wyk, Ms A
Joint Monitoring Committee on Improvement of Qualilty of Life and
Status of Women:
Direko, Ms I W (Alt)
Mabena, Mr D C
Makasi, Ms X C
Maserumule, Mr F T (Alt)
Meruti, Ms M V
Morobi, Ms D M (Alt)
Morutoa, Ms M R
Ngele, Ms N J
Ntuli, Ms B M
Ngcobo, Ms B T
Rwexana, Ms S P
Tshwete, Ms P
Joint Monitoring Committee on Improvement of Quality of Life and
Status of Children, Youth and Disabled People:
Bhengu, Ms P
Chalmers, Ms J
Gcwabaza, Mr N E
Kondlo, Ms N C
Madella, Mr A F (Alt)
Mohlaloga, Mr M R (Alt)
Molefe, Mr C T
Moss, Mr M I
Newhoudt-Drunchen, Ms W S
Nzimande, Mr L P M
Reid, Mr L R R
National Assembly
- Membership of Committees
(1) The following changes have been made to the membership of
Standing Committees viz:
Private Members’ Legislative Proposals and Special Petitions:
Ainslie, Mr A R
Carrim, Mr Y I
Gerber, Mr P A
Kondlo, Ms N C
Magwanishe, Mr G B
Maine, Ms M S
Mentor, Ms M P
Mshudulu, Mr S A
Tshwete, Ms P
Public Accounts:
Bonhomme, Mr T J
Gerber, Mr P A
Gumede, Mr D M
Koornhof, Dr G W (Alt)
Mashiane, Ms L M
Maluleke, Mr D K
Mofokeng, Mr T R
Ndou, Mr R S
Smith, Mr V G
Tobias, Ms T V (Alt)
(2) The following changes have been made to the membership of
Portfolio Committees, viz:
Agriculture and Land Affairs:
Abraham, Mr S
Baloyi, Mr M R (Alt)
Blose, Ms H M (Alt)
Dlali, Mr D M
Holomisa, Adv S P
Kotwal, Mr Z (Alt)
Ntuli, Ms B M
Nhlengethwa, Ms D G
Kompe-Ngwenya, Ms M L
Nkuna, Ms C
Ngaleka, Ms E
Ramphele, Mr T D H
Radebe, Mr B A (Alt)
Thomson, Ms B
Arts and Culture:
Gololo, Mr C L (Alt)
Jacobus, Ms L
Lekgetho, Mr G
Magubane, Mr N E
Maake, Mr J J (Alt)
Matlala, Mr M H
Maluleke, Mr H P
Mbombo, Ms N D
Nogumla, Mr R Z (Alt)
Ramodibe, Ms D M
Sonto, Mr M R
Zulu, Mr B Z
Communications:
Kholwane, Mr S E
Khumalo, Mr K M
Khumalo, Mr M S
Lekgoro, Mr M K
Mohlaloga, Mr M R
Morutoa, Ms M R
Oliphant, Mr G G
Pieterse, Mr R
Yengeni, Ms L E
Correctional Services:
Bloem, Mr D V
Cele, Mr M A
Fihla, Mr N B
Makgate, Ms M W
Mahote, Mr S
Ngwenya, Ms W
Phala, Mr M J
Tolo, Rev L J
Xolo, Mr E T
Defence:
Booi, Mr M S
Diale, Mr L N
Fihla, Mr N B (Alt)
Johnson, Ms C B (Alt)
Koornhof, Dr G W
Monareng, Mr O E
Moatshe, Mr M S (Alt)
Mngomezulu, Mr G P
Ntuli, Mr S B
Phungula, Mr J P
Schippers, Mr J
Tobias, Ms T V
Van Wyk, Ms A
Education:
Gaum, Mr A H
Gcwabaza, Mr N E
Mayatula, Prof S M
Mashangoana, Mr P R
Matsomela, Ms M J J
Maloney, Ms L (Alt)
Mentor, Ms M P
Montsitsi, Mr S D (Alt)
Mosala, Mr B G
Mthembu, Mr B
Ntuli, Mr R S
Vadi, Mr I
Van den Heever, Mr R P Z (Alt)
Environmental Afairs and Tourism:
Bonhomme, Mr T J
Cachalia, Mr I M
Chalmers, Ms J
Combrinck, Mr J J
Kalako, Mr M U
Khoarai, Mr L P
Mokoena, Mr A D
Ndzanga, Ms R A
Ntuli, Ms M M
Olifant, Mr D A A
Rasmeni, Mr S M
Sekgobela, Ms P S (Alt)
Zita, Mr L
Finance:
Asiya, Ms S E
