National Council of Provinces - 21 October 2009
WEDNESDAY, 21 OCTOBER 2009 __
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
____
The Council met at 14:03.
The Deputy Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): May I take this opportunity to announce that the hon member Cwele lost his mother, and that the funeral will be on Saturday. May her soul and the souls of all the others who are no more rest in peace.
NOTICES OF MOTION
Mr D B FELDMAN: Deputy Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:
That the Council —
(1) notes with interest the endeavours of President Zuma and Deputy President Kgalema Motlanthe to meet with executive mayors and mayors from all of the country’s 283 municipalities to discuss the strengthening of the local government sphere;
(2) further notes government’s acknowledgement of the general lack of local government capacity in the third sphere of government and of the prevalence of corruption there, and of its desire to seek solutions to these challenges; and
(3) therefore calls on government for coherence, and to end its policy of cadre deployment and to put into posts and positions in government those who have the required qualification, expertise, capability and motivation to manage municipalities professionally.
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Hon Deputy Chair, that motion has not been put for us to either accept it or not accept it.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Okay, these are motions of … [Interjections.] We are not going to vote on these.
Mr A WATSON: Chair, it’s a notice of a motion, not a motion without notice, so there is no voting.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Mr Watson, I had not even pointed you out to talk.
Mr D V BLOEM: Deputy Chairperson, I hereby give notice that, on the next sitting day of the House, I shall move on behalf of Cope:
That the Council —
(1) notes with alarm that the situation in Snake Park in Maokeng, Kroonstad has degenerated to such a point, on account of lack of delivery, that the people there are planning to take the law into their own hands;
2) further notes that the breakdown in law and order has led to an
unacceptable increase in burglaries, housebreaking, rapes and murder;
and
3) therefore calls on government to urgently and decisively address the
concerns of the citizens of Snake Park by immediately establishing a
satellite police station in the area, deploying more police and
taking every other measure to retain the credibility of government.
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Chairperson, I hereby give notice that I shall move on the next sitting day of the House: That the Council —
(1) notes that President Jacob Zuma has appointed Adv Thulisile Madonsela as the country’s next Public Protector;
(2) further notes that Adv Madonsela, who replaces Adv Lawrence Mushwana and whose non-renewable seven-year term expires at the end of October, has extensive experience in constitutional, human rights and equality law and recently served as a full-time member of the South African Law Reform Commission; and
(3) takes this opportunity to congratulate Adv Madonsela on being appointed as the country’s first female Public Protector.
Mr S H PLAATJIE: Chairperson, hon members in the House, on behalf of Cope I give notice as follows:
That the Council —
1) notes with disgust and disquiet the intemperate outburst of the
Deputy Minister of Police, hon Fikile Mbalula, in responding to
legitimate and reasoned criticisms raised by a former ANC NEC member
and recently retired Minister of Education, Kader Asmal;
2) further notes that the level of political discourse in our
country has degenerated to such a considerable extent, thanks to
the ANC, that it has become a blight on our politics; and
3) therefore calls on government to immediately restrain its senior
members from being mere brawlers lacking in substance,
refinement and political tolerance.
Mnr M J R DE VILLIERS: Voorsitter, ek stel die volgende met kennisgewing voor:
Dat die Huis —
1) kennis neem dat Emeritus-aartsbiskop Desmond Tutu ’n toekenning van
die Europese Parlementariërs vir Suid-Afrika ontvang het vir sy
bydrae tot die stryd teen apartheid;
2) verder kennis neem dat hierdie liggaam nou saamwerk met parlemente
in Afrika om demokrasie op die kontinent te bevorder en te sorg dat
Afrika-sake hoog op die politieke agenda in Europa bly; en
(3) Emeritus-aartsbiskop Desmond Tutu geluk wens en hom ook voorspoed toewens met sy gewaardeerde en volgehoue werk om demokrasie te bevorder. (Translation of Afrikaans draft resolution follows.)
