TUESDAY, 12 FEBRUARY 2008
                                ____

                PROCEEDINGS OF THE NATIONAL ASSEMBLY
                                ____

The House met at 12:00.

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

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                    APPOINTMENT OF NEW CHIEF WHIP

                           (Announcement)

The SPEAKER: Order, hon members! I wish to take this opportunity to formally announce that Mr E N Mthethwa has been appointed Chief Whip of the Majority Party with effect from 24 January 2008. [Applause.]

                          NOTICE OF MOTION

Mr L W GREYLING: Madam Speaker, I hereby give notice of the following motion: That the House, noting President Mbeki’s response to a question from Ms P de Lille concerning party funding –

 1) establishes an ad hoc committee to consider and report on the nature
    of party funding in South Africa; and

 2) recommends measures for the regulation of such   funding, if deemed
    necessary.

                          HOURS OF SITTING

                         (Draft Resolution)

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

That, notwithstanding the hours of sitting of the House as provided for in Rule 23(2), the House, today, Tuesday, 12 February 2008, sits at 12:00 in order to pay tribute to the late hon P J Gomomo.

I thank you.

The SPEAKER: I’m quite sure there are no objections; that’s why we are all here. Agreed to. REVIVAL OF ITEMS THAT LAPSED AT THE END OF THE 2007 ANNUAL SESSION

                         (Draft Resolution)

The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move the draft resolution printed in my name on the Order Paper as follows:

That the following items, which were on the Order Paper and which lapsed at the end of the 2007 annual session, be revived for consideration by the National Assembly:

 1) Second Reading debate – National Environment Laws Amendment Bill
    [B35 – 2007] (National Assembly – sec 76) – (Minister of
    Environmental Affairs and Tourism).


 2) Consideration of Report of Ad Hoc Committee on the Review of Chapter
    9 and Associated Institutions (Announcements, Tablings and Committee
    Reports, 21 August 2007, p 1590).

Agreed to.

                        MOTION OF CONDOLENCE

                      (The late Mr P J Gomomo)

The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move the draft resolution printed in my name on the Order Paper, as follows:

That the House –


  1) notes with profound sadness that on Tuesday, 22 January 2008, the
     hon Phumzile John Gomomo passed away;


  2) recognises that the hon Gomomo was a great South African and
     working-class leader who devoted his life to the service of the
     people and the country and that the mighty workers’ movement we
     see today would never have been built without the commitment and
     hard work of people like him;


  3) recalls that in the 1980s, together with other comrades in the
     motor industry, he led a R2 an hour living wage campaign that saw
     the total shutdown of a Uitenhage plant and also linked with the
     works councils at VW Germany which contact resulted in the
     development of contacts with the German trade union IG Metall;


  4) further recalls that throughout his life, the hon John Gomomo was
     an internationalist and had represented Numsa on major committees
     at the International Metalworkers Federation and in 1989 he was
     elected as Cosatu’s second Deputy President and as President in
     1991 and that he led the workers of South Africa through difficult
     times and was involved in the drawing up of the RDP, the new
     Constitution and also spearheaded the 1995 campaign for new labour
     laws;


  5) further recalls that together with other comrades, the hon Gomomo
     worked to build the civic movements which played a key role in the
     fight to end apartheid – notably the powerful Uitenhage Black
     Civic Organisation - and that many of the comrades he fought with
     were assassinated by the security police while others were
     detained and tortured;


  6) believes that the hon John Gomomo discharged his responsibilities
     with dedication, discipline, diligence and humility and that his
     life epitomises heroism and commitment to the cause of freedom and
     social justice; and


  7) conveys its condolences to the Gomomo family, the African National
     Congress, the South African Communist Party and the Congress of
     South African Trade Unions.

I thank you. [Applause.]

The MINISTER OF SPORT AND RECREATION: Speaker, hon colleagues, our late comrade, Phumzile John Gomomo, was born on a farm near Adelaide in 1946 at a place called Didima. His parents were farm labourers and, as such, young Phumzile was destined to become either a farm labourer himself or to join other young people, as was the tradition in those days, to line up for recruitment to be a mineworker.

The farm school went up to Standard 2. Legislation made sure that children born and brought up on the farms were invariably destined to be labourers themselves, or to be mineworkers, to make sure that cheap labour was readily available on the mines. Opportunities for social and economic development were few for farm children and, in fact, as low as the ceiling of a Bantu education classroom.

To escape this spiral of providing cheap labour, the young Phumzile was soon to migrate with his family to Uitenhage. There he got what was a relatively better type of education. He was also exposed to a bigger world and a different experience – an experience of a hard life and survival skills. It was in Uitenhage that his political life actually developed.

Phumzile worked at a Volkswagen car manufacturing plant at the time when the trade union movement was reawakening in South Africa. The events in Durban in 1973 gave birth to a number of trade unions, such as Macwusa, Naawu and Saawu in the Eastern Cape. Phumzile became a shop steward of Naawu, which is now Numsa, and rose to the ranks of local and national leadership of that trade union. Together with other leaders of the then Fosatu, leaders such as our Minister, Alec Erwin, Comrade Sisa Njikelana, MP, the late Comrade Thozamile Gqwetha and many others, Phumzile became pivotal in the negotiations that led to the birth of the current Cosatu in

1. He became, as the Chief Whip said, the second President of Cosatu, after Comrade Elijah Barayi.

As an activist of the 1970s and the 1980s, Comrade Gomomo had to wrestle with a barrage of contending ideologies. He had to contend with the Black Consciousness Movement, he had to contend with the Unity Movement and he had to contend with our own ideology of the ANC and its allies. He developed his own political understanding and understood the correctness of aligning himself with the ANC and the SACP. This guided his position on the role of trade unions and the link between that role and the broader struggle for national liberation.

As part of the leadership of the UDF under the regional leadership of comrades such as hon Henry Fazi, an MP now, the late Comrade Edgar Ngoyyi, the late Matthew Goniwe and young comrades, scholars at the time, such as Lulu Johnson, Comrade Gomomo played a pivotal role in mobilising, organising and leading our people to deliver the final blows to apartheid. The consumer boycotts of 1985 after the Langa massacre are a case in point.

It was only rational that this outstanding leader of our people became a member of this august House. He represented our people with humility and dignity but with unyielding resolve to attain total freedom for our country and its people.

He leaves behind a South Africa which is remarkably different from the one he grew up in. Our government has made huge strides in passing legislation that restores our people’s dignity, laws that protect our people’s rights and make sure there are better opportunities and services even for farm labourers and mineworkers. But he knew that was not all we had been striving for. Not all our objectives for the South Africa of our dreams have been attained.

Phumzile was a total person. He was a father, a husband, a relative, a sangoma and a grandfather, but, above all, he was a revolutionary. We will miss his company and contribution.

AmaNzotho namaMpondo mawalale ngenxeba. Akuhlanga Lungehliyo. [May the Nzothos and Pondos take comfort in God’s love. What has happened was God’s will.]

Mnr K J MINNIE: Speaker, agb lede, op 20 Junie 2007 het John Gomomo die laaste keer in hierdie Huis opgetree. Dit was tydens die debat oor die Staatsdienswysigingswet. Gister, op 11 Februarie 2008, het die President hierdie wet onderteken, en vandag, op 12 Februarie 2008, is dit gepubliseer in die Aankondigings, Tertafelleggings en Komiteeverslae van hierdie Parlement. (Translation of Afrikaans paragraph follows.)

[Mr K J MINNIE: Speaker, hon members, the last time John Gomomo appeared in this House was on 20 June 2007. It was during the debate on the Public Service Amendment Act. Yesterday, 11 February 2008, the President signed the Act and today, 12 February 2008, it was published in the Announcements, Tablings and Committee Reports of this Parliament.]

Speaker, Mr John Gomomo was a pioneer and a great leader of the South African workers who devoted his entire life to improving the working conditions for workers in his union, movement and the country in general. John Gomomo was, in the 70s, the chairperson of the Volkswagen liaison committee. This was a time when the workers’ movement faced enormous obstacles as the law banned the formation of trade unions across race. He became the president of the National Automobile and Allied Workers Union.

To demonstrate his selfless life, John Gomomo was an astute negotiator, which saw him elected as the first chairperson of the Eastern Cape region of the Federation of South African Trade Unions, Fosatu, in 1979, a union that was formed through the merger of some unions. After this, John Gomomo participated in four-year-long unity talks that led to the creation of the Congress of South African Trade Unions in December 1985. In 1989, he was elected second Deputy President of Cosatu and ultimately became President of Cosatu in 1991.

I have known John Gomomo as the chairperson of the Portfolio Committee on the Public Service and Administration on which I served with him for the past four years. On a personal level, Mr Gomomo was a warm person to talk with. He was always humble and respectful. Although one could, at times, see the strain his body was taking due to his illness, he always demonstrated that life should go on.

On a working and political level, as we are in different political parties in Parliament, John would always demonstrate an accommodating outlook with the belief that people are, by nature, not homogenous in their thinking and beliefs. He did not take things personally. We could disagree but we could still laugh and talk. Perhaps his inherent skills as a politician, a devoted unionist and negotiator helped him to be real and humane. This is what one will miss due to the departure of John Gomomo.

We should take a leaf out of the book of gentle giants like John Gomomo. We should not fail to think about our people more than ourselves when we deal with national work such as legislation, policy and other social issues. We as the DA say: Fare you well, John Gomomo. We will miss you, maNzotho. I thank you. [Applause.]

Dr U ROOPNARAIN: Madam Deputy Speaker, hon members, I stand before you …

The SPEAKER: I have since become the Speaker! [Interjections.]

Dr U ROOPNARAIN: Sorry! Madam Speaker, hon members, I stand before you today on behalf of my party, the IFP, to pay tribute to this great human being. I believe that, in history, each individual is able to make a unique contribution. Some contributions stand out as monuments and others as a legacy. The life and contributions of the late John Gomomo will be both.

I met John Gomomo in 2001 when I joined the portfolio committee. I was new to the committee yet immediately I felt part of the team. I think every member who was part of the Public Service portfolio committee, across partisan lines, can attest to this. John Gomomo dedicated his life to the workers’ movement. He helped to create a better life for people and indeed his departure from our midst will be a very difficult void to fill.

In paying tribute to this phenomenal human being, I would describe John in the following way: He was a man among men – never judgmental and very composed. John exuded the very essence compassion, duty, courage, and political integrity. He was a voice for the thousands of voiceless and powerless workers, a standard-bearer and a fearless champion for the rights of the oppressed. He worked tirelessly to create a more humane working environment.

He pioneered the establishment of a number of civic organisations such as the Uitenhage Black Civic Organisation. At the height of social unrest, he led a number of mass campaigns. In 1991, he was elected as Cosatu’s president and spearheaded a number of campaigns including the introduction of the Labour Relations Act and the Employment Equity Act.

John fully embraced the principles of the ANC and the strategic moment that political liberation brought. He immersed himself in being a parliamentarian but had the issues of employment and the Public Service at heart. He fought to improve the material conditions of workers and public servants, hence he became a colossal symbol of justice and fairness. This sense of fairness and impartiality also seeped into the portfolio committee. Many hon members will attest to this. John always looked in the direction of the opposition and solicited our opinions and thoughts. He knew what the people were saying and he knew what serving the people meant.

Let me share something with you about John: John was an eclectic thinker. He spent many years on a spiritual journey and often embraced other faiths. Yes, he was a sangoma, but John also wore sacred Hindu beads around his wrist. He burnt incense sticks at his home and, more amazingly, he quoted Hindu scriptures and mantras in Sanskrit. He did this with such eloquence. I stood in awe and admired this individual. It was amazing.

Another incident also comes to mind. John suffered from diabetes. Despite this, he gave in at times to the sugar cravings. I remember accompanying him to the anti-corruption forum last year. During the coffee break, he was seated in front of a plate of pastries and other sugary goods and began eating them. I walked towards his table all wide-eyed and looked at him in dismay. Instead he smiled at me, winked and said he was checking the freshness of the baked goods. He did this for two days!

Although we feel the sadness, John would want us to continue protecting the rights and interests of people, especially the workers. I am grateful that I had the chance of interacting with him. I am also grateful to have served under his leadership. So, today I am filled with both grief and pride – grief that his presence is no more, but pride for his epic contribution.

Though he may not be physically with us, we can hear his voice and his words that, in their profound simplicity, will continue to ring irrespective of which parties we belong to or where we reside or what language or religion we follow. We are reminded of his words. He often used these words when he ended portfolio committee meetings: “We are the last country on the continent to attain liberation. We need to be a beacon of light to the rest of Africa.” This should be our resolve.

To the members of his family: We know you feel this pain even more deeply. We cannot grasp the depth of your grief. May you be comforted. To the ANC, his colleagues and his comrades: You have lost a giant. May God, the Prince of Peace, comfort you in this time. Farewell, John. May your soul rest in peace. Thank you. [Applause.]

Mr G T MADIKIZA: Madam Speaker, hon members, the UDM joins the previous speakers in extending heartfelt condolences to the Gomomo family and friends and, not least, to his political party, the ANC, and Cosatu. It is with a deep sense of sorrow that we extend these condolences for a man of hon Mr Gomomo’s stature at this moment in time.

Some of us may not have known hon Gomomo on a personal level but one cannot help feeling like one knew him personally because of his contributions, ranging from workers’ rights to the basic principles of democracy and human rights which he stood for and embodied in himself for the best part of his life.

May his family find solace in the fact that their loss is not theirs only but also that of the nation at large. We salute the role that he played and bid a sad farewell to another great son of the Eastern Cape. Aluhlanga lungehlanga, maNzotho kunye namaMpondo. [What has happened was God’s will, the Nzothos and the Mpondos.] May his soul rest in peace. I thank you. [Applause.]

Mrs P DE LILLE: Madam Speaker, on behalf of the ID, I extend my condolences to John’s family - our late comrade - the ANC and all his friends.

I remember John was there as a trade unionist when we had to react to the Frame Group strikes in Durban in the 70s; when we had to interact on the Wiehahn Commission recommendations; and also when we had unity talks. He played a major role in trying to bring unity amongst workers.

I recall one day when we were travelling back from an International Confederation of Trade Unions conference in Paris and we had bought a book that was banned in South Africa. We had to take turns on the plane to read the book because we were not allowed to bring it in the next day. When we arrived, the customs officials called us and I asked: “John, where is the book?” He said: “Comrade, I am taking it with me.” That is the kind of bravery that we have experienced through working with him as a worker.

We have certainly lost a great son. To his family and to the ANC: I know it is going to be difficult to find somebody to fill his great shoes. But he certainly left a mark that we can all remember. May his soul rest in peace. Thank you. [Applause.]

Mrs C DUDLEY: Madam Deputy Speaker, Ministers, colleagues, the ACDP joins this House in conveying our sincere condolences to family and friends of hon John Gomomo. It is our sincere hope that they have an assurance and confidence that he is going to be with his Maker and pray that they will experience the peace of Jesus Christ at this time.

Hon John Gomomo is recognised for his contribution to the liberation of South Africa and the postapartheid reconstruction process. It is, however, of course, his loved ones, his family, friends and colleagues, who knew him best.

John’s wife was in fact one of the first people I met and had the pleasure of spending time with in 1999 when I came to Parliament to be sworn in - a wonderful woman whose trust is in the Lord Jesus Christ and who was committed to praying for her husband. We ask God to strengthen you and your family during this time. May God bless you and may his peace, which transcends all understanding, guard your hearts and minds in Christ Jesus. Thank you. [Applause.]

Mr B E PULE: Deputy Speaker, allow me, on behalf of the UCDP, also to pay tribute to the late hon Phumzile Gomomo. I did not know the late hon Gomomo in his prime of life but I had the privilege of knowing him as a Member of Parliament and also as a resident of Acacia Park.

During my interaction with him, our minds took excursions, generally, into life’s vicissitudes. I observed that he was a man with a sense of mission; he was also a man with a sense of destiny; and above all, I observed that he was a very humble no-nonsense man. Of course, it is this humility that is always an index of a man’s ethical integrity; hence, in him, I observed a man of integrity.

May the soul of this worthy son of Africa rest in peace! May his departure leave a legacy of dispossession of self and all that self includes. May his family, friends and relatives, his party, the ANC, and all its alliance partners and all South Africans accept the UCDP’s condolence. God’s will has been done.

Lalang ka ntho madi a tshologe. [Legofi.] [Hang in there. [Applause.]]

Ms S RAJBALLY: Madam Deputy Speaker, we regretfully return to the podium to pay our respects to the deceased hon Phumzile John Gomomo. It saddens me that we have lost such a wonderful spirit that has served our people well. We extend our condolence to the beloved family and friends of Gomomo, and pray that God may give them the strength to overcome his loss. Gomomo has been one of those souls that has left each of us marked with good memories of his friendship.

I had the pleasure to encounter and engage with Gomomo in his trade union work and he was a great personality. He had a strong drive for life and a great passion for people. We further extend our heartfelt condolences to the ANC that has lost an impeccable comrade. Our condolences are further extended to the Portfolio Committee on the Public Service and Administration. We are sure that his leadership skills will be sorely missed.

Cosatu has lost a great leader and comrade that we hope will serve as an example to the one who shall fill his shoes. We pray that Gomomo’s commitment and enthusiasm to serve the people will be enshrined in the business of the House, the ANC and Cosatu. We pray that our brother Gomomo will be welcomed into the gardens of Heaven and be met by so many of our great martyrs. I pray that he will tell them that we are all well and working hard to transform South Africa into the nation that they also dreamt of.

Brother Gomomo, as you lay down to rest, may you have the peace that you have served us well. Loving memories of you will rest in the hearts of all that have gained from encountering such a wonderful soul as you. May God bless you. Rest in peace. I thank you. [Applause.]

Mr M T LIKOTSI: Deputy Speaker, in December last year, I was shocked to learn about the hospitalisation of Comrade John Gomomo around his area of residence. It was only on 22 January 2008 when the sad news of his passing away was broken and I was shattered. I’ve known Comrade Gomomo since my early years as a high school student in the late ’70s. He was an inspiration to me and many other students of my time, especially the scholars of the liberation struggle. He was always in the thick of things and led from the front. In matters of the workers’ struggle, he stood very tall.

In 2004, I was fortunate to serve in this Parliament as a colleague of this honourable son of the soil, although in different portfolio committees. I recall a day we met near Poorthuis. I had a brief chat with Comrade Gomomo. He said to me: You are a clean-shaven comrade, just keep it that way. I thanked him and immediately remembered that he was referring to our heydays of the struggle when most of the activists were bearded and sported rough hair.

Comrade Gomomo will be missed by us, his family, friends, comrades and the alliance partners. On behalf of the APC, I wish to extend our deepest condolences and sympathy to Gomomo’s family and those who are close to him. We will always remember Comrade Gomomo because an injury to one is an injury to all.

Long live the spirit of Comrade John Gomomo, long live! [Applause.] HON MEMBERS: Long live!

Dr S E M PHEKO: Deputy Speaker, the hon Phumzile John Gomomo was indeed a great trade unionist. I appreciated him very much. He was tolerant. He admitted it when he supported issues that were in conflict with the interests of the workers. For instance, there was a time when I consistently asked him how he justified his appeal to Cosatu to vote for a political party that pursued the policy of privatisation which reduced jobs. There was also a high rate of retrenchment of teachers at the time. He admitted that this was a paradox. He took my inquiry in the right democratic spirit.

The PAC is saddened by his premature death but appreciates that he did so much for the trade union movement in our country in a short space of time. He, indeed, lived his life qualitatively.

We express and extend our deep condolences to his family. Many trade union leaders are people who are often moved by the poverty and exploitation of workers; the hon P J Gomomo was one of them. His life and role evoke memories of giant trade union leaders such as Clement Kadalie - one of the first dynamic trade union leaders in this country.

Death remains a mystery but Job - that African who lived in the ancient geographic area of the Kushites, many years ago – asked: “Is there life after death?” He answered: “For I know that my redeemer liveth … and though after my skin worms may destroy this body, yet in my flesh shall I see God.” May it be so with the hon P J Gomomo. [Applause.]

Mr P J NEFOLOVHODWE: Madam Deputy Speaker, allow me to join the ANC, the SACP, Cosatu and members of this House in expressing our condolences, as Azapo, to the family and friends of Comrade Gomomo. It is indeed in our tradition and befitting, as people who come from the liberation movement, to celebrate the life and work of such an important comrade. As Azapo, we remember him as a trade unionist who inspired and stood by the workers as a leader in the trade union movement.

We also wish to acknowledge the enormous contribution that Comrade Gomomo made in the liberation struggle as a man who rose from an ordinary worker to become a leader of one of the most important workers’ federations in Africa and in the world. To us, his departure creates a gap that would be difficult to fill. However, his work and name will live forever. His passing away came as a shock to many who worked with him. He will indeed be missed. May his soul rest in peace! I thank you. [Applause.]

Ms M M MDLALOSE: Madam Speaker …

… singu-Nadeco nezakhamuzi zaseNingizimu Afrika sifisa ukukhalela iqembu elibusayo kanye nezwe lonke ngeqhawe, … [… as the National Democratic Congregation, Nadeco, and as citizens of South Africa we wish to extend our condolences to the ruling party and the country as a whole for the hero …]

… son of the soil.

Siyabonga ngempilo yakhe futhi siyadumisa ngokuphila kwakhe okugcwalisekile. Simfisela ukuphumula okuhle. Sifisa ukududuza umndeni nabahlobo bakhe. [We are grateful for his life and we celebrate the life he lived to the end. May his soul rest in peace. We would like to convey our words of comfort to his family and friends.]

May his soul rest in peace!

Ngiyabonga. [Thank you.] [Applause.]

Mr L M GREEN: Deputy Speaker, hon Ministers and members, the FD wishes to extend a sincere message of condolence to the family, friends and loved ones of Mr John Gomomo. He was a stalwart of the workers’ movement, a comrade to his peers, a leader of the workers and a visionary of a society free of exploitation and discrimination.

I had the privilege to meet Mr Gomomo at Parliament – a humble man of integrity and a fighter to the end in defending the rights of workers. Mr Gomomo knew how to lead and his talents placed him in the leadership of various workers’ organisations including the National Union of Metal Workers of SA and later Cosatu, which he helped bring into existence. He was actively involved in helping to shape our new Constitution and had always been committed to defending the rights of the poor.

He was a trade unionist at heart and his politics were motivated by these interests. Even as a Member of Parliament, he would continue to argue in favour of economic policies that benefited the workers, the unemployed and the poor.

The FD acknowledges the role of Mr Gomomo in shaping our society into one that is free and friendlier for all to live in. We extend our sincerest condolences to the family, friends and loved ones of the late John Gomomo, as well as to the ANC, which has lost an outstanding leader. He will be sorely missed. May his soul rest in peace! I thank you. [Applause.]

Mr S SIMMONS: Madam Deputy Speaker, the contribution of any individual in the fight for democracy can never be ignored, more so in the case of someone of the magnitude of the late Mr Gomomo, as noted.

The late Mr Gomomo is a shining example of taking the fight for freedom and democracy from the bottom to the top - from soldier and shopsteward to Member of Parliament. The NA salutes the hon Mr Gomomo for his unselfish contribution to his people and conveys its condolences to his family, friends and the ANC. May his soul rest in peace! I thank you. [Applause.]

Mr T R MOFOKENG: Madam Speaker, hon members, Ministers, Deputy President, I think it is a privilege for me just to talk about the man I knew. When I was told to talk about him a few minutes ago, I was in a Scopa meeting and I thought it is never too late for a man to comment, since I knew what I was going to talk about - I knew the person.

I knew Gomomo since the early ’70s – some of you will be surprised. In the mid seventies, around ’77 and ’78, we met with Gomomo when we formed a consultative committee with comrades like Alec and others. We came down to Cape Town to form a federation. That federation was called the Federation of South African Trade Unions, Fosatu, and was officially formed late in 1979.

We thought that was not enough because we were worried about the mines which were not organised then. We found that we were not capable of organising the mines and thought that we should give that task to the Council of Unions of South Africa, Cusa, which was then the National Council of Trade Unions, Nactu, and then thought of Comrade Cyril to lead it. We then decided to bring the federations together and form a real federation, not leaving Cusa aside. We were with Gomomo. By that time - I must not be afraid to say this - I think I was still a leader to him because I was serving at five national levels. We then, together with Gomomo, formed Cosatu in 1985.

I remember when we were at Kings Park stadium in KwaZulu-Natal in 1985 – I think there was a state of emergency thereafter – when Comrade Gomomo and some of us called for the throwing away of reference books, etc. We did that, threw them away in that stadium and said that we were not going to carry those things anymore and that we wanted IDs. By that time, the then State President, P W Botha, was late. He could not believe what had happened and had to follow us. After three to six months he agreed and said: “yes, let us get rid of these passbooks and IDs.” We had already called for that with Gomomo, the real leader by then.

I went to Uitenhage and buried his wife, who was in a wheelchair, and I was surprised. I was always with Gomomo but I was unaware that his family had problems. Comrades, I remember during those times that he used to say to me: “Ron, there is a problem here. There is no more peace.” The funny part of this is that when there was peace, Comrade Gomomo would lead that peace. There would come a time when there was a conflict of rights and conflict of workers’ interests and Gomomo would realise that things were at the lowest ebb and there might be war. Gomomo would not lead that war but he would command it. Mr P W Botha called for a state of emergency and Comrade Gomomo came to me in the mid-80s and again said: “Ron, there is a state of emergency now. Let us show this man that we can do something.” He said: “I am no longer commanding a war but, under this emergency, I am dictating.” He dictated. That was Gomomo.

This towering leader of the people of South Africa - a dedicated worker, servant, revolutionary, fearless fighter, campaigner and activist of people’s power - has passed away. Yes, indeed, he has passed on. But today we are not commemorating, we are celebrating his revolutionary life.

Comrade Gomomo was indeed a fearless servant of the working class and the oppressed people of South Africa. He offered himself selflessly to the struggle against colonialism and apartheid and against capital superexploitation. He put his own life at risk to ensure that colonialism and apartheid were no more, and that South Africa dawned into a nonracial, nonsexist, democratic and prosperous country, free of colonialism of a special type and of all forms of oppression.

In his task he feared nothing - not even death could deter his vision of justice and freedom for the oppressed masses. As the poet said:

Oh death, thy fear I fear. But I fear thee not. I wait not for thy appointment day, for in it you instill thy fright, and trouble the minds and thoughts of those who fall to thy illusion.

Indeed, the revolutionary vision of a democratic and nonracial South Africa inspired Comrade Gomomo to be beyond the fear of death, for he consciously decided to dedicate his entire life to the revolutionary cause. His own life was at risk many times but he soldiered on to provide fearless and conscious leadership to the South African working class to take on colonial and racial capitalism.

Comrade Gomomo served the people of South Africa with distinction. He travelled to many parts of the world, mobilising international solidarity against the tyranny of the former white regime. This he did with a great sense of responsibility and courage, without seeking any glory but for the people of South Africa and the trade union movement. He was an embodiment of the best traditions of the congress movement - a worker, a negotiator, an activist and a leader of the ANC, the SACP and the civic movement.

Comrade Gomomo displayed a high level of revolutionary discipline, expressed by a commitment and availability to carry out tasks of the organisation at all times. He served the people of South Africa in many capacities across a number of areas including in this House. He led Cosatu and the working class with excellence; he resembled the kind of individual South Africa requires in its fight for social cohesion and ongoing social transformation.

His work will always guide us. His commitment to the struggle confirms that he was prepared to die for his beliefs, for he was indeed beyond fear in his cause - as a poet has said referring to death:

Admonish thy angel not to come, For I shall acquaint myself On how to die daily. Like travellers of the far country, I too shall someday know the route From this world to the one beyond, To transit at will over and again, Losing all fear that may lie.

Indeed, Comrade Gomomo was a fearless fighter and a revolutionary ready and willing to die for his people and his country.

I see the faces of some of the comrades who were in the struggle with Gomomo. I can see Don, the former president of the Chemical Workers Industrial Union. I can see the former deputy president …

The DEPUTY SPEAKER: Hon member, your time has expired. Mr T R MOFOKENG: Thank you very much. [Applause.]

The DEPUTY SPEAKER: The condolences of the House will be conveyed to the Gomomo family and relevant structures.

Debate concluded.

Motion agreed to, members standing.

Business suspended at 12:52 and resumed at 14:01.

          DEBATE ON PRESIDENT’S STATE OF THE NATION ADDRESS

The SPEAKER: Hon members, I have received a copy of the President’s address, delivered at the Joint Sitting on 8 February 2008. The speech has been printed in the minutes of the Joint Sitting.

The MINISTER OF LABOUR: Madam Speaker, Comrade President, hon Members of Parliament, fellow South Africans, ladies and gentlemen, the achievement of democracy in 1994 marked the birth of our country as an African nation on the southern tip of the continent. It provided us with the opportunity to set up a government based on the will of the people and on people-centred and people-driven principles.

It provided us with an opportunity to strengthen the ANC as a leader and a commander in the implementation of a practical programme of social change and a movement rooted among the people. Hence the slogan: ANC lives! ANC leads! It is precisely for that reason that the President, during the State of the Nation Address, declared war on poverty: ”… a national war room for a war against poverty”, to be precise.

Masibambane ngezandla singamasebe karhulumente silwe nendlala, silamlele abantu ekuthwaxweni linxele likaKetsekile. Sonke masibambelele ekhubeni, siqinise imisipha neentsinga, singathandabuzi.

UMongameli uhlabe ikhwelo lokuba kungabikho siseko sikarhulumente sibulaleka sodwa. ISebe loPhuhliso lwezeNtlalo, elooRhulumente baMaphondo nabaseKhaya, elezoRhwebo noShishino, elezoLimo neMicimbi yoMhlaba, eleMisebenzi yoLuntu nelezeMpilo, la masebe kufuneka abambane abe yinkwa nenkwa, kuliwe nendlala.

Masahlukane nesiqhelo, naxa ndisazi ukuba isiqhelo siyayoyisa ingqondo. Ude agwebe ngelikaJoji uMongameli athi, “Business unusual”.

Kunyembelekile! Umbutho wesizwe i-ANC ufuna sibe ngamafela-ndawonye anjongo ikukubumbana alwe indlala. Ewe, silenzile igalelo, kodwa kuninzi ekusafuneka sikwenzile. Ewe, uninzi lwabantu lunawo amanzi okusela, kodwa kusekho abangenawo. Baninzi abanombane, kodwa bakho nabangenawo; baninzi abazuza indodla nenkamnkam, kodwa bakho nabangacholi naphantsi. Ngokumisela amaphulo ophuhliso lwamakhosikazi, awomlisela nomthinjana, awomgqeku nomqikela, awabantu abahlala emaphandleni, awabantu abakhubazekileyo nabalimeleyo, awabantu abahlaselwa zizifo naweengwevu neengwevukazi zethu, silwa indlala.

Ngokumisela iinkqubo zophuhliso lwezakhono noqeqesho, silwa nendlala; ngokuthoba iminyaka ukuze amadoda aminyaka ingama-60 azuze indodla, silwa nendlala. Nam ndisalelwe yiminyakana nje embalwa, Mongameli, ndifike kwiminyaka engama-60, ndibe kweli qumrhu lokulwa nendlala. [Kwahlekwa.] Ngokumisela amaphulo okudala imisebenzi, silwa nendlala. Njengoko abacinezelwa bengazange bavume ukuthoba kwimpatho-gadalala yabamhlophe, abavumi nangoku ukuthoba ngenxa yendlala.

Abantu bahluthwa imihlaba yabo ngolunya; yiyo loo nto bakhwazayo nanamhlanje besithi: “Umhlaba! Ubutyebi belizwe busezandleni zegcuntswana.” Yiyo loo nto abantu bekhwaza besithi: Mayibuye! Uninzi alukabi nazindlu. Yiyo loo nto abantu bekhwaza besithi: Amandla! (Translation of isiXhosa paragraphs follows.)

[Let us join hands, as government departments, to fight poverty and intervene on behalf of the people who have been ravaged by poverty. We should all work tirelessly and earnestly together. The President has made a call that no government structure should struggle on its own. The Department of Social Development, Provincial and Local Government, Trade and Industry, Agriculture and Land Affairs, Public Works and Health must work together to alleviate poverty.

Let us dissociate ourselves from the habit, even though I know that old habits die hard. The President even sums this up, in English, as “Business unusual”.

Things are bad! The people’s organisation, the ANC, wants us to form an alliance with the aim of working together to alleviate poverty. Yes, we have made our contribution but there is a lot that we still have to do. Yes, the majority of the people have access to drinking water but others don’t. There are many people who have access to electricity but there are those without; there are many people who get social grants and old age pensions but there are those who do not get them at all. We are fighting poverty by establishing projects for the development of women, the youth and children in general, people who live in the rural areas, disabled people and those who have severe injuries due to accidents, people who are ravaged by diseases and our elderly.

By establishing skills development and training programmes, we are fighting poverty; by reducing the pension entry age for men to 60, we are fighting poverty. I am also left with just a few years, President, before I reach the age of 60 and can be part of the group to fight poverty. [Laughter.] By establishing employment programmes, we are fighting poverty. Just as the oppressed did not succumb to the oppressive white government, even now, they do not want to succumb to poverty.

People had their lands maliciously expropriated. It is for that reason that today they call out loudly: “Land! The country’s wealth is in the hands of the few.” It is for that reason people call out loudly: “Mayibuye!”[Come back, Africa!] A lot of them do not have houses. It is for that reason that they loudly call:”Amandla! [Power to the people!]]

Comrade President, I agree with you that we must prepare our people for war against poverty. Yes, Comrade President, our people have political freedom. However, political freedom without economic control is hollow. It is for this reason that I agree with you that we should mobilise our people for this stage and phase of our struggle. Aluta continua!

Our theme from the 8 January Statement is “Mass mobilisation to build a caring society”. It has been the ANC that cared and it is still the ANC that cares. It is the ANC, together with our labour movement, that can mobilise domestic and farm workers under the banner of a strong and vigilant trade union.

It is the ANC together with our labour movement that can sustain a programme of action aimed at protecting vulnerable workers. “All who work shall be free to form trade unions, to elect their officers and to make wage agreements with their employers”, says the Freedom Charter. And it continues thus, Mr President: “… that our country will never be prosperous or free until all our people live in brotherhood, enjoying equal rights and opportunities.”

Sir Francis Bacon, however, advised us many years ago that “knowledge is power”. Therefore, it would be of no use to create jobs and develop skills when our people remain ignorant of the jobs being created when they are created, what skills they require and so forth. Therefore, as highlighted by the President in his speech, the need to enhance employment-search mechanisms that should not be costly for job seekers is very important. Government is stepping up the efforts to expedite that process.

It is the ANC that is committed to human rights and the rights of all workers irrespective of gender, race, creed or religion. The ANC, hon members, has no “buts”, “ifs”, “howevers”, “whenevers ” or “wherevers” when it comes to the rights of workers and the constitutional rights of South Africans in general.

Only the ANC government can win this war. Only the ANC can end rural poverty. Only the ANC can bring dignity to people with disabilities. [Applause.] Only the ANC can ensure that we have youths who are of quality standard to enter the labour market. Only the ANC can provide universal access to basic services such as water and electricity. [Interjections.] Only the ANC can provide support to the elderly and indigent people. Only the ANC is the home of the truly dispossessed and of all South Africans. Our strength flows from our roots among the people. Only the ANC government can and will win this war against poverty.

Comrade President, I am absolutely sure that, in this House, including those members who are howling on my left, the ANC is the only organisation and the only party that is proud of its past and the only one that is confident of the future. [Interjections.]

I cannot say the same about the DA because they were once the Progressive Federal Party – at some stage the DP – and now I don’t know who they are in alliance with. I cannot even say the same about my friend in the UDM because he knows he cannot be proud of their history. He certainly is not sure of his future either. I can name the parties one by one but it is only the ANC that is proud of its past and confident about the future.

Mandigqibezele ngelithi, kumakholwane am ahleli kweli cala: [Let me conclude by saying to my colleagues sitting on this side:]

The more you shout, the more I get excited because I am a preacher. I think you are saying: “Hallelujah! Amen!” to what I am saying. [Interjections.] That is why I am enjoying myself. Shout more so that I can speak more. Thank you. [Applause.]

The LEADER OF THE OPPOSITION: Agb Speaker, agb President en agb lede – moenie bekommerd wees nie; die grootste deel van my toespraak is in Engels. [Hon Speaker, hon President and hon members – do not be worried; the bulk of my speech is in English.]

The President has told us that South Africa is on course. He has told us that he has 24 Apex Priorities to accelerate renewal and to improve the efficient running of the country. He has told us that it is “Business Unusual” with his government because we need urgent and determined action if we are to rise above a host of grave infrastructural problems and constitutional threats.

I am here to tell the President that, with all respect, most South Africans do not believe him any more. [Interjections.] Under President Mbeki, the state has been misused for the ANC’s benefit and to ensure its hold on power. The separation of powers has consequently been undermined. The language and the mindset of race exclusivity have returned to bedevil South Africa and to undermine the effective functioning of the state at every level. The sudden dimming of the lights across South Africa is merely the most potent and obvious metaphor for the crisis government has visited on the people.

The result of business as usual, under President Mbeki’s government, is that we now need to engage in Business unusual. Yet, by refusing to acknowledge how few of the programmes and the strategies of previous years have been fulfilled and by assuring us all that we are on course, while refusing to hold his Ministers accountable for manifest failures, the President, again, came to us with nothing more than business as usual.

There is a deep desire amongst South Africans to be rid of all the pervasive evidence of corruption, crime and collapsing infrastructure which invades our daily world. Ordinary South Africans want to have discipline in schools, functioning hospitals, safe streets for kids to play in, old people treated with dignity and police that can be trusted.

Mr President, my party and our leader have offered solutions and assistance and have engaged with your government at every turn in order to achieve these things for South Africa. We are now convinced that the only way to achieve this is to have a new person at the helm and a new government at the helm … [Interjections.] [Applause.] … a government and such a person to be chosen by the people of South Africa and not by a faction of the ruling party. [Interjections.]

We are in crisis in South Africa today. The crisis we face is undoubtedly constitutional in nature and concerns the conflation of party and state. The separation of powers, which is fundamental to any democracy – the separation between party and state, and between the legislative, executive and judicial arms of the state – has been systematically eroded.

Onder die Mbeki-regering was daar ongeoorloofde inmenging in beide die vervolgingsgesag en die regbank. Dit het ons vertroue dat die fundamentele grondwetlike skeiding eerbiedig sou word, laat krummel. [There has been unwarranted interference in both the prosecuting authority and the judiciary under the Mbeki government. This has shattered our confidence that the fundamental, constitutional separation of powers will be respected.]

We fear, Mr President, that your oblique reference to the future functioning and location of the Directorate of Special Operations was meant to muddy rather than clarify this all-important issue. For if you really intended taking the South African public into your confidence, you would have had to admit that the decision to scrap the Scorpions had already been made for the government by the ANC.

The concern of the people of South Africa is both real and justified: Who is going to lead the fight against corruption, especially considering that the ANC’s chief decision-making body, the NEC, is made up so substantially of individuals who are either suspected of, or have already been convicted of, crimes – most of which relate to fraud?

