19 FEBRUARY 2013 PAGE: 1 of 365 TUESDAY, 19 FEBRUARY 2013 ____ PROCEEDINGS OF THE NATIONAL ASSEMBLY ____ The House met at 14:05. The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation. ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000. DEBATE ON PRESIDENT’S STATE OF THE NATION ADDRESS The SPEAKER: Hon members, I have received a copy of the President’s address delivered at the Joint Sitting on 14 February 2013. The speech has been printed in the Minutes of the Joint Sitting. The CHIEF WHIP OF THE MAJORITY PARTY: Honourable President, hon Deputy President, members of this august House, we meet today, heavy at heart at the horrific and brutal loss of life of innocent babies, children and women through domestic and sexual violence. The scourge of this disease has taken hold in our communities and as much as we develop interventions, programmes and campaigns to stem this tide, 19 FEBRUARY 2013 PAGE: 2 of 365 we can all agree that the roots of this violence and the notion that life is cheap can be traced all the way back to our dark and unjust past. The evolution of our society has many lessons to teach. Institutional racism and discrimination involved the rationing of resources and power to ensure and achieve social exclusion through formally legitimised state policies. The dispossession of black people from their land took place over many years in our early history and largely through conquest. But the systematic land dispossession by the state came into effect after 1913, when 13% of the land area of South Africa were given as reserves for the Africans and excluded them from the rest of the country, which was made available to the white minority population. The 1913 Land Act was instituted to ensure that more land was available to white farmers, to impoverish and enslave black people through dispossession and make them dependent on their white employers for survival. This led not only to the creation of a pool of cheap labour for the white farms and the mines, but also enforced racial segregation. 19 FEBRUARY 2013 PAGE: 3 of 365 In order to deny the black people the right to till their own land and access natural resources, there was the creation of cheap, black labour in the form of farm workers, labourers, mine and domestic workers. The consequence of this political dispossession and economic exploitation of black people was, in a way, depriving them of their humanity, ubuntu or botho. Such a deliberate act of dehumanisation by one group against another was the most inhuman and the worst of its kind to be instituted against human beings. The teachings of white superiority and black inferiority doctrines and the creation of race as a mechanism for violence led to the nurturing of violent and crime-hardened individuals who indulged in violence as an extreme sport or at the slightest provocation. Sociologists believe that this led to the development of retributive reactive attitudes among all population groups. And thus, the results of the dehumanisation process endangered everyone in South Africa. I refer to this dehumanisation process because it pervaded and still pervades every facet of our lives. The denial of access to markets, infrastructure and education to those categorised as black was apartheid’s worst contribution, but especially so, the denial of quality education. 19 FEBRUARY 2013 PAGE: 4 of 365 Under your leadership, honourable President, we have a government that has steadfastly resolved to address and redress the basic inequalities inherited from a past ridden with racially discriminatory laws and practices, decades of entrenched inequalities and separate development. The five priorities you identified are economic growth and job creation; fighting crime and corruption; education; health; and rural development and land reform. They are regarded by the ANC as key to transforming our socioeconomic inequities. To restructure our society and focus on the future, you introduced the National Development Plan, a broad strategic framework that sets out a coherent and holistic approach to uniting South Africa around a common programme. As articulated in the plan, and I quote: To build a socially cohesive society, South Africa needs to reduce poverty and inequality by broadening opportunity and employment through economic inclusion, education and skills, and specific redress measures; promote mutual respect and inclusiveness by acting on the constitutional imperative that South Africa belongs to all who live in it, and that all are equal before the law; and deepen appreciation of citizens’ responsibilities and obligations towards one another. 19 FEBRUARY 2013 PAGE: 5 of 365 In so doing, the National Development Plan will draw on the energies of all our people, grow an inclusive economy, build capabilities, enhance the capacity of the state, and promote leadership and partnerships throughout society. The dehumanisation of individuals through sub-standard education is a legacy issue. Living under institutionalised oppression, in the case of many of us, our humanity was taken away and we were dehumanised. Honourable President, you prioritised education, believing that it is an instrument of liberation and is essential for our development as a nation. Through education and social change, we become rehumanised and can reclaim our dignity, our voices, and our humanity. Honourable President, your nation-building and development strategy finds support in renowned political thinkers. It was Ernesto Che Guevara who stated that, and I quote: Education is the property of no one. It belongs to the people as a whole. And if education is not given to the people, they will have to take it. Our icon, Nelson Mandela, equally believed that education was liberation. His famous words were, and I quote: “Education is the 19 FEBRUARY 2013 PAGE: 6 of 365 most powerful weapon which you can use to change the world.” This is a mantra worth repeating. Under your leadership, honourable President, we can be proud of how far we have come and how much we have achieved. The ANC supports your resolve to use education to empower society as a whole, to change our mindsets and, most importantly, we support your resolve to make education the basis of every development – social, political, economic and industrial, to enhance social justice and to eliminate ignorance and all forms of religious, cultural and political intolerance. The ANC is fully conscious of obstacles to delivery that your administration faces, but we are satisfied with your ability to overcome these. We have not escaped unscathed by the global recession. Unemployment, poverty and inequality threaten to derail our national democratic revolution. Your administration has identified targeted outputs of job creation; youth development and growing the economy; and developed clear proposals on the potential of all sectors of the economy to generate substantial jobs, empower the youth and effectively monitor all the targets that have been set. Your infrastructure roll-out would also provide means to create jobs and build the economy. 19 FEBRUARY 2013 PAGE: 7 of 365 In focusing on the future, re-emphasising that this is a government that looks forward, the country’s National Development Plan, that aims to eliminate poverty and reduce inequality by 2030, must be embraced by all. In support of your nation-building and socioeconomic development plan, the ANC will ensure that we stop the oversight stampede by co-ordinating and integrating oversight programmes of all three spheres of government as well as between the NA and the NCOP. Honourable President, we shall ensure that your programme of action is taken to and co-owned by our people. As public representatives we can unashamedly tell South Africa, Africa and the world that you have a vision, a plan, and the willingness and ability to deliver on your plan. As public representatives, the ball is in our court to support you and your administration. We have full confidence in you. [Applause.] In support of your administration, Parliament and its representatives will move beyond the norm of merely accepting reports of the executive, briefings by various departments and rubber-stamping the budgets of departments and entities. We shall move beyond merely accepting the legislative proposals by the executive and initiate critical legislation. 19 FEBRUARY 2013 PAGE: 8 of 365 Our constituency offices offer a closer view of the trials and tribulations affecting our people. Engaging with the youth, listening to the aged, supporting the disabled and assisting the unemployed men and women in our communities allow us to open up lines of communication, and offer us an opportunity to know where the people are, what they aspire to, and to respond to them faster and with consistency. When we visit poorly performing clinics, surprise a hospital official who is asleep instead of offering a key service; when we visit a school and find the teacher assaulting a learner or teachers who are absent for days instead of teaching; when we catch a corrupt government official accepting a bribe for services they should be rendering as part of their job; when we see young girls being sexually harassed by men on the street, we will not turn away and fold our arms. We will rise to these challenges and know that when we do so, we are building South Africa brick by brick. More recently, Parliament has been media fodder for the manner in which we seem to have abdicated our responsibilities to the courts. The opportunistic use of the courts by the opposition to score political goals has tarnished the image of this great institution. [Applause.] To effectively represent citizens, Members of Parliament must carry out their legislative and oversight roles in a way that 19 FEBRUARY 2013 PAGE: 9 of 365 is demonstrably in the public interest and in a way that reflects the ethical standards of the community and their standing as leaders in such communities. The ANC has a proud tradition of consultation, engagement, contestation and consensus-seeking. The Freedom Charter stands as a testimony to those methods. We utilised those same significant methods in our constitution-making process, our Truth and Reconciliation Commission and the recent National Social Cohesion and Nation-building Summit held at Kliptown in July last year. We believe in these methods, because we believe fundamentally in the principles of the Freedom Charter and our Constitution and that this country belongs to all who live in it. Therefore, we would like to urge opposition parties to utilise these methods of engagement rather than the expediency of the courts. Honourable President, our people are responding to and supporting your nation-building and social cohesion project. The ANC received a delegation of eight members of the Afrikanerbond, led by Mr Pieter Vorster, who told us that they are fully behind your vision and development plan and wish to be partners with both Parliament and government in implementing it. [Applause.] The National Interfaith 19 FEBRUARY 2013 PAGE: 10 of 365 Council of South Africa, Nicsa, has signed a memorandum of understanding with government, through Co-operative Governance and Traditional Affairs, Cogta, to support government’s nation-building initiatives and fight against the triple challenges of poverty, unemployment and inequality. We wish to thank Minister Richard Baloyi for spearheading this partnership. To ensure that the achievements of government and Nicsa reach the people, Nicsa and the South African Broadcasting Corporation have concluded a memorandum of understanding. We wish to thank Prof Ben Ngubane, Chairman of the SABC board, and Mr Hlaudi Motsoeneng, Chief Operating Officer, for putting the public broadcaster at the service of the people. Parliament and all the legislatures will assume the responsibility for the promotion of democratic values and consolidate the peoples’ power for social and economic development. This is not a partypolitical responsibility; it belongs to all political formations and civil society organisations. Honourable President, this annual parliamentary debate is called upon to afford diverse constituencies that are represented in this august institution by various political formations a platform to contribute meaningfully to the important reflections you made on the 19 FEBRUARY 2013 PAGE: 11 of 365 state of our Republic on Thursday. This exercise is very critical as it is at the heart of our representative and participatory democracy, which makes this Parliament an institution of the people, not that of the few leaders who represent their jackets. However, honourable President, the large section of the views that are going to be expressed in this important national debate will not be a reflection of the aspirations of the diverse constituencies that voted some of the political parties on my left into this institution. Instead, what we will hear during this debate today and tomorrow will mostly be the views of the DA. Except for the few opposition political parties, who should be commended for staying true to their principles and visions, the rest have surrendered their independence to their new political master in the form of the DA. [Applause.] Following the state of the nation address on Thursday, these parties were summoned by the Leader of the Opposition to a hastily convened meeting, to what was euphemistically called “co-ordinated strategy for Sona debate”, while, in fact, what they were called for was to obtain the marching orders and later to escort hon Mazibuko to a media briefing. [Laughter.] [Applause.] We are aware of the increasing difficulties confronting these parties, particularly the principal challenge of their dwindling appeal to the electorate. However, selling their soul and 19 FEBRUARY 2013 PAGE: 12 of 365 surrendering their autonomy to the DA means they can no longer claim to represent the views and aspirations of the constituencies they represent in this institution. They can no longer claim to enjoy freedom of thought and freedom of opinion, as their political views on parliamentary matters must now be sanctioned first by the DA. [Laughter.] [Applause.] They can no longer claim to advance their respective political policies or resolutions, as their mandate now is to advocate the policy decisions of the DA’s federal council. It is an antithesis of a multiparty democracy system, which provides for a diverse and multiplicity of political views and interests, to have the throng of political leaders from diverse ideological persuasions dancing to the tune of the neoliberal and conservative agenda of their political master. Surely the constituencies of these parties did not elect these leaders to Parliament to serve the DA, to seek its permission before making statements on matters of national interest, and to advance the political fortunes of the DA. I am raising this curious development precisely because it signifies the dearth of the democratic traditions of multiparty engagements, which this Parliament represents. [Applause.] This also means that, with the exception of the few parties that have elected to guard their political independence, what we will be hearing in this debate are the views of the DA, dressed in different party colours. [Laughter.] [Applause.] These views would be dressed in different 19 FEBRUARY 2013 PAGE: 13 of 365 suits and faces on this podium, but we know that they were cooked in a blue pot. [Laughter.] Therefore, honourable President, when you hear constant similarity of views and thoughts amongst these political parties during this debate, it is not because there is a convergence of thought on your reflections on the state of our nation, it is because they will also be singing from the same hymn sheet of their political master, hon Lindiwe Mazibuko. [Laughter.] [Applause.] Be that as it may, honourable President, I envisage your job of responding to these views being much easier than before, given that there will now be fewer parties to respond to. Last but not least, we wish to salute the founders of the Organisation of African Unity and join the people and nations of Africa in commemorating its 50th anniversary and acknowledge the great contribution it made to our liberation. We shall also not rest until the people of Palestine and Saudi Arabia achieve their right to self-determination and independence. Thank you for the opportunity to address this august House. [Applause.] The LEADER OF THE OPPOSITION: Hon Speaker, hon President, hon members, the South African people have lost confidence in President 19 FEBRUARY 2013 PAGE: 14 of 365 Jacob Zuma ... [Interjections.] ... and his state of the nation address showed us why. With the pressure of re-election lifted, this was an opportunity for the honourable President to show leadership after he received a new mandate from his party at Mangaung. But this address not only failed to inspire South Africa, it was devoid of new ideas and vision. The nation had waited expectantly for the President to speak directly about how his government would implement the National Development Plan, NDP. The anger at his failure to do so is felt across South Africa. We all support the NDP, and the address should have been a turning point for a country which feels a lack of confidence in the national government. But instead this was the offering of a Presidency founded on compromise, one built entirely upon mediating the bitter factions that threaten to tear the governing alliance apart. The President should have plainly set out how the National Development Plan would be put into action and its proposals implemented to fix the economy, education, crime and corruption. Instead, he offered a reheated version of last year’s broken promises based on spin and lip service, stitched together with announcements about task teams, processes and accords. Ours is a president who says one thing to appease South Africa, and then does another to please himself and his inner circle. 19 FEBRUARY 2013 PAGE: 15 of 365 Most importantly, hon Speaker, the President’s speech failed to provide solutions to the unemployment crisis. Hon members, the President says he is committed to job creation, but let’s look at what he actually does about job creation. He promised five million new jobs by 2020, but unemployment rose again during his third year in office. The economy has lost half a million jobs since he assumed the Presidency. Has the President ever reflected on what it must feel like to be a young person without a job in South Africa today? Does he feel for the five million young South Africans under the age of 34 who are unable to find work? The speech he gave on Thursday did not show this. Does the President empathise with a young unemployed woman who opens her eyes every morning, and sees another wretched and empty day stretching out before her? She knows she needs a job. She needs the means for her daily survival but she also needs to feel the pride and dignity that come from work. The few job opportunities she does find require applicants who have work experience but this woman has no experience. She needs that first break in order to gain experience. How this appalling paradox must frustrate and anger her! How powerless this young woman must feel to change the direction of her life! Does the honourable 19 FEBRUARY 2013 PAGE: 16 of 365 President know the country that this young woman lives in? I believe he does not. How can he, when his response to her circumstances was to announce that the National Rural Youth Service Corps had enrolled 12 000 young people in various training programmes? How can he, when his response to this crisis was a so-called plan to create nine rural youth hubs with no definition as to what this will achieve in terms of job creation? How can the honourable President empathise with the dire circumstances of jobless young South Africans when all he could offer them were vague utterances about learnerships and apprenticeships in state-owned enterprises and the Expanded Public Works Programme? He knows that none of these target young people. Hon speaker, the worst betrayal of all was the President’s abandonment of the Youth Wage Subsidy policy. This would benefit hundreds of thousands of young people by absorbing them into the formal economy and providing them with real work opportunities. By contrast, the so-called youth accord seems nothing more than a conjurer’s trick, which this government is using to divert attention from the fact that it has allowed Cosatu to water down the Youth Wage Subsidy policy. South Africa has one of the highest rates of youth unemployment in the world, and the ideas in this youth accord are a weak response to a huge and growing problem. 19 FEBRUARY 2013 PAGE: 17 of 365 Hon Speaker, the President also claimed to have brought policy certainty to the mining industry. But then he proceeded to raise uncertainty with the threat to increase mining taxes. Following the Marikana tragedy, a wave of unprotected strike action in the sector, and a series of irresponsible statements made by members of his government and the ANC, confidence in the industry is at a low ebb. The President seems to believe that investors will be forced to come here because we have such vast mineral wealth. But if conditions are not right they will simply find alternative investment destinations. If he continues down this path, the President will be remembered for standing by as our mining industry was decimated in a country which enjoys the greatest mineral endowment in the world. Hon Speaker, the President’s failure to provide economic leadership is mirrored by his failure to fix education. The President says he is committed to education, but look at what he actually does. Last year, he claimed that, and I quote: “Intensive focus is paying off”. But our numeracy and literacy rates are second from last in 144 internationally ranked countries. How are our children supposed to learn to read and write without textbooks? It is impossible to understand how the President did not express outrage that children in the Eastern Cape and Limpopo did not receive textbooks on time. Why did he not undertake that this would never happen again on his watch? 19 FEBRUARY 2013 PAGE: 18 of 365 Hon Speaker, this is a President who is out of touch. The National Development Plan provides clear solutions to fix the crisis in education, but he ignores them. On the one hand, the President rightly said that we need to review teachers’ remuneration, but on the other, he completely ignored the proposal of the NDP to link better remuneration with improved performance. Above all, the honourable President failed to commit to making education an essential service, as is the case with the health professions and the police service. Completely ignoring the definition of an essential service in the Labour Relations Act, he claimed that education is an essential service because it is something we all care very deeply about! Then, as a repayment for the re-election debt he owes Cosatu, the President endorsed teachers’ unconditional right to strike. We know that there can be no meaningful expression of freedom unless a child can reach her full potential, and education is what defines her life chances. Until the President pursues this goal with the same energy and enthusiasm as that with which he pursues his own re-election, his words will be as meaningless in practice as they are on paper. Hon Speaker, while our sense of national pride is strong, our society is broken. I commend the honourable President for his statement condemning rape and sexual assault following the horrific murder of Anene Booysen two weeks ago. This was a wake-up call in a 19 FEBRUARY 2013 PAGE: 19 of 365 society where crimes like these have become normalised. How many women do we know who have been victims of sexual assault, violence and abuse? How many of our mothers, daughters and sisters, our friends, work colleagues and leaders? Hon members, in our society, women are told not to wear mini-skirts in case they provoke men to rape them. Battered wives are asked what they did to anger their husbands. And political leaders who refer to their female counterparts as “little girls”, the “madam”, “wild whore” and “my dear” are tolerated. In this context, is it a surprise that one in three women in our country can expect to be sexually assaulted in her lifetime? It is in this context that every eight hours a South African woman is murdered by her intimate partner. And it is in this context that Anene Booysen, a 17-year-old young woman from Bredasdorp, was subjected to the horror of gang rape, mutilation and murder at the hands of a group of men not much older than she was. Her attackers slit open her stomach. They reached into her body, pulled out her intestines and left them lying in the dust next to her. They broke all of her fingers and both of her legs. They slit her throat and left her for dead. Anene Booysen’s last words before she succumbed to her unimaginable injuries were, and I quote: “I am tired and I am sore”. 19 FEBRUARY 2013 PAGE: 20 of 365 Hon Speaker, by the time I have finished speaking, over 300 women will have been raped in South Africa today. Our country is tired, and our country is sore. If we truly cherish Anene’s memory, then we cannot be powerless bystanders. We encourage the honourable President to participate in a national dialogue to end this evil with the same clarity of conviction that marked the fight against apartheid. Will the honourable President provide a detailed government plan to deal with sexual offences in his reply to this debate? I hope he will not simply convene another task team, because the President’s fall-back position is always to establish task teams. The clearest example of this is corruption. The President says he is committed to fighting corruption, but let’s look at what he actually does about corruption. We had expected the President to appoint a head of the Special Investigating Unit, a post that has been vacant for over a year, but he did not. Perhaps this is because he knows that the SIU will look into his actions in the same way that it must look into those of any public figure regardless of their office. Most presidents’ characters are revealed over time. But our President was compromised from the beginning because there were 19 FEBRUARY 2013 PAGE: 21 of 365 simply too many unanswered questions about his actions before he assumed office. The Supreme Court of Appeal ordered the National Prosecuting Authority and President Zuma’s lawyers to hand over the so-called spy tapes to the DA almost one year ago. These tapes, we believe, form part of the “reduced record of decision” documents, memoranda and transcripts that led to the NPA’s decision to drop more than 700 charges of fraud and money laundering against him. The honourable President has been unable to exercise leadership because these documents were the founding documents of his presidency. Hon Speaker, the Nkandlagate scandal towers above all in the public mind. The President’s private compound is being paid for by the hard-pressed public to the tune of over R200 million. Yet, he failed to mention Nkandla even once in his state of the nation address. To the President’s lasting shame, his Ministers deployed one of apartheid’s most sinister laws, the National Key Points Act, to cover up how the upgrade of his private home is being paid for. The government then self-appointed yet another task team, only to declare that its findings would not be made public. Today, I ask the honourable President: How could he have allowed the upgrade to proceed, knowing how overstretched the country’s resources are? Will he commit in his reply to putting this wrong 19 FEBRUARY 2013 PAGE: 22 of 365 right? Will he support the extension of this probe into a parliamentary investigation? And will he commit to making the findings of the Department of Public Works investigation public? If he fails to meet these basic requirements of accountability, Nkandla will forever stand as a symbol of corruption in our country. Hon Speaker, we are, however, not without hope. There will be a day, a day when every person will be able to turn the despair of others into hope. We all know that the potential for greatness lies within South Africa. Consider just one endeavour in 2013. A radio telescope, the Square Kilometre Array, will soon rise in the Karoo. This instrument will search the furthest reaches of the heavens. We will find answers to some of the deepest questions about our universe. This leads us to the biggest South African paradox of all. South Africa has discovered the means to uncover how the first stars and galaxies began. Yet, our poorest schoolchildren learn in mud schools and under trees. We see clearly that South Africa has reached a fork in the road. In less than 18 months we shall all pass our verdict on this President and this government. South Africa cannot afford six more wasted years. 19 FEBRUARY 2013 PAGE: 23 of 365 Last May, I urged President Zuma not to seek re-election in December and to put the needs of the country before his own interests. He did not, and South Africa’s crisis of leadership has deepened. In November, I tabled a motion of no confidence in the President with the mandate of eight opposition parties in this House. The governing party ran scared because it was frightened that its own members would show the honourable President the exit door. The ANC’s party managers twisted the democratic process with stonewalling tactics. If the honourable President knew that he had Parliament’s confidence to lead, he would have asked that the ANC holds the debate immediately. But he did not. As soon as the Constitutional Court hands down its ruling, I intend to retable this motion. This time the ANC will not be able to abuse its majority to delay the debate. Hon Speaker, there will be a day, a day when this President and government will be removed from office at the ballot box. [Applause.] We have already seen the future and it is indeed blue. An ANC administration in the North West province was recently removed through a motion of no confidence by the DA in Tlokwe Municipality. In a few short weeks, the DA has laid the foundation of a capable 19 FEBRUARY 2013 PAGE: 24 of 365 administration. I was not surprised when the President himself panicked and rushed to Tlokwe last week to visit the municipality. He knows that when the DA is given a mandate to govern, it spells the end of the ANC’s electoral dominance, because where the DA governs, we deliver to all. This is why, despite all of the grave problems that South Africa faces, the DA has never been so optimistic and confident that our nation will triumph. There will be a day, a day when the DA will serve the entire nation, as we have been given the privilege to serve in the Western Cape. Our message is clear: South Africa is a great country being let down by a weak administration. Our President is the wrong man for these times. The President and his party may have had young people’s voices silenced on FNB’s website, but they cannot stop these young voices from being heard in the most powerful place of all, the ballot box. There will be a day, a day when the voices of young South Africans everywhere will finally be heard, a day when our country’s confidence in its own greatness will be restored, when we have a president who puts South Africa first, and a government that cares for young people who are without hope and for the elderly who walk in fear. 19 FEBRUARY 2013 PAGE: 25 of 365 There will be a day, a day when South Africa soars under the leadership of a new president and a government led by the DA. I thank you. [Applause.] Mr M G P LEKOTA: Hon Speaker, honourable President, Deputy President, hon members of the House, allow me to dedicate my contribution to this debate to one of the youngest souls in South Africa, a person who, alongside her peers, devoted the majority of her life to solidarity with the workers, peasants and the oppressed of our motherland, and continues to do so even today. Mrs Epainette Mamofokeng Mbeki, who celebrated her ninety-seventh birthday on Saturday, is arguably the great iconic figure of her generation! She is also one of the oldest members of the Congress of the People! [Interjections.] I ask fellow members of the House to join us in wishing her well in the years that lie ahead! I also wish to place on record our sincere and very deep sadness at the loss of Comrade Phyllis Naidoo, who served the cause of freedom and justice at home and around the world. I plead with God that her soul may rest in peace! Today I would like to invite members of the House and the people of our country to join me on a short journey. As early as 2010, the Minister of Finance drew attention to the expenditure on compensation in the government’s wage bill which, he pointed out, in 2010 claimed 40% of taxpayers’ revenue. In 2011 he warned that 19 FEBRUARY 2013 PAGE: 26 of 365 personnel spending and debt service costs had grown rapidly. In the 2012-13 estimates he pointed out that the wage bill budgeted for was 35%, which in itself was a staggering amount looked at against the backdrop of the national revenue of R967,5 billion. Consequently, the Minister pointed out that the wage agreement of 2012, which added R37,5 billion over the medium term, would also absorb a large share of additional allocations. This means that the money that had already been budgeted for, services to our people, would now be absorbed by additional salaries to those who walk up and down the passages of government offices, leaving the people with nothing at all. The Minister then went further and promised that, and I quote: Government will take a more deliberate approach to managing overall employment and wage trends across the public sector. Government will curtail unwarranted growth in personnel numbers. When we came to the state of the nation address here, I expected to hear that government had a plan to act on this urgent and devastating setback. I expected to hear that government, given the advice of the Minister of Finance, would take steps to review the Public Service, identify those who are redundant, eliminate such positions in staffing and save the nation huge costs. The President said nothing about it. 19 FEBRUARY 2013 PAGE: 27 of 365 I expected to hear that those who had been employed corruptly, were not qualified and were appointed only because they were being rewarded for being members of the ruling party or relatives and so on, would be identified and eliminated from the Public Service so that the nation can possess a sleek and trim, effective and efficient Public Service. The savings from such an exercise would then be diverted to providing the necessary services to masses of our people in squatter camps, in the rural countryside and so on. The President said nothing about it. We believe that anyone who is committed to fighting corruption must start by eliminating the corrupt act of paying, month after month, individuals who are not qualified, but were appointed without any regard for their qualifications and who only consume, but are not delivering anything on the agenda of the nation. I have listened to all of these speeches here, good speeches, about what needs to be done. The secret is not in what colourful promises you make. It is in what practical, hard steps you take to convert them into a hard reality that people can benefit from. It is not helpful to make all these colourful promises. It is quite alarming that the Deputy Auditor-General recently said that government - both national and provincial - had spent more than R102 billion on consultants between the 2008-09 and 2010-11 financial years. 19 FEBRUARY 2013 PAGE: 28 of 365 A staggering R102 billion was spent on consultants because relatives, friends and concubines who are employed have no qualifications to do their work. [Applause.] It is not my Deputy Auditor-General who said this, it is the government’s appointed Deputy Auditor-General who says this is what has been done by your government. So, the Auditor-General also revealed ... The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: Mr Speaker, I have a question. [Interjections.] The SPEAKER: Hon Lekota, will you take a question? Mr M G P LEKOTA: Speaker, if you will give me additional time, because this is a trick to disrupt my speech. The SPEAKER: Yes or no, sir? Mr M G P LEKOTA: I won’t be disrupted. The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION: It isn’t. As the Minister responsible for public service, I wonder who the concubines are that are employed. The SPEAKER: Continue, sir. 19 FEBRUARY 2013 PAGE: 29 of 365 Mr M G P LEKOTA: Speaker, I hope you will replace the minutes I have just lost. [Laughter.] The Auditor-General also revealed monumental losses as a result of fruitless and futile expenditure. In the 200910 to 2010-11 financial years an amount of R45 billion was wasted. The amounts of R20 billion in 2009-10 and R25 billion in 2010-11 were squandered by this government. I sit here and think to myself, had this amount been used for bursaries, some 125 university students could have been funded for over three years. If you gave them half a bursary, 150 000 university students could have been supported and over that time South Africa could have produced civil engineers, mechanical engineers, doctors and so on. But instead, what happened to that money? It ended up in the pockets of friends, family and the favoured ones. [Interjections.] All these corrupt people who are there do not know anything about the work that they are supposed to be doing, let alone to look after the resources of our nation. Billions of rands! This is money! It doesn’t fall from the sky. That is what Shabir Shaik asked. Does he think that this money falls from the trees? [Laughter.] So this money is being lost in this way. I am talking about billions of rands. In the meantime, there are people who go to bed without food; children are born in shacks in Khayelitsha, in the middle of water in winter. [Interjections.] In the meantime, there are old and young in this position, because the money has been squandered by you. [Interjections.] 19 FEBRUARY 2013 PAGE: 30 of 365 The SPEAKER: Order, hon members! Order! Mr M G P LEKOTA: So we have to say, sadly, that hundreds of thousands of deserving students were left without the support they could have got. Likewise, the R200 million that was spent at Inkandla could have been used to give bursaries to 10 000 to 20 000 matriculants. Today those children are walking the countryside of Inkandla, Mthunzini and other areas, without education or any support because one house had to be built for one individual or one family. I still have a question in my mind that I have not been able to answer: Why was former President Nelson Mandela not also given some R200 million? [Applause.][Interjections.] Why was former President Thabo Mbeki not also given R200 million? If Public Works did that, we want an account. Tell us. Let Public Works tell us that it spent similar amounts on former Presidents Nelson Mandela and Thabo Mbeki. The time has come for the ruling party to account for its actions. There cannot be this lack of equality before the law. This situation, where certain individuals lord it over the entire nation, cannot be accepted. Otherwise the years we spent in exile, in jail and all of that are worth nothing. [Interjections.] [Applause.] I say again that I will not be silenced. I will not be silenced whilst those who are now privileged forget that they come from the townships of Soweto, Umlazi and Mdantsane; that they come from 19 FEBRUARY 2013 PAGE: 31 of 365 nowhere. Now that they have climbed to seats of power, they forget the people they left behind; they forget the homes from which they came. They forget their own people. Indeed, they forget that once we sat together in prison, eating mealies, promising ourselves that when the day came, we would be loyal to the wishes of our people; we would prioritise the people and make sure that there is a better life for all, as former President Mandela first told us on Robben Island and then told us from this podium — better life for all. Where is that better life for all? Look at our people in Olievenhoutbosch, Diepsloot and Mdantsane; where is the better life for all? Aren’t we ashamed of what we have done? What has become of us? In any event, most significantly, now we are being told that we are going to be taxed some more. But we have not been told is what government is doing to recover the R45 billion lost. They are not telling us about that. They tell us about how much tax we must pay. What are you doing to recover the R45 billion that disappeared? What are you doing now, today, to recover our R200 million that went to Inkandla? What are you doing now to ensure that each and every one of these people who are being arrested for corruption pay for that? Instead, they are elected to the leadership of the ruling party. They go into the national executive committee and all of that. The NEC is full of people who have stolen this and that, who are involved in the Travelgate scandal and so on. [Applause.] But they 19 FEBRUARY 2013 PAGE: 32 of 365 are all in the national executive. [Applause.] Instead of punishing people who commit crime, the ruling party rewards them with higher positions, not only in the party, but also in the government. We must tell these truths. If we do not tell these truths, we will be betraying the young people of our country. Generations to come will condemn us. So, I refuse to be silent. [Interjections.] The Minister will come and set up a commission. Well, government said he would have to set up a commission to revise our tax and so on. We will have to pay more, but we are not told what is being done to recover the money that has been lost under the watch of this government. The President has no answers to those issues, because he said nothing about them. He went dead quiet about it and spoke about other things that are irrelevant when it comes to the question of the survival of the people. On the issue of the Right2Know campaign, other things are happening, and I must say these things, come quickly, before the dark days come. The Right2Know campaign has drawn our attention to the fact that the ruling party is pushing for even more secrecy than before. The Right2Know campaign reported on a 2012 survey by the SA History Archive, which facilitates and tracks the Promotion of Access to Information Act. Of the 159 requests made, the archive noted that 102 were refused outright or received no reply. The more we ask questions, the more silence we get. That is the government’s track record on accountability and transparency. 19 FEBRUARY 2013 PAGE: 33 of 365 The SPEAKER: Hon member, your time has expired. [Interjections.] Mr M G P LEKOTA: Speaker, aren’t you going to add a few more minutes? [Laughter.] The SPEAKER: Order, hon member! Your time has expired. [Applause.] [Laughter.] You did not lose any time; the clock was paused. [Applause.] Prince M G BUTHELEZI: Mr Speaker, Your Excellency the President, Msholozi, Your Excellency the Deputy President, Mkhuluwa, hon Ministers, Deputy Ministers, hon members, I rise to speak with a sense of utter distress. As hard as I tried to hear something in the President’s state of the nation address that would restore my confidence in the current leadership of our nation, I found nothing on which to pin my hopes. What I heard in the state of the nation address were aspirations and dreams. What I did not hear are timeframes, strategies or anything for which we could hold the President’s administration accountable in this last year of the fourth democratic Parliament. Indeed, Your Excellency, I doubt whether anything you spoke of last Thursday will come to fruition in the lifetime of your presidency or perhaps even in your lifetime – let alone in the lifetime of my brother Mr Mlangeni and me. I say this with respect, but with utter distress. 19 FEBRUARY 2013 PAGE: 34 of 365 Ziphathe kahle ngane, ziphathe kahle; musa ukwedelela. [Uhleko.] [Behave yourself, child, you must behave; don’t be disrespectful. [Laughter.]] I looked for something last Thursday on which to pin my hopes, because I remember how hope actually sustained our liberation struggle. Even in the darkest nights, we retained hope of eventual freedom, and that hope kept our cause alive. Without hope, the future can no longer be imagined or pursued. For the first time in my life, I worry that our nation’s future is darkening as, inch by inch, we drift further away from hope. Last November the IFP stood in solidarity with the opposition parties in this Parliament as we tabled a motion of no confidence in our President. That motion was driven by the shared understanding that the divide between the ruling party and the opposition in South Africa is no longer purely a difference in ideology, perspective or opinion. It is a fundamental difference in values. The values which we believe in as the opposition, the very values which are held dear in our society, have been abandoned by the ANC - the ruling party. These abandoned values are the values of Dr Pixley ka Isaka Seme, Dr John Dube, Mr Makgatho, Rev Mahabane, Dr Moroka, Inkosi Albert Luthuli and other prominent past leaders of the ANC. 19 FEBRUARY 2013 PAGE: 35 of 365 Nithi kle kle! Anibazi nokubazi! Nithi kle kle! Anibazi! [Uhleko.] [You are whining! You don’t even know them! You are whining! You don’t know them! [Laughter.]] Now, however, the ANC believes the state is there to be pillaged, abused and disrespected for the self-enrichment of the ruling class. The rest of us believe the state is an instrument to serve the people of South Africa to meet the needs, wants and aspirations of our people. There is a fundamental divide between the ruling party and the people of South Africa, and that divide is growing. The President referred to the vast number of comments he had seen from South Africans on Facebook and Twitter. He is right that South Africans have a great deal to say. We have much to contribute. But how many of those comments expressed concern, frustration and anger? The IFP invited South Africans to comment on Facebook during the state of the nation address and to express their opinion on whether our President is telling it like it is or not. And they spoke. Not just on Facebook, but across the broad spectrum of social media. Sam Nujoma said: “Zoooma lives in his own world, and expects us to believe him.” Unathi Fiti said, “Yet another empty promise from our President.” Anton Pillay said: “All the promises you made before you got elected; they aren’t come true.” 19 FEBRUARY 2013 PAGE: 36 of 365 These few comments reflect an overwhelming public opinion that the President’s address does not describe the state of our nation. The real state of our nation is expressed in the cry of more than a million young people who sit without work, while the President asks the private sector to absorb only 11 000 FET graduates. The real state of our nation is expressed in the children who sat without textbooks for more than half a year, while the President asks the private sector to fund maths and science academies and Saturday schools. The real state of our nation is very different to what the President describes. I have said before that I cannot walk in harmony with a President who is perceived, by some people, to be speaking from both sides of his mouth. Mr President, you seem to speak from both sides of your mouth. What daring to speak about the Bill of Rights, as you did, when you yourself are compromised on this issue, when you sing “Umshini wami, mshini wami”. You allow the slogan “Kill the Boer, kill the farmer”. You have stood in this House, sir, and declared, quite without qualms, that the minority has fewer rights than the majority. [Interjections.] Where is your Constitution, Mr President? Please, show me where that hallowed document grants some citizens more rights than others. I have said, many times, even before Polokwane, that I do not see the President as merely the President of the ANC. He is our head of state. He is my President too - I have no other head of state. I 19 FEBRUARY 2013 PAGE: 37 of 365 thus afford him the respect he deserves. I wonder, though, why the President seems not to respect me, even as a citizen. I have written to him many times and received nothing more than an acknowledgement of receipt from his staff. [Interjections.] How should I interpret the fact that my latest letter was not even acknowledged? That letter informed the President of my reasons for joining the motion of no confidence. I felt that my President should know why I no longer have confidence in his leadership. I am not standing in this House merely to attack him, or even to criticise for the sake of criticising what his government has done. I am standing here as a citizen who has lost hope and lost confidence, and who sees no way for us to continue on this path. The time has come to close the first Republic under the ANC, which is characterised by corruption, lack of vision and lack of leadership. The time has come to usher in a second and better Republic, dedicated to the people and the values of our liberation. Our President has used the expression that “one must cut the coat according to the cloth” in his speech. As someone with many years of experience in governance, I know what he means. You can only work with what you have. That is what the President meant. And no one expects the President to do more for the country than what can realistically be done with the resources at government’s disposal. But we all know that the resources at government’s disposal are 19 FEBRUARY 2013 PAGE: 38 of 365 enormous and the budget allocations are generous to address key issues like education, poverty, inequality and health care. It is not for lack of throwing money at our problems that we flounder. Our President also made it clear that what is happening globally is bound to affect us. But even within these two confines of limited cloth and the global economic meltdown, one cannot escape the truth that this government has wasted money. It has wasted the resources available to it. What has been promised has not been delivered. And corruption has darkened the soul of our government. To my mind, the President has lost his credibility to speak of external challenges. For three years I have said in this debate that the IFP will support this government where this government does the right thing, and I will support the President when the President does the right thing. Thus I will not stand here and say that government has done nothing for our people; that would be dishonest. I was in government for ten years and I know what we did for this country. Even from the opposition benches the IFP has seen government do some things for the people - but not enough things; not quickly enough; not with the kind of commitment that reality demands. Instead, resources have been frittered away at every level of government. In national government, provincial administrations and municipalities, performance is so poor and delivery so slow that I have lost hope of us ever coming close to addressing South Africa’s 19 FEBRUARY 2013 PAGE: 39 of 365 problems successfully. I no longer believe that the vast sums of money set aside to address specific problems will actually reach those problems. So, even the amounts the President quoted for infrastructure development are meaningless if there is no guarantee that they will serve the purpose for which they are set aside. In spite of all the countermeasures, the President mentioned that corruption is endemic. There is no visible improvement in the occurrence corruption. Why should we be impressed that government has now decided that accounting officers should face consequences for noncompliance with accountability measures? Why have there been no consequences before? Euphemisms and hyperbolic catchphrases will do nothing to solve genuine problems. The President told us that in 2008 government declared education as an Apex Priority. While education was an Apex Priority teachers were allowed to strike, textbooks were dumped in Limpopo, learners entered high school functionally illiterate, pass rates were dismal and thousands of learners simply dropped out. So now, we are changing the name Apex Priority, as though the name had anything to do with the problem. Now we are calling education an essential service. But, just to clarify, that doesn’t mean teachers cannot strike. It simply means – well, actually, Mr President, what does it mean? [Laughter.] [Applause.] Giving the problem a new title will not solve the problem. 19 FEBRUARY 2013 PAGE: 40 of 365 It is insulting for the President to say, “We want society to take education more seriously” and “We want everyone in the country to realise that education is an essential service.” Sir, with due respect, we do take education seriously. We know it is an essential service. The people of this country have been begging for solutions to our failing education system. The only one that has not been taking education seriously is government. It is also insulting to the people of this country to say that the Annual National Assessments have become a powerful tool of assessing our education system, without having the honesty to say that the assessments have left us in a shock over how dismally our schools are performing. Study after study, report after report, South Africa’s education system is proven to be worsening. Let us have the honesty to say so. Let us also have the honesty to say that the R102 billion that has been spent on consultants in the past three years points to a public service that has no idea how to do its job. Apparently over the past 19 years no progress has been made in building a public service that knows how to govern effectively, efficiently or at all. Yet, when governance at all levels fails dismally, when money is rolled over and not spent, when corruption takes out service delivery, national government steps in. The interventions in Limpopo and the Eastern Cape indicate the extent of the problem. But such 19 FEBRUARY 2013 PAGE: 41 of 365 intervention is no panacea at all, as the President would have us believe. It is also blatantly untrue that when the state intervenes in private industry, it turns things around and creates success. In fact, the opposite is true. How many state-owned enterprises are prospering? SAA? I remember how many times, as a member of Cabinet, we bailed out SAA. I know that that was a Cabinet secret, but in this House you can say anything, Mr President. Denel is another example. There is no evidence to suggest that government would do a better job running our mines than private companies. Even if, after years of playing footie with the idea of nationalisation, the ruling party has abandoned this notion, the crisis in mining has not gone away. The President would have us believe that, because an interministerial committee supposedly restored social stability in Marikana, and because a commission of inquiry was set up, all is now done and dusted and squared away and there is nothing left to worry about. It is again an insulting euphemism to refer to Marikana and the violent strikes that followed as difficulties in the mining sector in the past few months. Has any calculation been made of all that has been lost in the many protests and strikes that have swept our country? Has anyone calculated the cost of the looting of shops, the destruction of properties and the lost productivity? Has anyone 19 FEBRUARY 2013 PAGE: 42 of 365 calculated the cost to our national psyche, our social cohesion and our trust in the rule of law? When I was in high school, our principal explained that one man’s right ended where another man’s right began. When property is destroyed during violent protests, the Bill of Rights is trampled. And when teachers are allowed to strike, leaving learners without access to education, the Bill of Rights is trampled. Why then, Mr President, are you bowing down to Sadtu, except for the obvious reason that you need their political support? I wonder how far we will get with the National Development Plan, when Cosatu has already compared it with Gear. I had butterflies in my stomach when I heard that. How long before we hear the resounding call, “Asiyifuni NDP! Asiyifuni!” [We don’t want the NDP! We don’t want it!] Mr President, you cannot implement the NDP to please your alliance partners. One cannot help but wonder if the analysts are right; that very few in either the ANC or its alliance partners have read the 450-odd pages of the NDP. How many departments offered comments to the National Planning Commission on specific details of the NDP? The IFP submitted some 20 000 words of advice. We thus have no illusions about the NDP changing anything in our country in the next year, or the next five years. This is a twenty-year vision, populated with 19 FEBRUARY 2013 PAGE: 43 of 365 aspirations and goals. We fully support the NDP, but we realise that it is not the Band Aid the President would have us believe. There is no Band Aid for the crises in education, health care, unemployment and poverty. When R126 million is set aside in the Human Settlements budget for gap housing, and only R70 million is spent, the Band Aid clearly didn’t work. Let me offer the President some words of advice. Your Excellency, don’t expect the Expanded Public Works Programme and the Community Work Programme to absorb all our unemployed youth. Do not insult those millions of young South Africans with the platitude, “Working together, we will find a solution to youth unemployment.” Don’t expect South Africans to be silent as inflation robs them of food on their table and a roof over their heads. Don’t think that the passing mention of the rape and murder of women and girls in recent times is enough to solve a scourge that has been plaguing our nation for decades. And don’t drive wedges between our people by making it increasingly impossible for some segments of our society to do business, find jobs and provide for their families, all in the name of broad-based black economic empowerment. Finally, let me speak about the sanctity of human life. South Africa comes from a past of the people’s war, of a black-on-black bloodshed and political violence. How much has the past 19 years really changed? Even now we have intraparty and interparty violence; 19 FEBRUARY 2013 PAGE: 44 of 365 particularly in KwaZulu-Natal we have rape, looting and rampant crime. With all the assurances that our police are gaining control, the situation appears to be out of hand. Perhaps we should look to the number of prisoners filling our prisons to capacity. Perhaps that would be a proper indication of whether we are winning this war, or losing it. Marikana should remind us of how easily things can get out of hand. Throughout the history of man, homo sapiens, there have been conflicts which resulted in war. Coming as we do from a past of war, we should be more concerned about political violence. Disdain for the sanctity of human life clearly still hangs over our heads. It seems some people have no qualms of conscience, no scruples, either conscientious or religious, about killing people for political reasons. I was hoping to hear our President pronounce on this matter. He and I come from different schools. Our President knows that when the ANC abandoned the values of its 1912 founding fathers, which I clung to, and embraced violence as a means to end apartheid, the IFP did not agree. In 1979 our two parties met in London to discuss an armed struggle, and the ANC urged Inkatha to avail its structures to bring bloodshed and violence into this country, and we refused. I upheld the sanctity of human life in every circumstance. [Interjections.] 19 FEBRUARY 2013 PAGE: 45 of 365 Those who are shouting “Wow-wow-wow!”, did I ask for amnesty? Mr Mbeki and some of the leaders, including the President, asked for amnesty. So, arrest me! [Applause.] I felt we should adopt a composite strategy towards ending apartheid, through negotiations, which was the dream of the 1912 founding fathers of the ANC. Still, I never condemned the decision of the ANC to take up arms and I understood the frustration that drove our liberation movements, the ANC, PAC and others, to take up arms. In fact, addressing a thousands-strong rally at Jabulani amphitheatre, in Soweto, I publicly said that they could go through that fence, for our border is very wide. Cabinet then sent Minister Piet Koornhof to complain about what they understood to be my support for the armed struggle. However, I have always believed in the sanctity of human life. My respect for life never diminished, no matter what happened, throughout the people’s war and afterwards. Thus, I never ordered, ratified, condoned or authorised a single human rights violation. I think it important that leaders pronounce where they stand on these matters, for even today political killings continue. The political violence of last year demands that the President of the ANC, and the President of our country, pronounce on the sanctity of human life and declare where he stands with regard to political violence. Our President has spoken about people’s right to life, but 19 FEBRUARY 2013 PAGE: 46 of 365 somehow this has no resonance, given our history. One would want all our country’s leaders to be able to say, “My hands are clean, my conscience is clear”. But our history speaks otherwise. [Interjections.] Yes, there were lists before Mangaung of ANC people that had to be killed because they belong to certain factions, and some of our names were on that list. Yes, with all your crowing, that is the truth and those are the facts of the matter. South Africans wanted to hear, last Thursday, what this government is going to do to turn things around. Instead, we heard nothing new. The state of the nation address was deeply disappointing. It has caused me, at last, to lose hope; not in my beloved country, but in my President, whom I love and respect. It has given me no cause for renewed confidence, and I find myself leading my party to return to a motion of no confidence, mentioned by the Leader of the Opposition. I am not worried about the juvenile political games of the Chief Whip. The time is indeed here to close the door on this “first Republic” and to admit that through corruption, poor leadership and a lack of vision, South Africa was placed on a path to destruction. Let us open now, with the rising voice of a nation at odds with its government, the better second Republic that our people deserve. Let us set this country on the right course by doing what is needed, by 19 FEBRUARY 2013 PAGE: 47 of 365 unseating a leadership not fit to rule. Nxamalala, Msholozi. Thank you. [Applause.] The MINISTER IN THE PRESIDENCY — NATIONAL PLANNING COMMISSION: Mr Speaker, His Excellency President Zuma, hon Deputy President, Cabinet colleagues and Deputy Ministers, hon members, ladies and gentlemen, coming after the three speakers who have spoken before me, there is a fundamental question, I think, that confronts us in this House: What binds us as a nation? What binds us as Members of Parliament? Taking account of our history, we must agree that the great social compact that is our Constitution binds us together, regardless of political affiliation. The promise articulated in the Preamble where it commits us to: "Improve the quality of life of all citizens and to free the potential of each person” is what we must all strive for. So we are bound together as members to strive for development, as the author Duncan Green so simply puts it: Development is about transforming the lives and expectations of a nation’s inhabitants, an ambition that goes far beyond simply increasing monetary income. This is, in essence, what the National Development Plan is about. It is a commitment to present generations of people living in poverty that we will act to raise their living standards, and a pledge to 19 FEBRUARY 2013 PAGE: 48 of 365 all the future generations of South Africans that they will be better off than previous generations. I know that this sounds somewhat trite. But, I use these principles as a reminder nonetheless about what actually convenes us here. As a government, and as reaffirmed by the ruling party recently, we made a strong commitment to ensuring that we uphold the principles embodied in our Constitution. But we understand that this cannot be done by government alone and recognise the importance of having united action by all South Africans to eradicate poverty, create employment and reduce inequality as outlined in Vision 2030 and the National Development Plan. Our country is characterised by high levels of poverty and inequality. Governing in such an unequal country is difficult. The interests of a billionaire are obviously different from a manager earning R1 000 000 a year. The interests of that manager is different from the person earning R50 000 a year, and, yes, the interests of the worker earning R50 000 a year is very different from the unemployed women in rural Sekhukhuneland earning nothing. It is very difficult to govern in such an unequal country. It is very difficult to find common ground. But it is in our collective interest to find solutions to our problems through dialogue and change rather than violence. 