[Mr M J R DE VILLIERS: Chairperson, I hereby give notice as follows:
That the Council —
(1) notes that Archbishop Emeritus Desmond Tutu has received an award from the European Parliamentarians for South Africa for his contribution to the struggle against apartheid;
(2) notes further that this body operates closely with parliaments in Africa so as to promote democracy on the continent, and to ensure that African issues remain high on the political agenda in Europe; and
(3) congratulates Archbishop Emeritus Desmond Tutu and wishes him well with his much-appreciated and sustained efforts in promoting democracy.]
Mr K A SINCLAIR: Hon Chairperson, I hereby give notice that on the next sitting day of the House, I shall move on behalf of Cope:
That the Council notes that —
1) Cope won Ward 4 in a municipal by-election held at the Renosterberg
Municipality on 14 October 2009 in which four parties, including
the ANC and the DA, were contestants;
2) Councillor John Havenga is the fourth elected Cope local government
representative to be elected since the establishment of Cope in
South Africa;
3) this is no mean achievement considering the fact that, last year
this time, Cope had not been formed; and
4) due regard be given by the ANC government to the serious
disgruntlement regarding failed service delivery, inefficient local
government, wide-scale ineptitude and indifference by the citizens
and taxpayers of South Africa.
Mr O DE BEER: Hon members, Cope wants it to be noted that the summit on the performance of local government held in Khayelitsha yesterday will yield results. [Interjections.]
The HOUSE CHAIRPERSON (Mr R J Tau): Chair, I rise on a point of order: Is it procedurally correct for a member to address us when speaking, when you have given the member the opportunity to address you? I think the member must learn that he is addressing you, and not us. Thank you.
Mr O DE BEER: I thought I was addressing the House.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon members, could we please try to behave ourselves and give each and every member a chance to express themselves. Please continue.
Mr O DE BEER: I hereby give notice that I shall move:
That the Council —
(1) notes that —
(a) We have been told that most municipalities in the country
are in a shambles and can’t deliver basic services to our
people;
(b) about 56 local municipalities — 11 of them in the Eastern
Cape — are on the National Treasury’s financial distress
list, and the majority of these municipalities are led by the
ruling party, the ANC;
(c) in the Western Cape the ANC-controlled municipalities are
a disgrace, because their mayors and their municipal managers
focus their energies on fighting over positions instead of
rendering services to our people on the ground;
(d) it was further reported that almost half of those
municipalities were found guilty by the Auditor-General of
unauthorised and wasteful expenditure;
(e) based on the wasteful expenditure I have just mentioned,
again the government is wasting taxpayers’ money by hosting
hundreds of delegates from all over the country.
[Interjections.] [Time expired.]
Mnr J M G BEKKER: Voorsitter, ek stel die volgende met kennisgewing voor:
Dat die Raad —
1) kennis neem dat die hulplyn van die President, mnr Jacob Zuma,
geensins aan die verwagtinge wat die President by die kiesers
geskep het, voldoen nie;
2) verder kennis neem dat die Premier van die Wes-Kaap, mev Helen
Zille, in die provinsiale Parlement gesê het dat sekere navrae
vanaf die presidensiële 17737-hulplyn na die bestaande provinsiale
hulplyn by 0860 142 142 verwys word;
3) verder kennis neem dat die party binne ’n tydperk van 13 dae die
presidensiële hulplyn altesaam 42 keer gebel het sonder enige
sukses; en
4) die presidensiële hulplyn versoek om sy organisasie en
administrasie in orde kry sodat dit nie net nog ’n produk is om
voor te gee dat die ANC-regering omgee vir die kiesers nie. (Translation of Afrikaans draft resolution follows.)
[Mr J M G BEKKER: Chairperson, I hereby give notice as follows:
That the Council —
(1) notes that the helpline of the President, Mr Jacob Zuma, is in
no way fulfilling the expectations that the President has created
among the voters;
(2) further notes that the Premier of the Western Cape, Mrs Helen
Zille, has said in the provincial legislature that certain queries
are being transferred from the 17737 presidential helpline to the
existing provincial helpline 0860 142 142;
(3) further notes that within a period of 13 days the party has
called the presidential helpline 42 times in total, without any
success; and
(4) request that the presidential helpline should get their
organisation and administration in order, so that this does not
become merely another product to pretend that the ANC Government
cares about the voters.]
