National Council of Provinces - 16 November 2010
TUESDAY, 16 NOVEMBER 2010
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PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
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The Council met at the Charles Mopeli Stadium in the Maluti-A-Phofung Local Municipality at 16:45.
The 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.
NOTICES OF MOTION
Mr T B BEYLEVELDT: Chairperson, I give notice that I shall move at the next sitting of the Council:
That the Council -
1) notes—
a) that during the opening speeches, frequent references were
made to the struggle and the Constitution;
b) that from what we heard during public hearings, requirements
and functions that are set out in the Constitution regarding
service delivery are not being met and that is a sign of a
failing state;
c) that we hear and read that mayors and councillors are not
interested in speaking or acting on behalf of communities;
d) that the time has come that Ministers take their
responsibilities seriously in terms of section 139 of the
Constitution to intervene and get rid of dysfunctional mayors
and councillors as well as numerous incompetent officials;
2) believes it is unacceptable that councils receive adverse or
disclaimer audit reports and still try to convince the electorate
that they act in the best interests of the people; and
3) recognises the fact that if they cannot manage their financial
responsibilities, they cannot expect government’s support for
better service delivery.
Mr A WATSON: Chairperson, I give notice that I shall move at the next sitting of the Council: That the Council notes that —
1) the success and wisdom of the agreement between the DA and the ID
has been proven beyond any doubt by the results of the by-election
in Botrivier on Wednesday last week;
2) this by-election in ward 7 of the Theewaterskloof Local
Municipality was brought about by the resignation of the sitting ID
councillor, James Pheiffer, in protest against the joining of his
former party with the DA;
3) the so-called protester, having being lured by the ANC to stand in
his own ward as an ANC candidate, failed miserably by attracting
only 677 votes against the 1 015 votes of the DA candidate, Pearl
Stanfliet; and
4) the victory does not only prove the growing force of the DA-ID
alliance, but highlights the ANC’s unfaltering obsession with race
through the importation of Minister Tina Joemat-Pettersson and the
Northern Cape Premier, Hazel Jenkins, to promote the ANC in the
community.
Mr K A SINCLAIR: Chairperson, I’m sorry that I am speaking with my back towards you. I give notice that I shall move at the next sitting of the Council:
That the Council –
1) debates the failure of government to address the housing needs of
over 2 million families as estimated by the department, more
particularly government’s unwillingness ...
[Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms T C Memela): Chairperson, on a point of order: The hon member cannot speak with his back towards you. Can he move to the back?
The CHAIRPERSON OF THE NCOP: Order! Let us not criticise the member. He did apologise to the Chair. But let us try to get another microphone. Mr Sinclair, is there any microphone that works closer to you there? Oh, there is a roving microphone. You can start from the beginning.
Mr K A SINCLAIR: Chairperson, I’m sorry that I am speaking with my back towards you. I give notice that I shall move at the next sitting of the Council:
That the Council -
1) debates the failure of government to address the housing needs of
over 2 million families as estimated by the department, more
particularly government’s unwillingness to cut loose tenderpreneurs
such as Wiseman Mpisane and Mike Mokoena;
2) further debates the shocking lack of transparency and accountability
in commissioning housing projects, with the result that the poor and
the marginalised people of our country are given shoddy structures
unfit for human habitation, which have to be taken down and rebuilt;
and
3) recognises the importance of government focusing on the real and
urgent needs of the people rather than the greed of its friends in
high places.
Mr G G MOKGORO: Chairperson, on a point of order: This is with regard to the new name we hear now today, that the motion is read on behalf of the “real” Cope. I would like to know, Chair, whether you are aware of such a party?
The CHAIRPERSON OF THE NCOP: Order! That is not a point of order.
Mr A J NYAMBI: Chairperson, I move without notice:
That the Council –
1) notes that Kaizer Chiefs, “abafana bokuthula noxolo” ...
[Interjections.] The CHIEF WHIP OF THE NCOP: Chair, on a point of order: We are still busy with notices of motion. Just hold on, hon Nyambi. The CHAIRPERSON OF THE NCOP: Order! Just listen very carefully. I said: Does any member wish to give notice of a motion? We are dealing with notices of motion and not motions without notice. Are we clear? Hon Windvoël?
Mr V V WINDVOËL (Mpumalanga): Chair, I will wait my turn for motions without notice. We were just misled by the other member who escaped the notice of the Chair and also moved a motion without notice. Thank you.
Mr M J R DE VILLIERS: Chairperson, I give notice that I shall move at the next sitting of the Council:
That the Council -
1) notes that the water treatment plant in Harrismith is already about
50 years old and there is the danger of not being adequate for the
supply of services to the community;
2) further notes that it is of huge concern that although an
environmental impact assessment, a feasibility study and a cost
analysis to upgrade the plant to by R80 million had been done, the
national Department of Water and Environmental Affairs did not
responded so far;
3) has believes that it is a shame and a disgrace in the eyes of the
community of this area and district to have such service delivery
from the Department of Water and Environmental Affairs; and
4) calls on the Minister of Water and Environmental Affairs to respond
to the application given to her department very soon with a
suitable and satisfactory answer on how she will address this
problem.
I thank you.
Mr M SKWATSHA (Western Cape): Chairperson, I give notice that I shall move at the next sitting of the Council:
That the Council –
1) notes with utter dismay and profound sadness the brutal slaying of
a British tourist, Ms Anni Dewani, after she and her husband, Mr
Shrien Dewani, were hijacked in Gugulethu in Cape Town on Sunday
night, 14 November;
2) further notes that the young couple, who got married about two
weeks ago, arrived in Cape Town on Friday for their honeymoon;
3) takes this opportunity to condemn in the harshest possible terms
this inhuman and heartless incident by merciless and selfish
criminals who have no regard for human life; and
4) calls on all those who might have any information that will bring
the perpetrators of this brutal crime to face the full might of the
law to contact the police.
