25 OCTOBER 2011
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TUESDAY, 25 OCTOBER 2011
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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The House met at 14:00.
The Speaker took the Chair and requested members to observe a
moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NEW MEMBER
(Announcement)
The SPEAKER: Hon members, I have to announce that the vacancies
that occurred in the National Assembly, due to the resignations
of Dr A N Luthuli, Mrs T J Tshivhase, Mr H P Chauke, Ms N A
Mayende-Sibiya and Mr B M Komphela have been filled by the
nominations with effect from 20 September 2011 of Ms D Sibiya
and with effect from 19 October 2011 of Mr D L Ximbi, Mr F
Bhengu, Ms J Tshabalala and Ms M M Mohorosi.
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The members had made and subscribed the Oath of Affirmation in
the Speaker’s Office on 25 October 2011.
MEDIUM-TERM BUDGET POLICY STATEMENT
(Statement by Minister of Finance)
ADJUSTMENTS APPROPRIATION BILL
(Introduction)
TAXATION LAWS AMENDMENT BILL
(Introduction)
The MINISTER OF FINANCE: Speaker, Mr President, Mr Deputy
President, fellow Cabinet colleagues, our new colleagues who
have just been appointed by the President, Deputy Ministers, the
Governor of the Reserve Bank and Deputy Governors of the Reserve
Bank, MECs for Finance, members of the diplomatic corps,
directors-general, heads of the finance family, hon members and
ladies and gentlemen, I have the honour to present the third
Medium-Term Budget Policy Statement, MTBPS, of President Zuma’s
administration.
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We present this policy statement at a time when our own economy
is recovering, but there are still winds of uncertainty in
places that seem far away, which can rapidly affect us for
better or worse at any time.
We have learnt from the 2008 global crisis that sound fiscal and
financial institutions do not in themselves provide immunity
against job losses in our own economy arising from turbulence
originating elsewhere in the world. They are also insufficient
for repositioning our economy on a new growth trajectory that
creates jobs, reduces inequality and improves the quality of
life of our people.
Our economic transformation requires much more. It requires an
extraordinary national effort from all role-players, committed
not just to identifying the barriers to progress, not just to
proposing solutions, but also to working together over the long
haul.
In February, at the time of this year’s Budget, Mr President, we
referred to your earlier injunction, and I quote:
We want to have a country where millions more South Africans
have decent employment opportunities, which has a modern
infrastructure and vibrant economy and where the quality of
life is high.
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Mr President, we said in this Budget in 2011, and I quote again:
It reflects the collective determination of the government to
address with energy the challenges of creating jobs, reducing
poverty, building infrastructure and expanding our economy.
The Budget sets out a financial framework for implementing
this vision, a framework that is sound and sustainable. It
recognises that building South Africa is a multidecade
project that must invigorate our capacity to grow, and must
include all South Africans in that growth.
This remains our point of departure, but once again we have to
take stock of this very uncertain environment and review how we
might better address our challenges and seize new opportunities,
because there are opportunities.
For the past two years we have felt the shock waves of financial
crises, first in the United States and the UK and now at the
epicentre in Europe.
A year ago, at the time of the 2010 MTBPS, we thought we would
see a sustained improvement in global recovery and in our
economy. That was not to be. The eurozone crisis has brought new
financial challenges and threats to global growth. We are also
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seeing rising inflation and overheating in several economies,
including Brazil, India and China.
Once again, we face the prospect of a decline in global trade,
falling industrial demand, delays in investment, liquidation of
businesses and stressed financial institutions; this time with
the added risk that fiscal austerity will extend the slowdown
and deepen the crisis in some parts of the world.
The crisis of leadership currently reflected in the eurozone and
in Europe is having a damaging effect on the global economy,
including our own. The world expects Europe, as its leaders meet
tomorrow, to urgently mobilise the resources required to
recapitalise their banks and support a durable restructuring of
insolvent or debt-laden economies.
The MTBPS sets out the fiscal and budgetary dimensions of the
government’s response to what some have called “dangerous
times”. It challenges us to confront both our immediate
priorities and long-term development imperatives. It invites
this House and all South Africans to join in our collective
effort to do more with the resources at our disposal, to
strengthen our economic performance and improve public service
delivery.
In brief, Mr Speaker, the MTBPS advises the following:
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The global environment poses considerable risks to the world
economic recovery, and the outlook for our own economy.
Our tax revenue collections have not yet recovered fully from
the effects of recession, and so our counter-cyclical fiscal
stance allows for a temporary increase in borrowing.
Higher borrowing must be carefully managed. Capital markets are
volatile and debt service costs are already the fastest growing
category of expenditure on our books. That means, as we pay more
interest on debt, that we have less money available for service
delivery.
Over the next three years, we will stabilise the debt level
through fiscal consolidation and a moderation in expenditure
growth.
The composition of our spending needs to change. While public
service expenditure has continued to expand strongly, we are not
doing well enough to build a growing economy. By composition of
spending we mean how much we are spending on investment in
infrastructure, on goods and services and on paying interest on
our debt. It means how much we are spending on compensation of
public sector employees as well as what the right balance is in
order to have more money available for investment in
infrastructure.
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If we want to stabilise growth and increase growth, we must
prioritise public infrastructure spending and invest in jobcreating assets. We must also build support for business
investment through a competitiveness package and protect workers
and enterprises affected by current economic conditions and
worse conditions that might follow.
We will create what we may call a policy reserve and indicate
options for reprioritising expenditure and mobilising other
resources within the state to fund economic development
priorities.
We have to address inefficiency, extravagance and waste in
public administration, for trusteeship is at the heart of the
contract between government and its citizens. We need to
continually remind ourselves that the money we use and spend is
the money of our citizens, not our own. [Applause.]
I am sure the ANC agrees with that as well. [Applause.] We have
to demonstrate our majority from time to time. In confronting
these challenges forthrightly, we are mindful that similar
issues are faced by many other countries.
Across the world, there is rising indignation about
unemployment, about inequality, about environmental degradation,
about corruption, about the abuse of power - correctly so.
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Across the world, there is impatience at the slow pace and poor
outcomes of international co-operation. There is anger about the
impact of financial and governance failures on ordinary people,
on employment and on livelihoods. But anger is not enough; we
have to act, we have to be bold and far-sighted in our resolve
to move ahead with the reforms that will build a better future,
not just for ourselves, but for generations to come.
Mr President, you have put jobs at the top of the agenda of our
new growth path. Cabinet has endorsed a 12-point programme of
action and we have targets and delivery schedules for a wide
range of public services, programmes, projects and activities.
Various Ministers are addressing themselves to the injunctions
that you have placed before them. Minister Chabane is active in
respect of monitoring and evaluation. Minister Manuel is soon to
emerge with the documents from the planning commission - I
thought he might be followed by the man in yellow, who seems not
to be around today.
Minister Nkwinti is steering a new course in development of
rural livelihoods. Minister Patel has taken the lead in respect
of social dialogue. Ministers Motshekga and Nzimande are doing
their bit to improve our education and training systems.
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How do we achieve the right balance between these and other
objectives in public policy? How do we manage the tension
between promoting a dynamic, enterprising economy and provision
of collective goods and services?
The MTBPS does not set out the details of policies or spending
plans, as these are the responsibility of specific Ministers and
their departments, and furthermore there is still work that is
being done at present. However, it provides the broad framework
and it signals what is likely to be affordable.
It also invites Parliament, and all stakeholders, to reflect on
the choices before us, and to assist in finding the best
combination of revenue measures, borrowing and spending plans
that is consistent with economic growth, sustainability, broadbased development and social progress.
In reporting on the outlook for the economy, Mr Speaker, we have
to take account of the slowdown in the world economy and
continuing uncertainty associated, as we said earlier, with the
unresolved European debt crisis and sluggish growth in the
United States. Global trade and growth at present are mainly
driven by continuing expansion in China, India and other fastgrowing developing countries.
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Advanced economies are expected to grow by 1,6% on average this
year, rising to 1,9% next year – look at those low numbers.
Taking into account population growth, at best, this is standing
still. On the other hand, developing Asia will continue to grow
at over 8% a year, and Sub-Saharan Africa is projected to grow
by between 5% and 6% a year.
South Africa’s economic growth typically follows the average
global trend quite closely. We saw a gradual recovery last year
and an annualised GDP growth rate of 4,5% in the first quarter
of this year. But in the second quarter, growth slowed to 1,3%,
which is somewhat below the projection at the time of the Budget
in February. For the period ahead, growth is expected to be 3,4%
next year and rising to be just over 4% in 2014 and 2015.
The current account deficit of the balance of payments will
average about 4% of GDP. Consumer price inflation has increased
over the past year, and is expected to stabilise at about 5,5% a
year.
Within the global economy, the overall trend is a gradual, but
still inadequate convergence between living standards in rich
and poor countries. The gap is still very wide and individual
countries’ performance varies considerably.
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We have not yet seen convincing evidence of convergence within
the South African economy. The income gap and the development
gap are still very wide and employment growth has been too
sluggish.
Also of concern is that the trends in expenditure and production
are not taking us in the direction of faster, sustainable
growth. South Africa has benefited from the boom in commodity
prices over the past several years, and this has not led to
significant growth in mining production. Energy constraints,
inadequate transport capacity and uncertainty in the regulatory
environment have held back progress.
In contrast, mining production expanded by 30% in Australia, and
44% in Brazil between 2003 and 2010. This has provided a huge
boost for investment, tax revenues, jobs and incomes in these
countries. Minister Shabangu’s engagement with the Chamber of
Mines on increasing investment in our mining resources is
therefore to be welcomed.
In the manufacturing sector, rising domestic costs and weak
external demand have held back the output recovery. Minister
Davies is seeking common ground with leaders in industry on a
strategy to revitalise manufacturing and provide appropriate
support.
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We recognise also that the volatility of the rand remains a
difficulty for many businesses in the tradable goods sectors.
The currency has traded in a range of R6,58 to R8,25 to the US
dollar this year, with volatility clearly linked to global
financial turmoil. The rand weakened by as much as 7,5% against
the US dollar in one day during September, before strengthening
by 5,4% on another. Depreciation in the value of the rand in
recent months has brought some relief to manufacturers, though
it has also contributed to some upward pressure on prices.
Of particular importance is the trend in food prices. Minister
Joemat-Peterson’s efforts to improve our agricultural trade
position and support emerging farmers are critical not just for
food security, but also because of the employment potential
associated with farming activities. The expanding role of the
Land Bank in supporting the farming sector will assist in
growing our agriculture sector while contributing to job
creation. However, the trend in gold prices is still of concern.
Mr Speaker, trends in the labour market indicate the magnitude
of the economic challenge ahead. Real wage levels have increased
in both the public and private sectors, but the pace of job
creation has been far too slow. In the 15 months to March 2010,
426 000 jobs were lost in the formal nonagricultural economy,
and the estimated overall loss of jobs was more than double
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this. In the subsequent 15 months of recovery to June this year,
just 210 000 jobs were created, mainly in the public sector.
The quarterly employment survey records 8,3 million formal, nonagricultural jobs. Several million people also earn uncertain
incomes in agriculture or household employment, and in informal,
seasonal and unrecorded activities.
Yet the challenge for us is: How do we bring these activities
into the formal economy? How do we improve livelihoods in
vulnerable and insecure activities, in which productivity is low
although there may be potential for growth?
The recent recession has exposed similar concerns in many other
countries, so we are not alone in this regard. Everywhere in the
world there is a struggle to boost job creation and to recognise
and enhance the value of atypical forms of work. So we need to
acknowledge Minister Oliphant’s difficult task in finding the
right balance between protecting job security, on the one hand,
and on the other, the adjustment to changing market
opportunities.
The agreement reached between the South African Clothing and
Textile Workers’ Union, Sactwu, and employers in this sector
illustrates that dialogue is the way to make progress.
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Countries deal with these issues in different ways. We have to
learn from international experience, and adapt these lessons to
our circumstances. A crucial part of any package is social
security and health insurance reforms, which are important
elements in building a better deal for vulnerable workers,
providing protection against unemployment, illness or injury and
securing an adequate income in retirement.
In addition to this, better city planning, investment in public
transport and well-targeted financing of housing and residential
development are also important elements in what we call the
social wage. These are activities that create work opportunities
in themselves, but they also create better living conditions for
working people and make it easier for the unemployed to search
for jobs.
The central thrust of our economic policy challenge is to
support competitiveness and promote the kinds of structural
change that will lead to more rapid, inclusive growth.
This means that we need to have a reserve of funds and a
capacity to direct these resources effectively. The Medium Term
Budget Policy Statement, MTBPS, proposes a competitiveness
support package of some R25 billion over the next six years to
boost industrial development, assist enterprises and to
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accelerate job creation. This initiative will build on several
broader programmes that already exist or need to be enhanced.
These include tax incentives for industrial investment;
technology and training amounting to over R8 billion for the
recently approved projects; continuing investment in energy,
water, transport, communications and infrastructure; improved
incentives for investment in industrial development zones,
particularly where there is the potential to participate in
global supply chains and to develop competitive logistics hubs.
Also of importance is regulatory and administrative reform to
facilitate small business development and above all micro
business development; support for black business development,
including preferential procurement and finance facilities; and
encouragement of export diversification including new trade
partnerships with fast-growing emerging economies.
Regional integration within Sub-Saharan Africa, including
investment in a North-South transport corridor and
administrative reform of trade arrangements are important
elements also. Support for job creation, training and community
work projects will also add to this list.
The alignment of trade, investment and energy policies to
support the transition to a green economy, including private
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sector participation in our renewal energy production programme
are all elements together that give us hope that we can reignite
growth and faster job creation within our own economy. The
fiscal challenge over the next three years is complex; we must
support job creation, maintain the value of the social wage and
finance economic transformation outlined in the new growth path.
Over the longer term, we must realise a rising flow of social
and economic rights. Achieving these objectives, of course,
requires us to work within a sustainable fiscal framework. Since
2009, in response to the global crisis and the recession, we
have pursued what we might call an accommodative fiscal stance.
Revenue has fallen, as we indicated earlier, but we have
maintained real growth in expenditure, complementing the Reserve
Bank support for the economy through low interest rates and
monetary easing.
Beginning in 2002, noninterest expenditure doubled in real terms
in seven years and consolidated spending increased to 32% of
GDP. This spending growth was largely financed by increased
revenue associated with the economic expansion and improved tax
compliance and administration - so please continue to pay your
taxes.
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However, the higher revenue also included a temporary windfall
associated with high commodity prices. Revenue has now declined
relative to GDP and the budget deficit has, of course, widened.
For the first six months of the fiscal year, tax receipts grew
by 7,1%, which is significantly lower than it was anticipated in
the February Budget.
The lag in consumption spending and high administered prices
have particularly affected small- and medium-sized businesses,
contributing to lower back resets. The South African Revenue
Service, Sars, has detected an increase in VAT fraud and has
introduced more stringent screening of VAT refunds which to date
has led to the prevention of R4,2 billion of potential VAT
fraud.
Let me just illustrate what this means: Businesses submit VAT
returns and they say, “You owe me R2 million”, and when
something suspicious arises, Sars says to these businesspeople,
“Would you like to take a new look at your form before you
resubmit it for real”? And when it comes back for real, the
numbers are changed and as a result of the voluntary “change in
numbers”, R4,2 billion has been saved - let alone any additional
enforcement that needed to take place. So if you have friends
who do these things, please remind them to do the right thing.
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Although corporate income taxes have not yet recovered to
prerecession levels, they have remained resilient, despite the
uncertain economic climate. Customs duties and import VAT have
grown significantly year on year and to some extent, have offset
the poor performance of what we might call domestic VAT.
Enhancements in customs administration have resulted in faster
processing of commercial traffic at border posts and have in the
main attracted favourable responses from traders. This year we
expect tax revenue to be R729 billion, which is R13 billion
below the February Budget estimate. Next year, government will
spend – get your pens and paper ready - over R1 trillion for the
first time. So work out how many noughts there are in that!
[Applause.]
The result is that the deficit will be 5,5% of the GDP this
year. For the period ahead, the deficit will decline by 5,2%
next year and by 3,3% by 2014-15.
The consolidated public sector borrowing requirement will be
8,1% of the GDP this year, falling to about 5% of the GDP in
2014-15. Government debt will rise from 23% of the GDP in 2009,
to about 40% of the GDP in 2015, which signals the very
substantial contribution of the fiscus over this period to the
economic recovery and growth.
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Put in simple terms, this is the period - the last two years during which the private sector has actually retreated from its
participation and leading role in the economy, and government
has been the main carrier of the growth momentum in our own
economy.
Budget deficits and continued rising debt erode the space for
fiscal and monetary policy responses in future downturns. For
the next three years, the aim is to moderate spending growth so
that combined with a recovery and tax revenue, national debt
will be stabilised as a percentage of GDP.
This means that by 2014-15, we can begin to rebuild the fiscal
space with a positive primary balance or revenue which is
broadly in line with noninterest spending. In other words, we
must borrow to invest in infrastructure, not borrow for
government consumption – and that is the key shift we need to
make. [Applause.] We will once again create a policy reserve to
finance the initiatives we propose in support of economic
growth.
Government as a whole has substantial financial investments,
sometimes in surplus cash and sometimes in other assets. Where
these resources could be more productively applied to other
priorities, we would return the surplus funds to the fiscus.
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Greater efficiency must also be sought in government cash
management and in goods and services procurement where ordinary
disciplines of financial management have to be strengthened. In
simple terms, what we are saying is that one arm of government
can’t be holding on to millions or billions of rand in cash,
while another arm goes out to borrow and pays 8% interest.
Better cash management means, let’s use all of these resources
without having to borrow unnecessarily.
Further steps will be taken to reduce administrative costs and
the unnecessary duplication of capacity. Departments will be
obliged to identify and report on savings initiatives. In
addition, we will request the Auditor-General to strengthen his
focus on the value-for-money proposition.
Long-term sustainability, hon members, depends also, on shifting
the composition of government spending from consumption to
investment. Our aim is to strengthen infrastructure investment
and maintenance, because this is the key contribution to the
underlying growth potential of our economy. This means that we
must see a moderation in the growth of the wage bill and
spending on goods and services over the MTEF period ahead. You
must do more with less.
Over the past three years, the Public Service wage bill has
increased from 35% to nearly 40% of noninterest expenditure. The
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proposed framework for the 2012 Budget provides for more
moderate cost of living adjustments for the public sector
employees than in recent years, to be implemented earlier with
effect from April of each year.
All of us must share in creating a greater momentum for growth,
jobs and investment. As government, we see the need for the same
principle of moderation to be applied to ourselves as Cabinet
Ministers and other political office bearers. [Applause.] This
must also be extended to senior management in the Public Service
and executives of state entities. It is vital that the private
sector provides responsible leadership as well. Indeed,
throughout the world we need to see a paradigm shift in this
regard.
We want to assure our people that we will address inefficiency,
extravagance and waste in public administration. [Applause.] In
the wider economy, the same principle applies – moderation in
consumption means higher savings and stronger growth.
We will do all of this and more, because we need to invest more
money in infrastructure that will help to stimulate the economy
and increase job creation.
In recent years, infrastructure spending by many national and
provincial departments and municipalities has lagged behind
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budget allocations. Efforts to strengthen capacity to manage
capital budgets and construction contracts are therefore
necessary. The Development Bank of Southern Africa, DBSA, is
providing support in this area, but we also need to see much
greater responsibility and accountability in municipal councils
and key infrastructure departments, state-owned companies and
public entities.
Public sector infrastructure spending in the current year is
estimated at R233 billion, or 7,8% of GDP. Over the Medium-Term
Expenditure Framework, MTEF, period ahead infrastructure plans
amount to R802 billion. This is a very substantial investment
programme, within which there is considerable opportunity for
local construction and manufacturing development and job
creation.
Investment in the energy sector amounts to R292 billion over the
next three years. Transport and logistics account for R226
billion. Provision is made for hospital construction and other
health facilities amounting to R39 billion, and education
facilities to R32 billion.
Substantial funding will go to municipalities and provinces for
housing, residential infrastructure and local economic
development. Much of this will be financed through debt. Stateowned enterprises, SOEs, will borrow about R74 billion this year
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to finance investment spending, rising to just under R80 billion
next year.
We need to appreciate that debt has to be repaid, either through
the tariffs and charges that are dedicated to these services, or
through higher taxes. It is important to find the right balance
between cost recovery from users of services, on the one hand,
and on the other, general tax funding. But the cost of not
expanding capacity, the cost of not maintaining and
rehabilitating ageing infrastructure, is an even greater future
burden of congested and dangerous networks, constrained
production and economic decline.
Before turning to the medium-term expenditure plans for the 2012
Budget, I need to explain briefly the adjustments proposed for
this year’s allocations. These are set out in the Adjusted
Estimates of National Expenditure.
Additional appropriations are proposed amounting to R10,3
billion. Almost half of this amount is required to fund higherthan-planned wage bills; R3,2 billion will go to the provinces
and R1,2 billion to the national departments.
The cost of the 2011 wage settlement will also require savings
and reprioritisation in departmental administration and
programme expenditures. In other words, most departments and
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provinces are receiving some money in this allocation to cover
the additional wage increases, but some of that money must be
found from within the departments and provincial budgets.
Members of the House will note that many departmental votes
include shifts in funds between identified activities, known as
virements. Reservations have been expressed in this House, about
these midyear changes to allocations, and the extent to which
departments are able to amend allocations that have been
approved in law.
Our aim is to bring greater reliability and consistency to the
appropriations over time. However, it is not possible to predict
expenditures with complete certainty, and so some scope for
adjustment has to be accommodated within the budget rules.
On top of the additional allocations for wages, R3,8 billion of
unspent money from last year is rolled over to this year. The
adjustments also include provision for unforeseeable and
unavoidable expenditure.
Some R150 million will go to help farmers to recover from the
damage caused by flooding and the harm caused by livestock
diseases. An amount of R81,4 million is required by Minister
Sisulu to fight piracy in the Mozambican Channel. An amount of
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R266 million is proposed for once-off gratuities to be paid to
outgoing councillors.
An amount of R208 million is allocated to meet urgent needs
associated with acid mine damage and drainage, and R752 million
goes to provinces for various conditional grants. The overall
impact of the adjustments is a decrease of just under R1 billion
in the 2011-12 expenditure estimate.
In brief, we are adding to our spending plans for higher wages
and salaries, but we will see offsetting underspending on
investment and maintenance of infrastructure this year. This is
not an acceptable situation. This is a pattern that needs to be
reversed in the period ahead.
I now turn to the proposed expenditure framework for the 2012
Budget. I need to compliment this House, the chairs of portfolio
committees and the appropriations committee for the constructive
advice set out in the first set of Budget Review and
Recommendation Reports last year. Parliament’s attention to the
details of public expenditure plans and their implementation is
critical for the success of our economic transformation and
social development agenda.
The expenditure framework for the period ahead provides for real
growth in spending of 2,3% a year – real growth means if you
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take inflation out. Reprioritisation and a concerted focus on
efficiency and improved financial management mean that new
expenditure priorities are mainly financed by savings within
this expenditure envelope. A total of R48 billion is added to
the spending allocations over the MTEF period, partly to
accommodate the carry-through costs of this year’s salary
increases.
Chapter 4 of the Medium-Term Budget Policy Statement, MTBPS,
outlines the planned consolidated expenditure of national and
provincial government and public entities, and summarises the
division of revenue between national, provincial and local
government.
Let me highlight some of the key features. As a consequence of
the wider budget deficit since 2008, state debt cost is the
fastest growing category of spending, increasing to R115 billion
in 2014-15, or just under 10% of our total expenditure.
Transport infrastructure is the second fastest growing category,
rising from R67 billion this year to over R90 billion in three
years’ time. Minister Ndebele’s responsibilities include the
first phase of the commuter rail rolling stock replacement
programme, and continued investment in the construction and
rehabilitation of national and provincial roads.
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Public order and safety spending is set to increase by 7,4% this
year. The Expanded Public Works Programme continues to make
progress towards a target of 3,4 million job opportunities over
the next three years. The recently established Community Works
Programme will be expanded to about 250 000 participants by
2014-15.
Health gets an amount which is increased by 7,4% a year, from
R113 billion this year to R140 billion in three years’ time.
Spending on local government, housing and community amenities
will rise from R122 billion to over R146 billion over the next
three years.
There will be similar expenditure on the environmental
protection and green economy initiatives, which will be
strengthened. This includes assistance to municipalities for
electricity demand management programmes and private sector
partnerships aimed at reducing greenhouse gas emissions.
Allocations for science and technology will increase by 9,5% a
year over the period ahead, with a special focus, under Minister
Pandor’s guidance, on support for business innovation with
potential for growth and employment creation.
Of the R48 billion available for allocation in the 2012 Budget,
42% goes to the provinces and 11% to local government.
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Personnel expenditure will take up part of the revised
provincial shares and allocations are also made for
infrastructure repairs and rehabilitation and early childhood
education programmes.
Transfers to municipalities take into account service delivery
backlogs that have to be addressed, and bulk infrastructure and
waste management services.
Decisive steps need to be taken to address slow and inefficient
spending on social and economic infrastructure by provinces and
municipalities. The rules for infrastructure conditional
transfers to provincial departments and municipalities will be
adapted to improve planning, procurement and implementation
procedures.
The intention is to reward provincial departments and
municipalities that accelerate implementation and ensure
efficient and cost-effective delivery of services. These
measures will be introduced from April 2012 and will be
announced during the tabling of the Budget next year.
In short, what we are saying is that in many of these instances,
money isn’t a problem. The challenge of implementation is what
we need to meet. [Applause.] If there are departments, provinces
or municipalities that are not using their conditional grants
25 OCTOBER 2011
PAGE: 29 of 329
properly, we will have amendments in place which allow for
national departments or entities to intervene.
To grow the economy and further accelerate access to basic
services, greater infrastructure investment is needed by
municipalities. The 2011 Medium-Term Budget Policy Statement,
MTBPS, signals a number of interventions in this regard. First,
funding is targeted at smaller, predominantly rural
municipalities to improve their institutions in order to deliver
faster and quality services to their citizens. This should put
them in a position to recruit and retain skilled municipal
managers and obtain financial management expertise.
Second, these municipalities will also be provided with greater
national support. Depending on their circumstances and need,
bulk infrastructure project implementation will be accelerated.
Third, our metropolitan and secondary cities, which are our big
cities, are home to the urban poor, who are accommodated in many
instances in large informal settlements. Over R60 billion is to
be spent in these cities and towns to transform these informal
settlements into fully integrated and dignified built
environments. [Applause.] The spirit of enterprise is there; we
need to collectively roll up our sleeves and face these
challenges head-on.
25 OCTOBER 2011
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Our fiscal policy is built on the guidelines outlined in the
2011 Budget Review. The counter-cyclicality guideline means that
changes in the Budget balance work to offset the fluctuations in
demand that create economic slowdowns and booms.
The second guideline is that debt sustainability increases in
the stock of debt, incurred by financing deficits during
slowdowns, will be offset by debt reduction in boom periods.
The third guideline, intergenerational equity, states that our
children and their children should not be unfairly burdened by
the future costs of commitments we make today. In other words
don’t leave your debts for your children to pay.
Next year, the National Treasury will publish a long-term
outlook for public finances drawing on these guidelines and
taking into account South Africa’s demographic trends and
economic challenges. It will explore the implications for
government finance of major long-term priorities, including
improvements in infrastructure investment and maintenance,
social security and retirement reform, the establishment of
national health insurance, the role of development finance
institutions and the strengthening of our municipal finances.
In other words, we want to try to do a five- or ten-year plan so
that we can comfortably and sustainably do the things that we
25 OCTOBER 2011
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need to do with the urgency with which they actually need to be
done.
The main source of finance for the real growth of total
expenditure will be, as always, tax revenues. I wish to pay
special tribute to Commissioner Magashula and the South African
Revenue Service team for their continued hard work and success
in building payments compliance and securing the revenue stream.
[Applause.]
Co-ordination of fiscal and monetary policy is also critical to
macroeconomic management and our financial stability. Working
together with Governor Gill Marcus and the South African Reserve
Bank, we have begun the reform of financial regulation and risk
management set out in the paper, A Safer Financial System to
Serve South Africa Better, which was published in February 2011.
Prudential regulation has been strengthened by establishing the
Financial Stability Oversight Committee chaired jointly by the
Governor and me. It aims to ensure that we maintain financial
stability and deal effectively with systemic risks to our
financial system which might come from outside our own country.
Progress has also been made in setting up the necessary
technical support to implement the proposed separation of
25 OCTOBER 2011
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prudential regulation and consumer protection, which will
probably take the next two or three years to implement.
We have also agreed on several reforms to improve South Africa’s
position as a financial and investment gateway into Africa and
facilitate cross-border transactions into Africa. All inward
listed shares on the JSE, will henceforth be classified as
domestic assets and be included on the JSE indices as agreed
with the regulatory authorities.
Steps will be taken to simplify procedures and reduce the cost
of cross-border money remittances, particularly to neighbouring
countries and the rest of Africa.
I am pleased to be able to assure the House that whilst some
banks in advanced economies now appear to be undercapitalised,
our own banks and financial markets are in robust condition. Our
regulatory and oversight systems have stood the test of time,
ensuring that our financial sector has remained steady in these
troubled times.
Minister Nzimande seems to disagree. [Laughter.] I am pleased to
welcome the new Banking Registrar, Mr Rene van Wyk, who will
take forward this work and will build on the firm foundations
laid by his predecessor, Mr Errol Kruger.
25 OCTOBER 2011
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On previous occasions I have stated that we must target economic
growth of 7% per year sustained for a generation or longer. At
this pace the economy would double in size every 10 years,
delivering jobs and prosperity and lifting millions out of
poverty. For us as a nation to achieve this ambition requires
the deep-rooted transformation of our economy that removes the
many barriers to growth and development.
Microeconomic reforms are at the heart of undertaking structural
change, increasing our own productivity and improving our
competitiveness in the rough world out there. Central to these
efforts are interventions that will systematically raise the
level of competition across industries and sectors; provide
efficient and cost-effective energy, transport, ICT and
logistics networks; encourage innovation and foster
entrepreneurship and enterprise development; and provide the
platform for closer regional economic integration.
Within government our reform efforts must provide value for
money and improve the efficiency with which we build social and
economic infrastructure as well as the delivery of high quality
public services particularly in health and education.
Minister Motsoaledi’s insistence, for example, on achieving
lower costs in our antiretroviral procurement and better
25 OCTOBER 2011
PAGE: 34 of 329
management of medicines and other supplies in our hospitals and
clinics, would represent savings of billions of rand over time.
Minister Motshekga’s cost-savings through centralised
publication and distribution of workbooks to schools is yet
another excellent example of Ministers taking the lead in this
regard. [Applause.] Minister Dlamini-Zuma has led an impressive
administrative turnaround in the Department of Home Affairs and
don’t exclude her, please. [Applause.] Everybody is happy now
that they get their passport on time.
I am also pleased to be able to report that the Jobs Fund,
launched on 7 June 2011, received a total of 2 651 applications
following its first call for proposals. This illustrates the
demand, innovation and desire across both the private and public
sectors to create jobs.
Applications were spread across each of the four funding
windows, enterprise development, support for work seekers,
infrastructure investment and building institutional capacity.
The investment committee has commenced the approval of projects
with a total grant allocation in the last couple of weeks of
R352 million, with the potential 115 000 projected jobs.
25 OCTOBER 2011
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Mr Speaker, we owe it to our young people to take these reforms
forward, both within government and in building our wider
economy.
This week the matric examinations begin for another cohort of
school-leavers. I know that the House will join me in wishing
them everything of the best. [Applause.]
In a few weeks’ time, Minister Nkoana-Mashabane will seek to
make progress in a most difficult, global co-ordination
challenge: how to invest in a clean-energy future and how to
share the costs of this transition. In wishing her well as chair
of what has now become known as COP17, or the 17th Conference of
the Parties, we can also take pride in the contribution of the
South African scientific community to understanding climate
change and its implications.
We also wish Minister Molewa well in leading South Africa’s
delegation to this conference. Let us applaud them, ladies and
gentlemen. [Applause.]
Speaker, allow me to express my appreciation to President Zuma
for his wise leadership and to Deputy President Motlanthe for
valued guidance. [Applause.] I am grateful for the support of
25 OCTOBER 2011
PAGE: 36 of 329
the Ministers’ Committee on the Budget, who share the
responsibility for what I am delivering to you. I also thank my
Cabinet colleagues, members of the Treasury Committee, Premiers
and provincial Finance MECs. They have also played a role during
a year of serious financial challenges.
I would also like to thank and commend Mr Mufamadi and Mr
Sogoni, Mr de Beer and Mr Chaane of the NCOP, who chair the
Standing Committee on Finance and the Select Committee on
Finance.
We are grateful to the Governor of the South African Reserve
Bank, Ms Gill Marcus, and her team at the Reserve Bank for their
steadfast management of monetary policy at a challenging time. I
know that the House will join me in expressing our admiration
for and thanks to the Auditor-General, Terence Nombembe, and his
staff for their rigorous scrutiny of public finances.
[Applause.]
Thanks are due to Mr Oupa Magashula and the staff of Sars for
taking what they call the “Eish out of taxation” and for their
valiant efforts to give us the revenue we need. Please, just
give us more - that is all! [Applause.]
25 OCTOBER 2011
PAGE: 37 of 329
May I also thank Deputy Minister Nene for his tireless support
and for sharing our burden. Of course, the National Treasury
team have once again delivered a set of budget statements during
a dynamic and uncertain time when innovation, dedication and
hard work - more so than usual - are required.
I would like to congratulate the new Director-General, Mr
Lungisa Fuzile, on his appointment five months ago, and thank
him for his leadership and tireless efforts in steering his
first MTBPS. [Applause.]
We live in challenging and uncertain times. There, are, however,
many opportunities for us to advance towards our goal of a
better life for all in South Africa. This is a time for united
action, for greater urgency and for an unconditional focus on
those programmes which will demonstrate to our people that we do
care and that we will change their lives for the better.
I hereby submit in this pack the Medium-Term Budget Policy
Statement, and I table the Adjusted Estimates of National
Expenditure, the Adjustments Appropriation Bill, 2011, the
Division of Revenue Amendment Bill, 2011, the Taxation Laws
Amendment Bill, and the Taxation Laws Second Amendment Bill for
consideration by Parliament.
25 OCTOBER 2011
PAGE: 38 of 329
The bottom line in this MTBPS, ladies and gentlemen, is that we
are living in tough times, but in South Africa, even at 3,1%
growth, we have a lot going for us. However, we will have to
make some serious changes in our own composition of expenditure
and in our own ability to invest more in infrastructure.
We will have to direct all of our energies with a much greater
urgency towards faster growth and faster job creation. I am sure
we can all do it together. Thank you very much. [Applause.]
The SPEAKER: Hon members, on your behalf, I wish to express a
collective thank you to the hon Minister of Finance for his
Medium-Term Budget Policy Statement. The Medium-Term Budget
Policy Statement will be referred to the Standing Committee on
Finance and the Standing Committee on Appropriations to
consider, in accordance with their respective mandates. The
revised Fiscal Framework will be referred to the Standing
Committee on Finance for consideration and report. The Taxation
Laws Amendment Bill will be referred to the Standing Committee
on Finance for consideration and report.
CONSIDERATION OF REPORT OF AD HOC COMMITTEE ON NOMINATIONS FOR
APPOINTMENT TO ELECTORAL COMMISSION
Mr S P HOLOMISA: Mr Speaker, Mr President, Mr Deputy President
and hon members, it gives me immense pleasure to present to you,
25 OCTOBER 2011
PAGE: 39 of 329
for your approval, the report of the ad hoc committee to
nominate persons for appointment by the President of the
Republic as electoral commissioners in terms of the Electoral
Commission Act, Act 51 of 1996.
This highly important task for the continued consolidation of
our democracy was made easy by the work done by a panel
consisting of the Chief Justice of South Africa, serving as
chairperson; the chairperson of the South African Human Rights
Commission; the acting chairperson of the Commission on Gender
Equality; and the Public Protector.
The panel conducted interviews with 17 of 69 candidates
nominated by interested South Africans and organisations, to
determine their suitability for appointment as electoral
commissioners. This made it unnecessary for the ad hoc committee
to conduct further interviews with the candidates which the panel
forwarded to Parliament for consideration.
The panel presented Parliament with the names of 10 candidates
from which Parliament had to select four persons who the
President could use to fill the vacant posts in the Electoral
Commission. The panel made it clear in its report that, in terms
of their qualifications, expertise and work experience, all 10
candidates were eminently suitable for appointment.
25 OCTOBER 2011
PAGE: 40 of 329
Speaker, I am happy to report that, after giving all parties the
opportunity to apply their minds to the question of who they
believed to be the most suitable candidates for recommendation
for appointment, the ad hoc committee came to a unanimous
decision.
On the basis of factors such as the need for the retention of
experience, expertise and continuity, as well as considerations
of racial and gender equity, we resolved to commend to this
House Advocate Pansy Tlakula, Mr Terry Ismael Tselane, Reverend
Bongani Blessings Finca and Ms Raenette Taljaard for appointment
by the President as electoral commissioners.
We are grateful to the Chief Justice and his fellow panelists
for the efficient and professional manner in which they did
their work. We are equally grateful to all 69 candidates who
made themselves available for national service. With such
committed patriots, our democracy is in safe hands.
We are also enormously thankful to the outgoing commissioners
for the sterling work they have done during their term of
office, earning themselves accolades the world over as
deliverers of impeccable electoral democracy to our land. We are
confident that their successors will follow in their footsteps
to continue making us the envy of other nations.
25 OCTOBER 2011
PAGE: 41 of 329
On behalf of the ad hoc committee, which made its determination
by working as a collective, I commend the report to you. Thank
you. [Applause.]
There was no debate.
Question put: That the nominations of Advocate P Tlakula, Mr T I
Tselane, Rev B B Finca and Ms R Taljaard for appointment as
electoral commissioners be approved.
AYES - 300: Adams, L H; Adams, P E; Ainslie, A R; Alberts, A
D; Bam-Mugwanya, V; Bapela, K O; Bhengu, F; Bhengu, P;
Bikani, F C; Bogopane-Zulu, H I; Booi, M S; Boshigo, D F;
Bosman, L L; Botha, T; Burgess, C V; Carrim, Y I; Carter, D ;
Cebekhulu, R N; Cele, M A ; Chikunga, L S; Chiloane, T D;
Chohan, F I ; Coetzee, T W; Cronin, J P; Cwele, S C; Dambuza,
B N; Daniels, P N; Davidson, I O; Davies, R H; De Freitas, M
S F; De Lange, J H; Diale, L N; Diemu, B C; Dlakude, D E;
Dlamini, B O; Dlamini-Zuma, N C; Dlodlo, A; Dreyer, A M; Du
Toit, N D; Dubazana, Z S; Dube, M C; Dudley, C; Duma, N M;
Duncan, P C; Dunjwa, M L; Ebrahim, E I; Farrow, S B; Figlan,
A M; Fihla, N B; Frolick, C T; Fubbs, J L; Gaehler, L B;
Gaum, A H; Gcwabaza, N E; Gelderblom, J P; George, M E;
Gigaba, K M N; Gina, N; Godi, N T; Gololo, C L; Goqwana, M B;
Hajaig, F; Hanekom, D A; Harris, T D; Hill-Lewis, G G;
Holomisa, S P; Huang, S-B; Jacobus, L; James, W G; Jeffery, J
25 OCTOBER 2011
PAGE: 42 of 329
H; Joemat-Pettersson, T M; Johnson, M; Kalyan, S V; Kenye, T
E; Kganare, D A; Kganyago, N M; Khoarai, L P; Khumalo, F E;
Kloppers-Lourens, J C; Kohler-Barnard, D; Koornhof, G W;
Kopane , S P; Kotsi , C M P; Kubayi, M T; Landers, L T;
Lebenya-Ntanzi, S P; Lee, T D; Lekgetho, G; Lekota, M G P;
Line, H; Lishivha, T E; Lorimer, J R B; Lotriet, A; Lovemore,
A T; Lucas, E J; Luyenge, Z; Maake, J J; Mabasa, X; Mabedla,
N R; Mabudafhasi, T R; Mabuza, M C; MacKenzie, G P D;
Madlala, N M; Madlopha, C Q; Mafolo, M V; Magagula, V V;
Magama, H T; Magau, K R; Magubane, E; Magwanishe, G; Makasi,
X C; Makhuba, H N; Makhubela-Mashele, L S; Makhubele, Z S;
Malale, M I; Malgas, H H; Maluleke, J M; Manana, M C;
Manganye, J; Mangena, M S; Manuel, T A; Mapisa-Nqakula, N N;
Marais, E J; Masango, S J; Maserumule, F T; Mashatile, S P;
Mashiane, L M; Mashigo, R M; Mashishi, A C; Masilo, J M;
Masutha, T M; Mathebe, D H; Mathebe, P M; Mathibela, N F;
Matlanyane, H F; Matshoba, J M; Maunye, M M; Mavunda, D W;
Max, L; Mazibuko, L D; Maziya, M; Mbalula, F A; Mbili, M E;
McIntosh, G B D; Mdaka, N M; Mdakane, M R; Meshoe, K R J;
Mgabadeli, H C; Michael, N W A; Mjobo, L N; Mkhulusi, N N P;
Mlambo, E M; Mlangeni, A; Mmusi, S G; Mnisi, N A; Mnqasela,
M; Mocumi, P A; Mohale, M C; Mohorosi, M M; Mokgalapa, S;
Mokoena, A D; Molebatsi, M A; Moloi-Moropa, J C; Moloto, K A;
Moni, C M; More, E; Morgan, G R; Moss, L N; Motau, S C;
Motlanthe, K P; Motsepe, R M; Motshekga, M S; Motsoaledi, P
A; Mphahlele, L M; Mpontshane, A M; Msimang, C T; Msweli, H
25 OCTOBER 2011
PAGE: 43 of 329
S; Mthethwa, E M; Mtshali, E; Mubu, K S; Mufamadi, T A;
Mushwana, F F; Nchabeleng, M E; Ndabandaba, L B G; Ndebele, J
S; Ndlanzi, A Z; Ndlovu, V B; Ndude, H N; Nel, A C; Nelson, W
J; Nene, N M; Newhoudt-Druchen, W S; Ngcengwane, N D; Ngcobo,
B T; Ngele, N J; Ngwenya, W; Ngwenya-Mabila, P C; Nhanha, M
A; Nhlengethwa, D G; Njikelana, S J; Njobe, M A A; Nkwinti, G
E; November, N T; Ntshiqela, P; Ntuli, B M; Ntuli, Z C;
Nxesi, T W; Nxumalo, M D ; Nyalungu, R E; Nyanda, M F;
Nyekemba, E; Nzimande, B E; Oliphant, M N; Ollis, I M;
Oosthuizen, G C; Paulse, S U; Peters, E D; Phaahla, M J;
Phaliso, M N; Pilusa-Mosoane, M E; Plaatjie, S K; Pule, D D;
Rabie, P J; Rabotapi, M W; Radebe, B A; Radebe, G S; Radebe,
J T; Ramatlhodi, N A; Ramodibe, D M; Ramokgopa, G ; Robinson,
D; Ross, D C; Rwexana, S P; Saal, G; Schafer, D A; Schmidt, H
C; Schneemann, G D; Segale-Diswai, M J; Selau, G J; Selfe, J;
September, C C; Sexwale, T M G; Shinn, M R; Sibanyoni, J B;
Sibhidla, N N; Sibiya, D; Singh, N; Sithole, K P; Sithole, S
C N; Skosana, J J; Skosana, M B; Smalle, J F; Smith, P F;
Smith, V G; Smuts, M; Snell, G T; Sogoni, E M; Sonto, M R;
Sosibo, J E; Sotyu, M M; Steenhuisen, J H; Steyn, A; Steyn, A
C; Stubbe, D; Suka, L; Sulliman, E M; Sunduza, T B; Surty, M
E; Swart, M; Swathe, M M; Thabethe, E; Thibedi, J D;
Thobejane, S G; Thomson, B; Tinto, B; Tlake, M F; Trollip, R
A P; Tseke, G K; Tsenoli, S L; Tshabalala, J; Tshwete, P;
Tsotetsi, D R; Turok, B; Twala, N M; Van Dalen, P; Van de
Linde, J J; Van der Merwe, S; Van der Westhuizen, A P; Van
25 OCTOBER 2011
PAGE: 44 of 329
Dyk, S M; Van Rooyen, D D; Van Schalkwyk, H C; van Wyk, A;
Waters, M; Wenger, M; Williams, A J; Williams-De Bruyn, S T;
Xaba, P P; Ximbi, D L; Zikalala, C N Z; Zulu, B Z.
Question agreed to.
Nominations accordingly approved in accordance with section
193(5)(b)(ii) of the Constitution, read with section 6(2)(c) of
the Electoral Commission Act, Act 51 of 1996.
NOTICES OF MOTION
Mr G J SELAU: Speaker, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the ANC:
That the House debates how to intensify initiatives to
address climate change at the local government level.
Mr A P VAN DER WESTHUIZEN: Speaker, I hereby give notice that on
the next sitting day of the House I shall move on behalf of the
DA:
That the House debates the high dropout rates of learners in
especially publicly funded training institutions and
initiatives and ways to curb this waste of young talent and
public money.
25 OCTOBER 2011
PAGE: 45 of 329
Ms D CARTER: Speaker, I hereby give notice that on the next
sitting day of the House I shall move on behalf of Cope:
That the House debates the alledged excessive spending by
Ministers on luxury hotel stays.
Tat X MABASA: Hi ku yimela ANC, ndzi susumeta leswaku eka
ntshamo lowu nga ta landzela:
Huvo yi va na njhekanjhekisano hi matshalatshala lama tiyisisaka
leswaku vamanana va le makaya va nyikiwa matimba ya swa ikhonomi
hi ku hlengeletiwa ka switirhisiwa na ku nyikiwa vuswikoti.
(Translation of Xitsonga notice of motion follows.)
[Mr X MABASA: I hereby give notice that on the next sitting day
of the House I shall move on behalf of the ANC:
That
the
House
debates
means
to
strengthen
the
economic
empowerment of rural women through mobilisation of resources
and capacity building.]
Mr K S MUBU: Speaker, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the DA:
That the House debates the circumstances around His Holiness,
Dalai Lama not receiving a visa to travel to South Africa,
25 OCTOBER 2011
PAGE: 46 of 329
and comes up with recommendations to assure that this
situation is not repeated in future.
Ms M A MOLEBATSI: Speaker, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the ANC:
That the House debates how to combat an increase in the
trafficking of persons, especially women and children.
Mr I M OLLIS: Chairperson, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the DA:
That the House debates the recent performance of the National
Training Layoff Scheme and recommendations to ensure that a
greater number of workers who lose their jobs can access new
employment opportunities.
Mr S MOKGALAPA: Chairperson, I hereby give notice that on the
next sitting day of the House I shall move on behalf of the DA:
That the House debates government’s foreign policy response
to the ongoing civil conflict in Syria and recommendations to
ensure that our response is based on the promotion of
democracy and human rights.
25 OCTOBER 2011
PAGE: 47 of 329
Ms W NGWENYA: Chairperson, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the ANC:
That the House debates ways to fast-track the minimisation of
overcrowding in our correctional centres.
Mr N D Du Toit: Chairperson, I hereby give notice that on the
next sitting day of the House I shall move on behalf of the DA:
That the House debates the contribution of sport and
recreational angling to the economy and recommendations to
ensure that its job creating possibilities are further
enhanced.
Ms M C DUBE: Chairperson, I hereby give notice that on the next
sitting day of the House I shall move on behalf of the ANC:
That the House debates means to combat childhood obesity in
our communities..
CONGRATULATIONS TO MR COUNEGLIN ON RECEIVING LIBERAL
INTERNATIONAL PRIZE FOR FREEDOM FOR 2012
(Draft Resolution)
25 OCTOBER 2011
PAGE: 48 of 329
The CHIEF WHIP OF THE OPPOSITION: Mr Chairman, I move without
notice:
That the House —
(1)
congratulates Mr Colin Eglin on receiving the Liberal
International
Prize
for
Freedom
for
2012
which
he
received over the weekend of 15 and 16 October 2011;
(2)
notes that the last South African to win this prize was
Mrs Helen Suzman in 2002;
(3)
acknowledges that this award is handed to the person who
is seen to make an outstanding contribution to human
rights and political freedoms;
(4)
further acknowledges Mr Eglin as a founding member of
the Progressive Party, the predecessor of the Democratic
Alliance, and for his long service of 45 years in the
struggle against apartheid;
(5)
recognises Mr Eglin’s contribution to the realisation of
democracy
in
South
Africa,
having
been
described
by
Mandela as “one of the architects of our democracy”; and
(6)
wishes Mr Eglin well in the future.
25 OCTOBER 2011
PAGE: 49 of 329
Agreed to.
RETIREMENT OF DR BRIGALIA BAM AS CHAIRPERSON OF ELECTORAL
COMMISSION
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: House Chairperson and hon
Deputy President, I move without notice:
That the House —
(1)
notes
that
on
19
October
2011,
chairperson
of
the
Electoral
the
tenure
Commission,
Dr
of
the
Brigalia
Bam, and that of deputy chairperson, Thoko Mpumlwana,
and commissioner Fanie van der Merwe, came to an end;
(2)
further notes that Dr Bam served as the Independent
Electoral Commission chairperson since 1999;
(3)
commends
her,
the
deputy
chairperson
and
the
commissioner for their valuable contribution and sound
leadership which ensured that the electoral process in
our country was well managed; and
(4)
wishes them much success in their future endeavours.
25 OCTOBER 2011
PAGE: 50 of 329
Agreed to.
CELEBRATION OF NATIONAL MEDIA FREEDOM DAY
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Mr Chairman, I move without
notice:
That the House—
(1)
notes that on 19 October 2011, South Africa celebrated
National Media Freedom Day;
(2)
further notes that the day is commonly known as Black
Wednesday
after
the
apartheid
government
and
its
security forces detained scores of Black Consciousness
activists and journalists in the early hours of the
morning on 19 October 1977, under the draconian section
10 of the Internal Security Act;
(3)
recalls
that
the
apartheid
regime
banned
18
organisations committed to freedom and further banned
three publications, The World, Weekend World and Pro
Veritate;
25 OCTOBER 2011
(4)
PAGE: 51 of 329
acknowledges the contribution of the media during the
struggle for press freedom in exposing the atrocities
committed by the apartheid regime;
(5)
further acknowledges the positive contribution that the
free media plays in an open and transparent democracy;
(6)
recognises the role of the media in holding all spheres
of government to account in today’s South Africa; and
(7)
commends
the
media
for
their
contribution
to
the
advancement of free speech and the values of a free and
open democracy.
Agreed to.
PASSING AWAY OF PROFESSOR WANGARI MAATHAI
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: House Chairperson and hon
Deputy President, I move without notice:
That the House —
25 OCTOBER 2011
(1)
PAGE: 52 of 329
notes that on 25 September 2011, the 2004 Nobel Peace
Prize Laureate, Prof Wangari Maathai, passed away after
a prolonged and brave struggle with cancer;
(2)
further notes that Prof Wangari Maathai’s work with the
Green Belt Movement in Kenya and as an activist for
civil and women’s rights in Kenya and beyond, received
worthy recognition internationally when she was awarded
the Nobel Peace Prize in 2004;
(3)
acknowledges that Prof Maathai has left a lasting legacy
in greater awareness and her work in protecting our
environment and the world; and
(4)
extends its heartfelt sympathies to her family and the
Kenyan people.
Agreed to.
NATIONAL DOWN SYNDROME DAY OBSERVED ON 20 OCTOBER 2011
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Mr Chairman, I move without
notice:
25 OCTOBER 2011
PAGE: 53 of 329
That the House —
(1)
notes that 20 October 2011 was National Down Syndrome
Day;
(2)
further notes that one in 650 children are born with
Down Syndrome each year;
(3)
acknowledges that individuals living with Down Syndrome
are still discriminated against and that many myths with
respect
to
the
largest
single
cause
of
intellectual
disability still exists; and
(4)
urges South African citizens to raise awareness in order
to dispel the myths and promote the abilities of people
with Down Syndrome.
Agreed to.
INTERNATIONAL RUGBY BOARD SEVENS PLAYER OF THE YEAR
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Mr Chairman, I move without
notice:
25 OCTOBER 2011
PAGE: 54 of 329
That the House —
(1)
notes that South African rugby player, Cecil Afrika, has
been named the 2011 International Rugby Board Sevens
Player of the Year;
(2)
further notes that Afrika, the first South African to
win
this
prestigious
scintillating
display
award,
during
the
did
so
2010-11
with
HSBC
his
Sevens
Rugby season, in which his electric pace and vision made
him a fearful opponent and try-scoring machine; and
(3)
congratulates
Afrika
and
wishes
him
well
in
his
preparation for the upcoming Sevens season.
Agreed to.
RETURN OF THE SPRINGBOKS FROM IRB WORLD CUP IN NEW ZEALAND
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Mr Chairperson, I move without
notice:
That the House —
25 OCTOBER 2011
(1)
notes
PAGE: 55 of 329
that
the
Springbok
squad
together
with
staff
returned from New Zealand on 10 October 2011, after
their loss to Australia in the quarterfinals of the IRB
Rugby World Cup;
(2)
further notes that they played a determined game against
Australia in Wellington on 9 October 2011, although they
lost 9-11;
(3)
recognises that the members of the squad showed their
abilities and experience and put up a strong challenge
for the title;
(4)
recalls
that
en
route
to
the
quarterfinals,
the
Springboks beat Wales, Fiji, Namibia and Samoa;
(5)
thanks the players and the staff for making South Africa
proud; and
(6)
calls upon all South Africans to welcome the Boks home
as heroes.
Agreed to.
WORK DONE BY AUDITOR-GENERAL
25 OCTOBER 2011
PAGE: 56 of 329
(Member’s Statement)
Mr Z C MAKHUBELE (ANC): Chairperson, the ANC would like to
acknowledge
and
show
appreciation
for
the
work
done
by
the
Office of the Auditor-General of South Africa, as evidenced by
their 2010-11 financial audit year.
Like other Chapter 9 institutions, the Auditor-General’s role is
very much crucial in strengthening our democracy and ensuring
good governance.
It is on the basis of reports such as this that Parliament is
able to exercise effective oversight over the executive. We
would like to congratulate those departments and entities that
obtained clean audits, in particular the Department of Home
Affairs, which managed to get an unqualified audit opinion for
the first time since its inception. [Applause.]
We
take
the
view
that
clean
financial
audit
reports
are
meaningful if they translate into service delivery that has a
positive impact on the lives of our people. Simultaneously, we
also encourage those who moved from adverse to qualified audit
opinions to work hard towards the achievement of clean audit
opinions and performance.
25 OCTOBER 2011
PAGE: 57 of 329
We urge Ministers, Premiers and MECs to take drastic measures in
dealing
with
departments
and
entities
that
obtained
adverse
audit opinions. Our people deserve better services and we are
becoming impatient with disclaimers, 17 years into democracy.
Both national and provincial departments must take heed of the
corrective measures suggested by the Auditor-General to avoid a
recurrence of irregular practices. I thank you. [Applause.]
ANNOUNCEMENT OF DISMISSAL OF MINISTERS
(Member’s Statement)
The LEADER OF THE OPPOSITION: Mr TROLLIP (DA): Chairperson,
President Jacob Zuma’s announcement yesterday that the Minister
of Public Works, Gwen Mahlangu-Nkabinde and Minister of Cooperative Governance and Traditional Affairs, Sicelo Shiceka had
been dismissed, is an important victory for accountability.
Minister Mahlangu-Nkabinde and Minister Shiceka abused their
positions, and it is right that they have been removed from
office.
We also trust that the suspended National Police Commissioner,
Bheki Cele, will be fired too, should the board of inquiry
appointed to investigate his actions in the police lease deal
25 OCTOBER 2011
PAGE: 58 of 329
scandal corroborate the findings of the Public Protector. In
taking decisive action, the President has reaffirmed his
government’s commitment to the role of the Public Protector and
other Chapter 9 institutions.
This must be applauded. These institutions play an important
role in promoting and protecting the strength of our democracy.
The President himself has described his administration as
failing to deliver due to a crisis of accountability. For us to
tackle the challenges facing our country and to deliver
opportunities for all, those at the highest levels of government
must take full responsibility for their actions and meet the
highest standards of ethical conduct. Thank you. [Applause.]
SHOCKING NUMBERS OF MALNOURISHED CHILDREN
(Member’s Statement)
Ms D CARTER (Cope): Chairperson, according to the recent written
reply by the Minister of Social Development, 8% of children
under the age of five years in South Africa, are severely
malnourished. Of these, 13% are found in KwaZulu-Natal and
another 10% in the Northern Cape.
25 OCTOBER 2011
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A quarter of such children live in these two provinces.
According to a report released by the University of Cape Town’s
Children’s Institute in 2010-11, as many as 6,8 million children
were living on households without on-site access to clean
drinking water.
In 2008, the Child Gauge Report showed that almost 3 million of
the country’s 18,6 million children went to bed hungry. In other
words, one out of every six children went to bed hungry. An
additional report by the Food Bank shows that one out of every
five South Africans does not know where the next plate of food
will come from; that is 20%.
This is a shocking state of affairs, made worse by the fact that
little has been done to find the solution to the problem.
Consequently, millions of children are dying because of
malnutrition. This is utterly disgraceful.
How can a country blessed with such abundance and wealth allow
its future to be compromised in this callous manner? What an
indictment this is on the government which, this year alone, has
wasted as much as R30 billion on fruitless and wasteful
expenditure, as Willie Hofmeyer has pointed out.
25 OCTOBER 2011
PAGE: 60 of 329
The government has ridden to high office on the backs of the
people, promising them a better life. [Time expired.] Thank you.
[Applause.]
CONGRATULATIONS TO SASCO ON VICTORY IN SRC ELECTIONS
(Member’s Statement)
Ms T B SUNDUZA (ANC): The ANC welcomes the SA Student Congress,
