14 FEBRUARY 2012 PAGE: 1 of 447 TUESDAY, 14 FEBRUARY 2012 ____ PROCEEDINGS OF THE NATIONAL ASSEMBLY ____ 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 MEMBERS (Announcement) The Speaker announced that the vacancies which occurred in the National Assembly owing to the passing away of Mr L J Tolo, Ms M N Magazi and Mrs M N Matladi had been filled by the nominations of Mr B M Bhanga with effect from 1 December 2011, Ms M C C Pilane-Majake with effect from 18 January 2012 and Mr I S Mfundisi with effect from 25 January 2012 respectively. The Speaker said that the House would, in due course, consider a motion of condolence in respect of the late Ma Matladi, but that in the meantime he would like to convey the House’s condolences. 14 FEBRUARY 2012 PAGE: 2 of 447 The Speaker further announced that the vacancies which occurred owing to the resignations of Mr P J C Pretorius, Mr A M Figlan and Mr M J Ellis had been filled by the nominations of Mr S Esau, Mr E H Eloff and Mr M R Sayedali Shah, respectively, with effect from 1 February 2012. The vacancy which occurred owing to the resignation of Mr D K Mataboge had been filled by the nomination of Mr J K Moepeng with effect from 6 February 2012. The members had made and subscribed the oath or solemn affirmation in the Speaker’s office. DEBATE ON PRESIDENT’S STATE OF THE NATION ADDRESS The SPEAKER: Hon members, I have received a copy of the President’s address delivered at the Joint Sitting on 9 February 2012. The speech has been printed in the Minutes of the Joint Sitting. I now wish to invite the hon Chief Whip of the Majority Party to speak. [Applause.] The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, hon President, hon Deputy President and distinguished members of this House, I have chosen to speak on celebrating 100 years of selfless struggle and intensifying the fight against the triple challenge of inequality, poverty and unemployment. 14 FEBRUARY 2012 PAGE: 3 of 447 Hon President, we wish to commend you for yet another inspiring and visionary state of the nation address. Your speech, which was followed by millions of our people across the country, was characterised by clarity and conviction, and indeed gave South Africans a reason to believe, to hope, to be optimistic that a better life for all is possible. It raised confidence in the future of this country and gave an encouraging picture of a government that is sensitive and alive to the urgent needs of the people. It demonstrated a nation at work, holding hands to eradicate unemployment, inequality and poverty. Thank you, hon President, for giving this nation a reason to believe that a better future is indeed possible, that a better South Africa is here. Your speech was indeed a fitting tribute to the 100 years of the glorious liberation struggle, which South Africans, united in their diversity, are celebrating this year. It made the transition from 100 years into another century palpable. Hon President, on Saturday South Africa and the world recalled and celebrated the release of our icon, Nelson Mandela, from prison, marking the beginning of a negotiated settlement that produced our constitutional democracy. We congratulate your government and the Reserve Bank on the honour bestowed upon the father of the nation, Nelson Mandela, on Saturday by using his face on all bank notes. [Applause.] As Parliament, we shall celebrate his release and that of other political prisoners, together with Media Monitoring Africa 14 FEBRUARY 2012 PAGE: 4 of 447 and other stakeholders, when we celebrate our Constitution and declare 20 February to 25 February “Constitution Week”. The release of Nelson Mandela and other political prisoners makes February a South African history month worthy of annual celebration. This will assist our youth and children not to forget where they come from and the sacrifices which were made to give us the freedom we enjoy today. We want to use this opportunity to once again assure the father of the nation that, in the ANC, our constitutional democracy continues to be in good hands. The ANC is the author and guardian of this Constitution. We shall continue to safeguard the fundamental freedoms of all South Africans, both black and white. Constitutions the world over are dynamic and subject to review. It is in recognition of this fact that this Parliament established the Constitutional Review Committee. This does not derogate from the commitment of Parliament and the executive to uphold and enforce the Constitution. The ANC fully supports the foundation that Madiba laid for nation-building and social cohesion. At the 10th anniversary of the Sowetan’s nation-building initiative, Madiba awakened us to the challenges ahead in definite and emphatic terms, and I quote: 14 FEBRUARY 2012 PAGE: 5 of 447 Our nation-building efforts must undo the effects of three centuries and more of colonialism and racism. Many years will be needed to achieve the equitable redistribution of wealth to which we aspire. But having made a good start, the challenge now is to increase the pace of delivery to further better the lives of the people. We can face that challenge with confidence. By joining hands, South Africans have overcome problems others thought would forever haunt us. As we destroyed apartheid, so too can we defeat poverty and discrimination if we are united. Our confidence derives from the fact that South Africa is a country rich not only in natural resources but, above all, in its people. Since your inauguration in May 2009, hon President, you have always had a clear vision and mission, informed by the wisdom of the founders of our democracy. Your 2012 state of the nation address provides the road map for the country and a comprehensive plan to address the triple challenge of inequality, poverty and unemployment. This is the product of a disciplined mind, consistent work and adherence to revolutionary values and principles. Regarding progress made, this journey began in 2009 when the ANC decided to focus on five priorities. These are education, health, rural development and agrarian reform, taking forward the fight against crime, and creating decent work. Although the ANC did well on these priorities, it remained concerned with poverty and unemployment; hence it declared 2011 a year of job creation through 14 FEBRUARY 2012 PAGE: 6 of 447 meaningful economic transformation and inclusive growth. Your administration introduced a New Growth Path that guided its work in achieving these goals. Working within the premise that the creation of decent jobs is at the centre of your economic policies, you directed government departments, including the provincial and local government spheres, to align their programmes with the job creation imperative. You also embraced research findings, in terms of which jobs could be created in six priority areas, including infrastructure development, agriculture, mining and beneficiation manufacturing, the green economy, and tourism. From the outset, you recognised that colonial oppression and apartheid degraded and dehumanised black people in general and Africans in particular. Thus, in June 2009, you told this House that the recovery of the humanity of all people had been a guiding tenet of the ANC for the many decades of its existence. You went on to say: It will be a central feature of our shared efforts over the term of this government, because we know that working together, we can do more to build a great South Africa. Decent work and a steadily improving quality of life are essential for the recovery of the humanity of all our people. So too is empowerment through access to quality education and skills development. Safe water, 14 FEBRUARY 2012 PAGE: 7 of 447 affordable energy, decent shelter, and cohesive, secure and vibrant communities are similarly all important for the recovery of this humanity ... Central to this recovery of our humanity is also the need for access to economic opportunities and to earn a living. Your linkage of the recovery of the humanity of all people and the five priorities of government demonstrated that your administration is rooted in the revolutionary morality of the founders of our movement. The 2009 decision to establish the National Planning Commission revealed a desire for a holistic approach to the triple challenge of inequality, poverty and unemployment. The release of the National Development Plan coincides with and reinforces the National Infrastructure Development Plan, which is a road map for the country and the plans outlined in the state of the nation address. This provides further evidence of your vision and resolve to make this country work. The ANC agrees with the President that despite progress made, the triple challenge of inequality, poverty and unemployment persists. With regard to the roots of the triple challenge, the seeds of this triple challenge can be traced back to the forcible dispossession of land and its natural resources by colonialism and the introduction 14 FEBRUARY 2012 PAGE: 8 of 447 of racially discriminatory laws in both state and church institutions after the establishment of the racist, white supremacist Union of South Africa in 1910. The ANC was established by intellectuals and traditional and religious leaders on 8 January 1912 to respond to this colonial onslaught against African people. The dispossession of African people of their land was consolidated by the 1913 Land Act, which allocated 87% of the land to the white minority. The confinement of African people to native reserves under this law, the adulteration of the institution of traditional leadership and of Christianity, followed by the creation of Bantustans during the 1970s, entrenched the inequalities, poverty and structural unemployment that the ANC inherited in 1994. Soon after your inauguration in 2009, Mr President, your government made the correct determination in that the challenges facing the country could not be overcome through piecemeal planning, and took a decision to establish the National Planning Commission that has just produced a National Development Plan informed by our Constitution. The ANC welcomes this National Development Plan, which also singles out the triple challenge for consideration. Your determination, Mr President, that higher growth and job creation are the solutions is spot on. 14 FEBRUARY 2012 PAGE: 9 of 447 Since your inauguration in 2009, you have adopted a holistic approach to the challenges inherited from the apartheid colonial system. This approach is consistent with the character of a developmental state that has a responsibility to lead and guide the economy and to intervene in the interests of the poor. Informed by this responsibility, your administration launched the New Growth Path framework and identified job drivers as infrastructure development, tourism, agriculture, mining, manufacturing and the green economy. Pursuant to this plan, you declared 2011 the year of job creation and transformation of the economy and mobilised social partners, including business, labour and the community sector, to work with your administration in implementing the New Growth Path. This confirmed your commitment to the recovery of the humanity of all South Africans and the creation of a prosperous society. The ANC fully agrees with you that by mainstreaming job creation and strengthening social dialogue and co-operation among government, business, labour and the community sector, you laid a sound basis for nation-building and social cohesion. The announcement of a massive infrastructure development plan and the invitation to the nation to partner with government in this drive will effectively address the triple challenge of inequality, poverty and unemployment. The drive to develop a knowledge economy will enhance the efficiency of your infrastructure development plan by producing 14 FEBRUARY 2012 PAGE: 10 of 447 the skills necessary for government to work harder, faster and smarter. With regard to co-ordination and implementation of programmes, the co-ordination and integration of plans inherent in the Presidential Infrastructure Co-ordinating Commission calls upon Parliament and political parties to ensure that it is driven as a national project worthy of support by all of us. This plan is a national issue that requires the co-ordination and integration of multiparty oversight work. In this regard, we are happy to announce that the parliamentary oversight authority has agreed to strengthen and resource the multiparty Chief Whips’ Forum as an integral organ of Parliament. This will enhance the oversight role of Parliament and ensure the successful implementation of the presidential infrastructure development plan. The multiparty Chief Whips’ Forum will also establish an interparliamentary Chief Whips’ Forum, which will bring together provincial legislatures and councils to ensure co-ordinated and integrated oversight on government. For our part, as the ANC, we will capacitate our one-stop centre parliamentary constituency offices to enable them to drive regional and local people’s assemblies. This new approach to constituency work will strengthen and entrench social dialogue and co-operation among government, business, labour and the community sector. 14 FEBRUARY 2012 PAGE: 11 of 447 The presidential infrastructure plan, including its social infrastructure project, will benefit the poorest of the poor and bring them into the mainstream economy. In terms of this plan, government could renovate unutilised and underutilised buildings in towns and townships and make them available for skills development, cultural industries and cultural tourism. This local economic development initiative could be strengthened by government’s support for the development of marginalised and diminished heritages, languages and indigenous knowledge systems in order to unlock the full potential of historically disadvantaged communities. The plan could also enable cultural industrialists and small businesses to gain access to the markets. The development of the African heritage and the indigenous knowledge systems, IKS, could position South Africa as one of the motivating forces of the African cultural renaissance. In this regard, the Mapungubwe cultural landscape, connecting South Africa, Botswana, Zimbabwe and other Southern African Development Community countries, could contribute to Nepad’s, the New Partnership for Africa’s Development, regional and infrastructure integration agenda through the proposed Mapungubwe heritage route, connecting the SADC countries. The intercultural regional integration through the Mapungubwe heritage route would combat tribalism, xenophobia and Afrophobia, as well as regionalism, and enhance African unity and co-operation. The 14 FEBRUARY 2012 PAGE: 12 of 447 improvement of the infrastructure at the Mapungubwe heritage site and support by SADC governments and parliaments of annual cultural festivals at Mapungubwe and related heritage sites are critical for the advancement of the African cultural renaissance and Nepad’s regional integration agenda. The ANC welcomes the convening of a presidential infrastructure summit and the proposed social pact and dialogue. We trust that the community sectors, especially organised interfaith bodies, the institution of traditional leadership and organised traditional health practitioners will be invited. The newly established National Interfaith Council of SA, Nicsa, has already begun preparations for the desired national dialogue. Regarding the recognition of wars of resistance and the role of women in them, the undertaking of heritage projects is critical for nation-building and social cohesion. Therefore the prioritisation of memorial sites, including the Pondo Revolt, the sites of the frontier wars, the 1913 revolt by African women in the Free State and the 1957 antipass revolt by women in Zeerust, will reshape our history and correct the distortions of the past. Women and traditional leaders should indeed be recognised for their roles in the context of our selfless struggle for equality, freedom and justice for all - both black and white South Africans. 14 FEBRUARY 2012 PAGE: 13 of 447 The prioritisation of memorial sites in recognition of women, in particular, deals a deadly blow to the perspective in our society today that there has always been inequality between women and men, and that women have always been subjects and were led by men. This perspective, as you correctly observed, hon President, is a product of the rise of a patriarchal society, which seeks to project women as subordinates of men. In Southern Africa we have examples of the contrary. We have Queens Nzinga of Angola, Nehanda of Zimbabwe, Manthatisi and Modjadji of South Africa. The Modjadji dynasty has ruled from 1800 to date and participated in the wars of resistance and the Anglo-Boer War, now known as the South African War, of 1899 to 1902. Women like Charlotte Makgomo Manya played an active role in the formation of the ANC and attended the founding conference of the ANC. But, as you correctly observed, hon President, little is said about these great women in the form of acknowledging their role and contribution in advancing the struggle of our people, in general, and the women’s struggle, in particular. Charlotte and her husband established the Wilberforce Institute, named after Wilberforce University in the United States. The building built in 1892 remains neglected and dilapidated in Evaton. We thank you for reawakening us to the value of our identity and heritage because a people without identity, history and heritage 14 FEBRUARY 2012 PAGE: 14 of 447 loses its self-knowledge, self-worth, self-esteem, a culture of self-help and self–reliance and the will for development and progress. The recovery of these values is what South Africa needs for the character-building of our youth and the creation of a productive and prosperous nation. In conclusion, we welcome the initiative by our government to ensure that the Khoisan people and their indigenous knowledge are brought into the mainstream of this nation. I thank you very much. [Applause.] The LEADER OF THE OPPOSITION: Mr Speaker, hon President, distinguished guests, hon members, in our country today we often talk about two South Africas: the rich and the poor, the white and the black, the rural and the urban, and many more besides. These stories reflect divisions in our past that, until now, we have been unable to properly bridge. But, today, while we are reflecting on the state of our nation, I believe we should be talking about how the South Africa we live in differs from the South Africa we dream about. In the South Africa we live in we face hard realities. Millions of our people lack the means to live lives of their own choosing, communities are brutalised by violent crime, the burden of disease robs our citizens of opportunities, and young people without 14 FEBRUARY 2012 PAGE: 15 of 447 education or employment wake up day after day to a gaping void of hopelessness. In the South Africa we live in our problems are all too real and they grow bigger every day, their solutions moving further from our grasp. But we do not have to accept this. I do not want to live in a South Africa in which you are locked into a particular kind of life forever, simply because you were born into it. And I believe there can be an alternative; another country of our making. My fellow South Africans, our best years are ahead of us, and the party that I lead in Parliament offers a vision to get us there. [Interjections.] [Applause.] People are wounded in postapartheid South Africa, and it is difficult to focus on the future when the pain of the past can still be felt today. But as much as the past has shaped us, we cannot keep living in it. We need avenues to the future. So, our vision is to heal us. Our history does not just remain in the past; it speaks to us and informs our decisions. And so we must be guided by our history, but not imprisoned by it. Our vision is to free us. Our inability to achieve real reconciliation through economic redress is at the heart of our national discontent. Our vision is to build that opportunity. To bring people together, we need to build a bridge across the divide between privilege and poverty that divides 14 FEBRUARY 2012 PAGE: 16 of 447 our people along racial lines. We have to help people where they need it and provide real opportunity that will break down these inequalities. When we do that, we will achieve a real and lasting reconciliation. But our vision will mean little if a DA government does not offer the means to reach the future. [Interjections.] Mr Speaker, I stand here today as the proud new leader of an opposition which is also a government-in-waiting. [Interjections.] [Applause.] Over the coming months and years, we will exercise oversight ... [Interjections.] The SPEAKER: Order! Order, hon members! The LEADER OF THE OPPOSITION: ... draft legislation and hold the governing party accountable for its outcomes. We will speak for the millions of South Africans whose voices have gone unheard in Parliament, and we will sketch for every one of them a picture of a growing and prosperous South Africa under a DA national government. Siyazi ukuthi sibhekene nezingqinamba eziningi eziqondene nobugebengu, ukungaphephi nezinye zokuhlukumezeka nodlame. Ngiyacabanga ukuthi ngezindlela eziningi lokhu kuhlupheka emphakathini kugxile ekuswelekeni kwamathuba emiphakathini yethu. Yize noma kunjalo, siyazi ukuthi zikhona ezinye izimbangela zalezi zinkinga. Siyazi ukuthi ngubugebengu obenza imiphakathi yethu 14 FEBRUARY 2012 PAGE: 17 of 447 ihlalele ovalweni. Lokhu kwenziwa wukungaqini kwezinhlaka ezibekelwe ukusivikela. (Translation of isiZulu paragraphs follows.) [We know that we are faced with many challenges with regard to crime, such as safety, abuse and violence. I think that in so many ways, this suffering in the community is due to a lack of opportunities for our communities. Even though it is like that, we know that there are other causes of these problems. We know that it is crime that makes our communities live in fear. This is caused by the weak structures that are meant to protect us.] We cannot hope to keep our streets safe when the shadow of corruption stalks the highest levels of our Police Service. We cannot take the fights to the criminals that plague us when we lack experienced management at all levels of our Police Service. And we cannot hope to have an effective service that complements an open and free democracy when our police are militarised in name and in their actions. South Africans will not feel safe until they hear an honest discussion about crime at the highest levels of government, nor will they have confidence in our health system, let alone a National Health Insurance scheme, until we face the fundamental problems that threaten it. This is because the problem in health is not the 14 FEBRUARY 2012 PAGE: 18 of 447 principle of access. The problem in health in South Africa is that our existing network of care is not adequately managed. What we need are competent and professional hospital managers who are not accountable to a bureaucracy, but to the hospitals themselves. Real accountability and professionalism will go a long way towards addressing the deficiencies in health care. If these capacity problems are not addressed, our health care system will deteriorate even further, with or without an NHI, and it will be the poorest South Africans who suffer. So our vision is to address their plight. To implement a real programme of redress that will build reconciliation and change our society, we must also have the tools of change at our disposal. To do that, a DA government will focus on the two things that can truly create opportunity: education and the economy. [Interjections.] These two are intertwined, as is the case with our failure or success as a country. Since the consolidation of our democracy, much has been achieved in education. We have historic levels of access, a standardised curriculum for all our learners, regardless of race, and truly exceptional levels of budgetary investment year on year. But as much as we have invested, education is seldom the vehicle for opportunity that so many of our children need it to be. Too many of them become lost in a system that seems to have a measure of failure hardwired into it. 14 FEBRUARY 2012 PAGE: 19 of 447 South Africans don’t have to live in the country if they choose not to. I don’t believe that we should just celebrate access. We should celebrate children completing their education. Over a million learners enrolled for Grade 1 in 2000, but only half that number wrote matric last year, and just over 348 000 passed. That means just 33% of the children who started school in Grade 1 finished matric. Why is this? In disadvantaged schools teachers work on average three and half hours a day, compared to six and a half hours in advantaged schools. In disadvantaged schools, a fifth of the teachers are absent on Fridays and almost 30% of students are taught maths by teachers with no maths qualifications. If we compromise on our children’s education, we accept a two-tiered school system as an unchangeable fact of life. Education is the only way out for most people who want to work to have a better life than the one they were born into. I do not believe that we should accept that there will always be schools that are terminally dysfunctional or that there will always be some teacher who will not or cannot teach. There should be no such thing as compromising a child’s future. So our vision is not to compromise. Because education is the foundation of an economic strategy that seeks to build opportunity, I believe that we should give schools that are performing more power to manage their own affairs. We will direct maximum resources to the first three years of schooling and 14 FEBRUARY 2012 PAGE: 20 of 447 ensure that there is compulsory testing of learners in Grades 3, 6 and 9. We will maximise resources spending on schools that have gone without for decades, supplying them with text-rich content and books, delivered on time, before using money on bloated administrative functions. And we won’t just make schools a place where our children are evaluated. They need to be taught by people who demonstrate not only their capacity, but also their passion for education. We will give those with this calling that chance. Mr Speaker, most teachers deserve our thanks for their dedication and the work that they do. But just as teachers have rights, so do children. Our government will pass legislation that will respect teachers’ right to strike, but subject them to certain limitations. Before a strike can happen, there will need to be consultation and agreement between the government, the unions and the school governing bodies. In education, we need partners who are truly willing to help our children, every step of the way. So we won’t forget about the majority of teachers who want to be part of our pact for the future. But in the dream of our future, fixing schools is just one part. If we can ensure that our children get the best education they possibly can, then we must ensure that they can enter an economy where they can find a job. 14 FEBRUARY 2012 PAGE: 21 of 447 In several ways South Africa’s economy has flourished in the democratic era, free of the shackles of sanctions, restricted trade access and warped internal economic policies. But the country we live in today has some very harsh economic realities. We applaud any gains in the fight against unemployment and real indicators that show victory in this struggle. However, an expanded definition of unemployment, which includes those that have given up looking for work, shows that more than 100 000 jobs were lost last year. Furthermore, the last decade has produced only 624 000 jobs, meaning that total employment has increased at a rate of just 0,5%. This means that the rate of job creation would need to rise by nearly 10 times in order to meet the most optimistic projections of job creation for the end of the decade. In contrast, one of our fellow Brics countries, Brazil, has an unemployment rate five times lower than ours, while we continue to experience lukewarm economic growth. Last year we grew at 3,4%, while Africa, the continent we claim to lead, experienced a growth rate of 5,5%. Countries in our region, like Angola and Botswana, are growing at 9,4% and 7,8%. I believe that South Africa’s major challenge lies in its competitiveness. We are less efficient than many of our emerging market competitors. Turkey, for instance, withdraws more value out 14 FEBRUARY 2012 PAGE: 22 of 447 of every rand from taxation than we do. Other governments simply develop higher returns. In addition, South African labour is uncompetitive. Labour productivity is much lower than the rest of the developing world. Our competitiveness has slipped in key sectors like mining, agriculture and manufacturing. In mining, especially, we are not as profitable or as desirable as elsewhere in Africa. So, in the midst of a commodity price boom, we saw investment in the mining sector drop. Expensive and highly regulated labour kills competitiveness and it kills jobs. And increased state intervention in the economy bloats the public sector and creates inefficiencies. A commitment to intervention for intervention’s sake means that we have too many voices saying too many things. If investors wanted to predict what South Africa’s economic policy was going to look like in three years’ time, they would have to consult the New Growth Path, the National Development Plan, the Industrial Policy Action Plan 2 and the budgeting process, and try to understand the many contradictions between them. I propose that we take our economy from being an average performer with massive potential to one that capitalises on our advantages to grow faster and assume the economic leadership role in Africa that we should have. 14 FEBRUARY 2012 PAGE: 23 of 447 As part of our vision for South Africa, we will ease labour-market entry to include voluntary exemptions for designated economic areas. This will create a competitive niche entry point for first-time workers. Complementing that strategy, we would introduce a targeted youth wage subsidy for job seekers between 18 and 29 years old, earning below the personal tax income threshold. Opportunity will also be spread to those wishing to start their own businesses. We will create a one-stop shop for business registrations where prospective entrepreneurs may register a company name, lodge their documentation with the Companies and Intellectual Property Commission and register with the SA Revenue Service, Sars, and the Department of Labour. Mr Speaker, opportunity must take stock of those who have been systemically and historically disadvantaged. One of the ways to do this is to ensure that there is true financial redress for those who were blocked from accessing economic opportunities in the past. That means making economic empowerment truly broad based. I think that our current model, which relies on arbitrary quotas, has done little more than expand the size of the financial elite by creating a special category of beneficiaries who can access economic opportunities again and again. Our vision is to do more to help the average worker become an owner of capital. That means building into contracts the need for real 14 FEBRUARY 2012 PAGE: 24 of 447 partnerships between business and employees and incentivising share ownership across the economy. Dr C P MULDER: Hon Speaker ... The SPEAKER: What point are you rising on, sir? Dr C P MULDER: I would like to know if the hon Leader of the Opposition will take a question. [Interjections.] The SPEAKER: Will you take a question? The LEADER OF THE OPPOSITION: I will not. The SPEAKER: She will not take a question. [Interjections.] Order, hon members! The question was not addressed to you. Please proceed. The LEADER OF THE OPPOSITION: Our vision is to do more to help the average worker become an owner of capital. That means building into contracts the need for real partnerships between business and employees and incentivising share ownership across the economy. And we will invest in infrastructure. This investment, when coupled with a sound financial strategy and real capacity in implementing agents, is the best way that the state can create the economic-enabling environment for growth. 14 FEBRUARY 2012 PAGE: 25 of 447 But I think that we should also realise that the state cannot be the final determinant in the economy and that, as much as we invest in infrastructure, the state cannot have a holistic plan for every sector, especially when it is marred by incapacity. As such, a DA government will replace the current Industrial Policy Action Plan 2 with a streamlined industrial development and growth strategy that would focus on specific activities rather than on whole sectors, create targeted financial incentives for new enterprises and develop a dedicated venture capital fund. We will address one of the most divisive legacies of our past: the legacy of the 1913 Land Act. We know that people who once made their living off the land were driven from it and forced into an economy for which the compounding sin of Bantu education deliberately provided limited skills. But land reform in our country is not working because of the incompetence and incapacity of the very institutions that are supposed to drive it. Our vision is to make right that wrong. We will use the mechanisms at our disposal to create truly diverse rural ownership. And that diversity, again, is not about empowering a segment of society that is already empowered. It is about giving new opportunities to those who are without resources and who want to farm. 14 FEBRUARY 2012 PAGE: 26 of 447 Somlomo, lo mbono omuhle uzonyamalala uma sizicabangela thina sodwa, singasebenzeli umphakathi nezwe lethu. [Ubuwelewele.] [Speaker, this good vision will vanish if we only think of ourselves, and not work for the community and our country. [Interjections.]] The SPEAKER: Hon members, order! The LEADER OF THE OPPOSITION: Umbono wethu uzobuyisa isithunzi ekusebenzeleni kwethu imiphakathi. Isithunzi esizokwakhiwa ukuthi sibe nomdlandla wokusebenzela umphakathi, hhayi ukuzibonelela thina. [Ubuwelewele.] [Our vision will restore the dignity of the communities by working for them. This dignity will be built by being determined to work for our communities, and not only by looking after ourselves. [Interjections.]] As the custodians of the state, we will ensure that we limit opportunities for corruption. As public servants we should be an embodiment of what is best about those among us who want to work towards the future, faithfully and honestly. That doesn’t mean having the courage of our convictions only for the television cameras; it means working every day with integrity. Key to our vision will be bigger penalties and better enforcement of punitive clauses in the Public Finance Management Act. We will introduce a National Business Interests of Employees Act to ensure 14 FEBRUARY 2012 PAGE: 27 of 447 that the partnership between the state and business is not through the businesses of those who work for the state. The South Africa that we want is not born of false promises. Our vision will end the expectation that some generations will be lost. We will only be satisfied when we know that our children will have more tomorrow than we do today. The government must empower, not prohibit. It must provide opportunity, not encumbrance. We do not have to resign ourselves to this country that we live in today. When we start accepting that we have the means to realise our deepest hopes and ambitions, we can make the country of our dreams a reality. That is the vision we offer South Africa today. We demand the future that we dreamed of in 1994 and, in our future, we will make it together. I thank you. [Applause.] Ms L JACOBUS: Hon Speaker, on a point of order, please! The SPEAKER: What point are you rising on? Ms L JACOBUS: I am rising on a point of order in respect of the reference to the hon Mazibuko as the Leader of the Opposition. The hon Mazibuko and all the other ... The SPEAKER: Hon member, that is not a point of order. [Interjections.] 14 FEBRUARY 2012 PAGE: 28 of 447 Ms L JACOBUS: No, it is a point of order, Speaker. [Interjections.] The SPEAKER: Take your seat, hon member. [Interjections.] It’s not a point of order. Please proceed, Mr Lekota. Mr M G P LEKOTA: Mr Speaker, I hope that you’ll remember that minute that she took from my time. Thank you, sir. Hon President, Deputy President and hon members, the National Development Plan identified a number of key problems that our country needs to deal with if it is to advance. We are particularly attracted to the identification of the question of poor education as impacting negatively on skills development in the country. Our own approach is that, unless South Africa can transform its human resource element, unless we can transform the lives of many of the citizens of our country who are not only unemployed but unemployable, we will not be able to tackle effectively the triple challenge of poverty, unemployment and inequality. Mr President, we had hoped that a major part of the government’s approach on this question would focus effectively on dealing with this question of training and education. For very many centuries, African people in this country have been denied opportunities of access to education and training, therefore making them less 14 FEBRUARY 2012 PAGE: 29 of 447 effective and less productive than what the country required them to be. This is a singular issue that we need to address more than any other, because unless we indeed address it, we will not be able to expand the economy, we will not be able to make our people capable of dragging themselves out of the poverty trap, the backwardness and the squalor in which they find themselves. It is important that we return to this issue. This is not to say, Mr President, that the issue you raised on infrastructure development is not of any significance. It is important. All it can do at the moment is arrest, for a certain period of time, the deterioration and perhaps assist in keeping stability, but it does not eliminate the fact that we continue to go deeper into a crisis of the unemployable and unemployability, which, at one stage or another, will simply not be controllable by us as a country. So, I would like to say that it is important that we should return to and revisit this issue from time to time. This issue of unemployability, Mr President, is vital. A number of the social tensions that we are faced with in our country today have to do with unemployability. Many people that come to this country from other countries, especially from our continent, come armed with abilities and skills that our citizens don’t have. When, therefore, they are taken in by the market, this leaves a bitter taste in the 14 FEBRUARY 2012 PAGE: 30 of 447 mouths of our own citizens who feel that their African brothers and sisters coming into this country are taking their jobs, because it is not immediately clear to them that this happens simply because we have not dealt with this incapacity to be able to take advantage of the opportunities which our country presents them with. I would also like to say, Mr President, that you announced a very interesting and attractive programme of infrastructure development. Indeed, you spoke to the issues of the development of dams, roads and so on. These are vital investments and areas of work, because not only do you invest, but you are also able to realise returns in the years that lie ahead from such investments. At this time, when South Africa’s deficit has grown to more than 3,5% already, we need investment that will give us returns because the money we have borrowed we have to pay back tomorrow. If we invest in investment that will give us returns, we place ourselves in a position in which we can meet the challenges of paying those monies plus the interest on it. But there is a category of the investment you announced that I am not sure exactly how we are going to deal with. Is that also going to come from the expenditure for this year? You announced the investment in celebrating our history, building statues and graves and so on. These are very important elements of our history because, like all nations, we must do something about these issues. 14 FEBRUARY 2012 PAGE: 31 of 447 Nevertheless, the question that I would like to pose is this: At a time when our deficit has grown and is growing at the rate at which it is, is the timing right? If we are borrowing money and investing it in those enterprises that are consuming and not giving returns, it has the effect of deepening our deficit. Is this the right timing? Our study and our look at some of the expenditure patterns of various other countries is that they tend to prioritise these issues in years in which their economies are performing very well and when there is surplus after national expenditure for year after year. Then you will have a surplus that you can apply to these consumptives or projects. It seems that we may perhaps get more light shed on this from the Minister of Finance when he indicates how much of our expenditure will go towards infrastructure that gives returns afterwards, as opposed to infrastructure that will not. One of the issues we think needs a clear explanation from the President when he responds to our speeches relates, of course, to the issue of the youth subsidy scheme. You announced an amount of R5 billion to subsidise youth employment. The whole nation is now aware that, as things stand, there is a problem, because organised labour is concerned that such subsidisation will encourage employers to go for subsidised youth. On the other hand, there is the problem of organised labour that may find that it is neglected and even dismissed. This tension seems to 14 FEBRUARY 2012 PAGE: 32 of 447 be the issue that has contributed to objections being raised by organised labour and the leaders of organised labour in that this scheme should not be implemented. I thought that you would be able to say something to us, Mr President, on this issue. Will we see the expenditure of this R5 billion in a manner in which it will answer this problem and ensure that we are able to benefit from the R5 billion? Again, from the point of view of Cope, we would think that this money would have been best spent in investment and on training. Freedom, after all, must not be understood and should never have been understood as a season of gifts. It should be understood as an opportunity in which those who were denied opportunities of training and education are now rid of the chains that prevented them from getting this education; that therefore freedom means expanding to the fullest your talents, our children’s talents. This is so that our children can leave if they can’t get employment in this country and get employment elsewhere. If there are no businesses to employ them, they can start their own businesses. They would then be able to build homes and take their mothers and fathers out of the shacks and let them grow old in proper homes built by their own children. [Applause.] With this R5 billion we must give to the children of this country — the children who are poor and who have nothing — training and education, something nobody can take away from them, something 14 FEBRUARY 2012 PAGE: 33 of 447 which, even if they went to other countries, they could use to earn an income and to send this income back to their motherland. Many are exporting their skilled labour to this country. When they earn their money here, they send it back to their own countries. But we are not preparing our children ... The SPEAKER: Hon member, your time has expired. Mr M G P LEKOTA: Oh! Mr Speaker, sir. [Applause.] The SPEAKER: Hon member, your time has expired! Mr M G P LEKOTA: I am going to buy an hourglass so that I’m ... The SPEAKER: Hon member, your time has expired! [Applause.] Prince M G BUTHELEZI: Hon Speaker, Xhamela, the hon His Excellency the President, Msholozi, hon Deputy President, Mkhuluwa, hon Ministers of state, hon Deputy Ministers, hon Leader of the Opposition, hon leaders of political parties, hon Members of Parliament, I address the head of state and all of us in this way because I am asking that today we should be introspective as a nation. As I point out certain things, I am pointing out facts of the matter. I am not trying to apportion blame for the sake of apportioning blame. 14 FEBRUARY 2012 PAGE: 34 of 447 From this podium I have said before that the failure of government is the failure of South Africa, and the failure of all of us. What I have to say today, I say for the love of my country. When I speak, I do so to be constructive. Mr President, we have heard your speech, your hopes and your plans, and we desire nothing more than to be able to have confidence in them. Yet, too much prevents us from doing so. How can we embrace hope when our leadership refuses to acknowledge the many problems confronting our country or the causes that lie at their roots? Year after year the state of the nation address shifts focus, without ever addressing previous failures. Your Excellency, in this debate we must analyse all that you said last Thursday. But, increasingly, I feel that the measure of your leadership can be taken less by what you say than by what you do not say. Understandably, the state of the nation address will touch on the high notes of government, leaving much unsaid. But this year we have been left with the impression that our attention is being redirected away from the elephant in the room. There is a danger in that, for elephants can be unpredictable and extremely destructive. It is therefore good and well — through you, Mr Speaker, to His Excellency — to say that our government is working with various provinces to improve governance, systems and administration. But the unspoken fact remains that two of our nine provinces have all but 14 FEBRUARY 2012 PAGE: 35 of 447 collapsed. Limpopo has been rendered bankrupt through corrupt activities and five of its departments have been taken over by national government. And when you, Your Excellency, and your government do the right thing by intervening, even members of your government say that you are doing that for political reasons. The administration of the state is in shambles. It is fine to say that we are doing well with regard to the treatment of HIV and Aids. But the unspoken fact remains that South Africa has lost some 5 million people to HIV and Aids because of our slow and hesitant response to the pandemic. One can say that we are expanding access to tertiary education by assisting students — which is plausible — to pay off their debts. But the unspoken fact remains that students are so desperate to secure admission that they are stampeding universities, causing injury and loss of life. For instance, a parent this year in Johannesburg lost her life as a result of a stampede. In the Eastern Cape, the education system has completely collapsed due to maladministration and corruption, forcing our national government to intervene. It is fine, Your Excellency, to say we will improve the movement of goods through a Durban-Free State-Gauteng logistics and industrial corridor. But the unspoken fact is that the KwaZulu-Natal department 14 FEBRUARY 2012 PAGE: 36 of 447 of transport has had to halt all major road infrastructure projects, while Durban has notched up R1,3 billion in bad spending. The Free State has sought assistance from National Treasury after identifying financial mismanagement and noncompliance in supply-chain management processes in its department of police, roads and transport. Gauteng has also sought assistance from National Treasury to address the challenges in its health department, which is on the verge of collapse. It faces 101 legal claims, amounting to R235 million, owing to negligence. The IFP in Gauteng called for an urgent commission of inquiry to investigate this debacle because we, like every South African, want to know why this is happening, Mr President. Twenty years ago there were many people in this country who felt that we black people were not capable enough to rule a country and administer a democratic government. That was one of the major fears during the negotiation process. That is why some people went to Perth. Some people felt that it was in the DNA of us Africans to be inefficient, inept and corrupt. I refuse to believe that. Yet how do we explain the many nurses in our public hospitals who just do not feel the inner duty to respond to the needs of suffering patients? And what are we to say about teachers who do not feel the calling to spare energy and to double their dedication to teach our children so that, through better education, they may finally be 14 FEBRUARY 2012 PAGE: 37 of 447 emancipated from all that oppressed my generation and your generation, Your Excellency? If the call of duty is not felt in these two fields, it should be no wonder that throughout the Public Service productivity and commitment are so low that they translate into poor delivery. What has disrupted the moral fibre and discipline of our people? What has happened? We know the answer, but we refuse to acknowledge it. How, Mr President, do we explain the contamination of Public Service and commercial interests? It is fatal, and yet it is pursued relentlessly, from the lowest to the highest levels of government. Too many — and I dare say, the overwhelming majority — are trying to make money on account of holding public office, being in politics or exercising public power. Corruption is the bane of our country, Your Excellency. It is a fundamental threat to our constitutional democracy. As former Secretary-General of the United Nations, Mr Kofi Annan, said: Corruption hurts the poor disproportionately by diverting funds intended for development, undermining a government’s ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment. Corruption is a key element in economic underperformance and a major obstacle to poverty alleviation and development. 