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TUESDAY, 24 APRIL 2012
____
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – OLD ASSEMBLY
CHAMBER
____
Members
of
the
Extended
Public
Committee
met
in
the
Old
Assembly Chamber at 16:53.
House Chairperson Mr C T Frolick, as 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.
APPROPRIATION BILL
Debate on Vote No 16 – Health:
The
MINISTER
Ministers
OF
HEALTH:
present
here
Chairperson,
today,
my
Ministers
colleague,
and
Deputy
the
Deputy
Minister of Health, Dr Gwen Ramokgopa, MECs from the various
provinces,
hon
chairperson
of
the
portfolio
committee,
Dr
Monwabisi Goqwana, and members of your committee, hon members
of
the
House,
the
Director-General
of
Health,
Ms
Precious
EPE 24 APRIL 2012
Matsoso,
Your
PAGE: 2 of 429
Excellencies,
High
Commissioners
and
Ambassadors, leaders of the various statutory bodies, health
unions
and
other
health-related
organisations,
our
special
guest, the Roll Back Malaria and Unicef Goodwill Ambassador
and UN Envoy for Africa, Ms Yvonne Chaka Chaka, distinguished
guests,
ladies
and
gentlemen,
it
is
a
great
honour
and
privilege to present to this House the national Department of
Health’s policy priorities and budgets for the financial year
2012-13 for your consideration.
This period falls in the mid-term of our office. It is very
important for me to do some form of review of our health care
system.
This
will
shape
our
understanding
of
how
we
can
protect and maximise our gains for the remaining half of the
term. We started the term by putting forward a 10-point plan,
which you are familiar with by now.
The Department of Health’s outcome is “A long and healthy life
for all South Africans”. It is one of the 12 outcomes of
government. This “long and healthy life” is not going to be
achieved through wishes or sloganeering. It is not going to
roll in on the wheels of inevitability. There has to be a
well-thought-out and well-executed plan to achieve this. We
have selected four outputs that must be achieved to realise
the goal of a long and healthy life for all South Africans.
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The first output is to improve the life expectancy of all
South Africans. We all know that the life expectancy figures
in our country have taken a serious knock as a result of the
quadruple burden of disease, or the four pandemics, that the
country is experiencing. These four pandemics, as you know,
are the scourge of HIV/Aids and tuberculosis; the unacceptably
high
incidence
of
expanding
burden
incidence
of
maternal
of
and
child
noncommunicable
violence
and
injury,
mortality;
diseases
including
the
and
the
motor
everhigh
vehicle
accidents.
We need to do everything in our power as a country to defeat
the
four
pandemics,
hence
our
second
output
is
decreasing
maternal and child mortality. The third output is dealing with
the scourge of HIV/Aids and tuberculosis.
Chairperson,
to
facilitate
on
understanding
of
what
I
am
trying to convey to this House, please allow me to deal with
these first three outputs, before I even mention the fourth
one. I have a special reason for doing so, and I will explain
it later as I go along.
With regard to the issue of HIV/Aids and tuberculosis, as a
country we started the early decades of HIV/Aids on the wrong
foot, but recently, in typical South African style, we have
bounced
back.
We
have
shown
that
a
common
goal
and
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collaboration
PAGE: 4 of 429
and
solidarity
against
a
shared
threat
is
desired and can produce results.
Through our combined efforts and collaborative undertakings,
we launched a huge campaign to test and counsel 15 million
South Africans with regard to HIV. We have achieved this and
even exceeded the target, and today more than 20 million South
Africans know their status.
Through this programme, we have been able to counsel and place
1,6 million
have
South
achieved
Africans
this
by
on
antiretroviral
increasing
ARV
treatment.
sites
from
We
490 in
February 2010 to 3 000 in April 2012. We have increased the
number
of
nurses
certified
to
initiate
ARV
treatment
from
250 in February 2010, to 10 000 in April 2012.
Within
the
same
period,
we
conducted
320 000
medical
male
circumcisions. We have reduced mother-to-child transmission of
HIV from 8% in 2008 to 3,5% in 2011, or even to 2,5%, in the
case of KwaZulu-Natal. This is a reduction of 50%.
This
success
contracting
has
HIV
allowed
from
their
us
to
save
mothers.
In
30 000 babies
order
not
from
to
be
complacent, we have unveiled a new National Strategic Plan on
HIV/Aids
and
tuberculosis
for
the
period
2012-16.
This
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strategic plan was officially launched by President Jacob Zuma
on World Aids Day last year.
The provincial implementation programme was launched by Deputy
President Kgalema Motlanthe on World TB Day on 24 March this
year. For the first time in the history of our country, we
have
integrated
HIV/Aids
and
tuberculosis
in
the
same
strategic plan. This new plan outlines a 20-year vision for
the
country
in
the
fight
against
the
double
scourge
of
HIV/Aids and tuberculosis.
Hon members, we need your support and leadership to make the
four strategic objectives in the country’s National Strategic
Plan
a
success.
addressing
the
These
social
four
strategic
structural
drivers
objectives
of
HIV,
are:
sexually
transmitted diseases, as well as tuberculosis care, prevention
and
support;
infections;
preventing
sustaining
new
health
HIV,
and
STD
and
wellness;
tuberculosis
and,
lastly,
ensuring the protection of human rights and improving access
to justice.
The new National Strategic Plan further requires that every
South African must be tested at least once a year. We believe
that if all South Africans can play their role, these goals
will be achieved. We need to make sure that every pregnant
woman
undergoes
routine
HIV-testing.
We
need
to
make
sure
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every male is circumcised and so, this year, we are targeting
600 000 men.
The problems of the high maternal and child mortality rate,
high rates of pregnancy-related deaths, the disproportionate
number of women exposed to sexual violence – with the worst
incident of all shaming the country just this past week – are
cause for concern.
You will have noted that most of our interventions on HIV/Aids
are directed at saving pregnant women and children. It is
important to note that maternal mortality is not just the
death of a woman, it is the death of a woman because she dared
to fall pregnant. She runs the risk of dying because she is
trying to bring new life into this world.
We know that even mortality as a result of HIV/Aids, as well
as
malaria,
is
disproportionally
affecting
young
women
of
child-bearing age. This disproportionate assault on women of
child-bearing age is happening more on the continent of Africa
than in any other part of the world.
Therefore the African Union came up with a programme called
the Campaign on Accelerated Reduction of Maternal and Child
Mortality in Africa, or Carmma. In our country, we will launch
Carmma
on
4 2012
May,
at
the
Osindisweni
Hospital
in
the
province of KwaZulu-Natal. Members of the portfolio committee
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have been invited to this event through their chairperson. We
will outline concrete steps to reduce the maternal and child
mortality rate during that event. During that event we will
elaborate further on how we shall roll out the strategy called
the Essential Steps in Managing Obstetric Emergencies and the
strategy called Emergency Obstetric Simulation Training.
The output on increasing life expectancy, which is our first
output, does not only depend on our fight against HIV/Aids and
reducing
maternal
and
child
mortality,
but
also
depends
largely on bringing noncommunicable diseases under control and
decreasing the scourge of violence, as well as injuries on our
roads.
Until
very
recently,
the
issue
of
noncommunicable
diseases was not spoken about much in the public arena. Many
people didn’t understand it, though it preceded HIV/Aids by
several decades. This is because, unlike the NCDs, HIV/Aids
arrived abruptly and brutally on this planet. It came as such
a shock to the world that many strong civil society groups
were formed to deal with it.
This
is
against
why
there
HIV/Aids.
is
The
a
measure
NCDs,
as
of
the
success
name
in
the
implies,
battle
are
not
transmitted from one person to the another by a germ or a
biological agent. They are not only biomedical but, by and
large, lifestyle diseases.
EPE 24 APRIL 2012
They
are
PAGE: 8 of 429
divided
into
four
categories
and
have
four
identifiable risk factors. I advise people to remember them as
the 4x4s, because there are four categories with four risk
factors. These categories are: high blood pressure and other
diseases of the heart and blood vessels; diabetes mellitus and
a few other metabolic disorders; chronic respiratory diseases
like asthma; and cancer.
We would like to add mental health as a problem that falls
within these categories. The four risks factors, as you know
and I will keep on reminding you, are: smoking, excessive use
of alcohol, unhealthy eating behaviour or poor diet and a
continued lack of physical exercise – and these risks can be
repeated
10 times
over.
The
President
spoke
about
these
problems in the state of the nation address, when he advised
us not to allow our bodies to bulge uncontrollably, as many of
us are unfortunately prone to doing. [Laughter.]
We are going to announce far-reaching measures to deal with
these risk factors. The United Nations General Assembly took a
resolution
on
these
issues
in
September
last
year.
The
measures we will announce will leave no sacred cows untouched,
and that includes alcohol control, an issue in regard to which
some have attempted to intimidate us never to mention it, just
as they have tried to intimidate us in regard to the issue of
tobacco and tobacco products.
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The
fourth
effectiveness
PAGE: 9 of 429
output
is
of
health
the
improving
care
the
efficiency
system.
and
Chairperson,
I
promised earlier that I would raise the fourth outcome after I
had
mentioned
special
the
attention
other
in
three.
its
The
own
fourth
right
outcome
because
merits
of
the
extraordinary challenges we are faced with in this area. In
fact,
in
talking
recent
about
days,
health,
whenever
they
have
South
Africans
mostly
have
referred
been
to
the
efficiency and effectiveness of the health care system, or the
inefficiency and ineffectiveness of the health care system.
We have identified five areas of activity, or five programmes.
The first is the improvement of infrastructure. The second is
the issue of human resources, its planning, development and
management. The third is the quality of health care in our
institutions.
The
fourth
is
the
re-engineering
of
primary
health care. The fifth is the cost of health care. The much
talked-about National Health Insurance, falls within the last
programme category. Due to a lack of time, I will deal with
only two of these problems today, namely the issue of quality
in our public facilities and the issue of the NHI.
The President addressed this issue during the state of the
nation address when he said, and I quote:
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Fellow South Africans, we are seriously concerned about the
deterioration of the quality of health care, aggravated by
the steady increase in the burden of disease in the past
decade and a half.
We haven’t rested on our laurels since that time. We also did
not want to work on the basis of anecdotes or common sense in
dealing with quality. Therefore we embarked on a process of
health-facility audits. This entails sending teams to all of
the
4 200 public
infrastructure,
health
human
facilities
resources,
to
cleanliness,
audit
their
attitude
of
staff, safety and security of staff, infection control, drug
stock-outs and the long queues that citizens have to endure
when visiting our facilities.
Since we have completed 90% of the audit process, we think we
fully comprehend the nature of the problems. Therefore we have
put together four health facility improvement teams to go to
these facilities and work with the provincial management in
order to correct all the anomalies and findings identified
during the audits.
The teams have already started working in Motheo District in
the Free State, Sedibeng in Gauteng, Zululand in KwaZulu-Natal
and
Pixley
ka
Seme
in
the
Northern
Cape.
The
portfolio
committee is busy going through the draft legislation we have
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presented to it to establish the Office of Health Standards
Compliance. This office will deal with the issues of quality
as described above, without fear or favour. I would like to
repeat this, Chairperson: We would like the Office of Health
Standards Compliance to deal with issues of health standards
without fear or favour.
On the topic of the NHI, there is no way on efficient and
effective
dealing
health
with
financing.
the
There
care
system
cost
are
can
of
ever
health
people
who
be
care
wrongly
realised
and
without
health
believe
that
care
the
concept of health care financing, as envisaged in the NHI, is
a pipe dream concocted by the ANC government. I wish to advise
them that the NHI is not just a unique South African concept.
The
World
concept
Health
and
Universal
Organisation
describes
health
it
coverage
as
is
is
actively
“universal
a
promoting
health
system
that
this
coverage”.
does
not
discriminate against any citizen of a country.
Let me quote from a presentation given by Dr Margaret Chan,
the Director-General of the WHO, on 2 April - three weeks ago
- in Mexico, where she was addressing a conference on this
issue.
Her presentation was entitled “More countries move towards
universal health coverage”. She said:
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This was the tipping point, when the world woke up to the
dangers of assuming that market forces, by themselves, will
solve social problems. They will not.
She went further to say:
This
world
will
never
become
a
fair
place
by
itself.
Fairness, especially in matters of health, comes only when
equity is an explicit policy objective. Universal coverage
is a clear pursuit of equity and social justice. Universal
coverage is also a powerful equaliser.
She continued by saying that:
... moving towards universal coverage is never easy, but
every country, at every level of development, and with any
level of resources, can take immediate and sustainable steps
in that direction.
We
have
reached
a
point
of
no
return
on
this
issue
of
universal coverage through NHI. On 22 March 2012 I announced
the names of NHI pilot districts on 10 sites. You remember
them in all the districts. As was announced by the Minister of
Finance, hon Pravin Gordhan, in Budget 2012, R1 billion has
been allocated over the Medium-Term Expenditure Framework for
purposes of supporting the pilots.
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When we launched the Green Paper in August
2011, we also
unveiled the timetable of what should happen in the first five
years of the NHI. On that day, I said that there were two
preconditions that the country had to meet for the successful
implementation of the NHI. The first precondition, as I said,
was that the quality of health care in the Public Service had
to improve tremendously and, hence, public health care needed
to be overhauled. This overhaul, I said, was nonnegotiable. I
also said that the second precondition was that pricing in the
private health sector had to be regulated. I am repeating that
today.
I
am
going
districts
to
to
spend
meet
three
various
days
in
each
stakeholders
of
and
the
10 pilot
discuss
these
pilots. Piloting means doing all the things that are needed to
meet these preconditions, especially the precondition dealing
with the quality of service in the Public Service. We believe
that within a five-year period, we will have covered the rest
of the 52 districts of the country and will be able to march
towards the 14-year period for implementing the NHI.
The success of
the NHI also depends on certain basics in
health care being adhered to. We need to understand that the
main reason for the existence of any health care delivery
system is to take care of the sick and the vulnerable. Health
care delivery systems do not exist to create millionaires at
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the expense of the health of our people. This tendency of
putting
business
before
health
–
yesterday
I
called
it
a
“tendercare system” because it is done in the form of tenders
– is no longer a health care system, but another form of
uncontrolled commercialism, against which the WHO has warned
us.
The manifestation of this tendency is the disappearance of
funds meant for the most basic tenets of health care, through
the
nonpayment
of
pharmaceutical
suppliers,
resulting
in
shortages of medicines, vaccines, dry dispensary and other
consumables. It also results in the nonpayment of laboratory
services and blood supply services; shortages of equipment and
devices for neonatal, perinatal and maternal services; and
nonmaintenance of health infrastructure and equipment. I have
agreed with the MECs that this must come to an end. To bring
this to an end, we have termed these issues “nonnegotiables”.
We
want
to
see
these
nonnegotiables
being
paid
for
every
month, and we shall monitor it on a monthly basis.
The Budget includes new allocations of R97,6 million for the
2012-13
financial
year,
R619,4 million
for
2013-14
and
R1,4 billion for 2014-15. The allocations were divided as set
out below.
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An
amount
of
PAGE: 15 of 429
R10 million
per
annum
is
provided
for
the
forensic laboratories to purchase equipment and appoint staff
to
address
backlogs.
We
recently
appointed
70 unemployed
graduates with degrees in chemistry, biochemistry and chemical
engineering in order to improve the performance and turnaround
times of the forensic laboratories.
Provision
has
been
made
for
amounts
of
R9 million,
R10,3 million and R11 million to establish a unit to monitor
and support provincial finances and improve audit outcomes. As
part of the support to the provinces to improve the audit
outcomes,
the
graduates
with
department
BCom
has
degrees
appointed
to
100 unemploymed
undergo
an
internship
programme.
The department is requesting this august House to support the
allocation for Vote No 16: Health, amounting to R27,6 billion
for the year 2012-13 and growing to R33,9 billion over the
MTEF in the 2014-15 financial year.
In conclusion, I wish to thank everybody who contributed to
the success of this department: the Deputy Minister, Dr Gwen
Ramokgopa, with whom we worked tirelessly to make sure that we
shared
Matsoso,
African
the
and
functions;
her
National
team;
Aids
the
director-general,
all
the
Council,
structures
which
Ms
from
helped
us
Precious
the
South
with
the
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national strategic plan; the office of the Deputy President
and
the
Deputy
President
himself
for
chairing
Sanac
and
guiding us in the fight against the scourge of HIV/Aids; the
health-related unions; our development partners; and everybody
else involved because, as you know, our slogan is that if we
work together, we will achieve more. I thank you. [Applause.]
Dr
M
B
GOQWANA:
present,
hon
Chairperson,
Deputy
Minister
Minister
and
and
other
other
Ministers
Deputy
Ministers
present, the director-general and her team; the MECs who are
here; I have noticed that the Board of Healthcare Funders is
here;
as
are
representatives
from
the
Council
for
Medical
Schemes, the Hospital Association of South Africa, the Health
Professions
Research
Council
Council
—
of
I
South
Africa
acknowledge
all
and
the
of
you,
SA
Medical
Members
of
Parliament, ladies and gentlemen.
I am not going to take a long time, but I want to start by
saying that at this second half of our term in Parliament, my
response
to
this
budget
speech
on
health
will
focus
on
oversight. We have been voting on funds for the Department of
Health, trusting that the deployees are going to transform the
department
so
that
it
improves
qualitative and quantitative manner.
life
expectancy
in
a
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I
always
ask
PAGE: 17 of 429
myself:
Who
sets
the
agenda
in
any
given
situation? In this instance, who sets the health agenda of
South Africa? I stand here without fear of contradiction and
say that, under the leadership of Dr Aaron Motsoaledi, it is
very clear that there is the passion and zeal to come up with
solutions to pressing health issues.
However, I must say with sadness that I have noted that this
passion and zeal have not filtered through to some of the
provinces ...
An HON MEMBER: Especially in the Eastern Cape!
Dr M B GOQWANA: ... and it is in the provinces where most of
the work is actually done.
We have observed that there is transformation in the health
sector, and the agenda is set by the citizens of the country.
We have seen drug prices tumbling,
to the delight of the
citizens. We have seen HIV and Aids patients with CD4 counts
of 350 getting antiretrovirals. We have seen TB patients with
HIV
also
getting
antiretrovirals.
We
have
seen
pregnant
females who are HIV positive getting antiretroviral drugs. As
a result of the above, the HIV infection for unborn babies has
decreased,
provinces.
especially
in
the
Gauteng
and
KwaZulu-Natal
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Cure rates for TB have improved, especially in the North West
province. Citizens are no longer reluctant to go to be tested
for HIV, and I know that there are more than 12 million or
13 million who have been tested in the past year.
The drive for male medical circumcision in KwaZulu-Natal has
improved
and
this
decreases
the
incidence
of
sexually
transmitted diseases, including HIV infections. We have seen
summits
with
all
the
stakeholders
being
convened
by
the
Department of Health, and we have seen, for the first time,
that
a
human
resources
plan
has
been
developed
by
the
department. We have seen the piloting of the National Health
Insurance in these areas.
All of the above reinforced our confidence in the ability of
the department to transform and respond to the needs of the
citizens
of
the
country.
Hence,
we
support
the
requested
budget. However, we have noticed that there are challenges
with regard to certain aspects of health provision. I want to
take this opportunity to give a synopsis of observations made
during our oversight visits and meetings with the department
and other stakeholders.
Our health policies, as good as they are, have a shortcoming
in the sense that they seem to be focusing mostly on the gap
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between the rich and the poor. They overlook the challenge of
the urban-rural divide, which I briefly want to talk about.
Rural health is a big challenge in our country. To elaborate
on
this,
I
will
give
some
statistics
that
illustrate
the
challenge at hand by comparing rural and urban provinces. If
you look at life expectancy at birth in Gauteng, you will find
that
it
is
60
years
of
age.
In
the
Western
Cape,
life
expectancy is 64. However, if you go to provinces like the
Eastern Cape, it is 55, and in the North West, it is 58.
[Interjections.] I mentioned Gauteng too!
Looking at the prevalence of disability, if you go to Gauteng
province, it is 3,3. If you go to the Western Cape, it is 5.
If you go to the Eastern Cape, it is 7,9. In the North West,
it is 8,5.
If you look at delivery in the facilities, you will find that
in Gauteng it is more than 87%. In the Western Cape, it is
about 98%. In the Eastern Cape, it is as low as 75%. In the
North West, it is 77%. [Interjections.]
The maternal mortality figure in Gauteng is 100. If you go to
the Eastern Cape, it goes up to 144. In the North West, it is
121.
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If you look at infant mortality, in Gauteng province it is
about 20. In the Western Cape, it is 27. If you go to the
Eastern Cape, it is 53, and if you go to the North West, it is
32.
This, for me, again reflects the relationship between survival
rates
and
the
number
of
health
workers
—
if
you
look
at
maternal and child survival statistics and you compare it with
the number of health workers. It is always said that the
number of health workers in a particular area reduces the
incidence
of
maternal
and
child
deaths.
We
are
not
even
looking at the quality of the health workers; just the number
of health workers changes the situation.
The
rural
provinces
have
fewer
health
professionals
per
population numbers compared to the urban provinces. If you
look
at
the
number
of
doctors
per
100 000
people
in
the
communities in Limpopo, which is 90% rural, there are only 17
doctors per 100 000 in the communities. In the Western Cape,
you have about 135 doctors. If you go to the Eastern Cape, you
find that there are 31 doctors per 100 000 in the communities.
If you go to Gauteng, you find that there are 102 doctors per
100 000. All of this shows that there is a problem as far as
the rural-urban divide is concerned. Therefore I am talking
about rural health.
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We have observed that the private health care sector is not
assisting in this regard. In Limpopo we have a population of
five million, of
which 90% is rural. They have only five
private hospitals. I am not going to go into detail, but all I
want to say is that there is not much that is being done by
the private sector as far as primary health care is concerned.
However,
I
must
say
that
there
is
a
primary
health
care
television programme that I always enjoy. It is sponsored by
the
private
health
care
sector
and
is
run
by
Dr
Victor
Ramathisele. It always runs on a Saturday. I think we need to
applaud this primary health care initiative run by the private
sector. [Applause.]
If what we are talking about with regard to the private health
care sector, namely going to these rural provinces, does not
make good business sense, we could think of public-private
partnerships.
If,
as
a
country,
we
are
to
meet
the
health
Millennium
Development Goals or we are to get the universal coverage that
we want, we definitely need to look at rural health care. In
addition, we need to make sure that human resources and even
our budget must be skewed towards rural health.
EPE 24 APRIL 2012
The
oversight
PAGE: 22 of 429
work
we
do
covers
the
whole
health
sector,
private and public, but the point that I want to raise here is
that there always seems to be an element of paranoia in the
relationship
between
the
private
and
public
health
care
industries. I think the vision is the same for all of us.
Therefore we need to make sure that we find a way of ensuring
that this divide is done away with, so that we can have good
health indicators.
South Africa has other stakeholders in the health sector. I
always mention this fact. In South Africa, 70% of our people
are still going to traditional healers and I do not think they
can be ignored. Whether they are doing the right thing or the
wrong thing, for us to be able to meet what we want to meet,
we
need
to
make
sure
that
we
another. We
even
have to make
engage
them
in
one
way
or
sure that there are proper
regulations that are going to deal with this matter. This is
something that we have found during our oversight work.
We have observed that most of our hospitals, be they private
or public, deal with acute emergencies. We do not have a
situation where we have subacute and chronic hospitals, yet
they are cheaper and easier to run. They do not need a lot of
staff. We need to look at finding a way of doing that.
EPE 24 APRIL 2012
PAGE: 23 of 429
If we are talking about a situation where we want to increase
the
life
certain
expectancy
stage
we
of
are
our
going
citizens,
to
then
need
it
means
geriatric
at
care.
a
If
geriatric care is going to be needed, we need these subacute
and chronic hospitals in both the public and private sectors.
The challenges I have highlighted here are not insurmountable.
I
am
confident
Dr
Motsoaledi,
leading
the
Department
of
Health, and his team will come up with appropriate solutions
to rural health challenges and the other challenges facing
South Africa that I have spoken about.
I recommend that we pass the health budget, as the department
has
shown
commitment
to
transforming
health
services
in
response to the agenda of the citizens of South Africa. I
thank you. [Applause.]
Mof S P KOPANE: Modulasetulo ya kgabane le Maloko a Palamente
a hlomphehang, ntlafatso ya bophelo bo botle ke e nngwe ya
dintho tse ntle tse tla etsang hore re lokise masalla a
kgethollo. Kgethollo e ile ya qhelela batho ba rona ba batsho
ka thoko ditshebeletsong tsa bophelo bo botle. Ba ile ba
iphumana ba tlameha ho tiisetsa le ho mamella mahlonoko a
kotelo le ho se natswe. Kahoo mmuso o tlameha ho etsa
makgobonthithi wohle hore ho be le tekano le boleng
ditshebeletsong tsa bophelo bo botle ho Maafrika Borwa wohle
EPE 24 APRIL 2012
PAGE: 24 of 429
ho sa natswe hore mang ke mang, haholoholo batho ba bileng
mahlatsipa a kgethollo. (Translation of Sesotho paragraph
follows.)
[Mrs S P KOPANE: Hon chairperson and Members of Parliament,
the improvement of the health system is one of the decent
things that will address backlogs that were caused by
apartheid. Black people had been disadvantaged in the past in
terms of health services due to discrimination. They were
obliged to accept the bitter fact that they were not
considered as people. As a result, government should come up
with initiatives to bring equality and quality in health care
services for all South Africans, irrespective of who they are,
especially those who were previously disadvantaged.]
Every South African deserves quality health care because, as
we all know, a sick nation can never be a successful nation.
The provision of accessible, affordable and quality medical
care to our people is not only a right, but a moral and
economic imperative. Therefore it is the responsibility of the
House, together with the Minister of Health and the Department
of Health, to make sure that we are provided with a plan that
is going to fix our public health care system and provide
every South African with quality health care.
EPE 24 APRIL 2012
PAGE: 25 of 429
Let us face the fact, hon members, that the system we have now
is failing our people. We are constantly confronted by its
failures on a daily basis. When I visited the Marantha Clinic
in Brandfort in the Free State last month, I saw nurses and
doctors dutifully trying to help the community of Majwemasweu,
even though there was no water at the clinic. I was struck and
inspired by the commitment and determination of the medical
professionals to help the people of the community, even in the
face of immense challenges. However, the nurses told me they
could not help everyone because there was no water.
The workers there have done their utmost to make the best of
their circumstances, but we have not kept our side of the
bargain. As hon members, we should be ashamed of what happened
at Marantha. Needless to say, there are countless other
clinics and communities across the country, just like the
Marantha Clinic, that we have left behind and forgotten about.
So, let us come to one of the critical questions of our time:
What are we going to do to address the situation? I have no
doubt that hon Minister Motsoaledi, together with his team
from the Department of Health, has worked tirelessly to find
the solution.
EPE 24 APRIL 2012
PAGE: 26 of 429
I have the utmost respect for Minister Motsoaledi. Minister, I
respect your commitment and work ethic, and I fully understand
that
you
have
approached
this
problem
with
the
best
of
intentions. However, with due respect, the hon Minister and
the
Department
of
Health
have
used
the
wrong
approach
in
dealing with this issue.
Chairperson, let me state it clearly that the National Health
Insurance is going to be a complete disaster for the very
people who hope to benefit from it. I say this because the NHI
will be an enormous drain on the fiscus. Nobody knows what the
actual cost of the NHI will be over a long period.
Hon Minister, I am sure you are going to give the House some
assurances today regarding an accurate costing of NHI. Could
you please tell this House how much it is going to cost the
taxpayer?
What
we
do
know
is
that
it
is
going
to
drain
resources away from service delivery objectives. The poor will
pay for the few available NHI resources, and that is a fact.
Secondly, the NHI will create an inefficient and bureaucratic
health superstructure. It is highly unlikely that a bigger
bureaucracy will solve our problems in health care.
EPE 24 APRIL 2012
PAGE: 27 of 429
Thirdly, the NHI will not fix the real problem in our system,
which is the provision of low-quality health care. Instead,
the
Green
financing.
Paper
As
on
we
the
all
NHI
know,
focuses
we
on
accessibility
already
have
and
universal
accessibility and enough funding to run a good public health
care system. The problem is that the quality produced by our
system at the moment is not good enough. Nothing in the NHI
proposal will solve the quality problem.
In the fourth place, the NHI does not adequately address the
matter
of
accountability
or
management
structures.
The
ministerial task team report on health care funding states
that:
No
part
of
the
health
care
system
is
held
properly
accountable for the poor health outcomes or poor service
delivery.
While the Green Paper calls for the establishment of an office
of Health Standards Compliance, its members will be appointed
by and answerable to the Minister of Health. With such a setup this office will not really and truly be independent. This
will
make
it
vulnerable
to
political
interference,
not
EPE 24 APRIL 2012
PAGE: 28 of 429
necessarily by the current Minister but from future Ministers
who
might
not
have
the
same
good
intentions
as
you,
hon
Minister.
In the fifth place we lack the human resources to implement
the
NHI.
We
need
to
triple
the
27 000
doctors
that
we
currently have in our country for the NHI to be effective.
However, we train only enough doctors each year to keep pace
with the number of doctors who retire or emigrate. The state
is unable to train the necessary number of doctors or nurses
in our country. Hon members, let us be honest about this
issue: The numbers do not add up to what we are looking for.
Finally, throwing money at a problem does not always solve it.
A good health care system requires a minimum threshold of
funding to be effective. However, greater expenditure beyond
that
threshold
does
not
guarantee
better
results.
Other
factors, such as accountability, governance and functionality,
determine the quality of health care.
What does the DA suggest we do about our health care system? I
hope
this
Parliament
is
the
today.
intention
We
have
of
all
to
of
focus
us
as
on
Members
fixing
of
the
EPE 24 APRIL 2012
accountability,
PAGE: 29 of 429
governance
and
functionality
of
the
system
that we already have. To attempt to build a complex, highly
bureaucratic superstructure on top of a broken system is a
recipe for disaster. Instead, we must focus on fixing the
system we already have.
We need to create a national framework with national targets
and minimum norms and standards for health care providers and
effective oversight for both private and public health care
sectors. We need to strengthen the capacity of the provincial
health departments for better delivery by giving them more
freedom in policy-making and holding them to account, not only
for compliance, but also for health outcomes. The Western Cape
has shown that this can be a success – just look at the worldclass
hospital
the
Western
Cape
government
has
built
in
Khayelitsha.
We
need
to
responsibility
capacitate
health
for
performance.
their
care
providers
Public
to
hospitals
take
and
clinics need increased autonomy and accountability and less
micromanagement.
EPE 24 APRIL 2012
PAGE: 30 of 429
We need to create an independent health care oversight body
with the powers to investigate complaints of poor health care
services and hold those to account. This should be coupled
with a quality-rating system applied to all private and public
health care providers.
We need to promote public-private partnerships to increase the
quality
of
health
private
companies
care
to
in
run
the
public
public
sector
hospitals
by
and
allowing
by
making
private resources available to the public sector. We also need
to work aggressively to reduce the medical skills shortage by
promoting
increasing
the
establishment
mentoring
and
of
private
apprenticeships
medical
and
schools,
retaining
the
number of doctors and nurses in our country.
Spending on these programmes will benefit all South Africans
more through improved health care, rather than spending on a
bloated NHI system, which will never benefit all. The time has
come for all of us to start thinking about what is practical
and
possible,
resources.
given
our
constraints
in
human
and
other
EPE 24 APRIL 2012
PAGE: 31 of 429
Re le mokgatlo wa DA re dumela ka hohlehohle hore bokamoso ba
naha ya rona bo itshetlehile hodima diqeto tse nkwang ke rona
batho ba etsang molao. Ho hlakile hore re na le matla a ho
phahamisa dintle le ditoro tsa Maafrika Borwa le ditakatso tsa
Ntate Mandela tsa Afrika Borwa ya setjhaba se le seng se nang
le bokamoso bo le bong. Ke a leboha [Mahofi.] (Translation of
Sesotho paragraph follows.)
[As the DA, we fully believe that the future of our country
depends on decisions that we take as lawmakers. It is evident
that we have the power to uplift the morals and the vision of
South Africans as well as President Nelson Mandela’s wish of a
united South African nation that has one vision. Thank you
[Applause.]]
Mr
D
A
KGANARE:
Hon
Chairperson,
let
me
acknowledge
the
presence of everybody that Dr Goqwana already acknowledged. A
budget
is
a
resource
which
should
be
utilised
by
the
department to ensure that its plans, strategies and objectives
are
achieved.
These
intentions
can
only
be
assessed
and
evaluated by looking at and appreciating its outcomes.
When a budget is debated, we hear the intentions, look at the
past outcomes and decide whether to support the Budget Vote or
EPE 24 APRIL 2012
PAGE: 32 of 429
not. We also make suggestions concerning the implementation of
and the allocation to programmes. Hon Minister, there are a
lot of visible and encouraging interventions from your side,
but unfortunately the implementation of health services occurs
at provincial and municipal level.
Whether we achieve the Millennium Development Goals or not
depends on what happens at hospitals, clinics and communities.
There are people who continuously argue that although South
Africa
spends
a
system
provides
significant
poor
value
amount
for
on
health,
money.
This
its
health
statement
is
premised on the fact that South Africa spends 8,6% of its
Gross Domestic Product on health services, roughly the same as
Brazil, England and Italy, and they all have better health
outcomes.
This
argument
is
disingenuous
because
these
countries have different histories from ours and never had to
deal with the legacy of apartheid like us.
Cope’s assessment of whether the department is dysfunctional
or not depends on whether patients and staff feel safe and
welcomed at our health facilities. We can be safe if the
clinics and hospitals are clean, have adequate medication and
laboratory services thats provide feedback to doctors on time,
and
there
services.
is
equipment
to
provide
quality
health
care
EPE 24 APRIL 2012
Chairperson,
findings
PAGE: 33 of 429
the
last
Auditor-General
year
concerning
made
some
financial
disconcerting
management
in
the
provinces. Let me list just a few of those that Cope feels
demand urgent attention, and I quote:
Firstly, provincial departments of health across the country
are
breaking
the
rules
and
regulations
when
awarding
multimillion rand tenders; secondly, it is a contravention
of
the
Construction
Industry
Development
Board
Act
to
appoint a contractor that is not registered according to the
correct grading.
Despite
this,
health
departments
from
various
provinces
awarded tenders to the value of R876,8 million to contractors
with
no
grade
or
with
lower
grades.
In
Soweto,
the
construction of Jabulani Hospital began in 2003 and dragged on
until
2010,
at
a
cost
of
R537
million,
instead
of
R256
million.
These things, hon members, happened because some government
officials meddled in the awarding of tenders. In most cases
the supply chain management, SCM, process is compromised so
that the anointed bidder is awarded the tender by hook or by
crook.
EPE 24 APRIL 2012
PAGE: 34 of 429
In this instance hon Minister, I urge you to discuss the
Lejweleputswa District SCM with your colleagues in the Free
State. The suppliers in that area, who approached me, told me
that
all
the
staff
members
in
the
SCM
knew
who
managed
corruption and how it was managed.
They believe that senior management, which is aware of what is
happening in the district, is either part of the corruption or
those involved in the corruption are doing something. They are
doing something that might be compromising senior management;
hence they are intimidating or harassing any staff member who
raises concerns about how corruption is being nicely managed,
more so than the institution.
Hon Chairperson, whenever corruption is exposed, the ANC-led
government will tell us that heads are going to roll, but
every time I just see very big heads nodding. [Laughter.] Hon
members, no one is corrupt by accident, hence I urge you and
your
colleagues
to
make
an
example
of
the
Lejweleputswa
District’s SCM.
Corruption
affects
the
poorest
of
the
poor
more
than
the
affluent. The affluent can buy any service, but the poor will
not be able to do that. It directly affects the provision of
quality health care that can be directly linked to women and
children’s mortality rates.
EPE 24 APRIL 2012
Hon
Minister,
PAGE: 35 of 429
millions
of
newborn
children
and
mothers
continue to die needlessly. Earlier this year, Carolyn Miles,
the
president
and
chief
executive
officer
of
Save
the
Children, said that although there has been a reduction in the
mortality rate of under-fives, the deaths of newborns were
still a stubborn part of the problem.
She also revealed that over 40% of children who die before
they reach the age of five years will die within the first
month after birth. Babies are dying of common diseases such as
pneumonia,
diarrhoea,
preterm
complications
and
asphyxia.
Surely, hon Minister, these are not things children should be
dying of.
If Malawi, as poor as it is, succeeded in achieving a 29%
decline in newborn deaths since 2009 and is on track to meet
the MDGs, we can surely learn a thing or two from them.
Hon Minister, one of the main strategies of reducing maternal
deaths is the provision of contraceptives, on the one hand. On
the
other
hand,
one
of
the
causes
of
maternal
deaths
is
illegal abortions. Whilst on this subject of abortion, you
might enlighten me as to whether there are other countries
that
advertise
death
to
desperate
people
like
we
do.
Newspapers and streetlight poles in our country are plastered
with adverts for abortion. At the same time there are these
EPE 24 APRIL 2012
PAGE: 36 of 429
people who advertise cures for Aids and cancer, and also talk
about helping people to win the lotto in the same pamphlet.
They continue to operate in our country. I want to check if
there is any law that prohibits this type of practice. If not,
can
we
look
into
formulating
a
law
will
prohibit
these
activities?
Minister, I am not going to talk too much about the NHI. As
Cope, we support access to universal health care, but the
issue should be clarified because the politicisation of the
concept of a NHI is really a problem.
The
private
sector,
which
projected
the
NHI
as
the
nationalisation of health, is at the forefront of challenging
the NHI as projected. I think it is really up to us to clarify
whether it is a financing model or a ... [Interjections.]
Thank you. [Time expired.] [Applause.]
Mrs
H
S
MSWELI:
Hon
Chairperson,
health
remains
a
key
portfolio in our growing democracy, with its issues affecting
the entire socioeconomic spectrum. It is, therefore, of utmost
importance that the Minister achieves maximum impact with the
limited allocation of resources received from the Treasury.
The IFP believes that the shortage of hospitals and clinics in
rural areas means that there is a problem in foundational and
EPE 24 APRIL 2012
PAGE: 37 of 429
mandatory areas. That is where the department should focus its
limited
resources
and
to
which
it
should
pay
greater
attention.
There is a dire need for more hospitals and clinics in rural
areas and an even more pressing need for qualified doctors and
nursing
staff
in
our
existing
care
facilities.
Since
this
problem has been acknowledged and is currently being addressed
by the department, the IFP would urge greater attention to be
paid
to
the
issue.
This
is
because
it
is
of
paramount
importance that we have able human capital capacity on the
ground if we are to deliver adequate and competent health care
services to our citizens.
We must also ensure that our rural hospitals and clinics are
adequately
resourced
with
the
necessary
consumable supplies, in order to avoid
sanitation
and
unnecessary adverse
health issues arising in our care facilities as a result of
unhygienic conditions.
With
regard
to
training
practitioners,
we
allocated
develop
to
establishment
of
welcome
a
the
nursing
national
institutions
for
medical
allocation
R1,2
billion
homes,
institute
of
colleges
that
will
and
the
provide
leadership training in health to our health care personnel.
EPE 24 APRIL 2012
PAGE: 38 of 429
However, the continuing exodus of newly qualified doctors to
foreign countries remains a most worrisome trend. What is the
department doing to ensure that our health care professionals
stay in South Africa? Why do we make it so difficult for our
young, newly qualified doctors to obtain medical internships
at
our
hospitals?
These
are
all
questions
that
must
be
addressed and workable solutions must be found.
Women and children’s health improvement and the reduction of
the infant and child mortality rate, although less than the
previous years, require our continued and renewed effort. In
addition, with levels of violence against women and children
remaining alarmingly high in South Africa, specifically with
regard to rape, sexual abuse and domestic violence, we need to
ensure
that
all
our
medical
institutions
are
adequately
capacitated in order to render the necessary assistance to
victims of these abuses, in both a timeous and professional
manner.
This
is
particularly
necessary
yet
lacking
in
our
rural areas.
The HIV/Aids levels need to be greatly reduced. It remains a
scourge in both our country and on our continent.
In conclusion, the IFP urges the Minister and the department
to leave no stone unturned in pursuing excellence in delivery
that is optimal for all the people of our country and to
EPE 24 APRIL 2012
continue
to
PAGE: 39 of 429
pursue
an
outcomes-based
approach
to
service
delivery, which is their solemn obligation and duty. We fully
support the Budget Vote. Thank you. [Applause.]
Ms M C DUBE: Hon Chairperson, hon Minister and members of the
executive present, hon Deputy Minister, hon MECs, members of
the
department
and
distinguished
guests,
it
is
a
great
privilege for me to stand at this podium once more. By the
way, the ANC supports the budget.
Now, and even more so in the future, the pursuit of a better
health status in our society will be determined, to a large
extent, by how effectively we are able to prevent and control
noncommunicable diseases such as diseases of the heart and
lungs, cancer, diabetes and mental disorders.
Last
year,
in
your
Budget
Vote
speech,
hon
Minister,
you
emphasised that these diseases were increasing, that you would
be
paying
greater
attention
to
addressing
the
main
risk
factors, as well as increasing screening and aiming for better
control of chronic conditions. We see you and your department
indeed making progress in this regard.
The additional actions that are outlined in your plan this
year are absolutely in line with the recommendations arising
from the Summit on Non-Communicable Diseases that was held in
EPE 24 APRIL 2012
PAGE: 40 of 429
September last year. The General Council of the United Nations
also held a meeting on noncommunicable diseases last year.
A healthy lifestyle combines two main approaches. The first is
to facilitate better health through government interventions
that
support
population
health
and
the
second
is
getting
people themselves to change the unhealthy aspects of their
lives and embark on healthy practices. More work must indeed
be done to strengthen both of these levels.
Last year, hon Minister, you promised that you would bring out
regulations for the reduction of salt in processed foods, as
salt is a major contributor to hypertension and high blood
pressure. It affects, on average, 31% of men and 36% of women
in
South
promise,
Africa.
you
have
We
understand
embarked
on
that
since
wider
you
made
this
consultations,
both
locally and internationally, regarding reasonable targets and
time frames for achieving them. We are encouraged by the work
done thus far, although there is still a long way to go to
achieve
the
goal
of
reducing
noncommunicable
diseases,
morbidity and mortality.
Another risk factor inherent in noncommunicable diseases, but
also
communicable
health
and
diseases
injuries,
is
like
maternal
alcohol.
Hon
disorders,
Minister,
we
child
are
encouraged by your commitment to fighting this serious issue
EPE 24 APRIL 2012
PAGE: 41 of 429
and we are even more encouraged that you will be bringing out
legislation on the advertising and marketing of alcohol. This
is a great step indeed.
The evidence that is out there on what alcohol does to our
society is very clear and all efforts must be employed to
fight this disaster. Research shows that alcohol is the third—
highest global risk factor for disability and it shortens our
lifespan.
In South Africa, alcohol accounts for around 130 deaths per
day.
According
to
the
WHO,
we
fall
into
the
category
of
countries that have the highest consumption of alcohol. One
study has put us as the tenth highest country for alcohol
consumption in the world. In the past year, research has shown
that
we
fall
into
the
second—highest
category
of
the
WHO
countries that have harmful patterns of drinking and heavy
episodic
drinking
with
over
30%
for
both
male
and
female
drinkers.
We also note from the survey conducted in 2008 by the Medical
Research Council on youth risk behaviour that 34% of males and
24% of females in Grade 8 to Grade 11 are binge drinkers. This
is
different
from
the
29%
for
males
and
18%
for
females
figures discovered in 2002. Hon Minister, if we neglect to
take heed of all this information and do not act on it, we
EPE 24 APRIL 2012
PAGE: 42 of 429
surely would be failing in our duties as the custodians of and
activists for health, and especially as government.
We note with concern that there are those who are opposed to
your call
for banning alcohol advertising and sponsorship.
They argue that such action will not reduce alcohol-related
harm. Hon Minister, we support you in this endeavour and we
beg to differ with them on this matter. Research indicates
that alcohol advertising and sponsorship bring about positive
beliefs about drinking, and young people are encouraged to
drink alcohol sooner and in greater quantities than they would
otherwise. These are reasons enough for us to act. We must try
to shift away from advertising harmful products, and we look
forward to working with you.
Our success and great achievements with regard to restricting
tobacco use in this country are well documented and we should
be proud of that. This reminds me of all those sceptics who
lamented and argued so strongly that the banning of tobacco
advertising would result in massive job losses and revenue for
this country. It is now clear, hon Minister and the House,
that
these
arguments
and
claims
were
futile
and
are
now
history.
If I may, I want to take a step back to the topic of a healthy
lifestyle and reiterate that we need a serious change in the
EPE 24 APRIL 2012
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attitudes of both government and citizens. Eating healthy food
and exercising is a goal that we would like every person in
South Africa to take very seriously.
We must do our utmost, through partnerships, to make healthier
food more available and affordable, especially to poor people.
We should facilitate more physical activities for children at
school, but I also want to challenge our communities and every
person in South Africa to start taking a healthy lifestyle
more seriously.
We
have
serious
behaviours
that
we
need
to
change
as
a
society, so that our health and that of our children can
improve. These behaviours include eating junk food or fast
food, lack of exercise, engaging in unsafe sex, excessive and
irresponsible use of alcohol and smoking.
We must bring back and instil the culture that our parents had
in the past, such as having small vegetable gardens at our
homes and schools and walking to school rather than being
driven there. We must distance ourselves from smoking and the
use of alcohol. Our grandparents and parents were stronger and
healthier because of these practices. [Time expired.]
The DEPUTY MINISTER OF HEALTH: Hon Chairperson, Minister of
Health, Dr Aaron Motsoaledi, Ministers and Deputy Ministers
EPE 24 APRIL 2012
present,
PAGE: 44 of 429
colleagues,
MECs,
the
hon
Chairperson
of
the
Portfolio Committee on Health, Dr Monwabisi Gogwana, members
of the Committee, hon members of the House, the DirectorGeneral, management at national and provincial levels, leaders
of various statutory bodies, health unions and other healthrelated organisations, a special acknowledgement of Mme Yvonne
Chaka
Chaka
-
morwedi
wa
Machaka
[daughter
of
Machaka],
distinguished guests, ladies and gentlemen, it is my privilege
to
address
the
honourable
House
during
the
debate
on
the
Health Budget Vote for the financial year 2012-13 within the
medium-term framework.
This debate takes place as we celebrate the centenary of our
liberation movement, the ANC, which represents the unstoppable
determination of millions of peace-loving people of our nation
and the world to usher in justice and democracy and a better
life for all in our country.
In this month of April we also recall the hanging of Solomon
Kalushi Mahlangu, the death of Mita Ngobeni and many other
children and young people, who paid the ultimate price for the
freedom we are enjoying today. For them a long and healthy
life was not to be because of the apartheid regime.
Going
down
this
painful
but
inspirational
legacy
of
the
triumph of humanity in our young democracy, I invite you to
EPE 24 APRIL 2012
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join me in paying tribute to all progressive health workers,
who, individually and through organisations, were part of the
liberation struggle in various ways.
Many
remained
true
to
their
professional
ethic
and
human
conscience as they provided essential health services to the
oppressed
under
difficult
circumstances.
They
cared
for
survivors of the injuries inflicted during the mass protests
and
refused
to
trade
their
scientific
knowledge
for
human
healing for activities involving biological murder — or what
is called biological warfare.
We pay tribute to the then aspirant and practising health
workers
who
understood
that
peace,
justice,
freedom
and
democracy were also the foundation for, amongst other things,
reducing the high levels of severe malnutrition, of which our
children were dying. Today, they are no longer dying of this.
We have succeeded in reducing the high levels of trauma as a
result
of
violence
and
shooting.
We
are
also
winning
the
battle against the ravages of tuberculosis, which first begins
in unhealthy conditions in the mining and farming sectors.
We salute, amongst others, Dr Xuma, Dr Naicker and Dr Dadoo,
who provided leadership under what was referred to as the
Three Doctors’ Pact, which unified our people across racial
EPE 24 APRIL 2012
PAGE: 46 of 429
divides and paved the way for the adoption of the Freedom
Charter, which pronounced on the rights of all South Africans.
We pay tribute to Steve Bantu Biko and many aspirant health
workers who suffered and died as human rights activists.
We
honour
Albertina
Mrs
Ruth
Sisulu
Bowen,
and
Mrs
who
is
Rosina
now
91
years
Mphahlele,
who
old,
have
Mrs
since
passed on. In a disciplined and tenacious manner they nursed
our
people
with
distinction
and
with
great
care
and
compassion, despite the apartheid system.
We remember Dr Abu-Baker Asvat and Dr Ribeiro and his dear
wife, who were murdered at their consulting rooms and homes
respectively, within communities they served and for whom they
were
prepared
to
do
whatever
it
took
to
improve
their
wellbeing.
As we build a developmental state today that has as one of its
outcomes a vision for a long and healthy life for all, we
remain
inspired
others
made
to
by
the
change
contributions
the
that
underlying
these
and
sociopolitical
many
and
economic conditions that were a danger to our nation. We will
commit ourselves with determination, and invite all within the
health
system
to
do
so,
as
we
recognise
that
the
constitutionally protected health and reproductive rights are
EPE 24 APRIL 2012
PAGE: 47 of 429
not yet accessible to all South Africans, especially in rural
provinces.
Dr Gogwana, we sadly acknowledge that the interventions in the
health departments of the provinces of Limpopo and Gauteng by
Cabinet,
through
Constitution,
the
were
provisions
indeed
of
necessary
section
to
protect
100
of
the
the
health
system for the benefit of mainly the poor in these provinces.
We would have no choice when it comes to other health care
services. We also wish to call on all stakeholders to work
with us to defend the progress that we have made today.
We should continue to construct a society that is ready at all
times,
especially
with
regard
to
the
health
system,
to
democratically and in a disciplined manner intervene without
fear or favour to combat the many ills and inexcusable actions
or
inactions
of
inefficiency,
incompetence,
fraud
and
corruption that put the heroes and heroines of our liberation
struggle
to
shame
because
they
threaten
the
health
and
wellbeing of our people. We believe that the introduction of
the Office of Health Standards Compliance, which oversees the
offices
of
the
ombudsperson,
norms
and
standards
and
the
inspectorate, will certainly be valuable in guarding against
these ills.
EPE 24 APRIL 2012
PAGE: 48 of 429
We want to thank the provincial leadership under the MECs, the
premiers of these provinces and the heads of departments, who
have worked with us in a very constructive manner to deal with
many of these ills.
Some of these ills were inherited and some in fact happened
whilst these HODs were in office. We would also like to call
on those who are involved in these ills to be subjected to
disciplinary
action.
You
can
discipline
someone
for
incompetence as provision is made for this. We can discipline
someone for fraud and corruption. Actually, we must do that to
protect the interests of our people and the institutions for
which many have struggled and died.
We
must
also
guard
against
shallow
and
narrow
political
opportunism and the prejudices that underlie racism. For now
I’ll
call
it
“prejudices”
when
some
tend
to
dismiss
the
historical reality referred to by hon Kganare.
Indeed, there are provinces — Gauteng and the Western Cape, in
particular — that benefited from the inequities of the past.
Even
previously,
the
resources
of
the
Cape
province
were
mainly invested in the Western Cape — around Cape Town, in
particular — to the detriment of our people throughout the
province. [Applause.]
EPE 24 APRIL 2012
PAGE: 49 of 429
We acknowledge the statement that was made in an interview and
referred to our people, who are accessing services available
in their country, as refugees. We really ask the DA party and
its leader to have the integrity to formally apologise to the
nation and to the people of the Eastern Cape, in particular.
[Applause.]
[Interjections.]
Yes,
I’m
aware
that
you
apologised, but it was a “by the way”. The interview was not
called specifically for that. [Interjections.]
Let me also acknowledge that it is important and it is our
common goal to have a common vision, work together and redress
imbalances. We will remember that South Africans have a right
to access services throughout the country. We are all South
Africans before we belong or live in one or the other city or
province.
We
shouldn’t
reinforce
the
past,
when
people’s
birthright were not even acknowledged in the country of their
birth.
We agree with hon Kganare that the context of a country is
important. In this case,
hon Kganare,
in terms of the 8%
expenditure that you referred to, only 3% of this expenditure
is in the public sector to look after the majority of the
population, whilst around 5% is in the private sector.
Over the next three days here in Cape Town, the Department of
Health, Department of Science and Technology, as well as the
EPE 24 APRIL 2012
PAGE: 50 of 429
Council of Health Research and Development, are hosting the
Global Forum for Health Research conference under the theme
“Beyond
aid
—
research
and
innovation
as
key
drivers
for
equity and development”. This issue of equity and development
is not unique to South Africa. It’s a worldwide phenomenon,
which we must work together to deal with.
We have begun to utilise evidence-based research to inform our
policies and programmes. Already we are seeing significant
progress and, amongst other things, the reduction of motherto-child transmission of HIV by more than 50%, as referred to
by the Minister.
We
have
also
invested
in
convening
various
summits
with
experts, health workers and other stakeholders in the areas of
noncommunicable diseases, mental health, breastfeeding and the
NHI.
Indeed, hon Dube, the regulations on salt content control for
industry are ready for the Minister’s consideration and will
be signed within the next few months. [Applause.] Beyond these
regulations,
understand
together,
the
we
vegetables
must
that
empower
we
eat
our
contain
people
to
naturally
occurring salt. Over time, our tongues will get used to those
levels of salt. Currently, we are using very large quantities
of salt, and many of us pour raw salt onto our food even
EPE 24 APRIL 2012
PAGE: 51 of 429
before we taste it. We want South Africans to live long and
healthy lives.
The NHI system is a catalytic programme to ensure equity in
and
sustainability
of
the
health
system.
We
are
very
encouraged that all provinces, including the Western Cape,