In November 2006 the President asked representatives of the SA Council of Churches to trust him that the evidence at his disposal did not warrant action against National Police Commissioner Jackie Selebi. It is difficult to know why we should trust the President on this issue, given today’s revelations contained in an affidavit signed by the Acting Director of Prosecutions, which seems to prove that the President has misled the nation on this issue.

Mr President, the undeniable impression to be gained from the whole sorry saga is that you acted improperly to protect one of your key political allies and, in so doing, undermined the key constitutional principle of separation of powers as well as misled the people of South Africa about the real reason for Advocate Pikoli’s suspension.

In the light of these developments and for the sake of your own credibility, we urge you to disband the Ginwala commission and reinstate Advocate Pikoli with immediate effect. [Applause.]

We know that the ANC is not averse to using clandestine tactics to ensure that party coffers are kept full. It is a sad reflection on the President’s legacy that on the same day he delivered what may well be his last state of the nation address, we read newspaper reports on a lucrative and illicit deal that will allegedly benefit the ANC: the R38 billion in Eskom contracts through the party’s funding front company, Chancellor House, established while the President was party leader.

As everybody knows, this is not an isolated event. The so-called Oilgate saga is yet another example of how institutions of the state have been abused by the ANC for party purposes. Furthermore, the President has also repeatedly and determinedly blocked answers to questions South Africans have raised with regard to arguably the biggest corruption scandal of postapartheid South Africa – the arms deal.

Last Friday President Mbeki took the occasion of his mother’s presence to urge us all to tell the country the truth. The ANC, which likes to claim it is the party of the poor, has built up R1,6 billion in assets under your Presidency. We now ask you, Mr President, to tell us the truth: Give us your assurance that not a single cent of the R1,6 billion was received from the prime contractors of the arms deal or from the proceeds of the oil-for- food scandal in Iraq.

Given that we have to ask these questions, our concern is no longer merely whether the ANC has the capacity to defend the democratic rights and Constitution which it so bravely helped to bring about but rather whether it actually has the moral impulse left to do so. Ons mense word daagliks deur moord, verkragting en gewapende roof in die gesig gestaar, terwyl die regering die volle omvang van hierdie krisis ontken.

In 2006 het President Mbeki verwys na die internasionale besigheidsverslag van Grant Thornton toe hy trots daarop aanspraak gemaak het dat Suid-Afrika tot “Die Jare van Hoop” toegetree het. In ’n latere uitgawe van dieselfde verslag is misdaad as die grootste probleem wat besigheid in die gesig staar, geïdentifiseer. (Translation of Afrikaans paragraphs follows.)

[Our people encounter murder, rape and armed robbery, every day while the government denies the magnitude of this crisis.

In 2006, President Mbeki was referring to the Grant Thornton International Business Report when he proudly claimed that South Africa has entered the “The Age of Hope”. In a later edition of that same report, crime was identified as the biggest problem faced by the business sector.]

The economic reality of South Africa is this: Unless we improve our competitiveness in an increasingly demanding global environment, our economy will not grow at a sufficiently buoyant rate to create jobs and ensure proper social security to those most in need.

Mr President, in defiance of the claims you have made since your address on Friday, I must point out that the policies of the ANC, with respect to the economy, are actually failing in implementation. The occupational skills development regime, which you have put in place, and the microeconomic policies that the government is struggling to implement are simply too interventionist, too bureaucratic, too resource- and capacity-intensive, and too inefficient to deliver the goods in time.

Your 24 Apex Priorities contain nothing new; they seem little more than an empty PR exercise that Asgisa, Jipsa and the Expanded Public Works Programme have become. The intentions are impressive and admirable but, in practice, as with so many other much-publicised initiatives of this government, the required outcomes have simply not been achieved.

Many debates in this House have correctly centred on poverty and the fate of the poor. The challenges for all in this House are to ensure that any future leader brings this voice of the marginalised into the mainstream debate, that the poor become the key beneficiaries of any policy changes and that they do not become the proxy battleground and war room for power squabbles within the ANC.

We need to ensure that we create a fiscally sound social security system and not a hot air balloon with promises that evaporate when global or local economic conditions shift, and that we continue to explore areas in which we can strike a sound balance in a partnership between government and business.

The 2008 version of the International Business Report is certain to mark us down severely for the collapse of infrastructure in South Africa. I have in hand a reply from Public Enterprises Minister Alec Erwin, dated 19 June 2006, to one of the numerous questions sent to him by the DA concerning the security of our electricity supply. In it, he assures us that Eskom’s demand problems are being “appropriately managed” and that he is “confident of a reliable electricity supply in the future”. [Interjections.]

Neither Minister Erwin nor the former or current Ministers of Minerals and Energy, Phumzile Mlambo-Ngcuka and Buyelwa Sonjica, have uttered a reliable word to the people of South Africa in the decade that the government has been in the know about this impending disaster. We have been fobbed off with bland assurances and half truths until the very moment when the lights were going out all over South Africa.

Why are these Ministers allowed to remain in office? The truth is that they stay in their places because under this government, that is business as usual. [Interjections.] [Applause.] But for the rest of the country, as a result, it has not been business as usual. It was only when our all- important mining industry was brought to a standstill for the first time in a century that a flurry of fumbled admissions and half-baked apologies issued from these Ministers and the Presidency.

Because of this lack of accountability, the people are being denied the services they are entitled to. These are the real Apex Priorities which the people of South Africa are frustrated and anxious about. They resent the collapse of our public schooling system, the violence in our schools and the five years of unabated decline in matric pass rates.

They are appalled by the continuously deteriorating state of our public health care system, following numerous highly publicised instances of infant deaths, maltreatment of patients, delays in the introduction of dual therapy for Aids patients and the fact that 500 000 HIV-positive South Africans have yet to even start receiving antiretrovirals.

They are angered by the endless delays and underspending that hold up the government’s housing efforts and that have put the plan to eradicate informal housing by 2014 in serious jeopardy. They are disturbed by the sluggishness, inefficiency and incapacity of our criminal justice system and they are increasingly worried about the quality of our water supply and the aging infrastructure to supply it.

Die resep wat misluk het, kan nie die resep wees wat die mislukking moet regruk nie, en ’n inherente deel van daardie resep is die mense wat daardie mislukking veroorsaak het.

Kom ek vertel vir u wat ek in die Vrystaat oor onderwys teëgekom het. Eunice skool het nou vir 10 jaar ’n 100% slaagsyfer. Die skoolhoof sê daaroor die volgende:

Ek kry dit reg met professionele onderwysers wat toegewyd is aan hulle werk en wat toerekeningsvatbaar is. (Translation of Afrikaans paragraphs follows.)

[The recipe which failed cannot be the recipe that has to be used to rectify the failures, and an inherent part of that recipe is the people who caused the failures.

Let me share with you what I have discovered about education in the Free State. Eunice School has had a 100% pass rate over the past 10 years. The principal has the following to say about that:

I am able to succeed in this with professional teachers who are dedicated to their task and who are accountable.]

Mr President, accountability is not an optional extra. It is an imperative of good governance and a constitutional requirement which you cannot simply dispense with because you want to protect your loyal cadres.

Skewed loyalties have also informed the way in which the government conducts the foreign affairs of this country. Our country has rightly been accused of shielding a number of unjust regimes, which has lost us our status in the world as a prime defender of human rights.

Concerning our own continent, it is indefensible that the President has remained silent on the critical situation in Kenya and that he has publicly endorsed the elections, once again, scheduled for the end of March in Zimbabwe.

This determined refusal to face the undeniable has robbed South Africa of its hard-won status gained in the 1990s as a moral beacon on the global stage.

Finally, the reracialisation and racialisation of debate and practice in South Africa have been particular obstacles to building the moral fibre of this country and a key feature of the Mbeki presidency. It has retarded state capacity to deliver where the need is greatest and it has provided little comfort or resort where racial fault lines do emerge, such as was demonstrated by the recent tragic incident at Skierlik in the North West.

Mr President, South Africa is filled with people of goodwill and integrity who want this great country to succeed. They are neither on the unrealistic left of the political spectrum nor on the reactionary right. They are to be found in the political centre: Proponents of equality, freedom, choice, decency and hard work. They are neither populist nor elitist. They are committed to nonracism and nonsexism. They are not divided according to race but united by shared values.

They do not ask much more than to be given an opportunity to prove themselves, quality education to prepare themselves for the challenges of a modern economy and to live in a safe and clean environment in which their children will prosper.

South Africans are more than capable of grasping the opportunities of a new era with their ingenuity, creativity, humanity and fascinating diversity. We have a record of producing miracles in this country and we can do it again.

Means-tested basic income assistance for the poor, floor-crossing, HIV and Aids, Zimbabwe, the abuse of human rights everywhere and the desire for moral direction, these are all issues on which there is a congruence of views in South African politics which has yet to be explored and which can and must flow together to the political centre.

It is not too late, and we have overcome hurdles far larger and more destructive than those we are facing at present. But we do need to start with a clean slate. Therefore, I now table this written notice of motion to ask:

That this House resolves to dissolve so that a fresh election can be called and the people of South Africa can be given the opportunity to choose.

[Interjections.] [Applause.]

Prof A K ASMAL: Madam Speaker, Mr President, Deputy President, hon members, maqabane [comrades], in quoting the opening lines of Charles Dickens’ A Tale of Two Cities, the President tried to show that, in real life, it is not a matter of a choice of extremes: wisdom - foolishness, light – darkness, but a possible reflection of a deep sense, possibly, of unease about where the country will be tomorrow.

But there are those, like the writer of an extraordinary letter to the Weekend Argus on 9 February, who from the deepest well of his hatred, could write: “The world should stop caring about what happens on this continent and allow it to self-destruct.”

Africa, it seems to him, including South Africa, is a terminally ill patient. In other words, we are facing what the Germans would call “Götterdämmerung” – the twilight of the gods – with decay, death and destruction confronting us. [Interjections.]

Of course, the hon Leader of the Opposition, who is a very gentle, pleasant woman, wants to sound like Helen Zille and she can’t manage to sound like Helen Zille. [Interjections.] She has only the content of tone of the hon Tony Leon but not the capacity to move them. [Interjections.]

You see, you can have all your clean slates. We have now moved to a technological age. The DA is still in the “clean slate” one. [Interjections.] You can have all your clean slates. The point is the confidence of the people of South Africa in the ANC has been reflected again and again. [Applause.] Again, and again and again: The votes went up from 1994, to 1999, to 2004. Again, and again and again! [Interjections.]

Well, you see, like some political commentators … [Interjections.] You know, I think there is a kind of baying here. I’m not allowed to say “the baying of donkeys”; that’s unparliamentary. [Laughter.] I’m not allowed to say that, so I withdraw that. [Interjections.]

It’s a baying. [Interjections.] Well, you see, she and some political commentators need to be reminded that the past is a foreign country; they do things differently there. Our country in recent decades is certainly proof of the accuracy of the first part of the opening line of L P Hartley’s novel - you might even read novels on nostalgia - The Go-Between; whatever about the second part.

That this country has changed out of all recognition is a truism of daily discourse. [Interjections.] Whether it has changed – you see it says we lead in darkness – for the better is a question whose answer usually depends on personal circumstances, preferences, beliefs and, particularly, your status before 1994.

It is a constant of human nature that the past is seen through a nostalgic haze. The Leader of the Opposition says, “For the first time in history, the mines stopped.” Do you know what happened on the mines where the lives of thousands of people stopped through the migrant labour system? [Interjections.] Do you know what happened to their lives when millions and millions of them were put in all-male compounds on concrete beds? Do you know what happened to family life when thousands were killed? Do you know about the infant mortality rates until 1994? [Interjections.] And you have the nerve to tell me, to tell us, the bloody lights went out the other day. [Interjections.]

For them, the past … [Interjections.] It’s lovely, this idea of being barracked by these people is one of the most stimulating things to me … [Interjections.] … although not in the way they think I should be stimulated. As long as there is a sunnier place for them, a frequently content, caring place partly thanks to the broad brush strokes of the history they want to write again and again.

Overall, though, for the vast majority of our people, there is no need to remind us, as you need constantly to be reminded, of the past that we have left behind. For the small minority of the permanently disaffected – disgruntled, I should say - hoping to take office this side of the House, we need to remind ourselves that South Africa is a much nicer place than the “other country” used to be.

A better place is not to be defined simply by the obvious signs of physical change, Mr President. It is not enough to say, as my brother from the Labour department said: “How many millions of the 16 million have water now which they did not have before?” It is not enough. It is not enough to say: “How many homes have been built and how many hospitals and schools have been built?”

We must talk about the quality of the life there. It is not enough to say … You know, they are obsessed with potholes, by the way! [Laughter.] But, you know, there were no potholes in the townships when I came in 1990; we built the roads in the townships. So, I’m much more obsessed about our school kids being able to go to school without fording rivers. [Interjections.] You see, the material change is not enough. The most highly developed social security system anywhere in the Third World is what South Africa has today. It is not enough. [Applause.]

It is not enough to say that in my lifetime I could not go to university because my family couldn’t afford to send me; now we are sending 90 000 a year to university, through a financial aid scheme. [Applause.] It is not enough to say that the school system is not working. I went to school where not a single teacher was qualified - from primary to secondary school. [Interjections.] You can’t say that, because you have to go round the schools to see the extraordinary developments that are taking place. That is wrong.

Go to the schools and you’ll see how things have changed. As the Constitution says, in the preamble: Let’s draw on the capacity of all our people - and we are doing that now. We are beginning to do that. [Applause.] I will not give way to you.

So, you see only an accountant without a consciousness counts all the time. [Laughter.] What we’ve been at now - and I’m sorry the hon Leader of the Opposition forgets this - is much more than delivery. Have the lives of our people changed?

And so, there are some people who will look back on the past with nostalgia, contrasting the works, really, of a black-dominated government and the uncaring anonymity of present-day urban life, with electricity cuts and fortress-like homes. So, the past is a country in which we do not actually have to live anymore, just visit in our imaginations and, usually, in a rather fictitious fashion.

The most important development making South Africa a better place to live in and, possibly, even to love, is the Constitution – a guaranteed contract between South Africans as to how to organise our public and our private lives. Very few people have had the chance, as people in this House have had, of being able to craft that Constitution. It’s a result of an unprecedented national conversation amongst South Africans and we hope we can revive that consultation a little later. That partnership, together with the Bill of Rights, is the bedrock of our freedom.

It is therefore appropriate that I should refer to the anxiety identified by the President about people who, “are worried about whether we have the capacity to defend the democratic rights and the democratic Constitution which were born of enormous sacrifices”.

Do we have the capacity? The answer must be a resounding “yes” from this side of all sides. [Interjections.] The Chief Whip – and he’s a tough bloke, this Chief Whip; the new Chief Whip now - of the ANC in the National Assembly last week reported to our caucus that the recent ANC lekgotla reconfirmed our commitment to building a caring society through, among other things, the strengthening of the people’s institutions of governance and the protection of their integrity.

Now, this comes from the most senior representative of the party in this House. For this to be, Parliament will have to play a bigger role. There is no doubt about that. The myth that, for example, the executive totally dominates Parliament is not borne out by the facts. Trevor Manuel, the Minister of Finance, again and again and again, has said: Parliament must assert itself through the committees to hold Ministers and departments responsible; again and again and again. So, it’s a frailty of this House, rather than the executive, that there is that now. [Interjections.]

That’s not good enough. Parliament will have to say that the constitutional settlement of 1996 has to be strengthened. There are many ways of doing this.

An HON MEMBER: What about accountability?

Prof A K ASMAL: I will come to this. [Laughter.] It is Parliament that will take the final decision concerning the suspension of the National Director of Public Prosecutions. It is Parliament that has to ensure that the prosecution of the National Commissioner of Police, and the investigation and prosecution of high-status people in respect of very serious crimes, are conducted by elite and highly professional law-enforcement agents.

So, therefore, I want to look at the governance aspect of the National Assembly’s supervisory functions. Central to the effective functioning of our democracy and as part of the separation of powers which in fact drives all of us, is a truly independent judiciary. Our national conference has rightly made the case for the change, transformation, restructuring and training of a united judiciary. But, as in all aspects dealing with constitutionally protected persons or entities such as the press, changes will have to be consistent with the Constitution and in consultation with those affected, especially the judiciary.

There’s a limit to social engineering when we look at institutions that need strong protection. The case for consultation is not an add-on to the work of the executive of Parliament. It is constitutionally enjoined. I see no other Constitution that has the provisions of section 59(1) that says “The National Assembly must facilitate public involvement in the legislative and other processes of the Assembly and its committees.”

But recently, on at least two occasions, Parliament has been found wanting by the Constitutional Court on this score. Consultation, comrades, involves a degree of openness to countervailing opinions. With regard to the issues arising out of Khutsong and Matatiele - not ignoring the politically motivated and organised violence in Khutsong which we must all deplore - if we had been more assertive in the National Assembly and listened to the grievances of these people, however misplaced they were, the position would have been different.

If Parliament is to be the effective guardian of the Constitution, it must be more assertive in the scrutiny of legislation. Policy, as we know, is the prerogative of the executive under section 85. We mustn’t forget that. Policy is the prerogative of the executive in terms of which it is charged to develop and implement national policy.

But when Parliament has legislation before it, the constitutional implications must be spelt out because every piece of legislation has some constitutional implications, whether we like it or not. I recall that this was not adequately done in the so-called anti-terrorism legislation, so that the relevant portfolio committee had to virtually recast the Bill to make it consistent with the Constitution.

Also, may I say, for the sake of public understanding and the edification of Parliament, departments must give up this current gobbledegook style of writing memoranda. Gobbledegook reminds me of a turkey, Mr President - really, a gobbly lawyer. It is how a turkey sounds, if you look at the legislation. We must go back to the plain English approach of our much- praised Constitution.

It’s also very important that we must all be committed to the Constitution in our personal lives. I don’t know who Mr George Boinamo is. He’s described as a DA spokesman on education. He must have been asleep when he swore that he would obey, respect and uphold the Constitution and all other laws. I say this because the anonymous and honourable, no doubt, Mr Boinamo, in opposing the idea of a national pledge proposed by the President to be recited by schoolchildren, made some illiterate political remarks and then added: “I reject the idea of reciting and swearing an oath to the Constitution because not everybody supports all the laws of the Constitution.” Whatever “all the laws of the Constitution” means! [Interjections.]

I very much hope that Mr Boinamo has recourse to the lost cause of those who say they were misquoted. Otherwise, the leader of his party will have to draw attention, first of all, to not taking his oath seriously and secondly, being in contempt of the Constitution which, I mean seriously, no member of this House should be. [Interjections.]

Finally, the argument of the mortar and beam doesn’t work, hon Leon. I’m not speaking from my side or for anybody else; I’m speaking as a member of this House. Remember that. So, I want to look at, finally, what makes a South African. How is it possible that the mid-term review published by the executive recently says that 90% of South Africans are proud to be South Africans? That’s a very extraordinary thing. [Applause.] You won’t get a similar proportion anywhere in the world. And why do they say that? This was two years ago. Because regarding the issue of national identity which I would love to speak about here, we don’t do the Milner national identity. I would have liked very much to have spoken about that identity but I will end.

I will end on this basis, that the Speaker asked us to look at chapter 9 bodies, which are enormously important. I hope these chapter 9 bodies will not be forgotten because a unanimous report has come out. There is a huge agenda there because some of the bodies are not functioning and others are not functioning very well. And the President referred to that in his speech at the ANC conference.

So there remains a huge agenda for change, but as part of the development of our country to deal with removing fear about the future, combating poverty, alienation and discrimination, and fostering an agreed sense of national identity. So we must claim tomorrow as another country and dream and agitate. Remember, we can only do so with that extraordinary movement that is called the ANC.

Remember Ben Okri’s injunction: They are only the exhausted who think That they have arrived At that final destination The end of the road With all their dreams achieved And no new dreams to hold.

We dream. We dreamt in the hell holes of apartheid, we dreamt on Robben Island, we dreamt in the torture chambers, we dreamt in the loneliness of exile. We shall continue dreaming and consummate our dreams. Thank you very much. [Applause.]

Prince M G BUTHELEZI: Madam Speaker, Your Excellency the President, Your Excellency the Deputy President, hon Ministers and hon members, our Republic is in jeopardy and it will not be saved unless we return to the original ways and integrity of our liberation movement. I am no stranger to ANC ethos and pathos. The political soul of our struggle is known to me, for in my lifetime, I have had the privilege to be part of them more than many members of this House.

Dr Pixley Seme was my uncle, with whom I often stayed and for whom I ran errands. I knew Rev John Langalibalele Dube, the first ANC president. I knew Dr Alfred B Xuma, who once hosted me in his home in Toby Street in Sophiatown. His wife, Mrs Madie Hall Xuma, used to call at my home at Kwaphindangene when she was organising the YWCA in KwaZulu-Natal.

Inkosi Albert Luthuli was one of my mentors until his tragic death. I was in communication with Mr Nelson Mandela throughout his incarceration. I worked with Mr Oliver Tambo until the crucial meeting in London in 1979. Rev Canon James Calata, one of the stalwarts of the struggle, came all the way from Cradock to visit me in my home at Kwaphindangene.

Professor Z K Matthews, who came up with the idea of the Freedom Charter, was my professor. I cannot mention the long list of other leaders of our liberation struggle with whom I interacted but I cannot omit Mr Robert Mangaliso Sobukwe, who was my chairperson of the Fort Hare branch of the ANC Youth League. [Interjections.] All these were men of integrity.

More than many, our President knows the closeness of my working relationship with Mr Tambo, as he was his right-hand man, notwithstanding all the chuckles and derision that I hear from the government benches. At one time the President was sent by the movement to talk to me, together with Albert Dlomo, at Heathrow Airport when I was returning from Germany with the late Rev Enos Sikhakhane.

Since the meeting between the ANC and Inkatha’s delegations in 1979, integrity grew thinner, with great damage to the ANC’s soul. Constantly, undertakings were no longer fulfilled. After that meeting, Mr Tambo, then president of the ANC, undertook to get in touch with me but this did not happen. Instead, the sluice gates were opened and I was attacked and vilified.

Madiba wrote to me just before he was released in 1989, stating that he would meet with me as soon as he was released, for the two of us to deal with the violence between our members in the ’80s and ’90s. He was prevented by UDF and ANC leaders who, he said, almost “throttled” him. When almost a year later we eventually met with Madiba in Durban on 29 January 1991, our President, His Excellency Thabo Mbeki, was one of the scribes.

One of our agreements was that both Mr Mandela and I should tour, addressing joint ANC and Inkatha rallies throughout the country. Mr Mandela agreed to do this with me, beginning at Taylor’s Halt in Pietermaritzburg but Mr Harry Gwala, the ANC leader in the province of Natal, took a busload of ANC leaders who read the riot act to Madiba, who was told not to go with me to Taylor’s Halt.

On 19 April 1994, Madiba, Mr De Klerk – the then President – and I signed a solemn agreement that the institution of the monarchy and other constitutional issues would be dealt with through international mediation as soon as possible after the election of 27 April 1994. This agreement was dishonoured.

After I was appointed by President Mandela as his Minister of Home Affairs, an invitation was sent to me and to President Mandela, in his capacity as the ANC president, from the people of Thokoza. Both ANC and IFP members … [Interjections.]

Mr J H VAN DER MERWE: Madam Speaker, on a point of order: There is continuous noise and interjections while Mr Buthelezi is speaking. I ask you for order, please. [Interjections.]

The SPEAKER: Yes, hon member. You will note that the continuous sounds did not start only with the hon Buthelezi speaking. [Interjections.] Not that they are welcome; however, they did not start with the hon Buthelezi. Please proceed, hon member.

Prince M G BUTHELEZI: They wanted us to unveil a monument which was erected as a memorial to members of both parties who died in that low-intensity civil war. This never happened.

In October 1999, our President, in his capacity as ANC president, and I did unveil the Thokoza Memorial. After doing so, we addressed a joint rally of ANC and Inkatha members. It was decided then that we had to address other similar joint rallies throughout the country. Again, it never happened. A few years ago, I wrote congratulatory letters to the current president of the ANC, in his capacity as the Deputy President, and to the secretary- general, now the ANC deputy president, raising issues which I felt had to be addressed jointly by us as people of integrity and in the interests of the country. I did not even receive acknowledgement of the receipt of my letters.

A discussion took place at the Sheraton Hotel in Pretoria about five years ago between His Excellency the President and myself. I was accompanied by the secretary-general of the IFP, Rev Musa Zondi, and Rev Celani Mthethwa. I think the President was accompanied by his secretary-general, Mr Kgalema Motlanthe, and Mr Smuts Ngonyama. It was agreed that the memorandum outlining fundamental issues for our political system in the country was to be discussed further by 15-a-side of ANC and IFP. It never happened.

I could spend several hours listing broken promises and lost opportunities, not for me, and not for my party, but for our country.

We were born in, and lived through, the season of hope at a time when many of us hoped against hope. Our liberation fulfilled those hopes beyond the hopes of many, ushering in a unique season of opportunities. We have had the opportunity of building the strongest democracy on our continent and forging a genuinely modern and yet uniquely African state.

After the season of hope and the season of opportunities, we are now entering what may become a dark season of regret – regret as big as the opportunities presented to us which we forwent.

Seizing opportunities requires operating for the greater good above short- term sectorial interests. Huge opportunities have been missed, possibly forever, because the pursuit of personal good, personal enrichment and personal advancement has overshadowed a genuine long-term strategy for the common good.

In his address, His Excellency the President was careful to avoid many raw political nerves which I am sure are going to be harped on mercilessly during this debate. I have never shied away from controversy and I am mindful of how in ancient Athens, which was the cradle of democracy and civilization, it was in fact a crime for any man to shy away from controversy; for debate was encouraged and even forced in respect of everything, especially controversy.

I too welcome controversy but we must ensure that the tone of our debate rises to the gravity of the moment and is inspired not by petty politics but by integrity. We must shift away from politics, reminding ourselves that at times of instability, as the present one is, only the country matters, only the issues matter, and only the people matter.

We all know our national challenges, for they have been restated time and again in this Parliament by our President, both this year and in preceding ones. What is required is the necessary leadership to maximise the capacity of our state to successfully conquer them.

The President has admitted that the challenges have not changed but have become greater and possibly beyond our capacity to master them within the present paradigm. For this reason, the President sought to shift the paradigm with a number of initiatives which he packaged under the catchy phrase of “Business Unusual”.

Most of what the President suggested shows a commitment to doing more of the same, at perhaps a greater pace, with a little more money, more committees, more intergovernmental structures and a little outside help.

It is with regret that I fear that this might not be enough. The challenges of unemployment, growing poverty, widespread corruption, rampant criminality, uncontrolled HIV and Aids and TB, and escalating government inefficiency and corruption have grown larger and more intense year after year.

In addition, a new challenge has been allowed to grow unattended, in spite of my endless warnings in this House and elsewhere, which is the growing disintegration of the state as a politically independent, effective and efficient machine, capable of delivering the policies of the day.

I urge this House to focus on the importance of institutions that anyone can respect in spite of how one feels about their incumbents. As I pointed out in last year’s debate, grave damage has been done to the Presidency as an institution and the events of the past three months have inflicted on it blows from which it may never recover.

We cannot proceed in dealing with any political issue until and unless we re-establish credibility and respect for the Presidency and other institutions, which has more to do with the attitude of its detractors than with its incumbents.

I am reminded here of the American actor John Wayne, who was no authority on constitutionalism, but when commenting on John Kennedy having won over his favourite Richard Nixon, he famously said, “I didn’t vote for him but he is my president and I hope he is going to do a damn good job at it.” This is what we must hope for South Africa. The issue is not who leads us but where we are being led to and how we are being led - we do not wish to be led by the nose deeper and deeper into the season of regrets. It does not matter who leads us if we cannot steer our course away from the path to slow self-destruction. The easy way out is to discuss leadership issues and plunge into politics rather than rising to the hard task of dealing with the real issues and living up to one’s own political responsibility. There is no point in discussing any change unless there is a serene and objective debate of what went right and what went wrong.

The President reminded us of the course on which we originally embarked 14 years ago and he assured us that we remain on that course. We committed ourselves to that course which remains the blueprint for a new South Africa. But we must accept that the machinery required to move us down that path has failed us because it moved away from the service of the greater good and a long-term vision to serve a small circle of a few rich and powerful people.

Inkosi Albert Luthuli would be the first to disown a government in which premiers help themselves before helping the people, government officials steal and policies are developed not with the people in mind but in consideration of those who can enrich themselves through their implementation. I can just imagine how harshly Inkosi Albert Luthuli would speak to us if he stood in my stead in this place at this time. He would curse those who allowed the fruits of our liberation to rot on the tree as a short summer of opportunity gives way to an early and harsh winter of regret.

We must regain our political soul in a way which is uncompromising and unselfish. The judiciary must be competent and independent, not 99% but 100%, or otherwise it will be 1% corrupt and lazy. The Public Service must be 100% loyal and corruption-free, and not 99%, for otherwise it will be made up 1% of crooks and thieves. The police must be 100% capacitated and beyond political manipulation, and not 99%, for otherwise it will be 1% hopeless and crooked. Political representatives – us - must be 100% committed to public service and the greater good of our Republic, and not 99%, because that 1% of their own personal greed and self-promotion is treason. In the service of our people 99% loyalty is 1% treason.

We do not need a new shift into “Business Unusual” mode. We must review what we have done until now and accept that if our business of government had been conducted as it was meant to, it would have succeeded. Many people have been on “Business Unusual” until now as they slept, went to cocktail parties, travelled the world, became richer and made a few of their friends prosperous while the majority of South Africans became poorer and poorer by the day; crime grew rampant in all our communities, especially the poorer ones; our industrial basis shrank, reducing our country’s future role in the world; our infrastructure became obsolete; the massive domestic and international effort made to counter the HIV and Aids pandemic failed; our institutions of government slowly crumbled under political interference and lack of integrity, competence and professionalism of the politically deployed incumbents; provinces were emasculated and turned into puppets; the institutions of traditional leadership were obliterated; the promised measures to give flexibility to the labour market never came about – Asifuni iGear [we do not want Gear]; and lights slowly began going out, foreshadowing a similar imminent breakdown of the rest of our country’s infrastructural backbone.

Everyone will need to live with his or her regrets. For 18 years, since we began forging our new South African Republic, I have tried my utmost to focus our collective attention on the importance of properly functioning institutions of government, ranging from provinces to traditional leadership. And I called our attention to the need to liberalise market forces. Instead, our “unusual business”, made usual, moved on the basis of a schizophrenic dichotomy between what was being said and what was being done.

Independent institutions were established and then immediately staffed with politically deployed party functionaries reporting to a centralised centre of power, operating in an environment in which a genuine culture of independence could not flourish. Provinces were established but they have now been so emasculated of their powers, autonomy and ingenuity that in their present form they have become a liability rather than an asset to our democracy.

So much has been centralised that the core of our government is bound to soon collapse under its own weight. Yet the President has suggested even greater centralisation in the package of measures he announced, which includes supervising committees and co-ordinating organs of state, which should have been responsible for performing the required function in the first place but could not do so because their autonomy and initiative were impaired.

Similarly, while paying lip service to the cause of liberalisation of market forces for the past 15 years, in truth, doing business in South Africa has become far more difficult; cartels and monopolies have grown and prospered; politics and political deal-making control our economy; the infectious and corrupting influence of the state and its corrupt tender practices has infected vast segments of our economy; exchange controls have not been lifted and our country has become much more economically inefficient than it was when liberation took place.

The many promises to provide a significant role for the institution of traditional leadership were betrayed with dramatic consequences which have not yet fully come to pass. I shall just mention one example of a dramatic split between policies and reality and of a government at war with itself.

In September 2002, the KwaZulu-Natal House of Traditional Leaders set up an HIV and Aids task force which, to everyone’s assessment, was the ideal mechanism to deliver HIV and Aids programmes in rural areas. The hon Minister of Health, Dr M E Tshabalala-Msimang, accompanied by the provincial Minister, hon Dr Zweli Mkhize, met with the KwaZulu-Natal House of Traditional Leaders and praised this task force.

Your Excellency our President, on 7 February 2008, just a day before the President spoke, the hon Minister of Health presented to all the houses of traditional leaders here in Cape Town the HIV and Aids National Strategic Plan 2007-2011 which no one can find fault with. This strategy calls for the contribution of traditional leaders in the fight against HIV and Aids. In her invitation Minister Tshabalala-Msimang tabled the need, and I quote: “To strengthen the capacity of traditional leaders to design and implement HIV and Aids policies and programmes.”

On that occasion, I reminded the hon Minister how the task team that we set up in 2002 did not take off because the KwaZulu-Natal provincial government refused to provide any resources, in spite of the House of Traditional Leaders being listed as an entity in terms of the Public Finance Management Act as capable of receiving and spending public funds, a law passed by this House. Our colleague, Inkosi Patekile Holomisa - Ah! Dilizintaba - informed me after I’d spoken that he and Inkosi Matanzima - they had spoken before me - had pointed out the same lack of resources and capacity.

The President was made aware of a broad range of issues affecting traditional leadership, including the capacitation of the house, and requested hon Minister Mufamadi to visit the Premier of KwaZulu-Natal, together with Inkosi Mzimela, to deal with the matter. This never happened.

Responding to the MP Mr Smith’s accusation in this House, during the Vote for his department, he said, and I quote: “The government is being totally dishonest in dealing with traditional leadership.” Hon Minister Mufamadi stated, ipsissima verba [the very words], that “what is happening in KwaZulu-Natal is a matter of grave concern to us”.

The Chairperson of the National House of Traditional Leaders, Inkosi Mzimela and I, have been in discussions which led to the agreement that we are going to intervene and exorcise this ghost from the body politic of our country. There was a peal of laughter. He then personally assured me, as we walked up the steps after the session, that he would go to KwaZulu-Natal, as originally instructed by the President, to deal with the issue of capacitation of traditional leaders. None of this has happened.

In his address, the President spoke to the whole nation and said, as never before, that we should address common challenges with every strain of every sinew, as a collective. I don’t think there is a worse challenge than HIV and Aids. Traditional leaders should be part of the envisaged HIV/Aids war room. We want to be in that room too, Mr President. What else can we do, being mere spectators and not role-players, in spite of anyone sane recognising that without them, life-saving HIV and Aids programmes cannot succeed in rural areas?

What progress can be made when an hon Minister of state, like hon Minister Mufamadi, has the temerity to say one thing in Parliament and do the opposite - conducting himself as if he abhors telling the truth even when in Parliament? It is no surprise that plans are being considered to repeal provincial powers even though the matter has not been discussed in this House beforehand. This conduct exemplifies the lack of integrity which is so far removed from the ANC culture of its founding fathers, but which has regretfully become usual.

The President has given us as a good framework in many respects. I challenge any one of you who can provide a better framework than that which was presented by the President, but I would like to say, with Robert Burns:

The best-laid schemes o’ Mice an’ Men Gang aft agley …

Our usual way of doing business for the past 15 years has been unusual. Indeed, it has not been what it was supposed to be. If we accept this, we can move forward and do what is right in the first place. I have not said anything today which is substantially different from what I have said in the past 13 years on these occasions, for the challenges have not changed. What must change is the way in which we deal with them, which requires us to do more of what is planned and engage less in political posturing.

There is a temptation in this House to find the easy way out of the huge institutional crisis in which our Republic is plunged by resorting to political opportunism and politicking. I urge that we not to walk down that road. The urgency of the time requires focusing on the real issues affecting our people, which have not changed save for their having become worse.

What must change is how this Parliament deals with these issues. Thus far, this Parliament has failed in its role. Ours has been a Parliament on call, operating at the bidding of the executive, with no own capacity to analyse, criticise, lead or hold accountable. This Parliament has failed our Republic because it has been led by the nose rather than exercising its constitutional responsibility of leading, formulating laws and developing policies.

Bills are handed down to us to merely approve. Any review of the about 900 pieces of legislation passed by this Parliament in the past 13 years shows how whatever was introduced by the executive was approved by us with little or no substantive change, and that almost nothing was generated from within Parliament at its members’ initiative. The present crisis must bring about the centrality and pre-eminence of Parliament. If there is a power vacuum, it needs to be filled by the expanded policy role and leadership capacity of this Parliament.

We can only save our Republic by doing what the Constitution requires of us, which is not only for the judiciary to be independent, the police to be effective and our Public Service to be honest and motivated, but also for us, as the legislative branch, to become the powerhouse and real centre of policy formulation, legislative initiative and political accountability; which would indeed be “Business Unusual” - but a necessary one, this time.

A year ago, I tabled a Bill which would have split the offices of the head of state and the head of government. Irrespective of what one may think of it, it was a timely, urgent and relevant proposal, but this Parliament did not even consider it because it was not part of the government’s agenda. Yet, as a legislature we have the responsibility and prerogative of setting that agenda.

Talking about the election, which my colleagues in the DA called for, I don’t know how they can call for an election before we get people who are going to count the votes, because the ruling party taught us in Polokwane that we should not rely on computers, and that, in fact, all the votes must be counted by hand. [Laughter.] [Applause.] Let us take the initiative so that we may still capture out of the jaws of regret, some of the lost opportunities and with them fulfil our people’s hope. Dlamini! [Applause.]

Mr B H HOLOMISA: Madam Speaker, hon President, Deputy President and hon members, the hon President referred to his esteemed mother during his speech, and her question of whether this country is still on course. As you are well aware, she, like you and I, calls the Transkei region of the Eastern Cape her home.

Today, I wish to hand to you a report on the state of the infrastructure of the Transkei, which was handed to me on 24 January 2008, in Mthatha, by the citizens of the Transkei from each of the 28 magisterial districts, including local government councillors from all political parties.

Like all other people who were subjected to apartheid oppression, there was a legitimate expectation on their part that the infrastructure of their region would be upgraded to be on a par with that of the rest of South Africa.

The truth must be told, as you also said in your address, sir. The NP regime had always viewed that region as a hotbed of revolutionaries and therefore prejudiced the region when it came to infrastructure and development. We hope, therefore, that this report will be taken into account, along with the other challenges being tasked to the “national war room” that you referred to.

The nation is gripped by uncertainty. On various fronts we are confronted by ominous developments. It is true that the way forward for this country must be based on a unified effort by the entire nation. On that, we agree.

Last year, in this House, I expressed the view that we require a national indaba or convention to deal with various national issues. Mr President, you acknowledged that and even suggested some issues such as social cohesion, which could be dealt with at such a forum.

I followed the matter up in writing with the Speaker, but never even received acknowledgement of receipt of my correspondence. I believe it is not too late for your government to identify an institution such as the Commission for Human Rights to be tasked to prepare for such a national indaba. We can’t leave it to the Speaker anymore. Such a national convention would review the progress we have made since 1994, and identify whether there are any inherent defects.

I take note of what you have said, that you don’t agree with the Charles Dickens’ quote, but some people outside this House disagree when they observe rogue business elements, wanted by the law, going out of their way to finance the youth and future leaders of this country and encouraging them to attack the judiciary and other democratic institutions.

That move can never be equated with wisdom - these are the same people who financed and promoted tribalism with T-shirts displaying ethnic slogans - nor can it be correct that this generation of so-called leaders attacks elders such as Bishop Tutu, Barney Pityana and others without a sign of being called to order by their party leadership. We are talking about a culture of respect that leaders such as those of us in this House should be cultivating, and not undermining because it serves some short-term party- political or factional agenda.