Mr D A WORTH: Chairperson, I hereby give notice that, on the next sitting of the House, I shall move:
That the Council —
1) congratulates the Free State Cheetahs rugby team on their
wonderful, beautiful and stunning win last Saturday;
2) acknowledges that, after a poor start in the competition, the
Cheetahs have won six matches in a row; and
3) further congratulates the Cheetahs on reaching the finals to be
played on 31 October 2009. May the best team win!
Ms E C VAN LINGEN: Hon Chairperson, I hereby give notice that I shall move on the next sitting day of the House:
That the Council —
1) congratulates Nelson Mandela Metro University scientist Prof
Richard Cowling on being awarded one of the most prestigious
medals for scientific merit in Southern Africa, the Southern
Africa Association for the Advancement of Science (S2A3) South
Africa Gold Medal for 2009;
2) notes that Prof Cowling, as a botanist and a world leader on
threatened ecosystems, has in his research on ecological and
evolutionary patterns provided insight into the diversity of these
systems;
3) recognises his work on the development of conservation plans with
explicit targets and his widely acclaimed research for achieving
the goal of biodiversity persistence in the face of human-induced
change;
4) also congratulates him on his foresight in involving other role-
players to target features that deliver ecosystem services and in
addition secure several hundred thousand hectares of otherwise
threatened ecosystems for conservation management; and
(5) acknowledges that the award ceremony will take place at the Sci-
Enza building at the Discovery Centre, University of Pretoria, on 4
November 2009 where Prof Cowling will give a memorial lecture.
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Chairperson, I hereby give notice that I shall move on the next sitting day of the House:
That the Council –
(1) notes that yesterday, 21 October 2009, the President of the
Republic of South Africa, Jacob Zuma, accompanied by Deputy
President Kgalema Motlanthe, met with executive mayors and
municipal managers from all 283 municipalities in South Africa, as
well as Ministers, MECs, directors-general and leaders of the SA
Local Government Association, to discuss the strengthening of the
local government sphere, at the Oliver Tambo Hall in Khayelitsha,
Cape Town;
(2) further notes that the meeting was a sequel to previous service
delivery improvement sessions that the President has had with
various stakeholders, to improve dialogue and to find solutions to
achieve the goal of a better life for all;
(3) acknowledges that this meeting highlighted the ANC government’s
determination and commitment to improving local government and the
delivery of quality services to all our people, as well as finding
decisive measures to tackle poor performance and corruption at
local government level; and
(4) takes this opportunity to congratulate the President on this
important initiative, as a crucial and further step in the process
of improving the functioning and co-ordination of the various
spheres of government, to deliver quality services to our people.
Mr H B GROENEWALD: Hon Chairperson, I hereby give notice that on the next sitting day of the House, I shall move on behalf of the DA:
That the Council —
(1) notes the situation regarding fraud in the Department of
Education in the North West province;
(2) requests a very serious investigation into the alleged fraud by
the Head of the Department of Education and some of his officials,
as well as the possible involvement of the MEC, Mr Tselapedi.
Mr M C MAINE: Chairperson, I stand to propose that we spend no more time on the motions and that we continue with the agenda of the day. We can’t spend the whole day on motions.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Honestly. Hon member, I am addressing you, sir. We have 20 minutes allocated to this, and we still have time. If we run out of time, I will gladly notify the House to that effect. Thank you. [Applause.]
Mr A WATSON: I want to raise a point of order. I am not addressing you. Madam … Yes, Madam.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Mr Watson, could you take your seat?
Mr A WATSON: I am requesting …
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Could you take your seat?
Mr A WATSON: It is not against you, Madam.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Mr Watson, could you take your seat? Thank you.