Mnr W F FABER: Voorsitter, by die volgende sitting van die Raad sal ek voorstel:
Dat die Raad ―
(1) kennis neem dat ―
(a) ’n lid van die gemeenskap in die publieke verhoor in die
Charles Mopeli Stadium die gehoor meegedeel het dat die
burgemeester van die munisipaliteit werkers ontslaan het en
nie aanstel indien hulle nie ’n ANC-lidmaatskap kaart besit
nie;
(b) die DA sulke politiese afpersery, intimidasie en
viktimisering in die sterkste moontlike wyse afkeur en
betreur; en
c) die DA ’n beroep doen op die Minister vir Samewerkende
Regering en Tradisionele Sake en die Minister van Arbeid om
die aangeleentheid deeglik te ondersoek. (Translation of Afrikaans notice of motion follows.)
[Mr W F FABER: Chairperson, at the next sitting of the Council I shall move:
That the Council —
(1) notes that —
(a) a member of the community informed the audience during the
public hearing at the Charles Mopeli Stadium that the mayor
dismissed municipality workers or does not appoint them if
they are not in possession of an ANC membership card;
(b) the DA condemns and deplores such political blackmail,
intimidation and victimisation in the strongest possible
terms; and
(c) the DA calls on the Minister for Co-operative Governance
and Traditional Affairs and the Minister of Labour to
thoroughly investigate the matter.]
Mr D A WORTH: Chairperson, I give notice that I shall move at the next sitting of the Council:
That the Council notes that –
1) the Phuthaditjhaba, Qwaqwa area has the highest unemployment rate
in the Free State province;
2) the DA calls on the provincial government and private enterprises to
create an enabling environment for business and industry in the
Qwaqwa area to ensure more jobs and employment;
3) the DA and the DA youth policies should be followed to create an
open-opportunity society for all the people; and
4) job seekers and the youth must be subsidised by means of work
vouchers to encourage business and industry to employ more people,
especially the youth, whilst they learn a trade.
Mrs E C VAN LINGEN: I give notice that I shall move at the next sitting of the Council:
That the Council ―
1) notes —
a) that illegal gold refining activities at G-Hostel in
Matjhabeng municipality have resumed two days after a
successful SAPS raid;
b) that large amounts of refining equipment and 1 400 kg of gold
were confiscated two weeks ago;
c) that these illegal refining activities are part of a process,
starting with the zama-zamas in the old mines; and
d) that gold is finally sold by syndicates avoiding normal legal
trading processes to the value of at least R10 billion per
annum;
2) requests ―
(a) that the municipality, which is the owner of G-Hostel,
should take responsibility for the illegal operations and
assist the SAPS in its operations;
b) that the mining houses and their security companies honestly
and actively assist the SAPS in their effort to clampdown on
these illegal activities in the mines and above ground; and
3) congratulates Major-General Lerato Molale on the successes of the
SAPS operations at G-Hostel and encourages him to root out the
syndicates at the top of the illegal mining and money-making
processes in the gold industry.
Thank you.
Mr O DE BEER: Chairperson, I give notice that on the next sitting of the House I shall move:
That the Council ―
1) debates ―
a) the necessity for national Police Commissioner Bheki Cele to
transfer four senior commissioners from the Free State to
Limpopo due to allegations of poor performance and inability
to fight crime;
b) the advisability of transferring them, and, by that token,
merely shifting chairs on the deck of the Titanic;
c) the failure of the officers from Limpopo’s Vhembe District and
Capricorn District to turn things around and thereby improve
policing in the Free State; and
2) notes that Cope proposes comprehensive and meaningful action by
government that will lead to real and visible policing in the Free
State.
LANDSLIDE VICTORY FOR ANC IN BY-ELECTIONS HELD ON 10 NOVEMBER 2010
(Draft Resolution)
Mr V V WINDVOËL (Mpumalanga): Chairperson, I move without notice:
That the Council ―
(1) notes that —
(a) the ANC won 10 out of 11 by-elections, which were held on
Wednesday, 10 November 2010, throughout the country;
(b) in terms of Fifa standards, the score is 10-1 against all the
other parties put together; and
(c) it is put on record that three wards in Mpumalanga were not
contested, including by the party of the hon Watson of the DA;
(2) further notes that the by-election results are a clear indication of the trust that the people of South Africa still have in the ANC and their belief that only the ANC is able to address the legacy of the long years of apartheid’s separate development and the challenges that they are facing; and
(3) takes this opportunity to congratulate the elected councillors and calls on them to work tirelessly to advance the needs of their constituencies.
Shapa ANC, shapa! [Beat them, ANC, beat them!]
I so move.
The CHAIRPERSON OF THE NCOP: Is there any objection to the motion? In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
CONGRATULATIONS TO KAIZER CHIEFS ON VICTORY IN SOWETO DERBY
(Draft Resolution)
Mr A J NYAMBI: Chairperson, I move without notice:
That the Council ―
(1) notes that Kaizer Chiefs, abafana bok’thula noxolo [love and peace], gave Orlando Pirates an embarrassing whipping of 3-1 in one of the most anticipated games in South Africa, the Soweto derby, which was played at the FNB Stadium in Soweto, Johannesburg, and peacefully attended by 74 000;
(2) further notes that the revenge would never have tasted sweeter than it did for Kaizer Chiefs when they crushed regional rivals Orlando Pirates, avenging their 2-1 aggregate defeat in the two-leg MTN 8 semifinal in August; and
(3) takes this opportunity to congratulate abafana bok’uthula noxolo [love and peace] for their display of carpet football and their win.
I so move.
The CHAIRPERSON OF THE NCOP: May I remind you that the maximum time for a motion is one and a half minutes and some of you speak for a long time. Is there any objection to the motion? In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
CALL FOR CLAMPDOWN ON ILLEGAL SHEBEENS AFTER TEENAGER DIES
(Draft Resolution)
Mrs M C DIKGALE: Chairperson, I move without notice: That the Council ―
1) notes that a 16-year-old boy was arrested yesterday afternoon for
stabbing another teenager of the same age to death in a shebeen in
Siluma View, Katlehong, in the Gauteng province;
2) further notes that although the boys were clearly underage and not
allowed to procure liquor in any liquor outlet, they were drinking
at the shebeen and then had an argument before the teenager was
killed; and
3) takes this opportunity to convey its profound condolences to the
family of the deceased and calls on metro police and the South
African Police Service to clamp down on illegal shebeen owners and
those selling liquor to children and for those found guilty to lose
their licences.