At this national convention we might talk about another major challenge facing the nation regarding the fight against crime. Criminals are becoming heroes. Robbers and murderers in many communities are now becoming role models that our youth want to emulate. We should not be surprised if such a culture permeates our society and even this House.

The basic idea of the ethics of right and wrong and of punishment for crime is not being promoted. That is the reason we are faced with this massive crime wave. Don’t you think, Mr President, that the moral fibre of the nation is shaken to its core when the national Commissioner of Police counts drug lords amongst his friends? Your politely-worded reference to the future of the Scorpions, sir, the Khampepe Commission and criminal justice reform seems to contradict the ANC resolution to disband the Scorpions. We are waiting with keen interest for full details.

One thing we have noted is that the concept of combining investigation and prosecution has delivered results. For some people to now advance the academic argument that such a combination cannot be allowed is misguided. Any attempt to blackmail this House – and I dare say even your government, sir - to bend backwards and forwards to accommodate the funders and campaigners for the disbandment of the Scorpions will be resisted at all costs, including resorting to legal action.

We cannot be the victims of this lynch-mob psychological campaign. Perhaps we should be looking at creating an overarching ministry of crime prevention for the entire criminal justice system, covering the SA Police Service, Justice, Correctional Services, Home Affairs, and Intelligence. Such a ministry could help to better co-ordinate our crime-fighting resources and alleviate unnecessary tensions between various security departments and units. Specialised units such as the Directorate of Special Operations would be accountable to this ministry.

Mr President, you have referred to somebody who suggested a quote to you. Would such a nameless somebody, looking into this House from outside, not think that this preoccupation with disbanding or dissolving the Scorpions was sheer foolishness, given the other major challenges facing the nation, especially since the people who funded and drove this campaign against the Scorpions were wanted by the law themselves?

It is still fresh in our memories how easily this country spent R13 million on the Hefer Commission in order to deal with the allegations of one journalist who was part of this campaign against the Scorpions and its leaders. All of the witnesses whose evidence was later discredited were either under investigation or related to people under investigation for a range of crimes.

These origins and reasons that gave rise to the 24 Apex Priorities identified are well-documented. There has been some progress in certain areas. However, the greediness and looting of state resources by some, be it at local, provincial or national government level, is gradually dashing hopes that these priorities will ever be addressed.

Experience has shown elsewhere that members of an outgoing government tend not to focus as they either look for positions or intensify their looting. Thus the so-called “national war room” will need to be vigilant against this.

Regarding the energy crisis, I believe there is an urgent need to appoint an independent panel of experts to investigate the entire electricity crisis and propose a complete package of reforms and policies to save us from even greater disaster. For too long, we have heard a continuous stream of excuses and reasons for this crisis.

Okokugqibela, tat’ uMtshali, mandibhekise apha kuwe mnt’omdala. Xa urhulumente – ndiza kukucaphulela nje kumavana am - nimwisa, njengokuba benikhe namkrobisa ePolokwane, kufuneka niyiqhube inkqubo nide niye kuyiqukumbela, ningayiyeki esithubeni. Ndibhekisa kuni ke, maKomanisi. Niyibambile! Enkosi. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)

[Lastly, I would like to direct this to you, Mr Mtshali, my elder. I will draw from the little experience that I have - when you overthrow the government as you tried to do recently in Polokwane, you have to carry that to its logical conclusion. I am focusing on you, Communists. You get my drift! Thank you. [Applause.]]

The MINISTER OF SAFETY AND SECURITY: Madam Speaker, Comrade President, Comrade Deputy President, hon members of this House, the ANC has declared 2008 the year of mass mobilisation to build a caring society. The programme of mass mobilisation will extend over the length and breadth of our country and, in true ANC tradition, we will address the interests of all our people in the various communities where they are located. [Interjections.] It will draw all our people, united in action on the ground, into the project to create conditions for a better life for all in South Africa.

The opportunities that exist for a better life for all and the challenges we face will be laid bare for all to see and appreciate so that the good that is there is seized with both hands and the bad is transformed into opportunity. [Interjections.] One of the challenges we will have to tackle, of course, is crime and criminality, fraud and corruption.

The fight against crime has always been part of the priorities of the ANC that defined the programme for the advancement of the cause of our people. There has hardly been an anniversary statement since we took power in 1994 which has not raised the matter of crime and criminality.

In various discussions, before 1994, we spoke about crime and how, under a democratic dispensation, that matter would be tackled. At the centre of our crime-fighting project we put the masses of our people and said: No police force, however strong, would be able to do its work if it did not enjoy the support and active participation of the people in the fight against crime.

The ANC this year has called upon all our people to sharpen the anticrime campaign. Among other things, the anniversary statement said, and I quote:

In reviving the culture of mass mobilisation, we must seek active partnerships with civil society, nongovernmental organisations and community-based organisations and all other formations to form a broad front against crime and all social ills afflicting our communities.

We will seek to work with religious formations and traditional leadership throughout the country, from urban areas to the countryside, to intensify the struggle against crime. We also acknowledge and appreciate the ongoing contribution of the business sector in the fight against this scourge.

The structure and functioning of the different elements of the criminal justice system also received attention during the ANC anniversary, given the importance to the fight against crime and criminality of a properly functioning system of investigations, prosecutions and detention.

You also raised the matter on Friday, Comrade President, when you said:

Cabinet has agreed on a set of changes that are required to establish a new, modernised, efficient and transformed criminal justice system.

You gave an indication, albeit brief, of how the criminal justice system would be revamped, saying:

Among other things, this will entail setting up a new co-ordinating and management structure for the system at every level, from national to local, bringing together the judiciary and magistracy, the police, prosecutors, Correctional Services and the Legal Aid Board as well as other interventions including the empowerment of the Community Police Forums.

The ANC agrees with you, Comrade President, that if the relevant initiatives are carried out in an integrated and complementary manner, the fight against crime will be greatly enhanced. Mass mobilisation against crime must target all forms of crime, especially those between relatives, friends and acquaintances and organised crime.

Various surveys that have been done by government and independent entities have shown that the greater number of serious and violent crimes, where murder often occurs, happen between people who know one another. They occur within the social environment where victim and perpetrator are usually found together. The answer to social crime, whose victims are mostly women and children, should include a mindset change among our people. Programmes like the moral regeneration campaign should be part of the vehicles we need for the mindset change.

That change, among other things, must include a raised level of appreciation of the devastation that is caused by substance abuse. Drugs are killing our children; alcohol is destroying our families.

Those are some of the social ills the president of the ANC, Comrade Jacob Zuma, was referring to in the ANC National Executive Committee Anniversary Statement when he was calling for the establishment of “a broad front against crime and all social ills afflicting our communities”. We must mobilise for that social movement to fight against crime, fraud and corruption in our country.

Organised crime, as you noted on Friday, Comrade President, is a big problem. Drug peddling is part of organised crime; so is fraud, trafficking in people, theft of marine and mineral resources, theft of firearms and vehicles, armed robberies, trafficking in endangered species and theft of copper cables. I have not exhausted the list but all the types of organised crime I have referred to affect our people one way or another.

A revamped criminal justice system must be able to deal with organised crime. It must establish a seamless interconnection between investigations and arrests, prosecutions and sentencing, and imprisonment and rehabilitation. It must be resolute in its campaign to stop organised crime. There must be no mercy for the organised criminal gangs who are undermining the safety and security of our people. What you referred to, Comrade President, as the holistic approach towards revamping the criminal justice system in its totality is a project that must raise the question of organised crime as one of its main priorities.

We need proper measures to deal with organised crime. We need better human and material resources to achieve our goal in the fight against all crimes, especially organised crime. You indicated on Friday, Comrade President, that there would be interfacing, before the end of March, between government and Parliament, on legislation that we require further to enhance our capacity to fight organised crime. You said:

What will continue to inform us as we take this step will be the absolute commitment of government to fight organised crime and improve the management, efficiency and co-ordination of our law-enforcement agencies.

You mentioned in your address the Directorate of Special Operations, also known as the Scorpions, as one of the law-enforcement agencies that handle organised crime. The other one is the Organised Crime Unit of the SA Police Service.

The DSO has been discussed within the ANC many times since its establishment. The discussions covered such questions as to whether the unit was doing its work in accordance with the dictates of its mandate, the way it carried out its investigations and of course, our belief that there is merit in keeping investigative units separate from the prosecution services for better command and control and monitoring, and whether it was proper, therefore, to locate the investigative arm of the DSO within the prosecuting services.

It is now history that the matter was subsequently referred for adjudication to the Khampepe Judicial Commission. The ANC took the matter to its policy conference last year for further discussion and elaboration and presented a recommendation to the Polokwane National Conference for the dissolution of the Scorpions and the redeployment of its investigators to the SA Police Service for central command and control, and the improvement of the co-ordination of the work of all law-enforcement agencies that deal with organised crime.

The ANC is not reckless when it pilots a move to change for the better the strategies and tactics that are necessary to fight crime. [Interjections.] We are not averse, in the ANC, to revising our stance in the face of changes in the tactical terrain to produce better circumstances for our people. We are a dynamic organisation that has always seized the moment to rise to higher levels. That is why we continue to occupy the moral high ground. [Interjections.]

It is not reckless when the ANC determines that the fight against organised crime requires a re-look and the better utilisation of the services the country has, to be better able to deal with that scourge in a better co- ordinated manner under the aegis of a single command and control point.

We want to place on the table a proposal for the creation of a better crime fighting unit to deal with organised crime where the best experiences of the Scorpions and the police’s Organised Crime Unit will be merged. The best investigators from the two units will be put together under the SA Police Service as a reconstructed organised crime fighting unit. The Scorpions, in the circumstances, will be dissolved and the Organised Crime Unit of the police will be phased out … [Applause.] … and a new amalgamated unit will be created. [Interjections.]

We note with pride the good work that has been done in the past by the law- enforcement agencies and the many successes scored in the fight against organised crime. Both the police and the Scorpions have done well in that respect. There are many criminals who are in jail serving long sentences after they were busted by the crime fighting units.

Organised criminal gangs are also targeting the Department of Home Affairs. Quite clearly, they have infiltrated that department and, therefore, have recruited corrupt Home Affairs officials to supply them with all the country’s legalising documents, from birth and marriage certificates to IDs and passports.

As “Business Unusual”, Comrade President, a process of vetting of officials who handle the crucial aspects of the work at Home Affairs must be introduced. Such vetting must be thorough to ensure that only trustworthy officials are assigned to sensitive work in that department.

We continue to call for improvements in our immigration policies to ensure, among other things, that our legalising documents are protected. We support the department’s turnaround strategy and hope that it will help to obviate all the weaknesses there.

We have noted also that Home Affairs, working with the National Treasury, Intelligence and the police, are developing a new border control strategy. That strategy will enhance the fight against organised crime and stem the tide of the illegal entry into our country of foreign organised criminal gangs. In conclusion, I want to reiterate the words of the ANC president, when he said in the NEC anniversary statement:

We cannot allow criminality and lawlessness to undermine our hard-won freedoms and hinder the progress of our nation. We must act now, and act together.

Thank you very much. [Applause.]

Mrs P DE LILLE: Madam Speaker, hon President, hon Deputy President: Mr President, as you rightfully pointed out in your state of the nation address, our country is faced with a number of challenges. It was good to hear your honesty about our people’s concerns and government’s failure in reaching its goals.

However, let us not have another year of failed promises. The ID wants to see less talk and more action. It is the failure to act decisively that has allowed our problems to grow. Half a million South Africans who desperately need antiretrovirals are not receiving them because of our government’s failure to act earlier. If you had acted earlier in implementing the Khampepe Commission’s recommendations concerning the Scorpions, we would not be facing the possibility of their disbandment due to political interference.

But I think it’s very arrogant of the Minister of Safety and Security to undermine the authority of Parliament and come and stand here and say, “We are going to dissolve the Scorpions.” [Applause.] The Scorpions have been established by an Act of Parliament and the procedures must start here in Parliament. [Interjections.] It is not for the executive to announce the dissolving of the Scorpions. [Interjections.]

Mr President, if you had acted earlier concerning the National Police Commissioner, Jackie Selebi, instead of uttering the phrase, “I trust you”, we would be in a much stronger position in our fight against crime.

Dr S M VAN DYK: He should be suspended! Jackie Selebi should be suspended!

Mrs P DE LILLE: The ID calls upon you to act on the needs of our people. Government must provide greater support for the millions of poor and unemployed in South Africa who are now subjected to the triple burden of spiralling food, fuel and electricity prices.

While we welcome the lowering of the pension age for men, we also call on government to extend the child grant for children from 14 to 18 years and also to extend the school nutrition programme to high schools.

Hon President, you, like the ID, have complete confidence in our people to overcome the immense challenges we face now. We know what it is to struggle and to sacrifice for a collective goal. It is the resilience, inner strength and optimism of our people that overcame apartheid. I know we can overcome any challenge that is put in the way of achieving a prosperous South Africa.

The sinews of our collective body are, however, already being strained. Our workers are working hard and the 40% of our people who are unemployed are struggling to find jobs in an economy that is not growing to its full potential. The ID believes that unemployment is the number one challenge facing the country and that government must act with much greater urgency in addressing this issue.

The ID has full confidence in the people of South Africa but we have lost confidence in the government and its leaders. Government is constantly calling on our people to make sacrifices that you yourselves are not prepared to make. [Interjections.] Inequality has grown over the past 14 years and the people have been forced to survive in the most dehumanising conditions while others have accumulated large amounts of wealth.

The people are asking you, hon President: What more can we do when we are already doing our work? What more can we do when we are already slaving away for a better life? What more can we do when we have kept our contract with the government? What more can we do when we go down the mines each day, putting our lives at risk, while government cannot ensure that there will be enough power to bring us back out?

While our people are forced to work day in and day out at the risk of being fired by their bosses for incompetence, government has put thousands of jobs of our people at risk and it is not held accountable. For the ID, “Business Unusual” must start with action finally being taken against those political leaders who have clearly failed South Africa.

HON MEMBERS: Hear, hear!

Mrs P DE LILLE: In standing up for political accountability, the ID is upholding its constitutional mandate to hold government to account. Since the inception of the Constitutional Court, government has been guilty of disregard for the Constitution on several occasions, resulting in the Constitutional Court ruling against government in 55 cases.

Hon President, we have heard your list of promises before. One of the reasons that they have not been fulfilled is that you have failed to act against Ministers who fail to implement government policies and plans. The time for political accountability is long overdue.

We fail to see how we can trust those who created the electricity crisis to also now deliver us from it. It is unacceptable that they are still making decisions on our future energy path and committing us to spending billions of rands. We will never believe government’s spin that the electricity crisis is the result of unexpected economic growth because our economic growth has been lower than what government has predicted. The fact that the ANC will now benefit from the building of new power stations through Chancellor House adds insult to injury …

Moulana M R SAYEDALI-SHAH: Shame! Disgraceful!

Mrs P DE LILLE: … and shows the importance of our motion today in setting up a multiparty committee on public funding.

In view of what I have just said, I want to inform the House that I shall now deliver a written notice of motion to the Secretary in terms of the Rules, namely:

That, as a result of government’s failure to prevent the prevailing energy crisis, the House has no confidence in the President and, therefore, in accordance with section 102 of the Constitution, he and his Cabinet must resign.

[Interjections.]

In this time of crisis, hon members, South Africa needs a government that can inspire the people and reassure them that solutions can be found if we are united. The crisis is affecting every single one of us in this country, black and white, rich and poor, and we need accountability from this government. Thank you. [Applause.]

Dr G G WOODS: Madam Speaker, Mr President, hon members, having listened intently to the state of the nation address over a number of years, and having listened to various Ministers giving their state of department speeches each year at budget time, one cannot help but become aware of the standardised two-part format upon which these speeches are based.

First, there is the cursory overview of why things are generally going well, followed by the itemisation of specific issues to be focused on in the year ahead and a range of ideas for dealing with those issues. This approach creates a sense of good progress and of plans to progress further in the year ahead. The psychology is generally effective, particularly for the ruling party’s constituency.

I highlight this observation for a number of reasons which will become apparent. But, in the first instance, I raise this issue because I have noted in recent years that you, Mr President, have also come to rely on this tactical formulaic approach. And having appreciated the more composite and insightful theme-driven speeches of your earlier years as President, I am disappointed.

However, to critique the approach itself, the opening overviews usually fall far short of a frank and comprehensive account and are rather a selectively assembled picture depicting progress and promise. Hence, we might question the credibility of these important speeches and be less surprised by some or other subsequent failing in government, or departments, which we had been led to believe was operationally ascendant. These speeches often go on to represent unresolved problems alongside yet another set of corrective plans each year which deductively suggest inefficient management.

For those that might doubt this contention, I suggest you revisit the annual budget speeches of the individual ministries over the past ten or so years - those are the speeches that they give to this House in justifying their budget allocations - and note the annual assertions of progress followed by their latest repertoire of plans and how these will deal with the same issue they ventured solutions for in the previous year’s speech.

At the same time, look at how these issues in question were reported on in the corresponding annual report. The fairly emphatic finding which emerges from most government departments is that the political heads of the departments very often have a limited or misdirected understanding of the state of affairs within their departments and do not grasp the significance of failed plans, poorly implemented policies concerning problems which persist and which, in quite a few cases, have lingered for more than a decade. For us in Parliament, this finding implies weak accountability and failed oversight.

Over how many consecutive years has the Department of Justice been giving us encouraging reports and telling us of their latest ideas of how the court backlogs will be dealt with and how the legal system will become accessible to the poor?

For how many years have various Ministers of Education told us they were on top of the matriculation problem, the maths and science pass rate problem, the standard of teachers problem and the appalling throughput rate of our tertiary institutions problem?

How many times has the Department of Trade and Industry found it necessary to produce yet another plan to fix its failed industrial policy, its failed small business development policy and its failed fixed investment and export growth policies?

Then there is the Minister of Labour and his vacillating initiatives to meet the skills shortage problems which hold back economic growth. There are the inhumane conditions in our overcrowded prisons which go on year after year; the crime that ravages our townships; the levels of corruption in government; the dysfunction of the Department of Home Affairs, and there are many more such examples.

I have just identified certain of the ongoing situations for which resolution is necessary if we are to achieve a stable and successful nation and, may I say it, a better life for all.

Mr President, it is almost as an aside that I register, in recent years, the seeming conformity of your state of the nation address to that of the executive template to which I have referred. In this regard, it is interesting to note your significant repetition of issues albeit with some shifts in perspective over the past three or four years concerning problem areas of government and the new initiatives you introduce each year.

My intention is not to paint a picture of a completely ineffectual government, as Nadeco does recognise and is grateful for the substantial successes of the ANC government that have been recorded. However, the situations I have referred to and the examples I have cited speak for themselves and, unfortunately, speak to those who might have concerns about the future of South Africa.

While the attitude towards many of the country’s more ominous problems on the part of some of the executive remains inexplicable, the concerned observer might well turn his attention to the administration and their responsibilities in this regard.

The situation here, as many from all spheres of our society have observed, is that the shortage of necessary experience and acquired skills leaves government pitifully short on the ability to manage its way out of big problems other than to churn out expensive and poorly conceived plans.

Yet, in a way, it is wrong to blame these directors-general and hierarchies of lower managers. How many of us would refuse a high-paid, high-profile, prestigious position simply because we had limited relevant experience? The blame should surely be with those who approve the policies which allow such appointments in the first place.

We observe that government has identified the critical management positions across government and has had organisational experts draw up qualification- linked profiles for the sought-after managers but then it tends to all fall down at the actual appointment stage by constantly and consistently filling senior posts with individuals who frequently fall short of predetermined criteria.

For example, there have been a number of directors-general appointments over the years that we know of where the position was given to intelligent and degreed individuals who had no management experience at all, let alone having worked in an organisation with a budget bigger than that of most private sector corporations. In dozens of cases which we all hear about, these individuals move on after a year or two when the wheels are about to come off.

Yet government persists with such appointments at great cost to the country and in defiance of conventional wisdom. An audit of the CVs of our senior managers would say it all.

It might be suggested that government’s tendency to confuse promises with achievements and to accommodate the shortcomings of its administration are symptomatic of a government that has become complacent. This is not intended as a provocative comment but one that resonates with international experiences – experiences which show why governments, especially those which face limited challenges at the poll, so frequently lose functional objectivity, and how the longer such governments enjoy their comfortable stay of tenure, the less rigorous their analysis and the more erratic or lacklustre their performance.

I end by turning to the opposition parties, including my own, as it is a Nadeco concern that I articulate, and remind them that they all share a responsibility for the ANC’s failures. There is a general correlation between complacent and underperforming governments and the weakness of political opposition. Thus, while we cannot be directly blamed for the problems that threaten the country, we must, at least, acknowledge the consequences of our general ineptitude and of the absence of any meaningful opposition influence.

As we, little parties, continue in our separate little corners with inflated dreams of the next general election and of the celestial qualities of our party leaders, we will individually and collectively remain as ineffectual as we presently are. I thank you. [Applause.]

The MINISTER FOR JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Madam Speaker and hon members, 27 April 1994 is an unforgettable day to millions of South Africans who celebrated the new dawn, the promise of freedom and equality and the possibility of restored dignity to millions. It was the onset of building a just and caring society. These were heady days; a time of great hope. The country was vibrant with positive energy; people in their organised formations were seized with defining policies for a post- apartheid South Africa; and women were mobilised, for the first time, like never before.

Do you remember all those workshops, the conferences and animated get- togethers in the towns and rural areas, at universities and colleges, in school rooms, at taverns and at the chiefs’ gatherings?

Thirteen years on, there has been a significant change for the better, definitely greater access to economic opportunity and an improved social life for thousands. Indeed, there is a huge paradigm shift in the arena of ideas. Today, progressive thinking is dominant.

Most South Africans ascribe to the values enshrined in the Constitution. For example, notwithstanding their different political backgrounds, hon members Professor Kadar Asmal and Mr Koos van der Merwe would see themselves as fervent advocates of human rights.

In society at large, there is more tolerance of differences, greater interracial connectivity and greater awareness of human rights such as equality between men and women, workers’ rights – all workers are vocal, not only those from the progressive wing – and the advancement of socioeconomic rights. For example, political parties in this House will assert that they are pro-poor; that the poor should be at the forefront.

Maybe this answers a question that you, Comrade President, asked many years ago in this House, whether, as South Africans in our different spaces, we could still say that we are one and we have consensus on some important issues that relate to our lives. In other words, whether there is convergence around what is important to South Africans. President, it is correct that we say we still live in an age of hope. This is an age of hope. I could be petty and remind all of us in this House that we do not see the signs of the past. Remember signs like “blankes” and “nie- blankes”? I think that even in our memory the crude symbols of the past are fading.

You can tell that the members on my left are such strong adherents to the Constitution - so they tell us. [Interjections.] Well, that shows that we are in a new South Africa. We all are and we all should be. [Interjections.]

No, it is not a gift from me, but you have contradictions in the way you say things and do things which show that you are still learning.

Mr President, during your state of the nation address, you addressed Parliament about 24 Apex Priorities for the government in its last term of office. You urged us to spare no effort in meeting the goals that we have set for ourselves. You said it should be “Business Unusual”. The ANC also said that we should be in our trenches out there mobilising our people for a better life. Amongst the 24 Apex Priorities you mentioned, President, is the fight against crime and the creation of a safe environment for all South Africans.

We, in the ANC, recognise the imperative of an efficient criminal justice system for socioeconomic development. The ANC is committed to the fight against crime and creating a safe environment for all the people of South Africa. It is in this context that we are committed to doing all that we can, indeed, to improve the justice system in our country. We are committed, for example, to the restructuring of the court system and to the transformation of the judiciary and the legal sector.

In the past three years, there have been ongoing discussions with all stakeholders and the judiciary about the transformation of the judiciary. I would like to thank the judiciary and the legal fraternity for their invaluable contribution to the discourse on transformation. Members of the Sidebar and the Bar have contributed immensely in the drafting of the Legal Services Charter, which was presented to me in November 2007, and which I will put before Cabinet and bring to Parliament in the first term of this year.

I must say that great strides have been made in the conceptualisation of a transformed judiciary. The issues that arise around the transformation of the judiciary are of great importance. It is about how we go about having a single judiciary. It is about the whole relationship of important courts in the country – the Supreme Court of Appeal, the Constitutional Court and the Labour Court. Thus it is important that there should be discussions and I must say that Nedlac is also engaged in these discussions. In the meantime, we have put very important pieces of legislation before Parliament for the renaming of the High Court Divisions. Every time I met my colleagues they would say …

… hhayi bo, ikuphi iBophuthatswana? Njengoba ngithi kukhona izinkantolo e- Transvaal bathi kukuphi lapho? [… Hey, where is Bophuthatswana? As I am saying there are courts in the Transvaal, they ask, where is that?]

So, I am pleased to say that we are changing that. I am confident that before the end of this year, as you have instructed, President, there will be legislation for the restructuring of the courts before Parliament. Of course, this is going to be preceded by a paper – elements of which are being discussed by us and the legal sector.

Last year was also an important year. We completed the draft policy on the South African traditional court system and we should come before Parliament with the Bill.

Once again, I would like to thank all those who have participated and, Shenge, you have been very kind to us. I heard that you have graced one of the meetings in KwaZulu-Natal and made an immense contribution to the policy and the draft that we will bring to the attention of the public quite soon.

We have done this without fanfare, and these were difficult discussions, but I am pleased and I thank all the persons, in particular our chiefs, for being part of the discussions that we have had. I am also told that we have had stakeholders including women’s groups participating in these discussions.

One important area that my colleague Charles has touched on is the whole revamp of the criminal justice system. I would also like to say something about that. It is a two-pronged approach. There is a review that was made as a result of a decision taken in 2003. This is a project of the Justice, Crime Prevention and Security cluster, namely the review of the criminal justice system.

I say it is two-pronged because there is the research level where both secondary and primary research is undertaken, with inputs from relevant institutions, including tertiary institutions. There is also an important intermediary process, which we have come to call the review of the criminal justice system as well because it is that. This involves the collation of information that has partly been gathered by the research unit, but also information that is within all the departments relating to the criminal justice system.

This project is very important. It is a partnership between us and the business leadership. An important outcome of this process is the plan of action which can be implemented, and this is the one we are referring to. The collated information, which I now call a study, indicates gaps and also where we have no capacity along the crime-fighting chain, as a result of which we have immediately embarked on correcting some of the weaknesses that have been discovered through this intermediary process - the criminal justice review.

Of importance is that it found, as one of the big weaknesses in the system, not only a lack of capacity but poor co-ordination and there was a similar finding by Khampepe. With regard to Khampepe, it was not along the whole criminal justice system but Khampepe had a specific focus and this related to the Directorate of Special Operations in its relation with other JCPS departments.

We have to address this particular challenge of co-ordination. [Time expired.]

Business suspended at 16:08 and resumed at 16:30.

The DEPUTY SPEAKER: Order! Welcome back from the break.

Ms H C MGABADELI: Madam Deputy Speaker …

… akwandele muntu ukukhuluma emva kokuthi abantu kade besaphumule. Ngiyabonga. [… it is a privilege to speak after people have been on holiday. I thank you.]

Madam Deputy Speaker, hon President of the country, distinguished guests, friends and comrades, I greet you all this year. I quote:

… the relay race of continuous rebirth so that the dream of a better life for all South Africans becomes a reality.

That was said by our President on Friday in his state of the nation address.

This debate salutes all the efforts dating as far back as the years we cannot remember, when a black person fought against all wars that were waged against him or her, including the wars of dehumanisation and the wars in which the ANC ended up formally forming this organisation in 1912, with its members ending up being scattered all over the globe. Some even died there and some of them still cannot be accounted for today.

We, as the ANC, and those who see the logic in caring for those who brought this nation to where it is today salute the resolution to form the Veterans’ League of the ANC, its context and impact, both sociologically and economically. We salute it not just in isolation but within the spirit of continued mass mobilisation, unity and a caring society. The ANC, like so many other organisations, cares about their liberators and passed this resolution that I have spoken about. To all of you …

… kufanele sikhumbule ukuthi … [… we must remember that …]

… we must all remember that we are not talking about veterans who were fighting another country; we are talking about veterans who were fighting a war that was caused by apartheid. I happen to know, because my grandmother was working as a domestic servant for a family of white citizens. We were all affected; they were also affected because their son was involved. Almost half of my family were affected, but …

… ngiyabonga ukuthi sesila esesikhona manje. Ngiyabonga kuMongameli, kubaholi bethu kanye nakubo bonke abantu abalapha abavela kuwo wonke amacala. Ngiyabonga. Ngicela sikhumbule maqabane ukuthi kwakungemnandi ngesikhathi sitshelwa ngaso leso sikhathi ukuthi uMkhonto Wesizwe awuqedwe. Kwakungemnandi. Kwakungakabi yisikhathi. Kwenzeka izinto eziningi ezibuhlungu ezidinga isikhathi ukuthi sibuyele emuva sibheke ukuthi yikuphi okwenzeka ngendlela eyiyo nokwenzeka ngokungeyikho. (Translation of isiZulu paragraph follows.)

[… I am grateful that we are where we are now. I thank the President, our leaders and everybody present here who come from all walks of life. Thank you. Comrades, I want us to remember that it was not nice when we were told that Umkhonto we Sizwe should be disbanded. It was not nice. It was not the right time yet. There were so many painful things that happened for which we needed some time to look back and reflect on what was done right or what went wrong.]

However, in the spirit of unity that the President spoke about on Friday, I will talk later about what I am requesting the President and our leaders to allow us to do.

To ensure that this unity of the mobilised masses towards the building of a caring society is sustainable, we need, among other things, to ensure that all organs of national security are on their toes, day and night, and that they are all willing to be monitored, reviewed and redirected to combat different forms and kinds of robbers that are robbing our land and its resources.

We need to ensure that there is a sharp and fast critical analysis of the rising mountains of private security companies, because they are not organising the masses - they are just private security companies. Let them be replaced by collective security in the form of empowered people, street committees and people that are well empowered.

The opportunity of the presidential pardon that will end on 16 April will add to the process of healing by genuine exposure for the purposes of real closure. We need to utilise it very well.

Uthe uMongameli … [The President said …] … our nation should unite now as never before and strain every sinew of its collective body to address our common challenges and keep alive the dream that has sustained all of us as we travelled along the uncharted road towards the creation of the South Africa visualised in our Constitution, not in our different constitutional parties but in our Constitution.

I want to pause for a moment here and say that I agree with the President. However, I am going to beg everybody. Some of us who were not spectators when we were requested to respect the Truth and Reconciliation Commission were a little hurt a few weeks ago. You know, we were forced to forgive, forget and toe the line but when the President asked for forgiveness for the electricity and energy failure, most South African citizens said it was not enough …

… abantu esinabo lapha ePhalamente basho kahle bathi akwenele ukuxolisa. Kanti thina sasenziwa izilima yini uma kuthiwa asixole? [Ihlombe.] Sasingakhulumi ngogesi thina kodwa sasikhuluma ngegazi, ukulahleka kwabantu kanye nokuvunjululwa kwabantu ababengcwatshwe lapho singazi khona. Ugesi yinto esingayazi ngoba ngisho nasemakhaya nasezindlini zasemalokishini ugesi wawungekho. Kwakwakhiwa izindlu zangasese le kude bese uhamba ngomnyama uye endlini yangasese ugula. Size sazifakela thina ugesi. Angisho ukuthi asiwufuni. Siyawuthanda kodwa ngeke uthi ukuxolisa akwenele kodwa thina satshelwa ukuthi asixole. Sesize siyaselula lesi sikhathi sokuxolelwa ukuze wonke umuntu ongakaze axolelwe kahle aqhubeke nokuxolelwa. [Uhleko.]

Ngizocela sizigade ukuthi sithini ngemilomo yethu. Simele umphakathi ngakho asingadidi umphakathi esiwumele. Ngiyacela Mongameli nakubaphathi noma ngingazi ukuthi into engiyicelayo yake yenzeka yini ngesikhathi esedlule, kodwa ngizocela ukuthi yenzeke noma ingakaze yenzeke ukuze lokhu kusebenza ngokuhlangana esikushoyo kungabi eyamaqembu ehlukahlukene. Ngizoke ngicele nje ukuthi kube nemihlangano okuzofundiswana kuyo onke amaqembu lapho sizofundisana khona ukuthi sisukaphi nokuthi siyaphi. Siyeke ukwehlukana ngokwemiqondo yokuthi uvela kumuphi umndeni. Lokho yizinto ezincane.

Sizobe sibambe i-Inter-Parliamentary Union, i-IPU, kulo nyaka ngo-Ephreli. Maqabane, bangani nozwakwethu abathanda izwe lethu i-Kenya … (Translation of isiZulu paragraphs follows.)

[… people who are with us here in Parliament, have stated categorically that apologising is not enough. Were we being made fools of when we were asked to forgive? [Applause.] We were not talking about electricity but we were talking about blood; about people who went missing and about the exhumation of people who were buried in unknown places. We did not know electricity because there was no electricity in rural homesteads as well as in township houses. Toilets were built far away and one had to walk in the dark to the toilet even when one was sick. We eventually installed electricity ourselves. I do not mean that we do not want it; we like it, but you cannot say that apologising is not enough whereas we were asked to forgive. We are extending the time for pardon so that everybody who was not properly pardoned can go on with it. [Laughter.]

I want us to mind what we say with our mouths. We are representing the public, therefore we should not confuse the public we represent. I request the President and the leadership, even though I do not know whether what I am asking for has ever happened in the past, but I will request that it be done so that the collaboration we are talking about does not take place only within different parties. I propose that we hold multi-party workshops where we will educate one another about where we come from and where we are heading to. We should stop these different mentalities which are informed by our families’ background. Those are minor issues.

This year, in April, we will be hosting an Inter-Parliamentary Union conference. Comrades, friends and colleagues who love our country, Kenya …]

… is not stupid as it is going through what it is going through now. We would blame nobody if what happened in Kenya happened here. We still have time to rectify this matter …

… siziphe isikhathi sokuthi ake sibambe imihlangano sifundisane … [… by giving ourselves time to hold workshops to educate one another …]

… as South African MPs who are representing the people of South Africa from different constituencies.

Sizehlise nje … [Just humble ourselves …]

… for the sake of our country and then we go back to our political ideologies …

… sibone ukuthi iyafana yini lento esiyishoyo emibonweni yethu yezombusazwe kanye nalokho esifundisane khona. Ngiyacela. Kungakuhle uma lokhu kungenzeka. [… to see if what we are saying through our political ideologies is the same as what we taught one another. Please, it would be great if that could be done.]

Let’s try it. The road that we need to travel is really long. We cannot travel it disunited as a country. [Applause.]

During the January 8 statement, the president of the ANC said something that I want to share with you. We need to openly confront the roots of our difficulties, correct our errors and move on. We cannot just pretend to be moving on when we don’t know whether we have corrected our errors and understand what we are – I am not going to be long at all. I am not going to count the number of issues. I am counting this because Kenya is just here. Some of us who normally travel for the IPU are saddened by what is happening. They are not fools but very intelligent and yet it happened to them. Let us not beat about the bush; let us come together and talk.

Some members mentioned these things, including the general – where is he? He has now gone out. He and others did mention these things. Maybe we differ in words and terminology but it is the same logic. Let us do it. Hon Speaker, Deputy Speaker, the House, my leaders, I thank you. [Applause.]

Mr N T GODI: Madam Deputy Speaker, comrades and hon members, allow me to join the House in congratulating the President on his address to the Joint Sitting of Parliament last Friday.

“Business Unusual” - what an appropriate imperative! It must, indeed, be business unusual if tomorrow is to be better than today. A better tomorrow must not be a mere speculation, wish or hope but must be manifested by what we do today. Business as usual would imply that a better tomorrow remains a dream perpetually deferred. That would be a cruel visitation on the people; it would disqualify us from claiming to be walking in the footsteps of, amongst others, President Nelson Mandela, the martyred Rick Turner and the outstanding patriot and leader Robert Sobukwe. The values of the liberation movement – of people-centredness - have been contaminated by alien class values of corruption and egocentrism. Business as usual would mean the coexistence of these contradictory values. Therefore “Business Unusual” should go further than mere administrative jacking-up to also imply the reassertion of the superior values of selfless service to the people.

It is the conviction of the APC that we must never lose sight of our international responsibilities, especially to the oppressed people of Palestine. We must never lower our voices in speaking out for and in solidarity with the Palestinians, who suffer daily destruction, murder and humiliation.

Comrade President, Africa remains a continent of challenges and opportunities. There are challenges of peace, reconstruction and development in many parts of Africa. The APC adds its voice of concern about developments in places such as Kenya, Chad and Darfur in Sudan. Our leaders and people can and should do better than what we are witnessing right now.

The APC congratulates you, Comrade President, and the government on fulfilling your Pan-African duties and finding solutions to challenges facing the continent, from the reconstruction of the land of Patrice Lumumba, the DRC, to facilitating the Zimbabwe dialogue. We congratulate you and your government; you have our support and that of progressive Africa.

Comrade President, we do concur that the issues you raised as things that government would like to see realised are indeed important. If done expeditiously and fully, they can fundamentally transform the lives of our people for, indeed, the freedom we have must have material meaning to the poor.

The fundamental challenge is developing the capacity of the machinery of government. Commitments and targets can be set but in the absence of government capacity, they will remain paper commitments. Last year you spoke about the eradication of the bucket system but its unhealthy stench is still a daily experience of many communities in our country such as Boys Town in Crossroads here in Cape Town, which has no toilets, roads or electricity.

To us, the starting point is to deal with the high vacancy rates, especially those affecting management and supervisory positions. The timeous filling of key performance agreements will be a welcome improvement but critical will be the content of those KPAs in relation to the objectives of government and the challenges facing the department.

We firmly agree with you, Comrade President, that improved performance depends on the quality of leadership provided by the executive or Ministers and senior management in a department. This challenge does not, particularly and only, relate to Home Affairs, but can surely include departments such as Defence, Correctional Services, Water Affairs and Forestry and parastatals such as the Land Bank if the Auditor-General’s reports are anything to go by.

We would have loved to hear you, Comrade President, talk about the missed bucket system eradication deadline. Why has the deadline not been met? Is there a new deadline or is it sliding off your radar?

We expected that in dealing with educational matters you would have touched on the matric results. They have been steadily declining for some years now. This is surely a cause for national concern.

Comrade President, you touched on the issue of accelerated land reform, which you did last year, including increased support for new beneficiaries and emerging farmers. We are worried that there don’t appear to have been any dramatic shifts. Support for new beneficiaries is definitely not enough, coupled, of course, with the embarrassing shenanigans in the Land Bank. Can we be assured that this time around there will be visible and dramatic movements, including the fixing of the Land Bank?

The same can be said of our health system. The experience of many in our public facilities is not a proud one. Much effort and focus are needed to provide health care facilities and services to our people, which should confirm that today is better than yesterday. Our capacity to provide support and care for people with HIV and Aids is not up to desirable levels. If we reacted to this challenge in the same way we dealt with the energy crisis, I believe, we would have reached almost all those who need treatment and support. We can and must do more, faster. [Applause.]

Dr S E M PHEKO: Izwe! Azania! [Interjections.] Madam Deputy Speaker, Mr President and Madam Deputy President, the President’s state of the nation address was comprehensive. It was prudent that you dealt with the electricity crisis and reassured our nation that things were not falling apart. Your reference to the issue of the Scorpions and the SAPS was important. You talked about the 24 Apex Priorities. Some are not new; nevertheless, they sound like good pudding, but the proof of the pudding is in the eating.