Bhamjee, Mr Y S
Fubbs, Ms J L
Gabela, Mr L S
Hogan, Ms B A
Johnson, Mr M
Malahlela, Mr M J (Alt)
Mnguni, Mr B A
Moloto, Mr K A
Mokoto, Ms N R
Nene, Mr N M
Saloojee, Mr E (Alt)
Foreign Affairs: SubCommittee on International Affairs:
Gxowa, Ms N B
Hajaig, Ms F
Kalako, Mr M U
Madasa, Adv Mr Z L
Maluleke, Mr D K
Magau, Ms K R
Nkuna, Ms C (Alt)
Njobe, Ms M AA
Ramgobin, Mr M
Sefularo, Mr M (Alt)
Sibande, Mr M P (Alt)
Sithole, Mr D J
SubCommittee on African Union:
Hajaig, Ms F
Khoarai, Mr L P (Alt)
Khumalo, Rev M S
Luthuli, Dr A N
Motubatse-Hounkpatin, Ms S D
Mnyandu, Mr B J (Alt)
Ntuli, Mr R S (Alt)
Ramgobin, Mr M
Rwexana, Ms S P
Sithole, Mr D J
Siboza, Mr S
Health:
Luthuli, Dr A N (Alt)
Madella, Mr A F
Mathibela, Ms N F
Mashile, Mr B L
Matsemela, Ms M L
Malumise, Ms M M
Manana, Ms M N S
Mashigo, Ms R J
Ngculu, Mr L V J
Tshwete, Ms P
Home Affairs:
Beukman, Mr F
Chauke, Mr H P
Gxowa, Ms N B (Alt)
Huang, Mr S (Alt)
Mabuyakhulu, Mr D V
Maunye, Ms M M
Mathibela, Ms N F (Alt)
Morwamoche, Mr K W
Ntombela, Ms S H
Sibande, Mr M P
Sikakane, Mr M R
Skhosana, Ms W M
Vundisa, Mr S S
Housing:
Chikunga, Ms L S
Dambuza, Mr B N
Dodovu, Mr T S
Kota, Ms Z A
Mabena, Mr D C
Mkhize, Mr Z S
Modisenyane, Mr L J
Mosala, Mr B G (Alt)
Ngele, Ms N J
Ramakaba-Lesia, Ms M M
Scheemann, Mr G D
Sonto, Mr M R (Alt)
Justice and Constitutional Development:
Chohan-Khota, Ms F I
Jeffery, Mr J H
Johnson, Ms C B
Landers, Mr L T
Malahlela, Mr M J
Maloyi, Mr P D N
Mahlawe, Ms N M
Magwanishe, Mr G B
Meruti, Ms M V
Sibanyoni, Mr J B
Solomon, Mr G
Labour:
Anthony, Mr T G
Kasienyane, Ms O R
Lekgetho, Mr G (Alt)
Lishivha, Ms T E
Maduma, Mr L D
Moss, Ms L N
Mogale, Mr O M (Alt)
Mkongi, Mr B M
Mtshali, Mr E
Mzondeki, Mr M J G
Ngcengwane, Ms N D
Siboza, Mr S
Minerals and Energy:
Blose, Ms H M
Combrinck, Mr J J (Alt)
Kekana, Mr C D
Komphela, Ms B M (Alt)
Louw, Mr S K
Matlala, Mr M H
Mathibela, Mr N F
Mohamed, Prof I J
Molefe, Mr C T
Mofokeng, Mr T R (Alt)
Mthethwa, Mr E N
Ngaleka, Ms E (Alt)
Tinto, Ms B
Provincial and Local Government:
Bhengu, Ms P
Gumede, Ms M M
Holomisa, Adv S P (Alt)
Lekgoro, Mr M M S
Magau, Ms K R (Alt)
Mashiane, Ms L M
Mogase, Mr I D
Mshudulu, Mr S A
Nonkonyana, Mr M
Phadagi, Mr M G
Solo, Mr B M
Tsenoli, Mr S L
Public Enterprises:
Carrim, Mr Y I
Gololo, Mr C L
Hendrickse, Mr P A C
Kondlo, Ms N C
Kotwal, Mr Z
Louw, Mr T J
Mokoena, Mr A D
Mokoto, Ms N R
Nogumla, Mr R Z (Alt)
Ngcengwane, Ms N D
Pieterse, Mr R D (Alt)
Wang, Mr Y
Yengeni, Ms L E (Alt)
Public Service and Administration:
Baloyi, Mr M R
Gomomo, Mr P J
Gcwabaza, Mr N E
Greyling, Mr C H F
Khumalo, Mr K K
Mathebe , Mr P M
Mashangoane, Ms P R (Alt)
Maloney, Ms L
Matsomela, Mr M J J (Alt)
Mgabadeli, Ms H C
Mthembu, Mr B (Alt)
Mzondeki, Mr M J G (Alt)
Sikakane, Mr M R
Public Works:
Bhengu, Mr F