I so move, Chair. Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
RELEASE OF AUNG SAN SUU KYI
(Draft Resolution)
Mr D D GAMEDE: Chairperson, I move without notice: That the Council ―
1) notes that the Burmese military authorities have released the pro-
democracy leader and Nobel Peace Prize winner, Ms Aung San Suu Kyi,
who was detained in her house for 15 of the past 21 years;
2) further notes that the release of San Suu Kyi, who is the daughter
of Burma’s independence hero General Aung San who was assassinated
in 1947, comes six days after the political party supported by the
military in Burma won the country’s first election in 20 years in a
ballot that was widely condemned as a sham; and
3) takes this opportunity to welcome the release of Ms San Suu Kyi who
remained the inspiration for democracy and freedom in Burma.
I also add that even Kaizer Chiefs is really supportive of this release. I so move.
Motion agreed to in accordance with section 65 of the Constitution.
CONGRATULATIONS TO CAPE TOWN METROPOLITAN POLICE FOR ACTION AGAINST DRUNK DRIVERS
(Draft Resolution)
Mr F ADAMS: Chairperson, I move without notice:
That the Council ―
1) notes reports that the Cape Town Metropolitan Police and the
provincial traffic authorities have arrested almost 3 000 motorists
for drunk driving in the past five months, an average of more than
500 drunk drivers a month;
2) further notes that drunk driving results in the loss of human life
and destruction of our national assets, costing the country and the
motorists millions of rand; and
3) takes this opportunity to call on other metro police across South
Africa to wage a war against irresponsible drivers who drink and
take to the roads.
Motion agreed to in accordance with section 65 of the Constitution.
CONGRATULATIONS TO SPRINGBOKS FOR BEATING WALES
(Draft Resolution)
Mr M J R DE VILLIERS: Chairperson, I move without notice: That the Council ―
1) notes the SA Rugby Team, the Springboks, won their game against
Wales at the Millennium Stadium 29-25 on Saturday;
2) further notes that this victory means a lot to us and the team
because the spirit and support for the next game is now better than
before; and
3) therefore gives praise and appreciation to the whole SA Rugby Team
for making us proud.
May God bless them further and grant His mercy on them to achieve success in their next game to win the grand slam!
Motion agreed to in accordance with section 65 of the Constitution.
CHANCELLOR HOUSE CONFLICT OF INTEREST
(Draft Resolution)
Mnr H B GROENEWALD: Voorsitter, ek stel sonder kennisgewing voor:
Dat die Raad ―
(1) kennis neem dat — (a) die DA sy misnoeë ernstig wil uitspreek teenoor die ANC se werkswyse van geldinsameling;
(b) Chancellor House saam met oud-president Nelson Mandela se
skoonseun, mnr Isaac Kwame Amuah, ’n steenkoolmyn van
Swaziland gekoop het teen R500 miljoen;
(c) die myn beplan om steenkool aan verskeie Suid-Afrikaanse
kragstasies te verskaf waardeur die ANC kan baat vind by Eskom
se uitbreidingsplan van R485 miljoen; en
d) die DA Chancellor House se betrokkenheid by die
steenkoolmyntransaksie beskou as ’n walglike belangebotsing,
want die R1 miljard wat as wins op die transaksie gemaak sal
word, kan eerder aan agtergeblewe gemeenskappe geskenk word
vir die verbetering van infrastruktuur soos elektrisiteit en
die bou van huise. (Translation of Afrikaans draft resolution follows.)
[Mr H B GROENEWALD: Chairperson, I move without notice:
That the House ―
(1) notes that ―
a) the DA wants to express its serious dissatisfaction with the
ANC’s method of fundraising;
(b) Chancellor House, together with former President Nelson
Mandela’s son-in-law, Mr Isaac Kwame Amuah, purchased a
coalmine from Swaziland for R500 million;
(c) the mine is planning to supply coal to various South
African power-stations through which the ANC would be able to
benefit via Eskom’s expansion plan of R485 million; and
(d) the DA regards Chancellor House’s involvement in the coal-
mine transaction as a loathsome conflict of interest, because
the R1 billion profit that is going to be made from this
transaction should rather be donated to disadvantaged
communities towards the improvement of infrastructure such as
electricity and the building of houses.]
The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
FATAL SHOOTING AT KONDELELANI JUNIOR SECONDARY SCHOOL
(Draft Resolution)
Mr A G MATILA: Chair, I move without notice: That the Council ―
1) notes with utter dismay that a security guard, Itumeleng Dlamini-
shot and killed his girlfriend who was a social worker just after a
school assembly and during an exam session at the Kondelelani Junior
Secondary in Soshanguve, north of Pretoria yesterday, 15 November
2010;
2) further notes that one of the bullets fired by the security guard
went through a window, hitting Simon Mthimunye, who had dropped his
orphaned niece and nephew at the school and was about to consult a
social worker when he was hit by the stray bullet and died on the
scene; and
3) takes this opportunity to convey its profound condolences to the
families of the deceased and condemns in the harshest possible terms
such disregard for human life.
Motion agreed to in accordance with section 65 of the Constitution.
AARON MOKOENA HONOURED WITH FREEDOM OF THE CITY OF LONDON
(Draft Resolution)
Ms M W MAKGATE: Chairperson, I move without notice:
That the Council ―
1) notes that Bafana Bafana captain, Mr Aaron Mokoena, has been
honoured with the Freedom of the City of London, which is a
prestigious accolade to attest to Mokoena’s role and service to
football and charitable organisations, which he conducts under the
Aaron Mokoena Foundation, both in South Africa and in England; and
2) takes this opportunity to congratulate Mr Mokoena for raising our
national flag on the shoulders of the world in receiving such an
astonishing and distinguished award.
Motion agreed to in accordance with section 65 of the Constitution.