19 FEBRUARY 2013 PAGE: 49 of 365 Our historic task is to transcend the success of the democratic transition and build a society in which we can all have opportunity, in which the state is capable and effective, in which people are able to find work, in which the poorest children get quality education and in which business can thrive. When President Zuma stated in the state of the nation address on Thursday that - The National Development Plan is a road map to a South Africa where we will all have water, electricity, sanitation, jobs, housing, public transport, adequate nutrition, education, social protection, quality health care, recreation and a clean environment. ... it was the promise of the Constitution that he was referring to. Now, we might want to pause and reflect on the imagery of a roadmap. We all have experience of a roadmap folded in the cubbyhole of a car, and when it appears that the driver is about to get lost, the map cannot easily be unfolded. There is usually a huge debate about which direction the vehicle is actually facing to start with. That cannot be the type of road map that President Zuma was referring me to. Trust me on this one! 19 FEBRUARY 2013 PAGE: 50 of 365 He was referring to a dynamic interactive process, more like the global positioning system, GPS, in our vehicles that will shout at us when we veer off course. “I said turn left 200 metres back, why haven’t you?” It’s not just that the destination of a fairer and more prosperous society that is in itself important. The route we take, the processes we follow, are equally important because uniting our country is an essential element of achieving the destination. What is important in our context is to look back at the journey that we have travelled since we adopted our Constitution here, in this House, 17 years ago and to calculate the distance to reach the kind of society described for our country. Then we can agree again with Duncan Green when he writes: People living in poverty must take or create power over their own lives and destinies. To develop, countries need educated, informed and healthy citizens and a state both willing and able to provide these essential services on which their wellbeing depends. The state must also ensure that both the quality and quantity of economic growth meet developmental needs. It is important that we be conscious of the need to focus both on the quality and the quantity of growth. Occasionally, one hears in the corridors a viewpoint that suggests that the country can raise the living standards of the poorest without economic growth. We should recognise that rapid growth of the gross domestic product, GDP, is essential to attain the objectives of raising living 19 FEBRUARY 2013 PAGE: 51 of 365 standards. No country has succeeded in raising living standards without rapid growth and we are unlikely to be the first to attain this feat. It is for this reason that the National Development Plan, NDP, presents itself as a composite of a whole range of policies. It is not possible to look at the NDP as focusing on social policy or only on nation-building and pretend that the drivers of the economy exist somewhere else. All chapters of the plan must be addressed for implementation simultaneously. So, as we begin to address the implementation of the plan, our early choices have to be about those, and I quote, “essential services on which their wellbeing depends”, “their” being the poorest in society. However, we need a new urgency in this phase of democracy. This new phase of the implementation requires an urgency and focus that is different from anything we’ve had so far. This new phase requires different mindsets, harder work, greater commitment to democracy and accountability and, most importantly, a higher purpose to serve all the people of South Africa. We need to choose what we can and must do first. For this reason, I want to ask that you support the urgent need to transform the state from what it is into one that is developmental in its orientation and capable of providing the services that will transform the lives of our people. 19 FEBRUARY 2013 PAGE: 52 of 365 A capable developmental state cannot operate in isolation. We must work in unison with strong leadership throughout society and an active citizenry supporting development and holding their government accountable. In setting out steps to shift the orientation of the state, I want to ask that we give urgent consideration to a few important actions. Amongst these must be the need to change the incentive structure for those of us in public office to strengthen the accountability chain. Firstly, we must raise the consequences for those who do not perform the functions required of them. If teachers are paid even when they haven’t taught our children, it is wrong, and there should be consequences. [Applause.] When health workers make lots of money in the private sector while they are in the employ of the state, where they then report for duty only to rest, there should be consequences. [Applause.] When policemen and women avoid being involved in crime prevention, there should, of course, be consequences. And when public servants do business with their employer, there should be very serious consequences. [Applause.] If we want development, then we must recognise that we must lead the behavioural change through our own actions and through appropriate legislation. Secondly, we have a responsibility to retrain and reorient the Public Service. It’s interesting to speak after two former Cabinet colleagues who are now in intense discussion, but it’s interesting 19 FEBRUARY 2013 PAGE: 53 of 365 to speak after them. I served along with them; I’ve looked at the legacy they have left behind in their respective two departments, and I ask who are you to throw stones? [Interjections.][Applause.] But - unfortunately, Minister Sisulu is not in the House at the moment - what we must do is commit together to retrain and reorient the Public Service. We need a very different set of skills, one that is focused on evidence-based decisions. If we want to use evidence, then we must train public servants to actually use available evidence, or to ensure that the datasets are generated and used in decision-making. Minister Sisulu shared with me earlier that she would share detailed plans in this regard quite soon. Thirdly, the plan points out that the present interface between members of the executive and senior public servants often results in both instability and blurred accountability that leads to poor performance. It is in the best interests of all South Africans, and I hope that every member of this House will see themselves as part of the vanguard of this, regardless of our political persuasion to build a professional and capable public service in this country. [Applause.] The National Development Plan asks Parliament to look at the compatibility of the Public Finance Management Act and the Public Service Act with the view to clarifying the accountability chain. The National Development Plan recommends the creation of an administrative head of the Public Service. While it’s fairly easy 19 FEBRUARY 2013 PAGE: 54 of 365 for members on one side of the House to exclude themselves from responsibility, let me make the appeal and the call on Parliament to review the Public Service Act to address these concerns. Fourthly, the National Planning Commission has recommended changes to improve the functioning of the intergovernmental system. This includes clarifying roles and responsibility for municipal planning, urban transport systems and the suite of activities relating to the built environment, namely housing, water and sanitation. The National Planning Commission also recommended greater differentiation in the allocation of powers and functions, based on competency, a proposal that we believe is entirely consistent with the Constitution. Simplifying the delivery chain and enhancing our intergovernmental system will both strengthen accountability and improve service delivery. Again, we appeal to Parliament to address these matters in the course of this year. Fifthly, the Commission recommends that the public interest mandates of state-owned enterprises be made explicit and public. Furthermore, there are several areas where clarity is required on the roles of regulators, policy ministries, shareholder ministries and boards. This is an area where Parliament can take the lead in reviewing legislation to achieve tighter accountability and better outcomes consistent with the National Development Plan. 19 FEBRUARY 2013 PAGE: 55 of 365 The National Development Plan also makes several proposals to fight corruption in society. These proposals focus on enforcement, prevention and educating society. There are also detailed recommendations to improve value for money in our procurement system. We must recognise that supply chain management is the Achilles heel of our democracy. So much of what goes wrong, whether these wrongs masquerade as intraparty factions or whether it is just the reality of a segment of society that has wealth whose origins the individuals cannot explain, are traceable back to the fissures in our supply chain management system. Parliament can no longer ignore the seriousness of this issue. I want to reiterate the importance of the role and position of this august House in the context of ensuring that we have a state that is both developmental and capable. The first step in improving the state is to strengthen the accountability chain. That starts here in this House. A constitutional democracy has, at its apex, an elected Parliament that holds the executive accountable. I don’t know how many people have read the full executive summary of the plan, but it has some harsh words for this institution. Mr Speaker, please don’t throw me out for quoting these words: Accountability is essential to democracy. The accountability chain has to be strengthened from top to bottom. To begin with, parliamentary accountability is weak, with Parliament failing to fulfil its most basic oversight role. 19 FEBRUARY 2013 PAGE: 56 of 365 It is crucial that society is able to look to the skills and competencies of Parliament; good technical skills of parliamentarians backed by solid research teams are critical to stronger parliamentary oversight. The second priority is to use the outcomes approach launched by the President three years ago to build tighter accountability chains for each area of government. A ruthless focus on implementation requires detailed implementation plans across government. So, for example, if the Department of Justice and Constitutional Development has a policy to reintroduce sexual offences courts, then it is incumbent upon members to ask the following questions: What lessons were learnt from the last attempt to introduce such courts? How much will it cost? What special training will be given to court orderlies in these courts? How will it be rolled out? Where will these courts be located and why? Will these courts be integrated into welfare services? Will there be appropriate facilities for women or children to testify in private? How do we know that these courts will not cherry-pick the easy cases? Let me remind us that no change occurs if we merely think about it, or even just agree on broad policy parameters. A huge behavioural change that must occur is a shift to detailed discussions about implementation. Who does what? By when? At what cost? And how will we know that a difference is being made? These should be the kinds 19 FEBRUARY 2013 PAGE: 57 of 365 of questions that are repeatedly heard within this Parliament, not only in both Houses and in the committee rooms, but also in government departments. Without attention to such basic issues that relate to the implementation matrix, we will never be able to determine who should be held accountable for delivery or implementation failures. As we said earlier, this new phase of implementation requires an urgency and focus that is different from anything we have had so far. The other side of an active and dynamic democracy is how the state and public representatives engage with the people we serve, and in whose interests we take decisions and write laws. The National Development Plan underlines the importance of community-based organisations, trade unions and other organised formations of civil society to become active in the development of their communities and their country. Many of our problems, from poor quality education to violent crime, can only be solved through organised communities acting in partnership with a capable and developmental state. Schools are often a reflection of the community. Well-organised communities can help a school achieve its objectives. But wellorganised communities can also hold their schools to account if results slip below the expected standard or if teachers do not teach at least six hours a day. There has been a worrying decline in sport in many black communities. The excuse cited often relates to 19 FEBRUARY 2013 PAGE: 58 of 365 facilities. This cannot be true and it was not true in our case when we were growing up. The availability of facilities may be poor but it is much better than in decades past, yet many of our communities can only reminisce about days gone by when young people played football, netball or participated in track and field athletics. The state cannot organise these activities; they require communities to become organised. Too often we hear people only when they are truly frustrated by our lack of action. We can and must change this. We must do so because of a fundamental belief that people are their own liberators and, as we quoted earlier from Duncan Green, “must take or create power over their own lives and destinies”. I recognise that it may not be appropriate for the state to organise the voice of the people, but we cannot have a democracy or, indeed, attach meaning to the idea of a developmental and capable state, unless there is an organised voice that supports or points out the failings of the system of development. I want to reiterate that united action by government and the people of our country is exceedingly important for the attainment of the society that our Constitution promises. Our goals are exactly the same. None of what I have raised should come as a surprise to you, hon members. Perhaps, by emphasis, I have reached into the deep recesses of memory in order to remind every member who we are, where we come from and what our purpose is as representatives of the people. Part 19 FEBRUARY 2013 PAGE: 59 of 365 of what we need is a belief in what is possible, and to act to convene even when cracks present themselves in society. Last week, Deputy President Motlanthe and a number of Ministers met with farmers and farm workers here in the Western Cape to ensure that all parties to the dispute that claimed lives and property were heard. If the measure of success is in the ability of these contending parties to now talk to each other and raise their respective difficulties, much would have been achieved. In his address last Thursday, President Zuma took us into his confidence on the meeting he held with Sir John Parker, the chairman of Anglo American plc on their decision to retrench 14 500 workers. That process will have to be taken forward with Amplats, the affected unions and the Department of Mineral Resources. But I know that the President left that meeting with Sir John Parker confident that that leadership intervention will save many of those 14 500 jobs. [Applause.] These are examples, but two examples, of leadership demonstrated by the Presidency. We should know that our people respond positively to leadership, and frequently see this as a signal for them to become directly involved in problem solving. We will all accept that such leadership must involve taking some unpopular decisions from time to time and, given the scale of our challenges, it could not be any different. 19 FEBRUARY 2013 PAGE: 60 of 365 Our commitment must be to build the change that matters in the lives of our people. That is what the implementation of the National Development Plan is about. It calls on us to be far more conscious of what we seek to achieve. It allows us to initiate change across a fairly broad front of activities. It recognises that governments, through their departments, will ultimately remain responsible and accountable for transformation. It rekindles the role of Parliament in a dynamic democracy. There are many areas that are not covered by the NDP and many more where detailed work is required. This work must be done in a collaborative manner across society. The solution to many of our challenges lies in being able to listen to each other’s concerns and to plot a way forward while taking into account such concerns. Social dialogue is not about negotiations. Negotiations are often characterised by agreeing to the barest minimum or stooping to the lowest common denominator. Social dialogue is about finding acceptable solutions to our country’s complex challenges, be they in the mining or farming sector or in fact anywhere else. Despite what was said from this podium earlier, I’ve just read a National Aeronautics and Space Administration, Nasa, report about something called asteroid 2012 DA 14, which poses no threat. [Laughter.] [Applause.] What we need to do is to lower the volume, put the rhetoric aside and be prepared to listen and be persuaded. 19 FEBRUARY 2013 PAGE: 61 of 365 Without such a spirit, we will not heal this fractured land. Yes, it is difficult to govern in such an unequal society, with strong vested interests, but it is our challenge to mobilise all of our people and social forces to work in partnership with their government for a society that is more fair and prosperous. The task of implementation has begun. I would like to end with the imploring words of the poet Nontsizi Mgqwetho, when she says: ‘Masizakhe’! Le nto imbongi inochuku Kunokuyeka ukhozo lungadliwa ziinkuku Sizwe sini esi singehlisi buthongo Sigqibe izwe lonke ngamaxa obongo Nditsho ke mna, masizakhe! For the uninitiated, we need to build for each other. We can’t look past the realities around us. Despite all that, there is no reason for us to let up in our country. We can’t be a nation that sees its citizens sleepless because of their circumstances. We can’t live as a nation when some rot in hovels. The call from our poet is “let us build”. Somlomo wePalamente namalungu ahloniphekileyo, enkosi kakhulu. [Hon Speaker of the Parliament and hon members, thank you very much.] 19 FEBRUARY 2013 PAGE: 62 of 365 Mnr J J MCGLUWA: Mnr die Speaker, ons hoor daagliks op televisie en radio, en ons lees dikwels in die koerante en sien op Facebook, hoe mense hul misnoeë uitspreek oor die toestand van ons land. SuidAfrikaners is besig om vertroue in ons te verloor. Hierdie land het soveel gedaanteverwisselinge – met so baie diagnostiese planne en uiteindelik die Nasionale Ontwikkelingsplan – ondergaan. Nieteenstaande hierdie planne is korrupsie en die gebrek aan implementering aan die orde van die dag. (Translation of Afrikaans paragraph follows.) [Mr J J MCGLUWA: Mr Speaker, we hear daily on television and radio, and we often read in the newspapers and see on Facebook, how people are expressing their dissatisfaction concerning the state of our country. South Africans are losing confidence in us. This country has undergone so many metamorphoses, including so many diagnostic plans and ultimately the National Development Plan. In spite of these plans, corruption and the lack of implementation are the order of the day.] If the government fails to clamp down on corruption, how can we expect South Africans to have any confidence in President Jacob Zuma? The President’s address supposedly provided a progress report on the R860 billion in government spending. This was the classical trick of double counting, because these funds had already been spent in 2009. He failed to inform us how much money was lost on these projects due to corruption. The President also missed a golden 19 FEBRUARY 2013 PAGE: 63 of 365 opportunity to clarify if he actually condoned the R206 million upgrade of his Nkandla compound. The response of the Minister for the Public Service and Administration to my question, number 972, in April last year regarding the Ministerial Handbook was that it would be finalised in mid-2012. In 2009 the President established one of his famous task teams to review the Ministerial Handbook. Four years later this has not been done and some of our Ministers continue to spend taxpayers’ money extravagantly on office upgrades and other perks. Ho monate mona Palamenteng! [It is nice here in Parliament!] Parliament also remains in the dark about the so-called presidential handbook. Mr Mac Maharaj, whose criminal case was withdrawn by the Scorpions in 2009, informed Radio 702 that there was no presidential handbook. What a contradiction! If this is true, my advice to the Deputy President is to be careful as somebody might just have set him up. Mr Cyril Ramaphosa was recently asked about the implementation of the Integrity Commission. “Watch this space”, was his laidback response, as if he were speaking about the next season of a soap opera. How can South Africans trust commissions like this when the government continues to shower rewards on those who are politically connected? 19 FEBRUARY 2013 PAGE: 64 of 365 One of the most powerful examples of corruption is worth comparing to that of President Jacob Zuma’s complacency in fighting corruption within his own government. The British parliamentary expenses scandal makes a powerful point of comparison, where 25 public representatives who were involved either resigned, retired or announced that they would not stand again. This included the Speaker of the House of Commons. Why is this significant? It is because public servants should be held to the highest standards of integrity and ethics. The hon Speaker informed this House in 2011 that Parliament had failed to recoup R12 million owed by errant Travelgate MPs. It was decided to write the debt off. Some of these MPs remain here today. [Interjections.] The crisp point is that several MPs who were convicted for corrupt activities or fraud still have cushy jobs within the government and the ruling party. [Interjections.] Some of them head up important entities in government. This is a question of political leadership and the President’s leadership. The buck stops with him. A case in point was the opportunistic appointment of Adv Menzi Simelane, which clearly runs counter to the interests of the justice system. Section 218 of the Companies Act bars any person who has been found guilty of fraud and sentenced to prison without a suspended sentence from being a director of a company. Yet, befitting this President’s unique style of leadership, Tony Yengeni 19 FEBRUARY 2013 PAGE: 65 of 365 is heading up the ANCs political and misnamed school of thought. Mr Yengeni was found guilty of corruption and he only resigned his directorship after unprecedented public pressure. Those who admitted guilt were never censored by the ANC. On the contrary, Patrick Maloyi, for example, was an ANC candidate in 2009 and Bruce Kannemeyer was rewarded with a municipal manager position. The President’s government often seems content to stay just inside the law, but the President fails to understand that the absence of ethics is in itself a form of de facto corruption. Take the E350 Mercedes Benz that was meant to be delivered to the then Tlokwe/Potchefstroom ANC mayor, costing the taxpayer more than R700 000. The new DA mayor, who was appointed after a motion of no confidence was passed against the ANC administration, sent that car back. [Applause.] In the Northern Cape, John Block had for years mined salt in the Kalahari with a fraudulent mining licence. In KwaZulu-Natal, the Manase report exposed unethical behaviour by ANC officials on a massive scale. Once again, this report was then suppressed from public viewing. In the North West, the member of the executive council for social development used R170 000 worth of taxpayers’ money to attend the ANC’s elective conference in December to cast her vote to re-elect President Jacob Zuma as the President of the ANC. Yet some of them still remain in office. This list goes on and on and on. 19 FEBRUARY 2013 PAGE: 66 of 365 The South African people do not have confidence in the President, who looks away while the tentacles of corruption spread through our public life. He fails to understand that the importance of politics to government lies in the ethics and moral compass which he, and only he, can provide. I thank you. [Applause.] Mr B H HOLOMISA: Hon Speaker, honourable President, Deputy President and hon members, I would like to extend my sincere congratulations to the President on his re-election as the president of the ANC at the party’s 2012 conference in Mangaung. [Applause.] It was gratifying to see that, contrary to popular belief and media speculation, the conference was peaceful. Kuwe ke mkhuluwa, ndivile ukuba wonyulwe njengenqununu, ngoko ke, siza kuthumela abantwana esikolweni ukuze ubafundise ipolitiki. Ndiyabulela. [Sir, I’ve heard that you’ve been elected as the principal. We will therefore send children to school so that you can teach them politics. Thank you.] Coming back to the business of the day, South Africans from all walks of life have, over the past few days, shared their views on your 2013 state of the nation address, sir. In this regard, the UDM would like to add its voice by proposing solutions to some of the critical issues affecting South Africa today. 19 FEBRUARY 2013 PAGE: 67 of 365 The overreliance of state departments on consultants and independent contractors requires urgent attention. According to the AuditorGeneral’s report, national government departments spent R33,5 billion on consultants between 2009 and 2011, while provincial departments spent another R68,5 billion. In other words, government departments spent a staggering R102 billion on consultants during that period. This is a damning indictment of a modern-day public administration. It is also clear that there are serious structural and organisational deficiencies that cause departments to procure the services of consultants to do what the taxpayers pay them to do. The Public Service Commission should be requested to investigate and write a report on the causes of this overreliance of state departments on consultants and independent contractors. The truth of the matter is that the goals of the National Development Plan will not be realised if government continues to appoint incompetent people. The billions of rands wasted on consultants could have been used to create jobs. While on the subject of job creation, we believe that it is possible to reduce unemployment. This can be done by government refurbishing, for instance, all the abandoned factories in areas such as Dimbaza, Butterworth, Queenstown, Mthatha, KwaMhlanga in Mpumalanga, Ekurhuleni in Gauteng, Thohoyandou in Limpopo, and Mmabatho in North West, with a view to creating jobs for the youth. 19 FEBRUARY 2013 PAGE: 68 of 365 We should partner with leading international and local companies in the textile and steel manufacturing industries in a mentorship programme for the youth. Upon completion of this mentorship programme, graduates should be put in charge of these factories. The much talked-about youth wage subsidy should be structured in a way that accommodates a programme of this nature. In the past, a lot of raw materials were processed domestically, but today these factories are closing down in droves. The common denominator is their inability to compete with imports from countries whose governments subsidise their products. We are concerned about the business community’s perceived preference for employing foreign nationals over South Africans. This trend has been observed in industries like security and hospitality, in particular. We need to address this, as it has serious implications for social cohesion. We have to consider whether businesses should not be compelled to ensure that 60% to 70% of their staff complement comprises South Africans. We must also deal with the tensions caused by the takeover of businesses in townships, small towns and rural areas by foreign nationals. These tensions are created by, amongst other factors, the fact that these businesses do not create jobs for local people – they are run by the foreign owners and their families. 19 FEBRUARY 2013 PAGE: 69 of 365 There has been much talk about greening programmes for South Africa. Packaged properly, these programmes have the potential to create job opportunities for semi-skilled workers. Such job opportunities could range from projects on combating soil erosion to creating community forests, and so on. You mentioned infrastructure development as one of the government’s Apex Priorities. It would help public debate as well as progress monitoring if government publishes the infrastructure development map, including projects that are run by state-owned enterprises. For example, last year I wrote you a letter requesting your infrastructure committee to consider building a railway link between Mthatha, Kokstad, Queenstown and East London. The purpose of the railway line would be to improve public transport in these areas and reduce traffic, thus reducing the high rate of accidents on the N2. The development of a monitoring mechanism is very important, Mr President, in that it enables one to keep track of progress. For instance, are you aware that the company that was tasked with the construction of the Mthatha Airport terminal building has left the work unfinished? We are pleased, however, with the progress made by the SA National Defence Force, SANDF, on the runway. While still on the subject of infrastructure development, today I received a letter from Mr Muthala, principal of the Tshadama Secondary School in the Vhembe District of Limpopo. He talks about 19 FEBRUARY 2013 PAGE: 70 of 365 the difficulties facing the teachers and 480 learners in 8 classrooms. The school has been teaching many of its learners under trees. Despite these challenges, it managed to achieve a 100% pass rate in physical science, and this without a laboratory. Their overall pass rate for 2011 was 69% and this increased to 96% in 2012. The school claims that the education department has not helped it in spite the request to build extra classrooms. Mr President, I have the pleasure of handing you this letter so that you can ask the relevant department to look into it. In conclusion, we have taken note of your announcement that you will deal decisively with violent protests and strikes. According to the multilevel government initiative, in the first 8 months of last year, a total of 79,2% of protests turned violent. In other words, eight out of 10 service delivery protests ended up in violence. This unprecedented increase in service delivery protests, together with the use of violence, is cause for concern. Finally, not only are the poor unhappy about the levels of corruption, maladministration and poor service delivery at the various government levels, but they are so desperate for government’s attention that they resort to the use of violence. We look forward to seeing government taking steps to address the underlying causes of this problem. We ought to ensure that our efforts to create peace and prosperity in the world do not distract 19 FEBRUARY 2013 PAGE: 71 of 365 us from our primary mandate of ensuring the safety and security of South Africans. To you, hon Chief Whip ... kuza kufuneka sikubeke endleleni ngokukhawuleza, ungasiqheli. [... we will need to discipline you as soon as possible; don’t take us for granted.] You continue to feast on the National Party carcass. You should be the last one to point fingers. An HON MEMBER: Hear, hear! Ndigqibile. [I am done]. [Applause.] The MINISTER OF DEFENCE AND MILITARY VETERANS: Hon Speaker, President of the Republic of South Africa, Deputy President, Cabinet, colleagues, Deputy Ministers, hon members, fellow South Africans and friends, there are many who have already described the Presidemt’s 2013 state of the nation address as both honest in its assessment of our nation’s progress in the 20 years of freedom, and as a useful basis for our plans going forward. As the ANC, we can’t agree more. On the occasion of this debate, therefore, we are presented with an opportunity to pause and go back to the basics; to take a step back 19 FEBRUARY 2013 PAGE: 72 of 365 and remind ourselves of the foundation that forms the basis of our task in building and sustaining the democratic state. In conceptualising the national democratic revolution, the ANC recognised that the first challenge facing our society was the need to build a nation out of the divisions created by years of colonialisation and sustained later through the system of apartheid. The recognition of the racial and class stratification of our society has meant that South Africa entered into its democratic breakthrough in 1994 not as one nation. This might have resulted in a situation where that political breakthrough could represent different meanings to different sections of our society, hence the call for nation-building as a rallying point to unite our people and forge a common vision for South Africa. It is these basics that I want us to look back to in this debate. Hon Speaker, as our country edges towards the third decade of freedom, the imperative for us as a nation is to build national consensus on what should constitute the absolute priorities for our country. This national consensus should be able to assist the country across political and other divides to unite on a minimum programme that transcends all sectors of our society. In his address the President urged us to look at some of the essential priorities on which we can agree, including, and not 19 FEBRUARY 2013 PAGE: 73 of 365 limited to, issues of education, health, poverty and the safety of our children. He went on to present the National Development Plan as an embodiment of our shared set of objectives, a common vision for a different South Africa. In line with this, we need to develop a programme of essentials on which we can agree. The National Development Plan commits us as a nation to accelerating progress, deepening democracy and building a more inclusive society. It calls on South Africans to translate political emancipation into economic wellbeing for all. Most importantly, it strongly asserts that it is up to all South Africans to fix the future by starting today. The President reported in his address last week that the government has accepted the thrust of the National Development Plan and offers it as a basis on which we should unite as a country despite our political affiliations. He has called for a collective effort when he reminded us that no single force acting individually can achieve the objectives we have set for ourselves. Hon members, over the past four years or so the departments constituting government’s Justice, Crime Prevention and Security cluster have engaged with the processes and made inputs into the development of the National Development Plan. As part of the cluster, the Department of Defence has had a unique opportunity and we were fortunate that the development of the National Development 19 FEBRUARY 2013 PAGE: 74 of 365 Plan, NDP, coincided with the process of the Defence Review, ensuring alignment between the two. The Defence Review, which was initiated by my predecessor, and which will be finalised by the end of the financial year, already positions the role of our Defence Force as a key national asset that can, without detriment to its primary functions, carry out directed actions to support national development. In this regard the Review also acknowledges that the inherent potential of the Defence Force to support national development can be realised almost automatically as a direct result of its normal peacetime activities. It is, however, also important to understand South Africa’s international defence obligations within the context of its support to development. The role of the military in supporting peace and stability on the continent is in line with our foreign policy objectives. These objectives recognise the fact that South Africa’s own development cannot happen outside that of the continent and that our fortunes as a country are dependent on and linked to the success of the African story. Situations of war and instability in any part of the continent are detrimental to effective development and as a result may pose a direct or indirect threat to South Africa’s own national interest. As part of this national consensus it is important for all of us to understand and appreciate this principle and have consideration for 19 FEBRUARY 2013 PAGE: 75 of 365 the role played by our Defence Force in supporting peace and development on the continent. Deputy Speaker, I am aware that recently there have been attempts to present this important role as unnecessary, wasteful and without benefit to South Africa. This assertion, in particular with regard to our engagements in the Mozambique Channel, the Central African Republic and most recently the troops’ contribution to the Southern African Development Community’s neutral force in the Democratic Republic of the Congo has at times been deliberately misleading and dishonest. As unconventional as it is, I thought that I should use this opportunity of this debate to clarify some of these issues. On Mali: In line with our commitment to democracy and stability on the continent, South Africa has on more than one occasion condemned the unconstitutional changes in government that took place in Mali in March 2012. We remain extremely concerned about the control exerted by the armed groups in northern Mali and their thwarted advance towards the south. In particular, we have expressed concern at the senseless violation and destruction of the museums and other critical parts of the historical heritage sites. These included the holy shrines, infrastructure and manuscripts in Timbuktu, including the damage caused to the Ahmed Baba Institute of Higher Learning and Islamic Research. As South Africa, we welcome efforts made by the Economic 19 FEBRUARY 2013 PAGE: 76 of 365 Community of West African States, Ecowas, together with the African Union, AU, and the United Nations in providing a platform for mediation to find a lasting political solution to the Mali crisis. South Africa was part of the donors’ conference held in Addis Ababa in January, where we pledged to give support in whatever way we can. As a matter of record, South Africa will not be contributing any troops to the African-led International Support Mission to Mali, Afisma, as troops have been pledged by the Ecowas region. On the Central African Republic, South Africa’s engagement in this country is based on a Bilateral Defence Corporation Agreement and the AU Peace and Security Council resolutions on requiring member states to provide support for the socioeconomic recovery and the consolidation of peace and stability in the Central African Republic. In line with this, South Africa signed a Defence Cooperation with the Central African Republic, CAR, to assist in building the capacity of the CAR army. This military training assistance includes provision of equipment. As we are all aware, towards the end of last year there were reports of rebel activity and military threats to depose the government of the CAR. In January this year, we extended the memorandum of understanding, MoU, for another five years and authorised the deployment of up to 400 soldiers as part of the military cooperation agreement. 19 FEBRUARY 2013 PAGE: 77 of 365 The additional South African soldiers were sent to the CAR as protectors should the need arise for the 26 trainers to be defended. Of course, we had to ensure that the assets that we have in the Central African Republic are also protected and that they do not fall into the wrong hands or are used in the conflict that was developing in that country. We have since welcomed the deal reached between the president of that country and the rebels, who had sought to overthrow him, to create a coalition government. On the insistence of South Africa, we have not moved out of the CAR because, amongst others, there has been a request by the UN representatives to that country, that countries that are on the ground in the Central African Republic should remain on the ground lest we see another Mali evolving. On the Democratic Republic of the Congo: We have been actively involved on a bilateral as well as multilateral level in striving to bring peace and stability in the eastern DRC. In the multilateral fora South Africa at present continues to support the Monusco deployment in the DRC through the contribution of 1 250 Force members. Following the March 23 Movement, M23, rebel group takeover of Goma city in the eastern DRC on 20 November 2012, South Africa has been actively involved as a member state of the Southern African Development Community in finding a lasting solution for the 19 FEBRUARY 2013 PAGE: 78 of 365 situation in the DRC. A joint strategy was developed by the chiefs of the Defence Forces of the International Conference on the Great Lakes Region, ICGLR, and SADC proposed that an intervention force be sent to the eastern DRC. The AU is currently engaging the UN on the strategy and only following this engagement will it be implemented. Recent reports of South Africa having sent troops to go and fight in the DRC are therefore misplaced. Should the strategy go ahead, South Africa will not be sending additional troops to the DRC. We have pledged to contribute a brigade to the intervention force by removing our current brigade from Monusco so as to serve under the intervention force. I, therefore, want to categorically reject recent allegations made in our local newspapers that we are endangering the lives of our troops by moving them to the intervention force. It must also be mentioned that our troops have been deployed in the eastern DRC for a number of years and are familiar with the terrain and the forces on the ground. South Africa remains committed to finding a lasting political solution to the problems that result in the destabilisation of the DRC as a whole. Hon Speaker, it is important that the Defence Force continues to be seen by all of us as an essential national asset that should be 19 FEBRUARY 2013 PAGE: 79 of 365 protected from political postulations or used to achieve sectarian political interest. All of us should give careful consideration to avoiding the dangerous temptation to play political football with issues of our Defence Force. Keep it free from the influences of varying and competing political interests. On our part, as government, we will continue to ensure that the primary functions of our Defence Force will remain those of deterrence, defence and the protection of key national interests. In a similar vein, it is important for all of us, both within and outside government, to desist from the trend of viewing the Defence Force as merely a cost centre that consumes enormous resources without any substantial reciprocal benefits to the country, and for it to be seen for its true value to the nation and its national interest. Informed by the requirements of the Defence Review, we will continue to engage with both the National Treasury and the Cabinet on the appropriate resourcing of the Defence Force. It is our view that given the centrality of the defence mandate to the development of our national interest in general, the state should ensure that the capabilities of our Defence Force are not compromised by rolling budget cuts to the detriment of South Africa’s role and position in the geopolitical setup. 19 FEBRUARY 2013 PAGE: 80 of 365 It is, however, also a key mandate of the Defence Force to create conditions of peace and stability so indispensable to economic development and the safety of citizens. We therefore, in line with the requirements of the Constitution, deploy its members in support of the SA Police Service, SAPS, when it is necessary. The maintenance of law and order and the fight against crime still remains the central responsibility of the SA Police Service. Only in exceptional circumstances of a serious threat to law and order should the Defence Force be called upon to assist the police. It is important that all of us resist the temptation easily to call on the Defence Force to conduct normal policing work as this could easily gravitate us into a militarised state reminiscent of the perpetual state of emergency. As experienced in the past, this kind of action has the potential to erode the public confidence and trust in the Defence Force; a situation that can have dire consequences for the stability of the country. Madam Deputy Speaker, following Mr Nxesi’s release of the report of the task team that investigated the process followed in effecting security upgrades at the President’s residence, we decided to pay attention to those matters in the report in which the South African National Defence Force, SANDF, or the Department of Defence and Military Veterans played a direct role. We are of the view that 19 FEBRUARY 2013 PAGE: 81 of 365 those matters that are the subject of further investigation as recommended by the task team, including any that involve the Department of Defence and Military Veterans, should continue to be dealt with through that process. It is important that this investigation continues unhindered in order to ensure that we can account to the South African public about the corrective measures that are being taken in cases where any wrongdoing is established. From an operational point of view, we have reviewed the work done in relation to the support that the SANDF provides to the President and made the following observations. Firstly, a clinic facility has been built as part of the operational requirements of the presidential medical unit under SA Military Health Service, SAMHS. Secondly, a helipad facility has been erected for the specific operational requirements of the South African Air Force. Thirdly, accommodation units for the various members of the SANDF who are required to perform duties in support of the President have been built. This work and the costs associated with it is part of the operational requirements requested by various government departments involved in support of the President. The cost of these departmental requirements constituted the bulk of the total spend of R206 million on the project, calculated at over R135 million. In terms of the report the rest of the expenditure, just over R71 million, was accounted for as having been used for security upgrades as per the assessment of security agencies. These security requirements 19 FEBRUARY 2013 PAGE: 82 of 365 included physical security, evacuation systems and fire-fighting capabilities. The investigation found no evidence that any of these funds were used to build the actual houses of the President, which were at completion level at the time of his appointment in 2009. This is very important, hon members. [Applause.] There has also been no evidence suggesting that the conclusion of the task team investigation was wrong, except for general statements of painful accusation and baseless suspicion. As I have indicated, the process of approval and procurement related to the operational requirements of departments, including the Department of Defence, will also be the subject of the same investigation announced by the Minister last month. For now, it is our decision to increase the initial size of the medical facility in the residence to a bigger clinic outside, given that the perimeter of the residence was wrong and miscalculated. [Interjections.] Listen so that you can understand what I’m saying. In this regard, having assessed both the location and the size of the clinic facility, it is our view that, save for minor adjustments, the clinic has adequate capacity to serve both the requirements of the Presidency, whenever necessary, as well as provide a service for the community of Nkandla. [Applause.] 19 FEBRUARY 2013 PAGE: 83 of 365 Discussions amongst the various role-players, including the KwaZuluNatal department of health, have already started to put this decision into effect. It is also important for me to indicate that even with the pending investigation on these matters, government has already acknowledged lessons learnt from some of the mistakes reported by the task team. I must, however, indicate in general terms that the burden of where the buck stops has meant, as far as politicians are concerned, that even in cases where you may not be directly responsible for certain matters associated with your work, you nevertheless are expected to take final responsibility. I have commented to some of my colleagues about the extent to which they personally get involved, or are aware of various work that is being done at their residences through the Department of Public Works. It is common cause that works such as upgrades and general maintenance on properties, including costing and acquisition of contractors, is entirely under the direct care of Public Works officials at national and regional offices. The Minister is on record about his concerns regarding the weaknesses and levels of collusion that have resulted in inflation costs, and the poor financial controls in the department. Speaking for all of us, including you, hon members who also live in state accommodation here in Cape Town, we can agree that none of us 19 FEBRUARY 2013 PAGE: 84 of 365 is ever consulted about the work done at any of our official residences where we live as well as about the costs and the budgets associated with it ... [Interjections.] The DEPUTY SPEAKER: Order, hon members! We want to hear the speaker, please. The MINISTER OF DEFENCE AND MILITARY VETERANS: ... yet, should there be an enquiry about such costs, the impression is easily created that since money was spent on the property where you live, you are therefore somehow responsible. At times, therefore, I have found it unfair and unreasonable, given our own experiences, that there are some amongst us here who find it strange if a politician living in such a house says that they have not been aware of the nature of the work and costs done at their residences by the relevant departments. Hon members and colleagues, the responsibility entrusted to us as public representatives is too serious to be subjected to political whims and the usual temptations to gain advantage over one another. The attainment of freedom and democracy by our people, following decades of bitter struggle, was not just for a section of society, but a national achievement embraced by all of us. 19 FEBRUARY 2013 PAGE: 85 of 365 Therefore, what is our leadership task in this House in sustaining such nationalism and pride that our people were denied for so long before? We yearned to be free. It was for this reason that our leaders before us convened across the political divide in 1955 at Kliptown and declared unity in action for a future society our people yearned for. That was their leadership task. If we are to emulate the revolutionary maturity of those who drew up the Freedom Charter, the basis of our Constitution, then we should recognise that the task that history lays before us is that of uniting our people. If there is a common future for our people, then our task is to lead them on a common journey to such a future. I thank you all. Mr R A P TROLLIP: Hon Speaker and Mr President, Shakespeare wrote: The evil that men do lives after them. The good is oft interred with their bones; So let it be with Caesar. Mongameli, njengoBrutus, andizelanga kuncoma, iimbongi zakho zanele kwelo cala. Ndifunde kule veki iphelileyo Mongameli, kwileta ebibhalwe nguGqirha uNtyintyane, kwiBusiness Day, ecebisa enye imbongi yakho uMphathiswa uThulas Nxesi, esithi ... (Translation of isiXhosa paragraph follows.) 19 FEBRUARY 2013 PAGE: 86 of 365 [Mr President, just like Brutus, I am not here to sing praises, your praise-singers have done that more than enough that side. I have read last week in Business Day, hon President, the letter which was written by Dr Ntyintyane, advising one of your praise-singers, Minister Thulas Nxesi, saying ...] “It is fine if party apparatchiks choose to shine the President’s shoes, but don’t ask the electorate to help you.” Mr President, you should not misinterpret your re-election at Mangaung to mean that the electorate share this fawning adulation. Considering the challenges that face South Africans on a daily basis, you would do well to consider the words of Jawaharlal Nehru, the first Prime Minister of the independent India. He said in 1947 ... [Interjections.] ... mamela Mphathiswa ... [... listen, Minister ...] Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future? ... That future is not one of ease or resting but incessant striving so that we may fulfil the pledges that we have so often taken. The service of India means the service of millions who suffer. It means the ending of poverty and ignorance and disease and inequality of opportunity. 19 FEBRUARY 2013 PAGE: 87 of 365 These words are apposite to the challenges that face your government today, as presented so eloquently by Minister Manuel just before me. Regarding the poverty in rural areas, let me state unambiguously that the DA recognises the devastating impact of the Natives Land Act, Act 27 of 1913 and the Native Trust and Land Act, Act 18 of 1936. We acknowledge that the consequences of this legislated and systematic dispossession of black Africans’ property and the expropriation of their dignity, self-respect and freedom have bequeathed the victims of this grand larceny with impoverishment and grave disadvantage. This needs to be redressed, honourable President, much better than the ANC has done to date. Your latest promises, though, with regard to the reopening of the land claims process smack of ill-conceived and certainly unbudgeted political opportunism, especially in light of the failure of the land reform programme where the Minister involved, Minister Nkwinti, by his own admission says that 90% of these programmes have failed. Mr President, you should know that the two Ministers tasked with land and agrarian reform, Ministers Nkwinti and Joemat-Pettersson, have become renowned for tilting at windmills in a vain endeavour to find scapegoats for their own spectacular failure in this regard. The snail’s pace of land reform and the related agricultural productivity decline has much less to do with willing-buyer, 19 FEBRUARY 2013 PAGE: 88 of 365 willing-seller than it has with the cost of recapitalising failed land reform initiatives and incompetent and corrupt officials. Your public endorsement of the National Development Plan is positive. It has hopefully brought an end to your uncomfortable egg dance performed to the tune of Zwelinzima Vavi and your disagreeable lapdog, Blade Nzimande. [Laughter.] What remains for you to do is to ensure that your “mbongis” and their departments implement the plan. There is scepticism, though, and some say this is a classic case of the right plan and the wrong man. Mr President, let me warn you not to count on Minister Chabane’s Department of Monitoring and Evaluation to ensure that this happens. Kuza kufuneka ikhokelwe nguwe Mongameli [You will have to guide this, hon President]. Rather than holding separate, secret and exclusive meetings with the various agricultural stakeholders, where government commitments and intentions are almost always ambiguous, you or your Deputy President should rather have called the agitators, who are the actual originators of the unprotected strike and thuggish behaviour in the Western Cape, and explained to Deputy Minister Marius Fransman, Tony Ehrenreich and their acolytes that the destabilisation of the agricultural sector will have catastrophic job loss consequences, 19 FEBRUARY 2013 PAGE: 89 of 365 and the net result will be an increase of costs to the entire value chain, which inevitably affects the poorest the worst. Abantu abachitha umsebenzi, lutshaba lomntu wonke ohlutshwa yindlala. Aba bantu bachitha imisebenzi, amaKomanisi noCosatu, bachitha nje imisenzi yonke le mihla. (Translation of isiXhosa paragraph follows.) [People who are just messing around with jobs are the enemies of all the people who are suffering poverty. These people, the Communists and Cosatu, are busy destroying jobs on a daily basis.] Your undertakings about how you will deal with violent protests will only gain credibility if you investigate and prosecute the perpetrators of violence in the Western Cape farm worker strikes through the priority courts that you mentioned. Sibone izolo ukuba iinkokeli zemibutho yokuhlala sezibanjiwe, zimangalelwe. Siza kubona ke ngoku ukuba ezaa nkokeli beziqhuba olu dushe apha eNtshona Kapa ziza kulandelwa kusini na. (Translation of isiXhosa paragraph follows.) [It has come to our attention only yesterday that the leaders of civil organisations are behind bars they have been charged. We want to know what is going to happen to those leaders who initiated the strike here in the Western Cape. Are they going to be investigated?] 19 FEBRUARY 2013 PAGE: 90 of 365 Despite the Deputy President’s assurances to the farmers and commercial agricultural organisations that government has a vested interest in farming being profitable, the self-styled Western Cape Robin Hood, Tony “Errant Strike”, and his gang members continue to adopt the strategy that the Spanish philosopher José Ortega y Gasset classically described: “When there is a shortage of bread, they burn down the bakeries.” They demand higher pay despite unemployment, destroy the means of production and employment and strike while the fruit which pays their wages rots on the trees and vines. In Spain, for example, workers demand lower pay and chant, “Shed wages, not jobs”. Kuba kaloku abazali baseSpain bayayazi ukuba baza kuhlala emakhaya xa kungekho misebenzi. [Parents in Spain know that when there is no work, the children will stay home.] What is most galling in this regard is that Minister JoematPettersson has adopted a shop steward mentality throughout the stand-off and has abused at least R10 million’s worth of taxpayers’ money to fan the flames of unrest, instead of seeking a speedy and mutually acceptable and sustainable resolution to save an already very precarious yet economically critical sector of our economy. The eastern seaboard of this country has some of the most fertile agricultural land endowed with good reliable rainfall. This area is also home to three former Bantustans: KwaZulu, Transkei and Ciskei. These areas and the millions of people who live there remain as 19 FEBRUARY 2013 PAGE: 91 of 365 disadvantaged, unproductive and dependent as they were during apartheid. The abominable KwaZulu-Natal Ingonyama Trust Act legislates that the citizens that live on its land, like those in the former Transkei and Ciskei, are reduced to an extraconstitutional existence, where the basic and founding provisions espoused in Chapter 1 of our Constitution, are abrogated and remain a figment of the imagination of especially the women who live there. Instead of entrenching the prejudicial inequalities experienced by millions of South African citizens living on communal land, why, Mr President, don’t you start immediately to redress this by granting all people who live on communal land the ownership of their land? [Applause.] Why don’t you give all beneficiaries of RDP houses freehold title to their homes? Why don’t you ask hon Derek Hanekom why the people who farm in the Kat River area have gone bankrupt. It is because they were waiting for their title deeds that he had promised them in 1995. If economic empowerment and social emancipation is what you mean by providing a better life, you can do this one thing — simply remove the yoke of landlessness and state-designed dependency and the lives of millions of South Africans will start to improve. That is, Mr President, in the words of Jawaharlal Nehru, “if you are brave 19 FEBRUARY 2013 PAGE: 92 of 365 enough and wise enough to grasp this opportunity and accept the challenge of the future.” Ndiyabulela. [I thank you.] The MINISTER OF PUBLIC ENTERPRISES: Hon Deputy Speaker, honourable President, hon Deputy President and colleagues, in his 2012 state of the nation address, the President outlined the social and economic growth story of South Africa, which was about linking communities to small towns, from small towns to metropolitan areas and connecting provinces, as well as the movement of goods to facilitate economic transaction. This growth story recognised that we needed to change apartheid’s development patterns, skewed as they were, towards a few but big cities and provinces. In this regard, the 2012 state of the nation address recognised public sector spending as an important response to a shrinking global economy and sluggish domestic growth. Quite clearly, the 2012 state of the nation address was about outlining a new vision for inclusive growth and shared wealth, based on the progress of the previous 18 years of our democracy and the new socioeconomic challenges we faced as a nation in light of both the global economic recession, which had constrained our growth, as well as the persistent and pestilential challenges of poverty, unemployment and inequality, which had continued stubbornly to dog our social transformation. 