Gogotya, Mr N J
Huang, Mr S
Magubane, Mr N E
Maduma, Mr L D
Maluleke, Mr H P (Alt
Molefe, Mr CT
Nwamitwa-Shilubana, Ms T L P
Ntuli, Ms M M (Alt)
Radebe, Mr B A
Ramotsamai, Ms C P M
Sekgobela, Ms P S
Safety and Security
Booi, Mr M S (Alt)
Diale, Mr L N (Alt)
Kholwane, Mr S E
Mahote, Mr S
Maserumule, Mr F T
Maziya, Mr A M
Maunye, Ms M M (Alt)
Moatshe, Mr M S
Monareng, Mr O E (Alt)
Nogumla, Mr R Z
Ntuli, Mr S B (Alt)
Sotyu, Ms M M
Sosibo, Ms J E
Van Wyk, Ms A
Science and Technology:
Ainslie, Mr A R
Dithebe, Mr S L
Mahomed, Ms F
Mohamed, Prof I J
Mnyandu, Mr B J
Ngcobo, Ms B T
Ngcobo, Mr E N N
Nkem-Abonta, Dr E
Nxumalo, Mr S N
Van den Heever, Mr R P Z
Social Development:
Bogopane-Zulu, Ms H I
Direko, Ms I W
Gumede, Ms M M
Ludwabe, Ms C I
Masutha, Adv T M
Makasi, Ms X C
Morwamoche, Mr K W (Alt)
Mkongi, Mr B M (Alt)
Nzimande, Mr L P M
Sibanyoni, Mr J B
Solo, Mr B M (Alt)
Tshivhase, Ms T J
Sport and Recreation:
Dikgacwi, Mr D M
Dodovu, Mr T S
Frolick, Mr C T
Komphela, Mr B M
Louw, Mr T J
Mathebe, Mr P M
Mlangeni, Mr A
Morobi, Ms D M
Ramakaba-Lesia, Ms M M (Alt)
Reid, Mr L R D
Saloojee, Mr E
Trade and Industry:
Dlali, Mr D M (Alt)
Khunou, Ms N P (Alt)
Martins, Mr B A D
Maake, Mr J J
Maja, Mr S J
Mahomed, Ms F
Nonkonyane, Mr M
Njikelana, Mr S J
Ntuli, Ms M B
Nkem-Abonta, Dr E
Ramodibe, Ms D M
Rasmeni, Mr S M (Alt)
Sefularo, Mr M
Turok, Prof B
Transport:
Cronin, Mr J P
Khunou, Ms N P
Mashile, Mr B L
Mogale, Mr O M
Moss, Ms L N (Alt)
Moss, Mr M I
Mbombo, Ms N D
Mshudulu, Mr S A
Ngwenya, Ms W (Alt)
Nxumalo, Ms M D
Ntombela, Ms S H
Schneemann, Mr G D (Alt)
Thomson, Ms B
Water Affairs and Forestry:
Asmal, Mr A K
Arendse, Mr J D
Bhengu, Ms P (Alt)
Kati, Mr Z J
Kompe-Ngwenya, Ms M L (Alt)
Lishivha, Ms T E
Mabuyakhulu, Mr D V
Maine, Ms M S
Manana, Ms M N S
Mogase, Mr I D
Moonsamy, Mr K
Ramphele, Mr T D H
September, Ms C C
Schoeman, Dr E A (Alt)
(3) The following changes have been made to the membership of Ad
Hoc Committees viz:
Annual Report Auditor-General:
Asiya, Mr S E
Fubbs, Ms J L
Gabela, Mr L S
Gumede, Mr D M
Hogan, Ms B A
Johnson, Mr M
Smith, Mr V G
Zita, Mr L
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Communications on the recommendation for appointment of members on the Board of the Media Development and Diversity Agency, dated 04 November 2005:
The Portfolio Committee on Communications, having considered and examined the matter of the appointment of two members to the Board of the Media Development and Diversity Agency, referred to it in terms of section 4(1) of the Media and Diversity Agency Act, (No 14 of 2002), reports as follows:
The Committee invited the public to nominate persons for consideration and recommendation to the President for appointment on the Board by means of advertisements in the print media.