14 FEBRUARY 2012 PAGE: 38 of 447 Yet, sir, you shy away from this issue. The unspoken fact is that corruption has seen the axing by you, sir, of two of your Ministers, Mr Sicelo Shiceka and Ms Gwen Mahlangu-Nkabinde, for which we all applauded your decisiveness. The National Police Commissioner, Mr Bheki Cele, is still suspended pending an investigation into corruption. His predecessor is in jail. The Speaker of the KwaZuluNatal Legislature, Ms Peggy Nkonyeni, and MEC Mr Mike Mabuyakhulu are facing corruption charges in court. The head of Treasury in KwaZulu-Natal is facing charges of corruption in court. Remember, Your Excellency, that you took over the department of economic affairs, which I ran in the erstwhile KwaZulu government. You will also remember that I founded a bank there called Ithala Bank and you would remember that after you left, it was pillaged by MECs who gave loans to their wives to buy you farms. [Interjections.] The recently released Manase report uncovers widespread and rampant corruption within eThekwini Municipality. High-ranking eThekwini municipal officials and politicians, including the former municipal manager Mr Mike Sutcliffe, and former mayor Mr Obed Mlaba, have been fingered in a damning forensic investigation into financial irregularities, fraud and corruption. Last year, the former head of the Special Investigating Unit, Mr Willie Hofmeyr, told the parliamentary Portfolio Committee on 14 FEBRUARY 2012 PAGE: 39 of 447 Justice and Constitutional Development that 20% of South Africa's procurement budget, between R25 billion and R30 billion, is lost to corruption every year. According to Transparency International's 2011 Corruption Perceptions Index, South Africa is perceived to be becoming more corrupt with each passing year. That perception is rooted in reality. On a scale of 0 being highly corrupt, to 10 being very clean, we have fallen from a ranking of 5,1 in 2007 to 4,1 in 2011. The unspoken fact is that we are on the verge of joining the ranks of dysfunctional states, as the effects of corruption debilitate all spheres of life. Mr President, during the weekend I saw this cartoon and I thought it summarised what I am trying to say, with all these pigs running for the trough. I hope that Hansard will print it as part of my speech. [Laughter.] Then I ask the question, Your Excellency Mr President, how do we fix this? Surely not with more rhetoric, empty words and never-ending declarations of policy? I think we must have the courage to go to the root cause because it was you, Your Excellency, who on 30 December 2000, acting as chairperson of a committee of the South African government, signed a formal agreement with traditional leaders in terms of which the local government powers and functions of traditional authorities would be preserved. This was actually a promise which had been made before by then President Mbeki that there would be no obliteration of the powers and functions of 14 FEBRUARY 2012 PAGE: 40 of 447 traditional leaders and, if they were obliterated, you promised to make amendments. In terms of that agreement, it was agreed that chapters 7 and 12 of the Constitution would be amended. It was you, Your Excellency, who did not bring that agreement to Cabinet for ratification, and it is you, sir, who bears the final responsibility for it having been breached and for the powers, functions, respectability, moral authority and social guidance of traditional leadership having finally been obliterated. The question can be asked: What does this have to do with corruption? It is relevant because the core problem of maladministration, inefficiency and corruption is the disintegration of social cohesiveness, social values, rectitude, integrity, discipline and dedication to duty, which traditional leadership has been entrusted to promote and inculcate within our communities. Once that disintegrates, as it unfortunately has, what ends up in our government offices, hospitals and schools bears the hallmark of no one willing to pay a personal price to make this country a better place. It was you, Your Excellency, who was charged by President Mbeki to champion and pilot the campaign for the moral regeneration of South Africa. I need not comment on that. 14 FEBRUARY 2012 PAGE: 41 of 447 It was also you, Your Excellency, who was equally charged by President Mbeki to bring about the reform of our labour legislation to increase the flexibility in the labour market. That, too, ended in nought. Why is that relevant, the question may be asked? It is relevant because our labour legislation and the lack of flexibility in our labour market have not only been identified by your government, sir — even when I was in government — as one of the major impediments to real economic growth and real employment generation, but also as a cause of the ongoing degeneration of a sense of duty and commitment in the workplace. Empowering trade unions the way you have been instrumental in doing, Mr President, has eroded the culture of hard work, discipline, productivity, dignity and self-respect which people like me have promoted and instilled in our communities for more than 60 years. This has compounded problems with problems. It was your party, sir, which for 20 years made it its main political policy in South Africa to undermine social cohesion within our communities. Your party embraced and promoted the strategy of making our communities ungovernable — even townships ungovernable — spreading a culture of lawlessness and rebellion and destroying the black education system. The black education system was far from perfect, but its destruction replaced it with the roots of a phenomenon which is the common denominator of most of our problems. It brings together our irresponsible nurses, our indolent teachers, 14 FEBRUARY 2012 PAGE: 42 of 447 our ineffective public servants and all the youth with narrow-minded vision, distorted values and the wrong hopes, who were falsely lured into supporting the president of the youth league of your party, who said that I was an ANC factory fault. [Laughter.] Mr President, everyone makes mistakes. Everyone. Every government has faults and shortcomings. None of us is perfect. The wise acknowledge that and correct them, but the unwise ignore them. You correctly identify our sky-rocketing electricity prices as one of the factors which are thwarting all our efforts to develop an industrial basis and produce real growth in our economy. Yet we did tell you that funding the build programme of Eskom through tariffs was a mistake. We did tell you, Your Excellency, that it should have been funded by means of an international competition which would have brought into South Africa as much as R400 billion of direct foreign investment, while creating a much-needed and healthy competition amongst producers and distributors of electricity. We were ignored. We said further that, if funded domestically, the build programme had to be funded through the national budget and not through tariffs, so that the rich would pay more than the poor. The way it has been done is to force industries and the productive middle class to bear a much greater burden for the investments than warranted by their actual taxable income. I am just giving this example as part 14 FEBRUARY 2012 PAGE: 43 of 447 of the same problem. That is the problem of doing things for the wrong reasons, including political reasons, and not for commitment to our country's and our people's best interests. I will add two more examples, because the magnitude of the mistakes there shows what happens when political thinking overrides national interest. Under your leadership, Mr President, our country jumped into the Brics, Brazil, Russia, India, China and South Africa, group. Yet, to develop an industrial basis, we must manufacture export products which, in the final analysis, can mainly only be sold outside of the Brics countries and mainly in the regions which have been our traditional trade partners, namely Europe and North America. This shows how our priorities become confused and contradictory. Our priorities should be to ensure that the African Growth and Opportunity Act of the United States is renewed and expanded so that we can export our products there without duties and quotas, and that similar agreements are entered into with other markets where we can sell our products. Another major policy mistake is maintaining the four retail bank policies and tolerating the collusion and other constraints of trade openly practised by our banks. Because of the lack of real competition, our banks are not forced to take risks they don't want to take, but force all the risky business onto the Industrial Development Corporation and the Development Bank of Southern Africa. This means that they choose to live only by the business which makes 14 FEBRUARY 2012 PAGE: 44 of 447 money with no risk, and the government, the taxpayers and our communities must bear the risk associated with promoting economic growth. It would seem as if your government, Your Excellency, has a greater commitment to serving the banks than the people we represent. Mr President, you praise the trade unions and Sadtu as if they should be thanked for doing less than the full measure of their destructive capabilities. Praising the South African Democratic Teachers Union on Thursday for its diligent teachers was a step too far, I thought, Mr President, in placating the unions. [Applause.] The members of Sadtu often abandon students nationwide to drive their own agendas. The ANC-aligned union continues to act like an organisation hellbent on destroying the future of our children. Sadtu should be rebuked, in fact, and not praised for their actions. [Applause.] Their actions have aggravated and deepened the crisis in our education system. Instead of acting like responsible educators, some members of Sadtu have, on numerous occasions, proven themselves irresponsible, unprofessional and unfit to educate South Africa's learners. The recent go-slow in the Eastern Cape, where education came to a complete halt, is a case in point. Mr President, you mentioned that employment generation never recovered from the terrible knockout it received at the end of the seventies, but you failed to explain why that happened. You do not 14 FEBRUARY 2012 PAGE: 45 of 447 wish to remember that employment generation collapsed because of the call for sanctions against our country and for foreign disinvestment, which your party, Mr President, foisted onto South Africa and which I so vehemently opposed. This was because nothing destroys economic growth more than sanctions. Strangely, your government and the ruling party, the ANC, have adopted the correct policy against sanctions being imposed on Zimbabwe for the same reasons, namely that they destroy the lives of the poorest of the poor. History has proven me right and your party wrong. You admit that we have yet to recover from that self-inflicted injury, the same way that we have yet to recover from the self-inflicted injury of having disrupted the moral fibre and discipline of our communities. But too much remains unsaid, sir. You make no mention of small businesses and how they will be assisted by government to help grow the economy and create jobs. You make no mention of the fact that the two sectors that should be booming right now owing to international demand, namely agriculture and mining, are in reverse, owing to government's many policy failures. The unspoken fact is that the latest global competitiveness rankings of the World Economic Forum highlight how corruption, wasteful 14 FEBRUARY 2012 PAGE: 46 of 447 expenditure and government red tape are increasingly hindering business development, SMMEs and investment in our country. I want to have hope in our future. No one can fault what you have said. But how do you know that every cent of that money will be used to do what you said it should do, with this corruption? I want to have confidence in you, Mr President. I want to be able to believe that there is more than just words to your declaration of intent. But how much of what has been set aside by the state to achieve such lofty goals will actually fulfil its intended purpose? We know that when resources are made available, corrupt officials are already salivating. [Laughter.] One is completely galled by the conspicuous consumption of state resources by these people. I fear there is a disconnect between government and the reality of everyday life for South Africans. It is impossible to have hope while the ANC refuses to recognise, acknowledge and mend the error of its ways. We must start by correcting the terrible injuries inflicted by ourselves, not by apartheid, not by the colonialists, not by foreign powers, but by ourselves, on the minds, strength and discipline of our own people. We need to rebuild pride in our work. We need to build a sense of dignity in abiding by the discipline necessary to improve our conditions. We need to terminate the culture of dependency. We need to create a culture of real growth, which must range from what young people do to build their futures to how our enterprises understand 14 FEBRUARY 2012 PAGE: 47 of 447 that they have to compete and survive without relying on government crutches. We need to re-establish the important role of traditional leadership throughout the country. We need to exact from each public servant the full measure of dedication that one would expect from a soldier in a war in which we are engaged for progress and development. We must have a complete separation between public office and commercial venture and completely change our mindset in this respect. And, most of all, we must fire all those who do not comply with these imperatives, ranging from lazy public servants to corrupt officials, to nurses who do not nurse and teachers who do not teach. If we fail to attend to this basic aspect of our country's reconstruction and development, everything else is bound not to achieve its intended purpose. Mr President, your address was good, but it lacked accountability on the crisis in health, the crisis in education and the crisis of corruption. What you said looks good on paper. But what you have not said can, in fact, prevent the fulfilment of the best-laid plans. I wonder where my brother the hon Andrew Mlangeni is. We both did matric in 1947. Do you remember that poem by Robert Burns "To a Mouse"? 14 FEBRUARY 2012 PAGE: 48 of 447 But little Mouse, you are not alone, In proving foresight may be vain: The best laid schemes of mice and men Go often askew, And leave us nothing but grief and pain, For promised joy! Still you are blest, compared with me! The present only touches you: But oh! I backward cast my eye, On prospects dreary! And forward, though I cannot see, I guess and fear! Msholozi. [Applause.] The MINISTER IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION: Mr Speaker, Mr President, Deputy President, hon members, ladies and gentlemen, on the subject of mice and men, happy Valentine’s Day to all of you! [Interjections.] [Applause.] I think it is very important that we listen to what the three leaders who have spoken before me have said. In broad measure, I think we have to take this as a measure that there is very little disagreement with the content of the state of the nation address, 14 FEBRUARY 2012 PAGE: 49 of 447 and that is a positive that we must take from it, because that is the platform on which we must build in this country. [Applause.] Early on in the speech last week, the President framed a reference to the draft National Development Plan, NDP, which we released on 11 November last year. To better understand the context in which the NDP fits into the state of the nation address, I am going to share a few more details of this plan today. Indeed, the plan sets out the kind of country we want to build by 2030. The vision statement contained in the plan envisages – and it sounded like the hon Leader of the Opposition has read this, which is very good — Now in 2030 we live in a country which we have remade. We have created a home where everybody feels free yet bounded to others; where everyone embraces their full potential. We are proud to be a community that cares. It speaks of a country that is capable of transforming itself, and that is fundamentally important. So, clearly, what we want by 2030 is to have created a country in which we value one another, in which we value life and in which we value our communities. We value doing the right thing. We want to have created a home where everybody feels free yet bound to others. This plan is about what binds us together. 14 FEBRUARY 2012 PAGE: 50 of 447 What binds us is a new story, a story for a better South Africa for all of its people, a story to eliminate poverty and reduce inequality, a story that changes the life chances of our people, particularly young people and women; a story that draws on our history, our experience and our traditions. And so, the plan sets out the high-level objectives of where we want to get to by 2030, as well as how the commission believes that we can remake our country in the vision of our Constitution between now and that date – not on that date, but between now and that date. The plan also provides a great deal of detail on, for example, where we think a railway should be built, how to finance it and how to ensure that it functions optimally. We believe that these are critical end points to improve the life chances of our people. When the commission was inaugurated in May 2010, the President gave it a licence to be bold, honest and critical. He explicitly stated that he did not want a commission that merely slapped his back. His faith was tested when the commission released a diagnostic document in June last year which presented a sharply honest and critical appraisal of our performance since 1994 and our failure to overcome poverty and inequality. The draft plan that we unveiled in November is similarly bold and honest. If we do not strike out bravely, the cleavages in our society will simply deepen. The two main objectives we arrived at in 14 FEBRUARY 2012 PAGE: 51 of 447 the plan are that we want to eliminate poverty and reduce inequality. Consistent with the diagnostic report and the views of thousands of people who were consulted, increasing employment and improving the quality of education form our highest priorities in the plan. In summary, the plan is as follows: a united country, where all citizens are active participants in their own development; a capable state that drives development, promotes ethics and serves the citizenry; a dynamic and growing economy that is more labour absorbing, providing opportunities for all, and supported by adequate infrastructure; an education, skills and innovation system that can develop the capabilities of our people and our country; and leaders who work together to confront and overcome our problems. These five key themes run through the 13 chapters in the plan that covers the economy and employment, the economic infrastructure, a transition to a low-carbon economy, the rural economy, South Africa in the region and the world, spatial settlement planning, education, skills and innovation, health, social protection, citizen safety, a capable state, fighting corruption, and then: social cohesion, nation-building and transformation. In crafting the plan, we also took into account a number of other factors, such as demographic and global trends that are profoundly changing our world. 14 FEBRUARY 2012 PAGE: 52 of 447 Our Constitution provides a basis for our policies. It states that South Africa belongs to all who live in it and that all are equal before the law. How do we make the Constitution a reality for South Africans? This should be the first question we ask ourselves every single day. How do we ensure that opportunities for each person are not determined by who they are or where they were born, but by their hard work, effort, skill, talents and opportunities that are open to them? Ek wil vir die agb lid, mnr Lekota, sê hy het mooi gepraat. Hy kan maar nou vir Dexter terug huis toe volg. Dit is reg. [Gelag.] [Allow me to tell the hon member Mr Lekota that he spoke well. He may follow Dexter back home now. All is well. [Laughter.]] In all our encounters with thousands of people across the country the message has been clear: South Africans love their country. They are proud of their achievements since 1994, have faith in their democratic institutions and want to see greater success for their country. They are prepared to commit themselves to building a better South Africa. Our challenge is to make it possible for them to contribute to the South Africa that they want by 2030. This plan is not a sermon from the mount. It is about identifying how people can be empowered to enable change. We need to reshape the expectations we have of government. We need to forge an active citizenry that takes ownership of the solutions to our problems. 14 FEBRUARY 2012 PAGE: 53 of 447 I want to say to the hon Leader of the Opposition that it is not just about dreams; it is about living out those dreams. It is about making sacrifices. [Interjections.] There is a great philosopher named Peter Tosh who once said, “Everybody wants to get to heaven, but nobody wants to die.” [Laughter.] [Applause.] You have to be prepared to make the sacrifices. The plan is about achieving this shift – I have done it, and I will do it again. [Interjections.] An HON MEMBER: Let’s stop the corruption! [Interjections.] The MINISTER IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION: The plan is about achieving this shift in perspectives and relationships. [Interjections.] Excuse me. Excuse me. The SPEAKER: Order, hon members! The MINISTER IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION: The plan is about achieving this shift in perspectives and relationships. It also contains very specific recommendations. For example, in the chapter on an integrated and rural economy, we focus on support systems that will give life to land redistribution. We need to put land to productive use. We estimate that agriculture has the potential to create close to a million jobs almost immediately 14 FEBRUARY 2012 PAGE: 54 of 447 if these plans are implemented effectively. To achieve this, we need to do a few things urgently. We must expand irrigated agriculture by substantially investing in water resource and irrigation infrastructure. We must create security of tenure for communal farmers. This is vital if we are to secure incomes for existing farmers and new entrants. We must investigate flexible systems of land use for different kinds of farming on communal lands. We need also to invest substantially in providing innovative market linkages for small-scale farmers in the communal and land reform areas, with provision to link these farmers to markets in South Africa and further afield on the subcontinent. We must put in place preferential procurement mechanisms to ensure that new entrants into agriculture can access the “food away from home” market, including school feeding schemes and other forms of institutionalised catering. We must give greater support to publicprivate partnerships to develop underexploited opportunities. Examples of regions with untapped potential include the Makatini Flats and the Umzimvubu Basin in the Eastern Cape. Next year, as the President reminded us, marks the centenary of the 1913 Land Act. This Act reshaped the political geography of South Africa in dramatic ways. It transformed spatial settlement patterns in both rural and urban areas, effectively cutting off the vast majority of South Africans from places of economic opportunity. The 14 FEBRUARY 2012 PAGE: 55 of 447 chapter on the rural economy makes detailed proposals on how land reform can be unblocked and implemented in a collaborative manner, with clear roles for district municipalities, communities and farmers. The chapter on transforming urban and rural spaces spells out why and how we can unravel the spatial patterns of apartheid that still plague us. There are parts of this country that still look as though they are still dominated by the Group Areas Act. Transforming human settlements is a large and complex agenda, requiring far-reaching policy changes. Most state investment goes into household services. Over time, the state should shift its role from a direct housing provider to a housing facilitator, developing public goods through investment in public transport, economic and social infrastructure and quality public spaces. The plan addresses how we can transform where people live; how we can break the pattern of government building soulless little boxes and, instead, facilitate the development of communities. We want to link where people sleep, pray and play with where they work. We want to develop communities, understanding that the quality of life for many is undermined by the fact that they must travel great distances to get to and from work. Our proposals on urban areas include developing a more coherent and inclusive approach to land. All municipalities should be encouraged 14 FEBRUARY 2012 PAGE: 56 of 447 to formulate specific land policies, showing how vacant and underused land will be developed and managed to achieve wider socioeconomic objectives. Our plans include radically revising the housing finance regime by shifting funding away from building single houses to supporting the development of a wide variety of housing types with different tenure arrangements, including affordable rental and social housing. They include the strengthening of the link between public transport and land use management with the introduction of incentives and regulations to support compact mixeduse developments. They also include enhancing the existing national programme for informal settlements by developing a range of tailored responses to their upgrade, including minimum health and safety standards. We need strong and mature leadership, both in government and from communities, to achieve the unity and common purpose required to see the plan through. Leadership is about problem-solving. We need initiative. We need voice. We need to test ideas. We can and should all be leaders in our society. We can all implement the solutions that we have collectively identified. This requires us to change the way we approach challenges. It requires a paradigm shift. This is what we propose in the plan. In coming up with the solutions, the commission has drawn strongly from definitions of development that focus on creating the conditions, the opportunities and the capabilities that enable 14 FEBRUARY 2012 PAGE: 57 of 447 people to lead the lives that they desire. Development is a process of raising the capabilities of all citizens, particularly those who were previously disadvantaged. The development of capabilities is critical to enable our youth to grasp the opportunities that we develop. Education and skills development are critical capabilities, but there are others, too. Better public transport, a well-designed social safety net, a healthy population, better located housing settlements and safer communities are critical to enable people to improve their own lives. The plan therefore charts a new course. This new course is one where communities, in partnership with government, develop the capabilities to improve their own lives through education, employment, health care, transport, social security and safer communities. At the same time, we have to broaden the economic opportunities available to citizens. This requires faster economic growth, a more labour-absorbing economy, higher levels of investment, inclusive and integrated rural economies, and better located human settlements. While we build these capabilities for both individuals and for the country, we must do so mindful of the impact on our environment, which is an endowment we cannot destroy. The shift from a delivery model to a capabilities one requires three complementary enablers. Firstly, it speaks of an active citizenry, 14 FEBRUARY 2012 PAGE: 58 of 447 where people are involved in their own development and in the development of their community. The second enabler is a capable and effective state, able to understand when and where it needs to act, what its limitations are, and how to partner with other forces in society to achieve complex objectives. The third enabler is strong and mature leadership from all institutions in society. An active citizenry, working in partnership with government, business and civil society is critical to this new development paradigm. While the state can build schools, we need communities to work with the schools to ensure that these schools function properly and that the children study hard. Our paradigm becomes one where communities are active in their own development. The challenge we face in our education sector illustrates this point well. There is universal acknowledgement that our education system fails the poor. Members may have seen the short animated story that the commission produced about a young girl named Thandi — it is available on YouTube — to illustrate the impact of circumstances on the life of a young school-leaver. Our plan is about improving the life chances of people like Thandi. This covers improving the education system to making sure that more school-leavers get jobs. Achieving this requires a collective effort. We have to talk to one 14 FEBRUARY 2012 PAGE: 59 of 447 another and draw on the energy of those who are committed to finding solutions. And, yes, we will leave the naysayers behind. We hope that the proposals in the plan will be taken in the spirit in which they were designed: an honest and open-handed attempt to tackle the deep-seated problems that bedevil our society. This process has been a unique one. It was a bold and brave step by the President to appoint a commission of people from outside of government, South Africans who care deeply about their country, to help develop a national plan. He has shown remarkable confidence in our institutions of democracy to embark on such a process. I would like to say to the President that we are still engaging with South Africans on the proposals in the plan. This is both a heartening and a humbling experience. It is heartening because so many of our fellow citizens share our broad approach, support the values of our Constitution and agree with the key priorities that we have outlined; humbling because we, the commission, know so little about so many of the issues. Our discussions have been hugely enriched by the considered and often detailed views of ordinary South Africans on how to solve some of our most critical challenges. We look forward to engaging with Parliament and for Parliament to facilitate further engagement on the proposed plan. In June or 14 FEBRUARY 2012 PAGE: 60 of 447 perhaps July, we will take the refined document back to Cabinet for discussion and, hopefully, adoption. The work of the National Planning Commission does not end this year. After the plan is presented to Cabinet in a few months’ time, the commission will begin detailed work on perhaps two or four areas a year so that we can complete the detailed ... The SPEAKER: Hon Minister! The MINISTER IN THE PRESIDENCY: NATIONAL PLANNING COMMISSION: ... work within the next three and a half years. Allow me to end with a little quote from the Vision statement: South Africa belongs to all its peoples. Now, in 2030, our story keeps growing as if spring is always with us. Once, we uttered the dream of a rainbow. Now we see it, living it. It does not curve over the sky. It is refracted in each one of us at home, in the community, in the city, and across the land, in an abundance of colour. 14 FEBRUARY 2012 PAGE: 61 of 447 When we see it in the faces of our children, we know: there will always be, for us, a worthy future. Thank you very much. [Time expired.] [Applause.] The SPEAKER: That was a very long poem, Minister. Mr J J MCGLUWA: Hon Speaker, in his state of the nation address, the President gave the nation a glimmer of hope. We welcome, in particular, the President’s endorsement of the National Development Plan, NDP. The challenge for the President’s vision, plans and strategies for this country continues to lie in their implementation and in real delivery. We do love this country and, together with the President, we want it to work. Ons is lief vir hierdie land en, saam met die President, wil ons hê dat dit moet werk. [We love this country and, together with the President, we would like it to work.] We would like to assure you that we support all efforts made by government to construct a clear plan for our country’s future. We therefore place much hope in you, Mr President, to make this plan a reality for us. At the inaugural meeting of the National Planning Commission, on 11 May 2010, the President stated, and I quote: 14 FEBRUARY 2012 PAGE: 62 of 447 The establishment of the National Planning Commission is our promise to the people of South Africa that we are building a state that will grow the economy, reduce poverty and improve the quality of life of our citizens. As we as Members of Parliament are concerned about the funding of these projects, we will use our oversight role to ensure that no one will use your announcement, Mr President, as a platform to loot state funds from the poor. The state must play a leading role in economic growth in partnership with the private sector. When we speak, we speak about jobs, jobs, jobs; poverty, poverty, poverty; and opportunities for all. What then is the role of the state? We call upon the ruling party to stop undermining our new democracy, because our previous hopes were dashed by this government’s willingness to sacrifice development at the altar of patronage. Mr President, we also note with interest that many of the infrastructure plans you proposed are actually old, repackaged proposals. We are glad that you have finally agreed to implement them. The government has constructed a number of large macroeconomic plans, which now lie scattered across our 18-year-old democracy. In 1994 we witnessed the birth of the Reconstruction and Development 14 FEBRUARY 2012 PAGE: 63 of 447 Programme, RDP. By 1996, as a means of reducing our debt burden, the RDP was succeeded by the Gear, Growth, Employment and Redistribution, strategy. These have been succeeded by the New Growth Path and the National Development Plan respectively. However, defining the success of these plans is a thorn in our nation’s flesh. The unholy wedlock between the ruling party and the labour unions also highlights the irreconcilable and ideological paralysis that constrains government’s ability to get serious about implementation. It appears to us that government is perhaps better at building plans than building a nation. Dit wil voorkom of u regering miskien beter is met die bou van planne as met die bou van ’n nasie. [It seems that your government is perhaps better at building plans than building a nation.] It is also critical that government sticks to its core function of creating an enabling environment for us in the private sector. This will allow South Africans to take hold of their own economic future. Finally, we would like to invite the President to make a choice today. Does his allegiance lie with factions inside the ruling alliance or does it lie with the people of South Africa? Today we appeal to the President to choose in favour of the people who commissioned him to lead our country. I thank you. [Applause.] 14 FEBRUARY 2012 PAGE: 64 of 447 Mr B H HOLOMISA: Kuthiwa khetha, Mongameli. [They are saying “choose”, President.] Mr Speaker, hon President and Deputy President, hon members, for many years resource allocation in South Africa was determined on the basis of race and ethnicity. The deleterious effects and the scars of the policy of segregation are still clearly visible almost two decades into our democracy. Since we ushered in our new democratic dispensation in 1994, the majority of citizens have pinned their hopes for a better life on the new political franchise. Sadly, the level of inequality between the haves and the have-nots has increased rapidly. The solutions on the best way to close this gap and integrate the previously disadvantaged communities into the economic mainstream appear elusive. Apologists of this current economic regime claim that the macroeconomic fundamentals are in place and, thus, see no need to deviate from the status quo. They militate against any form of government intervention in the economy to transform it. We question the validity of this line of argument, since the majority of citizens continue to occupy the margins of economic activity. In contrast to the minority group which controls the South African economy, the majority of citizens are victims of the ultraconservative credit policies of financial institutions because they do not own land. 14 FEBRUARY 2012 PAGE: 65 of 447 The fight for economic freedom has been a bone of contention for many years and, at times, resulted in an unnecessary loss of life. You and your Deputy President spent many years on Robben Island in pursuit of precisely this economic emancipation objective, among other objectives. As students of the former University of Transkei in 1979, in the Faculty of Management and Economic Sciences, we used to grapple with the difficult challenge of finding a suitable mechanism to deliver economic freedom to Africans. Even today the solutions to this challenge are still proving more difficult to find. We acknowledge the statement made by the Minister of Finance in the 2011 Medium-Term Budget Policy Statement on the need to transform the economy. However, the question remains: by whom and when? The 2012 state of the nation address clearly demonstrates that government has finally woken up to the reality that the fate of South Africans can no longer be left to the free-market system alone. Government has a duty to invest in its economy through projects like infrastructure development. The private sector seems to have no willingness to invest in the development of the infrastructure of previously disadvantaged communities. 14 FEBRUARY 2012 PAGE: 66 of 447 Even companies that have the capacity to do so, like Anglo American, delisted from our stock exchange in favour of foreign ones without any prospect of the funds coming back to the South African economy. Perhaps, in line with your statement during the ANC centenary celebrations in Mangaung at which you called for a national dialogue on the country’s pressing issues, as leaders of political parties represented in Parliament we should meet with you and the Deputy President at your offices to map out a clear strategy to deal with what you aptly described as the triple challenge of poverty, inequality and unemployment. These problems are bigger than one political party. In the event of a consensus emerging from such a meeting, we should expand the dialogue to other stakeholders in society as well. The historical legacy of severe imbalances and backlogs cannot be adequately addressed by Nedlac, National Economic Development and Labour Council, partners alone. The people care less about frivolous fights to augment political power through attempts to change the powers of the Constitutional Court, the building of a veil of secrecy between the state and its people through the Secrecy Bill and attempts to erode media freedom, and more about wanting to see us prioritising their bread-and-butter issues. 14 FEBRUARY 2012 PAGE: 67 of 447 Many South Africans often argue that a review of the Codesa agreements — Codesa being the Convention for a Democratic South Africa — should not be done selectively, as they believe that there are other more important matters for discussion, like the sunset clauses that robbed them of an opportunity to participate meaningfully in the economy and own land. Black South Africans are still residing in the so-called reserves that were allocated to us by previous regimes, with no land ownership. Yes, Mr President, I have yet to see a day when people protest to change the powers of the Constitutional Court. But I have seen many legitimate protests about service delivery which do not seem to receive the same attention. We have noted government’s intervention in a number of provinces to rescue them from administrative collapse. This sphere of government seems to be saddled with problems. Provinces have become centres of self-enrichment and rampant corruption for some comrades. We have seen a regression in the standard and quality of education our children receive under the watch of provincial governments. In the past, for instance, it was common for students from all over the country to go to places like the Transkei to access quality education. Regrettably, that fountain seems to have dried up. 14 FEBRUARY 2012 PAGE: 68 of 447 Perhaps it is time to publish the study government instituted under former Minister Mufamadi into the efficacy of provinces. The truth of the matter is that these glorified homelands were a compromise intended to accommodate one political party. We must now assess the extent to which they facilitate or impede service delivery. Nevertheless, Mr President, your announcements last week reinforced programmes that were announced earlier by Transnet and the Minister of Transport, which we regarded as pie-in-the-sky projects when they announced them. Both Transnet and the Minister were cagey at the time of the announcements about how they would finance these projects. We wondered whether a thorough feasibility study had been undertaken. Mr President, you will recall that when the news about these projects surfaced, the media alleged that they would be done by Chinese companies and politically connected individuals in South Africa. However, the government flatly denied this. We look forward to receiving more details about the government’s overall implementation strategy. We would do well to adopt as stringent a monitoring mechanism as Fifa’s close monitoring of South Africa’s implementation of the 2010 Fifa World Cup project, otherwise these announcements run the risk of going down as just another laundry list of unfulfilled promises. 14 FEBRUARY 2012 PAGE: 69 of 447 It is gratifying to see that you have heeded our call to link KwaZulu-Natal and the Eastern Cape Corridor. Planned properly, this would ease the congestion and reduce road fatalities on the N2, especially if a railway line could be built between East London and Kokstad. With respect to the Umzimvubu Water Scheme, the former Transkei government and the Development Bank of Southern Africa, Maohludi Associates and academics from the former University of Transkei conducted and concluded a R13 million study into the possibility of using the Umzimvubu Water Scheme to provide clean water for household consumption and water supply for irrigation and hydroelectric schemes. The study showed that major rivers passing through the Transkei areas constitute 28% of the water supply of the entire Southern Africa. We urge your government to guard against wasting taxpayers’ money on hiring consultants to redo the study. Rather, we should source the services of an auditing firm to carry out a thorough cost-benefit analysis of reviving the project, taking into account cost escalations over the years. This exercise should also evaluate the effects of silting caused by soil erosion. Therefore there is no need for a two-year or more study. The Umzimvubu Water Scheme project failed to get off the ground due to the refusal by the former F W de Klerk government to release 14 FEBRUARY 2012 PAGE: 70 of 447 funds for capital projects to the Transkei government because of its close relationship with the liberation movements. Senditshilo. [Kwaqhwatywa.] [I have already said this. [Applause.]] Mrs I C DITSHETELO: Hon Deputy Speaker, the commitment towards infrastructural development is most welcome. We certainly hope that its spin-offs will enhance many other areas of concern, like job creation. The amount of R300 billion is a significant amount to commit to infrastructure. It is sure to excite South Africans. We earnestly hope that this huge commitment of money will not excite the minority tenderpreneurs who will see an opportunity to make more millions, while the rural poor are condemned to extreme poverty. We hope this amount will not perpetuate the gross economic inequalities that we are already experiencing. It would have been comforting if the President had briefly outlined how the infrastructure development commitment would impact on, and improve, the standard of living for the rural poor. In and prior to 2010, there was a buzz of infrastructure developments. Of course, we now have world-class stadia, hotels and beautiful bridges. We welcome the improvement, but the rural 14 FEBRUARY 2012 PAGE: 71 of 447 communities in which the majority of our citizens reside are still without roads and their living conditions have not improved. It appears that government has taken significant strides in addressing the energy crisis in our country. It is impressive that thus far 220 000 solar geysers have been installed, and the targets set are encouraging. However, those of us who represent the rural constituencies know that even before you speak of energy-efficient tools, there are people who still do not have electricity and therefore energy efficiency becomes meaningless to them. This must be heard and treated with equal urgency as energy saving and efficiency. South Africans had reason to be excited last year with the introduction of the Presidential Hotline, where they could lodge complaints and forward their grievances. There are allegations in the media that nothing is ever done about the cases reported. We expected the President to take the opportunity of the state of the nation address to cite cases that had been investigated since the commencement of the hotline. His failure to update us on this makes us think that perhaps we have been taken for a ride in that nothing will come of the hotline, and that it was another populist stance. The President rightfully commended the increase in the matric pass rate. Of course, many of us are happy to see this improvement. He further acknowledged the problems in our education departments 14 FEBRUARY 2012 PAGE: 72 of 447 which, in the Eastern Cape, had led to the intervention and takeover by the national government. This is, indeed, a crisis, and our education system has been in crisis mode for a long time now. We do not expect the President to go into the details of problems encountered by government departments, but seeing that education is one of the priorities, we expect that he should touch on the root causes of the many problems in education. His failure is disheartening. We have, for a long time now ... [Time expired.] [Applause.] Mr I O DAVIDSON: Madam Deputy Speaker, while the specific focus on job-creating economic growth is welcomed, it is unfortunate that another priority issue for South Africans received scant recognition in the state of the nation address. The World Bank’s Second Investment Climate Assessment found that South Africa has attracted considerably less foreign direct investment than comparable economies in East Asia because the country is seen as a riskier location for investment. Among the factors feeding this view is the perception that crime is more prevalent in South Africa than elsewhere. Yet in a 5 000-word address, the safety and security of South Africans and their communities received a mere 65 words. Yes, the slow decrease in incidents of serious crimes is commendable and the 14 FEBRUARY 2012 PAGE: 73 of 447 efforts in this regard must be applauded. However, the number of serious crimes committed annually remains above the two million mark, where it has been for 17 years. This is unacceptable, more particularly as it is the poorest of the poor that feel the impact of crime the most. The wellbeing of our citizens and communities is not a matter of statistics, but speaks to the very fabric of our society and the efforts to accelerate economic development to address unemployment, poverty and inequality. We require a bold new vision to ensure the safety, security and stability of our society, as well as the creation of an environment in which economic growth and development can continue unhindered. This is our common struggle. Instead, we are veering towards a security state marked by this government’s increasing obsession with a traditionally defined concept of national security. The vehement defence of the Secrecy Bill, controlling the courts and legislative attempts at granting the intelligence services even greater powers are symptomatic of this obsession. A radical and conceptual policy shift is required to focus our collective efforts on the human security of South Africans, where the proper emphasis for safety, security and stability is on the individual and communities rather than the state. 14 FEBRUARY 2012 PAGE: 74 of 447 We need to empower citizens and the citizenry to take back their communities and their societies. We need a caring and responsive government that will adopt and implement programmes rooted in this people-centred view of making South Africans safe. It requires government to create a climate that empowers local people and communities to take charge of a collective civil responsibility to protect themselves and one another. It speaks of shared efforts of all South Africans to bring about a unified and safe society, where personal safety and the absence of fear from violence allow for our citizens to flourish. The sustainable safety and security of our society and the prevention of crime require close co-operation between government, the police and communities to share resources and information and develop specific initiatives for local circumstances. South Africa boasts a strong civil society and active communities, yet their involvement in taking ownership of their own safety and security receives little official encouragement. Citizens, businesses and institutions in the private sector should be encouraged to involve themselves in the war on crime and their contributions should be acknowledged and harnessed. The DA believes that this can be done in a concrete and sustainable manner. 