19 FEBRUARY 2013 PAGE: 93 of 365 As you, Mr President, stated it, this year’s state of the n ation address was about reporting on the progress made since the 2012 state of the nation address, w h e n y o u outlined the new vision, and also to discuss our programme of action for 2013. It would have been total folly to present a new vision again in 2013 on top of the vision the President unveiled in 2012, which has only just started being implemented. [Applause.] But, of course, the opposition wants us to be stuck on endless visions so that they c a n turn around and ask the question: Where is the implementation? When you implement the vision, they t h e n turn around again and ask: Why is there no new vision? The infrastructure investment the President unveiled in 2012 is a moral imperative for South Africa, given the multidimensional nature of our social and economic challenges. It is pivotal to shift gear towards intensifying the struggle for social and economic freedom as we begin to usher the second transition towards the national democratic society characterised by high levels of equality, allround development and a better life for all. The President’s government has chosen a policy approach predicated on three core developmental values, w h i c h a r e : to increase the availability and widen the distribution of wealth a n d i n c o m e in South Africa; to raise the social living standards through employment and enhance the material wellbeing o f t h e m a j o r i t y , 19 FEBRUARY 2013 PAGE: 94 of 365 which will generate national self-esteem; and to expand the range of economic and social choices available t o citizens. These core values are achieved through the provision of social and economic infrastructure investment to drive economic development and growth. In the last 12 months, under the leadership of the President, through the Presidential Infrastructure Co-ordinating Commission, PICC, w e launched the intergovernmental forums of the 18 strategic integrated projects. We have seen that continued investment spending by public corporations and the broader public sector has contributed positively to economic growth and development. The key drivers are the ongoing public sector expenditure programmes, particularly the new transport infrastructure roll-out by Transnet, and new power generation capacity by Eskom. The concrete progress that has been achieved as a result of the heightened co-ordination, integration and focus - to which the President referred in his address on Thursday - has been admirable and clearly demonstrates that the vision unveiled by the President last year is finding resonance in concrete practice. 19 FEBRUARY 2013 PAGE: 95 of 365 Yet, the challenges ahead are mammoth, not least among which is the need to secure the future funding of the infrastructure programme, both through the fiscus and the balance sheets of state-owned companies, as well as through unlocking domestic and foreign direct investments just to make concrete reference to the infrastructure roll-out so as to make our people aware of the progress that has been made. Firstly, the strategic integrated project one, SIP1, is aimed at unlocking the Northern Mineral Belt with Waterberg as the catalyst, and despite recent labour unrest challenges, the Medupi Power Station is 58% complete, with a total spend of R60,4 billion, a total of 15 837 jobs. The Mokolo Crocodile Water Augmentation Project is 30% complete, with a total spend of R526,1 million, 300 jobs created manufactured and in most South of the Africa. components This of project the will dam have increase been water delivery by 37% at the end of February 2013. The De Hoop Dam and Pipeline Project are 15% complete, with a total spend of R505 million and 400 jobs created. The Komati Water Scheme is over 60% complete, with a total spend to date of R807 million, with over 300 jobs created. The Majuba heavy-haul line will commence construction this year, as the President announced last Thursday. Secondly, strategic integrated project two, SIP2, focuses on the Durban-Free State-Gauteng Logistics and Industrial Corridor. The new multiproduct fuel pipeline is on schedule, with the 19 FEBRUARY 2013 PAGE: 96 of 365 quantum spend on this project to date being Rl6,9 billion, with 2 490 jobs created. The procurement of rolling stock for general freight is at 73% completion, with a total spend to date of R2,7 billion and 159 jobs created. Fifty four per cent of local content on the manufacturing of locomotives has been secured and will strengthen Transnet engineering’s manufacturing capabilities, contribute to job creation, skills development and the creation of downstream linkages. A feasibility study and a n environmental impact assessment on the Durban Port Terminal’s Pier 1 upgrade will be completed in 2014, and R70 million has to date been spent on this project. The old Durban International Airport has been acquired and transferred to Transnet for the construction of the d ug-out port. Cornubia, the first integrated human settlement, will deliver almost 24 320 housing units - 15 000 of which will be subsidised.It has seen total spend to date of R94 million and created 554 jobs. Thirdly, strategic integrated project three, SIP3, is the SouthEastern Node Corridor Development. The manganese ore rail to the Ngqura Project intended to increase rail capacity to increase the South African export of manganese from 5 to 16 million tons has not yet commenced, but is in its final planning stage. The manganese sinter plant in the Northern Cape reached cold commissioning stage in 2012. The Ngqura Port was officially opened by the President in 2012, with further investment earmarked for a fully fledged trans- 19 FEBRUARY 2013 PAGE: 97 of 365 shipment hub. The President has already reported on Mthatha Airport. Fourthly, with regard to the strategic integrated project four, SIP 4, t h e focus is on unlocking the economic opportunities in t h e North West province. The Taung Naledi Bulk Water plant is at 50% completion, with R272 million spent and 45 jobs created. Eskom has committed to an electrification programme of 20 000 houses. The government is revitalising the hospital, clinics and schools in the province. The S’hamba Sonke Road Repair Programme has seen a Rl27 million spend to date, with a R892 million spend on t h e provincial road construction, and both projects are 20% complete. Fifthly, with regard to the strategic integrated project five, SIP5, which is the Northern Cape Development Corridor, R682 million has thus far been spent on the procurement of locomotives and wagons, with 38% local content and 734 jobs created. The Sishen-Saldanha Phase 2 Rail and P ort Expansion will commence in 2014 and current spend to date is Rl40 million. Sixthly, with regard to the strategic integrated project six, SIP6, the integrated municipal infrastructure projects, 177 facilities have been revitalised in the Eastern Cape and the project spend to date is at 22%. Five facilities have been revitalised in the Free State, 166 in KwaZulu-Natal, 150 in Limpopo, 37 in Mpumalanga, 7 in the Northern Cape and 26 in the North West. The 19 FEBRUARY 2013 PAGE: 98 of 365 S’hamba Sonke Road Repair and Maintenance Project has thus far created 32 324 jobs, with a total spend to date of R2,5 billion. Seventhly, with regard to the strategic integrated project seven, SIP7, the integrated urban space and public transport system, Johannesburg Rea Vaya has created 1 185 jobs, with a spend to date of R1,218 million. Cape Town’s MyCiTi has created 635 jobs, with a spend of R2,923 million. The eThekwini has created 45 jobs, with a spend of R397 million. Nelson Mandela Bay has created 735 jobs, with a spend of R83 million. Rustenburg has created 141 jobs, with a spend of R34l million and Tshwane has created 49 jobs, with a spend of R262 million. Eighthly, with regard to the strategic integrated project eight, SIP8, the g reen energy, the solar water heater roll-out has created 813 jobs, with a total spend of Rl,49 billion. The solar park to be located in the Northern Cape at an estimated cost of R150 billion is undergoing feasibility study. The construction has commenced on a number of green energy projects. The Cradock ethanol plant, intended to produce 90 million litres of ethanol from sorghum and sugar beet as a feedstock, has gone beyond feasibility study and will go into detailed design, followed by construction, in the second quarter of this year. Ninthly, with regard to the strategic integrated project nine, SIP 9, the e lectricity generation, Camden, K o m a t i and 19 FEBRUARY 2013 PAGE: 99 of 365 Grootvlei have been completed and commissioned, whilst Kusile has resulted in about 11 000 jobs and is at 19% completion to date. The Ingula is at 58% completion and has resulted in 2 939 jobs and the total spend to date is Rl27 billion. Tenthly, with regard to the strategic integrated project fifteen, SIP 15, e xpanding access to information and communications technology, ICT, 798 schools and 26 Dinaledi Schools have been connected and R61 million have thus far been spent on the townships and rural access to broadband and on e-government, school and health connectivity, creating 100 jobs. Lastly, with regard to the Square Kilometre Array, SKA, a total of R23l million has been spent t o d a t e on this catalytic project, creating 177 jobs and achieving 93% local content. The h o n o u r a b l e President already reported last Thursday on the progress of some of these projects and some of my colleagues will further comment on progress of other projects. What have just bee n done was picking some examples of very detailed progress achieved in implementing these massive projects that Inkosi Buthelezi suggested won’t be implemented in his lifetime. [Applause.] 19 FEBRUARY 2013 PAGE: 100 of 365 On a point of correction, Baba uShenge, these projects are actually being implemented in your lifetime and I think you should applaud us for that. [Applause.] As part of enhancing this co-ordination, integration and focus, we have submitted the Draft Infrastructure Development Bill to Parliament for public consultation and engagement by both Houses. From the lessons that co-ordination, integration and focus are pivotal to infrastructure development and roll-out, two further lessons have b e e n learned. F i r s t l y , we must never cease building new infrastructure and planning future capacity so that we never have to build new capacity under pressure when the need is urgent. Secondly, we must properly maintain existing infrastructure so that we can ensure that it has a longer lifespan. Of paramount importance is that we cannot allow this massive investment programme to be impacted by the global economic slowdown or derailed by lack of funding. We need to find ways of strengthening the balance sheets of the state-owned companies in order to reignite the private sector investment and private equity required to drive our economy both now and in the future. We have made significant strides in positioning our s tate-owned companies to drive a holistic economic growth and development process through the infrastructure investment programme. We have 19 FEBRUARY 2013 PAGE: 101 of 365 built significant capability both to plan ambitiously and rigorously a n d to implement those plans. With regard to the Rl billion port rebates announced by the President in 2012 in order to support and bolster our manufacturing sector, R796 million were claimed and Transnet remains committed to disbursing the full R1 billion discount. We invite the private sector to take up these incentives. Hon Speaker, this programme that was reported in detail is not simply about erecting cranes and lowering the cost of doing business, but it is, more importantly, about inclusive growth and shared wealth. As compared to 2010, when infrastructure roll-out was taking place in inner cities, this time a round we can see infrastructure rollout even in rural areas, distributing the wealth, income, jobs and spreading the better life to all. [Applause.] As we continue with the roll-out, t h e y o u t h is going to be absorbed into employment and skills development programmes across the country in order to address their very urgent plight. I would like to quote what the President said during the 2012 s tate of the nation a ddress: 19 FEBRUARY 2013 PAGE: 102 of 365 The massive infrastructure investment in infrastructure must leave more than just power stations, railway lines, dams and roads. It must industrialise the country, generate skills and boost much needed job creation. W i t h regard to skills, i t is noteworthy that the skills development occupies a place of pride in the infrastructure roll- out and that state-owned companies have been training more artisans in the past year than they have done in many decades. This programme, hon President, is about getting South Africa working, growing and moving. Joseph Stiglitz argued in his book The Price of Inequality, and I quote: America’s inequality, and that of many other countries, did not arise spontaneously from abstract market forces but was shaped and enhanced by politics. Politics is the battleground for fights over how to divide nation’s economic pie. It is a battle that one per cent of the wealthiest Americans w o n . That isn’t how it’s supposed to be in a democracy. Quite clearly, all over the world, people are realising the intricate link between the political and the economic system and the important fact that the political as well as economic systems need to be both fair and just. 19 FEBRUARY 2013 PAGE: 103 of 365 Now I turn back to some of the issues that were raised earlier by some hon members. On your watch, Mr President, we have seen the National Health Insurance being promulgated and it will be piloted in over 500 schools, with 600 health professionals being trained for this programme. [Applause.] We thank the President for ensuring that being poor is no longer a death sentence. [Applause.] On your watch, Mr President, the National Development Plan has been adopted. We now have a plan for the future and we know the type of South Africa our children will live in when we are gone. [Applause.] We have seen the largest infrastructure roll-out programme in the history of South Africa. [Applause.] Nobody, no matter how much they may want to lie about it, will deny the fact that this infrastructure project is a real game changer in terms of the socioeconomic situation of our people. [Applause.] In 2009, without pontificating, you introduced new HIV and Aids policies in this country - the largest in sub-Saharan Africa. [Applause.] Today, people living with HIV or Aids will have a real shot at long and productive lives. Under your leadership, Mr President, we have seen greater focus on rural development and radical changes in land reform policies. The anger from some on our left emanates exactly from the fact that they were comfortable with the Native Land Act of 1913 remaining intact in South Africa. [Applause.] We have also seen for the first time a woman, one of the best among South African women, who could occupy 19 FEBRUARY 2013 PAGE: 104 of 365 any office in this country, including the Presidency, taking over the seat of the Chairperson of the African Union, AU, and commission for the first time in 59 years. [Applause.] Mr President, what we have here is not a difference about whether your speech had content or not; we have a fundamental ideological difference about what South Africa should be like and the future we need to build. [Applause.] Our opposition outdo themselves each time with their lack of content. The hon Leader of the Opposition is very tall on insults and eloquent English, but very short on content. Thank you. [Applause.] [Interjections.] The DEPUTY SPEAKER: Order! Thank you, hon Minister. Order, hon members. Hon members, business will now be suspended for 15 minutes for a comfort break. Bells will be rung to alert members of the resumption of business. Business is now suspended. Business suspended at 16:59 and resumed at 17:017. The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: Deputy Speaker, His Excellency the President of the Republic of South Africa, His Excellency the Deputy President, hon Ministers and Deputy Ministers, hon members, ladies and gentlemen, on 14 February 2013 the President presented his state of the nation address to this House, setting out 19 FEBRUARY 2013 PAGE: 105 of 365 that government has undertaken to address the triple challenge of income inequality, poverty and unemployment. The President further set out what government is doing to give effect to the National Development Plan, which serves as our country’s vision. Sekela Somlomo ohloniphekileyo, eneneni kuliqhayiya kakhulu ukuba namhlanje ndithabathe inxaxheba kule ngxoxo kaMongameli, ngoba le ngxoxo kaMongameli ichaphazela umbandela obaluleke kakhulu kuMzantsi Afrika uphela. Ichaphazela uhlengahlengiso lomhlaba. Uhlengahlengiso lomhlaba lume ngentsika ezine Sekela Somlomo ohloniphekileyo ezizezi zilandelayo, ukwabelana ngomhlaba; ukubuyisela umhlaba ebantwini; uphuhliso lomhlaba nokuhlengahlengiswa kobuni bomhlaba. Umhlaba kweli lizwe usezandleni zabantu abambalwa, uninzi lwabantu alunamhlaba. Uhlengahlengiso lomhlaba belujongwa ngeentsika ezimbini ukususela ekuthatheni kwethu ulawulo ngentando yesininzi eMzantsi Afrika, ukuza kuma ngonyaka wama-2009 apho kuye kwamiselwa iSebe lezoPhuhliso lwamaPhandle noHlengahlengiso lemiMhlaba. Bekujongwa ukuhlengahlengiswa kwemihlaba nokubuyiselwa kwemihlaba ebantwini ngamabango. Iziphumo zaloo nto zaba kukuba siqwalesele ekubuyiseni ama-30 ekhulwini omhlaba ngowama-2014 ebantwini. Ekwenzeni le mbuyekezo siye satyeshela uphuhliso lomhlaba, oluyintsika yesithathu, kwezi zine. Loo nto Sekela Somlomo isenze sanga siyaqhwalela, sahamba kancinci. Ibangele ukuba, phantsi 19 FEBRUARY 2013 PAGE: 106 of 365 kwesikhokelo sikaMongameli U J G Zuma, olapha kuleNdlu nathi namhlanje kubekho lenkqubo esisicwangciso ebizwa ngokuba yiRecapitalisation and Development Programme. Kwakhona phantsi kwesikhokelo sakhe uNxamalala kubekhona ukuqwalaselwa kobuni bomhlaba ukuze sikwazi ukubanendlela yokusondeza abantu bakuthi abantsundu kulo mhlaba. Yiyo le nto phantsi kwesikhokelo sakhe siphethe siqulunkqa lento kuthiwa esiNgesini yi- four-tier land tenure system, ethetha ngeendidi ezine zomhlaba. Esokuqala isigaba kukuba umhlaba osezandleni zikarhulumente, singawuthengisi, siqeshise ngawo kubantu bakuthi ukuze sibancedise bakwazi ukwenza imveliso kuwo. Okwesibini, kukuba umhlaba osezandleni zabantu mawulingane, kungabikho oohili bangaka! Izigebenga zingaka! Makulinganwe ngabantu apha ebunini bomhlaba. Loo nto ithetha ukuba kubantu abanomhlaba, kuza kubakho uphahla oluza kunqanda ukuba abantu bangabingooHlohlesakhe. Kukho abantu abaneefama ezincinci, nabanye abaneefama eziphakathi kunye nabaneefama ezinkulu kakhulu, kodwa bonke aba bantu barhweba ngokufanayo. Ngoko ke yonke le nto sixakeke yiyo ngoku yokuba kuqwalaselwe, ifama encinci, kuba imihlaba ayifani, inorthern Cape ayifani nesouthern cape neKwaZulu Natal, iimozulu azifani, umhlaba awufani kunye nezinto abantu abafama ngazo azifani. Kufuneka ukuba 19 FEBRUARY 2013 PAGE: 107 of 365 kujongwe ezi zinto ukuba umfama ziza kumbeka phi xa kuthethwa ngophahla lobuni bomhlaba. Abantu basemzini akufunekanga ukuba babe ngabanini bomhlaba kweli lizwe, kufuneka baqeshiselwe. Okwesine, kukhona abantu bakuthi apho bahlala khona neenkosi, sibona ukuba inani linyukile laba bantu abanikwa umhlaba. Aba bantu ngabantu abakhokelwa ziiCPA neeTrust, kukho nalapho iinkosi zihlala khona. Lo mhlaba kufanele ukuba kubonakale indlela eza kuveza ukuba abantu abahlala kuwo, ngabantu abanelungelo nemvume yokusebenzisa lo mhlaba, babonisane ukuba lingakhuseleka njani ilungelo labo lokusebenzisa umhlaba. Loo nto yenza ukuba ngeli xesha kufaneleke sibonisane ukuba siza kwenza kanjani ukuze aba bantu bakwazi ukusebenzisa lo mhlaba. Ukuze bakwazi ukuya ezibhankini; bakwazi ukuwenza ubelilifa labantwana babo; bakwazi ukuba bakhuseleke nokuba utata okanye abazali bonke beswelekile kusele abantwana bodwa. Ngoko ke, uMongameli usikhokelele ekubeni sijonge kanye encakrancakreni ukuba abantu bakuthi bafikelela kanjani emhlabeni welizwe labo. (Translation of isiXhosa paragraphs follows.) [Hon Deputy Speaker, it is indeed a great honour for me today to be taking part in the debate on the President’s state of the nation address because it touches on something very important to the whole of South Africa, namely land reform. Land reform has four pillars 19 FEBRUARY 2013 PAGE: 108 of 365 which are the following: land redistribution, land restitution, land development and land tenure reform. The largest portion of land in this country is in the hands of a few, and the majority is landless. From the time we assumed democratic power in this country up to 2009, when the Department of Rural Development and Land Reform was established, land reform had two pillars. They were land reform and land restitution through land claims. The result was that we focused on the restitution of 30% of the land by 2014. In the process of land restitution we did not pay attention to land development, the third of the four pillars. That, Deputy Speaker, created an imbalance and slowed the process. As a result of the leadership of President J G Zuma, who is present in the House today, we have today what is called the Recapitalisation and Development Programme. Again under the leadership of Nxamalala, President Jacob Zuma, attention has been paid to land tenure so that we can find a way of giving black people access to land. That is why under his leadership we have finalised what is called the four-tier land tenure system, which applies to four types of land. The first tier relates to state land, which we should not sell but lease out to our people and help them to use it for production purposes. The second one applies to land in private hands, which 19 FEBRUARY 2013 PAGE: 109 of 365 should be evenly distributed so that there are no big landowners and small landowners, with the difference in amount of land owned captured in the isiXhosa nursery rhyme that goes, “Oohili bangaka, izigebenga zingaka!” There should be equality in terms of land ownership. This means that with regard to land ownership, there will be a ceiling so as to stop people from becoming self-serving land barons. There are people with small, medium and big farms, but all these people are involved in commercial activities. Therefore, we should take all these matters into consideration – some farms are small; earth types differ; weather conditions in the Northern Cape, the southern Cape and KwaZulu-Natal differ; and commercial products differ – when dealing with the issue of putting a ceiling on landownership. Foreigners must not own land in this country, they should be leaseholders. Fourthly, we realise that the number of people who are given land in areas controlled by chiefs has increased. There are also people who live on land controlled by the CPA and trusts and on land controlled by chiefs. We should make sure that the people who live on such land are people who have the right to use it and find a way to secure this right. We have to find a way to make sure that such people are able to use such land productively, are able to use it as collateral when 19 FEBRUARY 2013 PAGE: 110 of 365 approaching banks for loans, and are able to secure the land as inheritance for their children when parents have passed on. Therefore, the President has provided leadership in making sure that people do access land in this, their country.] Farms transferred to black people and communities through the various redistribution programmes from 1994 up to 31 January 2013 amounted to 4 813 farms, which translates to 4,123 million ha, benefiting 230 886 persons, of whom 50 440 are women – accounting for 1,7 million ha in the hands of those women – of whom 32 563 are young people, and of whom 674 are persons with disabilities. To acquire this land, the state spent R12,9 billion. Of the 4,123 million ha acquired, the government has, since 2010, recapitalised 696 farms into full operation, employing 4 982 permanent workers, and investing R1,8 billion in infrastructure, inputs and strategic support. Of the 696 recapitalised farms, 332 are on cropping and 364 on livestock. The gross income generated by these farms, which can be accounted for as of 31 January 2013, is R126 million. Land acquired by the state for the restitution of land rights since the inception of the programme amounts to 4 001 land parcels – that is properties – translating into 1,443 million ha. Of these beneficiaries 136 968, which are female-headed households, and 672, 19 FEBRUARY 2013 PAGE: 111 of 365 which are persons with disabilities, have benefited. A total of R16 billion has been spent on the programme thus far. This went towards settling 77 148 claims, spending R10 billion on land acquisition, and R6 billion on 71 292 financial compensation claims. The total of 5 856 settled claims, translating into 1,443 million ha, is land restored. Hon members can already see the difference between 5 856 and 71 292 claims, which are for financial compensation, that claims are weighted in favour of financial compensation. This clearly shows that claimants have chosen financial compensation over land restoration. This is a reflection of poverty, unemployment and income want. In your state of the nation address, Mr President, you clearly stated these as being at the centre of the National Development Plan’s transformation focus. Taking into consideration the above analysis, it is clear that, through the restitution process, the state was a compelled buyer. Prices in restitution were far higher than those paid in terms of strategic land acquisitions under the redistribution programme. This is a clear indication that where the state is able to strategically acquire land, it is able to acquire more land for less money, as the state is not a compelled buyer. Even by our own admission, we could have bought more, if the principle of a just and equitable redistribution was actively applied. [Applause.] You mentioned this to be the direction that government is going to follow this year, Mr President. 19 FEBRUARY 2013 PAGE: 112 of 365 In terms of the new land tenure system for the country, we are introducing the four-tier land tenure system, which I spoke about earlier. The President, during the state of the nation address, announced the reopening of the lodgement of land claims for those who could not claim during the first window of opportunity. Ubalulekile lo mbandela kuba uMongameli uthi kuza kuphinda kuvulwe ithuba lokuba abantu bakuthi babange imihlaba, kubantu abaphoswa lithuba lokufaka amabango emihlaba. Loo nto iza kwenzeka kulo nyaka. Esi saziso sikaMongameli sineendidi ezimbini. Eyokuqala yeyo kuvula, khange kubekho nalinye ilungu kwanga angasekhohlo ebelikhe lawuphendula lo mcimbi, ndiyabona ukuba ushushu. Bayawoyika lo mcimbi wokuvulwa kwamabango emihlaba kuba ngumcimbi onzima. Eyesibini ithi kuza kukhangelwa inyoba yokuba njengokuba uMthetho wezemiHlaba yabaNtsundu we-1913, Natives Land Act, inguye nje iphahla, uza kuhlala kuba uMgaqo-siseko umile uyalawula. Ithi le nto kodwa, kukhona iiHertage Sites, kukhona iiHistorical Landmarks, kaloku iimfazwe zange ziliwe kwi-13% womhlaba, zilwelwe kuma-87% womhlaba. Kulapho zikhoyo iilandmarks zembali yabantu beli lizwe. Okokugqibela uthi uMongameli, kukho abantu abanga maKhoi namaSan abalahlekelwa ngumhlaba kudala, phambi kwe-1913, baza kunikwa inyoba nabo bakrobe ukuba zeziphi na iindawo ezinokubuyiselwa kubo. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.) 19 FEBRUARY 2013 PAGE: 113 of 365 [It is important to note what the President has said, that the lodgement of land claims will be reopened for the people who missed out on the first window of opportunity. The President’s announcement has two parts. Concerning the first part, that is, the reopening of the lodgement of land claims, not even one member on my left responded to it. I think it is too hot for them to handle. They are scared to respond because it is an emotive issue. The second part is that in spite of the Native Land Act, the principal Act, the Constitution reigns supreme. We have heritage sites and historical landmarks, but remember that the wars were not fought on 13%, but on 87% of South Africa’s land. That is where the historical landmarks of this country are. Finally, the President has also announced that the Khoi and San people, who lost their land long before 1913, will also be given an opportunity to make land claims. [Applause.]] Of the many dire socioeconomic consequences of the Natives Land Act, the following stand out: Firstly, it destroyed a fledging class of African farmers; secondly, it destroyed the environment; and, thirdly, it placed black people, particularly Africans, in a situation of abject and grinding poverty. Therefore, to reverse this legacy means rebuilding the class of black farmers, rebuilding the environment, and deepening production 19 FEBRUARY 2013 PAGE: 114 of 365 discipline for food security and sovereignty. The reopening of the lodgement process and the exceptions to the 1913 Native Land Act will require massive preparatory work, which has commenced in earnest. Unlike in the first opportunity, people will be assisted with a manual on land claims in all 11 official languages, a manual that participants at the first preparatory workshop called the citizens’ manual for land claims. Another component or element of the campaign is oral history, which will be collected from those who have lived through the catastrophic effects of the 1913 Native Land Act. The 11 740-strong National Rural Youth Service Corps, Narysec, youth that the President referred to in his state of the nation address, will be distributing the citizens’ manual and collecting the oral history. Furthermore, there are institutions that and persons who have already come forward to be part of this campaign, including the SABC, Iziko Museums, Unisa, the National Heritage Council, the Departments of Justice and Constitutional Development, Public Works, Arts and Culture, and the Department of Women, Children and People with Disabilities. There is a perception that land reform has failed, especially by the opposition DA. Our contention is that it has been slow, not failed. [Interjections.] We have completed the state and private land audit. [Interjections.] Here are the results, a beautiful ... you can see it here. 19 FEBRUARY 2013 PAGE: 115 of 365 Oohili bangaka! Izigebenga zingaka! [IsiXhosa nursery rhyme, small and big.] You can see the brown. It represents privately owned land and who owns it. The majority of the people who own it are white. [Applause.] You can see the Northern Cape is privately owned land. Here is the Northern Cape. Look at the Eastern Cape, Western Cape, Limpopo, and Free State. [Interjections.] The majority of this land is owned privately by whites. [Applause.] Therefore, our contention is that it has been slow, but it did not fail. Mr G G HILL-LEWIS: Deputy Speaker ... The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: We have completed the state and private land audit and the statistics indicate that approximately 26 million ha are state land. The DEPUTY SPEAKER: Hon Minister, there is a point of order. Mr G G HILL-LEWIS: Deputy Speaker, will the Minister take a question? [Interjections.] The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: No, Deputy Speaker. 19 FEBRUARY 2013 PAGE: 116 of 365 The statistics indicate that approximately 26 million ha are state land and that a whopping 96 million ha are privately owned land. This means the state owns 22% of the land, whilst 78% is in private hands, which shows that South Africa has predominantly privately owned land. Outstanding in the audit process is the breakdown into nationality and race in the privately owned parcels or properties. There is an institutional challenge here. Again it has a lot to do with the fragmented land management services of our country. The Land Management Commission is meant to address this. That is why we say that it will be addressed soon. The political economy of restitution is that the state has paid twice as much for land for restitution as it has paid for land for redistribution, because the state is a compelled buyer. The numbers clearly show who has benefited from the programme – the supporters of the opposition DA. The small, white landed class has benefited R10,8 billion from land acquired, whilst the majority – 71 000 working-class claimants – benefited a lousy R6 billion. [Interjections.] This is what the Office of the Land Valuer-General and the other institutions will address, through the use of the just and equitable principle in accelerating the land reform process. In addition, the government will establish district land reform committees, as proposed in the National Development Plan, to contribute to and accelerate sustainable land reform. 19 FEBRUARY 2013 PAGE: 117 of 365 In 2010, government introduced the Recapitalisation and Development Programme, which serves to provide emerging farmers with a range of support packages in terms of inputs, strategic support and infrastructure. Going forward, the government will establish the Rural Co-operatives Finance Facility to provide much needed financial and other technical support to the fledgling class of smallholder farmers and co-operatives in both commercial and communal land spaces. During interactions, emerging smallholder farmers and co-operatives have expressed a wish that the government would procure from them so that they could grow and be sustainable. The state of the nation address delivered by the President on 14 February is both reflective and programmatic. This approach has caught the hon members of the opposition off guard. [Interjections.] Mr President, don’t lose focus. If you were doing badly, they would be showering praises on you. [Laughter.] You would have been sitting with the most dubious honour of being praised by people who have benefited for centuries in this country from the resources of this land: the members of the opposition DA. I thank you. [Applause]. Mr S C MOTAU: Madam Deputy Speaker, unemployment remains the greatest threat to South Africa’s democracy and it mocks the promise of a better life for all. President Jacob Zuma’s state of the nation address showed why South Africa did not have confidence in his government to create jobs. 19 FEBRUARY 2013 PAGE: 118 of 365 Baswa ba Afrika Borwa ba lla ka megokgo. Ba llela mešomo. Kgopelo ya ka ke gore rena re le baemedi ba setšhaba Palamenteng ye, re kwe sello sa bona. Ge re ka se se kwe gomme ra se ba thuše gore ba hwetše mešomo, gona naga ye ya gaborena e tla buna masetlapelo gomme demokrasi ye ya rena ya folotša. (Translation of Sepedi paragraph follows.) [Young people in South Africa are complaining. They are complaining about the lack of jobs. As the representatives of the public in Parliament, we have to respond to their concern. If we do not respond to their concern and help them find jobs, our country will be in crisis and our democracy would have failed.] The National Planning Commission, NPC, believes that the country can create 11 million jobs by 2030. This would be achieved by building partnerships between the public sector, business and labour to facilitate, direct and promote investment in labour-intensive areas, and by strengthening the functioning of the labour market to improve skills acquisition, match job seekers and job openings and reduce conflict. To achieve the objectives of the National Development Plan, NDP, requires leadership to implement change and, above all, to inspire every South African to make medium-term sacrifices for longer-term rewards. The President’s address last week failed on all three 19 FEBRUARY 2013 PAGE: 119 of 365 counts: leadership, implementation and the ability to inspire sacrifice. The National Planning Commission expresses the challenge of adaptive leadership pointedly: “Leaders, especially in government, must also face up to difficult decisions and trade-offs.” Indeed, this is the time for tough decisions and trade-offs if we are to fight and defeat unemployment. This will require all of us to make sacrifices for the national good. We must review the labour laws to make them job creation-friendly. One of the most meaningful definitions of inequality in South Africa today is those who have jobs and those who do not. We need to guard against the employed being unable to imagine the plight of their fellow South Africans who don’t have jobs. As painful as it is, we need to recognise that the world has changed. Many workers in the European Union, for instance, are being asked to work fewer hours to allow young people to enter the job market. Global competition, cheap goods made in China and India and technological innovation are also playing a part in changing the labour environment. People are being given greater flexibility to manage their working time. Many working people no longer wish to be in traditional permanent employment. Our labour laws need to adapt to this growing trend, not go against the grain of reality. As 19 FEBRUARY 2013 PAGE: 120 of 365 legislatures, our primary role must be to make sure that all workers are treated fairly and paid appropriately. In a job-stressed economy such as ours it would be an abdication of responsibility for this Parliament to pass a law that denies even one South African a job opportunity. This is exactly what the ruling party’s alliance partner, Cosatu, wants us to do. The union federation wants Parliament to pass a law banning private employment agencies, or as we like to call them, labour brokers. I believe such a law will clash directly with a constitutional push for every citizen to access work opportunities. Section 22 of the Constitution of the Republic of South Africa is very clear on this matter: Every citizen has the right to choose their trade, occupation or profession freely. The practice of a trade, occupation or profession may be regulated by law. The President must impress upon the ANC alliance partner, Cosatu, to support the regulation of labour brokers as proposed in the amendment to the relevant section of the Labour Relations Act. The government must work diligently to remove noncompliant agencies. For the sake of labour market peace and stability, the Labour Relations Act must also be amended to replace the “winner takes all” majoritarianism entrenched in our collective bargaining system. 19 FEBRUARY 2013 PAGE: 121 of 365 The Marikana tragedy was a lesson we must heed. Non-majority unions can no longer be ignored. They must be included in the collective bargaining processes. So, let us never fear to negotiate; let us never negotiate out of fear. With cool tempers, we must reach a consensus on the principle of non-majority union representation. We must determine the relevant thresholds for recognition and participation in collective bargaining. This country cannot afford another series of very costly violent unprotected strikes such as the ones we experienced last year. South Africa can rise to these challenges if and only if we have the courage to summon forth the political will. Here I have to say: No amount of talking and spinning can explain away the Nkandla scandal. No amount of praise-singing and fawning on President Jacob Zuma will change this fact. I thank you. [Applause.] Mr I S MFUNDISI: Deputy Speaker, honourable President and the Deputy President, hon members, listening to the delivery of the address by the President, one was left astounded as to whither this country is destined. Whilst in some circles it is expected that repetition enhances assimilation and understanding, one never bargained for such repetition from such an office or to such an extent. On an occasion like a speech from the head of state, people expect pertinent issues to be addressed. Millions of the unemployed look forward to be reassured that employment is within reach, not the 19 FEBRUARY 2013 PAGE: 122 of 365 monotonous and sterile saying that there has been an economic meltdown. All they need is to earn an honest living through the sweat of their brow as they were promised or that they would get better jobs if they voted for the party in question. Now is the time to deliver on such a promise. Victims of crime want to know if there will be urgency in ensuring that justice is carried out. They live on the maxim that justice delayed is justice denied. Parents want to know when their children will receive decent education. The hackneyed statement of good results carries no weight when children are made to pass at 30%. Imagine a doctor who has to operate on a patient whilst he knows only 30% of what has to be done. [Laughter.] This applies to all professions. When people opted and voted for democracy, they never imagined that they were getting themselves into some form of adulterated education. The issue of e-tolling that is about to turn the country into a battlefield went unsaid by the President, as if it is a nonevent. Could it be that it does not matter, as those in charge go past those existing tollgates without having to stop? To the average citizen, it is these tollgates that cause concern and the President missed a golden opportunity to address it. 19 FEBRUARY 2013 PAGE: 123 of 365 It is not a matter to be left untouched when Cosatu, the affiliate of the ruling party, turns our roads into slow drives at the drop of a hat. The fact that the National Development Plan has been accepted by all in this country cannot be gainsaid. The rub lies in its implementation. The question is not how those millions of jobs will be created; it is the detail that has to come forward. We reiterate it here and now that the NDP was put together in the most democratic and consultative way. The envisaged implementation of the National Health Insurance Plan in 2014 was set for a big surprise when hospitals were imploding with inefficiency. Whether you go to George Masebe Hospital in Limpopo, Moses Kotane in the North West, Charlotte Maxeke or Chris Hani Baragwanath in Gauteng, it is all ineptitude at its best. One wonders where the wisdom is in naming these failing institutions after stalwarts of the struggle when people who work there have no pride in them. Surely those after whom these centres have been named are turning in their graves because of this disgrace. We in the UCDP believe that teaching is a labour of love. It boggles the mind that the President can go to such lengths to justify striking by teachers and virtually retract or modify the resolution to declare teaching an essential service in the way the expression is known worldwide. As much as the teachers have a right to strike, 19 FEBRUARY 2013 PAGE: 124 of 365 the pupil’s right to education and learning is equally entrenched in the Constitution. The interests of both parties have to be addressed and met by government. Ordinary citizens are always told that this government has, in an unprecedented manner, provided electricity to so many houses in so many years. The very citizens at Seolong, Makoshong or even at Sakutswane are surprised when the same government that boasts of providing electricity claims that its hands are tied when it comes to tariff hikes. We all support the strong words the President used in speaking against children and women abuse. We hope and believe that the instant and specialised courts that the President spoke of are not only a sweetener and measure to appease the aggrieved. Let us see them spring into action. Notwithstanding that the Presidential Infrastructure Co-ordinating Commission identified 10 major roads in the North West as a priority last year, nothing has come out of that. The Koster-Lichtenburg road, which was due for completion before the 2010 Fifa World Cup, is yet to be completed and has deteriorated further. This is one route that could serve as an alternative to the most expensive tollgate in the Republic of South Africa, the Swartruggens Tollgate. It is high time that the priority status of the road is reprioritised. Quite interestingly, even Minister Gigaba, in his 19 FEBRUARY 2013 PAGE: 125 of 365 recitation on the achievements of the party in these other things, said nothing about this. The UCDP welcomes the envisaged filling of all vacant posts in the criminal justice system, but pleads that they should be men and women of substance. In the case of the National Director of Public Prosecutions, we pray that it be someone who will, at least, complete the set term of office. So far, almost all of them left office with their heads hanging in shame. We have noted with trepidation that the new tax regime is on the way. We shall watch this space! Come next week we will have our eyes wide open. [Applause.] The MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Madam Deputy Speaker, the President, the Deputy President, hon members, I would like to dedicate this speech to my former boss, Mrs Phyllis Naidoo, who employed me as a young article clerk way back in the seventies. May her soul rest in peace! This year’s state of the nation address is significant in many respects. Not only does it reflect on the strides we have made and challenges that we have encountered in the past year, more importantly, it provides an important yardstick by which the country’s transition from apartheid colonialism to a national democratic society must be measured. This assessment becomes 19 FEBRUARY 2013 PAGE: 126 of 365 critical as we approach the 20-year anniversary of our constitutional democracy. A concise and an honest reflection of where we come from gives us a better understanding of our destiny, as postulated by the National Development Plan. I’m sure I am speaking for everyone in this House when I say that the National Development Plan has succeeded in marshalling all of us around the same vision for a better country and a better future in the same way that the 34 Constitutional Principles that underpin our Constitution marshalled political opponents to a historical political settlement 17 years ago. It is therefore befitting that the National Development Plan gets similar acclaim as the 34 Constitutional Principles that shaped our constitutional destiny. The National Development Plan is our cherished ideal of a nonracial, nonsexist, equal and prosperous society, an ideal that many laid down their lives for, in order for all of us to enjoy the fruits of democracy. Our transformative Constitution envisions a future where no child will attend school under a tree; everyone will be free from violence; and every person will realise his or her potential. I must hasten to caution that it would be tragic to share a common vision of where the National Development Plan is leading us to without understanding where we come from, a feat which our President has articulated so impeccably when he delivered his trend-setting state of the nation address this past Thursday. 19 FEBRUARY 2013 PAGE: 127 of 365 The tabling of the National Development Plan in November 2011 occurred just before the commencement of the 100 years celebration of the struggle against colonialism and apartheid led by the ANC. The forces of colonialism and apartheid on the one side arrayed themselves against the forces for freedom and democracy on the other side. It was an epic confrontation which over time preoccupied the global agenda and culminated in heroic stunts by the United Nations when it declared apartheid a crime against humanity and a threat to world peace. On the occasion of the debate on the state of the nation address, it is important to reflect on these historical realities because sometimes we get lost in the maze of political expediency and forget peaceful democratic breakthrough of 1994 were achieved primarily because we collectively put aside our differences and reached out to one another. We triumphed over our differences because we all focused on the vision portrayed in the Freedom Charter, which yielded our world-acclaimed Constitution. It was the recognition that in spite of the untold suffering, strife and racial hatred sowed by apartheid, we all became bound by the vision of a shared constitutional destiny. We must spare no effort in forging the same unity and common purpose in ridding our country of the triple challenge of poverty, inequality and unemployment which permeate the diagnostic review that culminated in the adoption of the National Development Plan by 19 FEBRUARY 2013 PAGE: 128 of 365 our people. This triple challenge reaffirm what our President and world statesman Nelson Mandela stated when he signed our Constitution into law, and I quote: Out of such experience was born the understanding that there could be no lasting peace, no lasting security, no prosperity in this land unless all enjoyed freedom and justice as equals. Our transformative Constitution is a commitment to save our people from the poverty trap and the vicious cycle of inequality perpetuated by the legacy of apartheid and colonialism. We cannot delay this promise any longer. The lessons of the Marikana tragedy, to which our President alluded in his address, attest to the impatience that was waiting to implode. It is for this reason that the ANC, in its conference in Mangaung in December 2012, adopted a robust programme geared to transform our socioeconomic landscape. This programme is premised on the Bill of Rights enshrined in our Constitution, which states that: This Bill of Rights is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom. As the ruling party, it is our proud heritage that the African Claims Principles of 1943 and the Freedom Charter of 1955 informed the golden thread of our internationally acclaimed Constitution. We 19 FEBRUARY 2013 PAGE: 129 of 365 are all enjoined to ensure its practical realisation in the experiences of all South Africa’s people. We as the ANC will therefore leave no stone unturned in living up to this commitment of a better life for all and to improve the quality of that life for all citizens and free the potential of each person as we are required to do by our Constitution. Madam Deputy Speaker, through the agenda it has adopted at its conference and which will translate into a government programme of action, the ANC seeks to reverse the legacy of the Natives Land Act and restore people to what is rightfully theirs through the application of a just and equitable principle. It is in this context that the land reform initiatives, including the reopening of the lodgement date - as the Minister has indicated - will become the priority of our government. The Land Claims Court will also be strengthened to develop and enhance an appropriate land jurisprudence that has the effect of full restoration to those who were arbitrarily disposessed of their land. In dealing with land reforms, we will be guided by our Constitution, which enjoins our government to implement compensation that is just and equitable, and reflects an equitable balance between the public interest and the interests of those affected. In spite of the challenges of high levels of poverty and the continued socioeconomic vestiges of the past, we have in place state machinery across the three branches of the state, which is capable 19 FEBRUARY 2013 PAGE: 130 of 365 of delivering on the principles and mandate of our Constitution. In doing so, these equal branches of the state are bound together by the Constitution, which is a non-negotiable framework within which we must continue to express our political differences as we endeavour to build a better life for all. Hon members, after dealing with our contentious issues during the crafting of our new democracy, it is essential that none amongst us politicises to the point of eroding the fundamental principles and values of our Constitution such as the Bill of Rights and the principles of the separation of powers as basis for a just order and peace and stability of our constitutional democracy. It is common cause that any false alarms about what are supposedly threats to values of the Constitution, including the principle of the separation of powers, may in themselves, ironically, be the actual threat to our democracy. We must take this opportunity not only to reassure our people about the importance and place of our Constitution in our democracy, but also to implore all hon members not to create the impression that anyone amongst us is about to undermine the Constitution when the empirical evidence not only hails the ANC as its originator, as the Africans’ Claims could attest, but also as its architect, champion and defender. 19 FEBRUARY 2013 PAGE: 131 of 365 Hon members, the legitimacy of our constitutional democracy rests on all of us across the three arms of the state, as well as on the shoulders of each and every citizen of this country. In our own respective ways, we must endeavour to ensure that the Constitution is a living document, one that requires all our people to put their shoulder to the wheel to ensure its survival and longevity well into the future. The Constitution is the supreme law of the land and any act or conduct which is contrary to it is invalid. Importantly, we must all be mindful of the fact that the Constitution not only enshrines rights of citizens, but that concomitant with these rights are duties that must be observed by all. It is therefore fundamental that while the Constitution enshrines the right of assembly, demonstration, picket and petition, this right must be exercised peacefully and unarmed as the President indicated in the state of the nation address. This Constitution does not sanction any protest that violates the freedom and security of another person, lead to injury or death of persons or damage to property, regardless of the reason for such protest action. It is therefore important that the state exercises its authority to ensure respect for the Constitution and the law. The Justice, Crime Prevention and Security cluster will leave no stone unturned in its endeavour to maintain peace and stability and to protect the rights of innocent citizens and private and public 19 FEBRUARY 2013 PAGE: 132 of 365 property. Measures are already under way that include the enhancement of the capacity of law enforcement agencies and ensuring an integrated approach to fighting crime and lawlessness. These measures will be unpacked in the next few weeks when the JCPS departments announce their policy statements and plans for the 201314 financial year. Our government also has adopted a zero tolerance approach to corruption, which is threatening to erode the fruits of our hardearned democracy. The reality is that corruption is a matter which we must collectively embark to uproot as government, and we have taken various measures in this regard. Before I conclude, let me address the incidents of rape and violence against women, which are reaching alarming proportions in our country. We are moving steadfastly to combat this barbaric conduct by merciless perpetrators who show no respect for the right of women to enjoy the freedom of their security. We have taken the conscious decision to re-establish sexual offences courts to complement the work of the Sexual Offences Unit in the police. We are in discussions with the judiciary to ensure that sexual offences cases are placed on a prioritised roll, that we strengthen the case flow management system to ensure that the chain from investigation to trial stage is watertight. [Applause.] We are also considering measures to strengthen our legislative framework. These 19 FEBRUARY 2013 PAGE: 133 of 365 include aspects relating to bail, admission of evidence and sentencing of perpetrators of this heinous crime. I have confidence in the President of the Republic. [Applause.] The ANC has confidence in the President of the Republic. [Applause.] The people of South Africa have confidence in the President of the Republic of South Africa. [Applause.] This is evidenced by the overwhelming majority that our President and the ANC amassed during the 2009 elections in which the ANC got 1 million votes more than it did in the previous elections in 2004. [Applause.] Those who are barking from the sidelines are in denial and I would like to remind them of a stanza from Maya Angelou’s poem. I quote: You may write me down in history With your bitter, twisted lies, You may trod me in the very dirt But still, like dust, I’ll rise. I thank you. [Applause.] Mr S MOKGALAPA: Mr Speaker, honourable President, the widespread and pervasive corruption is wrecking the capacity of the state to deliver services to the people of South Africa. President Zuma’s dithering on corruption goes to the essence of his leadership. 19 FEBRUARY 2013 PAGE: 134 of 365 Because he is compromised, he lacks the strength for this fight. The South African people do not have confidence in the President to tackle corruption. The harsh reality is that on this President’s watch, corruption has become systemic in all spheres of government, nationally, provincially and locally. Many local municipalities spend a lot of taxpayers’ money on commissions of inquiry. This in itself is absurd because if the President decisively dealt with corruption, there would be no need to have inquiries. Undermining the principles of transparency, the recommendations and reports made by these commissions are not even made public. These recommendations are not even implemented, which begs the question: What is the point, Mr President? Examples include the Municipalities of Tshwane, Mosoma and Ntsebeza reports, respectively. Neither report has been released, despite the fact that all are said to contain damning allegations of corruption and maladministration. Systematic monitoring of corruption is poor. With only half of government’s departments keeping databases on corruption, this means that we do not know the full extent of the corruption. The eThekwini Manase report has yet to see the light of day. This secrecy and inaction by government in turn often incites violence and protests. 