DA PLEDGES SUPPORT FOR BAFANA BAFANA AGAINST USA
(Draft Resolution)
Mr J M BEKKER: Chairperson, I move without notice:
That the Council ―
1) notes that ―
a) Bafana Bafana will play the United States in the
Nelson Mandela Challenge;
(b) in support and commitment to our nation soccer team,
Bafana Bafana, the DA parliamentary leader the hon Athol
Trollip will be leading over 40 members of the DA caucus in
Parliament into the Cape Town Stadium; and
(c) they will be sitting together to support one team in one
nation with one future; and
(2) urges all South Africans to pray for Bafana Bafana and support them in order for the team to be successful in this match.
I so move.
The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
CONTINUED INTERNAL POWER STRUGGLE IN COPE
(Draft Resolution)
The CHIEF WHIP OF THE NCOP: Chairperson, I move without notice:
That the Council ―
(1) notes that the political drama signalling the political dissipation of Cope continued last weekend when Cope president Mosiuoa Lekota branded his arch-rival and party deputy, Mbhazima Shilowa, a repulsive liar who is not fit to lead the politically fragmented organisation;
(2) further notes that Cope has been involved in a struggle which divided its president and deputy president into two camps and which resulted in the resignation of a number of leaders and thousands of their members joining the ANC; and
(3) takes this opportunity to call on all Cope members to come back to the ANC where they belong to take up the fight against poverty, marginalisation and the redress of the long years of apartheid and be prepared to take over the 2011 local government elections.
I so move, Chair.
The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
ARREST OF ELDERLY MAN ON CHILD PORNOGRAPHY CHARGES
(Draft Resolution)
Mr T M H MOFOKENG: Chair, I move without notice:
That the Council ―
1) notes that a 72-year-old man was arrested at his Bellville home on
Friday after the vice squad and Human Trafficking Task Team received
a tip-off that he was creating child pornography;
2) further notes that the suspect lured his victims, who were between
the ages of 12 and 15, by buying them expensive cellphones and then
took pornographic photos of them; and
3) takes this opportunity to congratulate the citizens who broke their
silence by notifying the police of the repulsive antics of the
perpetrator and calls on all communities to report incidents of
crime in their communities.
Motion agreed to in accordance with section 65 of the Constitution.
MURDERS IN SECTION N IN BOTSHABELO
(Draft Resolution)
Ms M L MOSHODI: Chair, I move without notice:
That the Council -
1) notes with utter dismay that a 45-year-old man shot and killed his
wife and her sister over the weekend at Section N in Botshabelo in
the Free State province;
2) further notes that the suspect is still on the run from the police
and said to be in Gauteng;
3) takes this opportunity to call on everyone who might know him to
alert the police; and
4) condemns in the harshest possible terms such a heartless and callous
murder and conveys its profound condolences to the families of the
deceased.
Motion agreed to in accordance with section 65 of the Constitution.
ALLEGATIONS OF DEMOLITION OF HOUSE BY EXECUTIVE MAYOR MOPELI
(Draft Resolution)
Mr Z MLENZANA: Chairperson, I move without notice:
That the Council –
1) notes the allegation made that the executive mayor, Councillor M
Mopeli, demolished someone’s house with a promise to rebuild it;
and
2) urges that this allegation be investigated with immediate effect
and that the department of human settlements assist the affected
individual as soon as possible.
Motion agreed to in accordance with section 65 of the Constitution.
CONTRAVENTION OF HUMAN TISSUE ACT BY NETCARE
(Draft Resolution)
Ms M P THEMBA: Chair, I move without notice:
That the Council ―
1) notes that after seven years of vigorous denials, Netcare, South
Africa’s largest hospital group, has finally admitted to receiving
cash for illegal kidney transplant operations that were performed
at St Augustine’s Hospital in Durban;
2) further notes that ―
a) the Johannesburg Stock Exchange-listed hospital group received
millions of rands and paid a fine of just more than R4 million
and agreed to a confiscation order of a further R3,8 million
in terms of a plea bargain with the state, ratified by
regional court Magistrate Kim de Freitas in the commercial
crime court; and
b) the hospital group firmly implicates others charged with
fraud, forgery, uttering, assault and contraventions of the
Human Tissue Act relating to 109 kidney transplant operations
done at the hospital in which, it is alleged, poor Brazilians
were recruited and paid to donate their organs to relatively
wealthy Israeli kidney patients; and
3) takes this opportunity to condemn in the harshest possible terms
such repulsive exploitation of the poor by the hospital and calls
on the National Prosecuting Authority to ensure that all hospital
groups involved in such repulsive practices are brought to book.
Motion agreed to in accordance with section 65 of the Constitution.
The CHAIRPERSON OF THE NCOP: Hon member, I said that the time for motions is over but, as you are a new member, I’ll give you some time.
DAMAGE TO CHARLES MOPELI STADIUM
(Draft Resolution)
Mr J VISSER (Western Cape): Chairperson, I move without notice:
That the Council notes with dismay that this beautiful stadium we are in at the moment is damaged to such an extent that the tartan athletics track is irreparable because of bad management by the local municipality.
Thank you.
The CHAIRPERSON OF THE NCOP: In light of the objection, the motion may not be proceeded with. The motion without notice will now become a notice of motion.
DIVISION OF REVENUE AMENDMENT BILL
(Consideration of Bill and of Report thereon)
Mr T E CHAANE: Chairperson and hon members, I hereby present to this august House the Division of Revenue Amendment Bill. The Bill was tabled in Parliament on 27 October 2010 by the Minister of Finance during the tabling of the 2010 Medium-Term Budget Policy Statement. This process was followed by engagements between the committee and provinces which culminated in the consideration of negotiating mandates on 5 November 2010, followed by consideration of the final mandates on 10 November 2010, where the majority of provinces supported the Bill.
During the adjustment period, expenditure estimates were adjusted downwards by R2,464 billion from R818,143 billion to R815,679 billion. The reduction in the expenditure estimates has primarily been effected in the national government sphere, whereby the equitable share allocation of national departments has been adjusted downwards by R7,021 billion from R527,001 billion to R519,981 billion.