have agreed to participate in pilot projects. We have no doubt
that your participation in these pilot projects will prove
that what we have presented to you is a solution for the
country; a solution that will work in the Western Cape and
everywhere else throughout our country.
Led by Prof Mayosi and the National Health Research Committee,
we have began to align scientific research and the innovation
capacity
available
solutions
to
in
reduce
our
the
country
burden
of
and
globally
diseases
and
to
find
premature
deaths, as well as to strengthen the quality, efficiency and
effectiveness of the health care system.
The work that Dr Bomela and the Ministerial Advisory Committee
on
Health
Technology
are
doing
will
be
enhanced
by
the
enactment and the establishment of the South African Health
Products
Regulatory
Agency
later
this
year.
Already,
the
National Health Council has approved the essential equipment
list. This will help us to know what the minimum amount of
equipment
is
that
should
be
available
in
every
facility
EPE 24 APRIL 2012
PAGE: 52 of 429
throughout the country in order to ensure that our health
workers have these tools and that our patients receive highquality services.
We
can
also
leverage
technology
better
in
an
integrated
approach for the benefit of health workers and the public. We
have already presented a draft of the e-Health Strategy to the
National
Health
Council.
The
strategy
will
incorporate
information and communication technologies for health, such as
telemedicine,
mobile
health
technologies
and
other
technologies.
We want to thank Prof William Pick, who has just retired, for
his
valuable
contribution
made
as
the
chairperson
of
the
Council of Medical Schemes, which we will leverage in terms of
experience in protecting consumers, as we construct and pilot
the
NHI
experience
scheme
of
throughout
regulating
the
the
country
medical
aid
this
year.
schemes
in
The
the
industry will indeed be very valuable.
We appreciate, and we will certainly support, the Minister’s
efforts to visit each of the 10 NHI pilot sites and districts,
in order to meet with stakeholders and the public, as well as
the private sector. However, we also call on you to support
the Minister.
EPE 24 APRIL 2012
My
office
will
PAGE: 53 of 429
also
continue
to
visit
other
ensure that management remains effective,
districts
to
that it improves
accordingly and that the quality and impact of health services
continue to improve significantly.
Indeed, Dr Goqwana, these changes must be visible. Our audits
have indicated where the challenges are and, as the Minister
has said, management teams have already been deployed from the
national office to ensure that they work with provinces to
deal with the gaps that have been found.
During the visits that we paid to Namaqualand, Amathole and
Gariep
Districts
respectively,
we
were
already
able
to
interact with provincial and local government colleagues as
well as stakeholders in the area. Indeed, we must share the
excitement of the progress that we see in terms of public
health being transformed locally. I want to thank everybody
and
state
that
we
support
the
Budget
Vote.
Thank
you.
[Applause.]
Adv A D ALBERTS: Hon Minister, last year I commended you and
your department for taking health care in South Africa in the
right direction through your vision for drastically improving
the quality of our health. Clearly, as we sit here today, a
lot of work still remains to be done.
EPE 24 APRIL 2012
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The press is filled with horror stories about public medical
malpractice and the state of disrepair of hospital equipment.
The FF Plus has its own stories to tell, as members of the
public approach us to intervene when they are fighting an
inaccessible and unsympathetic public health care system. Here
is an example.
Mej Candice Midgley, ’n jong vrou met twee kinders, is met
kanker gediagnoseer, maar het maande gesukkel om toegang tot
behandeling te kry. Van die verskonings is dat die mediese
apparate nie herstel word nie en dus nie gebruik kan word nie
omdat die regering nie uitstaande rekeninge vereffen het nie.
Daar is ook die persberig van nog ’n ma wat gesterf het omdat
die krities-nodige mediese apparaat nie gewerk het nie weens
’n gebrek aan onderhoud. (Translation of Afrikaans paragraphs
follows.)
[Miss Candice Midgley, a young woman with two children, had
been diagnosed with cancer, but struggled for months to get
access to treatment. Some of the excuses are that medical
equipment is in a state of disrepair and thus cannot be used
since
the
accounts.
government
has
neglected
to
settle
outstanding
EPE 24 APRIL 2012
PAGE: 55 of 429
The media also reported about another mother who died because
the much-needed medical equipment was not functioning due to a
lack of maintenance.]
A domestic worker’s toddler dies because the ambulance took
hours to arrive after the event. Minister, I can recount many
stories like this and they cut across all race groups. The
poor state of public health care affects all of the poor.
Against the background of this lack of social justice, one has
to question the viability of introducing such a huge programme
as the NHI scheme. It is surely logical that the department
should at the very least get the basics of service delivery
right within the current system before any other grand schemes
can be launched.
Dienslewering
in
die
openbare
gesondheidsektor
is,
in
die
algemeen, steeds uiters swak vanweë ’n gebrek aan behoorlik
opgeleide
personeel,
veral
mediese
praktisyns.
Mense
wat
aangewese is op die staat vir mediese hulp moet nie uitgelewer
wees aan elemente van swak diens wat hul gesondheid verder
affekteer en selfs tot hul dood kan lei nie. Dit reduseer die
EPE 24 APRIL 2012
Handves
van
PAGE: 56 of 429
Regte
vir
Pasïente,
die
“Patients’
Rights
Charter”, tot net ’n waardelose stuk papier.
Verder, soos ons ook verlede jaar gemaan het, wil ons dit weer
aan die Minister stel om versigtig te werk moet gaan met die
nasionale gesondheidsversekering. Suid-Afrika is nie werklik
in staat om so ’n enorme program van stapel te stuur nie. Die
kernrede is ons klein belastingbasis wat al hoe meer onder
druk geplaas word deur die eise van die fiskus.
Daarom sou dit ons gerade wees om eers aandag te skenk aan
basiese dienslewering in die openbare gesondheidsektor, sodat
die armes onmiddellik kwaliteit dienste kan ontvang en die
middelklas kan weet dat hul belastinggeld effektief in die
openbare belang aangewend word. Enigiets anders is ’n skending
van basiese menseregte. (Translation of Afrikaans paragraphs
follows.)
[Service
delivery
in
the
public
health
sector
remains,
in
general, extremely poor due to the lack of properly trained
staff, especially medical practitioners. People reliant on the
state for medical assistance should not be at the mercy of bad
service delivery that could further impact on their health,
EPE 24 APRIL 2012
even
resulting
PAGE: 57 of 429
in
their
death.
This
simply
reduces
the
Patients’ Rights Charter to a worthless piece of paper.
Furthermore, as we also urged last year, we would like to put
it to the Minister again that they should approach the NHI
with caution. South Africa does not really have the capacity
to implement such an enormous programme. The main reason for
this is our small tax base, which is put under increasing
pressure by the demands of the fiscus.
It would therefore be advisable to focus in the first instance
on basic service delivery in the public health sector, in
order for the poor to receive quality services immediately and
for the middle class to know that their taxes are utilised
effectively in the public’s interests. Anything else is an
infringement of basic human rights.]
Minister,
we
therefore
implore
you
to
use
your
budget
to
tackle the basic issues of service delivery before any grand
schemes like the NHI is embarked upon. Thank you. [Applause.]
Mrs C DUDLEY: Chairperson, the ACDP acknowledges the efforts
being made to grasp the issues and address the challenges we
EPE 24 APRIL 2012
PAGE: 58 of 429
are facing in South Africa in improving access to quality
health services for everyone. Because we have a Minister of
Health who is prepared to confront even the most difficult
challenges with an openness and energy that is contagious, we
have high hopes that progress is possible. We are, however,
painfully
aware
that
unless
we
see
significant
progress,
people’s lives are going to be increasingly at risk.
This budget will have to meet expectations raised regarding
infrastructure development, hospital revitalisation, training
of
medical
practitioners,
women
and
child
health,
HIV
and
Aids, the NHI and so much more. The department must make sure
that last year’s underspending does not happen again, as it
will seriously weaken any prospect of progress.
While the budget for HIV/Aids and TB has increased, the budget
for maternal, child and women’s health has decreased and, at
face value, this does seem to be a concern, even though is
clear
that
all
programmes
should
impact
significantly
on
maternal, child and women’s health.
Primary health care services are crucial, and the relatively
small allocation to this programme does raise questions as to
whether plans to achieve a more “primary health care” approach
as opposed to a hospicentric approach, will stay in focus. The
ACDP, like the rest of the country, is acutely aware that
EPE 24 APRIL 2012
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education and training for the health sector in South Africa
has not grown sufficiently to meet our health needs and this
must continue to be driven, hon Minister.
It
seems
that,
while
we
are
struggling
with
issues
of
noncompliance and a lack of accountability in South Africa, we
are facing another side of the coin. The escalating cost of
legal
claims,
across
both
state
and
private
sectors,
undermines service delivery and has adverse consequences for
patients, the public and those delivering care.
Careful
thought
will
have
to
be
given
to
the
issues
of
noncompliance and accountability on the one hand and, on the
other hand, to the growing problem of litigation, excessive
premiums
and
defensive
medicine,
potentially
crippling
the
health sector.
The
protection
of
the
public
and
the
delivery
of
quality
services are complex. A balance must be found between the need
for health professionals to be able to do their work free of
fear and with proper accountability.
With time running out, I will just comment quickly on the
National Health Laboratory Service, NHLS, which is vital to
our health system. It conducts virtually all diagnostics for
the public health system. These include HIV viral load tests,
EPE 24 APRIL 2012
CD4
counts
and
PAGE: 60 of 429
TB
culture
and
resistance
tests.
It
is
a
functioning institution that has been facing bankruptcy and
collapse because two provincial Departments of Health
have
failed to pay some R2billion.
Whilst
no
functioning
longer
on
facing
austerity
bankruptcy,
measures
in
the
case
institution
the
is
financial
problems recur. It is unable to employ anyone, except those in
core and critical positions, and it is understaffed due to the
number of staff members who resigned last year during the
crisis.
The ACDP calls for decisive action to be taken by the national
Department of Health and the Treasury to prevent a recurrence,
which could result in the collapse of the NHLS. Thank you.
[Time expired.] [Applause.]
Ms M J SEGALE-DISWAI: Hon Chairperson, hon Minister and Deputy
Minister, hon Members of Parliament and distinguished guests,
I am very excited that since the Minister took over this
portfolio, health as a sector and discipline has been received
positively
by
South
Africans.
Minister,
you
are
being
celebrated by fellow South Africans as the light that has come
to shine for many.
EPE 24 APRIL 2012
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The leadership of this department has brought hope to many
hopeless South Africans. They have done so with clear minds,
knowing that there is a need to better the lives of ordinary
South Africans, who depend on the public health sector for a
healthy life. This department, under the leadership of the
Minister,
Deputy
Minister
and
director-general,
is
being
steered in the direction of improving the health of South
Africans. The efforts that they have made are there for all of
us to see, even the opposition.
This government, under the 100-year-old movement, the ANC,
shows that you will not find an old man of 100 years of age
who does not know what to do when there is a problem in his
house. This movement of the people is aware of what the people
on the ground need because it has been on their side long
before it became fashionable to be on the side of the people.
The movement has listened to the following: the rural women of
Rankelenyane
in
North
West,
when
they
cried
about
their
children who died from pneumonia; the retired mineworker from
Driekop in Limpopo, when he complained about asbestosis and
that he has not been able to afford treatment at the private
hospital;
a
young
teenage
girl
from
Jozini
in
northern
KwaZulu-Natal, when she cried out for help after she had been
raped
by
a
group
of
youngsters;
Matengteng in Bushbuckridge,
and
to
an
old
man
at
Mpumalanga, when he could not
EPE 24 APRIL 2012
afford
to
go
PAGE: 62 of 429
to
the
nearest
clinic
to
collect
chronic
medication because he could not walk. Indeed, it listened to
an old woman in Muyexe, Limpopo, when she said that she was
unable to collect her TB treatment because the rain had washed
away the bridge.
After listening to the cries of those South Africans, the
government, under the movement that has a rich history of
hearing the cries of ordinary people, decided that it would
implement a strategy. The strategy would ensure that health
care was accessible, available and indeed affordable to the
poor, rural, remote and farming communities.
It is after having heard these painful cries and pleas that
this
government
strategy,
which
decided
would
that
address
it
would
the
look
plight
of
at
the
those
best
South
Africans and many others, whose cries and pleas come to us
through the Presidential Helpline.
The strategy is called the NHI. This is the strategy that will
bring equality and equity to access to health care services
for all South Africans, irrespective of where they live. This
will ensure that a granny from Manthe in North West gets the
same health care as the person in Klerksdorp; that a school
child from Griekwastad in the Northern Cape and a pregnant
mother in Matatiele, in the Eastern Cape get the same service
EPE 24 APRIL 2012
PAGE: 63 of 429
as the person living in Port Elizabeth, and a young man from
the Cape Flats gets the same care and treatment as the person
in Chapman’s Peak. This strategy will ensure that all South
Africans get the same quality service because they are all
equal citizens of this beautiful motherland of ours.
In this regard, I would like to congratulate the leadership of
the department for the giant, bold step it has taken to ensure
that the country moves forward and that access to quality
health care is not the privilege of a few, but a right for all
South Africans. I am convinced that the strategy will be able
to address the key problems that the health department has
been experiencing. I am excited because the department has
identified the problems of the health sector, some of which
have tarnished the image of this glorious profession.
Having
said
those
things,
I
would
need
to
advise
the
department that they need to ensure that they implement the
strategy in health service systematically so that it continues
to be sustainable after all these efforts have been made. Our
people
are
waiting
patiently
for
the
day
when
they
can
confidently go to a facility and come back feeling better,
both mentally and physically.
I know that the department has good intentions. However, I
want to caution that unless these plans are systematically
EPE 24 APRIL 2012
implemented,
we
PAGE: 64 of 429
are
bound
to
be
counted
amongst
the
generations that had good intentions but meant nothing to the
ordinary citizens. These ordinary citizens are interested in
service delivery, not talking about the problem.
I will say to the Minister: “Beware of the prophets of doom.”
If we implement the NHI but still fail to reduce maternal
mortality, we will have failed. If we implement the NHI but
continue to have children and infants dying from preventable
and curable causes of ill health, we will have done nothing
worth celebrating. If we continue to have no medication in our
facilities,
we
will
still
have
failed
the
people
we
are
representing.
My learned member over there will have to agree with me as far
as the NHI is concerned. [Interjections.] I am so delighted
that you agree with me. [Laughter.]
The
implementation
improvement
in
the
of
the
health
NHI
should
outcomes,
be
followed
because
that
by
is
an
what
people want to hear. In order for us to achieve these things,
we need clarity of mind and thought. We need to focus on the
goal
and
keep
our
eyes
on
the
ball,
irrespective
of
any
negative talk. We should spare no time or effort to deliver on
the goals we have set for ourselves. It is also my belief
that, unless the department strengthens primary health care
EPE 24 APRIL 2012
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and the district health system, all the wonderful dreams that
it has will fail.
I really want to say that if you look at the plans that the
hon
Kopane
department
has
talked
already
has
about,
—
it
they
is
just
are
plans
that
they
that
the
speak
a
different language. It has become common practice for the DA
to come here and tell us of their dreams of what their plans
would be when they take over. Can they please support the
plans that are here? How can they stand here and shoot down a
plan that is going to take South Africa to another level?
An HON MEMBER: Mike, Mike, talk to her!
Ms
M
J
SEGALE-DISWAI:
To
the
hon
Mike,
I
think
you
miss
Health, and they have made a mistake by removing you. That is
why they have put you here today, so that you can howl on
their behalf. Thank you. [Laughter.] [Applause.]
Mrs D ROBINSON: Hon Chairperson, members and guests, the DA is
heartened by the enthusiasm, zeal and hands-on approach that
the Minister has displayed since his appointment. However, if
we look at some recent newspaper headlines, we will see that
he has inherited a health department that is in deep trouble:
“State health care in crisis”, according to the Sunday Times.
EPE 24 APRIL 2012
PAGE: 66 of 429
In the Weekend Post, referring to the dilapidated Elizabeth
Donkin Psychiatric Hospital in Port Elizabeth, I read of this
hospital
of
committed
horrors,
suicide
where
...
a
disturbed
patient
[Interjections.]
...
recently
after
ward
conditions became unbearable because of overcrowding and other
factors.
their
There
station
was
no
proper
had
been
monitoring
removed
to
by
nurses
accommodate
because
yet
more
patients.
Is this the mark of a country that has a Patients’ Rights
Charter and a Constitution that upholds human rights, dignity
and the right to a safe and healthy environment? Why do we
read of abusive and uncaring nursing staff? Can it be that
their working conditions are so bad that they are demoralised
and at the end their tether? [Interjections.]
I believe that nurses at Cacadu have not yet been paid for
January,
February
or
March.
In
some
municipalities,
cash
collections have had to be made to buy electricity to keep the
fridges
in
hospitals
running
so
that
the
medication
and
vaccines for babies do not go off. Is this perhaps one of the
reasons
we
have
had
so
many
tragic
deaths
of
babies
in
neonatal units?
The overcrowding and lack of resources at the Charlotte Maxeke
Academic
Hospital,
horrific
conditions
at
the
Dr
George
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PAGE: 67 of 429
Mukhari Hospital, the shortage of drugs, Disprin and equipment
at
Chris
Hani
Baragwanath
Hospital
and
the
deaths
of
180
babies at the Nelson Mandela Academic Hospital in Mthatha, all
bring shame to our nation. What will the national department
do to wake up hospitals and management and get competent,
dedicated professionals into state institutions? Minister, why
was the Hospital Revitalisation Programme budget underspent by
R1 billion
in
2010-11?
How
is
it
possible
that
there
is
underspending if so many of our hospitals and clinics are
falling apart and their needs are so critical?
In The Herald, I read about the critical staff shortages. This
resulted in the country’s first acute surgical unit, at the
Livingstone Hospital, having to be closed because of the dire
staff shortage in the casualty unit. It is regrettable that
this unit, which was to provide expert treatment and was a
signal of progress, had to be closed.
The shortage of medical practitioners — on average, 30% of the
registrar training posts of the Health Professions Council of
South Africa and 75% of subspecialist positions are vacant —
is a matter of grave concern. Is this perhaps because the
hospital
financial
managers
expertise
do
to
not
run
have
the
the
required
hospitals
skills
properly?
and
Staff
appointments must be based not on favours for comrades, but on
qualifications, fitness for purpose and experience — as we see
EPE 24 APRIL 2012
in
the
Western
PAGE: 68 of 429
Cape.
All
South
Africans,
particularly
the
poor, who suffer the most, need to know what programmes your
Ministry has in place to ensure competent and dedicated staff
members are appointed.
Minister, why did the key activities for improving training
facilities
not
accreditation
take
of
place
in
facilities,
2011,
for
external
example,
audits
of
the
health
facilities and the establishment of the Ombudsman Office?
We
have
massive
problems
with
health
compliance
in
South
Africa. Why is only 2% of the health budget being spent on
health regulation and compliance management? The budget of
R62 million for the Office of Health Standards Compliance may
not be sufficient. All across the country, there are doctors,
nurses and health institutions that are not complying with the
basic minimum standards in health care.
The chaos and lack of quality health care, especially in the
Eastern Cape, must be improved. It is a basic right, one which
the Western Cape administration adheres to and where the life
expectancy is 65 years. [Interjections.]
The
NHI,
your
plan
to
turn
the
system
around,
will
be
stillborn without sufficient doctors and without specialists
in every district. We need to be assured that the vast amount
EPE 24 APRIL 2012
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of money, the R900 million, to be spent on the NHI over the
three years will be well spent.
President Zuma said in his state of the nation address that
women’s health care programmes would be a focus area for the
financial year. In the build-up to 2015, when we assess our
progress
in
reaching
particularly
regarding
the
Millennium
maternal
and
Development
infant
Goals,
mortality,
the
decrease of almost 40% in the budget is a concern. Women’s
health care is not covered adequately in the strategic plan.
To
talk
about
maternal,
child
and
women’s
health
is
not
enough. We need decisive action to make a difference. We need
to utilise our resources correctly to make sure that the most
vulnerable
people
in
society
get
the
care
they
deserve.
Primary health care services have also received a relatively
small allocation in the budget. This does not gel with the
Minister’s stated intention to achieve a primary health care
approach as opposed to the current hospicentric approach.
The spending of R800 million on the use of consultants is very
worrying.
We
need
to
know
what
they
will
be
doing,
the
projects they will be involved in and whether the department
will be getting value for money.
The
Auditor-General
challenges
in
of
South
Africa
infrastructure
has
delivery
found
at
significant
provincial
EPE 24 APRIL 2012
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departments of health. The current meltdown in the national
Department
of
Public
Works
is
harming
the
poor
in
all
provinces, as they are the people who suffer most when clinics
and schools cannot be built, due to interminable delays caused
by government red tape.
After 17 years of freedom, the government has failed us. South
Africans deserve better health care. Minister, we trust that
you will be able to act as a catalyst and turn the situation
around to improve it. We look forward to an improvement under
your care. I thank you. [Applause.]
Ms B T NGCOBO: Chairperson and hon members, the department has
corrected all the issues that were pointed out by the AuditorGeneral
in
the
Audit
Report.
It
further
established
an
electronic register, which is really welcomed. We also welcome
the
fact
that
the
Minister
is
going
to
ensure
that
the
provincial departments are provided with support so that they
can do their audits properly.
It can only be a non-South African who is not aware of the
aggressive work that is being done and has been done with
regards to HIV and TB. Real South Africans are aware that a
lot of work has been and is still being done in regard to HIV.
EPE 24 APRIL 2012
PAGE: 71 of 429
Chairperson and hon members, the major problem with HIV and TB
is the issue of defaulters. We are aware that most of our
people live in informal settlements and on the mines. When
they go home, they either never come back or they come back in
a state close to death. Surely the current government, and the
previous government, would have been unable to follow these
people to wherever they were. After all, the health of each
individual is his responsibility.
We are aware that when these people come back, they are on the
verge of death. Some have multidrug-resistant tuberculosis, or
MDR-TB, and that is a very difficult disease to treat. We know
that there are special
wards that
can be built
for these
conditions.
A big difference has been made in the lives of extensively
drug-resistant tuberculosis, or XDR-TB, and MDR-TB sufferers.
We applaud the North West for the three MDR-TB patients who
were completely cured. [Applause.]
In South Africa, pregnant women are required to attend clinic
programmes even before the period of 20 weeks – at least at 14
weeks – so that any complications with the mother or baby can
be detected and treated.
EPE 24 APRIL 2012
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Although our learned friends on my right claim to be against
the NHI, never mind everything they say, they support the NHI.
That includes Mike Waters.
The Minister has reported that the department is going to
employ its own engineers, not only nationally but also
provincially. We are aware that the Minister keeps integrating
the department and the provinces to move away from
fragmentation. These engineers are going to work with the
public-private private partnerships to deal with the
departmental infrastructure projects. There is hope that the
infrastructure projects that are in the pipeline will be
completed on time. These projects include hospitals such as
the Nelson Mandela Academic, Chris Hani Baragwanath, Dr George
Mukhari, King Edward VIII and Limpopo Academic Hospitals. We
are hoping that these projects will be completed on time.
The resource envelope that has been given to the department is
spread throughout the provinces. Therefore, as the Portfolio
Committee of Health, we will monitor whether the provinces are
using these conditional grants properly, effectively and to
the benefit of the health of South Africans.
Funding has been given to universities by the department to
improve the doctors’ pipeline and to ensure that we get more
doctors. With regard to the funding that has been given to the
EPE 24 APRIL 2012
PAGE: 73 of 429
Department of Education via universities, is the department
sure that this funding will do what it is intended for? If it
is also intended to address the issue of disadvantaged student
doctors, will it do so or will the universities do as they
deem fit?
We are encouraged by the fact that the budget for the nursing
colleges as well as the training of community health workers
is already in place. The major challenges that the country is
facing, although we are aware that Minister is dealing with
them, is to integrate the health system across the board;
improve service; reduce the high cost of care; and improve the
lives of all South Africans.
Provinces and departments have to integrate their services and
improve communication and accountability, particularly for the
conditional grants that have been given for that purpose.
The NHI projects are focused on improving the districts’
health system, as well as for the districts to assume greater
responsibility towards the health of the nation. The projects
will start in 10 districts across provinces that will deliver
this service.
EPE 24 APRIL 2012
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Angisho nje ngesintu ngithi, ngizozibala lezi zifunda ukuze
bonke abantu abalapha nabasemakhaya bazi ukuthi yiziphi zona
lezi zifunda, nokuthi yini okuzodingeka bayilindele.
Ngikhuluma ngalezi ziFunda; i-O R Tambo eseMpumalanga Kapa,
iThabo Mofutsanyana eFreyistata, iTshwane eGauteng, uMzinyathi
noMgungundlovu KwaZulu Natali - yilapho kuphela lapho
kukhethwe izifunda ezimbili, mhlawumbe kwenza nokuthi
izinkinga zakhona zingangezifunda zakhona. I-Gert Sibande
eMpumalanga, i-Pixley ka Seme eNyakatho Kapa, i-Dr Kenneth
Kaunda eNyakatho Ntshonalanga, iVhembe eLimpopo kanye ne-Eden
eNtshonalanga Kapa - yize noma laba bengakweseki lokhu kodwa
kuzofanele babhekane nesimo ngoba imali yombuso iphumele ukuba
ifeze lowo msebenzi, ngaphandle-ke uma bengasitshela ukuthi le
mali yombuso bazoyenzani. (Translation of isiZulu paragraph
follows.)
[Let me say it in my mother tongue - I will point out these
districts so that all the people here and those at home will
know which districts I am referring to and what they should
expect. They are the following: O R Tambo in the Eastern Cape,
Thabo
Mofutsanyana
Umzinyathi
and
in
the
Free
uMgungundlovu
in
State,
Tshwane
KwaZulu-Natal
in
–
Gauteng,
the
only
province where two districts have been selected, maybe because
the problems there are as many as its districts. The rest
include Gert Sibande in Mpumalanga, Pixley ka Seme in the
EPE 24 APRIL 2012
PAGE: 75 of 429
Northern Cape, Dr Kenneth Kaunda in the North West, Vhembe in
Limpopo and Eden in the Western Cape – even though they do not
support this, they will have to face the situation because
state funds have been allocated specifically for this purpose
— unless they are prepared to explain to us what they are
otherwise going to use them for.]
May
I
go
back
to
the
responses
of
the
people
who
have
contributed to this debate. The hon Kopane spoke about the
National
Health
Bill,
which
looks
into
the
matter
of
the
Office of Health Standards Compliance.
An HON MEMBER: And he spoke sense.
Ms B T NGCOBO: Surely we cannot talk about or discuss that
Bill while it is still under discussion by the committee. The
committee is still talking about it. [Interjections.]
An HON MEMBER: It is not classified information.
Ms B T NGCOBO: We were listening to briefings only two weeks
ago. We are still going to be talking about the Bill. The
issue
of
independence
is
always
a
problem
in
this
House.
Whatever structure is established, its independence will be
EPE 24 APRIL 2012
doubted
because
PAGE: 76 of 429
it
will
be
reporting
to
so
and
so.
[Interjections.]
Hon Kopane, how exorbitant and expensive would private sector
medical schools be for the disadvantaged, whom we are talking
about today? For the elite and the rich that would do very
well. [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members!
Allow the member to be heard.
Ms B T NGCOBO: The reason is that the elite would be able to
afford what should be paid to that medical school. Medical
schools, as we see, are expensive, but private sector medical
schools ...
An HON MEMBER: You’d better speak to Malema. Maybe he could
support you. [Interjections.]
Ms B T NGCOBO: Do that. You do that!
EPE 24 APRIL 2012
PAGE: 77 of 429
So, we are looking forward to working with the province and
the national department and also to monitor and do oversight
in
the
provinces,
as
well
as
in
the
national
department
because we would like the quality of health services to South
Africans to improve. If I may just ask the people on my right,
if it were 17 years ago, would you be talking about health as
you are talking about it today, or would you be talking “nieblankes, blankes”?
What would you be doing, if we were to roll back the clock by
17 or 18 years? So, government is doing the best that it can
to improve the lives and the quality of life of all South
Africans.
Secondly, we have a very committed department and Ministry
working towards improving the quality of life of all South
Africans. Regardless of who you are, wherever you are, how
rich or how poor, your quality of life will be improved.
Hon Robinson, public servants are paid from the coffers of the
Public Service and Administration, not by Health. They are
public servants and they are paid as public servants, not by
any department they are serving.
EPE 24 APRIL 2012
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Thirdly, regarding the issue of energy in the Eastern Cape in
2010, I was working in another committee at that time. We went
to the Eastern Cape. The Department of Energy had not used its
electricity
grant
to
actually
make
sure
that
there
was
electricity in the rural clinics and schools. At the same
time, Water Affairs had not used its budget for clinics and
schools.
Therefore,
that
cannot
really
be
blamed
on
the
Department of Health. Chairperson, I thank you. [Applause.]
The MINISTER OF HEALTH: Hon Chairperson, thank you to those
who
participated,
including
those
who
participated
in
a
negative way. I started by saying that we have a special guest
today, Ms Yvonne Chaka Chaka, who is a Roll Back Malaria and
Unicef Goodwill Ambassador and UN Envoy for Africa. We have
invited her to celebrate her achievement. [Applause.]
She is the first African women to receive the World Economic
Forum’s
Crystal
through
their
Award
work.
for
She
artists
became
who
improve
involved
in
the
the
world
malaria
campaign after one of her back-up singers, Phumzile Ntuli,
died of malaria in 2004. She is also engaged in the daily
battle
against
HIV/Aids
and
TB.
She’s
a
South
African.
[Applause.] That is why we need to celebrate her success.
EPE 24 APRIL 2012
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In July 2010, when I accompanied the President to the African
Union
–
she
was
accompanying
the
AU
Social
Affairs
Commissioner, Adv Gawans, to convince heads of state in Africa
to support the Campaign on Accelerated Reduction of Maternal
and Child Mortality, which we are going to launch on 4 May, as
I
have
already
said.
Please
give
her
another
round
of
applause. [Applause.]
South Africa is one country with nine provinces. For some
reason, I am not sure why, people believe that I must begin
competing with the provinces that fall under us. This issue of
continually mentioning what’s happening in the Western Cape,
as if it were not part and parcel of the country, must come to
an end.
I was listening to this story of the Khayelitsha District
Hospital. It is not in my nature and I don’t want to begin
doing certain types of things, but you’re provoking me to do
things
that
are
not
in
my
nature.
Khayelitsha
District
Hospital was planned as far back as 2007, before the DA came
to power. If you think this is an issue of competition, let me
inform you that this was part of the conditional grant from
national government. We give conditional grants and the R700
million is that conditional grant.
EPE 24 APRIL 2012
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Let me tell you how conditional grants work. We provide a
framework
from
the
national
side
and
the
provinces
must
comply. Whatever they submit is based on the framework that we
prescribe. They submit the business plan and we pass it and
give the money. That is what we have done. [Interjections.]
The Bertha Gxowa Hospital in Gauteng ... [Interjections.] ...
Can you shut up, please, and listen. When you spoke, I was
quiet.
The Bertha Gxowa Hospital in Gauteng was built in the same
manner. It is a state-of-the-art hospital, a green hospital. I
was not there when MEC Mekgwe and the premier opened it, but
this is not a competition. It so happened that I came to
Khayelitsha because I was available.
I told Premier Zille this because my office confirmed very
late that I was coming. They had written the plaque in her
name. She said, “Minister, I am sorry. This plaque is written
in my name, but I will have it changed and written in your
name.” I said that it was not necessary as I was not in a
competition and that she should leave the plaque in her name.
I would just open the hospital. That is the spirit in which we
are working here and I don’t know what spirit you are bringing
to the country with this kind of competing. [Applause.]
EPE 24 APRIL 2012
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We want to rebuild Tygerberg Hospital here in the Western Cape
as
a
state-of-the-art
hospital.
We
have
already
given
R3 million for planning. Should I then start competing? We
gave that money and we are going to give no less than R1
billion
for
the
refurbishment
of
Tygerberg
Hospital.
[Applause.]
I am doing so because this is the Republic of South Africa,
it’s not the republic of the ANC or the DA. It’s the Republic
of South Africa for the people of South Africa. The people who
go there are South Africans. [Applause.]
We
have
Natal,
build
built
another
the
Dr
Inkhosi
Albert
Luthuli
state-of-the-art
George
Mukhari
Hospital
hospital.
Hospital
and
We
in
are
the
KwaZulugoing
Chris
to
Hani
Baragwanath Hospital. We have named six hospitals; they are
all going to be state-of-the art hospitals – something you
have never done before. There is going to be no competition.
We are all South Africans. Please, let’s avoid that.
Let me correct the issue of underspending. I am the one who
brought this issue of underspending to the fore and I even
gave you the figures. We didn’t know. Most of the things that
EPE 24 APRIL 2012
PAGE: 82 of 429
you keep on talking about and criticizing — you actually got
the
information
from
me.
[Laughter.]
Yes,
I
told
you
...
[Interjections.] ... that the underspending on infrastructure
has been doubling since 2007. It started at R199 million in
2007, until it was R813 million in 2010, not R1 billion, and I
said we would correct it. We hired engineers, as Mrs Ngcobo
has said.
I can announce to this House that while the underspending was
R813 million in 2010-11, in the financial year that has just
ended we have decreased it to R390 million. I am standing here
to tell you that during this financial year we will eliminate
it. Next time you will come and say that again. [Laughter.] We
will eliminate it. We decreased it and I was the one who
announced that we were going to decrease it. What I promise we
will
do,
we
always
do
in
this
department.
I
don’t
just
promise, we promise and do what we promise.
With regard to the issue of the NHI, I am not sure whether you
want to sleep through the revolution. This disaster you are
talking about is yours and not ours. [Interjections.] If you
are planning a disaster, go on! Why do you want to involve us?
[Laughter.] I am not moving with you in the direction of that
EPE 24 APRIL 2012
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disaster. I cannot take the country to the brink of disaster.
[Laughter.]
The
issue
of
universal
health
coverage
is
a
worldwide
phenomenon – you can be left behind - and it is supported and
defined
by
the
WHO.
Hon
Kganare,
you
talked
about
politicisation, it is not we who are politicising it. This is
a
worldwide
phenomenon
because
which
citizen
of
the
world
should be left behind when health care is financed?
Why is the WHO leading it? Because in 1978 when the WHO passed
the Declaration of Alma-Ata, they said that the attainment of
the highest standard of health is a world-wide social, goal.
And its realisation needs action from all sectors, economic
and social in addition to the health sector. That is what we
are pursuing.
Let me read the Bangkok Declaration to you. You can go and
Google what the WHO was saying about Mexico. That is what I
was quoting from. Go and read it. Universal health coverage,
sometimes referred to as UC, is a widely shared political aim
of
most
countries,
and
it
has
gathered
increasing
international attention recently. The International Forum on
EPE 24 APRIL 2012
Sustaining
PAGE: 84 of 429
Universal
Coverage:
Sharing
Experiences
and
Supporting Progress, organised by the government of Mexico on
1 to 2 April 2012 in Mexico City, is the latest international
high-profile event on universal coverage.
In Mexico City, high-level participants from 21 countries from
the six WHO regions, including the Ministers of Health of
Mexico and South Africa, as well as the WHO Director–General,
Dr Margaret Chan, and Assistant Director-General, Dr Carissa
Etienne,
gathered
international
to
exchange
co-operation
on
experiences
efforts
to
and
promote
sustain
progress
towards universal health coverage.
The
participants
heard
about
various
pathways
taken
and
challenges on the way - challenges, not obstacles – faced by
countries
on
the
way
to
universal
coverage.
They
also
discussed and identified supportive action that could be taken
at
international
universal
population
coverage
level,
for
wellbeing.
recognising
sustainable
Go
and
check
the
importance
development,
it
out.
equity
There
is
of
and
the
Bangkok Declaration, which was passed in Thailand during the
visit by the Portfolio Committee on Health.
EPE 24 APRIL 2012
PAGE: 85 of 429
Let me tell you what is going to happen. I am going to give
you copies of this ... [Interjections.] Please shut up and
learn to listen and show respect for that matter, especially
to elderly people ... [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Minister, please
take your seat.
Mrs S V KALYAN: Chairperson, I submit that the phrase “shut
up” is unparliamentary ... [Interjections.] ... and I would
like him to withdraw it ... [Interjections.] ... especially
from a person who holds as high a position as Minister.
The HOUSE CHAIRPERSON (Mr C T Frolick): I will rule at the end
of the debate. Hon Minister, you may conclude.
The MINISTER OF HEALTH: It does not matter, I can withdraw it.
[Laughter.]
Eupša tsebe ga e na sekhurumelo, sesi. [But the message is
loud and clear, sister.] [Laughter.]
EPE 24 APRIL 2012
PAGE: 86 of 429
I can withdraw it and I am withdrawing. [Laughter.]
Let me tell you what is going to happen. This issue is going
to
the
United
international.
Nations
That
is
the
for
it
decision
to
be
taken
universal
at
Bangkok
and
and
Mexico. Lastly, members of the DA, in Sepedi it is said that
...
... o seila kgaka, senwa moro. [... you are opposing this
while you indirectly support it.]
It is very funny: you are attacking the NHI. They will not be
able to interpret that, so forget about it. [Laughter.]
Seila kgaka, senwa moro. [Opposing while indirectly supporting
this.]
Nobody
will
interpret
that
easily.
[Laughter.]
Come
to
my
office and I will explain. You are attacking the NHI, but
piloting it.
When you do that, in my language we say that ...
EPE 24 APRIL 2012
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... o seila kgaka, senwa moro. Tšwela pele go ila kgaka le go
nwa
moro.
[...
you
are
opposing,
yet
supporting
this
indirectly. Keep on doing that.]
We will continue implementing the NHI successfully. Thank you.
[Laughter.] [Applause.]
The HOUSE CHAIRPERSON (Mr C T Frolick): In terms of the point
of order, the Minister voluntarily withdrew the phrase “shut
up”. It is indeed unparliamentary.
Debate concluded.
The Committee rose at 19:59.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 16 MARCH 2012
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ANNOUNCEMENTS
National Assembly
The Speaker
1.
Membership of Committees
(1)
Mr JB Sibanyoni was elected as Chairperson of the Ad hoc Committee on Code of
Judicial Conduct and Regulation of Judges' Disclosure of Registrable Interests
with effect from 15 March 2012.
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Correctional Services on the Judicial
Inspectorate for Correctional Services 2010/11 Annual Report, dated 15 March 2012
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The Portfolio Committee on Correctional Services, having considered the 2010/11 Annual
Report of the Judicial Inspectorate for Correctional Services, reports as follows:
1.
INTRODUCTION
1.1
The Judicial Inspectorate for Correctional Services’ (JICS) 2010/11 Annual Report
was tabled and referred to the Portfolio Committee on Correctional Services (the
Committee) on 26 October 2011.
1.2
Chapter IX of the Correctional Services Act (Act 111 of 1998) provides for the
establishment of the JICS. According to section 85(1) the JICS is an independent
office, managed by the Inspecting Judge. Section 85(2) provides that the JICS should
facilitate inspections of correctional centres in order for the Inspecting Judge to report
on the treatment of inmates, as well as on conditions of incarceration.
1.3
The JICS’ vision “to ensure that all inmates are detained under humane conditions,
treated with human dignity and prepared for a dignified reintegration into the
community”, is informed by the DCS’ strategic principles, outlined in the 2005 White
Paper on Corrections in South Africa (White Paper).
1.4
The JICS’ 2010/11 activities were informed by the following strategic objectives: the
acquisition of accurate and reliable information regarding conditions in correctional
centres, as well as the treatment of offenders, and facilitating inspections to assess the
above conditions and treatment; the maintenance of an independent complaints
system; the prevention of human rights violations; the promotion of community
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involvement in correctional matters; the raising of awareness about the JICS’
activities; and the practice of good governance principles.
1.5
Though public comment on the annual reports of the Department of Correctional
Services (DCS) and the JICS, as well as briefings by the DCS and JICS on their
performance, form an integral part of the Committee’s interrogation of annual
performance, the late tabling of the JICS’ Annual Report, and that the tabling occured
after the expiry of Judge Deon van Zyl’s term as Inspecting Judge, resulted in the
Committee having to abandon this valuable part of its preparatory work. The
Committee’s consideration of the report therefore comprised only a research analysis
of, and deliberations on its content, which took place on 15 February and 15 March,
respectively.
1.6
This report comprises an overview of key aspects related to the JICS’ operation and
execution of its mandate, as well as the Committee’s recommendations.
2.
KEY
OBSERVATIONS
EMANATING
FROM
THE
JUDICIAL
INSPECTORATE FOR CORRECTIONAL SERVICES’ 2010/11 ANNUAL
REPORT
2.1
Relationship with the DCS and its Executive
2.1.1 In 2009/10 the JICS had lamented the DCS’ failure to acknowledge and respond to
JICS reports. The Committee had registered its concerns about the apparently strained
relationship between the JICS, and the DCS and its Executive. In response, the DCS
presented its measures for improving the relationship, It is noted that one year later,
the Inspecting Judge in his foreword to the 2010/11 Annual Report, states that the
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relastionship had “vastly improved”, and that the appointment of a new National
Commissioner, and Deputy Minister had not resulted in any challenges.
2.2
Staff establishment
2.2.1 At 31 March 2011 the JICS had a staff complement of 44 permanent staff, and
approximately 203 independent correctional centre visitors (ICCVs), who are
independent contractors.
2.2.2 The Correctional Services Amendment Act (Act 25 of 2008) provides for a number of
amendments to the JICS’ staffing and structure, including the appointment of a chief
executive officer (CEO), appointed by the National Commissioner for Correctional
Services (National Commissioner). Though this post was created and funded in the
year under review, it had not yet been filled at the time of reporting.
2.2.3 As in previous years, ICCVs appointed in the year under review were appointed on
contract by the Inspecting Judge. Once appointed, the CEO will appoint permanent
staff and ICCVs in consultation with the Inspecting Judge,
2.3
Expenditure
2.3.1 According to section 91 of the Correctional Services Act the DCS is responsible for
the JICS’ expenses. In the year under review the JICS’ spent just over R20.26 million,
approximately R1.16 million more than in the previous financial year, and about
0,16% of the DCS’ total budget. As in the previous year most of the JICS’ budget
went towards the compensation of employees.
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2.3.2 As the JICS is not a department, was not established in terms of the Cionstitution ,
and is not a public entity as defined by the Public Finance Management Act (PFMA),
its expenditure is not subjected to a separate audit, but is audited as part of DCS’
financial statements.
2.3.3 The JICS, on the Committee’s recommendation that the feasibility of an independent
budget and audit should be explored, held discussions with the Independent
Complaints Directorate (ICD) which has similar functions as those of the JICS. It was
found that despite the occasional inconvenience associated with its financial
dependence on the DCS, the JICS’ financial independence would demand operational
and structural changes which would best be explored upon the ratification of the
Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or
Degrading Treatment or Punishment (OPCAT), to which South Africa is a signatory.
The rights and powers of the national preventative mechanism, which must be
established upon the ratification of the OPCAT, are similar to those already afforded
the JICS and its ICCVs. Should the JICS have to assume additional functions,
changes to its financial structure would be required.
2.4
Inmate complaints
2.4.1 ICCVs have access to any part of a centre, and any documents relevant to the
execution of their duties. They regularly visit correctional centres, interview inmates,
and record and monitor the resolution of complaints received. As they have no power
to force heads of correctional centres (HCCs) to cooperate with them, ICCVs mainly
operate as mediators and facilitators, ensuring that complaints are resolved amicably.
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2.4.2 In the year under review some progress was made in addressing some of the systemic
difficulties generally encountered by ICCVs. These interventions will go a long way
towards improving the JICS’ resolution of complaints.
2.4.3 Where Visitors’ Committees have been established, ICCVs must meet quarterly to
consider unresolved complaints, which, if not resolved at that level, are referred to the
Inspecting Judge. In November 2010 the Committee recommended that the JICS
report on the number of complaints referred to Visitors Committees, and the number
of matters resolved through the Inspecting Judge’s intervention. As this
recommendation came virtually at the end of the 2010/11 financial year, the
recommendation will only be implemented from 2011/12.
2.4.4 The JICS reported that the overwhelming majority of complaints received in the year
under review related to communicating with families, transfers and health care.
Access to health care is of particular concern: health-care related complaints have
increased by approximately 255% since 2007 (39 868 such complaints were received
in the year under review).
2.4.5 The JICS interprets the increased referral of complaints from bodies such as the
Office of the Public Protector (OPP), the Public Service Commission (PSC), the
South African Human Rights Commission (SAHRC), and Parliament as an indication
of growing confidence in the JICS’ ability to execute its mandate.
2.5
Inspections
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2.5.1 The Inspecting Judge and JICS officials conduct correctional centre inspections. The
JICS had in previous reports and submissions commented on the negative impact the
two-shift system has had on the conditions of incarceration and treatment of
offenders. Offenders’ access to rehabilitation and other programmes integral to the
correcting of their offending behaviour and their ultimate reintegration is but one of
the critical areas affected by the DCS’ failure to resolve challenges associated with
the system. Along with assaults, medical and specialised mental health care,
infrastructure and maintenance, the unresolved shift system remains an area of
concern.
2.6
Community involvement
2.6.1 As stated in the White Paper, the correcting of offending behaviour is a societal
responsibility. The ICCVs and Visitors Committees play a vital role in promoting
awareness and interest in correctional matters. ICCVs are nominated by their
communities, and must have a history of community involvement.
2.6.2 Towards the end of 2010/11 the JICS conducted a survey of the nature and extent of
ICCVs’ community in involvement. The survey revealed a relatively high level of
community participation. Some Visitors Committees held fruitful stakeholder
hearings aimed at creating public awareness, and addressing some challenges that call
on cooperation from amongst others, Legal Aid South Africa (LASA).
2.6.3 Community organisations emphasised their commitment to assist the DCS by
rendering services that meet inmates’ needs. The impact of community involvement
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has to however been difficult to assess, as no specific methods of monitoring and
evaluation have so far been applied.
2.6.4 The JICS welcomed the DCS’ commitment to establishing uniform norms and
standards for non-governmental organisations’ involvement in the rendering of
services to inmates. This will assist the JICS in providing guidelines for community
involvement, thus making greater monitoring and evaluation mentioned above,
possible.
2.7
Transfer of inmates
2.7.1 As in previous years, complaints relating to transfers requested owing to the
prevailing conditions in correctional centres were the most common in 2010/11. The
JICS remains concerned that many such complaints are not resolved.
2.7.2 Many inmates alleged that they were being transferred as a punishment for bad
behaviour, or in order to prevent their participation in investigations in which officials
might have been implicated. These allegations motivated the JICS to conduct a survey
to establish how transfers were managed generally. ICCVs conducted structured
interviews with 185 HCCs, and 2 005 inmates, across 194 centres,
2.7.3 The survey revealed that those who had requested to be transferred, waited on a
response for on average 7 months. Of the 1 634 inmates who have been transferred,
868 claimed that they did not request to be transferred. In 516 instances, HCCs had
allegedly not provided reasons for transfers. In 920 cases inmates’ families were not
informed of their transfer, and in 483 cases the transfers resulted in inmates not being
able to continue social or education programmes they were participating in.
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2.8
PAGE: 96 of 429
Death in correctional centres
2.8.1 The JICS acknowledged improvements in the DCS’ investigation of deaths. Unnatural
deaths decreased from 55 in 2009 to 48 in 2010. Most of the deaths were reported as
suicides. The 8 cases in which officials were implicated, as well as those related to
gang activity officials are suspected to have been aware of, are of major concern.
2.8.2 The Annual Report does not indicate how many natural deaths were reported in
2010/11 financial year. An assessment of the 916 ‘natural’ deaths reported between 1
January and 31 December 2010, revealed that the majority of natural deaths appeared
to occur in the first year of incarceration. This was ascribed in part to inmates being
admitted with pre-existing conditions which are not identified on admission, or if
identified, not treated adequately.
2.8.3 The JICS reports that three infant deaths at the Johannesburg and Durban Female
Correctional Centres had not been reported to it. The failure to report maybe
attributed to the DCS’ mistaken understanding that only inmate deaths should be
reported.
2.9
Segregation
2.9.1 The JICS reported an improvement in HCCs’ reporting of instances where inmates
have been segregated: such reports have increased from 5 558 in 2009/10 to 8 155 in
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the period under review. That only 52 such referrals were received from inmates
directly is a cause for concern as it pointed to a possible failure on the part of HCCs to
inform inmates of their right to refer segregation to the Inspecting Judge for review.
2.10
Use of force and mechanical restraints
2.10.1 Section 32(6) of the Correctional Services Act requires that all instances of the use of
force must be reported to the Inspecting Judge. Only 10 such reports were received in
the period under review, which the JICS ascribes to the DCS’ ignorance of the legal
requirement related to immediately report when use of force has had to be employed.
2.10.2 Section 31(3) of the same act requires HCCs to report any use of mechanical restraints
to the Inspecting Judge. In terms of section 31(5) inmates subjected to mechanical
restraints may appeal to the Inspecting Judge. Of the 67 cases in which the use of
mechanical restraints was reported, only 7 inmates appealed against use of restraints.
This may point to inmates’ ignorance of their rights in this regard.
3.
RECOMMENDATIONS
The Committee requests that the Minister of Correctional Services (the Minister) ensures that
the following recommendations are considered, and where possible, implemented. The
Minister should further ensure that responses on their feasibility and/or implementation status
reports are submitted within three months of the adoption of this report.
3.1
The Money Bills Amendment Procedure and Related Matters Act (2009), provides
for, amongst others, a parliamentary procedure to amend Money Bills, thus granting
EPE 24 APRIL 2012
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parliamentary committees greater opportunity to influence the allocation of funds to
the departments they oversee. Section 5 compels the National Assembly, through its
Committees, to annually submit budgetary review and recommendation (BRR) reports
on the financial performance of departments accountable to them. Though the abovementioned Act is silent on oversight over entities, the Committee believes that, given
that the JICS receives its budget from the DCS, its performance too should be
assessed during the BRR process in October each year. The Committee therefore
again calls for the tabling of the JICS’ Annual Report in sufficient time to allow for its
consideration during the above-mentioned process.
3.2
The correcting of offending behaviour is a societal responsibility. The Committee
welcomes efforts to conclude memoranda of understanding (MOUs) with the SAHRC
and the OPP, and should be briefed on the content of each agreement.
3.3
Corruption not only poses a serious security risk, but compromises the treatment of
inmates and conditions of incarceration, thus impacting negatively on rehabilitation
and reintegration efforts. Section 90(1) of the Correctional Services Act allows the
JICS to not only report on conditions of incarceration and treatment of offenders, but
also on “any corrupt and dishonest practices”. The annual surveys performed by the
JICS are valuable sources of information, and it is recommended that an analysis of
the prevalence and impact of corruption on conditions of incarceration should be
explored in the 2012/13 financial year.
3.4
Serious concerns about ICCVs’ capacity, and independence remain. Inmates regularly
complain that ICCVs either do not visit them, or that they appear to be “working
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with” warders and correctional centre authorities, rather than assisting inmates in
having their complaints resolved. The impression that ICCVs are not as effective as
they should be, is further amplified by the volume of complaints forwarded directly to
the Committee. The Committee should be provided with the details of how ICCVs are
appointed, monitored and assessed, as well as with a list of all ICCVs’ names, contact
details and the correctional centres at which they are stationed.
3.5
Considering the volume of transfer-related complaints received by the Committee, we
concur with the JICS’ assessment that the transfer processes appear to be irregularly
applied. The ‘punitive’ and ‘preventative’ application of the process described in the
report subverts rehabilitation and reintegration efforts, and those responsible should
be held to account. The Committee supports the JICS recommendation that the
policies governing transfers, particularly those related to the turnaround time for the
consideration of such requests, should be strictly adhered to.
3.6
The Committee remains concerned about the JICS ability to perform its oversight
functions independently, and effectively. The process of organisational transformation
referred to in the foreword is welcomed, despite concerns about the process’
dependence on the DCS’ approval. The Committee should receive regular updates on
progress made, and should be kept abreast of challenges experienced in finalising the
restructuring.
4.
ACKNOWLEDGEMENT
The Committee thanks the JICS officials who provided clarity and input during the
compilation of this report. Justice DH van Zyl, who authored the report, and whose three-year
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term of office expired on 31 October 2011 is also thanked for the contribution he made
during his tenure.
Report to be considered.
MONDAY, 19 MARCH 2012
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister in The Presidency: Performance Monitoring and Evaluation as well
as Administration in The Presidency
(a)
Annual Performance Plan of the Department of Performance Monitoring and
Evaluation for 2012 – 2013.
COMMITTEE REPORTS
National Assembly
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1.
PAGE: 101 of 429
Report of the Portfolio Committee on Health on the oversight visit to Mankweng,
Louis Trichardt Hospitals and Madombidza Clinic in the Limpopo Province
from 10-12 August 2011, dated 30 November 2011
1.
Introduction and objectives
The Portfolio Committee on Health undertook oversight visits to a number of public health
facilities in the Limpopo Province, from 10 – 12 August 2011. The following objectives
underpinned the purpose of the visit:

Assess infection control strategies and the quality of health services;

Gain insights on the functioning of the tertiary, district and primary health services in
the province;

Observe facilities for child-birth in line with the United Nations Millennium
Development Goals (MDGs) 4 and 5. These Goals are to reduce infant mortality and
maternal mortality respectively; and

Assess security in the above-mentioned public health facilities.
In addition, although there are few or no reported cases of initiates’ deaths in Limpopo, the
Committee wanted to get a briefing on how best the province executes its circumcision
procedures.
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2.
PAGE: 102 of 429
Delegation
The multi-party parliamentary delegation comprised the following Members of Parliament,
with accompany support staff:
African National
Democratic
Inkatha
Congress of Support Staff
Congress
Alliance
Freedom
the People
Party
Dr MB Goqwana:
Ms E More
Ms HS
Mr DA
Ms V Majalamba:
Chairperson;
and
Msweli
Kganere
Secretary;
Ms MC Dube;
Mr M
Ms N Mahlanyana:
Waters
Assistant; and
Ms TE Kenye;
Ms LS MakhubeleMashele;
Ms RM Motsepe;
Ms BT Ngcobo; and
Ms MJ Segale-Diswai
3.
Hospitals visited by the delegation
Mr Z Rahim:
Researcher
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The parliamentary delegation visited the following hospitals with a view to obtain first hand
knowledge of the challenges faced by these public medical facilities:

Mankweng Hospital

Louis Trichardt Hospital

Madombidza Clinic
4.
Mankweng Hospital
4.1
Delegation from the hospital
At the Mankweng Hospital, the following delegation welcomed and provided a detailed
overview of the conditions:
Ms MM Monale, Acting Chief Executive Officer; Dr TM Pinkoane, Senior Clinical Manager:
Pietersburg Hospital; Dr CT Ntoane, Manager - Oral Health Services; Sister Lydia Maloba,
Infection Prevention and Control: Pietersburg Hospital; Mr Harold Malatji, Infection
Prevention and Control: Pietersburg Hospital; Ms Peggy Duba, Acting Nursing Manager:
Pietersburg Hospital; Ms Matlakala Gladys Madibane, Assistant Manager-Nursing; Ms
Grace Mmatloe Lebese, Assitant Manager-Nursing; Dr RM Mahladi, Senior Clinical
Manager; Ms ME Matlou, Quality Assurance Coordinator; Ms MCM Magagane, Quality
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Assurance Coordinator; Ms EM Legodi, Acting Campus Manager: Pietersburg Hospital; Ms
MM Mogashoa, Infection Control Nurse; Ms ML Maloba, Acting Nurse; Dr M Shoyeb,
Acting Senior Manager; Ms M Suzan Mehape, Manager; Ms V Khangala, Senior ManagerFinance; Ms SM Makwela, Information Deputy Manager; Ms Q Nenzhelele Hlamalani,
Operational Manager: Louis Trichardt Memorial Hospital; Mr Daniel Sunduza Maluleke,
Manager- Risk and Security.
4.2
Walkabout around the hospital
On arrival, the parliamentary delegation was taken on a tour of the hospital facilities, and also
provided an overview of the conditions. The delegation visited the Obstetric Department,
Neonatal Intensive Care and High Care Unit and the Radiology and Radiography Units.
4.2.1 Obstetric Department
Members observed that infection control would be a problem as there was an absence of hand
sprays, shoe gloves and other protective measures. In response, the Infection Control Officer
noted that infection control was not standardised in South Africa. The 2007 National Policy
and Strategy did not specify that hand sprays were mandatory.
The challenges in this department comprised the following:
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
PAGE: 105 of 429
Staff shortages were reported in the wards. The nurse to patient ratio was 1:3 or 1:4.
The Ward had 32 registered nurses, eight enrolled nurses, 80 nursing assistants and
seven general assistants;

Equipment and consumables were not always available: Electrocardiogram (ECG)
machines had to be rotated as there was a shortage;

The hospital did not have an isolation ward, but used a side ward, when needed;

Maintenance of equipment and infrastructure was a challenge. The hospital’s own
maintenance unit was used for this instead of the Department of Public Works. For
four to five months no water was available and the hospital had to improvise. This
was due to a water reticulation issue at the hospital; and

The hospital was still waiting for transport incubators, which were ordered in March
2011, and four out of seven were being repaired. Procedurally, first the Clinical
Engineering Unit undertakes in-house repairs and, if needed, it is then sent to a
company for repairs. If new incubators need to be procured, the Bid Committee would
handle the matter.
4.2.2 Neonatal Intensive Care Unit and High Care Unit
The unit consisted of eight high-care and eight intensive care unit beds. The Neonatal ward
has a Kangaroo Mother Care Unit, which allowed, amongst other things, mothers to have
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skin-to-skin contact with their premature and underweight (under 1 kg) new-borns as this had
been shown to be beneficial to the babies’ development.
The procurement process at the hospital was very slow, and this resulted in the hospital
having to return unspent money to Treasury.
4.2.3 Running of the pharmacy
The pharmacy served 21 clinics, including 10 outreach clinics, as well as the wards at the
hospital and outpatients Section. It was staffed by 13 pharmacists, including five community
service pharmacists as well as nine interns and nine pharmacy assistants. Six staff members
go out daily to clinics. Five vacancies were reported for pharmacists, including one for a
community service pharmacist position. The average waiting time for service was between 24
minutes to 2 hours. The challenges noted were:

The ARV clinic needed a CCTV but there were too many zones to cover;

The pharmacy itself also needed a CCTV. The process was going to take
approximately six months, which was going to be a challenge to its accreditation; and

The pharmacy struggled to obtain stock as amounts over R150 000 had to go through
an adjudication process, which was quite slow.
4.2.4 Radiology and radiology services
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The Mammography Unit, which was transferred from the Pietersburg Hospital, was closed as
the machine had not been tested. The unit was short-staffed as it was supposed to have 22
staff members but only had14 staff, including two consultants and two registrars. The Unit
had six non-functional portable X-ray machines. There was no teleradiology, which is the
transmission of patient radiological images from one location to another for the purpose of
interpretation. The Unit does have an equipment maintenance plan but procurement of new
equipment takes more than 6 months in some cases. The Unit conducts approximately 3 000
procedures per month and sees approximately 2 000 patients per month. The manager
position was vacant. The unit would be getting two new Computerised Tomography (CT)
scanners to the value of R25 million that year.
4.3
Briefing by the Acting CEO on the profile of the Mankweng Hospital
Having completed the walk about, the Acting CEO, Ms Monale presented the Mankweng
Profile to the Committee. She informed the Committee that Limpopo Province had an
estimated population of 5, 8 million, with an average growth rate of 3, 4% per year since
1996. The province had the lowest urbanised population in South Africa of 11% as opposed
to a non-urban population of 89%. She told the Committee that the public sector was the
highest provider of employment opportunities in the 92% rural province, with the
unemployment rate of approximately 46% and an estimated 40% of adults being functionally
illiterate.
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The hospital was built in and commissioned on 1 July 1988, and was opened officially by the
Chief Minister of Lebowa Government, Mr Noko Ramodike.
4.3.1 Vision
The Committee was informed that the hospital was a tertiary academic institution, which
promoted and rendered quality, comprehensive health services for all. The mission of the
hospital was to provide accessible, sustainable tertiary services, community orientated
training, development and research.
4.3.2 Strategic Development of Polokwane/Mankweng Hospital Complex (PMHC)
The CEO informed the Committee that after the elections in 1994 the Department established
a commission on Provincial Tertiary Services. The commission came up with a clear plan
with three hospital levels of care and the designation of each hospital into one of the three
levels. After consulting with the relevant stakeholders, the commission recommended that
Pietersburg Mankweng Hospitals be merged into a complex with combined number of beds
of 1016.
The role of the PMHC was to provide tertiary services to all level 1 district and level 2
regional hospitals in the Limpopo Province. The PMHC also served as a regional hospital in
the Capricorn District.
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4.3.3 Role of Mankweng Hospital
Mankweng served as primary hospital for its surrounding community. The hospital also
served as the secondary hospital for Capricorn District. The hospital had tertiary services for
Limpopo province in certain clinical areas. It participated in 15 out of 50 recognised tertiary
services. A number of specialist’s clinical departments existed at the Mankweng Hospital.
These range from - Anaesthesiology; Paediatrics and Child Health; Neonatal ICU; Internal
Medicine; Family Medicine; Phela O’Phedishe (ARV Clinic); Clinical Forensic Medicine;
Clinical Psychology; General Surgery; Trauma Surgery; Psychiatry: Adult and Paediatric;
Orthopaedics and Prosthondotics; Clinical Support Services; Optometry; Occupational
Therapy; Physiotherapy; Clinical Social Work; Oral Health; Radiography; Speech and
Audiology; Pharmacy; Dietetics; Clinical Engineering; Laboratory Services; and Blood Bank.
4.3.3.1 Academic Component
The CEO informed the Committee that the academic component was jointly administered by
PMHC and the University of Limpopo. PMHC was accredited for specialist (post-graduate)
training in 16 departments. Twelve of these were fully accredited and four were partially
accredited. Academic activities were led and coordinated by the Deputy Dean of the Faculty
of Health Sciences. The following wards existed at the Mankweng Hospital - Internal
Medicine; Surgery; Orthopaedics; Maternity; Gynaecology; Neonatal; High Care; Burns;
Intensive Care; Paediatric; Child and Family; Ophthalmology and Sub Acute.
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Mankweng had 509 usable beds including 27 sub-acute beds.
4.3.3.2 Staff component
The complex approved staff component was 6090 of which 2806 were filled. The vacant
posts were 3284 and the vacancy rate was 53.9%. The approved staff component for
Mankweng Hospital was 2139, of which 1177 were filled. Vacant posts were 962 and the
vacancy rate was 44.97%.
4.3.3.3 Concerns raised by the Committee
In response to the input provided, the Members raised the following concerns:

Staff shortages were far too high, and might compromise the services provided. This
was evidenced by the long waiting period at the OPD;

If the CEO was working in an acting capacity, the lack of permanent leadership might
impact on the functioning of the hospital in the future;

Kangaroo wards within the maternity section had proved useful in other hospitals, but
the Mankweng Hospital had no such initiative;
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
PAGE: 111 of 429
In terms of shortages and lack of infrastructure, the committee noted the following:
Shortage of beds and stretchers; ICT infrastructure was lacking, particularly for the
academic campus; office and residential accommodation was limited; absence of
maintenance of medical equipment; no maintenance of infrastructure; a shortage of
artisans; no proper record management; inadequate space; and shortage of staff
accommodation, which made it difficult to attract staff.
5.
Louis Trichardt Memorial Hospital
5.1
Delegation from the Hospital
Ms Constance Rauling, Acting CEO; Mr Rex Maleke Magampa, Acting Allied Manager; Ms
Mr MP Tshikota, Professional Nurse Speciality; Ms GR Mashamba, Operational Manager;
Ms MP Malumane, Assistant Manager-Pharmaceutical Services; Ms B Maguga, Assistant
Manager-Nursing; Ms Queen Hlamalani Nenzhelele, Operational Manager; Ms Patricia
Khomunala, Professional Nurse Speciality; Mr AR Nemakonde, Acting Deputy Manager; R
Kutelani Sigide, Deputy Manager: Communications; Ms Nemetali Nndweleni, Acting
Deputy Manager; Ms Mukwevho Tshilidzi Suzan, Deputy Manager-Security Risk
Management; Ms Joyce Mutulal, Operational Manager; Dr F Davachi, Acing Clinical
Manager; Mr Margaret Audrey Dagaba, Principal Medical Officer; Ms Jacqueie Sadiki,
Senior Provisioning Administrative Officer-Supply Chain; Ms NJ Nyase, Deputy Manager Finance; Ms AP Mawashe, Deputy Manager - Quality Assurance; Ms MJ Mabasa, Human
Resources Manager; Ms PM Musitha, Operational Manager – ARVs; Ms ME Matidze,
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Senior Manager and Ms Deliwe Nyathikazi, Senior General Manager, Limpopo Provincial
Government.
5.2
Walkabout around the hospital
On arrival, the parliamentary delegation was taken on a tour of the hospital facilities, and also
provided an overview of the conditions. The delegation visited the Takalaninanne Clinic, the
pharmacy, outpatients department, casualty ward, maternity ward, delivery room, admission
and post caesarean room within the Louis Trichardt Memorial Hospital.
5.2.1 Takalaninanne Clinic
The clinic was within the hospital. HIV Counselling and Testing (HCT), Sexually
Transmitted Infections (STI), Antiretroviral Treatment (ART) and TB services were provided
at the clinic. The clinic also offered family planning. The pharmacist informed the Committee
that they did not have support groups because patients wanted to be provided with food and
the clinic could not afford to provide it.
The clinic was operating with one doctor and when the clinic was busy, a doctor would come
from the wards to assist.
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5.2.2 Pharmacy
There were different counselling rooms in the pharmacy area. The pharmacy attends to
approximately 2000 ARV patients a month.
The pharmacy was very small with falling shelves. The pharmacist informed the Committee
that if the pharmacy had a shortage of stock, the hospital usually borrowed from other
hospitals. In the case where there were ARVs shortages, they would halve the drugs so that
the patients could share (instead of giving patients drugs that would last for a month, she/he
was only given enough to last for 15 days).
The other challenge that was mentioned by the pharmacist was that sometimes there were no
stock at the medical depot.
5.2.3 Out Patients Department (OPD)
The OPD had six single cubicles. On the day of the visit, the OPD was overcrowded. The
patients on being asked the length of time it took for them to receive attention complained
that it took very long and sometimes a patient would come in the morning, and would only be
attended to very late in the afternoon.
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The Committee was concerned that children and adults waited in the same area and this
might result in cross infections.
5.2.4 Casualty Ward
The sister in charge of the casualty ward informed the Committee that due to a shortage of
beds in the hospital, they sometimes had to keep patients for two days in casualty and
sometimes patients had to sit on the bench due to the shortage. The casualty ward was short
of stretchers, and only four belonged to the premises.
5.2.5 Maternity Ward
The maternity ward was attending to approximately 150 vaginal deliveries a month. The ward
was also dealing with unbooked cases. The sister in charge informed the Committee that the
ward needed more space and more beds. In some instances, patients in labour deliver their
babies while sitting on chairs.
5.2.6 Delivery Room
There was no protection clothing in the delivery room. The sister in charge informed the
Committee that they sometimes dealt with 25-30 deliveries and had only nine rotating
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professional nurses. There was no kangaroo room. The ward was short staffed of two
operational managers.
5.2.7 Admission and Post Caesarean Room
The post caesarean room was a two-bedded room. The sister in-charge informed the
Committee that when the need arises, it was also used as a three bed unit because the hospital
could not chase patients away.
5.3.
Meeting with the Hospital Management
Having concluded the walk about, a meeting was held with the hospital management. Ms
Raulinga, the Acting Hospital CEO briefed the Committee and presented an overview of the
Louis Trichardt Memorial Hospital. The hospital was a District Hospital situated in Limpopo
Province under Vhembe District in Makhado Municipality. The first phase of the hospital
was established in 12 August 1942 and constitutesd the current General Ward. The second
phase which was the current maternity ward was built in 1972. The outpatient department,
pharmacy, nurses’ home and part of the doctors’ residence were added in 2002. Additional
houses and bachelor flats were built in 2008.
The hospital was situated along the N1 road towards Zimbabwe. It served a population of
around 140 000 in the Makhado local area. It had 52 approved beds and 52 usable beds. The
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hospital had an annual headcount of 53670. Four clinics, one mobile clinic and a Health
Centre referred patients to the hospital.
5.3.1 Strategic priorities of the hospital
The CEO highlighted the following as strategic priorities of the hospital:

Improving the quality of services rendered;

Prevention and Management of HIV/AIDS, Sexually Transmitted Infections (STI)
and TB;

Decreasing mortality and morbidity rates;

Strengthening of Human Resources Planning, Management and Development;

Improving Outreach Programmes;

Improving Financial Resource Management;

Managing Risk Factors;

Maintenance of infrastructure; and

Promoting interdepartmental collaborative effort.
5.3.2 Services rendered at the hospital
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The following services were offered at the hospital - Accident and Emergency Care Services;
Medical and Surgical Care; Maternity Services; Paediatric Services; Reproductive Health
Services; Nursing services; HIV/AIDS, Sexually Transmitted Infections/TB management;
Occupational Health and Safety Services; Infection Prevention and Control Services;
Laboratory Services; Pharmaceutical Services; Occupational Services; Physiotherapy
Services; Speech, language and audiology services; Social Work Services; Dietetics Services;
Clinical Psychology Services; Optometry Services; Radiology Services; Dental and oral
Health Services; Outreach programme; Quality Assurance Programme; Risk and Security
Services; Catering Services; Laundry Services; Housekeeping Services; Mortuary Services;
Communication and Community Liaison Services; Information and records management; and
Birth and Death Registration Services.
5.3.3 The most common diseases experienced in this area are:
Gastroenteritis; Pneumonia; Anaemia; Diabetus Mellitus; Pulmonary Tuberculosis;
Hypertension; Retroviral Diseases; Motor vehicle accident cases; Congestive cardiac failure
and Asthma.
5.3.4 Human Resources and Financial Management
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The CEO mentioned that in strengthening the Human Resources Management planning and
Management there were challenges with regard to shortages of doctors, professional nurses
and male nurses and clinical support practitioners.
On financial management services, the challenges mentioned by the CEO was that service
providers do not allocate the budget according to the headcount, and incomplete projects that
stymied the work of the hospital.
On pharmaceutical services, the challenge mentioned was the shortage of medication from
the pharmaceutical depot.
On strengthening outreach programme, the CEO informed the Committee that there were no
challenges.
In providing quality patient care, the challenges noted relate to chronically ill patients and
orthopaedic patients who stayed too long in the hospital. Most of the deaths at the hospital
were HIV-related complications. The hospital saw a high number of accidents, which
happened next to the tunnel on the N1. The maternal deaths were caused by late referrals
from clinics and HIV/AIDS complications.
5.4
Ministerial Priorities
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The hospital was working towards attaining the Ministerial priorities and the following were
projects the hospital was embarking on:
5.4.1 Hygiene and Cleanliness
The CEO stated that the buildings and grounds were not adequately cleaned. The main
challenges that led to this were shortage of cleaning staff and the overgrown grass during
rainy seasons. In addressing the above-mentioned challenges the hospital would fast track the
appointment of staff members. The cutting of grass had also been outsourced.
5.4.2 Improve quality of health care
In terms of the measurable objective of improving patient safety, as per the Ministerial
priorities, the hospital identified the following gaps:

Overcrowding of patients in the wards due to infrastructural challenges; and

Absconding by patients, theft of babies due to unavailability of CCTV and security
doors, palisade fence and the main gate of the hospital.
In addressing the challenges, the hospital had motivated for the expansion of the hospital. The
maternity and paediatric ward now had security doors. In motivating for the facilitation of
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installation of palisade fence and the main gate of the hospital, a presentation had been made
to the acting District Executive Manager.
The hospital also had a challenge of non - compliance or non - adherence to infection control
standards. The following were the planned activities to address the challenge:

There was now a designated specific person to focus on infection control;

Paper towels had been provided for hand washing;

There was an in-servicing training on segregation of medical and non-medical waste;

Waste management inspections were conducted on a monthly basis;

Waste management meetings were conducted on a monthly basis;

The infection prevention and control audits were conducted on a quarterly basis;

Infection control meetings were conducted on a monthly basis; and

Three polices for the review and implementation of infection control policies had
been compiled.
The hospital also faced challenges of infrastructure in management of medical waste. To
address the challenge, the hospital had erected a central storage for medical waste. There was
a ward attendant that assisted in collection of medical waste from the wards.
5.4.3 Reduce Waiting Time
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The hospital had reduced patient waiting times from 1h48 minutes to 1h17 minutes.
5.4.4 Drug availability
In ensuring, that there were no drug shortages at the hospital, the hospital would continue to
borrow from other hospitals and would continue making follow ups with the pharmacy depot.
5.4.5 Concerns raised by the Committee
The Committee raised the following concerns in relation to the Louis Tricharcht Hospital:

The congestion of hospitals aggravated the conditions and patient care provided;

The fact that babies and children waited in the same OPD as adults might pose a risk
of cross-infections;

There was no 24-hour emergency service clinic; and

There was no public transport close to the hospital and the Committee raised concerns
on the way in which patients travelled to the hospital.
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6.
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Madombidza Clinic
The clinic opened in May 2011, and had four consulting rooms. The clinic used the
supermarket approach, which was to get all the services under one roof on any specific day
instead of having to come back for a service on a specific day.
The clinic dealt with approximately 25-30 deliveries a month. The clinic had renovated the
nurses home. The clinic attended mainly to stabbed cases, which resulted from drunken
brawls. The clinic was next to a tavern.
HIV patients were also attended to at the clinic and there were 302 patients on ARV
treatment, and approximately 415 were not on treatment.
The clinic had a standby solar in case it ran out of electricity. The provincial department
controlled the maintenance budget. Supervisors from the province visit the clinic on a
monthly basis.
The clinic was out of Intravenous Sets (IV) for the whole month. Sometimes the clinic
operated without vaccines. At times, the clinic had syringes and no vaccines, or vice versa.
The nurses were staying in the clinic to wait for emergencies.
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Having concluded the visit at the different health institutions, a meeting was conducted with
the Member of the Executive (MEC) on 12 August 2011.
6.1
Representatives from the provincial department
The following representatives from the provincial department also attended the briefings - Ms
Daisy Mafubelu, Head of Department; Ms Queen Hlamlani Nenzhelele, Operational
Manager; Ms Molly Johanna Mabasa, Senior Manager; Mr RA Matsimela, Parliamentary
Officer; Ms MMP Monale, Acting CEO; Mr T Makgolane, General Manager; Mr N
Mathoba, Acting General Manager; Mr Victor Mojakgomo Maserumule, Manager; Mr
Chuene Rammutla, Senior Manager; Mr VE Buthelezi, General Manager; Mr NP Kgaphole,
General Manager; Mr Ms Bogale, District Executive Manager; Mr Jacob Gandi Moetlo,
District Executive Manager; Mr Machille Thobejane, District Manager; Mr M Nkadimeng,
Senior General Manager; Mr Kgabo Hlahla, General Manager; Mr R Khazamula Mashaba,
General Manager; Professor F Mushwana, Chief Finance Officer and Ms Deliwe Nyathikazi,
Senior General Manager.
7.
Responses from the Department
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A number of findings were highlighted during the oversight trip by the Portfolio Committee.
These were responded to by the Department. Following below are detailed responses to
some of issues highlighted:

The province was not planning to extend the Louis Trichardt Hospital, as there was
another hospital 20 kilometres, and another one 24 kilometres from Louis Trichardt
Hospital;

The province had identified all the senior manager posts as critical positions and these
would be filled;

There was a problem of patients’ ‘by-passing’ lower levels. To address this challenge
the hospitals were working with communities and hospital boards;

There were serious issues at the pharmaceutical depot, from the time of ordering and
receiving some medication. Some medications did not reach their destination;

The province was looking at the number of on-call clinics, and looking at an option of
transforming them to 24-hrs services; and

On CCTV cameras, the department had taken a decision to improve security in
hospitals and procurement was attending to the issue.
In response to the issues raised, the following was noted:
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
PAGE: 125 of 429
The management stated that it would conduct unannounced visits at different health
facilities in the provinces, and hoped to conclude visits by the end of 2011; and

The MEC promised that the Department would take some of the findings up, and a
report would be forwarded on progress.
8.
Findings by the Committee
After the visits to the institutions, the Committee concluded with the following findings:

There were staff shortages at all visited institutions;

There were no recruitment and retention strategies at all visited institutions;

There were too many acting positions in both hospitals;

All visited institutions do not have infection control strategies;

There was a shortage of equipment as well as old equipment, especially in the kitchen
at Mankweng Hospital;

The primary healthcare was not working well especially at Mankweng and Louis
Trichardt Hospitals;

Hospitals sometimes experienced shortages of medication;

There were serious challenges with the medical depot as the depot at times did not
have essential drugs;
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
PAGE: 126 of 429
The population around Louis Trichardt Hospital was growing, and the services at the
hospital were not growing to cater for the growing population;

The budget allocated to Louis Trichardt Hospital was inadequate to run the hospital;

The CCTV cameras were not working at Louis Trichardt Hospital and this
compromised security.
9.
Recommendations
Having considered the findings, the Committee recommends the following:
The Minister of Health should ensure that the health department in the Limpopo province:
1.
attends to the issue of staff shortages as a matter of urgency at Louis Trichardt and
Mankweng hospitals and Madombidza Clinic and requests that a report be submitted
to the Speaker of the National Assembly on progress made within six months of the
adoption of the report by the National Assembly;
2.
attends to the issue of lack of CCTV cameras as a matter of urgency at Louis
Trichardt and Mankweng hospitals and Madombidza Clinic and requests that a report
be submitted to the Speaker of the National Assembly on progress made within six
months of the adoption of the report by the National Assembly;
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3.
PAGE: 127 of 429
adopts a needs-based approach to budgeting and meets with the Management of
Louis Trichardt and Mankweng hospitals and Madombidza Clinic to determine the
actual needs of the hospitals and budget accordingly.
4.
ensures that Louis Trichardt and Mankweng hospitals and Madombidza Clinic have
the relevant equipment and equipment maintenance plans in place;
5.
ensures that Louis Trichardt and Mankweng hospitals and Madombidza Clinic avoid
running out of consumables at all costs and must always make sure that there were
enough consumables to run the hospital. This would also assist in the curbing the
spreading of infections; and
6.
ensures that Louis Trichardt and Mankweng hospitals and Madombidza Clinic should
always place their orders with the medical depot on time to avoid stock-outs,
especially relating to the essential drugs;
Report to be considered.
REPORT OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT ON
THE 2010/11 ANNUAL REPORT OF THE SOUTH AFRICAN SOCIAL SECURITY
AGENCY (SASSA), DATED 28 FEBRUARY 2012
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1. Introduction
The Portfolio Committee on Social Development deliberated on the 2010/11 Annual Report
of the South African Social Security Agency (SASSA). This report presents some of the key
achievements as well as challenges encountered by SASSA (the Agency). The report will
also highlight matters of concern raised by the Committee.
2. Presentation by SASSA on its 2010/11 Annual Report
Ms V Petersen, Chief Executive Officer of SASSA, indicated that the aim of the presentation
was to provide an overview of the performance of the Agency for 2010/11. She noted, as
background information, that since the establishment of the Agency there has been a steady
increase in the demand for SASSA services and subsequently this resulted in the increase in
the workload of its staff. In 2006, the number of benefits stood at 10 975 076 and in March
2011, it had increased to 14 935 832 million. This has had negative impact on the quality of
service delivery.
She informed the Committee that the increase in the demand for services had been
exacerbated by the marginal growth in number of employees dealing directly with grants
administration versus the significant growth in the demand for services. The presentation
also noted that Agency’s social assistance system has remained largely manual and lacks
integration.
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The key strategic priorities for 2010/11 were reported as follows:

Customer Care-centred Benefits Administration and Management System;

Improved Organisational Capacity and;

Comprehensive and Integrated Social Security Administration and Management
Services.
3. Priority 1: Customer Care-centred Benefits Administration and Management
System
Some of the key projects identified under this priority include Improved Grant Application
Process (IGAP), the Agency’s payment system, automated core business system and
disability management.
The number of social assistance benefits increased from 14 057 365 in 2009/10 financial year
to 14 935 832 in 2010/11. This constitutes an increase of 6.2 over the previous financial year.
Table 1: Number of grant benefits and growth rate for financial years 2009/10 vs
2010/11
Grant type
2009/10
2010/11
Difference
% Growth Rate
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Old Age
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2 546 657
2 678 554
131 897
5.2%
1 216
958
-258
-21.2%
1 264 477
1 200 898
-63 579
5.0%
Grant-in-Aid
53 237
58 413
5 176
9.7%
Foster Child
510 760
512 874
2 114
0.4%
Care Dependency
110 731
112 185
1 454
1.3%
Child Support
9 570 287
10 371 950
801 663
8.4%
TOTAL
14 057 365
14 935 832
874 467
6.2%
War veterans
Disability Grant
The table above shows that all grants benefits uptake had increased with the exception of War
Veteran Grant which decreased by 21.2%, and the Disability Grant which decreased by 5.0%
over the period under review.
The Child Support Grant increased by 8.4%, Old Age Grant by 5.2% and Care Dependency
Grant increased by 1.3%. Foster Child Grant had the lowest growth of 0.4%.
3.1 The Agency’s Payment System
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The grant payments are still largely cash based and there is a significant progress made on
migration of migration of beneficiaries from cash payment to Automated Clearing Bureaus
(ACBs). In the year under review, a total of 47.33% of payments were made through ACBs
or banks, translating into a 16.08% increase. The cost of administering social assistance
grants through the cash payment contractors was reduced to R30.53 from R33.52 resulting in
a saving of almost 9%. Over the Medium Term Expenditure Framework (MTEF) period, the
Agency aims to review the current system and develop a new payment strategy.
3.2 Improved Grant Application Process (IGAP)
The IGAP intended to reduce turnaround time for social grant applications was piloted in one
of the districts in the Free State and it was still being reviewed for its effectiveness. In
addition. the Agency achieved on average a turnaround time of nine days, which was an
improvement from the previous 21 days turnaround time for processing of new social grant
applications. This was made possible by the implementation of a three step model comprising
of immediate capturing and verification of applications on-site, followed by the issuing of a
letter on the outcome to the applicant before leaving the Agency offices. KwaZulu-Natal and
Gauteng regions recorded the highest number of social grants applications that were
processed within 30 days whilst the Northern Cape recorded the lowest of applications
processed within the same period.
3.3
Disability Management Model
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The Disability Management Model was developed to standardise the medical assessment
process in all the regions. The Agency managed to undertake 112 363 medical review
assessments against a set target of 298 752 over the MTEF. All doctors contracted to the
Agency were trained and accredited by the Agency to conduct disability medical
assessments. In addition, the Agency implemented the standardised medical assessment
forms in all regions, excluding the Eastern Cape as the serialised medical forms were not in
sync with the MIS workflow medical from issuance system. The Agency continues to
monitor and evaluate the effectiveness of the prioritised elements of the disability
management model. The Agency has also entered into Memorandum of Understandings
(MOUs) with some of the Provincial Health Departments for assistance in conducting
disability assessments.
4. Priority 2: Improved Systems Integrity
This priority is intended to transform the Agency’s culture and enhance people’s capabilities.
The key projects under this priority are the following:
4.1 Change Management (Organisational Culture Reform)
The Agency had undertaken change management initiatives to improve skills, competencies
and professional conduct.
The ethics audit conducted within the Agency revealed a
significant decrease in the number of grievances relating to job descriptions and performance
management including staff development. The Agency made progress in inculcating the
understanding between performance expectation and actual performance. In addition, the
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ethics training was provided to 3 165 staff members across the regions. The training served
to communicate the vision, mission and expected conduct as well as the responsibility of staff
members to report incidents of breach of the Code of Conduct and Ethics.
4.2 Integrity Model Implemented
The Agency responded proactively to fraud and corruption by implementing the Integrity
Model. The integrity model introduced a paradigm shift, from focusing on detection and
investigations to validation of the eligibility of beneficiaries for social grants including life
verification and to confirm the existence of the beneficiaries. A total of 132 603 beneficiaries
were verified for eligibility and existence, with a total of 7 133 found to be fraudulent. The
Agency, through the Special Investigations Unit (SIU) continued with investigating and
prosecuting persons found to have defrauded the system. A total of 2 828 persons were
brought before the courts in the year under review bringing the total convictions to 17 477
since the inception of the project in June 2005.
In addition, 6 368 people signed
acknowledgement of debts (AODs) valued at R56.7 million in repayment of fraudulent
grants.
4.3 Legal Services Model Implemented
The Agency, through the implementation of the Legal Services Model drafted and vetted 101
contracts and Service Level Agreements in accordance with processes contained in the
Framework for Contract Management. It managed to reduce the number of litigation matters
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from 2 744 to 1 944 during the 2010/11 financial year. Liability costs on litigation matters
were also reduced from R43 254 321.12 to R12 164 381.08 in the reporting period translating
into 71.8% decrease.
However, there are still some challenges that need to be addressed. These include the lack of
human capacity in the Contract Management Unit to advise on proper management of
contracts, which had resulted in the rise of poorly managed contracts.
5. Priority 3: Increased Access to Social Security
5.1
Integrated Community Registration Outreach Programme (ICROP)
To increase access and ensure equity to social assistance services especially in rural and
semi-rural areas, the Integrated Community Registration Outreach Programme (ICROP) was
implemented. A total number of 675 outreach programmes were conducted in 121
municipalities across the country during the period under review. Seventy Two Thousand
Four Hundred and Twenty Five (72 425) new beneficiaries registered through ICROP. The
implementation of ICROP had not only increased the accessibility of social grants but also
led to a significant increase in Social Relief of Distress (SRD) assistance to poor households.
An estimated 3 766 households that experienced undue hardships were issued with temporary
relief measures in the form of vouchers, food parcels and assistance with other material
needs. The success of ICROP can be attributed to effective partnership with the Departments
of Social Development, Home Affairs, Health and, South African Police Service (SAPS) for
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integrated service delivery. Regions such as the North West also established 11 satellite
offices in an effort to improve access to the Agency’s services.
5.2
Human Capital Reforms
5.2.1 Leadership
The Auditor-General South Africa (AGSA) report for 2009/10, reported weaknesses in
leadership within the Agency, which contributed to a disclaimer audit opinion. Subsequently,
the Agency focused on providing targeted skills development initiatives to enhance the
leadership skills in different employee categories. This entailed the implementation of various
leadership programmes which included the following:
 Emerging Management Development Programme (levels 1-8);
 Advanced Management Development Programme (levels 9-12); and the
 Executive Leadership Development Programme (levels 13-14).
5.2.2 Skills Development
A staffing analysis on the posts within the Grants Administration Value Chain was
conducted. This unit represents 70% of the total employee capacity within the entire Agency.
The staffing analysis identified service delivery requirements and capacity gaps. An
Integrated Talent Management Strategy focusing primarily on workshop optimisation was
developed to serve as an integral part of a broader organisational enhancement strategy.
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6. Key Policy Developments and Legislative changes
On 16 September 2010, the Social Assistance Amendment Act (No. 5 of 2010) came into
effect. This was to enable applicants and beneficiaries who disagreed with the decision of the
Agency to request it to reconsider its decision. An amendment to the Regulations of the
Social Assistance Act, 2004 was published in the Government Gazette No. 34120 No.R232
dated 15 March 2011, applicable retrospectively from 01 December 2010. This amendment
deals with the eligibility of Social Relief of Distress to a person who has been affected by a
disaster as defined in the Fund-raising Act, 1978 (Act No.107 of 1978) or the Disaster
Management Act, 2002 (Act No.57 of 2002). Another interesting development in the year
under review was the recognition of the Agency’s Bargaining Forum as per Resolution 1 of
2006.
7. The Agency’s revenue and expenditure
The Agency’s total revenue for the period under review which is mainly transfers from
Department of Social Development including its own revenue amounted to R5. 6 billion
while total expenditure amounted to R5. 2 billion or 91% of the budget. This leaves a total
budget savings of R462. 7 million. The bulk of the administration budget is allocated to cash
contractors’ fees and that is where the majority of the saving is derived. In this regard, the
Agency during the period under review realised a reduction on the expenditure related to the
payment of cash payment contractor’s fees. This was as a result of the negotiations between
the Agency and the contractors on fees paid to them for the disbursement of grants to
beneficiaries. At the beginning of the period under review, the Agency had an accumulated
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budget deficit of R884 million. This results from the budgetary constraints experienced by the
Agency since the 2007/08 financial year.
In an effort to deal effectively with budget
constraints, the Agency had to put in place measures that ensured efficient spending such as
scaling down on unnecessary expenditure. This was done by continuing to implement cost
containment measures as part of the broader cash stabilisation strategy. The cash stabilisation
strategy comprises the following pillars which are briefly explained hereunder:
7.1
Implementation o Austerity measures across the Agency
Although cost containment measures were implemented, the positive impact and gains that
would have been derived from implementing the measures was negatively impacted upon by
budget adjustments or funds shifts to items which were targeted to derive savings or incur
less expenditure such as communication, travel and subsistence. Travel and subsistence
expenses were incurred mainly due to extensive travel arising from audit activities. Austerity
measured played a major role in and underpinned the approach to the allocation process.
7.2
Migration of beneficiaries to banks with a view to reduce exorbitant disbursement
fees charged by Cash Payment Contractors
The Agency initiated the process of accelerating efficiencies in its operations in particular
with the disbursement of social grants by encouraging beneficiaries to shift to other cost
saving payment methods. In the year under review, a total of 47. 33% payments were made
through ACBs or banks whereas during 2009, 31. 25% was paid through the ACBs or banks.
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This translated into a 16.08% increase. This number is envisaged to increase as beneficiaries,
especially those residing in urban areas, are becoming more aware of the better option on
transacting through the banks. The banking infrastructure in rural areas is also improving and
expanding.
7.3 Recovery of grants monies paid into dormant beneficiary accounts
The aim of this pillar is to recover grant monies from beneficiaries who were found ineligible
to receive the grant. The Agency collaborated with the law enforcement agencies in ensuring
that authority is granted to recover these monies. An amount of R106 896.52 was recovered
from dormant beneficiaries’ accounts. First National Bank and Postbank are still to provide
data on the recoveries. A total of 2 000 deceased beneficiaries with dormant accounts were
identified as being overpaid and a process had been initiated to recover these overpayments
8. Findings of the Auditor General
The Auditor General issued an unqualified audit opinion to SASSA for the 2010/11 financial
year. The Agency had a disclaimer audit opinion for 2009/10 financial year and had an
unqualified audit opinion for the 2008/09 financial year.
Matters of emphasis included:
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The audit finding included matters of emphasis that was brought to the attention of the users
that various financial statement items were restated due to the correction of prior period
errors. It was further emphasised that SASSA had material impairments of debtors to the
amount of R3 774 287 (2009/10 – R63 922 862). The prior year impairment was done as part
of the restatement of corresponding figures.
Predetermined objectives included:
 Reliability of information
 Validity: Actual reported performance had occurred and pertained to the entity.
For the reported target: grant beneficiaries on SOCPEN, that were material by nature
and amount, the validity of the reported target could not be established as sufficient
appropriate audit evidence and/or relevant source documentation could not be provided.
Grants beneficiaries were audited based on a statistical sample and it could not be
confirmed for 1.52% of the sample audited that the beneficiary qualified for the grant.
9. Measures to address challenges
To address challenges that the Agency had encountered, it was reported that the Budget
Performance Review would be important for designing the most appropriate structure for
SASSA. SASSA had implemented various steps to improve service delivery. It had optimised
business processes, and had standardised the Grant Payment System. It had developed a new
payment model to improve its costs efficiencies, whilst the implementation of austerity
measures also had a bearing on the new envisaged innovations and projects. The moratorium
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on the filling of posts remained a major challenge in respect of its human resource (HR)
capacity, and that had an effect on overall performance of SASSA.
10. Committee’s Observations
The Committee commended SASSA for the unqualified audit report. However, it drew
attention to the Auditor-General’s remarks that a number of grant beneficiary files requested
from SASSA were not presented for audit purposes. Furthermore, numerous files presented
by SASSA did not contain the necessary information that is required to form the basis for a
valid grant payment.
The Committee noted with concern the existing dual accountability between the department
and SASSA over the flow of funds (transfers and subsidies), which resulted in the department
receiving an qualified audit report in 2009/10 and 2010/11 financial years.
The Committee further noted that the department will strengthen its oversight over SASSA
by developing internal audit processes and financial inspections. This is critical to ensure that
the department strengthens its governance over its entities.
The Committee expressed its satisfaction for the improvement of SASSA’s audit report from
a disclaimer to unqualified audit opinion.
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Recommendations
The Committee recommends the following:

The issue of dual accountability between the department and SASSA should be
addressed so as to clarify the problem of accountability over the flow of funds
(through transfers and subsidies) to SASSA.

The audit committees of the department and SASSA should meet regularly to
monitor, review and recommend improvements with regards to internal controls and
systems.

The department and SASSA should ensure that there should be skills transfer from
contractors to SASSA employees so that there would be sustained effective
functioning of SASSA.

The Committee noted that SASSA had been paying the Special Investigating Unit
(SIU) R3 million monthly since its inception to conduct investigation on fraud and
corruption with regards to social grants. This is very costly. It therefore, recommends
that the department should fast track and finalise the establishment of the Inspectorate
for Social Security provided for in the Social Assistance Act (N0. 13 of 2004), so that
SASSA can conduct its own investigations to save costs.
Report to be considered.
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REPORT OF THE PORTFOLIO COMMITTEE ON SOCIAL
DEVELOPMENT ON THE 2009/10 ANNUAL REPORT OF THE NATIONAL
DEVELOPMENT AGENCY (NDA), DATED 28 FEBRUARY 2012
The Portfolio Committee on Social Development having considered and deliberated on the
2010/11 Annual Reports of the National Development Agency (NDA) on 13 October 2011,
wishes to report as follows:
1. Introduction
The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of
Parliament is to build an oversight process that ensures a quality process of scrutinising and
overseeing Government’s action and that is driven by the ideal of realising a better quality of
life for all people of South Africa.
The Committee, as part of exercising its oversight function received a briefing from the NDA
on its 2010/11 Annual Report. This report presents some of the key achievements and
challenges encountered by the entity in meeting its set strategic objectives. It will also
highlight the observations made by the Committee.
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2. Strategic Goals of the National Development Agency
The National Development Agency (NDA) is a Schedule 3 (A) Public Entity established in
terms of Section 2 of the National Development Agency Act [No.108 of 1998]. The NDA’s
primary’s mandate is to contribute towards the eradication of poverty and its causes by
granting funds to civil society organizations for the purposes of carrying out projects or
programmes aimed at meeting development of poor communities, and strengthening the
institutional capacity of other civil society organizations involved in direct service provision
to poor communities.
For 2010/11, the NDA operated under five strategic goals, namely:
Goal 1: To build the capacity of the Civil Society Organisations (CSOs) to enable them
to carry out development work effectively
The following achievements were made to achieve this goal:
Early Development networks and sites supported:
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
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Nine Early Childhood Development (ECD) networks were funded and supported for
an amount of R9 522 356. These networks provided support to 224 sites. Over and
above this, NDA directly funded 5 ECD sites for an amount of R2 283 420.

Capacity building interventions provided by the NDA to the ECD sites improved the
quality of ECD provision at the sites. Capacity building helped ECD sites to comply
with the norms and standards of running an ECD services. The NDA also supported
the sites in food security. In turn, these funded ECD sites provided educational
programmes and activities that enhanced the physical, cognitive and emotional
development of 439 children.
Thirty Rural Development CSOs and Cooperatives supported:

The NDA had set target to support 30 CSOs, however due to budget cuts 24 CSOs,
inclusive 18 involved in rural development and 6 involved in economic development
were supported for an amount of R26 152 995. These supported organisations are
working with 5 147 beneficiaries.

It trained 68 CSOs and Co-operatives to enhance their long-term sustainability.
Ten CSOs (Gender based violence, child abuse and neglect, HIV and AIDS, orphans
and vulnerable children (OVC), elderly persons, people with disabilities and youth
development and empowerment) supported
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
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The NDA supported three CSOs providing aid to the vulnerable groups. This
benefited 603 beneficiaries.

It trained 177 volunteers and interns out of a target of 100 in core competencies in
sector/programme specific areas.

The training included provision of capacity building interventions to CSOs working
with groups to improve their institutional capacity.

Because a 51% cut of the NDA’s budget, the Agency underperformed by 36% under
this strategic objective.
Five intermediary CSOs supported

The NDA supported two intermediary CSOs for an amount of R1 481 000.

This benefited 10 CSOs who are affiliated to the intermediary CSOs. The Agency,
had however, targeted to strengthen 50 CSOs affiliated to networks and consortia but
it could not reach this target due to budget cuts.
Goal 2: To grant funds to contribute towards the eradication of poverty
The following achievements were made to achieve this goal:
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Thirty Sustainable CSOs and Co-operatives in rural development funded
The NDA supported 24 projects involved in rural development for an amount of R26 024
016. A significant number of (5 147) direct beneficiaries were supported.
Geographic, demographic and socio-economic targets achieved
With regard to this strategic objective, NDA funding to the projects in targeted sectors and
areas resulted in the creation of 1 613 jobs and secondary employment opportunities.
Ten Land Reform projects funded
The NDA funded six out of targeted 10 Land Reform projects for an amount of R7 848 006.
Forty percent (40%) of the targeted amount was not achieved due to budgetary limitations.
Fifteen Food Security Projects in ECD sites supported
The NDA achieved its target of supporting 15 Food Security Programmes based in the ECD
sites. This benefited 439 direct beneficiaries.
Ten CSOs supporting vulnerable groups supported
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
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The NDA supported three CSOs supporting vulnerable groups for an amount of R3
514 235. The remaining 70% was not funded due to the budgetary limitations. This
benefited 603 beneficiaries.

Eight percent (8%) of the targeted 25% of funding was allocated to CSOs supporting
vulnerable groups. The remaining 85% target was not achieved due to budgetary
limitations.
Goal 3: To facilitate research towards poverty eradication
The following achievements were made to achieve this goal:
Organise three dialogues or seminars

Nine provincial policy dialogues with CSOs were carried out in preparation for the
Rural Economic Development summit that took place in October 2010.

A national summit on Rural Economic Development (RED) was successfully hosted
in partnership with Kaelo Worldwide Media.

A seminar titled “The Developmental State and the Fight against Poverty in South
Africa” was held.

Provincial strategic policy dialogues took place in:
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o Mpumalanga – Food Security;
o KwaZulu-Natal – Women and Children in Vulnerable groups; and
o Northern Cape – formulation of development forum for NCNGO Coalition.
Implement positive media coverage for the NDA and its funded projects.

Advertorials were taken in five publications in order to enhance repetition of NDA
key messages.

Various publications were produced and distributed in order to update key
stakeholders on NDA progress against deliverables.
Partnership agreements implemented
The NDA entered into partnership agreements with the following stakeholder:

Rural Development and Land Reform

Kwa Zulu Natal Social Development

Kaelo Worldwide media
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Goal 4: To position the NDA as a premier development agency and mobilize resources
Under this strategic goal, the NDA had set a target to raise R20 million from identified
sources. This was not achieved because of the economic recession, which made it difficult for
sponsors to provide financial support. However, it was reported that through partnerships it
had entered into, the NDA managed to receive “in-kind” support, meaning support either in
the form of technical support or top up funding from these partnerships.
Goal 5: To promote and maintain organizational excellence and sustainability
The following achievements were made to achieve this goal:
Implement and maintain systems and processes
The following systems and processes were implemented:

Telephone monitoring system

Wireless data link for increased bandwidth usage

Integration of VIP payroll system to Great Plains Financial system

Financial reporting tool

Amended Financial Management and Procurement policies
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Develop and implement the cost allocation strategy
Various cost saving initiatives were implemented in the financial year, resulting in savings of:

7% on travelling costs

9% of subsistence and travel costs

20% reduction on travel costs

25% on postage and courier costs
3. Financial overview
The initial budget allocated for project funding was R67 Million. This amount was later
reduced during the financial year to R33 million due to the budget cut implemented by the
National Treasury in the 2010/2011 financial year. The shortfall was then covered by a
nominal amount which came from the discontinued projects.
The funding received from the National Treasury for the 2011/12 financial year of R83.5
million represented a reduction of 42% compared to the previous year funding of R144.8
million. To supplement this shortfall, the NDA management took a decision to fund the
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shortfall from accumulated reserves from the unused portion of the seed capital received from
the Independent Development Trust (IDT) at the inception of the NDA and a nominal amount
from discontinued projects.
Despite the aforementioned, it was indicated that the NDA management was still pursuing a
Financial Management Model whereby a large percentage of its available financial resources
was going to be channeled towards service delivery. Attainment of the envisaged split
between mandate and administration expenditure was a challenge in 2011/12 due to the
reduction in funding from National Treasury. The Committee was assured that by 2013/14,
this objective would have been resolved.
4.
Committee Observations
The Committee noted that there is a need for the NDA to refocus its strategic objectives and
align them to the mandate of the Department of Social Development and Government
priorities. This is so, because of the need to shift the NDA’s perception as sorely a poverty
alleviation entity. The mandate of the NDA should be expanded to include Early Childhood
Development programme, as it had already focused on it in the 2010/11 financial year.
It further noted that the budget of the NDA was reduced to R33 million. It thus advised that
the Agency should have revised its strategic plan to reflect the changes in the budget and set
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new targets to avoid discrepancies in reporting on the initial strategic plan and the
achievements.
It also noted that the NDA took a decision to ring fence the funding for capacity building of
projects as capacity building is important to ensure that projects are sustainable and are also
able to source funding.
5.
Recommendation
The Committee recommends the following:
The NDA should consider awarding funding to projects based on the poverty levels instead of
population size, as it had been doing. This will enable projects in provinces where there are
high poverty levels to receive funding.
Report to be considered
TUESDAY, 20 MARCH 2012
ANNOUNCEMENTS
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National Assembly
The Speaker
1.
Introduction of Bills
(1)
The Minister of Justice and Constitutional Development
(a)
Judicial Matters Amendment Bill [B 11 – 2012] (National Assembly –
proposed sec 75) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 35119 of 6 March 2012.]
Introduction and referral to the Portfolio Committee on Justice and
Constitutional Development of the National Assembly, as well as referral
to the Joint Tagging Mechanism (JTM) for classification in terms of Joint
Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill
may be submitted to the JTM within three parliamentary working days.
2.
Correspondence from Public Protector
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(a)
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A letter dated 19 March 2012 has been received from the Public Protector,
informing members of the Assembly that she -
(i)
has agreed to a request by the Deputy President of the Republic, Mr K P
Motlanthe, to conduct a preliminary investigation into allegations that a
bribe had been solicited to obtain government support for a South African
company to secure a sanctions-busting deal with Iran; and
(ii)
will inform the House of the outcome of her investigation by not later than
16 April 2012.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Defence and Military Veterans
(a)
Strategic Plan and Annual Performance Plan of ARMSCOR – 2012/13 to
2016/17.
2.
The Minister of Water and Environmental Affairs
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(a)
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Government Notice No R.139 published in Government Gazette No 35062 dated
24 February 2012: Regulations regarding the Safety of Dams, in terms of section
123(1) of the National Water Act, 1998 (Act No 36 of 1998).
(b)
Government Notice No R.138 published in Government Gazette No 35061 dated
24 February 2012: Regulations regarding the Safety of Dams, in terms of section
123(1) of the National Water Act, 1998 (Act No 36 of 1998) (Sepedi version).
National Assembly
1.
The Speaker
(a)
Petition objecting to the legalisation of dog racing, submitted in terms of Rule 312
(Mr S B Farrow).
Referred to the Portfolio Committee on Trade and Industry for consideration
and report.
THURSDAY, 22 MARCH 2012
ANNOUNCEMENTS
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National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Membership of Committees
(a)
Ms M Kubayi and Mr M C Maine have been elected as the Co-Chairpersons of
the Ad Hoc Joint Committee for the appointment of candidates to the National
Youth Development Agency Board, with effect from 20 March 2012.
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
Report of the Parliamentary Oversight Authority on its activities for 2011.
CREDA INSERT - T120322e-insert1 – PAGES 765 - 773
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COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Arts and Culture on an oversight visit from 26 28 July 2011, to public entities in the Western Cape Province, dated 28 February 2012
The Portfolio Committee on Arts and Culture having conducted an oversight visit to the
Robben Island Museum, Afrikaans Taal Museum and the South African Heritage Resources
Agency in the Western Cape Province reports as follows.
1. Introduction
The Portfolio Committee on Arts and Culture, inspired by its Constitutional mandate and
Rules of Parliament to ensure effective oversight and greater accountability of entities funded
through transfers from the Department of Arts and Culture, embarked on an oversight of
entities residing under the auspices of the aforementioned Government Department in the
Western Cape Province for the period 26 to 28 July 2011.
2. Terms of Reference
The entities that the Committee conducted oversight over were the Robben Island Museum
(RIM), Afrikaans Taal Museum (ATM), and the South African Heritage Resources Agency
(SAHRA).
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The objective of the oversight visit was multifold. The visit sought to ensure that:
 Entities were carrying out the mandates for which they were established.
 To improve transparency within government operations and enhance public trust in
government.
 To assess whether the entities complied with Government Priorities.
 To assess the challenges that the entities were faced with.
Core to all of the above the Committee’s intention was to detect and prevent abuse, arbitrary
behavior or illegal and unconstitutional conduct of the abovementioned entities.
3. Delegation
The delegation consisted of:
Committee Members:
Hon Ms TB Sunduza (ANC)
-
Chairperson and leader of the delegation
Hon Ms LN Moss (ANC)
-
Committee Whip
Hon Ms TE Lishiva (ANC)
Hon Ms TLP Nwamitwa- Shilubana (ANC)
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Hon Mr DW Mavunda (ANC)
Hon Dr A Lotriet (DA)
Hon Mr P Ntshiqela (COPE)
Hon Ms HS Msweli (IFP)
Hon Mr SZ Ntapane (UDM)
Provincial Government: Western Cape
Hon Dr I Meyer
-
MEC, Cultural Affairs and Sport
Mr G Wagner
-
Spokesperson of the MEC
Mr W Vrieslaar
-
Ministerial Staff
Mr J Van Der Westhuizen
-
Acting Committee Secretary
Mr V Muhadi
-
Committee Researcher
Ms V Magadana
-
Executive Secretary to the Chairperson
Parliamentary Officials
4. Findings
4.1 The Robben Island Museum (RIM)
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Robben Island is an Island in Table Bay situated 6.9 km west of the coast of Bloubergstrand,
Cape Town. The name is Dutch for “Seal Island”. The Island has a long history of being used
as a place of punishment. In 1657 Jan Van Riebeeck decided to use the Island as a place of
banishment, sending slaves and exiles to dig out the white stone found there.
In 1959 the Island became a maximum security prison and between 1961 and 1991 over three
thousand men were incarcerated there as political prisoners. Amongst the incarcerated were
the first democratically elected President of the Republic of South Africa, Mr Nelson
Mandela and current South African Deputy President Mr Kgalema Mothlanthe, alongside
many other political prisoners who spent decades imprisoned there during the apartheid era.
Among those political prisoners was also current South African President Mr Jacob Zuma,
who was imprisoned there for ten years.
On 4 September 1996 Cabinet decided that Robben Island should be “developed into a
National Museum, National Monument and World Heritage Site, which could become a
cultural and conservation showcase for the new South African Democracy…” On 1 January
1997 the Robben Island Museum opened its doors to the public. In the month of December
1999 Robben Island was inscribed as a World Heritage Site by the United Nations
Educational, Scientific and Cultural Organization (UNESCO) under criteria (iii) and (vi) of
the “World Heritage Conventions Operational Guidelines” .
The Museum had however received “Qualification and Disclaimer” audit opinions from the
Auditor General for the past four years. This had led Robben Island Museum into a deep
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financial crisis. The Auditor General was of the opinion that poor management and
administration of finances was the cause of this financial crisis. Following interventions on
the part of the Minister of Arts and Culture, a new Council was established. The Museum
also appointed a new Chief Executive Officer (CEO).
Upon arrival on Robben Island the Committee was welcomed by the Chief Executive Officer,
Mr S Mkhize, who was accompanied by Mr M Llale, Chief Financial Officer; Mr L Mpahlwa
Chairperson of the Sub Committee on Heritage of the Robben Island Museum Council;
Advocate Ms S Goordeen, Company Secretary; Mr R Whitting, Senior Manager: Heritage
Department; Mr S Khangala , Senior Manager: Marketing; Mr J Munsamy, Senior Manager:
Ferries and Cargo; Mr M Mabe, Senior Manager: Human Resources; Ms N Noal, Acting
Head of Department: Public Heritage Education Department; Ms N Blacky, Unit Manager:
Administration Support.
The Committee was taken on a guided tour of the Island by Mr T Mabaso who was also a
political prisoner on the Island. The guided tour included the Visitors Centre, the Maximum
Prison, Medium B Prison, D Section which housed Namibian Political Prisoners, the
Sobukwe Complex, Power Station, WW II guns, the Light House, the Blue Stone Quarry and
a drive around the Island to visit environmental sites.
Upon conclusion, the Robben Island Museum made a presentation to the Committee wherein
they indicated the Vision, Mission and the diversity and scope of the Museum. Mr Mkhize
indicated to the Committee that the new Robben Island Council with Ms Thandi Modise and
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Mr Ben Martins as Chairperson and Deputy Chairperson respectively was inaugurated on the
15th March 2010. The new Chief Executive Officer commenced employment on the 1st
November 2010. The Robben Island Museum had also appointed a new Chief Executive
officer in January 2011.
Mr Mkhize commented that the new Council had been very active in its participation and
attendance of various programmes and activities of the Museum and that prior to his
appointment Council also provided hands-on leadership.
The Chief Executive Officer indicated that Senior Management was in the process of
reviewing the Robben Island Museum strategic and operational challenges and that they also
aimed to introduce a Performance Management System. He indicated that core to the
aforementioned was a review of their organizational structure, the alignment of their strategic
plan with their budget, Human Resources Strategy and the Integrated Conservation
Management Plan.
Mr Mkhize reported that the Robben Island Museum was also in the process of rehabilitation
and restoration of their Built Environment Projects. He indicated that the Maximum Security
Prison was rehabilitated, restored and handed over in June 2009. The Guesthouse was
rehabilitated and restoration of the entire building, including the roof, had been completed.
Among the other building environment projects that the Museum has undertaken was the
upgrade of the Harbor to accommodate people living with disabilities and also the restoration
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of the female asylum and refurbishment of the WWII guns. The first phase of the restoration
of the guns was completed in March 2011.
Mr Mkhize pointed out that funding for the restoration of the bluestone quarry was in place
and that he was happy to report that the restoration process would commence shortly.
The Chief Executive Officer indicated that the Robben Island Museum was also faced with
challenges, which included:

Environmental challenges with the ever increasing numbers of wild animals on the
Island.