19 FEBRUARY 2013 PAGE: 135 of 365 Batho ba lapisitswe ke bobodu. Ba batla puso e e emelang ditlhoko le go tlhompha ditokelo tsa bone, ka go direla setšhaba. (Translation of Setswana paragraph follows.) [People are dissatisfied with the rate of corruption. They want a government that protects and respects their rights of access to basic services.] The lack of intergovernmental relations is a source of concern because this leads to underspendin; lack of planning, alignment and collaboration. This in turn leads to duplicate projects and programmes that waste taxpayers’ money. The President, in his reply, must spell out how he will work to provide better co-ordination between the spheres of government and the departments. Corruption is endemic in the Public Service and government should act and walk the talk. It is an indictment that in this government nearly 2,5 million people do not have access to basic sanitation. This is nearly 20 years after the advent of our democracy, especially in the rural areas. The government is working backwards with the rectification programme. Approximately R1 billion is used for rectification of shoddy workmanship by contractors who are appointed for their political connections with the ANC. The lack of monitoring, inspections and accountability are the direct causes of this fruitless and wasteful expenditure. People are 19 FEBRUARY 2013 PAGE: 136 of 365 being robbed of their right to access to decent housing through corruption and irregular tender contracts. Corruption in housing is very endemic, from the illegal sale of land to the manipulation of beneficiary lists and tender entrepreneurs. Those are the norms in housing. A clear example of this was the R900 million tender in Limpopo that was awarded to friends and allies of politicians through the rectification programme of precisely the same amount. The Good Agricultural Practices, Gap, market is an important market that has been neglected by government. The President boasted last week that R126 million has been set aside for the Gap market programme. This is pathetic when you consider that this is almost half of what is being spent on his Inkandla compound. Almost 10 000 people could have been accommodated, which means 2 500 households, Mr President. The R1 billion guarantee fund and 83 000 subsidy scheme has not been implemented by provinces since the announcement last year. Above all, the provinces have not spent 70% of their allocated Human Settlement Development Grant. Moreover, mostly, R7 billion was allocated for the Urban Settlements Development Grant, USDG, for the upgrading of informal settlements, but only 32% of informal settlements have been upgraded thus far. This is a shame. In conclusion, all of these point to one systematic issue, which means the systemic disintegration of the government’s human 19 FEBRUARY 2013 PAGE: 137 of 365 settlements policy under this President. And South Africa has lost confidence in him to root out corruption when and wherever it manifests its ugly head. Thank you. [Applause.] Mr K J DIKOBO: Hon Speaker, honourable President and Deputy President, hon members and guests, indeed the year 2013 marks 100 years of the notorious Natives Land Act of 1913. But 2013 also marks 19 years since the first democratic elections in our land. For many of us, the primary reason for the liberation struggle was land dispossession. We know that there might have been those who were more interested in fighting for the sharing of toilets and other amenities between blacks and whites. It therefore follows that, for Azapo, the matter of land restitution was supposed to have been item number one on the agenda of a free South Africa. We said then that it was wrong to entrench land dispossession with clauses such as the willing-buyer, willing-seller principle. We said then that it would not work. We were therefore heartened by your admission, Mr President, that the “willing-buyer, willing-seller" principle does not work. There is a need to fast-track land restitution, Mr President. We have also taken note of your concerns about food security and we agree. However, we want to disabuse the nation of the notion that black ownership of land and farms represents a threat to food security. The problem is lack of post-settlement support to communities that had land restored to them. We have also noted with 19 FEBRUARY 2013 PAGE: 138 of 365 concern how certain individuals and groups have hijacked land restored to communities, with some selling sites to unsuspecting community members. Communities claim that they have reported such acts to the authorities, and nothing is being done. The community of Masakaneng outside Groblersdal is a classical example of that. On education, Mr President, Azapo welcomes the announcement that by the end of the financial year, 98 schools shall have been build. We also welcome the fact that 40 of those schools are in the Eastern Cape, replacing the infamous mud schools. It is actually a disgrace, Mr President, that 19 years after the democratic elections, we are still talking about mud schools. It is even more worrying that government and the Department of Basic Education first had to be dragged to court in order to do what should have been an obvious thing to do. While we welcome the fact that Kha Ri Gude has reached 2,2 million people between 2008 and 2011, Azapo would like to know: What was the impact of such an encounter on the lives of those people? Are we able to quantify the success of Kha Ri Gude, except to refer to the numbers? Azapo has noted with disappointment that you are now backtracking on the need to designate education as an essential service. There is a legal definition of what essential service means, and this definition is found in the Labour Relations Act, as amended. The 19 FEBRUARY 2013 PAGE: 139 of 365 implications of the designation are far-reaching; among others that workers in such a sector cannot go on strike. We are disappointed that after murmurs from some union, you backtracked and tried to find a new definition for “essential service”. Azapo believes that many ordinary people would support the designation of education as an essential service, and this includes teachers. The concern that unions have stems from their observation of how government has treated the health sector as well as the safety and security sectors. After designating them as essential services, government failed to go the full distance by refusing or failing to conclude a minimum service level agreement, SLA, in those sectors. Designating education as an essential service will mean that systems will be put in place to fast-track collective bargaining and dispute resolution in the sectors. It will mean that everything possible will be done to remove the need for teachers to go on strike. You have also referred to the work that will be created through the Expanded Public Works Programme, EPWP, and the Community Work Programme, CWP. Our offices are inundated with complaints from citizens that every time that opportunities arise in those programmes, they are told that they must produce a membership card of a political party. We also hear that in some cases people have to belong to a certain faction of a political party before they can be 19 FEBRUARY 2013 PAGE: 140 of 365 employed. The people of Radikgale can inform you better about this issue. Azapo supports, as you said Mr President, the Palestinian people’s right to national self-determination. Like all of us, Palestinians have a right to statehood. We heard you speak against Israel’s expansion of Jewish settlements in the Palestinian territories. How I wish we could hear more even outside this House. South Africa must not forget the Saharan people in their struggle for selfdetermination. Finally, hon Speaker, I would like to end my speech by saying happy birthday to my son, Regaugetswe Kwame Dikobo. Khula Tlou, Letebele, Mogwasha! [Praise!] I thank you. [Applause.] Mr N T GODI: Mr Speaker, I wish to dedicate my speech to the late Comrade Joe Mkhwanazi. May his revolutionary soul rest in peace. Comrades and hon members, Comrade President, congratulations on your state of the nation address. We noted your report on the progress made in implementing some of last year’s commitments and the plans ahead. We are in agreement on the challenges facing our country, namely education, health, infrastructure, rural and urban 19 FEBRUARY 2013 PAGE: 141 of 365 development, land reform, unemployment, inequality, poverty and so on. However, the critical question is: How do we tackle the issues of urgency, resolve, capacity and appropriateness of our responses? It is the considered view of the APC that enhancing the capacity of the state is the most critical necessity for everything else depends on it. To this end, the Department of Public Service and Administration has to play a much bolder and more central role in this regard. The public Service Commission must be strengthened, better led and given more powers. We need a single Public Service with a single entry point. We cannot overemphasise the need for stability at the senior management levels and doing away with the act of looking only at the short term. Our education suffers from lack of proper, energetic and courageous administrative leadership. Some of our school principals, circuit managers, etc, leave much to be desired as leaders, thus the poor outcomes. The sometimes poor focus and discipline of students and teachers are actually a reflection of a lack of competent leadership. We need urgent intervention and a bold performance management system to weed out the unfit from office. Whilst we have an energetic Minister and competent director-general in the Department of Health, reports of patients going without food or medication, and professionals not being paid require firm and 19 FEBRUARY 2013 PAGE: 142 of 365 drastic intervention. These kinds of things should be considered intolerable acts deserving of harsh sanction against managers. We look forward to the implementation of the National Health Insurance, NHI. It is the way to go to ensure universal access to quality health care and better-run health facilities. It is the contention of the APC that the challenges of poverty, inequality and unemployment cannot be addressed without the state playing an active role in the economy. A “mantshingilane” [security guard] state will just guard over the continued impoverishment of the majority. There is no doubt that the years of freedom have been good to business. Huge profits have been made in peace, without the burden of operating in an apartheid state. But the question is: Has business been good to freedom? The answer is to be found in the more than R500 billion stashed away in banks and not invested in the productive economy. It is also to be found in the conduct of Anglo Platinum and Harmony as well as the criminal conduct of construction companies, etc. It will be Waiting for Godot to expect them to help in addressing these challenges. The state does not resonate with the political feelings of the owners of capital. They were politically defeated in 1994. There is still a grievance to nurse. It is no coincidence that the beneficiaries of colonialism and apartheid have blended themselves 19 FEBRUARY 2013 PAGE: 143 of 365 together into a political formation to be unco-operative, negative and oppose the rule of the majority. [Applause.] Some of the machinations we see in this House and outside are related to this fact; a fight back against 1994. [Applause.] The APC believes that the progressive forces in our country have a responsibility to train their collective focus on these rightist manoeuvres. [Interjections.] On this, the centenary of the Natives Land Act ... [Interjections.] The SPEAKER: Order! Order, hon members! Mr N T GODI: On this, the centenary of the Natives Land Act, as the APC we say, let’s cast aside tentativeness; let’s move forward with boldness to end this century of untold suffering and national humiliation. The Natives Land Act was a response of the settler government to the calls by its constituency. Let us now respond to the cries of our people as their representatives. The land of the African people must be returned to its historical and rightful owners. [Applause.] Lastly, the APC salutes its founding fathers for setting up the Organisation for African Unity, OAU, half a century ago, to strengthen the bonds of African solidarity and fight for the decolonisation of Africa. We want peace, development and integration in Africa to improve the lives of our people. Thank you. [Applause.] 19 FEBRUARY 2013 PAGE: 144 of 365 Mr J R B LORIMER: Mr Speaker, when she spoke at the mining indaba earlier this month, Minister Susan Shabangu suggested that all was well with the South African mining industry. The question is: Compared to what? She told us about increased numbers of mines, revenues and jobs. Use different periods of comparison, and I could as easily show results crashing, production at a 50-year low and thousands of jobs being lost. The point is: We have more minerals under our soil than any other country in the world. But for that to mean anything, we need mining to take them out and sell them. For there to be mining there must be investment, which we do not have. Some established large miners are still putting money into their mines, but we have had only 3% of new mining projects worldwide between now and 2002. Mining juniors simply cannot get funding for their proposals. That is due to the international perceptions of our industry. Last year we were rated by the Frasers Institute as the 54th most desirable destination for mining investment, and that was before Marikana and everything else that followed. This message was brought home at the mining indaba, where South African-born Rangold Resources chief executive officer, Mark Bristow, said they would rather continue with the gold mining operations in Mali, despite the civil war, than put money into South Africa. 19 FEBRUARY 2013 PAGE: 145 of 365 He said in South Africa there are problems with the reliability of legislation and policy, and no recognition of the importance of new investment. Another guest at the indaba summed it up for me. He said: The people at the event listened politely to Minister Shabangu, but they were there with no intention of investing in South Africa; they would rather invest in the rest of Africa. There has been a long list of bad news for mining in South Africa. We lost out on the resources boom because of bad and badly implemented laws. Then Marikana showed us the consequences of our labour dispensation designed to accommodate the interests of the labour arm of the ruling party rather than the workers. A disastrous funding model for Eskom means the massive rises in power prices will push more mines into unprofitability. How can Minister Gigaba be proud of the fact that Medupi is 58% complete when it was supposed to have been finished last year? When the inevitable consequences of all this manifested in planned lay-offs, the mask that pretended to welcome investment dropped. The ANC accused companies of stealing our resources; threatened to take away their mining licences and accused them of blackmail. What international investor would be crazy enough to put their money into a country where the environment is so obviously hostile? 19 FEBRUARY 2013 PAGE: 146 of 365 If that was not bad enough, the mining sector is now being faced by amendments to the Mineral and Petroleum Resources Development Act, which are either very poorly thought out or simply mad. This law includes provisions to nationalise mine dumps to make government approve every mining share transaction on the Stock Exchange, limit exports of certain strategic products and open a way to force the sale of quantities of these in South Africa at a price set by the state. This is surrounded by lots of happy talk about beneficiation. Those in mining might be right if they think they’ve heard this before. The Diamond Second Amendment Act, seven years ago, limited exports and forced sale of some products to the state. State intervention was disastrous. Before we had some 3 500 diamond cutters and polishers; now we are left with only about 500. The National Development Plan is cautious about beneficiation. It echoes the warning that we don’t have the electricity and it will suck capital from other parts of the economy. If there was money to be made from beneficiation, business would have done it already. These projects will not be economically viable. Where we win on the manufacturing swings, we will lose on the mining roundabouts. Last week the President announced, or hinted at - because he didn’t announce anything - more increases in mining taxes. At the root of all this is a failure to understand mining or the South African 19 FEBRUARY 2013 PAGE: 147 of 365 state. The ANC is held prisoner by its own socialist mythology that fatally overestimates the state’s capacity. The theory is that we will have a few very clever people in government who will decide where to direct money and activities. They will succeed where thousands of companies and billions of rands have not. If such clever bureaucrats existed, please move them to run housing, hospitals and indeed the issuing of mining licences, because they can really use some planning genius. The truth is that such state capacity does not exist. It never has throughout recorded history and the ANC’s socialist ideals have failed everywhere they have been tried. Yet we are going to try them again. John Templeton called them the most expensive four words in the world, the phrase that says: “This time it’s different”. And when the ANC's mining policy fails, more jobs will go. Those people who lose jobs or never get them in the first place because of stifled growth are the real victims. The government will not take responsibility. It will blame a host of imaginary enemies from its own nightmare subconscious, which is rooted in the last century enemies from international capitalism to the United States’ imperialism to an unpatriotic bourgeoisie. All of this shows that this is why the ANC government cannot and should not continue to rule. 19 FEBRUARY 2013 PAGE: 148 of 365 Is it not interesting that every time there is a project to be done, the ANC decides on the plans, the money, it hires people and then it all goes wrong? Then we get an appeal from Minister Manuel, among others, that we should all take responsibility for putting it right. Well, we can start right here in this House, where committee chairpersons protect officials rather than holding them accountable. Minister Manuel, I did enjoy your image about the development roadmap and the GPS. The problem is that the ANC’s fondness for turning only left means we are going round in circles. [Laughter.] The only map on your GPS is the map of Red Square. [Applause.] Now, you would think that money would not be spent on Ministers’ homes if the Ministers ordered that money should not be spent on those homes. The media has published a letter which shows that the President knew about the expenditure on Nkandla. The excuse of Ministers for not knowing deserves a prize for sheer gall. I think perhaps the people at Nkandla can thank the opposition for now getting access to a new clinic. If we hadn’t complained, I doubt very much whether it would have happened. That shows the folly of the project in the first place. [Time expired.] Mr K B MANAMELA: Hon Speaker, honourable President and Deputy President and hon members, if there are any “willing-clever” people we would have to borrow them for the DA, because their collective response has been so terrible today, they actually need “willing- 19 FEBRUARY 2013 PAGE: 149 of 365 clever” people to help them to respond to the state of the nation address. [Interjections.] The SPEAKER: Order, hon members! Mr K B MANAMELA: Hon Athol Trollip, ' Shakespeare also said, and I quote, “I will challenge you to the battle of wits, but I see you are unarmed”, and you have left the House. [Laughter.] In The Tempest, he also said, “Hell is empty and all the devils are here.” Maybe I should remind you of what he said in The Merchant of Venice, and I quote, “You speak an infinite deal of nothing.” I am sure Shakespeare had you in mind when he wrote in “The Fall of the White Xhosa-speaking Prince”, and I quote, “Et tu Zille, why had thee moved thy lap, for I, your loyal dog, had fallen.” I was listening with interest to hon Holomisa, who was complaining about “ukugwinya nokugwinywa”. The only difference is that when you “gwinya”, it means you are processing and excreting the whole thing; therefore it has no effect on you. But “mawugwinyiwe” means you have no say at all; and to be “gwinyaed” by the DA is the most unfortunate thing that can ever happen to a former democrat. [Laughter.] Last week, we listened attentively to a state of the nation address of the most special type that has been delivered since the commencement of this Fourth Parliament. It was presented as both a 19 FEBRUARY 2013 PAGE: 150 of 365 government report-back on the five priorities, which is education, health, job creation, rural development and safety and security, and included a set of actions to be implemented this year. The state of the nation address detailed practical projects that have been implemented since 2009 by this government. With all the projects in place, as detailed both by the President and eloquently by the hon Minister of Public Enterprises, Malusi Gigaba, it came as no surprise that some in the House and other social and political commentators had no clue how to respond to such complex progress that has been made by this government. [Applause.] The state of the nation address was also a government programme of action that was not premised on mere promises, but gave hope where it seemed to be fading and, more importantly, was a clarion call for collective action by all our people to build a better nation. Yours, Comrade President, was not an address clouded with fancy and flairful quotations from renowned scholars, but one intended to communicate the needs, interests and aspirations of the Grade 12 learners with whom you met in preparation for the address. [Applause.] We applaud you and the government for being frank about the challenges of unemployment, poverty and inequality, without paying lip service to these challenges. 19 FEBRUARY 2013 PAGE: 151 of 365 There are those who deliberately choose to be blind to the intention of the address on the state of our nation, and quickly rushed to their pigeonholes of feeble criticism, whilst others desperately tried to score cheap political points, as we have seen in this weekend’s newspapers and the showmanship displayed here today. According to them, the crime of the honourable President was not the content of the state of the nation address, but the fact that it was delivered. In fact, I am sure if you were there when Jesus was walking on water, as Bishop Tutu would retort, you would have actually accused him of not knowing how to swim. [Laughter.] For example, the hon Lindiwe Mazibuko, in her blind charade in the Sunday newspapers, which she repeated here today, reflected this bankruptcy. Even tweets showed that it was expected that she was going to say that the President is a lame duck, a weak leader and all manner of things; there is no confidence; and there is Nkandla and corruption. [Interjections.] The SPEAKER: Order, hon members! Order! Mr K B MANAMELA: The fact of the matter is that there are processes that have been undertaken by the Public Protector, for instance, on the Nkandla issue and no one has interfered with that. No one has said that it should not be done. We must clarify this distortion that keeps on being repeated in this House, that the President used public money to build a house for his family. We must clarify that 19 FEBRUARY 2013 PAGE: 152 of 365 distortion. I hope, hon Speaker ... at some point you’ll have to take those members who repeat that distortion head-on. I am sure in her position, occupying the glorified post of Leader of the Opposition, when there are far better people in both her party and the opposition benches, she would know what it means to be a lame duck as she has perfected that cliché by being one on a daily basis whilst party leader Helen Zille runs the show from the provincial legislature. [Applause.] By the way, the only reason why hon Mazibuko would appraise an FNB advert - which FNB itself has conceded to being scripted and people having acted - is because she herself comes to this House with prescripted speeches and repeats them to all of us and the whole country. [Laughter.] [Interjections.] The SPEAKER: Order! Order! Mr K B MANAMELA: The reason is that every year and in every debate the goalposts keep on changing when it comes to the response by the opposition parties. When the President presents a vision, they ask where the implementation plan is, and when he presents a report card, they ask where the vision is. I can type, I can write, you see. So, don’t worry, I can do that. This did not arrive by e-mail from the provincial legislature of Cape Town. [Laughter.] 19 FEBRUARY 2013 PAGE: 153 of 365 In fact, a closer look at the speech by the hon Lindiwe Mazibuko reflects that a response to the state of the nation was already written even before the President delivered the state of the nation address. [Laughter.] She accuses the President of reheating the previous state of the nation address just so that she can be excused for her repetitive annual “inhlamba” session that she dishes out in every debate. A colleague of mine was showing me a tweet by City Press on line, “Lindiwe Mazibuko repeated the same thing she has been saying for the last four years. So, it’s not only me who sees that, even the City Press and the people out there do. [Laughter.] The response by some in the coalition on my left, which in our view does not honour the title of official opposition, was so weak that even if strengthened, there are calls from afar that we need to be blessed with a new opposition party after the 2014 general election. We have just recently heard people say that we need a new opposition because the current opposition has failed us. [Applause.] Hopefully, when that happens, we will have a valuable debate a b o u t the state of the nation address. Honourable President and hon members, youth unemployment is a global crisis and there is no silver bullet for it. According to the International Labour Organisation, ILO, more than six million young people have joined the long queues of unemployed, and are neither in 19 FEBRUARY 2013 PAGE: 154 of 365 school nor in a training facility or skills institution. Countries such as Brazil, Russia, India and China, Bric, and all over the world, are battling with the same problem that our own government is dealing with. And because of its global phenomena, our country had to deal with both the internal and external drivers of youth unemployment. Typically, many nations have resorted to traditional measures such as imposed austerity, increased tariffs on imported goods, stricter control of their borders and oversubsidisation of their mainstream economic sectors. As governments all over the world steamed ahead to save individual shareholders in the financial sector, our government was bold enough to increase public sector spending, halt retrenchments and introduce new schemes and incentives to encourage job retention and job creation. This has led to the government saving millions of jobs and concentrating their efforts on creating new ones. This required boldness and determination in a period where there was none and as a result we are recognised as one of the few countries that will soon come out of the red in relation to youth unemployment. Our economy, like all other major economies, has not been creating new jobs and this has affected millions of young people eager to join the labour market. To suggest that youth employment is 19 FEBRUARY 2013 PAGE: 155 of 365 stagnated by inflexible labour laws and high entry-level wages is simplistic, to say the least. Go and tell that to the workers in De Doorns who were subjected to starvation wages for years. Go and tell that to 14 000 workers in Gold Fields who may actually be retrenched, and the DA has the pride to come into this House and defend. It is about time that you are exposed for who you are. [Interjections.] The SPEAKER: Order, hon members. Order! Mr K B MANAMELA: I have actually not only prepared my accent to present a speech, but I have also prepared the actual speech. [Laughter.] So, people who only prepare their accent must not disturb me. [Laughter.] The DA should take full responsibility of what happened in De Doorns. Your leader, still with the beautiful aroma of the curry she enjoyed at the Guptas’ and a cheque in hand, went straight to De Doorns and opted to meet with the farm owners and take their side. It should also take full responsibility for the fact that it was their MEC for police who issued instructions that led to the death of two workers and the injury of many others. For you to always blame the national Ministers when you fail to lead in the Western Cape is disgusting and a reflection of the same weaknesses that you claim were displayed by us as the ruling party. 19 FEBRUARY 2013 PAGE: 156 of 365 Some in this House, Comrade honourable President, were only interested in hearing the words “youth wage subsidy” For them, without it there was no state of the nation address. They closed their eyes and ears to the plethora of interventions that were proposed as part of the state of the nation address. This is solely for several reasons, one of them being that the DA sees the youth wage subsidy as their own “pack project”. When the President says “youth wage subsidy,” to them it means a lounge for their election campaign and banking on the vulnerable young people. But it also means that they will want to continue to fuel divisions between the aligned structures and also the progressive Youth Alliance. It is actually disingenuous to suggest that the President conceded to the youth wage accord and youth employment incentives solely because he saw re-election in Mangaung. For your information and free education, you see, this thing of jumping courses doesn’t help. [Laughter.] Cosatu does not vote in the conference of the ANC. [Applause.] The alliance between Cosatu and the ANC is not based on tit for tat; it is not based on convenience, but it is an alliance forged in struggle and will never be divided on the basis of interparty elections ... [Interjections.] The SPEAKER: Hon members, order! 19 FEBRUARY 2013 PAGE: 157 of 365 Mr K B MANAMELA: ... unlike your alliance, with whom you have just “gwinyaed”, which is Cope, the UDM and everybody else, in these corridors of power, that have no principles and do not act in the interests of our people, but merely seek to assert the dominance of the DA with the hope that one day we will only have a two-party parliament and so forth. [Applause.] Cosatu and the ANC will remain allies forever and will outlive all paper alliances, especially of those who bumped into one another here in Parliament. It is interesting to note that your orchestrated, mischievous, cunning plot behind the motion of no confidence that was raised last year was intended to ensure that the President is not re-elected in Mangaung. Your confession was quite revealing and we are happy to learn that hiding behind Constitutional Court proceedings, and the fact that the motion has expired, does not hold water at all. The fact is that structures of the ANC have spoken. The people will speak in 2014 and vote the ANC into government again and you will remain here. [Applause.] Hopefully, the Madam honourable Premier of the Western Cape would have found somebody else to repeat what she once said here in Parliament. In fact, if I were you, hon Mazibuko, I would be busy doing a background check on hon Lekota, because everything that he touches although it seems goldish - actually turns into something else. 19 FEBRUARY 2013 PAGE: 158 of 365 [Laughter.] I can favour you with the numbers of Mr Mbhazima Shilowa and many other people who had fallen on his road along a vicious trail to political power. [Laughter.] Instead of cutting a dress to celebrate your short-lived governance of Tlokwe, I would be watching Cassius Lekota, for he has a lean and hungry look. Look at it. [Laughter.] Such men are dangerous. One of the most forgiving leaders of the ANC and of the country, Comrade Nelson Mandela, had to relieve hon Lekota as Premier of the Free State and redeploy him to the National Council of Provinces here. [Laughter.] His energy in refusing to be silenced was not there when he was a leader of the ANC and of the Free State government. If this energy was there and was positive, revolutionary energy, we would not have had Harrismith as the first ever service delivery protest in this country on his watch and under his leadership. If this honesty, integrity and holier- than- thou attitude had been there, the ANC and Parliament would not have penalised you for having been silent about some wine cellar here and a bit of property in Bloemfontein and Durban, and probably a couple of shares in a petroleum distribution company. Now, because you are in the comfort of the opposition benches, the responsibility of governing is no longer on your shoulders, that’s why you can easily, without fear, yell out all of those allegations and shout all of those things that you have been 19 FEBRUARY 2013 PAGE: 159 of 365 shouting every year when there is a debate on the state of the nation address. In our view, as the ANC, the youth employment accord, which you referred to, honourable President, represents an integrated strategy to resolve youth unemployment in both the immediate term and the long term. It is an accord based on long days of engagement and discussion, but, more importantly, it is a sign of collective commitment by all sectors of our society. If the DA and all its hangers-on are unwilling to accept this consensus, the train will move with those who are prepared to move. This accord identifies problems on both the supply and demand side of the labour market; it also facilitates commitments by both the private, Nedlac and public sectors. As you don’t have any experience in governing except in Tlokwe for six days, you wouldn’t know what it means to establish consensus amongst different parties. [Laughter.] Part of this consensus includes a youth employment incentive; support for youth small, medium and micro-sized enterprises and youth co-operatives; the expansion of the community works programme through a youth brigade; the public sector investments in fast-growing industries; skills and training by both the private and public sector; and making education fashionable by the government and society in general. 19 FEBRUARY 2013 PAGE: 160 of 365 To all of these, close to six areas, that have been agreed to by all sectors in Nedlac, the DA says it just wants one solution, which is the youth wage subsidy. Now that exposes the opportunism that lies behind the campaign by the DA for a youth wage subsidy. I think some other day, on a different day, I will have to sit with my comrade at Cosatu House and see how we finally deal with this energy on the youth wage subsidy. Honourable President, as part of “the year of the artisan”, which is driven by the Department of Higher Education a n d Training, this government needs to urgently train thousands of bricklayers, roofers, electricians, plumbers, welders, motor mechanics, painters, tillers, fitters and turners and panel beaters in order to take advantage of the public sector infrastructure plans or to support them as SMMEs and co-operatives. [Applause.] The vocational component of FET colleges is an important platform to ensure that we produce these skills in their thousands. Listen who is talking about selling out and where she is sitting. [Laughter.] We call on young people who qualify to take advantage of the free education already being provided in further education and training colleges. According to the Minister of Higher Education and Training, no young person is required to pay when registering at an FET college. We hope that young people will take advantage of this opportunity. It 19 FEBRUARY 2013 PAGE: 161 of 365 also means, honourable President, that the government and the private sector have to join hands in revitalising the manufacturing sector and ensuring that young people are employees of choice. Creating jobs for the youth and supporting t h e youth SMME and cooperatives initiative means taking advantage of the demand for cheaper, but import-based goods, such as mobile phones, laptops, tablets, decoders and millions of other goods that would create youth employment. There are more cars, for instance, in South Africa than people in Swaziland, but all of the cars on our roads are either imported or locally assembled. Honourable President, is this not the time to we ask the question: Where is the South African car? The fact that since January more than 315 000 solar geysers have been installed in poverty-stricken households means that there is potential to support SMMEs and co-operatives as well as to support a huge manufacturing capacity which can yield thousands of jobs. In fact, with the more than 50 incentives that are already in place in the Department of Trade and Industry and in many other government initiatives, we hope that those initiatives will be directed towards new initiatives such as this one involving solar geyser heaters and so forth. 19 FEBRUARY 2013 PAGE: 162 of 365 Mr President, over time, you have been called upon - and that call was repeated here today – to build the confidence of the private sector in business. We believe, as the ANC, that the people who need reassurance are the marginalised, excluded, impoverished and the exploited youth who never doubted the commitment of this government or ever lost confidence in it. As you serve the last year of your first term as President, let it be for the teenagers who have just completed their Grade 12 and hope to enter the university world, or for the young person who has just completed their FET studies and hopes to be an artisan, or for a collective of young men and women who need seed capital to start a small business or co-operative, or for a school drop-out who wants to re-enter the education system. Young people out there are not expecting a hand-out from this government; they are expecting a hand-up; and look to us to facilitate opportunities. I promise you, Comrade honourable President, that if that can be achieved, no amount of vulgarity from my peer, hon Mazibuko, will ever shake you or the ANC. Let it be done for the youth and let it be done before it is too late. Thank you. [Applause.] The House adjourned at 18:50. __________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS 19 FEBRUARY 2013 PAGE: 163 of 365 FRIDAY, 23 NOVEMBER 2012 COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Basic Education on an Oversight Visit to Kuruman, Northern Cape, dated 20 November 2012 The Portfolio Committee on Basic Education, having undertaken an oversight visit to Kuruman, Northern Cape from 3 – 5 October 2012, reports as follows: 1. Introduction As an ongoing theme within the Portfolio Committee, the Portfolio Committee on Basic Education undertook to visit Provinces and Districts throughout the year, to continually monitor and oversee the work of Provincial Education Departments (PEDs) in respect of schools in their Districts. There have been numerous reports on the issue surrounding the closure of several schools in the John Taolo Gaetsewe District, in Kuruman, in the Northern Cape Province. Students had experienced intimidation and disruptions at affected schools which prompted the Provincial Department to set up study camps for the Grade 12 learners in preparation for the National Senior Certificate Examinations. 19 FEBRUARY 2013 PAGE: 164 of 365 A delegation of the Portfolio Committee visited the area to gain first hand knowledge of the issues as well as to meet all relevant stakeholders and role-players. This included in-loco site visits to the study camps for all learners as well as study camps specifically for Grade 12 learners affected by the disruptions. Meetings involved the National Department of Basic Education, the Northern Cape Provincial Education Department, District officials, organised labour and the South African Principals Association. In the spirit of cooperative governance the delegation had scheduled a meeting with the Portfolio Committee on Education in the Northern Cape Legislature, but due to the legislature being in recess and tasked with road-shows on legislation, this meeting could not materialise. The Committee also received an apology from the Office of the MEC due to her ill health. The main objective of the visit was to assess the gravity of challenges faced in the affected areas, to gain first-hand experience and information from those affected and to give the necessary support and advice in dealing with the challenges. The delegation needed to ascertain whether the situation had stabilised in the district and investigate if there would be an opportunity for catch-up or support programmes for learners to make up for the lost time when schooling resumed. The delegation further needed to establish if there were mechanisms in place to ensure that all affected learners benefited from the catch-up programmes. The Committee also wanted to be appraised of the intergovernmental relations amongst the affected departments e.g. Basic Education; Police; and Cooperative Governance and Traditional Affairs. 2. Background In the 2011 National Senior Certificate examination the Northern Cape Province recorded a 68.8 percent pass which was a decline from a 72.3 percent pass in 2010. Though the Province 19 FEBRUARY 2013 PAGE: 165 of 365 performed better than the Eastern Cape, Limpopo, Mpumalanga, and KwaZulu-Natal, all the districts recorded a decline in the 2011 NSC examination. The lowest performing district was John Taolo Gaetsewe at 51.1 percent while Namaqua was the highest performing at 88.6 percent. The John Taolo Gaetsewe district was amongst the districts that performed below the 59 percent norm required by the Department of Basic Education. However, the Province, in 2009 and 2010 produced the second highest percentage pass of schools nationally with a 100 percent pass at 15.7 percent and 20.1 per cent respectively. The John Taolo Gaetsewe District had 64 631 learners taught by 2 116 educators in 206 schools in 2010. The district had the highest number of schools in the Province. Disruptions in the form of service delivery protests started in May 2012 in the District. The most affected in the district was Kuruman, which was the seat of authority of the district and Olifantshoek. While demanding that the 100km road linking their villages to the N14 highway be tarred, and that the mayor of Gamagara local municipality resign; the protesters kept learners away from school to intensify their cause. In the process the following unfolded: Residents turned violent; A community library and a school were burnt down; 16 000 pupils and 400 educators were forced out of school in approximately 60 schools around Kuruman; Being the worst performing district in the province, the 2013 Grade 12 learners would not have been well prepared for the National Senior Certificate (NSC) Examinations and may perform poorly; 19 FEBRUARY 2013 PAGE: 166 of 365 Two primary and one high school in Olifantshoek, with a total number of 2 583 learners did not write the June examinations; Grade 3, 6 and 9 learners could not write the Annual National Assessments (ANA); The Department had set up study camps for Grade 12 learners although some learners did not attend the camp for fear of reprisals on their homes and families; and Several attempts to restore stability in the area were met with resistance from the residents. The above situation had the potential of raising further consequences in the future where: There could be overcrowding in classes such as Grade R where the intake of new entrants would find a large number of retained learners; The 2013 Grade 12 class may have no learners who progressed from Grade 11, or may have fewer learners or may experience high failure rate due to the potential illpreparedness of the current Grade 11 class; 3. Composition of the delegation 3.1 The Parliamentary Delegation The delegation from the Portfolio Committee on Basic Education comprised of Hon H H Malgas MP (Chairperson) (ANC), Hon N Gina MP (ANC), Hon C Moni MP (ANC), Hon A Lovemore MP (DA), Hon N M Kganyago MP (UDM), Mr D Bandi (Content Advisor), Mr L Mahada (Parliamentary Researcher), Ms S Ntabeni (Committee Assistant) and Mr L Brown (Committee Secretary). 19 FEBRUARY 2013 PAGE: 167 of 365 3.2 Stakeholders 3.2.1 Department of Basic Education (DBE) – Mr H M Mweli, Ms J Kinnear and Ms K Sechoaro. 3.2.2 Northern Cape Education Department – Mr T Pharasi, Mr M Ismail, Ms P Phuzi, Mr H Esau, Mr B Mathane, Mr H J Pekeur, Ms M P Tshite, Ms J Grey, Mr L Monyera, K J Sesenyamotse and Mr V J Teisete. 3.2.3 South African Democratic Teachers Union (SADTU) – Ms B C Molebalwa, Mr A E Sebolai, Ms R Oliphant, Mr W Plaaitjie, Ms D Leutlwetse, Mr M Tikane, Mr R Monaheng, Mr Z Pholo, Ms G Mahymapelo, Mr N G Masegela, Mr M Gaborokwe, and Mr M Ronald. 3.2.4 Suid-Afrikaanse Onderwysunie (SAOU) – Mr A J Jonker. 3.2.5 National Professional Teacher Organisation of South Africa (NAPTOSA) – Mr A Taunyane, Mr A Digobo and Mr L Strydom. 3.2.6 South African Principals Association (SAPA) – Ms M Mathe, Mr K M Moremi and Mr D W C Beukes. 4. Engagements with the National Department of Basic Education, the Northern Cape Provincial Education Department and District Officials 19 FEBRUARY 2013 PAGE: 168 of 365 The Head of Department, Mr Pharasi indicated that never in the history of the country was there a situation where parents sacrificed the education of their children for their own selfish gain. The main issue at hand was that children had a constitutional right to basic education which is also the responsibility of their parents to protect. Mr Pharasi tabled the John Taolo Gaetsewe (JTG) Recovery Plan 2012 as well as a Report on the JTG Service Delivery Protest, Affected Schools, Northern Cape Department of Education Interventions to Date and Action Plan for the Remainder of the Year and 2013. 4.1 Overview of the John Taolo Gaetsewe (JTG) Service Delivery Protest Unrest in Olifantshoek started on 29 May 2012. The reason for the unrest was the demand for the resignation of the Mayor of the Gamagara Municipality. In this instance, two primary schools and one high school, with a total learner population of 2 583, were severely affected. Protest actions later spread to other areas in the John Taolo Gaetsewe District. Schools around Cassel, Bothithong, Loopeng, Tsineng and Laxey were also disrupted, albeit varying from school to school and from village to village. Since 6 June 2012, 59 schools in these areas were affected by service delivery protests, the main reason being demands for access roads. High levels of intimidation made it difficult for the Department to intervene successfully in some of these areas. All three schools in Olifantshoek did not write the June 2012 exams (i.e. Northern Cape Primary School, Maikaelelo Primary School and Langberg High School). In the Joe Morolong Municipal area, schools were affected differently. Some of the schools wrote some of the papers and some wrote back-up papers. 19 FEBRUARY 2013 PAGE: 169 of 365 4.2 Interventions 4.2.1 Grade 12 During the June 2012 exams, schools were monitored and daily reports were compiled and forwarded to the provincial office. The Examination Directorate set and printed back-up papers for all affected schools, should the situation normalise. After the re-opening of schools on 16 July 2012, normal schooling resumed until disruptions started again on 23 July 2012. During this period the department started to roll out intervention plans which include catch-up plans and the writing of back-up papers. Various meetings were held with stakeholders who included Principals, Educators, SGBs and Teacher Unions. Key to these plans was the removal of all the Grade 12’s to set up camps to prepare them for the September Preliminary Examinations and the National Senior Certificate starting in October 2012. The following centres were initially set up to accommodate learners from different schools: CENTRE SCHOOLS Deben Hostel Dibotswa High School Blinkklip Hostel Segopotso and Moshaweng Moffat Mission Kegomoditswe and Ba-ga Phadima Seodin P/S Hostel Nametsegang and Itlotleng 19 FEBRUARY 2013 PAGE: 170 of 365 Learamele Hostel Baitiredi (attending classes at Ikakanyeng) Learamele Hostel Bothithong (attending classes at Batlharo Tlhaping) There was initially a plan to take Langeberg High School learners in Olifantshoek to Blinkklip High School in Postmansburg. This initiative did not materialise due to intimidation of learners and parents by the protestors. The Department reported on the following successful interventions; The Grade 12 learners from Bothithong and Ikakanyeng High Schools attended classes without interruptions as indicated above, until they joined the Deo Gloria Camp. Six schools in the JTG District attended the Winter Classes from 9 - 13 July 2012 (average of 80 percent attendance). To negate the curriculum coverage backlog, successful Saturday and afternoon classes were conducted until intimidation and threats increased. Deo Gloria Camp The first group of learners arrived at Deo Gloria on Sunday, 12 August 2012. The objective of the camp was to intensify teaching and prepare learners for the preliminary exams in September 2012. Learner attendance at the Deo Gloria camp stood at 93 percent. These learners were also moved to the Tigerkloof Camp during the September holiday for a special Spring School Camp. 19 FEBRUARY 2013 PAGE: 171 of 365 The number of schools and learners at the Deo Gloria Camp were as follows: SCHOOL TOTAL NUMBER OF LEARNERS LEARNERS DEO GLORIA CURRENTLY AT EXPECTED Kegomoditswe 41 41 Dibotswa 121 120 Segopotso 19 17 Moshaweng 48 37 Nametsegang 78 76 Ba-Ga 40 40 Bothithong 9 8 Ikakanyeng 14 14 TOTAL 370 357 Phadima Keimoes Camp The Keimoes Camp accommodated the Langberg High School, which was the worst affected by the protest action. The first group of learners arrived at Keimoes High School on Sunday, 9 September 2012 and more learners joined the following day. Some learners were withdrawn by their parents after one parent’s house was gutted, but more learners joined later in the week out of their own accord. The number of learners at the Keimoes Camp stood at 31, with 20 learners 19 FEBRUARY 2013 PAGE: 172 of 365 not accounted for. All these learners had not written the September examinations and were far behind with work schedule completion. Tutoring was targeted at completing the curriculum and to prepare the learners for the final NSC examination. District Subject Advisors and Lead Teachers would be responsible for teaching. The school and number of learners at the Keimoes Camp were as follows: SCHOOL TOTAL NUMBER OF LEARNERS CURRENTLY LEARNERS EXPECTED AT KEIMOES CAMP Langberg High School 51 31 TOTAL 51 31 The Department also gave a breakdown of the number of learners registered for the National Senior Certificate (NSC) Examinations in the JTG District as follows: The total learner numbers registered = 1 860 The total number of learners not affected = 1 431 (representing 19 schools) The total number of learners at Deo Gloria = 357 (representing 8 schools) The total number of learners at Keimoes = 31 (representing 1 school) Outstanding Grade 12 learners not accounted for were 26 (representing 1,39 percent) A summary of the Grade 12 situation stood as follows: 19 FEBRUARY 2013 PAGE: 173 of 365 SCHOOLS NOT SCHOOLS SCHOOLS INTERVENED AFFECTED AFFECTED AT DEO GLORIA AT KEIMOES Kegomoditswe; Langberg (1) Baitiredi; Galeletsang; Kegomoditswe; Wrenchville; Kalahari H/S; Rekgaratlhile; Toto; Kathu Gamagara; Segopotso; Lesedi; KS Olebogeng; H/S; Dibotswa; KP Moshaweng; Shuping; Nametsegang; Pitso Phakane; Jantje; Ba-Ga Phadima; Itlotleng; Ikakanyeng; Bagalotlhare; Hotazel C/S; Bothitong; Dibotswa; Segopotso; Moshaweng; Nametsegang; Ba-Ga Phadima; IIkakanyeng; Bothithong (8) Bankara Bodulong; Batlharo Langberg (9) Tlhaping; Remmogo (19) Almost all the affected Grade 12 learners were accommodated in the following Spring Camps: Learamele Centre (79, 5 percent attendance); Deben Centre (86, 1 percent attendance); Baitiredi Centre (52, 3 percent attendance); Keimoes Centre (52, 9 percent attendance) (Langberg H/S); Tigerkloof Centre (95, 4 percent). 4.2.2 Grade R – 11 In respect of Grades R – 11, the Department reported that interventions and efforts to restore normality continued in both the Joe Morolong Municipal area and Olifantshoek in the 19 FEBRUARY 2013 PAGE: 174 of 365 Gamagara Municipal area. District Management, Head Office Management, and political principals engaged with stakeholders, the Minister of Police engaged with community stakeholders and the Minister of Basic Education engaged with stakeholders. Pockets of positive off-spins that were reported as follows: The District Management Team managed to negotiate the reopening of Ba-Ga-Lotlhare High School, Pert, Kome, Shalaneng and Makhubung Maduo Primary School in Ganap. Bojelakgomo Primary School and Segopotso High School had also resumed classes. The District Management was constantly engaging with different stakeholders and community members in an attempt to have all schools reopened. Other schools that had since reopened included the following: Kareepan Pietersham Marumo Middle School Pietersham Moshaweng High Loopeng Sesheng Primary Loopeng Mampestad Primary Loopeng Bosheng Middle Loopeng Perth Primary Perth Gata-Lwa-Tlou Middle Perth Bareki Primary Kome Makhubung Primary Makhubung 19 FEBRUARY 2013 PAGE: 175 of 365 Shalana Primary Shalaneng Ba Ga Lotlhare High Heuningvlei Tsoe Primary Heuningvlei Oreeditse Primary Heuningvlei A breakthrough was reached in the Joe Morolong Municipal area after the Public Protector’s engagement with the protestors and different stakeholders. An amicable agreement was reached and all learners in all 64 affected schools returned to school on 25th September 2012. School, circuit and district intervention programmes were rolled out, with a request to all 64 schools to start interventions from 25th September 2012 and through the September holidays (1-6 October 2012). Unfortunately only 29 (45, 3 percent) of the affected schools heeded the call to stay open and recover during this period. Intervention Plans and Action Plans for the remainder of the time left were developed for each of the affected schools and subject, circuit and district monitoring plans were already in place. Adapted work schedules were provided for each affected school and subject after an assessment of the time lost and work still to be covered. An advocacy programme was also in the process of being developed to intensify the learning effort in all communities. In concluding, the Department reiterated that engagements and interaction were continuing between the Department of Education, protesters and different stakeholders. Some engagements yielded successes while others did not. In addition to the concerted effort to 19 FEBRUARY 2013 PAGE: 176 of 365 restore normality in the district, the Department was also continuously revising the intervention plan to be implemented soon after normality had been realised. 5. Engagements with Organised Labour The Portfolio Committee also held a special meeting with the following Unions: The South African Democratic Teachers Union (SADTU) Suid-Afrikaanse Onderwysunie (SAOU) The National Professional Teachers Organisation of South Africa (NAPTOSA) 5.1 South African Democratic Teachers Union (SADTU) The union was at pains in comprehending the decision by the communities of Olifantshoek and Joe Morolong areas to close schools. In trying to address the challenges, the union reported that it engaged with the Provincial Education Department at both provincial and local levels since the start of the protest action in May 2012. One could argue the merits of protesting for the tarred road, but not at the expense of learner’s education. The engagements were to address the challenges of Grade 12 learners at the exit stage of their education. The union agreed to meet parents of Grade 12 learners and table a proposal of sending learners to study/education camps. This meeting was disrupted by community members but at least 80 percent of Grade 12 learners were moved to the study/education camps. Following a decision to re-open schools in Joe Morolong, SADTU called on its membership to return to class and participate voluntarily in the catch-up programme. SADTU put it on record that they fully supported the QLTC unconditionally. A major challenge for SADTU was the 19 FEBRUARY 2013 PAGE: 177 of 365 lack of consultation on decisions taken by the Department. The union raised concerns that the Department had decided to pay Grade 12 educators and officials tutoring these learners. SADTU reiterated that they would participate in the catch-up plan with or without remuneration, although this was creating tensions amongst members. A matter of concern remained the conduct and operations of the Chief Director in the Department which SADTU felt needed urgent attention. There had been numerous occasions where the Chief Director failed to attend meetings or came unprepared for various engagements. SADTU was of the view that the Chief Director did not have the necessary capacity for leading the portfolio. SADTU was committed to the catch-up initiative and the education of all children. SADTU was of the view that there were some challenges that needed to be addressed in order for them to use the time remaining effectively, which were as follows: What were the contingency plans of the Department regarding Grade 12 teachers at the camps and their other responsibilities at their respective schools? Schools were still awaiting the adapted work schedules for curriculum coverage. There was policing by departmental officials (resulting in time being wasted on administrative duties at school level). There was unnecessary and additional paperwork for schools that would tamper with “time on task” The lack of consultation by the District Office regarding the implementation of a recovery plan for the affected schools was an issue. Conduct and capacity of the Chief Director – and the total disregard of stakeholders by not consulting on key issues affecting education and educators. Learners who took up seasonal work on farms in the district 19 FEBRUARY 2013 PAGE: 178 of 365 Learner absenteeism - a viable advocacy campaign for parents to send learners to school A concern that learners would call for a “pass-one-pass-all” scenario. A drive to ensure counselling for learners, teachers and parents affected by the protest action SADTU noted that the issues at Olifantshoek remained volatile and urged that there be urgent intervention from the Provincial Government. It hoped that the community would allow schools to be re-opened soon. The union reiterated that by Monday, 8 October 2012 all teachers would be available and prepared to teach and respond to the recovery programme. Teachers would continue where they had left off the previous term, even without the necessary adapted work schedules. 5.2 National Professional Teachers Organisation of South Africa (NAPTOSA) In its presentation, NAPTOSA warned that learners in the John Taole Gaetsewe education district would experience the influence of the devastating service delivery protests for a very long time. It was concerned about the level of intimidation that still occurred in some areas. NAPTOSA was committed to education and was very concerned about the situation in the two districts. The union was engaged with all role-players and political leadership to address and solve the problems faced. The view of the union was that the situation had a political origin and therefore required a political solution. It was disturbing that communities were prepared to use the education and future of children as a bargaining chip to obtain political goals. 19 FEBRUARY 2013 PAGE: 179 of 365 The situation in Olifantshoek was still a serious concern for NAPTOSA. The union appealed to the provincial and national government to intervene immediately – making a stand to retain a political appointment and sacrificing the future of children was unacceptable. With the schools being re-opened, it was important that learners and educators were focussed on revising academic work lost. NAPTOSA supported the catch-up programme and gave assurance that all its members were ready to assist learners in preparing for the final examinations. There remained a concern over the budget allocation for this programme. It was important to get clarity on how the Department would deal with promotions at the end of the year as NAPTOSA did not believe in a “pass-one-pass-all” approach, This would not assist the quality of education or the future of the affected learners. The union applauded the efforts by the Department to ensure Grade 12 learners were being taught and taken out of the volatile areas. There was a concern over a few affected learners who still did not form part of the programme. In high risk areas, the union urged teachers to ensure that they prioritised the safety of learners and their own. The union also raised concern around the trucking of learners to neighbouring areas to do seasonal work on farms. This needed to be investigated and stopped. It was important that in all schools affected, the Department of Social Development needed to give support to both learners and teachers through counselling. 5.3 Suid-Afrikaanse Onderwysunie (SAOU) SAOU also shared serious concerns regarding education in the district. The views were echoed that the protest action had very little to do with education, but was affecting education in a 19 FEBRUARY 2013 PAGE: 180 of 365 serious way. It was a matter of concern that politicians were too slow in responding to the matters at hand. It was important that the departmental officials played their roles in resolving the crisis at hand. 6. Engagements with the South African Principals Association (SAPA) The Principals Association was also taken by surprise with the protest action and closure of schools. SAPA had an open relationship with the Provincial Department although they had yet to secure a meeting with the Head of Department. SAPA’s appeal had always been to ensure that schools remained open, especially with the upcoming final exams. SAPA fully supported the initiative from the provincial department to remove learners to special study camps. Principals had later received a circular in respect of the recovery plan and the process going forward. There was concern that those educators who were still at the study camps would not be available for their normal teaching at their own schools. Of further concern was the possibility of learners not accepting failure – and possible further unrest? SAPA needed further assurance that all the necessary security measures were in place to ensure the safety and security of examinations. There was a possibility that communities would disrupt the examination process. It was important that the Committee had information on any undertakings promised to communities during previous visits and the timeframes given for such undertakings. 7. Committee’s Observations The Committee applauded the efforts of the Department, in collaboration with relevant stakeholders, to create the necessary environment for affected learners to continue schooling at 19 FEBRUARY 2013 PAGE: 181 of 365 special centres. The Committee noted in particular during visits to the centres that Subject Advisors and lead teachers in their respective areas of specialisation were collaborating effectively to consolidate their support for learners. The Committee was further impressed with the standard of the facilities at these centres and the dedication of the learners. It was questioned, however, as to whether the learners would be sufficiently prepared for the upcoming examinations, given the time constraints. The Committee shared the concerns of the Department and the unions that schools were closed and learners were prevented from attending classes over service delivery protests that were unrelated to education. A more serious concern was that learners in Olifantshoek had not returned to school at the time of the oversight and had missed both the June and September examinations. It was evident that there was a need to intensify dialogue on the value of education through meetings with a whole range of affected stakeholders and protesters. Politicians also needed to come together to find lasting solutions to the problems experienced. The Committee was mindful of the fact that there had been previous visits by various Ministries to deal with the challenges. The Committee was concerned that the violent protest action must have had a negative effect on the psychological well being of learners, teachers as well as parents. Members suggested that there was a need for those affected to receive the necessary counselling and therapy. The Committee heard from the Department that the district had ongoing motivational and career guidance programmes funded by local mining houses but agreed on the need for more structured counselling programmes for learners affected by the protest action. 19 FEBRUARY 2013 PAGE: 182 of 365 The Committee raised the need for the Department to intensify educator support on the utilisation of the Annual National Assessments (ANA) and the National Senior Certificate (NSC) diagnostic/technical reports that had been released. The Committee noted that the study centre would be moved again from Tigerkloof to Warrenton. This could create further instability, especially since the camp at Warrenton needed to have classrooms erected as they had none. There was concern over the reasons by the Department for not using available legislation to hold those responsible for preventing children from schooling to account for their actions. The Committee observed that the budget for the Provincial Department’s interventions and catch up plans to deal with the situation had to be re-directed. This would have a negative effect on other priority areas of the Department due to the movement of funds. The Committee advised the Department to approach the Provincial Treasury for assistance in accessing additional funds. The Committee raised a concern regarding the transporting of learners from their homes to do seasonal work on farms in the neighbouring areas. Members felt that this needed to be investigated as it constituted child-labour. The rumours of a “pass-one-pass-all” scenario, and possible uprising were of concern to the Committee who would follow up on this issue. 8. Recommendations 19 FEBRUARY 2013 PAGE: 183 of 365 The Portfolio Committee on Basic Education, having conducted the oversight visit to the Northern Cape, and considered the issues that were raised, makes the following recommendations: 8.1 The Minister of Education should ensure that: 8.1.1 The Northern Cape Department of Education, in conjunction with the Department of Labour, investigate the trucking of learners to neighbouring areas to do seasonal work and submit a report on a way forward. 8.1.2 The Northern Cape Department of Education submits a report on the progress on the following recommendations that were made during the oversight visit, which required urgent attention: That the issue around the adapted work schedules needed to be finalised as a matter of urgency. That the safety and security measures at schools during the final examinations needed to be strengthened. That the Department reported on whether examinations were scheduled for Grade 1 – 11. That the Northern Cape Department of Education considered dealing with complaints raised by unions regarding a Chief Director in the Department. All reports should be submitted within 30 days of the adoption of this report by the National Assembly. 