On the other hand, the equitable shares of the provincial and local government spheres have increased by R4,166 billion to R265,139 billion and R390,860 million to R30,559 billion respectively. It should be noted that no adjustments were made to the national sphere as, in respect of the financial year, it exceeds the anticipated revenue set out in Schedule 1. The excess accrues to the national government, subject to subsection 3.
The additional allocation of R4,166 billion to the provincial government sphere was distributed among the nine provinces. The additional allocation of R390,860 million to the local government sphere was distributed among the municipalities within each province. During the adjustment period, municipalities within the boundaries of Gauteng province did not receive additional allocations to their equitable share. The additional allocations to the local government equitable share is for the purpose of supporting funding related to the extension of free basic services to indigents.
The following new allocations and amendments were noted in respect of specific purpose grants to provinces. In terms of the agriculture disaster management grant, R50 million was allocated to the Western Cape province for expenditure related to agriculture disasters such as drought. This grant is allocated as the need arises.
In terms of the provincial infrastructure disaster relief grant, R214,398 million was allocated to KwaZulu-Natal for the rehabilitation of infrastructure destroyed by flooding. This grant is also allocated as needs arise. The comprehensive HIV/Aids grant increases by R40 million from R6,012 billion to R6,052 billion. The human settlement development grant increases by a net amount of R15 million. Gauteng province receives an additional allocation of R115 million and the North West province’s allocation is adjusted downwards by R100 million.
The devolution of the property rates fund grant increases by R769,035 million, from R1,096 billion to R1,865 billion. This grant could assist in reducing the current debt by government departments to municipalities. The committee appreciates the co-operation it received from provinces in dealing with this particular Bill, and we have noted the concerns from the provinces. Chairperson, we therefore move for the adoption of the Bill without amendments. I thank you.
Debate concluded.
Question put: That the Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Bill accordingly agreed to in accordance with section 65 of the Constitution.
GEOSCIENCE AMENDMENT BILL
(Consideration of Bill and of Report thereon)
Mr B A MNGUNI: Chairperson, the Select Committee on Economic Development deliberated on the Geoscience Amendment Bill over the past few weeks and has carefully looked at the amendments and the implications thereof. The Geoscience Amendment Bill seeks, most importantly, to protect the citizens of the country with regard to their homes built in areas characterised by potential life-threatening geological conditions of dolomite land, areas of potential slope stability problems and areas prone to potential severe seismicity and flood-line areas.
The Geoscience Amendment Bill seeks also to enable the Geological Science Council to gather geoscience information including, amongst others, with regard to geotechnical information, exploration mining, geohydrology, geochemistry, geophysics, engineering geology, economic geology, geohazards and environmental geology.
This Council will undertake geoscientific research and perform generic geological functions in any country or territory outside the Republic on behalf of any person, institution, government or administration. This is important for the country, considering the risk that most areas suffer and also assists in future property development.
The Select Committee on Economic Development, having considered and examined the Geoscience Amendment Bill, recommends that the Bill be passed without amendments. Thank you. Debate concluded.
Bill agreed to in accordance with section 75 of the Constitution.
The Council adjourned at 17:31. ____
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 12 NOVEMBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
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Recommendations on salaries, allowances and benefits of public office bearers
1) The annual recommendations of the Independent Commission for the Remuneration of Public Office Bearers in respect of the salaries, allowances and benefits of public office bearers for the fiscal year commencing 1 April 2010 were submitted to Parliament on 11 November 2010 in accordance with section 8(5) of the Independent Commission for the Remuneration of Public Office Bearers Act, 1997 (No 92 of 1997), along with recommendations on the pension and pension benefits of former President K P Motlanthe in terms of section 2(5)(a) of the Remuneration of Public Office Bearers Act, 1998 (No 20 of 1998).
National Council of Provinces
The Chairperson
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Correction of Reports
Please note that the Reports of the Select Committee on Security and Constitutional Development on the progress reports on the provisional suspension from office of Magistrates Masinga, Maruwa, Jacobs and Dumani, published in the ATC No 144 – 2010 on the 11 November 2010 should be corrected as follows:
The concluding phrase, “Report to be considered.” should be omitted and replaced with the phrase, “To be noted”.
COMMITTEE REPORTS
National Council of Provinces
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REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE 2010 DIVISION OF REVENUE AMENDMENT BILL, DATED 10 NOVEMBER 2010
HAVING CONSIDERED THE DIVISION OF REVENUE AMENDMENT BILL [B35-2010], THE SELECT COMMITTEE ON APPROPRIATIONS, REPORTS AS FOLLOWS:
- BACKGROUND
Section 12 of the Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009 (the Act) requires the Minister of Finance to table the Division of Revenue Amendment Bill together with the revised Fiscal Framework if the adjustments budget effects changes to the Division of Revenue Act (DoRA) for the 2010/11 financial year. This is intended to foster transparency and ensure smooth intergovernmental relations. The Intergovernmental Fiscal Relations Act (1997) prescribes the process for determining the equitable sharing and allocation of revenue raised nationally. Sections 9 and 10 (4) of the Act set out the consultation process to be followed with the Financial and Fiscal Commission (FFC), including the process of considering recommendations made with regard to the equitable division of nationally raised revenue.
In enforcing section 77 of the Constitution, the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 was enacted. This budget reform empowers Parliament to amend the government budget and therefore plays a greater role in ensuring that the most urgent needs of South Africans are addressed. It provides Parliament with necessary instruments to oversee government actions and monitor its fiscal discipline. While this reform is widely welcomed, the Select Committee on Appropriations (henceforth referred to as the Committee) is mindful that this legislation will be phased in over the years. The Committee’s concern and focus is on the establishment of the Parliamentary Budget Office that will provide more support to enable the Committees on Appropriations and Finance to fulfil their legislative responsibilities.
The Division of Revenue Amendment Bill was tabled in Parliament on 27 October 2010 by the Minister of Finance during the tabling of the 2010 Medium Term Budget Policy Statement (MTBPS).