Sasco’s, win in the recent student representative council
elections at the University of Cape Town, UCT. The ANC-aligned
Sasco trumped the DA Student Organisation, Daso, winning seven
seats to three seats.
Since 1998, the ANC-aligned candidates have dominated the
student representative council at UCT, but were replaced by Daso
candidates in 2008 to 2009. In the past two years, a Daso member
was elected as SRC president until the recent victory by Sasco.
So we have thrashed the DA.
This win can be attributed to the hard work done by the team in
contesting the elections and shows that this hard work has been
rewarded. We are encouraged that the youth participate in such
forums as these provide valuable lessons in development and
engagement, which will, without a doubt, stand them in good
stead when they go out into the working world.
25 OCTOBER 2011
PAGE: 61 of 329
We congratulate Sasco, the victors, and wish them well in their
future advancement in thrashing the DA. Thank you. [Laughter.]
CONCERN OVER RACIAL DIVISINESS
(Member’s Statement)
Mr N SINGH (IFP): Chairperson, the recent comments made by Judge
Isaac Madondo at the hearing of the new Judge President of
KwaZulu-Natal are more worrisome in that they don’t only
indicate that racism is alive and well within the upper echelons
of our Justice department, but also that such comments are
becoming representative of a wider national consensus in respect
of race relations in our country.
We can quite comfortably surmise that race relations in South
Africa are currently at one of the lowest ebbs since the dawn of
our new democracy; and that the ugly face of racism is now, once
again, coming out of the closet and is being spread by a small
group of self-serving individuals. These individuals, including
Mr Julius Malema, have nothing save their own personal ambitions
and agendas as priorities.
Chairperson, the spreading of such racial divisiveness does not
augur well for the country and must not be tolerated or allowed
25 OCTOBER 2011
PAGE: 62 of 329
to proliferate within government or, for that matter, within any
political party or public entity.
We are at an impasse, or Rubicon, of racial divisiveness that
must be crossed in order for our country to move successfully
forward. Our failure in this regard will be catastrophic. Thank
you. [Applause.]
CALL FOR COMMITMENT TO ADDRESSING WASTEFUL EXPENDITURE
(Member’s Statement)
Mrs S U PAULSE (ID): It is crucial that government be committed
to addressing wasteful expenditure and that it takes action
against Ministers who are found guilty of the reckless spending
of state funds.
The latest Auditor-General’s report on national audit outcomes
for the 2010-11 financial year shows an obscene amount of R427,4
million in wasteful expenditure compared to the R26,6 million of
the previous financial year.
South Africa is currently experiencing difficult economic times
and millions of our people live in poverty and do not have
access to proper housing. In the light of this, Minister Tina
25 OCTOBER 2011
PAGE: 63 of 329
Joemat-Pettersson’s expenditure of R1,6 million on luxury hotel
accommodation in a 30-month period cannot be justified.
It is equally disturbing that more than R400 million has been
spent on refurbishing the President’s offices and official homes
in Cape Town and Pretoria. This is a slap in the face for
ordinary South Africans in the light of the fact that a standard
RDP house costs the state about R70 000 to build.
The firing of the former Minister Sicelo Shiceka is a good sign
and a step in the right direction. It should serve as a strict
warning to other Ministers ... [Time expired.]
CONCERN ABOUT VIOLENCE AGAINST CHILDREN
(Member’s Statement)
Mrs S T WILLIAMS-DE BRUYN (ANC): House Chairperson, hon Deputy
President and hon members, the ANC is deeply concerned about the
ongoing violence and brutal attacks against our children.
An HON MEMBER: Stand closer to the microphone, it won’t bite
you!
25 OCTOBER 2011
PAGE: 64 of 329
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, give the
member an opportunity to make a statement, you have not been
recognised. You may continue, hon member.
Mrs S T WILLIAMS-DE BRUYN (ANC): Not a week passes without some
horrific act being committed against defenceless children, who,
instead of being protected and nurtured, are violated. The
patterns of violence show that it cuts across boundaries of
geography, race, class, religion and culture.
It is occurring in our homes, schools and streets; perpetrators
include parents, family members, teachers and guardians.
Children are being preyed upon by adults who know that children
are easy targets and are vulnerable. Our laws, as progressive as
they may be, are not enough to ensure that our children are
protected.
Reactionary measures alone cannot prevent the abuse of children;
there needs to be extra emphasis on prevention and protection.
The war being waged against our children in which they are
abducted, raped, abused and murdered cannot be the concern
primarily of the police, the courts or the social services.
Communities must rally together to work in support of the police
and social services to create early warning systems.
25 OCTOBER 2011
PAGE: 65 of 329
Good policing and investigative services are one aspect, but coordination of police task teams can deliver even greater
results. Child abuse works against our attempts to build social
cohesion within our communities. Catching serial rapists who
target children and teenagers must be made a priority. Violence
against our children is never justifiable and must be treated as
a national emergency. Thank you. [Applause.]
CONGRATULATIONS TO PUBLIC PROTECTOR
(Member’s Statement)
Rev K R J MESHOE (ACDP): Chairperson, the ACDP wishes to
congratulate the principled, firm and diligent Public Protector
whom our country is privileged to have in the person of Adv
Thuli Madonsela.
It was because of her report, after investigating the conduct of
former Public Works Minister, Ms Gwen Mahlangu-Nkabinde and
former Co-operative Governance and Traditional Affairs Minister,
Sicelo Shiceka, that the President had to fire the two
Ministers.
What the President did not tell the nation however, is whether
Mr Shiceka will be required to pay back at least R335 000 of
public money that he wasted by flying first class with his
25 OCTOBER 2011
PAGE: 66 of 329
personal assistant to Switzerland, and an additional R32 000 he
used unlawfully to hire a chauffeur-driven limousine allegedly
to visit his girlfriend in prison. This totalled R367 000 and
the ACDP would like to see the President give an order that Mr
Shiceka pay back to the state the money that he wasted on this
unauthorised expenditure.
The ACDP also welcomes the suspension of the National Police
Commissioner for maladministration and suspected unlawful
conduct in property rental deals.
Although the President’s appointment of Major-General Nhlanhla
Mkhwanazi to act in General Cele’s position is questioned by
many, particularly because he is three ranks below General,
Major-General Mkhwanazi’s educational qualifications and major
operations that he has overseen are very impressive. Besides the
fact that ... [Time expired.]
INTERVENTION IN GAS INDUSTRY
(Member’s Statement)
Mr S C MOTAU (DA): Chair, the DA calls on the Minister of Energy
to intervene urgently to resolve the crisis in the gas industry
caused by the prolonged severe shortage of liquefied petroleum
gas, LPG, that has been plaguing the industry for months.
25 OCTOBER 2011
PAGE: 67 of 329
I have, on several occasions, raised the matter during the
portfolio committee meetings with the Department of Energy. I
have also spoken directly with directors of the department about
the matter. The response was a feeble media statement by the
department last Wednesday. Meanwhile, the situation is getting
worse and frustration among traders and consumers is also
getting worse.
In desperation, Mr Jean-Pierre Dave of Oil Heat Services (Pty)
Limited in Randburg has written to President Zuma for help. In
his letter to the President he says:
The negative impact of not being able to supply liquefied
petroleum gas has dire consequences for all companies that
are dependent on LPG.
He concludes:
Mr President, South Africa’s economy has lost billions of
rand due to the shortage of LPG so far this year.
Ms Michelle Concar of Gas Appliance Centre in Claremont also
expressed desperation when she said:
I write this with a very heavy heart, as I plan to retrench
people. How long before we close our doors?
25 OCTOBER 2011
PAGE: 68 of 329
The shortage of LPG in South Africa is untenable and must be
resolved. In a country that is desperate to create jobs, we
cannot afford to lose any jobs due to the lack of a commodity
that should be readily available. Thank you. [Applause.]
SOCIAL DEVELOPMENT MONTH
(Member’s Statement)
Mrs T E KENYE (ANC): Chairperson, the month of October has been
designated Social Development Month by the Department of Social
Development, during which the department aims to inform the
citizens and residents of our country of the services that they
are entitled to from the department and the whole of the ANC-led
government.
The theme of the month-long programme is, Working Together to
Build Caring and Sustainable Communities for All.
The department believes that by engaging the communities and
understanding the problems they are experiencing, practical
plans can be developed to improve living conditions and build
better communities. Through the campaign of Taking the
Department of Social Development to Communities, the department
is working towards unlocking service delivery blockages and
optimising development.
25 OCTOBER 2011
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In line with the ANC’s commitment to eradicate poverty and
improve the quality of life of all our people, the department
will intensify its efforts to ensure that all children, who
qualify for the child support grant, especially in rural areas,
will receive this benefit without any further delays.
Also, the department has sought to establish a partnership with
the Congress of Traditional Leaders to pursue development in
rural areas and develop early childhood development programmes
in rural areas. As we work towards a goal of poverty eradication
as part of the Millennium Development Goals, it is hoped that
all sectors of our society, business, faith-based organisations
and nongovernmental organisations will work with government to
achieve a better life for all. I thank you.
DIWALI, HINDU FESTIVAL OF LIGHTS
(Member’s Statement)
Prof C T MSIMANG (IFP): Chair, Diwali, the festival of lights,
is celebrated by millions all over the world on 26 October. This
marks the Hindu New Year, the beginning of the new lunar year
according to the lunar calendar, with the festival being
significant to Hindus, Buddhists, Sikhs and Jains all over the
world.
25 OCTOBER 2011
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The festival is celebrated by the lighting of flares, which
symbolises the victory of light spreading through the reign of
darkness. Light is hope, goodness over evil, a time for prayer,
happiness, prosperity and sharing. It is a festival filled with
spirituality and religious activities, spread over five days.
The main day is 26 October, the third day of Diwali.
We would like to wish all those celebrating a joyous Diwali and
may all the lights which are lit lift any darkness remaining in
their lives. In the spirit of this festival, we, as the IFP,
trust that the majority of South Africans who still live in
squalid conditions and are socially and economically deprived
through corrupt actions, nepotism and inefficiencies begin to
receive the full benefits that they are entitled to. I thank
you.
CALL FOR INVESTIGATION INTO PURCHASE OF FIFA WORLD CUP TICKETS
(Member’s Statement)
Mr D A KGANARE (Cope): Chairperson, it is appalling that more
than a year after the Minister of Finance had promised to
investigate and report on the purchase of R130 million of Fifa
tickets across various state entities, no announcement has yet
been forthcoming.
25 OCTOBER 2011
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Promises on investigating fruitless expenditure should never be
made in vain. In a country where millions are out of jobs and
poverty is deepening it is unthinkable for those who are in
government to spend taxpayers’ money on self-indulgent pursuits.
Nelson Mandela would never have tolerated such a state of
affairs. The Minister of Finance announced in 2010 that he was
going to meet with the Auditor-General and chairperson of
Parliament’s watchdog, the Public Accounts Committee, to discuss
this issue. Although we are now coming to the end of 2011, the
Minister has swept the matter under the carpet.
Hard-earned taxpayers’ money has been squandered by the
political elite with a taste for the high life. Of particular
concern to the nation is the purchase of Fifa tickets. In the
Free State a department spent R4 million which cannot even be
accounted for.
This situation warrants an investigation by the Special
Investigating Unit and the nation is waiting to see when this is
going to happen. Cope demands that a report on expenditure on
Fifa tickets by government departments and entities be tabled in
Parliament without further ado.
Those involved in serious graft must be brought to justice and
taxpayers’ money must be fully recovered. This issue has been on
25 OCTOBER 2011
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the back burner for too long and it is time for accountability
to begin.
SOUTH AFRICA’S RANKINGS ON IBRAHIM INDEX
(Member’s Statement)
Ms C C SEPTEMBER (ANC): House Chairperson, the ANC welcomes
South Africa’s ranking of fith in the 2011 Ibrahim Index of
African Governance launched on 10 October 2011, by the Mo
Ibrahim Foundation.
Established in 2007, the Ibrahim Index is the most comprehensive
collection of quantitative data, providing an annual assessment
of governance performance in every African country. South Africa
consistently ranks amongst the top five for governance quality.
South Africa scored 71 out of 100 for governance quality and is
ranked fifth out of 53 countries.
At subcategory level, South Africa’s highest rank is first in
public management; second in gender; third for participation and
human rights; fourth for welfare, rule of law and business
environment; and fifth for accountability, national security
participation and education.
25 OCTOBER 2011
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Our lowest ranking is in personal safety, where we ranked a
lowly 44. This category examines violent crime, safety of
person, human trafficking and social unrest. This is cause for
great concern and should serve to further strengthen and
intensify our fight against crime and improvement in our law
enforcement agencies.
We can take pride in the areas in which we have performed
relatively well, but we need to ensure that we work towards
excelling in all areas. I thank you. [Applause.]
CONGRATULATIONS TO DA STUDENT ORGANISATION AT NELSON MANDELA
METROPOLITAN UNIVERSITY
(Member’s Statement)
Ms L D MAZIBUKO (DA): Mr Chairperson, the DA congratulates the
DA Students Organisation, Daso, branch at the Nelson Mandela
Metro University, for winning the university’s students’
representative council, SRC, with a full and comfortable
majority.
Daso won 10 of the 18 seats on the student s’ council. Yussuf
Cassim, Sifiso Nkosi, Thulani Nkuntse, Sam Beynon and Mothusi
Mbole will all be filling the key executive portfolio positions
25 OCTOBER 2011
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including those of president, deputy president, secretary,
deputy secretary and treasurer.
Led by the branch chairperson, Yussuf Cassim, Daso Nelson
Mandela Metro University has experienced exponential growth
since gaining four seats on last year’s SRC, all in over a year
of existence. This win in the heart of the ANC’s home province,
points to a significant and continuing shift in campus politics
in which students have grown tired of Sasco’s bully politics and
are now choosing Daso, which has become synonymous with clean
and efficient SRC government.
Although student politics change dramatically from year to year,
the exponential growth of Daso on a number of key campuses
around South Africa in a few short years, points to a
significant consolidation of support from young South Africans.
I thank you. [Applause.]
GREEN HOMES IN FREE STATE
(Member’s Statement)
Ms P BHENGU (ANC): Chairperson, the farming community of
Diyatalawa outside Harrismith in the Free State, can now look
forward to a brighter future after living in mud houses with no
electricity and running water.
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This is because the ANC Free State provincial government and
Department of Rural Development and Land Reform have recently
introduced a housing scheme where 74 square-metre houses are
fitted with solar energy.
This initiative assists those who are unable to afford
electricity costs and replaces the dilapidated mud structures,
which were previously occupied by the residents in the area.
The ANC-led government has prioritised rural development, mainly
because it understands that the growth of the rural economy is
crucial to curbing poverty and advancing development. The area
of Diyatalawa was identified as one of the pilot sites in a
province for the government’s nationwide Comprehensive Rural
Development Programme, CRDP.
The ANC views the recently introduced housing scheme in the
Diyatalawa area as a resounding success and believes that the
project can be emulated in other rural areas. Thank you.
INTERVENTION IN GAS INDUSTRY
(Minister’s Response)
The MINISTER OF ENERGY: Chairperson, I would like to take this
opportunity to thank the hon Motau for the statement relating to
25 OCTOBER 2011
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the availability of liquefied petroleum gas, LPG. We know that,
as we speak, we are actually going through dire straits in
relation to this particular energy resource.
We are busy engaging with industry and the Department of Public
Enterprises about Transnet’s role, in order to make sure that we
can unlock the available options.
I want to indicate to the House that we do have challenges in
relation to the Petroleum Oil and Gas Corporation of the
Republic of South Africa, PetroSA, as well as the Engen
Refinery, Enref, still being offline due to the unplanned
shutdown they experienced. However, Chevron and Shell SA
Refining and BP Southern Africa, Sapref, are back on stream.
I will be engaging with the refineries in order to reduce petrol
production and increase LPG production. This has a bearing on
motorists, as it means that we must reduce fuel consumption and
save fuel. It means that South Africans need to start learning
to use lift clubs and public transport.
I also want to thank the Minister of Transport for the
announcement about reducing speed limits, because it will
contribute towards saving fuel in the country. It is easy for us
to import petrol and therefore we are calling on the industry
25 OCTOBER 2011
PAGE: 77 of 329
role-players in the refineries to use the available feedstock to
produce LPG.
I am sure that hon Motau knows that we are working on a 20-year
infrastructure plan along the same lines as that used to develop
the Integrated Resource Plan, IRP, for electricity. We need a
long-term plan for available liquid fuels infrastructure, not
only for LPG, but for all the necessary energy infrastructure,
including diesel, paraffin, petrol and others.
I want to say that we understand the challenges we are
undergoing right now. The Ministers of Trade and Industry and of
Public Enterprises and I will address our short-term challenges.
I want to indicate that the only option that can bring LPG is to
reduce the production of petrol.
We don’t want to hear members again raising questions about
petrol shortages tomorrow. At least we have options in the
availability of public transport and bicycles. Thank you.
[Applause.]
SOCIAL DEVELOPMENT MONTH
(Minister’s Response)
25 OCTOBER 2011
PAGE: 78 of 329
The MINISTER OF SOCIAL DEVELOPMENT: Chairperson, I would like to
thank the hon Kenye and say that, during Welfare Month, we have
been to four rural areas where there is poverty, but I think we
should also tell good stories about these areas.
In Msinga, we visited the Ngubane family, where the eldest is 20
years old. They lost their mother, who was a single parent, in
2007. They receive a foster care grant. Zandile, who is the
eldest of four, is saving R200 per child for her siblings’
school education. She attended school up to Standard 3, but she
has the capacity to think about her siblings. I think we should
talk about those things.
The second issue relates to malnutrition. We are working
together with the Department of Health to deal with the issue of
malnutrition. The first area we visited was Mookgopong, and what
we found there is that people do not have jobs, but they also do
not know how to use their grants properly. We are going to be
there for six months to try and help them to form co-operatives,
and to work so that they can survive.
What is also important is that a report has just been released
that shows that the farming areas in the Western Cape are among
the areas that have the problem of children not earning grants.
We found out that farmers firstly do not allow their workers to
go and apply for identity documents, and secondly, do not allow
25 OCTOBER 2011
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them to apply for the grant because then we would find out how
much wages they pay their workers. Thank you very much.
[Applause.]
CONCERN ABOUT VIOLENCE AGAINST CHILDREN
(Minister’s Response)
The DEPUTY MINISTER OF POLICE: Thank you Chairperson. Hon Sophia
Williams-de Bruyn from the ANC, the issue of the protection of
children is indeed not the police’s responsibility alone, but
that of all of us. In addressing this malady, the Department of
Police re-established the Family Violence, Child Protection and
Sexual Offences Unit in all nine provinces towards the end of
2010.
People with special skills, like psychologists, social workers,
etc, have been recruited and employed by the department to
attend to abused children. People with special investigation
skills also form part of the recruits. We will make sure that
these perpetrators, regardless of who those people are, will be
arrested, and they will be convicted.
The House adjourned at 16:01.
________
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ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
WEDNESDAY, 21 SEPTEMBER 2011
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Independent System and Market Operator Bill, 2011, submitted by the Minister
of Energy.
Referred to the Portfolio Committee on Energy and the Select Committee on
Economic Development.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Human Settlements
25 OCTOBER 2011
(a)
PAGE: 81 of 329
Report and Financial Statements of Vote 30 – Department of Human Settlements for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 30 for 2010-2011 [RP 93-2011].
2.
The Minister of Correctional Services
(a)
Report and Financial Statements of Vote 20 – Department of Correctional Services
for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 20 for 2010-2011 [RP 193-2011].
National Assembly
1.
The Speaker
(a)
Report and Financial Statements of the Public Service Commission (PSC) for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 204-2011].
COMMITTEE REPORTS
National Assembly and National Council of Provinces
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National Assembly
1.
Report of the Portfolio Committee on Defence and Military Veterans on the Military
Ombudsman Bill [B9– 2011] (National Assembly – sec 75), dated 21 September 2011:
The Portfolio Committee on Defence and Military Veterans, having considered the
subject of the Military Ombudsman Bill [B9– 2011] (National Assembly – sec 75),
referred to it, and classified by the Joint Tagging Mechanism as a section 75 Bill,
reports the Bill with amendments [B9A- 2011]
The Democratic Alliance objected to Clause 4 and Clause 6 of the Bill.
Report to be considered.
FRIDAY, 23 SEPTEMBER 2011
TABLINGS
25 OCTOBER 2011
PAGE: 83 of 329
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a) Annual Report of the Judicial Service Commission for the 18 months ending 31
December 2010.
2.
The Minister of Energy
(a)
Report and Financial Statements of the Central Energy Fund (Proprietary) Limited
Group of Companies (CEF) for 2010-2011, including the Report of the AuditorGeneral and the Independent Auditors on the Financial Statements and Performance
Information of the Central Energy Fund (Proprietary) Limited Group of Companies
for 2010-2011 [RP 95-2011].
(b)
Annual Financial Statements of the Central Energy Fund (Proprietary) Limited
Group of Companies (CEF) for 2010-2011, including the Report of the AuditorGeneral and the Independent Auditors on the Financial Statements and Performance
Information of the Central Energy Fund (Proprietary) Limited Group of Companies
for 2010-2011 [RP 95-2011] (Volumes 1 and 2).
(c)
Report and Financial Statements of the National Energy Regulator of South Africa
(NERSA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 198-2011].
25 OCTOBER 2011
(d)
PAGE: 84 of 329
Report and Financial Statements of the National Nuclear Regulator for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
(e)
Report and Financial Statements of the Electricity Distribution Industrial Holdings
(Pty) Ltd (EDIH) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2009-2010 [RP 218-2011].
(f) Report and Financial Statements of the South African Nuclear Energy Corporation
Limited (NECSA) for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011 [RP 88-2011].
3.
The Minister for the Public Service and Administration
(a)
Report and Financial Statements of Public Administration Leadership and
Management Academy (Palama) for 2010-2011, including the Report of the
Auditor-General on the Financial Statements and Performance Information for
2010-2011 [RP 182-2011].
4.
The Minister of Transport
(a) Reports and Financial Statements of the Ports Regulator of South Africa for 20102011, including the Reports of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 254-2011].
25 OCTOBER 2011
5.
PAGE: 85 of 329
The Minister of Rural Development and Land Reform
(a)
Report and Financial Statements of the Department of Rural Development and Land
Reform for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011.
6.
The Minister of Public Enterprises
(a)
Report and Financial Statements of the South African Airways (Pty) (Ltd) for 20102011, including the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2010-2011.
(b)
Report and Financial Statements of the Broadband Infraco (Pty) Limited for 20102011, including the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2010-2011.
(c) Report and Financial Statements of the Alexkor Limited for 2010-2011, including the
Report of the Independent Auditors on the Financial Statements and Performance
Information for 2010-2011.
MONDAY, 26 SEPTEMBER 2011
TABLINGS
25 OCTOBER 2011
PAGE: 86 of 329
National Assembly and National Council of Provinces
1.
The Minister of Trade and Industry
(a)
Report and Financial Statements of Vote 35 – Department of Trade and Industry for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 35 for 2010-2011 [RP 254-2011].
2.
The Minister for the Public Service and Administration
(a)
Report and Financial Statements of the State Information Technology Agency (Pty)
Ltd (SITA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011[RP 72-2011].
TUESDAY, 27 SEPTEMBER 2011
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Report and Financial Statements of the Office of the Pension Funds Adjudicator for
2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011[RP 115-2011].
25 OCTOBER 2011
2.
PAGE: 87 of 329
The Minister of Home Affairs
(a)
Employment Equity Report of the Department of Home Affairs for 1 October 2009
to 30 September 2010, in terms of section 22(2) of the Employment Equity Act,
1998 (Act No 55 of 1998).
3.
The Minister of Water and Environmental Affairs
(a)
Report and Financial Statements of the Trans-Caledon Tunnel Authority (TCTA)
for 2010-2011, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-2011.
(b)
Report and Financial Statements of the Water Research Commission for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 130-2011].
WEDNESDAY, 28 SEPTEMBER 2011
ANNOUNCEMENTS
National Assembly
The Speaker
25 OCTOBER 2011
1.
PAGE: 88 of 329
Submission by Chief Justice of list of candidates for appointment to Electoral
Commission
(a)
A letter dated 28 September 2011 has been received from the Chief Justice of the
Republic of South Africa, submitting a list of candidates and their abbreviated
curricula vitae in terms of section 6(4) of the Electoral Commission Act of 1996
(Act No 51 of 1996), and requesting the Assembly to recommend four candidates
to the President of the Republic for appointment to the Electoral Commission.
Referred to the Ad Hoc Committee on Filling of Vacancies in Electoral
Commission for consideration and report in accordance with the resolution
adopted by the House on 14 September 2011.
TABLINGS
National Assembly and National Council of Provinces
1.
The Speaker and the Chairperson
(a)
Report and Financial Statements of the Independent Electoral Commission (IEC) for
2010- 2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP 111-2011].
25 OCTOBER 2011
(b)
PAGE: 89 of 329
Report and Financial Statements of the Financial and Fiscal Commission (FFC) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 84-2011].
2.
The Minister of Arts and Culture
(a)
Report and Financial Statements of Vote 13 – Department of Arts and Culture for
2010-11, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 13 for 2010-11.
(b)
Report and Financial Statements of the Iziko Museums of Cape Town for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 101-2011].
(c)
Report and Financial Statements of the Kwazulu-Natal Museum for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 203-2011].
(d)
Report and Financial Statements of the Luthuli Museum for 2010-2011, including
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011.
(e)
Report and Financial Statements of the Market Theatre Foundation for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 112-2011].
25 OCTOBER 2011
(f)
PAGE: 90 of 329
Report and Financial Statements of the Msunduzi/Voortrekker Museum and Ncome
Museums for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [PR 56-2011].
(g)
Report and Financial Statements of the National Arts Council for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 196-2011].
(h)
Report and Financial Statements of the National English Literary Museum for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 188-2011].
(i)
Report and Financial Statements of the National Film and Video Foundation for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 139-2011].
(j)
Report and Financial Statements of the Freedom Park Trust for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 171-2011].
(k)
Report and Financial Statements of the Ditsong Museums of South Africa for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 80-2011].
25 OCTOBER 2011
(l)
PAGE: 91 of 329
Report and Financial Statements of Business and Arts South Africa for 2010-2011,
including the Report of the Independent Auditors on the Financial Statements and
Performance Information for 2010-2011 [RP 175-2011].
(m) Report and Financial Statements of the Blind SA for 2010-2011, including the
Report of the Independent Auditors on the Financial Statements and Performance
Information for 2010-2011 [RP 142-2011].
(n)
Report and Financial Statements of the Artscape for 2010-2011, including the
Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 170-2011].
(o)
Report and Financial Statements of the Afrikaans Language Museum and Language
Monument for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 168-2011].
(p)
Report and Financial Statements of the Pan South African Language Board for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 229-2011].
(q)
Report and Financial Statements of the National Heritage Council for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 228-2011].
25 OCTOBER 2011
(r)
PAGE: 92 of 329
Report and Financial Statements of the National Library of South Africa for 20102011, including the Report of the Auditor-General on the financial Statements and
Performance Information for 2010-2011 [RP 131-2011].
(s)
Report and Financial Statements of the Natal Museum - Bloemfontein for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
(t)
Report and Financial Statements of the Nelson Mandela Museum for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 129-2011].
(u)
Report and Financial Statements of the Performing Arts Centre of the Free State for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
(v)
Report and Financial Statements of the Kwazulu-Natal Performing Arts Company
(The Playhouse Company) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 121-2011].
(w) Report and Financial Statements of the Robben Island Museum for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 179-2011].
25 OCTOBER 2011
(x)
PAGE: 93 of 329
Report and Financial Statements of the South African Library for the Blind for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 177-2011].
(y)
Report and Financial Statements of the South African State Theatre for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 89-2011].
(y)
Report and Financial Statements of the War Museum of the Boer Republics for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
(z)
Report and Financial Statements of the William Humphreys Art Gallery for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
(aa) Report and Financial Statements of the Windybrow Centre for the Arts for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
3.
The Minister of Finance
(a)
Report and Financial Statements of the Financial Intelligence Centre for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 135-2011].
25 OCTOBER 2011
(b)
PAGE: 94 of 329
Report and Financial Statements of the Sasria (Limited) for 2010-2011, including
the Report of the Independent Auditors on the Financial Statements for 2010-2011.
4.
The Minister of Home Affairs
(a)
Report and Financial Statements of the Film and Publication Board for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
5.
The Minister of Justice and Constitutional Development
(a)
Report dated 15 September 2011 on the suspension from office of Magistrate
C M Dumani, a magistrate in Graaff-Reinet, tabled in terms of section 13(4)(b) of
the Magistrates Act, 1993 (Act No 90 of 1993).
(b)
Report and Financial Statements of the Department of Justice and Constitutional
Development on the Criminal Assets Recovery Account for 2010-2011, including
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 223-2011].
(c)
Report and Financial Statements of the President’s Fund for 2010-2011, including
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 222-2011].
25 OCTOBER 2011
(d)
PAGE: 95 of 329
Report on Monies in Trust kept in the Guardian’s Fund for 2010-2011,
including the Report of the Auditor-General on Monies in Trust kept in the
Guardian’s Fund for 2010-2011 [RP 224-2011].
6.
The Minister for the Public Service and Administration
(a)
Report and Financial Statements of Vote 11 – Department of Public Service and
Administration for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 11 for 2010-2011 [RP
187-2011].
(b)
Report and Financial Statements of the Centre for Public Service Innovation for
2010-2011.
7.
The Minister of Social Development
(a)
Report and Financial Statements of Vote 18 – Department of Social Development
for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 18 for 2010-2011 [RP 242-2011].
(b)
Report and Financial Statements of the National Development Agency (NDA) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 11-2011].
25 OCTOBER 2011
(c)
PAGE: 96 of 329
Report and Financial Statements of the South African Social Security Agency
(SASSA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 81-2011].
8.
The Minister of Transport
(a)
Report of the Regulating Committee to the Airports Company of South Africa and
Air Traffic and Navigation Services Company for 2010-2011.
(b)
Report and Financial Statements of the South African Search and Rescue
Organisation for 2010-2011.
(c)
Report and Financial Statements of the Air Service Licensing Council (ASLC) for
2010-11.
(d)
Report and Financial Statements of the International Air Services Council (IASC)
for 2010-11.
(e)
Report and Financial Statements of the Railway Safety Regulator on the State of
Railway Safety in South Africa for 2009-2010 [RP 51-2011].
9.
The Minister of Water and Environmental Affairs
(a)
Report and Financial Statements of Inkomati Catchment Management Agency
(ICMA) for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011 [RP 161-2011].
25 OCTOBER 2011
PAGE: 97 of 329
National Assembly
1.
The Speaker
(a)
Report of the Public Service Commission (PSC), on behalf of the National AntiCorruption Forum (NACF), on the Implementation of Resolutions on Corruption
made by Parliament and its Committees from 1 January 2001 to 31 December 2005.
THURSDAY, 29 SEPTEMBER 2011
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Membership of Committees
(a)
The following members have been nominated by their parties to serve on the Ad
Hoc Committee on Filling of Vacancies in Electoral Commission:
ANC
Hon. T M Masutha
25 OCTOBER 2011
Hon. N R Bhengu
Hon. M M Maunye
Hon. A H Gaum
Hon. A F Muthambi
Hon. J H Jeffery
Hon. S P Holomisa
Hon. J C Moloi-Moropa
DA
Hon. A T Lovemore
Hon. M Mnqasela
IFP
Hon. H N Makhuba
COPE
Hon. J D Kilian
ACDP
Hon. C Dudley
PAGE: 98 of 329
25 OCTOBER 2011
PAGE: 99 of 329
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Agriculture, Forestry and Fisheries
(a)
Report and Financial Statements of Vote 25 – Department of Agriculture, Forestry
and Fisheries for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 25 for 2010-2011 [RP
205-2011].
(b)
Report and Financial Statements of the National Agricultural Marketing Council
(NAMC) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 137-2011].
(c)
Report and Financial Statements of the Agricultural Research Council (ARC) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 108-2011].
(d)
Report and Financial Statements of the Perishable Products Export Control Board
(PPECB) for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011.
(e)
Report and Financial Statements of the Marine Living Resources Fund (MLRF) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 174-2011].
25 OCTOBER 2011
2.
PAGE: 100 of 329
The Minister of Basic Education
(a)
Report and Financial Statements of Vote 14 – Department of Basic Education for
2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 14 for 2010-2011 [RP 197-2011].
(b)
Report and Financial Statements of the Education Labour Relations Council
(ELRA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of the Transformation Fund of
the Education Labour Relations Council for 2010-2011 [RP 178-2011].
(c)
Report and Financial Statements of the Council for Quality Assurance in General
and Further Education and Training - UMALUSI for 2010-2011, including the
Report of the Independent Auditors on the Financial Statements and Performance
Information for 2010-2011.
(d)
Report and Financial Statements of the South African Council for Educators for
2010-2011, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-2011.
3.
The Minister of Defence and Military Veterans
(a)
Report and Financial Statements of the Armaments Corporation of South Africa
Limited (ARMSCOR) for 2010-2011, including the Report of the Auditor-General
25 OCTOBER 2011
PAGE: 101 of 329
on the Group Financial Statements and Performance Information for 2010-2011
[RP 123-2011].
4.
The Minister of Finance
(a)
Report and Financial Statements of the Financial Services Board for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 42-2011].
(b)
Report and Financial Statements of the Public Investment Corporation Limited for
2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP 73-2011].
(c)
Report and Financial Statements of the Government Pensions Administration
Agency for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011.
5.
The Minister of International Relations and Cooperation
(a)
Report and Financial Statements of Vote 5 – Department of International Relations
and Cooperation for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 5 for 2010-2011.
25 OCTOBER 2011
(b)
PAGE: 102 of 329
Report and Financial Statements of the African Renaissance and International Cooperation Fund for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011.
6.
The Minister of Home Affairs
(a)
Report and Financial Statements of Vote 4 – Department of Home Affairs for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 4 for 2010-2011 [RP 250-2011].
7.
The Minister of Mineral Resources
(a)
Report and Financial Statements of Vote 31 – Department of Mineral Resources for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 31 for 2010-2011 [RP 59-2011].
8.
The Minister in The Presidency: National Planning Commission
(a)
Report and Financial Statements of Vote 12 - Statistics South Africa for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 12 for 2010-2011 [RP 124-2011].
9.
The Minister in The Presidency: Performance Monitoring and Evaluation as well as
Administration
25 OCTOBER 2011
(a)
PAGE: 103 of 329
Report and Financial Statements of Vote 8 – Government Communication and
Information System (GCIS) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information of Vote 8 for
2010-2011 [RP 249-2011].
(b)
Report and Financial Statements of the National Youth Development Agency
(NYDA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011.
10.
The Minister of Police
(a)
Report and Financial Statements of Vote 22 – Independent Complaints Directorate
(ICD) for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 22 for 2010-2011 [RP 246-2011].
11.
The Minister for the Public Service and Administration
(a)
Report and Financial Statements of the Government Employees Medical Scheme
(GEMS) for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011.
12.
The Minister of Science and Technology
25 OCTOBER 2011
(a)
PAGE: 104 of 329
Report and Financial Statements of the Africa Institute of South Africa for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011.
(b)
Report and Financial Statements of the South African Council for Natural Scientific
Professions for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2009-2011.
(c)
Report and Financial Statements of the South African National Energy Research
Institute (Pty) Ltd for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011.
(d)
Report and Financial Statements of the Technology Innovation Agency for 20102011, including the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2010-2011.
National Assembly
1.
The Speaker
Letter from the Minister of Health dated 26 September 2011, to the Speaker of the
National Assembly explaining the delay in the submission of the Annual Report of the
Compensation Commissioner for Occupational Diseases (CCOD) for 2010-2011.
LATE TABLING OF ANNUAL REPORTS: 2010-2011 ANNUAL REPORT OF
THE COMPENSATION COMMISSIONER FOR OCCUPATIONAL DISEASES
25 OCTOBER 2011
PAGE: 105 of 329
(CCOD)
I write to you Honourable Speaker, to appraise you and Parliament, of our inability to
table the 2010-2011 Annual Report of the Compensation Commissioner for
Occupational Diseases (CCOD) on the due date of 30 September 2011. I do this in
accordance with the Public Finance Management Act (PFMA) and indeed the guidelines
of Parliament.
Honourable Speaker, we are not able to table this Report, as the CCOD is not in a
position to finalize the Report, owing to the fact that the Annual Financial Statements
(AFS) for the year under review have not yet been submitted to the Office of the Auditor
General. The reason for this was owing to the delay in the submission of the actuarial
evaluation report for the Fund. The annual financial statements are dependent on the
data contained in the actuarial report, hence could not be submitted as required by the
PFMA on 31 May 2011. The Office of the Auditor General has accordingly been
constantly appraised on the progress, hence their agreement for the submission deadline
of 30 September 2011 for the AFS. The audit will then only commence thereafter. It is
estimated that the audit will be concluded on or before 30 November 2011. This Annual
Report will then be tabled on or before 15 December 2011.
It is against this background Honourable Speaker, that we are not able to table the
CCOD 2010-2011 Annual Report, and we accordingly ask for your consideration and
understanding.
Kind regards
25 OCTOBER 2011
PAGE: 106 of 329
signed
DR AARON MOTSOALEDI, MP
Minister of Health
FRIDAY, 30 SEPTEMBER 2011
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Agriculture, Forestry and Fisheries
(a)
Report and Financial Statements of the Ncera Farms (Pty) Ltd for 2010-2011,
including the Report of the Independent Auditors on the Financial Statements and
Performance Information for 2010-2011.
(b) Report and Financial Statements of the Onderstepoort Biological Products (Ltd) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
2.
The Minister of Communications
(a)
Report and Financial Statements of Vote 26 – Department of Communications for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 26 for 2010-2011 [RP 126-2010].
25 OCTOBER 2011
(b)
PAGE: 107 of 329
Report and Financial Statements of the South African Post Office (Ltd) for 20102011, including the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2010-2011.
(c)
Report and Financial Statements of Sentech Limited for 2010-2011,
including the
Report of the Independent Auditors on the Financial Statements and Performance
Information for 2010-2011.
(d)
Report and Financial Statements of the Independent Communications Authority of
South Africa (ICASA) for 2010-2011, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-2011 [RP 2192011].
(e)
Report and Financial Statements of the National Electronic Media Institute of South
Africa (NEMISA) for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011.
(f)
Report and Financial Statements of the Universal Service and Access Agency of
South Africa (USAASA) for 2010-2011, including the Reports of the AuditorGeneral on the Financial Statements of Universal Service and Access Agency of
South Africa (USAASA) and the Universal Service and Access Fund (USAF) for
2010-2011 [RP 202-2010].
(g)
Report and Financial Statements of the South African Broadcasting Corporation
Limited (SABC) for 2010-2011, including the Report of the Independent Auditors
on the Financial Statements for 2010-2011.
25 OCTOBER 2011
3.
PAGE: 108 of 329
The Minister for Cooperative Governance and Traditional Affairs
(a)
Report and Financial Statements of the Municipal Demarcation Board (MDB) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011[RP 257-2011].
(b)
Report and Financial Statements of the Commission for the Promotion and
Protection of the Rights of Cultural, Religious and Linguistic Communities for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 208-2011].
4.
The Minister of Defence and Military Veterans
(a)
Report and Financial Statements of Vote 21 – Department of Defence and Military
Veterans for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 21 for 2010-2011[RP
192-2011].
(b)
Report and Financial Statements of the Castle Control Board for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 74-2011].
5.
The Minister of Economic Development
25 OCTOBER 2011
(a)
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Report and Financial Statements of Vote 27 – Department of Economic
Development for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 27 for 2010-2011.
(b)
Report and Financial Statements of the Industrial Development Corporation of
South Africa Limited (IDC) for 2010-2011, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 2010-2011.
(c)
Report and Financial Statements of the South African Micro-Finance Apex Fund
(SAMAF) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 76-2011].
(d)
Report and Financial Statements of Khula Enterprise Finance Limited for 20102011, including the Report of the Independent Auditors on the Financial Statements
and Performance Information for 2010-2011 [RP 78-2011].
(e)
Report and Financial Statements of the Competition Commission for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 60-2011].
(f)
Report and Financial Statements of the Competition Tribunal for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance information for 2010-2011 [RP 114-2011].
25 OCTOBER 2011
(g)
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Report and Financial Statements of the International Trade Administration
Commission of South Africa (ITAC) for 2010-2011, including the Report of the
Auditor-General on the Financial Statements and Performance Information for
2010-2011[RP 106-2011].
6.
The Minister of Energy
(a)
Report and Financial Statements of Vote 28 – Department of Energy for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 28 for 2010-2011 [RP 255-2011].
7.
The Minister of Health
(a)
Report and Financial Statements of Vote 15 – Department of Health for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 15 for 2010-2011 [RP 138-2011].
(b)
Report and Financial Statements of the South African Medical Research Council
(MRC) for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP 176-2011].
8.
The Minister of Higher Education and Training
25 OCTOBER 2011
(a)
PAGE: 111 of 329
Report and Financial Statements of Vote 13 – Department of Higher Education for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 16 for 2010-2011 [RP 217-2011].
(b)
Report and Financial Statements of the Agricultural Sector Education and Training
Authority (AgriSeta) for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011 [RP 1442011].
(c)
Report and Financial Statements of the Banking Sector Education and Training
Authority (Bank-Seta) for 2010-2011, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-2011 [RP 1452011].
(d)
Report and Financial Statements of Construction Education Training Authority
(CETA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 147-2011].
(e)
Report and Financial Statements of the Energy and Water Sector Education and
Training Authority (EWSETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 152-2011].
(f)
Report and Financial Statements of Education Training and Development Practices
Sector Education and Training Authority (ETDP SETA) for 2010-2011, including
25 OCTOBER 2011
PAGE: 112 of 329
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 148-2011].
(g)
Report and Financial Statements of the Finance, Accounting, Management
Consulting and other Financial Services Sector Education and Training Authority
for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP 149-2011].
(h)
Report and Financial Statements of the Food and Beverages Manufacturing Industry
Banking Sector Education and Training Authority (Foodbev-Seta) for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 150-2011].
(i)
Report and Financial Statements of the Health and Welfare Sector Education and
Training Authority (HWSETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 151-2011].
(j)
Report and Financial Statements of the Chemical Industries and Training Authority
(CHIETA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 146-2011].
(k)
Report and Financial Statements of the Transport Sector Education and Training
Authority (TETA) for 2010-2011, including the Report of the Auditor-General on
25 OCTOBER 2011
PAGE: 113 of 329
the Financial Statements and Performance Information for 2010-2011 [RP 1602011].
(l)
Report and Financial Statements of the Public Service Sector Education and
Training Authority (PSETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 186-2011].
(m) Report and Financial Statements of The Insurance Sector Education and Training
Authority (Inseta) for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011 [RP 1542011].
(n)
Report and Financial Statements of the Information System, Electronics and
Telecommunications Technologies Sector Education and Training Authority (IsettSeta) for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP 153-2011].
(o)
Report and Financial Statements of the Manufacturing, Engineering and Related
Services Education and Training Authority (MER-Seta) for 2010-2011, including
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 156-2011].
25 OCTOBER 2011
(p)
PAGE: 114 of 329
Report and Financial Statements of the Mining Qualifications Authority (MQA) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 206-2011].
(q)
Report and Financial Statements of the Safety and Security Sector Education and
Training Authority (SASSETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 157-2011].
(r)
Report and Financial Statements of the Services Sector Education and Training
Authority (Services-Seta) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 61-2011].
(s)
Report and Financial Statements of the Tourism, Hospitality and Sport Education
and Training Authority (Theta) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance information for 2010-2011
[RP 162-2011].
(t)
Report and Financial Statements of the Wholesale and Retail Sector Education and
Training Authority (W&RSETA) for 2010-2011, including the Report of the
Auditor-General on the Financial Statements and Performance Information for
2010-2011 [RP 161-2011].
25 OCTOBER 2011
(u)
PAGE: 115 of 329
Report and Financial Statements of the Local Government Sector Education and
Training Authority (LGSETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 155-2011].
(v)
Report and Financial Statements of the Forest Industries Sector Education and
Training Authority (FIETA) for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 2010-2011
[RP 185-2011].
(w) Report and Financial Statements of the Media, Advertising, Publishing, Printing and
Packaging Sector Education and Training Authority (MAPPP-Seta) for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 184-2011].
(x)
Report and Financial Statements of the Clothing, Textiles, Footwear and Leather
Sector Education and Training Authority (CTFL-Seta) for 2010-2011, including the
Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011 [RP 183-2011].
(y)
Report and Financial Statements of the South African Qualifications Authority
(SAQA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 97-2011].
25 OCTOBER 2011
(z)
PAGE: 116 of 329
Report and Financial Statements of the Council on Higher Education (CHE) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
(aa) Report and Financial Statements of the National Student Financial Aid Scheme for
2010-2010, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 164-2011].
9.
The Minister of Home Affairs
(a)
Report and Financial Statements of the Government Printing Works (MDB) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011[RP 239-2011].
10.
The Minister of Justice and Constitutional Development
(a)
Report and Financial Statements of Vote 23 – Department of Justice and
Constitutional Development for 2010-2011, including the Report of the AuditorGeneral on the Financial Statements and Performance Information of Vote 23 for
2010-2011 [RP 221-2011].
11.
The Minister of Police
25 OCTOBER 2011
(a)
PAGE: 117 of 329
Report and Financial Statements of the Private Security Industry Regulatory
Authority (PSIRA) for 2010-2011, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-2011.
12.
The Minister of Public Works
(a)
Report and Financial Statements of Vote 6 – Department of Public Works for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 6 for 2010-2011 [RP 259-2011].
(b)
Report and Financial Statements of the Construction Industry Development Board
(CIDB) for 2010-2011, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011.
(c)
Report and Financial Statements of Agrément South Africa (ASA) for 2010-2011,
including the Report of the Independent Auditors on the Financial Statements and
Performance Information for 2010-2011.
(d)
Report and Financial Statements of the Independent Development Trust (IDT) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 126-2011].
(e)
Report and Financial Statements of the Council for the Built Environment (CBE) for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
25 OCTOBER 2011
(f)
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Report and Financial Statements of the Engineering Council of South Africa
(ECSA) for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011.
(g)
Report and Financial Statements of the South African Council for the Property
Valuers Profession for 2010-2011, including the Report of the Independent Auditors
on the Financial Statements and Performance Information for 2010-2011.
(h)
Report and Financial Statements of the South African Council for the Quantity
Surveying Profession for 2010-2011, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 2010-2011.
(i)
Report and Financial Statements of the South African Council for the Architectural
Profession (SACAP) for 2010-2011, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 20102011[R136-2011].
13.
The Minister of Transport
(a)
Report and Financial Statements of Vote 36 – Department of Transport for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 36 for 2010-2011 [RP 253-2011].
25 OCTOBER 2011
(b)
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Report and Financial Statements of the Passenger Rail Agency of South Africa
(PRASA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 234-2011].
(c)
Report and Financial Statements of the Intersite Asset Investments(Pty)Ltd for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011.
(d)
Report and Financial Statements of the Autopax Passenger Services (Pty)Ltd for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 238-2011].
14.
The Minister of Water and Environmental Affairs
(a)
White Paper on the National Climate Change Response.
(b) Report and Financial Statements of the Namakwa Water Board for the year ended
30 June 2010, including the Report of the Independent Auditors on the Financial
Statements for the year ended 30 June 2010.
(c)
Report and Financial Statements of the Breede-Overberg Catchment Management
Agency for 2010-2011, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011[RP 163-2011].
COMMITTEE REPORTS
25 OCTOBER 2011
PAGE: 120 of 329
National Assembly
1. Report of the Portfolio Committee on Mineral Resources on its oversight visit to
Schmidtsdrift, Province of the Northern Cape, from 03-04 June 2011, dated 10 August 2011
The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to
Schmidtdrift, report as follows:
1.
Introduction
The Portfolio Committee on Mineral Resources (the Committee) embarked on a follow-up
oversight visit to the Northern Cape to engage specifically with the Provincial Legislature,
Department of Mineral Resources, New Diamond Corporation Limited (Mining Company) and
the Schmidtsdrift Community in order to assist during the handing over of an amount of money
which was owed by the Mining Company on royalties to the Schmidtsdrift community. The
engagements also aimed at addressing issues of the mining permit of the Schmidtsdrift
community.
The Committee met with the Deputy Minister of Mineral Resources, Mr Godfrey Oliphant;
Office of the Northern Cape Province Premier, Ms Hazel Jenkins; the Management Committee
of the Schmidtsdrift Community Property Association; and the Schmidtsdrift community.
2.
Background
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The Republic of South Africa (South Africa) is endowed with mineral resources and they play a
key role in the economy of the country. South Africa accounts for 88 percent of known global
resources of the platinum group, 80 percent of manganese, 72 percent of chrome, 32 percent of
vanadium and 30 percent of gold. The Province of the Northern Cape (the Province) is one of
the provinces that are wealthy in terms of mineral reserves. The province accounts for a greater
percentage of diamond reserves. Other minerals that are mined in the Northern Cape include
iron-ore and manganese. However, the poverty levels are high in the Northern Cape. This is one
of the reasons that necessitated the Portfolio Committee on Mineral Resources to conduct an
oversight visit in the Province to ascertain how the mineral wealth of the Province could be
leveraged to improve the lives of communities that are surrounding mining areas.
The Committee conducted an oversight visit to Kimberley and surrounding areas from 22-26
November 2010. The Committee met with mining companies and communities surrounding
those mines. Schmidtsdrift was one of the areas that were visited during that oversight. The
Committee could not meet with the New African Mining, the mining company in that area, due
to the fact that the mine was said to be non-operational and was also being sold to new owners.
According to the community, the mine also owed them an amount of money in royalties. The
Committee has therefore investigated the matter hence the decision was reached to conduct a
follow-up visit on engagements with the Provincial Legislature as well as communities in order
to assist the Schmidtsdrift community to access the money owed by the company on royalties.
This is something that the Committee has investigated and therefore wanted to assist in the
handing over of that money and also to address issues of the mining permit of that community.
3.
Composition of Delegation
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3.1
PAGE: 122 of 329
Parliamentary Delegation
The delegation comprised of Mr MF Gona, the Chairperson of the Committee and Leader of the
delegation, Ms FC Bikani (ANC), Ms DH Mathebe (ANC) and Mr MR Sonto (ANC). It is
worth noting the fact that the delegation that was approved for the oversight was four members
consisting of three ANC members and one opposition member. However, all opposition
members apologised and indicated their unavailability for the visit hence the delegation
consisted of ANC members only.
Support staff
Ms N Skaka (committee secretary) and Ms S Bawa (committee assistant).
3.2
The Department of Mineral Resources
The Department of Mineral Resources (the Department) was represented by the Deputy
Minister, Mr Godfrey Oliphant; Mr S Rasmeni, Head of the Office of the Deputy Minister; and
Ms Cathy Grosch-May.
3.3
Office of the Premier
The Office of the Premier was represented by the Premier, Ms H Jenkins; MEC for Agriculture,
Land Reform and Rural Development, Mr N Shushu; the Director-General, Mr J Bekebeke; and
MEC for Health, Mr M Sokatsha.
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3.4
PAGE: 123 of 329
Prixley kaSeme District Municipality
The Municipality was represented by the Local Economic Development (LED) Manager, Mr S
Madyo.
3.5
New Diamond Corporation (Pty) Ltd
The New Diamond Corporation (PTY) Ltd (NDC) was represented by its lawyer, Mr David
Levithan; and its Directors, Mr Y Weltsman, Mr J Kogl and Mr DJ Coetzee.
3.6
National Union of Mine Workers
The Union was represented by Mr J Lekgamana
3.7
Schmidtsdrift Communal Property Association
The Schmidtsdrift Communal Property Association (SCPA) was represented by its
Chairperson, Mr S Molelekwa; and its members, Ms E Jogom, Ms G Olifant, Mr G Mokgoro,
Mr O Dibakwe, Mr G Noko, Mr J Mompali, Mr K Alamu, and Ms M Johane.
4.
Meeting with the Office of the Premier
The Committee met with the Office of the Premier on Friday, 03 June 2011. The Premier gave
some welcoming remarks and apologised that she was going to leave early due to the fact that
she had to attend a funeral of Mr H. Visser in Namaqualand. She however gave Mr Shushu, the
Member of the Executive Committee (MEC) for Agriculture, Land Reform and Rural
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Development, authority to represent the Provincial Government in all meetings. Issues
discussed ranged from the Schmidtsdrift community mining permit which the Deputy Minister
of Mineral Resources appealed that the matter not be discussed in that forum but to be reserved
for another platform; and money owed by the New Diamond Corporation (Pty) Ltd (NDC) to
the Schmidtsdrift communities on royalties which was to be handed over to those communities
on Saturday, 04 June 2011.
The Management of the NDC presented the history of their operations over the 8 years in
Schmidtsdrift and the changes in management, and indicated that they had new management
and investors. Amongst others was the fact that their prospecting licence was suspended
pending rehabilitation of land in Schmidtsdrift. Outstanding royalties payable were estimated at
R3,2 million but these were said not to be readily available despite undertakings to hand them
over on 04 June 2011 to the communities. NDC also claimed that an amount of R2,2 million
was handed over to the Schmidtsdrift communities in the Schmidtsdrift community hall in
September 2007. They provided that they wanted to clear all the problems with the
communities and start on a clean slate. Their first step was the paying of all outstanding salaries
followed by the rehabilitation process. There were concerns from the Committee and the
Provincial Government that NDC was not acting in good faith as they would always change
their statements. It was resolved that written commitment be made to avail money before end of
July 2011 and that community meeting to be held on 04 July 2011 to identify priorities to be
funded with the money. A trust account was to be opened where the money would then be
transferred. Concerns remained that the amount may not be enough or reflective of what was
really due to the community of Schmidtsdrift, thus financial statements would be needed to
verify the information.
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Regarding the issue of the Schmidtsdrift Communal Property Association (SCPA), options
included its recall and replacement which Pixley kaSeme representative objected to as being
premature given its legal standing. The Committee together with the Provincial Government
(represented by the MEC for Agricultural, Land Reform & Rural Development) proposed the
formation of a Task Team which was to evolve into a Council of Stakeholders following the
successes in other areas, where a Curator was appointed to replace functions of the Communal
Property Association (CPA) as a means to eliminate fights and foster quicker service delivery.
It was further proposed that the SCPA have two representatives on the Task Team and this was
extended to include other groupings. That position was unanimously adopted by the Committee,
Deputy Minister, MEC on behalf of the Provincial Government and the Pixley ka Seme District
representative, in the absence of Local Municipal representative. The Task Team’s Working
Committee was to comprise of the local Councillor and local municipal officials, Community
representatives and the SCPA representatives. This was to be a subcommittee supporting the
Task Team’s work. The District would be more on the management side due to concerns raised
around limited budget for travelling of its representative. The Working Committee was to meet
before the 10 June 2011 to work on the mandates given to the Task Team and table its first
report to the management team of the Task Team by 30 June 2011. The Task Team through its
management team would review and finalize the report for presentation to the Committee. The
lifespan of the Task Team was said to be limited to six months only and would have to table a
final report on its work to the Committee by the end of November 2011.
5.
Meeting with the Management Committee of the Schmidtsdrift
Community Property Association
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PAGE: 126 of 329
When the SCPA was informed that the Committee was going to visit Schmidtsdrift, its
management committee requested a meeting with the committee members before the
community meeting which was to be held on 04 June 2011. The Committee agreed to meet with
them on Friday, 03 June 2011.
The SCPA briefed the Committee as follows:
The New Diamond Corporation (NDC) started to operate in Schmidtsdrift in the year 2000 and
was liquidated in 2004. In 2006, Reho, a contractor under Nare and Adamas operated with
Lonrho being their investor from Britain. Lonrho owned 80 percent of the shares. Lonrho
complained about financial difficulties in December 2008 and was therefore provisionally
liquidated. It was then placed for bidding and the New African Mining (NAM) won the bid.
NAM operated for seven months, pulled out for reasons known to them and sold their shares to
the current owner using the name of NDC.
On 10 February 2011, the SCPA Management Committee met with the new owners who
informed them that:

They would have a programme;

They would inform the SCPA before they start the operations for the sake of discussing a
way forward;

They requested authority to start the rehabilitation process;

They requested that the SCPA lawyer assist them with the Fonteintjie Development Trust as
this Trust was threatening to take them to court;

They further requested that they make a presentation to the community;

They promised to pay royalties owed to the community;
25 OCTOBER 2011
PAGE: 127 of 329

They also promised to look at the issue of employment and social labour plans; and

They further promised to give the community a 26 percent share holding to the company.
The SCPA Management informed the Committee that they were concerned with the fact that
the name NDC kept being used by each company coming to Schmidtsdrift whereas they were
informed that it was no more. They said that this was causing confusion amongst the
community. They were also concerned with the fact that the prospecting rights had been used
by the different companies for ten years with no social and labour plans, social development,
and skills development for employees.
They requested that the Committee advises them on the issue of royalties and applying for a
mining right for the community. They further requested that the Committee investigates the
matter of prospecting rights existing for ten years. They admitted that the amount of R2,2
million was indeed paid by Lonrho to the communities in September 2007. They indicated that,
as a matter of policy, when they received the money, they gave it to people who manage it.
They transferred it to Standard Bank and from there, it went to their investor, Old Mutual,
where it was developing. They informed the Committee that they did call general meetings
where they gave financial reports. The last time they checked, they had R6,4 million which was
made of the R2,2 million they received on September 2007 and the R4 million which was
received before September 2007. The Committee advised them that when they receive the
royalties’ money, they do not get it for balance accumulation and interest but get it to develop
its communities.
6.
Meeting with the Communities of Schmidtsdrift
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General sentiments raised related to a memorandum previously submitted to MEC Shushu’s
Office calling for the recall and replacement of the SCPA. The group which was in contact with
the MEC’s Office raised issues relating to Chieftaincy in Schmidtsdrift and the need to place
the area under administration of a Curator as was believed to be the case in Mier, where the
Department intervened. Others wanted the NDC to be cut from the application for a mining
permit. This led to the common view that these were narrow self interests from segments of
other groupings who did not care about the plight of people engulfed by poverty in
Schmidtsdrift. Most of the community members were interested in changes relating to socioeconomic situation for all inhabitants. Thus, the Committee advised that the development of
Schmidtsdrift was key and that employment and other socio-economic issues should receive
preference. Minorities, with contrary views, were advised to exercise their right to object
through courts of law even though plans for development would proceed to help those in dire
need.
Communities were informed of the proposals made in the meeting between the Committee and
the Provincial Government that included the establishment of the task team. It was however
reiterated that this was dependent on the Communities’ acceptance. The Task Team was to
work with the SCPA as the legitimate structure to achieve the set priorities. Other processes like
replacing the SCPA would require steps set out in the Constitution of the SCPA. They were
informed that the off-take agreement was not legal and that the Department was busy trying to
find a better deal for the agreement. After a long discussion, it was agreed upon that the
resolution to establish a Task Team be passed. Members of the Fonteintjie Trust however
indicated that they were not going to take part in the Task Team.
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The majority of inhabitants raised their hopes for unity and progress in creating beneficial
relations. The following were their priorities:

Skills development & education funding for children with potential;

Dedicated clinic and ambulance service;

Support in developing administrative capacity to manage and implement community
development needs;

Establishment of a crèche;

Establishment of a high school;

Rehabilitation of environment for agricultural purposes; and

Spatial Development.
7.
Findings
The Portfolio Committee on Mineral Resources, having met with all stakeholders as mentioned
above, made the following observations:

Lack of consensus between the communities and the SCPA
The lack of consensus on development imperatives was the main cause for delays in
development of area. Allegations against and from the SCPA were signs of deep rooted
problems in the community. The concurrent emergence of pressure groups further entrenched
the notion of the prevalent divisions in the community. The point of core was that all parties
claimed to want stability and accelerated development in the area.
8.
Recommendations
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The Portfolio Committee on Mineral Resources, having heard evidence from all stakeholders
listed above recommends the following:

A Task Team to, in consultation with the community, determine development priorities
should be formed starting from 05 June 2011 comprising of the following:
o Office of MEC Norman Shushu, convening the Task Team on behalf of Provincial
Government;
o Representative of the office of the Deputy Minister of the Department of Mineral
Resources;
o Representative of Pixley ka Seme District Municipality;
o Representative of the Siyancuma Local Municipality;
o 2 representatives of the SCPA;
o 2 Representatives of the Batlaping Trust;
o 2 representatives of the Fonteintjie Trust;
o Representative of the Schmidtsdrift Community;
o Representtaiove of the Nasrec Community;
o Representative of the Kuruman Community;
o Representative of the Kimberley Community;
o Representative of the Campbel Community;
o Representative of the Douglas Community; and
o Any other relevant stakeholders as would be identified from time to time.