The ACTING CHIEF WHIP OF THE NCOP (Mr S S Mazosiwe): Hon Chairperson, I hereby give notice that I shall move on the next sitting day of the House:
That the Council —
1) notes the resignation of Bafana Bafana coach Joel Santana on
Monday, 19 October 2009;
2) further notes that Santana’s troubled 17-month spell saw Bafana
Bafana fall from 68th to 85th position on Fifa’s world rankings,
with only a few months to the hosting of the 2010 Soccer World Cup
when the global spotlight will be on our nation regarding the
performance of Bafana Bafana in the tournament, as well as our
nation’s hosting capabilities, as the first African country to ever
host a Fifa World Cup; and
3) urges the SA Football Association to implement a comprehensive team
development strategy that will not only focus on filling the vacant
coach position but also on the development, recruitment and
scouting of quality players, as well as the commitment of players
to carry our national flag and represent our continent in 2010.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Hon member, with all due respect, we have now really run out of time. Thank you. Can we proceed?
Mr A WATSON: Madam Chair, I rose a couple of minutes ago on a point of order, to which I am entitled, in terms of Rule 53. May I now address you on that point of order, please?
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Continue, Mr Watson.
Mr A WATSON: The point of order that I wanted to raise, Chair, is that you should rule whether it’s in order for a member, sitting over there, when addressed by the Chair, to remain seated and not to stand, as determined by the Rules. The Rules very clearly state that if a delegate in this House is able to do so, that delegate must stand when addressed by the Chair. The delegate sat while you addressed him, and that is the point of order, Madam.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Thank you, Mr Watson, for teaching some of us some manners. It is accepted. Thank you. [Applause.]
Congratulations to South African Transplant team
(Draft Resolution)
Ms E C VAN LINGEN: Deputy Chairperson, I move without notice:
That the Council —
1) congratulates our South African organ transplant team on their 7th
position out of 49 different countries at the World Transplant
Games, WTG, in Australia from 22 to 30 August 2009;
2) also congratulates the South African transplant team of 40 members
on their personal achievements and on returning with 37 medals – in
the senior section: 15 gold medals, 12 silver and 10 bronze, and in
the junior section: one gold and two bronze medals;
3) notes that this team is serious about being good ambassadors for SA
as the South African Transplant Sports Association has put in a bid
to host the World Transplant Games, WTG, in 2013 in Durban;
4) Wishes the SA Transplant Sports Association every success in their
bid, winning the final bid contest against Tokyo, Japan; and
5) requests the Minister of Sport and Recreation to favourably
consider and to timeously commit to supporting the SA Transplant
Sports Association’s application for funding to host yet another
prestigious and memorable world event in South Africa.
Motion agreed to in accordance with section 65 of the Constitution.
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Madam Deputy Chairperson, I just want to appeal to you to accept the two motions I have just read as notices of motion: The motion on the Bafana Bafana issue and the motion on the President’s visit to Khayelitsha, unless you would like me to read them again. As I do not want to waste time for the House, I want us to accept them as having been read. If you don’t agree, Chair, I will have to read them again.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Is there any objection?
HON MEMBERS: No!
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): May I then ask the hon Mazosiwe to read those motions again.
President Jacob Zuma’s meeting with executive mayors, municipal managers, ministers and mecs
(Draft Resolution)
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Deputy Chairperson, I move without notice:
That the Council —
1) notes that on 21 October 2009, the President of the Republic of
South Africa, President Jacob Zuma, accompanied by Deputy President
Kgalema Motlanthe met with executive mayors, mayors, and municipal
managers from all 283 municipalities in South Africa, as well as
with Ministers, MECs, directors-general and leaders of the SA Local
Government Association, Salga, to discuss the strengthening of the
local government sphere at the Oliver Tambo Hall in Khayelitsha,
Cape Town;
2) further notes that the meeting was a sequel to previous service
delivery improvement sessions that the President has had with
various stakeholders to improve dialogue and finding solutions to
achieving the goal of a better life for all our people;
3) acknowledges that this meeting highlighted the ANC government’s
determination and commitment to improve local government and the
delivery of quality services to our people, as well as finding
decisive measures to tackle poor performance and corruption at
local government level; and
4) takes this opportunity to congratulate the President on this
important initiative as a crucial and further step in the process
of improving the functioning and co-ordination of the various
spheres of government to deliver quality services to our people. [Interjections]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): In light of the objection, the motion may not be proceeded with, and will remain a notice of motion.