Clause 1 (the focus of this brief) of the Bill provides for the substitution of Schedules 1 to 8 of the Division of Revenue (DoRA) for Schedules 1 to 8 of the Bill. The Schedules to the Bill address the following matters: • Additional unconditional and conditional allocations to provinces and municipalities; • The allocation of unallocated conditional allocations to provinces and municipalities; • The re-allocation of conditional allocations in terms of section 18 of the DoRA; • Roll-overs of conditional allocations to provinces and municipalities not transferred by national departments during the 2009/10 financial year; • Increases to a conditional allocation to a province or municipality through virements under section 43 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) or section 28(2)(d) of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), as the case may be; and • The re-allocation of conditional allocations that were not correctly reflected in the Schedules to the DoRA.
- Equitable division of revenue raised nationally among the spheres of government
Table 1: Schedule 1 | |Column A |Column B |Column C | |Sphere of | | | | |Government | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | | | | | | |National | | | | | | | | | | |527 001 492 |519 980 624 |-7020868 | |Provincial |260973745 |265139448 |4165703 | |Local |30167706 |30558566 |390860 | |Total |818142943 |815678638 |2464305 |
National Treasury (2010) [adapted]
The adjustments ended up in a net reduction of R2.4 billion whereby expenditure estimates levels decreased from R818.1 billion to R815.7 billion. The total allocations to national departments decreased by R7.0 billion, allocations to provinces increased by R4.2 billion and allocations to local government increased by R0.3 billion. In effect the general decrease will not impact on provincial and local spheres of government like on the national sphere of government where allocations were reduced. It is clear the reduced allocations are due to shortfall in the unexpected revenue collected. In terms of section 6(1) of the DoRA if actual revenue raised nationally in respect of the financial year falls short of the anticipated revenue set out in Schedule 1, the national government bears the shortfall and in terms of section 6(2) of the DoRA if actual revenue raised nationally in respect of the financial year exceeds the anticipated revenue set out in Schedule 1, the excess accrues to the national government, subject to subsection (3).
Budget spending projections also make provision for about R3.6 billion in under spending at a national level (including declared savings). Offsetting this R9.6 billion available on the main budget against the R7.2 billion in the adjustments budget, the total estimated level of spending decreases to R2.5 billion.
- Determination of each province’s equitable share of the provincial sphere’s share of revenue raised nationally
Table 2: Schedule 2 | |Column A |Column B |Column C | |Province | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | | | | | | |Eastern Cape | | | | | |40134424 |40789918 |655494 | |Free State |15959310 |16217212 |257902 | |Gauteng |45134335 |45869090 |734755 | |KwaZulu Natal |56742834 |57632201 |889367 | |Limpopo |33237814 |33766574 |528760 | |Mpumalanga |21323198 |21640037 |316839 | |Northern Cape |7101615 |7201470 |99855 | |North West |17314124 |17567122 |252998 | |Western Cape |24026091 |24455824 |429733 | |Total |260973745 |265139448 |4165703 |
National Treasury (2010) [adapted]
The current adjustments resulted in the expenditure level estimates in provinces increasing from R261.0 billion to R265.1 billion. The additional allocation of R4.2 billion to provincial equitable share was distributed as follows:, KwaZulu Natal increased by R0.889 billion, Gauteng R0.734 billion, Eastern Cape by R0.655 billion, Limpopo by R0.528 billion, Western Cape by R0.429 billion, Mpumalanga by R0.316 billion, North West by R0.252 billion and Northern Cape by R0.099 billion respectively.
- Roll Overs held back due to the unspent conditional grants by local government sphere Table 3: Schedule 3 | |Column A |Column B |Column C | |Province | | | | | |2010/11 |2010/11 |Amount | | |allocation |adjustments |adjusted | | | | | | | |R’000 |R’000 |R’000 | |Eastern Cape |4450185 |4453126 |2941 | |Free State |2805978 |2831056 |25078 | |Gauteng |5445197 |5445197 |0 | |KwaZulu-Natal |5533344 |5712667 |179323 | |Limpopo |3666434 |3678434 |12000 | |Mpumalanga |2803310 |2909548 |106238 | |Northern Cape |909198 |929810 |20612 | |North West |2563886 |2599921 |36035 | |Western Cape |1990175 |1998808 |8633 | |Total |30167706 |30558566 |390860 |
National Treasury (2010) [adapted]
Except for Gauteng, all provinces experienced roll overs due to the unspent conditional grants by local municipalities. Although the Committee has noted the rolling over of funds; there is still a need for more clarity to further explain the circumstances leading to such under expenditure especially with regard to funds that are supposed to support the extension of free basic services to indigents. On the other hand, the Committee need to ensure that these funds target critical needs such as indigents, repairs and maintenance of ageing infrastructure.
In Eastern Cape, four municipalities received increased allocations- Sunday’s River Valley Municipality received increased allocations from R25.7 million to R26.1 million, Nxuba Municipality increased allocations from R16.2 million to R16.3 million, Inxuba Yethemba Municipality received increased allocations from R32.8 million to R34.2 million, Senqu Municipality received increased allocations from R66.4 million to R66.8 million.
In Free State, five municipalities received increased allocations – Kopanong an increase from R72.7 million to R78.0 million, Mantsopa an increase from R53.9 million to R55.1 million, Motheo District an increase from R 152.3 million to R152.7 million, Phumelela an increase from R44.2 million to R45.1 million and Metsimaholo an increase from R79.0 million to R143.9 million.
In KwaZulu-Natal, seven municipalities received additional allocations – Vulamehlo an increase from R24.5 million to R25.6 million, uMuziwabantu an increase from R30.3 million to R31.3 million, Zululand District an increase from R198.6 million to R215.4 million, Jozini an increase from R48.5 million to R54.1 million, Hlabisa an increase from R39.2 million to R43.7 million, KwaDukuza an increase from R50.9 million to R57.9 million, and Ubuhlebezwe an increase from R35.4 million to R42.3 million.
Limpopo’s total allocations increased from R3.6 billion to R3.7 billion where three municipalities received additional allocations – Makhuduthamaga received an increase from R107.3 million to R111.8 million, Molemole an increase from R57.0 million to R61.3 million and Thabazimbi an increase from R45.1 million to R48.2 million.