14 FEBRUARY 2012 PAGE: 75 of 447 Government should actively encourage community involvement by empowering communities to set up and manage their own community safety initiatives, such as neighbourhood watches and patrols. Many farming communities have risen to the challenge in this regard, but they do not receive adequate state support through funding, training and equipment. Local police services should be provided for where local councils have the means and desire to establish these, in co-operation, obviously, with the SA Police Service. We need less centralisation and a more diffused, distributed, personalised set of interactions and engagements that allow local services to give dedicated attention to particular problems in specified areas. We need to empower community policing forums with more oversight over their local police stations and give them greater independence by enabling them to access funds to set aside for safety and security initiatives at the local level. Creating meaningful and effective partnerships is pivotal in ensuring collaborative initiatives and actively facilitating private sponsorships. Regulatory frameworks, such as the SAPS Act, should enable public-private partnerships, and local governments and communities should be permitted and encouraged to collaborate with the police to solve problems at the local level. A prime example of how effective this can be is Crime Line, a Primedia Group initiative that empowers individuals and communities to advance their safety 14 FEBRUARY 2012 PAGE: 76 of 447 and security through anonymously reporting crime and suspicious activities. Our society and interpersonal relationships are being eroded by drug abuse and threats to personal bodily integrity and dignity. We need to see a commitment from this government to re-establish the highly effective disbanded specialised units to fight drug abuse and related crimes, as well as family violence, child abuse and sexual offences. Government must also bring citizens in rural South Africa on board in the fight against crime and the threats to the security of their communities by creating a new specialised rural safety unit. Every farmer or farm worker that is murdered impacts directly on the rural economy, compounding the decay of rural communities. Finally, the regular sharing of official information on crime and community safety is necessary to adequately empower communities to locally address crime and challenges to safety in their communities. This can and must be facilitated by implementing communication sharing systems, including SMS and other electronic communication devices. South Africa, Mr President, stands firm and ready to heed the call made in the state of the nation address to join hands and deal decisively with the challenges our society faces. Government must, 14 FEBRUARY 2012 PAGE: 77 of 447 similarly, extend its hand and provide meaningful opportunities for South Africans and communities to proactively take charge of their own destiny, safety, security and wellbeing. The President set out in his speech steps to enhance growth through an infrastructural investment programme. It is time for him now to set out a similar strategy to ensure the safety and security of our citizens. If he fails in this regard, the desired economic growth will not occur. I thank you. [Applause.] Mr L N DIALE: Hon Deputy Speaker, His Excellency the President, the Deputy President, Ministers and Deputy Ministers, hon members and guests, sanibonani, siyabulisa, dumelang, sthokoze, goeiemiddag [good afternoon]. Through you, Speaker, to the hon President, I joined the ANC in 1956 at 20 years of age. I joined because I believed that the struggle for our liberation needed each one of us. It was not a difficult decision because the values and nobleness of the movement, and its campaign to liberate the nation from oppression and discrimination, were things I believed in. This year, we a r e celebrating 100 years of the A NC, a milestone few liberation movements achieve. We owe the progress, development and survival of this glorious movement to the core values and principles on which it was founded. Frustrated by the massive 14 FEBRUARY 2012 PAGE: 78 of 447 oppression of the African people in the land of their birth and by the draconian regime which sought to enforce separateness as a way of life by denying the majority of the people their basic human rights, the ANC took up the fight for our freedom. Chief Albert Luthuli, when accepting his Nobel Peace Prize in 1961, characterised the inhumanity as such: There can be no peace until the forces of oppression are overthrown. Our continent has been carved up by the great powers; alien governments have been forced upon the African people by military conquest and by economic domination; strivings for nationhood and national dignity have been beaten down by force; traditional economics and ancient customs have been disrupted, and human skills and energy have been harnessed for the advantage of our conquerors. In these times there has been no peace; there could be no brotherhood between men. Look how far we have come. Our progressive and widely lauded Constitution and Bill of Rights inspire hope and pride. But with every year that we celebrate our freedom, it seems ever more apparent that from some quarters we are urged to forget the past. Those who bemoan our remembering the past, forget that when we remember, we also acknowledge our past. Tracing the history of how we came to have the finest Constitution and Bill of Rights in the world cannot be 14 FEBRUARY 2012 PAGE: 79 of 447 separated from the significant role the ANC played in the creation of these documents. [Applause.] Since the formation of the ANC, its central focus has always been the fight for equality and human rights for all. The vision of creating a better life for all began in May 1923, when the ANC conference in Bloemfontein adopted, inter alia, a resolution on a bill of rights. It called for equal treatment of all people, much like many of the constitutions of countries today in which an equality clause is included. It demanded access to land, equality before the law and participatory voting rights. In 1943, in response to the Atlantic Charter, the Africans’ Claims — Bill of Rights — was drawn up to reflect the post-war demands of the African people. The document, which was rejected by Jan Smuts, demanded, amongst other things, full citizenship rights for the African people. It also called for the abolition of political discrimination based on race; universal adult suffrage; equality before the law; freedom of residence; the right to education, freedom of trade and occupation; the provision of adequate medical and health facilities for all people; and the repeal of all discriminatory legislation. These demands found expression in the 1955 Freedom Charter of the ANC, which addressed fundamental human rights. 14 FEBRUARY 2012 PAGE: 80 of 447 I am tracing these important and landmark documents, not only to remind us of, but also to highlight the fact that these documents and their contents influenced and shaped the country’s own Bill of Rights and Constitution. During our multiparty negotiations it was the ANC that pioneered and campaigned for the Bill of Rights. This fact is contained in our historical documents and cannot be willed away, no matter how loud the calls for us to forget. For the longest time the majority of the country’s population were victims of crimes against humanity. We were a tortured, traumatised and violent country. Gross human rights violations were a daily occurrence and, when we emerged into the light of freedom, our therapy came in the form of the Truth and Reconciliation Commission. We debated whether to speak out or forget. Our collective morality ruled and we tried to heal by telling our stories. We tried to make over our souls, an “RDP of the soul” as it was called. We have travelled a very painful and divided path. Celebrating the birth of a movement — which led the way for us to celebrate our humanity — should be an inclusive p a t h . The protection of our fundamental and comprehensive human rights, as enshrined in the Constitution, cannot be taken for granted nor lull us into complacency. Building a caring society i n w h i c h citizens respect the rule of law and one another, where the basic needs of our people are taken care of and necessary services delivered, is paramount. We are a diverse nation, and it is our strength. And by 14 FEBRUARY 2012 PAGE: 81 of 447 uniting in our diversity by celebrating our differences, we grow as a people. We said then, as we do now, that such human rights violations will never be tolerated. Our laws and institutions today stand ready to protect and defend our humanity. The values, which underpinned the formation and development of the movement, must constantly serve as a reminder that only when these values are shared do we become formidable. We take comfort from the state of the nation address, wherein the President set out his plan and vision for the coming year. He outlined the massive infrastructure programme, geographically focused programmes, projects focusing on health and basic education, information and communications technology and regional integration. All of these projects work to further our social and human rights in terms of addressing the triple challenge of poverty, inequality and unemployment. And if we waver from our objectives for whatever reason, let us remember the words of one of our foremost leaders of the ANC, Nelson Mandela: The justness of our cause had to be matched by the methods and morality of our organisation. And we can today in all humility claim that our liberation movement had throughout its existence 14 FEBRUARY 2012 PAGE: 82 of 447 sought to have its conduct informed by those enduring values of humanity. As in all human undertakings, there were failings, but it was the overall adherence to those informing values that ensured our liberation movement its place in history. Hon President, Deputy President, Speaker and hon members, I would like to say... ... šikiša dira le molapo, mphago wa dira ke meetse. Phala tša mona marula di a tloga. [Legoswi.][... there is a dire need to provide basic services for our people. I’ll end here. [Applause.]] Business suspended at 16:17 and resumed at 16:34. The MINISTER OF ECONOMIC DEVELOPMENT: Hon Speaker, hon President and Deputy President, hon members and members of the public, on Thursday, Mr President, you outlined an infrastructure plan that represents a bold, strategic and integrated platform to mobilise the state, private investors and the South African public behind a clearly articulated storyline of South Africa’s opportunities. It is the first step towards creating a 10- to 20-year infrastructure project pipeline. Our job in government is to ensure focused, purposeful implementation. Over the past four months, the Presidential Infrastructure Coordinating Commission, PICC, identified what the key challenges are 14 FEBRUARY 2012 PAGE: 83 of 447 to effective implementation, and what we can do about them. We drew on the infrastructure driver of the New Growth Path, the detailed work of the National Planning Commission, the import of all three spheres of government, and the needs of the private sector and communities. We took account of the lessons of the 2010 world cup infrastructure and of the growing experience in the build programmes of the Gautrain, the Medupi and Kusile power stations, the Freeway Improvement Programme, and the major airport revamps. We identified what worked well, such as the 2010 World Cup special law to fast-track regulatory issues, and what did not work well, such as cost overruns. Above all, the lessons are to have a clear project scope, with binding timeframes and clearly identified responsibilities — who does what, by when, with what resources — and to solve problems expeditiously when they occur. We know we can do it. But we temper that confidence by acknowledging that it will be hard work, that there are challenges and that we must honestly and frankly address them. Hon members, we recognise and will address the skills challenge. We completed an audit of scarce skills in public institutions. The challenge is particularly in engineering, project management, finance and procurement, and in technical skills such as artisans, technologists and technicians. 14 FEBRUARY 2012 PAGE: 84 of 447 To address this, we developed responses such as a shared pool for utilising scarce skills across and between public entities; rapidly increasing apprenticeships and practical training, as Eskom and Transnet are doing now; in the private sector using the National Skills Accord; a skills plan setting out the human resource requirements for every infrastructure project; attracting back South Africans with high-level engineering and project management skills who are working on projects elsewhere in the world; easing immigration rules in infrastructure-linked scarce skills categories; and developing partnerships with universities and other institutions in the build environment to produce the short- and long-term skills needs of the infrastructure programme. For example, Minister Nzimande and the Department of Higher Education and Training, DHET, are launching a new R160 million programme to increase engineering capacity at the University of Johannesburg. The two new universities planned as part of the PICC infrastructure roll-out will further accelerate capacity. We see infrastructure, however, not only as a consumer or user of skills but also as a training space, and so we will set skills and apprenticeship targets in the project specifications. We will address the project management and regulatory delay challenges. The infrastructure programme requires co-ordinated issuing of permits and licences, environmental impact assessments and resolution of land servitudes. It requires tight co-ordination 14 FEBRUARY 2012 PAGE: 85 of 447 between the three spheres of government and with public entities. We will therefore place legislation before Parliament during 2012 to address this in the form of an Infrastructure Development Bill. In addition, we seek to improve co-operative governance. The PICC includes the premiers, the metro mayors, the SA Local Government Association, Salga, and a number of Cabinet Ministers led by the President and the Deputy President. It is therefore a forum able to take decisions to unblock delays across the three spheres. We are developing focused project management systems and clear performance dashboards to identify the state of progress with build programmes to enable the three spheres to intervene early and decisively. We acknowledge and will address the funding challenges. We need to think smarter as we plan our infrastructure programmes. Simply throwing money at a challenge will not do. At the same time as we increase spending on infrastructure as a percentage of GDP, we must get more value for money. A number of the components of the infrastructure plan have funding committed through the national Budget or the balance sheet of state-owned enterprises. The infrastructure plan, however, requires reprioritisation across government with a clear shift of spending from consumption to investment, so that we lay the basis for our long-term prosperity – a matter taken up by Minister Gordhan in the Medium-Term Budget Policy Statement, MTBPS. 14 FEBRUARY 2012 PAGE: 86 of 447 The Industrial Development Corporation, IDC, and the Development Bank of Southern Africa, DBSA, working with the main state-owned enterprises and Minister Gigaba, will provide financial support within their mandate areas, creating a public-private partnership model to drive infrastructure development. The Presidential Infrastructure Summit will highlight opportunities open to the private sector. We will work with retirement funds on opportunities for long-term infrastructure investment that match their long-term pension liabilities to members. We will collaborate with international partners, including Brazil, Russia, India, China, and the Gulf Co-operation Council, GCC, countries to tap capital from sovereign wealth funds and private investors. We acknowledge and will address the challenge of containing costs of the build programme and combating corruption. Our experience in past programmes showed high levels of collusion between contractors which drove up prices of supplies and services. We faced avoidable industrial action on some of the projects. We are therefore in discussion with the private sector and organised labour to conclude an integrity pact as part of a broader accord to address the need for competitive pricing, firm action against public and private sector corruption, and co-operative industrial relations. The competition authorities are ready to crack down on collusion and price fixing. Combating corruption will also ensure that the hardearned monies that South Africans pay in taxes do, in fact, go to rebuilding infrastructure and supporting service delivery. And 14 FEBRUARY 2012 PAGE: 87 of 447 specific anticorruption measures will be identified and built into all processes. We will ensure that the infrastructure plan spurs job creation, industrialisation and economic and social development. Jobs are our key economic goal, and infrastructure can contribute in a number of ways, such as using labour-based construction methods, creating permanent jobs in operating infrastructure, and maintaining existing and new infrastructure. Jobs are also created in the supply of components for infrastructure and, critically, jobs are created by this programme across the economy in mining, agriculture, manufacturing, the green economy, tourism and the creative sectors. In this context, I am pleased to inform hon members that, working with Minister Oliphant, the Unemployment Insurance Fund, UIF, has committed R2 billion for a development bond issued by the IDC, which supplies funding at prime less 3% for projects with high employment absorption, bringing the total UIF commitments since 2010 to R4 billion. [Applause.] The IDC approved funding of R12,6 billion for the year as a whole, unlocking a total of R26 billion of local and foreign investment. Of the R10 billion IDC jobs programme announced in last year’s state of the nation address, the projects approved to date will create 8 000 new jobs, mainly in manufacturing, agroprocessing, textiles, mining and the services sector. [Applause.] 14 FEBRUARY 2012 PAGE: 88 of 447 At the start of last year, there were 13,13 million workers in South Africa. By the end of last year, there were 13,49 million workers in South Africa. However one interprets the statistics, the economy created 365 000 new jobs for the year, which is about 1 000 new jobs a day. [Applause.] A total of 179 000 jobs were created for the last three months of the year. However, our economy remains vulnerable to global economic performance and we need to increase domestic and regional demand, and infrastructure-led growth can assist to insulate us from global economic uncertainty. We intend to include development targets in the project and tender specifications covering jobs, skills, industrialisation and local content and also small business development and greening the economy. With this infrastructure, we must get more than simply the outcomes of the build programme. Industry must invest to build a strong industrial presence in selected infrastructure supplies and use this as a platform to increase exports. Mr President, yesterday morning the editor of the Cape Times welcomed the state of the nation address under the heading, “Local is lekker”, but added that, and I quote – The PICC has an even more important task to make sure that most, if not all, the tenders go to South African companies so that the billions of rand set aside do not leak out of the economy. Only 14 FEBRUARY 2012 PAGE: 89 of 447 then will the multiplier effect come into play, boosting jobs, consumption and investment and, thus, economic growth. The selection of key projects must focus on rural development and strengthening the economic performance of the poorest provinces. As we roll out the revamped S’hamba Sonke road maintenance programmes in rural areas, we will look at ways to integrate them with nationally co-ordinated provision of water and sanitation, schoolbuild programmes and health clinics. This will initially be done on a pilot basis in the 23 poorest rural districts. By promoting development in the five economic nodes announced by the President in the state of the nation address, we intend to ensure that we do not rely only on growth in the two major metros. To support a dynamic small business sector and bring more South Africans into the economic mainstream, government will specify support for the small, medium and micro enterprise, SMME, role in infrastructure projects. Mr President, you announced the new small business funding agency that will be set up this year that incorporates Khula, the SA Microfinance Apex Fund, Samaf, and the IDC’s small business lending book. It will be a wholly owned subsidiary of the IDC with a distinct public identity. We plan to launch the agency in the first week of April 2012. Following an injection of funds from the IDC, as 14 FEBRUARY 2012 PAGE: 90 of 447 well as Treasury allocations, the entity will have over R2 billion available for lending over the next three years. We will address the challenge to integrate what we do across government and with the private sector. President Zuma announced key strategic projects on Thursday — not a list of stand-alone activities, but a coherent integrated package. For example, the Limpopo infrastructure development project will be connected with urban planning to create the first postapartheid new city with potential for green technologies in housing, community facilities and workplaces. The Durban-Free State-Gauteng industrial and logistics corridor will not simply go through the Free State, but is planned to be a major stimulus for Free State industrial and agricultural development. The Umzimvubu Dam will be accompanied by the building of the N2 Wildcoast Highway to connect rural communities, to link farms to markets and to reduce transport times between East London and Durban by about two hours. The rail line from the Northern Cape is connected to a new private sector manganese sinter plant in the province, due to be completed by June this year. Hon members, infrastructure can unlock Africa’s consumer base of one billion people in terms of Africa’s enormous reserves of oil, gas and minerals; the large pieces of agricultural land and major rivers; a climate that can drive solar energy; a very long coastline 14 FEBRUARY 2012 PAGE: 91 of 447 that can facilitate trade; and very high projected growth rates over the next decade. Finally, we will address the need to build a common vision behind the infrastructure plan. Partnerships are at the centre of this programme. The President referred to four social accords concluded during 2011: on skills, basic education, local procurement and the green economy. They help with the successful implementation of the infrastructure plan. These are the real partnerships we need. The hon Mazibuko calls for partnerships at the workplace on the one hand, but, on the other hand, lays out a programme that will simply invite us back to the age of industrial conflict and shop-floor tensions, diverting us from the real partnership-building that we need to do, a partnership around productivity, around skills, and around service delivery. [Applause.] We have, therefore, commenced discussions with social partners on a broader accord that addresses both infrastructure and jobs, and hope to make progress during the first half of 2012. In short, we are seeking greater coherence, co-ordination and integration of our efforts, and the vision outlined in the state of the nation address provides the framework. Thank you. [Applause.] 14 FEBRUARY 2012 PAGE: 92 of 447 The SPEAKER: Order! Hon members, the next speaker is the hon Steenhuisen, who will be making his maiden speech. You have the floor, sir. [Applause.] Mr J H STEENHUISEN: Mr Speaker, on 9 February the President shared with us at great length what he feels is required to take us forward. There is much that is laudable about what was presented, but, sadly, the President did not deal with many of the systemic problems which are, in fact, holding us back as a country. He paid little regard to the hundreds of local government municipalities and the number of provinces collapsing under the oppressive weight of cronyism and corruption. This must surely be one of the biggest challenges holding us back from achieving all we can as a nation. It is undoubtedly one of the most significant contributing factors to failed service delivery. And it has been proved time and time again that the effects of corruption hit the poorest in our country disproportionately harder. The President also conveniently failed to mention the entire meltdown of governance in Limpopo. Unless the administration heeds the stark and obvious lessons from its almost total collapse under the burden of cronyism and corruption, the problem will only spread and place South Africa on the fast track to a failed state. 14 FEBRUARY 2012 PAGE: 93 of 447 It is crony networks and circles of corruption which have ultimately brought Limpopo to its knees. No government business is concluded or decision made unless it feeds into a nefarious network of connected ANC comrades where mutually reinforcing relationships are forged by politicians and tenderpreneurs. [Interjections.] Adv T M MASUTHA: Speaker, on a point of order: It is established convention ... The SPEAKER: I haven’t given you the floor yet. Adv T M MASHUTHA: Oh, sorry. T he SPEAKER: Okay. Proceed. Adv T M MASUTHA: It is established convention that a speaker who is giving a maiden speech is not provocative in order to avoid retaliation. [Interjections.] So, we encourage the hon speaker to be considerate in the way in which he addresses the ruling party. Thank you. [Applause.] The SPEAKER: Order! Order, hon members! That certainly is a tradition. Hon member, please proceed, bearing that in mind. 14 FEBRUARY 2012 PAGE: 94 of 447 Mr J H STEENHUISEN: Mr Speaker, Good officials who placed the interests of the province first were moved aside to be replaced by more compliant cadres. Like proverbial vampires, the members of this network have sucked the very life blood out of the province and grown fabulously wealthy at the expense of the marginalised. [Interjections.] Obviously, the truth hurts, hon Manuel. [Interjections.] As a result, service delivery in key departments such as health, education and transport has ground to a halt — and the poorest and most vulnerable have been left to suffer the consequences. This is the real tragedy in this matter, because as the connected cadres of the crony circle get fat on the profits of their misdeeds, the poor slip further into hunger and poverty every day. As politicians and their friends quaff French champagne, the poor are forced to share drinking water with cattle; as tenderpreneurs and politicians flash around in their luxury blue-light convoys, the poor and the marginalised are pushed further and further off the road of opportunity. [Applause.] Instead of decisive action over the past three years, this administration has sat on its hands, while at least three multimillion-rand bridges built by crony company SGL Engineering were washed away within weeks of their completion. An amount of R400 million was squandered on irregularly procured goods and 14 FEBRUARY 2012 PAGE: 95 of 447 services. Most schools did not receive textbooks and learning material or any of their allocated funding, bringing education to a grinding halt. The province dished out a tender of R14 million for photocopiers to an ANC benefactor and connected crony of Premier Cassel Mathale. The price was a full R10 million higher than the next tenderer. Premier Mathale has run his province into the ground and, despite presiding over the greatest crisis of governance in South Africa, the man and his team remain in power. [Interjections.] Now the President can fiddle around the edges amending this regulation, reworking that agency, tweaking another rule, but unless we take a hard line against the politicians and officials at the top who do wrong, our nation will continue to be dragged below the surface by the weight of their corruption and greed. But, Mr Speaker ... Adv T M MASUTHA: Speaker, I rise on another point of order. The SPEAKER: What is your point of order? 14 FEBRUARY 2012 PAGE: 96 of 447 Adv T M MASHUTHA: Is it parliamentary for an hon member to say the things he is saying about a premier of one of our provinces, given the fact that ... [Interjections.] The SPEAKER: Order, hon members! Adv T M MASHUTHA: ... given the fact that he is a member of a legislature? I don’t think it is appropriate for members of this House to attack hon members of other legislatures. Could you make a ruling on that matter? The SPEAKER: I will study the Hansard and come back with a ruling. Proceed, hon member. Mrs S V KALYAN: Speaker, I rise on a point of order. The SPEAKER: What is your point of order? Mrs S V KALYAN: Speaker, is it parliamentary for the hon Manuel to say “shut up” when the member is at the podium? [Interjections.] The SPEAKER: Order, hon members! Hon members, if indeed the member said “shut up” it is not parliamentary, but I didn’t hear him. 14 FEBRUARY 2012 PAGE: 97 of 447 Again, I will study the Hansard and come back with a ruling. [Interjections.] [Applause.] Order, hon members! Order! Mr J H STEENHUISEN: I will wear the hon Manuel’s scorn as a badge of pride. Just last week the widely awaited Manase forensic report into ANC-run eThekwini Municipality was released. The report revealed that for years politicians and deployed cadres in the administration had been involved in dodgy tender deals and irregular activities amounting to over R2 billion. The report has recommended that criminal charges be instituted against the officials and the politicians concerned. One wonders if the ANC are going to have the power to do the right thing and to sack the officials and councillors involved, and to press those charges. Or are they going to be recycled only to appear in other government departments? This was certainly the case in the matter of the erstwhile municipal manager of the Bitou Municipality who was dismissed for serious cases of violating the Municipal Financial Management Act, MFMA, yet was appointed as a municipal manager in another ANC municipality. This beggars belief. People like these should be fired, criminally charged and barred from serving in our Public Service ever again. [Applause.] 14 FEBRUARY 2012 PAGE: 98 of 447 The DA will be introducing private members’ legislation in this Parliament which will seek to have public officials found guilty of corruption, fraud and maladministration, blacklisted and prevented from being public servants again. It is essential that we prevent this slide into a failed state. But it doesn’t have to be like this. The DA has shown the way by example in the Western Cape, namely that clean and accountable government can be achieved and that clean and accountable government attracts investment, both locally and internationally. [Interjections.] The SPEAKER: Order! Mr J H STEENHUISEN: It also shows, in stark contrast to ANC-run administrations, that there is a causal link between clean and accountable government and vastly improved service delivery. This government must take heed and stop the rot in our provinces and municipalities. Perhaps when the President replies to this debate on Thursday, he will include a commitment ... [Interjections.] ... by his administration – he’s ignored corruption long enough, hon Manuel - 14 FEBRUARY 2012 PAGE: 99 of 447 for bold new actions in the fight against corruption, cronyism and maladministration. The President has an opportunity to side with the people of South Africa, particularly the poor, marginalised and vulnerable who feel the sting of corruption the hardest. South Africa needs protection from politicians and officials who abuse the trust placed in them and who line their own pockets and misdirect state resources for personal enrichment. [Interjections.] If the government fails to deal with the tide of corruption then it will undermine and wash away all the virtuous ends of what the President announced in his address to the nation. It will infect every infrastructure project you have outlined and will devour the funds earmarked for desperately needed social upliftment and relief. Mr President, the time for talk is now over. It is time for action. [Applause.] Ms S C VAN DER MERWE: Mr Speaker, Mr President, Mr Deputy President, hon Ministers and hon members, there is a “newspeak”, a new language, about Africa today; it’s about hopeful Africa. This “newspeak” resonates directly with the President’s call to us to create a new story for South Africa. 14 FEBRUARY 2012 PAGE: 100 of 447 The President said last week on Thursday that we would begin to write a new story about South Africa, the story of how, working together, we drove back unemployment and reduced economic inequality and poverty. I would like to suggest here that we can do this best if we look carefully at what is happening on our continent and recognise this as an opportunity to grow our own economy and bring prosperity to all our people. The Economist of December last year lead with the story entitled, “Africa rising, Africa’s hopeful economies”. This is a dramatic change in tune for The Economist, which in 2000 labelled Africa “the hopeless continent”. I quote from the article: The politics of the continent’s Mediterranean shore may have dominated headlines this year, but the new boom south of the Sahara will affect more lives. It continues: From Ghana in the west to Mozambique in the south, Africa’s economies are consistently growing faster than those of almost any other region in the world. At least a dozen have expanded more than 6% a year for six years or more and Ethiopia will grow 7,5% this year, without a drop of oil to export. Once a byword for famine, it is now the world’s 10th largest producer of livestock. Further on, the article says: 14 FEBRUARY 2012 PAGE: 101 of 447 Since The Economist regrettably ... That itself says it — ... labelled Africa “the hopeless continent” a decade ago, a profound change has taken hold. Labour productivity has been rising. It is now growing by, on average, 2,7% a year. Trade between Africa and the rest of the world has increased by 200% since 2000. Inflation dropped from 22% in 1990 to 8% in the past decade. Foreign debts declined by a quarter, budget deficits by two-thirds. In eight of the past 10 years, according to the World Bank, sub-Saharan growth has been faster than East Asia’s. ... And the continent’s impressive growth looks likely to continue. This is a good story. The question is: Are we ready to take advantage of Africa’s hopeful signs? Are we able to rise to the challenge to benefit our people and to further lift the prospects for our continent? I believe the announcements of infrastructure roll-out by the President on Thursday suggest that we are indeed well placed for this new African story to impact in a meaningful way on our country. I would like to highlight three major areas of work that need our focused attention in the coming period. These areas are key policy 14 FEBRUARY 2012 PAGE: 102 of 447 positions of the ANC and are evident in government priorities and extend from the domestic sphere into our international work, as one is inextricably linked to the other. The first, directly linked to the government’s domestic infrastructure plans, is cross-border infrastructure, including other instruments to improve intra-Africa trade. The second is developing our greatest asset, our young people, to meet the challenges. The third is strengthening sound governance practices in governments and in businesses across the continent and defeating corruption. In terms of the first focus area, development of cross-border infrastructure, the plans announced by the President have included some of these — the North-South corridor from the heart of our industrial cities reaching north into the heart of Africa, improvements to the Durban-Gauteng rail corridor opening up links to the region and the manganese export channel through the port in Nelson Mandela Bay. These are examples where these programmes are already in process. The White Paper on Foreign Policy for South Africa, published last year, emphasises the strengthening of regional economic communities as building blocks for African integration and recognises that future African economic prosperity will only be realised to the extent that the continent is able to rationalise and streamline 14 FEBRUARY 2012 PAGE: 103 of 447 these communities. This will include, of course, cross-border infrastructure programmes, thus creating seamless routes and connections for trade and interaction for goods and services to be bought and sold, and for people to move freely. In January leaders of the continent met in Addis Ababa at the African Union, in terms of the theme or the title “Boosting IntraAfrican Trade”. I would like to quote again from the article in The Economist. It says: Trade barriers have been reduced at least a bit and despite the dearth of good roads, regional trade — long an African weakness — is picking up. By some measures intra-African trade has gone from 6% to 13% of the total volume. Some economists think the postapartheid reintegration of South Africa on its own has provided an extra 1% in annual GDP growth for the continent, and will continue to do so for some time. It is now the biggest source of foreign investment for other countries south of the Sahara. So, although much of this work is under discussion on regional and continental levels, I believe there is still much work to be done. The second area of focused attention is our young people. Africa has one of the youngest populations in the world. It is our greatest asset as a country and indeed as a continent. We must spend every effort to make sure our young people are educated and acquire the 14 FEBRUARY 2012 PAGE: 104 of 447 requisite skills to take advantage of what The Economist defines as a boom in sub-Saharan Africa. Here again The Economist makes a comparison with Asia. It says: There is another point of comparison with Asia: demography. Africa’s population is set to double from 1 billion to 2 billion over the next 40 years. As Africa’s population grows in size, it will also alter in shape. The median age is now 20 in Africa compared with 30 in Asia and 40 in Europe. With fertility rates dropping, that median will rise as today’s mass of young people moves into its most productive years. The ratio of people of working age to those younger and older — the dependency ratio — will improve. This “demographic dividend” was crucial to the growth of East Asian economies a generation ago. It offers a huge opportunity to Africa today. We need to be ready, therefore, to take advantage of this demographic dividend. The third area I mentioned that I believe needs this attention is entrenching good governance models on the continent. The efforts made thus far have resulted in more countries in Africa having held democratic elections in the past decade than ever before. For the past 17 years our foreign policy’s number one priority has been our African agenda, with much work focused on developing solid continental institutions. 14 FEBRUARY 2012 PAGE: 105 of 447 Looking at the achievements of our own policies and of other developments on the continent, there has been steady, even dramatic, progress. It is only 10 years since the launch of the African Union in Durban in 2002. This union at its heart aspires to bring unity to a huge and diverse continent and to spearhead the continent’s development through its New Partnership for Africa's Development, Nepad, programme. The AU’s organs include, amongst other organs, the Pan-African Parliament, which is headquartered here in Gauteng; the African Court of Justice; and the African Peer Review Mechanism — that innovative and unique system of peer review among nations. We can be justly proud that this body is now strengthened by the appointment of former Deputy President and current national chairperson of the ANC, Baleka Mbete, to the panel of eminent persons. These are very good developments and there are many others. We must, of course, also recognise the difficulties the AU and its organs have confronted as they develop, but the start has been made and in the grand scheme of things considerable progress has been made in a relatively short space of time. The European Union, for example, is still battling with some of these problems 50 years down the line. 14 FEBRUARY 2012 PAGE: 106 of 447 All this is encouraging and even exciting. So the question again is: Are we as a county ready to grow and build with the rest of the continent? In addition to writing a new South African story, are we ready to be part of writing a new African story? Do we fully recognise the desirability and indeed the necessity for us to link our growth to that of the continent? Let me relate a little story that happened during the first stages of the economic crisis in 2008 when I was watching, like everybody else, those dramatic events unfolding. Banks were collapsing, markets were tumbling, the United States and other governments were pumping money into their respective economies to prevent total collapse. Huge amounts of money with many noughts were being discussed, and it’s even difficult to conceive of some of the sizes of the budgets and cash that were being made available. And this all flashed across the television screens as trillions of dollars were pumped into economies to stave off disaster. I watched as politicians abroad were interviewed, saying that this injection was needed and that, indeed, it was hoped it would prevent a total collapse. One commentator, on hearing this, said: “Yes, but hope is not a strategy.” I agree with him. Hopeful Africa, yes, but hope is not enough. We need focused and realistic strategies, diplomatic and other, to build our regional communities, to improve our intra-Africa trade, to entrench models 14 FEBRUARY 2012 PAGE: 107 of 447 of good governance and defeat corruption, and to upskill our young people to meet the challenges. We need close working relationships with our African neighbours. We need diplomatic strategies to overcome our differences ... The SPEAKER: Hon members, you are making it very difficult for those who want to listen to hear the speaker. The noise level is very high. Continue, hon member. Ms S C VAN DER MERWE: We need diplomatic strategies to overcome our differences and to work in a more united way in our union. Our neighbours may well be competitors, but we should welcome this as their strength can only improve our own prospects in a race to benefit people right across the continent. The White Paper on Foreign Policy, which is entitled “The Diplomacy of Ubuntu”, underscores this point. It states that South Africa’s relations with individual African countries remain central to its foreign policy practice and that of the region. South Africa, it says, will also pursue closer synergy between its bilateral and multilateral engagements, thus linking our regional work with our work with individual countries. This is further encouragement then, but let us not forget some of the most urgent of our challenges that the President has also spoken to: the issues of poverty and disease. In this regard, the 14 FEBRUARY 2012 PAGE: 108 of 447 Millennium Development Goals set by the United Nations give us targets to aim for to improve these chronic curses. The article in The Economist, which I have referred to, concludes in the following way: Progress towards achieving the MDGs is slow and uneven, but it is not negligible. The mood among the have-nots is better than at any time since the independence era. True, Africans have a remarkable capacity for being upbeat. But it seems this time they really do have something to smile about. In concluding, I would like to pay tribute to a great South African internationalist, Johnny Makhathini. The President announced last week that the diplomatic guesthouse in Pretoria would be named after Johnny Makhathini. I never knew him, but I wish I did because I have heard much about him. In the eyes of his comrades and friends he was a legendary figure in international engagements and he was the ANC’s permanent representative to the UN from 1977, amongst other roles. He was a gifted and eloquent debater on international issues during the dark apartheid years. He was, by all accounts, a fascinating person. The guesthouse named after him is a beautifully renovated house on Waterkloof Ridge, looking out over the African savannah. It is a place that is perfectly suited to remember his contribution to our 14 FEBRUARY 2012 PAGE: 109 of 447 country. I hope that he would smile at what has been achieved and at the encouraging prospects of what we still have to do. I thank you very much. [Applause.] Mr L M MPHAHLELE: Hon Speaker, hon President, hon Deputy President, hon members and hon guests, the PAC of Azania welcomes the President’s admission that the “willing-robber, willingly robbed” land distribution policy does not work. [Applause.] [Laughter.] Our forebears took up arms to defend the land and its riches. Ya lla koto, ya kgutla naha, mobu le matekwane a yona. [The land returns, the soil and its plants.] The return of the land must be the first prize of the revolution. Let democracy be a bonus. Any liberation minus the return of our land, the liberation of every grain of soil, is a Mickey Mouse liberation – the ultimate, laughable, make-believe liberation. Africa always was and always will be the African land. Until such time that the land question is decisively resolved in favour of Africans, the whole of the liberation struggle would be in vain. Until that happens, the African people will remain the drawers of water and hewers of wood in the land of their forefathers and foremothers. Lehumo le tšwa tšhemong, ga le tšwe lefaufaung. Ebile molato wa tšhemo o sekwa tšhemong. Ga o sekwe ka ngwakong goba ka mafuri. 14 FEBRUARY 2012 PAGE: 110 of 447 [Disego.] [Nothing falls from the sky. No one must earn what they did not work hard for.] At first, the colonisers gave us the Bible and usurped the land. Today, the neocolonisers have given us the Constitution, and retained the ownership of the land. [Laughter.] They even call it the best Constitution under the sun. Our Constitution glorifies land robbery and justifies colonial looting through the property section. [Laughter.] Nxamalala, xa uthetha ngomhlaba uyinyathele emsileni. [Uwelewele.] Uliqule uligangathe mfo kaMsholozi, andikuthelekisi xa ndisitsho. [Kwahlekwa.] Usikele uPoqo enqatheni xa uthetha ngomhlaba. [Kwahlekwa.] [Nxamlala, when you speak about land, you are stirring up trouble. [Interjections.] You must be ready for war, son of Msholozi, but I am not waging war. [Laughter.] You must share with the PAC when you speak about land. [Laughter.]] Hon President, the PAC welcomes the good news that the government seeks to eliminate all forms of abusive practices inherent in labour broking. The present slave traders, euphemistically known as labour brokers, have exploited job seekers long enough. [Applause.] They take as much as 70% of their victims’ monthly income. That is slavery. 14 FEBRUARY 2012 PAGE: 111 of 447 Hon President, we welcome the creation of 365 000 jobs during 2011. The PAC wants to know how many jobs were created as a result of the multibillion rand arms deal. While we welcome heritage projects regarding Sobukwe’s home and grave, we are concerned that the ruling party never honours heroic PAC leaders and events, except for one leader: Sobukwe. [Interjections.] The SPEAKER: Order, hon members! Order! Mr L M MPHAHLELE: Even then, they say they honour him because he was once their member. [Laughter.] In 1967, long before the Matola Raid, a unit of the Azanian People's Liberation Army, Apla, fighters under commander Gerard Kondlo, was intercepted by Portuguese forces in Mozambique. What followed was the celebrated battle of Villa Peri. The South African ... [Interjections.] Well, that is true, unless you don’t know your history, hon Minister. [Laughter.] The South African government had to send reinforcements to help overcome the freedom fighters. Why is only the Matola Raid memorialised in Mozambique? Why is there a conspiratorial silence over the PAC-inspired Poqo uprisings? Why is there no mention of the Lion of Azania, Zephania “Uncle Zeph” Mothopeng? The heritage project is fundamentally flawed, because it is biased and partisan. It smacks of party-propaganda posturing. 