8.2. Given that the service delivery protest action in the John Taolo Gaetsewe District was complex, Parliament should consider establishing an inter-faith, inter-disciplinary team to ork with the 19 FEBRUARY 2013 PAGE: 184 of 365 communities and School Governing Bodies (SGBs) to find lasting solutions to the problems experienced. Report to be considered 2. Report of the Portfolio Committee on Basic Education on an oversight visit to KwaZulu-Natal and Northern Cape Departments of Education, dated 20 November 2012 The Portfolio Committee on Basic Education, having undertaken an oversight visit to the KwaZuluNatal and Northern Cape Departments of Education from 28 – 31 October 2012, reports as follows: 1. Introduction 1.1 A delegation of the Portfolio Committee on Basic Education conducted an oversight visit from 28 – 31 October 2012 to the KwaZulu-Natal Department of Education (Port Shepstone and Pinetown Regions) and Northern Cape Department of Education (Kimberley Region). 1.2 The purpose of this oversight visit was to assess the state of the National Senior Certificate (NSC) examination readiness for 2012. This included assessing the state of security systems for the printing, distribution and storage of examination question papers as well as the procedures in place to conduct of the examinations. The Committee also aimed to provide support to departmental teams and to ensure the delivery of successful and credible examinations, with no or minimal irregularities. In pursuit of the oversight programme objectives, the delegation conducted working sessions with the Office of the Head of Department, District and Senior Curriculum and Examinations Officials as well as Organised Labour in the identified regions of the provincial departments. The delegation also 19 FEBRUARY 2013 PAGE: 185 of 365 undertook site tours of printing, packaging, distribution and storage facilities for the examination question papers in order to obtain first hand knowledge of the state of security in these facilities. 1.3 During 2010, the Committee undertook oversight visits to KwaZulu-Natal’s Pinetown District as well as other regions with the same objective. The Committee observed that there were challenges relating to power failures in some examination centres, as well as security measures, staffing and conditions in storage facilities of the examination section (Report of the Portfolio Committee on Basic Education on oversight visits to Provincial Examination Centres, dated 16 November 2010). Part of the current oversight visit to this district was to evaluate the progress made in addressing these issues. In respect of the Northern Cape, the Committee had undertaken an oversight visit in October 2012 where it was appraised on issues around the protest action experienced in this region and their effect on education. Part of the current oversight visit was to assess progress to date in attending to these issues. 1.4 This report provides a summary of the key issues that emerged from the interaction with officials of the provincial departments and organised labour, and the Portfolio Committee’s deliberations, observations and recommendations. 2. Delegations 2.1 National Portfolio Committee on Basic Education: Hon H H Malgas MP (ANC) (Chairperson), Hon N Gina MP (ANC) (Whip), Hon Z S Makhubele MP (ANC), Hon F F Mushwana MP (ANC), Hon A Lovemore MP (DA), Hon W Madisha MP (Cope) Hon A M Mpontshane MP (IFP), Mr D Bandi (Content Advisor), Mr L Mahada (Researcher), Mr L A Brown (Committee Secretary) and Ms S Ntabeni (Committee Assistant). 19 FEBRUARY 2013 PAGE: 186 of 365 2.2 Provincial Portfolio Committee on Education (KwaZulu-Natal Provincial Legislature): Mr S Nkosi, Ms M Frazer and Mr V Mthembu. 2.3 Provincial Portfolio Committee on Education (Northern Cape Provincial Legislature): Ms B Mbinqo-Gigaba (MPL) (Chairperson), Mr N J Galela MPL and Dr G Allen Grootboom MPL. 2.4 National Department of Basic Education: Ms K Sechoaro, Ms M Fuzile and Ms N Msimanga. 2.5 KwaZulu-Natal Provincial Education Department: Dr S N P Sishi, Mr E Mosuwe, Mr M Gwala, Ms J Dlamini, Mr M Cele, Mr H Mcuma and Dr S Z Mbokazi. 2.6 Northern Cape Provincial Education Department: Ms G Cjiekella, Mr G T Pharasi, Ms A P Phuzi, Dr M Ismail, Mr H J Pekeur, Mr O S Stander, Mr E Laban. 2.7 South African Democratic Teachers Union (SADTU): 2.7.1 KwaZulu-Natal: Mr D Sibaya 2.8 National Professional Teachers Organisation of South Africa (NAPTOSA): 2.8.1 KwaZulu-Natal: Mr D Nair, Mr A Pierce, Ms T Moodley and Ms D Bassa. 2.8.2 Northern Cape: Mr H Sembisya, Mr D Snaar, Mr Strydom, Mr E Ramasehla, Mr G Mr A Taunyane and Mr G Motlhomi. 2.9 Suid-Afrikaanse Onderwysunie (SAOU) Northern Cape: 2.9.1 KwaZulu-Natal: Ms M C Botha, Ms L A Scholtz, 2.10 Professional Educators Union (PEU): Titus, 19 FEBRUARY 2013 PAGE: 187 of 365 2.10.1 Northern Cape - Mr T P Mongale (Northern Cape). 3. An Overview of the national examination system The national examination system in South Africa is managed by the Department of Basic Education (DBE) supported by the nine Provincial Education Departments (PEDs). National examinations are conducted in accordance with the Regulations Pertaining to the Conduct, Management and Administration of the National Senior Certificate. The DBE monitors the implementation of the regulations, while the heads of examinations in the provinces are responsible for their implementation. The DBE sets examination question papers for the National Senior Certificate (NSC) examinations. Printing, packaging and distribution of the question papers to examination centres is the responsibility of the Provincial Education Departments (PEDs). The PEDs have further operational responsibilities which include the supervision of the writing of the examinations and the capturing of marks on the Integrated Examination Computer System (IECS). 4. Oversight in KwaZulu-Natal Overview of Education in KwaZulu-Natal KwaZulu-Natal had approximately 2.8 million learners taught by 91 926 educators in 6 147 schools. The province had the highest number of learners, educators and schools in the country. The Gross Enrolment Rate (GER) in the Primary Phase stood at 92 percent while at the Secondary Phase it stood at 88 percent, with a total Province GER of 90 percent. KwaZulu-Natal was one of the provinces that had an increase in the number of schools between 2000 and 2011. An increase of 4.6 percent was recorded. 19 FEBRUARY 2013 PAGE: 188 of 365 The education system in the Province was demarcated into four regions. Pinetown had the highest number of learners while Umlazi had the highest number of educators with Vryheid having the highest number of schools. This showed some anomalies where Pinetown district had the highest number of learners with fewer schools than Vryheid which had a high number of schools with fewer learners than Pinetown. This raised serious questions around the distribution of learners and educators. In the 2011 National Senior Certificate (NSC) examination, the Province recorded a 68.1 percent pass, a decrease from the 70.7 percent pass in 2010. Most of the districts experienced a slight decline in performance with only Sisonke and Umzinyathi recording improvements. The lowest performing district was Obonjeni at 55.3 percent while Umlazi was the highest performing at 77.0 percent. 5. Engagement with the Department of Education, KwaZulu-Natal The Head of Department (HOD) submitted apologies from the MEC for Education due to prior commitments, as well as the members of the Provincial Portfolio Committee on Education who were abroad. The HOD thanked the Portfolio Committee for the opportunity to engage with the Department at this level. He reiterated that the classroom remained the centre-piece for all activities of the Department; remaining the focus area. The HOD spoke broadly about interventions from the Department since 2010, the last visit by the Portfolio Committee. The Portfolio Committee had raised the following issues, among others that required the Department’s attention: The issue of power failures – and their effect on examinations Staffing – there were too many acting positions Security issues Conditions in storage facilities 19 FEBRUARY 2013 PAGE: 189 of 365 In response to the above issues raised, the Department indicated that remedial action had been taken as follows: The Province made preparations for back-up systems and the use of nearby areas with the relevant infrastructure. Some schools in Ulundi had experienced power failures but generators were on hand. Appointments had been secured in key positions in the Department (e.g. Senior General Manager, General Manager: Examinations, Assessment and Quality Assurance, Manager: Assessment, Accreditation and Certification, Manager: Examination Administration and Manager: Quality Assurance). None of these managers were in acting positions. The Department had installed cameras in all the critical areas of the examination section. All materials in storage areas were removed and only question papers or answer sheets were stored there. Further, the Department had also installed cameras in the loading areas at these facilities. All material posing any risk had been removed from the storage facilities. The 2012 National Senior Certificate Examination in KwaZulu-Natal Preparations during the year: The Department had been engaged with preparing learners for examinations from very early in the year through the Matric Intervention Programme which included: Studying previous learner performance and identifying the challenges Schools who scored below 60 percent wrote a common test and learner camps were established across the province A study skills manual was developed to give learners the necessary study and planning skills 19 FEBRUARY 2013 PAGE: 190 of 365 The Department also had supplementary tuition e.g. Saturday classes, Winter School Programmes and Spring Study Camps A challenge facing the Department was that they had received no Occupation Specific Dispensation (OSD) funds for adult and technical education. The Department therefore reported over expenditure on personnel as funds were transferred from other programmes to fund this item. The budget could be broken down into 75 percent - compensation, 9.8 percent - goods and services, 7.1 percent – transfers and subsidies, 6.3 percent – buildings. A further challenge was the backlog in respect of infrastructure. The Department boasted with at least 2.2 million learners who benefited from the National School Nutrition Programme (NSNP). The magnitude of the examination: The magnitude and scope of the 2012 National Senior Certificate Examination in KwaZulu-Natal was as follows: Number of candidates Question papers Printed question papers Expected scripts 132216 110 60 1 983 240 Examination centres 1721 Markers 9434 Marking centres 28 19 FEBRUARY 2013 PAGE: 191 of 365 The Printing, Packing and Distribution of Question Papers: The province had successfully printed, packed and distributed the first consignment of question papers. The delivery of question papers to district offices was done by a contracted company and the trucks were escorted by a private security company and the South African Police Service. The question papers were delivered to nodal points and then to examination centres on a daily basis. The printing, packing and distribution of examination material was in order and security measures were in place and sufficiently reliable to protect the integrity of the examination. Conduct of the Examinations: The invigilators who supervised the conduct of the examination in the province were trained on the rules of the examination. Those educators who had close relatives writing the National Senior Certificate and Adult Education and Training Examination were not involved in sensitive examination processes. This was done to protect the integrity of the examination. All the Chief Invigilators and invigilators had signed secrecy forms where they bound themselves to the protection of examination information. All Chief Invigilators and invigilators were officially appointed for the duration of the National Senior Certificate and Adult Education and Training examinations. The province used the Regulations pertaining to the conduct, administration and management of the examination to manage irregularities. The examination was monitored by district and provincial personnel. There were also external monitors in the province (from DBE and Umalusi) Irregularities: Two serious irregularities had been identified to date. In one instance a candidate was found with crib notes. In the second instance, a principal denied learners access to examinations claiming that they were not ready to write. Indications were that the efforts of the districts and province to discourage examination malpractices were effective. The Provincial Department reported that the provincial monitors had identified technical irregularities which were dealt with immediately as they had no direct potential to compromise the integrity of the examination. 19 FEBRUARY 2013 PAGE: 192 of 365 School Based Assessment: The province had completed the moderation of school based assessments. The Committee heard that the province had benefited maximally from the comments and evaluation of school based assessment practices by the National Department of Basic Education and Umalusi. Another area for quality improvement was the administration of a common Life Orientation Task which was written by all the schools in the province. Marking: The marking centres were organised in such a way that a specific paper was marked at a particular centre under the management of the Chief Marker. Markers marked specific questions to allow for greater standardisation of marking and to avoid inter-marker and intra-marker variations. The supervision at each level of the marking hierarchy entailed moderation of the scripts that were marked. Internal moderators had been appointed for each subject or paper at each marking centre. The National Department would appoint external moderators and Umalusi would appoint verifiers. Letters of appointment for markers would be released to districts on 31 October 2012. Marking would commence on 1 December 2012. There was still the question of competency tests that needed to be piloted in 2012. The results of these tests would inform the placement of markers to questions of different cognitive demands. The training of Chief Invigilators took place in September and the training of moderators would take place on 26 October 2012. The discussion and finalisation of the memoranda would take place in Pretoria. A centralised memorandum discussion would ensure that the standards of marking in the nine provinces were consistent. The memorandum discussion would be done by incorporating all possible alternative answers, responses and solutions in the marking guideline. 19 FEBRUARY 2013 PAGE: 193 of 365 Processing and release of results: After the completion of marking, processes leading to the release of results would commence. These processes included the capturing and computing of marks, standardisation, and the final approval and release of results. The dates are as follows: Activity Date Completion of marking 14 December 2012 Mark capturing 16 December 2012 Standardisation 21 December 2012 Checking of results by province 23-27 December 2012 Final approval of results by Umalusi 27 December 2012 Release of results 3 January 2012 The final analysis and providing feedback to the system: The province would present a detailed analysis of results per school and per district. The analytical presentation of learner performance would form a qualitative feedback to the system. This would be presented in the form of a booklet that contained all the subjects. All schools would receive this document to ensure that educators could improve their teaching of certain parts of the syllabus. Workshops and seminars would be conducted with teachers and subject advisors to share the findings of the 2012 examination qualitative and quantitative results. Underperforming schools would be expected to contribute towards the improvement of learner performance by accounting to the Head of Department by providing their improvement plans. Finalising of irregularities: The structures that coordinated the handling and processing of irregularities in the province was the Provincial Assessment and Examination Irregularity Committee (PAEIC). The PEIC ensured that there was a consistent approach in handling irregularities in the 19 FEBRUARY 2013 PAGE: 194 of 365 twelve districts. Each district had established the District Assessment and Examination Irregularity Committee (DAEIC) which took responsibility for the handling and finalisation of irregularities at district level. The irregularities for the 2012 National Senior Certificate and Adult Education and Training would be finalised on 30 January 2013. Letters informing candidates of the outcome would be released on 1 February 2013. All the appeals had to reach the district offices on 16 February 2012 and all the appeals would reach provincial examinations on 18 February 2013. The office of the MEC would deal with the appeals and provide feedback to provincial examinations to communicate to districts and schools. Committee Observations The Committee noted the following key issues and concerns regarding the state of examination readiness in KwaZulu-Natal: The Committee commended the KwaZulu-Natal Department of Education for the thorough preparation for the 2012 National Senior Certificate examination, which included preparing learners early on in the year through intervention programmes and addressing issues raised by the Committee in its previous oversight visit. It was important that the Department give the necessary support to those districts that had performed poorly in the past. There were huge anomalies in the provinces in respect of the learner numbers vs. educator numbers in the various districts. The Committee was concerned how this impacted on the smooth running of the Department. 19 FEBRUARY 2013 PAGE: 195 of 365 Also of concern were the infrastructure backlogs and the budget for this backlog. The Committee was interested to know what systems were in place to give assistance and support to Special Needs learners. The issue of management of leave needed to be addressed as there seemed to be different systems used by different Departments. It was noted that the Auditor-General had given the Department a qualified report in respect of leave management. The Department needed to give the Committee a much more comprehensive report in respect of Dinaledi Schools. It was heartening to establish that the Department did not employ any unqualified educators. The NSNP was working very efficiently in the Province though the Committee was concerned with learners during weekends and holidays in respect of meals. The Committee emphasised that it was illegal to use the Capital Budget for funding personnel. 6. Engagement with District Officials – Port Shepstone (Ugu District) There were 507 registered public and independent schools in the District (491 ordinary public, 16 ordinary independent and 3 special schools). The District had five categories of schools i.e. primary, secondary, combined, and pre-primary and LSEN. Schools were categorised in two Circuits with each 19 FEBRUARY 2013 PAGE: 196 of 365 Circuit being divided into wards. Wards were managed by Superintendent of Education Managers (SEMs). Each SEM had approximately 30 schools to manage with daily operations managed by Circuit Managers. Unfortunately, schools in the district were not equally distributed through the 17 wards thus creating a discrepancy in the number of schools per ward. The District was ready and prepared for the upcoming examination with all systems go and all structures on board. The District was in control of the marking centres. All principals attended workshops on the examinations arranged by the Department. For inaccessible areas, the Department worked closely with the South African Police Services to render the necessary support vehicles to distribute material. The district unfortunately had a problem with not having sufficient storage space. A major issue remained the weather. When it rained there were areas that became inaccessible. All moderation of Schools Based Assessments was completed. Invigilators had already been appointed in writing and had undergone the necessary oath of secrecy. Schools achieving less than 60 percent wrote a common test in the critical subjects in March 2012. The tests were analysed and feedback was given to subject advisors with the necessary resultant interventions taking place. Tools were developed for subject specialists to monitor the coverage of the curriculum. The Department also supplied all districts with a 4X4 vehicle for the distribution of material. There were plans in place to construct buildings, specifically for the Department in the districts to mitigate the problems of space and storage. The competency tests for markers remained a National programme and would be implemented by the provincial department to enhance the caliber of markers. 7. Engagement with Unions (Port Shepstone) 19 FEBRUARY 2013 PAGE: 197 of 365 7.1 Suid-Afrikaanse Onderwysunie (SAOU): The Suid-Afrikaanse Onderwysunie (SAOU) indicated that they were satisfied with the preparations by the Provincial Department for the final examinations. The relationship that SAOU had with the provincial department was congenial. SAOU also indicated that the curriculum coverage was properly monitored and learners were ready and prepared for the examinations. 7.2 National Professional Teachers Organisation of South Africa (NAPTOSA): NAPTOSA had engaged with the Department in respect of the launch of the Matric Intervention Programme. The only problem the union had concerned the timing of the launch which was too late in the year. NAPTOSA was of the view that there needed to be concerted efforts to have suitable interventions at all levels of schooling and not only for matriculants. The Union also had no problem with the competency tests for the markers except for their bad timing. NAPTOSA had a concern as to who would be setting and marking these competency tests. The Union re-iterated that the province was well ahead in respect of administration and preparations for the examinations. There was regular consultation and good communication between the unions and the department. There was also a close working relationship between the various unions in the bargaining council. Committee Observations The Committee was heartened by the fact that all seemed in order in the District with few or no weaknesses. A cause for concern was the issue of the insufficient storage space. The Committee sought reasons for the underperformance of the Dinaledi Schools in the district. 19 FEBRUARY 2013 PAGE: 198 of 365 The Committee was concerned over the significance of the competency test at this crucial time of the year – whether the test was well placed. The Committee requested that the Department supply them with the details pertaining to those educators who were selected to do the testing of the question papers at a National level. There was a feeling that schools connected to these educators had an unfair advantage over others. Unions and the Department needed to engage with each other over the issues around the setting and marking of the competency tests. The Committee was of the view that it required an urgent briefing by the Department on regulations pertaining to the competency testing. 8. Engagement with District Officials – Pinetown The Pinetown district had the following statistics in respect of centres and candidates: Number of full-time centres = Number of full-time candidates = 15 997 Number of part-time candidates = 2 195 Total number of candidates = 18 192 Number of deregistered centres = 316 Number of Chief Invigilators = 165 Number of exam monitors = 120 165 In respect of the 2012 ANA pilot analysis, the Department recorded a slight improvement in the Grade 3 performance. According to the Department, the challenge was not with the quality of learners but 19 FEBRUARY 2013 PAGE: 199 of 365 rather with the educators who lacked the required content knowledge as one moved higher with Grades. Distribution of Question Paper In terms of the guidelines, examination answer booklets had to be checked at the Nodal points by examination personnel together with the Chief Invigilator to ensure maximum safety, security and confidentiality of all scripts. Exam material for both morning and afternoon sessions would be delivered to Nodal points at 06H00am each morning. Materials were unpacked and controlled against acknowledgement provided. The original acknowledgement was retained by the circuit officials and a copy returned to district officials. Circuit officials ensured the safekeeping of question papers for both morning and afternoon sessions. Chief invigilators verified that the correct package/s was received before proceeding to the centres. The issuing of question papers and stationery commenced from 07H00am for the morning session and 12H30pm for the afternoon session. Interventions: All 55 National Strategy for Learner Attainment (NSLA) participated fully in the common tests. The March/June test performance was presented to the District management committee and subject targeted interventions were being implemented by FET. Circuit management was focusing on proper school management for the creation of favourable progress towards quality teaching and learning. The 2012 ANA Pilot analysis was being discussed with schools. The Department was addressing the issue of competent educators for correct subjects and correct classes. Security: The whole examination section was separated from other sections. Access to the examination section was also safe, with gates, CCVTC cameras; alarm systems linked to armed response and 24-hour on-site security personnel. Question papers were stored in two strong rooms and 19 FEBRUARY 2013 PAGE: 200 of 365 three store rooms. The loading zone was controlled through the electronic gate and was wide enough for the trucks to enter. Monitoring: The training of monitors and invigilators focused on the manual but with emphasis on the moral obligation to ensure that learners were ready for the examination and would be able to write a credible examination. There were 120 monitors taking into account all Deputy Chief Education Specialists (DCESs), Assistant Directors (ADs), First Education Specialists (FESs), Superintendent of Education Management (SEMs), Chief Superintendent Education Management (CSEMs) and Chief Education Specialists (CESs). For some of the known centres the Department would apply the strategy of fixed monitors during the examinations of specific subjects. Signing of secrecy forms by Chief Invigilators would be undertaken on 21 August 2012. Irregularities: Over the two year period the Deparment had reduced the number of irregularities. Chief invigilators whose centres were involved were not re-appointed. For centres that were known for irregularities the Department appointed a camping monitor. All monitors worked in teams led by ward managers. Other Stakeholders: The Department held regular briefing meetings with SAPS during the examination session. There were SAPS officials tasked to have regular checks on nodal point strong rooms and distribution points. For Information Technology (IT) and Computer Aided Technology (CAT) purposes the relevant centres would provide backups in the event of power failure. Challenges: Of concern was the control of scripts and their distribution between morning and afternoon sessions. There were uncoordinated submissions and distribution of materials. There was a 19 FEBRUARY 2013 PAGE: 201 of 365 lack of urgency in dealing with cases of misconduct by officials and the time taken to conclude cases. A further concern was the delay in authorizing the removal of old scripts from store rooms. 9. Engagement with Unions (Pinetown) 9.1 National Professional Teachers Organisation of South Africa (NAPTOSA): The relationship with the Department was far better than in the past – cordial though cautious. The union needed to give recognition to the leadership in the Department for the efforts put in place for the final exams. The union acknowledged the work of the MEC in encouraging early and timeous registration of learners. The union had problems with the issue of the payment of markers as markers were not happy with what was being offered. The matter currently resided with the Education Labour Relations Council (ELRC) where a date had been set for arbitration. Although their view did not find favour with other unions, NAPTOSA indicated their willingness to participate in competency tests for markers. The main concern with competency testing was the poor timing on the eve of the start of marking. The thinking was that markers needed to be informed timeously of being appointed and making themselves available. The union was also of the view that all the negative publicity around the examinations and marking was not healthy for learners who were about to start writing the examinations. The Department needed to give clear and unambiguous communication to all concerned on matters concerning the examinations. 9.2 Suid-Afrikaanse Onderwysunie (SAOU): Although SAOU echoed the sentiments of NAPTOSA, they further indicated that many within the Department and their membership had gone far beyond the call of duty to ensure a smooth examinations period in the province. They were also in favour of the competency tests as these guaranteed competent markers. SAOU also indicated the concern that markers had not been informed as yet due to the timing of the test. 19 FEBRUARY 2013 PAGE: 202 of 365 9.3 South African Democratic Teachers Union (SADTU): SADTU had been engaged with the Department since the beginning of the year on all processes and programme in respect of the state-ofreadiness for the final examinations. The union was satisfied that the Department was ready for the examinations. SADTU was also part of the monitoring processes and had been visiting schools and the provincial office to check their readiness. The union also engaged with the Department in respect of the number of marking centres. SADTU had been part of the selection procedures for markers from the start and indicated that there had been much improvement in the process of the selection of markers. The marking process was not an event but a process. The exposure received by these markers was very valuable for confidence building. SADTU was strongly against the competency testing of markers as they felt that if markers were good enough to do the School Based Assessment (SBA) marking, they should also be good enough for the NSC marking. SADTU further cautioned against gate-keeping practiced by many schools in the province. Committee Observations A concern for the Committee was that learners who had failed the previous year were not allowed to register as full time students the following year, but needed to register as part-time candidates. This meant they did not have the luxury of full-time classes which placed them at a disadvantage. It was important to understand the basis and rationale involved in de-registering an examination centre and the criteria used for these centres to re-register. 19 FEBRUARY 2013 PAGE: 203 of 365 Members were concerned about the impasse with the ELRC in respect of the payment of markers. Members also noted the concerns around the timing of the testing and the short notification of markers selected. The Committee was interested in the broader picture in respect of teacher development and the various programmes in place. The Committee noted with concern the challenge of not having a Subject Advisor for Mathematics. 10. Engagement with the Portfolio Committee on Education, Northern Cape Provincial Legislature The Committee was informed that due to the size of the Legislature, Members of the Provincial Legislature (MPLs) were spread thinly and needed to attend many Committee meetings in the course of the day. Only three MPLs could join the meeting due to others being tasked with attending meetings dealing with Annual Reports during this period. Although the Provincial Portfolio Committee on Education was satisfied with the performance of the Department, there remained serious challenges in respect of Special Schools and staffing challenges. The Provincial Portfolio Committee was satisfied with, and commended the Department on the interventions on behalf of learners during the period of protest action. Special Schools was a key focus area for the Provincial Portfolio Committee. The Committee had submitted a report to the Legislature and was awaiting the Department to action the recommendations in the Report. The Provincial Portfolio Committee also recently engaged with the Department on the state-of-readiness for the Matric Examinations; and was satisfied that the Department was, in fact, ready for them. The Department had indicated that all examination centres 19 FEBRUARY 2013 PAGE: 204 of 365 had been properly registered, a risk management strategy was in place, question papers delivered on time and professional invigilators appointed. An issue that needed to be addressed was that of implementing the plans for promotion/progression and repeaters. Another question was the criteria used for appointing moderators as many experienced moderators had been excluded. There was a view that there needed to be a mix of experienced and new moderators to prime them for the future. 11. Engagement with the Department of Education, Northern Cape The MEC for Education, Hon G Cjiekella, expressed her gratitude for the support from the Portfolio Committee. She alluded to the protest action that had occurred and reiterated that the issues protested about had nothing to do with Education, though it was impacted on when learners were held back from attending schools. She indicated the lengths the Department went to, to ensure the safety and continued schooling of the affected learners. She also mentioned that a similar briefing was given to the Portfolio Committee on Education in the legislature. The Head of Department, Mr Pharasi indicated that as per the National Department of Basic Education, the province was in the clear, without risks and ready for the national examinations. The State of Readiness to Administer the 2012 National Senior Certificate (NSC) Examinations – Ms A P Phuzi. In preparation for the November 2012 NSC Examination, the directorate responsible for Examinations and Assessment in the Northern Cape underwent a self-evaluation process, followed by the annual “Monitoring of the State of Readiness 2012” visit by the Department of Basic Education (DBE) conducted from 20 - 21 August 2012. The DBE declared that the Northern Cape Department of Education (NCDOE) was ready to administer the NSC Examination in November 2012. 19 FEBRUARY 2013 PAGE: 205 of 365 Management: The department had filled most of its vacant posts - 46 posts had been filled in 2011/12 (including director, deputy director, deputy chief education specialist, assistant director, two senior education specialists and one senior education specialist per district). An examination unit was established in each of the districts (two officials per district had undergone induction and various training courses). The department was complimented for upgrading and purchasing new machines, and proper access control systems to the printing unit. The department was further commended for the establishment of nodal points to reduce storage at schools, as well as infrastructure developments. Registration: For the province, 134 Examination Centres were registered for the approximately 11 420 registered candidates (9 281 full-time and 2 139 part-time). These could further be broken down per district as follows: John Taolo Gaetsewe - 1 841 Frances Baard - 3 434 Namaqua - 860 Pixley - 1 279 Siyanda - 1 867 The number of learners registered in the nine affected schools was 425. Approximately 388 learners were registered in camps (Warrenton Kultuur Oord - 360 and Langberg/S C Kearns Camp – 28). The DBE conducted an audit on registration at the end of August 2012. Printing and Packing: All NSC question papers had been printed under strict security. These question papers were packed and sealed with newly acquired packing machines to ensure minimal human contact under strict security. Question papers were packed per subject, per paper, per centre including centres at risk (special camps). 19 FEBRUARY 2013 PAGE: 206 of 365 Storage and Distribution: Papers were stored centrally and distributed, with armed security, to Nodal points on a weekly basis. The Province had a total of 18 Nodal points servicing 112 schools (with 22 schools which were delivered to directly). This meant that 112 out of 134 centres receive their question papers on a daily basis. The province mitigated risk at the 22 schools by deploying daily monitors to these 22 schools, with officials being rotated. The storage period of question papers was substantially reduced from a period of 3 weeks to 1 week. Collecting, Control and Archiving of Scripts: The province was in the process of constructing a new system administration building and a warehouse to alleviate the problem of undue access of script management officials in printing area. The province planned to split the different sections on completion of the warehouse, but for 2012, scripts would be controlled in the new packaging building. In enhancing control mechanisms for answer booklets, the Northern Cape Department of Education (NCDOE) had introduced the weekly delivery of stationery, which would be controlled on a stationery control list. (In the past, stationary was delivered in two consignments). The daily collection of scripts was done at the camps. Security: The DBE commended the NCDOE on the high security measures in place, which include amongst others: The integrity of staff (long history and signed declarations of secrecy) Buildings with proper security Electronic Access control Strong Rooms complying with all safety specifications Closed circuit camera surveillance and recording in all buildings Control registers 19 FEBRUARY 2013 Security personnel at all high risk entrances Burglar proofing Security Gates Alarm Systems Smoke detectors Fire extinguishers No History of Security Incidents PAGE: 207 of 365 Monitoring and Conduct of Examinations: All Chief Invigilators were trained on the conduct of the examination from the 6 - 24 August 2012. All monitors were trained from 1 – 12 October 2012. Circuit Managers and other officials attended a workshop on examination processes including dealing with irregularities, progressions and promotions in September 2012. All examination processes were monitored with a focus on the writing phase of the examination by Province, DBE and Umalusi. Centres at risk would be monitored on a daily basis. School Based Assessment (SBA): The Province introduced a mid-year NSC SBA moderation that was conducted and monitored (verified) from 9 - 13 July 2012 in the five respective districts. Portfolios/evidence of 20 learners and educators were sampled from selected subjects from 10 schools per district. The provincial end of the year SBA moderation was conducted from 20 – 26 October 2012, whereby learner evidence from all schools and all subjects were moderated. The DBE and Umalusi monitored the provincial moderation process. The capturing of the SBA marks would take place from the 1 - 19 November 2012. It was important that all centres submit an SBA mark, including centres at risk. Special arrangements were made for Langberg learners to ensure compliance. 19 FEBRUARY 2013 PAGE: 208 of 365 Marking: Three marking venues were identified and contracted in Kimberley. A total of 900 staff had been appointed to mark and administer the marking of the Grade 12 scripts. Venue Management Training was scheduled for 26 November 2012 with markers training scheduled for 1 - 2 December 2012. Marking would commence on 1 December 2012 and would be concluded by 14 December 2012. Marking would be monitored by the province, the DBE as well as monitors from Umalusi. The capturing of marks would take place from 1 - 16 December 2012. The marking statistics were as follows: REQUIREMENTS TOTALS Marking centres 3 Markers 593 Senior Markers 134 Chief Markers 63 Internal Moderators 63 Total number of marking officials 853 End of Year Processes: The Provincial Irregularity Meeting was scheduled for 13 December 2012 and the National Irregularity Meeting was scheduled for 18 December 2012. The DBE and Umalusi Standardisation Meeting was scheduled for 21 December 2012 with the printing of results scheduled for 29 and 31 December 2012. The release of results and media briefing of the MEC was scheduled for 3 January 2012. 19 FEBRUARY 2013 PAGE: 209 of 365 12. Engagement with Organised Labour Unions – Northern Cape 12.1 National Professional Teachers Organisation of South Africa (NAPTOSA) – One issue raised was that of the learners at cross-boundary schools that was brought to the attention of the department and had been resolved. Shop stewards had been monitoring at various examination centres and to date had no major problems to report. Although protest action had stopped at the John Taole Gaetsewe District, Saturday classes continued. The relationship with the provinces had since deteriorated but a meeting was planned with the provincial department in the near future. The view of NAPTOSA in respect of the competency testing was that the testing played an important role in the selection of markers. Markers needed to be at a certain level to be eligible to mark. The union received no negative feedback from its members who wrote the competency test. The union also urged the Department to speedily address the issue of the delivery of books to schools. 12.2 Professional Educators Union (PEU) – The union concurred with NAPTOSA and added that it was important that there be a good working relationship between the unions and the provincial department. 13. In-loco Site Visits to Printing, Packaging and Distribution Facilities Apart from the engagements with all the stakeholders in the districts visited, the Portfolio Committee also undertook in-loco site visits to the printing, packaging and distribution facilities at the Ugu and Pinetown District offices as well as Kimberly in the Northern Cape. The Committee was very impressed with the high standard and the heightened security at these facilities. Members of the Committee were able to tour the factory floor and gain first-hand knowledge 19 FEBRUARY 2013 PAGE: 210 of 365 of how the questions papers were printed, packaged and ready for distribution. Members were taken through the procedures followed when scripts were received from principals after the days writing and how these scripts were collated, monitored and stored. 14. Committee Observations The Committee noted the following key issues and concerns regarding the state of examination readiness in the Northern Cape: The Committee was satisfied that the Northern Cape Department of Education was ready and prepared to administer the National Senior Certificate examination. The NCDOE had made the necessary preparations, including the registration of learners and examination centres, the packing, printing, storing and distribution of question papers under strict security controls. The examination was also progressing well without major irregularities. During the previous oversight visit to the Province at the beginning of October 2012, the Portfolio Committee applauded the efforts of the NCDOE, in collaboration with relevant stakeholders, to create the necessary environment for learners affected by the protest action in order to continue schooling at special centres. However, of concern to the Committee was the number of learners who had had very little or no schooling for the period of the protest action and beyond. To date some were still not receiving any tuition nor were they writing the examination. The situation needed to be resolved speedily. Competency tests for markers remained a contentious issue. It was important that this issue be finalised as soon as possible through engagements with all unions. 19 FEBRUARY 2013 PAGE: 211 of 365 Members queried the reason for some schools being allowed to store question papers at the school. What were the security issues pertaining to this storage? How was the integrity and assessment of those who handled the papers physically ascertained? It was important that the province pronounced itself on the “pass-one-pass-all” scenario. Questions were raised about possible protest action calling for “pass-one-pass-all” Was the Department investigating this scenario? The Committee noted the challenges in respect of infrastructure that sparked the protest action and accepted that these formed part of the Integrated Development Plans (IDPs) of municipalities. Plans were in place to address these challenges, but due to budgetary constraints they could not be rolled-out. The costs of study camps were approximately R17 million and these were not budgeted for or planned. The Committee advised the Department during the previous oversight visit to approach the Provincial Treasury for assistance in accessing additional funds. It was important that schools develop their own recovery plans, with the provincial department adapting work schedules, as well as common task assessments. Curriculum coverage needed to be monitored very closely. Members were further concerned about possible disruptions at marking centres. Irrespective of the protest action, Members were concerned with the low pass percentage for some of the districts generally. 19 FEBRUARY 2013 PAGE: 212 of 365 It was essential that the dispute on the remuneration of markers be resolved as soon as possible. The Portfolio Committee agreed that it should meet with Provincial Portfolio Committee Chairpersons at least once per term/quarter to close gaps that exist and create synergy. The Committee was concerned about reports that CAPS textbooks for the Foundation Phase and Grade 10 were not delivered to some schools in the Northern Cape and the impact that this had on teaching and learning. It was important to receive a list of those schools who, to date, had not received any textbooks for the Foundation Phase and Grade 10, as well as workbooks. 15. Recommendations The Portfolio Committee on Basic Education, having conducted the oversight visit to KwaZulu-Natal and the Northern Cape, and considered the issues that were raised, makes the following recommendations: The Minister of Education should ensure that: 15.1 Parliament is updated on plans to address the challenge of insufficient storage space for examination material in Port Shepstone (Ugu District). 15.2 The Northern Cape Department of Education should continue giving support into 2013 to learners who had very little or no schooling for the period of the protest action. It is important that there be consultation with the Northern Cape Department of Education to investigate how 19 FEBRUARY 2013 PAGE: 213 of 365 the Province could find the necessary funding. A report on the Department’s learner support plans for 2013 should be submitted to Parliament within three months of the adoption of this report. 15.3 The issue of the competency tests for markers should be resolved as soon as possible through engagements with all unions. A report in this regard should be submitted to Parliament within three months of the adoption of this report by the National Assembly. 15.4 The dispute on the remuneration of markers should be resolved as a matter of urgency. 15.5 The Northern Cape Department of Education should enquire about the allegations of the nondelivery of textbooks and workbooks. 15.6 The allegations made by the KwaZulu-Natal Department of Education of not receiving the Occupation Specific Dispensation (OSD) allowances are investigated and the necessary procedures be put in place to ensure that the Department receives its OSD allowances in accordance with the relevant regulations. Report to be considered CREDA INSERT - T121123e-insert3 - PAGES 4996-5001 MONDAY, 26 NOVEMBER 2012 TABLINGS 19 FEBRUARY 2013 PAGE: 214 of 365 National Assembly and National Council of Provinces 1. The Minister of Trade and Industry (a) General Notice No 922, published in Government Gazette No 35862, dated 7 November 2012: General Explanatory note: Shorter payment period principles in terms of the BroadBased Black Economic Act, 2003 (Act No 53 of 2003). (b) Government Notice No R.929, published in Government Gazette No 35867, dated 16 November 2012: The Introduction of the Compulsory Specification for Pressurised Paraffin Appliances VC 9093 in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). National Assembly 1. The Speaker (a) Public Protector Report No 3 of 2012-13 on an investigation into allegations of a breach of the Executive Ethics Code by the Minister of Agriculture, Forestry and Fisheries, Ms Tina Joemat-Pettersson, MP. TUESDAY, 27 NOVEMBER 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces 19 FEBRUARY 2013 PAGE: 215 of 365 The Speaker and the Chairperson 1. Draft Bills submitted in terms of Joint Rule 159 (1) Fertilizers and Feeds Bill, 2012, submitted by the Minister of Agriculture, Forestry and Fisheries. Referred to the Portfolio Committee on Agriculture, Forestry and Fisheries and the Select Committee on Land and Environmental Affairs. 2. Bills passed by Houses – to be submitted to President for assent (1) Bills passed by National Council of Provinces on 27 November 2012: (a) Taxation Laws Amendment Bill [B 34 – 2012] (National Assembly – sec 77). (b) Tax Administration Laws Amendment Bill [B 35B – 2012] (National Assembly – sec 75). National Assembly The Speaker 1. Introduction of Bills 19 FEBRUARY 2013 (1) PAGE: 216 of 365 The Minister of Agriculture, Forestry and Fisheries (a) Fertilizers and Feeds Bill [B 41 – 2012] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 35902 of 23 November 2012.] Introduction and referral to the Portfolio Committee on Agriculture, Forestry and Fisheries of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM within three parliamentary working days. (2) The Minister of Trade and Industry (a) Broad-Based Black Economic Empowerment Amendment Bill [B 42 – 2012] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 35907 of 23 November 2012.] Introduction and referral to the Portfolio Committee on Trade and Industry of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. 19 FEBRUARY 2013 PAGE: 217 of 365 In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM within three parliamentary working days. (3) Dr M G Oriani-Ambrosini (a) National Credit Amendment Bill [PMB 1 – 2012] (National Assembly – proposed sec 75) (see below) [Bill and prior notice of its introduction published in Government Gazette No. 35876 of 16 November 2012.] Introduction and referral to the Portfolio Committee on Trade and Industry 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. CREDA INSERT - T121127e-insert – PAGES 5013-5016 THURSDAY, 29 NOVEMBER 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces 19 FEBRUARY 2013 PAGE: 218 of 365 The Speaker and the Chairperson 1. Bills passed by Houses – to be submitted to President for assent (1) 2. Bills passed by National Council of Provinces on 29 November 2012: (a) Credit Rating Services Bill [B 8B – 2012] (National Assembly – sec 75). (b) Financial Markets Bill [B 12B – 2012] (National Assembly – sec 75). (c) Adjustments Appropriation Bill [B 32 – 2012] (National Assembly – sec 77). Draft Bills submitted in terms of Joint Rule 159 (1) South African Human Rights Commission Bill, 2012, submitted by the Minister of Justice and Constitutional Development. (2) Judicial Matters Second Amendment Bill, 2012, 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 19 FEBRUARY 2013 PAGE: 219 of 365 The Speaker 1. Message from National Council of Provinces to National Assembly in respect of Bills passed by Council and returned to Assembly (1) Bill, subject to proposed amendments, passed by Council on 29 November 2012 and returned for consideration of Council’s proposed amendments: (a) Protection of State Information Bill [B 6B – 2010] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 27 November 2012, p 5024). TABLINGS National Assembly 1. The Speaker (a) CREDA INSERT - T121129e-insert.pdf – PAGE 5070 (b) Letter from the Minister of Social Development dated 9 November 2012, to the Speaker of the National Assembly explaining the late tabling of the Central Drug Authority 2011/2012 Annual Report in Parliament. EXPLANATION ON THE LATE TABLING OF THE CENTRAL DRUG AUTHORITY 2011/12 ANNUAL REPORT IN PARLIAMENT 19 FEBRUARY 2013 PAGE: 220 of 365 In terms of section 53(11)(a) (b) of the Prevention of and Treatment for Substance Abuse Act (Act No 70 of 2008), the Executive must table the Central Drug Authority (CDA) report in the National Assembly. In addition hereto, the Public Finance Management Act, Act No.1 of 1999, as amended, requires in terms of section 65 (1) (a) the Executive to table the Central Drug Authority Annual Report in the National Assembly. Subsection (2) (a) further requires the Executive to table a written explanation to Parliament on the circumstances that prevented tabling such a report within six months from the end of the financial year. There was a delay in the finalisation of the 2011/12 CDA Annual Report due to late submission of reports from various government departments. The aforementioned circumstances outside the Department of Social Development (DSD) could not allow for constructive tabling. Enclosed herewith is a copy of the 2011/2012 Annual Report for official tabling. Accordingly, I humbly appeal to Parliament to accept the CDA Annual Report for 2011/2012 for tabling in Parliament and consider an integrated oversight review and referral process on this matter. Kind regards 19 FEBRUARY 2013 PAGE: 221 of 365 (Signed) MS B O DLAMINI MINISTER OF SOCIAL DEVELOPMENT COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Agriculture, Forestry and Fisheries on the request to nominate candidates for appointment to the board of the Land Bank, dated 26 November 2012: The Portfolio Committee on Agriculture, Forestry and Fisheries, having considered the request by the Minister of Finance, to the National Assembly to nominate suitable candidates for appointment to the board of Land Bank, referred to it for consideration on 11 October 2012 (see ATC, 11 October 2012), reports as follows: After having deliberated on the list of nominees on 26 November 2012, the Committee recommends, in accordance with Section 4(2) of the Land and Agricultural Development Bank Act, (Act No 15 of 2002), to the Minister of Finance that the following candidates be nominated for appointment to the board of the Land Bank: 1. Mr Vusumzi Matikinca 2. Dr Edwin Alfred Conroy 19 FEBRUARY 2013 PAGE: 222 of 365 FRIDAY, 30 NOVEMBER 2012 COMMITTEE REPORTS National Assembly 1. Preliminary report of the Portfolio Committee on Trade and Industry on the implementation of the Industrial Policy Action Plan with specific reference to the state of the manufacturing sector, dated 29 November 2012 The Portfolio Committee on Trade and Industry having considered the progress report on the implementation of the Industrial Policy Action Plan for 2011/12, and having conducted public hearings that focussed on the challenges, constraints and contribution it is expected to make on employment creation through beneficiation and manufacturing, prepared a preliminary report as follows: 1. Introduction The Industrial Policy Action Plan is a priority policy instrument of Government over which the Committee has exercised its oversight vigorously since August 2009. This influences a more focussed IPAP2 that was more tightly aligned with the New Economic Growth Path and finally IPAP3 which prioritised core industries and manufacturing enterprises to accelerate the employment creation and economic growth in South Africa and the region. Each year the Committee focussed on different issues beginning with steel as an essential input to industrialisation then infrastructure broadly. This 19 FEBRUARY 2013 PAGE: 223 of 365 year in 2012 the Committee focussed on the constraints of electricity, ports and administered prices costs impose on IPAP, and the critical need for beneficiation, the measures currently in place but not implemented and measures that may require legislative action. The revised Industrial Policy Action Plan (IPAP2) was a radical shift to grow a developmental economy by ensuring that investment targets productive sectors of the economy to arrest the decline in manufacturing and accelerate employment creation. Within the context of the New Growth Path, IPAP2 focused on value-added sectors with the potential for high employment creation and growth multipliers. IPAP also correctly identifies that monopolistic pricing of certain minerals and most semiprocessed raw materials such as steel and chemicals in the form of import parity pricing has negatively affected the development of industry within South Africa, which is a resource-rich country. 2. Economic Context The conversion of South Africa’s mineral endowment to facilitate socio-economic development would be aided by incentives to promote local beneficiation. The primary sector has a lead role to play to enable South Africa’s comparative advantage. This will assist in industry’s global competitiveness and can lead to increased job creation and retention. South Africa’s continued exports of its mineral resources with minimal beneficiation will further undermine the manufacturing sector. Currently, raw ore is exported with no or limited investments down the value-chain. The result of this is that the developmental linkages and broader manufacturing capabilities, such as research and training, are undermined. 19 FEBRUARY 2013 PAGE: 224 of 365 The global recession of 2008 had a negative impact on the manufacturing sector which led to massive job losses in the sector. Currently, South Africa’s growth is driven by credit-fuelled non-tradable sectors with the tradable export sectors languishing. A consequence of this is the expansion of the import market which has created an entrenched external imbalance reflected in the large current account deficit. The recent Purchasing Managers’ Index registered a three year low indicating declining business confidence and a contraction in the manufacturing sector. Recent data indicates a sharp rise in imports which is at the expense of jobs with exports moving on a flat trajectory. High administered prices have contributed to South Africa’s relative lack of competitiveness with some of its trading partners reportedly reducing their industrial electricity rates. South Africa’s electricity tariff hikes, together with the global economic environment, as well as domestic inefficiencies represent a real threat to the manufacturing sector. In line with its oversight responsibility, the Committee received regular updates on the implementation of IPAP. In order to ascertain whether IPAP has been the catalyst for growth in the productive sectors of the economy and/or whether impediments exist within the economy that could undermine the rationale of IPAP, public hearings were scheduled on the state of the manufacturing sector. 3. Economists and Stakeholders 19 FEBRUARY 2013 PAGE: 225 of 365 The Committee invited the following economists: Dr Simon Roberts on the state of the economy and the impact of electricity on manufacturing, and Professor Ben Turok (MP) on beneficiation. Several government departments and an entity, namely the Departments of Trade and Industry and of Public Enterprises and the South African Local Government Association (SALGA), were invited to comment on the impact of administered prices on the manufacturing sector. The National Electricity Regulator of South Africa was also invited to comment on the issues before the Committee. The South African Maritime Safety Authority commented on the potential and opportunities for the maritime industry in relation to industrial development with specific focus on the boat building. State-owned companies (SOC) such as Eskom and the Transnet National Ports Authority were also invited to comment on the issues before the Committee. Furthermore, other stakeholders and companies that were sensitive to changes in electricity tariffs were invited to the public hearings These included the Manufacturing Circle, the Energy Intensive User Group of Southern Africa (EIUG), Free State Gold Fields Chamber of Commerce (FSCC), the National Foundry Technology Network (NFTN), Silicon Technology, Scaw Metals Group, the Apparel Manufacturers of South Africa (AMSA), the Eastern Cape Socio Economic Consultative Council (ECSECC), National Association of Automobile Manufacturers of South Africa National (Naamsa), National Association of Automobile Component and Allied Manufacturers (Naacam), Ford Motor Company of South Africa, and Shatterprufe. 4. Emerging Issues 4.1 Electricity Tariffs 19 FEBRUARY 2013 PAGE: 226 of 365 a. The perceived negative impact of Eskom’s transition to a cost-reflective pricing regime on the economy despite Eskom’s efforts to increase tariffs at a lower rate than initially indicated. b. The DPE and Eskom explained that the lack of infrastructure investment in prior years led to aged infrastructure, if not adequately maintained and replaced, could lead to energy supply constraints. c. Other cost drivers related to the production of electricity included the cost of coal which has been increasing significantly above inflation. d. Concerns were raised with regard to the widening differential between Eskom and municipal electricity tariffs. e. Stakeholders were concerned that the current and future municipal tariffs would threaten the viability of the manufacturing sector, particularly energy-intensive industries. f. There was a need for all energy consumers to shift towards more energy efficient usage. 4.2 Port Tariffs a. According to the National Port Authority, the lack of infrastructure investment contributed to the deterioration of port facilities. Therefore port infrastructure needs upgrading which would be partially funded through higher port charges. b. High port charges have increased transport costs for exports and imports which could contribute to decline in the competitiveness of the manufacturing sector. c. There were general challenges to attract future investment from especially multinationals, as South Africa was facing several administered price hikes as well as skills shortages, low productivity levels and the perceived restrictive labour environment made it relatively uncompetitive compared to other developing countries. 19 FEBRUARY 2013 4.3 PAGE: 227 of 365 Status of local procurement a. Investment by local suppliers was limited due to uncertainty regarding future, particularly long-term, local procurement possibilities. b. Local investors were reluctant to obtain the necessary international quality assurance certification to qualify to be included in multinationals’ global value chains because of the time and effort required to achieve certification. c. Where the promotion of black suppliers is imperative, the DPE and other stakeholders had raised the need for on-going direct support as a constraint to ensure the delivery of quality products that are delivered on time. 4.4 Beneficiation a. If South Africa continues to export its “unbeneficiated” mineral resources and import the final, beneficiated products, it could further undermine the manufacturing sector. This trend would result in the loss or decline of other developmental linkages and broader manufacturing capabilities, such as research and training. b. The promotion of an interface which benefits the national interest is required. This should include pricing arrangements between the mining and manufacturing sectors, limited protectionist arrangements, skills development, positive procurement measures that favour domestic industry and clear taxation policies that would encourage localisation. The Minerals and Petroleum Resources Development Act section 26(3) requires that any person who intends to beneficiate any mineral mined in the Republic (of South Africa) outside the Republic may only do so after written notice and in consultation with the Minister. 