Maintenance of the Island and in this regard the Department of Arts and Culture and
the Department of Public Works has proposed a Facilities Management Contract.

Growing visitor numbers and the demands that this put on the sensitive eco-system.

Financial sustainability

Unfunded
mandates:
This
included
Municipal
Services,
Border
Patrol,
Environmental Management, the School and the Post Office.

And the implementation of the Integrated Conservation Management Plan with its
budgetary implications.
He also highlighted the achievements of the Robben Island Museum, which included:
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The appointment of the Robben Island Council, the Chief Executive Officer and the
Chief Financial Officer.

The natural environment problems were brought under control.

Major restoration and the upgrading of facilities on the Island.

An increase in the demand for events and conferences.

Stabilization of the Financial Management Systems.

No mechanical breakdowns of ferries during the peak season.
The Chief Executive Officer indicated that the Robben Island Museum was in the process of
drafting a Memorandum of Understanding with the South African Heritage Resources
Agency (SAHRA), the University of the Western Cape, Department of Public Works and the
Department of Agriculture, Forestry and Fisheries. He also said that the Department of
Energy had approached the Robben Island Museum to be part of its Working for Energy
Project through the South African National Energy Research Institute (SANERI).
The Chief Executive Officer indicated that the Robben Island Museum Management was
looking at a clustered approach to the governance of the Island. He said that the various
Government Departments including the Department of Arts and Culture, the Department of
Public Works, the Department of Water and Environmental Affairs and the South African
Police Services should all be responsible for their respective mandates on the Island and its
surrounds.
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On International Comparative studies the Chief Executive Officer indicated that the Robben
Island Council was planning to visit all sites of slavery or liberation struggles in West and
East Africa. He also indicated that relations with Namibia have been strengthened and that
more areas of cooperation were being explored.
During the ensuing discussions the Committee wanted to know if the Auditor-General also
conducted visits four times a year to the Robben Island Museum; What the nature of the
relationship with the Department of Energy entailed; Wanted clarity on the generation of
electricity on the Island; How many critically funded posts were vacant and what had been
done to remedy the situation; How the Robben Island Museum was managing if they also
have to attend to unfunded mandates; Whether there was a timeframe attached to the
diversification of tours to Robben Island;
Mr Mkhize indicated that the Auditor General was conducting quarterly visits to the Robben
Island Museum. He further indicated that the Museum was still faced with a challenge in
filling the critically funded posts.
4.2 The Afrikaans Taal Museum and Monument (ATM)
The Afrikaans Taal Museum and Monument is located 66 Km outside of Cape Town. The
Monument is located on a hill overlooking Paarl, Western Cape Province. The purpose of the
Afrikaans Language Monument and Museum was originally to pay tribute to the people who
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played such an important role in the process of getting Afrikaans recognized as an official
language. The evolution of Afrikaans from Dutch could be traced there. Afrikaans is
presented as a living language on these historic premises.
One important group in this respect was the “Association of True Afrikaners” that was
founded in the house which is now utilized as the Afrikaans Language Museum. The
Association for True Afrikaners was founded on the 14th August 1875. Their circumstances
and the spirit of their times are portrayed as accurately as possible so that visitors could get a
clearer picture of the work they did and the obstacles they had to overcome.
It is also the purpose of the Museum to present various aspects of the Language, its
development, its variants and its character in the modern context, so that visitors could
understand that it is indeed a living, growing language that is constantly adapting itself to the
modern world.
The Afrikaans Taal Museum received a “Qualified” audit opinion from the Auditor- General
for the 2009/2010 year under review. The Auditor- General based his opinion on the fact that
the Museum did not have adequate systems of control over funding and marketing income on
which he/she could rely for the purpose of his/her audit. There were also no satisfactory
alternative audit procedures that the Auditor- General could use to obtain reasonable
assurances that all funding and marketing income were properly recorded. The Museum also
lacked efficient and transparent systems and internal controls that complied with the Public
Finance Management Act (PFMA) and Treasury regulations.
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The delegation was welcomed by Mr J Louw, Chief Executive Officer of the Afrikaans Taal
Museum and he was accompanied by Ms T Louw, Chief Financial Officer and Ms I Botha,
Head: Marketing and Communications.
In a brief presentation to the Portfolio Committee the Chief Executive Officer addressed the
Committee on the challenges that the Taal Museum was experiencing and the following was
cited:
The lack of funds inhibited

The Museum’s ability to employ permanent staff

The Museum’s skills development plans

The Museum’s marketing programmes

The Museum’s international cooperation and representation programmes

The Museum’s projects
He also indicated that there had been changes in Tourism trends and this had an adverse
effect on the number of visitors to the Museum. He attributed the decline in visitor numbers
to the recent global recession.
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Mr Louw also highlighted their successes. He indicated that they have embarked on
sustainable events that guaranteed income, and that they have increased visibility of the
Museum through effective public relations and media exposure.
Mr Louw reported that the Museum was opening a new Interpretation Centre for the
Taalmonument and that the Building Contractor would conclude building towards the end of
September. He indicated that the Centre would comprise of two offices for staff members
who were running operations from a wendy house at the Monument and the Taalmuseum in
town. The Centre would also consist of a lecture hall that was earmarked for educational
programmes and small conferences.
He also indicated that through their “Sponsor-a-Bus” project over 6000 School Pupils over a
period of six years from as far as Vanrhynsdorp ( 273km from Paarl) and Hawston (100 km
from Paarl) , who would not otherwise been able to visit the Taal Museum and Monument,
have experienced the trip thanks to the Museum’s innovative “Sponsor-a-Bus” project. This
project, he said, had been made possible through generous contributions from the National
Department of Arts and Culture, the Drakenstein Municipality, the Cape Winelands District
Municipality and Het Jan Marais Nasionale Fonds.
Mr Louw indicated that transport costs have escalated drastically, in recent years, and that
they had to attain additional sponsorship to ensure the sustainability of the project. In addition
to aforementioned project the Museum also had various other projects that included activities
for school children on Nelson Mandela Day.
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Mr Louw said that the Museum offered Internships and Part Time employment to Tourism
Students and that they were also fostering relations with Local and Regional Tourism
Organisations.
Mr Louw also pointed out that the Taal Museum had also concluded various international
partnership agreements with the Dutch and Belgian Embassies and Consulate- Generals. He
indicated that the Museum was also regularly hosting overseas researchers and also published
articles in International Publications.
During the ensuing discussions members were interested to know if the Taal Museum liaised
with the various Universities in the country, If the Taal Museum has approached the National
Lotteries Distribution Trust Fund for funding, If the new building would alleviate Taal
Museum of some of their challenges; If the Taal Museum has approached the DirectorGeneral of the Department of Arts and Culture to request for more funds and if the Taal
Museum also liaised with other Government Departments.
The Chief Executive Officer indicated that the Museum was liaising with the Department of
Education and the Department of Transport. He also alluded to the inaccessibility of the
National Lotteries Distribution Trust Fund. He informed the Committee that the Museum had
missed the deadlines for submission of application for funding on four occasions. He pointed
out that there was a lot of uncertainty, on their part, surrounding the opening dates for the
submission of application for funding from the National Lotteries.
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The two offices he said would be occupied by the Marketing Manager and her Assistant. The
Museum also intended utilizing one of the guides at the Monument as a receptionist. He
pointed out that the Museum intends building an additional two offices at the Monument and
that these would be built with the grants that the Taalmuseum received.
Members wanted to know if the funds that the Taal Museum received from the Department of
Arts and Culture only covered salaries; a breakdown of the Museum’s staff complement;
What the Museum were doing to reach Schools from previously disadvantaged communities
The Chief Executive Officer reported that 75% of their budget was allocated to the payment
of salaries and that the remaining 25% were utilized for the operations of the Museum. He
indicated that the Museum employed 21 staff members and that 9 were professionals and 12
semi professionals. He also indicated that they currently had no disabled people in their
employ. This was attributed to the fact that no persons living with disabilities have ever
shown an interest in being employed by the Museum mainly due to the size of their facilities.
Mr Louw indicated that the Museum did indeed received visits from Black Schools and that
their outreach programmes stretched as far as the Karoo and that all their exhibitions were
offered in the three predominantly spoken languages in the Western Cape Province namely
Afrikaans, English and Isixhosa. He pointed out that most High Schools that offer Tourism as
a subject were targeted and that most of the District Municipalities were of immense help in
that regard.
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Upon conclusion of deliberations the Committee was taken on a physical site visit of the Taal
Museum by Ms Janine September, a tour guide employed at the Museum. She took the
delegation through the house where the “Association of true Afrikaners” was established. She
indicated that the ground floor has in recent years been restored to the state that it had been
during the last quarter of the 19th century. The rooms on the ground floor that had been
restored to their former state were the entrance hall, the dining room, the lounge and Mr
Gideon Malherbe‘s bed room. Ms September pointed out that the rooms have been
refurnished with original pieces of furniture and ornaments, of that era, as far as possible.
Where it was impossible to obtain the original furniture, replicas have been made. Most of
the pieces have been donated or made available by members of the family or the general
public.
Ms September then guided the Committee to the top floor of the Museum. This floor she
indicated presented the story and the personalities behind the development of the language.
The exhibits were imaginatively presented as games, soundtracks and interactive displays.
The exhibits were translated in English so speaking Afrikaans was not a prerequisite to
interact with the exhibits.
The delegation then proceeded to the Taal Monument where Ms Verinque Hendriks was the
tour guide. She explained in detail the significance and symbolism attached to the structure.
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On the left (West) of the approach to the Monument stood three columns representing the
languages and Cultures of Western Europe namely Dutch, French, German, Portuguese and
others. The columns progressively diminished in height to express the diminishing influence
of the European languages on Afrikaans.
To the right (East) of the approach was a podium which represented the Southern tip of
Africa. On this podium was three convex mounds and Ms Hendriks explained that these
round convex mounds symbolized the influence of the Khoi, Nguni and Sotho languages.
These structures progressively increased in size and thereby indicated the increasing African
influence on Afrikaans as a Language. Ms Hendriks pointed out that the mounds were
positioned in an arc and that this connected with the Monuments’ main curve (symbolizing
Afrikaans), thereby connecting them physically as well as spiritually.
Ms Hendriks further informed the Committee that where the two arcs of Western Europe and
Africa met, a bridge was formed and that this symbolized the fusion of Languages from the
two continents.
The Malay language and culture was represented by a wall on the stairs leading towards the
Monument. This wall was positioned between the two arcs of Western Europe and Africa so
that it was separate, but yet united with those two forces, which combined to form a bridge
symbolically depicting the basis for Afrikaans.
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Ms Hendriks further elaborated on the symbolism of the main column. She informed the
Committee that it represented the accelerated growth of Afrikaans. The column stood in a
pool of water, which further reinforced the concept of Afrikaans as a living, growing entity
requiring sustenance for its continued existence. She said that the play of light inside the
monument, caused by the pond and openings in the main column, symbolized the language as
a “gleaming tool”
A second shorter column represented the Republic of South Africa and stood in the same
pond. It was hollow and open to Africa and this indicated the continuous interaction and
discourse that took place between Afrikaans, South Africa and Africa.
4.3 The South African Heritage Resources Agency (SAHRA)
The delegation was welcomed by Ms LS Van Damme, Chief Executive Officer of the South
African Heritage Resources Agency and she was accompanied by Ms JB Khumalo, Chief
Financial Officer of the South African Heritage Resources Agency, Prof S Fikeni,
Chairperson of the Board of the South African Heritage Resources Agency, Ms HH Gous,
Executive Officer: Corporate Affairs at the South African Heritage Resources Agency, Ms B
Samuels, Public Relations Officer, Mr D Sibayi , Executive Officer: Human Resources.
Chairperson of the Committee opened the meeting and indicated to the South African
Heritage Resources Agency that the Committee had expressed a desire to also interact with
employees to assess the conditions that they worked in. The Chairperson also indicated that
the management of SAHRA should include Human Resources issues in their presentation
with emphasis on the devolution process that the agency has embarked upon.
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The Chief Executive Officer, Ms Van Damme indicated to the Committee that legislation
prescribes that responsibilities be passed over to Provincial Agencies. Previous Council of the
South African Heritage Resources Agency insisted that the Agencies previous Human
Resources structure be unbundled. The Head Office of the Heritage Resources Agency
previously supported Provinces. The focus of SAHRA was also diluted to take care of
Provinces and that there was currently a backlog of 10 years in this regard. She also pointed
out that Provinces only received R 2 million in this regard and that it posed a serious
challenge, but notwithstanding the challenges there were due processes underway.
The Minister of Arts and Culture has in the meantime, at Minmec level, made it clear that
Provinces should take up their mandates and set up their own Provincial Heritage Resources
Authorities (PHRA’s)
Ms Van Damme pointed out that the South African Heritage Resources Agency derived its
mandate from the National Heritage Resources Act of 1999 and that the operationalisation of
its mandate found itself in the Built Environment, Archaeology, Paleontology, Meteorites,
Heritage objects, Maritime and underwater Cultural Heritage, Burial grounds and Graves
Division, National Inventory, The Centre for Training Research and Education, Grading and
declaration, Finance, Human Resources and their Corporate Affairs Division.
On the Finances of the SAHRA she gave a brief breakdown of the following:
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
Revenue

Interest

Permit Fees
-
R12 000

Council
-
R75 000

Office of the CEO
-
R400 000

Legal Office
-
R580 000

Public Relations
-
R745 000

Devolution Process
-
R400 000

Human Resources
-
R1 628 000

Corporate Affairs
-
R5 915 000

Human Resources Management
-
R2 705 900

Limpopo Office
-
R180 000

Eastern Cape
-
R69 000

Free State
-
R150 000

Gauteng
-
R174 000

Kwazulu- Natal
-
R130 000

Mpumalanga
-
R50 000

North West
-
Not budgeted for

Northern Cape

Salaries
-
R21 887 159

Finance Department
-
R2 175 000
-
-
R36 204 000
R500 000
R150 000
The Chief Executive Officer indicated that the SAHRA had a video conferencing
system installed during the previous financial year to connect the satellite offices. The
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aim of this was to cut down on transport costs. She pointed out that the SAHRA had
36 properties under their control, but that there is a challenge in the collection of
rentals and that they had a limited budget available for the maintenance of the
properties.
On their National inventory Ms Van Damme indicated that a need for a digital
inventory of resources in State ownership has to be developed and that the
development of the South African Heritage Resources Information System (SAHRIS)
would form part of the National Audit Project to serve as repository of Information
collected during inventorisation. In this regard the State Information Technology
Agency could assist with the identification of suitable service providers for the
development of the South African Heritage Resources Information System (SAHRIS)
Ms Van Damme further pointed out that their Human Resources has since 2009 been
a function on its own and that their Performance Management System has been
revised and that the implementation thereof has been monitored. She also indicated
that the SAHRA has embarked on a restructuring process to address devolution
matters.
On Maritime and Underwater Cultural Heritage the Chief Executive Officer indicated
that SAHRA is participating in the Department of Arts and Culture Growth
Development Plan. She indicated that there is an international agreement between
South Africa and the Netherlands on underwater Cultural awareness programmes. She
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also pointed out that the Underwater Cultural Heritage Convention should also still be
ratified. This will protect the countries’ heritage resources from looters and those that
wanted to embark on salvaging. South Africa was also cooperating on regional level
with Kenya, Tanzania, Mozambique and Namibia to raise funds in this regard.
Ms Van Damme further indicated they have capacitated 87 people on 3 courses and
that 2 divers and 2 swimmers were trained for Underwater Cultural Heritage. She
pointed out that they are also experiencing challenges in this regard and that there was
a need for greater site assessments and research.
The Chief Executive Officer further pointed out that the SAHRA has sent 150
headstones to Tanzania for victims of conflict. In Mozambique they have assisted
with the installation of grave markers and grave restoration. She pointed out that the
SAHRA was planning a reburial of +/- 300 remains in a historical mining site in
Langlaagte. They were however also encountering some challenges in this regard,
which entailed the escalation of costs, lack of dedicated capital for exhumation,
forensic anthropological research, storage, the securing of land for reburial and
Educational Workshops on peoples’’ rights to graves. Other successful reburial
included a reburial of 70 miners in Paardekraal. She pointed out that the detention
graves on Robben Island still remained an unresolved puzzle.
Some of the challenges according to the Chief Executive Officer also included the
lack of capacity and resources and that the South African Heritage Resources Agency
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simply had no funds to retain heritage objects that were prohibited from exportation.
She attributed their failure to retain heritage objects that were prohibited from
exportation, to a lack of cooperation among institutions concerned with the
management of heritage objects. She mentioned that Transnet outsourced the
identification and categorization of some of their disposable assets and that these
assets included old locomotives. These assets were bought by wealthy corporations
and private individuals and could have been utilized as a tool to create employment
and thus complying with one of Government Priorities.
Ms Van Damme indicated that the South African Heritage Resources Agency signed a
memorandum of understanding with Rhodes University and that the agency was
focusing its training on Provincial Heritage Resources Authorities (PHRA’s)
competencies that were critical in the implementation of the Act. The Heritage
Resources Agencies was also focusing on the Curriculum Statements and capacitating
teachers to deal with heritage content.
She indicated that some of the challenges that they were faced with entailed the
transfer of assets, rights, liabilities and obligations of the South African Heritage
Resources Agency to the Provinces; the establishment of the Provincial Heritage
Resources (PHRA’s) by Provinces and the allocation of the necessary funds for this;
finances and an Act that was not costed at the time of its promulgation.
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Ms Van Damme also pointed out that the Heritage Resources Agency submitted
request for funding to the National Lotteries Distribution Trust Fund and to the
Department of Arts and Culture and the Department of Public Works.
Upon conclusion of the presentation members wanted to know: If The South African
Heritage Resources Agency had a working relationship with the National Heritage
Council; Wanted clarity on the discrepancies in allocation of funds to the Provinces;
If the Heritage Resources Agency requested funds from the Department of Public
Works; What the Heritage Resources Agency was doing to empower civil society;
What the Heritage Resources Agency was doing to source funds; What the Heritage
Resources Agency was doing to promote careers in Heritage; What distinctions could
be drawn between the mandates of the South African Heritage Resources Agency and
the National Heritage Council; What the criteria for the issuing of permits were
The Chief Executive Officer responded that indeed the Heritage Resources Agency
does have a working relationship with the National Heritage Council and that the
National Liberation Heritage Route was one of the projects that the two entities were
jointly involved in. The role of the South African Heritage Route was to identify
heritage sites and this process involved public participation.
The reason for the difference in funds allocated to the various provinces was that the
different offices had different issues to deal with. The Chief Executive Officer pointed
out that the South African Heritage Resources Agency had requested an audit of the
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total funds that the Agency required. The Director – General: Department of Arts and
Culture has approved the request and a service provider has been appointed to cost all
Heritage Agencies. There has also been a proposal by the Minister- MEC (MINMEC)
that the costing should be taken to Cabinet and Treasury. She also indicated that the
establishment of the Provincial Heritage Resources Authorities should be the
responsibility of the Members of Executive Councils from the various Provinces. The
various properties currently owned by the South African Heritage Resources Agency
should also be transferred to the Provincial Heritage Resources Authorities. She
indicated that the National Lotteries Distribution Trust Fund had allocated the
Heritage Agency with a reference number for their funding request. The African
World Heritage Fund was also approached for funding, but the global recession
resulted in the Heritage Resources Agency being refused the necessary funding
On the civil empowerment question she responded by indicating that, though the
Heritage Resources Agency was faced with budgetary constraints there were attempts
to empower civil society. She pointed out that Conservation Management Plans
involved the communities and that there was a pilot project that focused on youth. She
indicated that their Maritime week involved Grades 10-12 and that five children per
Province were afforded the opportunity to spend time on Robben Island.
Prof Fikeni, Chairperson of the Board acknowledged that there was confusion in
drawing a distinction between the mandates of the South African Heritage Resources
Agency and that of the National Heritage Council. He pointed out that it was the
responsibility of the South African Heritage Resources Agency to grade the National
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Heritage Liberation Route and the responsibility of the National Heritage Council to
provide funding for it. She stressed that the National Heritage Council was well
resourced (R44 million), but yet only had a staff complement of 20.
Upon conclusion the Heritage Resources Agency accompanied the Committee on a
site visit to the Castle of Good Hope which housed their Maritime Unit.
5. Conclusions
On Robben Island the Delegation commented that there has been a vast improvement
in the upgrading of the facilities and the situation as a whole at the Robben Island
Museum, but that some of the sites on the Island were still inaccessible to the public.
In this regard the Committee indicated that Heritage was not about rules, but also
respecting other cultures and that when some of the sites that were currently not open
to the general public tourist would not have first-hand experience and would not feel
that it was worth their while to visit the Island. The Committee also identified the six
areas that was an unfunded mandate of the Robben Island Museum. Some of the
challenges the Committee indicated should be addressed through interactions with the
various Portfolio Committees at Parliament.
On the Afrikaans Taal Museum the delegation commented that if the requirements of
the Public Finance Management Act and Treasury regulations were not complied
with, it would have a negative impact on funding from the Department of Arts and
Culture. They further indicated that the Afrikaans Taal Museum could also be seen as
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part of the Liberation Heritage Route and that the Museum should not operate in
isolation. They also proposed that the Afrikaans Taal Museum should expand its
operations beyond the borders of the Western Cape Province.
The Committee further acknowledged the funding challenges that the South African
Heritage Resources was experiencing.
The MEC of Cultural Affairs gave an undertaking to liaise with the City of Cape
Town to look into the matter of refuse removal and acknowledged that this was a
mandate that the City of Cape should be responsible for.
6. Recommendations
The Committee recommends that the Minister of Arts and Culture should
ensure the following:
6.1 While acknowledging that the lime quarry was an environmentally sensitive area,
the Committee recommends that it be opened by the Robben Island Museum, and a
bridge be built to allow sightseeing.
6.2 The entities should foster stronger relations with the media and the use of social
networking sites, such as Facebook and Twitter.
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6.3 The National Youth Development Agency should be utilized to train young tour
guides.
6.4 The National Heritage Council and the National Lotteries Distribution Fund
should be approached for funding to create more programmes and projects to benefit
the communities.
6.5 The Robben Island Museum should foster relations with Provincial and Local
Government.
6.6 On Tourism which is one of the drivers of Economic Development, the Robben
Island Museum should approach the Department of Tourism and Economic
Development to assist in the marketing of Robben Island as a tourist site.
6.7 The Afrikaans Taal Museum must extend its operations beyond the confines of the
Western Cape Province.
6.8 The Museum should foster closer relations with the Provincial Education
Department and Namibia.
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6.9 The South African Heritage Resources Agency should create partnerships with
other Government Departments.
6.10 A distinction should be drawn between the mandates of the South African
Heritage Resources Agency and the National Heritage Council.
6.11 The Department of Arts and Culture and the MECs of the various provinces
should resolve the issue of the Provincial Heritage Resources Authorities.
Report to be considered
2. Report of the Portfolio Committee on Arts and Culture on an oversight visit to public
entities in the Eastern Cape Province from 3 - 4 August 2011, dated 28 February 2012
The Portfolio Committee on Arts and Culture having conducted an oversight visit to the
Nelson Mandela Museum and the South African Library for the Blind in the Eastern Cape
Province reports as follows:
1. Introduction
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The Portfolio Committee on Arts and Culture, inspired by its Constitutional mandate and
Rules of Parliament to ensure effective oversight and greater accountability of entities funded
through transfers from the Department of Arts and Culture, embarked on an oversight of
entities residing under the auspices of aforementioned government department in the Eastern
Cape Province for the period 3 - 4 August 2011.
2. Terms of Reference
The entities that the Committee conducted oversight over were the Nelson Mandela Museum
(NMM) and the South African Library for the Blind (SALB).
The objective of the oversight was multifold. The visit sought to:

Ensure that entities were carrying out the mandates for which they were established.

Improve transparency within government operations and enhance public trust in
government.

Assess whether entities complied with Government Priorities.

Assess the challenges that entities experienced.
Core to all of the above, the Committee’s intention was to detect and prevent abuse, arbitrary
behavior or illegal and unconstitutional conduct of the abovementioned entities.
3. Delegation
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The delegation consisted of:
Committee Members
Hon Ms TB Sunduza (ANC)
-
Chairperson and leader of the delegation
Hon Ms LN Moss (ANC)
-
Committee Whip
Hon Ms TE Lishiva (ANC)
Hon Mr DW Mavunda (ANC)
Hon Ms MR Morutua (ANC)
Hon Ms FF Mushwana (ANC)
Hon Dr A Lotriet (DA)
Hon Mr P Ntshiqela (COPE)
Hon Ms HS Msweli (IFP)
Hon Mr SZ Ntapane (UDM)
Hon M Mandela (ANC)
Department of Arts and Culture (DAC)
Ms T Malao
-
Deputy Director
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Provincial Department of Sports, Recreation, Arts and Culture (DSRAC)
Mr L Xalabile
-
Manager, Cultural Affairs
Mr S Mdlangazi
-
Assistant Manager, Cultural Affairs
Mr J Van Der Westhuizen
-
Acting Committee Secretary
Mr V Muhadi
-
Committee Researcher
Ms N Mnyovu
-
Committee Assistant
Parliamentary Officials
4. Findings
4.1 Nelson Mandela Museum (NMM)
The Nelson Mandela Museum was officially opened on 11 February 2000, at a function that
coincided with the tenth anniversary of the release from prison of Nelson Mandela in 1990.
The Nelson Mandela Museum is located in the authentic landscape of Mr Mandela’s early
and later life. This is the landscape that Mr Mandela documents in his autobiography and is
attested by all research and social narrative into his life.
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The establishment of the Museum in terms of the Cultural Institutions Act as a national
heritage institution by the Ministry of Arts and Culture is to honor Mr Mandela’s wish that an
accessible home be found to preserve and safeguard gifts that he received from well –
wishers across the world, a home that could become a catalyst for development.
The Museum operates at two sites, in the historic Bhunga Building in Mthatha and the built
for purpose Youth and Heritage Centre in Qunu. In addition, the Museum maintains strong
links to the villages of Mvezo (where Mr Mandela was born) and Mqhekezweni where after
leaving Qunu as a boy, he was raised by the Regent, Jongintaba.
The Nelson Mandela Museum received most of its funding from the subsidy allocations from
National Government through the Department of Arts and Culture. Total revenue collected
by the Nelson Mandela Museum for the year under review increased by 11.75% from R 20
197 813 million to R 22 571 767 million. The subsidy from the Department of Arts and
Culture accounted for 65.38 % of the total revenue while 0.38 % was from donor funding,
32.74 % from project funding recognized as revenue, 1.84 % realized as the Museum’s own
income generated through interest bank investments of the amount received from various
project funders, rental of conference venue and charges for accommodation at the Qunu
Youth and Heritage Centre. The operating expenditure for the year under review was R 22
596 964 million eliciting an increase of 3.55 % from that recorded the previous year.
4.1.1 Nelson Mandela Museum, Bhunga Building, Mthatha
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Upon arrival at the Nelson Mandela Museum in Mthatha the Committee was welcomed by
the Chairperson of the Nelson Mandela Museum Council, Ms P Madiba who was
accompanied by Mr K Mpumlwana, Chief Executive Officer, Nelson Mandela Museum; Mr
MW Mdludlu, Chief Financial Officer; Mr DZ Mgamelo, Human Resources Manager; Ms N
Tetani, Senior Manager, Marketing; Ms P Mandela, Education, Development and Outreach
Manager; Ms FN Mashalara, Accountant; Mr T Mkhohliwe , Financial Controller; Ms B
Qotoyi, Program and Education Officer and Mr S Mdlangazi, Assistant Manager, Provincial
Department of Sports, Recreation, Arts and Culture .
The Museum and its grounds was wheelchair accessible. The Committee was taken on a tour
through the various exhibitions that depicted Mr Nelson Mandela’s life as a child and an
adult. Among these was also their security control room where the Chief Executive Officer
explained to the Committee that they had just recently upgraded the security equipment.
He proceeded to lead the Committee to their basement. He explained to the Committee that
the Nelson Mandela Museum had secured permits from the South African Heritage
Resources Agency to undertake renovations to their basement which they would be utilizing
as archiving facilities. He explained that the Nelson Mandela Museum would be closed for a
period of 30 months to enable the envisaged renovations.
The Chief Executive Officer concluded by encouraging Members of the Committee to
purchase curios from their craft shop.
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4.1.2 Nelson Mandela Youth and Heritage Centre, Qunu
The Committee proceeded to drive to the Qunu Youth and Heritage Centre. This component
of the Nelson Mandela Museum was located 500m from the N2 road that connects large
cities from Cape Town via Port Elizabeth, Grahamstown and East London to Durban.
The Qunu component of the Nelson Mandela Museum was accessible through a paved road,
from an off ramp situated on the N2. Visitors were directed to travel 600m to the end of the
road where the Museum was situated.
The centre was located near Nelson Mandela’s home and forms part of the story told and
shared by the Museum through its exhibitions and programmes. The story was further
enriched through visiting the family’s historical sites that form part of the “Footprints
Village Tours”.
The Committee was taken on a guided tour by Mr Gamakulu, of the facilities at the Heritage
Centre. The facilities included the Primary School that Mr Nelson Mandela attended, and also
where he was named Nelson. The Museum, it was mentioned, was built on land where as a
child Mr Nelson Mandela looked after his father’s cattle. Other facilities included a viewing/
contemplation deck and a sliding stone where Mr Mandela enjoyed traditional youth games
by sliding down the gigantic stone, located a few meters down the hill.
The Centre comprised of a community based craft project named the “Ithemba Arts and
Craft Project”. They made and sold quality crafts that included beads, hats etc. The project
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had initially been funded by the Government of Lower Saxony. The Chief Executive Officer
pointed out that the Craft Centre was funded at the time by the National Lotteries Distribution
Trust Fund (NLDTF). The project had trained 15 to 20 women thus far.
The Committee proceeded to a comic exhibition hall. The exhibition hall contained comics of
Mr Nelson Mandela.
The Youth and Heritage Centre also comprised of Conferencing and Accommodation
facilities that had the capacity to cater for 600 delegates and 60 guests’ respectively. The site
was popular for business functions, retreats, team building, weddings and festivals.
The Chief Executive Officer explained to the Committee that the facilities at the site was
graded by the South African Grading Council as a 3*** star. He pointed out that they were
aggressively pursuing editorial space in publications such as the “You, Huisgenoot, Sunday
Times and Sunday Tribune publications”.
4.2 South African Library for the Blind (SALB)
The South African Library for the Blind originated from humble beginnings in the then tiny
Eastern Cape township of Grahamstown during the height of the 1918 global Influenza
pandemic.
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While nursing local influenza victims, Josephine (Josie) Wood met Miss Comber, a British
nurse who wished to establish religious study groups for the Blind. Later and having been
recalled to England, Miss Comber, who had developed a personal collection of 100 braille
volumes, convinced Josie Wood to develop an accessible library for the visually impaired.
Her acceptance marked the beginning of the library for the visually impaired in South Africa
and led directly to the proudly South African institute today. The Library was declared a
Cultural Institution and National Library for the Blind in 1968.
The South African Library for the Blind’s mandate is subject to, and operates in accordance
with the South African Constitution and the South African Library for the Blind Act 91/1998.
It is legally committed to the values upon which the democratic South African state is
founded and in particular to those of equality, human dignity, the advancement of human
rights and freedoms, non-racialism, non-sexism, accountability and democracy. In addition to
aforementioned, it strives to make a contribution to Africa by being an available resource of
advice and expertise in its focus areas.
The Committee was welcomed by Mr Francois Hendricks, Director, South African Library
for the Blind and he was accompanied by Ms B Gornall , Chief Financial Officer; Mr N De
Lange, Head: Human Resources; Ms R Greaves, Head: Circulation Section; Ms B Mbiyo,
Head: Collection, Development and Cataloguing; Ms K Marechal, Manager: Production
Support Services; Mr M Kivits, Manager: Audio Productions; Mr J Nel , Manager: Technical
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Support; Ms N Yona, Manager: Braille Production and Ms P Alden, National Braille
Consultancy.
The Chairperson of the Committee facilitated introductions of members and staff of the
Committee, Department of Arts and Culture and the Library for the Blind. She invited the
Director to proceed with his presentation on the functions of the South African Library for
the Blind.
Mr Hendricks, Director, South African Library for the Blind welcomed the Committee and
proceeded to outline the historical highlights and mandate of the Library for the Blind.
He pointed out that the membership of the South African Library for the Blind totaled 3700
both locally and internationally and that they were the only Library for the Blind on the
African continent.
He proceeded to explain to the Committee that the realities for persons who were blind or
visually impaired was that there were no or few books available which culminated in no or
very little sharing of knowledge. He explained that there was not much reading material for
people who were blind or visually impaired and that the amount of reading material for the
blind equated to 5%. He explained that it was a battle to improve the 5%.
He mentioned some of the interventions that the SALB had embarked on or attempted to
improve the 5% as follows:
EPE 24 APRIL 2012
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
Conversion of audio cassettes from analog to digital

The production of tactile pre- school collections

The development of an indigenous language collection

Printing of a Braille newspaper

The establishment of a tele reading club

Digital mini libraries and service points

Cooperation in the establishment of a Global Library for the Blind

Reaching out to the rest of the African continent
Mr Hendricks proceeded and pointed out that the South African Library for the Blind
comprised of different sections and they were:

Library Services

Audio Productions

Braille Productions

Production support services

Braille consultancy

Information Technology and Technical Services

Marketing

Management Services
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Their library services consisted of circulation (audio and braille) and cataloguing. The section
was responsible for the following:

Managing and maintaining the electronic library management system of the library.

Liaising with library members and issues and receiving library material and reading
devices.

Developing and maintaining the library collection through the selection of quality
material.

Administrating copyright management matters.

Cataloguing library material to make it accessible.

Administrating interlibrary loans from international suppliers.
The audio production section was responsible for the:

Production and copying of newly narrated reading material to accessible audio
formats based on acceptable quality standards.

Converting the existing analogue audio collection to a more accessible and userfriendly digital audio medium.

Converting, producing and copying of various print magazines to the digital audio
medium.

Supplying the Library Services Section with sufficient number of audio copies.

Research alternative sources of audio material to be incorporated into the Library’s
audio collection.
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
PAGE: 196 of 429
Incorporating the use of new and existing specialized technologies, systems,
equipment and audio formats to enhance the reading experience of their blind and
visually impaired readers.
The Braille production section was responsible for:

Producing high quality Braille material in all the official South African Languages
according to applicable standards.

Training of staff to master the scarce Braille skills.

Printing, binding and repairing of Braille books.

Research and implement the most appropriate technologies to produce Braille
material.
He explained that it was an expensive exercise to reproduce books in Braille. He indicated
that the production cost of a Braille book was R 630.81. He informed the Committee that one
printed book page equated to 1.4 Braille pages.
Mr Hendricks briefly gave the Committee an introduction to the Daisy system. He explained
that Daisy referred to Digital Accessible Information Systems. It was a means of creating
digital talking books for people who wished to hear and navigate written material presented
in an audible format. It utilized the latest compression technology that allowed a single CDRom to store more than 50 hours of speech. The system he said was also a navigation control
file that enabled users to move smoothly between files while synchronization between text
EPE 24 APRIL 2012
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and audio was maintained. It was a standard protected specialized reading format that did not
breach copyright law (both national and international). He explained that the production cost
for one Daisy master file was R963, 37.
He explained that the responsibilities of the Production Support Services were the following:

Appointing, training, monitoring and coordinating all volunteers and temporary staff
assisting the Library with the production of audio and Braille titles.

The control of print copies received, distributed and catalogued.

Ensuring the quality control of production (new and analogue to digital titles), best
practices and the work flow to the Braille and Audio Production sections.

Keeping abreast with the latest software and hardware in Braille and audio production
and providing advice where applicable.

Dealing with all external clients who need material to be produced in Audio or
Braille, on a commercial basis.
Mr Hendricks explained that the production support service was also responsible for the
Braille Transcribers Examination and that they were the link between the Audio and Braille
Production Sections. The section was also responsible for the coordination of conversions
from analogue to digital.
Mr Hendricks explained that the Library’s statutory mandate went beyond the production of
Braille. It encompassed an additional function of standard setting and included the following:
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
PAGE: 198 of 429
In collaboration with the standard setting body of Braille, the Library for the Blind
also developed and aligned Braille Systems according to International standards.

Drafting, researching and publishing of reference manuals and bulletins containing
rules and information about the production of braille.

Assisting production houses, schools and educators with technical braille production
problems.

Promoting and supporting braille as a tool for literacy and communication.

Facilitating and overseeing the production of tactile books.
Mr Hendricks proceeded to outline the functions of their Information Technology and
Technical Services as the following:
Technical

Repairing analogue and digital playback devices as well as any other electronic
equipment.

Building maintenance and liaison with the Department of Public Works (DPW).

Managing and administering the transport and vehicle needs of the library.

Ensuring that the library complies with the Health and Safety Act 85 of 1993.
Information Technology

Supporting the technological requirements of the Library and its users.
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
Guiding the Library on new IT developments to be implemented.

Liaising with external IT providers on services and products.
The Library’s Marketing Section he said was responsible for the:

Marketing and promotion of the Library’s products and services;

Producing and distributing marketing material and newsletters;

Overseeing the production of outsourced marketing material; and

Participation in public events to raise the profile of the Library.
Mr Hendricks indicated that the Library for the Blind had a quarterly newsletter named
“Makwenzeke” and that they were also marketing the Library for the Blind through their
webpage, Radio Stations like Moutse Radio, Radio Khwezi, Jozi FM and social media
platforms with specific reference to Twitter and Facebook.
The Management Services Section was primarily responsible for providing support to the
South African Library for the Blind Board, the Director and all Section heads of the Library.
It was responsible for the recording, reporting and provisioning of relevant information
required by the Public Finance Management Act (PFMA) and various other legislation
relating to Finance and Human Resources. The Section comprised of Financial Management
and Fundraising, Human Resources and Development and Administration and Cleaning
Services.
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Mr. Hendricks indicated that the Library of the Blind received 92% of their funding from the
Department of Arts and Culture. The remainder of their funding they received from private
donors. He explained that the Library for the Blind had registered as a Public Benefit
Organisation. He indicated that the Library for the Blind reported on a quarterly and annual
basis to the Department of Arts and Culture.
Mr Hendricks proceeded to highlight the challenges and progress that they had made in this
regard to the Committee as follows:
Challenges
1. Scarce skills
Progress
Continuous training both internally and
externally
2. Organisational structure
The Library submitted a proposal to the
Department of Arts and Culture and
advertised the new and vacant positions.
The filling of the positions would be
phased in.
3. Building constraints
Made a proposal to the National
Department of Public Works and was
awaiting a response
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4. Connectivity
PAGE: 201 of 429
The Library for the Blind introduced
downloading services.
5. National funding priority
The Library for the Blind had made
proposals to the Provincial Library
Services
6. Expensive and imported
technology
The Library for the Blind had made
proposals to Vision Australia and
negotiated more competitive rates with
their suppliers
7. Target market expansions
The Library for the Blind developed a
more comprehensive membership
strategy
8. Copyright and access to reading
material
The Library for the Blind is a member of
most major National and International
initiatives
9. Onerous legal compliance
requirements
Liaison with the Auditor – General and
the Department of Arts and Culture
The Director pointed out that their audit fees had increased by 500%. He said that the
increase was putting a strain on their infrastructure. He emphasized that their budget was
smaller than other DAC entities, but that they were required to pay the same amount for
auditing fees.
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Mr Hendricks thanked the Committee for the opportunity to present and welcomed questions
by the Committee. Members wanted to know if the South African Library for the Blind had
approached the National Lotteries Distribution Trust Fund (NLDTF) for funding; what the
timeframe for the filling of the 12 vacant posts were; if the Library for the Blind was also
producing Braille in the indigenous languages of South Africa and if the Library for the Blind
had internship programmes.
Mr Hendicks indicated that they had approached the National Lotteries Distribution Trust
Fund, but that they were not sure what the closing date for applications were. He assured the
Committee that they would continue approaching the National Lotteries.
Ms Mbiyo indicated that they had thus far only managed to produce four indigenous
languages in Braille, but that they were looking at increasing it to include all the indigenous
languages.
Mr Hendricks said that the Library for the blind would follow a phased approach in the filling
of vacancies, but estimated it to be in the 2012/2013 financial year.
Mr Hendricks responded that the Library for the Blind had an internship programme that they
were conducting in partnership with the South African Council for the Blind. He explained
EPE 24 APRIL 2012
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that they were targeting blind and visually impaired matriculants to serve internships and that
they served their internships over a period of six months.
Mr Hendricks indicated that there were 21 schools for the Blind in South Africa. He
explained that the Library for the Blind had raised funds and assisted in the implementation
of technology associated with people who were visually impaired and blind. He also pointed
out that all major tertiary institutions in South Africa had special facilities that accommodated
all students who were blind or visually impaired.
Upon conclusion of deliberations the Director, Library for the Blind invited the Committee
on a physical site visit of the facilities at the South African Library for the Blind. The
Committee was shown their 4 soundproof studios which they utilized for the narration of
books. The narration of the books was done on a voluntary basis. It was explained that an
average of 531 titles was produced per annum. He pointed out that the Library for the blind
had 8000 books on cassette.
It was also pointed out that their Braille book storage comprised of 12000 titles. The Director
indicated that the Library for the Blind had two Braille printers and that it printed 600,000
pages per annum which equated to 267 titles. Their audio collection storage amounted to
12,000 cassettes.
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The Director then pointed out their postal area. He indicated that the postal trucks delivered
on a daily basis and that the service was offered free. He said that 131,814 items were
circulated per annum.
The Committee was then shown the Collections, Development and Cataloguing Department
where it was indicated that the whole process starts in the Department and also ended there.
5. Conclusions
The Committee observed that the Nelson Mandela Museum at Qunu should be made more
accessible to people living with disabilities. They indicated that the ongoing refurbishment
was commendable. The Committee also encouraged the NMM to embark on a more robust
marketing strategy of the Museum.
The Committee encouraged the South African Library for the Blind (SALB) to engage with
the Department of Education and the Department of Science and Technology. The Library for
the Blind was also encouraged to utilize the services of the National Youth Development
Agency (NYDA) to enable them to pass scarce skills that pertain to the development of
Braille services to the youth.
6. Recommendations
The Committee recommends that the Minister of Arts and Culture should ensure that:
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
PAGE: 205 of 429
The Nelson Mandela Museum is advised to embark on a more robust marketing
campaign for the Museum.

The Nelson Mandela Museum foster closer relations with the Provincial Department
of Sports, Recreation, Arts and Culture and the National Department of Tourism.

The South African Library for the Blind foster closer relations with the Department of
Basic Education, Department of Higher Education and Training and the Department
of Science and Technology to assist them with the purchasing, development and
implementation of technology associated with people who are blind or visually
impaired.

The South African Library for the Blind utilize the services of the National Youth
Development Agency to facilitate the transfer of scarce skills, to young people,
associated with the technology needed in the production of Braille services.