The following candidates were interviewed in open meetings in Parliament on 1 November 2005, namely
Baatjies, Ms JC; Goba, Ms TS; Jara, Mr MK; Mkhize, Mr GM; Mukhuba, Mr B; Moerdyk, Mr CJ; Sitaram, Ms AL
The Committee accordingly recommends that the House, in accordance with section 4(1)(b) of the Act, make a recommendation to the President that the following persons be appointed as board members:
Mr MK Jara, Mr CJ Moerdyk
Report to be considered.
TUESDAY, 8 NOVEMBER 2005
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Classification of Bills by Joint Tagging Mechanism
(1) The Joint Tagging Mechanism (JTM) on 8 November 2005 in terms of
Joint Rule 160(4), classified the following Bills as section 76
Bills:
(i) Foodstuffs, Cosmetics and Disinfectants Amendment Bill [B
35 – 2005] (National Assembly – sec 76)
(ii) Diamonds Second Amendment Bill [B 39 – 2005] (National
Assembly – sec 76).
(2) The Joint Tagging Mechanism (JTM) on 7 November 2005 in terms of
Joint Rule 160(6), classified the following Bill as a section 77
Bill (money Bill):
(i) Adjustments Appropriation Bill [B 37 – 2005] (National
Assembly – sec 77).
- Introduction of Bills
(1) The Minister of Finance
i) Revenue Laws Amendment Bill [B 40 – 2005] (National Assembly
– sec 77)
ii) Revenue Laws Second Amendment Bill [B 41 – 2005] (National
Assembly – sec 75) [Explanatory summary of Bill and prior
notice of its introduction published in Government Gazette No
28212 of 7 November 2005.]
Introduction and referral to the Portfolio Committee on Finance of
the National Assembly, as well as referral to the Joint Tagging
Mechanism (JTM) for classification in terms of Joint Rule 160, on
8 November 2005.
In terms of Joint Rule 154 written views on the classification of
the Bill may be submitted to the Joint Tagging Mechanism (JTM)
within three parliamentary working days.
COMMITTEE REPORTS
National Assembly
-
Report of the Portfolio Committee on Science and Technology on Accession of South Africa’s Membership of the International Centre for Scientific and Technical Information (ICSTI), dated 8 November 2005:
The Portfolio Committee on Science and Technology, having considered the request for approval by Parliament of the Accession of South Africa’s Membership of the International Centre for Scientific and Technical Information (ICSTI), referred to it, recommends that the House, in terms of section 231(2) of the Constitution, approve the said Accession.
Request to be considered.
-
Report of the Portfolio Committee on Science and Technology on the Annual Reports and Financial Statements 2004 / 2005 of the Department of Science and Technology and Entities, dated 8 November 2005:
The Portfolio Committee on Science and Technology, having considered and examined the Annual Reports of the Department of Science and Technology (DST), the National Research Foundation (NRF), the Africa Institute of South Africa (AISA), GODISA, the South African Council for Natural Scientific Professions (SACNASP), TSHUMISANO, the Academy of Science of South Africa (ASSAF), the Council for Scientific and Industrial Research (CSIR), the Human Science Research Council (HSRC) and the National Advisory Council of Innovation (NACI) accountable to it, reports that it has concluded its deliberations thereon.
-
Report of the Portfolio Committee on Finance on the Special Pensions Amendment Bill [B 28 -2005] (National Assembly – sec 75), dated 8 November 2005:
The Portfolio Committee on Finance, having considered the subject of the Special Pensions Amendment Bill B28 – 2005, referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with amendments [B 28A-2005].
The Committee recognises that there are potential beneficiaries who have met all, except the age criteria. Given the original purpose of the Special Pensions Act, 1996 (Act No. 69 of 1996) to address people who have rendered service in the establishment of a non- racial democratic constitutional order, the Committee has resolved that the Executive should urgently develop other measures to address the plight of those excluded purely on the basis of age, and that the Executive should report to the House within six months on progress made in this regard.