19 FEBRUARY 2013 5. PAGE: 228 of 365 Preliminary position of the Committee on IPAP3 The Committee continues to monitor the impact of the steel price on manufacturing and is awaiting a report from an Inter-departmental Committee set up to unpack the impact of the steel price on manufacturing. However, as indicated in the introduction we have begun to dig deeper into other constraints, challenges and impediments while exploring opportunities to overcome these. The most recent constraint or impediment to the manufacturing sector appears to be relatively high administered prices, particularly electricity and port tariffs. The increase in bulk energy cost by Eskom, as well as the high port charges, has a negative impact on consumers. The high electricity tariff increases implemented by municipalities appear to be cross-subsidising other municipal activities. The relatively high administered prices contributed to the loss of many small entrepreneurial businesses, especially in the manufacturing sector, which resulted in the retrenchment of thousands of workers. Currently, the Independent System and Market Operator Bill (ISMO) is before Parliament which seeks to establish an independent structure that is responsible for system operations, the purchase of electricity from electricity generators and selling electricity to distributors and large customers at a wholesale tariff. 6. Conclusion As a result of the complex nature of the issues and divergent information provided by participants, the Committee wanted to develop a deeper understanding of the issues before submitting a definitive 19 FEBRUARY 2013 PAGE: 229 of 365 report on the hearings on the state of manufacturing sector and making recommendations for the House to consider. The Committee will therefore schedule a colloquium from 29 – 31 January 2013 with all stakeholders to determine the way forward. Report to be considered. MONDAY, 3 DECEMBER 2012 ANNOUNCEMENTS National Assembly The Speaker 1. Introduction of Bills (1) The Minister of Finance (a) Banks Amendment Bill [B 43 – 2012] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 35880 of 16 November 2012.] 19 FEBRUARY 2013 PAGE: 230 of 365 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 Speaker and the Chairperson (a) Report of the Electoral Commission on the 2011 Municipal Elections [RP 123-2012]. TUESDAY, 4 DECEMBER 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Bills passed by Houses – to be submitted to President for assent 19 FEBRUARY 2013 (1) PAGE: 231 of 365 Bills passed by National Council of Provinces on 4 December 2012: (a) National Health Amendment Bill [B 24D – 2011] (National Assembly – sec 76). (b) Higher Education and Training Laws Amendment Bill [B 23B – 2012] (National Assembly – sec 75). (c) Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill [B 40 – 2012] (National Assembly – sec 75). National Assembly The Speaker 1. Introduction of Bills (1) The Minister of Tourism (a) Tourism Bill [B 44 – 2012] (National Assembly – proposed sec 76) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 35909 of 30 November 2012.] Introduction and referral to the Portfolio Committee on Tourism of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. 19 FEBRUARY 2013 PAGE: 232 of 365 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. COMMITTEE REPORTS National Assembly 1. REPORT OF THE COMMITTEE ON THE AUDITOR-GENERAL ON THE AUDITORGENERAL OF SOUTH AFRICA BUDGET AND STRATEGIC PLAN FOR THE 2013/14 FINANCIAL YEAR, DATED 20 NOVEMBER 2012 The Committee on the Auditor-General having considered the Budget and Strategic Plan of the Auditor-General of South Africa for the financial year 2013/14, reports as follows: 1. Introduction The Public Audit Act (PAA) no. 25 of 2004, Section 38 (1) requires that the affairs of the AuditorGeneral (AG) be conducted in accordance with a business plan and a budget prepared by the AG for each financial year. The budget must include the estimated and projected revenue and expenditure that relates to the business plan including the basis on which audit fees for the year relate. 19 FEBRUARY 2013 PAGE: 233 of 365 Section 38 (3) of the PAA requires that the AG must at least six months before the start of a financial year submit the budget and a business plan to the oversight mechanism and the National Treasury for planning and preparing the national annual budget. Section 38 (3) further requires that the oversight mechanism consider the budget and business plan and within two months of receipt, submit the recommendations to the Speaker for tabling in the National Assembly and the National Treasury. The Auditor-General has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, the Office of the AG exists to strengthen the constitutional democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence. The purpose of this paper is to highlight the performance targets set for achieving the five commitments and goals presented in the 2013/14 strategic plan of AGSA. The report further analyses the budget of AGSA for consideration by the Committee on Auditor-General as an oversight mechanism of the AG. 2. Projection of non-financial performance The Office of the Auditor-General undertakes to discharge its mandate as the SAI of South Africa. AGSA commits to five predetermined measurable objectives that were set for the medium-term plan to ensure improvement its performance. The AGSA’s predetermined objectives aims to realise a clean audit outcome by 2014, an initiative introduced by the Minister of Cooperative Governance and 19 FEBRUARY 2013 PAGE: 234 of 365 Traditional Affairs (CoGTA). The following measurable predetermined objectives in 2013/14 are used to evaluate the performance of the Office of the Auditor-General: 2.1 Simplicity, clarity and relevance of messages The target for this objective is set at 3 points on the rating scale of 4 points for 2013/14 financial year which is indicated by a clear communication of relevant root cause and recommendations. It will also focus on increasing the volume of performance audits to 10 per cent of the audit work within five years and a growth strategy and plan for the medium term to 2018 to be finalised soon. In 2013/14 AGSA will focus on increasing the implementation of performance audit as follows: Increasing integration of performance audit initiatives, observations and outcomes into regularity audits to ensure consistent and comprehensive audit messages; Enhance interactions with internal and external stakeholders to ensure an understanding of performance audit messages and to influence corrective action in areas where deficiencies have been identified; Create sufficient capacity to perform research and conduct performance audits; Utilise specialist capacity effectively within the Performance Auditing Business Unit to demystify complex areas within the various spheres of government. 2.2 Visibility of AGSA leadership AGSA set a target at 3 points within the rating of 4 points to develop strong stakeholder relationships that encourage clean administration measured at high quality, value-adding stakeholder interactions to be conducted and escalated. 19 FEBRUARY 2013 PAGE: 235 of 365 2.3 Funding A target is set at 1 per cent to achieve net surplus in 31 March 2014 and pay creditors within 45 days from their voucher dates. A target for debt collection average in 2013/14 in all national business units is set at 99 per cent to 101 per cent. The debts collected from the National Treasury in 2013/14 for the municipalities of low capacity, the target is set at 100 per cent. Section 23 (6) of the PAA provides that if an audit fee exceeds one per cent of the total current and capital expenditure of such auditee, such excess must be defrayed from the National Treasury’s vote provided that the National Treasury is of the view that the auditee has financial difficulty. The target is set at 96 to 98 per cent for debts collected in all provincial business units. 2.4 Strengthen human resources To have a motivated, high-performing and diverse workforce, AGSA set a target at: 90 per cent to achieve occupancy level; 3.4 rating in achieving culture index; and 3.4 rating in achieving leadership index. The industry norm is rated at 3.2 per cent according to the five point Linkert scale from 1 to 5. AGSA’s human capital initiatives are to intensify the relevant training and skills development and to create audit professionals with integrity and ethics. 2.5 Lead by example To continue adhering to standards of excellence for clean administration, AGSA committed to obtain a clean audit report in 2013/14. To continuously improve the timeliness of AGSA as legislated, the 19 FEBRUARY 2013 PAGE: 236 of 365 target is set at 95 per cent in 2013/14 for investigations deadlines. A target is set at 90 per cent for submitting audit reports of Public Finance Management Act 1 of 1999 (PFMA) and Municipal Finance Management Act 56 of 2003 (MFMA) by AGSA. To maximise the AGSA’s contribution to transformation, a target is set at 3 points on a rating scale of 5 to achieve the identified Broad-Base Black Economic Empowerment (B_BBEE) in 2013/14 committing to be reviewed by an independent reviewer. AGSA also committed to a sustainable performance review by acknowledging the importance of environmental and sustainable development issues. In leading by example, AGSA promised to establish the baselines for the following: Electricity and water use; Paper use and paper waste generated; Business travel by vehicles and by flights; Carbon footprint; Completion of annual disclosure of interest declarations; and Incidents of integrity beach by AGSA’s employees. The sustainability performance review is the King III best practice initiative that an organisation’s board should use to ensure that the organisation is seen to be a responsible corporate citizen, appreciate that strategy, risk, performance and sustainability are inseparable, and realise that sustainability reporting and disclosure should be integrated with the organisations financial reporting. 19 FEBRUARY 2013 PAGE: 237 of 365 3. Projection of financial performance AGSA is leading by example that the auditees can adopt including the projections of the financial performance of financial statements. The projected financial statements are not only provided as a snapshot, but they are also a powerful tool that AGSA uses to evaluate its strengths and weaknesses in financial performance and pave the way forward. Therefore, the projected financial statement of AGSA projects the financial position, income and cash movement and guide AGSA’s financial performance and its standing by suggesting ways to achieve clean audit at the end of 2013/14 financial year. Projected statement of financial position (balance sheet): The projected statement of financial position projects AGSA’s assets and liabilities reflected in short and long term obligations; Projected statement of comprehensive income: The projected statement of comprehensive income or (profit and loss statement) identifies AGSA’s projected revenue and expenses for the 2013/14 financial year; Projected cash flow statement: The cash flow statement of AGSA forecasts the amounts of cash and cash equivalents over the 2013/14 financial year. It also projects the cash and cash equivalents of AGSA, which influence its continuity and ability to pay suppliers. Remunerate its employees and honour the short term liabilities. The projection of financial statements also serve as a planning tool that can be used by auditees to address the uncertainty of clean audit outcome without relying only on guidance of accounting procedures and policies during the financial year. 19 FEBRUARY 2013 PAGE: 238 of 365 4. Budget Analysis The total budget of AGSA amounts to R 2.555 billion in 2013/14, increasing by R73.5 million from R2.226 billion in 2012/13 financial year. 4.1 Audit income Audit income includes own hours, contract work, subsistence and travel and present value of revenue adjustments. Total revenue amounts to R2.474 billion. 4.2 Other income Other income comprises of interest received, interest received SCMB (write out in full) and sundry income which amounts to R80.709 million. 4.3 Direct audit expenditure Direct audit cost includes contract work of audit income and subsistence and travel amounting to R1.8 billion. 4.4 Operating cost Operating costs are associated with the administration expenses on day to day basis. Operating costs remain the same regardless of a number of variables that can vary according to quantity. Total operating costs amounts to R828.6 million. The key drivers of the operating costs are the salaries, salary increment and maintenance of business operations. 4.5 Other expenses Other expenses are associated with non-operating activities, such as interest expenses on liabilities, bad debts provision and depreciation. Depreciation is the decrease in value of assets, and the 19 FEBRUARY 2013 PAGE: 239 of 365 allocation of the costs to periods in which the assets are used. Generally, the cost is allocated, as depreciation expense in the period in which the asset is expected to be used. Such expense is recognised for financial reporting. AGSA made provision for depreciation in 2013/14 amounting to R47.4 million, increasing by R7.3 million from R40 million in 2012/13 financial year. The provision for bad debts amounts to R20.5 million in 2013/14 increasing from R5.1 million in 2012/13. 4.6 Capital Expenditure The budget for capital expenditure is provided to acquire the following assets: Motor vehicles; Furniture and equipment; Computer equipment; Computer software; and Leasehold improvement and obligation. Included in capital expenditure budget are the amounts to be spent on: 4.7 Acquiring fixed assets and in some cases, intangible assets such as computer software; Repairing of existing assets to improve its useful life; and Restoring property or adapting it to a new or different use. Net Surplus 19 FEBRUARY 2013 PAGE: 240 of 365 Net surplus is the profit remaining after subtracting the operating expenses, taxes, interest, insurance and other expenses. AGSA projected net surplus of R25 million or 1.02 per cent of total income in 31 March 2014, decreasing from R46 million or 2.07 per cent in 31 March 2013. The AG reduced the projected surplus by increasing the operational costs to avoid potential conflict between trying to maximise surplus and carrying out the operational activities. 5. Tariffs Section 23 (1) of the PAA requires that the AG determines the basis for the calculation of audit fees to be recovered from auditees in respect of audits performed. AGSA is increasing the audit tariffs by 5.7 per cent in 2013/14 financial year. The tariffs increase is affected by the market related salary increase of 8.1 per cent. The salary increase is one of the major cost drivers that determine the budget of AGSA in 2013/14 financial year. 6. Audit Directives Section 13 of the PAA requires that the AG must determine the standards, scope and nature of audits after consulting with the Committee. However, the AG advised the Committee that it was not necessary to update the audit directive of 2012/13 that was published in the Government Gazette No. 34783, volume 557 of 28 November 2011 as it would still be effective in 2013/14 financial year. 7. Recommendations The Committee on Auditor-General recommends that: Parliament approves the audit tariffs increase of 5.7 per cent for the financial year 2013/14; and 19 FEBRUARY 2013 PAGE: 241 of 365 Parliament also approves the Auditor-General’s request that the audit directive of 2012/13 as published in the Government Gazette No. 34783, volume 557 of 28 November 2011, remain in force. Report to be considered. 2. REPORT OF THE COMMITTEE ON THE AUDITOR-GENERAL ON THE ANNUAL REPORT OF THE AUDITOR-GENERAL OF SOUTH AFRICA FOR THE FINANCIAL YEAR 2011/12, DATED 20 NOVEMBER 2012 The Committee on the Auditor-General, having considered the Annual Report of the Auditor-General of South Africa for the financial year 2011/12, report as follows: Introduction The Constitution of the Republic of South Africa (Act 108 of 1996) requires state institutions supporting democracy to be accountable to the National Assembly (NA) and to report on their activities and the performance of their functions to the National Assembly at least once a year. In addition, section 10 (1) of the Public Audit Act no. 25 of 2004 requires the office of the AuditorGeneral (AG) to report annually to the National Assembly on its activities and the performance of its functions. Auditor-General of South Africa (AGSA) is the Supreme Audit Institution of the Country. Section 181 (1) (e) of the Constitution establishes the AGSA as the institution that strengthens constitutional democracy in South Africa. The governing principle vested upon the AG by section 181 (2) of the Constitution states that the AGSA is independent, and subject only to the Constitution and the law, and it must be impartial and must exercise its powers and perform its functions without fear, favour or prejudice. 19 FEBRUARY 2013 PAGE: 242 of 365 The National Assembly established the Committee on the Auditor-General as an oversight mechanism to monitor the performance of the Auditor-General. The AG’s annual report forms a significant part of this Committee’s responsibility in meaningfully overseeing the performance of the Office of the Auditor-General. The mandate of the Committee is to assist and protect the AGSA to ensure its independence, impartiality, dignity and effectiveness of the Office of the Auditor-General. 2. Performance evaluation of predetermined objective The non-financial performance in this report is based on measuring actual performance against targets set on the following predetermined objectives as indicated in AGSA’s strategic plan for 2011/12 financial year: 2.1 Simplicity, Clarity and Relevance of Message Committing to this objective, AGSA aims to empower the public to hold government accountable and responsive through objective information and reporting in a language that is understood by the stakeholders, allowing them to action audit reports. AGSA achieved this objective as the achievement is demonstrated by the reaction of stakeholders including legislative oversight, the executive, accounting officers and coordinating ministries, to address the root cause of audit outcomes. 2.2 Visibility of Leadership The fulfilment of AGSA’s promise in this objective is indicated by the ongoing engagement with the following internal role players and the stakeholders: 19 FEBRUARY 2013 PAGE: 243 of 365 The management of AGSA: the Deputy Auditor-General held series of in-depth discussions regarding the senior management leadership programmes with the management of all business units to enhance and enrich AGSA’s alignment; Constitutional stakeholders: AGSA leadership engaged with the executive authority following on their commitment in 2010/11 financial year to discuss the key controls; Cabinet: AG shared the PFMA and MFMA audit outcomes with the executive by presenting the outcomes to the cabinet; Executive authority: AGSA leadership encouraged the executive authorities to impact on the internal controls deficiencies within the organisations under the executive authorities; Audit committees: AGSA engaged audit committees at forum level in which the relationship with them was strengthened; Speakers’ Forum: AG extended interactions by engaging with the Speakers’ Forum, a critical oversight that drives the priorities of the legislative sector; National Assembly and National Council of Provinces: AG engaged the Chairpersons of both Houses during the presentation of the PFMA and MFMA audit outcomes. The provincial oversight authorities were included in the interaction during the roadshows; Association of Public Accounts Committees (APAC): AGSA leadership gets an opportunity to interact with the members of the Public Accounts committees during APAC training sessions; Municipal door-to-door visits: AGSA leadership concluded its programme of door-to-door visits to seven provinces in previous years. In 2011/12 financial year, the AG visited all 61 municipalities in KwaZulu-Natal Province; Interaction with the media: To ensure transparency of audit findings and to communicate them to the public, AGSA used extensive media coverage. 19 FEBRUARY 2013 PAGE: 244 of 365 Coordinating ministries: AGSA leadership engaged with the Presidency, the Department of Public Service and Administration and the Department of Cooperative Governance regarding financial and performance management in the public sector; Public sector regulators and standard authors: As a member of the Professional Standards Committee of International Organisation of Supreme Audit Institution (INTOSAI), AGSA has a close relationship with the Independent Regulatory Board for Auditors (IRBA), the Accounting Standard Board of South Africa (ASB), and the Accountant-General’s Office in the National Treasury; Professional bodies: The trainee Auditors at the AGSA participated in the leadership programmes of the South African Institute of Chartered Accountants (SAICA), the Southern Institute of Government Auditors and the Information Systems Audit and Control Association; Contracted private firms: AGSA fostered a close relationship with contracted private audit firms by including them in its training, road-shows and stakeholder interactions; and International collaboration: AGSA played a leading role in INTOSAI throughout the past years as the chairperson of the Working Group on the Value and Benefits of the Supreme Audit Institutions (SAIs). The engagement with the above stakeholders is the evidence that AGSA fulfilled its promise by strengthening communication for better understanding of AGSA’s responsibilities, audit work and findings. AGSA also engaged these stakeholders responding to changing environments and stakeholder expectations without compromising its independence. 19 FEBRUARY 2013 2.3 PAGE: 245 of 365 Leading by example AGSA promised to lead by example on matters of risk management, Auditing standards and methodology, internal controls, transformation, quality and timeliness of AGSA’s products as encouraged by the fundamental requirement 11 of INTOSAI. The fundamental requirement 11 of INTOSAI stipulates that in keeping with the principle of leading by example, SAIs need to adhere to the same, appropriate rules and philosophy that SAIs expect from auditees as a minimum. The performance of AGSA in this objective is indicated as follows: Auditing standards and methodology: Section 13 (1) of the PAA requires that the AG, after consulting the oversight mechanism (the Committee), must determine the auditing standards to be applied in performing audits on the accounts, financial statements and financial management of all national, provincial state departments and administrations and all municipalities and municipal entities. AGSA is one of a few SAIs in the world that has fully implemented the clarified international Standards on Auditing in SAIs regularity audits; Quality of audits performed: AGSA engaged in performance review by the Independent Regulatory Board of Auditors (IRBA) regarding adherence to all quality standards. In the strategic plan AGSA set a target at 86 per cent for 2011/12, however, the actual performance fell to 70 per cent. The AGSA’s actual performance in 2011/12 declined compared to the actual performance in 2010/11 which was rated at 77 per cent. Timeliness of audit reports: AGSA set a target at 90 per cent in complying with statutory and legislative deadlines for PFMA and MFMA audit reports but AGSA achieved compliance with legislative deadline of 95 per cent, exceeding the target; Striving towards an ethical culture: AGSA fulfilled the promise that ensures that the Code of Good Practice is founded on the principles of the International Federation of Accountants 19 FEBRUARY 2013 PAGE: 246 of 365 (IFAC), INTOSAI codes of ethics and AGSA’s own procedures on ethical and independence requirements, are applied and adhered to; Maximising the impact of transformation: AGSA has been certified a level 3 contributor by independent economic rating agency Empowerdex. To comply with preferential procurement policy requirements, AGSA realigned its enterprise development plan so that the focus is on stimulating sustainable black enterprise development, contributing to the growth of the profession, and seeking innovative and creative solutions to enterprise development. To lay the foundation for equitable future, AGSA focused extensively on gender equality and embarked on an all-embracing disability awareness campaign to address gender and disability-related challenges as identified in the 2010 employment equity report to the Department of Labour; Investing in excellence through corporate social investment: AGSA approached Corporate Social Investment (CSI) by developing a CIS plan which is investing towards educational freedom and making a meaningful contribution to the lives of the community members. This is done through the rural schools programme which is focusing on creating awareness of the accounting and auditing profession to enable growth in the profession, thereby contributing towards the sustainability of the economy; Leading by example through proactive risk management: AGSA has enhanced its risk management processes in 2011/12 to reach a higher degree of alignment with the King III Code of governance principles and other best practices, such as Committee of Sponsoring Organisations (COSO) and International Standard Organisation (ISO). AGSA has also achieved clean audit report as the target was set at achieving clean audit report again in 2011/12; Information and communications technology: All Information and Communications Technology (ICT) policies, procedures and service level agreement (SLA) between ICT and business units were reviewed to strengthen AGSA’s internal IT control environment. The data 19 FEBRUARY 2013 PAGE: 247 of 365 analysis (QlikView) reporting tool was procured and the SLA reporting function was implemented within the tool. AGSA experienced delay in the implementation of the Customer Relationship Manager (CRM) tool due to unavailability of the necessary PeopleSoft skills for the project. This implementation was scheduled to be completed at the beginning of the following financial year in May 2012; Knowledge sharing: In this regard knowledge sharing among the employees provided a platform where the topics of (understanding the audit process and audit outcomes and the general report) were discussed. The renowned speakers were also invited to share their knowledge and experience with the organisation on the art of networking, strength of professionalism and aggressive conversation; and Celebrating 100 years of existence: AGSA successfully celebrated its 100 years of existence not only by targeting the 100 year legacy of the organisation, but also sought to position the vision that the organisation has for its future as it executes its critical mandate for the country and beyond. 2.4 Strengthening human resources AGSA’s many-sided strategy to build a motivated, high-performing and diverse workforce encompasses improvements to the trainee auditor scheme, focus on leadership development, succession planning and performance management, innovative approaches towards sourcing, developing and retaining talent, and creating prospects for the long-term growth of the employees. The effort of AGSA in pursuing this objective is indicated as follows: Employee wellness programme: AGSA initiated the employee assistance programme assisting individual employees with problems ranging from psycho-social to legal, financial as well as other health and wellness-related problems; 19 FEBRUARY 2013 PAGE: 248 of 365 Talent management, retention and recruitment: To strengthen the workforce AGSA introduced a dual career path for leadership and specialisation which aims to recognise employees in various functional streams. Talent is viewed as one of the contributors to the achievement of the organisation’s occupancy levels. A target was set at 80 per cent for achieving occupancy levels for 2011/12, the actual occupancy levels as at 31 March 2012 was at 89 per cent, exceeding the target; Staff turnover profile: The rate of staff turnover in 31 March 2012 was 15 per cent. It exceeded the 11 per cent of staff turnover in 31 March 2011 but it is still below the industry norm of 17 per cent as reported in April 2012; Performance in terms of organisational indices: AGSA set a target of 3.2 per cent in achieving culture index in 2011/12; the actual performance increased to 3.7 per cent, exceeding the target. The target for leadership index was also set at 3.2 per cent in the year under review and the actual performance averaged 3.8 per cent. A target was also set at 3.2 per cent for staff engagement index in 2011/12; the actual performance exceeded the target rated at 4 per cent. The actual performance indicates that AGSA performed above the industry norm in all the three indices that were evaluated in 2011/12; Enhancing the effectiveness of leaders: AGSA initiated the following programmes to enhance the effectiveness of leaders: o Strategic organisational development and leadership; o Executive coaching; o Leadership pipeline development and succession planning; o Building effective business teams; o Executive performance management; and o Continuous learning and professional development. 19 FEBRUARY 2013 PAGE: 249 of 365 Creating a highly skilled workforce – AGSA is creating a highly skilled workforce by growing the number of qualified audit professionals including chartered accountants, registered government auditors and certified information systems auditors. AGSA is one of the biggest donors to the Thuthuka Bursary Fund, through the Fund AGSA is currently sponsoring 40 students per year at a total cost of R1.6 million. AGSA is greatly honoured to be a partner of the University of Limpopo for placing AGSA academic trainees at the school of accounting as they were trying to obtain SAICA accreditation for the undergraduate curriculum. AGSA is also assisting the University of Fort Hare to sustain its SAICA accreditation. In 2011/12 the University of Forth Hare received R3.37 million from AGSA as funding towards the salaries of the lecturers for the school of accountancy and the cost of learning material. 3. Financial performance The Management of AGSA is committed to run the institution economically, efficiently and effectively and observing laws and regulations to ensure financial sustainability and report publicly on these matters. This objective upholds the fundamental requirement 8 of INTOSAI framework which requires transparency and accountability in communicating and promoting the value and benefits of SAIs. The following is the key financial position as highlighted in the integrated annual report of AGSA for 2011/12: Audit income: The audit income is made of revenue generated by AGSA’s employees, private audit firms, recovery of subsistence and travel costs from the auditees and the audit fees paid by the national, provincial and local governments. AGSA budgeted for the audit income of R2.88 billion; however, the actual audit income as at 31 March 2012 compared to the target decreased to R2.7 billion. The decrease on audit income results from the own income and subsistence and travel costs from the auditees; 19 FEBRUARY 2013 PAGE: 250 of 365 Tariffs or charged out rate per hour: The budgeted tariff rate per hour was R489, however, the actual tariff rate was R491; Gross profit: Gross profit remained at 30 per cent the as the previous year within the set target for 2011/12. The variance of 3 per cent results from the present value adjustment of R32.9 million, which was determined at the end of the financial year due to the requirement of the International Accounting Standards; Direct and indirect overheads: The direct costs were budgeted for 67 per cent against the audit income, however, the actual direct costs increased to 70 per cent on 31 March 2012 exceeding the target by 3 per cent. Indirect costs were budgeted for 31 per cent; the actual expenditure fell at 29 per cent below the target by 2 per cent. AGSA should be commended for maintaining the average trend of expenditure in both the direct and indirect costs. These costs are not easily controllable because are also determined by the economic external factors beyond their control; Surplus: The target to accumulate surplus was set at 3.8 percent, the actual surplus fell at 4.8 percent (R99 million). The increase in actual surplus is due to interest income being higher than budgeted and remarkable under-spending on indirect cost in certain classes of operating expenses such as staff remuneration, professional assistance and information technology projects. The under-spending results from delays in the start of some projects; Financial position: The financial position of AGSA indicates a significant increase in equity. Equity is the balance after all debts and obligations have been paid off. It includes outstanding debts that can be converted to cash in a short period of time or within a year. Therefore, AGSA has a strong financial position that means it can still carry on its day-to-day business; Debtors: At the end of 2011/12 financial year, the total outstanding debt was R480 million compared to 31 March 2011. This indicates that a large number of auditees are not paying their audit fees on time or not paying at all; 19 FEBRUARY 2013 PAGE: 251 of 365 Debt collection: The local government on 31 March 2012 was still owing R206 million of the total outstanding debts of R480 million (ageing for 233 days), the national departments owing R63 million (outstanding for 15 days), provincial departments owing R124 million (outstanding for 37 days) and the statutory bodies owing R58 million (ageing for 79 days). AGSA received R29 million from the National Treasury covering the debts of some low capacity municipalities. Due to budget constraint National Treasury could not afford the R24 million from the R53 million that was expected from low capacity municipalities; Creditors: AGSA paid its creditors on within the agreed period, this is one of leading by example indicators. In its strategic plan AGSA promised to pay its creditors within 45 days, however, they were be to pay their creditors within 31 days exceeding their target by more than 14 days. This also indicates that AGSA has no cash flow problem; Quick test ratio: AGSA’s closing cash balance increased from R352 million in 2011 to R415 million as at 2012. This indicates that AGSA has a healthy financial position although it also confronted with a challenge of debt collection from the municipalities. 4. Sustainability Performance Review AGSA presented an integrated annual report for the first time, responding to King II best practices advice that an organisation’s board should ensure that the organisation is seen to be a responsible corporate citizen, appreciate that strategy, risk, performance and sustainability are inseparable, and realise that sustainability reporting and disclosure should be integrated with the financial reporting. AGSA achieved a high level of integrating the management of sustainability issues in its core business. Many of the issues in sustainability performance have been integrated in five main objectives of AGSA in which it has performed excellently; 19 FEBRUARY 2013 PAGE: 252 of 365 AGSA responds to the environment positively, as it encourages the recycling of paper and subscription to electronic news papers to support the going green initiatives. AGSA has been awarded the Miercom Green certification for energy consumption due to the network equipment which AGSA has standardised; AGSA reduced the number of business kilometres travelled per employee by initiating technological solutions as follows: o Video conferencing systems were used for a total of 454 meetings during the year which removed the need for the participants to travel and achieved a saving of approximately R1, 3 million; o Staff has accessed to remote AGSA systems from their laptop computers and this reduces the requirement to travel to update information. AGSA has implemented the water saving initiatives. Health and safety manuals and procedures are being developed. 5. Conclusion AGSA should be commended for excellent performance in categories of its day-to-day business activities in 2011/12 financial year. AGSA’s integrated annual report for the period under review is credible and reliable as it reports on the findings of the independent reviewers beginning with the non financial information, financial information and sustainability performance review. 6. Recommendations The Committee on Auditor-General recommends that Parliament approves the surplus to be utilised by Auditor-General of South Africa in the next financial year. 19 FEBRUARY 2013 PAGE: 253 of 365 Report to be considered. 3. REPORT OF THE COMMITTEE ON THE AUDITOR-GENERAL ON THE AUDITORGENERAL OF SOUTH AFRICA (AGSA) CONSOLIDATED AUDIT OUTCOMES OF THE LOCAL GOVERNMENT REPORT FOR THE 2010/11 FINANCIAL YEAR, DATED 20 NOVEMBER 2012. The Committee on the Auditor-General, having considered the Auditor-General of South Africa (AGSA) Consolidated Audit Outcomes of the Local Government Report for the 2010-2011 financial year, report as follows: 1. Introduction Local government comprises eight metros, 46 district municipalities, and 229 local municipalities totalling to 283 municipalities and 60 municipal entities. The number of municipal entities has increased from 57 to 60 since 2009/10 financial year due to the establishment of four new municipal entities in the following provinces: three in the Eastern Cape, and one in Limpopo and the closure of one municipal entity in the Western Cape. Out of 283 municipalities, 243 municipalities submitted financial statements by 31 August 2011 and out of 60 municipal entities 57 submitted financial statements in the same period. Audits of the consolidated financial statements were completed in 30 September 2011 within the legislated time frame of three months from receipt by the AGSA. The Committee on the Auditor-General (Committee) is established by section 10(3) of the Public Audit Act 25 of 2004 (PAA) which stipulates that the National Assembly (NA) must provide for a mechanism to maintain oversight over the Auditor-General (AG) in terms of section 55(2)(b)(ii) of the Constitution. Section 2(c)(i)(ii) of the PAA provide that the Committee must assist the AG in order to 19 FEBRUARY 2013 PAGE: 254 of 365 ensure the independence, impartiality, dignity and effectiveness of the AG; and to advise the NA. Therefore, the Committee assists the AG to improve the effectiveness of the public audit service. However, if the systems of financial management, governance, supply chain management, and human resource capacity are inadequately implemented it may impact negatively on the effectiveness of public audit service. The general issues raised on the consolidated audit outcomes of the municipalities and the municipal entities relate to the following systems: 2. Issues pertaining supply chain management The audit findings arise from the audit of supply chain management (SCM) as follows: Sufficient appropriate audit evidence on compliance with the requirements of the SCM legislation could not be provided by 44 auditees or 15 percent of auditees for contract awards. This limited the planned audit scope of awards as there were no alternative procedures that could be performed to obtain reasonable assurance of expenditure incurred in respect of these contract awards. The reason for the limitation was inadequate record keeping and document management of these municipalities; Contracts were awarded to employees and councillors or other state officials contravening regulation 44 of the SCM which prohibits the awards of contracts to persons or entities owned or managed by them if they are in the service of the municipality or the service of any other state institution. The expenditure incurred in this regard is considered irregular expenditure amounting to R5.87 million. The legislated requirements with regard to declaration of interest were not adhered to. The excuse advanced for the failure to comply with disclosure of interest is that municipalities do not have access to information on persons employed in other state institutions hence they only rely on the declarations provided by the suppliers; 19 FEBRUARY 2013 PAGE: 255 of 365 Contracts were also awarded to close family members of employees and councillors. Regulation 45 of the SCM regulates that the awards of more than R2000 must be disclosed in the financial statements of the auditee for the sake of transparency. A close family member is defined as a spouse, child or parent of a person in the service of the state. The irregular expenditure of awards made to close family members of persons in service of the auditee amount to R227 million; Uncompetitive or unfair procurement processes resulted in the required three price quotations not obtained while deviations were not approved or justified. The preference points system was not applied or not correctly applied; Awards were made to suppliers without proof of good standing from the South African Revenue Service (SARS). The declarations of interest were not always submitted by the providers; as a result the auditees did not have sufficient information to identify conflicts of interest and prohibited awards. As part of the bidding and procurement process, providers are required to declare any connections they have with persons in service of the auditee or other state institutions; Bids were advertised for a shorter period, not adjudicated and evaluated by a properly constituted adjudication and evaluation committees; Measures applied in monitoring the performance of contractors were not sufficient to ensure that contractors delivered in accordance with the contract as the municipality did not have a system in place to record all the payments and monitor the budget of all the contracts they had entered into. 3. Findings on internal control 19 FEBRUARY 2013 PAGE: 256 of 365 Shortcomings on internal controls limit the local government in achieving clean audits relating to reporting on predetermined service delivery objectives and compliance with laws and regulations. The non-compliance may result from weak internal controls. The culture of risk management is generally very low due to ineffective internal controls. The issue of ineffective internal controls is due to the non-functional leadership, poor financial, poor performance management and governance structures. Therefore, the lack of internal controls resulted in material misstatements in financial and performance reports and in findings on non-compliance with laws and regulations. 4. Public finance management The public finance management system shows hold-ups regarding policy implementation and compliance, especially with regard to auditees of the Municipal Finance Management Act 56 of 2003 (MFMA), financial management, and expenditure management. The AG in his presentation highlighted the following key findings: A total of 74 municipalities or 20 percent were still unable to meet the legal requirement for timely submission of financial statements. Fifty-three municipalities or 14 percent did not submit their performance reports; . In 2010/11 only 5 percent of the municipalities obtained the financially unqualified with no findings audit opinion, 40 percent of the auditees received financially unqualified with findings, and 55 percent obtained financially qualified, adverse or disclaimed audit opinion; Non-current assets are a major area in which the financial statements of 95 or 32 percent of auditees that were qualified. The qualification results from the residual values and useful lives 19 FEBRUARY 2013 PAGE: 257 of 365 of non-current assets that were not reviewed and adjusted in the financial statements of the auditees in accordance with GRAP 17. Audit reports indicate that asset management in most municipalities is a challenge where some assets are not even recorded in the asset register; Sufficient appropriate evidence to substantiate recorded liabilities was not available and reconciliations of the supporting ledgers to the financial statements were not performed; VAT principles were applied incorrectly and there were material unexplained differences between the VAT transactions accounted for and the information furnished to the South African Revenue Service by 93 auditees or 31 percent of the auditees; Financial statement related assistance was provided by consultants to 234 or 68 percent of the auditees. The cost incurred by auditees on consultancies is estimated to have exceeded R237 million in 2010/11; Seventy eight or 26 percent of auditees were qualified in the area of revenue in which some auditees did not have adequate systems to ensure that all revenue was recorded. The electricity and water readings were not recorded for all applicable properties and the sufficient appropriate evidence to support recorded revenue was not available; In terms of revenue collection municipalities do not have the same capacity as some municipalities are of medium and low capacity; The significant finding on consistency was that the reported information of 46 percent of auditees was not consistent with planned objectives, indicators and targets. The planned performance targets of 32 percent auditees were not specific, 21 percent not measurable and 26 percent not time bound; Municipalities generally are not timely paying the audit fees to AGSA, though the AGSA does not receive allocation from the national budget it is funded by the audit fees. Section 5(1) of 19 FEBRUARY 2013 PAGE: 258 of 365 the PAA prescribes that the AG may, at a fee, and without compromising the role of the AG as an independent auditor, provide audit related service to all municipalities and all municipal entities. 5. Human resource management Section 68 of the Municipal Systems A 32 of 2000 (MSA) provides that a municipality must develop its human resource capacity to a level that enables it to perform its functions and exercise its powers in an economical, effective, efficient and accountable way, and for this purpose must comply with the Skills Development Act 81 of 1998 and the Skills Development Levies Act, 28 of 1999. The following are the weakest areas of human resource management of a large number of the municipalities: The biggest challenge for local government is to attract and retain qualified competent personnel across all areas of administration. There are about 34 percent of management positions vacancies and this end up in acting positions in local government; Local government is generally less favoured as a potential employer by skilled professionals as a result of the poor image of local government. The compensation is often lower than in the private sector, while the remoteness and poor working conditions, especially in rural municipalities, are obstacles in attracting these professionals which are needed to turn local government around; A number of initiatives have been introduced at national and provincial level to fund the appointment of financial personnel and to promote and implement a graduate internship programme, but they are not yet producing the desired results; 19 FEBRUARY 2013 PAGE: 259 of 365 The vacancies at the level of municipal manager and senior management have the biggest impact on the audit outcomes. Officials are directed to act in these positions until the vacancies are filled, but at 21 percent of the auditees it was noted that acting periods were longer than the accepted benchmark of six months. When the person act in a position tend to not take the full responsibility, functions and powers of the post, with a lower commitment to the deliverables as a result of the temporary nature of the position; Inadequate performance management of accounting officers and employees and a lack of consequences due to poor performance is at the root of many of the failures of local government and was identified in most of the provinces. 6. Information Technology management The AG reported that the lack of capacity to manage financial and performance information and compliance with laws and regulations is further eroded by shortcomings in human resource management in a large number of auditees and the lack of information Technology (IT) governance frameworks in some auditees. The following IT control weaknesses were identified during audit: Design of controls – the majority of municipalities are still in the process of designing key IT controls to ensure effective and efficient IT management within the municipalities; Implementation of controls – although some of the municipalities have adequately designed key controls, they are still experiencing difficulties in implementing these IT controls effectively; 19 FEBRUARY 2013 PAGE: 260 of 365 Operating effectiveness of controls – a slight improvement was noted in user account management in the adequately designed controls that were implemented therefore the management should continue to monitor such implementation to ensure that the controls operate effectively throughout the year; There is no IT governance framework to address the lack of IT risk management and strategic alignment of IT with business and structures to actively monitor service performance by internal and external providers; There are no service level agreement between the municipalities and the vendors supporting their financial systems; Formal access requests have not been used to manage user accounts and backup and retention procedures have not been formally documented and approved by management; IT is still not generally recognised by management as a strategic priority. This is evident by the lack of management commitment on IT matters, as some municipalities did not provide management comments on findings raised in the previous year. The IT system is not adequately funded by the majority of the municipalities. 7. Issues pertaining to governance Governance matters such as the role of managerial leaders and ethics pose threat to clean audit and good governance. This results from the inefficiency and ineffective oversight by leadership of the executive that could impact negatively on the audit outcomes of the auditees. Governance matters serve as a cornerstone for an effective and efficient way in delivering quality service to the community. The governance issues are indicated as follows: 19 FEBRUARY 2013 PAGE: 261 of 365 The lack of oversight by the municipal leadership and the provincial Corporative Governance and Traditional Affairs is one of the general findings in the audit outcome reports. The AG indicated that experience has taught them that when the country’s political leadership sets the right tone and acts on AG’s audit findings and recommendations, the results tend to be positive hence the emphasis on the key objective of visibility of leadership in the AG’s strategic plan; Some municipalities do not have the adequately resourced and functioning internal audit units which identify internal control deficiencies and recommend corrective action effectively. Internal audit units existed at 91 percent of auditees but the annual internal audit coverage plans tended to assign to a low priority to confirm the integrity of performance information and auditing compliance by their organisations with applicable laws and regulations; Generally there is a lack of reviewed financial statements submitted for audit and assurance that measures have been implemented to correct the previous year’s audit findings and also monitoring the action plans to correct audit findings by internal audit units and audit committees. The internal audit and audit committees focus in particular on confirming the credibility of information and ratings in quarterly dashboard reports. 8. Conclusion The MFMA provides clear guidance on the administrative roles and responsibilities of accounting officers and the oversight role of councillors. The MFMA also recognises the municipal council as the highest authority in the municipality and strengthens the power of the council by vesting it with significant powers of approval and oversight. Given the importance of the approval and oversight role of councillors, the MFMA separates the policy-making responsibilities of these role players from the implementation role of the municipal officials. 19 FEBRUARY 2013 PAGE: 262 of 365 However, section 117 of the MFMA prescribes that councillors are therefore not allowed to be members of a municipal bid committee or any other committee evaluating or approving bids, quotations, contracts or other bids nor attend any such meeting as an observer. The AG in his report warned that 70 percent of the officials in key positions of the municipalities did not have the minimum competencies and skills required to perform the jobs. He indicated that the lack of capacity in the municipalities is at the root of the weakness in service delivery and the skills gap is most marked in the financial discipline. 9. Recommendations The Committee on Auditor-General makes the following recommendations: The managerial leaders in the municipalities should be supportive to interrelationship of financial systems, including risk management and internal controls; There should be a balance between evolving public finance management system and public service skills base, as a balance between transformation and skills base is crucial to support effective governance; The accounting officer in the municipality should ensure that the municipality has the audit action plan which facilitates and ease the audit process; The municipalities should make provisions in their budgets for the development and implementation of training programmes; The accounting officer of the municipality should ensure that supply chain practitioners within the municipality and municipal entities are properly trained and may do this by developing a comprehensive training programme for supply chain practitioners. 19 FEBRUARY 2013 PAGE: 263 of 365 When the municipalities and municipal entities are implementing their procurement policy they should be guided by the following documents: o Chapter 11 Part 1 of the MFMA; o Municipal Supply Chain Regulations issued in terms of the MFMA; o Municipal Supply Chain Model Policy issued by the National Treasury to be adopted by the municipality and municipal entity; o Guide on Supply Chain Management for Accounting Officers of Municipalities and Municipal entities – to assist the accounting officers in compiling their internal processes and procedures (operational manual); o National Treasury standard and generic bid document to promote and enhance supply chain management uniformity. The integrated supply chain management system for municipalities and municipal entities contributes significantly towards the improvement of financial management in the broader public sector. Report to be considered WEDNESDAY, 5 DECEMBER 2012 TABLINGS National Assembly and National Council of Provinces 1. The Minister of Finance 19 FEBRUARY 2013 (a) PAGE: 264 of 365 Government Notice No R.920, published in Government Gazette No 35851, dated 9 November 2012: Determination of amounts for purposes of the Act in terms of the Military Pensions Act, 1976 (Act No 84 of 1976). (b) Government Notice No R.967, published in Government Gazette No 35910, dated 30 November 2012: Amendment of Rules (DAR/111) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (c) Government Notice No R.944, published in Government Gazette No 35879, dated 16 November 2012: Amendment of Schedule No 2 (No 2/1/346) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 2. The Minister of Home Affairs (a) Addendum/Erratum on the Annual Performance Plan of the Department of Home Affairs 2012/13. TUESDAY, 11 DECEMBER 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 19 FEBRUARY 2013 1. PAGE: 265 of 365 Assent by President in respect of Bills (1) Sheriffs Amendment Bill [B 2B – 2012] – Act No 14 of 2012 (assented to and signed by President on 6 December 2012). (2) Road Accident Fund (Transitional Provisions) Bill [B 22B – 2012] – Act No 15 of 2012 (assented to and signed by President on 6 December 2012). (3) Veterinary and Para-Veterinary Professions Amendment Bill [B 25B – 2012] – Act No 16 of 2012 (assented to and signed by President on 6 December 2012). (4) Adjustments Appropriation Bill [B 32 – 2012] – Act No 17 of 2012 (assented to and signed by President on 10 December 2012). (5) Division of Revenue Amendment Bill [B 33 – 2012] – Act No 18 of 2012 (assented to and signed by President on 10 December 2012). 2. Classification of Bills by Joint Tagging Mechanism (JTM) (1) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill: (a) Mental Health Care Amendment Bill [B 39 – 2012] (National Assembly – sec 76). National Assembly 19 FEBRUARY 2013 PAGE: 266 of 365 The Speaker 1. Shortlist of candidates for SA National Space Agency Board A letter dated 11 December 2012 has been received from the Minister of Science and Technology, submitting the following shortlist of candidates and their curricula vitae to the National Assembly in terms of section 7 of the South African National Space Agency Act (No 36 of 2008), the Assembly to submit an approved shortlist of candidates to the Minister for appointment to the South African National Space Agency board: Mrs Ester Kambule, Ms Evodia Malefane, Mrs Ntombokuqala Nokulunga Mnqeta, Ms Mathukana Mokoka, Mr Marius Rezelman, Mr Kenosi Selane, Prof A D M Walker, Mr Linden Petzer, Dr Daphney Mayindi, Dr Jonas Mphepya, Mr Ashley Naidoo, Mr Mbangiseni Nepfumbada and Ms Carey Rajah. Referred to the Portfolio Committee on Science and Technology for consideration and report. 2. Referral to Committees of papers tabled (1) The following papers are referred to the Portfolio Committee on Trade and Industry for consideration and report: (a) Agreement on the Amendment of Annex IV and VI of the Trade, Development and Cooperation Agreement between the Republic of South Africa, on the one part, and the European Community and its Member States, on the other part, regarding certain agricultural products (referred to as the “Cheese Agreement”), tabled in terms of section 231(2) of the Constitution, 1996. 19 FEBRUARY 2013 (b) PAGE: 267 of 365 Explanatory Memorandum to the Agreement on the Amendment of Annex IV and VI of the Trade, Development and Cooperation Agreement between the Republic of South Africa, on the one part, and the European Community and its Member States, on the other part, regarding certain agricultural products (referred to as the “Cheese Agreement”). (2) The following paper is referred to the Portfolio Committee on Women, Children and People with Disabilities, Portfolio Committee on Water and Environmental Affairs and Portfolio Committee on Cooperative Governance and Traditional Affairs for consideration: (a) Commission for Gender Equality: Report on Gender Mainstreaming in the Water Sector, 2011. (3) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development 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: (a) Report and Financial Statements of the Council for Debt Collectors for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-12. (b) Addendum/Erratum on the Strategic Plan of the National Prosecuting Authority (NPA) for 2012-17 and Annual Performance Plan for 2012-13. 19 FEBRUARY 2013 (4) PAGE: 268 of 365 The following papers are referred to the Standing Committee on Finance: (a) Government Notice No 821, published in Government Gazette No 35759, dated 12 October 2012: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (b) Government Notice No 822, published in Government Gazette No 35759, dated 12 October 2012: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (c) Government Notice No 823, published in Government Gazette No 35759, dated 12 October 2012: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (d) Government Notice No 824, published in Government Gazette No 35759, dated 12 October 2012: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (e) Government Notice No R829, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1449) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (f) Government Notice No R830, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1450) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 (g) PAGE: 269 of 365 Government Notice No R831, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1451) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (h) Government Notice No R832, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1452) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (i) Government Notice No R833, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1453) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (j) Government Notice No R834, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1454) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (k) Government Notice No R835, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1455) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (l) Government Notice No R836, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 3A of Schedule No 1 (No 1/3A/14) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 (m) PAGE: 270 of 365 Government Notice No R837, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 3A of Schedule No 1 (No 1/3A/15) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (n) Government Notice No R838, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 3A of Schedule No 1 (No 1/3A/16) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (o) Government Notice No R839, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Part 3A of Schedule No 1 (No 1/3A/17) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (p) Government Notice No R840, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Schedule No 5 (No 5/5/96) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (q) Government Notice No R841, published in Government Gazette No 35779, dated 12 October 2012: Amendment of Schedule No 5 (No 5/5/97) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (r) Government Notice No R846, published in Government Gazette No 35791, dated 19 October 2012: Amendment of Part 3 of Schedule No 5 (No 5/3/98) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 (s) PAGE: 271 of 365 Government Notice No R847, published in Government Gazette No 35791, dated 19 October 2012: Amendment of Part 3 of Schedule No 6 (No 6/32) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (5) The following papers are referred to the Portfolio Committee on Public Enterprises: (a) Letter from the Minister of Public Enterprises dated 29 September 2012 to the Speaker of the National Assembly, explaining the late tabling of the 2011-12 South African Express Airways Annual Report and Financial Statements. (b) Letter from the Minister of Public Enterprises dated 29 September 2012 to the Speaker of the National Assembly, explaining the late tabling of the 2012 South African Airways Annual Report. (6) The following papers are referred to the Portfolio Committee on Public Enterprises for consideration and report. The Report of the Independent Auditors on the Financial Statements is referred to the Committee on Public Accounts for consideration: (a) Report and Financial Statements of the South African Airways SOC Limited for 201112, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (7) The following papers are referred to the Portfolio Committee on Home Affairs for consideration and report. The Reports of the Auditor-General on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration: 19 FEBRUARY 2013 (a) PAGE: 272 of 365 Report and Financial Statements of Vote 4 – Department of Home Affairs for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information of Vote 4 for 2011-12 [RP106-12] (b) Report and Financial Statements of the Electoral Commission (IEC) on the Public Funding of Represented Political Parties Fund for 2011-12, including the Report of the Auditor-General on the Financial Statements for 2011-12 [RP 323-2012]. (8) The following papers are referred to the Portfolio Committee on Labour for consideration and report: (a) Decent Work for Domestic Workers Convention, 2011 (No 189) and recommendation, 2011 (No 201), tabled in terms of section 231(2) of the Constitution, 1996. (b) Explanatory Memorandum to the Decent Work for Domestic Workers Convention, 2011 (No 189) and Recommendation, 2011 (No 201). (c) Labour Inspection Convention 1974 (No 81), tabled in terms of section 231(2) of the Constitution, 1996. (d) Maritime Labour Convention 2006, tabled in terms of section 231(2) of the Constitution, 1996. (e) Explanatory Memorandum to the Maritime Labour Convention 2006. 