14 FEBRUARY 2012 PAGE: 112 of 447 Of the 134 people who were executed for political reasons, 94 were PAC members, and that is beyond denial. Bhekaphansi Vulindlela, a PAC member, was executed at the age of 18, making him the youngest person to be executed for political reasons. I am teaching you a history lesson, hon Minister. [Interjections.] The oldest person was also a PAC member, Hlathi Blayi, who was executed at the age of 63. Jafta Masemola spent a longer time than any other person on Robben Island as a political prisoner. [Interjections.] David Maphumzana Sibeko pioneered the cause of the South African struggle at the United Nations. In fact, after he had delivered his speeches, African diplomats used to carry him shoulder high. He was a giant. [Time expired.] [Applause.] Mr K J DIKOBO: Mr Speaker, hon President and Deputy President, hon Ministers and Deputy Ministers, hon members and honoured guests, as a young boy growing up, my father taught me the evils of gambling. Under threat of punishment, my older brothers and I were told not to gamble. In our area, gambling was largely in the form of cards and a dice. I obeyed my father’s instructions, except that one day I found myself at a place where other boys were gambling. I did not gamble; I just stood there and watched. Unfortunately that day we were ambushed by the then South African Police, and they apprehended us. I protested that I did not take 14 FEBRUARY 2012 PAGE: 113 of 447 part in the gambling, but I was told ... “Maar julle staan en kyk.” [But you are standing there, looking on.] [Laughter.] As a young boy then, I concluded that the system was unfair, for how could it lump gamblers and spectators together? Later in life, a lawyer friend of mine explained to me that to law-enforcement officers the fact that I stood there meant that I derived pleasure from what was happening, but if I had not, I should have gone to report that a crime was being committed. [Laughter.] A moulana also taught me that according to the teachings of the prophet – peace be upon him – I should have received double punishment, because I had received enlightenment, and yet I did not share it with the gamblers. He told me that I was the worst offender. [Laughter.] We will come to this story later. Mr President, your speech was by and large clear and coherent. The new infrastructure plan had clearly defined activities. The idea of major geographically focused areas is commendable. The plan has the potential to change the face of South Africa for the better and to create the much-needed jobs. Let us talk about risk analysis, Mr President, and what can go wrong and therefore put this plan in jeopardy. Number one is corruption. Corruption, Mr President. We suspect that as you were addressing this House and making mention of the money allocated for the 14 FEBRUARY 2012 PAGE: 114 of 447 infrastructure, there were those who were already salivating, who took out their calculators to compute how much they could make for themselves. [Laughter.] What is going to be the role of the Presidential Infrastructure Coordinating Commission, PICC, in ensuring that tenders are awarded to deserving bidders and that appointed contractors do not do shoddy work and leave us with poor infrastructure that will collapse at the mere mention of the words wind or floods? [Laughter.] What is the PICC going to do to ensure that there is no underspending, as there has been in the Eastern Cape, where the department of education only spent 28% of its allocated infrastructure grant between April and December 2011 — this, in a province that still has mud schools? Hon President, you referred to the lesson learned from project management of the 2010 Fifa Soccer World Cup build programme. Very well, sir. Azapo will be watching and we will speak out if we see things going wrong. Otherwise, history will judge us harshly and say to us ... “Maar julle staan en kyk.” [Gelag.] [But you are standing there, looking on. [Laughter.]] Azapo also welcomes the plan to refurbish hospitals and nurses’ homes. Some of the infrastructure in our hospitals has deteriorated to unacceptable levels, mainly because of poor maintenance or no maintenance at all. We are disturbed by reports we get of nurses and other health professionals staying in dilapidated buildings. 14 FEBRUARY 2012 PAGE: 115 of 447 Azapo welcomes the plan to integrate road and rail. The plan, if successful, will reduce the damage that is done to our roads and remove dangerous substances being transported daily on our roads. It will also reduce the number of accidents on the roads of our land. And as you think of these plans, Mr President, Azapo urges you to seriously look at empowering the Department of Public Works to roll out some of these projects or to consider creating another stateowned enterprise to roll out the plan. It is called “Public Works”, so let it work. We thought, Mr President, that in your address you would say something about the situation of hospitals being unable to pay the National Health Laboratory Services, which resulted in the closure of some of the laboratories, temporary as it were, thus leading to the unavailability of services provided by those laboratories. How was the situation allowed to reach those levels? Azapo has noted with appreciation that you have requested Eskom to seek options on how the electricity price requirements may be reduced. We agree that it is important that Eskom remain financially viable while electricity remains affordable. That is why we call upon the shareholders to increase their investment in Eskom. If this does not happen, many poor people will simply resort to firewood as fuel and, in the process, destroy the forests. 14 FEBRUARY 2012 PAGE: 116 of 447 In the state of the nation address, Mr President, you declared 2011 as the year of job creation and promised the creation of 500 000 jobs; 350 000 people have been employed, so how do we calculate this? Is this the difference between the jobs that were created and the jobs that were lost? We need to understand. In the same breath, you also promised that fully-funded vacant posts in the Public Service would be filled. What is the outcome? We support you and congratulate teachers, learners, parents and communities on the increase in the matric pass rate. In terms of the Eastern Cape, Mr President — yes, section 100(1)(b) to assist — we are disturbed by reports of a stand-off between the national team and provincial officials. Provincial officials are reported to be blocking and frustrating efforts by the national team to bring order. They’ve effectively shown them the wrong finger. The province is an integral part of South Africa and not some breakaway or secessionist republic. Do something to bring the Eastern Cape into line, for the sake of our children in that province. We have heard the tough talk, Mr President. Azapo now calls upon you to walk the talk. We agree that the willing-seller, willing-buyer system has not been the best option. As we interact with the Green Paper, Azapo will call upon expropriation as a last resort where everything else has failed. 14 FEBRUARY 2012 PAGE: 117 of 447 You want to eliminate all the harmful and abusive practices in labour broking. Well, you can’t, Mr President, because the system itself is inherently abusive. It has no single benefit for the workers, because it was never designed to assist them. The solution, in Azapo’s view, is a complete ban on labour brokers who are the modern form of slave owners. We welcome the heritage project announcement, hon President, more especially the inclusion of other heroes from outside the ruling party. [Applause.] We have noted the inconclusive vote by the African Union to elect a Chairperson of the AU Commission. We have also noted that hon Minister Nkosazana Dlamini-Zuma will still be a candidate at the next summit. Azapo wishes her well, but then, Mr President, you have not really taken us into confidence on why it is important for the AU, for the Southern African Development Community, for South Africa, and for the hon Minister to be at the helm of the commission. Thank you. [Time expired.] [Applause.] The MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Mr President, Deputy President, Speaker, hon members of this House, in his state of the nation address President Zuma reminded us all that: The year 2012 is also special because it marks the 16th anniversary of the Constitution of the Republic, which gives full expression to our democratic ideals. 14 FEBRUARY 2012 PAGE: 118 of 447 The President said further: The Constitution is South Africa’s fundamental vision statement, which guides our policies and actions. We reaffirm our commitment to advance the ideals of our country’s Constitution at all times. It is the Constitution of the Republic of South Africa that is our guide as we advance in our quest to create a national democratic society. In its preamble, the Constitution enjoins all of us to: Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights; Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law; Improve the quality of life of all citizens and free the potential of each person; and Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations. As we celebrate 100 years of selfless struggle by the ANC, it is important to reflect on how the history of the ANC struggle sought to advance human rights and equal opportunities for all people of 14 FEBRUARY 2012 PAGE: 119 of 447 South Africa. The struggle for freedom has always been a struggle for human rights, a struggle for justice. It was, therefore, no coincidence that in 1923 the ANC was the first organisation in South Africa to adopt the Bill of Rights. Its main themes in 1923 were that human rights should be universal, that all South Africans be given the right to ownership of land, that there should be equality before the law, and that there should be equal political rights. These fundamental principles were rooted in contemporary democratic thinking and applied to our own specific South African conditions. These fundamental principles laid the basis for the adoption of the Africans’ Claims in South Africa document by the ANC in 1943. The Africans’ Claims committed to the following, amongst other things: the abolition of political discrimination based on race, the right to equal justice in courts of law, freedom of movement and the repeal of pass laws, the right to freedom of the press, the right of every child to free and compulsory education, and equality of treatment with any other section of the South African population. It is also of significance that the Africans’ Claims were adopted ahead of the United Nations Universal Declaration of Human Rights in 1948. It did not end there. The continual struggle for freedom culminated in the Congress of the People, a countrywide campaign 14 FEBRUARY 2012 PAGE: 120 of 447 that led to the birth of the Freedom Charter, which became a profound policy document that ultimately became and formed the bedrock of our current Constitution in the Republic of South Africa. The masses of our people, when assembled in Kliptown in 1955, pledged to fight side by side, throughout their lives, until they had won our liberty. It has taken close to half a century for these freedoms and these liberties contained in the Freedom Charter to be realised in a protected, painful struggle for freedom led by the ANC. Allow me, also, to remind this House that many in the liberation movement suffered the consequences of fighting for the constitutional values that we enjoy today. In this regard, many were imprisoned, many were exiled, many suffered various atrocities at the hands of the repression by the South African security forces. Many paid the ultimate price to ensure that this fundamental vision statement that the President talked about represented and found expression in every sphere of our endeavours as South Africans. As you would know, these historical documents formed the basis of the mandate of the ANC leaders who led the negotiation process for the free democratic South Africa that we have come to witness today, representing the views and aspirations of millions of South African people. The unbanning of the ANC and other political parties and the release of former President Nelson Mandela and other political 14 FEBRUARY 2012 PAGE: 121 of 447 leaders set the tone for the negotiated settlement. The Groote Schuur Minute and the Pretoria Minute set the conditions for the negotiations between government and all political formations led by the ANC. These negotiations, as we all know, ushered in our esteemed Constitution, which was eloquently described by former President Mandela as follows: This is our national soul, our compact with one another as citizens, underpinned by our highest aspirations and our deepest apprehensions. Our pledge is: Never, never again shall the laws of our land render our people apart, or legalise their repression or oppression. Together we shall march hand in hand to a brighter future. Therefore, this Constitution is founded on the values that the ANC stands for: nonracialism, nonsexism, respect for human rights and prosperity for all. It enshrines a justiciable Bill of Rights which, in terms of section 7 of the Constitution, is the cornerstone of our democracy. It enshrines the rights of all people in this land and affirms democratic values, human dignity and freedom. The independence of the judiciary and the rule of law are the pillars on which the constitutional order is anchored. The separation of powers embodied in our Constitution provides checks 14 FEBRUARY 2012 PAGE: 122 of 447 and balances to safeguard these values. Each of the three arms of the state has been conferred a mandate by our Constitution. These mandates are not meant to result in unhealthy competition or conflict with one another, or to put the three arms into antagonistic positions against each other. Instead, the Constitution creates a complementary framework in terms of which powers are exercised in a manner that would entrench the overall text and spirit of the Constitution as a whole. We should bear in mind that the judiciary, by and large, must, as the late Chief Justice Mahomed would attest, interpret laws that seek to buttress our democratic order in line with the general injunction of the Constitution. These laws are instruments enacted by the legislature. This is a very important principle because the crafters of our Constitution had full knowledge of the inherent tension in the interplay amongst the three arms of the state, hence the powers to make laws do not reside with judges but with the legislature. Similarly, the power and mandate to interpret the law does not reside with the legislature or the executive but with the judiciary. On the other hand, the executive is charged with political administration to ensure transformation and development, and not the judiciary. 14 FEBRUARY 2012 PAGE: 123 of 447 The Constitutional Court continues to have a significant role in the transformation of society ... Prince M G BUTHELEZI: Mr Speaker, on a point of order ... The SPEAKER: Hon Minister, just hold on for a second. Yes, sir? Prince M G BUTHELEZI: Babanga umsindo laphaya, sikhathele umsindo. [Uhleko.][They are making a noise over there; we are tired of the noise. [Laughter.]] The SPEAKER: Hon members of the IFP on that side ... [Laughter.] ... and all members in the House, we want to hear the speaker. Proceed. The MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: The Constitutional Court continues to have a significant role in the transformation of society, which is underscored by a series of landmark judgments by the highest court in the land. These judgments include, amongst other judgments, the Makwanyane judgment which outlawed the death penalty and reinforced the values of human dignity and ubuntu; the Grootboom judgment which gave effect to the right to housing enshrined in the Bill of Rights; as well as the Treatment Action Campaign, TAC, judgment which gave effect to the right to basic health care and access to antiretroviral drugs. Our evolving jurisprudence championed by our Constitutional Court should always strive to advance the values of a democratic society 14 FEBRUARY 2012 PAGE: 124 of 447 to improve the quality of life of all our people. It is within this context that the judgments of the courts, in particular of the Constitutional Court, will generate debates and criticism, not unusual in a constitutional democracy. However, any criticism in this regard will always be welcomed as stated by the late former Chief Justice Mahomed: What they are entitled to and demand is that such criticism should be fair and informed; that it must be in good faith, that it does not impugn upon the dignity or bona fides and, above all, does not impair their independence because judges themselves would not be the only victims of such impairment. The assessment, therefore, of the impact of judgments of the Constitutional Court on the transformation of the South African society seeks to evaluate the impact of our jurisprudence on the democratisation process. This must, therefore, not be viewed as an attempt by government to undermine the independence of the judiciary and the rule of law which are entrenched in our Constitution. The ANC government continues to implement laws and programmes to safeguard the constitutional values that advance the national democratic principles that underlie our rainbow nation. The Constitution Seventeenth Amendment Bill, its accompanying Superior Courts Bill currently being debated in Parliament, and the 14 FEBRUARY 2012 PAGE: 125 of 447 President’s proclamation that establishes the Office of the Chief Justice as a separate independent entity, seek to affirm our commitment to the independence of the judiciary. The measures we have introduced are not an ideological onslaught on the independence of the judiciary, as some of our detractors argue, but are constitutional imperatives entrusted to our government. This includes the obligation to establish a judiciary that reflects the racial and gender demographics of the South African society. The transformation of the judiciary extends beyond the racial and gender composition and includes changing the mindset of the members of the distinct arms of the state and the transformation of the legal order to advance the attainment of our national democratic society. In striving for a better life for all, underpinned by our vision of a nonracial, nonsexist, democratic and prosperous society, we have persistently encountered obstacles, mainly due to the legacies of more than 300 years of colonial oppression, which produced an economy predominantly led and owned by white males. Our agenda is informed by a framework for a mixed economy, where the private sector and our developmental state interplay to resolve the legacy of colonialism and apartheid. This journey towards a national democratic society is and will not be easy as the first president of the ANC, John Langalibalele Dube, told us in January 1912: 14 FEBRUARY 2012 PAGE: 126 of 447 Many are the difficulties I foresee in our way — enemies without, fierce and frank; dangers within, undersigned perhaps but still more harmful. It will be an uphill fight, but our watchword shall be “Excelsior!” — onward, higher; cautiously, ploddingly! ... by the nobility of our character shall we break down the adamantine wall of colour prejudice and force even our enemies to be our admirers and our friend. On this occasion, Mr Speaker, allow me to make a call that we should look beyond our differences and ensure that we all work towards the vision of a national democratic society that is envisaged in our Constitution. We will continue to build a stable, peaceful, democratic, nonsexist and prosperous society, in which the fruits of our country are enjoyed by the people as a whole, as outlined in the Freedom Charter and further consolidated in our guide, the Constitution. I thank you. [Applause.] Mr N T GODI: Mr Speaker, Comrade President, Deputy President, comrades and hon members, I rise on behalf of the APC to congratulate you, hon President, on your state of the nation address. You spoke to some of the issues critical to taking us forward as a country with clarity, focus and detail. Our Constitution enjoins us to honour those who suffered for justice in our country. In this year of the centenary of the liberation 14 FEBRUARY 2012 PAGE: 127 of 447 movement, the APC wants to reiterate that yes, we have a future as much as we have a past. Yes, we had a brutal colonial system of white minority rule that oppressed and exploited the African majority politically, economically and culturally, and that as we live and enjoy this freedom, let’s not forget where we come from. Rural development, land reform and agriculture must be elevated to a higher pedestal as areas of possible and easy competitive advantage. Africans must consume what they produce. Productive land should not be allowed to lie fallow. The APC agrees fully with you, Comrade President, that land reform has to be done differently. Land reform must be seen not only as a matter of historical redress, but also as a matter of social justice. It cannot be that white South Africans should own land out of proportion to their population figures. It is not sustainable. We equally make a call for the development of the rural areas. People in rural areas bear the brunt of underdevelopment and grinding poverty. In many instances they lack basic amenities like water, proper roads, etc. We also make the call that the role of traditional leaders in socioeconomic development needs to be clearly articulated and properly implemented. The APC, Comrade President, remains concerned 14 FEBRUARY 2012 PAGE: 128 of 447 that the issue of the remuneration of headmen and headwomen remains a dream deferred. Despite the half-hearted recommendations of the Seriti commission in August 2011, there has been no implementation. So, headmen and headwomen in Limpopo continue to earn R13 000 per annum, whilst those in the Eastern Cape earn about R86 000 per annum. Comrade President, the APC calls upon you to hear the pleas and heed the plight of headmen and headwomen, who are both the motive force and underclass of the Institution of Traditional Leadership. The APC submits that the way in which issues of traditional leaders are handled still leaves much to be desired. The APC has always articulated and striven for a society that is democratic in form, nonracial in character and socialistic in content. The APC therefore welcomes and supports an enhanced role of the state in the economy. The difference in economic development between India and China, as observed by Robert Sobukwe in 1959 and which still holds true today, is the difference between a state playing a key role in the economy and the opposite. The APC wants to congratulate SADC on taking a firm stand against French neocolonialism. We must continue our challenge for the chairpersonship of the AU Commission. The APC has full confidence in Dr Nkosazana Dlamini-Zuma. [Applause.] We also wish to applaud 14 FEBRUARY 2012 PAGE: 129 of 447 Comrade Baleka Mbete on her appointment to the African Peer Review Mechanism. We want to see South Africa playing a more prominent role in the continent’s affairs. The unfolding events in the Syrian Arab Republic are a matter of concern for the APC. However, the APC believes that South Africa must only support the Arab League if it has norms and standards to which it subjects all member states, and not just some because they happen to be ruled by non-Sunnis. How do oligarchs who do not allow women to watch a soccer game in a stadium or drive vehicles lead a charge to demand human rights and democracy in Syria? South Africa should not allow itself to be used. [Applause.] Finally, as the APC, we say to the ANC: Happy birthday! The APC loves you. [Applause.] The SPEAKER: Hon member, you still had another minute to go. Mrs J D KILIAN: Mr Speaker, while the announced super-spending on infrastructure development is good news, Cope is concerned that the roll-out of this programme may be impeded by the escalating public wage bill, which already consumes 42% of government expenditure. Furthermore, we are concerned that the President said very little about critical issues that impact on South Africa’s positioning as a 14 FEBRUARY 2012 PAGE: 130 of 447 developing country and an attractive investment destination. These include education, skills development, service delivery and the rooting out of the scourge of corruption. Remarkably, the President was also silent on the information and communications technology, ICT, sector and its role in building public-private partnerships for investment in communications infrastructure, which is a key cornerstone for economic growth. I will deal with a few issues that could place us on a trajectory to development and which could eradicate poverty and inequality. If we, however, fail to address these challenges, we will fail the nation as a whole, in particular the youth of the country. In 2009 President Zuma gave South Africa an undertaking that teachers would be in their classes in schools on time and that they would be teaching. Yet, after a crippling teacher strike in 2011, which left thousands of matric learners at their own mercy, the President said this year that we had had remarkable success in basic education on the basis of an upward trend in the matric pass rate, a trend of which the credibility and the quality of the matric results are being questioned by many independent education experts. Cope, like many thousands of parents in South Africa, believe that the South African public school system suffers from the dangerous effects of irresponsible career unionism, which is the major source 14 FEBRUARY 2012 PAGE: 131 of 447 of teacher absenteeism. This sad state of affairs is contributing to a dangerous inequality gap - those who matriculate from schools where teachers are committed to quality education and those who have to fend for themselves when teachers go on strike and when union leaders use teacher strikes to advance their own standing in the ruling alliance. And then the President thanks them for resolving the crisis they themselves created. Within the first four weeks of the new academic year in the Eastern Cape, which is the province with the worst matric results in the country last year, seven million teaching hours had already been lost, and then the President congratulates the union leaders on resolving the crisis. The question is: Does the President support his Minister of Basic Education and her efforts in the section 100(1)(b) intervention? Why did he deliver her to the detractors who have no real interest in the wellbeing of the learners of our country? Is the President really serious about quality education and the future of our youth, or are learners in the Eastern Cape knowingly sacrificed in the crossfire on the road to Mangaung? [Applause.] The President’s scant reference to improvements in the fight against crime and corruption was also unsatisfactory. Private sector initiatives can help, but government should lead this fight. 14 FEBRUARY 2012 PAGE: 132 of 447 Government needs to send a strong signal. We need public sanction for people in high offices who are caught in corrupt practices. Why are the harsh sanctions prescribed in the Public Finance Management Act not implemented? Are there too many sensitivities and loyalties that prevent its strict application? Or is it a lack of political will? How many errant officials have been made to pay back the spoils of corrupt practices? According to the Auditor-General, none so far. When the noose tightens, those guilty of misappropriation of state resources simply resign or they get redeployed somewhere else in the Public Service. Members of the Ethics Committee of Parliament recently let a former member of the executive off the hook because he resigned from Parliament. But what message does that send, sir, if a member of the executive can escape sanction by simply resigning? Must we resign ourselves to a general perception that bribery and corruption have become a South African way of doing business? No, sir, we should not. As a nation, we need to stand up. Every day individuals and organisations around the world stand up to corruption, from accountants to school teachers to journalists — people with diverse backgrounds, but with a single message: corruption shall not and will not be left unchallenged, showing that it is possible for ordinary people to do extraordinary things. But it is a lot easier if government plays its part through introducing 14 FEBRUARY 2012 PAGE: 133 of 447 the necessary penalties in the Executive Members’ Ethics Act and other laws that govern the public sector. We know that where there is power and money, there will be attempts at corruption. The only variable is how serious it becomes and what is done to expose it. We don’t need limp-wristed reprimands or redeployment, depending on the individual’s potential influence in Mangaung. We need firm action from the government, irrespective of the individuals concerned. South Africans also expected more concrete emphasis on measures to arrest the intensifying collapse of service delivery at local government level. Damning findings by the Auditor-General indicate widespread unauthorised, irregular, fruitless and wasteful expenditure in local government. Nearly R10 billion of public funds could not be properly accounted for, with much of it potentially being lost through fraud and corruption. Why did the President not express his concerns about this trend? Or does the shadow of a collective voting strength of ANC cadre councillors in Mangaung cloud the issue of local government service delivery failures? Cope’s challenge to the President and the government is to fight corruption with decisiveness. Thank you. [Time expired.] [Applause.] Mnr N J VAN DEN BERG: Mnr die Speaker, verhoudings is meestal inherent ingewikkelde konsepte. Jy kan nie van verhoudings ontvlug 14 FEBRUARY 2012 PAGE: 134 of 447 nie. Die hele lewe is deurspek met verhoudings. Vra maar vir enige mens hoe moeilik of maklik dit kan wees. Verhoudings kan die mens laat blom van geluk of dit kan vernietigend wees as dit misluk. Hoe dit ook al sy, verhoudings verg aandag. Dit moet daagliks onderhou word. ’n Goeie verhouding kan ook nie net van een kant af kom nie. Beide partye moet elke dag hard werk om die verhouding te laat slaag, mekaar dinge gun wat die ander se menswees laat blom. Die mens se verhouding met die staat is een van die belangrike verhoudings in sy bestaan. Die veeltalige, multikulturele aard van Suid-Afrika maak eenvoudige, ongekompliseerde verhoudings tog moeiliker, maar dit skep ook unieke geleenthede vir versoening. Mnr die Speaker, die President se toespraak het op belangrike makroekonomiese sake gefokus, maar mnr die President, u het gefaal om met ons te praat oor sake wat ons harte raak en ons nasie saamsnoer en versoening aanwakker. Ons is bly die President het ’n versoenende gebaar gerig aan die Khoi-mense deur te verwys na sekere erfenisgebiede. Ongelukkig was dit net ’n druppel in die emmer. Die President moet weet, en ek wil nie die saak onredelik vereenvoudig nie, die gewone mens meet die regering se agting vir hom as mens op grond van die regering se houding teenoor sy taal en kultuur. Die verskillende taal- en kultuurgroepe waak jaloers oor die eie en wat die ander kry. 14 FEBRUARY 2012 PAGE: 135 of 447 Alhoewel ons as individue almal lede van die wonderlike SuidAfrikaanse nasie is, is ons vanweë natuurlike faktore tog losweg in verskillende taal- en kultuurgroepe gevoeg. Die groepe is soos die land se kinders: Jy kan nie vir die een iets gee en nie vir die ander nie. Jy kan ook nie iets by die een wegvat en vir die ander gee nie. Die regering kan ook nie iets belowe en dit nie gee nie. Ons moet ook so optree dat dit nie gesonde nasieskap ondergrawe nie. Alhoewel daar groeperinge is, moet ons dit nooit uit die oog verloor dat ons saam ’n toekoms moet bou nie. Die toekoms het genoeg ruimte vir almal. Dit is juis oor die toekomsbeskouing waar apartheid so jammerlik gefaal het. Die DA sien ’n wonderlike gesamentlike toekoms vir ons almal onder een sambreel, so ’n mooi bloue. [Tussenwerpsels.] Die Grondwet is ook so geskryf om as versekering te dien dat alle groepe se taal- en kultuurerfenis beskerm word. Dit moet ook bevorder en gevier word. Die regering moet alles moontlik bydra om Suid-Afrika se kultuurerfenisgebiede te beskerm en te bewaar. Ons sal beoordeel word volgens die wyse waarmee ons met historiese artefakte en die geskiedenis gehandel het. Dit is nou onverstaanbaar dat die regering onrus en woede stook met die wetsontwerp oor tale, die South African Languages Bill. In sy huidige vorm is die wetsontwerp ongrondwetlik en sal die DA alles in sy vermoë doen om elke taal van ons land te beskerm. Taal en kultuur 14 FEBRUARY 2012 PAGE: 136 of 447 is en bly een van die hoekstene van versoening. Versoening hou ook nooit op nie. Ons sal nooit ’n dag in ons land kan hê waar ons sal kan sê dat versoening nou bereik is, dat alle verskille bygelê is nie. Ons moet elke dag onsself afvra: Het ek vandag so opgetree om verdeeldheid, onreg en liefdeloosheid weg te boender? Is ek ’n ware versoener? Ons moet elke dag daarna streef om die taal wat ons moeders aan ons gegee het met sorg te praat, dit blink te poets en ook ’n besondere poging aan te wend om onsself meertalig te maak sodat ons kan deel in die trefkrag en darteling van ons inheemse tale. Gaan lees gerus weer ’n mooi gedig in jou taal en raak van voor af verlief op jou eie taal. Dit is tog immers Valentynsdag. Ons hoor die pragtige Afrikaanse gedig, D J Opperman se Sproeireën, as een voorbeeld: (Translation of Afrikaans paragraphs follows.) My nooi is in ’n nartjie, my ouma in kaneel, daar’s iemand ... iemand in anys, ... daar’s ’n vrou in elke geur! As ek ’n stukkie nartjieskil tussen my vingers buig of knak, breek uit die klein sproeireën wat geurend om my hand uitsak, 14 FEBRUARY 2012 PAGE: 137 of 447 die boorde weer van Swartfoloos en met die nartjies om my heen weet ek hoe dat ’n vrou kan troos. O my nooi is in ’n nartjie, my ouma in kaneel, daar’s iemand ... iemand in anys, daar’s ’n vrou in elke geur! [Mr N J VAN DEN BERG: Mr Speaker, relationships are mostly inherently complex concepts. One cannot escape relationships. Life as a whole is interspersed with relationships. Ask anyone how difficult or how easy they can be. Relationships allow one to blossom because one is happy or they can be destructive if they break down. Be that as it may, relationships require care. They should be sustained on a daily basis. A good relationship also cannot come from one side alone. Every day both parties have to work hard in order to for the relationship to succeed, allow each other things which will enable the other’s being to blossom. One’s relationship with the state is one of the important relationships of his existence. Yet the multilingual, multicultural nature of South Africa makes simple, uncomplicated relationships more difficult, but it also creates unique opportunities for reconciliation. 14 FEBRUARY 2012 PAGE: 138 of 447 Mr Speaker, the President’s speech focussed on important macroeconomic matters, but hon President, you failed to speak to us about matters which are close to our hearts and which unite the nation and foster reconciliation. We are glad for the President’s conciliatory gesture towards the Khoi people when he referred to certain heritage areas. Unfortunately it was only a drop in the ocean. The President should understand, and I do not want to unduly simplify the matter, that the ordinary person measures the government’s respect towards him as a human being on the grounds of the government’s attitude towards his language and culture. The different language and cultural groups jealously guard over their own and what the others receive. Although we as individuals are all members of the wonderful South African nation, we are still, owing to natural factors, loosely linked into different language and cultural groups. These groups are like the children of the country: One cannot give something to the one group and nothing to the other. One also cannot take away from the one group and give it to the other. The government cannot promise something and not give it. We should also conduct ourselves in such a manner as not to undermine healthy nationhood. Although there are groupings, we should never lose sight of the fact that together we should build a future. The future has enough room for all. It is precisely apropos of its approach towards the future 14 FEBRUARY 2012 PAGE: 139 of 447 that apartheid failed dismally. The DA sees a wonderful future together for all of us under one umbrella, a beautiful blue one. [Interjections.] The Constitution is also written in such a manner as to guarantee the protection of the language and cultural heritage of all groups. This heritage should also be promoted and celebrated. The government should contribute in all possible ways to protect and to promote South Africa’s cultural heritage areas. We shall be judged according to the manner in which we dealt with historical artefacts and history. It is incomprehensible that the government foment unrest and anger by means of the Bill on languages, the South African Languages Bill. In its present form the Bill is unconstitutional and the DA will do everything in its power to protect each language of our country. Language and culture are and remain one of the cornerstones of reconciliation. Reconciliation never ceases. We shall never be able to have a day in our country where we would be able to say that reconciliation has now been achieved, that all differences are settled. We should ask ourselves every day: Did I behave today in such a manner that discord, injustice and a lack of compassion have been eradicated? Am I a true conciliator? Every day we should strive to speak the language which our mothers gave us with care, to make it 14 FEBRUARY 2012 PAGE: 140 of 447 radiant and also to make a special attempt to become multilingual so that we can share in the effect and the playfulness of our indigenous languages. By all means go and read again a beautiful poem in your language and fall in love with your language all over again. As you know, it is St Valentine’s Day today. We listen to the beautiful Afrikaans poem Sproeireën by D J Opperman, for example:] My nooi is in ’n nartjie, my ouma in kaneel, daar’s iemand ... iemand in anys, ... daar’s ’n vrou in elke geur! As ek ’n stukkie nartjieskil tussen my vingers buig of knak, breek uit die klein sproeireën wat geurend om my hand uitsak, die boorde weer van Swartfoloos en met die nartjies om my heen weet ek hoe dat ’n vrou kan troos. O my nooi is in ’n nartjie, my ouma in kaneel, daar’s iemand ... iemand in anys, daar’s ’n vrou in elke geur! 14 FEBRUARY 2012 PAGE: 141 of 447 Afrikaans, will you be my Valentine? Ek dank u. [Applous.] [I thank you. [Applause.]] The MINISTER OF PUBLIC ENTERPRISES: Hon Speaker, hon President, hon Deputy President and hon members, I know that I’m literally standing between the hon members and their Valentines commitments. So, I shall waste no time. The hon President has already outlined what was an extensive and very visionary state of the nation address, beckoning us to do more together and united in our diversity to advance our historic mission of total emancipation and construct a national democratic society with a high rate of growth and shared wealth. Never has a vision been so eloquently articulated through concrete projects as in what the President outlined in such a comprehensive fashion and with such admirable thoroughness such that words alone, no matter how beautiful, would seem wholly inadequate. The central theme of the President’s message was that we need to act urgently and concretely to get South Africa working, growing and moving. The vision advanced by the President beckons us to pursue a growth-enhancing economic response path that places at its core infrastructure development and that deals directly with structurally entrenched industrial weaknesses, amongst which is investment in social and economic infrastructure. 14 FEBRUARY 2012 PAGE: 142 of 447 The developmental state paradigm has no space for fatalism, but encourages pragmatic creative policy thinking which takes into account the strategic focus of the state, the institutional architecture, the organisation of the state, technical capacity and the political will to take hard decisions that powerful actors or interest lobby groups would otherwise evade. The state of the nation address is predicated on the government’s willingness to correct capital market failures through infrastructure investments as a mechanism to facilitate economic transactions. As outlined by the President, the state-owned companies are but one of the vehicles for the achievement of the national objectives. The programme outlined in the state of the nation address could potentially position South Africa as a manufacturer of capital and intermediate goods through investment in localisation programmes. The programme seeks to meet the global demand for our natural resources, exploit economic opportunities in various routes and present a new opportunity in particular for the manufacturing industry to create downstream linkages, whilst the electrification programme is responding to our growing economy and seeks to ensure security of supply, with a long-term objective of reducing the carbon footprint by 2030, and building technical expertise that can 14 FEBRUARY 2012 PAGE: 143 of 447 be converted into a national asset for a global south electrification programme. Already, through the construction of the Medupi and Kusile power stations, the socioeconomic impact of Eskom in these communities is massive. The next step is to encourage provincial and local governments to use the technical capacity created by this investment to stimulate local economic development. By its nature, the developmental state is the manager of the strategic sectors of the economy and of the reallocation of resources to productive sectors. Infrastructure is critical for South Africa to break free from the minerals complex economy and to diversify — to build a dynamic economy. We believe that through the public infrastructure programme, we are not only testing our ability to facilitate crosspollination between the public and private sectors, but we will be writing a story on growth that is unique in the South African context. In that regard, government is determined that it should provide the leadership requisite for infrastructure roll-out to take place, including through resolving all bureaucratic impediments to the speedy and successful implementation of projects. For example, we have acted swiftly to eradicate the obstacles that might impede the implementation of the coal corridor expansion from the Waterberg by engaging with our Swazi colleagues at ministerial level to ensure 14 FEBRUARY 2012 PAGE: 144 of 447 the commencement of the work towards the 146-kilometre Swazi rail link. Ministers in the Cabinet understand that the successful implementation of these projects is not merely the responsibility of the relevant state-owned companies, so they are taking the lead. Furthermore, we understand that the Department of Public Enterprises must intensify its focus on its three functions as the shareholder, stakeholder and change manager. The issue of organisational capacity requires that we continue to pay attention to the strength of our state-owned companies, their internal leadership capabilities as well as financial viability. Transnet has strong and solid leadership and has been enjoying positive results recently, which have strengthened its balance sheet and enabled it, as the President has stated, to review its capital expenditure plan from R110 billion in five years to R300 billion in seven years. This emboldened capital expenditure plan is intended to satisfy validated demand and, more importantly, to shift the Transnet capex spend away from focusing on investment backlog, as is currently the case, towards expanding capacity to meet market demand by enabling volume growth, capturing operational efficiencies, expanding funding sources and expanding South Africa's economic transformation by supporting the New Growth Path. 14 FEBRUARY 2012 PAGE: 145 of 447 The focus of this market demand strategy is on growth in order to reposition South Africa as a key global coal, iron ore and manganese supplier, as well as the leading logistics hub for sub-Saharan Africa and the global reference point for container and heavy-haul operations. This will make Transnet one of the largest employers in South Africa, one of the top five global freight railways and one of the top five South African companies in terms of revenue. Its overall headcount will grow by 25% by 2019, from 59 102 workers currently to 73 962, whilst indirect jobs are estimated to increase to 194 303. An amount of R7,7 billion will be spent on training in the next seven years to upskill the workforce, and the intake of apprentices will increase from 500 to 886 per annum by 2019. The purpose of this market demand strategy is to reduce the cost of doing business and to facilitate job creation, localisation and regional integration. An amount of R31 billion will be spent on local suppliers for locomotive spend over seven years. The investment for the revitalisation of the rolling stock fleet is R125 billion over seven years. Of course, this strategy is financially sound and most of the growth will be internally funded, off Transnet's strong balance sheet, and only a third of this will require external funding. In implementing this strategy, opportunities for private sector participation amounting to about R5 billion in various sectors, such 14 FEBRUARY 2012 PAGE: 146 of 447 as containers, dry bulk, break bulk, liquid bulk and automotive, will be pursued. Further private sector participation will also be pursued towards the construction of the dig-out port at the old Durban International Airport. In addition to this, Transnet has been in extensive discussions with the Ports Regulator of South Africa on the issue of port tariffs to effect a R1 billion rebate — as the President indicated — for exporters of manufactured goods. Accordingly, we expect that the Ports Regulator will issue the record of decision or tariff decision, which will be effective from 1 April 2012. The automotive sector is one of the key customer sectors that will benefit from the rebate. In this regard, Transnet has signed an agreement with Toyota on 14 December 2011 to rail all its cars from the Durban Harbour to Gauteng, and from their Prospecton manufacturing plant to the Durban Harbour for exports and to do other value-added services inland and in Durban. Further to this, Transnet will create additional container handling capacity, particularly in Durban, in order to ensure that it is able to meet the demand. An amount of R12 billion will be invested to expand the Richards Bay Terminal and a coal terminal will be constructed at the East London Harbour to support coal mining in the Eastern Cape. In addition, Ngqura will finally be officially opened by the President on 16 March 2012 to be positioned as a trans- 14 FEBRUARY 2012 PAGE: 147 of 447 shipment hub. It is important to continue operating the container terminals as a complementary system in order to optimise the volumes that can be handled through the South African port system. At the same time, after engaging the National Energy Regulator of South Africa, Nersa, Eskom should be able to report to the President, government and the public within four weeks about the electricity pricing path favourable to economic growth and job creation. This has been made possible by Eskom’s strong financial and operational position, which has enabled some flexibility in how it funds and spends its capital and allowed it to introduce internal efficiency measures not previously possible. Because of this, the company has refined its capital expenditure numbers, re-evaluated its debt-funding approach and performed a detailed interrogation of the future energy demand forecast to enhance its accuracy. However, for this to happen, we must manage the electricity demand, and all South Africans must work together to reduce their electricity consumption by 10% through more efficient usage. In this regard, we will need a pact, especially with big business, not only to use electricity more efficiently to reduce consumption, but also, it is hoped, to maintain current production levels. We will also need to gain more certainty around Eskom’s input costs, especially coal price increases over the next five years. A pact 14 FEBRUARY 2012 PAGE: 148 of 447 will be needed with the suppliers of coal to limit price increases to the absolute minimum, preferably to single-digit percentages year on year. Eskom will also need to engage with rating agencies to ensure that its investment outlook remains stable. In this light, and to provide more certainty to the investor community, Eskom might have to revise its price path going forward without jeopardising its commitments. The Medium-Term Risk Mitigation Plan shows that the electricity supply-demand balance will remain tight until both the Medupi and the Kusile power plants begin operating. In the interim, we need efforts to be made from all sectors of society to ensure that the balance is maintained and that load shedding does not happen. We are determined that load shedding can be prevented if businesses, households and government work together to implement supply and demand measures, thus creating a safety net that can see the country and the economy through this period. Additional capacity of 3 000 megawatts is needed to ensure a comfortable reserve margin. South Africa aims to “keep the lights on” and prevent rotational load shedding. These goals are non-negotiable. The current instability in operating the power system is not acceptable. We need to move from crisis management to reliably providing electricity with scheduled window periods for maintenance. This moment calls for 14 FEBRUARY 2012 PAGE: 149 of 447 responsible citizenship on the part of individual and corporate citizens of South Africa. To this effect, we are implementing the 49M energy-saving campaign aimed at mobilising individual South Africans to save electricity in their households. To achieve these objectives, an emergency plan has been developed between the Department of Public Enterprises and Eskom for consideration and approval by government. We are cooperating with the Department of Energy and other stakeholders on these plans. Mr President, your state of the nation address has elicited an overwhelmingly positive response and communicated a message of profound hope, vision and leadership to the rest of the country. So thorough were you, sir, that others used the occasion of this debate to present their own gimmick state of the nation addresses. [Laughter.] As expected, today we have been treated to the yearly refrain from the opposition, rehearsed and rehashed with the same short-sighted enthusiasm each year, that the President’s address did not address this or that, selected by those who lost the general election and therefore the popular mandate. Frankly, we should now be spared such hollow and tired rhetoric and simply be referred to previous years’ archives; maybe then we could have finished early enough to be able to attend to our Valentine’s commitments. [Laughter.] 