Resignation of Bafana bafana coach joel santana
(Draft Resolution)
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Deputy Chairperson, I move without notice:
That the Council —
1) notes the resignation of Bafana Bafana coach Joel Santana on
Monday, 19 October 2009;
2) further notes that Santana’s troubled 17-month spell saw Bafana
Bafana fall from 68th to 85th position on Fifa’s world rankings
with only a few months to go until the hosting of the 2010 Soccer
World Cup when the global spotlight will be on our nation regarding
the performance of Bafana Bafana in the tournament, as well as our
nation’s hosting capabilities, as the first African country to ever
host a Fifa Soccer World Cup; and
3) urges the SA Football Association, Safa, to implement a
comprehensive team development strategy that will not only focus on
filling the vacant coach position but also on the development,
recruitment and scouting of quality players, as well as the
commitment of players to carry our national flag and represent our
continent in 2010.
Mr D V BLOEM: Deputy Chairperson, I don’t have any problem with that motion, because the breaking news is that Julius Malema has been appointed as the new coach. So, that is fine. [Laughter.]
Motion agreed to in accordance with section 65 of the Constitution.
Greater Ba-Phalaborwa Municipality STOPS WATER SUPPLY TO 24 SCHOOLS
(Draft Resolution)
The ACTING CHIEF WHIP OF THE COUNCIL (Mr S S Mazosiwe): Deputy Chairperson, I move without notice:
That the Council —
1) notes with utmost concern the decision of the Greater Ba-Phalaborwa
municipality in the Limpopo province to stop the supply of water to
24 schools that have not paid their water bills for the past five
years;
2) further notes that the Greater Ba-Phalaborwa municipality indicates
that it is owed over R4,8 million by the 24 schools;
3) calls on the Minister of Basic Education, the Minister for Co-
operative Governance and Traditional Affairs and the relevant MECs
to intervene immediately to ensure that this issue is resolved and
that the learners are given access to water by tomorrow, 22 October
2009; and
4) further instructs the relevant committees of the Council to follow
up on this issue and, when necessary, call on those responsible to
account to Parliament about this irresponsible and intolerable
situation in the province.
Motion agreed to in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE AND APPROPRIATIONS — AGREEMENT BETWEEN THE REPUBLIC OF SOUTH AFRICA AND UNITED MEXICAN STATES FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE AND APPROPRIATIONS — AGREEMENT BETWEEN THE REPUBLIC OF SOUTH AFRICA AND THE FEDERAL REPUBLIC OF GERMANY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
Mr C J DE BEER: Hon Chairperson, hon members, trade agreements define rules for the conduct of trade policy. These rules must strike a balance between commitments and flexibility. While governments have many good reasons for signing trade agreements, it is crucial that effective agreements must strike an appropriate balance between flexibility and commitments.
With regard to the South African-Germany trade agreement, Germany is one of South Africa’s most important trading partners, with trade worth more than R42 billion in 2002. The country is South Africa’s most important supplier of imports such as capital goods and technology, and ranks second as a purchaser of South African exports after the United Kingdom.
It is a major direct investor in South Africa with an investment volume of around R18 billion, the main sectors being the automotive industry, the chemical industry, and the mechanical and electrical engineering industries. More than 450 German companies provide around 60 000 jobs in South Africa. We’ve just seen what they did with the BMW investment in this country.
The following taxes are especially affected regarding this international agreement between the Federal Republic of Germany and South Africa. On the side of Germany, it is income tax, corporation tax, capital tax and trade tax. With regard to South Africa, it is normal tax, secondary tax on companies, and withholding tax on royalties. In addition to the existing taxes, the agreement shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of this agreement.
The agreement also provides for profits and taxes in respect of shipping and air transport; associated enterprises; dividends; interest; income from employment; director fees; entertainers and sportspersons; pensions, annuities, etc; and the elimination of double taxation.
With regard to the South Africa-Mexico Trade Agreement, trade with Latin America is actually relatively small. Only 2% of South Africa’s total trade is with the Common Market of the South, Mercosur. Trade ties are expected to grow substantially in the future. Trade between South Africa and Mercosur grew significantly between 1994 and 2000 from R2,7 billion to R6 billion.