19 FEBRUARY 2013 (f) PAGE: 273 of 365 Work in the Fishing Sector Convention 2007 (No 188), tabled in terms of section 231(2) of the Constitution, 1996. (g) Explanatory Memorandum to the Work in the Fishing Sector Convention 2007 (No 188). (9) The following papers are referred to the Portfolio Committee on Transport for consideration and report. The Report of the Auditor-General on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Driving Licence Card Account for 2011-12, including the Report of the Auditor-General on the Financial Statements for 2011-12 [RP 228-2009]. (b) Report and Financial Statements of the International Air Services Council (IASC) for 2011-12. (c) Report and Financial Statements of the Air Service Licensing Council (ASLC) for 2011-12. (10) The following papers are referred to the Portfolio Committee on Transport: (a) Letter from the Minister of Transport dated 7 November 2012 to the Speaker of the National Assembly, explaining the late tabling of the Driving Licence Card Account (DLCA), the Air Service Licensing Council (ASLC) and the International Air Service 19 FEBRUARY 2013 PAGE: 274 of 365 Council (IASC) Annual Reports and Financial Statements for the financial year ended 31 March 2012. (b) Presidential Frontline Service Delivery Monitoring: National Findings Report: Licensing Centres for June to December 2011. (11) The following paper is referred to the Joint Standing Committee on Defence for consideration and to the Portfolio Committee on Defence and Military Veterans: (a) Letter from the President of the Republic dated 12 November 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in cooperation with the South African Police Service in providing security services to the President during his visit to Côte d’Ivoire. (b) Letter from the President of the Republic dated 12 November 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in fulfilment of the international obligations of the Republic of South Africa towards the Southern African Development Community. (c) Letter from the President of the Republic dated 16 November 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in cooperation with the South African 19 FEBRUARY 2013 PAGE: 275 of 365 Police Service to prevent security breaches at national key points of relevance to the Green Peace Movement and associated environmental groups. (d) Reply from the President of the Republic, dated 26 November 2012, to a letter from the Acting Speaker of the National Assembly dated 18 October 2012, informing members of the Assembly of the expenditure expected to be incurred for the employment of the South African National Defence Force for service in cooperation with the South African Police Service for the prevention and combating of crime and the maintenance and preservation of law and order in the Marikana area, North West and such areas within the Republic of South Africa where needed. (12) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs: (a) Government Notice No 58, published in Government Gazette No 34974, dated 26 January 2012: Notice of withdrawal of Government Notice No 983, published in Government Gazette No 34796, on 28 November 2011, announcing the implementation of an approved Integrated Waste Management Plan for the Recycling and Economic Development Initiative of South Africa (Redisa) in terms of section 32(6) of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (b) Government Notice No 914, published in Government Gazette No 34891, dated 24 December 2011: Explanatory summary of the National Environmental Management Laws Amendment Bill, 2011, as required in terms of Rule 241(1)(c) of the National Assembly and Rule 186(10)(b) of the National Council of Provinces. 19 FEBRUARY 2013 (c) PAGE: 276 of 365 General Notice No 757, published in Government Gazette No 34695, dated 19 October 2011: White Paper on the National Climate Change Response. (d) Government Notice No 147 published in Government Gazette No 35082, dated 27 February 2012: Subdelegation of authority to issue permits relating to bio-prospecting activities involving indigenous biological resources and export from the Republic of indigenous biological resources for the purposes of bio-prospecting in terms of section 42(2) of the National Environmental Management Act, 1998 (Act No 107 of 1998). (e) Government Notice No 154, published in Government Gazette No 35073, dated 2 March 2012: Declaration of land to be part of Agulhas National Park in terms of section 20(1)(a)(ii) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (f) Government Notice No 155, published in Government Gazette No 35073, dated 2 March 2012: Declaration of land to be part of the Tankwa Karoo National Park in terms of section 20(1)(a)(ii) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (g) Government Notice No 156, published in Government Gazette No 35073, dated 2 March 2012: Declaration of land to be part of the Addo Elephant National Park in terms of section 20(1)(a)(ii) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). 19 FEBRUARY 2013 (h) PAGE: 277 of 365 Government Notice No 157, published in Government Gazette No 35073, dated 2 March 2012: Declaration of land to be part of the Namaqua National Park in terms of section 20(1)(a)(ii) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (i) Government Notice No 158, published in Government Gazette No 35073, dated 2 March 2012: Declaration of land to be part of the Mokala National Park in terms of section 20(1)(a)(ii) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (j) Government Notice No 150, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Cape Registration Division, Western Cape Province, as part of the Table Mountain National Park in terms of section 33(1)(a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (k) Government Notice No 151, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Alexandria and Uitenhage Registration Divisions, Eastern Cape Province, as part of Addo Elephant National Park in terms of section 33(1) (a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (l) Government Notice No 152, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Graaff-Reinet Registration Division, Eastern Cape Province, as part of the Camdeboo National Park in terms of 19 FEBRUARY 2013 PAGE: 278 of 365 section 33(1) (a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (m) Government Notice No 153, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Beaufort West Division, Western Cape Province, as part of Karoo National Park in terms of section 33(1) (a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (n) Government Notice No 154, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Cradock Registration Division, Eastern Cape Province, as part of Mountain Zebra National Park in terms of section 33(1)(a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (o) Government Notice No 155, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Namaqualand Registration Division, Northern Cape Province, as part of Namaqua National Park in terms of section 33(1)(a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (p) Government Notice No 156, published in Government Gazette No 35073, dated 2 March 2012: Intention to declare certain land situated in the Malmesbury, Registration Division, Western Cape Province, as part of West Coast National Park in terms of 19 FEBRUARY 2013 PAGE: 279 of 365 section 33(1)(a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (q) Government Notice No 157, published in Government Gazette No 35073, dated 2 March 2012: Invitation to declare certain land situated in the Calvinia, Ceres and Sutherland Registration Divisions, Northern and Western Cape Province, as part of Tankwa Karoo National Park in terms of section 33(1)(a) and (b) of the National Environmental Management: Protected Areas Act, 2003 (Act No 57 of 2003). (r) Government Notice No 144, published in Government Gazette No 35072, dated 2 March 2012: Publication of Highveld Priority Area Air Management Plan for implementation and information in terms of section 19(5)(a) of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004). (s) Government Notice No 833, published in Government Gazette No 34651, dated 7 October 2011: Adoption of the Environmental Management Framework for the Waterberg District Municipality in terms of the National Environmental Management Act, 1998 (Act No 107 of 1998). (t) Government Notice No 852, published in Government Gazette No 34670, dated 14 October 2011: Adoption of the Environmental Management Framework for the Olifants Letaba Catchment Area in terms of the National Environmental Management Act, 1998 (Act No 107 of 1998). 19 FEBRUARY 2013 (u) PAGE: 280 of 365 General Notice No 337, published in Government Gazette No 35147, dated 17 April 2012: Draft Integrated Industry Waste Tyre Management Plan of the Recycling and Economic Development Initiative of South Africa (Redisa), under regulation 11(1)(b) of the Waste Tyre Regulations, 2009, read with sections 73 and 80(2) of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (v) Government Notice No 905, published in Government Gazette No 34719, dated 4 November 2011: Adoption of the Environmental Management Framework for the Garden Route Area in the Eden District Municipality, Western Cape Province, in terms of the National Environmental Management Act, 1998 (Act No 107 of 1998). (w) General Notice No 784, published in Government Gazette No 34734, dated 11 November 2011: Fee structure for applications for environmental authorisations and waste management licences, prescribed in terms of sections 24(5)(c), 24M and 44 of the National Environmental Management Act, 1998 (Act No 107 of 1998) and sections 45(2)(a) and 69(1)(w) of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (x) Government Notice No 144, published in Government Gazette No 35072, dated 2 March 2012: Publication of Highveld Priority Area Air Management Plan for implementation and information in terms of section 19(5)(a) of the National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004). (y) Government Notice No 613, published in Government Gazette No 35564, dated 2 August 2012: Publication of the names of the board members of the Isimangaliso 19 FEBRUARY 2013 PAGE: 281 of 365 Wetland Park Authority in terms of section 14(1) of the World Heritage Convention Act, 1999 (Act No 49 of 1999). (z) Government Notice No 613, published in Government Gazette No 35572, dated 10 August 2012: Draft national standard for the assessment of waste for landfill disposal, set in terms of section 7(1)(c) read with section 73 of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (aa) Government Notice No 614, published in Government Gazette No 35572, dated 10 August 2012: Waste classification and management regulations, made in terms of section 69(1)(a), (b), (g), (h), (m), (q), (s), (dd), and (ee) read with section 73 the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (bb) Government Notice No 615, published in Government Gazette No 35572, dated 10 August 2012: National standard for the assessment of waste for landfill disposal, set in terms of section 7(1)(c) read with section 73 of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (cc) Government Notice No R625, published in Government Gazette No 35583, dated 13 August 2012: National Waste Information Regulations, made in terms of section 69(1)(y), (aa) and (ee) of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (dd) General Notice No 453, published in Government Gazette No 35406, dated 1 June 2012: Draft national standard for validation of the treatment efficacy and operation of a 19 FEBRUARY 2013 PAGE: 282 of 365 noncombustion technology for the treatment of health care risk waste, set in terms of section 7(1)(c) and (2)(c) read with section 73 of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). (ee) Government Notice No 731, published in Government Gazette No 35665, dated 6 September 2012: Amendment of Schedule 3 in terms of section 34(10)(a) of the National Environmental Management Act, 1998 (Act No 107 of 1998). (ff) General Notice No 777, published in Government Gazette No 35716, dated 28 September 2012: Proposed amendments to Environmental Impact Assessment Regulations Listing Notice 2 of 2010 in terms of section 47A(1)(b) read with sections 24(2), 24(5) and 24D of the National Environmental Management Act, 1998 (Act No 107 of 1998). (gg) General Notice No 778, published in Government Gazette No 35717, dated 28 September 2012: Proposed amendments to Environmental Impact Assessment Regulations Listing Notice 1 of 2010 in terms of section 47A(1)(b) read with sections 24(2), 24(5) and 24D of the National Environmental Management Act, 1998 (Act No 107 of 1998). (hh) General Notice No 779, published in Government Gazette No 35718, dated 28 September 2012: List of waste management activities that have, or are likely to have, a detrimental effect on the environment, published in terms of section 19(2) read with section 73 of the National Environmental Management: Waste Act, 2008 (Act No 59 of 2008). 19 FEBRUARY 2013 (ii) PAGE: 283 of 365 Government Notice No 635, published in Government Gazette No 35602, dated 24 August 2012: National action list for the screening of dredged material proposed for marine disposal, published in terms of section 73 of the National Environmental Management: Integrated Coastal Management Act, 2008 (Act No 24 of 2008). (13) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development: (a) Proclamation No R53, published in Government Gazette No 35691, dated 21 September 2012: Referral of matters to existing Special Investigating Unit and Special Tribunal, in terms of section 2 (2) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996). (b) Proclamation No R54, published in Government Gazette No 35691, dated 21 September 2012: Referral of matters to existing Special Investigating Unit and Special Tribunal, in terms of section 2 (2) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996). (c) Proclamation No R55, published in Government Gazette No 35691, dated 21 September 2012: Referral of matters to existing Special Investigating Unit and Special Tribunal, in terms of section 2 (2) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996). (d) Presidential Frontline Service Delivery Monitoring: National Findings Report: Magistrate Courts for June to December 2011 19 FEBRUARY 2013 (14) PAGE: 284 of 365 The following paper is referred to the Joint Standing Committee on Defence: (a) 2012 Third Quarterly Report of the National Conventional Arms Control Committee (NCACC), tabled in terms of section 23(1)(b) of the National Conventional Arms Control Act, 2002 (Act No 41 of 2002). (15) The following papers are referred to the Standing Committee on Finance for consideration and report. The Reports of the Independent Auditors and the Auditor-General on the Financial Statements are referred to the Committee on Public Accounts for consideration: (a) Report and Financial Statements of the Government Employees Pension Fund (GEPF) for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (b) Report and Financial Statements of the Reconstruction and Development Programme Fund for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12 [RP336-2012]. (16) The following paper is referred to the Standing Committee on Finance, Portfolio Committee on Agriculture, Forestry and Fisheries, Portfolio Committee on Basic Education, Portfolio Committee on Water and Environmental Affairs, Portfolio Committee on Human Settlements, Portfolio Committee on Energy, Portfolio Committee on Mineral Resources, Portfolio Committee on Cooperative Governance and Traditional Affairs, Portfolio Committee on Rural Development and Land Reform, Portfolio Committee on 19 FEBRUARY 2013 PAGE: 285 of 365 Health, Portfolio Committee on Social Development and Joint Committee on HIV and Aids for consideration: (a) (17) The South Africa I Know, The Home I Understand. The following paper is referred to the Portfolio Committee on Justice and Constitutional Development, Portfolio Committee on Women, Children and People with Disabilities, Portfolio Committee on Labour, Portfolio Committee on Police, Portfolio Committee on Correctional Services, Portfolio Committee on Social Development and Portfolio Committee on Public Service and Administration for consideration and to the Constitutional Review Committee: (a) (18) South African Human Rights Commission 2012 Equality Report The following paper is referred to the Portfolio Committee on Justice and Constitutional Development, Portfolio Committee on Women, Children and People with Disabilities, Portfolio Committee on Labour, Portfolio Committee on Police, Portfolio Committee on Correctional Services, Portfolio Committee on Social Development and Portfolio Committee on International Relations and Cooperation for consideration and to the Constitutional Review Committee: (a) (19) South African Human Rights Commission: 2011 Annual International Report The following papers are referred to the Portfolio Committee on Justice and Constitutional Development, Portfolio Committee on Basic Education, Portfolio Committee on Water and Environmental Affairs, Portfolio Committee on Human Settlements, Portfolio 19 FEBRUARY 2013 PAGE: 286 of 365 Committee on Cooperative Governance and Traditional Affairs, Portfolio Committee on Rural Development and Land Reform, Portfolio Committee on Mineral Resources, Portfolio Committee on Health and Portfolio Committee on Social Development for consideration: (a) South African Human Rights Commission: 2012 Report on Realisation of Social and Economic Rights, tabled in terms of section 184(3) of the Constitution, 1996: Transforming Society, Securing Rights and Restoring Dignity. (b) South African Human Rights Commission: Strategic Focus Area Report, tabled in terms of section 184(3) of the Constitution, 1996: Monitoring Economic and Social Rights in Makhaza: Towards Developing a Tool for the Monitoring of Economic and Social Rights in South Africa 2012. (20) The following papers are referred to all Portfolio Committees for consideration in accordance with their mandates: (a) South African Human Rights Commission: 2011-12 Annual Report on the Promotion of Access to Information Act (PAIA). (b) (21) Performance scorecards for national government departments. The following paper is referred to the Standing Committee on Finance, Portfolio Committee on Basic Education, Portfolio Committee on Higher Education and Training, Portfolio Committee on Water and Environmental Affairs, Portfolio Committee on Human 19 FEBRUARY 2013 PAGE: 287 of 365 Settlements, Portfolio Committee on Energy, Portfolio Committee on Public Enterprises, Portfolio Committee on Cooperative Governance and Traditional Affairs, Portfolio Committee on Women, Children and People with Disabilities, Portfolio Committee on Labour and Joint Committee on HIV and Aids for consideration: (a) (22) Census 2011 Statistical Release. The following paper is referred to the Standing Committee on Finance, Portfolio Committee on Basic Education, Portfolio Committee on Water and Environmental Affairs, Portfolio Committee on Human Settlements, Portfolio Committee on Energy, Portfolio Committee on Public Enterprises and Portfolio Committee on Cooperative Governance and Traditional Affairs for consideration: (a) (23) Census 2011 Fact Sheet. The following paper is referred to the Standing Committee on Appropriations in terms of section 4(4)(d) of the Money Bills Amendment Procedure and Related Matters Act, No 9 of 2009: (a) (24) Consolidated Financial Information for the year ended 31 March 2012. The following paper is referred to the Portfolio Committee on Women, Children and People with Disabilities for consideration: 19 FEBRUARY 2013 (a) PAGE: 288 of 365 Commission for Gender Equality Report on 365 Days of Action to End Violence against Women and Children. (25) The following papers are referred to the Portfolio Committee on Labour for consideration and report and to the Joint Committee on HIV and Aids: (a) International Labour Organisation (ILO) Recommendation concerning HIV and Aids and the World of Work, No 200 (Recommendation 200) and South African Code of Good Practice on HIV and Aids and the World of Work, 2012 (HIV Code), including its Technical Assistance Guidelines (TAGs), tabled in terms of section 231(2) of the Constitution, 1996. (26) The following papers are referred to the Portfolio Committee on Social Development: (a) Letter from the Minister of Social Development dated 9 November 2012 to the Speaker of the National Assembly, explaining the late tabling of the 2011-12 Annual Report of the Central Drug Authority. (b) Presidential Frontline Service Delivery Monitoring: National Findings Report: South African Social Security Agency (Sassa) Service Centres for June to December 2011. (27) The following paper is referred to the Portfolio Committee on Cooperative Governance and Traditional Affairs: 19 FEBRUARY 2013 (a) PAGE: 289 of 365 Report to Parliament on the over- and underspending of municipalities, as at 30 June 2012. (28) The following paper is referred to the Portfolio Committee on Home Affairs: (a) Presidential Frontline Service Delivery Monitoring: National Findings Report: Home Affairs for June to December 2011. (29) The following paper is referred to the Portfolio Committee on Police: (a) Presidential Frontline Service Delivery Monitoring: National Findings Report: South African Police Service (SAPS) for June to December 2011. (30) The following paper is referred to the Portfolio Committee on Health: (a) Presidential Frontline Service Delivery Monitoring: National Findings Report: Health Facilities for June to December 2011. (31) The following paper is referred to the Portfolio Committee on Basic Education: (a) Presidential Frontline Service Delivery Monitoring: National Findings Report: Basic Education for June to December 2011. (32) The following papers are referred to the Standing Committee on Appropriations: 19 FEBRUARY 2013 (a) PAGE: 290 of 365 Management Performance Assessment Tool (MPAT): Report on results of assessment process for 2011-12. (33) The following papers are referred to the Portfolio Committee on Trade and Industry: (a) General Notice No 922, published in Government Gazette No 35862, dated 7 November 2012: General explanatory note on shorter payment period principles, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003). (b) Government Notice No R929, published in Government Gazette No 35867, dated 16 November 2012: Introduction of the compulsory specification for pressurised paraffin appliances - VC 9093 in terms of section 13(1)(a) of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). (34) The following paper is referred to the Portfolio Committee on Public Works and Portfolio Committee on Agriculture, Forestry and Fisheries for consideration and to the Joint Committee on Ethics and Members’ Interests: (a) Public Protector Report No 3 of 2012-13 on an investigation into allegations of a breach of the Executive Ethics Code by the Minister of Agriculture, Forestry and Fisheries, Ms Tina Joemat-Pettersson, MP. (35) The following paper is referred to the Portfolio Committee on Basic Education, Portfolio Committee on Health, Portfolio Committee on Social Development, Portfolio Committee 19 FEBRUARY 2013 PAGE: 291 of 365 on Women, Children and People with Disabilities, Portfolio Committee on Home Affairs and Standing Committee on Appropriations: (a) Diagnostic Review of Early Childhood Development. TABLINGS National Assembly and National Council of Provinces 1. The Minister of Justice and Constitutional Development (a) Report on the provisional suspension of a magistrate: Ms M M Mokone, an acting magistrate at Bela-Bela, in terms of section 13(3)(b) of the Magistrates Act, 1993 (Act No 90 of 1993). (b) Report on the provisional suspension of a magistrate: Mr F K S Ntuli, an additional magistrate at Uitenhage, in terms of section 13(3)(b) of the Magistrates Act, 1993 (Act No 90 of 1993). 2. The Minister of Water and Environmental Affairs (a) Report and Financial Statements of Umgeni Water for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12. 3. The Minister of Women, Children and People with Disabilities 19 FEBRUARY 2013 (a) PAGE: 292 of 365 Erratum on the Annual Report of the Department of Women, Children and People with Disability for 2011-12. National Assembly 1. The Speaker (a) Reply from the Minister of Finance to recommendations in Report of Standing Committee on Appropriations on Follow-up Oversight Visit to the Limpopo and Mpumalanga from 5 to 9 September 2011, as adopted by the House on 24 May 2012. Referred to the Standing Committee on Appropriations. TUESDAY, 22 JANUARY 2013 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Calling of Joint Sitting CALLING OF JOINT SITTING OF PARLIAMENT 19 FEBRUARY 2013 PAGE: 293 of 365 In terms of section 84(2) (d) of the Constitution of the Republic of South Africa, 1996, read with Rule 7(1) (a) of the Joint Rules of Parliament, the President of the Republic of South Africa has called a joint sitting of the National Assembly and the National Council of Provinces on Thursday, 14 February 2013 at 19:00, in order to deliver his State of the Nation Address to Parliament. M V SISULU MP M J MAHLANGU MP SPEAKER OF THE CHAIRPERSON OF THE NATIONAL ASSEMBLY NATIONAL COUNCIL OF PROVINCES 2. Assent by President in respect of Bills (1) Credit Rating Services Bill [B 8B – 2012] – Act No 24 of 2012 (assented to and signed by President on 9 January 2013). 3. Draft Bills submitted in terms of Joint Rule 159 (1) Geomatics Profession Bill, 2012, submitted by the Minister of Rural Development and Land Reform. 19 FEBRUARY 2013 PAGE: 294 of 365 Referred to the Portfolio Committee on Rural Development and Land Reform and the Select Committee on Land and Environmental Affairs. TABLINGS National Assembly and National Council of Provinces 1. The Speaker and the Chairperson (a) 2. The Strategic Plan and Budget of the Auditor-General of South Africa for 2013-2016. The Minister of Finance (a) Government Notice No R.977, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 1 (No 1/1/1456), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (b) Government Notice No R.978, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 1 (No 1/2/B/157), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (c) Government Notice No R.979, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 3 (No 3/1/685), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 PAGE: 295 of 365 (d) Government Notice No R.980, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 3 (No 3/1/686), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (e) Government Notice No R.981, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 3 (No 3/1/687), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (f) Government Notice No R.982, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 4 (No 4/1/351), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (g) Government Notice No R.983, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 4 (No 4/2/352), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (h) Government Notice No R.984, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 4 (No 4/2/353), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (i) Government Notice No R.985, published in Government Gazette No 35921, dated 30 November 2012: Amendment of Schedule No 5 (No 5/3/99), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 (j) PAGE: 296 of 365 Goewerments-kennisgewing Nr R.986, soos gepubliseer in Staatskoerant Nr 35921, gedateer 30 November 2012: Wysiging van Bylae No 6 (No 6/3/33), ingevolge die Wet op Doeane- en Aksynswet, 1964 (Wet Nr 91 van 1964). (k) Government Notice No R.995, published in Government Gazette No 35932, dated 7 December 2012: Amendment issued in terms of section 74(3)(a) of the Value-Added Tax, 1991 (Act No 89 of 1991). (l) Government Notice No R.996, published in Government Gazette No 35932, dated 7 December 2012: Amendment of Schedule No 4 (No 4/3/359), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (m) Government Notice No R.1109, published in Government Gazette No 36039, dated 28 December 2012: Amendment of rules (DAR/113) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (n) Government Notice No R.1110, published in Government Gazette No 36040, dated 28 December 2012: Amendment of Schedule No 1 (No 1/1/1462) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (o) Government Notice No R.1111, published in Government Gazette No 36040, dated 28 December 2012: Amendment of Schedule No 3 (No 3/1/690) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 19 FEBRUARY 2013 (p) PAGE: 297 of 365 Government Notice No R.1112, published in Government Gazette No 36040, dated 28 December 2012: Amendment of Schedule No 4 (No 4/2/362) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (q) Government Notice No R.1113, published in Government Gazette No 36040, dated 28 December 2012: Amendment of Schedule No 5 (No 5/3/106) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (r) Government Notice No R.1029, published in Government Gazette No 35950, dated 12 December 2012: Regulations relating to Banks in terms of the Banks Act, 1990 (Act No 94 of 1990). 3. The Minister of Higher Education and Training (a) Report and Financial Statements of the Local Government Sector Education and Training Authority (LGSETA) for 2011-2012, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-2012 [RP 186-2012]. 4. The Minister of Public Service and Administration (a) African Charter on Values and Principles of Public Administration, tabled in terms of section 231(2) of the Constitution, 1996. (b) Explanatory Memorandum to the African Charter on Values and Principles of Public Administration. 19 FEBRUARY 2013 5. PAGE: 298 of 365 The Minister of Trade and Industry (a) Government Notice No R.775, published in Government Gazette No 35707, dated 28 September 2012: The amendment of the Compulsory Specification for non-pressure paraffin stoves and heaters-VC 9089 in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). (b) Government Notice No R.776, published in Government Gazette No 35707, dated 28 September 2012: Proposed Amendment of the Compulsory Specification for Plastic Carrier Bags and Flat Bags-VC 8087in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). (c) Government Notice No 779, published in Government Gazette No 35706, dated 28 September 2012: Proposed Compulsory Specification for Hot Water Storage Tanks for Domestic Use in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). (d) Government Notice No 780, published in Government Gazette No 35706, dated 28 September 2012: Compulsory Specification for integral and close-coupled domestic Solar Water Heaters, and Thermal Collectors for Domestic Solar Water Heating Systems in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008). (e) General Notice No 800, published in Government Gazette No 35754, dated 5 October 2012: Revised Broad-Based Black Economic Empowerment Codes of Good Practice and 19 FEBRUARY 2013 PAGE: 299 of 365 B-BBEE Technical Assistance Guidelines (The TAG) in terms of the Broad Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003). (f) Government Notice No 759, published in Government Gazette No 35679, dated 12 September 2012: Prohibition of the use of the National Gambling Board (NGB) Logo in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941). (g) General Notice No 824, published in Government Gazette No 35776, dated 9 October 2012: Draft amendment regulation on the Act (Product labelling and trade descriptions: Genetically modified organisms in terms of the Consumer Protection Act, 2008 (Act No 68 of 2008). (h) General Notice No 917, published in Government Gazette No 35848, dated 2 November 2012: General Explanatory note: Shorter payment period principles in terms of the BroadBased Black Economic Empowerment Act, 2003 (Act No 53 of 2003). (i) Government Notice No 946, published in Government Gazette No 35888, dated 16 November 2012: Declaration or designation of the 2013 African Cup of Nations (AFCON 2013): as a protected event in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941). (j) General Notice No 961, published in Government Gazette No 35890, dated 19 November 2012: Application for designation of an IDZ at Saldanha Bay and the granting of the operator permit in terms of the Manufacturing Development Act, 1993 (Act No 187 of 1993). 19 FEBRUARY 2013 (k) PAGE: 300 of 365 General Notice No 997, published in Government Gazette No 35914, dated 26 November 2012: Codes of Good Practice on Broad-Based Black Economic Empowerment in terms of the Broad Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003). (l) Addendum/Erratum on the Annual Report of the Export Credit Insurance Corporation of South Africa SOC Limited (ECIC) for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. 6. The Minister of Water and Environmental Affairs Please Note: The following reports of the Water Boards have been submitted to Parliament on 14 December 2012. (a) Report and Financial Statements of the Amatola Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (b) Report and Financial Statements of the Sedibeng Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (c) Report and Financial Statements of the Rand Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. 19 FEBRUARY 2013 (d) PAGE: 301 of 365 Report and Financial Statements of the Overberg Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (e) Report and Financial Statements of the Pelladrift Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (f) Report and Financial Statements of the Bloem Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (g) Report and Financial Statements of the Magalies Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. (h) Report and Financial Statements of the Mhlathuze Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12 [RP 320-2012]. (i) Report and Financial Statements of the Lepelle Northern Water Board for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12. National Assembly 19 FEBRUARY 2013 1. PAGE: 302 of 365 The Speaker (a) The President of the Republic submitted the following letter dated 21 December 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa, during a friendly soccer game match between South Africa and Zambia. CREDA INSERT - T130122e-insert1 – PAGE 8 (b) The President of the Republic submitted the following letter dated 21 December 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order in the KwaZulu-Natal Province. CREDA INSERT - T130122e-insert2 – PAGE 9 (c) The President of the Republic submitted the following letter dated 21 December 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa, during the hosting of 2013 Orange African Cup of Nations (AFCON) final draw event. 19 FEBRUARY 2013 PAGE: 303 of 365 CREDA INSERT - T130122e-insert3 – PAGE 10 (d) The President of the Republic submitted the following letter dated 7 January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in fulfillment of an international obligation of the Republic of South Africa towards the Central African Republic. CREDA INSERT - T130122e-insert4 – PAGE 11 (e) The President of the Republic submitted the following letter dated 11 January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the hosting of 2013 Orange African Cup of Nations. CREDA INSERT - T130122e-insert5 – PAGE 12 (f) The President of the Republic submitted the following letter dated 11January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order, in Western Cape Province, Republic of South Africa. CREDA INSERT - T130122e-insert6 – PAGE 13 19 FEBRUARY 2013 (g) PAGE: 304 of 365 Letter from the Minister of Higher Education and Training dated 7 December 2012, to the Speaker of the National Assembly explaining the delay in the submission of the Annual Report of the Local Government Sector Education Training Authority for 2011-2012. CREDA INSERT - T130122e-insert7 – PAGE 14-15 MONDAY, 28 JANUARY 2013 ANNOUNCEMENTS National Assembly The Speaker 1. Appointment of Deputy Public Protector (1) A letter dated 10 December 2012 has been received from the Minister of Justice and Constitutional Development, informing the Assembly that in terms of section 2A of the Public Protector Act, 1994 (No 23 of 1994), the President has appointed Adv Kevin Sifiso Malunga as Deputy Public Protector of the Republic for a period of seven years, with effect from 10 December 2012. Referred to the Portfolio Committee on Justice and Constitutional Development. 2. Resignation from SABC Board and request for filling of vacancy 19 FEBRUARY 2013 (a) PAGE: 305 of 365 A letter dated 18 January 2013 has been received from the Minister of Communications – (i) informing the National Assembly of the resignation of Dr S P Makhesha, in terms of section 15(2) of the Broadcasting Act (No 4 of 1999), from the South African Broadcasting Corporation Board with effect from 31 December 2012; (ii) requesting the National Assembly to recommend a candidate for appointment, in terms of section 13 of the Broadcasting Act, for the unexpired portion of the period for which Dr Makhesha was appointed, ie until 9 June 2015; and (iii) asking further that consideration be given to recommending a candidate with extensive experience and appropriate qualifications in accounting and auditing. Referred to the Portfolio Committee on Communications for consideration and report. TABLINGS National Assembly and National Council of Provinces 1. The Speaker and the Chairperson (a) Report of the Auditor-General on a performance audit of the use of consultants at selected national departments [RP 08-2013]. 2. The Minister of Finance 19 FEBRUARY 2013 (a) PAGE: 306 of 365 Report of the Executive Officer of the Financial Services Board on the Road Accident Fund for 2010-11. 3. The Minister of International Relations and Cooperation (a) White Paper on South Africa’s Foreign Policy. (b) Revised White Paper on South African Participation in International Peace Missions. National Assembly 1. The Speaker (a) Reply from the Minister of Finance to recommendations in Report of Standing Committee on Appropriations on follow-up visit to Limpopo and Mpumalanga from 5 to 9 September 2011, as adopted by the House on 24 May 2012. Referred to the Standing Committee on Appropriations. (b) Reply from the Department of Performance Monitoring and Evaluation in The Presidency to recommendations in Budgetary Review and Recommendation Report of Standing Committee on Appropriations on Department in the Presidency for Performance Monitoring and Evaluation on its performance for the 2011-12 financial year, as adopted by the House on 14 November 2012. Referred to the Standing Committee on Appropriations. 19 FEBRUARY 2013 (c) PAGE: 307 of 365 Reply from the Department of Basic Education to recommendations in Report of Portfolio Committee on Basic Education on oversight visit to northern areas of Port Elizabeth, Eastern Cape, from 19-20 June 2012, as adopted by the House on 13 November 2012. Referred to the Portfolio Committee on Basic Education. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Science and Technology: Visits to the iThemba Laboratory for Accelerator-Based Sciences (iThemba LABS) in Faure, the Department of Science and Technology (DST)/Centre for Scientific and Industrial Research (CSIR) low-cost housing project in Kleinmond, and the South African National Space Agency’s (SANSA) Space Science Directorate in Hermanus on 4 and 5 September 2012, dated 14 November 2012. 1. Introduction The Portfolio Committee on Science and Technology visited iThemba LABS, the Kleinmond low-cost housing project and the Space Science Directorate on 4 and 5 September 2012. Delegation: Ms L Dunjwa (Acting Chairperson - ANC) Ms P Mocumi (ANC) Ms H Line (ANC) Ms Z Ndlazi (ANC) 19 FEBRUARY 2013 PAGE: 308 of 365 Ms S Plaatjie (COPE) Dr J Kloppers-Lourens (DA) Accompanied by: Ms Shanaaz Isaacs (Committee Secretary) Dr Renée Osborne-Mullins (Committee Researcher) Mr Sydwell Mahlabela (Committee Assistant) 2. iThemba LABS Visit: The Portfolio Committee on Science and Technology visited iThemba LABS, which is a unique national facility, and business unit of the National Research Foundation (NRF). iThemba LABS’ vision is to be the leading African organisation for research, training and expertise in accelerator-based sciences and technologies. Its mission is to provide state of the art facilities and programmes for high quality research, training and services in the nuclear sciences and its applications for the benefit of the people of South Africa and the continent in general. The laboratories provide facilities for the following activities: Basic and applied research using particle beams; Particle radiotherapy for the treatment of cancer; and The supply of accelerator-produced radioactive isotopes for nuclear medicine and research. As a national research facility it is the intention of iThemba LABS to achieve the following strategic objectives: 19 FEBRUARY 2013 PAGE: 309 of 365 Grow the research facilities to increase training, human resource development, international collaborations (especially with Africa) and the science and technology (S&T) profile of South Africa; and To develop economic units that are self-sustaining and benefit from the skills, sciences and technologies available at iThemba LABS. As part of the visit, Members were shown the major research and development platforms, which included: A variable energy Separated Sector Cyclotron (SSC), which produces a wide variety of highenergy particle beams. Proton energies of up to 200 MeV can be produced. The SSC is augmented by two additional injector cyclotrons and supplemented by the (HMI) ECR Ion Source. A 6 MV Van de Graaff Accelerator with a Nuclear Microprobe, used primarily for Materials Research and supplemented by an X-ray Diffractometer (XRD) unit as well as an Atomic Force Microscope (AFM) and a Physical Properties Measurement System (PPMS). A dedicated 11 MeV cyclotron for the production of 18 F, used in Positron Emission Tomography (PET) Specialized Particle Therapy facilities, which include a 66 MeV Neutron Gantry, a 6 MV Medical Linear Accelerator, a 200 MeV Proton Therapy nozzle, and a Multi-slice wide-bore Computed Tomographic Scanner. Patients undergoing particle therapy can be accommodated in a 27-bed on-site hospital. Production facilities for the manufacture of radionuclides for both the local nuclear medicine community and the export market (Hot Cells, Targetry Stations, Clean Rooms). 19 FEBRUARY 2013 PAGE: 310 of 365 Specialized detectors and spectrometers for experimental nuclear physics experiments. Laboratories for research in radiobiology, mainly in support of the particle therapy programme. Officials briefed Members on: The internationally approved in-house research programmes Local and international research collaborations Training partnerships with higher education institutions Role as supplier of accelerator-produced radioisotopes and radio-pharmaceuticals; and Capabilities and expertise in particle therapy The long term strategy of iThemba LABS is to investigate and vigorously pursue all possible means of expanding the current accelerator and research facilities in order to revitalize all the core activities with the view of ensuring a vibrant and internationally competitive research and development platform that will be sustainable for at least a further 20 years. The visit illustrated iThemba LABS present and future role in the NSI through presenting the status of and future strategies for research, development and training at iThemba LABS. 3. Kleinmond Housing Project The DST, recognising that sustainable, quality low-income housing is a national priority, commissioned the CSIR to investigate technology possibilities for improved low-income housing. The CSIR produced a demonstration house, which was more comfortable, durable, faster to build, easily extendable and less dependent on municipal services than the standard low-income houses provided by the Government. 19 FEBRUARY 2013 PAGE: 311 of 365 The CSIR demonstration house has been certified by Agrément South Africa, the internationally acknowledged body that provides assurance through technical approvals of non-standardised or unconventional construction products and processes. The house also adheres to the National Building Regulations and the requirements of the National Home Builders Registration Council. The Committee visited the 440 pilot units, which were built in Kleinmond and which, incorporated many features of the CSIR-developed low-income demonstration house. Local authorities of the Overstrand Municipality collaborated with the CSIR and the DST on this pilot project within the local community. Members went on a walk-about and interacted with the occupants of these units. 4. The South African National Space Agency (SANSA) Space Science Directorate On 1 April 2011, the Hermanus Magnetic Observatory (HMO) changed its name to SANSA Space Science and migrated from the National Research Foundation (NRF) to the SANSA. The SANSA Space Science Directorate is the primary division for Space Science within SANSA and is responsible for basic and applied Space Science research, human capacity development, science advancement and public engagement. It functions as an active participant in the International Realtime Magnetic Observatory Network (INTERMAGNET), which monitor and model variations of the Earth’s magnetic field (also known as the geomagnetic field). SANSA Space Science is also one of 13 Regional Warning Centres globally that forms part of the International Space Environment Service (ISES) network. Specifically, SANSA Space Science is appointed as the Regional Warning Centre for Space Weather in Africa. 19 FEBRUARY 2013 PAGE: 312 of 365 SANSA Space Science consists of the following four operational groups: Space Physics; Geomagnetism; Technology; and Science Outreach. A key goal of SANSA Space Science is human capacity development in the earth-space science area and the creation of a pool of South Africans with transferable skills in electronics, radar technology, instrumentation and measurement, signal processing, software development and data management. This is accomplished through training schools for Space Physics, supervision of postgraduate students, and lecturing at Universities that have Space Science programmes. SANSA Space Science also aims to advance science literacy in general and earth-space science literacy in particular among learners, educators, young people, the general public and policy-makers. The majority of activities are hosted within SANSA Space Science’s Science Centre. 5. Conclusions and Recommendations iThemba LABS The Committee welcomed the improvements of the governance structure at iThemba LABS, which resulted in good audit outcomes and findings. The Committee was pleased to learn about programmes in place for outreach, though for practical reasons, only the surrounding local communities were targeted. The Committee was satisfied with the role SAASTA played in promoting the activities at iThemba LABS, to the extent that at research level, the visibility of the facility was very high. 19 FEBRUARY 2013 PAGE: 313 of 365 The Committee would like to see more female nuclear experts/physicists as part of the new generation of scientists. The Committee encouraged the collaboration iThemba LABS had with the Nuclear Energy Corporation of South Africa (NECSA). iThemba LABS houses a 27-bed hospital where cancer patients are treated using proton and neutron beams. The Committee hopes that with the intervention of the DST these services can be extended. Kleinmond Housing Pilot With the huge backlog and poor quality of government subsidised housing provision, the CSIR-developed alternative technology for low-cost housing proves to be a solution. The Committee undertook to work with its counterparts in Parliament to encourage the Department of Human Settlements to replicate the model, which could effectively address the challenges experienced in the provision of decent housing. In the same manner, the Committee would be working towards encouraging the Department of Co-operative Government and Traditional Affairs to promote similarly the CSIR housing model within their local government structures. These houses, which have a solar geyser, a photovoltaic panel for indoor LED lights, a rainwater harvesting tank and insulated materials used for the roof, thus controlling temperature, can be viable housing options in areas where there is a lack or absence of municipal services. Technology was in effect used to assist municipal infra-structure in Kleinmond. The Committee is pleased that the DST has commissioned the CSIR to do follow-up monitoring and evaluation of the pilot houses in Kleinmond to assess the viability of the building standard and the impact these houses may have on the quality of life of the occupants. 19 FEBRUARY 2013 PAGE: 314 of 365 SANSA Space Science The Committee was generally satisfied with the briefings they received on the SANSA overview and the Space Science’s strategic programmes. The major part of the visit was to view the facilities and meet with the scientists, whom through using their knowledge and capabilities, inspire innovation in an attempt to respond to national priorities. 2. Report of the Portfolio Committee on Public Enterprises on the oversight visit to Transnet, dated 20 November 2012 1. Introduction The Portfolio Committee on Public Enterprises (the Committee) undertook an oversight visit to Transnet (Port of Cape Town, Rail Engineering in Salt River and the Port of Saldanha) from the 1 st to 2nd August 2012. The main purpose of the visit to Transnet was to assess the developmental impact of the infrastructure development and the operations on the immediate communities in terms job creation, skills development, promotion of local businesses and localisation. 1.1 Delegation The committee delegation included the following members: Mr P Maluleka (Chairperson of the Committee, ANC), Dr GW Koornhof (ANC), Miss C September (ANC), Mr A Mokoena (ANC), Ms N Michael (DA), Mr E Marais (DA), Mr M Nhanha (Cope) and Mr J Dikobo (Azapo). The delegation was accompanied by the following parliamentary officials: Mr D Mocumi (Committee Secretary), Mr 19 FEBRUARY 2013 PAGE: 315 of 365 S Makeleni (Committee Assistant), Ms Y Landu (Communication Officer) and Mr E Boskati (Researcher). 2. Visit to Port of Cape Town The Committee was welcomed by Captain Sabelo Mdlalose, the Harbour Master, who conveyed the apologies of the Port Manager. The Committee met with representatives of organised labour, the Mayoral Committee for City of Cape Town and employees of Transnet at the port. 2.1 Overview of the Port of Cape Town The Cape Town port has two terminals with 12 berths, ranging between 9.8m and 15.5m. These draughts enable the terminal to handle new generation vessels of up to 338m. The agri-roro terminal handles dry bulk, break-bulk and automotive goods, and the container terminal handles containerised general cargo, reefers, empties and transhipments. The terminals are operated by a navis system which gives visibility and accessibility to the customers. 2.2 Interaction with stakeholders The Committee interacted with representatives of organised labour and the City of Cape Town. Representatives of organised business were not present during the oversight visit. The delegation for the Port of Cape Town was led by the Harbour Master, and the Port Manager had apologised for the oversight visit. The Harbour Master led the presentation of the port, which comprised an overview of the port, job creation and skills development programmes, support to local businesses and the corporate social investment projects. The main findings of the committee with regard to the visit to the port are as follows: 19 FEBRUARY 2013 PAGE: 316 of 365 2.2.1 Job creation and skills development The Transnet Port Terminal employs approximately 1 009 employees, and the number was expected to rise to 1 232 by 2016. Women make up 30% of the workforce, and there are two women who are being trained in operations as part of succession planning. The focus of the bursary programme was mainly aimed at up-skilling entry level employees to enable them to take up opportunities when they arise. A skills development initiative for the external youth has been in the form of learnerships, apprenticeships but no bursary programme for external youth. The port has a partnership with the Cape Peninsula University of Technology on relevant training and skills development programmes. 2.2.2 Promotion of local small and medium businesses For the 2011/12 financial year, the port spent R52 million on small, medium and micro enterprises (SMMEs), of which R7 million was spent on women-owned businesses and R27 million on Blackowned businesses. There are 346 suppliers and only 35 are Black owned and 21 are women owned. 2.2.3 Community involvement and development The Port of Cape Town supports the SOS Children’s Village Food Garden Project, which includes creating food gardens for the Children’s Village, training local community on sustainable use and ongoing support. It has spent R328 401 on the project and R186 916 to renovate two laboratories for Langa High School as part of an effort to improve Maths and Science in schools. The port further installed and supplied four smart boards with supporting equipment and software to Manyano High School in Khayelitsha and Langa High School to the value of R242 751. 2.3 Observations The Committee made the following observations: 19 FEBRUARY 2013 PAGE: 317 of 365 Concern was raised at the lack of women representation in the top management of the port, further acknowledged that there was training taking place to up-skill women but noted that training two women was not enough and sustainable. Concern was raised with regard to the lack of development and support to local Black-owned and women-owned businesses. The Committee noted that a deliberate effort had to be made to attract and support local businesses. The Committee noted the projects undertaken through the corporate social investment programme, but was concerned that only two schools have benefited and that the programme needed to be expanded to benefit more disadvantaged communities in the Western Cape. Concern was raised that bursaries were only awarded to employees and that the port was not supporting poor students needing bursaries as part of its contribution to the skills development targets of Transnet. Furthermore, the number of beneficiaries of skills development initiatives was too low. Concern was raised that the Port had no partnerships with the community of Cape Town; hence it did not have a positive impact on improving the socio-economic conditions of the people of Cape Town. The Committee noted the report of a Transnet employee who was raped and killed in a vessel, and raised concern regarding the safety of women in the Port. The unavailability of the Port Manager during the oversight visit by the Committee to the port was a concern. 2.4 Recommendations 19 FEBRUARY 2013 PAGE: 318 of 365 The Committee made the following recommendations: The Minister of Public Enterprises should ensure that: The Port establishes a stakeholder forum which should include representatives of organised labour, business and the City of Cape Town in order to address all the concerns that have been raised in this report. The Port sends a quarterly report to the Committee on progress made on addressing the issues raised in this report. The Port improves its developmental role through robust outreach programmes to communities and schools, and a deliberate effort should be made to visit, recruit and develop young people from rural and farm communities. Furthermore investments should be channelled towards developing disadvantaged and marginalised communities. The Port improves the safety of women in all port operations and the representation of women in all trades and levels of the organisation. 3. Visit to Rail Engineering in Salt River The Committee was welcomed by Mr Collin Pillay, the Centre Manager, who was accompanied by the management of the plant. The Committee met with representatives of organised labour and civil society, and undertook and tour of all the business units in the plant. 3.1 Overview of the Engineering Plant The Salt River plant is 150 years old and has been the heart of South Africa’s transport network since 1862. It is central to the maintenance facilities that support the Sishen-Saldanha iron ore heavy haul export corridor and the general freight business in the Western Cape. Salt River supports the TRE 19 FEBRUARY 2013 PAGE: 319 of 365 locomotive and wagon business to maintain Transnet’s 4km long iron ore train, which is the longest in the world. The plant completed the construction of the Phelophepa II Healthcare Train and build trains for Metrorail. 3.2 Engineering Capabilities The Salt River plant is one of the oldest mechanical engineering facilities in the country, which played a key role in the development and diverse activities of railway transport and technological development. Central to the success of the plant is its human resource capabilities: it has the finest draughtspersons best engineering brains, highly skilled technicians and a pool of dedicated unskilled workers. The plant has the following engineering capabilities: 3.2.1 Coach Business (Mainline Interior Repair Workshop) The business specialises in the refurbishment of old coaches and turning them into luxury coaches. It has built coaches for the 2010 soccer world cup and has a pool of experienced engineers who are central in transferring knowledge and skills to the young trainees. Transnet Rail Engineering is working towards becoming an Original Equipment Manufacturer of coaches for the Sub-Saharan region. 3.2.2 Rolling Stock Business This business is responsible for the manufacturing of modern, technologically-advanced rolling stock components. Services include the manufacturing of parts and sub-assemblies for locomotives, coaches and wagons. It refurbishes and upgrades equipment components so that they will cost-effectively extend the lifespan of the rolling stock they serve. 19 FEBRUARY 2013 PAGE: 320 of 365 3.2.3 Wheels Business The business specialises in the refurbishment and assembly of all types of railway wheels for the Southern African region. The business has the capability and facilities to assemble and build up new wheels from components brought in from local and international suppliers. The plant produces 120 wheels per day. The wheels business has the skills and competency to refurbish old wheels and assemble new wheels. 3.2.4 Rotating Machines Business The business focuses on electrical and mechanical repair, maintenance and assembly of rotating machines in the rail industry and port business. The business refurbishes and repairs AC and DC tractions for various diesel and electric locomotives and passenger motor coaches. 3.2.5 Auxiliary Business The business focuses on upholstery for the mainline coaches, including Shosholoza Meyl Premier Class, Kei Rail and Phelophepa Health Train. The business manufactures sitters, sleepers and repairs. Auxiliary business is responsible for the distribution, repairs and washing of tarpaulins that cover the carriages transporting maize and other foodstuff. The business also manufactures gear case seals for the Rolling Stock Business, which they put into wheel craters to lubricate the wheel to prevent oil spillages. They manufacture what is called “gummies” for the Coach Business, which are the rubber diaphragms that prevent metal hitting against metal when two coaches come together. For rotating machines they sometimes manufacture coil covers so that the coils they build for the locomotives are not exposed to dust. 3.3 Interaction with stakeholders 19 FEBRUARY 2013 PAGE: 321 of 365 The Committee met with the management and representatives of organised labour. There is a harmonious and co-operative relationship between organised labour and management of the plant. 3.3.1 Job creation and skills development The Salt River plant is one of Transnet’s rail engineering training academies. It is the main campus of the Western Cape and specialises in mechanical and electrical trades such as welding, sheet metal, fitter and turner machinist, diesel electrical fitters, electrical fitters, electricians etc. There are 209 students on training in the centre and the training curriculum is for three years. The plant has been accredited to do trade tests and started in 2012. There is a concerted effort to develop women in engineering and technical trades. The Committee met one woman, Ms Florence Qwalana, who started the apprenticeship in 2006 and is now a qualified electrical fitter and a supervisor in the electrical workshop. The training centre has computer laboratories to develop computer skills, and recreational facilities for learners. The plant has created jobs for the immediate communities but there is a vacancy rate of 340 employees. The reason given was that it was due to the shortage of critical and scarce skills. There is a recognition of prior learning policy in place to assist experienced employees with low qualification levels. 3.3.2 Promotion of local small and medium businesses The plant reported that it does support local business but there was no information presented on the demographics and of companies (suppliers) that do business with the plant. 