14 FEBRUARY 2012 PAGE: 150 of 447 Aristotle once said that criticism is something we can avoid easily by saying nothing, doing nothing and being nothing. On the contrary, since the ANC insists on saying something, doing something and being something, we should accordingly expect criticism. Failing to curb her inexplicable eagerness, the camera-prone hon Mazibuko had to please her constituency eager for doomsday news and criticise the state of the nation address a week before it was delivered. On the contrary the DA leader, the hon Helen Zille, applauded the President’s focus on infrastructure and correctly challenged the government to cut red tape in order to create jobs. Quite clearly, you have the starkest contrast between the DA leader, whose stint as premier has exposed her to the challenges and intricacies of running a government, and the hon Mazibuko whose only experience is as an opponent who has never had to lift a finger to do anything. [Applause.] Of course, they say the devil finds work for idle minds. The hon Leader of the Opposition is not only grossly inexperienced, she is also hopelessly clueless. [Applause.] Today she amended her ill-informed remarks made on Thursday night in haste. Her speech in this House earlier was a mere pipe dream and incoherent wish list that reminded me of where we were in 1994, and how far we have progressed since then, when we still stood at the dawn of our freedom. On the contrary, the President’s speech built on the proud edifice of 1994 and took South Africa into a future where the 14 FEBRUARY 2012 PAGE: 151 of 447 economy grows, people work, and the youth are skilled; a South Africa that is growing, working and moving. The opposition should not limit their understanding of being in this House purely for the sake of opposing. If this were the case, I can assure them that they do not need so many seats just to perpetually say “No”. The hon Lekota’s speech had a pitfall. He spoke so eloquently about job losses and people taking other people’s jobs that I nearly believed him, until I was reminded of Mr Shilowa and wondered why his job was taken and who has taken it. [Applause.] The hon Steenhuisen was quite opinionated for a newcomer. He told us about the beautiful Western Cape model. But what does this model tell us? It tells us of R1 billion in corruption in the communications advert tender; it tells us of no transformation; it tells us that women must stay out of government and probably remain in the kitchen. [Interjections.] He says that the President must side with the poor. The President did this long ago when he joined the struggle to defeat the system that the hon Steenhuisen continues to benefit from, and which he defends so vociferously. The President chose the poor long before Mr Steenhuisen was even an idea in the minds of his parents. [Applause.] The late US President Mr Theodore Roosevelt once said: 14 FEBRUARY 2012 PAGE: 152 of 447 It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, and comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. [Applause.] Those amongst us whose constituencies exist beyond the boundaries of suburban comfort understand that we are obligated to create a country that allows all its citizens access to opportunities and a dignified standard of living. We face a stubborn set of structural challenges, which the President accurately and most comprehensively addressed in his state of the nation address. We must muster the foresight collectively to galvanise our people towards a future of prosperity for all. If this dispensation — our mandate — is to be successfully fulfilled, it is towards this end that we must act collectively as 14 FEBRUARY 2012 PAGE: 153 of 447 this august House, rather than allow ourselves to be prisoners of a calamitous ideology and a paralysing despair towards which our opposition constantly strives to drag us. The realities that face our country need serious people who understand that we are here to work. Merely criticising is not enough. Hon members, “Happy Valentine’s”. [Applause.] Debate interrupted. The SPEAKER: Hon members, that brings us to the end of the list of speakers for the day. We will resume the state of the nation address debate tomorrow at two o’clock sharp. The House is adjourned. Enjoy what remains of Valentine’s Day! [Laughter.] The House adjourned at 18:22. ________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS FRIDAY, 25 NOVEMBER 2011 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 14 FEBRUARY 2012 1. PAGE: 154 of 447 Classification of Bills by Joint Tagging Mechanism (JTM) (1) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill: (a) National Health Amendment Bill [B 24 – 2011] (National Assembly – sec 76(1)). National Assembly The Speaker 1. Referral to Committees of papers tabled (1) The following papers are referred to the Standing Committee on Finance: (a) Government Notice No R644, published in Government Gazette No 34511, dated 12 August 2011: Amendment of Schedule No 3 (No 3/672) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (b) Government Notice No 668, published in Government Gazette No 34534, dated 18 August 2011: Allocation of general fuel levy revenue to metropolitan municipalities, published in terms of item 3(2)(a) of Schedule 1 to the Taxation Laws Amendment Act, 2009 (Act No 17 of 2009). 14 FEBRUARY 2012 (c) PAGE: 155 of 447 Government Notice No R672, published in Government Gazette No 34541, dated 26 August 2011: Amendment of Schedule No 1 (No 1/1/1428) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (d) Government Notice No R673, published in Government Gazette No 34541, dated 26 August 2011: Amendment of Schedule No 3 (No 3/673) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (e) Government Notice No 796, published in Government Gazette No 34631, dated 30 September 2011: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (f) Government Notice No 797, published in Government Gazette No 34631, dated 30 September 2011: De-listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (g) Government Notice No 798, published in Government Gazette No 34631, dated 30 September 2011: Listing of public entities, in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (h) Government Notice No 799, published in Government Gazette No 34631, dated 30 September 2011: Listing of public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). 14 FEBRUARY 2012 (i) PAGE: 156 of 447 Government Notice No 800, published in Government Gazette No 34631, dated 30 September 2011: Technical changes to public entities in terms of sections 47 and 48 of the Public Finance Management Act, 1999 (Act No 1 of 1999). (j) Government Notice No R844, published in Government Gazette No 34671, dated 14 October 2011: Amendment of Schedule No 1 (No 1/1/1429) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (k) Government Notice No R845, published in Government Gazette No 34671, dated 14 October 2011: Amendment of Schedule No 1 (No 1/1/1430) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (l) Government Notice No R847, published in Government Gazette No 34671, dated 14 October 2011: Amendment of Schedule No 3 (No 3/674) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (m) Government Notice No R867, published in Government Gazette No 34684, dated 21 October 2011: Amendment of Schedule No 3 (No 3/675) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (n) Government Notice No R868, published in Government Gazette No 34684, dated 21 October 2011: Amendment of Schedule No 4 (No 4/343) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). 14 FEBRUARY 2012 (o) PAGE: 157 of 447 Government Notice No R869, published in Government Gazette No 34684, dated 21 October 2011: Amendment of Schedule No 5 (No 5/94) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (p) Government Notice No R870, published in Government Gazette No 34684, dated 21 October 2011: Amendment of Schedule No 6 (No 6/23) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964). (q) Government Notice No R608, published in Government Gazette No 34477, dated 22 July 2011: Publication for public comment of proposed amendment of regulations made under section 70 of the Short-term Insurance Act, 1998 (Act No 53 of 1998). (r) Government Notice No R609, published in Government Gazette No 34477, dated 22 July 2011: Publication for public comment of proposed amendment of regulations made under section 72 of the Long-term Insurance Act, 1998 (Act No 52 of 1998). (2) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development: (a) Proclamation No R58, published in Government Gazette No 34677, dated 12 October 2011: Referral of matters to existing Special Investigating Unit and Special Tribunal: Kopanong Local Municipality, in terms of section 2(1) of the Special Investigating Units and Special Tribunals Act, 1974 (Act No 74 of 1996). 14 FEBRUARY 2012 (b) PAGE: 158 of 447 Proclamation No R59, published in Government Gazette No 34713, dated 28 October 2011: Commencement of section 1 of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008): Highveld Ridge Magisterial District in terms of section 4 of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008). (3) The following paper is referred to Portfolio Committees and to the Standing Committee on Finance and Standing Committee on Appropriations for consideration and report in accordance with a programme agreed by the Committee of Chairpersons: (a) (4) National Development Plan: Overview and Vision Statement [11 November 2011] The following papers are referred to the Portfolio Committee on Trade and Industry: (a) Government Notice No R887, published in Government Gazette No 34704, dated 28 October 2011: Amendment to the regulations made in terms of section 42 of the Trade Metrology Act, 1973 (Act No 77 of 1973). (b) Government Notice No 898, published in Government Gazette No 34724, dated 31 October 2011: Notice to revoke the deferment of the application of certain sections of the Consumer Protection Act to small and medium-capacity municipalities in terms of the Consumer Protection Act, 2008 (Act No 68 of 2008). (c) Notification of Entry into Force of Amendments to Annex VII of Protocol on Trade in the Southern African Development Community (SADC) Region, tabled in terms of section 231(3) of the Constitution, 1996. 14 FEBRUARY 2012 (d) PAGE: 159 of 447 Explanatory Memorandum to the Amended Annex VII of the Protocol on Trade in the SADC Region. (e) Government Notice No R938 [No 467 for English version], published in Government Gazette No 34740 [No 32186 for English version], dated 9 November 2011 [29 April 2009 for English version]: Izimiso Zomthetho Wokuvikela Abathengi, 2008 (Act No 68 of 2008). (Zulu translation of the Consumer Protection Bill, 2008, and notice of the President’s assent). (5) The following paper is referred to the Joint Standing Committee on Defence for consideration and to the Portfolio Committee on Defence: (a) Letter from the President of the Republic, informing members of the Assembly of the employment of the SA National Defence Force for service in fulfillment of the international obligations of the Republic of South Africa towards the United Republic of Tanzania. TUESDAY, 29 NOVEMBER 2011 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 14 FEBRUARY 2012 1. PAGE: 160 of 447 Bills passed by Houses – to be submitted to President for assent (1) Bills passed by National Council of Provinces on 29 November 2011: (a) Taxation Laws Amendment Bill [B 19 – 2011] (National Assembly – sec 77). (b) Taxation Laws Second Amendment Bill [B 20 – 2011] (National Assembly – sec 75). National Assembly The Speaker 1. Introduction of Bills (1) The Minister of State Security (a) General Intelligence Laws Amendment Bill [B 25 – 2011] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 34747 of 11 November 2011]. Introduction and referral to the Ad Hoc Committee on General Intelligence Laws Amendment Bill of the National Assembly (see Minutes of Proceedings of National Assembly, 24 November 2011, page 5111), as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. 14 FEBRUARY 2012 PAGE: 161 of 447 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 1. The Speaker (a) Reply dated 25 November 2011 from the Minister of Public Enterprises to recommendations in Report of Portfolio Committee on Public Enterprises on Funding Solution for Transnet Second Defined Benefit Fund and Transport Pension Fund, as adopted by the House on 18 November 2010. Referred to the Portfolio Committee on Public Enterprises. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Basic Education on oversight visits to the North West and Mpumalanga, dated 22 November 2011 The Portfolio Committee on Basic Education, having undertaken oversight visits to the North West and Mpumalanga from 25 – 29 July 2011, reports as follows: 14 FEBRUARY 2012 1. PAGE: 162 of 447 Introduction 1.1 A delegation of the Portfolio Committee on Basic Education conducted oversight visits as follows: 1.1.1 From 26 to 27 July 2011 the delegation visited the North West Province and visited the following schools: 1.1.2 Christiana School for the Blind and Partially Sighted, Christiana Thutlwane Inclusive School, Madibogo Mfihlakalo Special School, Klipgat Temoso Special School, Ganyesa Tshidilamolomo Inclusive School, Tshidilamolomo Temogo Special School, Sun City From 28 – 29 July 2011 the delegation visited the Mpumalanga Provinces and visited the following schools: Tenteleni KaNyamazane (Lekazi Township), Mngwenya Lekazi Inclusive School, Ehlanzeni Estralita Special School, Ehlanzeni Kamagugu Inclusive School, Ehlanzeni Bukhosibetfu Special School Ehlanzeni Silindokuhle Special School, Kwalugedlane 14 FEBRUARY 2012 1.2 PAGE: 163 of 447 Apart from meeting with the principal and teachers, in the spirit of co-operation, the Committee had invited the MECs for Education in the Provinces, officials from the National Department of Basic Education, the Heads of Department for the Provincial Departments of Education, the Provincial Portfolio Committees on Education in the Legislatures as well as Teacher Unions and School Governing Bodies to form part of engagements during the oversight visits. 1.3 The purpose of the oversight visits was to assess the state of special schools and the implementation of inclusive education in these provinces. There was an additional need to give support to the provincial departments of education in identifying challenges and assisting in finding effective solutions to challenges being faced. The visits formed part of the Committee’s oversight responsibility to monitor and support progress in the implementation of education priorities, particularly those linked to the improvement of quality basic education as Government’s Priority Outcome 1. Improving access to and quality of education for learners who experience barriers to learning is a key aspect of these priorities. 1.4 In preparing for the oversight and monitoring visits, the Committee prepared a basic monitoring instrument on the implementation of inclusive education and the state of special schools. This instrument focused on three categories of schools, namely, fullservice schools, special schools and mainstream schools. The instrument was developed according to the key criteria set for schools, districts and provinces against which to measure their progress towards inclusion. These criteria were drawn from the Department of Basic Education documents such as the Guidelines for Fullservice/Inclusive Schools (2010) and Guidelines to ensure Quality Education and 14 FEBRUARY 2012 PAGE: 164 of 447 Support in Special Schools and Special School Resource Centres (2007). In drafting the instrument, account was also taken of the views of stakeholders pertaining to inclusive education and special schools as expressed during the Committee’s public hearings on Access and Delivery of Quality Education (2010). 1.5 This report provides a summary of the key issues that emerged from the interaction with all stakeholders, principals, teachers, teacher unions, SGBs, officials of the National Department and Provincial departments as well as the committee’s deliberations, observations and recommendations. 2. Delegations 2.1 Portfolio Committee on Basic Education: Hon H H Malgas, MP (ANC) (Chairperson), Hon F F Mushwana MP (ANC), Hon A C Mashishi MP (ANC), Hon C Moni MP (ANC), Hon D Smile MP (DA), Hon A M Mpontshane MP (IFP) and Hon N M Kganyago MP (UDM). 2.2 Members of Staff: Mr D Bandi (Content Advisor), Mr L Mahada (Parliamentary Researcher, Mr L Brown (Committee Secretary) and Ms O Siebritz (Committee Assistant. 3. Background 3.1 The majority of learners who experience barriers to learning have either fallen outside of the system or have been mainstreamed by default. The curriculum and education 14 FEBRUARY 2012 PAGE: 165 of 447 system have generally failed to respond to the diverse needs of the learner population, resulting in a massive number of drop-outs, push-outs and failures. 3.2 In the Department’s Action Plan to 2014 they have proposed the following priorities as a response to the identified challenges: 3.2.1 Increase the number of full service schools to at least one for each district while ensuring their access to specialist services 3.2.2 Increase the percentage of schools in which at least one teacher has received specialised training in the identification and provision of support for special needs 3.2.3 Progressively strengthen the capacity of district offices to provide support to schools in the identification of special needs and to enable the provision of appropriate support 3.2.4 Provide appropriate and accessible textbooks, workbooks and other Learner and Teacher Support Material (LTSM) for visually impaired learners in 22 schools for the Blind 3.3 The Department had indicated that the following developments had occurred: 3.3.1 The accommodation of diversity through the curriculum was included in the CAPS Orientation Programme for provincial and district officials 14 FEBRUARY 2012 3.3.2 PAGE: 166 of 447 Two hundred provincial, district and school management team (SMT) officials from 66 schools were trained in specialised areas of visual and hearing impairment in March 2011 3.3.3 Workbook 1 for grades 1-6 were adapted for Brailing and grades 10-12 textbooks ordered for the 22 schools for the Blind 3.4 The Department had also committed to develop training programmes on the accommodation of diversity through the Curriculum and Assessment Policy Statements (CAPS) for teachers and school management teams progressively through to 2014. The Department would also ensure access to workbooks and textbooks for learners in schools for the Blind in line with the phased implementation of the Curriculum and Assessment Policy Statements (CAPS) to 2014 as well as develop training programmes on specialised skills for 700 and 1000 teachers of visually and hearing impaired learners respectively, starting in 2011 and continuing through to 2014. 3.5 The progressive conversion of ordinary schools to full service schools was one of key strategies for implementing the inclusive education policy. 3.6 The Department further indicated that there was a need to build capacity at district level using the Guidelines for Full Service Schools for further conversion of ordinary schools to full service schools to at least one school per district by 2014. The coordination of the procurement of assistive devices where required by provinces and ensuring that established Institutional-Level Support Teams (ILSTs) were functional in existing full service schools was a further need. 14 FEBRUARY 2012 4. Oversight Visit to the North West 4.1 Visits to Schools PAGE: 167 of 447 4.1.1 Christiana School for the Blind and Partially Sighted a) Overview The school’s disability categorisation is for the Blind and Partially Sighted learners. The school is situated in Christiana in the Dr Ruth Segomotsi Mompati District. Currently there are 96 learners and 13 educators (11 in terms of the post-provisioning model + two additional). The ratio of educators to learners stood at 1:10. After an in-loco inspection of the school buildings and infrastructure, the Committee met with the Acting Principal and representatives of the educators, the teacher union and School Governing Body (SGB). The school was generally in a good condition. Members were briefed on the incident resulting in the death of four learners in the hostel in December 2010 due to a fire outbreak, and how the school dealt with ensuring that this would not recur. Since the incident, all buildings have been fitted with smoke-detectors, fire alarms and fire-hydrants. Members requested the necessary information on the incident as well as the processes in respect of the suspension of the principal. Generally, the school structure (a dormitory/hostel) was not customized for a special school needs and had to be converted and adapted to the needs of the learners. 14 FEBRUARY 2012 PAGE: 168 of 447 All the necessary assistive devices had been procured and were in the process of being installed. The school had a basic maintenance plan in place and tried to carry out any necessary maintenance on a daily basis. The Acting Principal was concerned with the productivity of the educators and felt that learners were far behind in respect of the curriculum. She felt it was necessary to undertake further training for educators at the school. There was also a problem with the late arrival of textbooks at the school. These required to be scanned, proof-read and adapted to Braille. The Institutional Level Support Team (ILST) was unfortunately not fully functional and there was a need for a workshop on this. b) Further challenges: Besides the challenges mentioned above, other challenges at the school included the following: Infrastructure There was a concern regarding the security of the buildings and the school was working on quotations for the installation of an alarm system. There was also need for Close Circuit Television (CCTV) cameras to be installed though at the time of the oversight there was no budget. The school was experiencing problems with its hot and cold water system and needed to install extra geysers. 14 FEBRUARY 2012 PAGE: 169 of 447 The entire hostel required rewiring of the electrical systems – including the administration block. The school was awaiting the procurement of heaters/air conditioners for the hostel. Unfortunately there was only one houseparent for the girls hostel and therefore there was an urgent need for an additional person. Refuse storage tanks continuously overflowed as there was little co-operation from the municipality in having them emptied timeously. There was an urgent need for extra utensils in the kitchen. Newly installed piping in bathrooms had to be re-fitted due to a number of leaks. The school itself was merely a hostel that had been adapted and converted into a school for the blind and thus was not a suitable structure for the school. There was a need for more storage space at the school. School management The legal matter involving the suspension of the principal needed to be resolved and a new principal employed. The quality of teaching and learning The school did not have a Grade R Class – this resulted in learners who were not school-ready and their progression was delayed as a result. Transfer payments to schools were taking too long – there was a need to expedite this process. There was a need to procure computers for the learners and educators. 14 FEBRUARY 2012 PAGE: 170 of 447 Educators were fully qualified but were not as productive as required – there was a need for further training. There was a need for a remedial teacher to support learners with multiple special needs. There was a request for special classes for skills training and a need to test all learners. The procurement of textbooks was a major concern – either they were not available, or they took up to 18 months to be prepared and delivered. Question papers were often received late, leaving little time for scanning, proof-reading and adaptation to Braille, as in the case of the recent Annual National Assessment. There was an urgent need for intensive training/workshop on adaptation for learners and educators. The department was battling to secure specialised staff. 4.1.2. Thutlwane Inclusive School a) Overview Thutlwane is an inclusive school in the Madibogo District. The school had 13 educators and 482 learners. The educator: learner ratio for the school stood at 1:40. Because of renovations in 2005, the school structures/buildings were in fairly good condition. All classes were accessible to learners with ramps having been installed – although there were no special needs learners at the school. The school was in the process of acquiring further assistive devices. It was reported that the school did not have an allocated secure classroom for housing the computers and the school had been burgled on two occasions. 14 FEBRUARY 2012 PAGE: 171 of 447 As there was no transport for learners punctuality was an issue as they travelled up to four kilometers. The National School Nutrition Programme was functioning very well since the school received the funds transfer on time. The parent/teacher relationship was not as strong as desired since most parents were employed in the towns and did not stay in the village. The school did not have a Grade R class. Through donations from parents, the school was able to afford the services of a general assistant. The school Institutional Level Support Team (ILST) was fully functional. The school also served as an Adult Basic Education and Training (ABET) centre. b) Challenges: Infrastructure The Grade 3 class had at least 71 learners and there was an urgent need for an extra classroom. Although the ablution facilities were adequate there was a problem with water pressure. There was a request to procure a special room for computers. In 2010 and 2011 there had been theft of computer equipment. Computers that had been procured had not been installed due to security challenges. Classes had burglar bars but there was no security officer or alarm system at the school. There was a need for a library at the school. There was a major problem with the Quintile ranking – The school was of the view that they should be a Quintile 1 school to qualify for the necessary benefits. The quality of teaching and learning 14 FEBRUARY 2012 PAGE: 172 of 447 There was a concern that there was only one therapist in the district. There was a challenge in that the principal also taught up to 20 mathematics lessons per week, when in fact he should be allocated a maximum of 14 lessons. The principal proposed that the programme on Literacy and Numeracy be used as a model. Educators were trained during the June/July holiday period. District and provincial staff spent up to a week supporting schools. Teacher lap-tops were not yet received. The rural incentive was not received by educators, thus posing a challenge to secure specialised staff and competent teachers to the school. Curriculum specialists required their work in hard-copy whilst educators were using the Integrated Schools and Management System (ISAMS). The delivery of textbooks and workbooks was a challenge, orders were often inaccurate or insufficient numbers were received. 4.1.3 Mfihlakalo Special School (a) Overview The special school was situated in Klipgat in the Bojanala District. The school had a staff compliment of nine educators (including two additional) and 75 learners. The entire school was constructed from prefabricated material which has a limited lifespan. The buildings had been donated by local business sector. The school catered for the severely intellectually challenged. It served four categories of learners: basic practical, vocational, scholastic and media works. The school was in the process of designing a curriculum specifically for the needs of their learners. This was called the South African National Association for Specialised Education 14 FEBRUARY 2012 PAGE: 173 of 447 (SANASE) document. The document was currently with the Head of Department for further approval. It would then be presented to all schools in the provinces after which it would need to be approved by the National Department. All educators were professionally qualified and had additional special needs qualifications. However, there was a need for a remedial teacher at the school. Besides the kitchen being used for preparing meals, educators also used it to teach cleaning, dusting, washing floors and window-cleaning to learners. The ablution facilities were currently being built and after completion the school would include classes on toilet-hygiene. All learners at the school exited with a diploma or certificate. Some learners who undertook skills training received employment from BMW. Although there were some assistive devices in the form of televisions, hearing aides to access computers, audios, a piano, a guitar, cymbals and tambourines, the school required further class aides. No laptops had been supplied to educators. The school had outdated computers and required at least four new computers. The school ILST was fully established and functional. (b) Challenges: Infrastructure Ramps at the school needed renovation since they were too steep. The long distances which learners travelled to school were difficult since there was no school transport in place. The school does not have boarding facilities. 14 FEBRUARY 2012 PAGE: 174 of 447 The prefabricated buildings were not ideal since they were hot in summer and very cold in winter. Funding The school depended heavily on donations from businesses/companies. The quality of teaching and learning The educator/learner ratio remained a problem as this was skewed. The school required further class aides. There were no Learnerships for the learners exiting the school. Teachers had not received laptops and computers received were unfortunately outdated and needed upgrading or replacement (at least four new computers were required). Provincial and district support There was only one psychologist for the entire district. There was a need for further specialised/focused training for educators in specialised fields. Learner exit strategy No exit strategy existed for learners exiting the system including Learnerships. 4.1.4 Temoso Special School 14 FEBRUARY 2012 PAGE: 175 of 447 a) Overview Temoso Special School is situated in Ganyesa, Dr Ruth Segomotsi Mompati District. The school had 74 learners and five educators, one Head of Department and a Principal. It catered for learners who were severely and mild to moderate challenged. Some of the barriers were behavioral problems, autism, deafness, autistic spectrum disorders, psychiatric disorders, special needs and learners with specific learning barriers. The District Director, Mr Valtyn, indicated that the department was striving to support the operational obligations of managing inclusive education. The school was well maintained though there was a need to realign the buildings in terms of the new norms and standards. b) Challenges The Area Manager and the Principal explained some of the challenges faced by the school: Infrastructure There were not enough classrooms and no hostel. There was no guardroom and accommodation for the security guard. There was no playground for the learners. The playground was reappropriated by the Municipality to build a banquet hall. The quality of teaching and learning There were no specialist teachers to teach the kind of learners at the school. 14 FEBRUARY 2012 PAGE: 176 of 447 The curriculum was not responsive to the needs of these learners; teachers were just attempting to adapt it to suit the needs of the learners. In essence, there were many systems barriers at the schools that further complicated the actual barriers of learners. Provincial and district support The budget from the department was R140 per child which was inadequate considering the conditions of the children. There was no curriculum support offered to the educators. There were no therapists, psychologists or social workers assigned to the school; as a result services from private practitioners were sought when needed which came at a heavy cost. 4.1.5 Tshidilamolomo Primary School a) Overview The school is in Ngaka Modiri Molema District. It had 200 learners, seven educators, nine classrooms, and the average teacher-learner ratio was 29:1. The school was converted to fullservice in January 2011. They had managed to change the admission policy of the school into an inclusive one. The values, mission and vision of the school spoke to addressing challenges of learners with barriers. They were in the process of changing the physical environment of the school. One classroom had already been converted into a resource centre. They were in the process of finalising the security system at the school. Teachers were skilled but still needed training on inclusive education. The school had been offered a specialist team to assist in 14 FEBRUARY 2012 PAGE: 177 of 447 turning the school into full-service and there was a screening programme introduced at the school. The school support from Chief Director down to the school-based-support-team was satisfactory. b) Challenges The challenges outlined were: Infrastructure There was a serious need for a responsive infrastructure. The quality of teaching and learning There was no specific curriculum for this type of school. There was a need to have curriculum differentiation based on the abilities of the child. Often the differentiation conducted was to downsize the curriculum which is inadequate. However, teachers were independently piloting some activities for the curriculum; Some grades were combined due to the lack of sufficient educators; Staff was not specifically trained, though fully qualified, but they were capable to deal with some challenges in implementing the curriculum. Provincial and district support The school has requested services of psychologists, audiologists, and physiotherapists from other districts. The Chief Director indicated that it is very much difficult for the 14 FEBRUARY 2012 PAGE: 178 of 447 province to fill positions of therapists at the Department due to low salary brackets. The Department has been advertising specialist posts for years and its effort does not attract any. They have recently requested for the review of the salary scales of these specialists in a bid to lure some of them into the system. 4.1.6 Temogo Special School a) Overview Temogo Special School is situated at Bojanala District. The school is currently housed in the premises of another school, namely, Morongwa Primary School. There was an indication that the department planned to build another school. The school offered mathematics, life orientation and language subjects on Tuesdays while they offered skills subjects for the rest of the week. The skills subjects offered included woodwork, arts and craft, and needlework. The learners came from different demographic areas, like Mogwase and Ramokaka, which were in a radius of over 50 kilometers. This showed a real need for this type of school in other surrounding areas. There was however visible support from the department. The school received the services of physiotherapists and audiologists. b) Challenges Challenges outlined included the following: The principal remained in an acting capacity. Learners were inadequately accommodated. 14 FEBRUARY 2012 PAGE: 179 of 447 Learners were not certificated for the skills learnt at school. The School Governing Body (SGB) seemed removed from the activities of the school. Educators needed more training. 4.2. Interaction with the Provincial Education Department, North West This meeting served as a de-briefing session with the Provincial Department of Education in the North West. The gathering was attended by officials from the National Department, Provincial Department and representatives from the Provincial Legislature in the North West. The Chairperson of the Committee gave a brief outline on the objectives of the visits to various schools and their intended outcomes. She commended the Provincial Department for their efforts in addressing many of the challenges faced by these schools. She alluded to the many challenges that the Committee picked up during the visits to schools in the district. Dr Pedro, the Acting Deputy Director-General submitted a report on education in the Province. He mentioned that there were 1 720 schools in the province with 75 mainstream schools implementing inclusive education and 1 500 learners with special needs in mainstream schools per district. The number of full service schools per district was as follows: Ngaka Modiri Molema - 23 Bojanala – 24 Dr Ruth Segomotsi Mompati – 14 Dr Kenneth Kaunda – 14 14 FEBRUARY 2012 PAGE: 180 of 447 The number of remedial/learning support teachers in mainstream schools amounted to 106 with the number of teachers who received training to support learners with special education needs amounted to 1 000. There were about 1 614 schools without remedial teachers. There were at least 75 schools with classrooms and other facilities accessible for all learners, including those with special needs. Issues of safety and security at schools were an ongoing exercise and dealt with on an ongoing basis. Although schools had maintenance plans for specialist equipment, in some cases service providers were requested to service equipment. Officials were equipped to support the implementation of inclusive education through training in screening, identification, assessment and support. The provincial department was addressing the challenge of the provision of computers within the constraints of the budget. Dr Pedro acknowledged some of the shortcomings and requested time for the department to revisit them as far as possible. The Quintile System was currently being reviewed and had been suspended for the coming year. In respect of rural allowances, the decision was taken to pay all backlogs before 1 October 2011. He also mentioned that stationery delivery for the following year had already been approved. There were major problems in attracting therapists. The Department had been advertising since 2009, offering an increased salary as an incentive, with no success. 5. Visit to Mpumalanga 5.1 Interaction with the Provincial Education Department, Mpumalanga Mrs R Mhaule, the MEC for Education welcomed the delegation to the province. The Department had noted significant progress in the implementation of inclusive education programmes as outlined in the White Paper 06 of 2001. She assured the delegation that the 14 FEBRUARY 2012 PAGE: 181 of 447 province was trying its utmost to improve the situation at all special schools. The statistics of the province were as follows: Number of schools – 1 934 (1 475 primary and 459 secondary) Total number of learners – 963 111 Special schools – 18 Learners in special schools – 3 604 Full service schools - 140 The MEC indicated that their main challenge was that there were too few schools offering specialisation. The province had commenced preparatory work on creating a school for the deaf. Mrs M Mhlabane, Head of Department took the Committee through a slide presentation of the situation in the Province. In respect of the cost drivers and national pilots, Ms Mhlabane indicated the following: Cost Drivers - Environmental Access (Infrastructure Development) - Provision of Specialised Support Services - Provision of Assistive Devices and Resource Materials National Pilots - Human Resource Development - 3 Mainstream schools (Full-service schools) Tenteleni Primary School 14 FEBRUARY 2012 PAGE: 182 of 447 Mshengu Primary School Sibisi Primary School - 3 Special schools (as Resource Centres) Kamagugu Special School Silindokuhle Special School Pelonolo Special School The province had appointed in 2010/2011 seven deaf counselors, nine education specialists, four social workers, one orientation and mobility instructor and two clinical nurses. The construction of four special schools was progressing smoothly to cater for learners with severe special needs. The upgrading of seven additional special schools would commence during this financial year. The delegation further received a breakdown of the academic performance for special schools for 2010 as well as learners involved in pre-vocational skills development. Although the department faced numerous challenges, they had possible solutions to these challenges reflected in the following table: Challenges Possible Solutions Delays in upgrading of special schools Monthly meetings held to track progress Transport for special schools Procurement of transport was under discussion Securing scarce skills in the health profession Recruitment to be done in collaboration with the 14 FEBRUARY 2012 PAGE: 183 of 447 Department of Health Therapeutic interventions at special schools Schools have forged partnerships with local hospitals so that relevant interventions could take place Limited space in special schools A task team was appointed to do a study and present a plan of action Non-existence of special schools for Site identified and plans submitted for a special Bohlabela District school to cater for 100 severely intellectually challenged learners Shortage of assistive devices Assistive devices had been procured and delivered to 11 Special schools and 10 Full Service schools. Devices would be provided incrementally to other schools as the need arises Sport and Recreational Equipment and Sport Equipment was procured and delivered to 18 facilities Special Schools. Facilities to be upgraded and new ones introduced Environmental Access for Full-Service Not all schools were accessible. Special schools Schools and Special Schools would benefit from the upgrading project in progress 14 FEBRUARY 2012 PAGE: 184 of 447 Overcrowding at some Full-Service Schools To profile all schools for interventions Lack of Skills Centres To liaise with FET Colleges for short period training Mrs M Mlhlabane also alluded to the financial performance of the Special Schools Programme as well as the Inclusive Education Programme for 2010/11 with a breakdown of the planned outputs, budget allocation, actual output and expenditure. The Department had, over the years, used the Nelson Mandela Celebration Month to leverage the existence of Special Schools within the province. They had also launched a Compulsory Education Campaign to raise awareness in communities to enroll learners in schools, including those with special needs. Ms Mpumalanga 2011 had been appointed as an ambassador to lead the campaign. Radio talk shows on Special Schools were conducted annually. 5.2. Visits to Schools 5.2.1 Tenteleni KaNyamazane (Lekazi Township) (a) Overview The school was located in the Mngwenya area and was user-friendly for all learners. The school had 1 100 learners with 298 having various special needs. The school employed 41 14 FEBRUARY 2012 PAGE: 185 of 447 educators, one social support specialist, three administrative staff, six food handlers, six general workers and two assistant educators. At the time of its establishment in 1997 the school offered only Grades 1 – 4, but with requests from the community the school had extended up to Grade 7. The principal indicated the positive attitude of educators and the recent review of school policies. Most educators attended workshops, seminars and in-service training. In respect of curriculum enrichment, the principal indicated that the following were in place: The establishment of a school library and computer centre. A Science laboratory. A School Nutrition Programme. The building of a mini-kitchen (including 2 giant electrified pots for cooking). Educators made use of the computer centre to prepare lessons. The school has further introduced an adopt-a-child policy for educators. The eye mobility care programme sought to have learners eyesight tested, assessed and referred if necessary. The Department also assisted with providing spectacles for learners in need. The school had an alarm system with a security company that also provided the necessary monitoring. In addition, the schools also had a security guard at the gate (paid for through the School Governing Body (SGB) as well as secure fencing. (b) Challenges A key challenge facing the school was staff retention. Well trained educators were leaving the school for better prospects. 14 FEBRUARY 2012 PAGE: 186 of 447 There was a need for a multi-purpose hall, a full kitchen, skills centre and a total renovation of the school as well as the soccer field. The school required paving and parking bays. The school attracted learners from other areas (where there are schools nearby), a decision taken by parents. The Department did not provide transport. Computers were outdated and required costly maintenance. There was a need for professional support staff such as speech therapists and physiotherapists. The class ratio of 1:46 made it difficult to give special attention/focus to learners with special needs. The Department indicated that the school was one of the best in the district and attracted many learners from different areas who were not opting for schools in their geographic location. This created problems of overcrowding and transport issues. Transport was a systemic issue and needed further investigation from head office. The issue of the computers was a new matter that the Department would seek to offer assistance where possible. 5.2.2 Lekazi Inclusive School (a) Overview The school was situated in the northern part of Lekazi Township in KaNyamazane within the jurisdiction of Mbombela Municipality. The school catered for learners from informal settlements surrounding the township. The school comprised of 24 classrooms, a small administrative block with one office shared by seven School Management Team (SMT) members and three administration clerks. Enrollment figures stood at 1 097 learners, including 14 FEBRUARY 2012 PAGE: 187 of 447 172 learners with barriers (six with special needs, nine intellectually challenged, one albinism, one dwarfism, 155 learners who could not read or write), 31 Post Level (PL) 1 educators and four pre-school practitioners. Some learners with learning barriers were uneducable while others progressed in numeracy for the Foundation Phase though could not cope in other learning areas. The school also catered for learners with special needs and physically challenges. Programmes currently being run by the school included: Soul Buddies Discovery Maths Science Expo conducted by the SABC Peer Counseling Speech, Poetry, Reading and Drama The school also participated in different sports and activities such as soccer, netball, ladies soccer, “State of Mind” and cultural events. Through funds from BMW Awards, the school had built a library and a computer centre which was almost complete. The school also had a vegetable garden which assisted with the feeding scheme. Learners played a leading role in the maintenance of the vegetable garden. The school was able to secure a kitchen with the assistance of the Department and the School Governing Body (SGB) hired parents as food handlers. (b) Challenges Families that were child-headed put a strain on the learners. 14 FEBRUARY 2012 PAGE: 188 of 447 The school needed a stoep, verandas and accessible passages. Even with the mobile classes, overcrowding remained a problem. The school faced a large influx of learners resulting in some being turned away. Informal settlements were mushrooming within the school precinct. No time frames had been given by the Department in respect of renovations to the school. There had been cases of vandalism at the school. 5.2.3 Estralita Special School (a) Overview The school had a total enrollment of 192 learners with 136 hostel dwellers and 56 day scholars. Staff totaled 69 with 19 educators and 50 non-educators. From the SGB there were three house mothers and two educators. The school accommodated a wide range of learners with physical challenges. The school currently had only six household aides and required at least three more aides (two for the boys’ hostel and one for the toddlers’ hostel). Of the 10 hostel supervisors, only six were able to do night duties. The hostel supervisors were currently being paid by the School Governing Body (SGB). There was a plea that the Department paid for at least three of the supervisors. Vacancies in the hostels included three in the girls’ hostel, four in the toddlers’ hostel and 16 in the boys’ hostel. The buildings were all accessible to learners, except the hostels which were double-storey buildings. The school had started to renovate the ablution facilities. The school had ample storage space with a range of assistive devices for learners. The school also had a well 14 FEBRUARY 2012 PAGE: 189 of 447 equipped and functioning library – unfortunately the school did not have a computer centre. It was established that the school needed at least 16 computers with a main server and printer. The school was very secure with electronic gates and 24 hour security. School-based support included a pastor, adopt-a-cop and a social worker. (b) Challenges Although the school was accessible, the hostels were double-storey with no access to wheelchair bound learners. Although there was a Nursing Sister, the school could benefit from a separate sick-bay. There were no computers at the school. There was a request for at least 16 computers, a main server and a printer. A major problem was that toddlers were housed with senior girls. With a waiting list of 103 learners, there was a need for extra educators. There was an urgent need for the employment of at least three household supervisors and the filling of the three vacant household aides (general workers). Bathrooms needed renovation. There was a need for further specialised educators and speech therapists, social workers and diagnostic specialists. There was a need to consider the matter of disability grants, children’s grants, foster care grants and children’s home allowance. Although there were “no fee” schools, provision was not made for “no-fee” hostels. The Department had challenges in relation of human resources. On the issue of inter-sectoral collaboration, although a Memorandum of Understanding had been signed by MECs, implementation had not been effected. 14 FEBRUARY 2012 5.2.4 PAGE: 190 of 447 Kamagugu Inclusive School (a) Overview Kamagugu was a public Section 21 School. Learner’s therefore paid school development fees on top of the subsidy received from the Education Department. Independent audits were made annually with financial statements submitted by the auditors to the Department and also made available to parents. The school consisted of 46 staff members with one typist, two administration clerks, three SOS therapists, two cleaners and three groundsmen. The School Governing Body (SGB) paid for at least six staff members. The school learners could be classified as follows: 31 deaf learners. 