Implementation is critical. Many members of the public have requested me to mention in my response to the President’s state of the nation address that they are still humiliated by the bucket system after they were told that this degrading system of sanitation would be ended by the end of 2006.

Mr President, there are dark clouds threatening to reverse the relatively few gains of our national liberation struggle for which our martyrs made the supreme sacrifice. Events are calling all of us to a higher patriotism where the spirits of our heroic ancestors have ordered that this nation must come first and its leaders last.

Let it be fulfilled what was said by that great African writer, the Rev J J R Jolobe, when he wrote:

Apho igazi lenu lithe lathontsizela khona Komila intyantyambo evumba limnandi Eliya kuthwalwa ngamaphiko empepho Zithi zonke izizwe zilirhogele.

Serious challenges remain in our country. Land evictions of the African people continue. These evictions are done in the name of development but, in fact, they are done for superprofits. Two weeks ago, I met the Kanana community in Hammanskraal. They said this was happening in their area. The residents are going to the High Court to challenge their eviction on 15 February.

How do the African people enjoy the fruits of liberation when they have no security of shelter or land? What does liberation mean to those who are being evicted from land and houses? Why is there land for golf courses and game reserves but not for decent homes for many of our people?

Mr President, this may sound monotonous and tautological but I must repeat it: There must be legislation forbidding the sale of land to foreigners. [Interjections.] Those who need land for foreign investment must have land leased to them. The sale of land to foreigners when our own people remain dispossessed and landless, and live in inhuman squatter camps has disastrous consequences for the future of our country.

On 21 November 2007, you made a historically bold statement in this House in regard to presidential pardons of especially former freedom fighters such as the Azanian People’s Liberation Army, Apla. Hon President, we are not questioning the TRC decisions, nor are we casting any aspersions on the integrity of the commissioners but for the presidential pardons process to achieve its intended objective, I appeal to you to approve applications that were turned down by the TRC.

I advance six reasons for this appeal: The TRC had flaws although it did register many achievements in a difficult and unprecedented situation. The TRC ignored the International Convention on the Suppression and Punishment of the Crime of Apartheid through which the United Nations declared apartheid a crime against humanity. People such as the late P W Botha refused to appear before the TRC but they were never imprisoned for the crimes of apartheid. In fact, Mr P W Botha was offered a state funeral when he died.

Crimes committed by the perpetrators of apartheid exceeded the offences committed by the victims of apartheid, for instance, numerous massacres of the victims and heinous atrocities by the creators of the “Third Force”.

The victims of apartheid were disadvantaged when appearing before the TRC in that they had no adequate legal representation. Many applied for amnesty from prisons. The perpetrators of apartheid, on the other hand, applied for amnesty from the comfort of their homes and cushy jobs. They had first- class legal representation. For example, the state spent R6 million on Eugene de Kock alone.

Mr President, free education for the poor is the best national …

The DEPUTY SPEAKER: Order, hon member! I did allow you some extra time to go through the six reasons that you wanted to give to the President but now your time has expired.

Dr S E M PHEKO: Izwe lethu! [Our country!]

Mr M S BOOI: Madam Deputy Speaker, hon President, hon Deputy President, members of the Cabinet and hon members, the President has given a lot of challenges to the nation and to each of us as individuals. This is very important.

The things that Comrade President has said leave some of us to continuously reflect as individuals. I want to read out the point that you have made because I want to engage you, as you know I always do. You said:

I am confident that 2008 will be one of the most remarkable years of our democracy, as we all work together to realise the core aspiration of our people to attain a better life for all. I say this because in our own estimation, it is not often that a nation is called upon to strain every sinew of its collective body to attain a dream. And such is the injunction that history has imposed on us today.

That is a tall order, Comrade President, because you are asking each one of us to reflect on the progress that has been made in the democratic system that has been created. You are asking us how we are conducting ourselves towards the type of the Constitution we have put together and what we think of the type of system of governance we have created. Is it functioning? Is it making it possible for ordinary people to reach out to us? Are we able to maintain, in ANC speak, a type of people’s contract with our own people?

That is the type of tall order you are asking us to find answers to. That is a huge challenge but a challenge that I do think we would be able to take on as leaders and representatives. If you listened to Prince Buthelezi, you would have a sense of what society is confronted with. Hon President, I think, as the ANC, we will have to live up to that challenge. It is a challenge that we cannot run away from. If we want to continue to entrench and maintain the democratic practices that we have introduced in our society in the past 10 years, it does call on all of us as a collective embodiment in this House to live up to that.

One of the other things that you have mentioned, which to me is crucial – and I hope hon members will be able to live up to as well – is the issue of unity. I have heard it many times this year and I hope that you will not mind if I reflect on it again because it is a huge challenge to each of us as individuals.

Let me therefore be so bold as to say that historic moments demand that our nation should unite as never before and strain every sinew of its collective body to address our common challenges and keep alive the dream that has sustained all of us as we travelled along the uncharted road towards the creation of a South Africa visualised in our Constitution. These are challenges that you have placed upon us.

We, as members of the ANC, have been debating the various resolutions that we have been presented with. We continuously have to reflect on the type of mandate we have been given by our own constituencies because if it had gone according to what our constituencies and our branches have been demanding, we would have loved to break up the system and make it work totally differently. But under your leadership, we would be able to say this is how the system had to operate for you have laid the foundation for it.

One of the things that you mentioned and presented to us as a challenge in your state of the nation address is how Parliament has to deal with the dissolution of the Scorpions. For me, the most important thing that you have done is that you have been able to strike a relationship between the executive and Parliament.

Parliament has always felt it is being neglected and isolated but through the manner in which you have presented it, you have laid the responsibility in our own hands, to live up to that and redefine exactly what we mean when we talk of revamping and transforming the justice system. That is a challenge and I welcome it because it presents a challenge to us as parliamentarians: What is going to happen to the Scorpions? And what will happen to the SA Police Service?

But the challenge is not just about them, because both of those comprise good South Africans. The Scorpions have people of high calibre who have been able to do a lot of good work and investigate high-calibre cases. One thing that is very challenging to all of us is: What do we do with those South Africans in an environment where skills are always an area of complaint? Where do you take that type of people? What do you do with them? And how do you place them so that, as South Africans and as a collective embodiment, we are able to live up to those challenges you have put to us?

One of the challenges that the late Minister Steve Tshwete put forward on the occasion of launching the Scorpions was that “prosecution led an intelligence-driven investigation, a key element in the fight against crime and corruption. All prosecutions are being brought into line with the national strategy concerning crime and crime prevention”. This is the challenge that he left us with.

I think the Khampepe Report presents that type of challenge. For us, as a movement and an organisation, if we reflect on the occasions when the issue of intelligence arose, it was with issues such as Pango and Quatro. Those are the type of experiences we are talking about and we are saying it is within that context that we are raising this issue of the DSO; we are not raising it because we want to alienate or attack certain individuals. We are saying that historically, within the movement, within this embodiment called the ANC, those who were part of Umkhonto we Siswe know that when an intelligence officer is not accountable, it becomes very reckless and it presents you with a very serious problem.

Those types of experiences, Comrade President, cannot be forgotten. It is within that context that we, as the ANC, have presented to the nation that we want to deal with the dissolution of that type of background. We have seen such types of things where you will find that when intelligence officers are not guided and they do not remain accountable, they create a problem within society. That is what we are confronted with and we should be able to deal with it.

The call from the ANC conference is to say: Let us reflect on that and let us take it as a challenge so that when we deal with the type of people we are dealing with, we do not deal with them recklessly and in a manner that will look as if we are chasing them away. You must deal with them in a manner that enhances democracy … [Time expired.] [Applause.]

Mr P J NEFOLOVHODWE: Madam Deputy Speaker, hon President, hon members, allow me to start by quoting Amilcar Cabral in Tell No Lies, Claim No Easy Victories when he says:

Always bear in mind that the people are not fighting for ideas, for things in anyone’s head. They are fighting to win material benefits, to live better and in peace, see their lives go forward to guarantee the future of their children.

In the context of Amilcar Cabral’s statement, this debate provides Azapo with an opportunity to raise issues of national importance. Secondly, it provides the people of our country with some idea as to where the national debate relating to issues that affect their lives is heading. For the people to “win these material benefits”, in Cabral’s terms, they need jobs, shelter, water, food, sanitation and other basic necessities of life. To this end, Comrade President, we are in agreement with you about your undertaking to establish a national war room for the war against poverty. The crisis of poverty in the rural areas in particular requires the total commitment and alignment of all government departments and programmes.

Azapo, through the Is’baya Development Trust, has, together with other institutions, developed an Integrated Village Renewal Programme model which is ready for mass implementation, should government be willing to adopt this programme as a national programme. I submit, Comrade President, that government therefore does not need to start at ground level to develop a renewal development programme that can be implemented on a mass scale.

To date Is’baya, in partnership with the Agricultural Research Council, has implemented this programme in over 50 villages in the former Transkei area.

To live better and in peace, our people need a state which has the capacity to fight organised crime and all other forms of crime. In Azapo’s terms, we need a strong, determined and dedicated army of people that are willing, equipped and ready to crush the criminals.

With this in mind, Azapo will remain firm and resist the temptation to weaken or completely do away with the Scorpions. To Azapo it would be a sad day in South Africa if the Scorpions were to be disbanded merely on the basis that no one knows to whom they report.

Azapo believes that, if anything, the high success rate of the Scorpions against organised crime, should be strengthened at all costs. If there are management, reporting or investigation issues that are based on a vendetta agenda by the Scorpions, these must be corrected and eliminated without weakening the country’s resolve to fight organised crime. Azapo is therefore pleased that Parliament will have a say in this matter.

Concerning the crisis and challenges in Eskom, Azapo does understand, Comrade President, that you apologised, as a matter of principle. What is important, however, is that it should not be enough that those who are employed to manage Eskom should be left to hide behind your principled apology. They should not underperform and take decisions which put the country in difficulties and merely ask for forgiveness without anything being done about it.

Azapo agrees with Business Unity South Africa, that there has to be some form of accountability; more so since for the past years management at Eskom has been receiving bonuses. People cannot be allowed to plunge a country into darkness and still receive bonuses. We should all insist that there is a culture of accountability. For instance, because of a lack of accountability, companies that make bread colluded to push the price up and subsequently paid a fine but the price of bread remained at the level reached after cheating.

Azapo is not aware of any reversal that was demanded and we learn that prices even increased after this incident. In other words, Comrade President, in South Africa the rich can cheat, knowing full well that by the time this is discovered they will be able to pay and nothing will be done about it. The poor then continue to pay the price. I thank you. [Time expired.] [Applause.]

The DEPUTY SPEAKER: Before we continue, I would like members to join me in welcoming a former member, a former whip of the National Assembly, Oom Jannie Momberg. [Applause.]

Nk N W NGWENYA: Mhlonishwa Phini likaSomlomo, mhlonishwa Mongameli, bahlonishwa, oNgqongqoshe bonke, malungu esakhiwo sokuvikela nozinzo, ngivumeleni ukuthi ngiqale ngokuveza isinqumo sombutho kaKhongolose sengqungquthela kazwelonke esiveza isidingo sokwakhiwa kohlelo olunzulu lokugcinwa kwalabo esebelindele izigwebo. Lokhu kusukela ezimweni ezehlukene ezitholakala ezikhungweni zokuhlunyeleliswa kwezimilo.

Lokhu kufaka phakathi amacala ngokwehlukana kwawo kanye nobucayi bamacala abasuke bewenzile; iminyaka yobudala yalabo abalindele izigwebo; kanye nokusetshenziswa kwezigwebo zokudonsela ngaphandle. Lesi sinqumo sincoma izindlela ezingcono ezingasetshenziswa ukubhekana nalesi simo. Inkulumo kaMongameli uThabo Mbeki kuleli sonto eledlule ngoLwesihlanu ibhekiswe esizweni – engineqiniso lokhu noMaMkhize lena ngaphandle balalele kepha ngizophinde futhi ngicaphune – ethi uhulumeni uzoshintsha uhlelo lokuqulwa kwamacala obugebengu ngokuphelele. Lo mbono uza nezindlela ezingcono zokuhlunyeleliswa kwezimilo.

Phini likaSomlomo, ngivumele ngisho ukuthi siyazi sonke ngezindlela ezisetshenziswa yizikhungo zokuhlunyeleliswa kwezimilo zokubhekana nokugcinwa kwezikhungo zokuhlunyeleliswa kwezimilo njengokugcwala kwezikhungo. Lena yinselelo endala ebhekene nohlelo lokuhlunyeleliswa kwezimilo. Lolu hlelo-ke lokulinda kwalabo asebelindele izigwebo luzobhekana nokuxazulula le nselelo.

Mongameli, ngempela kufanele sivume ukuthi baningi labo abalindele ukuqulwa kwamacala abagcinwe ezikhungweni. Kubukeka sengathi futhi badlala indima enkulu ekugcwalisweni izikhungo. Kumele kusetshenziswe izindlela eziningi ezinqala kubhekwe nezimo zecala ngalinye. Lokhu kubuye futhi kuncome ukuthi abantu abalindele ukuqulwa kwamacala bagcinwe ezikhungweni ngokunakekelwa. Lokhu kuzoqinisekisa ukuthi baphathwa ngendlela eyahlukileyo kuleyo eyalabo esebedonsa izigwebo zabo. Ezinye zalezi zindlela eyokubhekisisa imibandela yebheyili kanye nalezo zindlela ezingaphoqi ukuvalelwa. Imibandela yebheyili kufanele izwelane nalabo abangeke bakwazi ukuyikhokha. Abanye balabo abalindele ukuqulwa kwamacala abo kumele baye ezikhungweni zokuhlunyeleliswa izimilo uma bengakwazi ukukhokha ibheyili. Esinye isimo yilesi esithi izinkantolo azikwazi ukubheka lo mqulu obizwa ngokuthi yi-F62 wokufakwa kwezicelo zebheyili. Izinkantolo ziqinisa izifociya ikakhulukazi kulabo okusamele bavele kwezinkantolo.

Lesi simo senza kakhulu ukuthi abasolwa bahlale kakhulu besalindele ukuqulwa kwamacala abo. Ngesinye isikhathi amacala aba mancane. Kungezeka ukuthi abasolwa bahambe ekuqulweni kwamacala abo besuswa ezikhungweni baye ezinkantolo. Lokhu kungavikela nokweqa kwabasolwa ngalesi sikhathi. Kuyavela-ke nokuthi izindlela zokuhlunyeleliswa kwezimilo ezisemiphakathini nakho kungalekelela ekwehliseni izinga lokugcwala kwezikhungo kanye nasekusizeni abasolwa ekutheni bashintshe ezenzweni ezimbi.

Izigwebo zabasolwa lapho bengavalelwe khona kufanele ziqiniswe ikakhulukazi emacaleni amancane. Izingane ezineminyaka engaphansi kwe-18 eziboshelwe amacala amancane kufanele zisiswe ezikoleni ezibhekene nezingane ngohlunyeleliswa kwezimilo zazo. Lokhu kudinga ukwakhiwa kwezikhungo zokunakelela, imali kanye nabantu abazokwelekelela kulezi zimo. Ukuqinisa- ke ukushintshwa kwalokhu, iPhepha eliMhlophe lemisebenzi yokuhlunyeleliswa kwezimilo ngonyaka ka-2005 liqinisekisa ukusebenzisana phakathi kukahulumeni nezinhlaka zemiphakathi kanye nobuhlobo nokusebenzisana eminyangweni eyehlukene kanjalo nokugqugquzela ukubuyisana komphakathi.

Lokhu futhi kuqinisekisa izinhlelo zemiphakathi ezibhekene nokuphatha. Lokhu kufake phakathi lokhu okulandelayo: Ukubhekwa kwabantu abathola ukukhishwa ejele ngesethembiso sokungabaleki; ukuhlunyeleliswa kwezimilo okusemphakathini; kanye nokusebenzisana. Imiphakathi kanye nalabo abasemabhizinisini kumele basize futhi banxenxe ukuthi babemukele labo asebeqede izigwebo zabo futhi bemukele namakhono abo abawathole ngesikhathi bedonsa izigwebo zabo. Bakwazi nokuthi bawasebenzise ukuze bakwazi ukuthola amasentshana ukuze baqhubeke nempilo emphakathini.

Imiphakathi kumele ibhekele lokhu okulandelayo: Ukulungiselela ukukhululeka kwalabo ebebedonsa izigwebo zabo. Lokho kuzosiza ekuthini umuntu uma ebuya ekuboshweni angathi kungcono abuyele ejele ngoba lapha akemukelekanga. Ngiyabonga. [Kuphele isikhathi.] [Ihlombe.] (Translation of isiZulu speech follows.)

[Ms N W NGWENYA: Hon Madam Deputy Speaker, hon President, hon members, all the Ministers, members of the peace and security cluster, allow me to start by outlining the African National Congress’ National Conference resolution which identifies a need to come up with a comprehensive programme of accommodating those who are awaiting trial. This is as a result of different situations found at the correctional services centres.

This includes, amongst other things, different cases and their merits and the seriousness of the crimes they have committed; the ages of those awaiting trial and the use of community correctional services. This resolution recommends better ways which could be used to deal with this challenge. In his state of the nation address, last week Friday - which I am sure even people out there were listening to, but I will quote him again

• President Thabo Mbeki said,”In this regard, in the spirit of “Business Unusual”, Cabinet has agreed on a set of changes that are required to establish a new, modernised, efficient and transformed criminal justice system”.

Madam Deputy Speaker, allow me to say that we are all aware of the methods that are used by correctional services centres, regarding the way these centres are managed, for example overcrowding. This is the old challenge that is facing the correctional services programme. This programme will address the challenges facing awaiting-trial prisoners.

Mr President, we have to indeed acknowledge that there are many awaiting- trial prisoners who are detained at correctional services centres. It seems like they contribute to overcrowding at correctional services centres. There must be a number of strict methods to be used and each case should be treated according to its merits. It is also recommended that awaiting-trial prisoners should be detained and treated with proper care at correctional services centres. This will ensure that they are treated differently from those who are already serving their sentences.

One of these methods is careful consideration of bail conditions and alternative sentencing which does not warrant direct imprisonment. Bail conditions should be favourable towards those who cannot afford it. Some of those who are awaiting trial have to go to correctional services centres if they can’t raise bail. The other situation is that courts do not apply the provisions of Section 62(f) of the Criminal Procedure Act when considering bail applications. Courts apply trite rules, especially, to those who are still going to appear before the courts.

This situation makes suspects wait too long for their cases to be tried. Sometimes the crimes they committed are just minor crimes. It is possible to transport suspects from correctional services centres to courts. This could also prevent suspects from escaping during this time. It is also evident that interventions such as correctional supervision can also help to reduce levels of overcrowding at correctional services centres and help the suspects change their bad behaviour.

Convicted criminals who are not serving custodial sentences for petty crimes should be dealt with harshly. Children under the age of 18 who are arrested for petty crimes should be sent to rehabilitation centres. These interventions will necessitate the construction of more rehabilitation centres. Personnel who are going to help in these situations, and money will be made available. To ensure the implementation of this, the White Paper on correctional services ensures co-operation between the government and community structures, thereby establishing working relations and collaboration between different departments which encourages reconciliation within the community.

This will also strengthen community-based programmes which are aimed at good governance. This includes the following: The monitoring of parolees who are released from prison so that they do not evade justice, community correctional supervision and co-operation. Communities and the business sector should help and be encouraged to accept those who have served their sentences. The business sector should acknowledge their skills acquired while they were serving their sentences so that they can use these skills in order to earn some money and continue with life in their communities.

The community should look at the following: Preparing for the integration of those who are serving sentences. That will help ex-convicts not to think that it is better back in prison because they are not accepted here. Thank you. [Time expired.] [Applause.]]

Mr W J SEREMANE: Madam Deputy Speaker, hon President, hon Deputy President, hon members of the House, please allow me, before getting into my speech, to pay special tribute to my colleagues on this side, namely Sandra Botha, Nkosi Buthelezi, General Holomisa and the others who said very important things. I also cannot neglect to thank members on that side who listened very intently because intent listening leads to intent and responsible debate and dialogue and this is what our continent needs desperately.

On the surface – coming back home – the South African foreign policy is commendable even though some aspects of it leave much to be desired or write home about. How much contact does the Foreign Affairs department have with our citizenry, the electorate or taxpayers who finance these outreach initiatives? We may as well ask how much it costs the country, South Africa, given the massive needs and wants within the country. The adage “being one’s brother’s or sister’s keeper” in itself does not generate revenue or save goodwill.

The message is very clear: South Africa should desist from being the sweeper of the mess created by despotic and authoritarian African heads of state and their lackeys. Our overstretched local delivery services and needs will soon be stretched to the limit. Remember that “instability is associated with change that fails to gratify social demands of the people and leaves an increasing proportion of frustrated citizens”.

How effective and sustainable are our peace initiative inputs into the continent? The Democratic Republic of the Congo is a case in point. Do we hold the DRC stakeholders accountable for strides already made at great cost to the South African citizenry? The Sudan-Darfur saga does not say much about the effectiveness of our intervention in this region. We are mindful, though, of the prevailing intransigence of some key role-players in this somewhat genocidal tragedy.

Closer to home we have the festering sore that is Zimbabwe. Nine months have passed since SADC mandated our President Mbeki to facilitate the restoration of democracy, and I repeat, restoration of democracy. Yet democracy still remains an elusive mirage to many Zimbabweans.

Every time South Africa has promised or seemingly announced to the sane world some success in finding negotiated settlements to Zimbabwe’s political crisis, evidence has proved the contrary, if not worse.

For instance, Deputy Foreign Affairs Minister Aziz Pahad claims all is well for resolving political implosion, and I quote him: There are no longer negotiations needed. What is left is procedural.

That does not seem to tally with the harsh reality on the ground in Zimbabwe! Let’s admit our sotto voce or quiet diplomacy has no results at all. Recently, Zanu-PF war veterans’ utterances that “Zanu-PF knows how to deal with betrayers” in response to Simba Makoni’s announcement that he would stand against Mugabe in the elections contradict Deputy Minister Aziz Pahad’s rosy picture of what Zimbabwe is today. Outside Zanu-PF circles we – South Africans – are suspect and not convincing peacebrokers.

Mr President, simply put, peacemakers or peacebrokers of repute do not take sides in disputes; their function is to facilitate processes intended to resolve conflicts. In the light of the African Renaissance vision and the Nepad initiative, Africa has to come to grips with the many basic challenges of development, undergirded by a firm consistency of peace and stability. We have to insist on the plethora of protocols and treaties that abound in our regional structures and so forth to avoid situations such as those in Kenya and other African hotspots.

Last, but not least, we need to pay even more attention to how we vote at the UN by not voting in such a way that we contradict the very principles of our strong human rights bias, for instance, with regard to our stand on the Burma issue. Our quest to get into both bilateral and multilateral relations with other countries is very prudent indeed. It is therefore very important that reckless attacks on parties with whom we want to enter into such relations need to be curbed. I refer here to the sabre-rattling attack on the EU members by our chairman of the Foreign Affairs Portfolio Committee, which is, of course, contrary to his style of doing things. I don’t know what went wrong then. Sound and fury signifying nothing achieves nothing remarkable, indeed. South Africa and Africa need and deserve far better than empty rhetoric. Thank you. [Applause.]

Mr J P CRONIN: Thank you, Madam Deputy Speaker, Comrade President, Comrade Deputy President and hon members. Well, we are halfway through the party- political responses to the state of the nation address. I think good things have been said, obviously from this side of the House but also good things have been said from that side and I want to acknowledge some of those in a while. But underlying the inputs coming from this side is an agenda, often subtly put, sometimes more crudely put.

For the better part of two years, the ANC or, at least, parts of the ANC, have been having a debate about the so-called two centres of power. Hallelujah! Across on this side, suddenly, a number of these opposition parties have woken up and said: What is in it for us? One prominent speaker on this side talked about a power vacuum following Polokwane. They are all circling around this issue, hoping for a gap in the market. There is no gap in the market and still less is there a market for you in that gap which doesn’t exist.

Some of you are trying to pit the ANC against the ANC government. [Interjections.] “Let’s have a vote of no confidence in the ANC government” says the ID, thinking that it is riding some Polokwane wave, completely misunderstanding what happened. They are riding a wave but there is no one with them on that wave. [Interjections.]

Others are trying to pit the government against the ANC. The leader of the DA said that the President must stop the national democratic revolution. [Laughter.] That is, presumably, the national democratic revolution of populists and “the unrealistic left” that the hon Sandra Botha referred to. The DA has changed its tune a little bit. Typical! Having tried to pit the government against the ANC, they are now hedging their bets. They are trying to do both things. Dissolve the current government, they say on the one hand but on the other hand they say: Let us try and flirt with President Mbeki against the ANC. Let us present ourselves as the moderate centre.

Hon Botha, do not confuse sitting on the fence with being in the centre of South African politics. [Applause.] Sitting on the fence, which appears to be the historical mission of your party and all its predecessors in their various acronyms, means you are on the left, not my left but the left of the left-behinds. [Laughter.]

The hon Holomisa also played this game quite subtly. He began by playing the homeboy game. There is nothing wrong with that. He referred to his Transkei origins. At the end of his speech he switched to Xhosa – nothing wrong with that, of course – and then used that to infer jokingly - but in jokes there is always a serious point - that there was some Communist threat and some Commmunist conspiracy, and then came and shook your hand.

This was a joke and it was subtly done but lurking in there is the kind of issue that we are seeing in Kenya today – the flirtation with gaps or imagined gaps and playing cards which are very dangerous cards. There is no gap and you will not succeed in seeking to divide the ANC from the ANC government. [Applause.] The evidence of your failure is already apparent in the course of this debate.

President Mbeki’s state of the nation address has been very well received by not only the general public but by the ANC, Cosatu, the SACP – let it be said. [Applause.] And that was not choreographed. That was not a choreographed response. The SACP - I happen to have read their statement since I managed to come across it - commended the state of the nation address for many, many things, in detail, the general thrust of it and many specific issues. There were also differences. The SACP, for instance, says:

Commending the President for his role in Zimbabwe, for the long hours put into a very difficult situation, bringing together intractable sides …

But the SACP said:

We are not sure that what remains is simply procedural.

We are not sure that is a good choice of words. It is not the fault of the South African government if these agreements are not implemented. They cannot be implemented by SADC or the South African government. They need to be implemented by the Zimbabwean government. [Applause.]

In the view of the SACP, which I am not representing here, that is not just a procedural matter; that is a matter for debate. That is not some strategic clash, some parting of ways within the alliance; it is democracy, it is a debate and a discussion.

At the heart of the ANC’s debate around the two centres of power has been a reaffirmation of longstanding ANC policy. In the 1960s, 1970s and 1980s, at a time when the ANC was conducting an armed struggle, amongst other things, we had to be extremely and constantly vigilant that the pressures, the excitement, the logistic challenges of our military struggle did not overwhelm the essential political content of our struggle. We said, in the slogan of the day, that the political must be in the command and therefore, at that time, institutionally, programmatically and in terms of codes of conduct and values, we had to work constantly against the danger which exists in any national liberation struggle where there is a military component and make sure that the ANC was a political centre first and foremost.

A ruling party, as opposed to an illegal national liberation movement conducting an armed struggle, has other challenges and other dangers - we know those, from any ruling party situation - of technocratic and bureaucratic capture. There is that danger, even of corporate capture and of corruption.

When the hon Buthelezi spoke of corruption, we were listening to him. We don’t disagree with you. If you want to see a very sustained concern about the problems of corruption and the problems of being a ruling party and the challenges it brings, have a look at the organisational report of the ANC at Polokwane. It is a real issue and therefore, institutionally, organisationally and programmatically, we need to be very vigilant as a ruling party against those dangers. This means allowing the circulation of democratic oxygen within our own organisation.

How can 4 000 delegates decide on the future president of South Africa? That is what we are asked. Some of those parties will have three delegates, and five delegates, and maybe 200 delegates, deciding who is going to be at the top of their list next year in the election.

The 4 000 delegates of the ANC at Polokwane did not decide who is going to be the future president of South Africa. They decided who would be at the top of the ANC list. The voters of South Africa will decide, who will be the next president of South Africa. The voters in their majority will decide and if they decide not to go with the top of the list of a three- delegate party, then it is not the fault of the ANC.

To affirm that the ANC needs to be a key political strategic centre doesn’t mean the abolition or dissolution of other centres of power. In fact, sometimes the two-centres-of-power debate can give you the impression that there are only two possible centres of power. There are multiple centres of power in any modern society.

On the contrary, for the ANC to play the role of a political strategic centre, it requires many centres of power to be flourishing. We need to respect the professionalism, the technical capacity and the autonomy of state organs. It is absolutely essential if we want to play that political centre role.

Also, we need to respect Parliament. If the ANC is going to play a political strategic centre role, then we need to transform, develop and enhance the capacities of Parliament. This is absolutely critical. We need a multiparty institution – which it is.

When the hon Holomisa calls for a national indaba, that national indaba should be held here. This is what we are. We are voted to be the national indaba, so let it be that - not a rubber stamp for anyone. Let us be vibrant. For this reason, amongst the hundreds of resolutions passed at Polokwane by the ANC - you only remember one resolution and are completely fixated about that - was an important resolution that we must, as this Parliament, before we come to an end next year – and not this year, because we are not going to have elections this year – put an end to floor- crossing. There has been a debate in the ANC. There has been a debate in other political parties. [Applause.]

From the ANC’s side we are convinced that we must enhance the legitimacy and good standing of Parliament. The lesson we have learned from the floor- crossing episode is that though it may or may not have had its legitimation in an earlier period, it runs the danger of dragging us into the politics of politicians, of us as full-time professional politicians, the politics of lists, of wheeling and dealing and of individual career interests, and it takes us away from the politics of millions of ordinary people, of housing, unemployment, poverty and so on. That is one of the important mandates we are carrying, to strengthen Parliament and not to weaken it.

Also, coming out of Polokwane, the ANC’s political committee is committed to fulfilling an important constitutional requirement. The Constitution says that this Parliament must develop legislation to enable us to amend money Bills. This is very important. We are not going to play wild and free with money Bills and the Budget but it is an important responsibility. We have to have oversight over public spending. As the ANC we expect the support of all political parties in driving through what is in fact not a “maybe” or an “if”, but a constitutional requirement.

The opposition parties will do their best to divide the ANC but they won’t succeed. The ANC is united not because it is a monolithic identity … [Interjections.] … but based on our political vision, our commitment to the Freedom Charter, but above all, a sense of responsibility to over two- thirds of the electorate who know from their own lives that “amandla awethu, maatla ke a rona!” [power to the people!] is not just a slogan but a profound understanding that they might have few things, few resources, little capital, no shares perhaps on the JSE but they do have the possibility of a united, collective power, their majority.

That is the historical and contemporary role of the ANC: To provide a political, unifying coherence to that majority. That is a role that will not be assumed by proclamation. It is not a role that you can just affirm through a resolution at Polokwane. It is something that requires daily struggle. You have to earn that role in struggle daily. [Time expired.] [Applause.]

Debate interrupted.

The House adjourned at 17:33. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

                       FRIDAY, 18 JANUARY 2008

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bills

   1) Diamond Export Levy Bill [B 22 – 2007] – Act No 15 of 2007 (assented to and signed by President on 2 December 2007).

   2) Diamond Export Levy (Administration) Bill [B 23 - 2007] – Act No 14 of 2007 (assented to and signed by President on 5 December 2007).

   3) Adjustments Appropriation Bill [B 41 – 2007] – Act No 27 of 2007 (assented to and signed by President on 7 December 2007).

National Assembly

The Speaker

1. Referral to Committees of papers tabled

 1) The following papers are referred to the Portfolio Committee on
    Environmental Affairs and Tourism:

    a) General Notice No 1301 published in Government Gazette No 30389
       dated 19 October 2007: Nomination for the appointment of
       suitable persons as members on the Board of South African
       Weather Services (SAWS) in terms of the South African Weather
       Service Act, 2001 (Act No 8 of 2001).


    b) General Notice No 1024 published in Government Gazette No 30418
       dated 26 October 2007: Notice in terms of section 16 of the
       Marine Living Resources Act, 1998 (Act No 18 of 1998).


    c) General Notice No 1112 published in Government Gazette No 30262
       dated 5 September 2007: Proposed Guideline regarding the
       Determination of Bioregions and the Preparation and Publication
       of Bioregional Plans in terms of the National Environmental
       Management: Biodiversity Act, 2004 (Act No 10 of 2004).


    d) General Notice No 1108 published in Government Gazette No 30269
       dated 6 September 2007: National Norms and Standards for the
       Development of the Biodiversity Management Plans for Species
       (BMP-S) in terms of the National Environmental Management:
       Biodiversity Act, 2004 (Act No 10 of 2004).


    e) General Notice No 1109 published in Government Gazette No 30263
       dated 7 September 2007: Policy for the Development of a
       Sustainable Marine Aquaculture Sector in South Africa, in terms
       of the Marine Living Resources Act, 1998 (Act No 18 of 1998).


    f) General Notice No 1138 published in Government Gazette No 30284
       dated 11 September 2007: Notice to establish the National
       Framework in terms of section 7(1) of the National Environmental
       Management: Air Quality Act, 2004 (Act No 39 of 2004).


    g) Government Notice No 878 published in Government Gazette No
       30310 dated 21 September 2007: Regulations for the prohibition
       of the use, manufacturing, import and export of asbestos and
       asbestos containing materials, in terms of the Environmental
       Conservation Act, 1089 (Act No 73 of 1989).


 2) The following papers are referred to the Portfolio Committee on
    Environmental Affairs and Tourism and the Portfolio Committee on
    Water Affairs and Forestry:

    a) General Notice No 1146 published in Government Gazette No 30293
       dated 17 September 2007: Draft alien and invasive species
       regulations 2007, in terms of the National Environmental
       Management: Biodiversity Act, 2004 (Act No 10 of 2004).


    b) General Notice No 1147 published in Government Gazette No 30293
       dated 17 September 2007: Draft lists of exempted alien species,
       prohibited alien species and invasive species for which a permit
       is required under certain circumstances, in terms of the
       National Environmental Management: Biodiversity Act, 2004 (Act
       No 10 of 2004).

 3) The following paper is referred to the Portfolio Committee on
    Correctional Services for consideration and report:

    (a)      Report of the Judicial Inspectorate of Prisons for 2006-
 2007 [RP 82-2007].

 4) The following papers are referred to the Portfolio Committee on
    Defence and the Joint Standing Committee on Defence:

    (a)      The President of the Republic submitted a letter dated 7
       November 2007 to the Speaker of the National Assembly, informing
       Members of the Assembly of the employment of the South African
       National Defence Force in Darfur in Sudan.


    (b)      The President of the Republic submitted a letter dated 9
       November 2007 to the Speaker of the National Assembly, informing
       Members of the Assembly of the employment of the South African
       National Defence Force during the 2007/2008 festive season.

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

 1) Report and Financial Statements of the Film and Publication Board
    for 2006-2007, including the Report of the Auditor-General on the
    Financial Statements and Performance Information for 2006-2007.

                       FRIDAY, 25 JANUARY 2008

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Draft Bills submitted in terms of Joint Rule 159

(1)    South African National Water Resources Infrastructure Agency
     Limited Bill, 2007, submitted by the Minister of Water Affairs and
     Forestry. Referred to the Portfolio Committee on Water Affairs and
     Forestry and the Select Committee on Land and Environmental
     Affairs.

(2)    Renaming of High Courts Bill, 2007, submitted by the Minister
     for Justice and Constitutional Development. Referred to the
     Portfolio Committee on Justice and Constitutional Development and
     the Select Committee on Security and Constitutional Affairs.

(3)    Reform of Customary Law of Succession Bill, 2007, submitted by
     the Minister for Justice and Constitutional Development. Referred
     to the Portfolio Committee on Justice and Constitutional
     Development and the Select Committee on Security and Constitutional
     Affairs.

National Assembly

The Speaker

1. Membership of Assembly

   (1) The vacancy which occurred owing to the resignation of Mr D H M Gibson has been filled with effect from 15 January 2008 by the nomination of Dr D T George.

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

   (a) Report of the Auditor-General on the management and provision of official accommodation to staff at the Department of Defence – November 2007 [RP 252-2007].

   (b) The President of the Republic submitted the following letter dated 30 November 2007 to the Chairperson of the Joint Standing Committee on Defence informing Members of the Joint Standing Committee on Defence of the employment of the South African National Defence Force for a service in co-operation with the South African Police Service during the 2010 FIFA World Cup preliminary draw:

   EMPLOYMENT OF THE  SOUTH  AFRICAN  NATIONAL  DEFENCE  FORCE  FOR  A
   SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE
   
   
   This serves to inform the Joint Standing Committee on Defence  that
   I have authorised the employment  of  the  South  African  National
   Defence Force (SANDF) personnel, for a service in co-operation with
   the South African Police Service in  preventing  and  combating  of
   crime and maintenance and preservation of law and order during  the
   2010 FIFA World Cup preliminary draw.
   
   
   This employment is authorised in accordance with the provisions  of
   section 201(2)(a) of the Constitution  of  the  Republic  of  South
   Africa, 1996, read with section 93 of the Defence Act, 2002 (Act No
   42 of 2002).
   
   
   A total of one hundred and twenty (120) SANDF members were employed
   as from 17 November to 27 November 2007.
   
   
   I will communicate this report  to  the  members  of  the  National
   Council of Provinces and of the  National  Assembly,  and  wish  to
   request that you bring the contents hereof to the attention of  the
   Joint Standing Committee on Defence.
   
   
   
   
   signed
   TM Mbeki
   

2. The Minister for Justice and Constitutional Development

   Report in terms of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993): Withholding of remuneration of Magistrate M K Chauke, an additional Magistrate at Pretoria.

3. The Minister of Environmental Affairs and Tourism

   Report and Financial Statements of Marine Living Resources Fund for 2006-2007, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2006-2007.

National Assembly

The Speaker

1. Submission of Private Members’ Legislative Proposals

   The following private member’s legislative proposal was submitted to the Speaker on 7 November 2007, in accordance with Rule 234:

   (a) Legislative proposal to amend the Employment Equity Act, No 55 of 1998 (A Dreyer)

   Referred to the Standing Committee on Private Members’ Legislative Proposals and Special Petitions for consideration and report.

2. The President of the Republic submitted the following letter dated 30 November 2007 to the Speaker of the National Assembly informing Members of the National Assembly of the employment of the South African National Defence Force for a service in co-operation with the South African Police Service during the 2010 FIFA World Cup preliminary draw:

   EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR A SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE

   This serves to inform the National Assembly that I have authorised the employment of the South African National Defence Force (SANDF) personnel, for a service in co-operation with the South African Police Service in preventing and combating of crime and maintenance and preservation of law and order during the 2010 FIFA World Cup preliminary draw.

   This employment is authorised in accordance with the provisions of section 201(2)(a) of the Constitution of the Republic of South Africa, 1996, read with section 93 of the Defence Act, 2002 (Act No 42 of 2002).

   A total of one hundred and twenty (120) SANDF members were employed as from 17 November to 27 November 2007.