The South African Library for the Blind approach the National Lotteries Distribution
Trust Fund (NLDTF) for more funding.
Report to be considered
FRIDAY, 23 MARCH 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
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The Speaker and the Chairperson
1.
Classification of Bills by Joint Tagging Mechanism (JTM)
(1)
The JTM in terms of Joint Rule 160(6) classified the following Bill as a Money
Bill:
(a)
Rates and Monetary Amounts and Amendment of Revenue Laws Bill
[B 10 – 2012] (National Assembly – sec 77).
(2) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75
Bill:
(a)
Independent System and Market Operator Bill [B 9 – 2012] (National
Assembly – sec 75).
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Social Development
EPE 24 APRIL 2012
2.
PAGE: 207 of 429
(a)
Report of the Central Drug Authority (CDA) for 2010-2011 [RP 264-2011].
(b)
Report of the Central Drug Authority (CDA) for 2009-2010 [RP 272-2010].
The Minister of Trade and Industry
(a)
General Notice No 142 published in Government Gazette No 35063 dated 22
February 2012: Notice in terms of section 10 of the Housing Development
Schemes for Retired Persons Act, 1988 (Act No 65 of 1988).
(b)
General Notice No 143 published in Government Gazette No 35065 dated 24
February 2012: Notice in terms of Schedule 1, item 2(3)(a) of the Liquor Act,
2003 (Act No 59 of 2003).
National Assembly
1.
The Speaker
(a)
Report of the Public Service Commission: Citizens Talk: A Citizen Satisfaction
Survey Report – July 2011 [RP 63-2011].
TUESDAY, 27 MARCH 2012
EPE 24 APRIL 2012
PAGE: 208 of 429
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Assent by President in respect of Bills
(1)
Additional Adjustments Appropriation Bill (2011/12 Financial Year) [B 6 –
2012] – Act No 1 of 2012 (assented to and signed by President on 26 March
2012).
TA BLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Strategic Plan of the South African Revenue Services for 2012/13 to 2016/17.
EPE 24 APRIL 2012
(b)
(c)
PAGE: 209 of 429
Strategic Plan of the Accounting Standards Board for 2013 to 2018.
Strategic Plan (Group Corporate Plan) of the Development Bank of Southern
Africa for 2012/13.
COMMITTEE REPORTS
National Assembly
CREDA INSERT - T120327e-insert1 – PAGES 815 - 836
THURSDAY, 29 MARCH 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Assent by President in respect of Bills
EPE 24 APRIL 2012
(1)
PAGE: 210 of 429
Finance Bill [B 5 – 2012] – Act No 2 of 2012 (assented to and signed by
President on 27 March 2012).
(2)
Skills Development Amendment Bill [B 16B – 2011 (Reprint)] – Act No 26 of
2011 (assented to and signed by President on 27 March 2012).
National Assembly
The Speaker
1.
Withdrawal of 2010-11 financial statements of SA Express Airways
(a)
A letter dated 27 March 2012 has been received from the Minister of Public
Enterprises, informing members of the House that he is withdrawing the
2010-11 financial statements of SA Express Airways, tabled on 8 September
2011, owing to errors in the statements, and undertaking to submit them for
tabling as soon as the aforementioned errors have been corrected.
Referred to the Committee on Public Accounts and the Portfolio Committee
on Public Enterprises.
EPE 24 APRIL 2012
PAGE: 211 of 429
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Strategic Plan of the Office of the Ombud for Financial Services Providers for
2012-2017.
(b)
Strategic Plan of the Pension Funds Adjudicator for 2012 – 2017.
FRIDAY, 30 MARCH 2012
ANNOUNCEMENTS
National Assembly
The Speaker
EPE 24 APRIL 2012
1.
PAGE: 212 of 429
Referral to Committees of papers tabled
(1)
The following papers are referred to the Portfolio Committee on Public Service
and Administration for consideration:
(a)
Report of the Public Service Commission (PSC) on the Evaluation of
Grievances to Identify Good Practices - July 2011 [RP203-2011].
(b)
Report of the Public Service Commission (PSC) on Financial Misconduct
for 2009-10 Financial Year [RP202-2011].
(c)
Report of the Public Service Commission (PSC) on the Assessment of the
Human Resource Development Practices in the Public Service – June 2011
[RP 268-2011].
(d)
Report of the Public Service Commission on the Implementation of the
Performance Management and Development System for Senior Managers in
the Western Cape Province– February 2011 [RP200-2011].
(e)
Report of the Public Service Commission: Citizens Talk: A Citizen
Satisfaction Survey Report – July 2011 [RP63-2011].
EPE 24 APRIL 2012
(2)
PAGE: 213 of 429
The following papers are referred to the Portfolio Committee on Public Service
and Administration for consideration and report:
(a)
Strategic Plan of the Public Service Commission (PSC) for 2012-13 to 201617 and Annual Performance Plan for 2012-13.
(b)
Strategic Plan of the Department of Public Service and Administration
(DPSA) for 2012-15.
(c)
Annual Performance Plan of the Public Administration Leadership and
Management Academy (Palama) for 2012-13 and Budget (MTEF) for 201213 to 2014-15.
(d)
Strategic Plan of the Centre for Public Service Innovation for 2012-15.
(e)
Strategic Plan of the State Information Technology Agency (Pty) Ltd (Sita)
2010-14 and Annual Performance Plan for 2012-13.
(3)
The following paper is referred to the Portfolio Committee on Agriculture,
Forestry and Fisheries for consideration and report. The Report of the
Independent Auditors on the Financial Statements and Performance Information is
referred to the Committee on Public Accounts for consideration:
EPE 24 APRIL 2012
(a)
PAGE: 214 of 429
Report and Financial Statements of the South African Veterinary Council for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(4)
The following papers are referred to the Portfolio Committee on Agriculture,
Forestry and Fisheries for consideration and report:
(a)
Strategic Plan of the National Agricultural Marketing Council for 2012-17.
(b)
Strategic Plan of the Agriculture Research Council for 2012-13 to 2016-17
[RP46-2012] and Business Plan for 2012-13 [RP47-2012].
(c)
Strategic Plan of the Perishable Products Export Control Board for 2013-15.
(d)
Strategic Plan (Corporate Plan) of Onderstepoort Biological Products Ltd for
2012-13 to 2015-16 and Annual Performance Plan for 2012-13.
(e)
Strategic Plan of the Marine Living Resources Fund for 2012-17.
EPE 24 APRIL 2012
(5)
PAGE: 215 of 429
The following papers are referred to the Portfolio Committee on Trade and
Industry for consideration and report:
(a)
Strategic Plan of the Small Enterprise Development Agency (Seda) for
2012-13 to 2016-17 and Annual Performance Plan for 2012-13 to 2014-15.
(b)
Strategic Plan of the National Lotteries Board for 2012-17 and Annual
Performance Plan for 2012-15.
(c)
Strategic Plan of the National Gambling Board (NGB) for 2012-17 and
Annual Performance Plan for 2012-15.
(d) Strategic Plan of the National Metrology Institute of South Africa (NMISA)
for 2012-13 to 2016-17 and Annual Performance Plan for 2012-13 to 201415.
(e)
Strategic Plan of the National Credit Regulator (NCR) for 2012-17 and
Annual Performance Plan for 2012-15.
(f)
Strategic Plan of the National Regulator Compulsory Specifications (NCRS)
for 2012-17 and Annual Performance Plan for 2012-15.
EPE 24 APRIL 2012
(g)
PAGE: 216 of 429
Corporate Strategic Plan of the Estate Agency Affairs Board (EAAB) for
2012-13 to 2016-17 and Annual Performance Plan for 2012-13 to 2014-15.
(h)
Strategic Plan of the National Consumer Tribunal (NCT) for 2013-17 and
Annual Performance Plan for 2013-15.
(i)
Strategic Plan of the South African National Accreditation System (Sanas)
for 2012-13 to 2016-17 [RP17-2012] and Annual Performance Plan for
2012-13 to 2014-15 [RP16-2012].
(j)
Strategic Plan of the National Empowerment Fund (NEF) for 2012-13 to
2015 and Annual Performance Plan for 2012-13 to 2015.
(k)
Strategic Plan of the National Consumer Commission (NCC) for 2012-13 to
2016-17 and Annual Performance Plan for 2012-13 to 2014-15.
(l)
Strategic Plan of the Companies and Intellectual Property Commission
(CIPC) for 2012-17 and Annual Performance Plan for 2012-13.
(m) Corporate Strategic Plan of the Export Credit Insurance Corporation of
South Africa SOC Limited (ECIC) for 2012-13 to 2014-15.
EPE 24 APRIL 2012
(n)
PAGE: 217 of 429
Corporate Plan of the South African Bureau of Standards (SABS) for 201213 to 2014-15 and Business Plan for 2012-13.
(o)
Strategic Plan of the Department of Trade and Industry for 2012-13 to 201617 and Annual Performance Plan for 2012-15.
(6)
The following papers are referred to the Standing Committee on Finance for
consideration and report:
(a)
Agreement between the Government of the Republic of South Africa and the
Government of the Commonwealth of Dominica on the Exchange of
Information with respect to Taxes and Tax Matters, tabled in terms of
section 231(2) of the Constitution of the Republic of South Africa, 1996.
(b)
Explanatory Memorandum to the Agreement on the Exchange of
Information with respect to Taxes and Tax Matters between the Government
of the Republic of South Africa and the Government of the Commonwealth
of Dominica.
(c)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Liberia on the Exchange of Information
EPE 24 APRIL 2012
PAGE: 218 of 429
relating to Tax Matters, tabled in terms of section 231(2) of the Constitution
of the Republic of South Africa, 1996
(d)
Explanatory Memorandum to the Agreement on the Exchange of
Information relating to Tax Matters between the Government of the
Republic of South Africa and the Government of the Republic of Liberia.
(e)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Gibraltar on the Exchange of Information
relating to Tax Matters, tabled in terms of section 231(2) of the Constitution
of the Republic of South Africa, 1996.
(f)
Explanatory Memorandum to the Agreement on the Exchange of
Information relating to Tax Matters between the Government of the
Republic of South Africa and the Government of the Republic of Gibraltar.
(g)
Strategic Plan of the Financial and Fiscal Commission (FFC) for 2011-12 to
2013-14 and Annual Performance Plan for 2012-13.
(h)
Convention on Mutual Administrative Assistance in Tax Matters as
amended by the 2011 Protocol, tabled in terms of section 231(2) of the
Constitution, 1996.
EPE 24 APRIL 2012
(i)
PAGE: 219 of 429
Explanatory Memorandum to the Convention on Mutual Administrative
Assistance in Tax Matters as amended by the 2011 Protocol.
(j)
Supplementary Protocol Amending the Agreement between the Government
of the Republic of South Africa and the Government of the Sultanate of
Oman on the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income, tabled in terms of section 231(2)
of the Constitution, 1996.
(k)
Explanatory Memorandum to the Supplementary Protocol Amending the
Double Taxation Agreement between the Government of the Republic of
South Africa and the Government of the Sultanate of Oman.
(l)
(7)
Work Programme of Statistics South Africa for 2012-13 [RP10-2012].
The following papers are referred to the Portfolio Committee on Human
Settlements for consideration and report:
(a)
Strategic Plan of the Rural Housing Loan Fund (RHLF) for 2013-17.
(b)
Strategic Plan (Corporate) and Budget of the National Home Builders
Registration Council (NHBRC) for 2012-17.
EPE 24 APRIL 2012
(c)
PAGE: 220 of 429
Strategic Plan of the Housing Development Agency for 2012-13 to 2016-17
and Annual Performance Plan for 2012-13.
(d)
Annual Performance Plan of the National Housing Finance Corporation
SOC (Ltd) for 2013-15.
(e)
Strategic Plan of the Social Housing Regulatory Authority (SHRA) for
2012-17.
(f)
Strategic Plan of the National Urban Reconstruction and Housing Agency
(Nurcha) for 2012-13 to 2016-17.
(g) Updated Departmental Strategic and Performance Plans of the Department of
Human Settlements for 2012-13 to 2014-15.
(8)
The following paper is referred to the Portfolio Committee on International
Relations and Cooperation for consideration and report:
(a) Strategic Plan of the Department of International Relations and Cooperation
for 2012-17 and the Annual Performance Plan for 2012-13.
EPE 24 APRIL 2012
(9)
PAGE: 221 of 429
The following papers are referred to the Portfolio Committee on Cooperative
Governance and Traditional Affairs for consideration and report:
(a) Annual Performance Plan of the Department of Cooperative Governance and
Traditional Affairs for 2012-13 [RP81- 2012].
(b) Strategic Plan of the Municipal Demarcation Board for 2012-17 and Annual
Performance Plan for 2012.
(10) The following papers are referred to the Portfolio Committee on Basic
Education for consideration and report:
(a) Strategic Plan of the Education Labour Relations Council (ELRC) for 201315 and Annual Performance Plan for 2013-15.
(b) Strategic Plan of the Department of Basic Education for 2011-14 [RP3720121] and Annual Performance Plan for 2012-13.
(c) Strategic Plan of the Quality Council for General and Further Education and
Training (Umalusi) for 2009-14 and Annual Performance Plan for 2012-13.
EPE 24 APRIL 2012
PAGE: 222 of 429
(d) Strategic Plan of the South African Council for Educators (SACE) for 201011 to 2014-15 and Annual Performance Plan for 2012-13.
(11) The following papers are referred to the Portfolio Committee on Home Affairs
for consideration and report:
(a) Strategic Plan of the Government Printing Works (GPW) for 2012-13 to
2014-15 and Annual Performance Plan for 2012-13.
(b) Annual Performance Plan of the Department of Home Affairs for 2012-13 to
2014-15.
(c) Strategic Plan of the Film and Publication Board (FPB) for 2012-13 to 201617 and Annual Performance Plan for 2012-13 to 2016-17.
(d) Strategic Plan of the Electoral Commission (IEC) for 2011-2012 to 2015-16
and Annual Performance Plan for 2013.
(12) The following papers are referred to the Portfolio Committee on Justice and
Constitutional Development for consideration and report:
EPE 24 APRIL 2012
PAGE: 223 of 429
(a) Strategic Plan of the National Prosecuting Authority (NPA) for 2012-17 and
Annual Performance Plan for 2012-13.
(b) Strategic Plan of the Department of Justice and Constitutional Development
for 2012-17 and Annual Performance Plan for 2012-13.
(c) Strategic Plan of the Special Investigating Unit (SIU) for 2011-16.
(e) Strategic Plan of the Legal Aid South Africa for 2012-17.
(13) The following paper is referred to the Portfolio Committee on Justice and
Constitutional Development:
(a) Service Delivery Charter and Service Standards of the Department of Justice
and Constitutional Development.
(14) The following papers are referred to the Portfolio Committee on Police for
consideration and report:
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(a) Strategic Plan of the South African Police Service for 2010-14 and Annual
Performance Plan for 2012-13.
(b) Strategic Plan of the Independent Police Investigative Directorate for 201217 and Annual Performance Plan for 2012-13.
(15) The following paper is referred to the Portfolio Committee on Rural
Development and Land Reform for consideration and report:
(a) Annual Performance Plan of the Department of Rural Development and Land
Reform for 2012-2013 [RP43-2012].
(16) The following papers are referred to the Portfolio Committee on Arts and
Culture for consideration and report:
(a) Strategic Plan of the National Heritage Council for 2012-13 to 2016-17
[RP44-2012] and Annual Performance Plan for 2012-13 [RP45-2012].
(b) Strategic Plan of the Windybrow Theatre for 2012-13, 2013-14 and 2014-15
and Annual Performance Plan for 2012-13.
EPE 24 APRIL 2012
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(c) Strategic Plan of the Freedom Park for 2012-17 [RP22- 2012] and Annual
Performance Plan for 2012-15 [RP23- 2012].
(d) Strategic Plan of the War Museum of the Boer Republics for 2012-13 to
2016-17 [RP25-2012] Annual Performance Plan for 2012-13 [RP26-2012].
(e) Strategic Plan of the National Film and Video Foundation for 2013-15
[RP39-2012] and Annual Performance Plan for 2012-15 [RP40-2012].
(f)
Strategic Plan of the Artscape for 2012-14 [RP50-2012] and Annual
Performance Plan for 2012-13 [RP51-2012].
(g) Strategic Plan of the Playhouse Company for 2013-17 [RP19-2012] and
Annual Performance Plan for 2012-13 [RP20- 2012].
(h) Strategic Plan of the South African Library for the Blind for 2012-13 to
2016-17 [RP37-2012] and Annual Performance Plan for 2012-13 [RP382012].
(i)
Strategic Plan of the Robben Island Museum for 2012-17 [RP41-2012] and
Annual Performance Plan for 2012-13 [RP42-2012].
EPE 24 APRIL 2012
(j)
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Strategic Plan of the Market Theatre Foundation for 2012-17 [RP32-2012]
and Annual Performance Plan for 2012-13[RP33-2012].
(k) Strategic Plan of the Kwazulu-Natal Museum for 2012-13 to 2016-17 [RP352012] and Annual Performance Plan for 2012-13 to 2013-14 [RP36-2012].
(l)
Strategic Plan of the Afrikaans Language Museum and Language Monument
for 2012-17 and Annual Performance Plan for 2012-13.
(m) Strategic Plan of the National English Literary Museum for 2012-13 to 201617 [RP281-2011] and Annual Performance Plan for 2012-13 [RP282-2011].
(n) Strategic Plan of the William Humphreys Art Gallery Kimberley Northern
Cape for 2013-17 and Annual Performance Plan for 2013.
(o) Strategic Plan of the Ditsong Museums of South Africa for 2012-13 to 201617 [RP28-2012] and Annual Performance Plan for 2012-13 [RP29-2012].
(p) Strategic Plan of the South African State Theatre for 2012-17 [RP20-2012]
and Annual Performance Plan for 2012-13 [RP21-2012].
EPE 24 APRIL 2012
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(q) Strategic Plan of the National Arts Council for 2012-16 and Annual
Performance Plan for 2012-13.
(r)
Strategic Plan of the Performing Arts Centre of the Free State for 2012-17
and Annual Performance Plan for 2012-13 [RP36-2012].
(s) Strategic Plan of the National Museum – Bloemfontein for 2012-16 [RP482012] and Annual Performance Plan for 2012-13 [RP49-2012].
(t)
Strategic Plan of the Iziko Museums for 2012-13 to 2016-17 [RP30-2012]
and Annual Performance Plan for 2012-13 [RP31- 2012].
(u) Strategic Plan of the National Library of South Africa for 2012-17 and
Annual Performance Plan for 2012-13.
(v) Strategic Plan of the Msunduzi/Voortrekker and Ncome Museums for 201213 to 2016-17 [RP24-2012] and Annual Performance Plan for 2012-13
[RP27-2012].
(w) Strategic Plan of the South African Heritage Resources Agency (Sahra) for
2012-17 and Annual Performance Plan for 2012-15 [RP64-2012].
EPE 24 APRIL 2012
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(x) Strategic Plan of the Luthuli Museum for 2012-17.
(17) The following papers are referred to the Portfolio Committee on Women,
Children and People with Disabilities for consideration and report:
(a)
Strategic Plan of the Department of Women, Children and People with
Disabilities for 2012-13 to 2016-17 and Annual Performance Plan for 201213.
(b) Strategic Plan of the Commission for Gender Equality (CGE) for 2012-17
and Annual Performance Plan for 2012-13.
(18) The following papers are referred to the Portfolio Committee on
Communications for consideration and report:
(a) Strategic Plan of the Department of Communications for 2012-17 and
Annual Performance Plan for 2012-13.
(b) Strategic Plan of the Universal Service and Access Agency of South Africa
2012-15 and Annual Performance Plan for 2012-13.
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(c) Strategic and Corporate Plan of Sentech Limited for 2012-15.
(d) Strategic and Corporate Plan of the Independent Communications Authority
of South Africa for 2012-17 and Annual Performance Plan for 2012-17.
(e) Strategic and Corporate Plan of the South African Post Office for 2012-13 to
2014-15.
(f)
Strategic Plan of the National Electronic Media Institute of South Africa
(Nemisa) for 2012-17.
(g) Strategic Plan of the South African Broadcasting Corporation for 2012-15.
(h) Strategic Plan of the Government Communication and Information System
(GCIS) for 2012-13 to 2016-17 and Annual Performance Plan for 2012-13
(MTEF) for 2012-13 to 2014-15).
(i)
Strategic and Business Plan (MTEF) of the Media Development and
Diversity Agency (MDDA) for 2012-15.
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(19) The following paper is referred to the Portfolio Committee on Correctional
Services for consideration and report:
(a) Strategic Plan of the Department of Correctional Services for 2012-13 to
2016-17 and Annual Performance Plan for 2012-13.
(20) The following papers are referred to the Portfolio Committee on Defence and
Military Veterans for consideration and report:
(a) Strategic Plan of the Department of Military Veterans for 2012-16 and
Annual Performance Plan for 2012.
(b) Executive Authority’s Overarching Annual Strategic Statement for 2012
[RP90-2012].
(c) Annual Performance Plan of the South African National Defence Force for
2012 [RP88-2012].
(d) Annual Performance Plan of the Defence Secretariat for 2012 [RP89-2012].
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(e) Strategic Plan of the Castle Control Board for 2012-13 to 2016-17 and
Annual Performance Plan for 2012-13.
(f)
Strategic Plan and Annual Performance Plan of Armscor – 2012-13 to
2016-17.
(21) The following paper is referred to the Portfolio Committee on Defence and
Military Veterans for consideration:
(a) Letter from the Minister of Defence and Military Veterans, dated December
2011, to the Speaker of the Speaker of the National Assembly, explaining the
delay in the submission of the Financial Statements for the Special Defence
Account and reasons therefore in terms of section 65(2) of the PFMA.
(22) The following papers are referred to the Portfolio Committee on Economic
Development for consideration and report:
(a) Strategic Plan of the Department of Economic Development for 2012-13 to
2016-17 and Annual Performance Plan for 2012-13.
(b) Strategic Plan of the International Trade Administration Commission of
South Africa for 2012-17 and Annual Performance Plan 2012-17.
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(c) Strategic Plan of the Competition Commission for 2012-17 and Annual
Performance Plan 2012-13.
(d) Strategic Plan of the Competition Tribunal for 2012-17 and Annual
Performance Plan for 2012-13.
(e) Strategic (Corporate) Plan of the Independent Development Corporation for
2012-13 to 2016-17.
(23) The following papers are referred to the Portfolio Committee on Energy for
consideration and report:
(a) Strategic Plan of the Department of Energy for 2011-12 to 2015-16 and
Annual Performance Plan for 2012-13.
(b) Strategic Plan of the National Nuclear Regulator for 2012-17 and Annual
Performance Plan for 2012-13.
(c) Strategic Plan of the National Energy Regulator of South Africa (Nersa) for
2012-13 to 2016-17 and Annual Performance Plan for 2012-13 to 2014-15.
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(24) The following papers are referred to the Portfolio Committee on Health for
consideration and report:
(a) Annual Performance Plan of the National Department of Health for 2012-13
to 2014-15 [RP18-2012].
(b) Strategic Plan of the National Health Laboratory Service (NHLS) for 201015 and Annual Performance Plan for 2012-13.
(c) Annual Performance Plan of the Compensation Commissioner for
Occupational Diseases (CCOD) for 2012-13 to 2014-15.
(d) Annual Performance Plan of the South African Medical Research Council
(MRC) for 2012-13.
(e) Strategic Plan for 2012-13 to 2014-15, the Annual Performance Plan for
2012-13 and the Budget of the Council for Medical Schemes.
(f)
Strategic Plan of the South African Medical Research Council (MRC) for
2012-13 to 2016-17, submitted to Parliament on 7 March 2012.
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(25) The following papers are referred to the Portfolio Committee on Higher
Education and Training for consideration and report:
(a) Annual Performance Plan of the Department of Higher Education and
Training for 2012-13 [RP56-2012].
(b) Strategic Plan of Agricultural Sector Education and Training Authority
(Agri-Seta) for 2012-16.
(c) Strategic Plan of the Council on Higher Education (CHE) for 2012-17 and
Annual Performance Plan and (MTEF) Budget for 2012-13 to 2014-15.
(d) Strategic Plan of the Construction Sector Education and Training Authority
(Ceta) for 2012-13 and Annual Performance Plan for 2012-13.
(e) Strategic Plan of the Energy and Water Sector Education and Training
Authority (Ewseta) for 2012-13 to 2016-17 and Annual Performance Plan for
2012-15.
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Strategic Plan of the Education Training and Development Practices Sector
Education and Training Authority (ETDP) for 2011-16 and Annual
Performance Plan for 2012-13.
(g) Strategic Plan of the Financial and Accounting Services Sector Education
and Training Authority (Fasset) for 2012-17 and Sector Skills Plan for 201217.
(h) Strategic Plan of the Food and Beverages Manufacturing Sector Education
and Training Authority (Foodbev-Seta) for 2011-16 and Annual Performance
Plan for 2012-13.
(i)
Strategic Plan of the Health and Welfare Sector Education and Training
Authority (HW-Seta) for 2012-16 and Annual Performance Plan for 2012-13.
(j)
Strategic Plan of the Chemical Industries Education and Training Authority
(Chieta) for 2011-12 to 2015-16 and Annual Performance Plan for 2012-13.
(k) Strategic Plan of the Transport Education Training Authority (Teta) for 201213 to 2015-16 and Annual Performance Plan for 2012-13.
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Annual Performance Plan of the Public Service Sector Education and
Training Authority (PSETA) for 2012-13.
(m) Strategic Plan of the Insurance Sector Education and Training Authority
(Inseta) for 2011-16 and Annual Performance Plan for 2012-13.
(n) Strategic Plan of the Manufacturing, Engineering and Related Services Seta
(MER-Seta) for 2012-13 to 2016-17.
(o) Strategic Plan of the Mining Qualifications Authority (MQA) for 2012-17
and Annual Performance Plan for 2012.
(p) Strategic Plan of Safety and Security Sector Education and Training
Authority (SAS Seta) for 2012-16.
(q) Annual Performance Plan of the Services Sector Education and Training
Authority for 2012-13 to 2014-15.
(r)
Strategic Plan of the Wholesale and Retail Sector Education and Training
Authority (W&R-Seta) for 2012-17 and Annual Performance Plan for 201215.
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(s) Strategic Plan of the Local Government Sector Education and Training
Authority (LG-Seta) for 2011-16.
(t)
Strategic Plan of the Fibre Processing and Manufacturing Sector Education
and Training Authority (FP&M Seta) for 2011-16 and Annual Performance
Plan for 2011-16.
(u) Strategic Plan of the Quality Council for Trades and Occupations for
2012-13 – 2016-17 and Annual Performance Plan for 2012-13 – 2014-15.
(v) Strategic Plan of the South African Qualifications Authority (SAQA) for
2012-17 and Annual Performance Plan for 2012-13.
(w) Strategic Plan of the National Student Financial Aid Scheme (NSFAS) for
2012-17 and Annual Performance Plan for 2012.
(x) Strategic Plan of the Culture, Arts, Tourism, Hospitality and Sport Sector
Education and Training Authority (CATHSSETA) for 2011-12 to 2015-16
and Annual Performance Plan for 2012-13.
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(y) Strategic Plan of the Banking Sector Education and Training Authority
(Bankseta) for 2012-13 to 2016-17 and Annual Performance Plan.
(26) The following papers are referred to the Portfolio Committee on Labour for
consideration and report:
(a) Strategic Plan of the Department of Labour for 2012-17 [RP79-2012] and
Annual Performance Plan for 2012-13 [RP80- 2012].
(b) Strategic Plan of the Compensation Fund for 2012-17.
(c) Strategic Plan of the Unemployment Insurance Fund (UIF) for 2011-12 to
2015-16 and Annual Performance Plan for 2012-13.
(27) The following paper is referred to the Portfolio Committee on Public
Enterprises for consideration and report:
(a) Strategic Plan of the Department of Public Enterprises for 2012-13 to 201617 and Annual Performance Plan for 2012-13.
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(28) The following papers are referred to the Portfolio Committee on Science and
Technology for consideration and report:
(a) Annual Performance Plan of the Department of Science and Technology for
2012-13.
(b) Strategic Plan of the Council for Scientific and Industrial Research (CSIR)
for 2012-13 to 2014-15.
(c) Strategic Plan of the Technology Innovation Agency for 2012-13 to 2016-17
and Annual Performance Plan for 2012-13.
(d) Strategic Plan of the Africa Institute of South Africa (AISA) for 2012-13 to
2016-17.
(e) Strategic Plan of the Human Sciences Research Council (HSRC) for 201217.
(f)
Strategic Plan of the National Research Foundation (NRF) for 2008-15 and
Annual Performance Plan for 2012-15.
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(g) Strategic Plan of the South African National Space Agency (Sansa) for 201217 and Annual Performance Plan for 2012-13.
(h) Strategic Plan of the Academy of Science of South Africa (Assaf) for 201213 to 2016-17.
(29) The following papers are referred to the Portfolio Committee on Social
Development for consideration and report:
(a) Annual Performance Plan of the Department of Social Development for
2012-13 [RP92-2012].
(b) Strategic Plan of the South African Social Security Agency (Sassa) for 201213 to 2016-17 [RP07-2012] and Annual Performance Plan for 2012-13 to
2014-15 [RP08-2012].
(c) Strategic Plan of the National Development Agency for 2011-16 [RP9-2011].
(d) Strategic Plan of the National Development Agency for 2012-17 [RP822012].
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(e) Strategic Plan of the Department of Social Development for 2012-13 to
2014-15 [RP93-2012].
(30) The following paper is referred to the Portfolio Committee on Sport and
Recreation for consideration and report:
(a) Strategic Plan of the Department of Sport and Recreation South Africa for
2012-16 and Annual Performance Plan for 2012-13.
(31) The following papers are referred to the Standing Committee on
Appropriations for consideration and report:
(a) Strategic Plan of the Department of Performance Monitoring and Evaluation
for 2011-12 to 2015-16.
(b) Strategic Plan (MTEF) of the Brand South Africa for 2012-16 and Annual
Performance Plan for 2012-13.
(c) Strategic Plan of the National Youth Development Agency (NYDA) for
2012-17 and Annual Performance Plan for 2012-13.
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(d) Annual Performance Plan of the Department of Performance Monitoring and
Evaluation for 2012-13.
(32) The following papers are referred to the Portfolio Committee on Tourism for
consideration and report:
(a) Strategic Plan of the Department of Tourism for 2010-11 to 2014-15 and
Annual Performance Plan (Review) for 2012-13.
(b) Updated Strategic Plan of South African Tourism for 2012-13 and Annual
Performance Plan for 2012-13.
(33) The following papers are referred to the Portfolio Committee on Transport for
consideration and report:
(a) Strategic Plan of the Railway Safety Regulator (RSR) for 2010-11 [RP2742011].
(b) Strategic Plan of the Road Traffic Management Corporation for 2011-15 and
Annual Performance Plan for 2012-15.
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(c) Strategic Plan of the Road Accident Fund (RAF) for 2013-17 and Annual
Performance Plan for 2012-13.
(d) Strategic Plan (Corporate and Budget Plan) of the Airports Company of
South Africa (ACSA) for 2012-15.
(e) Strategic Plan (Revised) of the Department of Transport for 2011-12 to 201314.
(f)
Corporate Plan of the Air Traffic and Navigation Services Company Ltd for
2012-13 to 2014-15.
(g) Strategic Plan of the Cross-Border Road Transport Agency (CBRTA) for
2012-15 and Annual Performance Plan for 2012-13.
(h) Corporate Plan of the Passenger Rail Agency of South Africa (Prasa) for
2012-13 to 2014-15.
(i)
Strategic Plan of the South African Civil Aviation Authority (SACAA) for
2012-13 to 2017 and Annual Performance Plan for 2012-13.
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Strategic Plan of the South African National Roads Agency SOC Limited
(Sanral) for 2012-13 to 2016-17 and Annual Performance Plan for 2012-13
to 2014-15.
(k) Annual Performance Plan of the South African Maritime Safety Authority
(Samsa) for 2012-13.
(l)
Strategic Plan of the Railway Safety Regulator (RSR) for 2012-13 to 201617.
(m) Strategic Plan of the Road Traffic Infringement Agency (RTIA) for 2012-15
and Annual Performance Plan for 2012-13.
(n) Strategic Plan of the Ports Regulator of South Africa for 2012-13 to 2014-15.
(o) Strategic Plan of the Driving License Card Account for 2012-13 to 2014-15
and Annual Performance Plan for 2011-12.
(34) The following papers are referred to the Portfolio Committee on Water and
Environmental Affairs for consideration and report:
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(a) Strategic Plan of the Department of Environmental Affairs for 2012-13 to
2016-17 Annual Performance Plan for 2012-13.
(b) Revised Strategic Plan of the Department of Water Affairs for 2012-13 to
2016-17 and Annual Performance Plan for 2012-13 to 2014-15.
(c) Strategic Plan (Corporate Strategy) of the iSimangaliso Wetland Park
Authority for 2013-17.
(d) Annual Performance Plan of the South African Weather Service for 2012-13.
(e) Strategic Plan of the South African National Parks for 2012-13 to 2016-17.
(f)
Strategic Plan of the South African National Biodiversity Institute (Sanbi) for
2012-17 and Annual Performance Plan for 2012-13.
(35) The following paper is referred to the Portfolio Committee on Water and
Environmental Affairs for consideration:
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(a) Letter from the Minister of Water and Environmental Affairs, dated 23
February 2012, to the Speaker of the National Assembly, explaining the
delay in the submission of the Annual Reports of the Water Boards to
Parliament.
(36) The following papers are referred to the Portfolio Committee on Public Works
for consideration and report:
(a) Strategic Plan of the Department of Public Works for 2012-16 and Annual
Performance Plan for 2012-14.
(b) Strategic Plan of the Agrément South Africa (ASA) for 2012-13 to 2016-17
and Annual Performance Plan for 2012-13.
(c) Strategic Plan of the Construction Industry Development Board (CIDB) for
2011-12 to 2015-16 and Annual Performance Plan for 2012-13.
(d) Strategic Plan of the Council for the Built Environment for 2012-17 and
Annual Performance Plan for 2012-15.
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(e) Corporate Strategic Plan of the Independent Development Trust for 2012-13
to 2016-17.
(37) The following papers are referred to the Portfolio Committee on Mineral
Resources for consideration and report:
(a) Annual Performance Plan of the Department of Mineral Resources for 201213 [RP03-2011].
(b) Strategic Plan of the South African Diamond and Precious Metals Regulator
for 2012-13 to 2014-15 and Annual Performance Plan for 2012-13.
(c) Strategic Plan of the Council for Mineral Technology (Shareholder
Performance Agreement) for 2012-13.
(d) Strategic Plan and Budget of the Mine Health and Safety Council (MHSC)
for 2012-13 to 2016-17.
(e) Annual Performance Plan of the Council for Geoscience for 2012-13.
EPE 24 APRIL 2012
(f)
PAGE: 248 of 429
Strategic Plan and Budget of the State Diamond Trader for 2012-15.
(38) The following papers are referred to the Portfolio Committee on Water and
Environmental Affairs:
(a) Amatola Water Board’s proposed increase in water tariffs for 2012-13, tabled
in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(b) Bloem Water Board’s proposed increase in water tariffs for 2012-13, tabled
in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(c) Botshelo Water Board’s proposed increase in water tariffs for 2012-13,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(d) Bushbuckridge Water Board’s proposed water tariffs for 2012-13, tabled in
terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
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(e) Lepelle Northern Water Board’s proposed increase in water tariffs for 201213, tabled in terms of section 42 of the Local Government: Municipal
Finance Management Act, 2003 (Act No 56 of 2003).
(f)
Magalies Water Board’s proposed increase in water tariffs for 2012-13,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(g) Mhlathuze Water Board’s proposed increase in water tariffs for 2012-13,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(h) Overberg Water Board’s proposed increase in water tariffs for 2012-13,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(i)
Pelladrift Water Board’s proposed water tariffs for 2012-13, tabled in terms
of section 42 of the Local Government: Municipal Finance Management Act,
2003 (Act No 56 of 2003).
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(j)
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Rand Water Board’s proposed increase in water tariffs for 2012-13, tabled in
terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(k) Sedibeng Water Board’s proposed increase in water tariffs for 2012-13,
tabled in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(l)
Umgeni Water Board’s proposed increase in water tariffs for 2012-13, tabled
in terms of section 42 of the Local Government: Municipal Finance
Management Act, 2003 (Act No 56 of 2003).
(m) Government Notice No R139, published in Government Gazette No 35062,
dated 24 February 2012: Regulations regarding the safety of dams made in
terms of section 123(1) of the National Water Act, 1998 (Act No 36 of 1998).
(n) Government Notice No R138, published in Government Gazette No 35061,
dated 24 February 2012: Regulations regarding the safety of dams made in
terms of section 123(1) of the National Water Act, 1998 (Act No 36 of 1998)
(Sepedi version).
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(39) The following paper is referred to the Portfolio Committee on Rural
Development and Land Reform for consideration and report:
(a) Strategic Plan and Budget of the Ingonyama Trust Board for 2012-2013.
(40) The following papers are referred to the Portfolio Committee on Trade and
Industry:
(a) Government Notice No 133, published in Government Gazette No 35053,
dated 24 February 2012: Proposed prohibition on the use of the Construction
Industry Development Board logo in terms of section 13 of the Merchandise
Marks Act, 1941 (Act No 17 of 1941).
(b) General Notice No 142, published in Government Gazette No 35063, dated
22 February 2012: Notice of exemption granted in terms of section 10 of the
Housing Development Schemes for Retired Persons Act, 1988 (Act No 65 of
1988).
(c) General Notice No 143, published in Government Gazette No 35065, dated
24 February 2012: Notice that the Liquor Act (No 27 of 1989) shall cease to
operate in the Western Cape Province from 1 April 2012 in terms of
Schedule 1, item 2(3)(a), of the Liquor Act, 2003 (Act No 59 of 2003).
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(41) The following paper is referred to the Portfolio Committee on Public
Enterprises:
(a) Tariff increase for 2012-13 and amendment to Eskom's pricing structure for
municipalities, tabled in terms of section 42(4) of the Local Government:
Municipal Finance Management Act, 2003 (Act No 56 of 2003), and
supporting documents required in terms of section 42(3) of the same Act.
(42) The following paper is referred to the Portfolio Committee on Home Affairs:
(a) Employment Equity Report of the Department of Home Affairs for 1 October
2010 to 30 September 2011, tabled in terms of section 22(2) of the
Employment Equity Act, 1998 (Act No 55 of 1998).
(43) The following papers are referred to the Standing Committee on Finance:
(a) Government Notice No R102, published in Government Gazette No 35027,
dated 10 February 2012: Amendment of Rules (DAR/99) in terms of sections
59A, 60, 64D, 101A, 119A, 120 and 120A of the Customs and Excise Act,
1964 (Act No 91 of 1964).
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(b) Government Notice No R105, published in Government Gazette No 35030,
dated 10 February 2012: Imposition of provisional payment (PP/136) in
terms of section 57A of the Customs and Excise Act, 1964 (Act No 91 of
1964).
(c) General Notice No R123, published in Government Gazette No 35050, dated
15 February 2012: Approval of municipal taxes regulations in terms of
sections 5, 6, 10 and 12 of the Municipal Fiscal Powers and Functions Act,
2007 (Act No 12 of 2007).
(d) Government Notice No 119, published in Government Gazette No 35044,
dated 24 February 2012: Determination of the daily amount in respect of
meals and incidental costs for the purposes of section 8(1) of the Income Tax
Act, 1962 (Act No 58 of 1962).
(e) Government Notice No 140, published in Government Gazette No 35064,
dated 24 February 2012: Fixing of rate per kilometer in respect of motor
vehicles as required in terms of section 8(1) of the Income Tax Act, 1962
(Act No 58 of 1962).
(44) The following paper is referred to the Portfolio Committee on Women,
Children and People with Disabilities for consideration, and to the Portfolio
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Committee on Home Affairs, Portfolio Committee on Trade and Industry,
Portfolio Committee on Public Enterprises, Portfolio Committee on
International Relations and Cooperation, Portfolio Committee on Public
Service and Administration and the Joint Standing Committee on
Intelligence:
(a) Commission for Gender Equality: Gender Barometer Report (Case Studies
2010).
(45) The following papers are referred to the Portfolio Committee on Social
Development:
(a) Report of the Central Drug Authority (CDA) for 2010-11 [RP264-2011].
(b) Report of the Central Drug Authority (CDA) for 2009-10 [RP272-2010].
TABLINGS
National Assembly and National Council of Provinces
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1.
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The Minister of Finance
(a)
Strategic Plan of the Department of National Treasury for 2012/16 and Annual
Performance Plan for 2012/16.
(c)
Strategic Plan of the Independent Regulatory Board for Auditors (IRBA) for
2012/13 – 2014/15.
(c)
Strategic Plan of the Co-operative Banks Development Agency for 2012 – 2015.
(d)
Strategic Plan of the Financial Services Board for 2013 – 2017.
(e)
Strategic Plan of the Government Pensions Administration Agency for 2012 –
2015.
(f)
Strategic Plan of the Financial Intelligence Centre and Annual Performance Plan
for 2012/13 – 2016/17.
(g)
Strategic Plan of the Public Investment Corporation for 2012/2013.
(h)
Strategic Plan (Corporate Plan) of the Land Bank for 2012/13 – 2014/15.
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Strategic Plan (Corporate Plan) and Budget of the South African Special Risk
Insurance Association (SASRIA) for 2012 – 2013.
2.
The Minister of Defence and Military Veterans
(a)
Strategic Plan of the South African National Defence Force for 2011 – 2015 [RP
30-2011].
(b)
Annual Performance Plan of the South African National Defence Force for 2011
[RP 29-2011].
TUESDAY, 3 APRIL 2012
ANNOUNCEMENTS
National Assembly
The Speaker
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Introduction of Bills
(1)
The Minister of Finance
(a)
Financial Markets Bill [B 12 – 2012] (National Assembly – proposed sec
75) [Explanatory summary of Bill and prior notice of its introduction
published in Government Gazette No 35022 of 7 February 2012.]
Introduction and referral to the Standing Committee on Finance of the
National Assembly, as well as referral to the Joint Tagging Mechanism
(JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill
may be submitted to the JTM within three parliamentary working days.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Energy
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(a)
PAGE: 258 of 429
Strategic Plan of the South African National Energy Development Institute
(SANEDI) for 2012/13 – 2016/17 and Annual Performance Plan and Budget for
2012/13.
TUESDAY, 17 APRIL 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Spatial Planning and Land Use Management Bill, submitted by the Minister of
Rural Development and Land Reform.
Referred to the Portfolio Committee on Rural Development and Land Reform
and the Select Committee on Land and Environmental Affairs.
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TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
2.
Strategic Plan and Budget of the Public Protector of South Africa for 2012-2015.
The Minister of Justice and Constitutional Development
(a)
Progress report dated 26 March 2012 on the provisional suspension from office of
Magistrate M T Masinga, a magistrate in Umlazi, tabled in terms of section
13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993).
(b)
Progress report dated 26 March 2012 on the provisional suspension from office of
Magistrate C M Dumani, a magistrate in Graaff-Reinet, tabled in terms of section
13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993).
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(c)
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Progress report dated 26 March 2012 on the provisional suspension from office of
Magistrate I W O M Morake, a magistrate in Lichtenburg, tabled in terms of
section 13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993).
(d)
Progress report dated 26 March 2012 on the provisional suspension from office of
Magistrate T R Rambau, a magistrate in Limpopo, tabled in terms of section
13(3)(f) of the Magistrates Act, 1993 (Act No 90 of 1993).
(e)
Report on the suspension from office on the grounds of misconduct of Mr M
Tyulu, additional magistrate at Cape Town, tabled in terms of section 13(4)(b) of
the Magistrates Act, No 90 of 1993.
(f)
Register of Debt Collectors in terms of section 12(1)(a) of the Debt
Collectors Act, 1998 (Act No 114 of 1998).
3.
The Minister of Trade and Industry
(a)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Cuba on Economic Assistance, tabled in
terms of section 231(2) of the Constitution.
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(b)
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Explanatory Memorandum to the Agreement between the Government of the
Republic of South Africa and the Government of the Republic of Cuba on
Economic Assistance.
(c)
General Notice No 174 published in Government Gazette No 35092 dated 2
March 2012: Codes of Good Practice on Broad-Based Black Economic
Empowerment: For public comments, tabled in terms of the Broad-Based Black
Economic Empowerment Act, 2003 (Act No 53 of 2003).
(d)
General Notice No 251 published in Government Gazette No 35167 dated 26
March 2012: Codes of Good Practice on Broad-Based Black Economic
Empowerment: For public comments, tabled in terms of the Broad-Based Black
Economic Empowerment Act, 2003 (Act No 53 of 2003).
National Assembly
1.
The Speaker
(a)
Report on how the Division of Revenue Bill and National Budget give effect to
recommendations in reports of the Standing Committee on Appropriations on the
division of revenue and conditional grant allocations to provinces and local
governments proposed in the Medium-Term Budget Policy Statement (MTPBS)
and to recommendations in reports of the Standing Committee on Finance on the
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fiscal framework proposed in the MTBPS, as well as to recommendations in
Budgetary Review and Recommendation (BRR) Reports, tabled in terms of
section 7(4) of the Money Bills Amendment Procedure and Related Matters Act,
2009 (No 9 of 2009).
COMMITTEE REPORTS
National Assembly and National Council of Provinces
1.
REPORT OF THE AD HOC JOINT COMMITTEE FOR THE APPOINTMENT
OF CANDIDATES TO THE NATIONAL YOUTH DEVELOPMENT AGENCY
BOARD ON THE SHORTLISTED CANDIDATES FOR INTERVIEWS DATED
11 APRIL 2012
The Ad Hoc Joint Committee for the appointment of candidates to the National Youth
Development Agency (NYDA) Board (the Committee) having considered all the
nominations for persons to serve on the Board on 11 April 2012, reports as follows:
The National Youth Development Agency Board was established in terms of the
National Youth Development Agency Act (54 of 2008) and consists of seven members.
Its functions are to manage the affairs of the National Youth Development Agency and
exercise control over its powers and the execution of its functions. Members of the
Board hold office for a period of three (3) years.
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The Committee was established in terms of Joint Rule 138 (see minutes of National
Assembly dated 24 November 2011 and National Council of Provinces dated 6 March
2012).
An advertisement calling for nominations for persons to serve on the Board has been
published in print media from 16 to 23 March 2012. The deadline for such submissions
was 30 March 2012 at 12:00pm. The Committee resolved that interviews be held from
23 to 24 April 2012 in Parliament.
The Ad Hoc Joint Committee for the appointment of members to the National Youth
Development Agency Board after considering all nominations received; invited the
following candidates to interviews:
1.
Xoliswa Ayanda Bambiso
2.
Marten Subramoney Govender
3.
Olwethu Sipuka
4.
Hlanganani Siphelele Gumbi
5.
Maria Tshabalala
6.
Mandla Macbeth Ncongwane
7.
Thulani Thobela Tshefuta
8.
Gert Johannes Petrus Nell
9.
Fezile Wycliff Nondonga
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10.
Andile Lungisa
11.
Maropene Lydia Ntuli
12.
Thabiso Ephrahim Teffo
13.
Itiseng Kenny Morolong
14.
Yershen Pillay
15.
Ezra Boithumelo Letsoalo
16.
Lerato Jacobeth Thulo
17.
Zandile Majozi
18.
Mcebo Rich Khumalo
19.
Nyalleng Potloane
20.
Paul Rawule Nkosi
21.
Mothupi Phaladi Modiba
22.
Vuyokazi Malafu
23.
Ngoako Abel Rangata
WEDNESDAY, 18 APRIL 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
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1.
PAGE: 265 of 429
Draft Bills submitted in terms of Joint Rule 159
(1)
Prevention and Combating of Torture Bill, submitted by the Minister of
Justice and Constitutional Development.
Referred to the Portfolio Committee on Justice and Constitutional
Development and the Select Committee on Security and Constitutional
Development.
National Assembly
The Speaker
1.
Membership of Committees
(a)
The following changes to Committee membership have been made by the
Democratic Alliance:
Portfolio Committee on Transport
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Discharged:
Terblanche, Mrs J
Appointed:
Krumbock, Mr G
Portfolio Committee on Economic Development
Discharged:
Krumbock, Mr G
Standing Committee on Appropriations
Discharged:
Mubu, Mr K
Appointed:
Van Dyk, Dr SM
Portfolio Committee on Science and Technology
Discharged:
Van Dyk, Dr SM
Appointed:
Terblanche, Mrs J
TABLINGS
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National Assembly and National Council of Provinces
1. The Minister of Higher Education and Training
(a)
Strategic Plan of Media, Information and Communication Technologies Sector
Education and Training Authority (MICT-SETA) for 2012 – 2016.
Please Note: The above report has been submitted to Parliament on 7 March
2012.
2.
The Minister of Finance
(a)
Financial Agreement between the Government of the Republic of South Africa
and the European Union concerning the Technical Cooperation and official
Development assistance Programme, tabled in terms of section 231(3) of the
Constitution, 1996.
(b)
Financial Agreement between the Government of the Republic of South Africa
and the European Union concerning the Primary Health Care Sector Policy
Support Programme, tabled in terms of section 231(3) of the Constitution, 1996.
(c)
Agreement between the Government of the Republic of South Africa and the
Federal Republic of Germany concerning Financial Cooperation in 2010, tabled in
terms of section 231(3) of the Constitution, 1996.
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(d)
PAGE: 268 of 429
Agreement between the Government of the Republic of South Africa and the
Federal Republic of Germany concerning Technical Cooperation in 2010, tabled
in terms of section 231(3) of the Constitution, 1996.
3.
The Minister of Justice and Constitutional Development
(a)
Annual Report of the National Conventional Arms Control Committee (NCACC)
for the year ended December 2011, tabled in terms of section 23(1)(c) of the
National Conventional Arms Control Act, 2002 (Act No 41 of 2002).
THURSDAY, 19 APRIL 2012
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Membership of Assembly
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(a)
PAGE: 269 of 429
The vacancies which occurred in the National Assembly owing to the resignations
of Ms N Y Vukuza-Linda and Mr P D Dexter have been filled with effect from 26
March 2012 by the nomination of Ms C K K Mosimane and Ms B D Ferguson
respectively.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Social Development
(a)
Strategic Plan of the National Development Agency for 2012-2017 [RP 82-2012].
(b)
Annual Performance Plan of the National Development Agency for 2012-2013
[RP 82-2012].
2.
The Minister of Water and Environmental Affairs
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(a)
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Report and Financial Statements of Botshelo Water for 2010-2011, including the
Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011.
(b)
Yearly Report to Parliament on international environmental instruments (201112), tabled in terms of section 26(1) of the National Environmental Management
Act, 1998 (Act No 107 of 1998).
FRIDAY, 20 APRIL 2012
COMMITTEE REPORTS
1.
REPORT OF THE PORTFOLIO COMMITTEE ON HEALTH ON BUDGET
VOTE 16 AND THE STRATEGIC PLAN OF THE DEPARTMENT FOR 2012/13 2014/15, DATED 19 APRIL 2012
1.
INTRODUCTION
The briefing on Budget Vote 16 took place on the 18 April 2012.
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The Director General, Ms MP Matsoso led the delegation. The delegation included the
Deputy Director-General, Corporate Services, Ms T Rennie; Chief Financial Officer, Mr I
Van der Merwe; Director: Strategic Planning, Ms M Wolmarans and the Parliamentary
Liaison Officer in the Office of the Minister, Mr Joe Kgatla.
2.
OVERVIEW OF THE DEPARTMENT OF HEALTH (DOH) KEY PRIORITY
STRATEGIC FOCUS AREAS
The Department of Health aimed to provide leadership and coordination of health services to
promote a long and healthy life for all South Africans. The Strategic Plan of the department
was drawn mainly from the State of the Nation Address (SONA), the Budget Speech by the
Minister of Finance and the lessons drawn from the Department’s programme performance
over the last couple of years.
The structure of the Department of Health’s budget changed considerably in the previous
financial year, with some programmes being either combined, shifted to other programmes or
discontinued. The Department also introduced new sub-programmes, and changed the titles
of the programmes accordingly.
Government adopted an outcome-based approach to service delivery and the health sector
was responsible for the achievement of Outcome 2: Long and healthy life for all South
Africans. The following were the four identified outputs:
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Output 1: Increasing Life Expectancy
Output 2: Decreasing Maternal and Child mortality
Output 3: Combating HIV and AIDS and decreasing the burden of disease from
Tuberculosis
Output 4: Strengthening Health System Effectiveness
In Strengthening the Health System Effectiveness, the Department would focus on the
following inputs:

Primary Health Care Orientated Service Delivery,

Improved quality of services,

Improved Human Resources for Health,

Improved access to Health facilities,

Improved financial management,

National Health insurance,

Health information, and

Inter-sectoral action for social determinants of Health.
The expected outcomes were:
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
Reduced Maternal and Child Mortality rates,

Reduced burden from HIV&AIDS and TB (Mortality and Morbidity),

Reduced burden from non-communicable diseases, and

Reduced burden from violence and injury.
THE IMPLEMENTAION OF THE HEALTH SECTOR’S RESPONSE
3.
DURING 2012/13 – 2014/15 ARE AS FOLLOWS:
3.1
PREPARATION FOR THE IMPLEMENTATION OF NHI
Progress on Phase 1 Deliverables of Green Paper on the National Health Insurance was as
follows:

Preparation of the legal framework for the establishment of the NHI fund.

The Green Paper was released for public consultation on 12 August 2011.

Public consultations ended on the 30 December 2011.

The Department was currently evaluating and reviewing written inputs.
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
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Regulations on designations of hospitals and policy on management of hospitals were
released for public comments on 12 August 2011.

Posts for Hospital CEO were advertised in February 2012.

The establishment of the Office of Health Standard Compliance Bill was tabled in
Parliament in December 2011.

3.2
Initiated NHI pilots in 10 selected Districts during 2012/13.
SCALE UP THE COMBINATION OF PREVENTION INTERVENTIONS TO
REDUCE NEW HIV INFECTIONS
The key strategic interventions during 2012/13 to 2014/15 would include:

Increasing the number of Medical Male Circumcision to 600 000 during 2012/13, 800
000 during 2012/12 and 1 000 000 during 2014/15.

Increasing the HIV Counseling and Testing (HCT) uptake rate and the number of HIV
tests done annually which would be 18 million in the current financial year, 20
million during 2013/14 and 22 million during 2014/15.

Number of new patients initiated on Antiretroviral Therapy (ART) was targeted at
between 500 000 to 550 000 annually during 2012/13 and 2014/15.
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
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Increasing the proportion of Primary Health Care (PCC) facilities implementing
nutritional intervention for people living with HIV and AIDS and TB from 80% in
2011/12 to 100% in 2014/15.
3.3
REDUCE INFANT, CHILD AND YOUTH MORBIDITY AND MORTALITY
Key strategic interventions during 2012/13 to 2014/15 would include:

Maintaining the percentage of children under 1-year of age fully immunized at 90%
throughout the MTEF period.

Maintaining the measles immunization coverage rate of 90% throughout the MTEF
period.

Increasing the Vitamin Supplementation coverage among children 12 to 59 months
from 40% in 2011/12 to 55% in 2014/15.

Providing integrated school health services at 80% of quintile 1 schools during
2012/13, 90% in 2013/14 and 95% in 2014/15.

Assessing grade 1 learners in quintile 1 and 2 schools targeting 680 000 learners in
2012/13, and this would be increased to 807 500 learners during 2014/15.

Assessing grade 8 learners in quintile 1 schools targeting 65100 learners in 2012/13,
and that would increase to 156 240 learners in 2014/14
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3.4
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REDUCE MATERNAL MORTALITY
Key strategic interventions during 2012/13 to 2014/15 would include:

Maintaining ante-natal coverage rate of 100% throughout the MTEF period.

Increasing the antenatal coverage before 20 weeks from 37% in 2010/11 to 65% in
2014/15.

Increasing the proportion of deliveries taking place in health facilities under the
supervision of trained personnel from 86.5% in 2010/11 to 96% in 2014/15.

Increasing the percentage of mothers and babies who received post-natal care within 6
days of delivery from 30% in 2010/11 to 82% in 2014/15.
3.5
IMPROVED ACCESS TO SEXUAL AND REPRODUCTIVE HEALTH
Key strategic interventions during 2012/13 to 2014/15 would include

Increasing the cervical cancer screening coverage from 52% in 2010/11 to 58% by
2014/15.

Increasing the couple year protection rate from 32% in 2010/11 to 37% by 2014/15.

Providing contraceptive services in 80% of health facilities in 2012/13, 85% in
2013/14 and 90% in 2014/15.
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EXPAND PREVENTION OF MOTHER TO CHILD TRANSMISSION
PMTCT) COVERAGE TO PREGNANT WOMEN
Key strategic interventions during 2012/13 to 2014/15 would include:

Ninety eight percent (98%) of pregnant women tested for HIV. The target was to
reduce to 0% the number of children who were born HIV+ in South Africa.

Increasing the antenatal clients initiated on HAART rate from 79.4% in 2010/11 to
95% in 2014/15.

Decreasing the percentage of babies testing PCR positive six weeks after birth from
3.5% in 2010 to 2% in 2014/15.
3.7
REDUCE THE BURDEN OF DISEASE OF TUBERCULOSIS
Key strategic interventions during 2012/13 to 2014/15 would include:

Increasing the TB cure rate from 72% to 90% by 2014/15.

Reducing the TB treatment defaulter rate from 7% in 2010/11 to less than 5% in
2014/15
3.8
COMBATING TB AND HIV BY REDUCING THE CO-INFECTION BURDEN
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Key strategic interventions during 2012/13 to 2014/15 would include:

Increasing the percentage of HIV positive patients screened for TB from 71% in
2010/11 to 90% in 2014/15.

Increasing the percentage of TB patients tested for HIV from 68% in 2010/11 to 90%
in 2014/15.

Increasing the percentage of TB and HIV co-infected patients receiving
Cotrimoxazole Prophylaxis Therapy from 71% in 2010/11 to 100% in 2014/15.

Increasing the number of HIV positive patients receiving Isoniazid Preventative
Therapy (IPT) from 210 396 in 2010/11 to 500 000 in 2014/15.
3.9
RE-ENGINEERING OF PRIMARY HEALTH CARE
Key strategic interventions during 2012/13 to 2014/15 would include the:

Implementation of community based services in each district by establishing Family
Health Teams, 500 in 2012/13, 1000 in 2013/14 and 2000 in 2014/15.

Improvement of access to primary health care services, with an increased utilization
rate of 3.2 visits by 2014/15.
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
PAGE: 279 of 429
Implementation of the Districts Specialists teams, 10 districts in 2012/13, an
additional 20 districts in 2013/14 with a total of 50 districts in 2014/15.

Improvement of the percentage of Primary Health Care facilities that receive a
monthly supervisory visit from 68.4% in 2010/11 to 90% in 2014/15.
3.10
FUNCTIONAL DISTRICT HEALTH SYSTEM
The key strategic interventions during 2012/13 to 2014/15 would include the:

Revision of the District Health System Policy.

Development of an inter-sectoral framework for addressing the Social Determinants
of Health.