The NDC should make the off take agreement available to the Committee and the
Department;

The NDC should pay the R3,215 million to Mr David Levithan’s trust account before 30
June 2011;
25 OCTOBER 2011

PAGE: 131 of 329
The SCPA and its auditors, the Price Water Coopers should avail the Committee with
audited financial statements and information on projects undertaken if any in order to
address the allegations levelled against them;

The SCPA should consider withdrawing the court cases against the communities.

The Task Team should finalise all its duties by end of November 2011; and

The Task Team should ensure that the R3,2 million is spent on priorities of the
communities.
9.
Conclusion
The Committee noted all the issues raised by the stakeholders. It was clear that issues raised by
the communities were similar and were revolving around the recall and replacing of the SCPA,
as well as implementation or non-implementation of Social and Labour Plans by the mining
companies. Another common issue raised by the communities was the lack of consultation by
the SCPA. However, noting from the deliberations, it would be more appropriate if the SCPA
can try and resolve their differences with the communities as they are there as their
representatives.
The Committee would like to extend its gratitude to the Office of the Deputy Minister, Office
of the Premier, Prixley ka Seme District Municipality, the NDC, the NUM, as well as the
Schmidtsdrift communities for their great assistance and participation during the oversight.
Report to be considered.
2.
Report of the Portfolio Committee on Mineral Resources on its oversight visit to the
Council for Geosciences on 2-3 August 2010, dated 10 November 2010
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The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to
Council for Geoscience, reports as follows:
1. Aim of the Visit
The Portfolio Committee on Mineral Resources undertook a visit to assess if Council for
Geosciences (CGS) has been able to fulfil its mandate in accordance with the Geoscience Act
(100 of 1993) and also to assess if CGS’s performance is in accordance with its Strategic Plan.
2. Composition of Delegation
2.1.
Parliamentary Delegation
The delegation from the Portfolio Committee on Mineral Resources comprised of Mr MF Gona,
- Leader of Delegation (ANC), Mr C Gololo ( ANC), Mr MR Sonto (ANC), Mr E Mtshali
(ANC),Mr E J Marais (DA), Adv. Schmidt (DA)
Accompanying the committee was the Committee Secretary Miss Ayanda Boss, Committee
Assistant Xolisa Mnyute and the Researcher Mr Sibongiseni Ngcobo
2.2.
The Council for Geoscience
The Council for Geoscience was represent by Prof PE Ngoepe - Board Chairperson, Dr T
Ramontja – Chief Executive Officer, Mr F Ramagwede – Executive Manager: Applied
Geoscience, Dr G Graham – Executive Manager: Scientific Services, Dr P Zawada – Executive
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Manager: Regional Mapping, Mr L Matsepe, Chief Financial Officer, Ms Z Mkhize – Acting
Executive Manager: Corporate Services, Mr M Monyepao – Business Development and
Stakeholder Manager, Ms N Mdluli Jacha – Marketing and Communications Specialist, Mr M
Lekotoko – Events Coordinator,
Ms R Shelembe – Scientist: Central Mapping.
3.
Briefing by Council for Geosciences
Dr Ramontja briefed the Committee on the mandate of CGS, Budget and Financials, Thrust and
Programmes and key challenges facing CGS.
The Geosciences Act (Act 100 of 1993) mandates the CGS to undertake systematic mapping,
reconnaissance and documentation of the geology of the earth’s surface both onshore and off
shore and undertake basic geosciences research on the nature and origin of rocks and the earth.
The mandate allows CGS to render commercial geoscience services and products to national
and international clients.
The mandate is being reviewed in terms of the Geoscience Amendment Bill, which will
include:

National advisory authority on infrastructure development

More active role in terms of attracting investment into the mining industry

More active role in mine seismology (earthquakes research and collection of seismic
data)

More roles in petroleum research.
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4. Challenges faced by Council for Geosciences (CGS)

Insufficient baseline allocation, which is exacerbated by declining commercial revenue
due to economic downturn. Geological research is always the most adversely affected
area in tough economic times.

Resource challenge has resulted in suspension of some statutory research activities.

It has also resulted in negative impact on human capital development.

Negative impact on the maintenance of national facilities such as the national library.

The ageing equipment is another challenge facing the CGS. Some instruments are 30
years old and need to be replaced at huge costs.

While other countries invest approximately three percent of GDP on research and
development, South Africa is investing less than one percent of GDP on research and
development.

There is no direct financial contribution by private companies and the CGS’s proposal
of a levy on mining companies is not supported by the National Treasury.

CGS is loosing scientists to mining companies that offer better salaries.

The retention strategy of CGS involves sending scientists to conferences and funding
their further studies.
5. Strategies to address the challenges

The Minister was approached regarding the current situation and has requested a
briefing on the total funding situation and proposals on what needs to be done. A task
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team composing of members of the Department and CGS members was put together
specifically for this purpose.

A comprehensive document has been submitted to Treasury for funding through MTEF.
6. Cost Cutting Measures:
Council for Geosciences took the following measures to reduce cost:

Its Scientific Infrastructure was suspended including Capital Expenditure Program - e.g.
not renewing some essential software, suspended repairing and replacing of laboratory
equipment

Human Capital Development curtailed
-Suspended recruitment in most areas
-CGS bursars were not employed in 2010
- Reduced training and capacity development significantly

Suspended
major
activities
relating
to
CGS
Statutory
Research
Programs
-Field work (mapping) has been suspended
- Cut the budget for the library from R3m to R0.9m

Reduced overheads costs like international and local travel, consulting and contracting.
NB: It was reported that Mine Health and Safety Council has funded the CGS for R16
million on the pilot study on seismicity for 12 months. The agreement was not signed yet
as CGS was given limited time.
7. Geological Mapping
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The Executive Manager, Dr Zawada, briefed the Committee on the importance of Geological
Mapping. The availability of detailed geological mapping has a direct impact on exploration
investment, mineral discoveries, job and wealth creation. Many countries are investing heavily
into upgrading their geological databases, especially in Africa, Canada, US and Australia.
Canada invested $100m (ZAR 711m) for 5 years (2008-2013) to map its northern territories.
Many World Bank and European Union (EU)-funded Mineral Sector Support Programs in
Africa. It was mentioned that if a country wants to be competitive in attracting exploration
investment, it must offer detailed geological data sets and maps.
Geological Mapping is not only about minerals but also the society interacts mainly at the most
shallow levels of the earth’s crust – top 50 m at most to build houses and infrastructure, dispose
waste, extract water, extract some resources (i.e. construction materials, sand and clay), and
grow food. Rocks are highly variable in terms of mineralization trends, ability to carry water
and other fluids. The relationship between geology and society becomes more involved as the
communities and associated infrastructure become more complex.
Geological Mapping was undertaken from the 6 regional offices which are Bellville, Port
Elizabeth, Upington, Pietermaritzburg, Polokwane and Pretoria. Geological maps in RSA are
compiled at 1:1000 000, 1:250 000 and 1:50 000. The entire country has been mapped at 1:250
000 scale.
The geological maps are the basis for engineering geology, geophysical
interpretations and mineral exploration. Thematic regional compilation maps are also produced
for example SADC geological map and Tectonic map of Africa. CGS has an excellent
international reputation for its geological mapping.
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7.1 Systematic Offshore Mapping
South African offshore territories encompasses an area of some 1,54 million km² to the current
200 nautical mile Exclusive Economic Zone. The extend shelf claim may extend area to ̃1,9
million km². Currently, publically- available marine geological charts are available for <1
percent of the territorial water. The mainland has a coastline of some 3000 km extending from
the Orange River in the west, on the border with Namibia to Ponta do Ouro in the east, adjacent
to Mozambique. It was mentioned that 40% of South Africa’s population lives within 100 km
of the coast. Many communities in and around the coastal settlements derived their only form of
income from the marine environment including fishermen, recreational and commercial divers,
dock workers and crew on ships and offshore mining industry.
It was concluded that geological mapping is a key data set for attracting exploration inflows
into the country. The current map database for the country is inadequate for mineral sector and
the increasing environmental land use and infrastructural requirements of the country. The
CGS’s mapping programme is underfunded and is not able to provide enough relevant
geological data for the country
8.
Committee members were taken through the following sections:
8.1.
Geophysics
Mr Odirile Dingoko briefed the committee on the high-resolution airborne magnetic and
radiometric data acquisition of selected parts of South Africa that is critical for promotion of
investment in mining. The aim of this programme is to identify mineral deposits that are
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available around the country. Phase 1 involves the identification of potential areas and Phase II
involves ground based surveying. It was mentioned that it is quite dangerous when conducting
these surveys and walking in the field is prohibited. Magnetic field is measured by aeroplane.
One of the challenges of airborne surveys is that farmers tend to shoot the aeroplanes in their
area.
8.2.
Seismology
Ms Mayshree Singh briefed the Committee that Seismology Unit is a key player in South
African Seismology with core competencies in seismic monitoring and seismic hazard
assessment. The earthquake occurred in the Western Cape (Ceres) in 1969 where 12 people
were killed. She mentioned that a lot of work has been done for Eskom to build a new plant.
8.2.1. Mine Safety
It was reported that the reason for integration of the South African National Seismograph
Network (SANSN) with Mining Networks was to improve location of earthquakes in the
mining areas and dense network of monitoring stations.
8.2.2. Mine
Flooding
Induced
Seismicity
in
the
Central
and
East
rand
Goldfield
It was reported that the largest two events associated with water ingress occurred during the
months of June and July. Apart from mine acid drainage, problem is with water pollution.
8.2.3. Other Projects in Seismology Unit
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
Disaster Management requires earthquake monitoring for early warning systems.

Insurance and Reinsurance requires earthquake database for risk assessment.

Ground Motion Input for construction of power stations, bridges, mining infrastructure
and dams.

Vibration Monitoring of pipelines, dams and critical facilities.
8.2.4. Challenges
The following challenges are facing the Seismology Unit:

Densify Monitoring Network in terms of detecting smaller earthquakes, improve
earthquakes

Identify faults or structures

Alert towns vulnerable to earthquakes
9.
Water Geosciences
It was reported that between two and three years water will reach the surface. If Grotvlei stops
pumping, Nigel CBD will be flooded. 50 million litres are need for Nigel.
10.
Mineral Resources Development
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The mandate of Mineral resources Development unit is to promote Mineral Resources in South
Africa. To date 20000 records/ entries were found. The information is used to promote small
scale miners. Currently the unit is working with the Department of Mineral Resources to
identify
sites
for
rural
development.
Potential Engineering Geoscience Unit contributions towards optimal rural development:

Identification of potential suitable lands for housing

Identification of potentially suitable cemetery and landfill sites

Identification of potentially suitable lands for on-site sanitation systems

Identification of potential natural in-situ construction material resources

Identification of other potential geo-hazards and problem soil conditions.
11.
Environment Geoscience
It was reported that The Department of Mineral Resources contracted CGS to assist in the
development of a strategic framework for sustainable development in the mineral sector in
South Africa. The specific focus areas for the CGS were two fold i.e. the development of the
concept of regional mining and closure strategies and the development of South Africa’s
strategy for the Management of Derelict and Ownerless mines.
12.
Development of a database on derelict and abandoned mines
The National Data base is based on CGS SAMINDABA (South African Mineral Deposits
Database) database. Currently the database has approximately 6000 records. As part of the
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database management update and field verification of the data is required on a continuous basis.
The aim of the ranking exercise is to identify priority sites for rehabilitation.
13.
Development of a strategy for derelict and ownerless mines
To address the problems relating to derelict and ownerless mines, the Department of Mineral
Resources has in cooperation with the Council for Geoscience, undertaken the development and
implementation of a national strategy for the management of derelict and ownerless mines in
South Africa.
13.1.

The key components of this strategy are:
The ranking of the mines within the database in terms of their potential impact on public
health and safety and the environment

The development and maintenance of a national database of derelict and ownerless mines.
Ongoing verification and maintenance of the database will be required.

The implementation of a programme to address the impacts of derelict and ownerless
mines via rehabilitation programmes aimed at minimising risk to the public.
13.2.
Schedule for rehabilitation
The key issues on determination of a schedule for rehabilitation are:

Priority based on risk (determined in the ranking of derelict and ownerless
Mines).
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
PAGE: 142 of 329
Rehabilitation potential (whether efficient rehabilitation is possible or further research and
investigation is required)

The full implementation of the ranking system is a medium-term goal of this strategy,
however, should not delay the launch of the rehabilitation of derelict and abandoned
mines.

Mines identified as posing a high risk to the general public and to the environment must
be prioritised.
13.3.
Acid Mine Drainage
It was indicated that Acid Mine Drainage is one of the most serious and potentially enduring
environmental problems for the mining industry. If it is left unchecked it can result in such
long term water quality impacts that could be the mining industry’s most harmful legacy. South
Africa is facing a serious threat from Acid mine drainage associated with gold mines (Gauteng,
Mpumalanga, Limpopo and Northwest), coal mines (Mpumalanga, Limpopo and KZN), base
metal mines (Northern Cape, Mpumalanga, Northwest and Eastern Cape).
14.
Geochemistry Laboratory Unit
This unit has 42 staff of which 20 are scientists. They identify minerals, determine composition
of water, determine composition of a rock and analyse it. Once it has been determined they use
it for mapping. 90 percent minerals are common in all places in the country.
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14.1.
PAGE: 143 of 329
Geochemical Sampling
Helicopter sampling is mainly carried out in the winter months, using a helicopter as the main
means of transport for sample collection. The sample collection is a team effort and requires
between 9 and 13 people at any one time to accomplish the task. This professional and highly
experienced team has been able to collect in excess of 380 samples per day on numerous
occasions. With increasingly higher standards set every year, the cost of sample collection has
been reduced quite dramatically. In addition to regional sampling, follow-up sampling is also
done by vehicle or foot.
15.
Findings and recommendations

Urgent decision by the Inter Ministerial Committee need to be made within 6 months to
look at the matter of rising water tables as a result of acid mine drainage in the Rand
area.

Meeting with PC on Water Affairs and operating mining companies need to be
scheduled.

Identification of the companies who still hold licences of some of the Derelict and
Ownerless mines.

Derelict and Ownerless mines cross-cut the jurisdiction of a number government
departments.

CGS is underfunded to run all its programmes, therefore, the Ministry of Mineral
Resources must speed up the approval of the new funding level for the CGS.
25 OCTOBER 2011

PAGE: 144 of 329
Meeting between metro municipalities and provincial minister of local government in
the Gauteng Province needs to be arranged.

Other countries have volcanic water which South Africa does not have.

It is recommended that the Country must invest more of its GDP percentage (+- 3%) on
research capabilities in order for us to be in line with other countries.
16.
Conclusion
The chairperson of the committee announced that the committee is considering opening the
Geoscience Amendment Bill for public participation.
Report to be considered.
3.
Report of the Portfolio Committee on Mineral Resources on its oversight visit to the
Province of the Northern Cape, on 22-26 November 2010, dated 10 August 2011
The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to
Northern Cape, report as follows:
1.
Introduction
The Portfolio Committee on Mineral Resources (the Committee) embarked on an oversight visit
to the Northern Cape to ascertain, inter alia, if the legislative provisions of the following, the
Mineral and Petroleum Resources Development Act (Act 28 of 2002), Mine Health and Safety
Act (Act 29 of 1996), Broad-based Socio-economic Empowerment Charter for the South
25 OCTOBER 2011
PAGE: 145 of 329
African Mining Industry (Mining Charter) and Social and Labour Plans are adhered to; the
economic investment impact of the mining industry in the Northern Cape and the status
regarding the closure of mines. The visit was split into two due to the vastness of the Northern
Cape Province. The first visit was conducted between the 26th and 30th July 2010 and covered
areas such as Port Nolloth, Alexander Bay, Hondeklipbaai, Sanddrift and Richtersveld.
The second part of the visit was undertaken from 22nd to the 26th November 2010 and covered
Kimberley and surrounding areas. This visit involved interaction with the management of the
mines, organised labour and the mining communities.
Mines that were visited were Kumba Iron Ore in Khathu, De Beers Consolidated Mines in
Kimberly and Finsch Mine in Lime Acres. Scarlet Sun 15 could not be visited as the owners
were not available. In Schmidtsdrift, New African Mining could not be accessed as well since
the Committee was informed that there were no operations because of the take-over of the mine
by new owners. The committee was also supposed to have a community meeting in Khathu and
Kalishiwe but the meetings could not materialise due to poor co-ordination.
2.
Background
The Republic of South Africa is endowed with mineral resources and they play a key role in the
economy of the country. South Africa accounts for 88 percent of known global resources of the
platinum group, 80 percent of manganese, 72 percent of chrome, 32 percent of vanadium and
30 percent of gold. The Province of the Northern Cape is one of the provinces that are wealthy
in terms of mineral reserves. The province accounts for a greater percentage of diamond
reserves. Other minerals that are mined in the Northern Cape include iron-ore and manganese.
25 OCTOBER 2011
PAGE: 146 of 329
However, the poverty levels are high in the Northern Cape. This is one of the reasons that
necessitated the Portfolio Committee on Mineral Resources to conduct an oversight visit in the
Province to ascertain how the mineral wealth of the Province can be leveraged to improve the
lives of communities that are surrounding mining areas.
3.
Composition of Delegation
3.2
Parliamentary Delegation
The delegation comprised of the Chairperson of the Committee and Leader of the delegation,
Mr MF Gona (ANC) , Mr C Gololo (ANC), Mr VV Magagula (ANC), Ms DH Mathebe (ANC),
Ms LN Mjobo (ANC), Ms NF Mathibela (ANC), Ms NJ Ngele (ANC), Ms M Phaliso (ANC)
(visiting member), Mr MR Sonto (ANC), Ms B Tinto(ANC), Mr E J Marais (DA), AND Adv
HC Schmidt (DA).
Support staff
Ms N Skaka (committee secretary), Ms A Boss (committee assistant), and Mr S Ngcobo
(committee researcher).
3.4
The Department of Mineral Resources
The Department of Mineral Resources (DMR) was represented by Chief Director of Mineral
Regulations, Mr Michael Oberholzer, Regional Manager, Regional Manager, Mr Pieter Swart,
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PAGE: 147 of 329
Deputy Director of MLA, Ms Faith Mazabane, Parliamentary Liaison Officer, Ms Vuyiswa
Mangcu and Parliamentary Officer on the Office of the Director-General, Mr Kwazi Mhlongo.
3.3
Municipalities
The Northern Cape Provincial Legislature was presented by the Chair of Chairs, Ms CM
Chotelo, the Chairperson for SCOPA, Ms AJ Beukes, the researcher, Mr JA Franks, and Coordinator, Ms N Babuseng. The John Taolo Gaetsewe District Municipality was presented by
its Speaker, Ms S Mosikatsi. The Gamagara Local Municipality was represented by its Mayor
Ms M Dininza. The Kgatelopele Municipality was presented by its Mayor, Mr WB Maseng,
and its Councillors, Ms G Kgoronyane, Mr G Jacobs, and Ms A Kruger. The Dikgatlong
Municipality was presented by its Mayor, Ms R Gopane. The Sol Plaatjie Municipality was
represented by its Executive Mayor, Mr P Everyday.
3.4
Kumba Iron Ore Company – Khathu
Kumba Iron Ore was represented by its Acting General Manager for Thabazimbi Iron Ore
Mine, Ms C Holtzhausen, Executive Head of Human Resources, Ms V Tyobeka, Company
Secretary, Mr V Malie, Occupational Hygiene, Ms K Andries, Human Resources Manager, Ms
S Buidenhout, Sheq Manager, Mr H Nicholas, Acting Plant Manager, Mr B Buthelezi, Acting
Mine Manager, Mr N Banda, Finance and Administration Manager, Mr P Maharaj, Executive
Head of Public Affairs, Mr T Chabana, Head Master for Sesheng Intermediate School , Mr M
Ronald, Principal for Sishen Primary School, Mr O Forward, General Manager for Kolomela
Mine, Mr A van der Brink, Supervisor for Occupational Health, Ms S Hattingh, General
Manager, Mr A Loots, Chief Executive Officer, Mr C Griffith, She Representatives, Ms N
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Matilo and Ms K Sechogela, and BAMCWU fulltime Shop Sterward and Branch Chairperson,
Mr B Mthembu.
3.7
De Beers - Kimberley
De Beers was represented by its Environmental Practitioner, Ms M Heather-Pieters,
Commercial Manager, Mr G Peterson, General Manager, Ms C Pisane, Director, Mr S Ngcobo,
Human Resources Manager, Mr R Ruwana, Production Manager, Mr S Likhuleni, and Acting
Human Resources Manager, Mr J Deyzel.
3.8
De Beers Finsch Mine – Lime Acres
De Beers was represented by its Employee Relations Manager, Mr G Strydom, Mining
Manager, Ms K Mokgatlha, Senior Human Resources Manager, Mr M Mtshali, Section Lead
for Mine Planning, Mr L Masilo, Environmental Manager, Ms S Sparks, Trainng Manager, Mr
G Acker, Senior Training Officer, Mr E Britz, General Manager, Mr M Morapeli, Deputy
Chairperson, Mr K Molelekwa, Commercial Manager, Mr D Bhana, and Community Relations
Practitioner, Ms C Olivier.
3.7
New African Mining
The New African Mining was represented by its Chief Executive Officer, Mr D Kotze.
3.8
National Union of Mine Workers
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PAGE: 149 of 329
The trade Union was represented by its Shop Steward, Mr O George, Regional Organiser, Mr B
Lebelo, Treasurer, Mr O Mabe, Paralegal Officer, Mr A Lekwene, Regional Secretary, Mr T
Montoedi, Branch Secretary, Mr A Long, Branch Chairperson, ML Mabozo.
3.9
Trusts Representations
The Namaqua Diamond Fund Trust was represented by its Chairperson, Mr MJ Cloete,
Provincial Trustees, Mr S Lena, Mr F Cupido, AP Coetzee, and Ms LA van Den Heever. The
Sishen Iron Ore Company Community Development Trust was represented by its Chairman,
Ms C Molusi, Chief Executive Officer, Mr J Ngobeni, and Beneficiary Trust, Mr N Mosiapoa.
4.
Briefing by the Department of Mineral Resources
The Department of Mineral Resources (DMR) briefed the Portfolio Committee on Mineral
Resources (the Committee) on the mines that were to be visited. The briefing mainly focused
on the term of mining licences of each mine, Social Labor Plans, liabilities, guarantees and
shortfall, and workforce complement.
It was reported that the Regional Office has an establishment of 60 employees. It received a
total of 4 690 applications making it fourth on the list in terms of received applications. The
applications were categorised as follows:
Type of Right
Number of Applications received
Reconnaissance Rights
4
New Prospecting Rights
2 217
Prospecting Rights Renewal
175
New Mining Rights
204
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Mining Rights Renewal
1
New Mining Permits
1 836
Prospecting Rights Conversion
102
Mining Rights Conversion
149
Production Rights Renewal
1
Total
4 690
The members of the committee were briefed on the operations of the following mines:

Sishen Iron Ore Company (Pty) Ltd

De Beers Consolidated Mines Ltd (Kimberley)

De Beers Consolidated Mines Ltd (Finch Mine)

Scarlet Sun 15 (Pry) Ltd

NDC Mine (Schmidtsdrift)
4.1
Sishen Iron Ore Company (Pty) Ltd (SIOC)
Sishen Iron Ore Company (Pty) Ltd (SIOC) was issued with a mining licence in terms of the
now largely repealed Mineral Act (Act 50 of 1991) to mine iron ore in respect of various farms
in the Kuruman district. It applied for a conversion of the old order right, which was granted
and a new order mining right was issued for 30 years from 11 March 2009 until 10 November
2039.
SIOC employed approximately 9 427 workers. Kumba Iron Ore holds 74 percent shares. The
rest of the shares are distributed as follows

SIOC Employee Share Participation Scheme Trust - 3 percent
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
Main Street 392 (Pty) Ltd which is also the Community Development SPV - 3 percent

NEWCO – 20 percent
SIOC total guarantees submitted in respect of financial provision for rehabilitation was R773
114 384, 00. The total liability was R881 915 878, 00, resulting to a shortfall of R108 801 494,
00. The company committed to addressing the shortfall during their 2010 contributions.
The Social and Labour Plan commitments are as follows:
PROJECTS
Bulk
FUNDING
Water
Storage R8 690 400. 00
Kuruman
COMMENTS
Not finalised-area is not
suitable due to unstable sink
hole formations. Specialist
study to identify suitable
site.
Provision of infrastructure R10 362 200. 00
First
for
tender
water
backlog
in
Moshaweng
Multi
purpose
processes
phase
on
business R2 726 750. 00
outsource
for
Mot done Municipality and
Mine looking at using this
budget
for
storage
chlorination
in R3 817 450. 00
Completed
Deben
Upgrading of roads in R763 490. 00
Gamagara
advert
finalisation of project
customer contact centre
Water
completed,
Completed
bulk
water
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Establish internal roads in R2 953 800. 00
Planned for 2011
Moshaweng villages
Ablution
facilities
Skerpdraai
for R3 938 400. 00
To start 2011
community
Olifantshoek
Manyeding
cultivation R3 272 100. 00
Completed
project/ vegetables
Total
4.2
R36 542 590.00
De Beers Consolidated Mines Limited (DBCM): Kimberley
De Beers Consolidated Mines Limited (DBCM) in Kimberley was issued with a converted
mining right for a period of 30 years from 7th May 2010 until 6th May 2040. It employed
approximately 557 workers.
DBCM owns 74 percent of the shares and Ponahalo Investment Holdings (Pty) Ltd, which is a
BEE company, owns 26 percent respectively.
The total guarantees submitted in respect of financial provision for rehabilitation was R137 996
604, 00. The total liability was R634 382 954, 00 resulting to a shortfall of R496 386 350, 00.
The company is in dispute with the Department over its liability and is in the process of
assessing its own liability and will furnish DMR with their report.
The Social and Labour Plan commitments for DBCM Kimberley are as follows:
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PAGE: 153 of 329
PROJECTS
FUNDING
COMMENTS
Sol Plaatjie waste water R1 400 000. 00
Implemented
treatment
2010
plants
(Homevale
in
October
and
Greenpoint)
Galeshewe
SMME R2 300 000. 00
Planned for 2010 – 2013
village
Diamond and jewellery R6 000 000. 00. R2.7 million To be launched during March
academy
already
spent
on 2011
refurbishment
Brick
and
clay
pot R1 890 000. 00
Not implemented yet
manufacturing
School maths and science R3 000 000. 00. R600 000. 00 Ongoing
4.3
programme
spent in 2010
Total
R14 590 000.00
De Beers Consolidated Mines Limited (DBCM): Finch Mine
The Finsch Mine was granted a mining right for a period of 30 years commencing on 15th
October 2008 and ending on 14th October 2038. It employed 761 workers. The ownership
structure of the mine is similar to that of DBCM Kimberley mine.
DBCM Finch Mine submitted a total guarantee of R54 600 000, 00 against a total liability of
R267 736 395, 00, resulting to a shortfall of R213 136 395, 00. Like the Kimberley mine, the
company is in dispute with the Department regarding its total liability.
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The Social and Labour Plan (SLP) commitments for DBCM Finch Mine are as follows:
PROJECT
FUNDING
Thlakalatlou and Kuilsville R1 891 582. 63
Sanitation
COMMENTS
Completed end 2009
infrastructure
(erecting and connecting
142 toilets)
Water
supply R3 266 000. 00
infrastructure
Recommendation to award
the tender was made in
October 2010
Lucerne cultivation project
R1 900 000. 00
Feasibility done. Project at
EIA stage.
Water
recycling/ R1 400 000. 00
Feasibility
started
in
management
October 2010
Granulator Plant (Siyanda R4 674 000. 00
Feasibility
plastic
Stakeholders await outcome
manufacturing
facility)
Total
4.4
done.
of the study
R13 131 582.63
Scarlet Sun 15 (Pty) Ltd
Scarlet Sun 15 was the holder of a prospecting right and lodged an application for a mining
right on 18th April 2009, which was issued on 16th July 2010 and will expire on 15th July 2022.
The right was granted over the land that was subject to a land claim.
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The ownership structure of Scarlet Sun 15 is as follows:

State Entity – 20 percent

Dewberry Trading 22 (Pty) Limited – 30 percent

Sydney on Vaal CPA – 50 percent
Scarlet Sun submitted a guarantee of R1 106 200, 62, which was equivalent to the total liability.
The Social and Labour Plan commitments for Scarlet Sun 15 are as follows:
PROJECTS
IDP
equipping
FUNDING
local R50 000, 00
COMMENTS
Not started
hospice
Upgrading local clinic
R150 000, 00
Not started
Upgrading local crèche
R50 000, 00
Not started
Stone project-assist SMME R50 000, 00
Not started
by selling stones
Canteen SMME-to provide R150 000, 00
Not started
employees with meals
Administration SMME to R180 000, 00
provide
payroll
Not started
and
security to mine
Soup kitchen
R50 000,00
The
kitchen
is
operational
and
provides
300
households with lunch
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PAGE: 156 of 329
only on weekdays
Total
4.5
R680 000.00
NDC Schmidtsdrift
The company had an old order prospecting right which was converted to a new order right on
the 12th April 2006 for a period of two years ending 11th April 2008. The applicant did apply for
renewal of the relevant right.
Currently the company has no Historically Disadvantaged South Africans (HDSA) participation
and has lodged a section 11 application to obtain the ministerial consent to cede the right to a
new company whereby the community will have a 20 percent shareholding in the operation.
The sale of diamonds extracted from this mine is subject to an off-take agreement. The party to
an off-take agreement applied for a Court Order and was granted whereby the Minister is
interdicted from processing the section 11 application.
5.
Kumba Iron Ore – Sishen Mine in Khathu
Kumba Iron Ore is the 5th largest supplier of seaborne iron ore in the world. Kumba Iron Ore
has two operating mines and one that is still under development and expected to start
production in 2012. The operating mines are Sishen and Thabazimbi mine. The mine that is
under development is the Kolomela mine. Kumba Iron Ore ownership structure comprises
Kumba (74%), Exxaro (20%), Sishen Iron Ore Company (SIOC) Community Development
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Trust (3%) and SIOC Employee Share Participation Scheme (3%). Exxaro is a Black Economic
Empowerment company established by Anglo American.
Sishen mine is situated in the Kgalagadi District Municipality, Northern Cape / North West
Province. The mine is an established and fully operational open-cast mine producing more that
27 Mt of iron ore per annum. Mining of the deposit started in 1953 at a low rate. In 1970
geophysical surveys and exploration drilling indicated mineable reserves of at least a billion
tons, which led to the expansion of the mine and the Sishen-Saldanha export project, completed
in 1976. The name 'Sishen' or 'Sesheng' means’ new place'.
The town of Khathu and the residential area of Sesheng were built to accommodate mine
employees. Many town planning theories were put into practice when Kathu, with its
neighbourhood cells and evenly spaced access roads, was planned. Sesheng, on the other hand,
was planned as a high density area to accommodate mine workers, without their families or any
social amenities. Today, the hostel accommodation is being phased out and workers
accommodate themselves in family houses or in flats. The processing plant consists of product
preparation, washing and screening, beneficiation, and direct reduction screening, as well as ore
blending and dispatch.
5.1
Workforce Description and Labour Sending Areas
Kumba Iron Ore employs more that 11 447 employees and contractors. Of this number, 6 439
are permanent employees and 5 008 are contractors. Over 97 percent of employees of Kumba
Iron Ore are from communities in the local municipality of Gamagara, whereas the remaining
three percent of employees are from within the Kgalagadi District Municipality in Northern
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Cape Province. Of the 97 percent, 3 435 are permanently employed, 4 345 contractor employed,
28 temporary employed and 442 learners.
The total of Sishen Mine workforce comprises 3 885 permanent employees, 65 temporary
employees and 4 972 contractors. Using a multiplier effect of 1:3, it is calculated that these 8
922 employees support a further 26 766 dependents between them.
5.2
Mining Tour
The committee members were taken through a guided tour of the mine. They were taken to the
following projects:

Bana Child Care Facility

Housing Project

Tsipi Training Centre

Health Care Facility

Hostels
5.3.1
Bana Child Care Facility
Committee members were shown the child care centre that is privately owned, but the building
was provided by Kumba. The centre was occupied by 35 children. The centre provided a
service to employees of Kumba and was established in response to the needs of women mine
workers.
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The running cost of the centre was approximately R32 000 per month. Kumba Iron Ore
contributed food, learning material and paid a salary of one teacher. The rest was covered by
the parents’ contributions, which amounted to R250 for half-day and R500 for full-day care.
5.3.2
Housing and Hostels Project
The committee was also taken through the mine houses and the converted hostels. There was
preparatory work taking place in the area opposite the current houses for the construction of the
second phase of the housing project. The plan was to build 400 houses in the second phase of
the project. Kumba was providing infrastructure such as roads and water for the project.
The hostel was previously occupied by 1 312 employees and the conversion resulted in 600
dwellers losing accommodation as a result of increased space per occupant. The converted
hostels provided privacy for the occupants because there was only one person per flat.
The converted hostels used the solar water heating system. The occupants were using the
prepaid electricity and were paying rent of R110 per month. The conversion of hostels was
expected to be finalised by 2012.
5.3.3
Tsipi Training Centre
Kumba Iron Ore was funding 70 students that were in the higher education institutions. The
Mine had an accredited training centre called Tsipi that did not only provide training to its own
workers but also to workers from other neighbouring mines. The centre had been in operation
since 1995 and provided training in trade skills like carpentry and plumbing to unemployed
25 OCTOBER 2011
PAGE: 160 of 329
persons. The centre also provided training in skills that were not necessarily required by the
mine.
The centre provided learnerships that had the duration of between two to twelve months.
Learnerships that were provided by the centre were accredited by the relevant sector education
and training authorities (SETAs). The centre also conducted trade tests and provided certificates
for successfully completed courses.
5.3.4
Health Care Facility
The company had a wellness clinic that was registered as a section 21 company. Kumba Iron
Ore provided funding for operational costs while the Department of Health provided
medication. The clinic caters for employees of Kumba Iron Ore and surrounding communities.
It provides services like voluntary counselling and testing as well as vitamin supplements for
those who are HIV positive but not on antiretroviral medication.
6.
De Beers Consolidated Mines Limited - Kimberly
6.1
Safety Induction
The Committee was first taken through the Safety Induction. The Committee was informed that
DBCM is committed to zero harm. DBCM reported that Kimberley Mines incurred four Lost
Time Injuries with LTIFR for 2010 being 0.68. Execution of Safety Strategy was underway and
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Anglo Safety Risk Management Programme was underway. Management from contractors
would be attending a high level SRMP Training.
6.2
Social and Labour Plans
6.2.1
Human Resources Development
DBCM has a total number of 2 799 employees. Of this number, 274 are Kimberley Mines. The
274 employees are categorised as follows:

2 are in senior and top management positions,

17 are professionally qualified and experienced professionals and mid management,

114 are technically skilled and academically qualified workers, junior management,
supervisors, foremen and superintendents,

108 are in semi-skilled and discretionary decision making positions, and

33 are in unskilled and defined decision making positions.
DBCM stakeholders are the following:

Mine Qualifications Authority (MQA)

Alpha Certification Services – ISO 9001:2008

De Beers Technical Training Campus

Department of Education FET College

Other Training Providers
Identified skills priorities for Kimberley Mines are safety and health environment, technical
training, non-technical training and legal compliance. The Mines had five learnerships in
Apprenticeships and Ore Processing. They also have Graduate Schemes in Ore Processing,
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Engineering and Geology. There is a Committee that conducts monthly meetings to monitor
amongst other things the Review and sign-off Employment Equity Plan (EE Plan),
implementation of EE Plan, Women in Mining and identification of barriers in transformation
related activities. ABET is as also offered on a voluntary basis to all employees to enrol and
complete their grade 12 with company support and assistance.
6.2.2
Local Economic Development
Categories and Financial Overview
Category
Project
Amount in 5 years
Community

De Beers Fund
Development Projects

Local
R9 121 441.00
Areas
Committee
Infrastructure
Poverty
Projects
and

Eradication
Brick Manufacturing R1 890 000.00
project

SMME R2 300 000.00
Galeshiwe
Village

and R6 000 000.00
Diamond
Jewellery Academy

De Beers Enterprise 3 500 000.00
Development HUB

Sol
Plaatjie
Water
Waste 1 400 000.00
Treatment
Plants
Subtotal
R 15 090 000.00
25 OCTOBER 2011
6.2.3
PAGE: 163 of 329
Corporate Social Investment
The Corporate Social Investment Projects included:

M2 Coffee Shop (Maths and Science) Opening

Ceremony for Autumn Academy

Donation of a car to Mokareng Media

Donation of laptops to the Frances Baard ECD Forum and computers to Boaramelo
Combined School in Jagersfontein
The DBCM Proactive Initiatives incorporated the Emang Mmogo Combined School and the
Colville Land Donation. The future Diamonds Programme at Emang Mmogo Combined School
started in mid 2008. The key focus areas were Soul Talk workshops for educators, Grade 12
learners and some of their parents. Project Coordinators enrolled at the University of the Free
State through De Beers Financial Assistant Programme. Kimberley Mines has also proposed the
donation of land to the Sol Plaatjie Municipality. The donation has been accepted in principle
by the Municipality. The size of the property is estimated to be 75 hectares and valued at R3
million.
6.2.4
Procurement Progression Planning
It was reported that through the Kimberley Mines Procurement Progression Plan, DBCM was
committed to support the Mineral and Petroleum Resources Development Act and Regulation,
Act 28 of 2002 and the Mining Charter. The objectives were to maintain an effective strategy
for Kimberley Mines to achieve and exceed its annual Local BEE spend targets. Also to ensure
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that all preferential sourcing initiatives do not conflict with but are instead aligned to Kimberley
Mines’ business requirements and objectives. The total spend for the HDSA for the year 2010
was R99 887 920.86 AND R66 366 727.58 which is 66.44 percent of the amount was already
spent in November.
De Beers Consolidated Mines Limited – Finsch Mine in Lime Acres
7.
On arrival, the Committee was given a brief presentation on the operations and safety issues of
the mine in preparation for an underground visit of the Finch mine. They were then taken
through a guided tour of the underground operation. After the tour, the Mine management took
the Committee through a presentation which covered the following areas:

Mining works programme

Procurement progression plan

Managing downscaling and retrenchment

Social and Labour Plan
o Human Resources
o Human Resource Development
o Local Economic Development
o Housing

Environmental management programme
7.1
Social and Labour Plans
7.1.1
Human Resources Development
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PAGE: 165 of 329
The Committee was informed that Finsch Mine has a total workforce of 879 permanent
employees. There is also a total number of 399 permanent contractor employees. Of this
number, 444 are African males and 119 are African females. Permanent Employee Labour
Sending Areas were said to be the following:

John Taolo Gaetsewe District Municipality with a total number of 220 employees,

Kgatelopele Local Municipality with a total number of 201 employees,

Sol Plaatjie Local Municipality with a total number of 131 employees,

Greater Taung Local Municipality with a total number 115 employees,

Tsantsabane Local Municipality with a total number of 87 employees,

Naledi Local Municipality with a total number of 45 employees,

Siyanda District Municipality with a total number of 27 employees, and

Other undefined areas with a total number of 53 employees.
Contractors Labour Sending Areas were provided as follows:

John Taolo Gaetsewe District Municipality with a total number of 84 contractors,

Kgatelopele Local Municipality with a total number of 218 contractors,

Sol Plaatjie Local Municipality with a total number of 20 contractors,

Tsantsabane Local Municipality with a total number of 12 contractors, and

Other undefined areas with a total number of 65 contractors.
There were six Apprenticeship Learnerships, 14 Women in Mining Learnerships and 19
Supervisory Learnerships for the year 2010. Portable Skills Planning was in the following
areas:

Technical skills programmes: 15

Business Skills Programmes: 6
25 OCTOBER 2011

Entrepreneurial skills programmes: 9

Agricultural skills programmes: 6
PAGE: 166 of 329
There were a total number of 49 candidates registered for the 2010 Grade 12 Registration. This
was done on a voluntary basis and afternoon classes were offered to assist candidates. There
were also nine scholarships, 13 bursary schemes, 12 internships, and 41 self study schemes.
There were also 155 women in mining.
7.1.2
Local Economic Development Plan
It was reported that the stakeholder forums are made up of the internal and external
stakeholders. External comprised of the Kgatelopele LED Steering Committee (Mayor,
councillors, and Municipal Manager), Workgroup meetings (LM and DM Officials and Finsch
Mine employees), Kgatelopele LED Forum (PPC Ltd, Idwala and LM) AND Quarterly
meetings with DMR Provincial office representatives. Internal comprised SLP Committee
(Management, representative bodies and responsible employees, projects) and Future Forum
(Management, representative bodies).
Local Economic Development has three priorities, which are:

Community upliftment

Poverty eradication

Infrastructure.
7.1.2.1 Community Uplifment Projects
Project Description
Beneficiaries
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PAGE: 167 of 329
Community Bursary Scheme to meet Three Kgatelopele Local Municipality
Technical requirements at LM
residents
Internships with two interns per One Kgatelopele resident
annum at the discretion of LM
One John Taolo Gaetsewe resident
Upgrade of Resource Learning Centre Kgatelopele residents
7.1.2.2 Poverty Eradication Projects
Project Description
Beneficiaries
Granular Plant Pre-feasibility Study Kgatelopele LM residents
funded by Finsch Mine
Recycling Waste Management Project
Kgatelopele LM residents
Lucerne Cultivation Project
Kgatelopele LM residents
7.1.2.3 Infrastructure Projects
Project Description
Beneficiaries
Sanitation: Erecting and connecting Kgatelopele LM residents
142 airborne toilets in Kuilsville and
Tlhalakathlou
25 OCTOBER 2011
Water
supply
PAGE: 168 of 329
(water
pipe Kgatelopele LM residents
refurbishment)
7.1.3
Corporate Social Investment Spend for 2010
Spending Item
Schools Subsidy
Comments
Subsidy to employee teachers and
learning material
School Bussing
Bussing of high school learners to
Danielskuil.
Maintenance of LA school
School maintenance
Ponahalo Community Trust
KSDF
leadership
and
skills
development of staff and Home Based
Carers and Organic Food Garden in
Kgatelopele LM.
Rally to Read
Learning materials to schools in John
Taolo Kgaetsewe DM.
Local Areas Committee
Community projects egg. Skeyfontein
Food Garden, Kgomotso Old Age
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Home and ECD support.
ABET
Community and Contractors portion
of ABET cost
7.1.4
Housing
The Committee was informed that the Finsch Mine Housing Policy is used to govern the
allocation of housing for employees. The Committee met once a week to discuss housing issues
and to allocate houses to employees. In 2008, it was decided to renovate one single block to
accommodate Women in Mining pilot Skills Programme employees. The old hostel
accommodation was converted to family accommodation in a five year project that was
completed in 2005.
8.
Community Meeting in Lime Acres
The community raised a number of challenges facing them which ranged from housing; health
facilities; racial segregation (whites occupying their own area and coloureds and blacks their
own). The Committee was informed that discrimination and racism is still rife in Lime Acres.
One community member, an ex-employee of Finch Mine raised an individual grievance relating
to termination of employment on the grounds of incapacity. She alleged that the proper
procedures were not followed since the termination was not recommended by the medical
doctor. There were allegations that services of that employee were terminated on grounds of illhealth and that the process was procedurally flawed. It appeared that there was a disjuncture on
25 OCTOBER 2011
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how Finch Mine applied certain provisions of the Labour Relations Act. The employee in
question approached DMR but still did not get any joy. The community alleged that DBCM is
being sold in February but this was not disclosed by DBCM nor by the DMR to the Committee
during their briefings. It became clear that the beautiful picture that was painted by Finsch
management during their presentations was a far cry from the reality on the ground.
8.1
8.2
Challenges

Exorbitant rental and rates

Racial segregation

Education – bursaries given to learners out of the mining community

No consultation with community on issues that directly affect them

Access to health care facilities

Skills development

Sick leave policy

Transformation and beneficiation

Access to amenities e.g. community hall
Responses by De Beers Finsch Mine Management
In response to the grievances, the management reported as follows:

Management is in the process of proclaiming the town. This is to be followed by turning the
town into a municipality.
25 OCTOBER 2011

PAGE: 171 of 329
With regard to water and electricity, it was reported that these are fringe benefits that are
subject to taxation laws of the country. The payment for these services is determined by
salary bands i.e. those on the upper salary bands pay more. Excess consumption is charged
according to the going rate. Workers on the upper salary band receive 6 kilolitres of free
water. Where there is no water meters, tenants are charged according to the average.