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

   signed TM Mbeki

COMMITTEE REPORTS

National Assembly and National Council of Provinces

1. Report of the Joint Standing Committee on Defence (JSCD) on Oversight Visit the South African Army Combat Training Centre, Lohatla, Northern Cape

 1.     Introduction

 The Joint Standing Committee on Defence  is  mandated  to  monitor  the
 morale and well-being of  the  South  African  National  Defence  Force
 (SANDF). This includes monitoring the  training  of  soldiers  and  the
 conditions of the infrastructure of the SANDF.


 Nine SANDF soldiers were killed and 15 wounded on Friday,  October  12,
 2007 during a training  exercise  at  the  South  African  Army  Combat
 Training Centre in Lohatla, Northern Cape.


 The   Committee,   as   part   of   its   mandate   and   Parliamentary
 responsibilities, undertook an oversight visit  to  the  South  African
 Army Combat Training Centre in Lohatla,  Northern  Cape,  on  Wednesday
 October 24, 2007 to try and establish what happened and what  could  be
 done to prevent such incidents occurring in future.


 2. Composition of Delegation
     • Dr E A Schoeman, Chairperson and Leader of Delegation (ANC)
     • Mr. M S Booi (ANC)
     • Mr O R Monareng (ANC)
     • Ms P Daniels (ANC)
     • Mr J Schippers (ANC)
     • Mr. S B Ntuli (ANC)
     • Mr Sayedali-Shah (DA)
     • Rev N W Ngcobo (ANC)
     • Mr A L Moseki  (NCOP -ANC)
     • Mr J Ramrock ( Committee Secretary)


 3. Findings.


    3.1      Waterkloof Air Force Base


    The  Delegation,  which  consisted  of  Members  of  the  Portfolio
    Committee on Defence as well, met and interacted with  families  of
    the deceased at the Waterkloof Air Force Base, Pretoria,  and  then
    proceeded to the Memorial Service in Kimberly.

    3.2      Memorial Service, Kimberly.


    The Minister of Defence, M P Lekota,  in  addressing  the  memorial
    service, extended the condolence of Government and the  country  to
    family and friends of the fallen soldiers. He assured them  that  a
    full investigation will be conducted to establish what happened and
    what can be done to prevent such accidents in future.


    The Delegation also  addressed  compatriots  of  the  departed  and
    shared words of comfort and  encouragement  and  reminded  them  of
    their importance to the country and our democracy.


    3.3      Lohatla Military Base.


    The Delegation  together  with  family  members  of  the  deceased,
    visited the South African Army Combat Training Centre, Lohatla, for
    an in-loco inspection where  the  accident  occurred.  The  Officer
    Commanding of the base briefed the Delegation on the  accident  and
    what could possibly have gone wrong.


    Members were also  reminded  that  a  full  investigation  will  be
    conducted and that a report will be provided to  the  Committee  on
    the outcome.

 4. Conclusion

 The Committee, mindful of the fact that an investigation is in progress
 to try and find answers to the cause of the incident,  will  await  the
 conclusion of the process and the outcome of the report.

1. Report of the Joint Standing Committee on Defence (JSCD) on Oversight Tour to Makhado Air Force Base, Limpopo 1. Introduction

 Chapter two of the White Paper on  Defence,  dealing  with  matters  on
 human resource, outlines and mandates the Joint Standing  Committee  on
 Defence to carry out certain tasks with respect to:
• transformation within the SANDF
• the integration of members of the SANDF
• the recruitment and training of members
• the moral and well being of members and
• the condition of infrastructure.

 The Committee, as part of this mandate and its  Parliamentary  mandate,
 undertook an oversight visit to Makhado Air Force Base in Limpopo on  6
 August  2007.

 2. Composition of Delegation


• Mr S D Montsitsi, Chairperson and Leader of Delegation (ANC)
• Ms D M Seadimo (ANC)
• Mr N Diale (ANC)
• Ms P Daniels (ANC)
• Mr J Schippers (ANC)
• Mr J Ramrock ( Committee Secretary)

 3. Findings.


 General C Gagiano, Chief  of  the  Air  Force,  assisted  by  Brigadier
 General C  J  Delport,  Officer  Commanding  Air  Force  Base  Makhado,
 addressed the delegation on the history of the base.  Makhado  AFB  was
 established in 1987, some 20 years ago. It is the  second  largest  air
 force base in the country, behind Waterkloof  AFB.  Makhado  AFB  is  a
 combat base that only operates with fighter aircraft and is  recognized
 as center of excellence.


 The base  plays  an  important  strategic  role  in  the  SADC  region.
 Neighboring countries like Angola and Zimbabwe participate  in  fighter
 training exercises conducted at this base. Border patrol operations are
 also performed, and have resulted in the arrest  of  countless  illegal
 immigrants from for instance Zimbabwe.


 Serious breaches on security have been identified with  aliens  gaining
 access to the premises.


 Force preparations, so that individuals can be combat  ready,  is  also
 done at the base.


 Some of the challenges faced included shortage of staff at  the  health
 center, scarcity of water and road transport. Discussions are  on-going
 with the local authority with the laying of a water pipeline that  will
 assist the base.


    3.1      Combat flying school.


    Lt Col D J Van der Linde, Officer Commanding Combat Flying  School,
    addressed the delegation on the function of the school. The phasing
    out of the Cheetah training aircraft in 2005 has created a  problem
    concerning combat training. Students are trained on the Cheetah  in
    preparation  for  flying  the  recently  acquired   Gripen   combat
    aircraft. It takes about 2 ½ years to complete training to fly  the
    Gripen. The school presently has  106  students.  The  most  senior
    black within the Air Force is a major, who joined in 1994. All  the
    instructors are white, while  there  are  45  black  and  55  white
    technicians that have been trained,  5  of  these  are  women.  The
    demographics are slowly being corrected, but much work still  needs
    to be done. The problem related to  the  small  seat  in  the  Hawk
    aircraft is being addressed to try and  accommodate  all  students.
    Almost 250 technicians  resigned  from  the  Air  Force  last  year
    (2006), with most joining the private sector. Language proficiency,
    lack of computer skills and the type of psychometric  testing  done
    was identified as some of the major challenges  faced  by  previous
    disadvantaged candidates who wanted to join the Air Force.


    The Air Force is under- funded and needs, at least, R1.2 billion to
    be used  on  infrastructure.  Interaction  to  address  the  budget
    challenge is currently taking place with DENEL.


    3.2      Air Servicing Unit.


    Lt Col D J Blom, Officer Commanding 3  Air  Servicing  Unit  (ASU),
    addressed the Delegation on the role and functions of the Unit. One
    of the main aims of the Unit is to be the  benchmark  for  aircraft
    maintenance in the SAAF. Clients include  visiting  squadrons  from
    other countries. On avionics the Unit  looks  at  fault  isolation,
    fault verification, performance verification and  repair.  Some  of
    the challenges facing the Unit include the sequence of construction
    of Gripen facilities vs Cheetah/Hawk support, the Cheetah phase-out
    period, scarcity of  resources  and  the  difficulty  in  retaining
    skilled staff.


    3.3      Tour of the Base.


    The Delegation was taken on a  tour  of  the  base  which  included
    visiting the Centralised Training Centre,  the  Operational  Flight
    Trainer and the 2 Squadron.    Lt Col D Dormehl, Officer Commanding
    2  Squadron,  briefed  the  Delegation  on  the  functions  of  the
    Squadron.


    Members  observed  attempts   on   integration   but   noted   that
    transformation remains a challenge.


 4.     Conclusion.


 The Delegation commended the good  work  done  at  the  Base  and  will
 continue to monitor  progress  that  had  been  made  to  some  of  the
 challenges faced by the Base. The Committee  also  requested  that  the
 Inspector General ensures that problems that  were  identified  at  the
 Base are corrected.


                      TUESDAY, 29 JANUARY 2008

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

               CALLING OF JOINT SITTING OF PARLIAMENT

The Speaker of the National Assembly, Ms B Mbete, and the Chairperson of the National Council of Provinces, Mr M J Mahlangu, in terms of Joint Rule 7 (2), have called a joint sitting of the Houses of Parliament for Wednesday, 30 January 2008 at 14:00 to conduct a debate on the current national energy challenges.

B MBETE, MP M J MAHLANGU, MP SPEAKER OF THE CHAIRPERSON OF THE NATIONAL ASSEMBLY NATIONAL COUNCIL OF PROVINCES

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Environmental Affairs and Tourism

(a)     Government Notice No 1147 published in Government Gazette No
    30537 dated 7 December 2007: Assignment of the Management of Mokala
    National park to south African National Parks (SANParks), in terms
    of the National Environmental Management: Protected Areas Act, 2003
    (Act No 57 of 2003).




(b)     General Notice No 1717 published in Government Gazette No 30534
    dated 7 December 2007: Publication of Policy on the Management of
    Seals, Seabirds and Shorebirds, in terms of the Marine Living
    Resources Act, 1998 (Act No 18 of 1998).




(c)     General Notice No 1718 published in Government Gazette No 30535
    dated 7 December 2007: Invitation to comment on the draft policy
    and application forms concerning the allocation and management of
    long term fishing rights in the Large Pelagic (Tuna and Swordfish)
    Sector - 2007, in terms of the Marine Living Resources Act, 1998
    (Act No 18 of 1998).

(d)     Government Notice No R.1187 published in Government Gazette No
    30568 dated 14 December 2007: Amendment of critically endangered,
    endangered, vulnerable and protected species list, in terms of the
    National Environmental Management: Biodiversity Act, 2004 (Act No
    10 of 2004).




(e)     Government Notice No R.1188 published in Government Gazette No
    30568 dated 14 December 2007: Threatened or Protected Species
    Amendment Regulations, in terms of the National Environmental
    Management: Biodiversity Act, 2004 (Act No 10 of 2004).




(f)     General Notice No 1767 published in Government Gazette No 30574
    dated 21 December 2007: Invitation to comment on the Draft Policy
    for the Transfer of Commercial Fishing Rights - 2007, in terms of
    the Marine Living Resources Act, 1998 (Act No 18 of 1998).




(g)     General Notice No 1197 published in Government Gazette No 30590
    dated 18 December 2007: Proclamation of the Fossil Hominid Sites of
    South Africa (Consisting of Fossil Hominid Site of Sterkfontein,
    Swartkrans, Kromdraai and the Environs, Taung Skull Fossil Site and
    Makapan Valley) in terms of the World Heritage Convention Act, 1999
    (Act No 49 of 1999).




(h)     General Notice No 1198 published in Government Gazette No 30590
    dated 18 December 2007: Proclamation of Robben Island as a World
    Heritage Site in terms of the World Heritage Convention Act, 1999
    (Act No 49 of 1999).

(i)     General Notice No 1199 published in Government Gazette No 30590
    dated 18 December 2007: Notice in connection with the Proclamation
    of uKhahlamba Drakensberg Park as a World Heritage Site in terms of
    the World Heritage Convention Act, 1999 (Act No 49 of 1999).




(j)     General Notice No 1200 published in Government Gazette No 30590
    dated 18 December 2007: Proclamation of Mapungubwe Cultural
    Landscape as a World Heritage Site in terms of the World Heritage
    Convention Act, 1999 (Act No 49 of 1999).




(k)     General Notice No 1201 published in Government Gazette No 30590
    dated 18 December 2007: Proclamation of Vredefort Dome as a World
    Heritage Site in terms of the World Heritage Convention Act, 1999
    (Act No 49 of 1999).




(l)     General Notice No 1202 published in Government Gazette No 30590
    dated 18 December 2007: Declaration of the Member of the Executive
    Council for Economic Development, Environment and Tourism, Limpopo
    Province as the Authority for Makapan Valley Serial World Heritage
    Site in terms of the World Heritage Convention Act, 1999 (Act No 49
    of 1999).




(m)     General Notice No 1203 published in Government Gazette No 30590
    dated 18 December 2007: Declaration of the North West Member of the
    Executive Council for Agriculture, Conservation and Environment as
    the Authority for the Taung Skull Fossil Site in terms of the World
    Heritage Convention Act, 1999 (Act No 49 of 1999).

(n)     General Notice No 1204 published in Government Gazette No 30590
    dated 18 December 2007: Declaration of the Member of the Executive
    Council for Sport, Arts and Culture, Northern Cape Province as the
    Authority for the Richtersveld Cultural and Botanical Landscape
    World Heritage Site in terms of the World Heritage Convention Act,
    1999 (Act No 49 of 1999).




(o)     General Notice No 1205 published in Government Gazette No 30590
    dated 18 December 2007: Declaration of the Kwazulu-Natal Nature
    Conservation Board as the Authority for the uKhahlamba Drakensberg
    Park World Heritage Site in terms of the World Heritage Convention
    Act, 1999 (Act No 49 of 1999).




(p)     General Notice No 1768 published in Government Gazette No 30575
    dated 21 December 2007: Publication of Policy on the Management of
    Seals, Seabirds and Shorebirds, in terms of the Sea Birds and Seals
    Protection Act, 1973 (Act No 46 of 1973).




(q)     Government Notice No 1141 published in Government Gazette No
    30542 dated 3 December 2007: Draft Regulations for the protection
    of Abalone (Haliotis) (wild), in terms of the Marine Living
    Resources Act, 1998 (Act No 18 of 1998).




(r)     Government Notice No 1123 published in Government Gazette No
    30518 dated 23 November 2007: Declaration of the Highveld as
    priority area in terms of section 18(1) of the National
    Environmental Management: Air Quality Act, 2004 (Act No 39 of
    2004).

National Assembly

1. The Speaker

(a)     Special report by the Auditor-General in terms of section
    126(4) of the Local Government: Municipal Finance Management Act,
    2003 (Act No 56 of 2003), outlining the reasons for the delay in
    completing the audit of the Eden District Municipality for the
    financial year ended 30 June 2007.


 b) Reply from the Department of Labour to recommendations in
    Nineteenth Report of Standing Committee on Public Accounts on
    Department of Labour, as adopted by the House on 21 November 2007.

COMMITTEE REPORTS

National Assembly

1. Report of the Committee on Private Members` Legislative Proposals and Special Petitions, dated 21 November 2007:

The Committee on Private Members’ Legislative Proposals and Special
Petitions, having considered the legislative proposals by Mr P A Gerber
referred to it on 19 June 2007, and having consulted the affected
churches and organisations (Dutch Reformed Church, Apostolic Faith
Mission, Methodist Church, South African Council of Churches and Bible
Society), recommends that permission be given to the member to proceed
with the proposals, namely that the following Acts be repealed:
  • Dutch Reformed Church Union Act, No 23 of 1911
  • Apostolic Faith Mission of South Africa Act, No 24 of 1961
  • Apostolic Faith Mission of South Africa Amendment Act, No 4 of 1970


  • Methodist Church of South Africa Act, No 111 of 1978
  • Bible Society of South Africa Act, No 15 of 1970
  • Bible Society of South Africa Amendment Act, No 97 of 1985


 Report to be considered.


                     WEDNESDAY, 30 JANUARY 2008

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Finance

(a)     Government Notice No R.1090 published in Government Gazette No
      30491 dated 16 November 2007: Amendment of Schedule No 1 (No
      1/1/1348) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(b)     Proclamation No 36 published in Government Gazette No 30508
      dated 30 November 2007: Commencement of sections 7(1)(m), 9(1) and
      34(1) of the Revenue Laws Second Amendment Act, 2006 (Act No 21 of
      2006).

(c)     Government Notice No R.1139 published in Government Gazette No
      30532 dated 30 November 2007: Amendment of Schedule No 1 (No
      1/1/149) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(d)     Government Notice No R.1196 published in Government Gazette No
      30581 dated 14 December 2007: Amendment of Schedule No 2 (No
      2/294) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(e)     Government Notice No 1207 published in Government Gazette No
      30592 dated 20 December 2007: Approval of allocations, in terms of
      the Division of Revenue Act, 2007 (Act No 1 of 2007).




(f)     Government Notice No R.1211 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 2 (No
      2/295) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(g)     Government Notice No R.1212 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 2 (No
      2/296) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(h)     Government Notice No R.1213 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 3 (No
      3/624) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).

(i)     Government Notice No R.1214 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 3 (No
      3/625) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(j)     Government Notice No R.1215 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 3 (No
      3/626) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(k)     Government Notice No R.1216 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 3 (No
      3/627) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(l)     Government Notice No R.1217 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 4 (No
      4/310) in terms of Customs and Excise Act, 1964 (Act No 91 of
      1964).




(m)     Government Notice No R.1218 published in Government Gazette No
      30586 dated 21 December 2007: Amendment of Schedule No 5 (No 5/87)
      in terms of Customs and Excise Act, 1964 (Act No 91 of 1964).

COMMITTEE REPORTS

National Assembly CREDA PLEASE INSERT REPORTS - Insert T080130-insert1 – PAGES 43-72

                      THURSDAY, 31 JANUARY 2008

COMMITTEE REPORTS

National Assembly

COMMITTEE REPORTS

National Assembly

1. PRELIMINARY REPORT ON THE OVERSIGHT VISIT OF THE PORTFOLIO COMMITTEE ON DEFENCE TO LOHATLA COMBAT TRAINING CENTRE, NORTHERN CAPE

2. INTRODUCTION The Portfolio and Joint Standing Committees on Defence conducted a joint oversight visit to the Lohatla Combat Training Centre (LCTC) on Wednesday, 23 October 2007. Both committees have constitutionally mandated parliamentary oversight responsibilities of the Department of Defence and are obligated to ensure that the morale and well-being of the South African National Defence Force [SANDF] remain at a high level.

The visit was aimed at determining the circumstances around the shooting accident during training on 12 October 2007 that resulted in the death of 9 soldiers and 14 wounded at LCTC. This report is based on the interactions between the Parliamentary Delegation and members of the SANDF, and the bereaved families.

The delegation comprised:

Portfolio Committee on Defence

Mr F Bhengu (Chairperson: Portfolio Committee on Defene) Mr P Daniels (ANC) Mr M Booi (ANC) Mr J Schippers (ANC) Mr S B Ntuli (ANC) Dr P Pheko (PAC)

Joint Standing Committee on Defence

Dr M Schoemann (Chairperson: Joint Standing Committee on Defence) Mr O E Monareng (ANC) Mr J Schippers (ANC) Rev N W Ngcobo (ANC) Mr A L Moseki (NCOP -ANC) Mr M Shah (DA)

1. FINDINGS:

2.1 Meeting with relatives of the deceased:

The Parliamentary Delegation, hosted by the SANDF at Waterkloof Airforce Base in Thaba Tshwane, met with relatives of the deceased and extended condolences on behalf of Parliament to the families. The two groups then proceeded to the Memorial Service in Kimberley.

2.2 Address by Chairperson of the Portfolio Committee at the memorial service in Kimberley:

The Chairperson of the Portfolio Committee on Defence, Mr F Bhengu, in his address on behalf of Parliament to mourners, reiterated both the Committees’ condolences to the families of the deceased and stressed Parliament’s oversight responsibility to ensure that a thorough investigation into the events of that day is conducted.

2.3 Address by the Minister of Defence, Minister M P Lekota:

The Minister of Defence, Mr M P Lekota, extended condolences on behalf of the Government and country to relatives and paid tribute to the deceased. He gave the assurance that a full investigation will be conducted to establish the causes of the accident. The Department will lend every possible assistance to the families of the deceased.

2.4 Meeting with members of the South African National Defence Force:

The Delegation met with approximately 100 soldiers in the church hall after the Memorial Service, and expressed its pride and appreciation for the selfless dedication displayed by troops, despite the dangers associated with military service. Soldiers were encouraged to maintain the high levels of professionalism and dedication.

1. Visit to Lohatla Combat Training Centre (LCTC):

Upon arrival at LCTC, the Parliamentary Delegation was escorted to the scene of the accident and was briefed on the events of that day. As there is an official investigation underway, a general overview of the events of that day was provided. A detailed briefing will be held with the Department subsequent to the tabling of the report on the outcomes of the investigation.

1. CONCLUSION

The Portfolio Committee on Defence, mindful of the investigations by the official Board of Enquiry and the South African Police Service (SAPS), await the findings of the Department. The Committee will table its final report subsequent to the tabling and the deliberations on the outcomes of the Department’s official enquiry.

1. REPORT OF THE PORTFOLIO COMMITTEE ON DEFENCE ON ITS OVERSIGHT VISIT TO SIMON’S TOWN NAVAL BASE AND THE SOUTH AFRICAN MILITARY ACADEMY AT SALDANHA: 07 – 08 MAY 2007

The Portfolio Committee on Defence, having undertaken an oversight visit to the South African Naval Base at Simon’s Town and South African Military Academy at Saldanha, on 07 and 08 May 2007, reports as follows:

INTRODUCTION

This report is presented in the context of the oversight role assigned to the National Assembly by the Constitution. These visits were conducted as part of the Portfolio Committee’s oversight and monitoring role over the Department of Defence, the South African National Defence Force (SANDF) and their institutions.

Information contained in this report is based on presentations made and interactions between the Committee and officials of both institutions, as well as relevant documentation. A full list of delegation members, officials from the South African Naval Base and Military Academy, as well as the presentations delivered, are provided in Appendix 1, 2 and 3.

TERMS OF REFERENCE

In addition to the aforementioned exercise of the Committee’s constitutionally mandated oversight role; and within the framework of the constitutional imperatives of transformation; affirmative action and employment equity, good governance, delivery, accountability and non- racialism, the Committee had the following objectives:

i) Simon’s Town Naval Base:

The efficacy of psychometric testing: The Committee sought greater clarity on the standards and procedures followed in the psychological assessment and processes of naval officers, and whether these were effective in addressing the imperatives of transformation.

Transformation of the South African Navy: The Committee hoped to ascertain the progress made in the transformation of the South African Navy, including the successes and challenges to this process.

Conditions of facilities: The Committee wanted to view the state of both living and training facilities, to gain insight into the conditions in which naval officers work and live.

ii) The South African Military Academy at Saldanha:

Lessons learnt from Canadian Study Tour: Both the Portfolio Committee on Defence and officials from the Saldanha Military Academy undertook separate study tours to the Canadian Royal Military Academy on 4 to 12 November 2006 and 26 February to 1 March 2007, respectively. The Committee wanted to engage with officials on the findings of this trip to assess how the South African Military Academy compared to its international counterparts. Furthermore, the Committee intended to exchange ideas on how lessons learnt from this visit could be utilised to enhance and ensure the highest levels of competitiveness, academic excellence and professionalism.

Previous oversight visits to the Military Academy at Saldanha: One of the ways in which the Committee can monitor the implementation of legislation and policies of the Department, is to investigate the implementation of policies and recommendations made on the previous two oversight visits on 19 January 2005 and 5 September 2006.

Staff Concerns: The Committee intended to meet with lecturers of the Military Academy in order to discuss staff concerns and solutions to the problems faced by lecturers.

Student Concerns: The delegation intended to meet with the students at the Military Academy to discuss their concerns and solution to problems faced by the student population.

Interaction with senior management of the Academy: The delegation wanted to meet with the senior officials from the Academy to highlight the concerns raised by both lecturers and students and to highlight the necessity of critical areas to attention.

FINDINGS

The Committee made the following findings, based on the presentations made and subsequent discussions with officials:

DAY 1: Simon’s Town Naval Base (Monday, 07 May 2007)

1. Briefing by Admiral R W Higgs (Chief of Fleet Staff) and Admiral Madimu (Chief of the South African Navy)

In their briefing to the Committee, officials from the South African Fleet Command identified the South African Navy’s core mission as follows: ‘to fight at sea; to win at sea, to become unchallenged at sea.’ In this vain, the purpose of the Chief of Navy was to provide supported combat ready naval forces for CJ operations while the Fleet Command needed to prepare supported combat ready naval forces for the C Navy. Key priorities of the South African Navy were identified as: Greater involvement in Africa. Participation in government initiatives in Africa. Greater South-South Co-operation. Building a People’s Navy.

The South African Navy is enhancing its continental focus through the following initiatives:

Operationalisation of frigates and submarines. Augmentation of current forces with new capabilities Ensuring compatibility with neighbours in terms of standard operating procedures, doctrines as well as common training.

Efforts to improve the delivery and performance of the fleet was also highlighted and included: Rationalisation of combat hardware and ships, thus disposing of old and non- cost effective vessels. Continued transformation and revitalisation of the Reserve Forces. The upgrading of facilities which include modernised headquarters, and the construction of new training facilities.

The SA Navy has integrated the previous seven standing reserves into the units of the South African Navy which was part of efforts to bring about an integrated SA Navy corps.

Certain challenges were also highlighted, which could have a negative impact on the ability to achieve key goals and priorities: The Navy struggled to retain specialised or scarce skilled personnel. These could not be easily replaced due to the limited availability of such skills. The strained ability to adapt and transform infrastructure required to support the strategic defence packages into service. Strained ability to conduct the required and contracted qualification trials necessary to integrate the strategic defence packages into service. The age profile is a cause of concern, since the retention and recruitment of youth remains a challenge. Although the rationalisation process was necessary, the SA Navy could be challenged by the reduction in both manpower and budget. Although the SA Navy was working towards increasing its relevance in the African battle space as well as to align itself with broader government initiatives; such an increasing role necessitates increased in available funding.

1. Summary of key issues raised by the Committee, emanating from presentation

Noting the down-scaling of fleet; the Committee expressed concern over the possible impact on the Navy’s ability to secure the South African coastlines. The ability to respond adequately to natural disasters anywhere in South Africa. The effect of limited staff capacity on the implementation of key projects such as Project Millennium. The training of cadettes and the relationship between the SA Navy and SA Air force. The SA Navy’s involvement in deep-sea mining activities and the recovery of sunken vessels. The Chairperson urged greater exposure of female officers, regardless of rank, to high-level discussions and interactions with the Portfolio Committee. The retaining of institutional memory of the Navy was critical, and therefore the success of projects such as project millennium was essential.

1. Postponement of discussions on the efficacy of psychometric testing of naval officers

Due to time constraints and the sensitive nature of psychometric assessments in the SANDF, the Committee agreed that a meeting be rescheduled for a lengthier and comprehensive discussion on this matter. Officials acknowledged the public sensitivity and controversy surrounding such tests; the nature of which also merrited discussion.

The Chairperson cautioned officials that the Portfolio Committee’s interest in better understanding the process of psychometric testing of naval officers was not informed by any allegations. As these tests were utilised as an important tool in determining the pschycological eligibility for entrance into the Navy, an investigation into such processes was needed. This was particularly important as South Africa struggled with its history of discrimination and the present imperatives of transformation.

The Committee noted the following key areas of need in terms of transformation:

The middle management of the SANDF must be made fully representative. Given the strategic objectives of the Department of Defence; the transformation of the SA Navy needed to reflect the South African demographics. The Portfolio Committee had a responsibility to ensure the implementation of all strategic objectives set, as well as to ensure the global competitiveness of the Navy. There needed to be a deliberate intention of transformation to deal with the legacies of past discrimination.

1. Tour of facilities

Rear Admiral K Louw accompanied the Committee on a tour of the Simon’s Town Naval facilities. The building plans for new accommodation were also explained. The building of new facilities was scheduled to commence at the end of 2007. The following facilities were viewed:

The site for the planned new accommodation. The new modernised headquarters which will improve the practical operation of the naval base. Recently completed housing facilities for junior naval officers and their families. The shipping and docking facilities. Training facilities.

The total cost for the construction was estimated at R256 million, of which R30 million would be budgeted from the annual operational budget. Although the necessary funding for this project was not readily available, construction could be completed over a three year period. The revenue generated from the closure and sale of SAS Wingfield in Durban could be used as additional funding for building projects at the Base. The Department of Public Works would negotiate the selling of properties on behalf of the SA Navy.

DAY 2: South African Military Academy (Tuesday, 8 May 2007)

1. Background The Portfolio Committee on Defence conducted a visit to the South African Military Academy on both 19 January 2005 and 5 September 2006 as part of its oversight and monitoring of Department of Defence, the South African National Defence Force [SANDF] and their institutions. During both visit (s) the Committee assessed the implementation of recommendations made in 2005 and made further recommendations based on their findings.

The report is based on the second follow-up visit, led by the Committee Chairperson, Ms Thandi Tobias, to investigate the implementation of recommendations made during the 2006 oversight visit.

Additional items on the Committee’s agenda included an exchange of ideas on separate study tours to the Canadian Defence Academy as well as interactions with staff; students and the Academy’s management.

1. Briefing on the study tour to the Royal Military College and Canadian Defence Academy

Officials from the South African Military Academy at Saldanha undertook a study tour to the Royal Military College and Canadian Defence Academy from 26 February to 1 March 2007. The purpose of the study tour was to draw lessons and comparisons between the military academies of South Africa and Canada. Given the similarities in faculty, training and support sections, the following key observations were highlighted:

Royal Military College functions as a university and awards its own degrees. Currently, the South African Military Academy at Saldanha awards degrees in partnership with Stellenbosch University.

While the Royal Military College offers a four-year degree programme, its South African counterpart currently offers a three - year degree programme. Discussions amongst the lecturers in South African Military Academy at Saldanha continued regarding a possible change to a four year degree programme. Such a programme was viewed as more beneficial to students as practical training and academics would enjoy equal emphasis.

South Africa could also learn from its Canadian counterpart’s stress on three important pillars in the development of students, namely academic excellence and training; the importance of physical training as well as bilingualism.

Differences in the reporting lines of the Deans of the respective Academies were also noted. While the Dean of the South African Military Academy at Saldanha reports to the Commandant, her Canadian counterpart reports directly to the Minister of Defence. Canada perceived its Military Academy to be the think-tank and a rich source of information for defence operations. South Africa should head in such direction.

South Africa needed to improve its student/faculty ratios overtime. Unlike South Africa, a PHD is the minimum requirement for a teaching position in the Canadian Military Academy. South Africa needed to learn from this, as current requirements were merely an honours degree. Lecturers should be rotated and must be encouraged to develop themselves academically.

Unlike its South African counterpart, the Canadian Military Academy benefits from greater private sector investment in its research. Access to greater research funding needs to be promoted.

South Africa could draw a lesson from the Canadian strategy to attract the finest academics as well as improvements in its peer review systems, which is important in the academic promotion of teaching staff.

Like the Royal Academy, South Africa needs to generate research on current peacekeeping operations it involved itself with, especially those in Darfur, Burundi and the Democratic Republic of the Congo (DRC). The contextualisation of teaching was essential. Lessons learnt form these missions should also be incorporated when theorising on these conflicts.

Unlike its Canadian counterpart, library services at the Academy were not up to standard. This needs greater attention.

1. The Committee’s response to the presentation

The Committee made the following observations, based on both the Committee’s experiences during the study tour of Canadian Military Academy, as well as the delivered presentation:

The ethos of the South African Military Academy at Saldanha needs to be reflected in the image of the institution. A professional culture needs to be developed and the physical infrastructure needed to be upgraded.

A pragmatic approach to learning and teaching is important to both transform the culture of teaching at the institution and to produce research and theorising on current security issues, conflicts and peace keeping operations. The extent to which the work of the Academy directs and informs the administration is very important. A synergy between the physical and academic development of students at South African Military Academy at Saldanha was important to ensure the nurturing of well-balanced, educated, physically resilient and competitive members of the Defence Forces.

Pride in being part of the SANDF needs to be instilled through honouring and commemorating the contribution of war veterans made in the defence of our country.

Improvements in the reporting lines of the Dean need to be investigated and improved upon.

The relevance of specialisation and the PHDs produced to the defence or security field is necessary, rather than only an increase in research produced. This research needed to be useful to the Department and to contribute in the understanding of security matters.

The extension of the degree programme to four years merits further discussion.

The exchange programme needs to focus on both students and lecturers, to ensure that both parties are allowed to develop academically.

Language in the context of the role and priorities of the South African Military Academy at Saldanha was central. The significance of language in the South African Military Academy at Saldanha, given the strategic priorities of the SANDF, needed to be reflected in the curriculum.

Lessons drawn from the study tour needed to be utilised to achieve higher standards of professionalism, internationally competitive military and academic skills, and to assist in the development of a model to ensure the harmonious co-existence of both military training and academics.

Creative ways of transforming South African Military Academy at Saldanha in the context of budgetary constraints are needed. Government’s budgetary priorities and emphasis on social spending reflect the pressing development challenges and latent security threats such as poverty and unemployment. Although the military development was important, the overall development of South Africa took precedence.

Although lessons could be drawn from the Royal Academy; the development paths of both countries diverged and South Africa is faced with particular developmental challenges.

Given the centrality of the NEPAD programme and South Africa’s involvement in peacekeeping missions on the continent, greater engagements with Commonwealth states are needed to ensure that these states too become greatly involved in peacekeeping on the continent. South Africa should not risk over-extending itself.

Advantage needed to be taken of the various technological advancements to ensure the continuous improvement in teaching and training at the South African Military Academy at Saldanha. The ways in which training is incorporated into the curriculum needed re- examination to ensure that academic development and training co-exist harmoniously.

Greater levels of maturity and co-operation at the South African Military Academy at Saldanha were needed to develop a professional culture.

Greater relationships between stakeholders as well as foreign institutions need to be fostered to ensure access to greater research funding.

1. The implementation of Committee recommendations: Briefing by Admiral D J Christian of the South African Military Academy

Recommendation 1: The curriculum should be carefully reviewed and improved.

Progress made: A Task Team, set up by the Dean of the Academy, produced a draft report on the outcomes of its review of the current curriculum in March 2007. Due to the complexity of changing a curriculum, the Department is due to consult with as many stakeholders as possible, including the Portfolio Committee on Defence. This process would not be hurried, and a final report is due during 2008.

Recommendation 2: The Academy needs to be transformed into an ‘Academy of Excellence’

Progress made: The Department incorporated the twin goals of academic excellence and the nurturing of world class leaders in the military and academic field, in its vision and new goals, adopted in 2006. Although this was not an immediately attainable goal; the Department believed that the foundations for the development of internationally competitive Military Academy and students have been established. The Department refocused on the following areas: Staff participation in both international and national conferences is encouraged. Greater research outputs were demanded. This followed the result of a study undertaken by the Department of Education which illustrated the decline in research outputs by the Academy. In this vain, the number of PHDs candidates produced by South African Military Academy at Saldanha would increase over time.

Annual staff development visits take place in June each year. Interviews are also conducted to ensure that faculty members and lecturers are enjoying their current research. Two national conferences are being planned for 2007.

Recommendation 3 The Higher Education Assessment Committee should review the professional degrees offered by the Academy.

Progress made: Independent studies conducted by the Higher Education Quality Committee of the Department of Education, the School for Science and Technology as well as the School for Security and African Studies highlighted the following problem areas: Insufficient funding Issues related to the contractual relationship between the Department and the University of Stellenbosch Lack of staff The need to improve research outputs Ineffective human resource management Problems associated with its certificate programme

The remaining three schools would be assessed during the course of 2007.

The Dean would submit a development plan to the University of Stellenbosch’s Senate in May 2007. A work session is scheduled for 24 and 25 May 2007, to review contracts. Although the operating budget had increased to R8.9 million, a greater budget was needed to develop the institution. 10 new faculty members are in the process of being appointed.

Recommendation 4:

The process for reporting and addressing the complaints of sexual harassment must be addressed.

Progress made: A representative Sexual Harassment Committee has been appointed, chaired by Ms N Van Der Waag. No formal complaints had been received since April 2006.

Recommendation 5:

The language policy needs to be reviewed, especially as it relates to practical matters such as meetings and correspondence within the Academy.

Progress made: Although English had been formally adopted as the language of instruction, it is very difficult to change the institutional culture of which communication in Afrikaans was a cornerstone. Correspondence from management was sometimes received in Afrikaans. R100 000 had been provided for translation services. Recommendation 6

The Academy’s Distance Education courses should be done in close cooperation with Department of Education. Progress made: From the inception of Distance Education courses in 2003, this programme had produced its first two graduates in 2003. There are currently 64 undergraduates and 71 post - graduate students. The management of Distance learning programmes offered has improved due to the appointment of the necessary competent staff. A project was currently underway which would link University of Stellenbosch classrooms via satellite to South Africa and the rest of the continent. The University was thus taking advantage of the latest technological advancements.

Recommendation 7:

The Department of Public Works and Department of Defence to upgrade facilities; Computer facilities needed to be upgraded.

Progress made: Computers had been upgraded and were regularly replaced or upgraded.

Recommendation 8:

Vacancies should be advertised and filled within a maximum of three month period

Progress made: The recruitment and appointment process of the DOD was explained, and allowed for a six-week advertising time frame; one week short listing process; a three week selection process by the selection board, a three week waiting time for feed back on recommendations submitted to the University of Stellenbosch; three weeks waiting period for approval by Minister, before letters of appointment can be issued.

Recommendation 9: Recommendation should be given to the Department of Education for funding through the usual block grant.

Progress made: The block grant will be done through the University of Stellenbosch ensure success. Prof Tobie De Conning was facilitating the process.

Recommendation 10:

In the interest of Academic excellence; the system of paying lecturers according to the South African National Defence Force salary scales should be terminated. At present, the Department of Defence is responsible for the remuneration of academic personnel

Progress made: The University of Stellenbosch was reluctant to give details of the remuneration packages of their Academic staff. At a recent Stellenbosch University Board meeting it was agreed to provide the information that was requested through a letter from the DoD. This information is still pending and is to be included in the proposal on remuneration to be submitted for consideration.

Recommendation 11

The critical tuning point in the relationship between Stellenbosch University and the DoD must be reached.

Progress made: The relationship between University of Stellenbosch and the Department had improved significantly since the attachment of Dr Van Harte as the Associated Dean in June 2006. A work session scheduled for 24 and 25 May would focus on reaching agreement on staffing processes.

Recommendation 12

Dean should be given security of tenure:

Progress made: The appointment of the Dr van Harte as the Dean for a period of five years had been done through a Memorandum of Understanding. The Dean would report via the Vice Rector of Education to the Rector and would be remunerated by the University.

1. The Committee identified the following matters that needed further clarification

An imbalance between the level of vacancies at the Academy and the high levels of new students recruited posed a challenge. What was being done to remedy the situation?

The quality of the distance learning programme in comparison with the full- time study programme at the South African Military Academy at Saldanha needed to be assessed. Information on total enrolment in the distance learning programme needed to be provided.

The reach of South African Military Academy at Saldanha should be expanded to other military bases. The idea of satellite campuses merited further exploration.

The rejuvenation of the South African Military Academy at Saldanha research capacity is critical. The private sector must be made a partner in financing research. Given the lack of improvement in the academic results, much more needed to be done to improve the overall pass rate.

A lack of confidence in the future relevance of the South African Military Academy at Saldanha was detected. The Committee urged officials to engage Members of Parliament on the reasons for this. This would assist the committee in formulating recommendations on the ways to strengthen the institution.

Clarity on the extent of opportunities for further study opportunities beyond the Military Skills Development System [MSDS] curriculum and employment opportunities for graduates were also probed.

The establishment of the Sexual Harassment Committee was noted. The South African Military Academy at Saldanha needed to provide clarification on the operating procedures of this Committee. How was sexual harassment cases managed?

1. Meeting with Lecturers and Teaching Assistants

As in 2005, the Committee delegation met again with about 100 staff members. Their key areas of concern included:

The high turn-over of black academics. Staff members felt that the Committee had a key role to play to ensure the retention and attraction of black lecturers to South African Military Academy at Saldanha

The existing recruitment and equity plans were ineffective. It was felt that the Committee has a responsibility to ensure the full transformation of the culture of the institution.