Support of the development of 52 Districts Health plans aligned to the Health Sector
priorities.
3.11
REDUCE THE BURDEN OF DISEASE FROM COMMUNICABLE AND
NON-COMMUNICABLE DISEASES
The key strategic interventions during 2012/13 to 2014/15 would include:

Decreasing the incidence of malaria from 0.62 per 1000 people at risk in 2010/11 to
0.34 per 1000 people at risk in 2014/15.
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
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Chronic care, whether from communicable or non-communicable causes would be
aligned and a single chronic care model would be rolled out to 10 districts by
2014/15.

Introducing legislation on alcohol advertising and enacting regulations on salt content
in food products.

Strengthening the quality of Environmental Health Services, Norms and Standards
would be developed and implemented by 2014/15.
3.12
ACCELERATE THE DELIVERY OF HEALTH INFRASTRUCTURE
The key strategic interventions during 2012/13 to 2014/15 would include the:

Development and implementation of a national infrastructure plan in conjunction with
provincial infrastructure units and updated on an annual basis.

Maintenance of existing prioritized nursing colleges and schools, and the
development and implementation of an infrastructure master plan for nursing colleges
and schools.

Acceleration of the delivery of health infrastructure through Public Private
Partnerships (PPPs).

Completion of feasibility studies by all five tertiary hospitals and issued the request
for proposals by March 2013. These tertiary hospitals are:
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 Nelson Mandela Academic (Eastern Cape)
 Chris Hani Baragwanath (Gauteng)
 Dr. George Mukhari (Gauteng)
 Limpopo Academic (Limpopo)
 King Edward V111 (KwaZulu-Natal)
3.13
EFFICIENT MANAGEMENT OF HEALTH CARE TECHNOLOGY
The key strategic interventions during 2012/13 to 2014/15 would include the:

Commencement of the implementation of the Health Technology Strategy.

Revision of the Essential Equipment lists for all levels of care.

Finalisation of the standards for the use and maintenance of Health Care Technology.
3.14
IMPROVED HEALTH WORKFORCE PLANNING, MANAGEMENT AND
DEVELOPMENT
The key strategic interventions during 2012/13 to 2014/15 would include:
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* Norms and Standards for Health Workforce for Primary and Secondary Health Care
developed and gap analysis conducted.
* Standardized training programme for Community Health Workers in partnership with
FET and HWSETA.
3.15
IMPROVE THE QUALITY OF HEALTH SERVICES
The key strategic interventions during 2012/13 to 2014/15 would include the following:

During 2012/13, the Office of Health Standards Compliance would be established.

Patient satisfaction will be monitored and a patient satisfaction surveys would be
conducted in 90% of the 400 public hospitals during 2012/13 and 100% during
2013/14 and 2014/15.

Seventy five percent (75%) of public complaints would be resolved within 25 days
during 2012/13, increased to 80% during 2013/14 and 2014/15.

Twenty percent (20%) meaning that 800 of the 4, 333 public health facilities would be
assessed for compliance with the six priorities of the core standards. That figure
grows to 40% in 2013/14 and to 60% by 2014/15.
4.
BUDGET SUMMARY
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The Department of Health received R27.6 billion, which is 5% of the total appropriation in
the 2012/13 financial year. The total budget had increased in nominal terms by 6.12% and
increased slightly in real terms by 0.21%. The bulk of the budget (R26.2 billion or 95.3%)
would be transferred to provinces and municipalities for HIV and AIDS, TB and maternal,
child and women’s health and the hospitals, tertiary services and workforce development
programmes.
4.1
PROGRAMME ALLOCATIONS FOR 2012/13-2014/15
Programme 1: Administration
The Programme budget had decreased by 2.2% in nominal terms (7.7%) from R366 million
in 2011/12 to R357.09 million in 2012/13.
Programme 2: National Health Insurance, Health Planning and Systems Enablement
The Programme budget had increased by 94% from the 2011/12 financial year due to the
budget increase of the NHI sub-programme. The NHI received the largest portion of the
budget at 58% (R182.1 million) to develop and implement policies, legislation and
frameworks for expansion of health insurance to the broader population, amongst other
things. This represented an increase of more that 300.08%. The conditional grant for the pilot
NHI projects would amount to R150 million, R350 million and R500 million over the
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medium term expenditure framework. This grant would serve as an interim funding
mechanism until a more permanent funding source was established.
Programme 3: HIV and AIDS, TB and Maternal, Child and Women’s Health
This programme received the second largest allocation which amounted to R9.3 billion or
33.7% of the total budget. R9.2 billion of this budget is allocated to the HIV and AIDS sub
programme. The maternal and child health sub-programme declined by 40% from R51.07
million to R32.09 million. About 96.3% was transferred to provinces.
Programme 4: Primary Health Care Services
The Non-Communicable Diseases sub-programme received R27.2 million representing
31.2% of the programme’s budget allocation.
Programme 5: Hospitals, Tertiary Services and Workforce Development
This programme received 61.4% of the total health budget which was R16.9 billion. Most of
the budget was transferred to provinces.
Programme 6: Health Regulation and Compliance Management
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This programme budget had increased by 2.3% from 531.04 million to R575.08 million.
Most of the funds in this programme were allocated to Public Entities Management.
4.2
EXPENDITURE TRENDS
The Department’s expenditure grew from R16, 4 billion in 2008/09 to R25, 9 billion in
2011/12 at an average annual rate of 16, 5%. Over the Medium Term period, expenditure was
expected to grow to R33, 9 billion, at an average annual rate of 9, 25%. The increase in both
periods was driven largely by transfers to provinces for the conditional grants, with the main
increase being on the HIV and AIDS and the introduction of NHI grant and Nursing Colleges
grant.
MEDIUM TERM ALLOCATIONS FOR 2012/13 – 2014/15
4.3
The budget included new allocations of R97.6 million for 2012/13, R618.4 million for
2013/14 and R1.9 billion for 2014/15. The allocations were divided as follows:

Ten million per annum for the forensic chemistry laboratories to purchase equipment
and appoint staff to address backlogs.

Twenty million per annum for higher accommodation costs of renovated head-office
of the Department.
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
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Costs associated with annual wage increases (3 million per annum for the Medical
Research Council and 10 million per annum for the Department of Health).

R100 million, R150 million and R200 million to nursing colleges to plan and
coordinate the upgrading, recapitalising and maintaining nursing colleges following
the infrastructure audit.

Eight hundred and thirty four million for the HIV and AIDS conditional grant for the
rapidly growing treatment programme (lower threshold Cd4 count of 350) and to
strengthen prevention programmes.

One hundred and twenty eight million on Hospital Revitalisation grant to start making
provision for the first of five large hospital PPP projects.

One hundred and fifty million, R350 million and R500 million to cover the cost of
NHI pilots.

One hundred and eighty nine million, R231 million and R216 million increases for
effects of wage increases in National Treasury Services Grant (NTSG).
4.4
FUNDS EARMARKED FOR POLICY PRIORITIES
Funds earmarked for policy priorities would be allocated as follows:

R67 million, R70 million and 73.2 million for the forensic chemistry laboratories to
purchase equipment and appoint staff to address backlogs.
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
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R48.5 million, R40.1 million and R42.5 million to establish the Office of Standards
Compliance and support its inspectorate, certificate of compliance and ombudsman
functions.

R135 million in 2012/13, R140 million in 2012/13 and R148.4 million in 2013/14 to
increase the distribution of condoms.

R27 million, R23 million and R24.4 million for infrastructure management to build up
capacity in the department to oversee the hospital revitalisation projects and to
support planning and transaction advisor costs for large private public partnership
projects.

R7 million, R9 million, and R9.6 million for health technology to support provincial
upgrading for engineering workshops and equipment audits and to develop equipment
packages and systems for health technology.

R10 million to develop improve hospital tariff schedules linked to case mix for use by
provinces and the Road Accident Fund, including improved uniform patient fee
structure and developing diagnosis related groups (DRG) system.

R5 million per annum to plan and coordinate the second phase of upgrading,
recapitalising and maintaining nursing colleges following the infrastructure audit.

R10 million per annum for district health information systems, improving data quality
analysis and reporting.

R8.3 million, R10,2 million and R10,8 million for the Health Systems Trust to
support health systems research activities including the annual health review and
district health barometer.
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
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R2 million per year to publish standardised annual health statistics in the new annual
health statistics publication to facilitate performance auditing and better inform the
public and health service providers.

R19 million, R21.4 million and R22.6 million for the Compensation Commissioner
for Occupational Diseases to address backlogs in compensation, improve systems and
address problems identified in audit reports.

R9 million, R10.3 million and R11 million to establish a unit to monitor and support
provincial finances and improve audit outcomes.

R31.6 million, R33.4 million and R35. 4 million to establish SA Health Products
regulatory authority and IT system.
4.5
INFRASTRUCTURE SPENDING
This section reflects how the infrastructure spending would look like:

Three conditional grants for health infrastructure: Hospital Revitalisation, Health
Infrastructure and Nursing College grants.

Hospital Revitalisation Grant allocation over the MTEF was R4.1 billion, R4.2 billion
and R4.6 billion.

Health Infrastructure Grant allocations over the MTEF of R1.6 billion, R1.7 billion
and R1.8 billion and would focus on maintenance of institutions and smaller
upgrading projects in primary care institutions and hospitals.
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
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Nursing colleges grant was a new grant to upgrade nursing colleges. Allocation over
the MTEF was R100 million, R150 million and R200 million.
COMMITTEE’S CONCERNS
5.
The committee expressed the following concerns:

Primary Health Care was not getting the necessary attention it deserves from the
Department. This was also demonstrated by the cut in budget allocation for PHC.

6.
The Department did not have sufficient plans to deal with communicable disease.
CONCLUSION
Having considered the budget and the strategic plan and responses to questions by the
department, the Committee accepted the budget and would continue to do its oversight role
on the spending trends of the Department of Health.
Report to be considered.
2.
REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON THE
BUDGET VOTE 37 AND STRATEGIC PLANS OF THE DEPARTMENT OF
TRANSPORT AND ITS ENTITIES, DATED 19 APRIL 2012
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The Portfolio Committee of Transport, having considered Budget Vote 37: Transport and the
Strategic Plan of the Department of Transport for 2012-2014, as well as the Strategic Plans of
its entities, reports as follows:
1.
INTRODUCTION
The report contains the strategic objectives of the Department (the department) and its
entities presented to the Portfolio Committee on Transport (the Committee) on 16 and 17
March 2012. The Committee, in its oversight role over the ministry, the department and its
entities, has to consider the strategic plan of the department and its entities to determine
whether the funds requested are aligned to the stated objectives in the strategic plans.
The department oversees the following public entities:
1.1
Airports Company of South Africa (Acsa);
1.2
Air Traffic and Navigation Services Company (ATNS);
1.3
Cross-Border Road Transport Agency (CBRTA);
1.4
Ports Regulator;
1.5
Passenger Rail Agency of South Africa (Prasa);
1.6
Railway Safety Regulator (RSR);
1.7
Road Traffic Infringement Agency (RTIA);
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1.8
South African Civil Aviation Authority (SACAA);
1.9
South African National Roads Agency Limited (Sanral);
1.10
South African Maritime Safety Authority (Samsa);
1.11
Road Accident Fund (RAF); and
1.12
Road Traffic Management Corporation (RTMC).
2.
MANDATE OF THE DEPARTMENT
The Department of Transport, as the heartbeat of social and economic
development, provides the infrastructure for economic and social development in
South Africa.
The Department of Transport is tasked with providing safe, reliable, effective, efficient and
fully integrated transport operations and infrastructure that best meet the needs of freight and
passenger users. At the same time, the department is charged with providing the transport
infrastructure and services in a manner that is efficient and affordable to the individual and
corporate users, as well as the whole economy. In addition, it is mandated with ensuring
safety and security across all modes of transport.
In its commitment to discharging its mandate effectively and efficiently, the department has
re-organised itself into the following programmes:
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
Administration;

Integrated Transport Planning;

Rail Transport;

Road Transport;

Civil Aviation;

Maritime Transport; and

Public Transport.
PAGE: 292 of 429
The restructuring is the culmination of a process that commenced in 2009 with a view to
aligning the department’s structure with a new service delivery model and ensuring that each
branch is responsible for a particular mode of transport. The department was of the opinion
that the way in which it was structured posed a challenge and the fragmentation of functions
compromised accountability and proper strategic focus. The new structure augurs well for the
creation of jobs, the development of the country’s urban and rural communities, as well as the
improvement of logistics.
3.
OVERVIEW OF THE 2011/12 FINANCIAL YEAR
The following outcomes have been identified to guide and enable the department to deliver
on its mandate:
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
PAGE: 293 of 429
Outcome 1: An efficient and integrated transport infrastructure network for social
and economic development.

Outcome 2: A transport sector that is safe and secure.

Outcome 3: Improved rural access, infrastructure and mobility.

Outcome 4: Improved public transport systems.

Outcome 5: Increased contribution to job creation.

Outcome 6: Increased contribution of transport to environmental sustainability.
In 2011/12, the department made certain strides in an endeavour to deliver on its mandate.
Some of the activities carried out in line with outcome 1 included the completion of an
institutional framework, identification of projects and implementation plan for the 2050
Vision for the Durban-Gauteng Transport Corridor. A task team for the cost of Logistics
Study Framework was established and the macro-economic and industry analysis reports
were finalised. However, the research report outlining the cost of doing business in the
transport sector could not be produced by the set date (31 March 2011).
The department recorded several successes pertaining to outcome 2. These encompassed,
inter alia, the finalisation of a draft Southern African Development Community (SADC)
vehicle testing and overload standard and the completion and handover of all planned railway
police stations to the relevant authority. However, the Transport Sector Disaster Management
Plan could not be developed owing to financial constraints.
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As far as outcome 3 is concerned, the Non-Motorised Transport (NMT) Policy could not be
finalized as planned. The budget allocated for the rolling-out of the NMT facilities and
infrastructure in the six districts was shifted to the Rural Grant because the priority changed
to Road Asset Management Systems (RAMS) development.
In fulfilment of outcome 4, the department established Public Transport Integration
Committees in all provinces. Notwithstanding this, the National Scholar Transport Policy
could not be approved and implemented as the Department was still in the process of
engaging with the Department of Basic Education to clearly delineate lines of
responsibilities. It was still at a draft stage pending the approval of the migration of the policy
from the Department of Basic Education to the Department of Transport and also subject to
support from the Ministers and Members of the Executive Council (Minmec).
Concerning outcome 5, job targets were set for all provinces and preliminary discussions
were held with the South African Local Government Association (SALGA) on establishing
processes for engagement with municipalities on a range of roads development processes to
identify best practices of the Expanded Public Works Programme (EPWP).
With regard to outcome 6, the literature review for emissions was completed and a business
plan was developed. However due to the unavailability of funds, the Green House Gas
(GHG) inventory could not be compiled. Similarly, the department did not have sufficient
funds for the development of a strategy for noise reduction in all modes of transport. Equally,
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the appointment of a specialist service provider for developing Ballast Water Bill and
Regulations was halted due to limited funding.
4.
POLICY PRIORITIES FOR 2012/13
In terms of the outcomes-based performance management framework adopted by
Government, the department contributes mainly to the development of an efficient,
competitive and responsive economic infrastructure network (outcome 6). Achieving this
outcome requires the department to:

iImprove the quality of the country’s road network by extending and maintaining it;

build a rail network by promoting investment in rail commuter services and
developing a policy for freight rail;

develop the policy for well-functioning ports and efficient maritime infrastructure;

provide safe, reliable and integrated public transport networks by providing policy
guidance to local and provincial government; and

manage conditional grants to build the infrastructure and provide transport services.
In addition to the aforementioned, the department aims to reduce accidents within the
transport sector, particularly on the country’s roads. In discharging its policy and legislative
obligations, emphasis is placed on promoting job creation within the transport industry.
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Moreover, the department strives to reduce the impact of transport on the environment and
climate change by promoting energy efficient solutions and the use of cleaner fuels.
In his 2012 State-of-the-Nation Address, President Zuma identified transport as a catalyst for
the country’s socio-economic development. In this regard, developing and integrating rail and
road transport, expanding rail transport, improving the movement of goods and economic
integration through a Durban-Free State-Gauteng logistics and industrial corridor, upgrading
ten priority roads in the North West, expanding the iron-ore rail between Sishen in Northern
Cape and Saldanha Bay in the Western Cape and championing the North-South Rail Corridor
were provided as niches for the attainment of this objective.
The budget allocation of the department is in line with Government’s strategic objectives
raised in the State-of-the-Nation Address. This is evinced by massive investments in the road,
rail and public modes of transport which receive R17.9 billion, R10.2 billion and R9.9 billion
respectively. This constitutes 98.46 per cent of the department’s budget and it augurs well for
the nation’s economic growth and job creation. In addition, it will stand the country in good
stead for attracting investors and tourists.
The department has committed itself to building a modern and sustainable transport network
which connects communities, supports economy and protects the environment. But this is
indeed a challenge when set against the backdrop of the country’s inherited road and rail
backlogs. The top priority is therefore to tackle the legacy of backlogs and the budget
allocation strives to achieve that objective. It is, however, not clear how this budget will
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respond to one of the “triple challenges” that were highlighted by the President in the State of
the Nation Address, namely, inequality. Put differently, the budget allocation does not seem
to have a rural bias, with a view to addressing the stark contrast between the country’s urban
and rural state of infrastructure, with the former being relatively in good condition and the
latter being under-developed.
5.
BUDGET ANALYSIS
Table: Budget Allocations
Programme
R million
Administration
Budget
Nominal Real
Nomina
Real
Increase
Increase
l
Percent
/
/
Percent
change
Decreas
Decreas
change
in
e in
e in
in
2012/1
2012/13
2012/13 3
2011/12
2012/13
2012/13
292.2
317.5
25.3
7.6
101.8
88.5
- 13.3
- 18.2
749.1
175.3
8.66
2.60
-13.06
-17.91
7.84
1.84
Integrated Transport
Planning
10
Rail Transport
9 549.8
298.9
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21
17
-3
-4
Road Transport
733.7
928.8
804.9
803.8
-17.51
-22.10
Civil Aviation
67.1
70.0
2.9
- 1.0
4.32
-1.49
Maritime Transport
146.3
138.5
- 7.8
- 15.5
-5.33
-10.61
Public Transport
9 626.6
9 986.7
- 196.3
3.74
-2.04
TOTAL
41 517.5
38 828.9 -2 688.6
-4 851.9
-6.5
-11.69
360.1
(Source: National Treasury 2012 – Vote 37: Transport)
Of the R543.6 billion total appropriation by vote, the Department of Transport receives R38.8
billion in the 2012/13 financial year. This allocation constitutes 7.1 per cent of the national
budget. Compared to R41.5 billion that the department received in 2011/12, the 2012/13
budget allocation decreases by 6.5 per cent in nominal terms and 11.7 per cent in real terms.
The major transfers made by the department are as follows:
6.

Passenger Rail Agency of South Africa (R10.9 billion);

South African National Roads Agency Limited (R6.6 billion);

Provincial Road Maintenance Grant (R7.8 billion);

Public Transport Infrastructure and Systems Grant (R4.9 billion); and

Public Transport Operations Grant (R4.3 billion).
PROGRAMME ANALYSIS
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Programme 1: Administration
The Administration programme aims to coordinate and render effective, efficient strategic
support and administrative services to the Minister, Deputy Minister, Director-General and
department. This programme has five sub-programmes:

Ministry;

Management;

Corporate Services;

Communications; and

Office Accommodation.
The Administration programme received R292.2 million in 2011/12, which increases to
R317.5 million in 2012/13, constituting 8.7 per cent in nominal terms and 2.6 per cent in real
terms. The budget allocation for the Communications sub-programme increases significantly
by 54.4 per cent in nominal terms and 45.8 per cent in real terms, from R18.2 million in
2011/12 to R28.1 million in 2012/13.
Programme 2: Integrated Transport Planning
This programme supports, manages and facilitates national transport planning underpinned
by the national strategic planning framework and strategies. Further, it coordinates intersphere relations in relation to transport planning. Moreover it supports line functions and
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other spheres of government in creating seamless integration in transport operations. The
Integrated Transport Planning programme comprises the following sub-programmes:

Macro Sector Planning;

Logistics;

Modeling and Economic Analysis;

Regional Integration;

Research and Innovation; and

Integrated Transport Planning Administration Support.
The budget allocation for the Integrated Transport Planning programme decreases by 13.1 per
cent in nominal terms and 17.9 per cent in real terms. In 2011/12, this programme was
allocated R101.8 million and it receives R88.5 million in 2012/13. This is attributable to the
shifting of the funds from this programme to the Administration’s Management subprogramme.
The marked decrease is in the Integrated Transport Planning Administration Support subprogramme which decreases by 46.3 per cent in nominal terms and 49.3 per cent in real
terms. However, the allocation for the Research and Innovation sub-programme increases
drastically by 72.2 per cent in nominal terms and 62.6 per cent in real terms, from R3.6
million in 2011/12 to R6.2 million in 2012/13. The sub-programme’s activities for the
2012/13 financial year will include, inter alia, constructing a transport accessibility/multi
deprivation index for twelve rural districts and updating the transport innovation and
technology research strategy.
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Programme 3: Rail Transport
The Rail Transport programme facilitates and coordinates the development of sustainable rail
transport policies, strategies and systems. In addition, it exercises oversight over economic
and safety regulation. Five sub-programmes fall under the Rail Transport programme:

Rail Regulation;

Rail Infrastructure and Industry Development;

Rail Operations;

Rail Oversight; and

Rail Administration Support.
In 2011/12, the budget allocation for the Rail Transport programme was R9.5 billion and it
increases to R10.3 billion in 2012/13, indicating an increase of 7.8 in nominal terms and 1.8
per cent in real terms. The budget allocation constitutes 26.5 per cent of the department’s
budget. The Rail Oversight sub-programme receives the biggest share of the Programme’s
budget allocation, which is R10.67 billion, constituting a nominal increase of 7.9 per cent and
a real increase of 1.9 per cent from R9.17 billion that the programme received in 2011/12.
This sub-programme is responsible for transferring allocations to the rail public entities, the
Passenger Rail Agency of South Africa (Prasa) and the Railway Safety Regulator. The
allocation bodes well for Prasa’s rail revitalisation programme.
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Programme 4: Road Transport
The Road Transport programme is tasked with regulating road traffic management. It is also
responsible for ensuring that the maintenance and development of an integrated road
network, through the development of standards and guidelines and oversight of the road
agencies and provincial road expenditure. The programme is divided into five subprogrammes:

Road Regulation;

Road Infrastructure and Industry Development;

Road Oversight;

Road Administration Support; and

Road Engineering Standards.
Expenditure on the Road Transport programme decreases from R21.7 billion in 2011/12 to
R17.9 billion in 2012/13, translating into a decrease by 17.5 per cent in nominal terms and
22.1 per cent in real terms. Notwithstanding the decrease, the programme receives the largest
share of the department’s budget, that is, 46.2 per cent. The budget allocation for the Road
Regulation sub-programme decreases markedly from R455.9 million in 2011/12 to R37.9
million in 2012/13, constituting a 91.7 per cent nominal decrease and 92.2 per cent in real
terms. The Department made a transfer of R5 billion to Sanral in the 2011/12 financial year
for the Gauteng Freeway Improvement Project.
Programme 5: Civil Aviation
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The Civil Aviation programme is responsible for facilitating the development of an
economically viable air transport industry that is safe, secure, efficient, environmentally
friendly and compliant with international standards through regulation and investigation.
Moreover, it oversees the aviation public entities. The Civil Aviation programme has five
sub-programmes:

Aviation Regulation;

Aviation Infrastructure and Industry Development;

Aviation Safety and Security;

Aviation Oversight; and

Aviation Administration Support.
For the 2012/13 financial year, the Civil Aviation programme is allocated R70 million, up
from R67.1 million in 2011/12. This budget allocation increases by 4.3 per in nominal terms,
but in real terms decreases by 1.5 per cent. The programme’s budget allocation constitutes
only 0.2 per cent of the department’s budget. The Aviation Safety and Security subprogramme increases by 9.9 per cent in nominal terms and 3.8 per cent in real terms.
Programme 6: Maritime Transport
The Maritime Transport programme coordinates the development of a safe, reliable and
viable maritime transport sector through the development of policies, monitoring and
oversight of the maritime public entities. Five sub-programmes fall under the Maritime
programme:
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
Maritime Policy Development;

Maritime Infrastructure and Industry Development;

Implementation, Monitoring and Evaluations;

Maritime Oversight; and

Maritime Administration Support.
PAGE: 304 of 429
The programme budget decreases from R146.3 million in 2011/12 to R138.5 million in
2012/13, which is a decrease of 5.3 per cent in nominal terms and 10.6 in real terms. This
decline is a cause for concern given the skills shortage in the maritime sector and therefore
the job opportunities that may be created in this mode of transport. The highest decrease is in
the Maritime Infrastructure and Industry Development sub-programme, which decrease from
R46.7 million in 2011/12 to R8.1 million in 2012/13, translating into a decrease of 82.7 per
cent in nominal terms and 83.6 in real terms. This is notwithstanding the fact that the country
does not have a single ship on its register, which minimizes the opportunities for job creation.
The budget for the Maritime Policy Development sub-programme increases substantially by
113.9 per cent in nominal terms and 102.0 per cent in real terms, from R7.9 million in
2011/12 to R16.9 million in 2012/13.
Programme 7: Public Transport
The Public Transport programme is responsible for developing norms, standards, as well as
legislation intended to guide the development of public transport for rural and urban
passengers. It is also tasked with regulating interprovincial public transport and tourism
services. Moreover, the programme monitors and evaluates the implementation of the Public
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Transport Strategy and the National Land Transport Act (No.5 of 2009). The Public
Transport programme comprises six sub-programmes:

Public Transport Regulation;

Rural and Scholar Transport;

Public Transport Industry Development;

Public Transport Oversight;

Public Transport Administration Support; and

Public Transport Network Development.
The Public Transport programme received R9.6 billion in 2011/12, which increases to R10
billion in 2012/13, indicating an increase by 3.7 per cent in nominal terms, but in real terms a
decrease of 2.4 per cent. The programme’s budget allocation constitutes 23.19 per cent of the
department’s budget. The allocation for the Rural and Scholar Transport sub-programme
decreases drastically by 42.3 per cent in nominal terms and 45.5 per cent in real terms, from
R13 million in 2011/12 to R7.5 million in 2012/13. This excluded the equitable share
allocated by National Treasury to the provinces. Equally, the budget allocation for the Public
Transport Regulation sub-programme decreases from R24 million in 2011/12 to R18.2
million in 2012/13, translating into a decrease by 24.2 per cent in nominal terms and 28.4 per
cent in real terms.
7.
PUBLIC ENTITIES
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During the strategic planning, the Committee considered the strategic plans of the following
public entities:
7.1
Airports Company of South Africa (Acsa)
Airports Company of South Africa was established in 1993 as a listed company under the
Companies Act of 1973, as amended, and the Airports Company Act of 1993, as amended.
Acsa is majority-owned, i.e. 70% by the South African Government through the Department
of Transport. The Public Investment Corporation owns 20% and black economic
empowerment shareholders and employees hold the remainder.
The strategic objectives of Acsa are to build an efficient and customer focused business and
shareholder value creation. In the financial year Acsa will advance long term adjacency
strategy by analysing and defining market segmentation, value proposition and vision. It aims
to confirm its operating business model and explore alternative revenue models. The focus
will be to re-engineer key core business operations by developing a comprehensive
stakeholder management strategy, fix key current problems, improve short term human
resource performance and capability, continue to improve its financial position and credit
metrics and align its leadership. Acsa derives its revenue from aeronautical and nonauronautical services.
Estimated expenditure for 2012/13 is R5.85 billion.
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7.2
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Cross-Border Road Transport Agency (CBRTA)
The CBRTA is mandated through the SADC Protocol to take up the role of championing
regional integration by facilitating the unimpeded flow of cross-border freight and passengers
by road in order to promote trade and economic development with the SADC region. The
strategic goals of the entity are to enhance organisational performance, facilitate unimpeded
flow of cross-border transport, promote regional integration, promote safe and reliable crossborder transport, and positioning itself to enhance organisational sustainability
During 2011/2012 the entity faced challenges with regard to its engagement with operators
on the rationale for increasing permit tariffs. It called for the setting up of a Cross-Border
Operators Forum as a communication platform with cross-border operators on a quarterly
basis. There is currently no final resolution of the Lesotho/Free State passenger movement
resulting in non-adherence to SACU MOU. The Director-General of the Department of
Transport undertook high level intervention on the matter.
Estimated expenditure for 2012/13 is R185.5 million.
7.3
South African National Roads Agency Limited (Sanral)
The agency is responsible for the financing, management, control, planning, development,
maintenance and rehabilitation of the South African national road network.
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Estimated expenditure for 2012/13 is R11.45 billion.
7.4
South African Maritime Safety Authority (Samsa)
The mandate of Samsa is to promote the Republic’s maritime interests and to ensure the
safety of life and property at sea. The Samsa Act is divided into two broad and distinct areas:
meeting the United Nation’s conventions in regard to safety and pollution at sea and
attending to the nation’s developmental challenges as they affect its oceans and inland waters.
Its strategic performance plan for 2012 is to significantly contribute to South Africa’s socio
economic development, creating an orderly and sustainable maritime domain, ensuring a
highly competent Samsa and ensuring excellence in the delivery of Samsa’s services.
Estimated expenditure for 2012/13 is R269.6 million.
7.5
Ports Regulator
The strategic objectives of the Ports Regulator are to exercise economic regulation of the
ports system in line with government’s strategic objectives, promote equity of access to ports
and to facilities and services provided in ports, monitor the activities of the National Ports
Authority to ensure compliance with the Act, adjudicate complaints and appeals against the
Authority, approve or reject the Authority tariffs, promote regulated competition and regulate
the provision of adequate, affordable and efficient port services and facilities.
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The tariff methodology consultative process that had been delayed by a year will be
commencing soon. Due to an increase of R5 million in funding the Ports Regulator is in a
better position than before. There is a greater awareness of the mandate of the Regulator and
its processes, but implementation of the Ports Act was still lagging.
Estimated expenditure for 2012/13 is R15.4 million.
7.6
Road Traffic Infringement Agency (RTIA)
The Agency’s mandate is to decriminalise road traffic infringements and to deal with them
through administrative justice processes, thereby freeing the courts to deal with more serious
crimes.
The annual performance plan of the of RTIA aims to increase the Agency’s revenue share
from the outstanding road traffic infringement penalties, implementation of effective
governance processes to achieve an unqualified opinion, implementation of Administrative
Adjudication of Road Traffic Offences (AARTO) communication campaigns,
implementation of effective adjudication processes, develop comprehensive legislative
review and the full transfer of AARTO functions to the RTIA.
Critical risks faced by the entity are insufficient funding, capacitation, an unaccomplished
mandate, possibility of missed targets, compliance to road traffic laws, decreased road safety
incidents, loss of credibility of the Agency and audit queries. The interventions required by
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the RTIA are an urgent increased budget allocation for 2012/13 of R140 million and support
for legislative amendments and regulations.
Estimated expenditure for 2012/13 is R324.1 million.
7.7
Road Traffic Management Corporation (RTMC)
The mandate of the RTMC is the co-operative and co-ordinated strategic planning,
regulation, facilitation and law enforcement in respect of road traffic matters by the national,
provincial and local spheres of Government. The strategic imperatives of the RTMC are built
on the premises of safe roads, road user regulation, safe road users and safe cars.
The RTMC mitigated the challenges faced in 2011/12 by engaging with stakeholders for
partnerships in the implementation of road safety interventions. Its new organisational
structure was approved with recruitment process underway. It was currently reviewing
alternative funding models.
Estimated expenditure for 2012/13 is R140.9 million.
7.8
Passenger Rail Agency of South Africa (Prasa)
The long-term goal of Prasa is to be a commercially viable entity capable of delivery
efficient, high-quality passenger transport services on a sustainable basis. The key thrust of
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the strategy is to deliver on the Legal and Transport Policy Mandate, building a commercially
viable and sustainable entity and investing in new capacity through the acquisition of new,
modern trains, signaling and operating systems to address service imbalances inherited from
the past.
Challenges faced are delays in capital expenditure in 2011/12. The significant growth in its
capital budget is not accompanied by commensurate growth in the operations budget.
Estimated expenditure for 2012/13 is R9.2 billion.
7.9
Air Traffic and Navigation Services Company (ATNS)
The mandate of the ATNS is to provide safe, orderly and efficient air traffic, navigational and
associated services to the air traffic management community within South Africa.
The strategic imperatives are to deliver continuous improvement of safety performance and to
provide efficient Air Traffic Management solutions and associated services which meets the
needs and expectations of the Air Traffic Management Community. ATNS’s focus for 2013
is on reviewing and enhancing of safety improvement and critical skills across the business,
developing and implementing an environmental sustainability plan and climate change
strategy and developing and implementing a process to secure and commercialise their
Intellectual Property.
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Estimated expenditure for 2012/13 is R1.1 billion.
7.10
Road Accident Fund (RAF)
The RAF provides compensation for loss of earnings and support, general damage, and
medial and funeral costs to victims of road accidents caused by negligent or wrongful driving
of another road user. Revenue for the fund is generated mainly from the fuel levy.
Due to an unstable financial model, the entity runs at a deficit each year. The entity operates
in an environment that is targeted by fraudsters both internally and externally. The RAF is
overhauling its business to establish a RAF that is more efficient and effective. The RAF has
a large backlog in claims, due to limited funding in the past and not being able to pay claims
at the rate at which they were received.
Estimated expenditure for 2012/13 is R15.2 billion.
7.11
South African Civil Aviation Authority (SACAA)
The mandate of the SACAA is to regulate the civil aviation industry to ensure security and
safety by complying with the International Civil Aviation Organisation (ICAO) and taking
into consideration the local context.
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While there are a number of challenges, a major challenge is retaining surplus funds for
future capital expenditure. Political support is solicited in retaining surplus funds to finance
capital requirements in the next five years. SACAA has not invested in capital projects since
1998.Further support is required in various transformation initiatives.
Estimated expenditure for 2012/13 is R409 million.
7.12
Railway Safety Regulator (RSR)
The mandate of the RSR is to oversee safety in the railway transport industry. The RSR
oversees and promotes safe railway operations through support, monitoring and enforcement
guided by an enabling regulatory framework, including regulations and safety standards. The
strategic objectives are to establish a conducive regulatory framework, improved levels of
safety and security in the railway industry, a recognised authority in the provisioning of
railway safety expertise, sustainable railway industry capacity and institutional effectiveness
Challenges faced are limited funding, limiting founding legislation drivers and other safety
critical grades are not taking safety seriously, level crossing collisions, theft and vandalism,
security management and people struck by trains
Estimated expenditure for 2012/13 is R71.5 million.
8.
FINDINGS
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The Committee observed that several areas of the department’s performance needed
improvement.
8.1
Performance of the Department of Transport
8.1.1 The Committee noted that the department has been in the process of restructuring and
that it augurs well for the creation of jobs, the development of the country’s urban and rural
communities and the improvement of logistics. However, the restructuring has not progressed
with adequate speed.
8.1.2 The department has not met the outcomes (1 to 6) set in the 2011/2012 financial year,
which guide and enable the department to deliver on its mandate. This impacts negatively on
service delivery.
8.1.3. The department should prevent delays in the approval of proposals from state-owned
entities (SOEs)
8.1.4 The department was slow in identifying policy gaps that need to be amended in order
to align policies with development needs. The department took five years to draft the scholar
policy. School children who are dependent on scholar transport had to face the brunt of this
delay as they were exposed to dangerous and poor transport daily.
8.1.5 The department under spent on its policy budget. The Committee regards this as
underperformance.
8.2
Road Transport
8.2.1 In contrast to the budget allocation for the Road Transport programme, the
Committee, during its oversight visits, questioned the road engineering standards observed
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and whether value for money was received. The Committee remains concerned about the
social and economic impact of poor road maintenance on the South African road user.
8.2.2 There is no alignment between the Public Transport programme, which focuses on the
rural and scholar transport, and the Road Transport programme of the department. Proper
alignment between these programmes would facilitate the accessibility of roads to schools
and clinics and also ensure improved quality of vehicles used for transportation.
8.2.3 The Committee observed the non-participation of Sanral in the rural road
infrastructure network and the imbalance that is caused in the quality of road infrastructure in
rural and urban areas.
8.3
Maritime Transport
South Africa has an extensive coastline, but is not optimising its economic and social
participation in the maritime industry, as Samsa‘s current service is to provide maritime
safety.
8.4
Request for additional funding from entities
The Committee noted the request from the Road Traffic Management Corporation and the
Road Traffic Infringement Agency for additional funding to effectively execute their
mandates.
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9.
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RECOMMEDATIONS
Based on these observations the Committee recommends that the Minister of Transport give
consideration to the following:
9.1
Performance of the Department of Transport
9.1.1 The restructuring process in the department has to be finalised as a matter of urgency.
The department, as a department that is dependent on engineering competencies, should
speed up the process by which vacancies are filled with suitably skilled applicants. The
Committee will call the department to report on the implementation of the filling of vacancies
during the course of the current financial year. The department should prioritise building its
capacity and reducing the use of consultants.
9.1.2 Approval of proposals from state-owned entities (SOEs) should be addressed
promptly.
9.1.3 The legislative mandates of the Road Traffic Management Corporation, Road Traffic
Infringement Agency, Road Accident Fund and South African National Roads Agency
Limited should be amended and implemented within the time span allocated in the
department’s annual performance plan. The Committee will be vigorously monitoring
whether the department adheres to the timeframes.
9.1.4 The scholar policy should be finalised without further delay. This policy has to
address the specifics of the operation of transport, i.e. mode of transport, distances that would
require transport and driver training.
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Road Transport
9.2.1 The Committee will be calling the Director General and the relevant Deputy- Director
General to brief the Committee on the road engineering and maintenance standards during the
course of the financial year.
9.2.2 The policy that sets out the requirements for roads to be upgraded from gravel to tar
should be considered for review. The policy currently states that 200 vehicles have to use a
road before it can be upgraded.
9.2.3 The non-participation of Sanral in the rural road infrastructure network would
necessitate the review of Sanral’s mandate.
9.3
Maritime Transport
The department should reconsider its reinvestment in the maritime industry in line with
the New Growth Path.
9.4
Request for additional funding from entities
The Committee supports the requests from the Road Traffic Management Corporation
and the Road Traffic Infringement Agency for additional funding.
10.
CONCLUSION
Having considered the budget vote and the strategic plan of the Department of Transport and
the strategic plans of the related entities, the Committee recommends that its report on the
budget vote be adopted.
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3.
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Report of the Portfolio Committee on Labour on the oversight visit to farms in
the Western Cape, dated 6 March 2012
The Portfolio Committee on Labour, having conducted an oversight visit to 20 farms in the
Western Cape province from 24 to 27 January 2012, reports as follows:
1.
INTRODUCTION
Towards the end of 2011, the Portfolio Committee convened a meeting with various
stakeholders to discuss conditions of farm workers in the country. Some of the
recommendations that were proposed in that meeting included various ways in which
Parliament could conduct effective oversight, i.e. by involving various stakeholders who are
actively involved in the sector. As a result, the committee undertook the oversight trip with
the objective of assessing how labour inspectors perform their duties in this sector in order to
understand their daily challenges and to avoid making unreasonable expectations and
recommendations that are misplaced and impractical. It is therefore proper to state that, the
committee’s visit was based on building cooperation amongst stakeholders, to ensure that the
sector understands the benefits in the proper application of the labour law (to build pleasant
workplace relations and to ensure decent living standards for all workers). Moreover the
oversight visit was a continuation of the work that the committee had already initiated in
2011 of contributing towards a Decent Work Agenda. Whereas the agricultural sector is
critical in creating employment in the South African economy, however this should be
achieved within the confines of guaranteeing rights at work, extending social protection and
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promoting social dialogue. To fully achieve Decent Work Agenda objectives, work should
ensure that work standards are benchmarked against international best practices.
In line with the International Labour Organisation’s (ILO) four objectives, the committee’s
visit envisioned a proper application of the South African Constitution that guarantees
everyone the right to human dignity and fair labour practices, the Basic Conditions of
Employment Act, No 75 of 1997 together with the established Sectoral Determination,
Occupational Health and Safety Act (OHSA), the Compensation for Occupational Injuries
and Diseases Act (COIDA) and the Unemployment Insurance Act In conducting the
oversight visit the committee divided itself into two groups..
2.
GROUP 1, DAY 1
The parliamentary delegation comprised (Group 1): E Nchabeleng (Chairperson and group
leader), G Boinamo (MP), L Makhubela-Mashela (MP) and I Ollis (MP).
2.1.
MIDDELPLAAS (KEEROM) FARM
The committee met with the farm owner and the rest of the management team to discuss the
purpose of the visit and to introduce stakeholders that formed part of the oversight. The
committee then met with workers on the farm and inspected the workers’ accommodation
facilities and the rest of the working environment. These are some of the issues that were
raised by both the farm owner and the workers:
According to the farm owner, he had a good relationship with workers on the farm. Whilst a
percentage of the workers’ wages was paid in alcohol (dop system) in previous years, he
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stopped it in December 2011. He also assured the committee that he is committed to the
welfare of farm workers and would make the necessary changes in order to achieve it. The
employer bears the scholar transport fees as farm workers’ children did not have statesubsidised transport.
On accommodation, workers did not pay rent; they paid R150 per month for electricity and
have running water and flushable toilets. The general living conditions were habitable.
The employer deducted unemployment insurance contributions which were reflected on the
payslips. However, there were concerns raised regarding employees who did not have
contracts of employment. In addition, workers’ payslips did not reflect the required
information such as hours of work, and overtime payments were not properly managed.
Upon inspection of the farm, the Department of Labour’s inspectors raised the following
concerns:

Workers were not provided with protective gear when spraying pesticides in the
vineyards, e.g. masks.

Some of the equipment and tractors were not properly covered for safety.

Some tractor drivers did not have licences to drive tractors.
Although there were serious issues that were raised by inspectors, the committee appreciated
the employer’s overall willingness to cooperate and the welcoming approach towards
observations that were made by the committee. The department issued notices and would
visit the farm in 21 days.
2.2
KORAANSHOOGTE BROEDERY FARM
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Koraanshoogte Boedery farm is owned by a South African-American who permanently
resided in the United States of America. The farm was run by the owner of a neighbouring
farm and administered by two managers who lived on the farm. The last inspection by the
Department of Labour was conducted five years ago. The farm had a total of 37 workers, i.e.
20 men and 17 women.
The employer complied with Sectoral Determination 13 minimum wages which were paid
weekly and electronically. There were no incidents of child labour observed by the
committee. The employer also complied with the Unemployment Insurance Act, No 63 2001
and allocated five days towards family responsibility leave, workers worked 45 hours per
week and two trade unions were recognised by the employer. However, some workers had
not signed work contracts and were only allowed to submit three doctor’s certificates per
annum and were not paid if they exceeded the stipulated number.
The health and safety inspector raised concerns regarding the non-provision of protective
gear for workers, such as gloves and uniforms. Although there was a shower on site, workers
were not permitted to use it.
On accommodation, the committee heard that the houses were previously used as a storage
facility for drying fruit but had later been converted as lodgings for workers. The houses were
not suitably ventilated and were boiling hot in summer as a result thereof. The committee felt
this needed the urgent attention of the employer as this could later lead to other related
illnesses. In addition, the committee observed that although there were toilets and shower
facilities, these were not well maintained and were unhygienic.
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Due to the demand for a crèche facility, the employer accommodated a number of children in
one of the buildings on the farm, which was previously used as a cold storage facility.
However, upon inspection, the committee observed that the room was not properly ventilated
and that the facility did not have a restroom for the kids and the kindergarten teacher. The
committee stressed that the employer should ensure that this issue be promptly resolved.
On health and safety, the occupational health and safety (OHS) inspector raised concerns
regarding the employer’s disregard for health and safety regulations, such as the use of
protective gear when spraying pesticides in the vineyards. Following spraying of chemicals,
workers were not compelled to wash off toxins before leaving to their homes. As a result,
workers and their families were constantly exposed to health risks posed by these chemicals.
In addition, contrary to the dictates of legislation, workers washed their own toxic clothes at
home, further posing a risk to their immediate families. Whilst there was a shower on the
farm, workers were not permitted to use it to wash off chemicals before leaving. The
committee pleaded with the employer to permit workers to use the shower.
3.
DAY 2
3.1.
UITNOON FARM
Uitnoon farm is situated in the McGregor, Bonnievale area. It is a wine farm but also has
apricots and peaches. It employs 12 permanent workers: 7 men and 5 women. They all live
on the farm. According to the farmer, the Department of Labour had visited the farm before
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and gave administrative support to the owner. According to the workers who interacted with
members of the committee:

none of them had joined the union;

there was a bus that transported their children to school without having to pay for
transport fee;

there were 3 workers who drove tractors on the farm;

five workers were responsible for spraying pesticide and had undergone relevant
training;

the employer had become very strict about the use of protective gear when working
with pesticides over the years;

they received new uniforms twice per annum and did not have to pay for them.
On accommodation, the committee observed that the houses had water and electricity. All
houses had solar geyser panels. The biggest houses had 2 bedrooms, a kitchen, a lounge and
were generally inhabitable. On health and safety, the OHS inspector raised the following
concerns: Firstly, although the employer had installed a shower on the farm workers did not
use it. Secondly, the protective gear was not washed by the employer. As a result, the
inspector suggested that the employer should ensure that the protective clothes were washed
and that a dedicated person was allocated to perform this duty. Thirdly, the windows in the
shower room should be glazed to ensure privacy for workers. Following an administrative
assessment, the labour inspector highlighted that the employer paid a minimum wage of R320
a week, the highest paid worker earned R470 a week, all workers had work contracts and
work an average of 43 hours a week, receive bonuses in June and December and get 4
months’ maternity leave.
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VAN LOVEREN WINES AND CELLAR
Van Loveren Wines and Cellar farm has been a family business since 1937. It is a stretch of
300 hectors of vineyard. The Department of Labour’s last visit to the farm was 2 to 3 years
ago. The employer complied with Sectoral Determination 13. All workers were registered
with the UIF and had a provident fund with Old Mutual. The employer deducted a certain
amount towards medical coverage for all employees. There were monthly deductions for
electricity and the employer paid overtime, if requested. Pregnant employees were deployed
to light duty and registered with the Compensation Fund. However, there were general
concerns from the workers about vague job descriptions, i.e. workers performing additional
duties that they were not hired to do. As such, the inspector would assist the employer in
developing precise job descriptions for workers.
On occupational health and safety, the OHS inspector highlighted that workers have shower
facilities and disposable protective gear that did not need to be washed. The only concern was
the eye cleaner that was not easily accessible to workers in case of an emergency.
4.
DAY 3
4.1
KARIENA FARM
Kariena farm is a grape farm: 70 per cent white grapes and 30 per cent red grapes. There is a
total of 17 workers on the farm, i.e. 6 women and 11 men. On accommodation, the committee
observed that the houses had electricity, water and flushable toilets. Workers only paid for
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electricity and not water. However, some houses had holes in the ceiling and as a result
experienced water leaks when it rained.
According to the administration report from the inspector, workers earned R7.40 per hour and
deductions for a funeral scheme for all workers.
On occupational health and safety, the OHS inspectors reported that the first aid kit had
expired and there were issues regarding the protective gear that was being washed by workers
and not the employer.
The committee also heard that children from the farm had to walk long distances to school
because they did not have scholar transport. Whilst the farmer would like to assist the
children, he was reluctant to use his pickup truck to transport children to school as this could
have negative repercussions if an accident were to occur. The committee agreed to raise the
issue with the relevant Portfolio Committee.
4.2
GOUDYN FARM
Goudyn farm grows grapes and has a few cattle. There are 18 male permanent workers and 4
female workers who live on the farm together with 34 children..
The workers’ houses have water and electricity but do not geysers for hot water. They pay
R80 per 100 units of electricity. They also pay R130 per month for rent. However, houses
needed maintenance as some toilets did not flush.
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According to the administration report, wages were deposited electronically into the workers’
accounts. Workers paid R2 per month for funeral cover whilst others opted for their own
preferred policies. The employer had a recognition agreement with the union, Sikhula Sonke.
On occupational health and safety, no shower was installed for workers to wash off chemicals
and the fire extinguisher was not regularly checked by the employer. In addition, protective
gear was not washed and not regularly checked to ensure that it was still suitable to be used
again. Some equipment needed to be fixed or replaced by the employer due to its worn-down
condition.
4.3
WOLWENBERG BOERDERY FARM
According to the administration report, the general administration of the farm was not well
maintained, payslips were not properly done in accordance with the sectoral determination,
and the attendance register was not properly maintained in order to guide the employer when
making overtime payments. Employment contracts were old as they were last updated in
1999. In addition, Compensation Fund and UIF payments were not up to date (employer in
arrears). The Department of Labour had committed itself to assist the farmer in sorting out
the administration in order to comply with the law.
On accommodation, the committee observed that windows were broken but according to the
farmer this was mostly due to drunken behaviour by workers. Some workers confirmed the
farmer’s assertion. The roofs of some of the houses had leaks. Upon receiving the report, the
farmer agreed to attend to the issues raised and the department offered to assist the employer
to sort out the administration muddle.
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5.
DAY 4
5.1
ST MALO FARM
PAGE: 327 of 429
St Malo farm employed a total of 133 workers: 22 were permanent and the rest were
seasonal. Following an interaction with the workers and the inspection of the
accommodation, the committee observed that employees had repeatedly complained about
the state of accommodation to the employer but nothing had been done. Walls were cracking
even though workers paid R140 per month for accommodation (rent). There was no running
water. Workers used pit toilets which were broken and the conditions were generally
unhygienic. In addition, workers complained of exorbitant food prices from the farmer’s
shop.
Creche
The main concern was the state of the crèche that was near the fruit packing factory. There
was no ventilation and it was filthy. It was also used as a storage facility and was generally in
a hazardous state. There were 14 children cramped in an unventilated room. Workers paid
R25 per week to use the crèche. Employees, crèche staff and general workers used the same
toilet facility.
The committee felt that the employer had to address the issue of the crèche urgently, as this
posed immediate danger to the children’s health. In addition, the committee would contact
the relevant authorities to attend to the situation at the crèche. On occupational health and
safety, the employer was not enforcing the use of the shower following the use of chemicals
by the workers. The general health and safety regulations were not applied, such as those that
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dealt with chemicals. The inspector indicated that some other minor OHS issues should be
dealt with immediately by the employer but issued a notice.
Regarding the administrative issues, employer issues payslips. Work contracts were in line
with the Basic Conditions of Employment Act. However, the employer did not have an
Employment Equity Plan in place. According to records, the employer paid for sick leave but
workers disputed this.
5.2
WELBEDACHT FARM
Welbedacht is a wine farm situated on a 150 ha estate.
On accommodation, workers paid rent. Houses had water and electricity..Whilst some houses
were in a decent state, others had crumbling walls which were unsafe and caused cracks in
the houses. Workers complained of not receiving a wage increase in three years and there
were reports of physical assault of workers by the employer.
According to the administration report, payslips were in accordance with the BCEA, but
employer’s UIF contributions were in arrears. The attendance register did not reflect the
hours of work as required in order to calculate overtime and other benefits. The employment
equity plan had not been developed by the employer. As such, the inspector issued an
undertaking and a follow up visit by the inspector would take place 21 days from the date of
issue.
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The OHS report from the inspector indicated that a shower had been built for workers to use
after working with chemicals in the vineyards. He also observed that the employer did not
store chemicals on site. However, workers washed their own protective gear.
5.3
DRIEFONTEIN FARM
There was a total of eight workers employed on the farm. On accommodation, the general
living conditions of workers were of serious concern. The place was literally disintegrating
and uninhabitable. The roofs of the houses were generally unsafe and could collapse at any
moment. The wiring of the houses was also unsafe and some wires were exposed. More
concerning was the observation that some workers stayed in containers that were not
ventilated. The farmer was not paying minimum wages. Employees were not certified to
drive trucks on the farm and were also not provided with protective gear.
The administration report highlighted that the employer was in contravention of the law by
not paying minimum wages and not issuing payslips to workers. The OHS report reflected
that there were exposed wires which were connected directly to the plugs, some equipment
was due for service, exposed wires were placed on the floor, the employer did not provide
protective gear to workers and workers had never been trained on health and safety issues.
6.
GROUP 2, DAY 1
The delegation from Group 2 visited the following farms: Middleplaas (Keerom);
Koraanshoogte Boerdery Farm; Groenvlei; Lentelus Boerdery; Uitnoon; Voordernberg; Van
Loveren Wine and Cellar; Uitvlugt; Lord Cellar; Sewe Fonteine; Kariena; Goudyn;
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Wiwenberg Boerdery; Wyserdrift Trust Farm; Swrtwalle; Morgenroodt; St Malo;
Welbedacht; Driefontein; Welgemoed and De La Fontein.
The parliamentary delegation comprised (Group 2): B Manamela (MP) (Group Leader), A
Williams (MP), T Maserumule (MP) and Helen Line (MP). Department of Labour:Ms
Mandisa Gxoyiya (AD: LLO); Ms Edwina Smith; Andile Madangatya and Xola Kunene.
Interest groups comprised Ms Susanna Mouton and Ms Grace Khakane (Sikhula Sonke); Mr
Petrus Brink (Farm Dweller Association); Ms Colette Solomon (Women on Farm Project);
and Ms Ida Jacobs (Women on Farm Project).
Support staff consisted of Ms B Madikane (Committee Secretary); Ms K Tshoma (Committee
Assistant); Mr BG Mani (Senior Language Practitioner); Mr BY Mbo (Language
Practitioner); Mr L Nel (Language Practitioner); Ms Inga Bosch (Language Practitioner); and
Mr Luthando Namzi (Communications).
6.1
GROENVLEI FARM
The farm had 17 workers comprising eight women and nine men together with farm dwellers
who were not farm employees. The farm owner reported that when he bought the farm, he
also inherited problems such as decaying buildings. Of the 34 people with partners and
children, 12 had a legal right to stay on the farm. The illegal farm dwellers had turned down
his offer of working on the farm as well as the subsidy he offered them to buy houses of their
own in town. This would have created a space to build decent houses for the employees. The
farmer felt that the issue of farm dwellers was being politicised.
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The delegation observed that the owner did not reside on the farm. The majority of workers
stayed on nearby farms. Only the manager and farm dwellers lived on the farm. Workers
reported that they were happy and had nothing to complain about. They had a workers’
committee where their concerns were discussed and resolved without the interference of a
third party. Farm dwellers reported that although they were not interested in working on the
farm, they felt that they had a right to stay there because they were born on the farm. They
had a right to basic services such as clean water supply, toilets, electricity and free movement
to and from the farm during acceptable hours. Farm dwellers reported that the farmer had cut
their water and that they had to depend on the water from the mountain, although it was dirty.
Having noted the situation on the farm, the delegation recommended that the Department of
Labour should follow up on the following:

Inspection of books for compliance; and

Unfair dismissal due to pregnancy as reported by farm dwellers.
With regard to farm dwellers, a third party should be invited to intervene and improve the
relationship between the farmer and the farm dwellers.
6.2
LENTELUS BOERDERY FARM
The farmer owned an orange farm and a naartjie farm with six permanent workers at Lentelus
and three permanent workers on the other farm. All workers stayed on both farms with their
families. During the harvesting season the workforce at Lentelus was increased by 20 to 25
seasonal workers who were recruited from nearby farms.
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Workers were afraid to reveal or lodge any complaints. It was clear that they were not aware
of their rights and were overstretched because in many instances one worker would be asked
to assist on the other farm while the remaining workers were expected to cover his duties.
Water was provided but the houses and toilets were in a very bad state. Each worker had one
overall and a pair of safety shoes. They used the same overalls when spraying the crops with
pesticides because they did not have safety clothes or rain suits and they took them home
after work to be washed. By doing so, their families were exposed to chemical fumes. They
used farm transport into town and to the doctor.
There was compliance with occupational health and safety standards in the storeroom, which
was in a good condition with clear classifications and all the necessary paperwork. The
farmer was advised to have two fire extinguishers inside and outside the storeroom. The
delegation assured workers that the transportation of school children and the issue of housing
would be communicated to the relevant department. Administration was not up to the
required standard. There was non-compliance in regard to pay slips, the attendance register
and the Unemployment Insurance Fund (UIF). One worker was not registered with the UIF.
Therefore a certificate was issued to the farmer by the inspector from the Department of
Labour, giving him 21 days to rectify the identified shortcomings.
7
DAY 2
7.1
UITVLUGT FARM
The farmer informed the delegation that he had 11 workers on the farm: six men and five
women. Four families lived on the farm and their children were driven to school by the
farmer. Workers walked to work and sometimes got a lift when there was transport that went
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their way. Water, sanitation and electricity had been provided without charge. Workers
reported that they earned R750 in two weeks including deductions for the Unemployment
Insurance Fund (UIF) and funeral cover. A once-off payment was also deducted from those
workers who ordered groceries from the farm shop. Workers heard for the first time about
unions and were not visited by union representatives before. One grandmother reported that
funeral cover was deducted from her husband’s salary. On his death the farmer covered the
costs and nothing was given to her thereafter, not even a report on how much was received or
spent on the policy. Workers also reported that they were not allowed to join a union and did
not have a formal platform to raise their concerns.
Workers reported that one inspector informed them that by the time they started working at
07:00, they should have had their breakfast, taken a lunch break at 12:00 and resume work at
13:30 until 17:00. The last time they saw the same inspector was two years ago when he
came to buy himself a car from the farmer. Workers complained that they were not getting
paid for overtime. They also complained about not getting incentives for the performance of
their work. They earned same salary as those who had just started working, as some had spent
more than 34 years on the farm. The delegation observed that the storeroom for chemicals
was old, but had clear signage and pictures. The door did not meet the required standard, it
should be a steel door and they had only one fire extinguisher instead of two.
The farmer did not comply with administration and book-keeping as there was no attendance
register, no pay slips and no proof of Unemployment Insurance Fund (UIF) payments. The
farmer argued that they thought that they were being fair by not paying them overtime
because they received full pay even if they worked half days. The farmer was advised to
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communicate more with workers and listen to their grievances. The farmer was given 60 days
to rectify the shortcomings.
7.2
LORD CELLAR FARM
The cellar is owned by seven shareholders. One of the shareholders was also the farm
manager. The farm had three permanent staff members: the manager, one person for
administration and one as the wine maker. There was compliance on the farm as they were
using the latest technology and everything was in order.
7.3
SEWE FONTEIN FARM
This is an organic farm growing grapes, peaches, apricots, artichokes and selling wood as
well. It had five permanent workers and the farmer owned one third of his father’s farm. He
reported that he was in the process of renovating the residential area of the workers. One
house had already been completed. The renovations were prompted by the poor conditions of
the houses, such as leaking roofs, blocked toilets and dirty walls.
The farm was not complying because there were no pay slips, no attendance register and the
farmer only registered for Unemployment Insurance Fund (UIF) a day before the delegation
visited the farm. Workers’ employment contracts specified that they would not be paid
overtime. Although workers worked on two farms, they were not paid for overtime and the
extra work. The farm received a notice of undertaking for non-compliance to the relevant
labour laws from the department.
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8.
DAY 3
8.1
WYSEDRIFT TRUST FARM
PAGE: 335 of 429
The information given by the workers contradicted what was reported earlier by the farmer.
Although they had the latest equipment to use pesticides, the workers were not provided with
safety clothes such as masks and rain suits. The chemicals storeroom did not have a sink for
workers to wash their hands and clothes. They were issued new uniforms only when the old
ones were damaged. The occupational health and first-aid training provided to workers was
not completed and no reasons were given. With regard to houses, the same problems were
experienced as was the case on other farms, such as leaking roofs, and broken doors and
windows. A notice was issued for the farmer to clear the storeroom of empty containers, to
label all chemicals and provide soap for workers to wash after using chemicals. An
unannounced visit would take place after 15 February 2012.
8.2
SWARTWALLE FARM
Although the putting up of ceilings was in progress, some houses had leaking roofs that
needed urgent attention. The challenge was that the person who was doing all the repairs was
also a builder in the area, which made him take time to finish the job. The farmer was issued
a notice to comply within 21 days with regard to contracts that were not signed and that did
not include family responsibility leave. The farmer was also advised that the chemicals
should be kept in an enclosed room with signage on the outside wall.
8.3
MORGENROODT FARM
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The farm had the largest number of employees who were mostly coming from Lesotho.
Sotho-speaking managers were not aware of the labour legislation. Half of the workers had
no identity documents. Challenges were experienced in relation to leaking roofs, blocked
toilets and overcrowded houses. The rooms were too small and looked like stables that were
renovated into rooms. The crèche building was made of stones; therefore the walls were not
safe for the children as there were stones protruding on the walls. The committee also met
with a very ill woman and child without any form of assistance from the farmer. In addition,
there was no indication of how much migrant workers were being paid, as they did not
receive pay slips.
With regard to administration and occupational health, the farm was compliant. The houses
had electricity, water and geysers that were not connected at the time. The farmer reported
that the toilets were repaired two months ago and blamed workers for being negligent. The
inspectors from the Department of Labour promised to pay regular visits and to communicate
with other departments to give assistance to the farm and to address the social issues of the
workers.
9.
DAY 4
9.1
WELGEMOED FARM
The farm leadership was new, working with a manager and workers who used to work for the
previous owner. It had 44 permanent workers, and the number would increase by 150
workers during season. Workers complained about the pay slips and contracts that they were
made to sign without any explanation. The documents were in English, which they did not
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understand. The majority of workers signed their contracts the day before the delegation
arrived. Maintenance on the farm, including the store room, was also done on that day.
Workers paid R150 for accommodation and electricity.
Living conditions were not healthy. Workers stayed with their children in containers which
were very hot in summer and very cold in winter. Workers bought their own working clothes
and shoes because the farmer did not supply them with any uniforms. Workers who did not
stay on the farm did not have a changing room. They changed their clothes and kept their
lunch under trees. The farm would supply water to water the trees without warning, and
workers would find their clothes and food soaked. Nobody wanted to take responsibility for
that.
The farm failed to comply with labour laws because the pay slips were not of required
standard; they had no hourly rates, no overtime and no UIF registration number. There were
several errors on the contracts and the first-aid box only had glucose in it. Therefore a notice
was issued requiring the farm to improve on all shortcomings. Workers also reported that
they had to pay for safety shoes and uniforms as the farmer did not provide any tools or
uniforms. The farm was given 30 days to evacuate all workers living in the containers to
more suitable accommodation. Although the farmer reported that the Department’s inspection
was last conducted in 2011, the farmer was still not complying with regulations.
9.2
DE LA FONTEIN FARM
The farmer was the owner of the farm that was used to grow wine grapes, grain, oranges and
was also a cattle farm. Permanent workers stayed on the farm and some houses were reserved
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for seasonal workers who were recruited from the Northern Cape. Seasonal workers were
advised not to make use of tap water in front of their block as it drew its water from the river;
they were to collect clean water using buckets from the main house every day. On their sixth
day at work workers were still wondering whether the groceries and the train fare that had
been paid for by the farmer was going to be deducted from their first salaries or whether it
was just a gift.
Workers were not happy and there was no strategy in place or platform for them to voice
their frustrations. The district doctor granted workers only one day’s sick leave no matter
how sick the person was. The farmer did not care for the sick workers. He wanted them to
report in person and not to send a message or someone else to convey the message.
One woman worker was hospitalised for two months for suffering from TB. She was last paid
in November 2011. The farmer took her certificate and did not respond afterwards. The other
male worker had epilepsy. He would sometimes pass out, and when he woke the farmer
would feed him with sweets to boost his sugar levels instead of taking him to hospital. The
farm received a contravention notice for not complying with occupational health and safety
standards. The newly recruited workers did not even know how much they were going to
earn. There was a case where 13 workers stayed in one house, of which 3 workers had TB but
continued to share the same house with the other workers.
10.
COMMITTEE RECOMMENDATIONS
The oversight to the agricultural sector was undertaken with the view of attaining positive
outcomes through dialogue and cooperation with the farming community and all stakeholders
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involved with the sector. Indeed the committee’s findings have confirmed some of the issues
that have already been raised in previous engagements with stakeholders but also enlightened
the committee’s perceptions about the work of labour inspectors in the sector. It is the
committee’s view that the overall spirit of cooperation and safeguarding of fundamental
principles for dignity and humanity by the Constitution and the labour legislation is often
both misconstrued and disregarded. However, it is with certainty that in order to promote the
values, as promoted in the South African Constitution and the labour legislation, the findings
cannot be generalised hence depicting the sector as a homogenous group. Therefore, the
committee made the following recommendations:
10.1

TO THE DEPARTMENT OF LABOUR
Through training and skills advancement, the Department of Labour should
strengthen its occupational health and safety inspections to conduct comprehensive
inspections on the farms.

Economic sectors vary and are faced with numerously different challenges that
require precise interventions. Similarly, when conducting inspections, it is important
that inspectors understand challenges of these sectors and are equipped to deal with
them in order to improve the quality of inspections. Therefore, the department should
speed up the specialisation dispensation of the Inspection and Enforcement Services
(IES), especially in the vulnerable sectors such as agriculture, domestic, etc.

The department should focus on quality inspections, which focus on a holistic
assessment of the working environment as opposed to inspections which focus on
administrative compliance.
EPE 24 APRIL 2012

PAGE: 340 of 429
To achieve this, the department must explore innovative means of using resources
provided by trade unions, civil society and organisations such as the Wine Industry
Ethical Trade Association (WIETA). In doing so, the department must cooperate with
organisations such as WIETA to strengthen its inspectorate services.

Having noted complaints from farm workers about the conduct of the Department of
Labour’s inspectors, the committee therefore recommends that the Department of
Labour should urgently address the code of conduct of inspectors when conducting
inspections.

The department must furnish the committee with a comprehensive report on followup inspections on the farms that were visited and those that were served with notice of
undertakings for non-compliance to relevant labour laws from the inspectors
10.2

TO THE DEPARTMENT OF BASIC EDUCATION
The department should assess the condition of school children at the Middelplaas
(Keerom) Farm, as they do not have state-subsidised transport.

The committee further recommends that the case be treated as urgent given that
winter will commence shortly and winter rains will exacerbate the situation
10.3
TO THE DEPARTMENT OF HEALTH
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
PAGE: 341 of 429
Through its mobile units, the Department of Health should visit farms in order to give
much needed health care support, especially where there were cases of tuberculosis
(TB). An example is De La Fontein Farm where a number of workers were reported
to have contracted TB.
10.4

TO THE DEPARTMENT OF SOCIAL DEVELOPMENT
It is understood that farmers are not obliged to provide crèches for their workers, but
such an act should be appreciated and encouraged. Without deterring from the
goodwill of the farmers in assisting their workers, such an act should be conducted
within an understanding that children need a safe, hygienic and stimulating
environment. In order to achieve this, farmers should consult with the relevant
departments to assist farmers to adhere to relevant regulations. As a result, the
committee recommends that the Department of Social Development should visit the
St Malo Farm where children were placed under dire conditions.
10.5

TO THE DEPARTMENT OF HOME AFFAIRS
The Department of Home Affairs should visit farms in order to assist those workers
that do not have identity documents and those children without birth certificates in
order to access the required government services
10.6 TO THE DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM,
AGRI SA, THE DEPARTMENT OF HUMAN SETTLEMENT AND
INDIVIDUAL FARM OWNERS
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
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The committee urges the Department of Rural Development, the Department of
Human Settlements and the Department of Labour, together with AgriSA and
individual farmers to urgently address the dire state of some houses that have been
neglected and could ultimately negatively impact on the lives of farm workers. Some
of the farms that need urgent attention include St Malo Farm, Driefontein Farm,
Wysedrift Trust Farm, Morgenroodt Farm and Welgemoed Farm.
11.
CONCLUSION
In assessing the progress that has been made in implementing Sectoral Determination 13 for
the farm worker sector, progress has been made in improving the general working conditions
of farm workers by a number of farmers. Nevertheless, there are also a reasonably large
number of farmers who deliberately continue to circumvent labour regulations with a
complete disregard for the workers health, safety and living standards. The committee
concludes that such actions are a direct disregard of the government’s and the International
Labour Organisation’s Decent Work Campaign, to which South Africa is a signatory.
However, the committee was heartened by the acts of some farmers who genuinely received
observations that were made as a step forward in building relations with their workers, unions
and the Department of Labour. There was a commitment to improve conditions from these
farmers. The committee also observed that there were cases where farmers honestly lacked
capacity to implement some of the required administrative duties due to lack of skills. The
Department of Labour committed itself to assist in those cases. In light of these facts, the
committee has observed that, more than ever before, there is a role for all stakeholders to
bridge the gap by providing training and capacity development initiatives in this sector.
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Report to be considered.
MONDAY, 23 APRIL 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Labour Relations Amendment Bill, submitted by the Minister of Labour.
Referred to the Portfolio Committee on Labour and the Select Committee on
Labour and Public Enterprises.
(2)
Basic Conditions of Employment Amendment Bill, submitted by the Minister
of Labour.
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Referred to the Portfolio Committee on Labour and the Select Committee on
Labour and Public Enterprises.
National Assembly
The Speaker
1.
Withdrawal of Strategic Plan and Annual Performance Plan
(a)
A letter dated 20 April 2012 has been received from the Minister of
Communications, requesting the withdrawal of the Strategic Plan of the
Department of Communications for the financial year 2012-2017 and Annual
Performance Plan for the financial year 2012 -13 that was tabled on 7 March
2012.
TABLINGS
National Assembly and National Council of Provinces
EPE 24 APRIL 2012
1.
PAGE: 345 of 429
The Minister of Communications
(a)
Revised Strategic Plan of the Department of Communications for 2012 – 2017 and
Annual Performance Plan for 2012 -13.
(b)
Annual Performance Plan of the National Electronic Media Institute of South
Africa (NEMISA) for 2012/2013.
TUESDAY, 24 APRIL 2012
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Proclamation No 19, published in Government Gazette No 35133, dated 19 March
2012: Fixing of a date on which sections 90(1)(a) to (c); 91(1)(a); 93(1)(a),
93(1)(b), 93(1)(g), 93(1)(h) and 93(1)(i); 94(1)(a) to (d) and 95(1)(a) shall come
into operation in terms of the Revenue Laws Amendment Act, 2007 (Act No 35
of 2007).
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(b)
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Government Notice No R.169, published in Government Gazette No 35086, dated
2 March 2012: Amendment of Schedule No.1 (No.1/1/1438), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
(c)
Government Notice No R.170, published in Government Gazette No 35086, dated
2 March 2012: Amendment of Schedule No.4 (No.4/347), in terms of the Customs
and Excise Act, 1964 (Act No 91 of 1964).
(d)
Government Notice No R.187, published in Government Gazette No 35102, dated
2 March 2012: Amendment, in terms of the Value-Added Tax Act, 1991 (Act No
89 of 1991).
(e)
Government Notice No R.218, published in Government Gazette No 35140, dated
16 March 2012: Amendment of Rules (DAR/100), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(f)
Government Notice No R.232, published in Government Gazette No 35178, dated
23 March 2012: Amendment of Rules (DAR/102), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
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(g)
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Government Notice No R.255, published in Government Gazette No 35188 dated
28 March 2012: National Treasury: Regulations prescribing the circumstances
under which section 23 k(2) of the Income Tax Act, 1962, does not apply, in terms
of the Income Tax Act, 1962 (Act No 58 of 1962).
(h)
Government Notice No R.236, published in Government Gazette No 35174, dated
30 March 2012: Amendment of Schedule No.2 (No.2/342), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
(i)
Government Notice No R.237, published in Government Gazette No 35174, dated
30 March 2012: Amendment of Schedule No.1 (No.1/3B/16), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
(j)
Government Notice No R.238, published in Government Gazette No 35174, dated
30 March 2012: Amendment of Schedule No.1 (No.1/5A/155), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
(k)
Government Notice No R.239, published in Government Gazette No 35174, dated
30 March 2012: Amendment of Schedule No.1 (No.1/5B/156), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
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(l)
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Government Notice No R.240, published in Government Gazette No 35174, dated
30 March 2012: Amendment of Schedule No.6 (No.6/3/26), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
(m) Government Notice No R.260, published in Government Gazette No 35193, dated
30 March 2012: Amendment of rules (DAR/101), in terms of the Customs and
Excise Act, 1964 (Act No 91 of 1964).
(n)
Government Notice No R.292, published in Government Gazette No 35238, dated
5 April 2012: Amendment of Schedule No.2 (No.2/343), in terms of the Customs
and Excise Act, 1964 (Act No 91 of 1964).
(o)
Government Notice No R.293, published in Government Gazette No 35238, dated
5 April 2012: Amendment of Schedule No.3 (No.3/1/680), in terms of the
Customs and Excise Act, 1964 (Act No 91 of 1964).
COMMITTEE REPORTS
National Assembly
1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND
TRAINING ON THE ANNUAL PERFORMANCE PLAN AND BUDGET 2012/13 OF
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THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING DATED 20
APRIL 2012
The Portfolio Committee on Higher Education and Training, having considered the Annual
Performance Plan and Budget 2012/13 of the Department of Higher Education and Training
reports as follows:
1.
Introduction
The Portfolio Committee on Higher Education and Training considered the Annual
Performance Plan and Budget 2012/13 of the Department of Higher Education and Training
on 17 April 2012 in preparation for the Budget Vote 17 scheduled to take place on 24 April
2012. This report gives a brief summary of the presentation made by the Department to the
Committee, focusing mainly on the 2012/13 Annual Performance Plan and Budget including
an overview of allocations per programme. The Deputy Minister of Higher Education and
Training, Prof H Mkhize was present with her senior officials from the Department in the
meeting. The report also provides the Committee’s observations and recommendations.
Portfolio Committee on Higher Education & Training:
Present: Ms N Gina (ANC), Adv I Malale (ANC) (Chairperson), Mr S Makhubele (ANC),
Prof S Mayatula (ANC), Mr C Moni (ANC), Mr S Radebe (ANC), Dr L Bosman (DA), Prof
A Lotriet (DA), and Mr A Mpontshane (IFP).
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Department of Higher Education and Training:
Prof H Mkhize: Deputy Minister, Mr G Qonde: Director-General, Dr B Mahlobo: Acting
Deputy Director-General Vocational and Continuing Education and Training, Dr D Parker:
Acting Deputy Director-General University Education, Mr T Tredoux: Chief Financial
Officer, Mr F Patel: Deputy Director-General Planning, Ms L Mbobo: Deputy DirectorGeneral Corporate Services, Mr C Mtshisa: Acting Deputy Director-General Skills, Mr F
Toefy: Chief Director Planning Monitoring and Evaluation, Ms T Futshane: Acting Chief
Director Vocational and Continuing Education and Training, Mr M Macikama: Chief
Director National Skills Fund, Ms B Ntombela: Chief Director Human Resource
Development Council, Mr M Lumka: Acting Chief Director SETA Coordination, Mr N
Nqandela: Chief of Staff Ministry, Mr K Mgiba: Director Strategic Planning, Mr Z
Hlongwane: Director DG’s Office and Mr W Tabata: Acting Director Ministry.
2. Summary of Presentation on the Annual Performance Plan 2012/13
Mr G Qonde, Director-General, led the presentation which highlighted the following key
issues:

The mandate of the Department was to ensure that the skills needed to drive the
country’s economic growth and social development were delivered at an increasing
rate. On the supply side, the Department must serve a growing number of young
people and adults and provide different entry points into the learning system.

The strategic objectives of the Department included: expanding access to education
and training for the youth; increasing the number of students successfully entering the
labour market upon completion of training; and, expanding research development and
innovation capacity for economic growth and social development.
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a) Programme 1: Administration
Ms L Mbobo, Deputy Director-General Corporate Services, led this part of the
presentation which highlighted the following key issues:

This programme provided the overall management and administration of the
Department. The programme received a total allocation of R175.5 million which is
0.6% of the total higher education and training budget for the current financial year,
representing an increase of R17 million compared to the previous financial year. The
Department filled all the vacant funded posts during the previous financial year and
aimed to reduce the vacancy rate to 15% in the current financial year. The Department
maintained a good record in terms of asset management and developed an anticorruption policy. Information Communication Technology (ICT) governance
remained a serious concern for the Department since the maturity level was 0.
b) Programme 2: Human Resource Development, Planning and Monitoring
Coordination
Mr F Patel: Deputy Director-General Planning Services led this part of the presentation
which highlighted the following key issues:

This programme provided strategic direction in the development, implementation and
monitoring of Departmental policies and the human resource development strategy for
South Africa. The programme was allocated R40.7 million which is 0.1% of the total
budget of higher education and training. The allocation would be shared among six
sub-programmes according to the strategic objectives assigned to each. The
Department aimed to integrate 80% of public institutional data into the Higher
Education Management Information System (HEMIS) and the National Skills Fund
(NSF) has allocated funding for this project. An academic journal for Higher
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Education and Training would be published in the current financial year. An
international relations operational framework strategy would be developed in the
current financial year to bring into collaboration all the agreements made by the
Department and its entities.
c)
Programme 3: University Education
Dr D Parker, Acting Deputy Director-General University Education, led this part of
presentation which highlighted the following key issues:

The aim of this programme was to develop and coordinate policy and regulatory
frameworks for an effective and efficient university education system. This
programme consisted of six sub-programmes, namely; Programme Management:
University Education; University – Academic Planning and Management; University
– Financial Planning and Information Systems; University – Policy Development; and
Teacher Education and University- Subsidies. The programme had a budget of R26.2
billion, which represents an increase of 5.7% from the previous financial year. The
increase in the funding for this programme is in line with the mandate of the
Department to increase access to higher education especially for poor academically
serving students. The Department targeted 179 793 first time enrolments at
universities in the current financial year. There was a steady increase of African
students in universities and 57% of the student population were females. Good
governance in higher education institutions remained a serious concern for the
Department. Only 74% HEI’s had good governance in the past financial year. A total
of three universities have been put under administration owing to inadequate
governance and maladministration. The proposal for the development of the next
generation of academics was being reviewed by the Department. The Teaching
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Development grant was R500 million which has been allocated to universities to
develop their academic staff.
d)
Vocational and Continuing Education and Training
Ms T Futshane: Acting Chief Director Vocational and Continuing Education and Training led
this part of the presentation which highlighted the following key issues:

The purpose of this programme was to plan, develop, evaluate, monitor and maintain
national policy, assessment practices and systems for vocational and continuing
education and training, including further education and training colleges and postliteracy adult education and training. The VCET consisted of the following
programmes, namely: Programme Management: Vocational and Continuing
Education, Planning and Institutional Support and Programme and Qualifications. The
programme received an allocation of R4.9 million being a 2.6% increase from the
previous financial year. The Adult Education and Training (AET) programme
targeted 255 000 learners from level 1 – 4 in this financial year. There has been a
steady increase in headcount enrolments in FET colleges from 355 000 in 2011 to 555
000 in 2012. The Department published the National Senior Certificate for Adults
(NASCA) qualification in the government gazette and curriculum support
programmes for NASCA have been developed. Inadequate governance remained a
concern for the Department in FET colleges and those who failed to govern were put
under administration. The Department would train 60 Provincial Education
Departments officials to support new curriculum delivery.
e)
Skills Development
Mr C Mtshisa: Acting Deputy Director-General Skills led this part of the presentation which
highlighted the following key issues:
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
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This programme promoted and monitored the National Skills Development Strategy
(NSDS III); developed a skills development policy and a regulatory framework for an
effective skills development system. The total budget for this current financial year
was R100.1 million which is 0.4 per cent of the total higher education and training
budget and would be shared among the following four programmes: Programme
Management: Skills Development, SETA Coordination, National Skills Development
Services and Quality Development and Promotion. The budget for this programme
decreased by 28% in the current financial year owing to the prioritisation of other
programmes within the Department. The Department targeted 10 000 Artisans
produced per annum in the current financial year. Approximately 32 179 learners
would be trained within NSF projects in the current financial year. A total number of
4 forum meetings with the SETAs will be conducted in this financial year.
d)
2012/13 Medium Term Expenditure Framework (MTEF) Budget Information
MEDIUM-TERM
EXPENDITURE
ESTIMATE
PROGRAMME
2012/13
2013/14
2014/15
R’ thousand R’ thousand R’ thousand
Administration
Human
175 453
192 702
205 999
45 989
49 049
28 155 459
29 926 929
Resource
Development, Planning and 40 671
Monitoring Coordination
University Education
26 233 965
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Vocational and Continuing
4 950 200
5 528 440
5 837 899
Skills Development
100 068
107 436
114 356
Subtotal
31 500 357
34 030 026
36 134 232
9 606 148
10 134 486
10 742 555
41 106 505
44 164 512
46 876 787
Education and Training
Direct charge against the
National Revenue Fund
Total
For the 2012/13 MTEF period, the Department’s budget increased from R28.2 billion in
2011/12 to R31.5 billion for 2012/13 an annual average increase of 8.7%. The Department
received additional allocations to the amount of R183 million, R345 million and R449
million over the MTEF period which included funding for tertiary institutions infrastructure.
Programme 3: University Education dominated expenditure on the budget of the Department
mainly as a result of the transfer to universities and the NSFAS. These expenditure items
represented 83% of the total budget of the Department for 2012/13.
3.
Observations
3.1
The delays in the filling of vacant posts, especially in senior management positions
remained a serious concern for the Department. The vacancy rate target for the current
financial year was only 15%. It was observed that a number of senior managers had been
acting for a period exceeding 12 months in one position and the Department was requested to
appoint suitably qualified candidates for those posts.
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3.2
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The ICT governance maturity of the Department was level 0 and the target for the
current financial year was only 1. This was a serious concern for the Committee as ICT
played a critical role in the operations of the Department.
3.3
The utilisation of consultants to assist in policy development and NSF accrual system
remained a concern for the Committee. The Department was encouraged to improve its
internal capacity to minimize the use of consultants.
3.4
The proposals of the Department to develop an Academic Journal for Higher
Education and a Newsletter for the public at large were commended by the Committee.
3.5
It was raised with concern that only 74% of public higher education institutions had
good governance and management and the Department was requested to develop plans to
alleviate this challenge as it was affecting the delivery of quality education.
3.6
The Annual Performance Plan of the Department was not articulate on the process of
the establishment of universities in Mpumalanga and the Northern Cape. It was emphasized
that this process should be given priority as the demand for higher education was expanding.
3.7
The Committee expressed a serious concern regarding the unfunded mandate of the
Council for Quality Assurance in General and Further Education and Training (Umalusi).
The Department was requested to resolve this matter with the Department of Basic
Education.
3.8
The proposal for the regulation of fee increment by public higher education institution
was commended by the Committee.
3.9
Inadequate success and retention rate in HEI’s especially among black students
remained a concern for the Committee. The National Skills Fund (NSF) was requested to
allocate more funding for the development of future academics projects.
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3.10
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It was raised with concern that FET colleges experienced high failure rates and there
were constant delays in the release of results.
4.
Resolutions
The following formed part of key resolutions:

It was resolved that all international agreements undertook by the Department should
be submitted to the Committee for its own consideration,

A comprehensive progress report in the work of Administrators appointed in FET
colleges and higher education institutions should be submitted the Committee, and

5.
The NSF should submit a comprehensive report on its spending pattern.
Conclusion
The Department’s Annual Performance Plan 2012/13 presented to the Committee was a key
platform for implementing the vision and mandate of the Department. The vision was derived
from the current administration contained in the Strategic Plan 2010/11 – 2014/15 of the
Department and the Green Paper for Post School Education and Training. A total of five
programmes, namely; Administration, HRM and Planning, University Education, VCET and
Skills Development remained the key delivery vehicles for the realisation of a successful
post-school education and training sector.
The Annual Performance Plan 2012/13 presented to the Committee reflected an improvement
compared to the previous plans which did not show clear targets and time frames for the
implementation of key deliverables. The Department was committed to increased access and
improved opportunities for young people in the post school education and training sector. The
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annual average increase of 8.7% in the budget allocation of the Department bears testimony
to the Department’s strategic objective of ensuring that the skills needed to drive the
country’s economic growth and social development are delivered at an increasing rate.
The filling of vacant posts in senior management positions and the demand for financial
assistance in higher education and training remained major concerns for the Department. On
the positive side, the Department continued to support FET colleges and some of the major
highlights included: a steady increase in the national pass rate from below 30% to 40% in
2011, full bursaries for academically deserving learners, placements of 11 000 FET graduates
to industries and the proposed appointment of Chief Financial Officers for all FET colleges in
the country.
6.
Recommendations
The following formed part of the recommendations:

The NSF should allocate a special funding for the development of future academics
projects aimed at improving the quality of higher education,

A tracking system for FET colleges graduates should be implemented in order to
monitor their progress upon completion of their studies,

The Recognition of Prior Learning (RPL) and HIV programme in higher education
should be given priority by the Department, and

The filling of vacant posts, especially in senior management positions should take top
priority for the Department.
Report to be considered.
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2. Report of the Portfolio Committee on Economic Development on Budget Vote 28 and
the Strategic Plan of the Department of Economic Development and its entities for the
2012/2013-2016/2017 financial years, dated 18 April 2012
The Portfolio Committee on Economic Development having considered Budget Vote 28 and
the Strategic Plan of the Department of Economic Development and its entities [2012/20132016/2017], reports as follows:
1.
Introduction
The Department of Economic Development (the Department) was established in July 2009.
Its vision is to create decent work through meaningful economic transformation and inclusive
growth. The Department’s mission includes the following:

Coordinating the contributions of government departments, state owned entities and
civil society on economic development;

Contributing to efforts that ensure alignment between the economic policies and plans
of the state and its agencies and government’s political and economic objectives and
mandate; and

Promoting government’s goals of advancing economic development with decent work
opportunities.
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The year 2011 was declared a year of job creation. Subsequently, social partners namely
business, labour and the community sector were mobilised to join forces with government in
implementing the New Growth Path. For the year 2012, the President announced that “We
are going to launch a huge campaign of building the infrastructure nationwide. This will
boost the level of economy and create job opportunities”. In line with the President’s
announcement, the Department of Economic Development’s Annual Performance Plan for
the 2012/13 financial year states that in mid-2011, the Minister of Economic Development,
Mr E Patel (the Minister) was requested by the President and the Presidential Infrastructure
Coordinating Commission (PICC) to chair the policy secretariat of the PICC, to put together
a team to develop an infrastructure Plan and to co-ordinate the operational elements of its
implementation, the “required adjustments to the Department’s structure”. Furthermore, the
Department will continue to provide support to the PICC.
The Portfolio Committee on Economic Development (the Committee) is seized with aligning
its oversight mandate with government imperatives of job creation, the reduction of income
inequalities and eradication of poverty. The New Growth Path is one of the instruments to
achieve the stated goals.
The report compiled includes the budget vote and strategic plan of the Department as well as
those of state owned entities.
2.
Presentation by the Department of Economic Development on its strategic plan
The Department briefed the Committee on Budget Vote 28 and its strategic plan on 22 March
2012 at the Arabella Hotel and Spa in Hermanus during its strategic planning workshop.
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The Minister gave some introductory remarks and informed that Committee that in the life of
this Parliament, government had been introduced into a new a system of accountability, one
that required the strategic plans to be drafted for a five year period and to be updated
annually. The strategic plan talked to what the Department would be doing and was not an
operational plan of the New Growth Path (NGP). The Department, Competition Commission,
Competition Tribunal, International Trade Administration Council and Industrial
Development Council had all tabled their strategic plans. Khula and the South African MicroFinance Apex Fund were being merged into a single entity and that their strategic plans were
not tabled. The strategic plan of the new merged entity would be tabled in Parliament at the
end of April 2012. A letter to the Speaker had been drafted to that effect. The Department had
however decided to include the key entity information in its strategic plan even though
entities also tabled their strategic plans separately.
2.1
Overview of Budget Vote 28
The Department’s mandate is rooted in ensuring that the country focuses on employment
creation. In this regard, the Department formulated the country’s economic framework called
the New Growth Path (NGP) and it also signed Outcome 4 of the Service Delivery
Agreement. The NGP identifies key ‘jobs drivers’, with high employment creation potential
and the implementation of supporting policies to take advantage of this potential. The key
‘jobs drivers’ include agriculture and agro-processing, mining and beneficiation,
manufacturing, the ‘green economy’ as well as tourism. In terms of Outcome 4 of the Service
Delivery Agreement, the number of jobs created/reduction of unemployment is one of the key
outcome indicators for the Department’s performance. Other outcome indicators are Growth
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Domestic Product (GDP), employment ratio or absorption rate, distribution of earned income
and household poverty.
In the 2010/11 financial year, the total amount allocated to the Department was R598.4
million. The Department spent about 89.1 per cent of its total appropriation. Under
expenditure in the different programmes was attributed to a slow rate of filling vacancies and
some outstanding commitments as it was the Department’s inaugural year. For the 2011/12
financial year, the Department’s total appropriation has increased to R672.7 million. The
allocated budget has gone up by R74.3 million or 12.42 per cent.
According to the 2012 Estimates of National Expenditure (ENE), the 2012 Budget sets out
additional funding of R7.8 million in the 2012/13, R8.4 million in the 2013/14 and R9
million in the 2014/15 financial years to be distributed as follows:

R1.8 million (2012/13), R2 million (2013/14) and R2.3 (2014/15) million for
improvement in conditions of service to be included in compensation of employees
expenditure for the Department;

R1 million (2012/13), R1.1 million (2013/14) and R1.1 million (2014/15) to finance
improvement of conditions of service in the International Trade Administration
Commission of South Africa; and

R5 million (2012/13), R5.3 million (2013/14) and R5.6 million (2014/15) to be
reprioritised to the Economic Planning and Coordination programme.
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The table (Table 1) below shows the Budget Plan of the Department for the 2011-2013
financial years.
Table 1:
Budget
Programme
R million
2011/12
Programme 1: Administration
Programme 2: Economic Policy Development
Programme 3: Economic Planning and Co-ordination
Programme 4: Economic Planning and Dialogue
Total
56.3
23.5
502.1
16.5
598.4
2012/13
Nominal
Increase /
Decrease in
2012/13
60.1
29.1
565.5
18.1
672.7
3.8
5.6
63.4
1.6
74.3
Real Increase
/ Decrease in
2012/13
0.5
4.0
31.9
0.6
36.8
Nominal
Percent
change in
2012/13
6.75 per cent
23.83 per cent
12.63 per cent
9.70 per cent
12.42 per cent
Real Percent
change in
2012/13
0.80 per cent
16.93 per cent
6.35 per cent
3.59 per cent
6.15 per cent
For the 2012/13 financial year, compensation for employees increased from R64 million to
R91.6 million in the 2011/12 financial year. This figure constitutes 13.7 per cent of the total
budget. About R6.6 million has been allocated for consultants and professional service.
Approximately 78 per cent or R523.5 million of the Departmental budget has been allocated
to the transfers and subsidies in the 2012/13 financial year. In the previous financial year
transfers and subsidies were allocated R466.5 million.
2.2
Programme budget analysis
The Department executes its duties through its four programmes which are the following:

Programme 1 – Administration
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
Programme 2 – Economic Development Policy

Programme 3 – Economic Planning and Co-ordination

Programme 4 – Economic Development and Dialogue

Programme 1: Administration
PAGE: 364 of 429
The aims of this programme is to co-ordinate and render an effective, efficient, strategic
support and administrative service to the Minister, Deputy Minister, Director-General, the
Department and its agencies. This programme is made up of three sub-programmes, namely,
the Ministry, Office of the Director General and General Management Services. According to
the ENE, the office of the Director-General’s expenditure increased by 67.5 per cent between
the 2010/11 and 2011/12 financial years due to the once off payment for legal services
rendered in the Walmart/Massmart case. As a result, in the 2012/13 financial year, the
amount allocated to the Office of the Director General has decreased nominally by over
R800 000 or 16.21 per cent in real terms.
For the 2012/13 financial year, the amount allocated to the programme has increased
nominally by 6.75 per cent and in real terms, it has increased by 0.8 per cent. The largest
portion, constituting about 53 per cent of the programme’s budget goes to the General
Management of services sub-programme. This sub-programme is made up of the Chief
Financial Officer and Human Resources Management. According to the 2010/11 Annual
Report, this programme utilised 77.7 per cent of its budget.
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The table (Table 2) below shows the Budget Plan of Programme 1 sub programmes for the
2011-2013 financial years:
Table 2
Budget
Programme
R million
Sub-programme 1: Ministry
Sub-programme 2: Office of the Director General
Sub-programme 3: General Management Services
2011/12
19.6
7.1
29.6
2012/13
Nominal
Increase /
Decrease in
2012/13
21.0
6.3
32.8
1.4
- 0.8
3.2
Real Increase
/ Decrease in
2012/13
0.2
- 1.2
1.4
Nominal
Percent
change in
2012/13
7.14 per cent
-11.27 per cent
10.81 per cent
Real Percent
change in
2012/13
1.17 per cent
-16.21 per cent
4.64 per cent
2.2.2 Programme 2: Economic Policy Development
The aim of this programme is to strengthen the economic development policy capacity of
government; review, develop and propose the alignment of economic policies and develop
policies aimed at broadening participation in the economy; and creating decent work
opportunities. It is made up of Growth Path and Creation of Decent Work, Economic Policy,
Broad-Based Black Economic Empowerment (B-BBEE) and Second Economy.
This programme’s portion has increased from R23.5 million in the 2011/12 financial year to
R29.1 million in the 2012/13 financial year. This therefore means that the programme’s
allocation has increased nominally by 23.83 per cent or 16.93 in real terms.
The table (Table 3) below shows the Budget Plan of Programme 2 sub programmes for the
2011-2013 financial years:
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Table 3
Budget
Programme
R million
2011/12
Sub-programme 1: Growth Path and Creation of Decent Work6.2
Sub-programme 2: Economic Policy
8.4
Sub-programme 3: BBB Economic Empowerment
6.2
Sub-programme 4: Second Economy
2.7
2012/13
7.9
10.7
7.2
3.3
Nominal
Increase /
Decrease in
2012/13
Real Increase
/ Decrease in
2012/13
1.7
2.3
1.0
0.6
1.3
1.7
0.6
0.4
Nominal
Percent
change in
2012/13
27.42 per cent
27.38 per cent
16.13 per cent
20.37 per cent
Real Percent
change in
2012/13
20.32 per cent
20.28 per cent
9.66 per cent
13.66 per cent
During the 2011/12 and in the 2012/13 financial years, the largest portion went to the
Economic Policy sub-programme. In the 2012/13 financial year, Economic Policy’s
allocation has increased by 27.38 per cent nominally and by 20.28 per cent in real terms. The
sub-programme makes up 36.8 per cent of the programme’s budget. The Growth Path and
Creation of Decent Work programme saw the highest percentage increase at 27.42 per cent,
slightly higher that Economic Policy’s increment. According to the Department’s 2010/11
Annual Report, only 38.9 per cent of the funds allocated to this programme were utilised.
2.2.3 Programme 3: Economic Planning and Coordination
The aim of this programme is to promote economic planning and co-ordination through
developing economic planning proposals; provide oversight and policy co-ordination of
identified development finance institutions and economic regulatory bodies; and contribute to
the development of the Green Economy. The programme consists of five sub-programmes,
namely, Spatial, Sector and Economic Planning; Investment for Economic Development;
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Competitiveness and Trade for Decent Work; Economic Development, Financing and
Procurement; and Green Economy.
This programme takes up 84 per cent of the entire budget because it is responsible for
allocations to the state owned entities (SOEs). This programme’s budget has increased by
12.63 per cent nominally and 6.35 per cent in real terms. According to the Department’s
2010/11 Annual Report, this programme utilised 95.1 per cent of its final appropriation.
The table (Table 4) below shows the Budget Plan of Programme 3 sub programmes for the
2011-2013 financial years:
Table 4
Budget
Programme
R million
Sub-programme 1: Spatial, Sector
Sub-programme 2: Economic Development
Sub-programme 3: Investment
Sub-programme 4: Competitiveness
Sub-programme 5: Green Economy
TOTAL
2010/11
18.9
5.2
260.1
217.9
0.0
502.1
2011/12
20.1
6.2
284.9
254.2
0.0
565.4
Nominal
Increase /
Decrease in
2011/12
1.2
1.0
24.8
36.3
0.0
63.3
Real Increase
/ Decrease in
2011/12
0.3
0.7
11.8
24.7
0.0
37.4
Nominal
Percent
change in
2011/12
Real Percent
change in
2011/12
6.35 per cent
19.23 per cent
9.53 per cent
16.66 per cent
#DIV/0!
12.61 per cent
1.48 per cent
13.77 per cent
4.52 per cent
11.32 per cent
#DIV/0!
7.45 per cent
The largest portion of the funds has been allocated to the Investment for Economic
Development sub-programme. This sub-programme oversees the Development Finance
Institutions, namely Industrial Development Corporation (IDC), Khula and South African
Micro Apex Fund (SAMAF), which are in the process of merging. The sub-programme has
been allocated R284.9 million, which is nominally a 9.53 per cent increase compared to the
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2011/12 financial year. Of the R284.9 million, 97.4 per cent was used for transfers and
subsidies. In the 2011/12 financial year, the Department and the IDC established an Agroprocessing Competitiveness Fund to encourage new entrants in the sector. R65 million was
committed to small businesses and 375 jobs could be created.
The second largest amount of R254.2 million has been allocated to the Competitiveness and
Trade for Decent Work sub-programme. The two largest sub-programmes in terms of budget
allocation constitute 95 per cent of the total allocation for the Economic Planning and Coordination programme. The Competitiveness and Trade for Decent Work sub-programme
which is the second largest, is made up of the competition authorities, namely the
Competition Tribunal, the Competition Commission and the International Trade
Administration Commission (ITAC). The amount allocated to this sub-programme has
received the largest nominal increase of R36.3 million. The competition authorities have been
identified in the NGP as key to controlling inflationary pressures and inefficiencies combined
with more pro-active strategies to support an inclusive economy, social equity and regional
development. Specific measures to be undertaken in this regard include the following:

Competition investigations should continue to focus on areas of strategic importance,
including the food sector, construction and infrastructure, other key input costs, the
green economy and the IPAP sectors;

Law-enforcement agencies will cooperate more actively with the competition
authorities to address pervasive breaches of the competition laws;
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
PAGE: 369 of 429
The competition authorities will review their procedures to reduce the opportunity for
vexatious litigation and speed up competition probes;

More consideration should be given to mandating public interest conditions on
proposed mergers, particularly in respect of employment and prices;

Competition authorities should involve trade unions more, as provided for in the
Competition Act;

Government will consider draft amendments to the Competition Act to enhance the
Tribunal’s power to order divestiture where inherited market power permits repeated
abuse and to provide mechanisms to address pricing in markets characterised by
economic concentration;

The competition authorities and Development Finance Institutions (DFIs) should
cooperatively identify instances where support for new market entrants is needed to
secure more competitive outcomes, in order to combine competition and investment
measures; and

Government will develop guidelines for granting exemptions in terms of the
Competition Act for cooperation between producers where it will demonstrably
benefit job creation and expansion into export markets.
2.2.4 Programme 4: Economic Development and Dialogue
The aim of the programme is to promote social dialogue; implement strategic frameworks;
build capacity among social partners; and promote productivity, entrepreneurship and
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innovation in the workplace. The programme is divided into the following sub-programmes:
National Social Dialogue and Strategic Frameworks, Sector and Workplace Social Dialogue;
Capacity Building for Economic Development and Productivity; Entrepreneurship; and
Innovation.
The table (Table 5) below shows the Budget Plan of Programme 4 sub programmes for the
2011-2013 financial years:
Table 5:
Budget
Programme
R million
Sub-programme 1:
Sub-programme 2:
Sub-programme 3:
Sub-programme 4:
TOTAL
2010/11
11.0
0.6
2.7
2.2
15.5
2011/12
12.2
0.6
2.9
2.4
18.1
Nominal
Increase /
Decrease in
2011/12
1.2
0.0
0.2
0.2
2.6
Real Increase
/ Decrease in
2011/12
0.6
0.0
0.1
0.1
1.8
Nominal
Percent
change in
2011/12
Real Percent
change in
2011/12
10.91 per cent
0.00 per cent
7.41 per cent
9.09 per cent
16.77 per cent
5.83 per cent
-4.58 per cent
2.49 per cent
4.09 per cent
11.43 per cent
This programme was the worst in terms of under expenditure. According to the Department’s
2010/11 Annual Report, only 4.3 per cent of the budgeted amount was utilised in the 2010/11
financial year. In the 2010/11 financial year, R10.7 million was allocated for this programme
but only R456 000 was spent. However, in terms of the ENE, under adjusted appropriation,
about R16.5 million was utilised in the 2011/12 financial year. The variance can be partly
attributed to the fact that the Department is relatively new and some operations had not taken
off in 2010. For the 2012/13 financial year, R18.1 million has been allocated to the
programme which represents a 16.77 per cent nominal increase from the 2011/12 financial
year’s amount. The R18.1 million also represents a 2.8 per cent of the Departmental budget.
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The largest portion of the programme’s appropriation of R12.2 million goes to the National
Social Dialogue, indicating the importance of this sub-programme in the Economic
Development Dialogue programme.
2.3
Summary of discussions
Following questions raised by the Committee, the following is an account of the issues
deliberated by the Committee and the Department:

Economic overview: In evaluating where it was, the Department indicated that there
were some positives and some negatives. In terms of the big picture, what was
positive was that South Africa had one of the most integrated economies with the rest
of the world, but the risk was that global crises could hit the country
disproportionately. Focusing on southern export markets, South African economy was
one of the most globally integrated economies. On the negative side, there was a big
risk in 2008 in that more jobs were lost on per capita basis due to the global economic
crisis. Year 2011 however saw a more robust recovery of jobs, creating 1000 jobs a
day. Job recovery now needed to be shifted to manufacturing. On the economic front,
given the sluggish recovery of the economy in the European Union and United States
in Japan, the big risk was that South Africa would have had flat economy, but the
country had overcome the problem. One of the success stories was that South Africa
was the largest exporter to the rest to the rest of the African continent.
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
PAGE: 372 of 429
Exclusion of provinces and local government in the Department’s mission
statement: The Department acknowledged the Committee’s submission on this issue
and assured the Committee that the mission statement needed to be reformulated to
include provincial and local government.

Planning of the Department to skills development as in accordance with the skills
accord: An amount of R2 million had been set aside to develop skills across
government departments. An amount of R750 000 has been allocated per year to
develop the skills base in the Department. The Department will be taking a number of
interns each year. It was looking at seeing some progress in this regard. With each
infrastructure project, the Department wanted to have a skills plan. It would also be
looking at setting targets for the contractors.

Cross-cutting of the Department’s work with other departments: There was no
blue print when it came to the issue of co-ordination. For example, when the
Department of Trade and Industry did policy work on co-operatives, the Department
of Economic Development contributed.

Department and co-operatives: The Department of Trade and Industry would be
making an announcement on the support of co-operatives very soon.

Identification of co-ordination and vetting of staff as risk issues: The Department
saw these as secondary risks.

Assistance in the approval of solar water heaters: The Department had managed to
sort out the issue of solar water heaters. The issue came up in early December 2011
during COP17 and certification of the company to do the job was done in mid January
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2012. The Department was now working on a programme to localize the set up boxes
on solar water heaters.

Economic Development Institute and Research: The first phase of the Institute was
to build an internal capacity in the Department to bring people in without creating a
form of public institute. The Department was doing a preparatory work in this regard.

Accommodation issue: Members were concerned that since the Department’s
inception, the accommodation problem has been appearing in all its strategic
plan presentations: The Department had finalised the accommodation issue and
would during the course of 2012 invite the Committee to the opening of its own
premises.

Filling of vacant posts: The Department indicated that this was not a primary focus.
The Department was not trying to push up staff numbers. The existing staff was
currently delivering on the mandate of government. The Committee however felt that
the Department needed to do annual review of its organogram together with its annual
review of its strategic plan so as to get a better focus.
2.4
Recommendations
Based on the deliberations with the Department of Economic Development, the Portfolio
Committee on Economic Development recommends the following:
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
PAGE: 374 of 429
The Economic Development Department should, on a quarterly and annual basis,
provide figures on the growth in jobs as it relates to the five job drivers in the New
Growth Path. This should also be reflected in their Strategic Plan.

The Economic Development Department should be more explicit on the performance
indicators used in its budget vote to strongly reflect how the budget is meeting
Government policy priorities.

The Economic Development Department should ensure that future Budget Votes
clearly reflect how the principle of equity is being progressively realised through the
budget, and the same should apply as to whether the Budget Vote is engendered.

The Economic Development Department should use clearer indicators on how the
budget responds to issues of poverty eradication.

The Economic Development Department should update the Committee on the status
quo of the amended legislation (Competition Amendment Act (no.1 of 2009)). This
should be done by end of June 2012.

The Economic Development Department should speed up the facilitation of the
submission, to Parliament, of amendments to the International Trade Administration
Act.

The Economic Development Department should consider a review of the Industrial
Development Corporation’s mandate so as to balance its financial independence with
government’s development priorities.

The Economic Development Department should ensure that the additional
Presidential responsibility on infrastructure is reflected in the National Treasury’s
2012 medium term report.
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
PAGE: 375 of 429
The Economic Development Department should provide the Committee with a report
on resources and capacity set aside for its co-ordination role in the Presidential
Infrastructure project. This should be done by end June 2012.

The Economic Development Department should provide the Committee with progress
reports on support given to companies in distress. This should be done on a quarterly
basis.

The Economic Development Department should provide the Committee with progress
reports on support given to small, emerging farmers. This should also be done on a
quarterly basis.