220 learners with various barriers to learning. . All learners at the school were aged 6 – 18 with a maximum of 15 learners per class. Skills classes went up to 20 per class. The medium of instruction was English and Siswati, deaf learners were taught in South African Sign Language (SASL). The curriculum was adapted to accommodate learners with special educational needs. Sign language was a compulsory learning area for all learners. An extensive skills programme was offered to learners over 15 who did not have the ability to be placed in a mainstream school or to achieve Grade 9. Annually, parents’ and learners’ input is considered regarding programmes they would like the school to offer. Some Group 9 learners were placed with businesses in Nelspruit every Friday 14 FEBRUARY 2012 PAGE: 191 of 447 to gain work experience. An interactive smart board was used by staff and therapists to further assist learners academically. Apart from the assistance from the Department, most of the school infrastructure was built through sponsorships and support from the community. The school was also well equipped with sport equipment supplied by the Department – staff is allocated a monthly budget to purchase educational equipment and aids for their classes. Learners received meals daily since most of them were from underprivileged backgrounds. Companies were encouraged to take in learners and train them for a specific need within the company. Learners also manufactured beadwork articles which were sold locally and exported to the United States of America and Sweden. A vegetable garden at the school was maintained by staff and learners. (b) Challenges There was a need for the moratorium on non educator’s posts to be lifted; the school was paying two general workers from the School Governing Body (SGB) funds. A full time nurse was required. The occupational therapist and social worker were placed in converted teachers posts renewable annually. Additional teacher assistants are required. A standard sized sports field would enhance the quality of education. There was a need for a fully equipped skills centre. 14 FEBRUARY 2012 PAGE: 192 of 447 Two to three hectares of school property was not utilised. It would have been ideal to build a high school on the property. Further funding was required to complete the building of the multi-purpose school hall. There was a need for at least five classrooms to accommodate learners on the waiting list. 5.2.5 Silindokuhle Special School (a) Overview The school catered for deaf, blind and intellectually challenged learners. The school enrolled 168 learners of whom 90 per cent of them resided in hostels. There was a staff compliment of 19 educators with 36 support staff, eight classrooms, one kitchen, one dinning hall, two computer laboratories, one boy’s hostel, one girl’s hostel, a laundry, mini-workshop and an indoor clinic. Support staff included five teacher assistants, one Early Childhood Development (ECD) Practitioner, two deaf councilors, two administration officers, two general assistants, one clinical nurse, one housekeeper supervisor, 12 household aides, five food service aides and five laundry aides. Learners with barriers to learning could be categorised as follows: 34 blind 88 deaf 46 intellectually challenged 14 FEBRUARY 2012 PAGE: 193 of 447 Sign language training was offered to educators, support staff, parents, 20 identified schools and any interested individuals. Braille training was undertaken for educators teaching visually impaired learners. Staff development was conducted for educator and non-educator staff on educational matters, health issues and hostel issues. For the intellectually impaired, the school was aiming to develop the skills of the learners by incorporating teaching and skills training in areas such as weaving, gardening and beadwork. Learners health needs were administered by the clinical nurse by providing medication, treatment and monitoring learners’ chronic illness. The nurse also arranged transfers and accompanied learners to health specialists. Advocacy for proper health support to learners was conducted. The Department was supplying learners with groceries and vegetables on a monthly basis. The school vegetable garden was developed to supplement learners’ nutrition. It also allowed learners an opportunity for skills training. Individual and group counseling on a variety of issues, including counseling for parents and families of deaf learners was also conducted. (b) Challenges The school had only one old vehicle and needed a new one. 12 additional classrooms were needed. The school also needed an admin block, a two-roomed school clinic and a workshop. The waiting list at the school stood at 129 learners. The school did not receive any Braille papers during Annual National Assessments (ANA) and the final exams. 14 FEBRUARY 2012 PAGE: 194 of 447 5.2.6 Bukhosibetfu Special Primary School (a) Overview The school started with a enrolment of 400 learners and 12 staff members including the principal and one education specialist. Currently the figures stand at 1135 learners with 5 support staff and 5 volunteer workers for the nutrition programme. The school now had one principal, two deputy principals, 5 education specialists and 27 post level one educators. The total number of learners with barriers to learning was 164. The school was categorized as a Quintile One school. The following programmes were offered at the school: Sign language Inclusive education Nutrition programme Early Childhood Development Food vegetable garden READ programme Life skills HIV/Aids Music Where learners performed poorly the school checked the learner profile – the learner was screened to gain background information about the child and their needs. The school then identified the barrier and development of the learner. The teacher determined the level and nature of support needed for that learner and takes action planning, provisioning and monitoring. 14 FEBRUARY 2012 PAGE: 195 of 447 In 2009 the school had established a class for the deaf with three learners and seven adults. Currently there are eight learners and ten adults. Through the programme of inclusive education the school converted the old ablution facility into a library. The school also received funds from the National Lottery to construct a basketball and netball court which would also accommodate wheelchair bound learners. The principal also commended the Department for providing skills development programmes to obtain diplomas in special needs education. (b) Challenges The Learner/Teacher ratio was too large resulting in congested classrooms. The school required an extra classroom for the deaf as well as an assistant teacher. The environment was not user friendly for wheelchair users. The yard needed to be paved. The school required an administration block and a sickbay. The school also required a Skills Development Centre where learners would acquire practical skills. 6. Conclusion The delegation noted with some satisfaction that a number of advances had been made in the improvement of access and quality of education for learners with special educational needs. These included that, the Provincial Education Departments were progressively identifying mainstream schools for conversion to full-service schools, in line with White Paper 6 and the Department’s Action Plan 2014. In the majority of schools visited, the Provincial Education Departments had taken steps to upgrade the physical infrastructure to ensure environmental access for all learners. Efforts were also 14 FEBRUARY 2012 PAGE: 196 of 447 made to procure assistive devices to support learners with a range of educational needs. The Committee also observed similar improvements in Special Schools. Notwithstanding these achievements, the delegation noted the numerous challenges that still remain. These include the need for further training of teachers and greater access to professional support services, the need for skills training and certification, the late arrival of textbooks and question papers, infrastructure needs of individual schools and transport concerns. 7. Recommendations The Portfolio Committee on Basic Education, having conducted the oversight visit to the North West and Mpumalanga, and considered the issues that were highlighted, recommends the following: 7.1 The national Department of Basic Education, together with the Provincial Education Departments, should intensify teacher training in specialised areas of special needs, taking into account the varying levels of training needs of different schools. Schools such as Temoso Special School in the North West require more intensive, frequent and consultative support based on their expressed need. 7.2 The national Department of Basic Education, together with Provincial Departments of Education, should expedite and scale up the implementation of the curriculum that responds to the skills subjects offered in special schools. 7.3 Given that transport is one of the keys to access, it is critical that the Provincial Education Departments, together with the Department of Transport, make transport arrangements to ensure that learners with special needs are able to travel to and from school. Transport subsidies must be one of the components of the budget of full service and special schools. 14 FEBRUARY 2012 7.4 PAGE: 197 of 447 The Committee refers the Provincial Education Departments to the following recommendations it made previously to the Department of Basic Education: 7.4.1 That the National Department, together with the Provincial Education Departments should deliver timeously to schools sufficient Learner and Teacher Support Material, including workbooks. 7.4.2 That the National Department should make representations to ensure that Sign Language becomes an official language in order to enhance quality learning and teaching. 7.5 The Provincial Departments should progressively address the challenges facing individual schools as identified in this report. In this regard, the Committee expects a report back within three months so as to ascertain progress made. 8. Appreciation The delegation, led by Hon H Malgas MP, thanked the Office of the MECs, Members of the Provincial Legislatures, Provincial Departments of Education and the National Department of Basic Education for the support given during the oversight visit. Although the visit was arranged at very short notice, the legislatures were able to accommodate our delegation and this proved successful. Report to be considered. WEDNESDAY, 30 NOVEMBER 2011 14 FEBRUARY 2012 PAGE: 198 of 447 COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Home Affairs on an oversight visit to the North West province from 25 to 29 July 2011, dated 22 October 2011 1. INTRODUCTION 1.1. Subject This report discusses the oversight visit conducted by the Portfolio Committee on Home Affairs to the North West Province from 25-29 July 2011. 1.2. Background of the oversight visit The Portfolio Committee on Home Affairs (the department or DHA) had intended to visit Mpumalanga and North West Provinces from 26 July – 4 August 2011. As a result of the planned sitting of the National Assembly on 2 August 2011, the chairperson decided to cancel the Mpumalanga leg of the trip and focus on the North West province only. 1.2.1 Objectives of the report The objectives of the report are to: 14 FEBRUARY 2012 PAGE: 199 of 447 Report on the challenges faced by the ports of entry and the offices of DHA in the North West province; Draw conclusions from the findings and make appropriate recommendations. 1.2.2 Scope and limitations The Committee spent much of its time travelling long distances to visit the offices of the department in the province. Because of that, the delegation only received a presentation at the Mmabatho Large Office. The planned walk-about was not conducted due to time constraints. This is an office, which attends to a large number of customers. 1.2.3 Plan of development The report begins by describing the current situation in the province and the current situation in the ports of entry and DHA offices. The briefing was conducted by the acting provincial manager. Two ports of entry were visited and five public service offices of the department. 1.2.4 Delegation The following Portfolio Committee members and staff participated in the oversight visit: Members of the Portfolio Committee: 14 FEBRUARY 2012 PAGE: 200 of 447 Maunye, Ms MM (Chairperson) (ANC); Thibedi, Mr J (ANC); Mathebe, Ms DH (ANC); Gasebonwe, Ms TMA (ANC); Rwexana, Ms SP (Cope); Mbhele, Mr P (Cope); Lovemore, Mrs A (DA); Mnqasela, Mr M (DA); Makhuba, Ms HN (IFP) and McGluwa, Mr JJ (ID). Parliamentary staff: Mathonsi, Mr SE, Committee Secretary; Salmon, Mr A, Committee Researcher and Diya, Mrs N, Committee Assistant. 2 OVERSIGHT VISIT TO THE PROVINCIAL DEPARTMENT 2.1 Briefing by the Acting Provincial Manager The Acting Provincial Manager, Mr Jack Monedi, made a presentation on the state of the province. He reported that the Director-General of the Department of Home Affairs took a decision to build the capacity of all provincial departments by employing the provincial Directors for Finance and Support. This would help provinces to procure goods and services. Provinces up until now did not have the capacity to procure goods and services. The post for provincial manager was advertised. The national department took a decision that the North West, Mpumalanga and the Eastern Cape provinces should only appoint female provincial managers. For it to function at full capacity, the North West province needed a staff establishment of 1 192 posts, however only 557 had been filled, leaving 635 posts vacant. Out of the 635 vacant posts, 58 were funded posts and 577 were unfunded posts. Out of the 557 posts filled, 332 were occupied by females 14 FEBRUARY 2012 PAGE: 201 of 447 and 225 were occupied by males. The province was operating at an average of only 47% of its required capacity. The province is mostly rural and comprises of farms and many areas are reached only by mobile service units and trucks. Many children, mostly from farms did not have birth certificates because their parents themselves did not have identity documents. Some children did not have parents to assist them to apply for birth certificates. The department was addressing this problem at a policy level. The province also established local stakeholder forums in all the municipalities in order to address these and other problems as part of the DHA’s outreach programme. There were still a few people on the farms that had Transkei, Bophuthatswana, Venda and Ciskei (TBVC) identity documents and the department was also helping them to acquire new identity documents. 2.2. DHA footprint The province is divided into four municipalities; namely, Dr Kenneth Kaunda District, Bojanala District, Ngaka Modiri District and Dr Ruth Mompati District. Each district has a district manager. Within the district municipalities, there were local municipalities such as, Ratlou, Lekwa-Teemane, Mamusa, Moretele and Kgetlengrivier that did not have Home Affairs offices. The Acting Provincial Manager reported that there was a need to increase the presence of Home Affairs in Ngaka Modiri and Dr Ruth Mompati District Municipalities. Dr. Ruth Mompati and Dr Kenneth Kaunda District are developmental nodes in the province. 14 FEBRUARY 2012 PAGE: 202 of 447 Bojanala District Municipality is the largest district municipality in the province but only has four Home Affairs offices. There was a need to increase the capacity of Rustenburg and Madibeng local municipalities, which are within the Bojanala District Municipality. It was reported that Kgetlengrivier is 100% constituted by farms and it did not have an office. The province has 10 Thusong centers and six were deployed with full-time staff. Mobile units were deployed to municipalities that did not have Home Affairs offices. The province has 29 small Home Affairs offices and an additional 14 offices had been secured. The small offices have 35 full-time staff deployed. The eleven mobile units conducted 826 sites visits in the first half of 2011.Through the use of the mobile units, the provincial department managed to finalise 1 143 Late Registration Applications (LRB) and distribute 2 890 identity documents. The province has 42 health centers and the DHA has a good working relationship with the Department of Health. Fourteen health centers were equipped with computers to register births. These 14 health centers had four full-time staff deployed on a rotational basis. The North West province has nine ports of entry; namely; Bray, Makopong, Makgobistad, Ramatlabama, Skilpadshek, Swartkopfontein, Kopfontein, Derdepoort and Pilanesburg. Ramatlabama, Skilpadshek and Kopfontein are commercial ports of entry and the rest are non-commercial ports of entry. The province did not have a refugee reception office. It relied on the Gauteng office to process applications for refugee status. The asylum-seekers were only provided with transit visas at the border posts and were required to report to the nearest refugee reception office, which is in Gauteng. It was reported that foreigners in the province are mainly involved in small businesses. 14 FEBRUARY 2012 2.3 PAGE: 203 of 447 Corruption and fraud Mr Monedi indicated that the province has few corruption cases. The province had four cases of corruption of which two were finalised and two were still under investigation at the time of the oversight visit. These cases involved false birth registration, fraudulent ID issued to a Zimbabwean, stock theft using a state vehicle and a faked temporary identity certificate. 3. OVERSIGHT VISIST TO THE PORTS OF ENTRY OR BORDER POST 3.1 Oversight visit to the Ramatlabama port of entry Ramatlabama port of entry is located 25 kilometres north of Mahikeng on the border with Botswana. The border operates from 06:00 to 22:00 from Monday to Sunday. This border post performs the following functions: The management of admissions and departure; The issuing of relevant permits; The overall management of revenue collected from administrative fines; The management of illegal migration in the port of entry (law enforcement); The provision of administrative support services in the port of entry; The management of stakeholder relations at the border. The port of entry uses electronic systems to monitor migration while the counterparts in Botswana use a manual system. 14 FEBRUARY 2012 PAGE: 204 of 447 The port of entry needed a staff establishment of 74 posts for it to function at full capacity but only 32 posts were filled. Out of the 42 posts, two were funded vacant posts and 40 were unfunded vacant posts. The port of entry was able to monitor service delivery by having a suggestion box for members of the public. With regard to access to customer information, it was reported that the border post relied on the Head Office or South African Revenue Service (SARS) IT help helpdesk. This dependency on SARS created many problems when systems were down after working hours. Although SARS has an afterhours helpdesk, its IT technicians were mostly not available. This resulted in the clearance of travellers done manually and this is a high risk to the security of the country. It was indicated that the Home Affairs systems in border offices did not connect with each other and that of other departments (i.e police). This resulted in persons that had been refused entry at one port being able to enter through another entry. Another security risk was that the North West borderline does not have members of the defence force to patrol it. It was only patrolled by the South African Police Services (SAPS). This was because the risk assessment had found that the North West was a low risk province. The defence force was deployed in the high risk provinces, such as, Limpopo and Mpumalanga. Challenges at the Ramatlabama border post It was reported that the port on entry faces the following challenges: There is no shelter for customers during the rainy season or sunny weather; 14 FEBRUARY 2012 PAGE: 205 of 447 There are no chairs/benches for customers to sit on while queuing for services; There is no speed service or ATM for customers who contravened the Immigration Act and were willing to pay on the spot; There is no tourism information desk; The health officer/department are not often available to administer vaccines to the customers who do not have vaccine documents; There are no regular vaccinations of officials; There is limited family accommodation for officials and as a result some officials are compelled to travel at night to their places of residences with their own transport. This compromises their safety. There is no clinic or school to provide services to the officials who stay at the port of entry; There is shortages staff; There is no official transport to transport night shifts officials although other stakeholders at the port of entry were provided with transport; There is no glass partitioning at the service counter to eliminate risks such as spreading of contagious diseases e.g. flu, etc. The withdrawal of border concessions permits for regular travelers, such as, truck drivers cause congestion at regular counters. Another challenge was that the SARS scanner at the port of entry was not working. As a result, it was difficult to detect drugs coming in and out of South Africa. In addition, the port of entry had no weigh bridge and forklift to check the goods on trucks. 3.2 Oversight visit to the Skilpadshek border post 14 FEBRUARY 2012 PAGE: 206 of 447 Skilpadshek is one of the three commercial ports in the North West. The staff establishment of the port of entry should be: 74 for the DHA, but only 14 posts were employed; 334 for SAPS, but only 104 posts were filled and 100 for SARS, but only 44 posts were filled. At the time of the oversight visit, the Department of Public Works was in the process of building new offices to accommodate various departments - SARS, South African Police Service (SAPS) and DHA. It was reported that the construction of the new offices should had been completed in 2010 but the subcontractors who were awarded a tender were underperforming. As a result of that there was no clear indication when the construction would be completed. It was indicated that since the construction of office accommodation commenced, the number of people using the port of entry had decreased. Another cause of delay to the construction of new offices was that a certain private customs clearing agent was refusing to vacate the land which the Department of Public Works had purchased to build the new offices. This matter needed to be resolved by the Department of Public Works, the clearing agent and the court. At the time of the oversight visit SARS was operating from caravans. It also did not have scanners. It was reported that once the construction of new offices was completed, SARS would be able to use scanners. To improve security at the borderlines, it was emphasised that it was important to have the army deployed at the borderline in order to combat drug trafficking, stock theft and fake goods. Challenges at the Skilpadshek border post The main challenges at the border post were that there was no residential accommodation for officials. Officials lived at a nearby military village without their families. The military village did not have a 14 FEBRUARY 2012 PAGE: 207 of 447 reliable water supply. Residents relied on a borehole for water supply. Another challenge was that there are no schools in the area. The nearest schools are in Zeerust which is 52 km away from the port of entry. 4. OVERSIGHT VISIT TO THE OFFICES OF THE DEPARTMENT OF HOME AFFAIRS 4.1 Atamelang District Office It was reported that the staff establishment for the office was supposed to be 37 but only 23 posts had been filled. The office had six vacant funded posts and seven vacant unfunded posts. The position of the Administrative Officer was vacant and funded. Ten posts for Chief Administrative Clerks were vacant posts - five were funded and five were unfunded. One front Office Clerk post was vacant and funded. The position of the administrative clerk was also vacant. The office did not have a fingerprint taker and this post was not funded. It also did not have a switchboard operator. It did not employ any people with disabilities. The office did not have immigration services. All the immigration services were done at the Mmabatho Large Office. The office did not have a passport live capturing machine and it relied on Mmabatho Large Office for live capturing which is a considerable distance away. The office established a local stakeholder forum with 20 members. The members of the forum comprised of the municipality, government departments, non-governmental organisations (NGO) and other organisations in the area. The purpose of the stakeholder forum is draw up service delivery programmes and to address issues that might hamper service delivery. With the help of the forum, 14 FEBRUARY 2012 PAGE: 208 of 447 DHA was able to identify areas that needed to be serviced. The forum also assisted DHA to mobilise the community and provide transport when it was needed. The forum was also able to identity venues and facilities where services could be rendered. The office had a suggestion box which was checked once a week. The office also had clearly visible pictures and contact details of the office management including the Acting Provincial Manager and a champion of the province should clients require them. The office offered the following services to members of the public: birth registrations, death registrations, marriages, applications for identity documents, late registration of births, and application for travelling documents. The office generated R141 489 between January and June 2011. Between January and June 2011, the office visited 105 schools, took applications for IDs of the 105 schools visited, 26 were high schools and 79 were primary schools. The office worked with four health institutions where 729 births were registered during the reporting period between the ages of 0-31 days. The visits by the office to the health institutions were conducted once a week. The office also visited permanent service points twice a week. Despite its efforts to visit the health institutions, the office faced the challenge of not having sufficient transport to conduct outreach programmes since only three vehicles were available. The office did not have a mobile unit. The office had two cases of corrupt activities, namely, the unauthorised use of a government vehicle and failure to report to work. The cases were finalised in June 2011 and the officials were given verbal warnings. Challenges facing the office The office faced the following challenges: 14 FEBRUARY 2012 PAGE: 209 of 447 There was a shortage of staff and the office was operating at 63% capacity. The office did not have immigration services. It relied on neighbouring offices for assistance. The live capture of passport was done at the Mmabatho Large Office which is 115 kilometres away from the Atamelang Office. The capturing needed to be done 2-3 times a week. The LRB processes, duplicate cases and rectifications take far too long before they are finalised by the Head Office. Duplicate IDs were particularly problematic for clients that had to bury their deceased. Transport was a considerable challenge. The office had three vehicles and serviced far flung rural areas. The vehicles were old and very risky to drive. Another challenge faced by the office was the issue of duplicate cases. A duplicate case is when two or more individuals share one identity number. It was reported that it takes approximately two weeks for the Head Office in Pretoria to resolve these cases. It was indicated that it was even more of a challenge when a duplicate case was discovered when a death certificate had to be issued. The department resorted to issuing handwritten death certificates so that the deceased can be buried. The difficulty was that these handwritten death certificates are sometimes not accepted by the insurance companies. 4.2 Lichtenburg District Office It was reported that the office establishment was supposed to be 37 staff but only 21 posts had been filled. The office did not have a control immigration service. It had two immigration officers. Three 14 FEBRUARY 2012 PAGE: 210 of 447 immigration officer posts were vacant and unfunded. There was a vacant and funded post for an administrative officer, seven vacant unfunded and one vacant funded posts for chief administrative clerks. The office had one vacant unfunded post for a front office clerk. The fingerprint taker positions were vacant and unfunded . The office did not employ persons with disabilities. The office had a suggestion box which was checked once a week. The office also had pictures and contact details of the office management, Acting Provincial Manager and a champion for the province for clients to use to contact them where needed. The office offered the following services to members of the public: birth registrations, death registrations, marriages, applications for identity documents, late registration of births, and application for travelling documents. The office generated R462 965 between January and June 2011. Between January and June 2011, the office visited 58 schools. In the 58 schools visited, 9 were high schools, 48 were primary schools and one special school. The office worked with two health institutions where 729 births during the reporting period were registered between the ages of 0-31 days. The visits to the health institutions were conducted once a week. The office also visited permanent service points twice a week. The office, however, did not have a mobile unit. The office established a local stakeholder forum with 10 members. The members of the forum comprised of the municipality, government departments, NGOs and other organisations in the area. The office had four cases of corrupt activities, namely, late coming, complaints from clients, dereliction of duties and unplanned leave. All the cases were finalised in 2011.. 14 FEBRUARY 2012 PAGE: 211 of 447 Challenges facing the office The office faced the following challenges: There was a shortage of staff and the office was operating at 58% capacity; The office was capturing passports at Mmabatho Large office which is 85 km away; It took long to deport illegal immigrants because of the lack of transport; The office did not have enough vehicles to service far flung rural areas; As with other offices in the Province the LRB processes, duplicate cases and rectifications took long before they were finalised by the Head Office. 4.3 Itsoseng Local office The briefing at the local office mainly focused on the challenges that were facing the office. These included: The issue of the construction of a permanent office accommodation for the office was long overdue. The Department of Public Works had not started with the construction of the office. The office manager reported that they were told that the area is situated in a dolomitic area and prevented construction. They were however, later told that the area does not have dolomite. The office was operating from three park homes. This posed a big problem when it was raining as clients cannot access the office because the premises gets flooded. 14 FEBRUARY 2012 PAGE: 212 of 447 The park homes had two computers and three vehicles to service clients from 25 villages, 51 schools, and two health centres. The park homes are not accessible for people with disabilities because they have steps. The office had one toilet for staff and members of the public. The staff establishment of the office was supposed to be 35 but only 14 positions had been filled. Of the six chief clerk positions, only one was filled. Of the ten front office clerks only five had been filled; of four administrative clerks only one had been filled; the positions of fingerprint taker and switch board operator were vacant. There were 21 positions that were vacant and unfunded. The office did not have immigration officers. It did not have people with disabilities employed. The office offered the following services: birth and death registration, marriages, received identity applications, travelling documents and LRB. 4.4 Mmabatho Large Office The Mmabatho Regional office executes two core functions, namely, civic services and immigrations. Under civic services the office offered the following: travel documents, passports, birth and death registrations, marriages, identity documents, naturalisation and assistance with the updating and cleaning of the National Population Register (NPR) and management of records. Under the immigration services, the office assists clients with applications for permits, renewal of permits and change of status. 14 FEBRUARY 2012 PAGE: 213 of 447 The total staff complement of the office was 53 and one person with disability had been employed. One person had retired from the permitting section and the position was not yet filled. The office serviced 12 clinics for birth registrations and one permanent service point. The office also visited schools around Mmabatho and the mobile truck was used to visit various villages during an outreach programme. The office established a stakeholder forum comprising of traditional leaders, South African Social Security Agency (SASSA), Departments of Social Development and Education. It was reported that the office did not have cases of fraud and corruption. The office had however, detained suspected illegal foreigners, the majority coming from Botswana and Mozambique. Challenges faced by the office The office faced the following challenges: There was a shortage of transport to conduct an outreach programme; Programmes sometimes failed due to changes in leadership in the Mmabatho Regional office. This also affected projects; The unavailability of an immigration head; There was need to train immigration officers with regards to the current amendments of the Immigration and Refugees; Illegal employment of foreigners; Asylum seekers overstaying their validity permits, such as, the Section 22 permits and fraudulent extensions of these permits; 14 FEBRUARY 2012 PAGE: 214 of 447 Aiding and abetting of illegal foreigners to acquire South African identity documents and harbouring of illegal foreigners; Identify document tracking stickers were dispatched to offices but were not always received at the regional offices; and Head Office was not responding on the enquiries. The office generated R27 103 for penalties and administrative fines paid by foreigners for expired permits. Renewal of expired permits generated R22 000. It was reported that the majority of people who applied for work permits were Zimbabweans, for relative permits were Bangladeshi citizens and for study permits were Botswana citizens. 4.5 Klerksdorp Regional office The office operates from an old hotel and it occupies four floors (first floor up to fourth floor). The office was awarded a Rotary Club for Vocational Service Award and a Wesvaal Chamber of Business as the best performing government department. The Klerksdorp regional office was supposed to have a staff establishment of 68 employees but only 42 people (63%) were employed. The position of the office manager was vacant. There were nine vacant funded posts and 17 vacant unfunded posts. The office has a new queue management system and the counters provided all services of the department. Section A of the office dealt with the first identity documents issue, re-issue, temporary ID and citizenship; Section B dealt with the collection of identity documents, passports, certificates and enquiries; Section C dealt with the late registration of births, registration of births and deaths, 14 FEBRUARY 2012 PAGE: 215 of 447 amendments on births and deaths and Section D dealt with issuing of passports, temporary passports, child passports, emergency travel documents and official passports. The office has a live capture machine for passports. The office cancelled 37 identity documents that were obtained through misrepresentation or in a corrupt manner. Some of these identity documents were used by six beneficiaries to acquire RDP houses fraudulently. These houses were reallocated to the deserving South Africans. The office also assisted SASSA to identity approximately 700 beneficiaries who had registered for child support grants, either through fictitious children or children belonging to another mother. The office established a stakeholder forum and it helped the office to mobilise communities. It also visited a permanent service point at Tigane. The office was also servicing five hospitals on a daily basis and the person responsible for servicing the hospitals was permanently employed on 11 July 2011. Challenges faced by the office The office faced the following challenges: Shortage of staff was hampering service delivery; Up until just before the oversight visit there were no permanent appointments for service points and hospitals. Staff was still being taken from the office to service these points. This meant that the office had to face the challenge of long queues; The holding cells for illegal immigrants did not have proper burglar doors; 14 FEBRUARY 2012 PAGE: 216 of 447 The office has three vehicles and the immigration section needed a sedan since all the vans were used to transport illegal immigrants. The vans would often breakdown; South Africans colluding with illegal foreigners to access enabling documents; and Bogus marriages. 5. RECOMMENDATIONS Based on the findings of the oversight visit, the Committee recommends the following: 5.1 The department should fill all vacant posts. Vacant posts should be filled, especially starting with the vacant funded posts in order to speed up service delivery. There are many vacant and funded posts that must be filled as a matter of urgency. Suitable accommodation and favourable office conditions would improve employability. Furthermore, completion of the office accommodation at Skilpadshek port of entry would require the department to employ more staff. 5.2 The government should deploy the South African National Defence Force (SANDF) along the North West borderline with immediate effect. The deployment of SANDF would curb the inflow of illegal foreigners into South Africa, and prevent drug trafficking and fake goods. 5.3 The department should provide transport in all of its offices and the ports of entry. 14 FEBRUARY 2012 PAGE: 217 of 447 The North West province is mostly rural and in order to reach rural areas the department implemented an outreach programme. It is therefore important for the department to increase the number of vehicles (4X4 vehicles) for the offices at the ports of entry to enable officials to reach most rural areas. The officials who did not have accommodation at the ports of entry should be provided with transport, especially those who work night or late shifts. 5.4 The department should work with SARS to ensure that the scanner at the Ramatlabama and Skilpadshek border posts are installed. This was not the first time that the Committee had found that the scanners were not working at ports of entry. DHA, through BCOCC should make sure that scanners are working at all ports of entry. SARS officials should also be provided with handheld scanners or sniffer dogs to check the trucks. 5.5 The department should employ people with disabilities and the offices should be accessible to people with disabilities. The Committee was informed that the department in the province had tried to contact the office of the premier in order to get CVs or encourage people with disabilities to apply. It was reported that people with disabilities did not meet the requirements. The Committee is however of the opinion that finger print takers and switchboard operator positions are at the lower level which did not require post matriculation qualification. 5.6 The Department should provide passport live capturing machines in all offices of the department. 14 FEBRUARY 2012 PAGE: 218 of 447 The offices should be provided with live capture machines so that passports could be issued within the turnaround times set by the department. 5.7 The department should work with the Department of Social Development to provide counselling to locals who married foreigners. The department should be encouraged to work with the Department of Social Development to provide social workers to counsel South Africans who are about to marry foreigners, to assess the possibility of abuse of State services. 5.8 The department should address the issue of duplicate identity numbers as matter of urgency Duplicate cases should be addressed as a matter of urgency. Because this is a national problem, the national department should run campaigns to help people check if their identity numbers had not been duplicated. This would ensure that people know their status when needed. 5.9 The department should address issues at Itsoseng, Ganyisa and Taung local offices. Although the Committee did not visit Ganyisa and Taung offices, the Committee recommends that the issue of office accommodation in these three areas should be addressed as soon as possible. It seemed that the delay at the Itsoseng office was with the Department of Public Works. The Ministers or the Director - Generals of the two departments should meet to address office accommodation of the department in the North West. 14 FEBRUARY 2012 5.10 PAGE: 219 of 447 The department should address issues and complaints raised by the members of the public in the suggestion box register. The issues raised through the suggestion boxes and complaints register should be addressed by the department. The public mostly raised the issue of shortage of staff which resulted in long queues in big offices and processing of permits in the regional offices. Report to be considered. THURSDAY, 1 DECEMBER 2011 TABLINGS National Assembly 1. The Speaker (a) Report of the Public Service Commission on the Assessment of Recruitment and Selection Practices in respect of Section 57 Managers and Municipal Managers – March 2011 [RP 64-2011]. COMMITTEE REPORTS National Assembly 14 FEBRUARY 2012 PAGE: 220 of 447 1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL REPORT 2010/11 OF THE NATIONAL SKILLS AUTHORITY (NSA) AND THE NATIONAL SKILLS FUND (NSF) DATED 30 NOVEMBER 2011 The Portfolio Committee on Higher Education and Training, having considered the Annual Reports 2010/11 of the National Skills Authority (NSA) and National Skills Fund (NSF) reports as follows: 1. Introduction The Portfolio Committee on Higher Education and Training considered the Annual Report 2010/11 of NSA and NSF on 02 November 2011. This report gives a brief summary of the presentations made by the NSA and NSF to the Committee, focusing mainly on the 2010/11 Annual Financial Performance and an overview of challenges and successes of the year under review. The report also provides the Committee’s observations and recommendations. The Portfolio Committee on Higher Education & Training was represented by: Adv I Malale, Chairperson (ANC), Ms N Gina (ANC), Mr S Makhubele (ANC), Mr C Moni (ANC), Mr S Radebe (ANC), Ms W Nelson (ANC), Dr J Kloppers-Lourens (DA), Mr A van der Westhuizen (DA), Mr P Dexter (COPE) and Mr A Mpontshane (IFP). Department of Higher Education and Training Mr G Qonde: Director-General Mr T Tredoux: Chief Financial Officer Ms P Moleke: Deputy Director-General, Skills Development Mr F Toefy: Chief Director, Monitoring and Evaluation 14 FEBRUARY 2012 PAGE: 221 of 447 Mr O Shelembe: Chief Director, Finance Ms A Poolman: Director, Financial Services National Skills Authority Mr E Majadibodu: Chairperson Mr T Mashangoane: Secretariat National Skills Fund Mr M Macikama: Chief Executive Officer 2. Summary of presentations 2.1 National Skills Authority Mr E Majadibodu: Chairperson led the presentation which highlighted the following key issues: The year 2010/11 was practically a year of managing the implications of the function shift as well as concretizing the new system in the Department. Fortunately, the NSA had already undertaken a strategic workshop to engage the Minister and the DG with the purpose of realigning the NSA. The core function of the NSA was to advise the Minister on matters related to skills development. The NSA was made up of a board comprising social partners and there was a secretariat located in the Department who supported the board. The year 2010 was packed with urgent skills development activities that were crucial to the establishment of the new post school landscape. The NSA advised the Minister on the following issues; capping on administration from 2% up to 10% in the NSF, SETA landscape, constitution and extension of their lifespan for one year, 14 FEBRUARY 2012 PAGE: 222 of 447 consultation workshops on the National Skills Development Strategy (NSDS III), review of polices and legislation. NSA Budget: The NSA received a budget allocation from DHET through voted funds. In the main these funds were for the administration activities such as personnel expenses for Secretariat staff and logistics. The NSA Skills Conference was funded by the NSF. Discussion to make standing annual allocation to the NSA was underway and awaiting finalisation of the repositioning project. NSA KEY Areas of Advice 2011/12: Review skills development legislative framework to support integration of education and training, develop a framework on the mobilization of business, government, community and labour to take full ownership of the NSDS III, strengthen the monitoring and evaluation function of the NSDS III. 2.2 National Skills Fund Mr M Macikama: CEO led the presentation which highlighted the following key issues: The annual performance of the NSF for the year under review was incorporated in the Department’s Annual Report since the entity was not yet listed as separate. A total number of 6,979 bursaries were awarded for the period under review to support studies in critical skills through Career Wise and the National Student Financial Aid Scheme (NSFAS). A total of 856 post graduate bursaries were also awarded in partnership with the National Research Foundation (NRF). The scarce skills learning programme benefited 4,399 people through learnerships and internships. The scarce skills artisan programme benefited 5,152 people. The Training Layoff Scheme benefited 520 workers. The NSF continues monitoring disbursement made through ongoing site visit to all projects. 14 FEBRUARY 2012 PAGE: 223 of 447 A total of 333 Community Based Organisations (CBO’s) benefitted from various interventions. An actual total of 3,728 beneficiaries participated in the programmes, at a cost of 19, 6 million. Targets were not met in delivering new venture projects for young people as a result of the impending NSDS III. The delay in the launch of the NSDS III necessitated postponement of provides capacity building grants for FET colleges to improve skills development to benefit young people. A total budget of R99.4 million was approved for the Career Advisory Services in partnership with the South African Qualifications Authority (SAQA). Financial Report: The total revenue of the NSF for the year under review was R2 billion while the expenditure was R633 million leaving a net surplus of R1.4 billion. The net total assets of the NSF were R6.6 billion in total. Auditor General’s Report: The NSF received an unqualified audit opinion for the year under review. Irregular expenditure of R48 million was incurred. The NSF was not yet listed as a public entity and its budget was underspent. The NSF completed an action plan regarding audit findings which included matters identified during the audit that resulted in audit queries. 3. Committee Observations 3.1 The Committee was concerned with the fact that the NSA was not yet listed as a separate public entity that receives a separate budget. It was noted that the NSA should be independent from the Department to provide efficient advice to the Minister. 3.2 The Committee was concerned with the over representation of government officials in the board of the NSA. It was noted that labour market stakeholders should be provided with sufficient platform on the NSA board to discuss the skills needs of the sector. 14 FEBRUARY 2012 PAGE: 224 of 447 3.3 The NSA was requested to ensure that resolutions / recommendations of the Skills Summit should be implemented before another conference is held. 3.4 The NSA was requested to spread its visibility to ensure that the public may be made aware of its core functions and mandate. 3.5 The Committee was concerned with the secondment of a private sector official to the NSF since the remuneration of this official was classified as irregular expenditure by the AG. 3.6 It was noted with concern that the targets of the NSF were too low and easily achievable. 3.7 The Committee was extremely concerned with the under-spending of the NSF funds since the country was lagging behind in skills development. 3.8 The Committee requested a breakdown of provincial allocation for NSF projects. 4. Recommendations The Committee recommended the following: 4.1 National Skills Authority The NSA should improve its capacity in order to operate independently from the Department and receive its own allocation of funds. The NSA should advise the Minister on the implementation of the skills audit for all sectors of the economy to identify gaps and shortages. The NSA should improve its visibility so that other relevant stakeholders or communities can become aware of its mandate. 4.2 National Skills Fund 14 FEBRUARY 2012 PAGE: 225 of 447 The NSF should improve its capacity and management of financial activities to address the material underspending of its budget. The targets of the NSF should be improved and quantified articulately so that committed funds may be efficiently utilised. The Department should fast-track the process of listing the NSF as a Schedule 3A public entity. The NSF should ensure that its reported indicators are consistent with planned strategic objectives to address areas raised by the AG on predetermined objectives. The R1.25 billion capacity building grants for FET colleges should be utilised to facilitate skills development initiatives. There is a need for a special project focusing on the training of a new generation of academics and FET college lecturers and the NSF should commit funds to this project. Report to be considered. 2. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL REPORT 2010/11 OF THE SOUTH AFRICAN QUALIFICATIONS AUTHORITY (SAQA) AND COUNCIL ON HIGHER EDUCATION (CHE) DATED 30 NOVEMBER 2011 The Portfolio Committee on Higher Education and Training, having considered the Annual Reports 2010/11 of the South African Qualifications Authority (SAQA) and the Council on Higher Education (CHE), reports as follows: 1. Introduction 14 FEBRUARY 2012 PAGE: 226 of 447 The Portfolio Committee on Higher Education and Training considered the Annual Report 2010/11 of SAQA and CHE on 26 October 2011. This report gives a brief summary of the presentations made by SAQA and CHE to the Committee, focusing mainly on the 2010/11 Annual Financial Performance and an overview of challenges and successes of the year under review. The report also provides the Committee’s observations and recommendations. The Portfolio Committee on Higher Education & Training was represented by: Ms Gina (ANC), Mr S Makhubele (ANC), Mr C Moni (ANC), Mr S Radebe (ANC), Ms W Nelson (ANC), Dr J Kloppers-Lourens (DA), Mr A van der Westhuizen (DA) and Mr A Mpontshane (IFP). Apologies: Adv I Malale, Chairperson (ANC), Ms N Magazi (ANC) and Mr P Dexter (COPE). South African Qualifications Authority Dr V Penxa: Chairperson Mr S Isaacs: Chief Executive Officer Mr J Samuels: Deputy Executive Officer Mr M Albertyn: Chief Financial Officer Council on Higher Education Prof L Moja: Council Member Prof M Fourie-Malherbe: Council Member Mr A Essop: Chief Executive Officer Department of Higher Education and Training Mr T Tredoux: Chief Financial Officer Ms L Tlou: Director of National Qualifications Framework 14 FEBRUARY 2012 PAGE: 227 of 447 Mr P Whittle: Acting Director 2. Summary of presentations 2.1 South African Qualifications Authority Mr S Isaacs, Chief Executive Officer (CEO) of SAQA, led the presentation which highlighted the following key issues: The CEO informed the Committee that he was resigning and the Deputy Executive Officer would take over. The essential role of SAQA was the management and implementation of the National Qualifications Framework (NQF). In doing so, SAQA developed policies and criteria to recognise professional bodies and drafted level descriptors. The Quality Council on Trades and Occupation (QCTO) was assisted by SAQA through standard settings, quality assurance and the assignment of the Deputy Executive Officer and six staff members. The Career Advice Service was established in partnership with 9 SABC Radio stations to assist learners in rural areas. SAQA hosted the National Recognition of Prior Learning (NRPL) Conference in February 2011. A Ministerial Task Team on RPL was launched which would report to the Minister on its work. Registration of Qualifications: SAQA registered 144 new qualifications and 795 new unit standards, approved 47 applications by Education and Training Qualifications Authorities (ETQAs) resulting in 95 qualifications being allocated to them for quality assurance. In terms of foreign qualifications, 24 665 qualifications were received of which 305 were from Zimbabwe. 14 FEBRUARY 2012 PAGE: 228 of 447 Governance: On 1 January 2011 the 5TH SAQA board was appointed and met for the first time on 16 February 2011. Financial Performance: SAQA achieved its 14th unqualified audit report from the AuditorGeneral (AG) with no emphasis raised on any matters. Funds were managed responsibly, efficiently and effectively. SAQA spent 83% of its revised budget for 2010/11. Under-spending amounted to R14.5 million (16.26%) for the year under review. Staffing: Staffing complement was increased by 24% (27 positions). Staff turnover year to date was 6%. SAQA appointed 14 persons for the current financial year. Currently 85% of positions were filled. The filling of 10% would be finalised by December 2011, and the remainder by February 2012. SAQA also appointed five Learners in Business Administration (NQF Level 4) and 2 interns. Appointment of further three was underway. Way forward: SAQA aims to provide leadership in the transition from the SAQA Act to the NQF Act, and future operations. SAQA also aims to enhance research and development capacity and credibility, to direct and steer policy. Work towards a system of recognised, quality, articulated learning and career paths which removes systematic barriers to access and progression. 2.2 Council on Higher Education Mr A Essop: CEO led the presentation which highlighted the following key issues: Overview: The CHE appointed a new CEO and two other senior management members in the year under review for organizational stability. Organisational structure and functions were reviewed to expand the mandate of the Council. A key focus area for the CHE in the year under review was to address weaknesses, which adversely impact on operational efficiency and effectiveness. In this regard, the CHE revised 14 FEBRUARY 2012 PAGE: 229 of 447 human resource policies, benchmarked the salary structure and completed a comprehensive compliance audit. The two key challenges of the CHE were a lack of systematic monitoring, in particular, policy impact studies and quality assurance was not used as a steering tool to complement planning and funding. Advice and Monitoring: The CHE received a request for advice at the end of March 2011 on the establishment of a Central Applications Office, the establishment of a Community Service Scheme for Graduates and the role of the CHE in strengthening teaching and learning. The CHE facilitated a Consultative Workshop on the establishment of a National Stakeholders Forum. The State of Higher Education Indicator project was initiated in January 2010. Research projects done by the CHE included: Survey of Student Engagement, Effectiveness of the LLB Degree and State of Private Higher Education. Publications: Publications by the CHE included: Access and Throughput in SA Higher Education, Teaching and Learning beyond Formal Access and Report on National Review of Academic and Professional Programmes in Education. Institutional Audits: The first cycle of Institutional Audit was completed. The University of KwaZulu-Natal Audit Report was withdrawn and the university would be audited in the second cycle starting in 2012 which will also focus on teaching and learning. Programme Accreditation: 248 new programmes were assessed, 130 private provider programmes evaluated for re-accreditation. Corporate Service: Internal and external audit identified gaps and weaknesses in the application and implementation of systems, policies and procedures in finances, supply chain and human resource. An action plan was developed to address findings, monitored by the Executive Committee and Audit Committee. 14 FEBRUARY 2012 PAGE: 230 of 447 Financial Statement: The CHE received an unqualified audit from the AG with three emphases raised: Irregular expenditure of R6 million on building renovations undertaken in the past two financial years, fruitless and wasteful expenditure of R5 million on tax penalties, and late and incorrect submission of financial statements. The CHE had a total income of R39 million and spent R36 million. 3. Committee Observations a) SAQA 3.1 SAQA was commended for receiving a 14th unqualified audit opinion with no matters of emphasis. The outgoing CEO Mr S Isaacs was commended for his contribution to the success of SAQA over the years. 3.2 The Committee requested SAQA to reach out to people in rural areas so that they may access its services. The increase in the number of unscrupulous colleges was condemned by the Committee since many young people fall victim to these illegal institutions. SAQA was requested to expand its awareness programme on illegal institutions. 3.3 It was noted with concern that SAQA approved the Doctorate of the former Vice-Chancellor of Tshwane University (TUT) and revoked it later on. The Committee requested that such action should not be repeated and action be taken against transgressors for the credibility of the institution. 3.4 SAQA was requested to expand the NQF so that Southern African Democratic Countries (SADC) can also register their qualifications on the system. 14 FEBRUARY 2012 PAGE: 231 of 447 3.5 It emerged that there were two cases of fraud reported by SAQA in the year under review although there were no material losses indicated. 3.6 The Committee was extremely concerned with the under-spending of R14 million although there were vacant posts. SAQA was requested to urgently fill the remaining vacant posts before the end of the year and recruit people with disabilities in the process. 3.7 The Committee commended SAQA for the establishment of the RPL Task Team which would report to the Minister on its work to improve the RPL. b) CHE 3.8 The CHE was commended for receiving an unqualified audit opinion. However, it was requested to address the issues raised by the AG in its financial performance. 3.9 It emerged that the Institutional Audit Report of the University of KwaZulu-Natal (UKZN) was withdrawn due to interference by the Chairperson of the Audit Committee in the audit process. The Committee requested that the UKZN be the first institution to be audited in the second cycle in 2012. 3.10 The CHE was requested to provide advice to the Minister on how to improve the curriculum of the previously disadvantaged institutions to attract and retain competent lecturers. 3.11 The Committee was concerned that the CHE spent a lot of money on publication of a report that was later withdrawn. 14 FEBRUARY 2012 PAGE: 232 of 447 3.12 It was noted that the CHE should obtain the data of Private Higher Education Institutions as they were also part of the post school education system. 3.13 The Committee was concerned that students had to pay an application fee for submitting their application forms to the Central Applications Office (CAO) although most students from rural areas were poor. 4. Conclusion The Annual Financial Performance for 2010/11 of SAQA reflected good financial management accompanied by compliance to regulations of the Public Finance Management Act (PFMA) although that does mean effective service delivery. Good leadership, governance and strong internal audit and risk committees were partly responsible for SAQA’s 14th unqualified audit opinion. Funding remained a serious challenge of the institution in expanding its mandate and visibility to remote areas. With regard to the CHE, the Council continued with its core function of providing advice to the Minister on key issues in higher education and training. However, the irregular and wasteful expenditure noted by the AG was attributed mainly to the inability of the previous external private audit firms who could not interpret procurement policies of a public entity correctly. 5. Recommendations The following recommendations were made: SAQA should increase its awareness on illegal colleges. The outstanding vacant funded posts at SAQA should be filled before the end of the year. SAQA should prioritise the recruitment of people with disabilities. 14 FEBRUARY 2012 PAGE: 233 of 447 A standard NQF for the SADC region should be established. The CHE should address the issues raised by the AG in its financial performance. Report to be considered MONDAY, 5 DECEMBER 2011 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Assent by President in respect of Bills (1) Science and Technology Laws Amendment Bill [B 5B – 2011] – Act No 16 of 2011 (assented to and signed by President on 2 December 2011). (2) Protection from Harassment Bill [B 1B – 2010] – Act No 17 of 2011 (assented to and signed by President on 2 December 2011). (3) Military Veterans Bill [B 1B – 2011] – Act No 18 of 2011 (assented to and signed by President on 2 December 2011). 2. Draft Bills submitted in terms of Joint Rule 159 14 FEBRUARY 2012 (1) PAGE: 234 of 447 Defence Amendment Bill, submitted by the Minister of Defence and Military Veterans. Referred to the Portfolio Committee on Defence and Military Veterans and the Select Committee on Security and Constitutional Development. National Assembly The Speaker 1. Introduction of Bill (1) The Minister of Defence and Military Veterans (a) Defence Amendment Bill [B 26 – 2011] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 34727 of 2 November 2011.] Introduction and referral to the Portfolio Committee on Defence and Military Veterans 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 14 FEBRUARY 2012 PAGE: 235 of 447 National Assembly and National Council of Provinces 1. The Minister of Justice and Constitutional Development (a) Proclamation No R.58 published in Government Gazette No 34677 dated 12 October 2011: Referral of matters to existing special investigating unit and special tribunal: Kopanong Local Municipality, in terms of the Special Investigating Units and Special Tribunals, 1996 (Act No 74 of 1996). (b) Proclamation No R.59 published in Government Gazette No 34713 dated 28 October 2011: Commencement of section 1 of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008): Highveld Ridge. National Assembly 1. The Speaker (a) South African Human Rights Commission: 7th Report on Economic and Social Rights – Millennium Development Goals and the Progressive Realisation of Economic and Social Rights in South Africa (2006-2009), tabled in accordance with section 184 of the Constitution, 1996. Referred to the Portfolio Committee on Agriculture, Forestry and Fisheries, Portfolio Committee on Basic Education, Portfolio Committee on Water and Environmental Affairs, Portfolio Committee on Human Settlements, Portfolio Committee on Energy, Portfolio Committee on Mineral Resources, Portfolio Committee on Cooperative 14 FEBRUARY 2012 PAGE: 236 of 447 Governance and Traditional Affairs, Portfolio Committee on Rural Development and Land Reform, Portfolio Committee on Health and Portfolio Committee on Social Development for consideration. TUESDAY, 6 DECEMBER 2011 TABLINGS National Assembly and National Council of Provinces 1. The Minister of Water and Environmental Affairs (a) Report and Financial Statements of Rand Water 2010-2011, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 20102011. (b) Report and Financial Statements of Overberg Water 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 Amatola Water for 2010-2011, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-2011. 14 FEBRUARY 2012 (d) PAGE: 237 of 447 Report and Financial Statements of Umgeni Water for 2010-2011, including the Report of the Auditor-General on the Financial Statements and Performance Information for 20102011. (e) Report and Financial Statements of Pelladrift Water Board for 2010-2011, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-2011. National Assembly 1. The Speaker (a) Report of the Public Service Commission (PSC) on the Trend Analysis on Complaints Lodged with the Public Service Commission: 2005/2006 – 2009/2010 Financial Years – March 2011 [RP 65-2011]. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Police on the Annual Report 2010/11 of the Civilian Secretariat for Police, dated 30 November 2011. The Portfolio Committee on Police reports as follows: 1. INTRODUCTION 14 FEBRUARY 2012 PAGE: 238 of 447 The Secretariat derives its mandate from section 208 of the Constitution, (Act 106 of 1996) which states that a civilian secretariat for the police must be established by national legislation to function under the direction of the Cabinet member responsible for policing. In terms of the Civilian Secretariat for Police Service Act No. 2 of 2011 the Secretariat will become a designated department, with the Secretary of Police as the Accounting Officer. In respect of the 2010/11 financial year, however, the Secretariat was still functioning as a cost centre under the Administration Programme (Programme 1) of SAPS. 2. STRATEGIC OBJECTIVES 2010/11 The following key objectives were identified by the Secretariat for 2010/11: To provide quality, timeous evidence based strategic research and policy advice to the Minister of Police. 3. To play an activist and interventionist role with regard to civilian oversight of the police. To develop and contribute to the global view on police practices and methodologies. To develop and build strategic partnerships. To strengthen dialogue and relationships on safety and crime prevention. To initiate policy driven legislation on policing and security matters. To perform any other functions as may be determined by the Minister of Police. PROGRAMMES AND ACTIVITIES FOR 2010/11 14 FEBRUARY 2012 PAGE: 239 of 447 The following were some of the key activities of the Secretariat for 2010/11. It should be noted that the 2010/11 Annual Plan of the Secretariat did not contain well-defined targets and indicators for measuring performance, however in the reporting of the Secretariat on performance as contained in the 2010/11 Annual Plan of the SAPS, an attempt was made to address some of the reported shortcomings. 3.1. Office of the Secretary Selective key deliverables and achievements during 2010/11 included: 3.1.1 Achievements Development and finalisation of the Civilian Secretariat Act. The organisational structure was finalised by the Department of Public Service and Administration on 31 March 2011. Monthly expenditure reports for units were implemented from 1 January 2011. A total of 25 proactive and reactive reports were submitted to the Minister. Meetings were held with provinces to ensure alignment of provinces with national positions. Two of the three Bills were prepared and submitted to Parliament. These were the Civilian Secretariat for Police Service Bill and the Independent Complaints Directorate Bill. A task team was established to address the implementation of the new Acts and the terms of reference for the proposed ICD and Secretariat Forum. Three special projects were completed including the Central Firearms Register assessment, the Forensic Science study of international best practice and the Firearm Amnesty Report. A communication plan on the release of the crime statistics has been developed. 3.1.2 Challenges 14 FEBRUARY 2012 PAGE: 240 of 447 Under spending of the budget of 10%. The Private Security Industry Regulatory Authority (PSIRA) Bill was not submitted and will now be managed by PSIRA Neither the Firearms Control Act (FCA) regulations nor the Private Security training regulations were promulgated. The FCA regulations were drafted and the PSIRA summary of comments on the training regulations has been submitted to PSIRA for finalisation. 3.2 Chief Directorate: Policy and Research Selective key deliverables and achievements during 2010/11 included: 3.2.1 Achievements Draft policy on the Metro Police was submitted to the Minister. Draft policy on PSIRA was submitted to the Minister and to PSIRA. A policy on Community Safety Forums was submitted to the JCPS cluster and an implementation plan developed. The findings of the Sector Policing report have been incorporated into the White Paper. Terms of reference for the Victim Survey were developed and work was undertaken with STATS-SA to develop a questionnaire to be used in the Survey. A resources centre has been established. Functional research reference groups have been established and three of the four scheduled meetings were held. 14 FEBRUARY 2012 PAGE: 241 of 447 Partnership projects and reports with SAPS included: Reservist policy (incomplete); Implementation of Child Justice Act and development of National instructions; DPCI draft policy developed and is now being adapted to deal with the Glennister Judgement; establishment of joint working teams to work on the White Paper; and Crime statistics review process. Partnership projects with other organisations included: cash in transit best practice; metro police single service policy; pilot assessment of Community Safety Forum, best international practice on recruitment; and review of policing boundaries. 3.2.2 Challenges Postponement of the State of Policing report in order to accommodate the White Paper review. The research document on Resource Allocation was delayed due to lack of access to the SAPS performance chart. 3.3 Chief Directorate: Monitoring and Evaluation The Directorate only became fully functional in January 2011 due to initial non-performance by the Chief Director of the Directorate, who was subsequently replaced. Selective key deliverables and achievements during 2010/11 included: 3.3.1 Achievements A national monitoring tool was developed and piloted at 19 police stations. 14 FEBRUARY 2012 PAGE: 242 of 447 Monitoring of the implementation of ICD recommendations by the police only began in January 2011. A joint task team to this effect has been established. 224 complaints were dealt with by the Secretariat. A Monitoring and Evaluation reference group was established to serve in an advisory capacity. Terms of reference are still being established. A separate reference group to focus on the monitoring of the Domestic Violence Act as well as implementation of the Child Justice and Sexual Offences Acts was also established. 3.3.2 Challenges The database to support this tool was not developed. Monitoring of performance of the police against the performance chart has been hampered by lack of access to the performance chart. 3.4 Chief Directorate: Partnerships Selective key deliverables and achievements during 2010/11 included: 3.4.1 Achievements Six community outreach programmes were established. A partnership forum was established with provincial structures. 3.4.2 Challenges 14 FEBRUARY 2012 PAGE: 243 of 447 Only one of four targeted memoranda of understanding were finalised- with Business Against Crime SA (BACSA). 3.5 Chief Directorate: Support Services Selective key deliverables and achievements during 2010/11 included: 3.5.1 Achievements In close co-operation with the Department of Public Service and Administration (DPSA) an internal task team was established managing the restructuring process in preparation for the Secretariat becoming a designated department in terms of the Civilian Secretariat for Police Act No.2 of 2011. The work-study for the proposed structure was to have been submitted to the Minister for approval in June 2011 after which the filling of key posts was to commence. The Minister has approved this and the Minister of DPSA is waiting for a sign off and the Secretariat intends appointing from January 2012 More than 50 new posts were created and existing staff were placed in appropriate posts. The appointment of staff in the HR sub-component has had a positive impact on service delivery in this environment. A performance management system with career-pathing and pay progression was put in place with the assistance of a consultant. The Secretary for Police post was filled on 01 July 2010 on a five year contract. Critical Senior Management posts were created and filled from 01 January 2010. All vacant posts, except for one administrative post, were filled. 14 FEBRUARY 2012 PAGE: 244 of 447 The Employee Wellness, Equity, Bursary, Internship, Performance Management, and Reward and Incentives policies were developed. The Workplace Skills Plan for the 2010/11 financial year and quarterly reports were submitted to PESETA. A report on all Performance Agreements for SMS members was submitted to the Department of Public Service and Administration. A report was submitted to the Public Service Commission regarding formal disputes for 2010/11. In its presentation the Civilian Secretariat for Police highlighted the following: To ensure adequate capacity for the Secretariat pending the approved organizational structure by the Minister and the Department of Public Service and Administration (DPSA), permission was obtained from the Minister to create 11 new posts. The new structure is expected to have 53-110 posts, the structure will be in place for 18 months and then review. Re-organisation of the Secretariat – the implementation plan and the organisational structure has been approved by the Minister. Providing leadership and direction – a five-year Strategic Plan and Annual Performance Plan have been developed and submitted to the Committee. Workshops were held with all senior management staff regarding performance agreements. Relationship with ICD – A Task Team was established between the Secretariat and the Independent Complaints Directorate (ICD) to address the implications of the new Acts and the terms of reference of this forum. 14 FEBRUARY 2012 PAGE: 245 of 447 The Civilian Secretariat Bill would become an Act in December 2011 and the Regulations would be ready in February 2012. The Secretariat and the ICD had set up a task team that would identify the weaknesses in SAPS in implementing ICD recommendations. The policy on reservists had been finalized and forwarded to the Minister. The policy on Community Safety Forums has been approved by the JCPS Cluster and would be rolled out by the end of the year. Four meetings were held and briefings conducted with all Heads of Division (HOD) and provinces on Civilian Secretariat and ICD legislation Four special meetings were held with provinces and preliminary sector indicators were developed and submitted to Treasury Four special meetings were held to align structures at provincial level with the Civilian Secretariat for Police. Provincial base structure was drafted for finalization with MECs. Provincial forums will be established once all provinces have Secretariats 3.6 FINANCIAL PERFORMANCE Budget item Budget Actual Actual presented to Budget Expenditure Portfolio received Committee from SAPS February 2010 Over/Under spend 14 FEBRUARY 2012 Operational R8 066 490 PAGE: 246 of 447 R11 281 000 R6 982 000 Budget Personnel R4 299 000 R13 250 000 R14 000 000 R15 824 000 Budget Total Under expenditure of Over expenditure of R1 824 000 (13%) R21 327 490 R25 281 000 R22 806 000 R2, 475 000 (10%) (90%) Monthly financial reports were submitted to Senior Management Meetings. Past gross underexpenditure was substantially reduced. Public Finance Management Act (PFMA) compliance was ensured. Cost cutting measures were also introduced particularly regarding travel and catering. Compliance with supply chain policies has been improved and PFMA compliance adhered to. Under-spending in 2010/11 (20.16%) was lower compared to 2009/10 (22.71%). The reasons for the under spending of R4,299 million: R1 million was set aside for National Victim Survey. However, this survey was undertaken by STATS-SA as agreed by the JCPS Cluster. R3 million was initially budgeted for the implementation of the Monitoring and Evaluation data base, however after consultation with SITA it was agreed that SITA would develop the database in-house and not put this database on tender. The costs to SITA for development of the database is now included in the 2011/12 and 2012/13 financial years. The under spending (less the above two items) was R299 000 (which was 3% of the operational budget and 1,2% of the total budget). 14 FEBRUARY 2012 PAGE: 247 of 447 The reasons for the overspend in personnel of R1,824 million: This overspending was as a result of posts that were filled in addition to the fixed establishment during the year. 4. ISSUES RAISED BY THE PORTFOLIO COMMITTEE ON POLICE Issues and concerns discussed at the hearing with the Civilian Secretariat included: Reporting issues: The SAPS Annual Report 2010/11 was not sufficiently clear on the work of the Secretariat. The Secretariat’s presentation was not clear on the targets that it had achieved during the 2010/11 financial year. If clear targets are not set, this will have an impact on the work of the Secretariat and monitoring by the Committee. Performance issues: The Committee was not pleased about the speed at which it receives bills. Timeframes provided by the Secretariat for the submission of Bills to the Committee have not been adhered to. Financial issues: 14 FEBRUARY 2012 PAGE: 248 of 447 A major shortcoming in the SAPS 2010/11 Annual Report is the lack of reporting on financial performance of the Secretariat. The Committee was concerned about the under-spending for 2010/11. Budget allocation and financial control: No indication was given in the SAPS 2010/11 Annual Report of the amount allocated to the Secretariat. The Secretariat mentioned that its final adjusted allocation was R25 million. It had spent R22.806 million or 91.2% of this amount. The Committee felt that the fact that the Secretariat was not managing its own budget made it unable to take decisions and that had an impact on service delivery. 5. RECOMMENDATIONS The following key recommendations were made: Reporting: Future SAPS annual reports (at least until the Secretariat becomes a designated department) must provide clear information and details of the extent to which the performance targets for the Secretariat were met during the year. The annual reports should also clearly stipulate the budget and expenditure of the Secretariat, as well as more detailed information on financial performance. Performance: 14 FEBRUARY 2012 PAGE: 249 of 447 The Secretariat must ensure that the deadlines that it provides to the Committee for submission of Bills are realistic and attainable, and based on a proper planning process. In addition, the Committee would follow up with SAPS on the R8.7 million that the SAPS said were paid to members of the Secretariat for performance bonuses during 2010/11which does not correlate with the information provided by the Secretariat. 6. CONCLUSION The Committee supports the work the Secretariat and expects a detailed report on the activities of the Secretariat on the 2011/12 annual report including financial information. Report to be considered. WEDNESDAY, 7 DECEMBER 2011 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Assent by President in respect of Bill 14 FEBRUARY 2012 (1) PAGE: 250 of 447 Division of Revenue Amendment Bill [B 17 – 2011] – Act No 20 of 2011 (assented to and signed by President on 5 December 2011). 2. Bills passed by Houses – to be submitted to President for assent (1) Bills passed by National Council of Provinces on 7 December 2011: (a) Intellectual Property Laws Amendment Bill [B 8B – 2010] (National Assembly – sec 75). (b) Tax Administration Bill [B 11B – 2011] (National Assembly – sec 75). (c) Skills Development Amendment Bill [B 16B – 2011 (Reprint)] (National Assembly – sec 75). National Assembly The Speaker 1. Message from National Council of Provinces to National Assembly in respect of Bills passed by Council and returned to Assembly (1) Bill amended by Council and returned for concurrence on 7 December 2011: 14 FEBRUARY 2012 (a) PAGE: 251 of 447 Further Education and Training Colleges Amendment Bill [B 13D – 2011] (National Assembly – sec 76(1)). The Bill has been referred to the Portfolio Committee on Higher Education and Training of the National Assembly. (2) Bill, subject to proposed amendments, passed by Council on 7 December 2011 and returned for consideration of Council’s proposed amendments: (a) Military Ombud Bill [B 9B – 2011] (National Assembly – sec 75) (for proposed amendments, see Announcements, Tablings and Committee Reports, 24 November 2011, p 5183). The Bill has been referred to the Portfolio Committee on Defence and Military Veterans of the National Assembly. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Police on its oversight visit to Mpumalanga Province police stations from 26 – 29 January 2010, dated 30 November 2011. The Portfolio Committee on Police having conducted an oversight visit to the Witbank, Nelspruit, Mayflower and Bethel police stations from 26-29 January 2010, reports as follows: 14 FEBRUARY 2012 PAGE: 252 of 447 1. INTRODUCTION Due to the fact that the laptop of the Committee Secretary was stolen, the report is not compiled from the original notes but from the Committee’s memory. The Portfolio Committee on Police undertook an oversight visit to four police stations in Mpumalanga Province to assess the implementation of national legislation, assess the resourcing of police stations and how these resources were managed. Other interests to the Committee included Community Police Forums, priority crimes, and compliance with and implementation of the Domestic Violence Act 2. DELEGATION The delegation consisted of: Ms LS Chikunga (ANC)- Chairperson and leader of the delegation Ms MC Dube (ANC) Mr G Lekgetho (ANC) Ms MA Molebatsi (ANC) Ms A Van Wyk (ANC) Ms D Kohler Barnard (DA) Ms D Schafer (DA) Mr M George (Cope) Mr J Michaels (Committee Secretary) Mr M Mpisi (Researcher) The delegation was accompanied by the Parliamentary Liaison Officer to the Secretariat, Mr S Mahote, the Provincial Commissioner, Ms Ntobela and representatives from her office, and a 14 FEBRUARY 2012 PAGE: 253 of 447 representative from the Independent Complaints Directorate (ICD). The delegation met with the management team at each of the police stations. 3. OVERSIGHT ACTIVITIES The Committee interacted with the management team of the police station, the Community and the Union for a detailed discussion on its findings after visiting each station. During the police station visit, the Committee utilised the Station Monitoring Tool to gather information on sector policing, implementation of policies, public complaints against police and the conditions of the Community Service Centre; including the holding cells, capacity of detectives, human and physical resources, and implementation of prioritised legislation, including the Domestic Violence Act No. 116 of 1998, the Firearms Control Act, No. 60 of 2000, and the Child Justice Act, No. 75 of 2008. 4. WITBANK POLICE STATION The Witbank Police Station serves an estimated population of 199 442 people residing within a 14 square kilometres policing area. The police station was reported as dealing with the highest crime rate in the Province, with the most prevalent crime reported between April 2008 and March 2009, including theft general (2161); burglary residential (1690) and theft out of or from motor vehicles (870). During the same period there was an increase in the following crime: murder, attempted murder, sexual assault, assault common, robbery common and robbery aggravated. 4.1 Key Observations Committee briefing by Management: 14 FEBRUARY 2012 PAGE: 254 of 447 When briefing the Committee, the newly appointed police station Commander reported that it was faced with a challenge of high incidence of house burglaries at the time of his appointment. Close co-operation between the community and the police contributed to a remarkable decline in house burglary and assisted in restoring the community’s confidence in the Station Commander. Community Service Centre (CSC): Committee members noted that the Community Service Centre (CSC) was too small to provide the required services to the Witbank Community. There were nine complaints lodged against the police, of which five were referred to the Independent Complaints Directorate (ICD). Members expressed their concern regarding the Domestic Violence Register that was incomplete. The CSC was manned by unsupervised student constables. This was a cause for concern. Holding Cells: In December 2009 five suspects escaped from the Witbank Police Station holding cells. The Police Officer on duty on the night of the escape was subsequently arrested and charged with aiding the escape. The nine cells at the station were well maintained and the holding capacity of these cells was 150 detainees. There were 45 detainees in detention at the time of the visit. The Committee noted with concern the detention of a juvenile held at the police station since October 2009 and sharing a cell with adults. A further concern was expressed about a person suffering from tuberculosis (TB) and sharing a cell with other detainees. Members stated that this individual 14 FEBRUARY 2012 PAGE: 255 of 447 posed a serious health risk to those with whom he was forced to share a cell. The Committee was told that suspected criminals were held in these cells for prolonged periods due to overcrowding at Correctional Services facilities. Suspects were remanded into custody by the courts to be detained at the police station. Section 13 Stores: The Committee acknowledged that the stores were neat and exhibits properly labelled. The station had separate registers for firearms and general exhibits. While these exhibits were stored separately, it was in the same stores. This was noted as a concern to members. Vehicles: The station management reported that the 46 vehicles at the station were insufficient and that an additional 23 vehicles were required. Vehicles were suitable for the terrain that required policing, but South African Police Service (SAPS) members were often forced to share vehicles. Three detectives were forced to share one vehicle due to the shortage of vehicles. Eight vehicles were at the government garage for repairs and 13 vehicles had been deregistered in the previous financial year. Human Resources: The Resource Establishment Plan (REP) prescribes that the human resources allocation to the station should be 275 members. However, the actual staff complement was 269 members and 67 reservists. Seventeen disciplinary procedures were instituted against members over the past year; two of those members were found guilty of misconduct and subsequently dismissed. A Committee comprising management and staff was established to ascertain the training needs of SAPS members at the station. 14 FEBRUARY 2012 PAGE: 256 of 447 Detectives: The Detective unit comprises 64 members. A total of 4166 cases were under investigation and 80 case dockets were assigned to each detective. Two case dockets have gone missing over the past year. However, members were issued with lockup filling cabinets to prevent this from happening again. Three Detectives had to share one vehicle, and the unit requires an additional six vehicles. A majority of detectives were not fully trained. Community Police Forum (CPF): Representatives from the CPF reported that there was a good relationship between the CPF and the station since the appointment of the new station management. Regular meetings were held between the station management and the CPF. However, training for CPF members and a lack of funding for the CPF were identified as challenges. Positive observations The Committee expressed confidence to the newly appointed Station Commander. 4.2 Concerns and Recommendations Committee members expressed concerns around the following: The number of firearms that had been reported missing at the station since 1994 and the high number of unresolved cases in this regard 14 FEBRUARY 2012 PAGE: 257 of 447 A shortage of equipment required by SAPS members in the execution of their duties, for example handcuffs, torches, hand radios, first-aid kits for vehicles etc. The shortage of bullet-proof vests was of particular concern to members The shortage of vehicles The low detection and conviction rates. Members indicated that the lack of detective training and mentorship could have contributed to the low conviction rate. The inadequate safekeeping of case dockets. The Committee recommends as follows: Measures should be taken to ensure that the Domestic Violence Register is kept up to date and signed off by a senior manager at the station. The lack of equipment, including bullet proof vests and vehicles, should be addressed as a matter of urgency. The problem at the Section 13 stores with regards to the safekeeping of firearms should be addressed as a matter of urgency. Better methods of dealing with lost firearms should be put in place. The SAPS legal division should be approached for advice. Detective training should be prioritised and a mentorship programme should be implemented. 5. NELSPRUIT POLICE STATION Nelspruit Police Station serves an estimated population of 300 000 people. The most prevalent crime reported at the station between April 2008 and March 2009 included theft general (decreased from 1820 to 1568); burglary residential (increase from 104 to 1104), theft out of or from motor vehicles (decreased from 713 to 710) and commercial crime (increased from 445 to 14 FEBRUARY 2012 PAGE: 258 of 447 604). During the same period there was also an increase in the following crimes: murder, attempted murder, sexual assault and assault common. 5.1 Key Observations Management: The Station Commissioner, who was at the Senior Superintendent rank, had been acting in this position for a while. The station management team was reported to meet once a month. Community Service Centre (CSC): At the time of the visit the Community Service Centre was extremely congested with people waiting to be served. While it appeared that there was a sufficient number of staff on duty, community members had to wait long before being served. Members noted that it may be due to poor management of the CSC. There was no Complaints Register at the SCS, resulting in no records being kept of complaints against SAPS members. The victim support centre, adjacent to the SCS, was well resourced, and a volunteer from the community was on duty to assist victims. The Domestic Violence Act Register was kept up to date, regularly checked and signed by the CSC Commander. An average of three incidents of Domestic Violence a week was reported at the station between January and December 2009. Five CSC members have completed the new five-day specialised Domestic Violence Act training course. Police were certifying documents without checking the originals. Holding Cells: 14 FEBRUARY 2012 PAGE: 259 of 447 There are 11 cells at the station with a holding capacity of 185 people. A number of these cells have been out of order since October 2009 and this has caused overcrowding in functional cells. The 103 adult detainees held at the time were forced to share the overcrowded cells with 25 juveniles. The Committee expressed their concern about this situation and stated that two suspects found in one of the cells still had their shoe-laces. This was a clear indication that regular inspections were not conducted by the officers on cell duty. Committee members requested that this matter be addressed immediately. The kitchen used for making food for detainees was unable to provide the required number of meals. The blocked drains posed a serious health risk to detainees and staff in the cells. The poor management of holding cells could potentially cause further problems for the station should there be a dramatic increase in the number of suspects that had to detained at the station. The Committee found a number of juveniles kept in the cells without J8 forms. Cells were flooded. Section 13 Stores: The Committee noted that the Section 13 store was not ideally located at the station. There were no filing or labelling systems to record exhibits. Members stated that this was unacceptable, since it was almost impossible to identify which exhibits should be presented as evidence during court proceedings. The station and provincial management were requested to attend to this matter immediately. Vehicles: 14 FEBRUARY 2012 PAGE: 260 of 447 There were 25 vehicles at the station and 30 additional vehicles were required. Five members had to share one vehicle. Six vehicles had been deregistered in the previous financial year and three were at the government garage for repairs. One vehicle was allocated to four detectives. Between Monday and Friday, five vehicles per shift were used to respond to calls for assistance from the community. Human Resources: The staff complement at the station was 258 and 40 positions remained vacant at the time of the visit. An average number of 26 members was on sick leave per day between January and December 2009. Five disciplinary and grievance procedures were lodged and resolved during the same period. All newly appointed SAPS members were attached to a mentor. Detectives: The information provided during the meeting with the station management was contradictory to that which was in the completed Station Monitoring Tool. This was noted as a serious concern to members. There was no identification- parade room at the station. The Detective unit comprised 42 members and an additional 16 detectives were required at the station. Twenty detectives had undergone the required detective training, 12 members completed the basic detective training course and 8 members had never been trained. The conviction rates of the three most prevalent crimes reported during the previous year were: murder (1 %), rape (49%) and house burglary (35%). Five dockets were reported lost in the past year. Organised crime unit: Seventy-five bags, each containing 1 000 Mandrax tablets with an estimated street value of R3.75 million that had been confiscated by the police and stored at the Nelspruit organised 14 FEBRUARY 2012 PAGE: 261 of 447 crime unit, had gone missing from the store- room in July 2009. The Organised Crime Unit members were subsequently moved to another police station, since no evidence of forced entry to the room could be found. Two members of the unit were internally disciplined and another was found guilty and convicted on a charge of possession of stolen goods. Members of the Organised Crime Unit at the station were replaced by members from other stations in the province. Detective Unit members from Nelspruit Police Station (in an unrelated case) were among seven police officers arrested in Mpumalanga on charges of corruption, which included “demanding kick-backs from towing companies”. 5.2 Concerns and Recommendations Committee members expressed concern about following: A lack of proper management at all levels at the police station A filing and labelling system for the section 13 store was non-existent Holding cells were in an unacceptable condition Juveniles were detained at the station with adults without necessary documents. The vacancy rate and the average amount of sick leave taken by SAPS members were alarmingly high A shortage of vehicles The Committee recommends that: the appointment of a station commissioner has to be expedited; conditions in holding cells has to be urgently addressed; 14 FEBRUARY 2012 PAGE: 262 of 447 vacancies at the station have to be filled and a control mechanism has to be implemented to attend to the high number of sick leave days taken by members; and the shortage of vehicles has to be addressed urgently. 6. MAYFLOWER POLICE STATION The station was situated in a residential house without basic services. The provision of running water was inconsistent and the station kept water in the bath-tub. The Committee had a meeting with the CPF which raised serious issues regarding the police involvement in cattle-theft. The CPF mentioned that the community had been harassed by a gang that was known to police, but nothing was done. The most prevalent crime reported at the station between April 2008 and March 2009 included burglary residential (increase from 146 to 181), stock theft (decreased from 20 to 26) and drugrelated crime (increased from 445 to 604). During the same period there was also an increase in the following crimes: murder, attempted murder, sexual assault and assault common. 6.1 Key Observations Management: The station management team was reported to meet once a week. management at the station. Community Service Centre (CSC): There was lack of 14 FEBRUARY 2012 PAGE: 263 of 447 Committee members noted that the there were no road-signs in the area leading to the police station. The station had no running water and telephones were out of order. The Domestic Violence Act Register was not available and a note-book with incorrect records was used. The last incident recorded was in 2007. The CSC had no complaints register. Committee members found that female SAPS members were excluded from some of the shifts. The SAPS firearm room key was kept by a trainee. The firearm register was not properly kept. Holding Cells: The police station had no holding cells and all detainees had to be transported to Elukwatini police station, 50 kilometres from Mayflower. Section 13 Store: The Section 13 store was in a terrible state and had a leaking roof. There was a filing system, but exhibits were not properly labelled. Unlabelled drugs (dagga) were found in the store. Firearms Store: There was no register or key control mechanism in place to prevent unauthorised access to SAPS-issued firearms. Vehicles: The station management reported that there was a shortage of vehicles and that the six vehicles at the station were insufficient to serve the Mayflower community. 14 FEBRUARY 2012 PAGE: 264 of 447 Detectives: The Detective Unit comprised eight members, with only one Detective having completed the required detective training programme. There was only one vehicle allocated to the unit, and the shortage of vehicles was given as the reason for some court cases being thrown out of court. There was no division of work amongst members, and no filing and safe-keeping facilities for case dockets. Four out of eight student constables had had no detective training. Stock Theft: Ninety-five stock theft cases were reported between January and December 2009. One hundred and fifty livestock were stolen, of which 126 cattle, goats and horses were recovered, representing 26 cases. Two cases were finalised and 45 people were arrested. Community members alleged that there was police involvement in stock-theft cases, that unclaimed livestock were stolen by SAPS members, and that SAPS members did not investigate some cases. The Community also raised a concern that they were charged when returning livestock 6.2 Concerns and Recommendations Committee members expressed concern about the following: Poor management at all levels of the police station The lack of basic infrastructure at the police station The poor state of the section 13 store No firearm control mechanism Allegations of police involvement in stock theft The shortage of vehicles 14 FEBRUARY 2012 PAGE: 265 of 447 The Committee recommends that: a senior manager from the Provincial Commissioner’s office be appointed immediately as acting station commissioner; and a progress report should be submitted to the Committee every 30 days, for three months, on remedial action taken. 7. BETHAL POLICE STATION (UNANNOUNCED) Bethal Police Station serves an estimated population of 101 919 people. The most prevalent crime reported at the station between April 2008 and March 2009 included burglary at business premises (increased from 96 to 134); drug-related crime (increase from 12 to 23) and theft out of or from motor vehicles (increased from 80 to 122). During the same period there was also an increase in the following crimes: sexual assault, robbery with aggravating circumstances and assault common. 