Securing promotion according to the current promotion plan was difficult. Delays in the finalisation of promotions were impacting negatively on the morale of staff.

Current salary scales were not sufficiently competitive, compared to those of other universities.

The research capacities of faculties needed to be improved to ensure that both professors and junior researchers further develop their research skills. Greater allocation of funds to build the research capacity and profile South African Military Academy at Saldanha as a research institution, were needed. Lecturing without continuous development of the research capacity was not feasible.

The institution’s profile as a higher education facility needed to be raised to ensure comparability with similar, domestic and international tertiary institutions. This should be twinned with the upgrading of facilities.

Vacant posts needed to be filled as a matter of urgency. Although committed to transformation, there was a need for a dedicated diversity management programme.

The budget should be increased in line with the growth in student intake.

1. Meeting with students

As in 2005, the Committee delegation met again with approximately 200 students. The following issues were raised:

Incongruence between the standard procedures and policies introduced by different arms of services and the overall DOD policy was identified. The Committee needed to provide clarity on which policy took precedence. Preference for entrance into the Military Skills Development System [MSDS] programme should be given to matriculants. Enrolment at other tertiary institutions should be encouraged for those applicants with incomplete degrees. Concerns were raised over the employment prospects in the public sector, since many students will not be recruited to work in other departments. How could the portfolio committee assist in dealing with this matter? Although the South African Military Academy at Saldanha was encouraged to accelerate transformation of the Academy, a progress report on the extent of this transformation was still pending. In terms of the Military Skills Development System, what criteria were being used to identify those skills that are considered marketable? South African Military Academy at Saldanha was recruiting a high number of students without consideration of the spatial constraints to accommodate students coupled with the inability to ensure employment of students. The lack of funding to recruit lecturers and retain postgraduate students, especially those of previously disadvantaged backgrounds, constrained the transformation of this Academy. There was a need for more skilled personnel. Concerns were expressed over the high rate of failure, and the impact the limited access to adequate library services had on the successful completion of studies. The faculties were not spending their budgets as required. Given the lack of security of employment, many are tempted to work in the private sector.

1. Meeting with the management of the Academy

The management team, which included the Dean of the Academy, Dr E Van Harte, noted the concerns raised by students and staff, and provided the following responses to specific matters:

The Academy is committed to the spending of the budget. However due to the ring-fencing of the Academy’s budget, some departments could not spend their budgets timeously.

The understaffing of the library is acknowledged, but cautioned that the appointment of staff was a function of the command management. Management was aware of the shortages of library material and inconvenient closing times of the library. This matter was closely monitored.

Challenges to the implementation of the MSDS experienced by both students and teachers were noted. Although the South African Military Academy at Saldanha is trying to address the legacies of the Apartheid education system, the time constraints for the implementation hampered teachers and students’ appreciation of and reflection on the goals of the systems (skills development). Given these challenges, the value of education received could not be fully appreciated.

D: COMMITTEE RECOMMENDATIONS

Following the outcomes of the Portfolio Committee on Defence’s interactions with officials from the South African Navy in Simonstown and the South African Military Academy at Saldanha as well as careful consideration of information provided, the Committee submits the following recommendations:

(i) South African Navy, Simon’s Town

The Committee acknowledges and appreciates the continued efforts to enhance the effectiveness and competitiveness of the South African Navy. The preservation of the institutional memory of the SA Navy is critical and thus the implementation of strategies such as the 2010 Human Resource Strategy.

The Committee recommends lengthier discussions with the Department on the psychometric testing within the SANDF. The rescheduling of such interaction should be prioritised.

The Committee acknowledges concerns expressed over the funding limitations faced by the South African Navy. However, given the developmental imperatives of the South African government, reflected in budgetary priorities, creative ways to address challenges needs to be developed.

The exposure of women officers, regardless of rank, to interactions with the Portfolio Committee, should be promoted.

(ii) South African Military Academy, Saldanha

The transformation of the Academy remains critical. The staff and student population needs to be reflective of the national demographics.

The staff vacancy rate is too high. It is imperative that the Academy remains sufficiently staffed.

The need for further development of the Academy’s research capacity is noted. Creative methods of accessing additional sources of research funding needs to be developed. Closer links between the private sector, particularly fellow research institutions, both domestically and abroad, needs to be fostered.

There is a need for satellite campuses to particularly other military bases across South Africa.

Much work needs to be done to improve the quality of both exam results and low pass rates.

Library services currently offered are insufficient to the study needs of students. Such services and the study material available must be urgently improved. Advantage needs to be taken of current technological development.

Greater balance between the physical and intellectual development of students are needed. The review of the current three year degree programme offered by the Academy to accommodate this balance is important.

Commitment to National Service and the aims of the public service needs to be encouraged among both students and staff members. It is important that students are not demoralised, as this would affect professionalism at the Academy.

The retention of lecturers and the increased development of PHD students needs to be prioritised. The recruitment of specialised lecturers, particularly black and female, should be actively promoted. FORMAL ADOPTION OF REPORT BY THE COMMITTEE:

This report of the oversight visit to the South African Military Academy, having been put to the Committee, was adopted on 9 October 2007.

Report to be considered.

APPENDIX 1

COMMITTEE DELEGATION LIST

Ms T V Tobias [Chairperson and leader of the delegation] Mr S B Ntuli [ANC] Mr J Schippers [ANC] Ms P Daniels [ANC] Mr L Diale [ANC] Mr S Pheko [PAC]

APPENDIX 2

OFFICIALS FROM SOUTH AFRICAN NAVAL BASE, SIMONSTOWN:

Vice Admiral J. Mudimu

Rear Admiral H. Bester Rear Admiral (JG) K. Louw

Rear Admiral (JG) P. Duze

Rear Admiral (JG) R. Higgs

Capt L. Fourie

Capt L. Hutton

APPENDIX 3

Officials from the South African Military Academy [Management]: Commandant of the Military Academy R Adm D J Christian

Academic Programmes: Dean of the Faculty of Military Science: Professor D J Malan Dean of Students: Dr E Van Harte, University of Stellenbosch

Military Professional Development Programmes: Lieutenant Colonel S B Nombewu

Support Services Colonel G M Louw Learnerhip Leadership: Ensign S Ndlovu

General Officer Commanding Training Command Maj Gen M A Ntshinga

Chief of Staff Col K Mancotywa

Chief of Joint Operations of the South African National Defence Lieutenant General Themba Matanzima

1. REPORT ON VISIT TO POLLSMOOR PRISON TO CONSIDER POSITION OF AWAITING TRIAL PRISONERS

Report of the Portfolio Committees on Justice and Constitutional Development, and Correctional Services on a joint oversight visit to Pollsmoor Prison to consider the position of awaiting-trial prisoners, dated 21 November 2007.

The Portfolio Committees on Justice and Constitutional Development, and Correctional Services, having undertaken the above oversight visit report as follows:

Aim of the visit

On 23 October 2007, the Portfolio Committees on Justice and Constitutional Development, and Correctional Services, and the Select Committee on Security and Constitutional Affairs undertook a joint oversight visit to the Pollsmoor Correctional Facility. The aim was to consider overcrowding in prisons, particularly the position of awaiting-trial prisoners. Representatives from the Magistracy, the National Prosecuting Authority and the Judicial Inspectorate of Prisons were also present.

Participants

The following members of the Portfolio Committees on Correctional Services, and Justice and Constitutional Development, and the Select Committee on Security and Constitutional Affairs visited the Pollsmoor Correctional Centre:

Portfolio Committee on Correctional Services: Mr D Bloem [Chairperson], Ms LS Chikunga (ANC),Mr S Mahote (ANC),Mr E Xolo (ANC),Ms W Ngwenya (ANC), Mr J Selfe (DA) and Mr H Cupido (ACDP)

Portfolio Committee on Justice and Constitutional Development: Mr G Magwanishe [Acting Chairperson], Mr J Sibanyoni (ANC),Ms M Meruti (ANC) and Ms C Johnson (ANC)

Select Committee on Security and Constitutional Affairs: Kgoshi L M Mokoena [Chairperson] – Limpopo, Ms F Nyanda (ANC) – Mpumalanga and Mr L H Fielding (DA) – Northern Cape.

The Committees were accompanied by the following parliamentary support staff: Ms R Lawrence (Personal Assistant to the Chairperson of the Portfolio Committee on Correctional Services) and Ms G Dinizulu (Committee Secretary to the Select Committee on Security and Constitutional Affairs), Ms C Balie (Committee Secretary to the Portfolio Committee on Correctional Services), Ms N Skaka (Committee Assistant) and Ms C Silkstone (Researcher to the Portfolio Committee on Justice and Constitutional Development)

Pollsmoor Correctional Facility was represented by: Mr Mkabela ( Area Commissioner), Mr Nthombeni ( Regional Commissioner: Corporate Services), Mr Modisadife (Head: Admission Centre), Ms Dayimani (Head: Medium B Centre), Mr Molefe (Head: Medium C Centre), Mr Scholtz (Acting Head: Medium A Youth Centre) and Ms Claassen (Head: Female Section)

The Department of Justice was represented by the following members of the Judiciary: Ms M van Eeden (Acting Senior Magistrate, Wynberg) Mr M Dimbaza (Chief Magistrate, Wynberg), Mr H Swart (Acting Chief Magistrate, Cape Town) and Mr Zantsi (Senior Public Prosecutor, Athlone)

The Judicial Inspectorate of Prisons was represented by: Ms Pritima Osman (Acting Director: Functional Services), Mr T Titus (Visitor’s Committee Co- ordinator)

Overview of proceedings

The Department of Correctional Services gave a short briefing to the Committees on the Pollsmoor Management Area, which was followed by extensive discussions. MPs then spoke with a number of awaiting-trial prisoners, especially pregnant women, juveniles and children.

Briefing on the Pollsmoor Management Area

Pollsmoor is overcrowded. The present occupancy rate is 168%. While Pollsmoor is designed to accommodate 4 252 offenders, at present the facility accommodates 7 296 offenders in total. Of these, 4 823 (66.8%) are awaiting-trial prisoners. At the Female Centre, which MPs visited, there are 397 offenders, of which 47% are awaiting trial. The occupancy rate is 162%.

The Department provided the Committees with the breakdown in the table below of awaiting-trial prisoners, who had either not been granted bail or had been granted bail but could not afford to pay. Sentenced juvenile offenders as well as awaiting-trial juveniles (18-21) are housed in the Medium A section.

4.2

The Department also provided the information, which is set out in the table below, on the number of successful conversions to correctional supervision in terms of sections 62 (f), 71 and 72 of the Criminal Procedure Act 51 of 1977 from 1 March 2007 – 30 September 2007. Section 62(f) of the Criminal Procedure Act 51 of 1977 empowers the court to release an accused on bail under the supervision of a probation officer or a correctional official. Section 71 of the Criminal Procedure Act provides that awaiting-trial juveniles may be placed in a place of safety or under supervision, instead of release on bail or detention in custody, while section 72 refers to release of an accused on warning.

|Submitted |Successful |Submitted |Successful |Submitted |Successful | |March |69 |48 (69.5%) |59 |47 (79.7%) |0 |0 | |April |75 |32 (42.7%) |29 |14 (48.3%) |0 |0 | |May |48 |32 (66.7%) |23 |19 (82.6%) |1 |0 | |June |48 |38 (79.2%) |15 |12 (80%) |0 |0 | |July |43 |43 (100%) |44 |28 (63.6%) |8 |8 (100%) | |August |104 |21 (20.2%) |90 |48 (53.3%) |5 |2 (40%) | |September |96 |56 (58.3%) |225 |129(57.3%) |14 |10 (71.4%) | | 4.3 Interventions to address overcrowding at Pollsmoor include:

The appointment of four additional court officials (now a total of seven) to assist with the reduced bail applications and alternative placements for awaiting-trial prisoners. A list of section 62(f) and 63 applications is submitted weekly by the court officials to the various courts. Heads of centres attend monthly case-flow meetings to address the management of overcrowding. A list of awaiting-trail children is provided to various courts and at case flow meetings on a monthly basis. The names of awaiting-trial children are given to the Department of Social Development each Friday. There is constant interaction between the in-house social workers and the Department of Social Development for available bed space at places of safety.

Issues Arising

Applications in terms of section 62(f) of the Criminal Procedure Act

In response to queries about the granting of applications to place an accused under the supervision of a correctional or probation officer in terms of section 62 (f) of the Criminal Procedure Act of 1977, representatives from the Magistracy expressed doubt that the Department of Correctional Services has sufficient capacity to monitor those released in terms of this section. It was said that magistrates are unable to simply release persons awaiting-trial without the assurance that there are arrangements in place to ensure that they will return to court. MPs also heard that a common concern is that the majority of juveniles are being held for ‘aggressive’ offences. Their parents do not always want them at home for reasons that include being unable to guarantee that they will be able to bring their children to court on the appointed dates. There are also not enough places of safety and secure care facilities.

Conditions of Bail

Pollsmoor officials explained that there were many awaiting-trial prisoners who could not afford bail, even if it was below R1000, as shown in the Table in paragraph 3.2. above. However, they could not provide the Committees with a breakdown of the bail amounts under R1000, nor could they tell the Committees precise details of the alleged crimes committed.

It emerged that the factors involved in granting bail are complex: bail is intended to ensure that an accused returns to court on the appointed date, and is meant to take into account the issue of whether the accused can afford bail. Where the bail amount is small, it does not necessarily mean that the offence is not serious. Magistrates also take into account the seriousness of the offence, the strength of the case against the accused and the personal circumstances of the accused. The number of previous convictions is also taken into account.

Amendments to the Criminal Procedure Act were designed to make it more difficult to get bail. Schedules 5 and 6 to the Act state that bail may not be granted for the offences listed in these Schedules, unless there are exceptional circumstances.

Lack of information on the committal warrant

Awaiting-trial prisoners are not assessed when first brought to Pollsmoor. The committal warrants that accompany awaiting-trial prisoners do not provide sufficient details of the crime for which the accused is being detained. Typically, the committal warrant will simply state in broad terms the crime for which the accused is being held.

This makes it difficult for prison officials to establish whether a particular awaiting-trial prisoner’s case should be brought to the attention of the authorities. The lack of information means that awaiting- trial prisoners can spend unnecessary time in prison. Prison officials need access to the court file in order to properly understand why an awaiting- trial prisoners is being held.

Legal facilities available to awaiting trial detainees

Correctional Services officials said that there are facilities available to awaiting-trial prisoners to meet with their legal representatives. The Committees were informed that the Legal Aid Board visits the facility on Tuesdays, Thursdays and Fridays. Officials from the Department of Justice have also visited to explain plea bargaining.

However, through further engagement with the officials, MPs established that the Legal Aid Board does not always visit the facility and that consultations between attorneys and their clients tend to take place at court. The representative from the Office of the Inspecting Judge was of the view that if the Legal Aid Board visited the facility more regularly there would be far more applications for reduction of bail. The Legal Aid Board, however, has a shortage of available practitioners, which impacts on its ability to conduct prison visits.

It was also alleged that awaiting-trial prisoners, who are children or juveniles, are often not given a chance to contact their parents when first arriving at Pollsmoor.

Co-operation and liaison between Departments of Correctional Services and Justice and Constitutional Development.

The Committees heard that there are inter-sectoral structures in place to streamline or facilitate the processing of awaiting-trial prisoners. These structures meet monthly. The Committees heard that awaiting-trial prisoners are considered to be a priority for magistrates, and that magistrates are well versed on issues such as juveniles in custody and the granting of bail of relatively small amounts.

Visits from Magistrates

While magistrates used to visit offenders in prisons, this is no longer common practice. With the creation of the Office of the Inspecting Judge, magistrates no longer feel that this is part of their function, and only visit when invited.

Caseload Backlogs

Although there are systems in place, the enormous in-flow of cases creates backlogs. The Committees were informed that the Department of Justice has once again, from September, instituted backlog courts to reduce this problem.

Interventions to reduce the number of Children Awaiting Trial at Pollsmoor

There are interventions to reduce the number of awaiting-trial children in Pollsmoor. Every month a list of names is provided to courts and to the case flow meetings. Every Friday, Pollsmoor provides the Department of Social Development with a list of sentenced and awaiting-trial children. Pollsmoor is also provided with information on the number of places available at places of safety and at secure care facilities. There is constant networking taking place between the in-house Social Workers regarding diversion, as well as available bed-space at places of safety. This has seen a reduction in the number of male children incarcerated from the end of August 2007 from 195 to 140 in late October 2007.

Committees’ Recommendations

In different forms, several of the observations and recommendations in this section have been made before. They are not particularly novel or exceptional and can even be seen as predictable. The difference however is in the current approach of the Committees. We are determined to follow up on these recommendations and actively monitor progress in regard to them. We are acutely aware of the challenges the relevant departments and other role-players face, but we believe that incremental improvements are possible and certainly necessary – and it is these modest, incremental improvements that our Committees are seeking to pursue. We are also aware of our own limitations, with our “over-loaded” programmes and inadequate research, technical and other support, and so we would not be too ambitious in setting our own oversight targets. We need to be strategic and selective in our oversight targets. In this respect, our main aim is to see incremental improvements in the position of awaiting-trial prisoners in Pollsmoor and put appropriate pressure, consistent with our oversight role, on the relevant departments and other role-players for incremental improvements in the position of awaiting trial prisoners in other correctional facilities. The Correctional Services Portfolio Committee will, of course, focus more on the general conditions at correctional facilities and further advance its oversight role in this regard. However, our two Committees will work closer together to follow through on the recommendations set out below. This will mean working both jointly and, in a complementary way, in our own respective portfolios to monitor progress in respect of the recommendations. We might also work with other relevant portfolio and select committees to follow through on the recommendations below.

As part of the monitoring process, this report will be sent to the Departments of Justice and Constitutional Development and Correctional Services for an initial written response within two months of the date of its adoption. The aim of the response would be to provide information to the Committees, convey the initial views of the departments on the recommendations below, and set the basis for the briefing referred to in 5.3 below. The report will also be sent to the Pollsmoor management and other relevant stakeholders.

The Committees will also convene a joint meeting of the relevant Departments, the Pollsmoor management and other stakeholders within six months to monitor progress in regard to the issues raised in this report and take matters further.

While the Committees appreciate the challenges, we feel that for awaiting- trial offenders to constitute 66.8% of the Pollsmoor offender population is altogether unacceptable. The Committees require a more comprehensive explanation than we got during our visit on why this is the case and what is being done to improve the situation, even if gradually over time. The Committees are keen to get a better sense of how Pollsmoor fares compared to other correctional facilities.

The Pollsmoor officials explained their approach to dealing with the high number of awaiting-trial prisoners, especially children. However, the Committees are not clear that this approach is being implemented effectively – and will engage further on this at the briefing referred to in 5.3 above. The Committees welcome the reduction in the number of male children incarcerated, from 195 to 140, between the end of August and late October this year.

The Committees are concerned about the number of awaiting-trial prisoners who are being detained in prison simply because they are unable to meet bail, especially when the bail is below R1000. It is not cost-effective to accommodate awaiting-trial prisoners where the bail amounts are small. The Committees note that the Department of Justice and Constitutional Development’s 2006/07 Annual Report refers to section 63(A) of the Criminal Procedure Act that allows for the release of awaiting trial prisoners, who have been granted bail, but are unable to pay the bail. The Committees note that the Department of Correctional Services was requested by the Criminal Justice System Review Project to prioritise the release of such prisoners, and to submit a report by end of May 2007, indicating progress. The Committees are interested in what progress there has been in this regard. The Committees feel that the judiciary should, where possible, make use of alternative sentencing so as to ensure that those who have committed petty offences are not sent to the already overcrowded prisons. Prison should be for serious offenders.

The Committees are concerned that Legal Aid Board practitioners do not regularly visit Pollsmoor, except when they are informed that an accused does not have legal representation. More immediate access to a legal representative will result in more applications for reduction of bail, and a decrease in the number of awaiting-trial prisoners. However, the Committees are aware that there was no representative from the Legal Aid Board present during the oversight visit. The Committees are also aware of the capacity constraints that face the Legal Aid Board. The Committees will send this report to the Legal Aid Board and request a report, within two months of the adoption of the report, on the Board’s visits to Pollsmoor and other correctional facilities and the challenges it faces in this regard.

The Committees feel that when an awaiting-trial prisoner is committed to a correctional facility, adequate information of the crime, in respect of which the accused has been charged, has to be contained in the accompanying documentation. This information is usually contained in the case docket or court file. If the information is made available, stakeholders will be better able to ensure that awaiting-trial prisoners do not spend unnecessary time in prison. The Committees request the Department of Justice and Constitutional Development to report on the feasibility of providing the Department of Correctional Services with such information.

The Committees feels that, within their constraints, magistrates should seek to visit correctional facilities, particularly in respect of awaiting- trial prisoners. The Committees are keen to understand what the difficulties are in regard to this and how they might be addressed. The Committees will also raise this with the Magistrates Commission, and also confer with the Judicial Inspectorate of Prison.

While it is clear that there are structures in place that provide for intersectoral engagement, it is not clear to what extent these structures are effective. The Committees will engage on this further at the briefing referred to in 6.3 above.

The Committees feel that there should be greater collaboration between all role players around ensuring better conditions for and the speedy sentencing of awaiting trial detainees – co-operation between the Departments of Justice, Social Development, Safety and Security and Correctional Services should be ongoing.

The Committees note that while sentenced children and juveniles take part in education, sport and developmental programmes in Pollsmoor, awaiting- trial children and juveniles are not allowed to take part. This is apparently because the latter category “fall under justice, not correctional services”. The Committees are clear that this “silo” approach is not acceptable and inconsistent with the notion of an integrated justice system, and feel that all children and juveniles, both those sentenced and those awaiting-trial, should be allowed to take part in the above-mentioned programmes. Some of the awaiting-trial juveniles have been awaiting trial for long periods, some as long as three years.

The Committees note the interventions to address overcrowding in Pollsmoor. There is obviously a need for more places of safety as children and juveniles released from prison cannot always go back to their homes; sometimes there are not even contact details of the families of those released, especially if their families are in rural areas or provinces other than the Western Cape. The Committees note that the Department of Social Development also serves on the intersectoral task team, referred to in 6.11 above, and are interested to receive more information on the availability of places of safety. The matter will also be raised with the Social Development Portfolio Committee and, if necessary, the Department of Social Development will also be asked to attend the briefing referred to in 6.3 above.

The Committees welcome the use of “backlog courts” and are interested in progress in this regard.

The Committees agree that more should be done to ensure that pregnant women, who have committed petty crimes, are not detained in prison but are diverted to community corrections or to other appropriate intervention programmes.

The Committees will follow through on the recommendations set out above and are keen to see progress in regard to them. We do not believe that we should simply carry out oversight visits and write reports for the sake of doing so; there have to be material outcomes. The responsibility for this does not reside solely with the executive. Parliament also has a major responsibility - and, consistent with our oversight role, we commit ourselves to working with the relevant departments and other stakeholders to achieve progress in regard to the above recommendations.

Acknowledgements

The Committees express their appreciation to the Department of Correctional Services, the Pollsmoor management and other stakeholders for their co- operation in ensuring that the study visit was productive. The Committees acknowledge the assistance of Ms Christine Silkstone of the Parliamentary Research and Information Unit in the preparation of this report. Report to be considered.

1. Report of the Committee on Private Members’ Legislative Proposals and Special Petitions on the legislative proposal on Fund for victims of violent crime, dated 31 August 2007:

The Committee on Private Members` Legislative Proposals and Special Petitions, having considered the legislative proposal on Fund for victims of violent crime by Ms D Kohler-Barnard, and having consulted with the following stakeholders:

• Department of Justice and Constitutional Development
• Department of Social Development
• National Prosecuting Authority
• National Treasury
• South African Human Rights Commission
• State Law Advisers,

recommends that permission not be given to the member to proceed with the proposal.

Report to be considered.

                       FRIDAY, 1 FEBRUARY 2008

COMMITTEE REPORTS

National Assembly

1. Report on the Hearing of the Portfolio Committee on Finance on the Annual Report 2006/2007 of the Financial Services Board (FSB)

2. Introduction

The Portfolio Committee on Finance met on 23 October 2007 to consider the Annual Report 2006/2007 of the Financial Services Board (FSB).

The Annual Report was presented by the Executive Officer of the Financial Services Board. After the presentation discussions followed which are recorded below.

Recommendations based on the engagement of the Committee with the FSB are provided in the final section.

1. Risk-Based Supervision

The Committee enquired what model is used in risk supervision, and whether the approached followed prioritised high-risk entities as there appears to be a low number of inspections in long-term insurance and collective investment relative to the value of the assets managed by entities. The Committee also raised concerns about the difference between on-site visits and inspections, and whether failure to submit reports led to inspections. The Committee noted that some of the responsibility for inspections was outsourced and enquired how the FSB was dealing with sensitive information, and what mechanisms were in place to ensure the integrity of the information.

The FSB responded that in 2004 it had adopted risk-based-supervision. Given the limited resources and the extent of its regulatory and supervisory responsibilities, there was clearly an imbalance between what the FSB needed to do and the resources it had available to do this. Some form of risk-prioritisation was therefore required.

The FSB approach entailed ‘risk-weighting’ each of the supervised institutions - the risk rating then determined the nature of the interaction between the FSB and a company. Where the risk-weighting was low interaction would be less frequent than in the case of an institution characterised by significant risk of one form or another.

Certain levels of risk would immediately result in an on-site review. Following an on-site review, if fraud or corruption were detected, an inspection would be called for, as enabled by the Inspections Act. This was a more drastic form of intervention.

In some instances aspects of an inspection needed to be outsourced - this occurred where FSB resources were being fully utilised elsewhere or where the FSB did not possess the particular skills required. In the experience of the FSB there had never been a problem where outside supervision had led to sensitive information being released. The FSB primarily outsourced to specialists, like chartered accountants, and also outsourced work that required highly specialised skills such as computer forensics. The FSB was of the opinion that it was not outsourcing its ‘core work’.

1. The Road Accident Fund

Regarding the investigation of the Road Accident Fund (RAF) the Committee noted that essentially the RAF was insolvent. The Committee asked what the reasons were for the RAF to be insolvent.

The FSB responded that this was quite a difficult case and confirmed that the RAF was indeed insolvent. Some steps had been taken to rectify the situation, but from the perspective of the FSB their report could do no more than refer to the financial situation of the RAF. The FSB did not do extensive, detailed work on the fund and in fact the question why the FSB was required to supervise the RAF was worth asking, as the RAF was not an “insurance company’ in the traditional sense.

1. Inducements

Regarding ‘inducements’ offered by companies to prospective customers, and as mentioned in the FSB Annual Report, the Committee enquired whether such practices were prevalent in some of the industries or were they limited to isolated incidents?

The FSB noted that there were many situations where customers were confronted with inducements. The most familiar one currently was probably the cell phone that came with many cell phone service contracts. However, legislation prohibited using inducements in the case of insurance polices because, unlike a cell phone contract, such polices were for life. One did not want a situation where potential customers were being ‘overinduced,’ that is purchasing insurance more for the inducement than the policy itself.

1. Accumulated Surpluses

Referring to the accumulated surpluses reported on in the financial statements, the Committee enquired why there was a huge accumulated surplus at a specific time. The Committee also noted that there had been quite a substantial increase in levies and enquired how the levy rate was determined, and whether industry members who paid these levies were happy with the FSB’s accumulated surpluses.

The FSB responded that the levy income provided for in the budget was based on ‘old’ statistics, for example the extent of the assets and liabilities of a particular entity based on information available at the time. However, when actual income was collected there was sometimes a divergence: so invariably there was over-recovery of levies. This could also be attributed to the fact that the size of industries, that is of the levy base, had grown. For the period under review the FSB had decided to rebate R 23 million of a levy surplus of R 61 million.

1. FAIS Ombudsman

Regarding the FAIS Ombudsman, the Committee enquired whether this would in future be budgeted for, and, whether, levies would be raised to fund this office?

The FSB indicated that previously this office was accounted for in the balance sheet, but that the FSB’s auditors had advised that this was an incorrect way of accounting for it: it should instead be reflected on the income statement. This would be done in future.

1. Employment Equity The Committee referred to the fact that the Annual Report provided no details on the disability and other employment equity targets set by government, and asked the FSB to please provide details on this.

The FSB responded that it was doing everything it could. The FSB did have a blind actuary, for example. Admittedly they were not close to the 2% target, but they were aiming for it. A particular problem in the case of the FSB was that not all its buildings catered for people with physical disabilities. The new premises that they were probably moving into in 2009 would cater for this.

1. FSB Success Stories

The Committee noted that cases such as Fidentia represented failures to detect and address wrongdoings. The Committee wondered to what extent the FSB had success stories when it came to finding perpetrators. There were no successes that were reported on in the Annual Report.

The FSB noted that the executive committee had in fact had a strategic workshop where precisely this issue was also discussed. The question that had been posed there was whether the FSB was doing enough to publicise its successes. The answer was clearly not. The FSB had not yet decided whether it should for example employ a ‘spin doctor’ or a public relations officer to ensure that the public was aware of what it was achieving. However, the FSB assured the Committee that it had achieved a great deal. The FSB’s point of departure was always to try to get back for investors what they had lost, and indeed there had been numerous successes in this regard. Even after the FSB had recovered what needed to be recovered for investors it still handed cases over to the NPA. The NPA had a high case load, however. The currently existing enforcement tribunal dealt with cases and recovered funds and issues administrative sanctions covered only by the Securities Act. Soon the FSB would request of the Committee that it be permitted to establish FSB-wide enforcement tribunals so that cases could be dealt with expeditiously through this mechanism. The Committee requested that the FSB should report on its successes in future Annual Reports.

1. Repayment of Surplus Apportionments

The Committee referred to the reference in the Annual Report to the fact that there was some resistance amongst some pension fund administrators to paying back ‘secret profit’ funds. The Committee enquired what the FSB was doing to speed up the process. Were any further measures going to be considered in the future if the response rate remained poor?

The FSB responded that this issue had been an ongoing battle between itself and the industry. Some legal positions that were taken by some industry service providers also complicated matters: legal clarity had had to be obtained on some issues, causing further delays. The FSB had subsequently gone back to the industry supported by the increased clarity associated with the Pension Fund Second Amendment Act and was certainly expecting improvement in paybacks as a result.

The chief actuary, through interaction with the industry, was also trying to improve submission rates. The FSB hoped that the additional powers conferred on the registrar would enable more of a ‘big stick’ approach. Ultimately the issue remained that where funds were penalized the penalty would fall on the fund rather than the trustees who were the difficult parties. However, administrators could now be fined rather than the fund, which was a power brought in by the amended act and which gave the FSB increased power. Fines could now be up to R 5 million a day.

The Committee enquired whether the FSB was able to establish how far back these pension fund practices went, and whether the records were sufficient to establish amounts due so that corrective action could be completed.

The FSB responded that it went back quite a long way, to the mid-1990’s, and that it wasn’t difficult to identify when it started because it coincided with the introduction of cash management systems within pension fund administrations.

1. Consumer Education

The Committee enquired what the strategy of the FSB is to reach out to the most rural areas, noting that these often consisted of marginalized people who do not necessarily have insight into some forms of complex financial and insurance issues.

The FSB indicated that its strategy was multi-pronged - one aspect was to get better financial awareness programmes into school curriculums, and there had been interaction between the FSB and National Department of Education in this regard.

Another aspect was the extensive distribution of consumer education booklets that were being produced by the FSB. These were targeted more too rural areas. These booklets were produced in Sotho, Nguni and English. They were generally distributed through obtaining sponsorship from some supervised entities.

The Committee commented that perhaps the FSB should not rely on sponsorship to fund such initiatives but that they should be funded through the budget. The Committee further enquired what the measurements of success were regarding consumer education, and to what extent was there awareness of the FSB and its activities. The Committee noted that FSB offices needed to be located where it could be accessible to the marginalized, and that the booklets were not enough.

The FSB referred to the Annual Report where it was stated that the problem with consumer education was that one could spend a lot of money and not know if it was being spent well. The FSB was presently conducting research regarding how to go about effective measurement of consumer education Initiatives.

1. Promoting the Macroeconomic Environment

The Committee noted the important role the Financial Services Board had to play in promoting a strong macroeconomic climate by ensuring confidence in the financial sector of South Africa and enquired whether the FSB was competent and effective in this regard. The Committee noted that the industry opinion survey that had been conducted, indicated that 72% of clients were satisfied with the FSB with 28% not. The Committee enquired into the main reasons why some clients were not satisfied and how the FSB would address the matter.

The FSB stated that it believed it could say without hesitation that it was contributing to the macroeconomic climate by enhancing faith in the financial services sector. It was, however, also difficult to ensure that no problems existed in the sector.

Regarding the score of 72%, the FSB pointed out that it was not a commercial organisation that was aiming for a higher approval rating than this. It was, after all, a regulatory and supervisory body. There were inevitably firms that had been on the receiving end of regulatory action and that in consequence regarded the FSB more negatively.

Regarding international norms for approval ratings of an entity such as the FSB, the FSB indicated it had in fact asked the consultants who conducted its survey what the international benchmarks for industry satisfaction were. They had, however, replied that an entity such as the FSB was quite unique. They did, however, also indicate that any commercial organisation would be proud of the degree of client- satisfaction received by the FSB.

1. The FSB Balance Sheet

The Committee enquired how appropriate the structure of the balance sheet was for an organisation like the FSB. It noted that the use of rebates was good, but that the FSB was still retaining a large share of funds for itself. The Committee raised concern about the FSB not being too risk- averse for an entity that was protected by law.

The FSB pointed out that its contingency reserve actually represented less than 6 months of operating expenditure. It was reasonable that the FSB’s contingency reserve should cover 3-6 months of such expenditure. These were normal guidelines, within which the FSB worked. The FSB, though, had various forms of reserves. There was firstly a contingency reserve which was limited to a maximum of 10% of gross income. There was also a discretionary reserve consisting of income from fines, which was used to fund consumer education initiatives. Lastly, there were general reserves: these were unlimited.

Regarding the related question of the investment portfolio held by the FSB, the FSB pointed out that this stemmed from a long-term liability the FSB had to fund retirement benefits of some retired employees. Because it was a long-term liability the FSB had decided to establish a long-term investment portfolio to cover it. The portfolio was managed independently so that any risks of insider trading were eliminated. At presents the value of the fund’s assets was double its liabilities.

1. The FSB Remuneration Policy

Regarding the FSB’s remuneration policy, the Committee referred to the call by the Governor of the Reserve Bank to maintain rates of remuneration equal to or below the inflation rate. It noted, however, that the remuneration of senior executives had increased by about 25% during the period under review and that of staff by almost 9%. The Committee requested that the FSB comment on what the remuneration policy of the FSB was and how it was determined.

Regarding performance bonuses, the Committee noted that during the period under review there had been a number of market failures and enquired how this equated with the significant performance bonuses paid out to FSB staff and executives, given its role as regulatory and supervisory entity. The Committee further enquired why it was indicated that the top 25% of staff received performance bonuses, whilst all the executive committee members received them. A related question was how the bonus amount as a percentage of total remuneration was determined, since this appeared to vary quite significantly by executive committee member.

The FSB noted that its remuneration policy consisted of two parts, namely that which dealt with straight remuneration and that which dealt with the determination of performance bonuses.

Regarding straight remuneration, the FSB needed to attract specialised skills and needed to retain the skills that it had. Accordingly, the FSB policy was not to pay what the market paid, as such, but to pay market- related salaries. If it did not do so, it would lose its skilled staff to the very entities that were being regulated. The FSB had to date largely succeeded in retaining staff.

Regarding performance bonuses, clearly top performers had to be rewarded. The FSB’s board had initially said that only the top 20% of staff should receive performance bonuses. The executive committee had argued against this with the board because strict adherence to such a percentage would mean, in reality, that most of the bonuses would be paid out to white employees. There had to be a mechanism, or an allowance made, for recognising outstanding performance relative to a current endowment of skills. As more convergence of skills occurred between black and white employees the 25% figure would be decreased. That is, this would happen when the racial mix of top performers was where it needed to be from an equity perspective. This 25% of staff receiving performance bonuses excluded members of the executive committee, whose remuneration was determined by a sub-committee of the board which executive committee members were not part of. In the case of executive committee performance bonuses, the sub-committee of the board again recognised that at executive level some incentives had to be provided to attract and retain staff. Bonuses were calculated using a market-related benchmark level, adjusted by a measure of individual performance.

1. Staff Retention Measures

The Committee referred to reports that there was a fair amount of poaching of staff occurring, and asked what corrective or preventive measures were being taken by the FSB. It was not enough to merely pay staff ‘market-related’ salaries in order to retain them. Were there any forms of skills development, internship, learnerships and the like?

The FSB noted that it did have a staff retention programme which had provided extensive additional training to staff. An internal staff opinion survey indicated a very high regard for training and development opportunities available to them. Such measures did help to retain staff. However, it needed to be appreciated that the FSB was to some extent a training ground before people left for positions in the industries themselves. Although the FSB paid market-related salaries, which was legally provided for through the Financial Services Board Act, it could not match the large incentives that were being paid in the financial services industry.

Regarding the employee band consisting of junior management and professional staff, the Committee referred to what appeared to be a fairly high staff turnover rate.

The FSB emphasised that all organisations at times experienced difficulties with recruiting the right people. The FSB relied heavily on employing newly qualified graduates and developing them to senior level. In effect, all its newly qualified graduates that were employed were learnerships.

The FSB further noted that too little staff turnover could also become a problem as there were then not enough new opportunities available to staff. It further needed to be noted that within the FSB it was not the top people who left. A last point was that the more rigourous measurement of performance was within an organisation, the more people would be ‘lost’ who were not performing well.

1. Recommendations

 1. The Committee recommends that the FSB report quantitatively in its
    Annual Reports on what had been and what had not been achieved with
    regard to employment equity with special reference to people with
    disabilities.    15.2     The Committee recommends that the FSB give consideration to
    funding consumer education initiatives through its budget rather
    than relying on sponsorships.

1. Report the Portfolio Committee on Finance on the Annual Report 2006/2007 of the South African Revenue Service (SARS), 9 November 2007

2. Introduction

The Portfolio Committee on Finance met on 10 October 2007 to consider the Annual Report 2006/2007 of the South African Revenue Service (SARS).

The Annual Report was presented by the Commissioner of SARS. After the presentation discussions followed which are recorded below.

Recommendations based on the engagement of the Committee with SARS are provided in the final section.

1. Strategy for dealing with tax payment delays of big companies

The Committee thanked SARS for the quality of its report and presentation. The Committee referred to one of the challenges SARS had identified in its Annual Report as being the delays of some of the big companies in paying their taxes and enquired what strategy SARS had for ensuring payment, other than the general promotion of good corporate governance.

SARS indicated that generally the approach was to engage with such companies through their taxpayer relations managers who would discuss the matter with chief financial officers as well as chief executive officers in order to raise their awareness of such practices.

SARS noted, however, that these efforts were not sufficient as it appeared to have become common practice. It was therefore worth considering amending the legislation to ensure more severe penalties than currently legislated, in order to disincentives’ such behaviour. The Commissioner noted that he hoped SARS did not get accused of taking an overly hard line in this regard, but that such measures were perhaps the only way to ensure that things changed for the better.