In Mpumalanga, municipalities received additional allocations from R2.8 billion to R2.9 billion whereby four municipalities received additional allocations as follows – Mkhondo an increase from R73.3 million to R80.8 million, Thabachweu an increase from R59.5 million to R62.6 million, Mbombela an increase from R247.6 million to R295.9 million and Bushbuckridge an increase from R339.7 million to R387.1 million. Northern Cape received an additional R612 million whereby five municipalities received additional allocations – Hantam received an increase from R15.6 million to R17.4 million, Karoo Hoogland received an increase from R10.1 million to R12.1 million, Ubuntu received an increase from R13.9 million to R16.7 million, //Khara Hais received an increase from R40.5 million to R45.4 million, and Sol Plaatjie received an increase from R121.7 million to R130.9 million.
North West received an additional R360.3 million whereby five municipalities received additional allocations – Moses Kotane received an increase from R179.2 million to R186.4 million, Mafikeng received an increase from R96.3 million to R102.4 million, Kagisano received an increase from R42.8 million to R49.4 million, Ventersdorp received an increase from R35.2 million to R37.6 million and Tlokwe received an increase from R69.0 million to R82.8 million.
Western Cape received an additional R390.8 million whereby four municipalities received additional allocations – Matzikama received an increase from R27.1 million to R31.3 million, Bergrivier received an increase from R18.7 million to R20.9 million, Overstrand received an increase from R26.9 million to R28.0 million and George received an increase from R58.2 million to R59.3 million.
- Allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets
This Schedule comprises of a number of conditional grants and the only grant that has changed is the Further Education and Training Colleges Grant which received an additional R31.2 million during the adjustment period. According to the National Treasury 2010/11 First Quarterly Reports, there was no spending for Further Education and Training grants as at 30 June
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While the Committee welcomes the increase, the Committee is concern that less than anticipated expenditure in the first quarter would negatively impact on the second quarter expenditure projections.
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Specific purpose allocations to provinces: Schedule 5 Grants Out of approximately nineteen grants in this category, only three grants received additional allocations – Comprehensive HIV and Aids Grant, Human Settlements Development Grant, and Devolution of Property Rate Funds Grant.
The purpose of the Comprehensive HIV and Aids Grant is to enable the health sector to develop an effective response to HIV and Aids, to support the implementation of the National Operational Plan for Comprehensive HIV and Aids treatment and care, and to subsidise in-part funding for the antiretroviral treatment programme. This Grant was allocated R6.0 billion for the baseline, during the adjustment the grant received an additional amount of R40 million.
The purpose of the Human Settlements Development Grant is to provide funding for the creation of sustainable human settlements. Although, in total, this Grant received additional allocations of R15 000 million only Gauteng received an increase from R3.7 billion to R3.8 billion while North West had its allocations reduced from R1.2 billion to R1.1 billion. There were no changes in allocations to other provinces.
The purpose of the Devolution of Property Rate Fund Grant is to facilitate the transfer of property rates expenditure responsibility to provinces, and to enable provincial accounting officers to be fully accountable for their expenditure and payment of provincial property rates. The grant received an increase from R1.0 billion to R1.8 billion. The Public Works Report shows that 49 per cent of the allocation was spent as at the 30 August 2010 in this regard. This grant could be the main source of revenue generation for municipalities and can also reduce the current debt by government departments to municipalities. While the Committee welcomes the increase in this grant, there is a need for the relevant Committees and other stakeholders to ensure that there are systems and plans in place that will enable provinces to spend the additional allocations efficiently and economically. This will assist the government to be able achieve value for money in such expenditure and required outcomes.
- Schedule 6 Grants: Specific purpose allocations to municipalities
Two grants in this category received additional allocations and they are the Water Services Operating Subsidy Grant and Municipal Drought Relief Grant.
The purpose of the Water Services Operating Subsidy Grant is to subsidise water schemes owned and/or operated by the Department of Water Affairs or by other agencies on behalf of the Department. Net additional allocations to the Water Services Operating Subsidy Grant amount to R22.1 million in the 2010/11 financial year and is comprised as follows: R8.4 million is added to the Schedule 6 Grant and R13.7 million is added to the Schedule 7: Grant-in-kind.
However, it will be important to provide a detailed explanation for allocations to specific projects to the Committee so that the expenditure of these additional funds can be effectively monitored.
The purpose of the Municipal Drought Relief Grant is to provide capital finance for basic water supply in municipal infrastructure for affected households, micro enterprises and social institutions. The grant received an additional allocation of R92 million which is specifically allocated to the Mossel Bay Municipality for drought relief.
- Consideration of Mandates
Seven provinces submitted their final mandates on the 2010 Division of Revenue Amendments Bill to the Committee and all of these provinces voted in favour of the Bill. Therefore the majority of provinces voted in favour of the Bill. The two provinces that did not submit their final mandates are Free State and KwaZulu-Natal.
With regard to negotiating mandates, the North West province raised the following concerns in their negotiating mandates:
- The Provincial Equitable Share (PES) formula in its allocation to provinces and municipalities needs to be reviewed;
- The PES formula alone cannot be used in all aspects of allocation of budgets to provinces, departments and municipalities. Another formula or formulas of varying departments and municipalities should be used;
- The allocation of budgets to municipalities in the North West should be done in consultation with the Province; and
- The conditional grants allocated to the North West departments are insufficient for the work that needs to be carried out by the respective departments.
The North West Province also noted the time constraints for the programme activities related to the adoption of the Bill, making it impossible to comply with the standard procedures as per Section 118 (1) of the Constitution (Act No 108 of 1996), namely to facilitate public involvement in the legislative and other processes of the Legislature and its committees when a Section 76 Bill is referred to the Committee. However, the Committee accepted the reasons for the strict timeframe for the adoption of the Bill; and appreciates the fact that Legislatures were briefed on matters related to the Bill. The Gauteng Province raised its concern on the hasty manner in which Parliament processes were undertaken in referring the Bill to Provinces as this has a negative impact on the programmes of Provincial Committees in fully complying with the regulations guiding the consideration of NCOP Bills, with particular reference to public participation.