The racial segregation in residences was attributed to the apartheid era dispensation.

It was reported that the hospital was downscaled into a clinic because of licensing issues.
However, it was reported that access is open to everybody in cases of emergency and health
care is available on call.

It was reported that bursaries were centrally administered before 2009. After that, the school
bursary schemes were introduced at schools. The bursary scheme specifically for Finsch
community is to be established.

On accessibility of community halls, it was reported that the community halls are owned by
companies.

On the allegation that DBCM was being sold, it was explained that due to funding
challenges, various options to arrest the situation were being explored which amongst others
included sourcing additional funding; joint ventures or getting an additional partner,
otherwise a decision had not been taken and the community and DMR will be informed as
soon as it is taken.

It was also explained that Lime Acres is a private land however, a process to proclaim it as
a municipality is underway. Many challenges were a result of a legacy of the past which
has been inherited and carried through generations.
9.
Meeting with the Trust Funds
25 OCTOBER 2011
9.1
PAGE: 172 of 329
Namaqua Diamond Fund Trust
The meeting with the Namaqua Diamond Fund Trust (NDFT) emerged from the meeting that
the Committee had with the Trust on Wednesday, 03 November 2010 in Parliament. During
that meeting, the committee felt that matters were not correctly handled in the NDFT as trustees
did not seem to understand their duties. They were ignorant of the proper procedures to be
followed with the audit report. An advice was therefore given that forensic audit would give a
clear picture of the situation within the Trust. There was also a dispute that the NDFT had with
Mr. Losper, one of the trustees whose nomination was subsequently withdrawn by the former
Premier of the Northern Cape Province. The Committee advised the NDFT to appoint the
fourth person appointed by the current Premier as a Trustee in terms of Article 10.11.1(b) of
their Deed of Trust and discharge Mr. Losper as it felt that the trust deed was quite clear on the
matter, and there was no need for the NDFT to be taking legal advice. In that meeting, the
Committee therefore resolved to meet the NDFT in Kimberley in order to hear the report back
on the issues raised.
The NDFT reported as follows:

Rumour of documents being removed and destroyed to frustrate the investigation was
reported to be untrue.

On the 19th November 2010, NDFT had a meeting regarding the followingo Forensic investigation into its affairs;
o Replacement of Mr. Losper; and
o Corrective action-cost saving.

Resolutions of the meeting were as followso Forensic investigation was agreed to;
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o Replacement of Mr. Losper was to be fast-tracked; and
o Costs saving measures were to be explored.

NDFT had community meetings in an attempt to clear the cloud that was hanging over it.

NDFT was in the process of drafting a new budget with the intention on cutting costs.

Forensic investigation was expected to cost no less than R500 000.

Procurement of audit services was to be done through open advertisement on the media.
NDFT did not have any intention of using the current auditors.

Mr Losper was to be replaced with Mr Visser.

Mr. Losper would act on the post until the appointment of Mr Visser was finalised.

A meeting was scheduled for 2nd and 3rd December 2010 to resolve Mr Losper’s acting
status.
9.2
Sishen Iron Ore Company Community Development Trust Fund
The meeting with Sishen Iron Ore Company Trust Fund (SIOC-CDTF) emerged from the
Committee visit to the Sishen Iron Ore Company. During that visit, the Committee learnt that
there exists SIOC-CDT Fund which is also the sole beneficiary of three percent of the ordinary
shares of the Sishen Iron Ore Company. The Trust was established in September 2006 during
the unbundling of Kumba Resources into two companies. Communities eligible for benefit and
support from the Trust are the ones around Sishen, Sishen South and Thabazimbi mines.
SIOC-CDTF did a presentation that covered, inter alia, the following:

Share ownership of SIOC-DTF

Identified beneficiaries, which are:
o Gamagara Development Forum: 30 percent
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o Kgalagadi Poverty Node Charitable Trust: 30 percent
o Maphalane Disabled Children’s Trust: 10 percent
o Tsantsabane Community Development Forum: 15 percent
o Thabazimbi Community Development Forum: 15 percent

Distribution of Trust income

Trust Focus Areas and Benefit Activities, which included:
o Welfare and humanitarian
o Health Care
o Land and Housing
o Conservation, environment and animal welfare
o Education and development
o General: SMME Development

Financial overview, which was reflected as follows:
FUNDS
AMOUNT
Preference shares redeemed during August R458 million
2010 to settle Kumba Iron Ore loan to the
Trust
Total Funds approved and allocated to R70.97 million
Beneficiary Trusts to date
Active projects currently running
R21.80 million
Allocated to investment portfolio
R135 million
Quantum project approved for Community R33 million
investment (Ostrich Farm and Abattoir)
Indicative Net Asset Value of SIOC CDT +/-R5 billion
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(3 % shareholding)
It was also reported that a Memorandum of Understanding was to be concluded to clarify roles
of SIOC-DTF as opposed to that of KIO-SLPs.
10.
Community Meeting in Schmidtsdrift
10.1
Background
The Committee was supposed to visit the New African Mining in Schmidtsdrift. However, Mr
Deon Kotze, the Chief Executive Officer of the Mine responded to the invitation and informed
the Committee that the Mine was closed and therefore not operating, and that it was now being
sold to the new owners. The Committee then invited Mr Kotze for a briefing as to get the full
insight of the situation before meeting the Schmidtsdrift community. Mr Kotze reported as
follows:

The Schmidtsdrift community had 20 percent shareholding in Schmidtdrift Mining
Enterprises (SME).

SME operated the mine.

SME paid 5 percent royalties to Community Property Association (CPA).

SME had problems around 2008 and 2009.

SME was bought by New Africa Mining Company (NAM) in 2009.

Some workers were retrenched.

The mine was opened in April 2010 by NAM.

NAM employed 140 workers.
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
NAM was in financial distress around September or October 2010.

Department of Mineral Resources (DMR) issued a section 54 notice to the company.

NAM was approached by a company called Sign Post (SP) three weeks ago, with interest in
buying the mine.

SP was prepared to take over all liabilities.

If the deal goes through, SP will do rehabilitation for the first three months.

SP have financial resources to comply with all the requirements.
The Committee then decided to go to Schmidtdrift and have a meeting with the community in
order to understand issues from their perspective. The meeting was very robust due to the
divisions amongst the community.
This manifested itself in the manner in which the
community members carried themselves during deliberations.
10.2
Challenges raised by the community

Lonhro did not rehabilitate the land.

Schmidtdrift is a farming community and due to Lonhro failing to rehabilitate the land,
their stock has no grazing land.

Royalties have not been paid to the community.

There is no funding for youth development programmes.

Community does not benefit from the wealth of their land.

Community Property Association is not negotiating in good faith on behalf of the
community.

DMR officials were regarded as corrupt.

Community objects section II.
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
PAGE: 177 of 329
The mine had been operating until recently when DMR did inspection and closed the
mine due to its condition.

The mine was issued with a prospecting permit not a mining one, but it was conducting
mining activities.
11.
Community meeting in Delportshoop
11.1
Concerns and comments raised by the community

The community asked Parliament to ensure that BBBEE companies are favourably
considered when mineral rights are granted.

They proposed a review of granting of mineral rights to some companies and mentioned
Scarlet Sun in particular.

The afore-mentioned company was granted a mining permit on land (Sydney) that was
subject to a land claim. The community has tried in vain to resolve this matter with DMR at
both regional and national level and therefore sought the intervention of Parliament.

The community raised concerns about fronting by BBBEE companies, which they alleged
was exacerbated by DMR not doing due diligence before granting rights or permits. The
consequence of this phenomenon was the lack of skills transfer as the BBBEE companies
were paid out without any involvement in actual operations of the business.

A concern was raised about the hijacking of small mining companies.

The committee was provided with documentary proof of permit being taken away from the
community in 1993.

The committee was also informed that the mining companies were not employing the local
communities as agreed. The committee was told that mining companies were transporting
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people from the North West, in particular, to come and work in the mines in the Northern
Cape.

A complaint of people being evicted from the land and the graves being exhumed was also
raised.

The diamond mining companies were singled out for not contributing to community
development.

The Community Property associations (CPA) were accused of taking names and curriculum
vitas (CVs) from the community and using them for enriching themselves.

There was a complaint about the prevalence of diseases like tuberculosis since the advent of
mining in the area.

Other concerns raised included lack of regular auditing of social and labour plans and health
and safety issues that were not being addressed.

The newly elected secretary of the Sydney CPA reported that an inquiry into the land claim
was directed to the Land Claims Commission and to the Presidency. The Presidency
delegated the Chief Commissioner to mediate the disputes. The problem that came up was
that community members who accepted compensation also wanted to benefit from land
restitution. This led to disputes among the community members that are evidenced by Court
Orders.

The ANCYL chairperson reported that the community was promised 200 jobs before the
2010 soccer world cup tournament but only 30 were provided.

The branch secretary of the ANC raised concerns about the closed mines that were not
rehabilitated.
11.2
Remarks by the committee
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
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The chairperson of the committee informed the community that the committee was
supposed to meet representatives of Scarlet Sun 15 but were informed that the directors of
the company had commitments until January 2011. However, the committee made a
commitment to return to Kimberley specifically for Scarlet Sun.

The community was also informed that Parliament requested a list of all operating mines in
the Northern Cape and once it is received, the committee will analyse it and act accordingly.

The chairperson informed the community that section 47 of the MPRDA made provision for
withdrawal of rights under certain circumstances.

It was explained to the community that the requirement for consultation of host
communities in the MPRDA is to deal with issues like land claims disputes and removal of
communities residing where minerals have been identified. Consultations are expected to
conclude agreements on issues like relocation of graves. However, the committee identified
a problem with most CPAs that are consulted by companies as representatives of the
communities but do not give feedback to communities.

The committee acknowledged the incapacity related problems of DMR and committed to
discussing this matter with the Ministry and Department of Mineral Resources. The issue of
the Regional Manager not going out to do inspections is going to be discussed with the
relevant official.

The committee will follow up on the letters provided to it relating to the taking away of
mining permit from the community in 1993.

The chairperson conceded that despite the good mining laws, communities in general and
small scale miners in particular are not benefiting from mining but are used as fronts by big
mining companies for the sake of compliance to legislation. However, the purpose of the
Small Scales Miners Strategy is, among other things, to open space for small scale miners
and combat fronting.
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
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The community was told that all mining companies that are awarded mineral rights make
commitments to government through SLPs to develop host communities and labour sending
areas. Municipalities are expected to consult communities through Integrated Development
Plans (IDP) to agree on projects for SLPs.

It was explained to the community that some of the problems associated with municipalities
are as a result of the current budget allocation system that rely on provincial population
statistics to determine the amount to be allocated. However, this system is being reviewed to
consider the socio-economic indicators of the provinces.

The committee made a commitment to approach whoever needs to be approached to resolve
the issues raised by the community.
12.
Findings
The Portfolio Committee on Mineral Resources, having met with all stakeholders as mentioned
above made the following observations:

The Committee found it disturbing that DMR regional manager in Kimberley did not know
about the sale of Lonhro, which was later confirmed by the inspector assigned to the area.

State machinery is not proactive in making sure that the provisions of MPRDA are
implemented.

DMR’s lack of capacity and lack of will to enforce laws exacerbate these problems that
exist in the Northern Cape.

The Regional office in Kimberley does not respond adequately to those who want help.

The Committee is deeply dismayed by the perceived lack of commitment by DMR officials
who are charged with ensuring that legislation is enforced to the fullest.

DMR does not respond to correspondence as alleged by NUM representatives.
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The Committee noted the strides made by Kumba Iron Ore in addressing issues of
accommodation in the mine as single hostels are being upgraded and houses for married
couples are in the process of being constructed.

The Committee also noted with concern that 50% of Kumba Iron Ore employees are
contract workers who are exposed to downward variated labour rights.
13.
Recommendations
The Portfolio Committee on Mineral Resources having heard evidence from all stakeholders
listed above recommends the following:

DMR to be vigilant and strict in ensuring compliance by mining companies.

DMR and De Beers to sort out the discrepancy around the term of De Beers’s mining
licence.

DMR to investigate the allegations that Lonhro has been contravening the conditions of its
permit – mining instead of prospecting

DMR to furnish information on whether it is true that a prospecting permit was granted for
25 years to Lonhro.

The Committee should discuss lack of capacity within DMR, particularly concerning the
Inspectorate.

DMR should furnish the Committee with copies of non-compliance notices issued to mining
companies.

The Regional Office of DMR should furnish the Committee with a list of all mining rights
issued and the operating mines in the Northern Cape.
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The Committee should get progress with regard to the investigation of the allegations by the
former employee of termination of employment as a result of incapacity by the De Beers
Finch Mine Human Resources Department.

The Committee should monitor assistance provided by De Beers Finsch mine to the local
schools to ameliorate the burden on parents.

NDFT should furnish the Committee with copies of the resolutions of the NDFT meeting.

Committee should obtain the audit report of the NDFT and progress on the replacement of
Mr Losper with Mr Visser.

The Committee should arrange a meeting with Scarlet Sun 15.

The Committee should follow up on letters regarding taking away of mining permits in
1993 from the community of Delportshoop.

The Committee should include PPC and Idwala companies when scheduling the next
oversight visit to the Northern Cape Province.

NUM should sit down with women working underground and hear the challenges they face
and sit down with management to sort out those challenges.
12.
Conclusion
The Committee noted all the issues raised by the stakeholders. It was clear that issues raised by
the communities were similar and were revolving around the implementation or nonimplementation of Social and Labour Plans. Another common issue raised by the communities
was the lack of consultation by the Community Property Associations. The committee
acknowledged the lack of capacity in the DMR as a contributing factor to some problems
relating to non compliance. However, noting from the deliberations, it would be more fitting if
DMR officials who are at the heart of these issues are present at all times so that they can give
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clarity on allegations that are levelled against them in order to curb distortion of facts. It is
worth noting that communities see DMR as collaborating with mining companies and as such is
unable to bring to book those companies that are breaching the mining laws.
This is
corroborated by the remarks that were made insinuating that DMR officials are corrupt, take
bribes and some are racist. DMR’s reputation is tainted and aggressive intervention measures
to redress the situation must be employed. The committee will address these concerns with the
DMR.
Report to be considered.
4. Report of the Portfolio Committee on Mineral Resources on its oversight visit to Mintek on
4-5 August 2010, dated 10 November 2010
The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to
MINTEK, reports as follows:
1.
Aim of Visit
The Portfolio Committee on Mining undertook a visit to have a first hand experience of Mintek
operations, in addition to the workshop that took place in Mossel Bay and also to identify any
challenges that might be faced by Mintek.
2.
Background
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MINTEK has become a leading provider of minerals processing and metallurgical engineering
products and services to industries world-wide. The objectives of the MINTEK are:

To drive stakeholder and customer satisfaction by the development of world class
products and services;

To develop and maintain effective and streamlined processes, using appropriate tools
and methodologies;

To achieve sustainable revenue and profit growth; and

To create a world class Geosciences organisation where our people can grow and
perform optimally
3.
Composition of Delegation
3.1
Parliamentary Delegation
The delegation comprised of the Chairperson of the Committee and Leader of the delegation,
Mr MF Gona (ANC), Mr C Gololo, Mr MR Sonto (ANC) Mr E Mtshali (ANC) and Mr E J
Marais (DA)
Accompanying the committee was the Committee Secretary Miss Ayanda Boss, Committee
Assistant Xolisa Mnyute and the Researcher Mr Sibongiseni Ngcobo
3.5
MINTEK Delegation
The MINTEK delegation comprised Mr A Mngomezulu (Chief Executive Officer), Ms S
Bopape (General Manager-Corporate Services), Dr M Motuku (General Manager-Research and
Development), Dr R Paul (General Manager-Business Development), Mr S Simelane (General
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Manager-Finance), Mr P Craven (General Manager-Technology), Ms Z Dennison (Senior
Events and Conference Coordinator) and Ms F Tanjekwayo (Events Coordinator).
4.
MINTEK Tour
Members of the committee were taken through the divisions of Mintek, which include the
following divisions:
4.1
PDD Drying Plant
The committee members were taken through the tour of the facility, which occupies 25 000m².
Members were informed about the main function of Mintek, which is technology development
with its attendant problem of the consumers that are not sure if it is going to work under normal
conditions. This has resulted in Mintek developing pilot projects to test the feasibility of its
technologies. An example of this is the Smelter technology for platinum. However, Mintek has
scaled down on its pilot projects because of an economic downturn. The Mintek plant consumes
seven mega watts of electricity, three of which are channelled to the furnace. The plant can
withstand 24 hours of electricity outage using its generator. Mintek buys electricity from the
Johannesburg City Council and is currently negotiating favourable rates. Mintek ensures that it
is conducting its operations without polluting the environment. It has two slime dams for fluid
waste. Water is drained from the waste and channelled to the water treatment plant. The solid
waste is taken by the client companies for disposal. The plant also has four bore-holes to
constantly monitor ground water for any pollution from activities of Mintek. The total staff
complement of Mintek is 760 and about 40 percent are scientists.
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4.2
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Guest House and Club House
With the new laws the guest house is being utilised as a hostel for people who are doing
training at Mintek.
The Club House is utilised by staff of Mintek who contribute R40. 00 per month for
membership. It is opened from Monday – Friday from 16:30 and on Friday is operating from
15:30.
4.3
Clinic
Mintek has a fully operational occupational health clinic that is managed by professional nurses
with the medical doctor visiting once a week. The clinic has an Employee Assistance
Programme (EAP). Other occupational health services such as lung function tests, audiometric
and optometry services are also available. The clinic treats minor ailments and serious medical
conditions and injuries are referred to the hospital.
4.4
Library
Mintek houses a well resourced library whose archives include technical reports kept since the
establishment of Mintek around 1934. The internal and external clients of the library are the
Mintek researchers and mining companies respectively.
4.5.
Biotechnology
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Biotechnology Division has been involved in the development of bioleaching for the past25
years and offers a full range of services for the evaluation and implementation of bioleaching
process for gold, uranium and base-metal projects. Technologies for the tank bioleaching of
complex base-metal sulphide concentrates and for heap bioleaching of low-grade chalcopyritic
ore, have been demonstrated at large scale.
4.6
Advanced materials
The Advanced Materials Division (AMD) is a dynamic and multi-disciplinary division that
addresses the need for specific research into the end-use of metals in the manufacturing,
fabrication and mining industries. AMD combines the skills of highly qualified and experienced
researchers with a comprehensive variety of specialised equipment, some of which is unique in
South Africa and undertakes contract research and development as well as fundamental
research in the following areas:
Precious metals research

Advanced alloys research and development.

Materials Science (Nanoscience and Nanotechnology) in the specific fields of Water,
Health and the Environment.

Catalysis.

Fuel cells research and development.

Precious metals based drug therapies.
4.7
Small-Scale Mining and Beneficiation
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It was reported that the role of Mintek Small Scale Mining and Benefician (SSMB) Division is
to create sustainable small scale mining enterprises which will, in turn, create jobs and
opportunities for economic development and poverty reduction. SSMB’s beneficiaries include
existing small-scale mining operators, aspirant small-scale miners and crafters that use mineral
and metallurgical resources as a raw material. SSMB provides support to SMME’s by
conducting test work towards feasibility studies and access to appropriate technologies. Mintek
SSMB has been involved in many projects which included:
4.7. 1 Minerals for agriculture
Many small-scale farmers are unable to afford the high cost of fertiliser, mainly due to the
expense involved in transporting it. Many basic igneous rocks contain the trace elements and
minerals that are beneficial to plant growth. Mintek examines the rocks found in different areas,
and if they are suitable, assist the local people to set up small processing plants.
It was reported that Mintek has just received a funding from the Department of Science and
Technology for a project called Biomin manufacture. Biomin is another form of soil ameliorant
where various minerals and organic waste products are tested to identify suitability for use in
the fertilisation of plants. Once suitable recipe is found, the local communities are helped to set
up small processing plants and farmers are advised on the use of the product. This type of
material has also been used to fertilise waste dumps such as those from asbestos mining that are
being rehabilitated.
4.7.2
iGoli Project
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The iGoli mercury-free gold extraction process was designed especially for use by small-scale
gold miners. Mercury pollutes the waterways and plant life, and slowly poisons people who use
it or even just live nearby. A small plant has been designed, which make the process easy to
operate.
This technology has been transferred to miners in Tanzania, the DRC, Mozambique, Peru and
other places, and plants have been installed in Gauteng as well as Tanzania. Research is
ongoing to ensure that the waste products from each operation are gentle. Upstream processing
equipment has also been designed and developed to assist the miners in processing their raw
material in preparation for feeding to the iGoli process. This equipment includes a vibrating
strake, and a manual centrifugal separator, which is currently under construction.
4.7.3
Ceramics
The Mintek ceramic laboratory maintains a clay database which looks at properties of clay from
various deposits around the country, which are matched with identified poverty nodes for
possible sustainable livelihood interventions. SSMB assists in the setting up of ceramic
(pottery) SMME’s and production facilities. This includes facilities, training and incubation of
the beneficiary entities.
4.7.4
Beads Making
Almost all the beads used in the industry are imported and in an attempt to create jobs, Mintek
developed a technology for manufacturing beads with an African look about them from
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recycled glass bottles. The 800 degrees room temperature for making beads is applicable.
Beads are made by small scale miners and the marketing team from Mintek sell them.
4.8
Mineralogy
Mineralogy division runs a dedicated Diamond Provenance Laboratory, funded by the SA
Diamond and Precious Metals Regulator (SDPMR) in order to determine diamond shape,
colour, surface feature and trace element and equipped with a state of the art Laser Ablation
Inductively Coupled Plasma mass Spectrometer (LA-ICP- MS). Diamond shape, colour,
surface feature and trace element can be reported for any submitted sample set at no cost to
Mintek, in return for use of the information for forensic database purpose.
Mineralogy during exploration provides an early indication of likely later extraction processes
required. It can also be used to constrain end-member variability for geometallurgical mapping
and
4.9
for
process
control
modelling.
Pyrometallurgy
It was reported that Mintek's Pyrometallurgy Division carries out high-temperature research and
process development in the following fields:

DC arc furnace smelting

Pre-treatment, prereduction, fluidized-bed technology

Fuming

Condensation
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
Process design and simulation

Metallurgical waste treatment

Base metals

Light and refractory metals

Stainless steel and ferro-alloys

Precious-metals concentrate smelting
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Mintek is a world leader in the application of DC-arc furnace technology. The Pyrometallurgy
Division's greatest strength lies in its range of transferred DC- arc furnaces (single graphiteelectrode furnaces) that are available for test work. The largest of these is rated at 5.6 MVA,
and is usually operated continuously between 1 and 2 MW. Campaigns of up to 28 days'
duration, during which some 50 to 600 tons of feed material are smelted, can be undertaken.
Three smaller furnaces, ranging from 30 to 500 kW, are used for smaller-scale tests.
Work has also been carried out using AC arc furnaces (40 to 200 kW) in either slag-resistance
or submerged-arc mode. Experience has been gained in treating sulphide concentrates,
ferroalloys, direct stainless steel, and fused-cast refractories.
DC-arc furnace technology has been shown to have advantages over conventional techniques in
several applications. Technology transfer has been achieved for ferrochromium smelting
(40 MVA, and 62 MVA) and ilmenite smelting (25 MW, and 35 MW). A 40 MVA furnace for
the recovery of cobalt from slag is currently under construction. The next most likely industrial
applications are nickel laterite smelting, and the fuming of zinc from slags or other residues.
4.9.1
Ferrochromium
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The demand for stainless steel is growing at a rate of 3 to 6 per cent per annum. South Africa is
one of the world's lowest-cost producers of ferrochromium, and in order to retain this
competitive advantage, research and development has been initiated in a number of new fields.
The DC-arc process allows the use of unagglomerated chromite fines and cheaper, non-cooking
coal. Mintek's technical leadership and support led to the commissioning of the world's largest
DC-arc furnace for the smelting of ferrochromium at a South African ferro-alloys plant.
Samancor's 40 MVA furnace, located in Krugersdorp, is regarded as one of the world's lowestcost units for the production of ferrochromium.
4.9.2
Ilmenite smelting
Ilmenite from beach sands is smelted to produce a titania slag suitable for the production of
TiO2 pigments. The high electrical conductivity of titania slags and the accurate control of the
slag composition effectively rule out the use of conventional submerged-arc technology for the
smelting of ilmenite. A process, based on single hollow-electrode DC-arc furnace technology,
was developed by Mintek and Anglo American Corporation for the $340 million Namakwa
Sands project. A 25 MW furnace, the first of two to be built, began production of illmenite slag
and pig iron in 1995.
4.9.3
Recovery of cobalt from slags
Valuable metals, such as cobalt, can be recovered from slags by treating these waste materials
with a carbonaceous reducing agent in a DC-arc furnace. This technology is applicable to the
recovery of cobalt from copper reverbatory furnace slags, as well as to the recovery of nickel,
cobalt, copper, and platinum group metals from furnace and converter slags in plants treating
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nickel sulphide concentrates. Pilot-plant test work at Mintek has demonstrated recoveries of
98% for nickel and over 80% for cobalt, at power levels of up to 600 kW.
4.9.4
Steel-plant dust treatment
Steel-plant dusts give rise to disposal problems because they contain hazardous heavy metals
that pollute groundwaters. These materials are extremely fine, and are thus difficult to treat.
Mintek has successfully applied its DC-arc technology to the treatment of carbon- and alloysteel dusts. The process has the following benefits.

Valuable metals such as zinc are concentrated in the vapour phase, and can be condensed
directly from the furnace off-gases.

The recovery of alloying elements such as chromium, nickel, and molybdenum in the hot
metal exceeds 90%.

The resulting innocuous slag can be safely disposed of, as it complies with US
environmental legislation.
4.9.5
Magnesium metal
Magnesium is an important component of light alloys used in the aerospace and transport
industries, but production of the metal requires the use of more sophisticated technology than
for most other metals.
Mintek's use of DC-arc technology has resulted in the production of high-purity magnesium
metal. The reaction is carried out at atmospheric pressure, instead of under a vacuum as in the
conventional process. Further development of the condenser to improve magnesium yield is
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required, which would then result in a process with lower capital costs, no problems with
vacuum leakage and the consequent reoxidation of magnesium and economic viability on a
much smaller scale than the conventional electrolytic process
4.9.6
Platinum-group metals
Major operating problems occur when platinum concentrates from ore bodies containing high
chromite levels, such as the UG-2, are smelted by conventional techniques. A Mintekdeveloped smelting procedure overcame this problem, and paved the way for the commercialscale production of PGMs from the UG-2 reef.
Mintek has considerable expertise in the concentration and smelting of both conventional and
high-chromite-containing PGM ores. The information that has been accumulated enables the
performance of commercial plants to be optimized with a minimum of research and
development, although some testwork is always necessary. Matte smelting can be carried out
using the 300 kVA submerged-arc furnace, and a top-blown rotary converter (TBRC), of
15 litre liquid capacity, has been developed for the conversion of copper-nickel mattes.
4.9.7
Improved processes
Electrical energy savings of 10 to 15 per cent can result if the feed materials to conventional
furnaces are pelletized. The Division has the facilities and expertise to establish the range of
optimum particle-size distribution, binder addition, and induration conditions for particular
ores. A versatile pelletizing facility that can treat fine material at rates of up to 1 t/h is used for
these investigations. A range of laboratory equipment, including a high-temperature
compression-test apparatus, enables pellets to be tested under a variety of conditions.
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Pre-reduction processes are investigated with the use of Mintek-designed thermogravimetric
analysers, which can test samples of material with a mass of up to 60 g. Preheating and prereduction processes on a large scale are investigated with the aid of a computer-controlled
bubbling fluidized-bed facility. Continuous tests can be carried out at temperatures of up to
1100°C.
Two submerged-arc furnaces are available for conventional smelting tests. The larger threeelectrode furnace is rated at 300 kVA, and the smaller single-phase two-electrode furnace at
60 kVA.
4.10
Hydrometallurgy
Mintek has facilities to undertake hydrometallurgical projects from basic flowsheet design
through to laboratory test work, piloting, and full-scale plant commissioning. This service
includes optimisation of process conditions based on experimental work and computer
simulation. These results are used by the client to determine the most cost-effective process
route for a specific application. A professional team of process chemists and engineers,
analysts, mineralogists and engineering workshops, work together in close collaboration
throughout a project and assist the client and engineering contractor with the final design and
feasibility studies.
4.11
Mineral Processing
Mineral Processing Division at Mintek has a fully equipped sample preparation department. Its
sole function is to provide support for small, medium, or large-scale operations both inside and
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outside Mintek with preparation of ore samples. This involves crushing, milling and blending of
samples.
4.12
Analytic Services
Analytic Services is a well-established inorganic analytical chemistry laboratory that specialises
in geochemical and metallurgical analyses. They provide this specialised analytical service to
the mineral, metallurgical and related industries, using state-of-the-art instrumentation for a
variety of techniques.
The mission of analytic services is to provide timeous, high calibre, analytical technical support
and services for the research and development activities of Mintek and Industry. Furthermore
conduct appropriate high-calibre research and development in analytical science and to apply
the results for the maximum benefit of other Mintek Divisions and the Mining, Metallurgical
and related Industries.
They employ highly skilled scientists and analysts that are backed-up by a top-quality
consulting team, all operating according to ISO standards. This division has a wide range of
facilities that ensures a quality one-stop for exploration and general analytical services.
Members of the Committee were taken through the following subdivisions of Analytic Services
4.12.1 Fire Assay
FA Fusion
The appropriate amount of a sample is weighed on an analytical balance, mixed with lead
collection flux to a homogeneous state (uniform colour) and loaded into a fusion furnace at
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1150oC for 50 minutes. The reducing conditions will convert litharge (lead oxide) to metallic
lead that will form a lead and three of the PGMs (Pt, Pd, Rh) and Au complex.
Cupellation
The lead button, after being hammered into a form of a cube, is loaded into a cupellation
furnace at 1 000oC for an hour. The lead will be absorbed by the cupel and some is oxidised
because of the presence of atmospheric oxygen in the furnace. When the cupellation is
complete the PGMs & Au and Ag (added as silver nitrate) prill will be left on a hollow surface
of the cupel.
Total Au
Fusion and Cupellation stages are as described above. After the cupellation stage, the silver,
PGMs and Au prill, is flattened and transferred into a parting porcelain crucible, 30% HNO3
added to remove silver, dried and analyzed by weighing on the analytical balance and a simple
calculation done to determine the PGM concentrations. The detection limit is 0.08 g/t.
PGM+Au
Fusion and Cupellation stages are as described above. After the cupellation stage, the silver,
PGMs and Au is transferred into a multi-hole cupel and loaded into a higher temperature
furnace for 1,5 hours. It is then removed, left to cool and weighed on the analytical balance and
a simple calculation done to determine the PGM concentrations. The detection limit is 0.28 g/t.
4.12.2 XRF (X-Ray Fluorescence Spectrometer)
X-Ray Fluorescence (XRF) is well-known for its accuracy and reliability. Solid sample types
analysed range from geological (exploration) samples to process materials for the determination
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of major, minor and minor to trace elements. Our energy-dispersive (EDX) instrument is ideal
for quick, semi-quantitative scans of unknown solid or liquid sample matrices.
For quantitative analyses, samples are prepared by powder briquette or fused beads, depending
on the sample matrix and the client’s request. Methods are set up on the EDX instrument and
our two wavelength-dispersive instruments for the analysis of a range of sample types. Methods
may also be set up for client-specific requests.
4.12.3 ICP-MS (Inductively Coupled Plasma-Mass Spectrometry)
Inductively Coupled Plasma-Mass Spectrometry (ICP-MS) is a trace technique that analyses in
the low part-per-billion (ppb) range. The uniqueness of this technique lies in the fact that it
utilises the naturally occurring isotopes of all analysable elements to correctly determine the
concentration of an analyte. The technique is especially suited for environmental and water
analyses, impurities in high-purity end-products of 2 to 5 nines quality, and soils or ores for
trace and ultra-trace elements.
5.
Findings and recommendations

Funding remains the main challenge for MINTEK.

Young African graduates leave the company for better incentives, resulting in the entity
not reflecting the demographics of the country in its employment.

MINTEK supports the establishment of state owned mining company.

MINTEK has high levels of technical and professional expertise in the field of
mineralogy.
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
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MINTEK has huge potential to assist the country in the local beneficiation of all our
minerals.

The country must increase its investment in research capabilities.

MINTEK’s expertise should continue to be used and promoted worldwide.