SARS also doing monitor newspaper articles in terms of how recalcitrant companies were performing, since evidence suggested that they tended to underestimate future profit in their interaction with the tax authorities. Through challenging some of these estimates SARS was able to bring in additional money.

1. Costs of Litigation

The Committee enquired how much it cost SARS to go to court in the period under review.

SARS responded that the cost of court cases in the last financial year was about R 60 million.

1. The Role of SARS in border control

The Committee referred to the Cabinet decision that SARS would be the lead agency in border control and enquired whether it was the international norm that the revenue and customs agency also managed border control.

SARS indicated that the international trend post-9/11 was that customs administrations were moving away from just customs administration and taking up the role of border security. In most countries a multiplicity of agencies still existed and they battled with how to integrate all their activities. It was clear that, in the South African case too, more cohesiveness among the border agencies was needed and SARS would contribute as best as possible in its role as lead agency. The border control centre that had been set up would be useful in this regard, together with new technology.

1. Increased revenue collection and the extent of tax relief

The Committee congratulated SARS on once again achieving success in revenue collected. It asked SARS to elaborate more on the contributing factors that led to the huge increase in revenue collection, referring specifically to personal income tax revenue gains and the fact that corporate income tax now represented a high of 24.5 per cent of total tax collected. As a result of this, tax as a percentage of GDP was now greater than 27 per cent. The Committee asked SARS to specifically link this question to the supposed ‘tax relief’ of recent fiscal years, since in some respects these trends suggested that the burden on the person in the street had increased, even if nominal personal income tax rates had been lowered.

SARS referred to a number of factors which produced revenue overruns. Firstly, there was improvement in the rate of employment as well as increased remuneration. Wages increased at a higher rate than inflation so nominal personal income tax revenue had increased correspondingly. Bonuses paid out were also higher in certain sectors. A second factor was business profitability, which impacted on corporate income tax collected. The Commissioner referred to the SARS presentation which had showed that there was a significant increase in corporate surpluses in the period under review when compared to previous years. Domestic expenditure was also higher as a result of higher household consumption. This meant that more VAT as well as personal income tax was being collected. A higher level of imports occurred than anticipated which also resulted in a slight increase in the customs duty collected.

Regarding the tax burden, SARS stated that the issue was that of the right fiscal balance. What was needed was to retain tax progressivity so that if you earned more, you also paid more. It was also necessary, however, to ensure that the lower ends of the income scale were not overburdened. SARS noted that the policy intent for most of the last ten years had been that as South Africa created additional fiscal space, the lower income brackets benefited more - thus, for example, 8 to 9 years ago the threshold income for income tax was R 18 000.00, whilst this year it was R 43 000.00.

As the tax base broadened, the burden on particular tax payers was reduced. SARS wanted to ensure that all South Africans paid their right and fair share and believed that the current system was a fair and equitable one. Whilst all over the world people said that they didn’t like to pay tax, South Africans were different. People were comparatively happy to pay tax because they knew they were contributing to a better country. South Africa continue to face a structural constraint as the tax base remained a narrow one - it was only as the economy grew that the number of tax payers would also increase and the structure of the tax system would change further.

The tax mix in SA had also changed considerably over the last decade. There had previously been a huge dependency on some individuals to carry the tax burden and it was now distributed more evenly.

Regarding the fact that tax now stood at 27 per cent of GDP, there was an argument amongst observers that even this was too low because South Africa was a developing country with a large developmental role required of government. Even though the figure now exceeded 25 per cent SARS felt that there was still a balance between public and private sectors and that too many resources were not being transferred from the private to the public sector. Lastly, all of South Africa’s tax rates were comparable, as SARS had pointed out repeatedly, to those of other countries.

1. Employment equity and disability figures

Referring to employment equity, the Committee noted with disappointment that, in reporting on disability figures, the Annual Report did not provide disability figures broken down by race, gender and level of staff, which was necessary in order to get a good picture of equitability in this respect. SARS began by pointing out that the labour department had a new compliance model which rated an organisation based on a composite score. Issues of disability actually had a very low rating in this particular compliance model and it would be of interest to go back and determine why this was the case.

SARS had, however, made significant progress in this regard, if the last five years were considered. And amongst the 233 disabled peopled SARS employed, 4 advocates were included. It was not only at a low skills level that disabled people were employed by SARS.

1. The debt to revenue ratio

The Committee noted that the debt to revenue ratio had decreased and that SARS was doing well in this respect. It also referred to the statement by SARS in April that there would be further changes in this regard. The Committee noted that the international benchmark was 3 to 7 per cent and wondered when and how SARS would reach that target.

SARS confirmed that its present ratio was about 12 per cent. Whilst this ratio looked quite high on paper, one of the reasons for this was how debt was classified. The SARS debt book included debt under dispute, which was different from the way many other countries classified their debt. SARS was currently working on a proposal to reclassify debt. This would immediately result in about R16 billion not being shown as debt and the ratio would come down to 8 to 9 per cent.

1. Customs

In the case of customs, the Committee referred to the Annual Report’s statement that a substantial number of vehicles had been seized and requested more information on this, such as where seizures took place, what types of vehicles were seized, and what procedures Customs followed to ensure that it was acting reasonably and not seizing vehicles which in fact were legal. The Committee also requested information on Customs officials and what their job descriptions were, so as to ensure that they did not go beyond their mandates in the exercise of their duties. The Committee also enquired whether SARS would be able to initiate a commission of inquiry should there be reasonable evidence that wrongdoing and misuse of positions was in fact occurring.

On the seizure of vehicles, SARS emphasised that no seizure of vehicles should take place outside of the law or an unfair basis. Where any transgression of either the rules or the required levels of integrity occurred, SARS would deal with the offenders in terms of the law. They would be given a written or a verbal warning, appear before disciplinary committees and the like.

Though it would probably not establish commissions of inquiry, SARS would always try to find out what went wrong and who was responsible, and then address that wrong. SARS was, however, a human organisation and mistakes and lapses of judgement sometimes occurred. What was important was to put systems in place to ensure that when such lapses did happen, the public was not unfairly treated.

Regarding the legal seizure of motor vehicles, SARS detailed the process to be followed. SARS detained second hand motor vehicles for at least 42 days to allow the clearing agent or the importer to claim or produce all the necessary documents. If, after 42 days, those documents were not produced, the process moved to the seizure stage.

Motor vehicles were a complex problem for a number of reasons. Firstly, South Africa allowed second hand cars to cross through its territory to neighbouring countries but these vehicles did not all get there and those that got there often found a way of getting back.

There were also a number of entities which had forms of jurisdiction over vehicles coming into the country. For example, apart from the Department of Transport, there was also the SABS, since vehicles actually had to meet their standards. The DTI also made decisions in terms of what imports they did and didn’t allow in a desire to protect the domestic motor industry.

1. High-risk and low-risk tax-payers

The Committee referred to the distinction made in the Annual Report and elsewhere between high-risk and low-risk tax-payers and asked SARS to clarify the distinction.

SARS typified a low-risk tax-payer as one whose income was limited to a monthly salary. A more high-risk category would be a tax payer receiving income from a range of investments where the risk would reside in the question of whether all investment income had been adequately reported.

The key aspect for SARS was to use its limited resources in a manner which concentrated efforts on high-risk tax-payers. There were a number of attributes SARS associated with high-risk tax-payers, such as being involved in an industry associated with structured tax products, having a history of non-compliance, a tendency for accounting income and taxable income of the company to be markedly different, as well as marked divergences between the nominal and effective tax rate paid by the company, the amount of time tax matters featured in the board meetings of the company, and the frequency with which the company was ready to interpret tax law differently from SARS.

1. Measures to reduce tax risks in the property market

The Committee referred to the statement in the Annual Report that some risks and challenges existed regarding property sales. The Committee enquired whether, in SARS’s endeavour to address the problem, it had made any attempts to link up with stakeholders who were involved in the bond registration process.

SARS noted that, as mentioned in the Annual Report, property was one of the emerging focus areas. SARS had been working very hard with the information provided by intelligence colleagues, and had dedicated resources specifically to this area. A lot of cases were already underway and SARS would probably be in a position next year to provide details of the outcomes of these efforts.

SARS indicated that it relied on information from the SARS hotline where people phoned in and identified suspicious activities within the property sector. SARS also had a third party interface with the deeds registry. There had also been efforts to talk to the Estate Agents Board.

From a broader policy perspective it needed to be considered whether special reporting requirements needed to be imposed on the industry, for example when someone bought a particular property for R 10 million in cash. Under such circumstances it would be good for SARS to know where the cash and income came from, for example. SARS was still in the early days of its work here and the reporting requirement might still be given greater consideration.

1. Impairment loss in 2006/2007

The Committee enquired after the statement in the Annual Report that in 2006/2007 there had been an impairment loss of R 68.4 million for certain software programmes and asked after the circumstances that led to the impairment of these assets.

SARS responded that it had contracted for particular software that it was using for call centre services. In December 2005, the company it had contracted signed a further contract for the next few years which would enhance that software and provide a range of additional services as well. That company was then taken over by another software company and the people who took over the company said that the previous contract was not going to bind them and that the additional services that SARS was expecting at the negotiated rate would not be supplied. SARS then had new software developed in order to ensure that the initial software it had purchased would be useable. But in accounting terms it was necessary to write off the loss. SARS would still try to recover some of this ‘theoretical’ loss by seeing if other government entities were interested in using the initial software.

1. Empowerment of small businesses

The Committee enquired after the extent to which small businesses were being empowered and noted that the Annual Report contained a section discussing the Large Business Centre but did not have a corresponding section on small business measures.

SARS noted that small business was now of equivalent importance to large business, except that they provided less revenue. SARS reviewed some of the things that it and the National Treasury had done to assist and empower small businesses. There was firstly the separate tax regime for small businesses, where they only paid a marginal tax rate of 0per cent for taxable income up to R 40 000.00 and only 10per cent for taxable income from R 40 001.00 to R 300 000.00. There were also the educational programmes which were directed at small businesses, as well as the work done during the small business amnesty. Further, in the budget of this year the Minister of Finance had announced that SARS and Treasury would be working on a new tax product for small businesses. SARS had also set up small business desks at most of its offices which were intended to provide assistance geared especially at the concerns of small business owners.

A significant difference between large and small businesses was that there were fewer large businesses and so it was possible to concentrate the staff that handled large businesses into one big centre instead of many smaller ones. For small business support one needed to decentralise and ensure that more facilities were created on the ground where owners could interact with SARS, receive assistance, education and the like. What SARS now intended was to have a small business unit at its head office which managed all of these programmes in a more coherent way and developed products in consultations with small business which were more in line with their own capability.

1. The Performance of SARS The Committee noted that it was difficult to exercise oversight over SARS because it was difficult to set numerical measurable objectives for its activities. It further noted that, three or four years ago, SARS had appeared very good, but given the amount of revenue it was collecting now, it had perhaps not been as good as supposed then! One international measure of performance for revenue collection agencies was that total expenditure should be between 1 and 2 per cent of revenue collection. SARS’s was currently closer to 1 than to 2per cent, which suggested very good performance.

SARS noted that the Committee had clearly described the trajectory of a state institution in the democratic era in South Africa. There had been a state in the past which had dealt with a minority in a particular way and with a majority in another way. In a very short space of time, this same state machinery had transformed itself to deal with the majority in a very different way that is as part of the citizenry of the country. Further to this challenge, SARS had always said that it was a very old and well established institution with old systems, old processes and huge people challenges. The Annual Reports reflected the progress that had been made against this background in turning SARS into a more modern, effective and efficient institution. The strategic plans on the other hand, set out SARS’s ambition or aspiration to be as “world-class” as possible, using as a benchmark countries that had had tax systems operating for fifty years or more.

There were, however, constraints that SARS had to contend with, such as that there had been no really significant investments in technology systems in the organisation. SARS had put in new computers and was going to put in a new network over the next few years, but the old technology systems were still the base on which it operated, which was, by the way, not too different from many other similar agencies around the world as well. Regarding human resources, significant numbers of people had also left, as a result of poaching by the private sector as the economy boomed. Skills retention was becoming a significant challenge. SARS anticipated that the salary bill would increase as a result of trying retaining scarce skills in the organisation.

1. The role of compliance in revenue collection increases

Wit respect to a previous question about the reasons for more revenue being collect, the Committee enquired whether the increased over-runs was maybe due to compliance and how much of SARS’s revenue gains and over- runs were in fact accounted for by compliance improvements. The Committee further referred to the Katz Commission estimate of some years ago that the tax gap was approximately R 15 billion and enquired whether SARS had any estimates of what the current tax gap was.

SARS pointed out that its compliance model made it easy for people to comply, and that it was trying to get increasing numbers of people to buy into the recognition that they also had to do their bit. More and more disincentives also had to be created, as well as campaigns with big and small businesses to ensure that businesses bought into this enhanced compliance culture. This required greater frequency of contact between SARS and business in order to ensure the consolidation of the right behavioural patterns and interactions. Where businesses did not comply, however, the law existed and would be utilised by SARS.

In a sense voluntary compliance was an end destination. Compliance was largely determined by the tax and broader culture of that society and how it would behave if there were no other pressures on it to pay all taxes due than the recognition of it being the right thing to do. Tax administrations around the world dreamt of achieving true voluntary compliance. Studies suggested that the factors which determined the degree of compliance included the credibility of government and its institutions, and the extent to which the tax administration was respected and regarded as competent and fair.

Regarding the tax gap, a key consideration was how to better identify risk and this needed better information than SARS had at present. Third party information was a key aspect of SARS’s strategy in this regard. The better the risk engines, the more progress SARS would make in eradicating the tax gap. SARS noted, however, that no real estimates had been made recently of the size of the tax gap.

1. Writing off outstanding debt

The Committee noted that SARS expected to collect some R 11 billion of its outstanding R 57 billion debt, that is R 46 billion was expected to be written off. The Committee recognised that one never collected 100per cent of bad debts, but wondered why SARS was expecting to write off such a large amount. The Committee also wondered what measures could be applied to delinquent tax payers in this regard.

Regarding especially older debt, SARS indicated that in the last 2 to 3 years the debt book had been stabilised in the sense that the debt book hadn’t grown further. A much bigger focus was intended in the next few years on old debt. At the end of the process all debt had to be either collected, adjusted or written off. SARS noted that a large portion of debt in the twenty-four months or more categories was estate debt or debt of companies which had ceased to trade. Debt collection thus also depended on third parties which made this a challenging category of debt.

1. Tax disputes

The Committee referred to the fact that where SARS made a ruling on a tax issue, most tax payers capitulated to this ruling even if they found the SARS explanation somewhat clumsy. The normal person in the street was unlikely to contest the issue further in court. The Committee therefore wondered what percentage of entities that capitulated to SARS rulings were people and what percentage were corporates who could afford lawyers, since this might be useful information.

SARS argued that resource imbalances in fact generally favoured tax payers rather than tax administrations. SARS almost never initiated litigation. A court process generally started when tax payers were unhappy with their assessments. Tax payers could appeal to special courts that had been created for tax matters: a tax board existed for smaller questions which were similar to a small claims court. This was precisely to make the legal process more accessible to the person on the street. A tax court also existed for larger cases. If a party was not satisfied with a decision of the tax court then they could also go to a higher court.

However, various measures also existed to help resolve matters in a non- litigious manner through mediation and facilitation of disputes outside the more adversarial court environment.

1. Information security at SARS

The Committee enquired how secure information was at SARS.

SARS noted the importance of information security given the nature of the information it held. IT security was a constant game of ‘safe maker’ and ‘safe breaker’. A key issue was ensuring that staff followed procedures as required: typically where security was compromised it was not the IT security system which was at fault but people who had not followed procedures properly. To date there had been no significant instances of IT security problems at SARS.

1. Small business tax amnesty

The Committee referred to the small business tax amnesty drive and enquired how many convictions had been made of people who did not comply with tax law.

SARS emphasised that the purpose of the tax amnesty had not been punitive but had been aimed at getting small businesses compliant. They then benefited from a clean slate and SARS benefited from the added revenue and increased integrity of the system. Therefore the current phase was primarily concerned with processing and adjudicating applications. SARS would however follow up non-compliant businesses in future.

1. Tax payer contact details

The Committee noted that SARS had been making an effort to clean up the contact details of taxpayers to reduce the quantity of undelivered returns, which was cited as one of the reasons for the outstanding return book. The Committee enquired after the practical measures taken by SARS to ensure that contact details were current and accurate.

SARS firstly noted that the obligation rested on tax payers to ensure that their details were correct and updated. SARS had, however, used the opportunity of returns being submitted every year to ensure that details were still correct. There had also been address campaigns.

Such measures had not always proved to be enough and SARS had also come to rely more on third party sources. The institutions that SARS believed had the best details of this sort were the credit bureaux and SARS had started using them as a reference point for tax payer data. Details were compared and where they corresponded was ticked off as being in all probability correct. Using this approach, SARS was able to send returns only to those tax payers where a fairly strong likelihood existed that the address and other details were accurate. In the previous filing season about 300 000 returns came back. To date, of 3.9 million sent only 27 000 had come back: thus this approach had already delivered clear benefits.

1. Recommendations

1. The Committee recommends that SARS, in reporting on disability
   figures, provide such figures broken down by race, gender and level
   of staff, as this disaggregation was necessary in order to get a
   better understanding of its performance with regard to the Employment
   Equity Act.
2. The Committee recommends that SARS provides a report on the need to
   consider changing existing legislation to enable SARS to have
   recourse to more severe penalties in the case of tax payment delays
   by companies.
3. The Committee recommends that SARS provides it with a detailed update
   on progress made with respect to the measures to reclassify existing
   debt.
4. The Committee recommends that SARS provides it with a more detailed
   report of trends in SARS’s salary bill, following from its comments
   at their Annual Report hearing that SARS might have to increase
   salaries in some instances as part of its staff retention strategy.

1. Report the Portfolio Committee on Finance on the Annual Report 2006/2007 of Statistics South Africa (Stats SA), dated 9 November 2007

2. Introduction

The Portfolio Committee on Finance met on 17 October 2007 to consider the Annual Report 2006/2007 of Statistics South Africa (StatsSA).

The Annual Report was presented by the Statistician-General. After the presentation discussions followed which are recorded below.

Recommendations based on the engagement of the Committee with Stats SA are provided in the final section.

1. Fruitless and wasteful expenditure

The Committee requested that StatsSA provide a more detailed explanation of the fruitless and wasteful expenditure documented in the Annual Report, particularly referring to services procured and paid for but not utilised, in excess of R2,4 million (p 136).

StatsSA indicated that this expenditure was primarily related to field operators appointed to conduct the Community Survey. The Statistician- General explained that the particular company appointed had opted to accommodate fieldworkers at the Sheraton Hotel in Cape Town, at an excessive cost to StatSA. An immediate decision was made to dismiss the company, but expenditure had already been made. However, StatsSA contended that despite the financial loss, a clear and important signal had been sent about misuse of funds, and maintaining reasonable standards affordable to the department.

1. Debts written off

The Committee queried debts written off in the amount of R704,000 (p 135), as well as the source and circumstances around the non-recovery of funds.

StatsSA responded that the funds written off primarily refer to debts from the 1996 and 2001 censuses. StatsSA applies the law of prescription, meaning that debts will be written off if they are more than three years old and have little positive feasibility in terms of recovering funds. Most of these are small debts, in which the cost of recovery would be higher than the debt itself, and therefore would not constitute efficient use of public funds.

1. Re-weighting and updating of the CPI and PPI

The Committee requested further information on the reported processes of re-weighting and updating of the CPI and PPI.

StatsSA responded by emphasising the organisational priority placed on Economic Statistics. The CPI is re-weighted approximately every five years or so based on the results of the Income and Expenditure Survey (IES), although this year the re-weighting is taking place slightly outside of the five year period. Currently, there are just over 1,020 products in the CPI basket, which is relatively high in comparison with other countries. Internationally, in both developed and developing countries, CPI baskets generally include between 200 and 800 products.

The current CPI basket is based on products that represent 0.01% or more of total national household expenditure. This relatively low threshold means that too many items are reflected in the basket. StatsSA also indicated that the CPI basket has been criticised as a “rich man’s basket” that is overly reflective of expensive luxury goods, rather than products used regularly by “normal day-to-day people”. StatsSA reported that a new system of identifying products for the basket would address this issue. A provincial approach has also been adopted, whereby a basket is developed for each province based on both household expenditure, and the number of households that have bought a particular product. This will to some extent exclude items that are expensive, but are bought by very few households, as a minimum number of households will have to have purchased the product in order for it to appear in the basket.

A document detailing this approach was posted on the StatsSA website last month, and has received good media coverage. It outlines a total of 400 products which should appear in the new CPI basket, 300 of which were found to be common across all provinces. StatsSA now needs to begin collection of the items not currently in the basket, so that when the CPI is published in January of 2009 it will be based on the new basket of goods and will have new weights from the IES, which will be published in November of this year.

StatsSA contends that this approach will mean a more “streamlined” CPI, which includes items bought by more people. Although the CPI will still very much be determined by expenditure, and therefore to some extent dominated by the spending habits of wealthier households, StatsSA suggests that it will nonetheless still be more reflective of the products average households buy, and the impacts of these on inflation.

1. StatsSA website

The Committee requested more information on use of the StatsSA website, particularly related to the visitors accessing the site, and any feedback obtained. The Annual Report indicated an increase of up to 15% in visitors to the website.

StatsSA responded that indeed the issue of how many people visited the website was less relevant than others, including: the specific hits received; how often links are followed from search engines; whether experiences in use of the website are positive or negative; whether queries can be dealt with automatically; whether the website is accessible; and who is accessing the website, and whether they are statisticians or other interested parties.

Although the website has limitations in terms of providing information to people who are not connected to the internet, it remains and efficient and cost-effective means of providing a large amount of information to users.

At one level, StatsSA receives hits from “tourists”, who look at the front page, sometimes for access to the indicators that appear in the scrolling banner (e.g. CPI, PPI, GDP, etc). StatsSA keeps data on a monthly basis about what pages are accessed by visitors; incidentally, the vacancies page is one of the most frequently visited.

At a second level, StatsSA looks at “harvesters” of information from the website, particularly in terms of publications that are downloaded. For example, on the day of the CPI release, numbers of hits to the website are very high. The most popular publication downloaded between July 2006 and July of 2007 was the Labour Force Survey.

StatsSA also looks at “data miners”, as the website offers the ability to tabulate data online. Specific programmes are in places to facilitate access to time series data, including the household surveys and censuses. StatsSA also requests that users subscribe to data publications although these are free, in order to obtain information on who is interested in the data and how they use it. About one-third of subscribers are located in the private sector.

StatsSA also runs a user satisfaction survey, and contends that over time satisfaction among external users is increasing, but this data is not released publicly.

1. Security of statistical information

The Committee enquired about the security of statistical information, given that this is very sensitive.

StatsSA responded that there are systems in place to protect the security of data, but that in relation to the website in particular, these are admittedly weak. The website has not been hacked successfully for several years, despite frequent automated attempts. But there is room for more vigilance.

Also, StatsSA suggested that there are inevitably always some security issues with regards to personnel. StatsSA depends on staff within the organisation to maintain data security, and staff are required to sign an oath of confidentiality. StatsSA is looking at standardising confidentiality clauses for anyone working with statistical information.

However, staff shortages and overlapping functions also threaten the security of data to a certain extent. For example, some staff are able to access statistical information systems, and also access logs that track entries in and out, and it would be good practice to have these separated. However, many staff members have had to assume multiple responsibilities due to HR shortages.

StatsSA is, however, attempting to build internal IT capacity through training internal systems developers. Some StatsSA interns are working in the Data Management and Information Delivery programme, and are being mentored by a contracted external company. StatsSA is monitoring progress in the development of these skills, and the programme may serve as a model for further growing IT skills within the organisation.

1. Financial performance and under-spending

The Committee raised several questions related to financial performance and under-spending in the past financial year. Members questioned whether under-spending in some programmes was a result of poor planning, or an inability or lack of capacity to spend the allocated budget. StatsSA responded that overall, 94.3% of 2005/06 budget was spent, which represented a significant increase from the previous year, in which only 86% of the budget was spent. One of the major sources of under-spending was in relation to the Community Survey conducted with more than 200,000 participants across the country. Some payments towards the Community Survey were not completed by the end of the financial year, resulting in an under-spending outcome.

However, StatsSA also indicated that total departmental expenditure on a “modified cash basis”, was 94%. There was a departmental savings of R65 million, of which R56 million has been requested from National Treasury for roll-overs, particularly for payments in the Community Survey project (p 102). On an accrual accounting basis, StatsSA would have spent 99% of the final appropriation allocated.

StatsSA also contended that the organisation had fared well in terms of under-spending in comparison to other departments in the cluster. The Chief Financial Officer suggested that StatsSA should take a lead in terms of accrual accounting. She indicated that rollovers should also be taken into account, because those funds are now available to StatsSA in the current financial year.

In another issue related to financial performance, Committee Members asked about the reasons behind high expenditure on consultants and contractors.

Again, StatsSA responded that use of consultants in the department is relatively low when compared with other government departments. However, StatsSA also indicated that the reported number of consultants and contractors used also reflected the large number of temporary fieldworkers appointed to work on surveys, who were paid out of this line item. StatsSA cannot afford to employ fieldworkers on a permanent basis when they are not working on a particular survey. However, the organisation is developing an integrated fieldwork strategy that would result in different surveys running continuously, and would therefore allow for more permanent fieldwork staff.

In terms of expenditure on fieldworkers over the past year, about 6,000 persons were employed temporarily for the Community Survey. Over the same period, about 2000 cars were hired. Rollovers related to the Community Survey explained poor spending performance in Programme 3.

Also, again for the Community Survey, regional offices were opened up to accommodate logistical operations and provide a base for the 6,000 fieldworkers employed. There were also significant costs related to travel and subsistence. One of the areas of most significant expenditure was in hired cars, because the core business of StatsSA requires moving to different parts of the country. There were also high petrol costs, and issues around cash flow for petrol have been overcome by introducing petrol cards. StatsSA also hired a lot of venues for training fieldworkers in the various areas and regions, and on airfare to transport trainers to those venues. This explains some expenditure trends.

1. Virements

The Committee questioned StatsSA on the extent of virements appearing in the Annual Report, and the effect that the shifting of funds may have had on particular programmes. Members asked whether these virements ultimately helped StatsSA to achieve programmatic objectives, or whether any programmes and outcomes were sacrificed. The explanations offered in the Annual Report were thought to be inadequate, given that Administration gained in excess of R5 million, and the Statistical Support and Informatics Programme gained in excess of R10 million. At the same time, Economic Statistics lost more than R7 million, Population and Social Statistics lost in excess of R5 million, and Quality and Integration lost R4 million.

StatsSA responded that the virements conducted were within the limits of Section 43 of the PFMA. Some funds were taken from the compensation line, in congruence with the high numbers of vacancies recorded within the organisation. StatsSA indicated that savings in various programmes were used to correct budgeting imbalances, and highlighted the issue of not always receiving the full amount of funds requested from Treasury.

StatsSA also indicated that all programmes are assessed in terms of achievements towards targets set in the work programme. The work programme is linked to MTF requests, which are also linked to the allocation of financial resources. Any virements or funding shifts are only made based on savings realised in the previous six months, and after careful consideration of the impacts and effects of such shifts. No virements take place where projects or programmes have not achieved their goals. StatsSA contended that no programmes have suffered as a result of virements.

1. Human resources and capacity

Issues around human resource constraints were raised several times during the course of the Hearing. Members were concerned about high levels of reported vacancies, skills shortages, and the absence of team leaders, as well as staff withdrawing from training courses, or failing to compete them altogether. Members suggested that these issues could have serious consequences in terms of the overall performance of the organisation.

StatsSA indicated that in many places in the Annual Report, the term “resource constraints” was used to explain a lack of adequate staff, rather than insufficient funding.

StatsSA also indicated that the organisation faces a number of challenges related to Human Resources, including a shortage of specialised skills in South Africa and the region. Areas of acute shortage are in IT skills, statistical computation abilities, and statistical analysis. This is to some extent related to the ongoing problem of poor performance in maths among learners for historical reasons.

Vacancy rates within StatsSA remain very high. The organisation reported difficulties in attracting highly skilled workers into temporary contract posts. Therefore, StatsSA is looking to create more permanent positions. HR management, together with the Human Capacity Development programme, is working to identify internal capacity development programmes that will produce an internal pool of staff for recruitment to specialised positions.

StatsSA has also acknowledged that the current advertising strategy, where vacancies appear in papers such as the Sunday Times, has not resulted in attracting the skills required. Despite high numbers of applicants, only between 10-20% are generally sufficiently qualified to be short-listed. StatsSA is investigating other forms of media to use for advertising, and also making use of a head-hunting policy.

Resignations remain a problem, and have highlighted the problem of a lack of career progression options within the organisation. Many competing organisations are able to offer better career progression options and benefits, and StatsSA staff tend to be skilled and highly mobile. Human Resources Management will be tabling a Retention Strategy, because ultimately it is not effective to direct efforts within the organisation towards skills development, and then lose newly-trained staff.

StatsSA also discussed the need for more effective managers within the organisation. A new programme on leadership for managers has been introduced. Resignations are often related to the immediate working environment, including both physical working conditions and relationships with managers. The programme will focus on improving management skills and leadership.

Human capacity development programmes have also been put in place to build awareness among learners about careers in statistics, which should be beneficial in the long-term. Bursaries will also be made available from StatsSA both inside and outside of South Africa

Members also queried high expenditure on consulting, contractors and special services, given high vacancy rates within StatsSA. Members asked how long this use of consultants, contractors and special services was likely to continue.

In response, as discussed above, StatsSA responded that high levels of expenditure on consulting, contractors and special services, was generally related to the use of temporary fieldworkers in the surveys conducted. StatsSA currently cannot afford to employ fieldworkers on a permanent basis, while they are not working on specific surveys. Members also expressed concern about the lack of a learnership programme, on order to promote better access to the skills required by StatsSA.

StatsSA reported that an internship programme is in place, and has been supported by the East African Statistical Organisation. The programme currently has twice the number of interns than last year, and the number is expected to double again by next year. However, many more skilled employees are needed still, and StatsSA contends that it needs to open a Training Centre, which will be pan-African but will largely train people within the country.

A learnership programme will also be initiated in the next financial year, and a plan and draft strategy are already in place. Given the organisation’s skills shortage problem, when the Department of Public Service and Administration requested that Departments pilot internal skills audits, StatsSA was one of the organisations that volunteered. Phase one of the pilot has been completed, and two phases remain. StatsSA has also embarked on a skills audit programmatic exercise as well, which focuses on management and the recruitment of suitable staff.

Also, StatsSA will begin offering training to teachers, related to learning outcome 4 in the FET grouping, for grades 9-12. It is hoped that this will eventually be implemented across 27,000 schools, whereby at least one teacher in each will receive training at the FET level. This will also support awareness and entrants into the bursary programme, and other initiatives to enthuse learners about careers in statistics. StatsSA then plans to expand training to include the GET level. A national coordinator for this initiative has been appointed, as well as a coordinator in each of the nine provinces.

In response to a query around StatsSA’s relationship with tertiary institutions, these relationships exist within at least three programmes. One programme is specifically looking at course content related to social statistics. Progress has also been made with one specific university, while others are still being developed. This is particularly important in relation to the statistics training institute that is being developed.

Members also queried why certain HR processes, including HR audits, were not conducted as planned.

In response, StatsSA explained that a specific Team Leader who was not available, and therefore as a consequence, an internal audit in human resources functions conducted by the Internal Audit Unit could not be completed. This again highlights issues of staff shortages and capacity constraints. The Audit has been included in next year’s financial plans.

1. Employment of staff with disabilities

Members also queried the low percentage of persons with disabilities employed by StatsSA.

StatsSA responded that recruitment for data processors in particular has been skewed in an attempt to attract more applicants with disabilities. Percentages of persons with disabilities who are employed within StatsSA may also increase as the organisation moves towards the creation of more permanent positions. A specific unit has also been established to address issues of disability within the organisation, including recruitment strategies. A DDG within the department has agreed to champion of this programme. StatsSA indicated that the percentage of staff with disabilities is unlikely to increase by year-end, or possibly even next year, but will rise in the medium- and long-term.

1. Management and planning

Committee Members raised some general issues related to overall planning within StatsSA, as reflected by under-spending, virements and lack of delivery in some survey products.

StatsSA responded that in some cases, it is difficult to set priorities in the face of competing demands, but that a Programme and Projects office dealing with integrated planning had been established in an attempt to better address this issue. In some cases, StatsSA acknowledged that the organisation had “bit off more than it could chew” in terms of delivery.

1. Poverty line

Committee Members queried whether progress had been made in the establishment of a national poverty line, as announced in the Budget in February.

StatsSA responded that a report had been launched with National Treasury in February detailing the methodology for the construction of a proposed poverty line. Since then, talks have been underway with Treasury and consultation has been invited from the public. A progress report will be provided in February of 2008.

The development of a Poverty Survey is also underway, and StatsSA anticipates that the survey will be have been piloted by end-2007. The survey includes a number of non-money metric measures of “subjective poverty” alongside money metric measures, which together will provide a multi-dimensional picture of poverty in the country. StatsSA anticipates that the results of the pilot will be available in 2008.

1. Delivery of survey products

Committee Members queried a number of survey products that had not been completed as planned, including data on Health and Vital Statistics, and Tourism and Migration annual reports. Resource constraints were cited as reasons for non-completion and failure to reach targets.

StatsSA once again indicated that resource constraints generally referred to skills and staff shortages, rather than insufficient funding.

In terms of the Health and Vital Statistics, and Tourism and Migration reports, these were delayed in part due to the introduction of new programmes for editing data. Further, in both of these specific areas, StatsSA depends on other departments for data. In the case of Tourism and Migration, StatsSA is dependent on the Department of Home Affairs, and has worked with the department of issues of data quality.

Last year, StatsSA reported on similar problems in releasing data on Health and Vital Statistics, and there is a need to improve HR specifically in the division. StatsSA is now working more closely with the Department of Health in order to ensure that in the next year, a demographic and health survey can be conducted, and that the quality of thematic reports can be improved.

In terms of the work programme, StatsSA has committed to undertaking a transport survey, and needs to ensure that that commitment is followed through. StatsSA has developed a comprehensive strategy for economic statistics over the next three to five year, based on the international framework system of national accounts. All economic statistics feed into the system of national accounts so that the GDP can be calculated. The Economic Statistics Strategy identifies ten sectors to be measured in GDP calculations, as well as quality and data gaps that currently exist. This is how the need for a transport survey and business survey were identified. One of StatsSA’s priorities is to improve measures of economic growth, so these surveys will remain in place.

StatsSA indicated that each year, the organisation undergoes a rigorous business planning process, whereby targets are re-examined, and feature in the next work programme. StatsSA contends that close follow-ups are conducted on targets committed to in the previous year.

In terms of future survey products, postal surveys will continue as they are relatively successful. StatsSA is planning an agricultural census in the next few years, and one is underway already. This will feature a combination of postal surveys, phone follow-ups and evidence from the audited books of farms. There will be a poverty survey conducted in 2008, a tourism survey in 2008. The Statistics Training Institute is planned for 2009, and the Census will be conducted in 2011.

1. Business register

Members asked a number of questions related to the Business Register, including how accurate and up to date the register would be, and whether it would give a good indication of the different kinds of businesses operating in South Africa.

StatsSA responded that to some extent, the accuracy of the register is based on assumptions. Businesses that are registered for taxation through SARS appear in the register, and those which are unregistered do not. Classification is based on standards used by DTI and the Small Business Act, and these were revised in 2003. The classifications are quite detailed in terms of industry and turnover, but there are large numbers of businesses which do not provide financial information, and thus cannot be classified in terms of the Act. A summary of this information is available on the StatsSA website.

The Committee queried why StatsSA does not simply use data from SARS for the Business register. One aspect of this is that VAT and revenue collection grows at a different rate to that of the GDP. In general, these should be going in the same direction, but they may not be of the same magnitude due to the specific ways in which calculations are done. The business frame that StatsSA has deduced from SARS data indicates the existence of businesses producing goods and services, as well as the size of these businesses, numbers of employees, and turnover. However, this does not allow for businesses to be located in specific sectors, which is a basic classification in terms of the system of national accounts. The data required beyond what is available from SARS requires specialised economic research.

In terms of the question of completeness, in a closed economy in which national accounts are compiled, it is ideal to be able to measure the totality of all entities involved in the production of all goods and services for the marketplace. There are equivalent questions about people, and where they live. The best way to measure this within the population is to assign unique identity numbers, and most people know the advantages and disadvantages of an ID number. It is negative if the number is associated with a high number of traffic offences. The population register and system of assigning ID numbers has certain limitations, but is useful overall.

Similarly, it is useful to assign unique numbers to businesses, and in the same way, a business ID number associated with tax evasion is a business you would not want to identify with. The project concept behind the Business Register is that we need something as unique as the ID’s used in the population register. If citizens or businesses perform well in terms of the law, they should be rewarded with clean certificates and permitted to do business. If they err, they should be held accountable and punished.

The Business Register also offers possibilities of tracking the nature of ownership and empowerment, and changes in the distribution of wealth. By associating a person’s ID number and the number of the businesses in which they are registered as a director, it is possible to map out how much a particular group is associated with ownership and directorships, if that is an indicator of empowerment. It also allows for a closer look into ownership patterns by sectors of the economy.

Members also queried the health of the Companies and Intellectual Property Registration Office (CIPRO), housed within DTI. Without commenting on the health of a sister department, it is important to note that the Board is mandated by law to register and manage certain entities and companies, and to ensure that the register is updated so that entities that are created are timeously registered, and liquidations are timeously registered as well. Timeous registrations are particularly important so that there is an equation related to the net stock of people and the net stock of businesses that are registered.

In terms of the health of the business database, rather than CIPRO itself, it can be difficult to ascertain whether or not companies are actually active. The register only therefore provides information on aspirations, rather than economic activity. This is limiting, and it would be valuable to move towards a register that separates active and dormant businesses, or even more preferably, one which only includes active businesses, rather than indicating economic intention.

StatsSA indicated that a national registration system would be advantageous. Economic trusts are not registered under CIRPO law or through SARS. StatsSA suggested that a streamlined, national registration process would be useful, in that businesses would be uniquely registered and would also be registered for tax. Businesses would therefore not be allowed to transact in the economy without SARS registration. Businesses ceasing to transact would also be taken out of the accounting system. Some progress in this direction has been made already – Treasury, DTI and StatsSA have agreed to form a project team, and each department has nominated 2 senior official s to represent them on a Project Steering Committee

1. Internal and external auditing processes

Members specifically queried references to a BAUD asset register that was reported to be unavailable at the time of the audit (p 64).

StatsSA responded that the BAUD is a basic asset register system, but that it had not been available due to timing. The Internal Audit conducted coincided with the External Audit, and the external auditors were likely to keep the BAUD register for a longer time, due to lack of familiarity with systems and controls.

In response to issues raised about attendance to the Audit Committee, the Chair of the Audit Committee was absent due to ill health, and this was also explained to the external auditor. However, the Chair provided feedback and support throughout the audit process, although was not compliant with attendance. The Chair has now returned and is in good health, but his absence also highlighted the need to address strategic and risk issues that could potentially threaten the health of the organisation.