Mexico is South Africa’s third largest trading partner in Latin America and the Caribbean, after Brazil and Argentina, and South Africa is Mexico’s largest trading partner in Africa. Trade between the two countries has been growing at a steady pace. The main exports to Mexico are iron and steel products, machinery and equipment, metal ores, chemicals, cereals, and raw hides and skins. Imports from Mexico include wheeled tractors, machinery and equipment such as paper, paperboard and chemical products.
Another significant step in the relations was the signing of the Technical Co-operation Agreement in the field of social development in 2006.
Tourism between the two countries is also growing. Approximately 1 500 visa applications from Mexico and other Central American countries travelling to or through South Africa were processed during the period March to October 2008.
The agreement between the Republic of South Africa and the government of the United Mexican States seeks to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The establishment of a Joint Binational Commission would allow both countries the opportunity to review bilateral co-operation projects and to identify co-operation in new areas.
The agreement applies to the following taxes: In terms of Mexico, they are federal income tax and business flat-rate tax; and in terms of South Africa, they are normal tax, secondary tax on companies, withholding tax on royalties, and tax on foreign entertainers and sportspersons.
As with the agreement with Germany, the agreement in this case shall, in addition to the existing taxes, also apply to any identical or substantially similar taxes that are imposed after the date of the signature of this agreement.
In conclusion, the trade agreements seek to regulate taxation and remove fiscal obstacles between the two countries, as well as provide for fairness in the business practices in a foreign country through the provision of nondiscrimination. The exchange of information relating to the agreement is also important, as well as collaboration between the contracting states in the case of South Africa and Mexico in the collection of revenue claims.
Hon Chairperson, the select committee moves that this House supports these international agreements. I thank you. [Applause.]
Debate concluded.
Question put: That the Report on Agreement between Republic of South Africa and United Mexican States for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Agreement between Republic of South Africa and United Mexican States for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income accordingly adopted in accordance with section 65 of the Constitution.
Question put: That the Report on Agreement between the Republic of South Africa and the Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on Income and Capital be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Agreement between the Republic of South Africa and the Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on Income and Capital accordingly adopted in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS — OVERSIGHT VISIT TO ALFRED NZO DISTRICT MUNICIPALITY
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS — OVERSIGHT VISIT TO KOUKAMMA LOCAL MUNICIPALITY
Mr A G MATILA: Chairperson, the Select Committee on Co-operative Governance and Traditional Affairs undertook oversight visits to Koukamma Local Municipality and the Alfred Nzo District Municipality on 18 and 19 August 2009 respectively. These were based on the intervention notice invoked by the Eastern Cape MEC for local government and traditional affairs in terms of section 139(1)(b) of the Constitution in both municipalities.
In terms of section 139(1)(b), when a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene by taking any appropriate steps to ensure the fulfilment of the obligation, including assuming responsibility for the relevant obligations in that municipality.
The main objectives of the oversight visits were to determine whether procedural requirements had been met, verify whether the provincial executive had used its discretion appropriately before the committee could recommend approval or disapproval of the intervention, and determine how the provincial executive intended to restore the fulfilment of the relevant obligations and to ensure fulfilment in the long term, the aim being to ensure intergovernmental checks and balances aimed at guarding the integrity and efficiency of the intervention process.
The main issues raised in the Koukamma Local Municipality were regarding the challenges experienced by the municipality which related to critical vacant positions; service delivery challenges and huge infrastructural backlogs; lack of legislation compliance with regard to the Local Government: Municipal Finance Management Act, MFMA, and its supply-chain management regulation; critical challenges with regard to public participation in the affairs of the municipality; financial mismanagement and inadequate financial controls; and the need for technical and financial assistance from the provincial department of local government and traditional affairs and National Treasury.
With regard to the Alfred Nzo District Municipality, there were critical challenges in the areas of administrative, political and institutional instability, lack of accountability on the part of senior and middle managers, and political interference in the administration. There were challenges experienced by the municipality relating to critical vacant positions, service delivery-related problems, municipal financial viability and management, and a lack of legislative compliance with regard to the MFMA.