3.3.3 Community involvement and development The plant has supplied three impoverished schools with fully kitted computer classrooms, namely Hopefield Primary in West Coast, Bardale Secondary School in Mfuleni, and Northway Primary. For 19 FEBRUARY 2013 PAGE: 322 of 365 Northway Primary they also installed a playground for Grade R pupils and resurfaced the netball court for the older pupils. The students have built school desks for the impoverished schools in Cape Town and there is a plan to expand community service of the engineering school and the plant to benefit the broader community of Cape Town. 3.4 Observations The Committee made the following observations: The Committee commended the management of the plant for the dedication and passion in developing engineering capabilities and contributing towards the developmental objectives of government in terms of job creation and skills development. The Committee noted with concern the high vacancy rate and urged the management to make an extra effort to fill the vacancies. 3.5 Recommendations The Minister of Public Enterprises should ensure that: The management of the plant establish a stakeholder forum which should include representatives of organised labour and local business in order to develop strategies to develop and support local suppliers. The Port should send a quarterly report to the Committee on progress made regarding resolving the issues raised in this report. 4. The 340 vacancies in the structure of the plant are filled by June 2013. Visit to Port of Saldanha The Committee visited the Port of Saldanha and was welcomed by Mr Willem Roux, Port Manager, who led the delegation of the port. The Committee received presentations from the leadership of the port which included the contribution of the port towards skills development, job creation and 19 FEBRUARY 2013 PAGE: 323 of 365 promotion and support of local business. The Committee was also briefed by the representatives of organised labour and local business on their relationship with the port. 4.1 Overview of the Port of Saldanha The Port of Saldanha is situated 60 nautical miles from Cape Town and is the largest and deepest natural port in Southern Africa. The Bulk terminal’s finger-type iron ore jetty, which is 990m in length, facilitates the export of iron ore from the terminal. The world-class break-bulk handling facility has four berths, with a total length of 874m and handles commodities such as steel coils, iron ore and pellets, as well as heavy minerals that include chloride and titanium slags, and zircon. Saldanha’s bulk iron ore exports are currently at the 50mtpa mark and our break-bulk handling is at a record 2mtpa. 4.2 Interaction with stakeholders The Committee interacted with the management of the Port, representatives of organised labour, local business owners and the representatives of the municipality of Saldanha. 4.2.1 Job creation and skills development Saldanha Ports Terminal has a workforce of 471 and women accounted for 22% of the total workforce. There are three women in the “women in operations” training programme, two of whom have been appointed in supervisory positions. There were 12 apprenticeship trainees in 2011 and only 6 in 2012, and of the 18 only 5 were women. The training is mainly for employees and there is an internship programme for graduates to gain experience in the workplace. There are only seven employees who received part-time bursaries to address business needs. There are no bursaries and skills development initiatives for young people from the community. The challenge of the port was the lack of training facilities in the Saldanha Bay Municipality, which forced the port to send employees to Cape Town for training. 19 FEBRUARY 2013 PAGE: 324 of 365 4.2.2 Community involvement and development The Port of Saldanha did not have a comprehensive corporate social investment plan and the contributions to the community were done on an ad-hoc basis. The contributions related to donations to social events such as potjiekos functions and there was no contribution towards advancing the developmental objectives of government. However the port management vowed to improve its contribution through improving its investment on education and training, and had developed a plan for the coming years. The port has not improved the socio-economic conditions of the community of Saldanha Bay. 4.2.3 Promotion of small and medium local business The port has approximately 327 suppliers, and only 27 are Black owned. Most of the suppliers are from Cape Town and there is lack of support and development for the local business community of Saldanha Bay. The business community has made several attempts to raise their frustration with the management of the port and had received no attention nor were their concerns taken to consideration. There is a lack of communication and a platform to engage between the port and the local business community. Out of an expenditure of R470 million, only R4.7 million was spent on the local business community. The Group CEO of Transnet and the Minister of Public Enterprises have visited the port and have met with the local business community and have promised to support and ensure the development of local communities. 4.3 Observations The Committee made the following observations: Noted with concern that the port has not invested in skills development and education to improve the employability of young people in Saldanha Bay. 19 FEBRUARY 2013 PAGE: 325 of 365 Noted with concern that the port has failed to support and develop local suppliers and only spent 4% of its budget on local suppliers. It has also failed to engage with local businesses and promote a healthy relationship. Acknowledged that there was support for community projects, but was concerned that the projects did not contribute to the developmental objectives of government and were not improving the socio-economic conditions of the community. 4.4 Recommendations The Committee made the following recommendations: The Minister of Public Enterprises should ensure that: The contractors working at the Port of Saldanha use local suppliers as sub-contractors and pay them in time. A stakeholder forum is convened with representatives of local business, organised labour and the municipality to address the issues that have been raised in this report. The port should send a quarterly report to the Committee on progress made in resolving the issues raised in this report. The management of the port consults and communicates with civil society, local business and organised labour on a regular basis to improve a healthy relationship with the community. The management of the port develops a corporate social investment programme that will focus on advancing the developmental objectives of government, such as providing skills development and bursary opportunities for young people in the community and improve the socio-economic conditions of the adjacent communities. 19 FEBRUARY 2013 PAGE: 326 of 365 Report to be considered. TUESDAY, 29 JANUARY 2013 ANNOUNCEMENTS National Assembly The Speaker (1) Invitation to committees to nominate candidates for Agricultural Research Council (a) A letter dated 11 December 2012 has been received from the Minister for Agriculture, Forestry and Fisheries, inviting the relevant parliamentary committees in terms of section 9(3)(a)(i) of the Agricultural Research Act (Act No 86 of 1990) to nominate candidates, before 20 March 2013, to serve on the Agricultural Research Council. Referred to the Portfolio Committee on Agriculture, Forestry and Fisheries for consideration. TABLINGS National Assembly 19 FEBRUARY 2013 1. PAGE: 327 of 365 The Speaker (a) The President of the Republic submitted the following letter dated 25 January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in fulfilment of international obligation of the Republic of South Africa towards the Republic of Mozambique. CREDA INSERT - T130129e-Insert1 – PAGE 34 THURSDAY, 31 JANUARY 2013 ANNOUNCEMENTS National Assembly and National Council of Provinces 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 Bills as a section 75 Bill: (a) Banks Amendment Bill [B 43 – 2012] (National Assembly – sec 75). (2) The JTM in terms of Joint Rule 160(6) classified the following Bills as section 76 Bills: 19 FEBRUARY 2013 PAGE: 328 of 365 (a) Fertilizers and Feeds Bill [B 41 – 2012] (National Assembly – sec 76). (b) Tourism Bill [B 44 – 2012] (National Assembly – sec 76). (c) National Credit Amendment Bill [PMB 1 – 2012] (National Assembly – sec 76). TABLINGS National Assembly and National Council of Provinces 1. The Minister of Trade and Industry (a) General Notice No 1065, published in Government Gazette No 36035, dated 28 December 2012: Codes of Good Practice on Broad-based Black Economic Empowerment, in terms of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003). (b) Government Notice No R 1120, published in Government Gazette No 36048, dated 28 December 2012: Prohibition on the use of certain words and emblems for 2013 African Cup of Nations (AFCON) South Africa, in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941). COMMITTEE REPORTS National Assembly 19 FEBRUARY 2013 1. PAGE: 329 of 365 Report of the Portfolio Committee on Trade and Industry on the Agreement on the Amendment of Annex IV and VI of the Trade, Development and Cooperation Agreement between the Republic of South Africa, on the one part, and the European Community and its Member States, on the other part, regarding certain agricultural products (referred to as the “Cheese Agreement”), dated 29 January 2013: The Portfolio Committee on Trade and Industry, having considered the request for approval by Parliament of the Agreement on the Amendment of Annex IV and VI of the Trade, Development and Cooperation Agreement between the Republic of South Africa, on the one part, and the European Community and its Member States, on the other part, regarding certain agricultural products (referred to as the “Cheese Agreement”), recommends that the House, in terms of section 231(2) of the Constitution, approve the said Agreement. Report to be considered. MONDAY, 4 FEBRUARY 2013 TABLINGS National Assembly and National Council of Provinces 1. The Minister of Justice and Constitutional Development (a) Proclamation No R.65, published in Government Gazette No 35860, dated 8 November 2012: Referral of matters to existing Special Investigating Unit and Special Tribunal, in 19 FEBRUARY 2013 PAGE: 330 of 365 terms of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996). COMMITTEE REPORTS National Assembly 1. REPORT OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS ON THE OVERSIGHT VISIT TO LENASIA, GAUTENG, DATED 27 NOVEMBER 2012 The Portfolio Committee on Human Settlements, having conducted an oversight visit to Gauteng on 19 November 2012 in relation to the demolition of houses in Lenasia, reports as follows: 1. Background In terms of the Constitution of the Republic of South Africa of 1996 as well as Parliamentary Rules, the Portfolio Committee of Human Settlements (the Committee) has a responsibility to conduct oversight over any executive organ of State that falls within its portfolio. The Committee agreed to visit Gauteng province in order to receive a proper presentation from the provincial Department of Local Government and Housing on issues around the demolition of houses in Lenasia. The Committee had heard about the demolition of houses from the media and therefore had to receive first-hand information from the provincial department. 2. Objectives of the visit The objectives of the oversight visit were as follows: Ascertain challenges or allegations that led to the demolition of houses. 19 FEBRUARY 2013 PAGE: 331 of 365 Receive facts from the parties that were affected or involved. Ascertain who authorised the alleged illegal sale of land and what mechanisms were in place to take care of the families who were affected by the demolition. It was also envisaged that the delegation would visit the site and interact with the families in order to understand their side of the story. 3. Delegation 3.1 Portfolio Committee on Human Settlements The multi-party delegation consisted of Ms BN Dambuza (Chairperson of the Committee and leader of the delegation (ANC)); Mr JM Matshoba (ANC); Ms G Borman (ANC); Ms AC Mashishi (ANC); and Ms M Njobe (Cope). The following parliamentary officials accompanied the delegation: Ms K Pasiya (Committee Secretary); Mr M Nyatela (Committee Secretary) and Mr L Tsoai (Committee Researcher). 3.2 Members from the Gauteng Legislature Mr E Magerman (Chairperson of the Portfolio Committee on Local Government and Housing (ANC)); Ms C Sodlulashe-Motau, Ms P Masepe and Mr R Gudlhuza accompanied the delegation. The delegation was also accompanied by the following officials from the legislature: Mr T Kepedise (Researcher); Mr M Masilo; Mr J Moteke; Mr M Radibe and Mr S Mhlambi. 3.3 Departmental officials The delegation was accompanied by Mr M Mnyani (Head of Department) and Ms F Koloko from the provincial Department of Local Government and Housing and Mr M Shabangu from the national Department of Human Settlements. 19 FEBRUARY 2013 PAGE: 332 of 365 4. Presentation by Head of Department: Department of Local Government and Housing The Head of Department, Mr M Mnyani, reported that all vacant land is vested within the provincial department and is managed in terms of the Gauteng Land Administration Act, No 11 of 1996, while any disposal of land is done through the Gauteng Land Disposal Policy of 2008. He also reported that part of the challenges with managing the land was the high rate of land invasions where people illegally occupied land and built temporary or permanent structures on it. Some invasions were averted while others were not as they occurred overnight and on weekends while inspectors were off duty. The investigation into the illegal sale of land was conducted in Johannesburg South, that is Lenasia, Ennederdale and Lawley, as far back as 2006. In 2007, developers were arrested for the illegal sale of land in those areas. More complaints came forth and investigations were widened and an audit was conducted. It was found that properties of the provincial department were illegally sold or occupied and occupants of the land were constructing houses. The provincial department started to demolish houses under construction. By the time of the audit, 678 stands were illegally occupied, and in Ennerdale and Lawley the estimated number of stands affected were 1 000. 4.1 Investigations and civil cases In September 2010, two of the syndicates were arrested for the illegal sale of land in the aforementioned areas and the third suspect was arrested in June 2011. In April 2011, all complaints of the illegal sale of land were referred to the provincial Hawks and the Housing Task Team and 10 more cases of fraud were opened. One of the accused in the five cases that were on trial was an employee of the City of Johannesburg Municipality. The illegal occupants secured an interim court order preventing the provincial department from demolishing their houses and the court also ordered that the illegal occupants should also stop 19 FEBRUARY 2013 PAGE: 333 of 365 construction. The department filed affidavits in court to request the eviction of the occupiers and the applicants (illegal occupiers) also filled counter applications. In March 2011, the court ordered that the matter be referred for mediation for the applicants to explain how they acquired the properties. The outcome of the mediation was that of the 168 illegal occupants, only 11 applicants responded, and only three applicants were found to have applied and were on the demand database of the department. The department approached the court to seek a final order and the court ruled that the applicants (illegal occupants) whose names appeared in court papers were ordered to vacate the properties they were occupying. The applicants were ordered to remove or demolish their structures within 30 days, failing which the department had the right to remove or demolish those structures. 4.2 Internal controls by the provincial department It was reported that parallel to the legal process taking its course, the provincial department put in place key internal controls to contain the land loss problem, particularly through the illegal sale of land. Other controls were exercised through the following: • An Internal Provincial Land Task Team was established consisting of the Land Management Directorate, Legal Advisory Services, Planning, Anti-Fraud and Corruption Unit, and the Assets Disposal and Regularization Directorate (ADARDI). • The provincial Portfolio Committee met to consider all matters relating to land in the province and brought together all units that played a role in this regard. Part of its urgent matters included the land matters in Johannesburg South. • The Land Management Directorate had since put caveats in the various land parcels that were registered under the department to prevent the illegal sale of the land via the deeds office. • Before the caveats are lifted or the property is transferred to the tenant of the department, the properties in question are verified by the Land Management Directorate and the Anti-Fraud and Corruption Unit before the Head of Department can sign them off. 19 FEBRUARY 2013 • PAGE: 334 of 365 These controls have proved to be very useful and the occurrence of unauthorized land transfer or change of ownership at the deeds office has been noticeably absent since the controls were put in place. 4.3 Financial implications for the provincial department The Head of Department reported that, on average, the provincial department spent between R2 000 to R8 000 per month per stand on rates and taxes and that these figures excluded the costs for the illegally connected services such as water and electricity that the municipality is also charging the department as the owners of the land. Effectively, the department has spent over R300 000 per annum on rates and taxes for the properties illegally occupied. Furthermore, the department pays an average of R100 000 per annum on services used as a result of the illegal services connection at the three areas in question, which cannot be budgeted for as it is not consumption of the Department. It should be noted that these financial figures are for Lenasia only and that, the figures change drastically for the province-wide situational analysis. By May 2012, the department had paid an amount of R197 148.14 in legal fees to contest the matter in court. More costs have been incurred through the appearance of the state attorney in court. Since then it was estimated that the cost would be above R250 000 and continue to rise as more appearances were made in court. 4.4 Plan of action The Member of Executive Council gave a directive that the illegally constructed structures on the provincial department’s land in Lenasia, Lawley and Ennerdale needed to be demolished as a matter of urgency as the legal process had been followed and it had not swayed people from looting government assets. The actions were agreed upon as follows: Cutting off of illegal water, sewer and electricity connections at the above areas to minimise wastage and damage to government property; 19 FEBRUARY 2013 Packaging of a security plan; Planning and development of the stands. PAGE: 335 of 365 4.5 Progress on the implementation plan The Head of Department reported that a meeting was held on 10 October 2012 during which a presentation was made to the MEC who afterwards approved the project plan and implementation of the court order. The service provider was appointed to assist with the demolition and removal of rubble once the demolition had been completed. The provincial department engaged the services of the South African Police Service and the Johannesburg Metro Police Department to assist with the security and public order policing during the demolition of the illegal structures. In October 2012, notices of eviction were issued to occupants of the stands in Lenasia, who were given seven days to respond to the provincial department if they had any compelling reasons to put forward against the evictions. On 8 and 9 November 2012, the department carried out the demolition of incomplete and unoccupied structures in the area. The demolition that was carried out was with regard to incomplete structures which were not occupied at the time of being demolished. There were 54 stands that were cleared so far. However, the rubble in the area had not yet been removed since that would be undertaken at a later stage. No people were evicted and displaced as a result of the demolition. No injuries occurred and no arrests were carried out on both days. It was also reported that 11 applicants who were the illegal occupants of some of the properties earmarked for demolition had since made an application to court for an interdict to stop the department from demolishing the 11 properties. The matter was still before the court and no decision had been granted yet. The department would provide the Committee with progress on the matter. 19 FEBRUARY 2013 PAGE: 336 of 365 The South African Human Rights Commission had since made an urgent application to court asking for the suspension of the demolition and eviction and also asking the court’s permission to grant it 30 days to conduct an investigation into the matter, specifically with regard to the infringement of the constitutional right to dignity of the affected parties. The matter would be heard on 15 November 2012 in the Gauteng South High Court. The outcome of the court case would be communicated to the Portfolio Committee by the department. 5. Deliberations - Comments/Concerns of the delegation The delegation enquired as follows: Why were the other large houses left out and not demolished? Who was responsible for mediation, was it an independent body or the department itself? When did the department discover that the area was dolomitic? Was the department aware of its illegal action and what was the department’s plan of action? Was the community committee elected from stakeholders? The delegation was concerned that it seemed that there was somebody somewhere who was selling the land and asked the department whether it was investigating the matter. On the issue that the court order did not compel the department to give these people alternate accommodation, the delegation referred the department to section 26 of the Constitution. The delegation enquired whether the building plans were approved and also whether the banks were aware that those people were building illegally. The delegation enquired whether an assessment was done to determine for how long people were living there and whether notices were issued to them to vacate the area. 19 FEBRUARY 2013 PAGE: 337 of 365 The Portfolio Committee on Local Government and Housing of the Gauteng Legislature informed the delegation that they went on site and were blocked by the community from entering the area. On 16 November 2012, the department made a presentation to the provincial Portfolio Committee. The Committee was made aware of the following weaknesses: Lack of implementation of by-laws; Prevention of Illegal Eviction and Unlawful Occupation of Land Act, No. 19 of 1998 (PIE Act) was not working effectively in the province. The Portfolio Committee of the Gauteng Legislature further informed the Portfolio Committee on Human Settlements about its recommendations to the department on this matter, as follows: Individual engagement with the illegal occupiers of the stands; Enforcement of by-laws; Demolition of occupied houses should be avoided until the process of court cases was finalised. The delegation acknowledged that the department was dealing with a complex matter that required appropriate action in order to ensure that government as well as citizens were not compromised. The delegation condemned the illegal land invasion in the strongest terms. In relation to the ineffectiveness of the PIE Act, the delegation raised a question of the lack of commitment from government to implement the Act. Hence the national Department of Human Settlements or any provincial department had never come before the Portfolio Committee to indicate where challenges are in the implementation of this Act. No impact assessment or evaluation had been conducted so far by the department. The Committee observed that there was a lack of intergovernmental relations and cooperative governance as well as the provision of support mechanisms by the national and provincial governments to local government in order to prevent the illegal occupation or these invasions. 19 FEBRUARY 2013 PAGE: 338 of 365 The delegation raised a concern on the department’s decision to stop the action plan which was in place because of a change in political leadership. The delegation said that it would be understood if the department indicated that the MEC instructed it to do so. The delegation asked the department the following questions: What was the action plan for selling land? What would be done with the syndicates? When did the department notify the Portfolio Committee on Local Government and Housing, and what was the department’s role in terms of advising? Why were the community committee members not arrested? Did the department have a plan to protect witnesses? How far was the department with considering the recommendations of the Portfolio Committee on Local Government and Housing? The delegation observed that the issue of Lenasia should be a lesson to all leaders of public representatives and spheres of government. 6. Responses The department responded that they went to Lenasia on 18 November 2012 and found that a certain man called Baloyi was not living in the area and the people staying there did not know each other. The department demolished 54 houses as from the date of the meeting but it was recorded that 53 houses had been demolished before the day of the meeting and that it had since been updated to 54 houses. The department issued notices in October 2012 and put them on the doors of the houses but no one came forward. The department reported that it was working with the Hawks to deal with the matter. 19 FEBRUARY 2013 PAGE: 339 of 365 The department also reported that the Hawks would protect any witnesses that came up with any evidence to make a strong case for the government. There were incidents of intimidation by the community committee members against witnesses, hence the mitigation process failed. The applicants of the court order were middle-income groups. The department reported that it worked well with the councillor since day one and that his house was under surveillance by the Hawks. On Thursday, 15 November 2012, the department met with the Banking Insurance and Securities Association (BISA) and out of 168 people, BISA reported 10 people as having loans and the department would request the Anti-Fraud and Corruption Unit and the Hawks to work together on the matter. The department reported that they were not going to build in the area because of the dolomite. The township had been established, which explains why there was a tarred road in the area. The department was working with the Portfolio Committee on Local Government and Housing and was taking the recommendations of the Portfolio Committee seriously. The department responded that it were organising a meeting with the Mayor of the City of Johannesburg because there were also areas of land that belonged to the municipality. There were plans for the development of the areas and there was a need to integrate those plans with those of the municipality. The way forward from the department was that it was not going to demolish the already-built houses. It was going to evaluate those houses and have the terms and conditions with the occupiers of the land for purposes of sale agreement. The department reported that it had requested condonation from National Treasury and the Premier’s Office to continue developing the area without first submitting the plans and costing. The Fivaz Commission, which was commissioned in 2002, found that there was illegal selling of land. The department started the demolition of illegally built houses but that action was stopped because of 19 FEBRUARY 2013 PAGE: 340 of 365 a court interdict. Ten people were arrested for illegally selling land and for fraud but the cases against three people were provisionally withdrawn by the court. The delegation was of the view that there was a need for all individuals to come forward and discuss this matter with the department, and national and the provincial department needed to have a plan and strategies to deal with people who were not abiding by the law. There was a need for robust public participation processes. The delegation agreed to adjourn the meeting in order to visit the site to convey the message of the meeting to the community and make some observations. 7. Site visit to Lenasia areas 7.1 Extension 13 The department highlighted that the large houses in Lenasia Extension 13, which had 54 houses, were empty and fully furnished. The owner of the house, erf number 10634, illegally took another stand with erf numbers 11620 and 11619 and was collecting rent of R2 500 from the tenants and had built a driveway to the other houses behind the main stand. The department reported that all newly built houses were illegal structures and were badly built. The department indicated that Lenasia South Extension 4 had just erupted and the people chose their space and built illegal structures. According to the department, some houses were built within three days. The delegation interviewed some community members occupying the area illegally and they requested not to reveal their names for fear of reprisal. 19 FEBRUARY 2013 7.2 PAGE: 341 of 365 Persons interviewed by the delegation The people were informed that the Committee was busy with fact finding and that they should work together and advise government. Interaction with community members Person No. 1 The person interviewed was self employed and reported that he met with a friend and talked about trying to get a place to stay. His friend told him that there was a place where he could build his house on a vacant stand. This happened for two or three years. His friend came back, in 2012 and reminded him about that place. His friend is working in government and even showed him the map of the place, saying that there was water and electricity that needed free connections. In March 2012, person no. 1 gave the community committee papers to build on the stand and took ID copies and other information. They paid him an amount of R25 000 and said that they must ensure that they finish building by April 2012. Person no. 1 said that he knew the name of the person but was not going to reveal the name and that he was still meeting with him. He said that they were vulnerable and were always knocking on the doors of banks for loans but could not get any because they were self employed and therefore ended up getting that place illegally. Person No. 2 Person no. 2 said that in the previous year they were trying to find a place to build houses for themselves and could not find any. In 2012, they found a place in Lenasia. She said that she paid someone an amount of R10 000 and was still owing that man R15 000 to make up R25 000. She was not given a receipt but was shown a map where she must build her house on a vacant stand. Another lady came to person no. 2 and said she was selling the same stand on which person no. 2 was trying to 19 FEBRUARY 2013 PAGE: 342 of 365 build a house. She told person no. 2 that she had bought the stand from the same person and they started arguing about the stand. Fortunately, person no. 2 got the stand with the assistance of the community and has built a house on it. Person No. 3 In 2008, person no. 3 got two stands from two different people for about R40 000 each. He had paid R20 000 and had been given receipts and two maps. He was told that they would give him title deeds after he had erected some structures on the stands. Community committee member (Bongani Mpande) The community committee member reported that they were robbed by government officials to buy stands and that by September 2010, the houses had been demolished. They then realised that that was a scam. He said that they engaged government and the former MEC. After the new MEC came in, houses were demolished and the matter is now sub judice. He reported that they had a meeting with the department where the demolition of houses was discussed and they wanted to resolve the matter of demolition amicably. The delegation asked him why other people were building whilst the matter was before court, why people built houses overnight and why the community committee did not stop them from building. The community committee member said that they did not have the resources to stop people from building and requested the MEC and her department to assist them to stop the people from building on those stands. 19 FEBRUARY 2013 PAGE: 343 of 365 The delegation requested the community committee to assist the department by ensuring that no more structures were going to be built as from Monday, 19 November 2012. The community committee members committed themselves to stop the building of houses. The delegation told them that the Portfolio Committee on Human Settlements was disturbed by the demolition of the houses by government and that the Committee was conducting oversight over government’s actions. The Committee had met with government and was there to hear the views of the community committee and get the facts from the community and make recommendations. The Committee would sit with government and have a way forward and would look at the gaps and try to fill them. Ring leader The delegation met with a certain person who was a ring leader and was approached to tell the delegation how he got hold of the stand. He told the delegation that he had bought it from a government official and said that he knew the name, but was not going to reveal the name of the person to the delegation. He said that he had submitted the details of the official to the MEC. He reported that, as he was anticipating getting the title deed from that official, he started to build a large house (32mx20m) on the stand. He reported that he paid the government official an amount of R6 000. The delegation requested him to co-operate with government on the matter. He said that the community committee members were co-operative during the time of the former MEC and received resources to root out the scam, but after the new MEC took office, they were not getting the assistance, only the demolition of houses. 19 FEBRUARY 2013 PAGE: 344 of 365 After the site visit the national and provincial committees together with government officials met at a government office and highlighted the way forward in terms of crafting the findings and recommendations. 8. Findings Representatives from both legislatures (national and provincial) agreed that there were policy gaps in terms of the implementation and enforcement of the Prevention of Illegal Eviction and Unlawful Occupation of Land Act, No. 19 of 1998, as well as the applicable by-laws. The individual community members were willing to come to the department with information as they found themselves being the victims of the circumstances. However, they were threatened by the syndicate leaders. The community committee was aware that there was a court interdict preventing it from erecting new structures, but it had no resources to stop the community from building their houses by night. The houses were built illegally on the land that belongs to the department and therefore people should not be the owners of those houses until the matter was resolved. The delegation observed that the community illegally connected water and electricity. This was done in collusion with officials from City Power and Johannesburg Water. The illegal connections cost the department an average of R100 000 per annum in terms of billing by the municipality. The action of the department was viewed as harsh and inhumane in implementing the court ruling. 9. Recommendations 19 FEBRUARY 2013 PAGE: 345 of 365 The Minister should intervene and provide the necessary support to the provincial department and ensure that the provincial department: Enforces the PIE Act and that all spheres of government implement the Act. Stops the demolition of already-built houses and begins to engage with community members. Addresses the issue of syndicates (illegal selling of land) and the suspects must be arrested by the police. Assists the community together with the municipality with resources, such as security, to guard the vacant stands, including the demolished houses. Conducts individual profiling of the people affected by checking their financial status as this would assist in identifying who qualifies for rental housing, state subsidies and be assisted accordingly. The provincial department should delegate an official dedicated to work with the community on this matter. During this period the delegation recommended that all stakeholders should work together until the crisis is over. Report to be considered. WEDNESDAY, 6 FEBRUARY 2013 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 19 FEBRUARY 2013 1. PAGE: 346 of 365 Assent by President in respect of Bills (1) Financial Markets Bill [B 12B – 2012] – Act No 19 of 2012 (assented to and signed by President on 30 January 2013). (2) Repeal of the Black Administration Act and Amendment of Certain Laws Amendment Bill [B 40 – 2012] – Act No 20 of 2012 (assented to and signed by President on 12 December 2012). (3) Tax Administration Laws Amendment Bill [B 35B – 2012] – Act No 21 of 2012 (assented to and signed by President on 12 December 2012). (4) Taxation Laws Amendment Bill [B 34 – 2012] – Act No 22 of 2012 (assented to and signed by President on 30 January 2013). (5) Higher Education and Training Laws Amendment Bill [B 23B – 2012] – Act No 23 of 2012 (assented to and signed by President on 12 December 2012). (6) Constitution Seventeenth Amendment Bill [B 6B – 2011] (assented to and signed by President on 1 February 2013 THURSDAY, 7 FEBRUARY 2013 COMMITTEE REPORTS 19 FEBRUARY 2013 PAGE: 347 of 365 National Assembly CREDA INSERT - T130207e – Insert1 – PAGES 64-108 2. REPORT OF THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES ON ITS OVERSIGHT VISIT TO THE JOHANNESBURG CORRECTIONAL CENTRE TO ASSESS REMAND DETENTION FACILITIES AND SERVICES, DATED 21 NOVEMBER 2012 1. INTRODUCTION 1.1. A delegation of the Portfolio Committee on Correctional Services (the Committee) visited the Johannesburg correctional centre on 7 June 2012 to assess the conditions of detention and services available to remand detainees. 1.2. This report comprises a summary of the context of the oversight visit, observations made during the visit and the debriefing session which followed it, as well as those made during a recent briefing on the Justice, Crime Prevention and Security (JCPS) cluster’s progress as far as the implementation of the Correctional Matters Amendment Act (Act 5 of 2011), and finally the Committee’s recommendations. 1.3. The visit comprised orientation briefings by the centre management, a tour of the facilities, interaction with unsentenced inmates, correctional officials, independent correctional centre visitors (ICCV), and other key role-players such as the National Prosecuting Authority (NPA), the South African Police Services (SAPS) as well as Legal Aid South Africa (Legal Aid SA). 19 FEBRUARY 2013 1.4. PAGE: 348 of 365 This report should be read along with Committee’s “Report on Factors Contributing to Overcrowding in Correctional Centres”, published in September 2011. 2. BACKGROUND TO THE VISIT 2.1 The Judicial Inspectorate for Correctional Services (JICS) in its 2009/10 Annual Report, stated that, although the level of incarceration has dropped to 139%, considerably lower than the 170% recorded at the end of the 2002/03 financial year, South Africa’s incarceration rate remained the highest in Africa and one of the highest in the world. Nineteen of South Africa’s 239 operational correctional centres recorded levels of overcrowding greater than 200%, and conditions of incarceration at these centres were unacceptable and did not comply with constitutional requirements governing detention. 2.2 The Committee in most, if not all, of its oversight reports, highlights the impact overcrowding has on, amongst others, service delivery to inmates and conditions of incarceration. We consistently recommend that interventions should be made to mitigate the effects of overcrowding. The first such recommendations were made as far back as 2005. Although there has been a reduction in the prison population since 2005, South Africa’s incarceration rate remains among one of the ten highest in the world: 301 out of every 100 000 people in South Africa end up in incarceration 2.3 Observations made during oversight visits and through interactions with the JCPS cluster and stakeholders, reveal a number of challenges that contribute to the correctional centres’ chronic overcrowding. One of the biggest drivers of overcrowding in South African correctional centres is the large number of persons who have been charged, but whose trials have not yet 19 FEBRUARY 2013 PAGE: 349 of 365 been finalised. In 2011/12 29% of South Africa’s inmate population comprised remand detainees. While the remand population has decreased over the past five years, and at 14 August 2012, totalled just over 45 000, the number remains very high. 2.4 All, but three sections of the Correctional Matters Amendment Act, relating to the management of remand detainees were promulgated for implementation from 1 March 2012. Section 48, providing for the provision of uniforms for remand detainees, section 49E providing for the referral of terminally ill or severely incapacitated remand detainees to court, and section 49G providing for maximum incarceration periods would come into effect at a later stage. 3. CONDITIONS OF INCARCERATION 3.1. The Johannesburg management area comprises four correctional centres: Medium A, Medium B, Medium C and the Female correctional centres. The management area has an approved accommodation of 4 864 but at the time of the visit accommodated 9 492 and was thus 195% overcrowded. Only the Medium A and Female centres accommodated remand detainees 3.2 The management area had a post establishment of 2 256, of which 1 624 posts were financed. At the time of the visit 1 593 posts were filled. The post establishment was determined in 2003. 3.3 The Medium A centre could accommodate 2 630 male inmates, but at the time of the visit housed 4 587. Of this total 4 428 were remand detainees. Adult offenders were detained in the D1 unit while juveniles were detained in C1. The centre was 174% overcrowded, and 404 of its 407 posts were filled. 19 FEBRUARY 2013 3.4 PAGE: 350 of 365 The Female centre could accommodate 605, but at the time of the visit accommodated 867, 344 of which were remand detainees. The centre was 143% overcrowded, and had 212 officials. 3.5 Both the Female and Medium A centres reported that overcrowding placed an enormous strain on the centres’ infrastructure, and conditions of incarceration. The centres pre-dated 1994, and were not built for humane detention, therefore the infrastructure did not compliment the unit management principles outlined in the White Paper on Corrections, and did not make efficient management of the population, possible. The severe overcrowding exacerbated this challenge. 3.6 The Medium A centre which was the most overcrowded, reported that because it only had a clinic, a not a fully-fledged hospital, the provision of medical care to remand detainees remained a major challenge. The clinic had no bed space, and those inmates who had to be admitted were accommodated in the 60-bed sickbay. The centre was serviced by a centralised pharmacy serving all centres in the area. Serious cases that could not be managed at centre level were referred to external hospitals. The centre stated that its relationship with the Department of Health could be improved. 3.7 The nutritional services at the Johannesburg management area were outsourced to an external service provider, and the management area reported no challenges as far as the services received. 3.8 Both the Medium A and Female centres reported that the Judicial Inspectorate for Correctional Services’ (JICS) independent correctional centre visitor (ICCV), visited daily and that mandatory reporting requirements were met. However, it was noted with extreme concern that the daily complaints register which heads of correctional centres were required to monitor 19 FEBRUARY 2013 PAGE: 351 of 365 daily, was only checked on a monthly basis at the Medium A centre, and weekly at the Female centre. It was unclear whether this oversight had been reported to the Inspecting Judge’s attention. 3.9 The Medium A centre reported a series of urgent repairs that were required. These included outstanding electrical repair work by the Department of Public Works (DPW), water leakages, blocked drains and toilets, and water seepage through walls. All of these challenges could be directly linked to the severe overcrowding experienced at the centre. 3.10 The Female centre reported similar water leakages, seepage and blockages. In addition, it reported numerous broken windows, and toilets. It gave no indication of when these would be attended to. 4. FACTORS LEADING TO LONG REMAND DETENTION PERIODS 4.1 JCPS cluster cooperation 4.1.1 Although the Medium A and Female centres reported good cooperation between themselves and the NPA, Legal Aid SA , the SAPS, the Department of Social Development (DSD) as well as feeder courts, remand detainees interviewed, painted a different picture. Legal Aid SA representatives were accused of providing poor services. In some cases there were no consultation with clients and poor representation in court leading to unnecessary delays in sentencing. Magistrates were accused of treating accused unfairly. The SAPS and NPA were accused of collusion and corruption: it was alleged that those servicing certain courts expected bribes in return for motivating for bail. Many detainees complained of having been assaulted by the police at the time of their arrest; none of those interviewed had indicated that they had 19 FEBRUARY 2013 PAGE: 352 of 365 been advised to lodge complaints with the Independent Police Investigations Directorate (IPID). 4.1.2 Concern was raised that despite platforms such as provincial case flow management committees being in place, stakeholders were still unable to resolve simple administrative challenges as simple as record keeping. 4.1.3 Citing a 45% national withdrawal rate, Legal Aid SA disputed that its legal practitioners were overburdened. It identified the fact that attorneys had no access to their clients over weekends, often arrived at centres on weekdays only to find that their clients were not available, or that officials were unable to locate offenders, and that consultation facilities were inadequate as factors impacting in the quality of service to inmates. While the relationship with the DCS’ national management was healthy, the relationship with centre managers had to be cemented. 4.2 Foreign nationals 4.2.1 Foreign nationals place strain on South Africa’s already pressurised correctional system, because of the additional care they demand. There are approximately 10 000 foreign nationals in correctional centres across South Africa. A total of 8 000 of these offenders are from the Southern African Development Community (SADC) alone. South Africa has not entered into any inmate transfer agreements with other countries. With only 1 000 South Africans incarcerated in other countries, such agreements could only be beneficial 4.2.2 According to officials approximately 50% of the cases on the court roll at one of the city’s magistrate’s courts, were those of foreign nationals arrested mostly on drug-related charges. The Department of Justice and Constitutional Development (DoJ&CD) confirmed that ensuring adequate legal representation and fair trials for foreign nationals was a costly undertaking as 19 FEBRUARY 2013 PAGE: 353 of 365 the interpretation services especially were expensive. It was acknowledged that there was a need for greater cooperation between the Departments of Home Affairs (DHA), and other JCPS cluster departments. 4.3 Poor implementation of the audio-visual remand system 4.3.1 The Gauteng Department of Justice reported that the audio-visual remand (AVR) system was under-utilised in most courts. The system was highly dependent on the judiciary, prosecuting authority and correctional centres identifying cases that could be placed on the roll for postponement through the AVR system. Should use of this system increase, the turnaround time for postponements would be reduced, transportation to and from courts, and the associated escape risk would be limited, and matters could more speedily be finalised. 4.3.2 Though some judicial officials raised concerns about the suitability of the AVR system in highly populated circumstances. It was suggested that for a centre as large as Johannesburg a special court to hear only guilty pleas, and bail matters might be more suitable. 4.4 Bail applications/Unaffordable bail 4.4.1 In terms of section 63A of the Criminal Procedure Act, heads of correctional centres may apply for the amendment of bail conditions on account of prevailing prison conditions including whether the centre is overcrowded. The JICS reports that this provision is grossly underutilised. Parliament had in the past been informed that heads of correctional centres stopped making use of this provision, because courts summarily turned down applications made in terms of it. 4.4.2 In 2010 the JCPS cluster reported that the category of inmates for whom the courts had not yet decided to grant bail stood at 37 865 at the end of May that year. This category placed 19 FEBRUARY 2013 PAGE: 354 of 365 enormous strain on the DCS, as it was impossible to divert them in terms of Sections 62 and 63 of the Criminal Procedure Act. The Committee is of the firm opinion that only when remand detention could be strongly motivated for, should it be opted for. 4.4.3 Judicial officers conceded that because the legislative provisions for bail were cumbersome, magistrates did not often take the time to determine whether the accused could afford the bail set, or whether it might be advisable to release them on a warning. The NPA representatives agreed that bail protocol should be revisited in order to simplify it. 4.5 Poor utilisation of diversions and alternative sentences 4.5.1 Judicial officers explained that because they had little faith in the DCS capacity to effectively implement the correctional supervision required when diverting offenders, or imposing alternative sentences, they were reluctant to impose such non-custodial alternatives. The DCS conceded that owing to its acute staff shortages, the implementation of correctional supervision was a challenge. For the system to be effectively implemented, the DCS would need to double, or even triple the staff establishment of its social reintegration branch. 4.5.2 It was emphasised that though much focus was placed on the JCPS-cluster departments and their role in ensuring that alternative sentences and diversions are effective, little is mentioned of the communities have to play. Corrections are a societal responsibility, and require joint efforts from social workers, psychologists, community workers and JCPS-cluster departments. 5. RECENT DEVELOPMENTS 5.1 In September 2012 the JCPS cluster reported that the number of remand detainees continued to decrease annually. This reduction was ascribed to interventions such as improved case flow management, and speedier trials; increased use of alternative dispute resolution mechanisms; 19 FEBRUARY 2013 PAGE: 355 of 365 emphasis on resolving long outstanding cases through additional backlog courts; giving priority to all matters where the accused have been in custody for long periods of time. The cluster reported that in most cases, matters were dealt with in three to four months. Fewer than six percent of matters remained unresolved for two years or longer. By the end of March 2012, the average length of time spent in remand had been reduced from 150 days to 96 days. 5.2 In July 2012 the JCPS cluster approved a protocol outlining their roles and responsibilities with regard to the implementation of provisions regulating the length of time a person may spend in remand detention. The DCS has developed a draft circular and relevant forms for distribution and training once implementation of the section commences. 5.3 An IT solution which will allow the DCS to identify detainees who, based on the length of time spent in remand, qualified for referral to court to have the matters reviewed. The IT solution was expected to have been finalised by the end of the 2012/13 financial year, whereupon section 49G would become implementable. The cluster was developing a plan for addressing the backlog of cases older than two years, which would be implemented three months before the coming into operation of the section. 5.4 Pending the insertion of a parallel provision in the Criminal Procedure Act, the judiciary would make use of the options highlighted in section 63A of that Act to manage DCS applications to have matters referred to court. 6. RECOMMENDATIONS The Committee requests that the Minister of Correctional Services (the Minister) ensures that the following recommendations are considered, and where possible, implemented. The 19 FEBRUARY 2013 PAGE: 356 of 365 Minister should further ensure that responses on their feasibility and/or implementation progress reports are submitted within one month of the adoption of this report. 6.1 The Committee should be provided with a progress report on how the maintenance challenges mentioned above have been addressed. Every effort should be made to explore ways in which the impact over crowding has had on the infrastructure may be mitigated. 6.2 The Committee should be provided with a progress report on the DCS’ readiness to implement section 49G of the Correctional Matters Amendment Act, which regulates the period of time a person may be held in remand detention. The Committee further advises, that the training in the implementation of the provision, should not commence only when the section becomes implementable, but before. 6.3 Upon admission all remand detainees should be informed of their rights under the new legislation. In addition medical assessments must take place as required by the legislation. Where detainees arrive at centres with injuries sustained in police custody, they should be advised to press criminal charges, and/or lodge complaints with the IPID. Medical care should be provided immediately. 6.4 The DCS should ensure that Legal Aid SA-practitioners’ access to their clients was not unnecessarily restricted. The Committee acknowledges the myriad of infrastructural challenges faced by many correctional centres, and the Johannesburg centre in particular, but must urge heads of correctional centres to demarcate suitable spaces that may be used for consultation. 19 FEBRUARY 2013 6.5 PAGE: 357 of 365 The DCS should provide the Committee with a report on the extent to which Section 63A of the Criminal Procedure Act had been used in between January and October 2012, and how these applications had been received by the courts. 6.6 The magistracy and judiciary’s reluctance to make use of the bail protocol is noted. It is recommended that the protocol’s impact since its implementation should be assessed, and that the necessary amendments, if any, be made to ensure that it may be utilised with the desired effect. Report to be considered FRIDAY, 8 FEBRUARY 2013 TABLINGS National Assembly and National Council of Provinces 1. The Minister of Correctional Services (a) Revised (Errata) of the Report and Financial Statements of Vote 21 – Department of Correctional Services for 2011-12. National Assembly 1. The Speaker 19 FEBRUARY 2013 (a) PAGE: 358 of 365 The President of the Republic submitted the following letter dated 5 February 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of additional members of the South African National Defence Force for service in fulfilment of international obligations of the Republic of South Africa towards the Republic of Mozambique. CREDA INSERT - T130208e – Insert1 – PAGE 118 (b) The President of the Republic submitted the following letter dated 31 January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in co-operation with the South African Police (SAPS) within the Republic of South Africa to prevent and combat crime and maintaining and preserving the law during the opening of Parliament. CREDA INSERT - T130208e – Insert2 – PAGE 119 (c) The President of the Republic submitted the following letter dated 7 January 2013 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for service in fulfilment of an international obligation of the Republic of South Africa towards the Central African Republic. CREDA INSERT - T130208e – Insert 3 – PAGE 120-121 TUESDAY, 12 FEBRUARY 2013 19 FEBRUARY 2013 PAGE: 359 of 365 ANNOUNCEMENTS National Assembly and National Council of Provinces 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 section 75 Bill: (a) Employment Services Bill [B 38 – 2012] (National Assembly – sec 75). (2) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill: (a) Broad-Based Black Economic Empowerment Amendment Bill [B 42 – 2012] (National Assembly – sec 76). TABLINGS National Assembly and National Council of Provinces 1. The Minister of Finance (a) Report and Financial Statements of the Registrar of Collective Investment Schemes for 2011 [RP 340-2012]. 19 FEBRUARY 2013 2. PAGE: 360 of 365 The Minister of Justice and Constitutional Development (a) Report dated 5 February 2013 on withholding remuneration from Mrs N Ndamase, an additional magistrate at Pretoria, tabled in terms of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993). National Assembly 1. The Speaker (a) Reply from the Department of Justice and Constitutional Development to recommendations in Budgetary Review and Recommendation Report of Portfolio Committee on Justice and Constitutional Development, as adopted by the House on 14 November 2012. Referred to the Portfolio Committee on Justice and Constitutional Development. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Transport on the South African Maritime and Aeronautical Search and Rescue Amendment Bill [B 28 – 2012] (National Assembly – sec 75), dated 12 February 2013: 19 FEBRUARY 2013 PAGE: 361 of 365 The Portfolio Committee on Transport, having considered the subject of the South African Maritime and Aeronautical Search and Rescue Amendment Bill [B 28 – 2012] (National Assembly – sec 75), referred to it and classified by the JTM as a section 75 Bill, reports the Bill without amendment. Report to be considered. WEDNESDAY, 13 FEBRUARY 2013 COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Rural Development and Land Reform on the Spatial Planning and Land Use Management Bill [B14B – 2012], dated 12 February 2013. The Portfolio Committee on Rural Development and Land Reform, having considered the subject of the Spatial Planning and Land Use Management Bill [B14 – 2012], (National Assembly – section 76 (1) referred to it and classified by the Joint Tagging Mechanism as a section 76 (1) Bill), reports the Bill with amendments [B14B-2012]. The Committee reports the Bill further as follows: 1. Background 19 FEBRUARY 2013 1.1. PAGE: 362 of 365 The Spatial Planning and Land Use Management Bill [B14-2012] (SPLUMB) was referred to the Portfolio Committee on Rural Development and Land Reform (the Committee) on 18 June 2012. 1.2. Subsequently, the Committee invited members of the public to make written and oral submissions on the Bill. On the 27 - 29 July 2012 the Portfolio Committee published a notice in the press inviting submissions by no later than 10 August 2012. On 21 and 22 August 2012, the Committee conducted public hearings in Parliament, where it heard oral presentations from 32 organizations that responded to the call for comments by members of the public. The submissions raised, amongst others, the constitutionality of the Bill in relation to the conceptual understanding of the national interest and provincial powers in relation to spatial planning and land use management. 1.3 SPLUMB is a national framework legislation to address the fragmented, unequal and incoherent spatial planning and land use management systems which currently exist in South Africa. Therefore, it should not be prescriptive but allow the provinces to develop own legislation to regulate planning taking into account their own peculiarities. 1.4 Drawing on the proceedings of the public hearings, the Committee identified the following key issues for further engagement and deliberation: The constitutionality of the Bill. Public participation in the preparation and development of Spatial Development Frameworks and Land Use Schemes. Transitional arrangements. Institutions and processes for appeals. 19 FEBRUARY 2013 PAGE: 363 of 365 Delineation of powers and functions (national interest and provincial powers in relation to municipal planning) Timeframes for consideration of development applications Lack of formal consultation with the House of Traditional Leaders 2. Deliberations 2.1 The processing of the Bill involved deliberations as well as discussions with the Department and the State Law Advisers and reading the Bill clause by clause. 2.2 The Committee sought independent legal opinion on the constitutionality of the Bill and Adv I Jamie was appointed by the Committee. The committee intended to ensure that the Bill meets the highest standards of quality expected by Parliament as was indicated by the Speaker of the National Assembly during the 2012 Budget Vote debate of Parliament. The Speaker called on Parliament to build up capacity in Committees to ensure that legislation coming out of Parliament can stand Constitutional scrutiny. 3. Conclusion and recommendation 3.1 After extensive deliberations on the Bill, the committee together with the Department of Rural Development and Land Reform, State Law Advisers and Parliamentary Legal Advisor agreed on the proposed amendments that informed the B Version of the Bill to be tabled in the National Assembly during the second reading of the Bill. 19 FEBRUARY 2013 3.2 PAGE: 364 of 365 The Committee recommends that the National Assembly adopts the Spatial Planning and Land Use Management Bill [B14B -2012]. Report to be considered FRIDAY, 15 FEBRUARY 2013 TABLINGS National Assembly and National Council of Provinces 1. The Minister of Labour (a) Erratum of the Annual Performance Plan of the Department of Labour for 2012-13. (b) Erratum of the Strategic Plan of the Department of Labour for 2012-17. TUESDAY, 19 FEBRUARY 2013 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 19 FEBRUARY 2013 1. PAGE: 365 of 365 Bills passed by Houses – to be submitted to President for assent (1) Bill passed by National Council of Provinces on 19 February 2013: (a) Further Education and Training Colleges Amendment Bill [B 24B – 2012] (National Assembly – sec 76).