The Western Cape Province proposed the insertion of a clause after clause 1 of the Bill to propose for the amendment of section 29 of the Division of Revenue Act. This to allow provinces to amend allocations to municipalities in respect of human settlement grants after the Adjustment Appropriation Bill is submitted to the legislature, but not later than 14 February each year. Furthermore, the MEC for Finance must approve the date of such amendment and the amendments must be in accordance with the adjustments budget and appropriation legislations.
The National Treasury responded that there is no need for Western Cape Province proposal because section 36 of the Division of Revenue Act 1 of 2010 covers the proposed clause. Section 36 (1) states that the National Treasury may, on written application by the transferring national officer, province, or municipality, exempt such officer, province, or municipality in writing from complying with a provision of Act 1 of 2010. Section 36 (2) goes further to say any exemption granted in terms of subsection (1) must set out the period and conditions, if any, to which it is subject and must be published in the gazette.
- Recommendation
The Select Committee on Appropriations, having considered the Division of Revenue Amendment Bill [B 35 – 2010], recommends to the House that it be approved (without amendments).
- Conclusion
In conclusion, the Select Committee on Appropriations (the Committee) will monitor the utilisation of these additional grant allocations through the in-year monitoring process which forms part of Parliamentary oversight. This will enable the Committee to be able to check whether financial legislations such as Division of Revenue Act (DoRA), Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA) are adhered to by provincial and local government spheres. The Committee will also monitor the efficiency of administration in compiling and spending various schedules so that schedules are not incorrectly recorded, classified or misplaced in the process. This will assist the Committee to identify challenges and, enhance the level of accuracy and compliance in all levels of government through making relevant recommendations during the in-year monitoring process.
Report to be considered.
MONDAY, 15 NOVEMBER 2010 TABLINGS
National Assembly and National Council of Provinces
- The Minister of Trade and Industry
(a) General Notice No 991 published in Government Gazette No 33660
dated 15 October 2010: Codes of Good Practice on Broad Based Black
Economic Empowerment: Invitation to submit comments: Black Economic
Empowerment Act , 2003 (Act No 53 of 2003).
(b) Government Notice No R.924 published in Government Gazette No
33615 dated 15 October 2010: Regulations in terms of the National
Regulator for Compulsory Specifications Act, 2008 (Act No 5 of
2008).
(c) Government Notice No 898 published in Government Gazette No
33621 dated 11 October 2010: Determination of threshold in terms of
the Consumer Protection Act, 2008 (Act No 68 of 2008).
(d) General Notice No 917 published in Government Gazette No 33581
dated 23 September 2010: Notice to defer the general effective date
in terms of the Consumer Protection Act, 2008 (Act No 68 of 2008).
(e) General Notice No 827 published in Government Gazette No 33559
dated 16 September 2010: Amendment: For written comments in terms
of the National Gambling Act, 2004 (Act No 7 of 2004).
(f) General Notice No 799 published in Government Gazette No 33459
dated 18 August 2010: Notice in terms of section 23 of the
Counterfeit Goods Act, 1997 (Act No 37 of 1997).
(g) General Notice No 800 published in Government Gazette No 33459
dated 18 August 2010: Notice in terms of section 23 (1) and (2) of
the Counterfeit Goods Act, 1997 (Act No 37 of 1997).
TUESDAY, 16 NOVEMBER 2010
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
- Bills passed by Houses – to be submitted to President for assent
1) Bills passed by National Council of Provinces on 16 November 2010:
a) Geoscience Amendment Bill [B 12B – 2010] (National Assembly –
sec 75).
b) Division of Revenue Amendment Bill [B 35 – 2010] (National
Assembly – sec 76).
National Council of Provinces
The Chairperson
- Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council
(1) Bill passed by National Assembly and transmitted for concurrence
on 16 November 2010:
(a) Regulation of Interception of Communications and Provision
of Communication-related Information Amendment Bill [B 38 –
2010] (National Assembly – sec 75).
The Bill has been referred to the Select Committee on Security
and Constitutional Development of the National Council of
Provinces.
TABLINGS
National Assembly and National Council of Provinces
- The Speaker and the Chairperson
(a) Draft notice and schedule determining the rate, with effect
from 1 April 2010, at which salaries, allowances and benefits are
payable to Constitutional Court Judges and Judges annually, for
approval by Parliament in terms of section 2(4) of the Judges’
Remuneration and Conditions of Employment Act, 2001 (Act No 47 of
2001).
(b) Draft notice and schedule determining the rate, with effect
from 1 April 2010, at which salaries, allowances and benefits are
payable to magistrates annually, for approval by Parliament in
terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of
1993).
Referred to the Portfolio Committee on Justice and Constitutional
Development and the Select Committee on Security and Constitutional
Development for consideration and report. 2. The Minister of Justice and Constitutional Development
(a) Report and Financial Statements of the Council for Debt
Collectors for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-2010.
b) Proclamation No R.54 published in Government Gazette No 33576 dated
17 September 2010: Commencement in terms of the Reform of Customary
Law of Succession and Regulation of Related Matters Act, 2009 (Act
No 11 of 2009).
(c) Proclamation No R.57 published in Government Gazette No 33605
dated 1 October 2010: Commencement in terms of the Criminal
Procedure Amendment Act, 2008 (Act No 65 of 2008).
(d) Government Notice No R.868 published in Government Gazette No
33605 dated 1 October 2010: Designation of correctional facilities
in terms of the Criminal Procedure Act, 1977 (Act No 51of 1977).
(e) General Notice No 800 published in Government Gazette No 33459
dated 18 August 2010: Notice in terms of section 23 (1) and (2) in
terms of the Counterfeit Goods Act, 1997 (Act No 37 of 1997).
(f) Proclamation No R.45 published in Government Gazette No 33550
dated 10 September 2010: Commencement of sections 10, 13, 14, 15
and 16 of the Act in terms of the Judicial Matters Amendment Act,
2008 (Act No 66 of 2008). 3. The Minister of Finance
(a) Report and Financial Statements of the Government Employees
Pension Fund for 2009-2010, including the Report of the Independent
Auditors on the Financial Statements and Performance Information
for 2009-2010.