The Auditor-General identified some management and control weaknesses within StatsSA, but these were not of sufficient concern to lead to a matter of emphasis or an audit qualification. StatsSA contends that most of the issues have been addressed on an ongoing basis, as soon as feedback is received.

1. Dwelling frame

Members queried some aspects of the Dwelling Frame used by StatsSA in household surveys.

In some survey exercises, StatsSA has assisted in providing addresses in communities, and this has been an important restorative process.

StatsSA explained the processes behind the referencing of residences, addresses and built structures. The first step is to obtain imagery of survey areas, either from satellite pictures or from the Department of Land Affairs. Built structures, including dwellings, are then identified within these particular areas. In areas where no other information is available, satellite imagery is used. Where information is held by other partners and stakeholders - such as the Post Office, which often assigns numbers to houses in rural areas – StatsSA also uses this information. StatsSA also attempts to work with municipalities, particularly in validating information obtained through imagery. Some municipalities have strong databases, particularly for service delivery, but there are often pockets of informal settlements that do not feature in these databases. In these cases, StatsSA works through databases and points out gaps in information, working in partnership with municipalities to ensure that databases are as complete as possible.

In some areas, information held by municipalities is very poor or outdated, and this is reflected in an assessment conducted by StatsSA and the Department of Provincial and Local Government (DPLG) of Geographic Information Systems (GIS) capacity. StatsSA is looking to partner with local government in order to produce coverage for the whole country in terms of dwelling structures, but often information and infrastructure in municipalities is poor, and generally capacity to manage information exists only in better-resourced areas where more people pay rates.

In areas where no information exists beyond satellite imagery, StatsSA goes into the field and attempts to identify and better understand information gleaned from the photo or satellite image. In the past, StatsSA has outsourced this fieldwork to the private sector, although information comes back to StatsSA for quality assurance and vetting before any payments are made. StatsSA is also moving towards building capacity through an internal fieldwork team that would be able to conduct information capturing and verification on dwelling units, but this will take time due to recruitment and training processes. Some small teams are already in place, but these will need to be upscaled dramatically in order to prepare for the Census in 2011.

1. Building public trust in StatSA

The Statistician-General discussed the need to change the public face of StatsSA, and to build higher levels of confidence in the institution. This process is being progressively achieved, and has been supported through closer links with the South African Statistics Council.

Amongst other interventions, StatsSA has operated a programme called Census in Schools, and will repeat this process. StatsSA indicated that statistics are increasingly being used within the country, and encourages debate and engagement with the numbers produced.

1. Recommendations

18.1 The Committee recommends that StatsSA provide more detail in future on the reasons for underspending when they occur. 18.2 The Committee recommends that StatsSA take a more innovative and active approach to recruit the staff it needs in order to address the challenges of human resource constraints, which in some cases appear to have hampered its ability to attain its objectives. 18.3 The Committee recommends that StatsSA make more of an effort to employ disabled people in functions across the organisation in compliance with the Employment Equity Act.

1. Report the Portfolio Committee on Finance on the Annual Report 2006/2007 of the National Treasury, dated 9 November 2007

2. Introduction The Portfolio Committee on Finance met on 10 October 2007 to consider the Annual Report 2006/2007 of the National Treasury.

The Annual Report was presented by the Director-General of the National Treasury. After the presentation discussions followed which are recorded below by National Treasury Programme and topic of discussion.

Recommendations are based on the engagement of the Committee with the National Treasury is provided in the final section.

Programme 1: Administration

Staff numbers

Regarding staff numbers the Committee referred to Table 3.1 (page 200) of the Annual Report, which correlated with other tables providing staff numbers, but not with Table 6.1, which provided equity information. Dates of the staff number tables were also not the same. The Committee requested that this be clarified.

National Treasury indicated that the distinction that was made in these tables was between positions that existed within and without the establishment. Certain specialised activities required specialists who one might use on particular projects but who could not be absorbed into a particular full-time position. So instead of using consultants such staff were employed ‘out of establishment,’ using funds from vacant posts. Thus, in the tables referred to in the Annual Report, 710 staff were employed in the establishment and another 57 were employed out of establishment. Table 5.3, for example, dealt with promotion by salary band and thus by its very nature would not include the positions ‘outside of establishment’.

Employment Equity and Disability Statistics

Regarding the employment equity table provided in the Annual Report, the Committee indicated that no mention was made of National Treasury’s performance regarding disability: no target or measures of performance were provided, nor a breakdown by category. The Committee indicated that National Treasury had to do more in this regard.

National Treasury responded that it could not force somebody within its organisation to classify themselves as an employee with disability. National Treasury did have employees who would be regarded as having a particular physical disability but these people did not want to be classified as such: this impacted adversely on the numbers in the employment equity table. In applying for positions at National Treasury people were of course at liberty to disclose on their application whether they had a disability and where this was the case special consideration was given to the application. National Treasury’s experience however had been that people preferred not to disclose this, asserting that a physical disability did not impact on their ability to do their job and therefore why did they need to disclose it.

With regard to the targets set by the DPSA, National Treasury indicated that it continued to focus on the method by which it was recruiting. It was also going beyond just South Africa. There were many South African who found themselves abroad and National Treasury had joined forces with organisations working actively on this campaign, the so-called homecoming revolution. National Treasury had also launched a talent management program, which encompassed issues around performance, performance management, remuneration and reward. National Treasury was essentially setting its own development programs for staff and in this way creating its own supply to fill senior positions. In addition to performance management and creating own supply National Treasury also had two other programs, the internship program and the talent pool program. There were now about 60 people in the internship program. The talent pool program was also beginning to expand and in addition National Treasury was making bursaries available. The reality however was that the job market was tight for the kinds of skills sought by Treasury.

The Committee responded that it would still like to have the disaggregated disability figures and that there was no reason why National Treasury could not provide these as other departments did so. The Committee also indicated that the reasons provided for the low disability equity score did not appear adequate.

National Treasury responded by reiterating its previous remark that people who could be categorised as disabled within the National Treasury at times did not want to be categorised as such. National Treasury accepted that it had not met the target but emphasised that this was not for lack of trying. National Treasury could not insist on including people as disabled when compiling its equity statistics who refused to be categorised as such. Treasury further emphasised that in recruiting staff it made use of an agency that specialised in the placing of disabled people. All of its job advertisements also indicated that National Treasury buildings were disabled-friendly.

Secondment to the World Bank and IMF

Regarding the secondment of senior advisers to multilateral institutions, especially the World Bank and IMF, the Committee enquired after the policy-impact of such secondment on transformation of the global financial and development system.

National Treasury responded that part of the arrangement in question was that South Africa was entitled to place senior advisors in the World Bank and the IMF. The current approach was for a particular person not to be seconded for more than 5 years, and the norm was three to four years.

One of the main roles of these officials was to link National Treasury to discussions taking place on a weekly basis in the boards of these institutions. It was also a means for South Africa to engage with and influence the discourses around development and the flow of resources. Thus, for example, a key current issue was that some developing countries were stating that they weren’t meeting their Gleneagles commitments with regard to aid flows because developing countries lacked sufficient absorptive capacity. South Africa, however, was articulating the position that independent verifiable sources showed that a number of countries were good performers and could absorb significant additional resources.

Programme 2: Economic Planning and Budget Management

Underspending

The Committee referred to the fact that significant underspending had occurred in a number of programmes of the National Treasury. The Committee enquired whether there were any common reasons accounting for this. There was a shortage of information provided in the Annual Report on what the reasons for underspending were in particular instances, though it seldom appeared to be the result of any simple efficiency gains. The underspending did also raise concerns about the quality of the strategic planning of the National Treasury.

National Treasury indicated that details per program on their spending performance was on page 119 of the Annual Report which stated why a particular program had under-spent or had saved. Treasury highlighted that the biggest underspending or saving had occurred in programme 4, the financial systems programme, which was an environment that used to be dominated by consultants. Contract management of those consultants had tightened significantly over the past 3 years and savings had therefore been realised there.

A primary reason for underspending had been delays in the implementation of the integrated financial management system (IFMS). Most of the required tenders eventually only went out at the beginning of 2007 and the adjudication was now taking place. There was a delay in the finalisation of the user requirement statements, mainly on the HR module. National Treasury had to rely on the DPSA coordination with other government departments to ensure that everyone was on board.

Regarding broader trends underlying underspending, National Treasury noted that if one looked through the programs, with the exception of program 5, one would notice that the issue of vacancies had been a key driver of the underspending. One noticed that the programs that had the lowest spending also tended to have higher vacancy rates.

In the case of the IFMS, because of changes that were taking place and the roll out of a new system, it didn’t make sense to immediately fill all of the positions. Just as National Treasury preached to the other departments that if they could not spend their money it needed to be returned to the National Revenue Fund, so National Treasury had returned this money to the National Revenue Fund when it realised that there was a delay in the implementation of the project.

The Committee then noted that underspending in each programme had occurred and enquired whether the management of the planning process was adequate. The Committee raised concerns to what extent the underspending was a once-off occurrence or a trend across programmes which would have to be taken into account in future appropriations.

National Treasury agreed that the Committee was raising a point, which was of general application to all departments when it came to underspending, namely whether departments failed to plan, planned badly, or planned well but didn’t execute the plan.

National Treasury emphasised that it did its best to ensure that the measurable objectives it provided related to what it was expected to deliver. Across the board, there was however a struggle to quantify measurable objectives.

In National Treasury, on an annual basis, once the update of the strategic plan had been completed, the DG entered into a contract with each programme manager and checked on progress formally on a quarterly basis. This approach however did not necessarily capture the financial aspect.

National Treasury agreed that underspending should lead to reallocation, and that funds could even be removed from the vote if necessary. The vacancy rate was high and was a key driver of underspending. Although over the next 12 months existing positions could be filled, people were also leaving, so net change was likely to remain small.

Regarding programme 4’s R166.6 million underspending, delays in the implementation of the Integrated Financial Management System (IFMS) and in the rollout of training were to blame. Approximately 160 million was associated with delays in the IFMS. These delays would not however affect the attainment of the deadline for the project as a whole.

Regarding delays in training, in 2006/2007 responsibility for financial management training was shifted to SAMDI. Less courses were offered in 2006/2007 because a strategy had been developed in this period. This was now finalised and unspent funds from the period under review would still be used for this.

Other variances related to conditions for transfers under the DORA not being met. Transferring funds where conditions were not met would be tantamount to throwing money away. This also accounted for a great deal of underspending.

The Land Bank

Regarding the Land Bank and guarantees by government, the Committee asked National Treasury to comment on the fact that the initial agreement had been for the Land Bank to submit its turnaround strategy to both National Treasury and the Department of Agriculture by 15 November 2005. This was subsequently changed to 30 November 2007.

National Treasury firstly confirmed that the Land Bank was supposed to have provided government with a turnaround strategy by 15 November 2005. It was due to their failure to do so that National Treasury decided to extend the guarantee rather than to inject cash into the Land Bank.

Subsequently a couple of events had taken place, which had created an environment in which it was difficult to get the turnaround strategy ready. The Department of Agriculture wanted to have a clear understanding of what was happening at the Land Bank and had requested that the executive committee vacate the office to give them space to get a clear understanding of what was happening. Seven to eight weeks thereafter the executive committee was brought back in. Unfortunately, while they were still working on the turnaround strategy the CEO of the Land Bank resigned. Accordingly there was something of a vacuum and government was still waiting, and working very closely with the Land Bank to ensure that a turnaround strategy was completed. Currently the Land Bank was under the acting CEO who is also working on this strategy. Though the Land Bank was provided with a guarantee and an extended guarantee, the main condition for this was that they would still have to provide the turnaround strategy.

The Pebble Bed Modular Reactor (PBMR)

Regarding the Pebble Bed Modular Reactor (PBMR), the Committee enquired after the financial aspect of this project. When would the PBMR generate revenue? Current costs for salaries alone, in terms of the Adjustments Appropriation, were in the region of R 300 - 500 million per year.

National Treasury noted that it had not been directly involved in the review and feasibility work that was done for the PBMR project. In very broad terms the feasibility assessment indicated that the commercial viability of the PBMR was very long term and depended on the PBMR becoming a significant international supplier of new generation nuclear technology.

Partly because this was a project that depended on its becoming a significant supplier internationally, the intention had always been that the development of the project needed to involve an international business partner, or possibly several, and there had been a great deal of work on exploring the possibility of a relationship with an investment partner in the project. The R 6 billion that had been set aside on the budget for the project was a South African Government contribution, but there was as yet no clarity on investment partners and therefore the overall eventual ownership structure of the company.

The project would not generate revenue for a long time. It was now going into a demonstration construction phase and so the full viability of the project was still to some extent under review. The project was still in a research and development stage regarding the full commercial viability of the initiative. The project, if all went according to plan, would begin to generate revenue in about four years.

Research on Capital Spending Plans

The Committee referred to a reference in the Annual Report to research conducted on capital spending plans in government and asked what the issues were that arose from this report.

National Treasury responded that this was an initiative that had been underway for 2 to 3 years which had seen the development of a capital projects register within the budget office. This was quite a detailed exercise in terms of which National Treasury staff had engaged not only with line departments that dealt with large capital projects but had also been engaging with SOE’s and was beginning to consolidate the major capital projects and present information on them at their different stages of development, from the planning stage to procurement to the actual development on the ground. The data that was gathered was obtained firstly from the reports that were available from the different entities themselves, but trips and on-site visits had also been conducted. The purpose of this project register was to feed into the capital budgets committee of the budget office so that when departments came to request funds for additional capital spending, National Treasury would be able to determine the performance of these departments and decide accordingly.

The Public Entities Governance Framework Review

The Committee enquired how far National Treasury was with the implementation of the 2004/2005 recommendations for the Public Entities Governance Framework Review and what its impact had been to date.

National Treasury indicated that the project had been completed and the review had now moved into an implementation phase which had several aspects to it. One was the collection of information and financial records of public entities which constituted an information base National Treasury was now able to draw on in extending the Estimates of National Expenditure documentation.

There were also some legislative and regulatory aspects and the public finance management amendment process was still outstanding business.

There had also already been amendments to the Public Service Act tabled by the Minister of Public Service Administration which followed from this review and there would possibly be further aspects to this.

Lastly, National Treasury pointed out that various departments, such as the Department of Transport, the Department of Housing and National Treasury itself, had over the course of the last two years strengthened their departmental oversight capacity over the entities that reported to them and this too had been to some extent triggered and informed by the review.

The Neighbourhood Partnership Development Grant

Regarding the Neighbourhood Partnership Development Grant (NPDG), the Committee noted that it was a bit confused as to where it belonged as in the ENE it was located under programme 6 but in the Annual Report it was reported on as part of programme 2.

National Treasury responded that the grant itself, as a flow of funds to municipalities, was included in programme 6 along with the other provincial and municipal transfers, but that the unit which ran the program was part of the budget office.

Official Development Assistance (ODA) and the budget

The Committee noted that in programme 2 one of the milestones for 2006/2007 was improved coordination of ODA programming with the budget processes. The Committee enquired whether progress was being made there as it wasn’t sure where in the Annual Report it was reported on.

National Treasury noted that this remained a challenging area. Although the ODA programme did not involve a large amount of money compared to the budget, it did involve a substantial number of country assistance programmes and a range of bureaucratic requirements. To align all of these with the budget was not easy and thus this was best regarded as ongoing work.

In a further question on official development assistance (ODA), the Committee enquired what percentage of donor funds were actually aligned with the budget and were addressing budget objectives, and whether there were any further plans to ensure that donor funds addressed South Africa’s priorities.

National Treasury noted that South Africa was in a privileged position in that the country was capable of funding its development from its own resources. In engaging with the multilateral institutions it was important to ensure that the integrity of domestic policy was protected. ODA therefore had to fit in with the framework of domestic policies. South Africa had not been willing to receive aid with ‘strings attached’, where such aid was not aligned with the domestic development agenda.

Home Affairs

The Committee noted that National Treasury had been involved in the re- engineering of home affairs and enquired the lessons learned and what was the state of financial management in home affairs.

National Treasury responded that in general, support to departments related firstly to supporting them in preparing their reports to the oversight institutions. National Treasury provided training in this regard, which was valuable as long as departments sent the right people to the training. But in some cases this did not occur.

Regarding Home Affairs and the lessons learned, National Treasury indicated the importance of leadership. If leadership did not focus on issues of administration, then problems were likely to occur. And this indeed was the case with Home Affairs. Policies needed to be implemented and administrated well and this was not the case for Home Affairs.

The basic things needed to be done and done well in the case of Home Affairs. National Treasury worked with the turnaround team appointed by the Minster in this regard. It was however still too early to assess the impact of these actions.

Correctional Services

Regarding correctional services, the Annual Report indicated that National Treasury gave guidance to Correctional Services in the case of an efficient way forward for 5 new correctional facilities. The Committee enquired whether Correctional Services valued this assistance and whether they cooperated and whether there had been an improvement in the management of correctional services. National Treasury noted that Correctional services had also had some financial management problems, especially related to costs and contract management of the building programmes, resulting in delays in facilities getting built as well as delays from facilities being built to their being operational.

National Treasury had played a role in ensuring that new facilities needed to be planned properly, not just the construction costs but also the subsequent operating costs. This had been a process of tough engagement but National Treasury believed correctional services had found it useful.

Programme 3: Asset and Liability Management

Turnover in the Domestic Bond Market

The Committee enquired after the reasons for the turnover in the domestic bond market in the period under review.

National Treasury confirmed that liquidity had improved from 8, 1 to 11, 4 trillion, a 40.7% increase, during the period under review. Although this issue had not been dealt with in detail in the Annual Report, it was covered in the Budget Review. International investors had shown an increased appetite for domestic bonds. Their participation increased from 16.5% in 2005 to 20% in 2006, when they purchased R 34.1 billion bonds in the domestic market.

This trend was due to the upgrades that the country continued to receive in investment ratings, and which was beginning to attract investors who would not otherwise have been attracted to South Africa. Globally there had also been an increase in demand for emerging markets, though this declined subsequently due to increased volatility. But the probability of South African default had continuously decreased because of the increase in reserves and adherence to strong macroeconomic fundamentals. Thus there had been a consolidation on the South African market and the liquidity that was experienced by other emerging markets had not been a significant factor in South Africa.

Management of guarantees

Regarding the management of guarantees, the Committee referred to the R 1.3 billion guarantee issued to South African Airways (SAA) at the end of March and the fact that this guarantee had conditions attached to it. The Committee enquired what mechanisms had been put in place to ensure that SAA did adhere to these conditions. The Committee referred also in this regard to comments by SAA in the media that it required recapitalisation to the value of R 4 billion.

National Treasury confirmed that on the 31st March 2007 SAA had requested a capital injection from government but it was understood then that they were working on their strategy. Government decided that, instead of an injection of capital, SAA would be provided with capital to meet their current obligations and to satisfy solvency issues. This was expected to continue until the 30th September 2008. In the meantime there had been some discussion between the DPE, SAA and National Treasury in trying to come to an agreement with regards to the strategy.

The Committee followed up by pointing out that one of the conditions that was set for SAA was that SAA would not compete as a global airline but would function as an African airline with global reach. The latter implied that international routes would be limited to key cities on each continent. The Committee enquired whether National Treasury was satisfied that SAA was meeting this condition.

National Treasury noted that SAA had previously announced new inter continental routes but that they hadn’t taken on those routes. They had also withdrawn from certain routes. So in these respects they were meeting the conditions. National Treasury emphasised that what was transpiring with SAA was not something which would be happening again and again.

Hedging by State-Owned Enterprises

On the general issue of state owned enterprises, the Committee enquired whether any state owned enterprise had hedged any of their borrowings and what risks existed for government as a result of current guarantees.

National Treasury indicated that it used to regard its liabilities as the area where the risks lay, but that risk now resided in its assets, and specifically in the exposure on the SOE’s. National Treasury had conducted various stress tests to determine the probability of guarantees being called and there was indeed some cause for concern.

Regarding hedging activities, National Treasury noted that a treasury review had ascertained whether SOE hedge positions had in fact exposed government beyond a basic hedge position which sought to cover interest rate and currency risk. National Treasury could confirm that there was no SOE which had taken a hedge position beyond its core business mandate and the requirements thereof. The SOE’s were also clear now on the position of National Treasury in this regard. Mzansi Accounts and Retail Bonds

The Committee requested National Treasury to comment on the Mzansi accounts and retail bounds and on the extent to which the public was participating in these two initiatives.

Regarding retail bonds, National Treasury responded that, in gross terms, since the retail bonds were introduced 2 ½ years back it had been able to raise an amount of about R3 billion. About 1.5 billion had been redeemed since, that has been given back to the investors, since the bond maturity had been two years. But the majority of investors that had invested in retail bonds (about 65%) preferred not to earn interest on a monthly basis or twice a year but instead re-invested. For National Treasury this was a very positive trend as it indicated the willingness of investors to invest further rather than enjoy the immediate benefits of investment returns.

Treasury would also be introducing inflation-linked retail bonds and had signed a deal with a major retail company to sell the bond through them as well as through the post office and the office of the National Treasury.

Although the retail bond share (R 3 billion) of the total debt of R 550 billion was small, the retail bond had actually had a great impact. Institutions and organisations were for example issuing instruments that were structured around the retail bonds. Most importantly of all, the new instruments encouraged and would continue to encourage more South Africans to save.

Regarding the Mzansi accounts, National Treasury noted that according to the Financial Sector Council report for 2006 that was released recently, about 4.2 million Mzansi accounts had been opened by people leaving in the Living Standard Measure 1-5 of the adult population. This number included the accounts provided by the Post Bank. If one took away the Post Bank accounts the number was 2.8 million. Treasury noted that at the same time last year the total number of accounts supplied by all the commercial banks including post banks was 3 million, so there been increase from 2005 to 2006 of about 1.2 million.

The Mandate of the Development Finance Institutions

On the Development Finance Institutions (DFI’s) the Committee referred to a review of these institutions and enquired whether there was any closure on the nature of their mandate. The issue was especially pertinent given the role these institutions needed to play in the development of especially the underserviced and unbanked areas.

Treasury responded that it was happy to indicate that the first phase of the DFI review had been completed and a broad picture now existed of the current challenges facing the DFI’s in South Africa. They seemed to face almost the same challenges. However, such questions were part of the second phase where National Treasury would try to establish the nature of the South African DFI system, before it came up with a formal DFI policy.

Programme 6: Provincial and Local Government Transfers

Support to Municipalities

Regarding municipalities, the Committee referred to information provided in the Annual Report on the financial management conditional grant. The Committee noted that at the end of the national fiscal year an average 38% of disbursed amounts had been spent. Given that this was three quarters into the municipal financial year, the Committee enquired what Treasury was doing to improve spending performance by the municipalities, since this kind of challenge was at the heart of service delivery problems. A further, related question posed by the Committee concerned the direct support provided by National Treasury to municipalities. The Strategic Plan had indicated that 157 municipalities were to be supported in the medium term, with an intermediate target of 50 for 2006/2007. It was however reported in the Annual Report that hands-on support had only been provided to 25 municipalities in 2006/2007. This issue required comment because again matters of capacity appeared to be at the heart of current service delivery problems.

National Treasury responded that it currently engaged in a package of initiatives to assist municipalities to effectively spend the conditional grants they received. Siyenza Manje was one such initiative that provided direct hands -on support; the financial management technical advisers were there to provide secondary support as well. There were also DPLG programmes that supported municipalities. A further big initiative around technical capacity support was the 469 graduate interns that were serving in municipalities already for a 2 year period. So there was a critical mass of capacity support being provided to municipalities.

A further means of support was the direct meetings and visits to municipalities to get them to deliver appropriate plans to ensure that they did provide reports to the councillors themselves firstly, and to move accountability towards the municipal managers. National Treasury believed these initiatives were beginning to bear fruit.

However, it had to be acknowledged that in some of the municipalities there was a high turnover of staff. Because of high turnover of actual senior management staff there was a dip in the use of conditional grants and renewed commitment then needed to be attained through council resolutions.

National Treasury indicated that the 469 graduates that were in position were in fact working in over 220 municipalities, so the target of 157 municipalities being supported was actually exceeded if one counted these graduate interns. One also needed to understand that there was definitely a scarcity of skills in the financial management area. And to get people to want to serve a year or two as advisors and technical experts in some of the municipalities was a challenge that needed to be recognised. The other measure that had proved useful had actually been to call the municipal managers in to account to committees of parliament and this had apparently really changed the mindsets of managers who were now eagerly providing reports and the support needed to track progress with reforms.

Recommendations

 1. The Committee recommends that National Treasury provides more
    disaggregated figures in reporting on its attainment or non-
    attainment of disability targets.


 2. The Committee recommends that National Treasury, in future, provides
    more specific as well as detailed reasons for underspending of
    particular programmes. The Committee felt that in some respects the
    shortage of information made the annual report inadequate as an
    oversight document.


 3. The Committee recommends that National Treasury provide a report on
    Official Development Assistance (ODA) indicating both current
    amounts of ODA inflows and the policy framework utilised by National
    Treasury in determining whether potential ODA funding was in line
    with the objectives of Government.

                       MONDAY, 4 FEBRUARY 2008

ANNOUNCEMENTS

National Assembly

1. Membership of Committees

   1) The following changes have been made to the membership of Portfolio Committees:

   Education
   Appointed:          Van der Walt, Ms D
   Discharged:    Coetzee, Mr R
   

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

(a)     Report of the Auditor-General on a performance audit of
    official housing at the South African Police Service – November
    2007 [RP 252-2007].

1. The Minister of Finance

(a)     Report and Financial Statements of the Financial Services Board
    on the Registrar of Collective Investment Schemes for the year
    ended 31 December 2006 [RP 250-2007].




(b)     Report of the South African Statistics Council for 2006-2007
    [RP 238-2007].




(c)     Government Notice No R.1228 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 1 (No
    1/1/1350) in terms of Customs and Excise Act, 1964 (Act No 91 of
    1964).




(d)     Government Notice No R.1229 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 1 (No
    1/1/1351) in terms of Customs and Excise Act, 1964 (Act No 91 of
    1964).




(e)     Government Notice No R.1230 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 1 (No
    1/1/1352) in terms of the Customs and Excise Act, 1664 (Act No 91
    of 1964).




(f)     Government Notice No R.1231 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 10 (No
    10/11) in terms of Customs and Excise Act, 1964 (Act No 91 of
    1964).

(g)     Government Notice No R.1232 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 3 (No 3/628)
    in terms of Customs and Excise Act, 1964 (Act No 91 of 1964).




(h)     Government Notice No R.1253 published in Government Gazette No
    30601 dated 21 December 2007: Amendment of Schedule No 1 (No
    1/1/1354) in terms of Customs and Excise Act, 1964 (Act No 91 of
    1964).




(i)     Government Notice No R.1 published in Government Gazette No
    30627 dated 1 January 2008: Amendment of regulations, in terms of
    the Banks Act, 1994 (Act No 94 of 1990).




(j)     Government Notice No R.3 published in Government Gazette No
    30629 dated 1 January 2008: Regulations relating to banks, in terms
    of the Banks Act, 1994 (Act No 94 of 1990).




(k)     Government Notice No R.4 published in Government Gazette No
    30631 dated 1 January 2008: Amendment of Schedule No 1 (No
    1/1/1353) in terms of Customs and Excise Act, 1964 (Act No 91 of
    1964).




(l)     Government Notice No R.5 published in Government Gazette No
    30631 dated 1 January 2008: Amendment of Schedule No 3 (No 3/629)
    in terms of Customs and Excise Act, 1964 (Act No 91 of 1964).

(m)     Government Notice No R.6 published in Government Gazette No
    30631 dated 1 January 2008: Amendment of Schedule No 4 (No 4/311)
    in terms of Customs and Excise Act, 1964 (Act No 91 of 1964).




(n)     Government Notice No 7 published in Government Gazette No 30637
    dated 4 January 2008: Listing and delisting of public entities in
    terms of the Public Finance Management Act, 1999 (Act No 1 of
    1999).

1. The Minister of Science and Technology

(a)     Report and Financial Statements of the National Advisory
    Council on Innovation for 2006-2007.


                      TUESDAY, 6 FEBRUARY 2008

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

CREDA PLEASE INSERT - T080206 – Insert 1 PAGE 143

1. Draft Bills submitted in terms of Joint Rule 159 (1) Consumer Protection Bill, 2008, submitted by the Minister of Trade and Industry. Referred to the Portfolio Committee on Trade and Industry and the Select Committee on Economic and Foreign Affairs.

TABLINGS

National Assembly and National Council of Provinces

1. The Speaker and the Chairperson

(a)     General Report of the Auditor-General on the Audit Outcomes of
    National and Provincial Departments, Public Entities and
    Constitutional Institutions for 2006-2007 [RP 226-2007].

1. The Minister for Provincial and Local Government (a) Report and Financial Statements of the South African Local Government Association (SALGA) for 2006-2007, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2006-2007 [RP 9-2008].

2. The Minister of Water Affairs and Forestry

(a)     Report and Financial Statements of Ikangala Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.


(b)     Report and Financial Statements of Pelladrift Water Board for
    the year ended 30 June 2007, including the Report of the
    Independent Auditors on the Financial Statements for the year ended
    30 June 2007.


 c) Report and Financial Statements of Bloem Water for the year ended
    30 June 2007, including the Report of the Independent Auditors on
    the Financial Statements for the year ended 30 June 2007.


(d)     Report and Financial Statements of Amatola Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.


(e)     Report and Financial Statements of the Overberg Water for the
    year ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.


                       FRIDAY, 8 FEBRUARY 2008

ANNOUNCEMENTS

National Assembly and National Council of Provinces

The Speaker and the Chairperson

1. Assent by President in respect of Bills 1) Traditional Health Practioners Bill [B 20 – 2007] – Act No 22 of 2007 (assented to and signed by President on 7 January 2008).

(2)    Securities Transfer Tax Bill [B 44 – 2007] – Act No 25 of 2007
     (assented to and signed by President on 21 December 2007).


(3)    Securities Transfer Tax Administration Bill [B 45 – 2007] – Act
     No 26 of 2007 (assented to and signed by President on 21 December
     2007).


(4)    Health Professions Amendment Bill [B 10D – 2006] – Act No 29 of
     2007 (assented to and signed by President on 11 January 2008).


(5)    Public Service Amendment Bill [B 31B – 2006] – Act No 30 of 2007
     (assented to and signed by President on 11 January 2008).


(6)    Education Laws Amendment Bill [B 33D – 2007] – Act No 31 of 2007
     (assented to and signed by President on 21 December 2007).


(7)    Broadband Infraco Bill [B 26B – 2007] – Act No 33 of 2007
     (assented to and signed by President on 21 December 2007).


(8)    South African Express Bill [B 14D – 2007] – Act No 34 of 2007
     (assented to and signed by President on 21 December 2007).


(9)    Revenue Laws Amendment Bill [B 42 – 2007] – Act No 35 of 2007
     (assented to and signed by President on 21 December 2007).


(10)   Revenue Laws Second Amendment Bill [B 43 – 2007] – Act No 36 of
     2007 (assented to and signed by President on 21 December 2007).


(11)   Electronic Communications Amendment Bill [B 38B – 2007] – Act No
     37 of 2007 (assented to and signed by President on 21 December
     2007).


(12)   Criminal Law (Sentencing) Amendment Bill [15B – 2007] – Act No
     38 of 2007 (assented to and signed by President on 21 December
     2007).

1. Introduction of Bills

 (1)    The Minister of Housing


      a) Housing Development Agency  Bill [B 1 – 2008] (National
         Assembly – proposed sec 76) [Explanatory summary of Bill and
         prior notice of its introduction published in Government
         Gazette No 30346 of 26 October 2007.]


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


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


 (2)    The Minister of Safety and Security


      a) Second-Hand Goods  Bill [B 2 – 2008] (National Assembly –
         proposed sec 76) [Explanatory summary of Bill and prior notice
         of its introduction published in Government Gazette No 30559
         of 14 December 2007.]


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


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


3.      Bills passed by Houses – to be submitted to President for
    assent


    (1)      Bill passed by National Council of Provinces on 7 February
         2008.


           a) Choice on Termination of Pregnancy Amendment Bill [B 21B
              – 2007 (National Council of Provinces – sec 76).

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Defence

(a)     Report and Financial Statements of the Castle of Good Hope for
    2006-2007, including the Report of the Auditor-General on the
    Financial Statements for 2006-2007 [RP 130-2007].


(b)     Memorandum of Understanding between the Government of the
    Republic of South Africa and the Government of the Central African
    Republic concerning Defence Cooperation, tabled in terms of section
    231(3) of the Constitution, 1996.


(c)     Explanatory Memorandum to the Memorandum of Understanding
    between the Government of the Republic of South Africa and the
    Government of the Central African Republic concerning Defence
    Cooperation.


(d)     Memorandum of Understanding between the Government of the
    Republic of South Africa and the Government of the Republic of
    Gabon on Defence Cooperation, tabled in terms of section 231(3) of
    the Constitution, 1996.


(e)     Explanatory Memorandum to the Memorandum of Understanding
    between the Government of the Republic of South Africa and the
    Government of the Republic of Gabon on Defence Cooperation.


(f)     Agreement between the Government of the Republic of South
    Africa and the Government of the Republic of Guinea-Bissau on
    Defence Cooperation, tabled in terms of section 231(3) of the
    Constitution, 1996.


(g)     Explanatory Memorandum to the Agreement between the Government
    of the Republic of South Africa and the Government of the Republic
    of Guinea-Bissau on Defence Cooperation.


(h)     Agreement for the Establishment of a Joint Permanent Commission
    on Defence and Security between the Government of the Republic of
    South Africa and the Government of the Republic of Mozambique,
    tabled in terms of section 231(3) of the Constitution, 1996.


(i)     Explanatory Memorandum to the Agreement for the Establishment
    of a Joint Permanent Commission on Defence and Security between the
    Government of the Republic of South Africa and the Government of
    the Republic of Mozambique.

(j)     Exchange of Letters between the Government of the Republic of
    South Africa and the North Atlantic Treaty Organisation (NATO)
    regarding Naval Exercises in the Republic of South Africa from 28
    August to 10 September 2007, tabled in terms of section 231(3) of
    the Constitution, 1996.


(k)     Explanatory Memorandum to the Exchange of Letters between the
    Republic of South Africa and the North Atlantic Treaty Organisation
    (NATO) regarding the Modalities relating to the Status of members
    of Nato’s Naval Group 1 Participating in Exercise Amazolo.


(l)     Agreement between the Government of the Republic of South
    Africa and the Government of the Kingdom of the Netherlands
    concerning the Status of Military and Civilian Personnel of their
    Department/Ministry of Defence present in each other’s territory
    for activities related to Military Cooperation, tabled in terms of
    section 231(3) of the Constitution, 1996.


(m)     Explanatory Memorandum to the Agreement between the Government
    of the Republic of South Africa and the Government of the Kingdom
    of the Netherlands concerning the Status of Military and Civilian
    Personnel of their Department/Ministry of Defence present in each
    other’s territory for activities related to Military Cooperation.


(n)     Agreement between the Government of the Republic of South
    Africa and the Government of the Kingdom of Spain concerning
    Defence Cooperation, tabled in terms of section 231(3) of the
    Constitution, 1996.




(o)     Explanatory Memorandum to the Agreement between the Government
    of the Republic of South Africa and the Government of the Kingdom
    of Spain concerning Defence Cooperation.


(p)     Memorandum of Understanding between the Government of the
    Republic of South Africa and the Government of the Republic of
    Sudan on Defence Cooperation, tabled in terms of section 231(3) of
    the Constitution, 1996.


(q)     Explanatory Memorandum to the Memorandum of Understanding
    between the Government of the Republic of South Africa and the
    Government of the Republic of Sudan on Defence Cooperation.




(r)     Memorandum of Understanding between the Government of the
    Republic of South Africa and the Government of the Republic of
    Uganda regarding the Renovation of the O R Tambo School of
    Leadership, tabled in terms of section 231(3) of the Constitution,
    1996.


(s)     Explanatory Memorandum to the Memorandum of Understanding
    between the Government of the Republic of South Africa and the
    Government of the Republic of Uganda regarding the Renovation of
    the O R Tambo School of Leadership.


(t)     Memorandum of Understanding between the Government of the
    Republic of South Africa and the Government of the United Kingdom
    of Great Britain and Northern Ireland concerning Defence
    Cooperation, tabled in terms of section 231(3) of the Constitution,
    1996.


(u)     Explanatory Memorandum to the Memorandum of Understanding
    between the Government of the Republic of South Africa and the
    Government of the Republic of Uganda regarding the Renovation of
    the O R Tambo School of Leadership.

1. The Minister of Environmental Affairs and Tourism

(a)     Government Notice No R.69 published in Government Gazette No
    30703 dated 28 January 2008: Threatened or Protected Species:
    Amendment regulations, in terms of the National Environmental
    Management: Biodiversity Act, 2004 (Act No 10 of 2004).




(b)     Government Notice No R.70 published in Government Gazette No
    30703 dated 28 January 2008: Notice to repeal: Threatened or
    Protected Species: Amendment Regulations, in terms of the National
    Environmental Management: Biodiversity Act, 2004 (Act No 10 of
    2004).




(c)     General Notice No R.62 published in Government Gazette No 30716
    dated 1 February 2008: Regulation for the Protection of Wild
    Abalone (Haliotis), in terms of the Marine Living Resources Act,
    1998 (Act No 18 of 1998).

1. The Minister of Water Affairs and Forestry

(a)     Report and Financial Statements of Umgeni Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.

(b)     Report and Financial Statements of Bushbuckridge Water for the
    year ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.




(c)     Report and Financial Statements of Rand Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.


(d)     Report and Financial Statements of the Lepelle Northern Water
    for the year ended 30 June 2007, including the Report of the
    Independent Auditors on the Financial Statements for the year ended
    30 June 2007.

1. Minister of Finance

(a)     Convention on Temporary Admission (Istanbul Convention), tabled
    in terms of section 231(2) of the Constitution, 1996.



(b)     Explanatory Memorandum to the Temporary Admission (Istanbul
    Convention).


(c)     Response of the South African Revenue Services to the
    resolution of Parliament on the report of the Portfolio Committee
    on Finance on the  South African Revenue Services Strategic Plan
    for 2007/2008 – 2009/2010.

COMMITTEE REPORTS National Assembly

CREDA PLEASE INSERT REPORTS - Insert T080208-insert1 – PAGES 170-189

                      TUESDAY, 12 FEBRUARY 2008

TABLINGS

National Assembly and National Council of Provinces

1. The Minister of Transport

(a)     Report and Financial Statements of the South African Maritime
    Safety Authority (including the Maritime Fund) for 2006-2007,
    including the Report of the Auditor-General on the Financial
    Statements and Performance Information for 2006-2007 [RP 213-2007].




(b)     Report and Financial Statements of the Cross-Border Road
    Transport Agency (C-BRTA) for 2006-2007, including the Report of
    the Auditor-General on the Financial Statements and Performance
    Information for 2006-2007 [RP 151-2007].

1. The Minister of Water Affairs and Forestry

(a)     Report and Financial Statements of Magalies Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.


(b)     Report and Financial Statements of Sedibeng Water for the year
    ended 30 June 2007, including the Report of the Independent
    Auditors on the Financial Statements for the year ended 30 June
    2007.