MINTEK should continue developing scientists from within the country, concentrating
on young and historically disadvantaged South Africans.
6. Conclusion
Members of the Committee appreciated the work that is done by MINTEK and encouraged
MINTEK to retain and attract the graduates.
Report to be considered.
5. Report of the Portfolio Committee on Mineral Resources on its oversight visit to the
Province of the Northern Cape, on the 26 – 30 July 2010, dated 10 November 2010
The Portfolio Committee on Mineral Resources, having undertaken an oversight visit to
Northern Cape, reports as follows:
1.
Introduction
The Portfolio Committee on Mineral Resources (the Committee) undertook an oversight visit to
ascertain if provisions of the law, such as Mineral and Petroleum Resources Development Act
(No 28 of 2002), Mine Health and Safety Act (No 29 of 1996), Broad-based Socio-economic
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Empowerment Charter for the South African Mining Industry (Mining Charter) and Social and
Labour plans, are being observed. Another objective of the oversight was to also observe the
impact of the economic downturn in terms of investments or disinvestments in the mining
industry in the Province of Northern Cape.
2.
Background
The Republic of South Africa is endowed with mineral resources and they play a key role in the
economy of the country. South Africa accounts for 88 percent of known global resources of the
platinum group, 80 percent of manganese, 72 percent of chrome, 32 percent of vanadium and
30 percent of gold. The Province of the Northern Cape is one of the provinces that are wealthy
in terms of mineral reserves. The province accounts for a greater percentage of diamond
reserves. Other minerals that are mined in the Northern Cape include iron-ore and manganese.
However, the poverty levels are high in the Northern Cape. This is one of the reasons that
necessitated an oversight visit to ascertain how the mineral wealth of the province can be
leveraged to improve the lives of communities that are surrounding mining areas.
3.
Composition of Delegation
3.3
Parliamentary Delegation
The delegation comprised of the Chairperson of the Committee and Leader of the delegation,
Mr MF Gona (ANC) , Mr C Gololo (ANC), Mr MR Sonto (ANC) and
Mr E J Marais (DA)
25 OCTOBER 2011
3.6
PAGE: 201 of 329
The Department of Mineral Resources
The Department of Mineral Resources (DMR) was represented by Chief Director of Mineral
Regulations, Mr Michaels Oberholzer, Deputy Director Mineral Laws, Mr Jasper Niewoudt,
Regional Manager, Mr Pieter Swart, , Inspector of Mines (Springbok) , Mr Willy Spiessens,
and
Inspector
of
Mines
(Kimberley),
Mr Tau Koaho.
3.4
Municipalities
The Richtersveld Local Municipality was represented by its Mayor Mr L Ambrosini, and the
Councillor, Mr Arthur Jansen. The Kamiesberg Local Municipality was represented its Mayor,
Mr Martin Klaase. The Khai-ma local Municipality was represented by its Mayor Ms L B
Groenewald
and
Acting
Municipal
Manager,
Mr P J Baker.
3.5
De Beers- Port Nollorth
De Beers was represented by its Operations Manager, Ms Adre Nelson, Logistic Controller Mr
T.
3.6
A
Philander
and
MRP
Controller,
Mr
A.
van
Der
Schiff.
De Beers – Kleinzee
De Beers Group was represented by its Deputy Chairman, Mr Manne Dipico, , Acting CEO,
Mr Barend Peterson Head Public and Corporate, Mr Sakhile Ngcobo, Affairs Project Manager-
25 OCTOBER 2011
PAGE: 202 of 329
Town Proclamation and LED, Mr Rob Blake, , Site Manager, Mr William Macdonald Chief
Operating Officer, Mr Mike Brown, , Project Manager, Mr Andy Taylor Engineering Lead, Mr
Donly Cloete, , Commercial Services Lead, Mr Johan Kruger HR Lead,, Ms Annami
Engelbrecht, Finance Director, ,Mr Lionel Brenner and Security Lead, Mr Lester van Rooyen,
3.7
NUM Representation
The trade Union was represented by its Chairperson (Western Cape), Mr Abe Maarman, ,
Branch Chairperson,
Mr Granville Meyer, , Branch Secretary, Mr Frikke Swart, Branch
Member,, Mr Joe Saal, , Women Structure (Baken), Ms Thobeka Sajini, Member, Mr Willy
Links and Member Mr B Deli,.
3.8
Transhex- Baken
Transhex was represented by its Executive Director, Mr M Carsterns, , Chief Executive Officer,
Mr L Delport, Legal and Stakeholder Relations, Mr V Madlela, Group Manager Business Unit
Manager: Mining –Mr G Clote, , General Manager, Mr H Hening Health and Safety Manager,
Mr P Losper, and Supervisor Mr DM Roberts,
3.9
Alexkor – Alexander Bay
Alexkor was presented by its Chief Executive Offficer, Ms Khethiwe Mcclain Acting Chief
Financial Officer, Mr Berno Lategan Mine Engineering Mr Mike Mpanza and Deputy mine
Manager Mr W Basson.
25 OCTOBER 2011
3.10
PAGE: 203 of 329
Black Mountain Mine- Aggenys
Black Mountain was represented by its Stakeholder Relations Manager, Mr PA Clathe,
Environmental Manager, Mr P Venter Risk Co-ordinator, Mr L Carsterns Chief safety officer,
Mr H Dippenaar Safety Officer, CM Kotze, Safety Officer, JJ Pretorius, Safety Manager , Mr
E Raymond, , HR Manager, Mr M van der Mescht, and HR Training Instructor Mr S Visagie.
4.
Briefing by the Department of Mineral Resources
The Committee met with the Department of Mineral Resources before the scheduled meetings
with the mining companies and the community in the Northern Cape.
The purpose of the meeting was to establish if the mining companies comply with the
provisions of the Mineral Petroleum (MPRDA) and the Mining Charter particularly Social and
Labour Plans. The Committee needed to determine if the Mine Health and Safety regulations
are observed by DMR.
Mr Jasper Niewoudt briefed the Committee that the Regional Office of DMR in the Northern
Cape is in Kimberly, however due to the vastness of the province, the sub-regional office was
opened in Springbok.
4.1
Briefing by DMR on De Beers Operations
It was reported that De Beer’s licence in Port Nollorth is for marine mining. There are 70
employees in the vessel at each given time. They work 20 days on duty and 20 days off-duty
25 OCTOBER 2011
PAGE: 204 of 329
shift, implying that the total number of employees is 140. The mining licence has been
executed and the Social and Labour Plan (SLP) attached to it has also been approved. SLP
compliance is to be done by the DMR sometime in 2010.
4.1.1
Land Operation
De Beer’s land mining licence is for the Kleinzee mine.
The mine stopped all mineral
extraction operations and is currently busy with rehabilitation of the land. The stoppage of
mining operations has resulted in retrenchments leading to hardshipin the town whose only
economic activity is mining. However, De Beers indicated that it will open operations later at a
smaller scale. De Beers applied for conversion of six mining licences from the old order
mining rights (those granted in terms of the MPRDA) to the new order rights (those granted in
terms of the MPRDA).
These licenses have not yet been executed but their SLPs were
approved by DMR. De Beers also applied for a prospecting licence for gold, which is still
being processed.
The rehabilitation along the sea is reported to be expensive, amounting to approximately R20
000 per hector. The process is expected to take years. However, the DMR does not anticipate
any problems since the mines are not derelict and ownerless. De Beers has set aside a
substantial amount for rehabilitation. The Richersveld Mayor expressed concerns with the De
Beers SLP as the projected costs of the project is R12 million and the company has only
allocated R9 million.
4.2
Briefing by DMR on Transhex operations
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PAGE: 205 of 329
The licence for Transhex is for operations at sea and land. Concessions for marine mining are
for level (a) and (b), which is shallow water mining. Baken mine is a land based operation of
Transhex. The mining licence was executed last year in August or September 2009. It is an
open cast mine stretching over approximately 70 kilometres of land.
Transhex has not
committed to full rehabilitation because of expenses involved but has a trust fund for
rehabilitation purposes. Transhex has committed to SLP. Transhex’s SLP involves upgrading
of schools, crèches and a tourism programme.
4.3
Briefing by DMR on Alexkor’s Operations
Alexkor operations are in Alexander Bay. Its operations were influenced by the land claims
settlement, in favour of the Richtersveld community. This led to Alexkor ceding the land
operations to the community, which formed the Richtersveld Mining Company (Pty) Ltd.
Alexkor and the Richtersveld’s community are supposed to form a Pooling and Sharing Joint
Venture (PSJV) in accordance with the Deed of Settlement Agreement. The Richtersveld
Mayor reported that the municipality will take over Alexander Bay in April or May 2011.
Alexander Bay will then be elevated to municipal standard. The work force in Alexander Bay
has been minimised. Provincial government is in charge of the hospital and the National
government is in charge of the schools. The provincial government has a memorandum of
understanding with the Richterveld Local Municipality. The Richtersveld’s Mayor estimated
poverty levels at 35 percent.
Furthermore, the Mayor of Richtersveld reported
that the
provincial government’s macro-economic plan was implemented whereby 200 community
members were employed.
4.4
Briefing by DMR on Black Mountain operations
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PAGE: 206 of 329
Black Mountain Mine employs more than 2000 employees. It is owned by Anglo-American
(74 percent) and Exarro (26 percent). SLP is in place and some projects were implemented.
Mining rights were executed.
4.5
Briefing by DMR on Health and Safety
The Inspector of Mines in Springbok, Mr Willy Spiessens reported that accident enquiries
involve taking of sworn statements, legal representations and fines of up to R1million. De
Beers, Transhex and Alexkor have the departments of Health and Safety. Health and Safety
statistics are kept in the regional office in Kimberly. It was reported that accident rate has
drastically dropped since 2007. De Beers reported 8 accidents over the last three years.
Alexkor reported 12 accidents over the last three years, one of which was fatal due to drowning.
Transhex reported 10 accidents over the last 3 years. Black Mountain had 24 accidents
including two fatalities.
5.
De Beers -Port Nolloth
Ms Adri Nelson indicated that the Head Office is based in Cape Town and the office of De
Beers in Port Nollorth is just the logistic office. It employs 14 permanent employees and 50
subcontractors which they supply with their own boats to mine in the sea.
The Committee was informed about marine operation, which uses the following three
techniques:
25 OCTOBER 2011
PAGE: 207 of 329
Deep Marine Mining
Shallow
Marine
Mining
Crawler

Driller
Pipes
The crawler is placed on 
The driller is put into the 
Shallow
the sea-bed to suck the
sea-bed to drill and suck
mining uses pipes
gravel
boat
gravel into the boat where
that are sunk into the
where it is sifted and
it is processed and the
sea-bed by divers to
stones that are 16 cm in
waste is thrown back into
suck the gravel into
diameter are kept for
the sea.
the
into
the
processing.
Divers
stay
boat through surveillance
up to an hour.

The number of days
The rest of the gravel,
spent mining in the
which is waste, is thrown
sea (sea days) is
back into the sea.
determined by the
Meeting with Port Nolloth Community
The following concerns were raised by the Port Nolloth community:

can
under the water for
weather.
5.1
for
It is controlled in the
cameras.

boat
processing.


marine
Inequitable access to sea concessions.
25 OCTOBER 2011

PAGE: 208 of 329
De Beers expressed willingness to relinquish dormant sea concessions to DMR as
opposed to contractors as per contactors request.

Members of the community requested an intervention of the Committee on the deal
between subcontractors and mining companies, which is believed to mining companies.
The community seeks to review the deal to ensure that it does not disadvantage the
contractors.

People are living in poverty despite the mineral resources endowment of the area.

Small-scale marine miners complained about the 5 per cent royalties BEING PAID TO
Trust Funds.

Mining companies are allegedly hoarding the mining concessions that they are not using
while the community does not have access to concessions.

Contractors have mobilised themselves into Equitable Access Campaign (EAC),
demanding that companies with dormant concessions relinquish them to contractors.

The community alleged that it is not informed about the trust fund called Namaqualand
Diamond Trust Fund. (NDTF).

It complained about lack of assistance for small scale miners.

Lack of evidence of implementation of SLPs.
6.
De Beers - Kleinzee
6.1.
General Overview
It was reported that the first diamond was found by Jack Carstens at Oubeep in 1925 and the
mining in Kleinzee began in 1927. In 1928 Cape Coast Exploration Company purchased “The
Kleinzee diggings”. In 1942 DBCM acquired Cape Coast Exploration Company and a licence
25 OCTOBER 2011
PAGE: 209 of 329
for area north of Buffels River was granted in 1956. The mining started in Langhoogte in 1967
followed by Koignaas in 1968. The first mariculture dam was built in 1999. The Diamond
Coast – Forever Namaqualand Tourism initiative was launched in 2001. The business model to
ensure sustainability was aligned in 2003. In 2008 talks of merger with Alexkor were
unsuccessful and De Beers entered into discussions with Transhex Group on the sale of
Kleinzee Mine, which were interrupted by global economic crisis. In 2009, talks with Transhex
Group resumed but were unsuccessful. The strategy was adopted to maintain minimal
production while focusing on rehabilitation and economic development.
6.2.
Safety, Health, Hygiene and Environmental
The Safety Manager reported that there were 2.84 million fatality free shifts since the last
fatality that occurred in June 2004 and zero lost time injuries for the past 30 months. De Beers
Group received 87 per cent compliance in the Presidential Audit that was done in 2009 which
compares favourable to other diamond mines. There was a marked decline in injuries between
1998 and 1999. It was reported that 2007 was not a good year for the company in terms of
safety since lost time injuries rose in 2007 to nine from zero in 2006. Two employees were
involved in a motor vehicle accident and two employees fell and sustained fractured ankles. In
2008, there was one lost time injury which occurred after the Christmas break.
6.3.
Impact on Employment Levels
It was reported that De Beers had downscaled to 92 employees in 2010 from 2310 in 2006 due
to loss making in the Namaqua Mine. From 2006 to 2008 a voluntary process was conducted
and from 2009 to 2010, retrenchments were effected. This exacerbated……
25 OCTOBER 2011
6.4.
PAGE: 210 of 329
Steps to Mitigate Unemployment
The Human Resources Manager indicated that an agreement was reached between National
Union and Mineworkers (NUM) and Management of De Beers Group where R7 000 will be
provided per employee for reskilling. Retrenched employees that are older than 50 years may
nominate a family proxy for reskilling. Formal communication to all retrenched employees in
this regard would be made by end of August 2010.
Retrenched employees may remain in free accommodation for 3 months to enable access to
Human Resources services for assistance with Curriculum Vitae writing and job seeking. The
Manager drew attention of the Committee members that retrenched employees have already
embarked on driver training (Code 8,10 and 14), HAZMAT training, Learnership completion
and requests for toolboxes have been granted. Management has reached an agreement with
NUM to rehire retrenched employees when the production picks up. Other companies that are
embarking on projects namely town services refurbishment and plant dismantling are
encouraged to recruit from the pool of retrenched employees where possible.
6.5.
Employee Housing
It was reported that all employees retrenched in 2009 and 2010, as well as current employees
have been afforded the opportunity to purchase houses in Kleinzee and Koignaas. The prices of
houses have been discounted by 30 – 50 per cent and by 2o per cent to other categories of other
employees. De Beers is in consultation with the NUM to discontinue practice of transporting
employees from Lomaggas as well as providing single status accommodation and subsidised
25 OCTOBER 2011
PAGE: 211 of 329
messing. These benefits are to be replaced by a monetary amount added to the employees’
salaries.
6.6.
Rehabilitation
De Beers is actively conducting earthmoving and ecological restoration and rehabilitation to
reduce the mining footprint. Furthermore, De Beers is exploring different land-uses as an
alternative to mining to create longer-term socio-economic alternative activity.
De Beers seeks other win-win opportunities to offset rehabilitation costs against economic
development projects. Kleinzee is defining a process for progressive reduction in the overall
liability through systematic sign-off of areas defined as rehabilitated (earthmoving and
restoration component).
The current focus is to make safe and investigate alternatives, engage the stakeholders,
implement agreed alternatives, achieve sign–off of 866 hectares by the DMR. Small scale
mining requires a rehabilitation plan which is being compiled at present
The mine has approximately 9.8 million carats inventory and 1.7 million carats in planning
inventory. The challenging economic factor is that Namaqua Mine has been making a loss for
several years and, historical mining method and infrastructure is not suitable to the remaining
resource.
6.7.
Social Labour Plan (SLP): Community Development and Poverty Eradication
Programmes
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PAGE: 212 of 329
It was reported that the following projects were in progress. The company continued
engagement with stakeholders to ensure that SLP commitments benefit the region that they are
operating in.
Projects
Total SLP (R)
Livestock Farmers/Gardens
600 000
Early childhood Development
630 000
Multipurpose Centre
1 250 000
Community upliftment programmes
1 000 000
HIV &AIDs
145 000
Rural Educational Assistance programme
Mathematics
and
Science
Schools
1 200 000
340 000
programme
6.8
Reasons to Proclaim the Towns
Having the current mining settlements of Kleinzee and Koingnaas proclaimed into public towns
is the key to:

Unlocking sustainable local economic development;

Diversification and development;

Reduction in reliance on mining; and

Improved regional socio-economic integration.
6.9
Kleinzee Abalone Farm
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PAGE: 213 of 329
Information on the Abalone farm was given as follows:

The first phase is a 100 tons per annum for production unit and it is under construction;

It is designed to be expanded in 100 tons per units;

The platforms are ready for 200 tons per annum production;

1,500 tons of water per hour (sea and recirculation pumping);

The 360 fibreglass tanks of 5x2 metres; Seven seaweed production dams for feeding,
water purification and heating;

Approximately 81 jobs were created with immediate effect and 182 jobs for full
production will be created.
6.10
Future potential for marine aquaculture
De Beers has identified future potential for marine aquaculture which will assist in :

Multifold expansion of current facilities;

Hatchery (short to medium term);

Ranching (medium term);

Expansion to processing, other Mari-culture and by-products;

Many other opportunities exist due to the availability of sea water and infrastructure;

Introduction of additional investors/marine aquaculture companies in the area.
6.11
Kleinzee Correctional Centre proposal
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PAGE: 214 of 329
De Beers proposed to have 1000 bed correctional facility at Old Dreyerspan single quarter
complex. It is aimed at youth between the ages of 18 – 25 years. This should consist of the
rehabilitation, training and re-integration of offenders. De Beers had already funded the prefeasibility study. The proposal is supported by the local communities and now needs the
Government support. The anticipated timelines for the project to kick off should be January
2011 to December 2012 provided the approval is been granted by December 2010.
6.12
Benefits
About four to five communities namely Richtersveld, Nama Khoi, Kamiesberg, and Namakwa
are the beneficiaries of the targeted trusts. The community ownership is 30 percent. The
Economic benefits will flow directly to local communities. The abovementioned communities
will take full control over the trust.
6.13
The Living Edge of Africa Project (LEAP)
The vision of the project is to recast the legacy of mining into a thriving economic hub and
model of sustainable development, creating low-carbon enterprises and jobs based on
conservation and innovative technologies.
Enterprise nodes create synergies around the use of seawater, freshwater, energy, nutrients,
humidity, temperature differentials and tourism or interpretive activities.
6.13.1 Project progress to date
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PAGE: 215 of 329
The pre-feasibility study was completed and reviewed in September 2009. The feasibility study
is underway regarding certain identified components and initiatives that form part of the
project. The Conversation International was contracted to conduct the study.
The Conservation International is contracted to conduct the fast-tracking of initiatives such as:

Land Art – pilot: has potential of alternative land use

Engagement with marine aquaculture investors: abalone farm at Michells Bay;

Feasibility of Seawater Greenhouses;

Institutional arrangements to be finalized

Investigation with respect to renewable energy (wind) ongoing;
The target date for the completion of the feasibility study is August 2010.
6.14
Wind Electricity Generation Project
South Africa needs additional electrical energy. Eskom is encouraging industry to construct
renewable energy power generators (wind, solar and water). Namaqualand coastline was
identified as a suitable region for wind power.
There is the great interest from many companies to construct wind farms. Fourteen companies
have asked to be included on the enquiry list and 4 were shortlisted. De Beers has made minedout areas available for wind power generation. The Companies have been invited to make a
proposal taking into account the interests of the local community and region. An area in the
South of Kleinzee has been identified as preferred site for ESKOM WIND 2 PROJECT . The
National Energy Regulator of South Africa (NERSA) committed to fast track the process.
25 OCTOBER 2011
6.15
PAGE: 216 of 329
Tour of Kleinzee Mine Rehabilitation Project
The members of the committee were shown the Kleinzee Marine Aquiculture project. The
initial stage of rehabilitation, which involves earth-moving has been finalised. The project is in
its final stage, which involves putting of nets to prevent soil and seeds being eroded by the
wind. A dam has been built to farm oysters.
6.16
Meeting with Hondeklipbaai Community
The following concerns were raised by Hondeklip Community:

De Beers was criticised for the lack of social responsibility.

A complaint about bureaucratic red tape when applying for concessions was raised by
the community. To address this complaint, it was suggested that the DMR should
educate the community members about applications for concessions.

Transhex was criticised for not paying money that was due to the surviving spouse of
the deceased worker. However, it was not clear whether the worker died on duty or of
an occupational-related disease. It was suggested that the death be investigated and the
findings be communicated to the Chairperson of the Portfolio Committee on Mineral
Resources.

The DMR reported that De Beers’ concessions were granted but not yet executed while
Transhex and Alexkor concessions were granted and executed in September 2009 and
April 2010, respectively.
25 OCTOBER 2011

PAGE: 217 of 329
The community has filed a claim for land that De Beers is currently mining in and is in
the process of being proclaimed a town. The meeting decided that the land claim case
should proceed as it is already in court.

The community reported that they have applied for a local school to be declared a poor
school for the purpose of additional support from the Department of Education. It was
also reported that Transhex is providing some support to the school in the form of
subsidising teachers’ salaries.

It was explained to the community that applications for mineral rights should be filed
with the DMR while those for contracts should be filed with the mining companies.

One of the community members raised a concern about his injury at Transhex and
alleged that he has not been compensated as yet.
7.
Meeting at Transhex
7.1
Baken Mine Visit
Members of the Committee were shown around the Baken Mine, which is an open- cast
diamond mine. They were informed that the Baken Mine is using excavated soil to fill the
open pits in mined areas, thus rehabilitating as it continues with mining. Members were also
informed about the mining technique used in Baken Mine.
7.2
Transhex Presentation
7.2.1
General Overview
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PAGE: 218 of 329
Members of the Committee were taken through the history of Transhex and its diamond
operations in the Baken Mine up to 2009 when it acquired New Order Mining Rights. The
acquired mining rights are valid for a period of 10 years.
7.2.2
Health, Safety and Environment
With regards to health and safety, Transhex reported, amongst other things, that it achieved
2000 fatality free production shifts on the 11 June 2010. The statistic is for the period starting
from July 2007.
With respect to environmental management, the company reported that
approximately
80
7.2.3
percent
of
water
that
it
uses
is
recycled.
Employment Equity
Members were informed about the employment equity profile of the company. Transhex
reported that it has a workforce of 600 full time employees and the total number of employees
when contractors are accounted for is 900. Transhex also reported that it has a retirement
funding scheme for employees who have reached the retirement age, which is 63 for the
industry.
7.2.4
Housing
Transhex reported that it provides accommodation for its employees in the form of houses,
flats, married quarter’s accommodation, hostels and converted hostels (Stofbakkies).
7.2.5
Training and Development
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PAGE: 219 of 329
Transhex reported that it has training and development initiatives, which focus on critical and
scarce skills, portable skills and women in mining. It was reported that 15.7 percent of the
group’s South African employees are women and 6.4 percent of all management positions are
occupied by women.
7.2.6
Social Labour Plans (SLP)
As part of its SLP, Transhex reported that it has agricultural and tourism projects. It further
reported that there is a Trust Fund called Namaqualand Diamond Trust Fund that was
established for the purpose of infrastructure development and training, which is fully managed
by trustees. Transhex pays money to this fund for above-mentioned purposes. The idea of
channelling funds to the community through the Trust Fund was to speed up delivery as it was
perceived that giving it to Government would subject it to bureaucratic red-tape. The company
reported that it is funding the salaries of teachers at a local school to a total amount of R572
000. Mobile libraries were donated to two schools in mine community in conjunction with the
Northern Cape Department of Education.
Transhex also reported that it is supporting the Gariep Joint Venture, which is a small scale
mining company that is wholly-owned by black people, and that 53 jobs were created through
that project. The revenue for financial year 2009/2010 was R18.8 million. Transhex reported
that it is funding Small Medium and Micro Enterprises initiatives, which include:

Internet Café

Gariep Guest House

Bakery, and
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
PAGE: 220 of 329
Contractors’ accommodation
Transhex reported that there are iron-ore and copper deposits in the area, which have potential
for future mining activities. Transhex reported that the life of a Mine in Baken is six years and
the SLP commitments will be honoured.
7.3
Challenges
Transhex indicated that they are faced with the following challenges:

Skills retention,

Absenteeism, and

Depleting Resource coupled with lower grade
7.3
Meeting with Sandrift Community
The following concerns were raised by Sandrift Community:

Favouritism with regard to awarding of tenders resulting in one person awarded more
than one tender.

Racism against the African people in terms of recruitment.

Lack of development in Namaqualand.

Lack of empowerment projects for women.

The bakery that was started by a woman was taken over by Transhex.

Lack of clarity between the roles of the municipality and the Community Property
Association (CPA) when it comes to applications for ownership of land.
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
PAGE: 221 of 329
CPA was accused of not accounting for the R190 million that was allegedly allocated
to it for community development.

Lack of health facilities in Richtersveld.

Community was allegedly provided with land without exploration records and support
thus it had to mine with picks and shovels.

Closure of the Adult Basic Education and Training (ABET) centre that was run by the
mine.

Deductions by Transhex of money for the municipality rates without consent from the
workers.
8.
Visit to Alexkor Limited
8.1
Overview
Alexkor reported that an amount of R200 million was to be made available to the Pooling and
Sharing Joint Venture (PSJV) in accordance with the deed of settlement. The purpose of the
PSJV is to assist the community that has organised themselves into the Richtersveld Mining
Company with amongst other things, technical expertise. Alexkor Limited is currently involved
in shallow marine mining but is doing exploration in deep sea mining. It was reported that there
are unconfirmed reserves in marine and land mining.
The company has not done any
exploration since 2007 because of lack of funds. Alexkor is using contractors in its operations.
As at July 2010, there are two contracting companies and the intention is to increase this
number to six. Alexkor has experienced challenges as a result of a decline in sea days, which is
caused by changing whether conditions. The rehabilitation budget Alexkor is R266 million. The
25 OCTOBER 2011
PAGE: 222 of 329
figure was arrived at by the consultancy company after assessing the extent of rehabilitation
that is required.
8.2
Social Labour Plans (SLP)
It was reported that Alexkor has engaged both the public and private sector in the local and
labour sending areas for its commitments in the Social and Labour Plan. Social Labour Plan
was done in consultation with the PSJV. The main focus of the SLP has been to upgrade the
Alexander Bay town to the Ritchersveld District Municipality and the related projects.
8.3
Conversion of Alexkor’s Mining Rights
It was indicated that conversion of old order mining rights to new order rights and the transfer
of such right to the Richtersveld Mining Company (RMC) have been granted for the land and
marine. The execution for the land mining rights took place in May 2010 and the cession to the
community is being finalised.
8.4
Health, Safety and Environmental
Alexkor Limited reported one fatality in 2006 and one in 2007. Both fatalities were under
water. There were no occupational diseases reported in 2008 and 2009. Alexkor’s Board
recommended that the legal compliance status of the company be verified by means of an
External Audit. The external Health, Safety and Environment Audit (HSE) was conducted at
Alexkor in December 2008 and the Alexkor achieved 47 percent compliance. Given the
adopted philosophy of continuing with HSE external audits as supported by the Board and
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PAGE: 223 of 329
Senior Management, the annual audit was conducted on the 17 -18 February 2010 and the
results reflected 86 percent compliance versus 47 percent compliance that was achieved.
Alexkor continuously does annual medical surveillance. DMR Audit came at 61% compliance
on Alexkor. Alexkor has 528 houses for its employees. On the inquiry from members, it was
reported that Alexkor has no system in place to address HIV and AIDS scourge.
8.5
Challenges
Alexkor reported that staffing, limitations for long -term planning and availability of funds
remains the key challenges in the company. Alexkor further reported that diamond price,
rand/dollar exchange rates, environmental conditions, resources and rehabilitation liability
result in operational constraints.
8.6
Meeting with the Community Property Association (CPA)
The Community Property Association (CPA) reported that it consists of 3000 members with 11
executive members (2 representatives from 4 towns). The amount of R190m was paid out for
compensation to the community by the CPA over the period of three years. The 40 percent was
paid to the leader of CPA, education received 20 percent, social upliftment received 20 percent
and SMME support received 20 percent. Alexkor Development Trust Fund has mining rights at
Witvoorkop. The last meeting of the committee of the Trust Fund was held on 14 July 2010
and was attended by all members. The Holding Company is the receiver of the funds. CPA has
quarterly report meetings.
Proceeds from the land claim settlement would benefit all
Namaqualand District Municipality, not only the claimants.
8.7.
Meeting with Alexander Bay Community
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The following concerns were raised by Alexander Bay community:

There were retrenchments without compensation.

Alexander Bay community is not benefiting from mining.

There was a dispute between Alexkor Limited and Alexkor Development Foundation
Trust (ADFT) because of Alexkor Limited did not receive any information from ADFT
regarding funds that were transferred to it.

PSJV is not yet established because of the suspensive conditions to be met.

Alexkor has to pay royalties over to SARS in accordance with Royalties Act.
9.
Visit to Black Mountain Mine (BMM)
9.1
Overview
Members of the Committee were informed that Black Mountain Mine (BMM) is a deep level
underground mining, which is a subsidiary of Anglo-American and has been in operation for 30
years producing lead, copper and zinc.
BMM has a total staff complement of 800. The working arrangement is seven days of 12 hours
each on duty and seven days off duty, amounting to 14 days of 12 hours each per month. The
minimum salary in the company is R6 000 per month.
Black Mountain Mine reported that it is transferring its stake of 74 percent to the biggest zinc
company and the 26 percent is to remain with Exarro (Pty) Ltd. Section 11 of the Mineral
25 OCTOBER 2011
PAGE: 225 of 329
Petroleum Resource Development Act has already been applied for but not yet approved. On
inquiry by Members of the Committee, it was reported that BMM intends conducting
concurrent rehabilitation and is planning to treat as a biodiversity community project. The
BMM was advised by Members to consult the community directly to ascertain their needs
rather than relying on the community representatives as there are sometimes discrepancies
between the needs of the community as articulated by representatives and direct expression by
the community.
9.2
Health and Safety
Members were taken through health and safety statistics and programmes of BMM. BMM
reported that its focus for 2010 calendar year is to equip managers and supervisors and improve
health and safety discipline. It was mentioned that, in the past, there were no consequences for
supervisors who condone or tolerate deviations from safety standards. BMM reported fatalities
for the period 2002 to 2004 - some of which were related to shaft sinking, fall of ground,
electrocution, transport and machinery. Some of the measures taken to prevent the fall of
ground accidents include involvement of rock engineers to assess risk. Geologists are involved
in scoring the rocks on safety and marking them accordingly. To eliminate the transport and
machinery accidents, measures taken include improved working methods such as walking on
the side of the road that is within the view of the operator.
Health programmes involve occupational medical surveillance, which include monitoring
programmes for conditions and exposures such as heat, noise induced hearing loss (NIHL),
lung function and lead exposure. The company reported progress with regard to reducing
NIHL; however BMM exposure level of 100 decibels is above the regulatory allowed exposure
25 OCTOBER 2011
PAGE: 226 of 329
of 85db. The HIV and AIDS prevalence rate was reported to be 2.3 percent and the uptake of
VCT was reported to be above 80 percent.
With regards to the occupational diseases, no compensation was paid in 2007, one person was
compensated for NIHL and no compensation was paid between 2009 and 2010.
9.3
Skills Development
It was reported that BMM is fully compliant with the requirements of Skills Development
legislation. The annual training report has been submitted to the Department of Labour. BMM
further reported that a competency-based Career Development System (CDS) was introduced in
August 2007 and 253 employees have directly benefited from the CDS.
9.3.1
Adult Basic Education
Adult Basic Education (ABET) classes are available at no cost to all employees, contactors and
community members and to date 134 persons have benefited from this training at a cost of
R608, 335 to BMM
9.3.2
Learnership and other Youth Training programs
As at July 2010, 62 learners have registered with the Engineering Learnership and 14 of these
learners have qualified as artisans and were subsequently employed by BMM. BMM sponsored
an annual experiential training program for two students in Chemical/ Metallurgical
Engineering in order for them to complete their National Diploma curriculum requirements.
25 OCTOBER 2011
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Furthermore, the BMM reported that 10 local youths, of which 50% are females, were trained
as Mining Operators.
9.4
Social Labour Plans (SLP)
It was reported that BMM’s Social and Labour Plan supports the Khai-Ma Municipality’s
Integrated Development Plan. All projects are fully funded by the BMM, budget allocations run
over a 5-year period starting from 2009 and unexpended annual budget allocation will roll over
to the next financial year.
The following projects were approved:

Infrastructure, Enterprise Development and Poverty Alleviation:
– This project entails purchasing of a brick making machine, and training of
unemployed people from the area to manufacture bricks with the total estimated
cost is R6.4million.

Poverty Alleviation and Small Business/Enterprise Development:
– The establishment of a small business development centre aims to provide skills
training and assistance to local entrepreneurs, including the provision of
financial assistance to existing SMMEs or for the establishment of Small,
Medium, and Micro Enterprises within the Khai-Ma region. The total estimated
cost for this project is R2.4 million.
25 OCTOBER 2011

PAGE: 228 of 329
Recreation Infrastructure:
– The Khai- Ma Municipality authorities motivated for the erection of 10 fully
equipped activity play parks for the children of Onseepkans, Witbank, Pella and
Pofadder. The total estimated cost is R1.2 million.
9.5
Housing and Living Conditions
It was reported that employees are accommodated in the married hostels and single quarters on
a non-racial and non ethnic basis. The hostel rooms are abandoned to the extent that the Black
Mountain Mine (BMM) has one employee per room. Geographic location of hostel within the
mining area is not conducive to conversion to family units. Financial assistance is offered to
employees to acquire their own accommodation in surrounding towns. Temporary nature of
existing capital projects together with the short life of mine and budgetary constraints, does not
justify capital expenditure to build additional single accommodation units for contractors in
Aggeneys. The short life of mine limits the operation to make residential stands available to
employees so that they may build and own property in Aggeneys.
10.
Findings
The Committee observed the following:

Lack of communication between the municipalities and the communities

People of Namaqua are leaving in abject poverty whereas the province of Northern
Cape is rich in minerals
25 OCTOBER 2011

PAGE: 229 of 329
Information presented by mining companies is contradicting to the one from
communities.

The mining companies and communities cannot exactly account for the royalties for the
Namaqua Diamond Fund Trust and Alexkor Development Foundation.

The community is not familiar with the Mineral Petroleum Resource Development Act.

Similarities between problems encountered by communities of Port Nollorth, Sandrift
and Alexander Bay were noted.

There was a lack of social infrastructure and community amenities.

The Committee discovered high levels of unemployment in that Region.

Also discovered that mining companies have various degrees of development.

Mining companies are not properly implementing the social and labour plans as required
by law.

The Department of Mineral Resources has failed to play its regulatory function in the
area.
11.
Recommendations by the Committee
The Portfolio Committee on Mineral Resources having heard evidence from all stakeholders
listed above recommend the following:

The DMR should examine the Social and Labour contract to determine why the
community is not benefiting from the mining operations.

The Mineral Policy branch of the DMR should visit Namaqualand and brief the
community about available opportunities in the mining industry.
25 OCTOBER 2011

PAGE: 230 of 329
It was decided that the Committee will look at the issues raised by the community
and the presentation by the Transhex Group and decide on the way forward.

Transhex should furnish audited financial statement of the Board of Namaqua
Diamond Trust Fund to the Portfolio Committee.

The copy of the SLPs of De Beers, Transhex, Alexkor and Black Mountain should
be obtained from DMR.

Alexkor should furnish the Committee with the terms of the Deed of Settlement and
should inform the Committee if there are difficulties or tensions with the terms of
the Deed of Settlement.

Alexkor is to provide more information on the Trust Fund, including audited
statements.

Alexkor should provide a comprehensive and detailed list of all BEE transactions
since its existence.

Retrenched persons advised to take the matter up through the National Union of
Mineworkers (NUM).

Community Property Association should submit the land claim documents to the
committee for information purposes.

The Committee plans to return with the Department of Mineral Resources, Mining
Companies namely,: Alexkor, De Beers and Transhex), CPA and other stakeholders
to ascertain what can be done to alleviate poverty in the Northern Cape in general
and Namaqua in particular.

Black Mountain Mine
should consult the community directly to ascertain their
needs rather than relying on the community representatives as there are sometimes
discrepancies between the needs of the community as articulated by representatives
and direct expression by the community.
25 OCTOBER 2011

PAGE: 231 of 329
MPRDA must be amended to deal with mineral rights that are held by the company
for a long period of time whereas the Region and Province detoriated into abject
poverty.