The committee, therefore, recommends that the NCOP approve the interventions in both municipalities in terms of section 139(1)(b) of the Constitution, and that the NCOP endorses the six-month period of intervention, as stipulated in the intervention notice tabled by the Eastern Cape MEC for local government and traditional affairs in both municipalities. It is also recommended that the Eastern Cape MEC for local government and traditional affairs table quarterly progress reports to the NCOP on the status of intervention in the municipalities, including challenges encountered during the intervention period.
Furthermore, the committee recommends that the approved reports by the NCOP be shared with all internal and external stakeholders of the Koukamma and Alfred Nzo municipalities whom the committee delegation interacted with during the oversight visit. Also, the Select Committee on Co-operative Governance and Traditional Affairs, in co-operation with the relevant committee in the Eastern Cape provincial legislature, should conduct follow- up visits to both municipalities after the intervention has ended.
With regard to the Koukamma Local Municipality, the MEC should consider reviewing the occupational designation of Mr Louis Scheepers to avoid confusion with his dual role as administrator and acting municipal manager, in order to allow the incumbent to focus on his role in restoring normality within the municipality.
The SA Local Government Association, in co-operation with the Local Government Sector Education and Training Authority, should facilitate training and capacity-building for municipal councillors to further deepen their understanding of the oversight role, legal framework and policies that govern the activities of the municipality.
It is also recommended that the Department of Co-operative Governance and Traditional Affairs fast-track the development of ward committee funding models in order to ensure that the necessary resources are provided to ward committees to perform their constitutional obligations of facilitating public participation, planning, and decision-making processes in the municipality.
I would also recommend that additional matters that I will not read be considered. Let me conclude by saying: Let us all work together in the spirit of co-operative governance and strengthen our support to provinces and municipalities so that they may be more accountable to our communities. I thank you. [Applause.]
Debate concluded.
Question put: That the Report on Oversight Visit to Alfred Nzo District Municipality be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Oversight Visit to Alfred Nzo District Municipality accordingly adopted in accordance with section 65 of the Constitution.
Question put: That the Report on Oversight Visit to Koukamma Local Municipality be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report on Oversight Visit to Koukamma Local Municipality accordingly adopted in accordance with section 65 of the Constitution.
CONSIDERATION OF SUPPLEMENTARY REPORT TO THE FIRST REPORT OF JOINT RULES COMMITTEE, 2009
Order disposed of without debate.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.
WORKSHOP ON IMPLEMENTATION OF MONEY BILLS AMENDMENT PROCEDURE AND RELATED MATTERS ACT
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Order! Before I adjourn the House I would like to make the following announcement. All chairpersons of select committees and all provincial Whips are reminded about the workshop on the implementation of the Money Bills Amendment Procedure and Related Matters Act, which will take place from 08:30 to 11:00 on Friday, 23 October 2009, in the Good Hope Chamber.
There is also a request that all chairpersons of committees attend to their unfinished business immediately after this sitting.
The Council adjourned at 15:01. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
MONDAY, 19 OCTOBER 2009 TABLINGS
National Assembly and National Council of Provinces
- The Minister of Communications
(a) Report and Financial Statements of the Independent
Communications Authority of South Africa for 2008-2009, including
the Report of the Auditor-General on the Financial Statements and
Performance Information for 2008-2009 [RP 219-2009].
- The Minister of Finance
(a) Report of the Registrar of Pension Funds for 2006-2007 [RP 244-
2007].
National Council of Provinces
- The Chairperson
(a) 2008 UNICEF South Africa Annual Report
Referred to the Select Committee on Women, Children and People with
Disabilities for consideration and report.
Referred to the Select Committee on Social Services for
consideration.
TUESDAY, 20 OCTOBER 2009
TABLINGS
National Assembly and National Council of Provinces
- The Minister of Science and Technology
(a) Report of the Research and Development Tax Incentive Programme
and Trends in Research and Development Expenditure in South Africa
for 2007-2008.
- The Speaker and the Chairperson
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