The Economic Development Department should strengthen its mission statement to
include provincial and local government.
3.
Overview of the Strategic Plans of the State Owned Entities
3.1
Competition Commission
The Competition Commission (the Commission) is a statutory body constituted in terms of
the Competition Act, No 89 of 1998. In terms of the Act, the Commission has powers to
investigate, control and evaluate restrictive business practices, abuse of dominance and
powers to regulate mergers and acquisitions in order to ensure a healthy competitive
environment in the South African economy.
The Commission briefed the Committee on its strategic plan on 20 March 2012. They gave
an overview of the entity's planning process for its Strategic Plan for the 2012/13 financial
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year. They informed the Committee that the plan had been developed for the 2010-2013
financial years. There was an annual review of the achievements by Exco where risks and
changes to the environment were being taken into account. A situational analysis informed
the role of competition law and policy in bringing about economic transformation and gave a
deeper understanding and approach to priority sectors. It also showed the impact of adverse
court decisions on initiation and the investigation of complaints and further focused on
stakeholder engagements.
In alignment with the Department’s outcome 4, the Commission’s outputs included the
following:

Reporting on the obstacles to growth by illustrating obstacles through its cases;

Labour absorbing growth by prioritising cases that raise input costs to develop a
labour absorbing manufacturing sector;

Reducing youth employment by placing conditions on mergers to limit job losses and
offering employment opportunities to youth through its graduate training programme;

Raising competitiveness by using enforcement and advocacy to change business
culture and promote local rivalry to make firms competitive;

Reducing costs in the economy by prioritising cases that raised costs to the end
consumers;
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
PAGE: 377 of 429
Giving support for small businesses and co-operatives by breaking up cartels and
addressing anti-competitive behavior to open up markets for new businesses to enter
and grow; and

Expansion of the public works programme by prioritising cases in input to
construction and bid-rigging for government contracts.
The Commission further noted an increase in their workload and indicated that there was an
increased demand on their knowledge management, which led to strained human capacity.
The entity was in the process of expanding human resources to implement strategic priorities
and they recognised the urgent need to strengthen information and knowledge management.
The Competition’s strategic priorities include:

Achieving demonstrable outcomes by continuously prioritising sectors, developing
and implementing guidelines for the prioritisation of cases, undertaking market
enquiries and developing methodologies and capacity to undertake assessments of the
Competition’s interventions;

Increasing the competitive environment for economic activity by engaging with key
stakeholders to influence policy formulation and decision-making; and

Realising high performance organisation by developing and strengthening the
Competition’s management and leadership capability and implementing knowledge
management systems.
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The Commission presented the Committee with its annual performance plan for the
2012/2013 financial year. They mentioned that in terms of mergers and acquisitions, the total
number of mergers to be considered is 287 and the amount of merger fee income to be earned
is expected to be R52.75 million. Cases are classed into three phases. Phase one cases are
readily identifiable by the absence of competition issues while phase two cases are more
complex and involve transactions between potential competitors or between customers and
suppliers. Phase three cases are very complex cases that are likely to create or result in a
substantial prevention or lessening of competition.
In relation to advocacy and stakeholder relations, the Commission has aimed the following:

To engage with government and business stakeholders to promote a competitive
culture;

To promote policy and legislation that is consistent with the Competition Act;

To participate in international policy development; and

To promote collaboration and capacity building with African competition agencies.
The Competition presented its budget for the 2012/2013- 2013/2014 financial years. They
indicated that most of their income came from fees which were from people that filed their
merger cases. The other income included refunds and interests and funds form the
Department of Trade and Industry (DTI). Most of the entity's money is spent on human
resources and salaries. They concluded by identifying risks and these included space
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constraints, adverse and constraining decisions by the courts, the case load, difficulty in
predicting litigation costs, measuring the Competition’s impact and knowledge management.
3.1.1 Summary of discussions
Following questions raised by the Committee, the following is an account of the issues
deliberated by the Committee and the Commission:

Assistance of co-operatives to acquire local procurement: The Commission was
not a policy instrument to ensure that there were more co-operatives in the economy.
There was nothing specific that a competition authority did around creating more cooperatives or boosting the cooperatives movement. The Commission only created a
‘playing field’ that would allow the co-operative to be as competitive as any other
type of firm. They also ensured that existing co-operatives were able to compete on a
level playing field, which spoke to the Competition’s general mandate.

Serious sanctions imposed on cartels found to be price-fixing: In any case where
there was contravention of the Competition's Act, the Commission would fine a firm
up to ten per cent of its annual turnover. The Commission has however found that six
to seven per cent was quite a generous amount. In addition to this, if a problem was
found to be structural, the Commission could make an order that the firm divests by
breaking up and selling off some of its operations. This was seen as one of the ways
to fix a competition problem, but was something that the Commission would not do
easily as it was the most drastic measure to take. The Commission also had the power
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to nullify anti-competitive contracts and with the Amendment Act coming into play,
there was going to be an additional dimension of criminalisation of cartel conduct.
This would therefore serve as an additional deterrent measure.

Implications on Competition’s credibility when they lost court cases: Every new
piece of legislation all over the world would always be challenged in the first
instance. People wanted to create jurisprudence and a particular way of interpreting
that law. The same happened in the case of having a new competition law in the
country. The Commission understood that this was a normal, natural thing that
happened with new laws. The Commission had however stood its ground and fought
for its particular interpretation. All cases gone to the Constitutional Court had been
won by the Commission when they were before the Competition Tribunal but were
lost when they were presented to the Supreme Court of Appeal. The Commission did
not sit back and accept the decision but they appealed them and defended them right
up to the Constitutional Court. The decisions on those cases would however be made
in the next few months.

Reasons for the Commission’s increase in their case load: There could be a
number of reasons that amounted to an increase in the Commission’s case load. In
countries where they dealt with corruption more effectively, it was felt by many that
their society was more corrupt whereas this was not the case. It could be that these
countries were dealing with corruption more effectively. There were corruption
problems in South Africa which seemed to be historically determined. The country
has come from a period where there was greater government involvement in the
economy than currently. The liberation of the country in1994 occurred in the middle
of a time when the rest of the world was liberalising its economies and this was
something the country has inherited in policy. However, a lot of the old policies and
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relationships remained. The country also had a lot of cases of corruption. One of the
factors was the corporate leniency policies that allowed the first person who comes
forward the opportunity to be excused from punishment. This has proven to be an
effective way of catching people out.

Mergers versus the economy: Mergers were not always a bad thing. 98 per cent of
all the mergers were approved without a problem. In many cases mergers created
efficiencies and economies of scale that were good for consumers as it assisted with
the creation of new cheaper products and so on. A lot of the well-known cases that
were on the news focused on how much weight was given to public interest in
deciding if the merger would go through or not. Many of the mergers that the
Competition was currently involved in had nothing to do with public interest as they
were all “bad” in terms of competition law.

Commission’s initiative to limit job losses and their position if companies
retaliated by retrenching staff when fined: The Commission often heard that
companies threatened to fire their staff after being fined. They did not think this was a
sustainable argument and actually happened because at the end of the day, fines are
not borne by the consumers.

Budget for employing people with disabilities and graduates from previously
disadvantaged schools: The Commission included in their budget for human
resources employment of people with disabilities and graduates from previously
disadvantaged universities.
3.1.2 Recommendations
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Based on the deliberations with the Competition Commission, the Portfolio Committee on
Economic Development recommends the following:

The Competition Commission should ensure that small and medium-sized enterprises
(SMEs) and the historically disadvantaged are included in the processes of promoting
competition in the country. The Competition Commission should take into
consideration the long term impact of its decisions on mergers and acquisitions.

The Competition Commission should ensure that it has adequate capacity to handle
larger work volumes.

The Commission should develop a mechanism of monitoring the impact of its
decisions on public interests issues such as employment, prices and economy in
general.
3.2
Competition Tribunal
The Competition Tribunal (the Tribunal) is an independent, specialised institution established
by the statute (Competition Act 89 of 1998). The Competition Tribunal’s constitutional
mandate is contained in Section 34 of The Constitution of the Republic of South Africa, 1996
which states that “Everyone has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before a court or, where appropriate,
another independent and impartial tribunal and forum.” The Tribunal is responsible to
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adjudicate matters pertaining to restrictive practices (for e.g. cartels, abuse of dominance and
resale price maintenance), abuse of dominant position and mergers.
The Tribunal briefed the Committee on its strategic plan on 13 March 2012. They reminded
the Committee that the Tribunal consists of 10 members appointed by the President of the
Republic of South Africa. It also holds a secretariat of 15 that provides administrative
assistance to the panel members. The entity’s policy mandate is to focus on employment in
the National Growth Path (NGP), which is consistent with the objectives of the Competition
Act and public interest considerations that the Tribunal is obliged to consider. The Tribunal is
an adjudicate body and is limited in its ability to set objectives. This therefore means that it
has little influence in terms of the outcomes and policy drivers identified by the Department
that assist government.

The Tribunal’s legislative mandate consists of the following:

Ensuring that small and medium-sized enterprises have an equitable opportunity to
participate in the economy;

Promoting a greater spread of ownership, particularly of historically disadvantaged
people;

Promoting employment and advancing the social and economic welfare of all South
Africans;

Expanding opportunity for South African participation in the world economy;

Recognising the role of foreign competition; and
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Providing consumers with competitive prices and product choices.
The Tribunal’s strategic outcomes include the following:

Promoting and maintaining competition within South Africa through the
implementation of the Competition Act;

Educating and creating awareness of competition matters to the Tribunal's
stakeholders; and

Strengthening the Tribunal's organisational capability and performance to deliver on
its legislative mandate.
The entity’s challenges include capacity as a major challenge. There are currently three
vacancies stemming from the resignation of three part-time tribunal members. The Tribunal
has approached the Minister of Economic Development, Hon E Patel (the Minister) to appeal
for an additional full-time tribunal member. The Tribunal has however implemented a new
Case Document Management (CDM) system that will manage cases electronically. It has
taken the Tribunal 18 months to develop and load each case on the system but the CDM
would allow for the verification of data, keep track of the Tribunal’s rollout and act as a
reporting tool.
The Tribunal’s budget was based on an estimated number of cases, a system that has been
fairly accurate over the past few years. Operational costs have also been consistent over the
past few years. The entity spent 94 per cent of its budget in 2008, 87 per cent of its budget in
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2009, 70 per cent of its budget in 2010 and 80 per cent of its budget in 2011. The five-year
budget was guided by National Treasury guidelines. The budget set aside for 2012/13 was
based on the number of estimated cases and staff requirements and also took into account the
funds needed for an extra full-time Tribunal member. The Tribunal’s income was made up of
grants from the Department and fees received. Expenses were incurred on personnel, training,
professional services, recruitment costs and administration expenses. A separate budget was
therefore needed for appeal processes because of the admin services the Tribunal provides
them with.
3.2.1 Summary of discussions
Following questions raised by the Committee, the following is an account of the issues
deliberated by the Committee and the Tribunal:

Competitiveness versus public interests and their influence in the Tribunal's
decisions: Competitiveness and public interest were very difficult issues. The
Wal-Mart opinion from the Competition Appeals Court grappled with this issue. First,
the merger has to be examined on the “peer-competition” ground and come to a
conclusion. Thereafter, the public interest aspect has to be assessed and the Tribunal
has to ask if the merger will negatively affect public interest. It could be that the
merger negatively affects competition but has a positive effect on public interest. In
this case, the merger could be approved. This situation has never arisen in twelve
years. Typically, cases always show that mergers have not created a competition
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problem, but they have had a negative impact on public interest. Other industries
could also be affected and this also needs to be considered. There are cases, such as
the Wal-Mart case, where the effect on public interest is so negative that one has to
say no to the merger. In other cases, the negative effect on public interest can be dealt
with adequately by applying certain measures and conditions such as putting a
moratorium on retrenchments. This would allow the merger to go through, at the same
time protecting public interest. This becomes more difficult when the effect on public
interest is not measurable.

Vacancies for Tribunal members: The vacancies came about when one tribunal
member left. The other two resigned because they could not give more of their time to
the Tribunal.

Budget for learnerships and skills development: The Tribunal did not have
learnerships but has case managers that are graduate law students or economists that
serve under a kind-of apprenticeship for approximately three years. They are learning
on the job and are able to move on to very good jobs. The Tribunal also recruits
university students that are studying full-time. These are employed as interns and
work for the Tribunal during vacations. The interns do a variety of work and are paid
stipends. The Tribunal is trying to get the interns back as much as possible for skills
training. The current budget catered for three or four interns at approximately R75
000. The interns received R240 a day plus travelling costs. The Tribunal tries to
recruit from universities but cannot do too much, based on its capacity.

Mergers: The Committee wanted to know whether the Tribunal had noticed any
trends over time in terms of mergers, if the new CDM system would assist with
this function and the amount of mergers adjudicated for 2011: At the moment, the
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information that the Tribunal had was not being used as well as it was supposed to
be. The Competition Commission was in a better position to do analysis of trends for
the Tribunal because it had the research capacity and not all merger cases were passed
to the Tribunal. The Tribunal could still contribute more to analysing trends and the
case management system could help with the issue. Because the Tribunal’s focus is so
limited, its data set could be seen as less reliable than the Commission’s.

Whether the Tribunal felt any political pressure during their decision-making
processes: The Tribunal had not felt any pressure from any parties. The Ministers
have all been very respectful of the entity. This however did not mean that certain
cases did not create any pressure on the Tribunal. The media created pressure because
people tended to voice their opinions through them but this did not push the decision
either way. Members were assured that the Executive has been very respectful of the
Tribunal’s processes.

Budget: The Committee noted that the Tribunal seemed to under-spend on their
budget every financial year. Members also understood that the Tribunal found it
difficult to budget for the filing fee, but something had to be done because there
were millions of rands that were not being spent. They further wanted to know
how the use of consultants affected the budget: The Tribunal received a portion of
the filing fees that the Commission received for mergers and acquisitions. Any firm
lodging a merger or acquisition has to pay a filing fee based on a number of factors
depending on their size and turnover. The Tribunal receives a portion of this and in
addition to this, they receive a grant from the Department via the National Treasury to
cover its expenses. Historically the surplus occurred, not because of under spending,
but because of the filing fees that were generated. In discussion with the Department
and the National Treasury, it was agreed that the Department would not increase the
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Tribunal’s grant substantially over the next two years, and the accumulated surplus
would be drawn down over the period of the Medium Term Expenditure Framework
(MTEF) to fund the shortfall on the budget. Between 2012/13 and 2013/14 financial
years, the grant from the Department will only increase by R800 000, whereas the
budget will be slightly higher. Once the surplus is drawn down, the Tribunal will have
to negotiate with the National Treasury and the Department for a larger grant. The
budget for professional services in the strategic plan is spent on fees paid to the
Commission, fees paid to the DTI, bank charges, legal fees, recording services,
internal and external audit fees and fees associated with audit committees, technical
services fees, and a small amount is for consultants. Approximately 10 per cent of the
Tribunal’s salary bill is allocated to management consulting such as job grading.
Consultation fees made approximately R700 000 of the professional fees. Currently,
the Tribunal only has one consultant for broad policy development from records
management to documenting cases management. There is another consultant that
assists with computer software. The Tribunal has consultants but does not use them to
a large extent. They were used where the entity does not have the capacity, nor is
likely to develop capacity. The Tribunal only has 18 employees so it is not likely to
have a person with experience in everything.

People with disabilities in the IDC’s staff complement: The Tribunal did not have
any staff with disabilities. They had been trying over the last year to start an initiative
with Deaf South Africa to employ someone from their organisation as an intern. The
Tribunal was in the process of considering an application at the moment.

Working relations with ITAC and other institutions to ensure that they fulfilled
their legislative mandate, which required the entity to ensure that Small and
Medium and Micro Enterprises (SMMEs) have an equitable opportunity to
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participate in the economy, and to spread the ownership stakes of the historically
disadvantaged: the Tribunal worked with ITAC and the National Treasury, but not
really on issues regarding SMMEs. Where public interest issues arose that affect other
departments, the Tribunal asked them to come forward and make representations in
hearings.
3.2.2 Recommendations
Based on the deliberations with the Competition Tribunal, the Portfolio Committee on
Economic Development recommends the following:

The Competition Tribunal should ensure that public interest matters are taken into
account in decisions made on mergers and acquisitions.

The Competition Tribunal should provide detailed reports on strides made in
collaborating with relevant entities to improve its capacity to fulfill its mandate. This
should be done on a quarterly basis

The Competition Tribunal should make sure that, in its reports, it explains its
expenditure and usage of filing fees in a manner that is clear and easy to understand.

The Competition Tribunal should provide the Committee with progress made by the
authority in meeting the two per cent target set by government of employing people
living with disabilities. This should be done on a quarterly basis.

The Competition Tribunal should provide the Committee with quarterly reports on
efforts made to create opportunities for Small Medium and Micro Enterprises to
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participate in the economy; and spread ownership stakes of the historically
disadvantaged.

The Competition Tribunal should, in its next quarterly report, furnish the Committee
with information on progress made towards setting aside funds for skills development
and learnerships, out of its budget.
3.3
International Trade Administration Commission of South Africa
The International Trade Administration Commission of South Africa (ITAC) is a relatively
new institution established by an Act of Parliament, ITA Act of 2002, which came into effect
in June 2003. The predecessors of ITAC are the Board of Tariffs and Trade (BTT) and the
Board of Trade and Industry (BTI) which dates back to 1923. ITAC was established to
streamline, rationalise and mordernise an institution with a long history dating back to 1923.
The administration of the ITAC was transferred to the Minister except for the decisionmaking powers on individual tariff and trade remedy investigations that were retained by the
Minister of Trade and Industry. ITAC is made up of two full- time Commissioners (Chief
Commissioner and Deputy Chief Commissioner) and six part-time Commissioners.
ITAC briefed the Committee on its strategic plan on 13 March 2012. They informed the
Committee that the core functions include the following:
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Tariff investigations for the agriculture, chemicals, textiles, clothing and footwear,
metals and machinery and motor sectors;

Trade remedies for anti-dumping, countervailing, and safeguards; and

Import and export control for import permits, export permits and enforcement.
The strategic objectives and drivers include the following:

Ensuring appropriate contribution to employment creating growth and development
through provision of its international trade instruments agenda. What will be pivotal
in improving the provision of customs tariffs, trade remedies, and import and export
control will be the quality and turnaround times;

Ensuring strategic alignment and continued relevance within the Department and
national agenda. ITAC will become more proactive in the provision of technical
inputs and contributions to trade and industrial policy implementation, as well as trade
negotiations at bilateral, regional and multilateral levels; and

Ensuring organisational efficiency and effectiveness through business support
services. The performance of the institution will be driven through appropriate
business solutions, efficient and effective utilisation of material, human and
information technology resources.
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The global financial crisis and its adverse impact on the domestic economy presented new
challenges for ITAC. Time frames were shortened from 12 to nine months on remedies and
12 to six months for ordinary customs tariff investigations. The vast majority of applications
for tariff support and remedies were in respect of relatively low priced imports from the
emerging economies. Tariffs, in particular, for high value added and labour intensive
industries remain a critical intervention to retain and create jobs. According to the World
Trade Organisation’s (WTO’s) latest reports, governments have largely continued to resist
protectionist pressures. Sectors that are of particular relevance to ITAC that have been
prioritised for job creation (job drivers) include infrastructure, the green economy, the
agriculture value chain, the mining value chain and manufacturing sectors.
3.3.1 Summary of discussions
Following questions raised by the Committee, the following is an account of the issues
deliberated by the Committee and ITAC:

Reporting lines of ITAC now that the International Trade Administration Act
has been transferred to the Minister: The current reporting lines were working
well. There was a clear separation of functions that fell under the Minister of
Economic Development and those that fell under the Minister of Trade and Industry.
The Minister of Economic Development was responsible for overseeing the whole
administration of ITAC, giving them policy and strategic direction, and reporting. The
only functions that the Minister of Trade and Industry was responsible for was to
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consider recommendations made by the Competition Commission on specific
investigations such as tariff and trade remedies. Once the Minister of Trade and
Industry has approved a recommendation from the Commission, he makes a request
to the Minister of Finance. The Minister of Finance then delegates this function to the
Deputy Minister of Finance. The request is made to the Finance Ministry because
tariff amendments are made under the Customs and Excise Act of which the Minister
of Finance is the custodian.

Operationalisation of the SACU Tariff Board: The SACU agreement that South
Africa was party to provide for a number of institutions that had to be established,
including the SACU tariff board that would be responsible for the joint setting of
tariffs and joint determination of trade policy. Once the tariff board was operational, it
would change ITAC’s business process significantly. Currently, once investigations
were conducted, recommendations were made to the Minister who would request
finance to implement them. Once the tariff board was put into practice, ITAC’s
recommendation would go to the SACU tariff board that would evaluate ITAC’s
report and make a recommendation to the SACU Council of Ministers, which would
then make a decision on tariff and trade remedies. The SACU Council of Ministers
met four times a year and this resulted to taking long time to get decisions on tariff
and trade remedies. SACU has been working on the establishment of these institutions
for years, but nothing tangible has happened so far. ITAC would wait and see what
happens but if the tariff board becomes operational certain risks would have to be
managed.

ITAC's impact on employment: It was difficult to put a number on the impact ITAC
made on employment because the organisation made an indirect impact through its
instruments. For example, if ITAC provided a tariff increase for clothing to enable
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local clothing manufacturers to compete with low-cost imports from China, there
would be other incentives provided by the government for the same clothing industry.
So, after things stabilise, it is difficult to say what ITAC’s impact was on employment
and what the impact was of government’s incentives. The two are very difficult to
separate.

Public promotions: ITAC had outreach programmes and provincial workshops
covering all provinces to inform the public about the organisation. However, due to
the nature of the work ITAC did, it was likely that the ordinary man on the street
might not be aware of the entity. Relevant stakeholders, the industry and business
people were very much aware of ITAC’s presence.

Members were interested to know how ITAC was protecting local industries from the
negative effect of cheap goods flooding the market.

Anti-dumping strategy and its effectiveness: There were anti-dumping regulations
that stipulated the procedure to be followed with regards to anti-dumping
investigations. It also covered substantive anti-dumping issues that had to be
considered. ITAC also had a draft anti-dumping policy that articulated the entity’s
approach to anti-dumping. It was a policy that was still under consideration by the
Minister.

Capacity to effectively monitor and evaluate trade flows: ITAC was in the process
of building the capacity to monitor trade flows. The entity was also in the process of
establishing an office of the Chief Economist for ITAC where the function to monitor
trade flows would reside.
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Budget for learnerships: ITAC was in the process of preparing for the learnership
programmes and would be employing eight interns for a period of twelve months. A
budget for this would come out of the Human Resources budget. The positions were
advertised in the national newspapers and a focus was on exposing women to these
opportunities.

Budget allocated towards compensation of employees: The question asked was
whether ITAC was happy with the 75 per cent allocation given their capacity
challenge: ITAC had sufficient staff for the work that it did. The challenge that the
entity had was that their staff members were not recognised and rewarded given the
nature of their work. ITAC had embarked on a job evaluation exercise that they hoped
to complete in a few months and a submission would be made to the Department to
upgrade the positions.

ITAC’s role in contributing to the competitiveness of South African goods: ITAC
would increase import duties for a domestic manufacturer because the domestic
selling price of that domestic manufacturer is significantly higher than the prices of
competing imports. This would lead to that domestic manufacturer having a
competitive disadvantage and that disadvantage would be off-set by increasing the
tariff. When ITAC provided tariff increases, they made sure that in the long run, such
protected industries should improve their efficiencies and economies of scale so that
they could compete with other industries without protection.
3.3.2 Recommendations
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Based on the deliberations with the International Trade and Administration Commission, the
Committee recommends the following:

The International Trade and Administration Commission should update the
Committee on the operationalisation of the South African Customs Union (SACU)
Board. This should be done as soon as the operationalisation takes place.

The International Trade and Administration Commission should provide the
Committee with figures on jobs created, lost or saved through its interventions. This
should be done on a quarterly basis.

The International Trade and Administration Commission should, in its 2012/13
financial year quarterly reports, include progress made on the draft Anti-dumping
Strategy.

The International Trade and Administration Commission should provide the
Committee with a progress report on the planned Office of the Chief Economist and
the building of capacity to monitor trade flows. This should be done by the end of
June 2012.

The International Trade and Administration Commission must furnish the Committee
with progress reports on its learnership and skills development budget and
programme. This should be done on a quarterly basis.
3.4
Industrial Development Corporation
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The Industrial Development Corporation (IDC) is a self-financing national development
finance institution whose primary objectives are to contribute to the generation of balanced,
sustainable economic growth in Africa and to the economic empowerment of the South
African population, thereby promoting the economic prosperity of all citizens. The IDC
achieves this by promoting entrepreneurship through the building of competitive industries
and enterprises based on sound business principles. The IDC has a strong balance sheet and
the company is run prudently.
The IDC briefed the Committee on its strategic plan on 20 March 2012. They informed their
presentation covered an overview of IDC’s sector development strategies for the 2012/2013
financial year. They further indicated that during the 2011/2012 financial year, IDC had been
working closely with the Department, Khula and South African Micro-Finance Apex Fund
(Samaf) on the project to establish a new small business funding entity. The business plan of
the new entity would be presented to the Committee separately.
The IDC informed the Committee that their objective is to support industrial capacity
development by facilitating sustainable direct and indirect employment, focusing on regional
equity, growing the entrepreneur and Small and Medium Enterprises (SME) sectors, focusing
on expansionary and/or Broad-Based Black Economic Empowerment (BBBEE), focusing on
environmentally sustainable growth, and growing sectoral diversity and increasing
localisation. The IDC’s strategy includes:

Concentrating on industrial development in line with the National Growth Path (NGP)
and the Industrial Policy Action Plan 2 (IPAP2);
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Contributing to an enabling environment by taking a proactive role in shaping and
influencing policy;

Leveraging the IDC's portfolio for maximum impact and designing customised
funding schemes as an enabler for development 2010; and

Focusing on customer service and the environmental impact by looking at improved
customer service, improved efficiencies and reducing industries and the IDC's impact
on the environment.
The IDC's focus areas and budgeted investments for the 2012/13 financial year include:

Agro industries (seven per cent): for rural-poor linkages and import replacement;

Strategic High Impact Projects (17 per cent): for industrial infrastructure and
localisation of bus, truck and taxi manufacturing;

Green industries (21 per cent): for non fossil fuel based renewable energy, energy
efficiency, and emission and pollution mitigation;

Venture capital ( one per cent): for commercialisation of South African intellectual
property

Chemical and allied industries (seven per cent): for basic chemicals, glass and
ceramics, cement and concrete building materials, plastic and rubber products and
import replacement;

Textiles (per cent): for the competitive local/regional value chain;
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Metals and machinery (eight per cent): for fabricated metal, capital and transport
equipment, automotive and components for green industries;

Forestry and wood products (nine per cent): for pulp and paper, community forestry
and furniture;

Mining and minerals beneficiation (17 per cent): for the junior mining sector, and
competitive steel pricing;

Media and motion pictures (three per cent): for film production, audience
development, production facilities and broadcasting;

Tourism (three per cent): for under-developed nodes in South Africa;

Healthcare (three per cent): for pharmaceutical manufacturing and medical devices;
and

Information Communication Technology (four per cent): for telecommunication,
shared services, and Set-Top Boxes (STBs).
The IDC relies on borrowings, internal profitability, capital growth and exits from mature
investments to maintain and expand its funding ability. The balance between its development
role and financial performance is maintained by relying on proceeds from mature equity
investments (both dividends and capital growth) to cross-subsidise higher risk activities and
loan portfolio. The IDC has put greater emphasis on funding start-ups and expansions, which
requires a strong balance sheet to withstand the impact of potential failures. Utilisation of
funding for start-ups was approved for the period April 2009 to February 2012. Fifty per cent
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of the allocated funds was used for start-ups, Thirty five per cent for expansion, twelve per
cent for distressed businesses and two per cent for other activities.
3.4.1 Summary of discussions
Following questions raised by the Committee, the following is an account of the issues
deliberated by the Committee and the IDC:

Data on failed initiatives invested in: Employment levels were close to
approximately 17 per cent, which was fairly high, but this was a reflection of the
high-risk profile that the IDC took and it had been growing during the economic
crisis. This however did not equate to 17 per cent of failed projects. When the IDC ran
into a problem they impaired it and worked with the company to try and turn things
around.

Investment in the textile industry to help resuscitate it: The IDC was both
proactive and reactive when it came to the textile industry. If the IDC did not come
into the picture, some of companies that the entity had offered distress funding to
could have lost many jobs. The provinces that have benefited the most were
KwaZulu-Natal and the Western Cape where most of the textiles industries were. The
IDC approached these companies to ask what could be done to make them more
sustainable and the solution provided had to be a sustainable one. The partnership the
IDC has had with the Department of Trade and Industry helped a lot, as that
Department provided grant portions in some cases where companies were not
competitive or had old equipment. The IDC would provide data on how many start-
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ups they were involved in and was well-aware of the fact that the textile industry was
a sensitive sector which offered a lot of employment opportunities.

IDC’s core business versus their energy efficiency initiatives: IDC's energy
initiative was part of the entity's funding programme. The initiative was done in
partnership with companies that the entity invested in. Many of the major companies
the IDC invested in used a lot of energy by nature, so the entity was to find ways of
using energy efficiently.

Amount of jobs going to be created: The IDC was looking at creating approximately
30 000 direct jobs in the 2012/2013 financial year and these did not include the
indirect jobs that would be created. The IDC had R10 billion that was approved in the
2011/2012 financial year for companies that were able to create jobs at a cost of less
than R500 000. The entity also engaged with the Unemployment Insurance Fund
(UIF) to access money to encourage job creation. They understood that some sectors
were not as labour intensive as the government wanted them to be, although they did
have an indirect effect on job creation.

Sustainability: Members wondered how the IDC had been able to sustain itself
since the 1950’s: The IDC's major strength was its people, who were the ones that
made decisions and ensured that projects were sustainable. It was the quality of the
investments that the entity had made over the years as these helped the IDC to raise
additional funds that they could invest back into the economy. The IDC also had
relationships with other development finance institutions that provided long term
funding to the entity for investment purposes and assistance from the board and the
shareholder also assisted.
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Investments in co-operatives: The IDC did not only see co-operatives as being in the
micro business but thought that there were opportunities for them as well. This
however depended on how co-operatives were configured. For example, the IDC was
increasing its investment into the green energy initiative and one of the requirements
was that the communities had to be participants in the initiative.

Budget for skills development: The IDC supported learners in four ways. They had a
top learnership programme that supported people to register as CA's and to do their
articles through the IDC. They also took on matriculants to help them pick up office
administration skills and unemployed graduates to take them through a business
learnership. Over and above this, bursaries were given to students with over 200
students that the IDC was already giving bursaries to. The IDC tried to focus on areas
where there were scarce skills.

Creation of solar energy: Why was South Africa lagging behind in terms of
creating solar energy: The process that government was involved in to promote
investment in alternative energy was trying to address the matter of solar energy. It
was not only in Germany, but Spain was also a leader in the technology that they used
for creating alternative energy. It was perhaps due to the high costs of technology that
developing countries were lagging behind.

Investment in the green economy versus creation of more sustainable jobs: The
sustainability of green jobs was informed by technology. There was a report that the
IDC did with the Development Bank of Southern Africa (DBSA) and Trade and
Industrial Policy Strategies (TIPS) on green jobs. The report looked at where the jobs
could be created and if it was possible to create jobs in the green economy. There
were sectors that would create more green jobs than others.
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3.4.2 Recommendations
Based on the deliberations with the Industrial Development Corporation, the Portfolio
Committee on Economic Develiopment recommends the following:

The Industrial Development Corporation should ensure transparency and consistency
when reporting on financed companies such as those that install solar water heaters
and companies in distress.

The Industrial Development Corporation should provide the Committee with detailed
information on the start-up companies which they are funding. This should be done by
the end of June 2012.

The Industrial Development Corporation should provide detailed information on the
number and nature of investment initiatives that have not been successful. This should
be done by end of June 2012.

The Industrial Development Corporation should provide the Committee with progress
made in developing a strategy to ensure that beneficiary companies are using energy
efficiently. This should be done by end of June 2012.

The Industrial Development Corporation should furnish the Committee with
information on the status, nature and number of co-operatives that they are currently
funding. This should be done by end of June 2012.
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The Industrial Development Corporation should ensure that the new entity, in
carrying out its duties, take into consideration past mistakes by ensuring that
vulnerable groups are taken care of.
5.
Conclusion
The Committee appreciated the presentations received and noted the progress made.
Briefings by the Department and the entities on their strategic plans and budget allocations
enabled the Committee to explore the budget and strategic plans. The Committee would
however be waiting for the tabling of the new merged entity’s strategic plan at the end of
April 2012 as promised by the Department.
Having considered the budget vote and strategic plan of the Department of Economic
Development, the Portfolio Committee recommends that the House endorse the 2012/13
Budget Vote 28 of the Department of Economic Development.
Report to be considered.
3. Report of the Portfolio Committee on Home Affairs on the Annual Performance Plan
and Budget Vote 4 of the Department of Home Affairs and its entities, dated 24 April
2012.
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The Portfolio Committee on Home Affairs having met with the Department of Home Affairs
(DHA) on 13 March 2012, Government Printing Works (GPW), Film and Publication Board
(FPB) on 17 April 2012 and Electoral Commission (EC) on 18 April 2012, reports as follows:
1.
Introduction
The Portfolio Committee on Home Affairs plays an oversight role over the Department of
Home Affairs and its entities. The Committee scrutinized the Annual Performance Plan and
the budget of the DHA as well as Strategic Plans, Performance Plans and Budgets of the EC,
GPW and FPB in order to establish whether funds that are allocated to the DHA and its
entities are aligned to the respective strategic plan documents and Government Priorities.
2.
Department of Home Affairs
The Department of Home Affairs is a custodian, protector and verifier of the identity and
status of citizens and other persons resident in South Africa as recorded on the National
Population Register (NPR) and this includes issuing travelling documents. The department
also controls, regulates and facilitates immigration and the traffic of persons through ports of
entry.
The activities of the department are organized in the following programmes:
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Programme 1: Administration. The purpose of this programme is to provide leadership,
management and support services to the department.
Programme 2: Citizens Affairs. The purpose of the programme is to provide secure,
efficient and accessible services and documents for citizens and lawful residents.
Programme 3: Immigration Affairs. The purpose of this programme is to facilitate and
regulate the secure movement of people into and out of the Republic of South Africa through
ports of entry, determine the status of asylum seekers and regulate refugee affairs.
The Medium Term Strategic Framework (MTSF) of government has twelve priority
outcomes and the Department of Home Affairs contributes directly to three of the twelve
outcomes which are:
Outcome 3: All people in South Africa are and feel safe.
Outcome 5: A skilled and capable workforce to support an inclusive growth path and;
Outcome 12: An efficient, effective and development oriented public service and an
empowered, fair and inclusive citizenship.
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In addition to the Programme of Action of Government, the following priorities had been
specified for the department in the State of the Nation Address for 2012:

Improving border crossings, port capacity and Information and Communication
Technologies (ICT) as part of the regional trade corridors.

Advocating for improved departmental infrastructure as part of initiatives of the
Presidential Infrastructure Commission/Summit.

Improving national security, fraud detection and prevention through online
verification of identity such as fingerprints.

Updating needed scarce foreign skills lists and speeding up visa provision in line with
the required technical and engineering capacity needed for large infrastructure
projects.

Job creation through meaningful economic transformation and inclusive growth.
It is in line with these priorities that the department proposed three strategic outcomes,
comprising 11 strategic objectives across its three programmes. The three outcomes are as
follows:

Secured South African citizenship and identity.

Immigration managed effectively and securely in the national interested including
social and cultural development.

A service that is efficient, accessible and corruption free.
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The Minister of Home Affairs signed Performance Agreement with the President. The
agreement included the following:

Completion of all strategic information and identification projects within already
defined budgets and timeframes.

Effective and efficient refugee management strategies and systems.

Contributing to the level of skills and general economic development in South Africa
targets by realizing a positive skills migration trend of around 50 000 migrants
annually. The focus should be on critical skills shortages, supportive of the medium
term strategies and government’s outcomes.

The registration of every child within 30 days of birth.

The issuing of identity documents to every South African 16 years and above.

Improving the turnaround times for all services, queuing times and unit costs per
service.

Determining and improving the maximum distance for a citizen to travel to access
Home Affairs services.
2.1
Strategic Priorities for 2012/13
In the 2012, there had been budget cuts in all the programmes of the department, although the
expenditure of frontline personnel had increased. Government in general is targeting the
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reduction of large administrative budgets in favour of increasing frontline personnel and
infrastructure investment to channel more resources toward the actual services delivery. The
department divided its 11 strategic objectives into 24 outputs and 53 targets. Of the 53 targets
36 were for Civics and Immigration and 17 were for key support functions.
Herewith are the 11 strategic objectives for the department for 2012/13:

To ensure that registration at birth is the only entry point for South Africans to the
National Population Register (NPR).

To issue identity documents to citizens turning 16 years and above.

To ensure registration and identification of all South African citizens, foreign
residents, refugees and asylum seekers to enhance the integrity and security of
identity.

To ensure a secure, responsive and flexible immigration regime in support of national
security, priorities and interests.

To implement effective and efficient asylum seeker and refugee management
strategies and systems.

To facilitate the efficient movement of bona fide travelers to support national interest
and priorities, and to prevent and prohibit the movement of undesirable persons in the
interest of national security.
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To contribute towards realizing a positive skills migration trend of around 50 000
migrants annually.

To transform the culture of the organization in support of security identity, citizenship
and international migration.

To ensure ethical conduct and a zero tolerance approach to corruption.

To obtain a clean audit report

To ensure secure, effective, efficient and accessible service delivery to clients.
2.1.1 Programme 1: Administration
Expenditure on this programme over the MTEF period will focus on:

Improving access to the services rendered by the department by increasing the number
of services points and connecting health facilities to the department’s network for
registration of birth for babies. The department plans to connect 43 health facilities
and the total number of facilities connected would be 235.

Designing and implementing a new National Identity System that would include
South African and foreign nationals. This would include business process
reengineering, provision of access to systems, inherent biometric features and system
integration to enable the department to ensure the integrity and security of the identity
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of all citizens. This form part of the department’s Information Technology System
Modernization Project (Who Am Online Project) for which an amount of R1.1 billion
had been allocated over the MTEF period.

Improving business processes and systems to combat fraud and corruption by rolling
out online verification and live capture for both passports and identity documents to
districts and regional offices.

Integration of immigration and civic services systems, in particular the National
Immigration Information System(NIIS), Case Management, and the Movement
Control System(MCS), Home Affairs National Identification System(HANIS) and the
National Population Register(NPR) through the Systems Modernization Project.

Improving the service delivery environment for both the public and staff through
infrastructure development and improvement.

Developing a cadre of disciplined, professional officials who are security conscious
and caring and responsive to the needs of all South Africans through establishing a
world class Academy and the culture and practice of constant learning.

Developing leadership with the capacity to drive transformation.
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2.1.2 Programme 2: Citizens Affairs
Expenditure on this programme over the MTEF period will focus on:

Continued rollout of the NPR Campaign with focus on birth, marriage and death
registrations and the issuance of identity documents.

Rendering services in provincial offices as well as the production and providing
support in the issuance of key enabling documents, including the efficient
management of the refugee centers and ports of entry in provinces.

Implementing an operating model that is appropriate to a security department that
must deliver services effectively and securely to every citizen and to other clients and
sectors.

Digitization of documents and stabling of a document management system.
2.1.3 Programme 3: Immigration Affairs.
Expenditure on this programme over the MTEF period will focus on:

Facilitating the importation of critical skills into South Africa.
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Implementing an integrated immigration management system by amending and
implementing the Immigration and Refugee Acts and Regulations.

Developing and implementing a risk based immigration management approach to
minimize risks and maximize benefits to the country.
3.
Budget of the department
The department received a total allocation of R5,3 billion in 2012/13. This is a 9.5% decrease
in nominal terms from its 2011/12 budget. The projected inflation is 5.9% and the overall
cuts to the budget of the department of 9.5% (-R554 million) are thus closer to 15.4%. As
result of the reduced budget allocation, all programmes within the department had a cut in
expenditure in 2012/13. The biggest reduction is for the Administration programme which is
11.8% or R223.8 million less. The Citizen Affairs budget was decreased by 9% or R306.3
million and Immigration Services receives 4.2% or R24.2 million less in 2012/13. The only
increases are under Administrative programme for corporate services (+11.24%) or R56
million and office accommodation (+5.5%) or R17 million and under the citizen services
delivery to provinces gets a R105 million increase (+6.8%).
GPW and FPB had their budgets increased. The FPB budget increased by 6% or R3.9 million
and GPW was increased by 4.8% or R6.2 million. The EC budget has declined due to the fact
that it is a non-election year.
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The majority of the sub-programmes within the DHA received smaller allocations this
financial year than 2011/12.
The allocation has been broken down into the following programmes:
Programme
Nominal % change
R million
2011/12
2012/13
Programme 1:
1 897.9
1 674.1
-11.76
3 374.2
3 067.9
-9.08
578.8
554.3
-4.18
R5 850.9
R5 296.3
Administration
Programme 2:
Citizen Affairs
Programme 3:
Immigration
Affairs
TOTAL
The major contributors to the decrease from 2011/12 to 2012/13 related to the once-off
funding from National Treasury to cover the shortfall in the production cost of passports in
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2011/12 which was R327 million as well as the R234 million less for Information
Technology Modernization projects. Only R314 million had been allocated for IT
Modernization as against the R548 million previously allocated.
For the MTEF period, the department requested R5 763.4 billion for 2012/13, 2012/14 was
R7 131.9 billion and for 2014/15 was R7 325.7 billion but it was only allocated R5 269.3
billion, R6257.8 billion and R6 536.6 billion respectively.
It requested additional funding for the following:

Re-training of immigration and civic officials on awareness

Security upgrade

Profiling border community immigrants and strengthening Stakeholder forum

Advance Passenger Processing System

Capacity improvement: 282 posts for immigration affairs and 19 posts countercorruption officials

Financial management improvement

Deportation

Building Project for new Department of Home Affairs Head office

Department of Home Affairs IT Modernization
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
Create the capacity for effective and efficient Maritime Ports and Border Management

Implementation of a new model for effective and efficient Refugee Status
Determination

Relocation of Refugee Reception offices towards the borderline

Law enforcement, monitoring and compliance – improve systems records, turn rail
stations into proper ports of entry, improve tracing and analysis functions and porous
borderline (informal crossings)

Recruitment and training of new Immigration Officers and

Rollout of the Smart Card Technology.
4.
Challenges faced by the department:

The Advanced Passenger Processing system has only been allocated R50 million.
This is not sufficient for the completion of the entire project.

The implementation of the Border Post Infrastructure is in conjunction with the
Department of Public Works (DPW) and it is not solely in the hands of the
Department of Home Affairs.
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
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Inadequate capacity and funding for increasing presence and monitoring of migration
within sea and air ports of entry is a continued security risk.

5.
Financial management capacity is lacking in both skills and human resources.
The Committee raised the following issues:

Recommended the regularization of other undocumented nationals from Southern
Africa in South Africa along the lines of the documentation of the Zimbabwean
Project.

The local offices of the department should be further capacitated.

The need for more effort in successful prosecution of the officials of the department
who are found to be corrupt.

The Committee needed clarity on the Nigerians who were wrongfully deported by the
department.

The issue of employment of people with disabilities was not sufficiently addressed by
the department. People with disability were below the 2% threshold required by law.

The issue of reaching 50% gender parity especially for senior management positions
is an issue that needed further effort by the department. At the meeting, there were
only two females at the Deputy Director-General level.

During the People’s Assembly in Mangaung, the Committee visited the Thaba Nchu
office and the Committee requested that that office should also be given a priority.
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The Lebombo Border post – the infrastructure was done by DPW without consulting
the department. As a result it was done in a way that was not unsuitable for the work
of the DHA, it is thus presently not being used.

The department reported that the Smart ID Card would be piloted in 2012/13 but it
has not been budgeted for in 2012/13.

Ganyisa office in the North West has not been included in the budget for 2012/13 and
it was reported that people were being serviced in a container.

Soweto is one of the biggest townships and yet it does not have an office.

The Chairperson indicated that Skilpadheks border post in the North West did not
have enough residential accommodation. Accommodation for officials at the land
ports of entry should be looked into by the departments and the Department of Public
Works.

It was a concern to the Committee that there was not budget for motor vehicles and
during oversight it was reported in many offices lack of transport was hampering
service delivery.

The department should educate people on the services that it provides. The budget did
not have allocation for community awareness.

The total for unauthorized expenditure of R99 883 million was far from acceptable.

The centralization of finalizing permits at DHA head office was causing delays and
the Committee wanted the DHA to speed up this process.
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Entities that receive transfers from the Department of Home Affairs
The Film and Publication Board, Government Printing Works and the Independent Electoral
Commission receive transfers from the DHA. During the 2010/11 financial year, they showed
an improvement in the handling of their finances. This was evident when they presented their
annual reports because they all received an unqualified audit report from the AuditorGeneral. GPW during its presentation of the Strategic Plan and Annual Performance Plan for
2012/13, indicated that it would not require transfers from DHA from the 2014/15 financial
year since operating as a government component had made it far more profitable.
6.1.
Film and Publication Board (FPB)
The FPB was established in terms of the Film and Publications Act (1996) with the Deputy
Minister of Home Affairs as the executive authority. The Board regulates and controls the
creation, production, possession, and exhibition of certain films, interactive computer games
and publications. The mandate of the FPB is the protection of children from exposure to
harmful and inappropriate content and punishes the use of children in pornography and this is
done by the regulation of films, publications and games. The FPB works closely with the
Departments of Education, Police as well as Independent Communications Authority of
South Africa (ICASA) and other regulators. FPB and ICASA had concluded a Memorandum
of Understanding. FPB also reported that it has engaged internet service providers concerning
children accessing undesirable content, but that mobile access by youth to such content was
increasing and difficult to control.
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The FPB vision has changed to: A leading and credible regulator of the content of films,
games and certain publications to inform and protect adults and children. This vision now
aims to protect adults who do not want to be exposed to harmful content.
The FPB has identified three strategic goals for the institution for the three year MTEF. These
strategic objectives are divided across the FPBs four programmes and 9 strategic objectives.
The four programmes are as follows:

Industry compliance programme

Public awareness and education programme

Organizational capacity and capability enhancement programme

Administration and governance programme
The spending over the MTEF period will focus on the following:

To expand the activities aimed at preventing child pornography on the internet;

To continuously evaluate the convergence of societal norms and values;

To review the Films and Publications Act in order to ensure effective regulation of the
industry;

To develop strategic partnerships and stakeholder relations;
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
To conduct outreach awareness;

To implement FPB turnaround strategy;

To improve human resources management;

To amend the regulation fee structure and to identify new revenue generation sources;
and

To ensure sound IT governance throughout the organization.
The FPB receives its revenue from the following sources:

Grant from the Department of Home Affairs

Classification fees

Registration fees

Annual renewal of registration certificates and,

Interest received.
For 2012/13 FPB has budgeted for R79 373 million and is expecting a grant of R69 372
million from the Department of Home Affairs. The rest of the revenue will come from
classification, registration and annual renewal of registration certificates.
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6.1.1. The Portfolio Committee on Home Affairs raised the following issues:

FPB should strongly look into movies that are made in the streets and broadcast into
certain television channels. These movies have not been classified by the FPB.

FPB should consider blocking internet sites that provide harmful content.

Parents should be educated on the danger of unclassified films and games, especially
the effects it has on children.

FPB should make itself visible to the community and educate the community about
the work of FPB.

There was a concern raised with the language used in music and whether if falls
within the mandate of FPB and the response from FPB was that it only classifies
music videos. It can only act if there is a complaint from members of the public about
the lyrics.

Films and games come through ports of entry into South Africa and it seems that FPB
does not have the capacity to enforce monitoring and compliance. It cannot rely on
South African Revenue Services (SARS) for intercepting illegal materials coming into
the country.

There are 17 monitors for the whole country and it is not enough to conduct
monitoring.

Based on the challenges of the FPB, there was a need to review legislation.
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6.2. Government Printing Works (GPW)
The GPW was converted into a Government Component in 2009. It provides security and
other printing services to the South African government and some states in the SADC region.
The entity’s main strategic objective is to establish itself as the security printer of choice. To
achieve this, it identified three strategic priorities:

Replacing machinery and equipment

Acquiring a new production facility and office accommodation

Developing a business and marketing strategy
GPW is in discussion with the Department of Public Service and Administration for special
dispensation for critical jobs. It is currently competing with private printers for certain skills.
For it to retain the critical skills, GPW must be able to pay market related salaries.
Vetting will also be introduced for key personnel in the supply chain management. GPW is
planning to implement the E-Gazette. Currently it prints several hundred thousand pages for
the gazettes every year and sells them at only R5 per gazette irrespective of size.
Herewith are the key projects to be undertaken by the GPW:
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
Installation and commissioning of new security printing division and passport factory.

Piloting and rollout of new ID Smartcard technology.

Implementation of the E-Gazette.

Create capacity to print passport visa pages in-house.

Development of the new facility at Visage Street.
The entity is experiencing the benefits of operating as government component in that its
increased independence resulted in a 49% increase in gross profits from 2010 to 2011. A
supply chain management unit was created when the entity became a government component.
This unit will look into initiatives aimed at revenue growth, cash management and increasing
productivity levels. Because of this, the entity will no longer receive transfers from the
Department of Home Affairs from 2014/15. Revenue is expected to increase to R1.1 billion
in 2014/15 due to the increase of production capacity. For 2012/13, GPW envisages to
generate R814.7 million and to receive R135.2 million from the Department of Home Affairs.
GPW generates revenue from printing of examination papers, identity document and
passports and non-security documents such as statistical reports, annual reports, brochures,
government gazette and standard office stationery.
7.
The Committee raised the following issues:
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GPW is a state security printer; therefore, it is important that all personnel should be
vetted.

It should consider printing maps and stamps.

There was a concern that the line item on employee compensation was increasing and
that of the administration was almost double while for production was decreasing. In
response the GPW indicated that the increased spending was related to capacitating
and retaining staff. Production rates are dependent on Government demand and thus
fluctuate each year.

The relationship between DHA and GPW should be stronger so that identity
documents, births certificate and passports are secured.

There should be gender balance in the organization. The delegation from GPW is
always comprised of men only.

Government gazettes in electronic versions would be far easier to deliver in all 11
official languages.

8.3.
GPW needs to have a high concentration of highly skilled personnel.
Electoral Commission (EC)
The Deputy Chairperson of the Electoral Commission led the delegation from the EC. The
EC is a chapter 9 Constitutional institution reporting directly to Parliament. He reported that
the vision of the organization would change in the near future.
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During the presentation on the Strategic Plan for 2011/12 – 2015/16 and the Annual
Performance Plan for 2012/13, the Chief Electoral Officer reported on the following strategic
goals:

Promote principles of peaceful, free and fair elections.

Improve organizational efficiency and effectiveness.

Manage free and fair elections.

Strengthen electoral democracy through education for public participation.

Support core business of the Electoral Commission
In order to achieve these strategic goals, the EC has 21 strategic objectives related to its
budget. Expenditure increased from R927.3 million in 2008/9 to R1.4 billion in 2011/12. The
growth in expenditure was attributed for national and provincial elections in 2009 and the two
registrations drives for the local government elections in 2011. The EC has requested a
budget of R770 million for the 2012/13 financial year and the amount will increase to R1.4
billion in the 2013/14 financial year because there will be two voter registrations in
preparations of 2014 elections. The budget will increase slightly to R1.56 billion in 2014/15
financial year.
In non election years, the primary focus of the EC is around the voter education and
promotion of democracy. It was reported that there had been increase in by-election. The by-
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elections were as a result of the death, expulsion and resignation of local councilors. Unlike
in the past, by-election as result of deaths had stabilized.
The EC also does international work where it is funded by the Department of International
Relation and Cooperation (DIRCO). The EC has signed a Memorandum of Understanding
with DIRCO. In 2012 it is hosting the Electoral Commission of Angola. The Deputy
Chairperson also reported that he visited Egypt where he met with the authorities of Egypt,
Libya and Tunisia. Libya has indicated that it wanted to send a formal request to South Africa
to request it to assist Libya with the establishment of its Electoral Commission. The EC has
signed an MOU with India which is part of BRICS and another one had been signed with
Mexico outside of BRICS. The EC has assisted many countries in the African continent with
regard to elections and it also learnt a lot on best and worst practices in this regard.
The EC reported that research is being completed on the electronic voting. Once this research
has been completed, it will be presented to the Committee. The EC also reported that it was
working on legislative amendments which will be submitted to the Minister of Home Affairs
around August 2012.
9. The Committee raised the following issues:

The Committee was impressed with the work of the EC and that it is completely
professional. It was however concerned with the behaviour of some electoral staff that
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may tarnish the name of the EC during elections such as some of the presiding
officers being aligned to certain political parties. The EC should conduct Continuous
training of presiding officers. The EC explained that it considering modular training
instead of once-off training towards elections.

The EC should establish a strong connection with BRICS and assisting in the African
continent could be a strategic goal.

The Committee wanted the EC to have more of an impact on the ground instead of
merely reporting for meetings, workshops and other events. There were still many
people who did not know the importance of voting and voter education should be an
ongoing process.

The Committee wanted to know if there were any pending legal issues relating to the
elections or by-elections. A few such cases were mentioned such as the running of
independent candidates.

On the research that is being conducted on electronic voting, the committee indicated
the need to consider that many schools in the rural areas, used as voting stations, do
not have electricity.

A concern was expressed that during voting days, it was chaotic outside some voting
stations with political parties having tables and tents. EC replied that it enforced the
law which required parties to position themselves at a certain distance away from the
voting station.

The Committee wanted to know if the EC will be in a position to handle harmonized
local, provincial and national elections in 2014.
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10.
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Conclusion
The Committee thanked the Director-General of Home Affairs and the staff for their
presentations and indicated that the department should continue getting an unqualified audit
report from the Auditor-General whilst not forgetting to continue providing service delivery
to the people.
Both the Film and Publication Board and Government Printing Works had extended an
invitation to the Committee to visit their offices/ factory in Pretoria to see the implementation
of their respective budgets.
The Acting Chairperson of the Committee indicated that the Committee was very proud of
the work of the EC and that it must keep it that way. He also requested that the EC should
provide the Committee with an international calendar for elections where the Committee
could also participate in observer missions.
The Committee recommends that the report be adopted.
Report to be considered.
CREDA INSERT T120424e-insert4 PAGES 991 - 1004
EPE 24 APRIL 2012
PAGE: 430 of 429