DMR must build the capacity of its inspectorate to enable Government to deal with
challenges in the mining industry.
12.
Conclusion
Community was advised to stay vigilant with regard to the value of houses during the transfer
to the municipality to ensure that they are affordable.
Report to be considered.
THURSDAY, 6 OCTOBER 2011
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Membership of Committees
25 OCTOBER 2011
PAGE: 232 of 329
(a) Adv S P Holomisa has been elected Chairperson of the Ad Hoc Committee to
nominate persons for appointment as Electoral Commissoners, with effect from 5
October 2011.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a) Agreement between the Republic of South Africa and the Government of the
Commonwealth of the Bahamas for the exchange of information relating to tax
matters, tabled in terms of Section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum on the agreement for the exchange of information between
the Government of the Republic of South Africa and the Government of the
Commonwealth of the Bahamas.
2.
The Minister of Justice and Constitutional Development
(a) Report dated 29 September 2011 on the provisional suspension from office of
Magistrate P S Hole, a magistrate in Kimberley, tabled in terms of section 13(3)(b) of
the Magistrates Act, 1993 (Act No 90 of 1993).
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(b) Report dated 29 September 2011 on withholding remuneration from Magistrate D
Jacobs, a magistrate in Clocolan, tabled in terms of section 13(4A)(b) of the
Magistrates Act, 1993 (Act No 90 of 1993).
(c) Report dated 29 September 2011 on withholding remuneration from Magistrate I W
O M Morake, a magistrate in Lichtenburg, tabled in terms of section 13(4A)(b) of the
Magistrates Act, 1993 (Act No 90 of 1993).
(d) Report dated 29 September 2011 on withholding remuneration from Magistrate T M
Masinga, a magistrate in Emlazi, tabled in terms of section 13(4A)(b) of the
Magistrates Act, 1993 (Act No 90 of 1993).
(e) Report dated 29 September 2011 on withholding remuneration from Magistrate L B
Maruwa, a magistrate in Benoni (Daveyton), tabled in terms of section 13(4A)(b) of
the Magistrates Act, 1993 (Act No 90 of 1993).
(f)
Report dated 29 September 2011 on withholding remuneration from Magistrate C M
Dumani, a magistrate in Graaff-Reinet, tabled in terms of section 13(4A)(b) of the
Magistrates Act, 1993 (Act No 90 of 1993).
(g) Report and Financial Statements of the Council for Debt Collectors for the period
March 2010 to February 2011, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for March 2010 to February
2011.
25 OCTOBER 2011
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(h) Government Notice No 702 published in Government Gazette No 34572 dated 31
August 2011: Practical Guidelines for Employees in terms of section 10 (4) (a) of the
Protected Disclosures Act, 2000 (Act No 26 of 2000).
(i)
Proclamation No R.46 published in Government Gazette No 34535 dated 19 August
2011: Transfer of functions under section 97 of the Constitution of the Republic of
South Africa, 1996: Stock Theft Act, 1959 (Act No 57 of 1959) and Game Theft
Act, 1991 (Act No 105 of 1991.
3.
The Minister of Trade and Industry
(a)
Progress Report on the Implementation of the Industrial Policy Action Plan (IPAP2)
for the year 2010 – 2011.
National Assembly
1.
The Speaker
(a)
The President of the Republic submitted the following letter dated 23 September
2011 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 Services for protection and safety of the
Deputy President of the Republic of South Africa during his visit to Côte D'ivoire.
25 OCTOBER 2011
PAGE: 235 of 329
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE
FORCE FOR SERVICE IN CO-OPERATION WITH THE SOUTH
AFRICAN POLICE SERVICES FOR PROTECTION AND SAFETY OF THE
DEPUTY PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA DURING
HIS VISIT TO CÔTE D'IVOIRE.
This serves to inform the National Assembly that I have employed Seventy Seven
(77) South African National Defence Force (SANDF) personnel for service in cooperation with the South African Police Services for protection and safety of the
Deputy President of the Republic of South Africa during his attendance of the
inauguration ceremony of the President of Côte D'ivoire.
This employment is authorised in accordance with the provisions of section
201(2)(a) of the Constitution of the Republic of South Africa, l996.
This employment was for the period 14 May to 29 May 2011.
I will communicate this report to members of the National Council of Provinces and
the Joint Standing Committee on Defence and wish to request that you bring the
contents hereof to the attention of the National Assembly.
Regards
signed
Mr. Jacob Gedleyihlekisa Zuma
President of the Republic of South Africa
25 OCTOBER 2011
(b)
PAGE: 236 of 329
The President of the Republic submitted the following letter dated 23 September
2011 to the 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 Services for protection and
safety of the President of the Republic of South Africa during the visit to Libya.
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE
FORCE FOR SERVICE IN CO-OPERATION WITH THE SOUTH
AFRICAN POLICE SERVICES FOR PROTECTION AND SAFETY OF THE
PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA DURING THE
VISIT TO LIBYA.
This serves to inform the National Assembly that I have employed Seventy Seven
(77) South African National Defence Force (SANDF) personnel, for service in co.operation with the South African Police Services for my protection and safety
during my visit to Libya as part of the African Union Peace Initiative.
This employment is authorised in accordance with the provisions of section
20l(2)(a) of the Constitution of the Republic of South Africa, 1996.
This employment was for the period 30 May to 03 June 2011.
I will communicate this report to members of the National Council of Provinces and
the Joint Standing Committee on Defence and wish to request that you bring the
contents hereof to the attention of the National Assembly.
25 OCTOBER 2011
PAGE: 237 of 329
Regards
signed
Mr. Jacob Gedleyihlekisa Zuma
President of the Republic of South Africa
(c)
The President of the Republic submitted the following letter dated 23 September
2011 to the to the Speaker of the National Assembly, informing Members of the
Assembly of the employment of the South African National Defence Force in cooperation with the South African Police Service in safeguarding the repatriation of
spent nuclear fuel from Pelindaba to Richards Bay and thereafter the shadowing of
the Cargo vessel at sea until departure from the Exclusive Economic Zone (EEZ) of
the Republic of South Africa.
EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE
FORCE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE
SERVICE IN SAFEGUARDING THE REPATRIATION OF SPENT
NUCLEAR FUEL FROM PELINDABA TO RICHARDS BAY AND
THEREAFTER THE SHADOWING OF THE CARGO VESSEL AT SEA
UNTIL DEPARTURE FROM THE EXCLUSIVE ECONOMIC ZONE (EEZ)
OF THE REPUBLIC OF SOUTH AFRICA.
This serves to inform the National Assembly that I have employed One Hundred
and Seventy Two (172) South African National Defence Force (SANDF) personnel,
25 OCTOBER 2011
PAGE: 238 of 329
for service in co-operation with South African Police Service in safeguarding the
repatriation of spent nuclear fuel from Pelindaba to Richards Bay and thereafter
shadowing of the cargo vessel at sea until departure from the Exclusive Economic
Zone (EEZ) of the Republic of South Africa.
This employment is authorised in accordance with the provisions of section
20l(2)(a) of the Constitution of the Republic of South Africa, 1996 read with section
19 of Defence Act (Act 42 of 2002).
This employment was for the period 18 July to 25 July 2011.
I will communicate this report to members of the National Council of Provinces and
the Joint Standing Committee on Defence and wish to request that you bring the
contents hereof to the attention of the National Assembly.
Regards
signed
Mr. Jacob Gedleyihlekisa Zuma
President of the Republic of South Africa
MONDAY, 10 OCTOBER 2011
ANNOUNCEMENTS
25 OCTOBER 2011
PAGE: 239 of 329
National Assembly
The Speaker
1.
Introduction of Bills
(1)
The Minister of Higher Education and Training
(a)
Skills Development Amendment Bill [B 16 – 2011] (National Assembly –
proposed sec 75) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 34435 of 6 July 2011.]
Introduction and referral to the Portfolio Committee on Higher Education
and Training of the National Assembly, as well as referral to the Joint
Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may
be submitted to the JTM within three parliamentary working days.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Sport and Recreation
25 OCTOBER 2011
(a)
PAGE: 240 of 329
Report and Financial Statements of Vote 17 – Sport and Recreation South Africa for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information of Vote 17 for 2010-2011 [RP 176-2011].
(b) Report and Financial Statements of the South African Institute for Drug-Free Sport
for 2010-2011, including the Report of the Auditor-General on the Financial
Statements for 2010-2011 [RP 151-2009].
(c)
Report and Financial Statements of Boxing South Africa for 2010-2011, including
the Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-2011.
2.
The Minister of Women, Children and People with Disabilities
(a)
Report and Financial Statements of Vote 7 – Department of Women, Children and
People with Disabilities for 2010-2011, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 7 for 2010-2011.
National Assembly
1.
The Speaker
(a)
Public Protector Report No 9 of 2011-12 on an investigation into a complaint of
conflict of interest against Mr J Manyi.
25 OCTOBER 2011
(b)
PAGE: 241 of 329
Report of the Public Service Commission (PSC) on a Meta-Evaluation of a Review
of Land Redistribution for Agricultural Development (LRAD) Project Performance
(2001-2006) – June 2011 [RP 62-2011].
WEDNESDAY, 12 OCTOBER 2011
COMMITTEE REPORTS
National Assembly
1.
Report of the Ad Hoc Committee on the nomination of Electoral Commissioners,
dated 11 October 2011.
The National Assembly resolved on 14 September 2011 to establish an Ad Hoc
Committee to nominate persons for appointment as Electoral Commissioners in
accordance with section 193(5) of the Constitution, 1996 and section 6(2) (d) of the
Electoral Commission Act (No. 51 of 1996).
A multi party Committee made up of the following members was composed:
Hon. R Bhengu (ANC), Hon. C Dudley (ACDP), Hon. A Gaum (ANC), Hon. SP
Holomisa (ANC), Hon. J Jefferey (ANC), Hon. JD Kilian (COPE), Hon. A Lovemore
(DA), Hon. HN Makhuba (IFP), Hon. TM Masutha (ANC), Hon. M Maunye (ANC), Hon.
J Moloi-Moropa (ANC), Hon. M Mnqasela (DA) and Hon. F Muthambi (ANC).
25 OCTOBER 2011
PAGE: 242 of 329
The Ad Hoc Committee met on 5 October 2011 to elect the Chairperson and discuss its
work procedure and programme. Hon S P Holomisa was unanimously elected as
Chairperson of the Ad Hoc Committee. In view of the fact that the nominees presented to
Parliament for consideration for appointment as Electoral Commissioners had already
been interviewed by the panel which was established in terms of section 6(3) of the
Electoral Commission Act 51 of 1996, the Committee resolved not to conduct any further
interviews but rather consider the report of the panel and the curriculum vitae of the
candidates. The panel comprised of the following members:
The Chief Justice (Chairperson), the Chairperson of the South African Human Rights
Commission, the Acting Chairperson of the Commission for Gender Equality and the
Public Protector.
The panel conducted interviews of 17 candidates who were shortlisted. Ms Shirley
Evangelina Mabusela, who was also shortlisted, subsequently withdrew her application.
The panel deliberated on the candidates and compiled a list of names to be submitted to
the National Assembly to decide on the four names that should be nominated and
submitted to the President for appointment.
The list of candidates submitted by the Chief Justice of the Republic of South Africa to
the Speaker for consideration was as follows:

Adv. Pansy Tlakula

Mr Terry Ismael Tselane

Rev. Frank Chikane
25 OCTOBER 2011
PAGE: 243 of 329

Rev. Bongani Blessings Finca

Dr Sebiletso Mokone-Matabane

Mrs Phumelele Nzimande

Mr Paul Malcolm Graham

Ms Illona Tip

Ms Raenette Taljaard

Father Smangaliso Mkhatshwa
In addition, the list included the highlights of the key qualities that place each of the
candidates in the category of the most suitable.
The Ad Hoc Committee met on 11 October 2011 to deliberate on the names of candidates
who were recommended by the panel for nomination.
After consideration of the panel’s report and the candidates’ curriculum vitae, the Ad Hoc
Committee recommends the following candidates for nomination as Electoral
Commissioners:

Adv. Pansy Tlakula

Mr Terry Ismael Tselane

Rev. Bongani Blessings Finca

Ms Raenette Taljaard
Report to be considered.
THURSDAY, 13 OCTOBER 2011
25 OCTOBER 2011
PAGE: 244 of 329
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Arts and Culture
(a)
Report and Financial Statements of the South African Heritage Resources Agency
(SAHRA) for 2010-2011, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-2011 [RP 181-2011].
2.
The Minister for Cooperative Governance and Traditional Affairs
(a)
Report and Financial Statements of the National House of Traditional Leaders
(NHTL) for 2010-2011 [RP 227-2011].
3.
The Minister of Home Affairs
(a)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Ghana regarding the Waiver of Visa requirements
for holders of Diplomatic and Official or Service Passports, tabled in terms of
section 231(3) of the Constitution, 1996.
4.
The Minister of Transport
25 OCTOBER 2011
(a)
PAGE: 245 of 329
Report and Financial Statements of the Road Traffic Management Corporation for
2010-2011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP 89-2011].
(b)
Report and Financial Statements of the Driving License Card Account for 20102011, including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 199-2011].
5.
The Minister of Trade and Industry
(a)
Government Notice No R.711 published in Government Gazette No 34586 dated 9
September 2011: Introduction of amendments to the National Building Regulations
to introduce requirements for Energy Usage in Buildings in terms of the National
Building Regulations and Building Standards Act, 1977 (Act No 103 of 1977).
National Assembly
1.
The Speaker
(a)
Report of the Public Protector No 11 of 2011-12 on an investigation into allegations
of a breach of the Executive Ethics Code by the Minister of Co-operative
Governance and Traditional Affairs, Mr Sicelo Shiceka.
25 OCTOBER 2011
(a)
PAGE: 246 of 329
Letter from the Minister of Public Enterprises dated 30 September 2011, to the
Speaker of the National Assembly explaining the reasons for not tabling the Pebble
Bed Modular Reactor (PBMR) Annual Report for 2010-2011.
Reasons for not tabling the PBMR 2011 Annual Report
This letter serves to inform the honorable Speaker that the Department will not be
tabling PBMR’s Annual Report as required by the Public Finance Management Act,
1999 (PFMA) for the reasons detailed below.
As you are aware, the proposal to place PBMR into care and maintenance mode
was deliberated upon and approved by Cabinet on 1 September 2010. This Cabinet
decision entailed approval for PBMR to commence with downsizing and
retrenchments to reduce its staff complement to nine (9) employees. PBMR had not
been able to secure additional investors and/ or customers and it was projected that
the company would run out of cash by October 2010 in the absence of drastic
measures being taken by the Department.
The care and maintenance was considered a preferred mechanism to minimise
future costs whilst also aimed at ensuring the preservation of the intellectual
property (IP) vested in PBMR, its assets and the preservation of the nuclear skills
already developed in PBMR. Given that PBMR is currently a subsidiary of Eskom,
Cabinet further approved that Eskom will second senior executives to PBMR to
implement the care and maintenance strategy under the PBMR Board, which in
time will also be reduced to (2) two directors.
25 OCTOBER 2011
PAGE: 247 of 329
The most significant consequence of the care and maintenance was the fact that
PBMR would be retained as a company under Eskom Enterprises, a subsidiary of
Eskom Holdings Limited. To continue containing costs and ensuring prudent
financial management within the company, the Department has taken a decision not
to table the PBMR Annual Report as required by section 55 of the PFMA. This is in
line with Cabinet’s decision to ensure that the available cash in the company is
utilised sparingly to keep the company afloat until 31 March 2013.
However, to ensure adequate and proper reporting on its financials, the Department
requested Eskom as a holding company, to ensure that PBMR financials and cash
management reports are submitted to the Department on a regular basis.
The Department will prepare a memorandum in due course to Cabinet on the status
of PBMR as well as progress of the implementation of the care and maintenance
strategy.
As required by the PFMA, this letter will be copied to the Minister of Finance, the
Chairpersons of Eskom and PBMR as well as the office of the Auditor General.
I trust this is in order.
Yours sincerely
(Signed)
MR MALUSI GIGABA, MP
25 OCTOBER 2011
PAGE: 248 of 329
MINISTER OF PUBLIC ENTEPRISES
DATE: 30 September 2011
(c)
Letter from the Minister of Transport dated 10 October 2011, to the Speaker of the
National Assembly explaining the late submission and tabling of the annual reports
and financial statements of the Road Traffic Management Corporation (RTMC) and
the Driving License Card Account (DLCA) for the year ended 31 March 2011.
WRITTEN EXPLANATION ON THE LATE SUBMISSION AND TABLING
OF THE ANNUAL REPORTS AND FINANCIAL STATEMENTS OF THE
ROAD TRAFFIC MANAGEMENT CORPORATION (RTMC) AND THE
DRIVING LICENSE CARD ACCOUNT (DLCA) FOR THE YEAR ENDED
31 MARCH 2011
I write to inform Parliament that in terms of subsection 65 (l) (a) of the Public
Finance Management Act, 1999 (Act No I of 1999), as amended (PFMA), I was
unfortunately not able to table the annual reports and audited financial statements for
the year ended 31 March 2011 of the Road Traffic Management Corporation
(RTMC) and the Driving License Card Account (DLCA), before the deadline of 30
September 2011.
Section 65(2) (a) of the PFMA stipulates that if an Executive Authority fails to table,
in accordance with subsection 65 (1) (a), the annual report and annual financial
statements of the Department or the public entity, and the audit report on those
statements, in Parliament within six months after the end of the financial year to
25 OCTOBER 2011
PAGE: 249 of 329
which those statements relate, i.e. 30 September 2011, the Executive Authority must
table a written explanation in Parliament setting out the reasons why such an annual
report was not tabled.
The Road Traffic Management Corporation (RTMC)
The reason for the late tabling was the delay in finalizing the entity’s annual report.
Thereafter, RTMC had to obtain approval of the annual report by the members of
the Shareholders Committee in terms of Section 22 (4) of the RTMC Act, 1999 (Act
No. 20 of 1999) as amended, before the annual report could be tabled in Parliament.
Driving License Card Account (DLCA)
My Department was also not able to table the annual report and audited financial
statements of the Driving License Card Account (DLCA) by the deadline, due to
unforeseen internal and external administrative processes that contributed to the
delay in finalising report for tabling in Parliament.
The delay in submitting the above-mentioned annual reports is sincerely regretted.
However, please be informed that a process is underway to table these two
outstanding reports shortly.
Yours sincerely
(Signed)
MR J S NDEBELE, MP
25 OCTOBER 2011
PAGE: 250 of 329
MINISTER OF TRANSPORT
DATE: 10 October 2011
COMMITTEE REPORTS
National Assembly
1. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the Government of Jersey, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Agreement between the Government of the Republic of South Africa and the
Government of Jersey for the exchange of information with respect to taxes, recommends that
the House, in terms of section 231 (2) of the Constitution, approves the said agreement.
Report to be considered.
2. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the Government of the Commonwealth of the Bahamas, dated 11
October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Agreement between the Government of the Republic of South Africa and the
Government of the Commonwealth of the Bahamas for the exchange of information relating to
tax matters, recommends that the House, in terms of section 231 (2) of the Constitution,
approves the said agreement.
25 OCTOBER 2011
PAGE: 251 of 329
Report to be considered.
3. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the Government of Bermuda, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Agreement between the Government of the Republic of South Africa and the
Government of Bermuda for the exchange of information relating to tax matters, recommends
that the House, in terms of section 231 (2) of the Constitution, approves the said agreement.
Report to be considered.
4. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the Government of the Cayman Islands, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Agreement between the Government of the Republic of South Africa and the
Government of the Cayman Islands for the exchange of information relating to tax matters,
recommends that the House, in terms of section 231 (2) of the Constitution, approves the said
agreement.
Report to be considered.
25 OCTOBER 2011
PAGE: 252 of 329
5. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the States of Guernsey, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Agreement between the Government of the Republic of South Africa and the
Government of the States of Guernsey for the exchange of information relating to tax matters,
recommends that the House, in terms of section 231 (2) of the Constitution, approves the said
agreement.
Report to be considered.
6. Report of the Standing Committee on Finance on the Protocol between the Republic of
South Africa and the Republic of Austria, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by Parliament
of the Protocol and Additional Protocol amending the convention between the Republic of
South Africa and the Republic of Austria for the avoidance of double taxation with respect to
taxes on income and on capital, recommends that the House, in terms of section 231 (2) of the
Constitution, approves the said protocols.
Report to be considered.
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PAGE: 253 of 329
TUESDAY, 18 OCTOBER 2011
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Membership of Committees
(a)
The following changes to Committee membership have been made by the
Democratic Alliance:
Portfolio Committee on Arts and Culture
Discharged:
Smalle, Mr J
Appointed:
Duncan, Ms P
PC on Public Service and Administration
Appointed:
COMMITTEE REPORTS
Hill-Lewis, Mr G
25 OCTOBER 2011
PAGE: 254 of 329
National Assembly
1. Report of the Standing Committee on Finance on the Protocol between the Republic of
South Africa and the Republic of Seychelles, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by
Parliament of the Protocol amending the agreement between the Government of the
Republic of Seychelles and the Government of the Republic of South Africa for the
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income, recommends that the House, in terms of section 231 (2) of the Constitution,
approves the said protocol.
Report to be considered.
2. Report of the Standing Committee on Finance on the Protocol between the Republic of
South Africa and the Government of Malaysia, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by
Parliament of the Protocol amending the agreement between the Government of the
Republic of South Africa and the Government of Malaysia for the avoidance of double
taxation and the prevention of fiscal evasion with respect to taxes on income, recommends
that the House, in terms of section 231 (2) of the Constitution, approves the said protocol.
Report to be considered.
25 OCTOBER 2011
PAGE: 255 of 329
3. Report of the Standing Committee on Finance on the Agreement between the Republic
of South Africa and the Republic of San Marino, dated 11 October 2011.
The Standing Committee on Finance, having considered the request for approval by
Parliament of the Agreement between the Government of the Republic of South Africa
and the Government of the Republic of San Marino for the exchange of information
relating to tax matters, recommends that the House, in terms of section 231 (2) of the
Constitution, approves the said agreement.
Report to be considered.
WEDNESDAY, 19 OCTOBER 2011
ANNOUNCEMENTS
National Assembly
The Speaker
1.
Submission of Private Members’ Legislative Proposals
(1)
The following private members’ legislative proposals were submitted to the
Speaker on 3 October 2011 and 18 October 2011 in accordance with Rule 234:
25 OCTOBER 2011
(a)
PAGE: 256 of 329
Legislative proposal to amend the Compensation for Occupational Injuries
and Diseases Act, 1993 (No 130 of 1993) to expand comprehensive
Compensation Fund coverage to domestic workers. (Mr I M Ollis).
(b)
Legislative proposal to amend the Electoral Act, 1998 (No 73 of 1998) to
allow South African citizens living abroad to register and vote in national
and provincial elections and to provide them with reasonable access to
voting during national and provincial elections. (Ms A T Lovemore)
Referred to the Committee on Private Members’ Legislative Proposals and
Special Petitions for consideration and report.
2.
Referral to Committees of papers tabled
(1)
The following papers are referred to the Standing Committee on Finance for
consideration and report:
(a)
Protocol and Additional Protocol amending the Convention between the
Republic of South Africa and the Republic of Austria for the Avoidance of
Double Taxation with respect to Taxes on Income and Capital, signed on 4
March 1996 and tabled in terms of section 231(2) of the Constitution, 1996.
(b)
Explanatory Memorandum on the Protocol Amending the Double Taxation
Convention between the Government of the Republic of South Africa and
the Government of the Republic of Austria.
25 OCTOBER 2011
(c)
PAGE: 257 of 329
Agreement between the Government of the Republic of South Africa and the
Government of Bermuda for the Exchange of Information relating to Tax
Matters, tabled in terms of section 231(2) of the Constitution, 1996.
(d)
Explanatory Memorandum to the Agreement between the Government of the
Republic of South Africa and the Government of Bermuda for the Exchange
of Information relating to Tax Matters.
(e)
Agreement between the Republic of South Africa and the Government of the
Commonwealth of the Bahamas for the Exchange of Information relating to
Tax Matters, tabled in terms of section 231(2) of the Constitution, 1996.
(f)
Explanatory Memorandum to the Agreement between the Government of the
Republic of South Africa and the Government of the Commonwealth of the
Bahamas for the Exchange of Information relating to Tax Matters.
(2)
The following papers are referred to the Standing Committee on Finance for
consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the South African Revenue Service
(Sars) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP2262011].
25 OCTOBER 2011
(b)
PAGE: 258 of 329
Report and Financial Statements of the Development Bank of Southern
Africa (DBSA) for 2010-11, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 201011 and the Report and Financial Statements of the Development Bank of
Southern Africa Development Fund for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information of the Development Fund for 2010-11.
(c)
Report and Financial Statements of the Co-operative Banks Development
Agency for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11.
(d)
Report and Financial Statements of the Office of the Pension Funds
Adjudicator for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1152011].
(e)
Report and Financial Statements of the Financial Intelligence Centre for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP135-2011].
(f)
Report and Financial Statements of the Sasria (Limited) for 2010-11,
including the Report of the Independent Auditors on the Financial
Statements for 2010-11.
25 OCTOBER 2011
(g)
PAGE: 259 of 329
Report and Financial Statements of the Financial Services Board for 201011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-2011 [RP42-2011].
(h)
Report and Financial Statements of the Public Investment Corporation
Limited for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP732011].
(i)
Report and Financial Statements of the Government Pensions Administration
Agency for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11.
(j)
Report and Financial Statements of the Financial and Fiscal Commission
(FFC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP842011].
(m)
Report and Financial Statements of Vote 12 - Statistics South Africa – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 12 for 2010-11 [RP1242011].
25 OCTOBER 2011
(n)
PAGE: 260 of 329
Report and Financial Statements of the Council for Debt Collectors for the
period March 2010 to February 2011, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for March 2010 to February 2011.
(3)
The following papers are referred to the Portfolio Committee on Transport for
consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the South African Civil Aviation
Authority (SACAA) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011.
(b)
Report and Financial Statements of the Air Traffic and Navigation Services
Company Limited (ATNS) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
(c)
Report and Financial Statements of the Road Accident Fund for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP87-2011].
25 OCTOBER 2011
(d)
PAGE: 261 of 329
Reports and Financial Statements of the Ports Regulator of South Africa for
2010-11, including the Reports of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP254-2011].
(e)
Reports and Financial Statements of the Cross-Border Road Transport
Agency (C-BRTA) for 2010-11, including the Reports of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP240-2011].
(f)
Report and Financial Statements of the Railway Safety Regulator for 201011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-11 [RP244-2011].
(g)
Report and Financial Statements of the Road Traffic Infringement Agency
(RTIA) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP2412011].
(h)
Report and Financial Statements of the South African Maritime Safety
Authority (including the Maritime Fund) for 2010-10, including the Report
of the Auditor-General on the Financial Statements and Performance
Information for 2010-11 [RP238-2011].
(i)
Report and Financial Statements of the Road Traffic Management
Corporation for 2010-11, including the Report of the Auditor-General on the
25 OCTOBER 2011
PAGE: 262 of 329
Financial Statements and Performance Information for 2010-11 [RP892011].
(j)
Report and Financial Statements of the Driving License Card Account for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP199-2011].
(k)
Report and Financial Statements of Vote 36 – Department of Transport – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 36 for 2010-11 [RP2532011].
(l)
Report and Financial Statements of the Passenger Rail Agency of South
Africa (Prasa) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11 [RP2342011].
(m)
Report and Financial Statements of the Intersite Asset Investments (Pty) Ltd
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(n)
Report and Financial Statements of the Autopax Passenger Services (Pty)
Ltd for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP2382011].
25 OCTOBER 2011
(4)
PAGE: 263 of 329
The following papers are referred to the Portfolio Committee on Science and
Technology for consideration and report. The Reports of the Auditor-General and
Independent Auditors on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the National Research Foundation for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(b)
Report and Financial Statements of Vote 33 – Department of Science and
Technology – for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information of Vote 33 for 201011 [RP133-2011].
(c)
Report and Financial Statements of the Academy of Science of South Africa
for 2010-11, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-11.
(d)
Report and Financial Statements of the Africa Institute of South Africa for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(e)
Report and Financial Statements of the South African Council for Natural
Scientific Professions for 2010-11, including the Report of the Independent
25 OCTOBER 2011
PAGE: 264 of 329
Auditors on the Financial Statements and Performance Information for 200911.
(f)
Report and Financial Statements of the South African National Energy
Research Institute (Pty) Ltd for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11.
(g)
Report and Financial Statements of the Technology Innovation Agency for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(5)
The following papers are referred to the Portfolio Committee on Human
Settlements for consideration and report. The Reports of the Auditor-General and
Independent Auditors on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Social Housing Foundation (SHF) for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(b)
Report and Financial Statements of the Servcon Housing Solutions (Pty)
Limited for 2010-11, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2010-11.
25 OCTOBER 2011
(c)
PAGE: 265 of 329
Report and Financial Statements of the Thubelisha Homes (Association
Incorporated under section 21) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
(d)
Report and Financial Statements of the Housing Development Agency for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(e)
Report and Financial Statements of the National Home Builders Registration
Council (NHBRC) for 2010-11, including the Report of the Auditor-General
on the Financial Statements for 2010-11.
(f)
Report and Financial Statements of the National Housing Finance
Corporation Ltd (NHFC) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements for 2010-11.
(g)
Report and Financial Statements of the Rural Housing Loan Fund (RHLF)
for 2010-11, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-11.
(h)
Report and Financial Statements of the National Urban Reconstruction and
Housing Agency (Nurcha) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
25 OCTOBER 2011
(i)
PAGE: 266 of 329
Report and Financial Statements of the Social Housing Regulatory Authority
for 2010-11, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-11.
(j)
Report and Financial Statements of Vote 30 – Department of Human
Settlements – for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information of Vote 30 for 201011 [RP93-2011].
(6)
The following papers are referred to the Portfolio Committee on Health for
consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Council for Medical Schemes for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP52-2011].
(b)
Report and Financial Statements of the National Health Laboratory Service
(NHLS) for 2010-11, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2010-11.
(c)
Report and Financial Statements of Vote 15 – Department of Health – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 15 for 2010-11 [RP1382011].
25 OCTOBER 2011
(d)
PAGE: 267 of 329
Report and Financial Statements of the South African Medical Research
Council (MRC) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11 [RP1762011].
(7)
The following paper is referred to the Portfolio Committee on Health:
(a)
Letter from the Minister of Health dated 26 September 2011 to the Speaker
of the National Assembly, explaining the delay in the submission of the
Annual Report of the Compensation Commissioner for Occupational
Diseases (CCOD) for 2010-11.
(8)
The following paper is referred to the Portfolio Committee on Women, Youth,
Children and People with Disabilities 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 National Youth Development
Agency (NYDA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11.
(9)
The following papers are referred to the Portfolio Committee on Communications
for consideration and report. The Reports of the Auditor-General and Independent
25 OCTOBER 2011
PAGE: 268 of 329
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Media Development and Diversity
Agency (MDDA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11.
(b)
Report and Financial Statements of Vote 26 – Department of
Communications – for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information of Vote 26 for
2010-11 [RP126-2010].
(c)
Report and Financial Statements of the South African Post Office (Ltd) for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(d)
Report and Financial Statements of Sentech Limited for 2010-11, including
the Report of the Independent Auditors on the Financial Statements and
Performance Information for 2010-11.
(e)
Report and Financial Statements of the Independent Communications
Authority of South Africa (Icasa) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP219-2011].
25 OCTOBER 2011
(f)
PAGE: 269 of 329
Report and Financial Statements of the National Electronic Media Institute
of South Africa (Nemisa) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011.
(g)
Report and Financial Statements of the Universal Service and Access
Agency of South Africa (USAASA) for 2010-11, including the Reports of
the Auditor-General on the Financial Statements of Universal Service and
Access Agency of South Africa (USAASA) and the Universal Service and
Access Fund (USAF) for 2010-11 [RP202-2010].
(h)
Report and Financial Statements of the South African Broadcasting
Corporation Limited (SABC) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements for 2010-11.
(i)
Report and Financial Statements of Vote 8 – Government Communication
and Information System (GCIS) – for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
of Vote 8 for 2010-11 [RP249-2011].
(10) The following paper is referred to the Portfolio Committee on Tourism 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:
25 OCTOBER 2011
(a)
PAGE: 270 of 329
Report and Financial Statements of Vote 34 – Department of Tourism – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information [RP215-2011].
(11) The following papers are referred to the Portfolio Committee on Cooperative
Governance and Traditional 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:
(a)
Report and Financial Statements of Vote 3 – Department of Cooperative
Governance and Traditional Affairs – for 2010-11, including the Report of
the Auditor-General on the Financial Statements and Performance
Information of Vote 3 for 2010-11 [RP225-2011].
(b)
Report and Financial Statements of the Municipal Demarcation Board
(MDB) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP2572011].
(c)
Report and Financial Statements of the Commission for the Promotion and
Protection of the Rights of Cultural, Religious and Linguistic Communities
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP208-2011].
(12) The following papers are referred to the Portfolio Committee on Water and
Environmental Affairs for consideration and report. The Reports of the
25 OCTOBER 2011
PAGE: 271 of 329
Auditor-General and Independent Auditors on the Financial Statements and
Performance Information are referred to the Committee on Public Accounts for
consideration:
(a)
Report and Financial Statements of Vote 37 – Department of Water Affairs –
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information RP214-2011].
(b)
Report and Financial Statements of the Trans-Caledon Tunnel Authority
(TCTA) for 2010-11, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2010-11.
(c)
Report and Financial Statements of the Water Research Commission for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP130-2011].
(d)
Report and Financial Statements of Inkomati Catchment Management
Agency (ICMA) for 2010-11, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 201011 [RP161-2011].
(e)
Report and Financial Statements of the Namakwa Water Board for the year
ended 30 June 2010, including the Report of the Independent Auditors on the
Financial Statements for the year ended 30 June 2010.
25 OCTOBER 2011
(f)
PAGE: 272 of 329
Report and Financial Statements of the Breede-Overberg Catchment
Management Agency for 2010-11, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 201011 [RP163-2011].
(13) The following papers are referred to the Portfolio Committee on Mineral
Resources 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:
(a)
Report of the Mine Health and Safety Inspectorate for 2010-11 [RP1092011].
(b)
Report and Financial Statements of the Mine Health and Safety Council
(MHSC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP102011].
(c)
Report and Financial Statements of the Council for Mineral Technology
(Mintek) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP162011].
25 OCTOBER 2011
(d)
PAGE: 273 of 329
Report and Financial Statements of the State Diamond Trader for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11.
(e)
Report and Financial Statements of the Council for Geoscience for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP67-2011].
(f)
Report and Financial Statements of the South African Diamond and Precious
Metals Regulator for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[RP237-2011].
(g)
Report and Financial Statements of Vote 31 – Department of Mineral
Resources – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 31 for 2010-11
[RP59-2011].
(14) The following papers are referred to the Portfolio Committee on Police 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:
25 OCTOBER 2011
(a)
PAGE: 274 of 329
Report and Financial Statements of Vote 24 – Department of Police – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information [RP194-2011].
(b)
Report and Financial Statements of Vote 22 – Independent Complaints
Directorate (ICD) – for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information [RP2462011].
(c)
Report and Financial Statements of the Private Security Industry Regulatory
Authority (PSIRA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11.
(15) The following papers are referred to the Portfolio Committee on Justice and
Constitutional Development 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:
(a)
Report and Financial Statements of the Special Investigating Unit (SIU) for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11[RP207-2011].
(b)
Report and Financial Statements of the Department of Justice and
Constitutional Development on the Criminal Assets Recovery Account for
25 OCTOBER 2011
PAGE: 275 of 329
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-2011 [RP223-2011].
(c)
Report and Financial Statements of the President’s Fund for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP222-2011].
(d)
Report on Monies in Trust kept in the Guardian’s Fund for 2010-11,
including the Report of the Auditor-General on Monies in Trust kept in the
Guardian’s Fund for 2010-11 [RP224-2011].
(e)
Report and Financial Statements of Vote 23 – Department of Justice and
Constitutional Development – for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
of Vote 23 for 2010-11 [RP221-2011].
(f)
Report and Financial Statements of the South African Human Rights
Commission (SAHRC) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP128-2011].
(16) The following paper is referred to the Portfolio Committee on Correctional
Services 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:
25 OCTOBER 2011
(a)
PAGE: 276 of 329
Report and Financial Statements of Vote 20 – Department of Correctional
Services – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information [RP193-2011].
(17) The following papers are referred to the Portfolio Committee on Public Service
and Administration for consideration and report. The Reports of the
Auditor-General and Independent Auditors on the Financial Statements and
Performance Information are referred to the Committee on Public Accounts for
consideration:
(a)
Report and Financial Statements of Public Administration Leadership and
Management Academy (Palama) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP182-2011].
(b)
Report and Financial Statements of the Public Service Commission (PSC)
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP204-2011].
(c)
Report and Financial Statements of the State Information Technology
Agency (Pty) Ltd (Sita) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for
2010-11 [RP72-2011].
25 OCTOBER 2011
(d)
PAGE: 277 of 329
Report and Financial Statements of Vote 11 – Department of Public Service
and Administration – for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information
[RP187-2011].
(e)
Report and Financial Statements of the Centre for Public Service Innovation
for 2010-11.
(f)
Report and Financial Statements of the Government Employees Medical
Scheme (Gems) for 2010-11, including the Report of the Independent
Auditors on the Financial Statements and Performance Information for 201011.
(18) The following paper is referred to the Portfolio Committee on Public Service and
Administration and to the Portfolio Committee on Correctional Services,
Portfolio Committee on Home Affairs, Portfolio Committee on Justice and
Constitutional Development, Portfolio Committee on Cooperative Governance
and Traditional Affairs, Portfolio Committee on Public Works, Portfolio
Committee on Social Development and Portfolio Committee on Police:
(a)
Report of the Public Service Commission (PSC), on behalf of the National
Anti-Corruption Forum (NACF), on the Implementation of Resolutions on
Corruption made by Parliament and its Committees from 1 January 2001 to
31 December 2005.
25 OCTOBER 2011
PAGE: 278 of 329
(19) The following papers are referred to the Portfolio Committee on Justice and
Constitutional Development for consideration and report.
(a)
Report dated 15 September 2011 on the suspension from office of Magistrate
C M Dumani, a magistrate in Graaff-Reinet, tabled in terms of section
13(4)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(b)
Annual Report of the Judicial Service Commission for the 18 months ending
31 December 2010.
(c)
Report dated 29 September 2011 on the provisional suspension from office
of Magistrate P S Hole, a magistrate in Kimberley, tabled in terms of section
13(3)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(d)
Report dated 29 September 2011 on withholding remuneration from
Magistrate D Jacobs, a magistrate in Clocolan, tabled in terms of section
13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(e)
Report dated 29 September 2011 on withholding remuneration from
Magistrate I W O M Morake, a magistrate in Lichtenburg, tabled in terms of
section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(f)
Report dated 29 September 2011 on withholding remuneration from
Magistrate T M Masinga, a magistrate in Emlazi, tabled in terms of section
13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
25 OCTOBER 2011
(g)
PAGE: 279 of 329
Report dated 29 September 2011 on withholding remuneration from
Magistrate L B Maruwa, a magistrate in Benoni (Daveyton), tabled in terms
of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(h)
Report dated 29 September 2011 on withholding remuneration from
Magistrate C M Dumani, a magistrate in Graaff-Reinet, tabled in terms of
section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(20) The following papers are referred to the Portfolio Committee on Energy for
consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Central Energy Fund (Pty) Ltd Group
of Companies (CEF) for 2010-11, including the Report of the AuditorGeneral and the Independent Auditors on the Financial Statements and
Performance Information for 2010-11 [RP95-2011].
(b)
Annual Financial Statements of the Central Energy Fund (Pty) Ltd Group of
Companies (CEF) for 2010-11, including the Report of the Auditor-General
and the Independent Auditors on the Financial Statements and Performance
Information for 2010-11 [RP95-2011] (Volumes 1 and 2).
25 OCTOBER 2011
(c)
PAGE: 280 of 329
Report and Financial Statements of the National Energy Regulator of South
Africa (Nersa) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11 [RP1982011].
(d)
Report and Financial Statements of the National Nuclear Regulator for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(e)
Report and Financial Statements of the Electricity Distribution Industrial
Holdings (Pty) Ltd (EDIH) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 200910 [RP218-2011].
(f)
Report and Financial Statements of the South African Nuclear Energy
Corporation Limited (NECSA) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP88-2011].
(g)
Report and Financial Statements of Vote 28 – Department of Energy – for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 28 for 2010-11 [RP2552011].
25 OCTOBER 2011
PAGE: 281 of 329
(21) The following paper is referred to the Portfolio Committee on Rural Development
and Land Reform for consideration and report. The Report of the Auditor-General
on the Financial Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Department of Rural Development
and Land Reform for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11.
(22) The following papers are referred to the Portfolio Committee on Public
Enterprises for consideration and report. The Reports of the Independent Auditors
on the Financial Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the South African Airways (Pty) (Ltd)
for 2010-11, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-11.
(b)
Report and Financial Statements of the Broadband Infraco (Pty) Limited for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(c)
Report and Financial Statements of the Alexkor Limited for 2010-11,
including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
25 OCTOBER 2011
PAGE: 282 of 329
(23) The following paper is referred to the Portfolio Committee on Trade and Industry
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 Vote 35 – Department of Trade and
Industry – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 35 for 2010-11
[RP254-2011].
(24) 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:
(a)
Report and Financial Statements of the Independent Electoral Commission
(IEC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1112011].
(b)
Report and Financial Statements of the Film and Publication Board for 201011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-11.
25 OCTOBER 2011
(c)
PAGE: 283 of 329
Report and Financial Statements of Vote 4 – Department of Home Affairs –
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information of Vote 4 for 2010-11 [RP2502011].
(d)
Report and Financial Statements of the Government Printing Works (MDB)
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP239-2011].
(25) The following papers are referred to the Portfolio Committee on Home Affairs:
(a)
Employment Equity Report of the Department of Home Affairs for 1
October 2009 to 30 September 2010, tabled in terms of section 22(2) of the
Employment Equity Act, 1998 (Act No 55 of 1998).
(b)
Agreement between the Government of the Republic of South Africa and the
Government of the Republic of Ghana regarding the Waiver of Visa
Requirements for Holders of Diplomatic and Official or Service Passports,
tabled in terms of section 231(3) of the Constitution, 1996.
(26) The following papers are referred to the Portfolio Committee on Arts and Culture
for consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
25 OCTOBER 2011
(a)
PAGE: 284 of 329
Report and Financial Statements of Vote 13 – Department of Arts and
Culture – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 13 for 2010-11.
(b)
Report and Financial Statements of the Iziko Museums of Cape Town for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP101-2011].
(c)
Report and Financial Statements of the Kwazulu-Natal Museum for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP203-2011].
(d)
Report and Financial Statements of the Luthuli Museum for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11.
(e)
Report and Financial Statements of the Market Theatre Foundation for 201011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-11 [RP112-2011].
(f)
Report and Financial Statements of the Msunduzi/Voortrekker Museum and
Ncome Museums for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[PR56-2011].
25 OCTOBER 2011
(g)
PAGE: 285 of 329
Report and Financial Statements of the National Arts Council for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP196-2011].
(h)
Report and Financial Statements of the National English Literary Museum
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP188-2011].
(i)
Report and Financial Statements of the National Film and Video Foundation
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP139-2011].
(j)
Report and Financial Statements of the Freedom Park Trust for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP171-2011].
(k)
Report and Financial Statements of the Ditsong Museums of South Africa
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP80-2011].
(l)
Report and Financial Statements of Business and Arts South Africa for 201011, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11 [RP175-2011].
25 OCTOBER 2011
(m)
PAGE: 286 of 329
Report and Financial Statements of the Blind SA for 2010-11, including the
Report of the Independent Auditors on the Financial Statements and
Performance Information for 2010-11 [RP142-2011].
(n)
Report and Financial Statements of the Artscape for 2010-11, including the
Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-11 [RP170-2011].
(o)
Report and Financial Statements of the Afrikaans Language Museum and
Language Monument for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP168-2011].
(p)
Report and Financial Statements of the Pan South African Language Board
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP229-2011].
(q)
Report and Financial Statements of the National Heritage Council for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP228-2011].
(r)
Report and Financial Statements of the National Library of South Africa for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP131-2011].
25 OCTOBER 2011
(s)
PAGE: 287 of 329
Report and Financial Statements of the Natal Museum - Bloemfontein for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(t)
Report and Financial Statements of the Nelson Mandela Museum for 201011, including the Report of the Auditor-General on the Financial Statements
and Performance Information for 2010-11 [RP129-2011].
(u)
Report and Financial Statements of the Performing Arts Centre of the Free
State for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11.
(v)
Report and Financial Statements of the Kwazulu-Natal Performing Arts
Company (The Playhouse Company) for 2010-11, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2010-11 [RP121-2011].
(w)
Report and Financial Statements of the Robben Island Museum for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP179-2011].
(x)
Report and Financial Statements of the South African Library for the Blind
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP177-2011].
25 OCTOBER 2011
(y)
PAGE: 288 of 329
Report and Financial Statements of the South African State Theatre for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP89-2011].
(y)
Report and Financial Statements of the War Museum of the Boer Republics
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(z)
Report and Financial Statements of the William Humphreys Art Gallery for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(aa)
Report and Financial Statements of the Windybrow Centre for the Arts for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(bb)
Report and Financial Statements of the South African Heritage Resources
Agency (SAHRA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[RP181-2011].
(27) The following papers are referred to the Portfolio Committee on Social
Development 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:
25 OCTOBER 2011
(a)
PAGE: 289 of 329
Report and Financial Statements of Vote 18 – Department of Social
Development – for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information of Vote 18 for 201011 [RP242-2011].
(b)
Report and Financial Statements of the National Development Agency
(NDA) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP112011].
(c)
Report and Financial Statements of the South African Social Security
Agency (Sassa) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11 [RP812011].
(28) The following papers are referred to the Portfolio Committee on Agriculture,
Forestry and Fisheries for consideration and report. The Reports of the AuditorGeneral and Independent Auditors on the Financial Statements and Performance
Information are referred to the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of Vote 25 – Department of Agriculture,
Forestry and Fisheries – for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information [RP2052011].
25 OCTOBER 2011
(b)
PAGE: 290 of 329
Report and Financial Statements of the National Agricultural Marketing
Council (NAMC) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information [RP137-2011].
(c)
Report and Financial Statements of the Agricultural Research Council
(ARC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information [RP108-2011].
(d)
Report and Financial Statements of the Perishable Products Export Control
Board (PPECB) for 2010-11, including the Report of the Independent
Auditors on the Financial Statements and Performance Information.
(e)
Report and Financial Statements of the Marine Living Resources Fund
(MLRF) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information [RP174-2011].
(f)
Report and Financial Statements of the Ncera Farms (Pty) Ltd for 2010-11,
including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(g)
Report and Financial Statements of the Onderstepoort Biological Products
(Ltd) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11.
25 OCTOBER 2011
PAGE: 291 of 329
(29) The following papers are referred to the Portfolio Committee on Basic Education
for consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of Vote 14 – Department of Basic
Education – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 14 for 2010-11
[RP197-2011].
(b)
Report and Financial Statements of the Education Labour Relations Council
(ELRC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of the Transformation
Fund of the Education Labour Relations Council for 2010-11 [RP178-2011].
(c)
Report and Financial Statements of the Council for Quality Assurance in
General and Further Education and Training - Umalusi for 2010-11,
including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
(d)
Report and Financial Statements of the South African Council for Educators
for 2010-11, including the Report of the Independent Auditors on the
Financial Statements and Performance Information for 2010-2011.
(30) The following papers are referred to the Portfolio Committee on Defence and
Military Veterans for consideration and report. The Reports of the Auditor-General
25 OCTOBER 2011
PAGE: 292 of 329
on the Financial Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of the Armaments Corporation of South
Africa Limited (Armscor) for 2010-11, including the Report of the AuditorGeneral on the Group Financial Statements and Performance Information for
2010-11 [RP123-2011].
(b)
Report and Financial Statements of Vote 21 – Department of Defence and
Military Veterans – for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information [RP192-2011].
(c)
Report and Financial Statements of the Castle Control Board for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP74-2011].
(31) The following papers are referred to the Portfolio Committee on International
Relations and Cooperation 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:
(a)
Report and Financial Statements of Vote 5 – Department of International
Relations and Cooperation – for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-2011.
25 OCTOBER 2011
(b)
PAGE: 293 of 329
Report and Financial Statements of the African Renaissance and
International Cooperation Fund for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11.
(32) The following papers are referred to the Portfolio Committee on Sport and
Recreation 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:
(a)
Report and Financial Statements of Vote 17 – Sport and Recreation South
Africa – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 17 for 2010-11
[RP176-2011].
(b)
Report and Financial Statements of the South African Institute for Drug-Free
Sport for 2010-11, including the Report of the Auditor-General on the
Financial Statements for 2010-11 [RP151-2009].
(c)
Report and Financial Statements of Boxing South Africa for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11.
(33) The following paper is referred to the Portfolio Committee on Public Enterprises:
25 OCTOBER 2011
(a)
PAGE: 294 of 329
Letter from the Minister of Public Enterprises dated 30 September 2011 to
the Speaker of the National Assembly, explaining the reasons for not tabling
the Pebble Bed Modular Reactor (PBMR) Annual Report for 2010-2011.
(34) The following paper is referred to the Portfolio Committee on Women, Children,
Youth and People with Disabilities 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 Vote 7 – Department of Women,
Children and People with Disabilities – for 2010-11, including the Report of
the Auditor-General on the Financial Statements and Performance
Information.
(35) The following paper is referred to the Portfolio Committee on Rural Development
and Land Reform for consideration:
(a)
Report of the Public Service Commission (PSC) on a Meta-Evaluation of a
Review of Land Redistribution for Agricultural Development (LRAD)
Project Performance (2001-06) – June 2011 [RP62-2011].
(36) The following paper is referred to the Portfolio Committee on Cooperative
Governance and Traditional Affairs for consideration and report:
25 OCTOBER 2011
(a)
PAGE: 295 of 329
Report and Financial Statements of the National House of Traditional
Leaders (NHTL) for 2010-11 [RP227-2011].
(37) The following papers are referred to the Portfolio Committee on Transport for
consideration and report:
(a)
Report of the Regulating Committee to the Airports Company of South
Africa and Air Traffic and Navigation Services Company for 2010-11.
(b)
Report and Financial Statements of the South African Search and Rescue
Organisation for 2010-11.
(c)
Report and Financial Statements of the Air Service Licensing Council
(ASLC) for 2010-11.
(d)
Report and Financial Statements of the International Air Services Council
(IASC) for 2010-11.
(e)
Report and Financial Statements of the Railway Safety Regulator on the
State of Railway Safety in South Africa for 2009-10 [RP51-2011].
(38) The following paper is referred to the Portfolio Committee on Transport:
(a)
Letter from the Minister of Transport dated 10 October 2011 to the Speaker
of the National Assembly, explaining the late submission and tabling of the
25 OCTOBER 2011
PAGE: 296 of 329
annual reports and financial statements of the Road Traffic Management
Corporation (RTMC) and the Driving License Card Account (DLCA) for the
year ended 31 March 2011.
(39) The following papers are referred to the Portfolio Committee on Trade and
Industry:
(a)
Government Notice No R711, published in Government Gazette No 34586,
dated 9 September 2011: Introduction of amendments to the National
Building Regulations to introduce requirements for energy usage in buildings
in terms of section 17(1) of the National Building Regulations and Building
Standards Act, 1977 (Act No 103 of 1977).
(b)
Progress Report on the Implementation of the Industrial Policy Action Plan
(IPAP2) for the year 2010–11.
(40) The following paper is referred to the Portfolio Committee on Labour for
consideration:
(a)
Public Protector Report No 9 of 2011-12 on an investigation into a complaint
of conflict of interest against Mr J Manyi.
(41) The following paper is referred to the Joint Committee on Ethics and Members’
Interests and to the Portfolio Committee on Cooperative Governance and
Traditional Affairs for consideration:
25 OCTOBER 2011
(a)
PAGE: 297 of 329
Public Protector Report No 11 of 2011-12 on an investigation into
allegations of a breach of the Executive Ethics Code by the Minister of Cooperative Governance and Traditional Affairs.
(42) The following papers are 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 23 September 2011, 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 for the protection and
safety of the Deputy President of the Republic of South Africa during his
visit to Côte D’Ivoire.
(b)
Letter from the President of the Republic, dated 23 September 2011, 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 for the protection and
safety of the President of the Republic of South Africa during the visit to
Libya.
(c)
Letter from the President of the Republic, dated 23 September 2011, to the
Speaker of the National Assembly, informing members of the Assembly of
the employment of the South African National Defence Force in cooperation with the South African Police Service in safeguarding the
repatriation of spent nuclear fuel from Pelindaba to Richards Bay and
25 OCTOBER 2011
PAGE: 298 of 329
thereafter the shadowing of the cargo vessel at sea until departure from the
Exclusive Economic Zone (EEZ) of the Republic of South Africa.
(43) The following papers are referred to the Portfolio Committee on Economic
Development for consideration and report. The Reports of the Auditor-General and
Independent Auditors on the Financial Statements and Performance Information are
referred to the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of Vote 27 – Department of Economic
Development – for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information of Vote 27 for 201011.
(b)
Report and Financial Statements of the Industrial Development Corporation
of South Africa Limited (IDC) for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
(c)
Report and Financial Statements of the South African Micro-Finance Apex
Fund (Samaf) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11 [RP762011].
25 OCTOBER 2011
(d)
PAGE: 299 of 329
Report and Financial Statements of Khula Enterprise Finance Limited for
2010-11, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11 [RP78-2011].
(e)
Report and Financial Statements of the Competition Commission for
2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP60-2011].
(f)
Report and Financial Statements of the Competition Tribunal for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance information for 2010-11 [RP114-2011].
(g)
Report and Financial Statements of the International Trade Administration
Commission of South Africa (ITAC) for 2010-11, including the Report of
the Auditor-General on the Financial Statements and Performance
Information for 2010-11 [RP106-2011].
(44) The following papers are referred to the Portfolio Committee on Higher
Education and Training for consideration and report. The Reports of the AuditorGeneral on the Financial Statements and Performance Information are referred to the
Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of Vote 13 – Department of Higher
Education – for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information of Vote 16 for 2010-11
[RP217-2011].
25 OCTOBER 2011
(b)
PAGE: 300 of 329
Report and Financial Statements of the Agricultural Sector Education and
Training Authority (AgriSeta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP144-2011].
(c)
Report and Financial Statements of the Banking Sector Education and
Training Authority (Bank-Seta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP145-2011].
(d)
Report and Financial Statements of Construction Education Training
Authority (CETA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[RP147-2011].
(e)
Report and Financial Statements of the Energy and Water Sector Education
and Training Authority (EWSeta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP152-2011].
(f)
Report and Financial Statements of Education Training and Development
Practices Sector Education and Training Authority (ETDP Seta) for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP148-2011].
25 OCTOBER 2011
(g)
PAGE: 301 of 329
Report and Financial Statements of the Finance, Accounting, Management
Consulting and other Financial Services Sector Education and Training
Authority for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1492011].
(h)
Report and Financial Statements of the Food and Beverages Manufacturing
Industry Banking Sector Education and Training Authority (Foodbev-Seta)
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11 [RP150-2011].
(i)
Report and Financial Statements of the Health and Welfare Sector Education
and Training Authority (HWSeta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP151-2011].
(j)
Report and Financial Statements of the Chemical Industries and Training
Authority (Chieta) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[RP146-2011].
(k)
Report and Financial Statements of the Transport Sector Education and
Training Authority (Teta) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP160-2011].
25 OCTOBER 2011
(l)
PAGE: 302 of 329
Report and Financial Statements of the Public Service Sector Education and
Training Authority (PSeta) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP186-2011].
(m)
Report and Financial Statements of The Insurance Sector Education and
Training Authority (Inseta) for 2010-11, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 201011 [RP154-2011].
(n)
Report and Financial Statements of the Information System, Electronics and
Telecommunications Technologies Sector Education and Training Authority
(Isett-Seta) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1532011].
(o)
Report and Financial Statements of the Manufacturing, Engineering and
Related Services Education and Training Authority (MER-Seta) for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP156-2011].
(p)
Report and Financial Statements of the Mining Qualifications Authority
(MQA) for 2010-11, including the Report of the Auditor-General on the
25 OCTOBER 2011
PAGE: 303 of 329
Financial Statements and Performance Information for 2010-11 [RP2062011].
(q)
Report and Financial Statements of the Safety and Security Sector Education
and Training Authority (Sasseta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP157-2011].
(r)
Report and Financial Statements of the Services Sector Education and
Training Authority (Services-Seta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP61-2011].
(s)
Report and Financial Statements of the Tourism, Hospitality and Sport
Education and Training Authority (Theta) for 2010-11, including the Report
of the Auditor-General on the Financial Statements and Performance
information for 2010-11 [RP162-2011].
(t)
Report and Financial Statements of the Wholesale and Retail Sector
Education and Training Authority (W&RSeta) for 2010-11, including the
Report of the Auditor-General on the Financial Statements and Performance
Information for 2010-11 [RP161-2011].
(u)
Report and Financial Statements of the Local Government Sector Education
and Training Authority (LGSeta) for 2010-11, including the Report of the
25 OCTOBER 2011
PAGE: 304 of 329
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP155-2011].
(v)
Report and Financial Statements of the Forest Industries Sector Education
and Training Authority (Fieta) for 2010-11, including the Report of the
Auditor-General on the Financial Statements and Performance Information
for 2010-11 [RP185-2011].
(w)
Report and Financial Statements of the Media, Advertising, Publishing,
Printing and Packaging Sector Education and Training Authority (MapppSeta) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1842011].
(x)
Report and Financial Statements of the Clothing, Textiles, Footwear and
Leather Sector Education and Training Authority (CTFL-Seta) for 2010-11,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-11 [RP183-2011].
(y)
Report and Financial Statements of the South African Qualifications
Authority (SAQA) for 2010-11, including the Report of the Auditor-General
on the Financial Statements and Performance Information for 2010-11
[RP97-2011].
25 OCTOBER 2011
(z)
PAGE: 305 of 329
Report and Financial Statements of the Council on Higher Education (CHE)
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information for 2010-11.
(aa)
Report and Financial Statements of the National Student Financial Aid
Scheme for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1642011].
(45) The following papers are referred to the Portfolio Committee on Public Works for
consideration and report. The Reports of the Auditor-General and Independent
Auditors on the Financial Statements and Performance Information are referred to
the Committee on Public Accounts for consideration:
(a)
Report and Financial Statements of Vote 6 – Department of Public Works –
for 2010-11, including the Report of the Auditor-General on the Financial
Statements and Performance Information [RP259-2011].
(b)
Report and Financial Statements of the Construction Industry Development
Board (CIDB) for 2010-11, including the Report of the Auditor-General on
the Financial Statements and Performance Information for 2010-11.
(c)
Report and Financial Statements of Agrément South Africa (ASA) for 201011, including the Report of the Independent Auditors on the Financial
Statements and Performance Information for 2010-11.
25 OCTOBER 2011
(d)
PAGE: 306 of 329
Report and Financial Statements of the Independent Development Trust
(IDT) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP1262011].
(e)
Report and Financial Statements of the Council for the Built Environment
(CBE) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11.
(f)
Report and Financial Statements of the Engineering Council of South Africa
(ECSA) for 2010-11, including the Report of the Independent Auditors on
the Financial Statements and Performance Information for 2010-11.
(g)
Report and Financial Statements of the South African Council for the
Property Valuers Profession for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
(h)
Report and Financial Statements of the South African Council for the
Quantity Surveying Profession for 2010-11, including the Report of the
Independent Auditors on the Financial Statements and Performance
Information for 2010-11.
(i)
Report and Financial Statements of the South African Council for the
Architectural Profession (SACAP) for 2010-11, including the Report of the
25 OCTOBER 2011
PAGE: 307 of 329
Independent Auditors on the Financial Statements and Performance
Information for 2010-11 [R136-2011].
(46) The following paper is referred to the Portfolio Committee on Water and
Environmental Affairs for consideration:
(a)
White Paper on the National Climate Change Response.
(47) The following paper is referred to the Standing Committee on Finance for
consideration and to the Portfolio Committee on Cooperative Governance and
Traditional Affairs:
(a)
2011 Local Government Budgets and Expenditure Review 2006-07 –
2012-13.
(48) The following paper is referred to the Committee of Chairpersons and the
Multiparty Women’s Caucus:
(a)
Report on the Consultative Seminar on the Role of Parliament and Provincial
Legislatures in the Achievement of the Millennium Development Goals.
(49) The following paper is referred to the Portfolio Committee on Communications
for consideration and report and to the Portfolio Committee on Trade and
Industry, Portfolio Committee on Arts and Culture and Portfolio Committee on
Tourism. The Report of the Auditor-General on the Financial Statements and
25 OCTOBER 2011
PAGE: 308 of 329
Performance Information is referred to the Committee on Public Accounts for
consideration:
(a)
Report and Financial Statements of the International Marketing Council
(IMC) for 2010-11, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2010-11 [RP362011].
(50) The following paper is referred to the Portfolio Committee on Justice and
Constitutional Development:
(a)
Government Notice No 702, published in Government Gazette No 34572,
dated 31 August 2011: Practical Guidelines for Employees, made in terms of
section 10(4)(a) of the Protected Disclosures Act, 2000 (Act No 26 of 2000).
(51) The following paper is referred to the Portfolio Committee on Police and the
Portfolio Committee on Justice and Constitutional Development:
(a)
Proclamation No R46, published in Government Gazette No 34535, dated 19
August 2011: Transfer of functions under section 97 of the Constitution of
the Republic of South Africa, 1996: Stock Theft Act, 1959 (Act No 57 of
1959) and Game Theft Act, 1991 (Act No 105 of 1991.
TABLINGS
25 OCTOBER 2011
PAGE: 309 of 329
National Assembly and National Council of Provinces
1.
The Minister of Rural Development and Land Reform
(a)
Report and Financial Statements of the Ingonyama Trust Board for 2010-2011,
including the Report of the Auditor-General on the Financial Statements and
Performance Information for 2010-2011 [RP 252-2011].
2.
The Minister of Water and Environmental Affairs
(a)
General Notice No 501 published in Government Gazette No 34487 dated 29 July
2011: Draft Biodiversity Management Plan for Pelargonium Sidoides in terms of the
National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004).
(b)
Notice No 515 published in Government Gazette No 34493 dated 5 August 2011:
Proposed National Ambient Air Quality Standard for Particulate Matter of
Aerodynamic Diameter less than 2,5 Micron Meters in terms of the National
Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004).
(c)
Notice No 516 published in Government Gazette No 34493 dated 5 August 2011:
Nominations for appointment of suitable persons to serve as Members of the Board
of South African National Parks in terms of the National Environmental
Management: Protected Areas Act, 2003 (Act No 57 of 2003).
25 OCTOBER 2011
(d)
PAGE: 310 of 329
General Notice No 538 published in Government Gazette No 34520 dated 11
August 2011: Board of South African Weather Services (SAWS): Nominations for
the appointment of suitable persons as members, in terms of the South African
Weather Service Act, 2001 (Act No 8 of 2001).
(e)
General Notice No 586 published in Government Gazette No 34558 dated 26
August 2011: National Environmental Management Laws Amendment Bill, 2011:
For public comments.
National Assembly
1.
The Speaker
(a)
Reply from the Minister of Justice and Constitutional Development to
recommendations in Report of the Portfolio Committee on Justice and
Constitutional Development on the Criminal Procedure Amendment Bill [B422008], as adopted by the House on 22 October 2008.
Referred to the Portfolio Committee on Justice and Constitutional
Development.
(b)
Reply from the Minister of Social Development to recommendations in Report of
the Portfolio Committee on Social Development on 2009-10 Annual Report of the
25 OCTOBER 2011
PAGE: 311 of 329
South African Social Security Agency (Sassa), as adopted by the House on 18
August 2011.
Referred to the Portfolio Committee on Social Development.
(c)
Letter from the Minister of Rural Development and Land Reform dated 4 October
2011, to the Speaker of the National Assembly explaining the late tabling of the
Annual Report: Ingonyama Trust Board: 2010-2011.
LATE TABLING OF THE ANNUAL REPORT: INGONYAMA TRUST
BOARD: 2010-2011
In terms of section 65(1) of the Public Finance Management Act, the Executive
Authority responsible for a department or public entity must table in the National
Assembly, the annual report and financial statements within one month after the
accounting officer for the department or the accounting authority for the public
entity received the audit report.
Section 65(2) provides that if an Executive Authority fails to table the annual
report and financial statements of the department or the public entity, and the audit
report on those statements, in the relevant legislature within six months after the
end of the financial year to which those statements relate, then the executive
authority must table a written explanation in the legislature setting out the reasons
why they were not tabled.
25 OCTOBER 2011
PAGE: 312 of 329
The reason for the late tabling of the Ingonyama Trust Board results from the
Board having failed to submit its annual report for consideration and approval
within the prescribed timeframes. Regrettably, the Board has been unable to
explain the delays satisfactorily.
The annual report was only submitted to my Office on 30 September. On receipt
of the annual report, my Department had to analyse its content and brief me on it
and this made it impossible to table the annual report and financial statements
earlier. Measures will be put in place to ensure that the Board is fully compliant in
future.
Kind regards
(Signed)
NKWINTI, G E (MP)
MINISTER OF RURAL DEVELOPMENT AND LAND REFORM
COMMITTEE REPORTS
National Assembly
1. Report of the Committee on Private Members’ Legislative Proposals and Special
Petitions on the legislative proposal to regulate Business Interests of State Employees
(Honourable I O Davidson, Democratic Alliance), dated 19 October 2011.
25 OCTOBER 2011
PAGE: 313 of 329
The Committee on Private Members’ Legislative Proposals and Special Petitions, having
considered the legislative proposal to regulate Business Interests of State Employees in
terms of rule 211 of the Rules of the National Assembly, and having consulted with the
Portfolio Committee on Public Service and Administration, the Ministry of Public Service and
Administration, and having heard the presentation by honourable I O Davidson, recommends
that permission not be granted to the member to proceed with the proposed legislation. The
committee wishes to make the following observations with regard to its recommendation:
1. The legislative proposal of honourable Davidson pre-empts legislation soon to be
introduced by the Department of Public Service and Administration.
2. The objectives of the legislative proposal are largely similar to legislation envisaged in
the Public Sector Integrity Framework, published by the Department of Public Service
and Administration.
3. The legislation envisaged in the Framework would apply to public servants in the
national, provincial and local government spheres in relation to the regulation of their
business interests when doing business with the state.
4. The proposed legislation would cover the acceptance of gifts, hospitality and other
benefits; it would cover disclosure of financial interests of public servants; it would
make amendments to the financial disclosure form of public servants; it would place
conditions for public servants with business interests seeking to conduct business with
government; it would place restrictions on public servants doing remunerative work
outside the public service; and it would regulate post public service employment.
5. The proposed legislation would in addition provide for the appointment of ethics
officers to ensure compliance, as well as provide for employment agreements of public
25 OCTOBER 2011
PAGE: 314 of 329
servants to include specific key performance areas that would bind and commit
employees to comply with the measures.
6. It was further envisaged that a special unit would be established that would liaise closely
with the ethics officers to investigate all instances of conflict of interest and ensure that
disciplinary measures were taken.
7. The Minister of Public Service and Administration’s undertaking that the proposed
legislation would be tabled in Parliament before the end of the 2011/12 financial year
was specifically noted, and the Committee resolved to monitor the progress made by the
Department on its undertaking.
Report to be considered.
THURSDAY, 20 OCTOBER 2011
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
(1) Bill passed by National Council of Provinces on 20 October 2011:
(a) Science and Technology Laws Amendment Bill [B 5B – 2011] (National
Assembly – sec 75).
25 OCTOBER 2011
PAGE: 315 of 329
COMMITTEE REPORTS
National Assembly
1.
Report of the Portfolio Committee on Trade and Industry on the Intellectual
Property Laws Amendment Bill [B 8 – 2010] (National Assembly – sec 75), dated 19
October 2011:
The Portfolio Committee on Trade and Industry, having considered the subject of the
Intellectual Property Laws Amendment Bill [B 8 – 2010] (National Assembly – sec 75),
referred to it and classified by the Joint Tagging Mechanism (JTM) as a section 75 Bill,
presents a redraft of the Bill [B 8B – 2010].
A. Process followed by the Committee on the Intellectual Property Laws Amendment Bill
1.
The Bill was submitted in terms of Joint Rule 159 on 28 January 2010.
2.
The Bill was then introduced and referred to the Committee on 21 April 2010.
3.
The Committee’s initial engagement was on the Indigenous Knowledge Protection Policy
using the Intellectual Property System on 17 February 2010.
4.
Subsequently, it had an initial briefing on the Intellectual Property Laws Amendment Bill
from the Department of Trade and Industry (DTI) on 19 May 2010.
25 OCTOBER 2011
5.
PAGE: 316 of 329
Due to the complexity of the Bill, the Committee engaged Prof Coenraad Visser, an
expert on indigenous knowledge and intellectual property, for a workshop on 2 June 2010.
The workshop covered the (i) international experience regarding protection of traditional
or indigenous knowledge systems; (ii) South African experience; (iii) issues being raised
about the proposed Bill and the validity of these concerns; and (iv) way forward for the
public hearings.
6.
Then the Committee embarked on an international study tour to Geneva from 19 to 23
July 2010. The tour included engagements with the World Intellectual Property Office
(WIPO) and International Centre for Trade and Sustainable Development (ICTSD) on
intellectual property matters. ICTSD also agreed to host a workshop on the Intellectual
Property Laws Amendment Bill in Parliament.
7.
The Committee consulted several organisations regarding their views of the Bill including
the National Economic Development and Labour Council (NEDLAC) and the Department
of Science and Technology (27 July 2010), and the Commission for the Promotion and
Protection of the Rights of Cultural, Religious and Linguistic Communities (28 July
2010).
8.
On 5 August 2010, the Committee held a public meeting in Mthatha, Eastern Cape, on the
Intellectual Property Laws Amendment Bill, where the Congress of Traditional Leaders of
South Africa (CONTRALESA) and the surrounding community were invited to share
their concerns regarding the Bill.
25 OCTOBER 2011
9.
PAGE: 317 of 329
A working group on intellectual property was convened, which included four members of
the Committee, support staff and experts from the DTI and the State Law Adviser. The
working group began meeting in September 2010.
10.
The ICTSD Workshop was held on 7 to 8 September 2010, covering (i) Introduction and
background: Concepts and global debate; (ii) Lessons learnt from WIPO-related debates;
(iii) Protection of traditional knowledge related to biodiversity and South’s Africa
experience: Lessons, Opportunities and Challenges; and (iv) the SA Intellectual Property
Amendments Bill: Salient issues, open discussion.
11.
Although the closing date for the initial advertisements for public hearings was in May
2010, given the complexity of the Bill, the Committee decided to first acquaint itself with
the Bill and the intellectual property field before embarking on the hearings. Thus the
hearings were held on 19 and 20 October, as well as 3 November 2010. The DTI provided
their response to public hearings on 10 November 2010.
12.
Due to the urgency of the companies legislation, the intellectual property process was
halted and deliberations were reconvened on 27 May 2011. The first meeting of this
second phase focused on the functioning of the current intellectual property system,
followed by deliberations from 1 to 15 June 2011, which culminated in a decision to
redraft the Intellectual Property Laws Amendment Bill as introduced on 10 June 2011.
The DTI also briefed the Committee on the Bill on 14 June 2011 on issues raised prior to
the redraft.
25 OCTOBER 2011
13.
PAGE: 318 of 329
The redrafted Amendment Bill was submitted by the working group on 27 July 2011 and
deliberations continued from 28 July to 14 September 2011.
14.
The Bill was formally considered and adopted on 16 September 2011.
B.
Minority views were expressed on the following aspects contained in this report:
1.
JTM Classification of Bill
The Committee was of the opinion that the Bill was correctly classified as a section 75
Bill. The IFP disagreed and was of the opinion that the Bill should have been classified as
a section 77 (money) Bill.
2.
Non-referral to National House of Traditional Leaders
Included in the decision on classification by the JTM was the view that the Bill did not
have to be referred to the National House of Traditional Leaders (NHTL). The Committee
agreed with this view. The DA, IFP and FF Plus disagreed, and were of the view that the
Bill should have been referred to the NHTL in terms of section 18(1) of the Traditional
Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003).
3.
Approval of Bill
3.1. After deliberation, the Committee decided to present a redraft of the Bill to the House.
The DA, IFP and FF Plus disagreed, and were of the opinion that the Bill should be
25 OCTOBER 2011
PAGE: 319 of 329
rejected and that the DTI should submit a new sui generis Bill, dealing solely with
Indigenous Knowledge.
3.2. The FF Plus proposed an amendment to the preamble that would open the door to a later
overarching sui generis Bill, which, although the Committee supports further
development on protection of Indigenous Knowledge, was rejected by the Committee
because it is implicit in the preamble. The DA and IFP supported the amendment of the
FF Plus.
3.3. All clauses of the redrafted Bill were agreed to by the Committee, although not one of
them enjoyed the full support of all parties represented in the Committee.
The Committee recommends accordingly.
Report to be considered.
FRIDAY, 21 OCTOBER 2011
COMMITTEE REPORTS
National Assembly
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MONDAY, 24 OCTOBER 2011
COMMITTEE REPORTS
National Assembly
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TUESDAY, 25 OCTOBER 2011
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Draft Bills submitted in terms of Joint Rule 159
(1)
Division of Revenue Amendment Bill, 2011, submitted by the Minister of
Finance.
Referred to the Standing Committee on Appropriations and the Select
Committee on Appropriations.
25 OCTOBER 2011
(2)
PAGE: 321 of 329
Taxation Laws Second Amendment Bill, 2011, submitted by the Minister of
Finance.
Referred to the Standing Committee on Finance and the Select Committee on
Finance.
National Assembly
The Speaker
1.
Introduction of Bills
(1)
The Minister of Finance
(a)
Adjustments Appropriation Bill [B 18 – 2011] (National Assembly –
proposed sec 77).
(b)
Division of Revenue Amendment Bill [B 17 – 2011] (National Assembly –
proposed sec 76) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 34679 of 13 October 2011.]
Introduction and referral to the Joint Tagging Mechanism (JTM) for classification
in terms of Joint Rule 160.
25 OCTOBER 2011
PAGE: 322 of 329
In terms of Joint Rule 154 written views on the classification of the Bills may be
submitted to the JTM within three parliamentary working days.
(c)
Taxation Laws Amendment Bill [B 19 – 2011] (National Assembly –
proposed sec 77).
(d)
Taxation Laws Second Amendment Bill [B 20 – 2011] (National Assembly
– proposed sec 75) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 34664 of 14 October
2011].
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.
2.
Referral to Committees of papers tabled
(1)
The following paper is referred to the Standing Committee on Appropriations
for consideration and report in accordance with its mandate as set out in section 6
of the Money Bills Amendment Procedure and Related Matters Act, 2009 (No 9 of
2009), and to the Standing Committee on Finance for consideration and report in
accordance with its mandate as set out in section 6 and section 12 of the same Act:
25 OCTOBER 2011
(a)
PAGE: 323 of 329
Medium-Term Budget Policy Statement 2011 [RP 248-2011]
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a)
Medium-Term Budget Policy Statement 2011 [RP 248-2011]
(b)
Adjustments Appropriation Bill [B18-2011]
(c)
Division of Revenue Amendment Bill [B17-2011]
(d)
Taxation Laws Amendment Bill [B19-2011]
(e)
Taxation Laws Second Amendment Bill [B20-2011]
(f)
Adjusted Estimates of National Expenditure 2011 [RP 247-2011] which includes:
1. Vote No 1 – “The Presidency” – Adjustments Estimates, 2011-12;
2. Vote No 2 – “Parliament” – Adjustments Estimates, 2011-12;
25 OCTOBER 2011
PAGE: 324 of 329
3. Vote No 3 – “Cooperative Governance and Traditional Affairs” – Adjustments
Estimates, 2011-12;
4. Vote No 4 – “Home Affairs” – Adjustments Estimates, 2011-12;
5. Vote No 5 – “International Relations and Cooperation” – Adjustments
Estimates, 2011-12;
6. Vote No 6 – “Performance Monitoring and Evaluation” – Adjustments
Estimates, 2011-12
7. Vote No 7 – “Public Works” – Adjustments Estimates, 2011-12;
8. Vote No 8 – “Women, Children and People with Disabilities” – Adjustments
Estimates, 2011-12;
9. Vote No 9 – “Government Communication and Information System” –
Adjustments Estimates, 2011-12;
10. Vote No 10 – “National Treasury” – Adjustments Estimates, 2011-12;
11. Vote No 11 – “Public Enterprises” – Adjustments Estimates, 2011-12;
12. Vote No 12 – “Public Service and Administration” – Adjustments Estimates,
2011-12;
25 OCTOBER 2011
PAGE: 325 of 329
13. Vote No 13 – “Statistics South Africa” – Adjustments Estimates, 2011-12;
14. Vote No 14 – “Arts and Culture” – Adjustments Estimates, 2011-12;
15. Vote No 15 – “Basic Education” – Adjustments Estimates, 2011-12;
16. Vote No 16 – “Health” – Adjustments Estimates, 2011-12;
17. Vote No 17 – “Higher Education and Training” – Adjustments Estimates, 201112;
18. Vote No 18 – “Labour” – Adjustments Estimates, 2011-12;
19. Vote No 19 – “Social Development” – Adjustments Estimates, 2011-12;
20. Vote No 20 – “Sport and Recreation South Africa” – Adjustments Estimates,
2011-12;
21. Vote No 21 – “Correctional Services” – Adjustments Estimates, 2011-12;
22. Vote No 22 – “Defence and Military Veterans” – Adjustments Estimates, 201112;
23. Vote No 23 – “Independent Complaints Directorate” – Adjustments Estimates,
2011-12;
25 OCTOBER 2011
PAGE: 326 of 329
24. Vote No 24 – “Justice and Constitutional Development” – Adjustments
Estimates, 2011-12;
25. Vote No 25 – “Police” – Adjustments Estimates, 2011-12;
26. Vote No 26 – “Agriculture, Forestry and Fisheries” – Adjustments Estimates,
2011-12;
27. Vote No 27 – “Communications” – Adjustments Estimates, 2011-12;
28. Vote No 28 – “Economic Development” – Adjustments Estimates, 2011-12;
29. Vote No 29 – “Energy” – Adjustments Estimates, 2011-12;
30. Vote No 30 – “Environmental Affairs” – Adjustments Estimates, 2011-12;
31. Vote No 31 – “Human Settlements” – Adjustments Estimates, 2011-12;
32. Vote No 32 – “Mineral Resources” – Adjustments Estimates, 2011-12;
33. Vote No 33 – “Rural Development and Land Reform” – Adjustments Estimates,
2011-12;
34. Vote No 34 – “Science and Technology” – Adjustments Estimates, 2011-12;
35. Vote No 35 – “Tourism” – Adjustments Estimates, 2011-12;
25 OCTOBER 2011
PAGE: 327 of 329
36. Vote No 36 – “Trade and Industry” – Adjustments Estimates, 2011-12;
37. Vote No 37 – “Transport” – Adjustments Estimates, 2011-12;
38. Vote No 38 – “Water Affairs” – Adjustments Estimates, 2011-12.
COMMITTEE REPORTS
National Assembly
THIS REPORT REPLACES THE REPORT OF THE PORTFOLIO COMMITTEE ON
CORRECTIONAL SERVICES PUBLISHED IN ANNOUNCEMENTS, TABLINGS AND
COMMITTEE REPORTS No. 117 – 2011 ON 14 SEPTEMBER 2011, P2864.
1. REPORT OF THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES
ON THE DRAFT REGULATIONS MADE IN TERMS OF THE CORRECTIONAL
SERVICES ACT (ACT 111 OF 1998) DATED 14 SEPTEMBER 2011
The Portfolio Committee on Correctional Services, having considered the proposed
amendments to the Correctional Services Regulations, 2004 and reports as follows:
1.
PROCESS
25 OCTOBER 2011
1.1
PAGE: 328 of 329
The draft amendments to the 2004 regulations of the Correctional Services Act were
tabled in Parliament on 15 August 2011 and referred to the Portfolio Committee on
Correctional Services (‘the Committee’) on Wednesday, 24 August 2011. On 31 August
2011 the Committee received a briefing by the Department of Correctional Services
(DCS) on the proposed amendments.
1.2
The amendments seek to align the Correctional Services Act regulations with the 2008
amendments to the principal act, and the Correctional Matters Amendment Act (Act 5 of
2011). Regulations 29A and 29B were made under section 79(8) of the Correctional
Services Act, Act 111 of 1998 and relate to the processes and procedures to follow when
considering and administering medical parole. These regulations were submitted to
Parliament for approval. All other regulations were submitted in terms of section 134 (5)
of the Correctional Services Act, Act 111 of 1998, which states that “the Minister must
refer proposed regulations to the relevant Parliamentary Committees in both Houses
dealing with the Department”.
1.3
The Committee invited all those who commented on the Correctional Matters
Amendment Bill to submit written comments on the proposed amendments. Comment
was received from the Omega Research Foundation and the Institute for Security
Studies (ISS) Arms Management programme and the Judicial Inspectorate for
Correctional Services.
2.
RECOMMENDATIONS
The Committee raised no serious reservations about the proposed amendments and
recommends as below.
25 OCTOBER 2011
2.1
PAGE: 329 of 329
Amendment of Regulation 8: The DCS should ensure that cellphones are not only
prohibited, but also impossible to use within correctional centres. If technology that
disables cellphones so that they cannot be used at all is available, it should be invested
in to ensure that there are no security breaches.
2.2
Amendment of Regulation 26H: The DCS should ensure that where remand detainees
are under the supervision of the South African Police Service, whether for purposes of
investigation, or because there is no correctional or remand detention centre in the
vicinity, a service level agreement be entered into to ensure that at no point during their
detention, remand detainees’ right to services is violated.
2.3
Regulations 29A and 29B: The regulations relate to the administration and
consideration of medical parole, and the establishment and composition of the Medical
Advisory Board, and were developed in consultation with the South African Medical
Association. The Committee recommends that they be approved by the House.
Report to be considered