7.1 Key Observations Community Service Centre (CSC): There was a shortage of operational equipment like bulletproof vests, torches, handcuffs, etc. The firearms’ safe was situated in an inappropriate place which compromised the safe-keeping of firearms. Holding Cells: 14 FEBRUARY 2012 PAGE: 266 of 447 The seven holding cells at the station have a holding capacity of 70 people. The toilets and ablution facilities in the cells had been out of order for more than two years, and detainees were given buckets. It was reported that the cells had been under construction for the past three years. Detainees were not allowed to receive any visitations by family members or relatives. Committee members stated that this was unacceptable, since detainees had a right to receive visitors. Vehicles: There was a shortage of vehicles at the station, and the vehicles that SAPS members had to use were unsuitable to serve the farming and rural communities. Detectives: There is no identification-parade room at the station and a lack of private interview rooms. The caseload per detective averaged 25 dockets, and three detectives had to utilize one vehicle. Information on conviction rates could not be provided. There was a high number of incomplete records on reported cases. A high number of stock- theft cases was opened, but there was no clear strategy on how to reduce this type of criminal activity. 7.2 Concerns and Recommendations Committee members expressed concern about the following: The shortage of appropriate vehicles Detainees not being allowed to receive visitors 14 FEBRUARY 2012 PAGE: 267 of 447 The safe-keeping of firearms Ablution facilities not working for two years Lack of strategic leadership on how to reduce the incidence of stock theft in the area. The Committee recommends that: the shortage of vehicles has to be addressed urgently; information that was not available at the time of the visit, be forwarded to the Committee; and toilets be fixed immediately. Report to be considered. FRIDAY, 9 DECEMBER 2011 COMMITTEE REPORTS National Assembly CREDA INSERT - T111209e-insert1 – PAGES 5484 - 5509 TUESDAY, 13 DECEMBER 2011 ANNOUNCEMENTS National Assembly 14 FEBRUARY 2012 PAGE: 268 of 447 The Speaker 1. Membership of Committees (1) The following members have been nominated by their parties to serve on the Ad Hoc Committee on the filling of vacancies in the Commission for Gender Equality: African National Congress Bengu, Ms NR Ramodibe, Mrs DM Dlulane, Mrs BN Mashigo, Ms RM Snell, Mr GT Smith, Mr VG Sibanyoni, Mr JB Democratic Alliance Robinson, Mrs D Duncan, Mrs PC Congress of the People Ndude, Mrs HN 14 FEBRUARY 2012 PAGE: 269 of 447 Inkatha Freedom Party Zikalala, Ms CN African Christian Democratic Party Dudley, Mrs C WEDNESDAY 14 DECEMBER 2011 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Calling of Joint Sitting CALLING OF JOINT SITTING OF THE NATIONAL ASSEMBLY AND THE NATIONAL COUNCIL OF PROVINCES. In terms of section 84(2)(d) of the Constitution of the Republic of South Africa, 1996, read with Rule 7(1)(a) of the Joint Rules of Parliament, the President of the Republic of South Africa has called a joint sitting of the National Assembly and the National Council of Provinces on 14 FEBRUARY 2012 PAGE: 270 of 447 Thursday, 9 February 2012 at 19:00, in order to deliver his State of the Nation Address to Parliament. 2. Draft Bills submitted in terms of Joint Rule 159 (1) Sheriffs Amendment Bill, 2011, submitted by the Minister of Justice and Constitutional Development. Referred to the Portfolio Committee on Justice and Constitutional Development and the Select Committee on Security and Constitutional Development. 3. Assent by President in respect of Bills (1) Government Employees Pension Law Amendment Bill [B 15 – 2011] – Act No 19 of 2011 (assented to and signed by President on 12 December 2011). (2) Higher Education Laws Amendment Bill [B 14B – 2011] – Act No 21 of 2011 (assented to and signed by President on 12 December 2011). (3) Adjustments Appropriation Bill [B 18 – 2011] – Act No 23 of 2011 (assented to and signed by President on 12 December 2011). (4) Taxation Laws Second Amendment Bill [B 20 – 2011] – Act No 25 of 2011 (assented to and signed by President on 12 December 2011). 14 FEBRUARY 2012 PAGE: 271 of 447 National Assembly The Speaker 1. Membership of Committees (1) Ms N R Bhengu has been elected as chairperson of the Ad Hoc Committee on the filling of vacancies in the Commission for Gender Equality with effect from 14 December 2011. TABLINGS National Assembly and National Council of Provinces 1. The Presidency (a) 2. Revised Annual Performance Plan of the Presidency for 2011/12. The Minister of Justice and Constitutional Development (c) Proclamation No R.62 published in Government Gazette No 34744 dated 10 November 2011: Commencement of section 1 of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008). 14 FEBRUARY 2012 (d) PAGE: 272 of 447 Government Notice No R.941 published in Government Gazette No 34744 dated 10 November 2011: Designation of correctional facility in terms of section 159B (2) of the Criminal Procedure Act, 1977 (Act No 51 of 1977). MONDAY, 16 JANUARY 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Assent by President in respect of Bills (1) Taxation Laws Amendment Bill [B 19 – 2011] – Act No 24 of 2011 (assented to and signed by President on 28 December 2011). TABLINGS National Assembly and National Council of Provinces 1. The Speaker and the Chairperson (a) General Report on the National Audit Outcomes of the Auditor-General of South Africa for 2010-11 [RP 256-2011]. 14 FEBRUARY 2012 (b) PAGE: 273 of 447 Consolidated General Report on the Provincial Audit Outcomes of the Auditor-General of South Africa for 2010-11 [RP 260-2011]. 2. The Minister of Home Affairs (a) A list of approved early naturalisation applications for 2010 and 2011 in terms of section 5(9) of the South African Citizenship Act, 1995 (Act No 88 of 1995). 3. The Minister of Trade and Industry (a) Government Notice No 893 published in Government Gazette No 34845 dated 9 December 2011: For public comments in terms of the Broad- Based Black Economic Empowerment amendment Bill, 2011. (b) Government Notice No 897 published in Government Gazette No 34810 dated 15 December 2011: Denel (Pty) Ltd: B-BBEE Facilitator Status in terms of the Companies Act, 1973 (Act No 61 of 1973). (c) Government Notice No 1065 published in Government Gazette No 34871 dated 15 December 2011: Prohibition of the use of the national gambling logo in terms of the Merchandise Marks Act, 1941 (Act No 17 of 1941). 4. The Minister of Water and Environmental Affairs 14 FEBRUARY 2012 (a) PAGE: 274 of 447 Report and Financial Statements of the Mhlathuze Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11[RP 200-2011]. (b) Report and Financial Statements of the Lepelle Northern Water Board 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 Magalies Water Board 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 Bushbuckridge Water Board 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 Bloem Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11. (f) Report and Financial Statements of the Sedibeng Water Board for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11. COMMITTEE REPORTS 14 FEBRUARY 2012 PAGE: 275 of 447 National Assembly 1. Report of the Portfolio Committee on Human Settlements on an oversight visit to Gauteng from 1-6 August 2010, dated 26 January 2011 1. Background In terms of the Constitution of 1996 and parliamentary rules, the Portfolio Committee on Human Settlements has a responsibility to conduct oversight over any executive organ of State that falls within its portfolio. In line with this mandate, in its strategic plan, the Committee committed itself to undertake provincial visits to oversee the project plans and programmes. The Committee also undertakes to evaluate progress made and identify any challenges encountered in the implementation processes. Furthermore, the Committee seeks to promote and enhance co-operative governance principles in the human settlements delivery services. To fulfil its strategic plan, the Committee conducted an oversight visit to Gauteng from 1-6 August 2010. 2. Objectives of the visit The objectives of the oversight visit were for the Committee to be briefed on the following issues and to conduct site visits: Implementation of a comprehensive, integrated human settlements strategy in the province; To gauge performance in meeting service delivery targets set for 2009/10 and challenges encountered and to ascertain whether value for money was achieved; The role played by the public and private sectors in service delivery; Plans, programmes and service delivery targets for 2009/10; 14 FEBRUARY 2012 PAGE: 276 of 447 Progress report in support of the disaster-affected communities; Blocked projects and plans to unblock them; Progress and plans made on the rectification programme; The number of informal settlements, the plan and the progress in upgrading such settlements, including Community Residential Units (CRUs); Progress in the implementation of the Farm-worker Assistance Programme; The co-ordination and management of the Beneficiary List and the incorporation of backyard dwellers in the provincial housing database; and 3. Projects constructed with alternative technologies. Multiparty delegation The delegation consisted of Hon BN Dambuza (ANC), leader of the delegation; Hon MR Mdakane (ANC); Hon TMA Gasebonwe (ANC); Hon JM Matshoba (ANC); Hon NA Mnisi (ANC) ; Hon V Bam-Mugwanya (ANC); Hon AC Mashishi (ANC); Hon D Dlakude (ANC); Hon AM Figlan (DA); Hon AC Steyn (DA); Hon T Botha (Cope) and Hon KP Sithole (IFP). The delegation was accompanied by Mr L Jolobe and Ms M Pine from the National Department of Human Settlements. Ms K Pasiya (Committee Secretary), Mr M Molo (Researcher) and Ms N Mnyovu (Committee Assistant) from Parliament supported the delegation. 4. Day 1 (1 August 2010) 4.1 Meeting at the provincial offices of Local Government and Housing The delegation was welcomed by the Chairperson of the Standing Committee on Local Government and Housing, Hon E Magerman. 14 FEBRUARY 2012 PAGE: 277 of 447 Hon Dambuza introduced the delegation and outlined the purpose of the visit as indicated in the objectives above. She stated that during the 2010 State-of-the-Nation Address (SONA), the President announced five key government priorities, that is, education, health, creation of decent jobs, rural development and land reform, and, fighting crime, fraud and corruption. Later on, as a result of protests and unrest in most townships and the establishment of Presidential hotline, it was revealed that most of the protests were about housing matters. Thereafter, the Cabinet Lekgotla elevated Human Settlements and Cooperative Governance and Traditional Affairs to the top seven priorities. Sanitation was also transferred to the Department of Human Settlements, which also added on the mandate of the department. The Minister of Human Settlements had announced that 40 000 houses required demolishing and some required rectification. Therefore, it was vital for the Committee to get a progress report in respect of rectification and the rebuilding of those houses. Hon Dambuza indicated that during the State-of-the-Nation Address, the President emphasised that all informal settlements should be upgraded. Hon Dambuza stressed the importance of compliance with the Housing Act (No 107 of 1997) and other policies that regulate the delivery of houses. She further noted challenges with regards to the slow registration of title deeds. Mr K Lekgoro, the MEC for Local Government and Housing, indicated that the population of the province was growing rapidly and the department may not reach the target set on housing delivery. The policy that gave free houses to every citizen aged 18 years and above was not sustainable. The housing backlog was increasing to 700 000. However, the Provincial Department only received a budget that could provide for the building of 30 000 units per year. The conversion of hostels into family housing units was also a costly exercise as hostel dwellers could not afford to pay rent. Most of 14 FEBRUARY 2012 PAGE: 278 of 447 the people who lived in hostels were elderly people who were solely dependent on social grants for a living while others were unemployed. Most dwellers could not afford to pay R300 for rental. They could only afford R70 towards rental. The delays in service delivery and the protests were due to a lack of funding to deliver on a large scale. The resources required in achieving large-scale delivery or the eradication of informal settlements by 2010 was a challenge. It was anticipated that the province was not going to meet the 2014 targets of the Millennium Development Goals. The other challenge facing the department was the naming of other projects as Presidential projects, whereas they were financed by the provincial department. There was a need to review policy dealing with bulk infrastructure due to disjuncture in the installation of bulk infrastructure and top structure, as most projects were delayed due to a lack of bulk infrastructure. Challenge that impact on housing delivery: Domestic migration and continental immigration posed a huge impact on Housing delivery in the province. Equitable share not increasing. In Diepsloot a national task team has been set up to deal with the issue of housing and land has been purchased at R80 000 Ekurhuleni too dense and it is difficult to relocate people due to lack of temporal structures. Entire Bekkarsdaal is sitting on dolomite therefore all those communities will have to be relocated. 14 FEBRUARY 2012 PAGE: 279 of 447 260 00 units for people leaving in a formal 1999 year lease area has been transferred to qualifying beneficiaries except those in areas of dispute, however dispute mechanism has been set up. 4-5 shacks in Eldorado Park installed in one stand, specific intervention to renew Old Township is required. In Eden Park 800 beneficiaries have been legitimately approved however, houses are occupied by illegal occupants. Mr M Mnyani, the Head of Department (HOD), gave an overview of the provincial department. He explained that the merger between the Department of Local Government and the Department of Housing resulted in the creation of the Department of Local Government and Housing. This meant that the delivery of essential services to advance the lives of ordinary people had to be mainstreamed and ensured. This was crucial in that Gauteng is the smallest province with largest population, which grows rapidly as a result of migration and natural growth. The HOD presented the key programmes of the provincial department as follows: 1. Mixed development housing; 2. Alternative tenure; 3. Eradication of informal settlements; and 4. Urban renewal projects. The province did not have any blocked projects. It was, however, faced with the challenge of some projects failing to produce a closing report and other projects that lacked resources. In dealing with the issuing of title deeds, the Department had appointed Servcon to verify beneficiaries who did not have 14 FEBRUARY 2012 PAGE: 280 of 447 title deeds and assist them in applying for title deeds. In Soweto, approximately 2 600 title deeds were transferred to the beneficiaries of the old stock houses. Gauteng province did not have any backlogs as far as sanitation was concerned. The department had eradicated the bucket system in all informal settlements. To address challenges emanating from the waiting list, the department introduced the Housing Demand Database to correct the inefficiencies. Operation Ziveze was launched where applicants were required to update their information so that it could be correctly captured in the new database. The roll out plan of the database includes regionalisation of the customer services unit and the re-opening of municipal satellite offices to bring services to the people. In 2010/11, the province acquired a total of 29 land portions at an estimated cost of R250.4 million. With regard to the issue of informal settlements, the provincial department reported that the province had 405 informal settlements according to the 2005 census registration and according to the growth statistics in 2009, they had increased to 489. There were 122 informal settlements that were identified and earmarked for formalisation. The remaining 268 settlements would be eradicated. The delegation observed that there was a discrepancy in the numbers of informal settlements as was reported. The delegation requested the province to provide the correct statistics on informal settlements, indicating the number of informal settlements that were to be formalised, relocated and eradicated. The HOD reported that the housing backlog at the time of the oversight visit was 687 285. The actual delivery summary for 2009/10 was 12 819 stands; 30 744 houses; 2 910 rental units, which comprised a total of 46 473. The delivery targets for 2010/11 for stands, houses and units were 38 439. The 14 FEBRUARY 2012 PAGE: 281 of 447 department has embarked on the process of addressing the backlog of service delivery through a twophased incremental approach which is the: formalisation of informal settlements through the provision of basic services; and eradication of informal settlements through the provision of formal housing structures. The department informed the delegation that there were challenges hindering the delivery progress as follows: Funding of suitable and well-located land was costly; Growing number of informal settlements while others were being eradicated; Re-invasion of land and densification once a settlement was targeted for formalisation; Availability of resources in order to meet the formalisation target by 2014; Poor health conditions and unsafe living environments; and Domestic migration and immigration by neighbouring countries huge impact of service delivery. The department reported that all 12 895 initially identified buckets that were supplied and serviced by the municipality had been eradicated by the end of November 2007. The buckets were either replaced by water borne or VIP sanitation systems. The total number of toilets built were 13 021. The challenge was that whilst the entire identified bucket system in terms of the definition of the Department of Water Affairs had been eradicated, informal settlements continued to develop their own bucket system, which has been a never-ending challenge. 14 FEBRUARY 2012 PAGE: 282 of 447 In regard to alternative technology, the province was utilising the services of the Eric Moloi Innovation Hub. The hub provides beneficiaries and end-users with a wider choice of good quality, affordable housing depending on the income level of the beneficiary. The provincial department has developed a Housing Development Sector Involvement Strategy (HDSIS) for women, youth and persons with disabilities. One of its objectives was to create an environment where women, youth and persons with disabilities could be assisted to access skills and training. The department was also aiming at ensuring that housing was accessed by individuals with special needs, women, youth, person with disabilities, child-headed families and pensioners through its special needs programme. In regard to rectification, the department informed the delegation that in 2006 it had appointed Servcon to conduct the verification of all occupied houses and serviced stands and to determine the physical conditions of houses and the legality of occupancy. The report showed that there were 121 461 houses built before 2002 needed to be rectified. At the time of the oversight visit it was reported that 117 451 units were repaired and 4 010 units still required rectification. In addition, during the rectification process, units that were 24 to 30 m2 in size were increased to 40 m2. It was further reported that the provincial department was facing funding shortages and challenges in relation to proper budget allocation to implement outcomes-based models. In order for the department to achieve integrated human settlements, it needed to address the challenges of bulk infrastructure and the use of the Municipal Infrastructure Grant (MIG). The affordable rental products were still not supported by policies in the Department of Human Settlements and that the Community Residential Unit (CRU) policy needed to be reviewed as it was 14 FEBRUARY 2012 PAGE: 283 of 447 too expensive to implement. The acquisition, cost and availability of well-located land was hindering housing delivery. Gauteng has 64 hostels and the provincial department plans to concentrate on 13 hostels during this financial year 4.1.1 Deliberations The following questions were raised: What criteria were used to change from the beneficiary list to the demand database? What does the department mean by the small-scale rental programme? What progress had the department made in the issuing of title deeds for the government subsidy sector? What was the department doing to resolve the challenges of the shortage of land with reference to Kagiso township where four families were sharing one plot? What role is the Housing Development Agency (HDA) playing in the acquisition of land? What role did the National Home Builders Registration Council (NHBRC) play in the projects that were due for rectification and how much money was owed by the province to the NHBRC? Why was the department still utilising Servcon whilst its mandate has been expired in 2006 What is the number of blocked projects and what plans have been put in place to unblock them? What progress has been made regarding Presidential projects? Were these projects prioritised? What kind of assistance is the department giving to child-headed families? What progress has been made in the roll out of the new sanitation programme and what assistance has been given by the national department? 14 FEBRUARY 2012 PAGE: 284 of 447 What challenges have been encountered with regard to environmental impact assessments (EIAs)? What challenges have been encountered in the acquisition of temporary relocation structures? 4.1.2 Responses In regard to the issuing of title deeds, the department had appointed Servcon to conduct occupancy verification and delivers title deeds. Subsequent to that, Servcon appointed its own service provider to do the work. A total of 2 600 title deeds for old stock (former 99 year lease houses) in Soweto townships were transferred to the owners. In order to fast-track the issuing of title deeds, the department was going to establish a conveyancing unit within the department to deal with paperwork for all the projects. It was reported that Servcon contracts with the department ended in 2006, but at the time of the oversight visit it was indicated that the department was still finalising the handover reports. Servcon and Thubelisha projects were implemented by the department. The department was using a small-scale rental programme. Rental units were built in the backyards of a government subsidy unit in the old stock (municipal houses) to facilitate rental accommodation. This was the department’s attempt to address the demand of houses and the shortage of land. The department confirmed that it did not owe the NHBRC any registration fees as the last balance was paid. It was further confirmed that all projects were enrolled with the NHBRC. 14 FEBRUARY 2012 PAGE: 285 of 447 Three inspectors were assigned to each project as a way of ensuring the quality of the built houses. One inspector was from the NHBRC, one from local government and one from the provincial government. The department assisted six child-headed families by allocating houses to them to houses and also by referring them to Social Development for assistance in term of grants. In his closing remarks, the HOD assured the delegation that the province has no challenges with regard to sanitation. Day 2 (3 August 2010) Visit to national Department of Human Settlements The delegation was welcomed by the Director-General, Mr T Zulu. He tendered an apology for the Minister of Human Settlements (Mr T M G Sexwale) and the Deputy Minister of Human Settlements (Ms ZA Kota-Fredericks) for not attending the meeting as they had prior engagements. Hon Dambuza outlined the purpose of the visit, which was, amongst others, to: understand the environment in which the department is operating; ascertain whether the department has adequate capacity to monitor and evaluate its service delivery implementation; and ascertain the capacity of the department to deliver on the new mandate. Mr Zulu gave a brief overview of the department. There was a need to look at the new strategy. The issue of capacity in relation to the new mandate was being addressed with the Minister. The department was still operating on the old setup, which was not influenced by the new mandate 14 FEBRUARY 2012 PAGE: 286 of 447 (operating as the Department of Housing). The department was in the process of reviewing housing legislation and policies to accommodate the human settlements mandate. The legal team has been mandated to embark on that process. In terms of performance contracts, there was a disjuncture as they were drafted for the Department of Housing and did not incorporate the new mandate, especially the sanitation function. It was reported that the performance standards of the Department of Public Service and Administration are very generic and some issues do not cover the expanded mandate of the department. In response to a question about timeframes for the policy review, it was reported that there were no timeframes but the panel had been appointed to assist in drafting and amending some pieces of legislation and policies to accommodate the human settlements strategy. The department’s operational environment is informed by the Public Services Act, as amended, the public services code of conduct and the Public Finance Management Act (PFMA). The department’s staff complement, including senior managers, was 599. A copy of the organogram would be forwarded to the Committee. The staff complement reflecting the gender and demographic breakdown and vacancies was submitted to the delegation. The department has a fully functional Internal Audit Committee in accordance with the requirement of the PFMA and Treasury Regulations. It comprises independent auditors in accordance with the PFMA requirements. The department also has a Risk Management Committee, which assists the accounting officers in executing the oversight requirement of risk management, and evaluating and monitoring of the institution’s performance. 14 FEBRUARY 2012 PAGE: 287 of 447 The department has a Special Investigations Directorate whose mandate is to deal with the prevention and detection of corrupt activities and to ensure a reduction of corruption in the human settlements sector. The following policies and strategies are in place to prevent and combat corruption: Fraud prevention policy and plans; Whistle blowing policy; Partnership between the Department and the Special Investigating Unit (SIU); and National Audit Task Team (NATT). Deliberations The delegation raised the following concerns, questions and points of clarity: What plans were in place to fill the vacant positions and were the filling of these vacancies budgeted for? How much was the rent for the three buildings that were used by the department and what were the plans to acquire one building? Was the department able to roll out service delivery in terms of the new mandate? Were the housing institutions functioning and effective? Responses The vacant positions were budgeted for and the appointment of personnel would be fast-tracked. In regard to the rental of the buildings, the Department of Public Works was facilitating the process and the Department of Human Settlements was reported to be paying R10.5 million per annum for the three buildings. There was a plan to acquire a nearby Electoral Commission (IEC) building which was just across from where the department could accommodate all staff from the three buildings. 14 FEBRUARY 2012 PAGE: 288 of 447 Negotiations were still underway and the Department of Public Works was facilitating the lease agreement. The housing institutions were functioning well and effectively in the delivery of houses. However, there were also those that will have to be restructured and some to be closed down as their mandates had matured. It was reported that the Housing Development Agency needed to acquire huge parcels of land as most of the projects could not get off the ground due to the unavailability of suitable and well-located land. Visit to the Group Five/Everite plant The delegation was welcomed by Mr M Kistnasamy, National Sales and Marketing Manager: ABT. The leader of the delegation outlined the purpose of the visit. Ms I Makute gave an overview of Group Five/Everite campany. The company was established in 1974 and had a broad footprint. The company also had a new department that dealt with investments and concessions, construction, engineering and manufacturing. In 2009, the company had a good financial year. During the All Africa Games, Group Five built houses in Alexandra for renting purposes. It had projects in Cosmo City and also manufactured temporary relocation houses in Alexandra. The material used to build houses lasted for almost 60 years. The life span for temporary houses is 3040 years. Group Five trains and develops local contractors in erecting the units. A 24-30 m2 temporary house costs approximately R43 429. The material used was approved by the CSIR and the SABS. The units could withstand disasters. The structures were properly joined and there would be no need for rectification. Communities were reluctant to accept these units as they were not familiar with them. 14 FEBRUARY 2012 PAGE: 289 of 447 During interaction on the alternative technologies, Group Five was advised to popularise its alternative technologies to the communities. The national Department was also advised that it needed to educate people on the ground about the new innovations and technology. Group Five shared with the delegation some of its contributions made in housing delivery as follows: Approximately 1 600 units for Gauteng Department of Local Government and Housing (temporary units); 200 units in Tshwane; 300 units in Mamelodi; and Construction of temporary Airport Terminal Buildings (Umtata). The delegation visited the factory where the different materials were manufactured and viewed the different housing structures, the temporary units, VIP toilets and temporary ablution units. Day 3 (4 August 2010) Meeting with the Registrar of Deeds Mr E Steven, Registrar of Deeds, together with his two deputies welcomed the delegation. The purpose of the visit was to understand the processes of issuing title deeds, the process followed in the registration of Reconstruction and Development Programme (RDP) projects which are known as government subsidy houses, as well as compliance with policies and the Housing Act of 1997, as amended, especially in terms of section 10(a) and (b) that dealt with the deregistration of title deeds. 14 FEBRUARY 2012 PAGE: 290 of 447 The delegation was informed that the registration of a title deed took six days to be finalised. In the case of RDP houses or projects, the registration took three days, depending on whether the department approached the Registrar of Deeds on time. There were no restrictions. Transactions were barred by the Department of Housing. The registration was only rejected when relevant documents were not supplied. In the case on RDP houses or projects, the whole batch was rejected even if only one application lacked certain required information. Several interactions took place to educate communities on how deeds office works, as people are defrauded due to a lack of knowledge. There was no provision for family title deeds of pre-1994 housing stock. This has resulted in some families fighting over the properties. There was a need to review policies that govern the issuing of title deeds to accommodate common and customary law. The delegation indicated in some provinces that the old four-roomed municipal houses (pre-1994 stock) were transferred to the occupants (rent payers) who were given title deeds. The delegation further indicated that government needed to address this matter so that these houses could be transferred. Most people owed municipalities exorbitant amounts. Government should assist those people to resolve the matter and transfer the units to the owners. The delegation had an opportunity to visit the offices where title deeds were kept. Site visit to Kliptown Golf Course (social housing - rental stock) The aim of the project was to deliver 932 units. The Johannesburg Housing Company (JOSHCO), a property management company, was appointed by the provincial department to manage and allocate the occupation of units. The department had also appointed the National Housing Finance Corporation (NHFC) as the developer, but due to delays by the developer the department took over the 14 FEBRUARY 2012 PAGE: 291 of 447 development. Subsequently, another developer was appointed to complete 722 houses. Two hundred and forty three houses were scheduled to be completed in the 2011/12 financial year and two contractors, M5 and Imisebe, were appointed in a joint venture to finalise the houses. Site visit to Kathrada Park (Silvertown area) The project started in 2002 and was essentially earmarked to build 583 units. In 2006, 383 units were completed and thereafter the project became blocked. In 2008, only 16 units were built to roof level and were exposed to vandalism and theft as the contractor had disappeared. The area was de-densified and the province provided temporary relocation units (TRUs) which were made of corrugated iron. The area was further challenged by illegal invasions by both qualifiers and non-qualifiers. The municipality later conducted an occupancy audit in order to verify the occupants’ status. During the period of visit the province had already appointed Sea Kay Contractors to unblock the project. During interaction with the community and the ward councillor, inconsistency in the communication and distribution of information around projects and delivery processes was reported as a huge challenge. Site visit to Dube hostels in Orlando Township (Temporary relocation units (TRUs)) The project was started in the 2007/08 financial year with the aim of eradicating hostels and integrating the communities. One hundred and six of the 266 TRUs were occupied by February 2010. The units are 40 m² in size with two bedrooms, a stove and kitchen with tiled floors. Madilomo was 14 FEBRUARY 2012 PAGE: 292 of 447 appointed as a contractor to manage the property and to assist in advising on what should be included in the units. Orlando West is a women-dominated area where 405 units were intended to be upgraded or built. There were approximately 150 TRUs on site that were electrified. The TRUs will be used to decant families from the old hostel room to allow for infrastructure upgrading and for renovations, which were to commence in September 2010. It was reported that most of the hostel residents were unemployed and those who were employed were earning less than R1 000 a month, and therefore affordability was a challenge. The following other challenges were also highlighted: unavailability of suitable land; delays in electricity supply by Eskom or City Power; delays in the installation of storm water drainage systems; and overcrowding in hostels. The delegation accepted the information given with the challenges. The delegation stated that the observation on hostel upgrading required an urgent review of policies governing implementation and that the process needed to be fast-tracked. Day 4 (5 August 2010) Site visit to Ward 79 - Themba Khoza informal settlement 14 FEBRUARY 2012 PAGE: 293 of 447 The ward consists of three big informal settlements, including Tokyo Sexwale informal settlement. Originally the place was occupied by only 45 families, but due to land invasions the number of families increased and the place is currently overcrowded. The residents informed the delegation that they were placed on the land temporarily for a period of three months and were assured that they were going to be moved to their houses. At the time of the visit it was their seventh year of waiting to be relocated to the promised land or development. The land that they were occupying belongs to the Department of Sport and Recreation, who planned to extend the stadium. However, due to a lack of land for housing purposes people refused to be moved. There was a development nearby to where the people thought that they would be relocated, but due to the demarcation issue, the development fell under another region or municipality (Ekurhuleni). There were no timeframes when the relocation would take place. Operation Ziveze also created challenges as it was shown that most of the people did not qualify as they had already benefited. The department indicated that the challenge was related to the lack of land and the backlog which stood at approximately 2 400 units. Site visit to Lusaka section Various houses were left unfinished for approximately four years and some people were in serviced sites. The project was contractor-driven. In some plots slabs or houses were left half done. Some households were headed by children as they were without parents. The contract to build the houses was awarded to Xhasa who was later removed. The councillor indicated that he did not have enough information about the project and could not furnish reasons why houses were left unfinished. The 14 FEBRUARY 2012 PAGE: 294 of 447 Department of Human Settlements was giving conflicting information to residents and councillors, which made the lives of councillors miserable. Adjacent to that project was an informal settlement that had been there for the past three years. The residents were excluded when allocations were made in relation to Lusaka. The people were settled under Eskom power lines and there had been cases where residents were electrocuted. Site visit to Mafelandawonye 3 The settlements have 135 stands and 688 family shacks or households. The area was densified and later subdivided. There were about four to five families on one plot with one toilet. The electricity box was installed by Eskom in one of the shacks and if the owner was not there, the rest of the families would struggle to gain access to electricity. The residents were informed that during the relocation, only one would be left as the owner. The community was questioning such a decision as the municipality was unable to identify the legitimate owner in that situation. There was no storm-water drainage and no accessible roads. Street lights were installed but they were not functioning. Various cases were reported of some children who were eaten to death by rats and others who were in a critical condition due to injuries sustained. As a result of the overpopulation of the settlement some people were moved to Bagdad. Site visit to Bagdad The area has underground water and became flooded during times of heavy rainfall. There is palisade fencing along a dangerous stream to prevent access by children. There was no water supply and toilets 14 FEBRUARY 2012 PAGE: 295 of 447 in the area. Residents were using plastic bags to relieve themselves. Toilets that were located along the road were far from the communities and were dangerous at night. Site visit to Ivory Park The Ivory Park project sought to de-densify and formalise the informal settlements. People will be relocated to the pieces of land within and outside the vicinity of Ivory Park. The following process would unfold: reduction of stand size site into 100 m2 and rezoning of surrounding land into residential sites; submission of amended township layout; re-pegging of stands and approval by Surveyor General; redevelopment of the temporary relocation sites into mixed housing development. At the time of the visit there were two contractors that were appointed to build 210 housing units in the area but due to financial constraints they could not start. The site was formalised by the City of Johannesburg and 3 500 families were scheduled to be moved. Stands would be reduced to accommodate people in the area. Most of the shacks were on the flood line. Water and sewerage were a challenge but there was a plan to upgrade the infrastructure. Water in the nearby dam was contaminated by sewege. The City of Johannesburg needed to proclaim Ivory Park. The project was going to cost R600 million to construct. The City of Johannesburg indicated that it required the full amount in order to start the project. The City stated that its point of departure was to relocate people and involve land surveyors as communities refused to be moved from shack to shack. The City had engaged with the national Department of Human Settlements on the funding proposal but was still awaiting approval. 14 FEBRUARY 2012 PAGE: 296 of 447 Site visit to Diepsloot East Two types of communities were residing in the area, which was made up of approximately 20 000 families. Some were relocated from Alexandra and others were left behind during the construction of Diepsloot West. In Diepsloot East, the plan was to build a mixed development consisting of government subsidy houses and rental stock. The project will provide approximately 6 700 housing opportunities. The environmental impact assessment (EIA) was a challenge because it was found that there were bullfrogs that needed to be protected. The area was on a flood line and 30% of the land was under water and contained indigenous bullfrogs. The lack of funding for the Diepsloot project was also a challenge. It was reported that the project was going to take at least 12 years to be completed, provided that funding would be sorted out. The municipality indicated that the plan to relocate the bullfrogs was completed and that the majority of them had been moved. Site visit to Diepsloot West, Ward 95 and Ext 1 and 6 The project started in 2002. Approximately 48 houses were incomplete for seven years and most were owned by orphans. In Ravele Street, there were more than five shacks on one plot and it was a challenge to identify the legitimate owner of the plot. There were no street lights and sewage was running down the street. In Diepsloot Ext 1 and 6, people invaded houses before the elections of 2003/04 and were still living there. The invaders were also extending their occupation of the houses whereas the actual owners with keys and title deeds were still in shacks. The matter was reported to the department and the then 14 FEBRUARY 2012 PAGE: 297 of 447 MEC for Housing, Ms Nonkonyana, and the eviction order was granted, but because it was close to an election the occupants were not evicted. Public meeting at Orange Farm During the meeting the following challenges were raised by members of the community: Most contractors appointed by the provincial Department of Housing in relation to sewerage projects were not completing them. Some contractors left a project three years ago. Sewage was flooding onto the streets. The greater part of the area was still using pit-latrine toilets and those with sewerage informed the delegation about the poor quality thereof. The main sewer was installed by Johannesburg Water but was not connected to households, especially those who did not own RDP homes and those who resided in old-stock housing. The connection would be installed only in respect of RDP houses. In 1995, in a greenfield development in Lake Side the allocation was not conducted properly as people owned more that five sites, and some sites were sold illegally. Some sites were allocated as business sites and others were located in waterlogged areas. In some areas houses were built for people who did not qualify for government subsidies. It was reported that there was a lack of consistency in housing delivery as some plots were fenced while others were not. The slow pace in issuing of title deeds was a challenge in the area Contractors whose contracts were terminated for shoddy work were later appointed for other projects and continued to build poor structures. Thubelisha constructed 1 000 units in ward 1 Ext 9 and all those houses have a sewerage problem. Furthermore, 4 000 units were of poor quality. 14 FEBRUARY 2012 PAGE: 298 of 447 There was a lack of proper planning coupled with the non-standardisation in delivery of housing projects. For example, some projects conformed to policy (providing a service delivery package with sewer connection, access roads and streets lights). Johannesburg Water Services has also ordered the people in Ext 29 to pay R100 for sewerage connections; however the sewer remained flooding in their houses. Contractors left site without completing construction of the houses. After three years the department re-instated their contracts again. The community reported that a constructor called Sea Kay left the site because it was not registered and people were moved to temporary structures are still living there. The Committee inquired how this constructor was appointed without proper documentation. It was alleged that the provincial department built houses in areas which were not approved by the municipality and at some stage people were allocated housing without a proper screening; hence some people were alleged to have owned five stands. In respect of Greenfield projects of 1995, ninety five per cent of the people living in the area are not the rightful owners. In respect of the PHP project, 250 units were set to be constructed; however, only 180 units were constructed and surprisingly, the department claims all that houses have been completed. The area has a quite number of orphans or child-headed families or households who are highly victimised by stepparents who chase the children away. Police do not assist in handling conflicts and incidents of intimidation. Deliberations 14 FEBRUARY 2012 PAGE: 299 of 447 The delegation stated that by listening to the presentation it became clear that the problem was too wide and complex; therefore it required an extensive investigation by the national Department of Human Settlements. The quality of most houses was not acceptable. The NHBRC needed to strengthen its inspectorial duty in respect of most projects. Government needed to intervene in the provision of adequate shelter. The department should assist those who did not qualify for RDP houses to be connected to sewerage. Gauteng sewerage was collapsing as the Vaal sewer reservoir was full. It was built to accommodate only 2 million people, but the population has since grown to 11 million people. There was a need to build a new sewer reservoir in the area. The delegation drove through a number of blocked projects. Some were left at wall height, some at roof level and others at the foundation stage. Sewage was flowing in the streets where children were playing. Meeting with Executive Mayor of Evaton The Mayor, Mr Mshudulu, councillors and staff welcomed the delegation. It was reported that the municipality was embarking on the Evaton renewal projects which included the following: Sewer upgrading project which was almost complete. Mafetsane Government and Sports Complex which was 98% complete. The aim of the construction, among others, was to create employment opportunities and to provide essential services to the Evaton community. Temporary relocation village which was going to serve as a buffer so that construction could take place on identified sites. There was also a show village that allowed people to have an idea as to the type of development that would take place in their township. Some of the houses in the show village were allocated to child-headed families. 14 FEBRUARY 2012 PAGE: 300 of 447 The municipality had a land release project which was aimed at promoting security of tenure and to fast-track the process of housing delivery. There was also food gardening for planting vegetables, a brick-making plant and social facilitation for the benefit of the communities. The municipality only reported on the renewal projects. The delegation further requested the municipality to forward a summary report reflecting the population of the municipality, housing backlog, housing stock before 1994, houses that required rectification, the role played by Housing Development Agency in the acquisition of land and the role played by the private sector. Day 5 (5 August 2010) Meeting with the Minister of Human Settlements The delegation held a meeting with the Minister of Human Settlements, Mr TMG Sexwale, who gave a brief overview of what was happening within the department. The Minister indicated the following: The President showed a keen interest in human settlements as most of the complaints reaching the Presidential hotline were about housing challenges. He informed the delegation that the department had to be elevated to be one of the top priority departments due to its expanded mandate, as well as challenges encountered by the country in relation to the unrest and protests. During a special Cabinet Lekgotla, a presentation was made about outcomes that the President had put forward. Delivery agreements would be signed soon and the first Presidential Coordinating Council (PPC1) has been established (Human Settlements) 14 FEBRUARY 2012 PAGE: 301 of 447 The department was requested to deliver a presentation on the perspective of spatial planning at the national planning seminar. The National Planning Commission would prioritise eight objectives and design its national integrated plan and the Department of Human Settlements would feed into its plan. There was a need for new cities to be built in the democratic era. The construction of bulk infrastructure services was a huge challenge that requires urgent attention by government. The housing backlog which was due to growth in informal settlement dwellings, as well as farm evictions, was also cited as a burden to government. Another concern was the issue of slow growth in Cape Town and Gauteng that required R3 billion for bulk infrastructure. The Minister further informed the delegation that he would meet with farmers to address housing issues affecting farm worker/farm dwellers. The leader of the delegation welcomed the briefing by the Minister. She stated that the Portfolio Committee was committed and willing to provide support to the initiatives and programmes of the department. The delegation shared with the Minister its observations during the site visits, as follows: Bulk infrastructure was a challenge that delayed most projects and the roll-out of basic services. Overloaded sewer systems were also a challenge. The City of Johannesburg indicated that there were no short-term plans in place to overcome the sewer challenges. Lack of co-ordination and co-operation by spheres of government. Inadequate budgets to start projects. Unoccupied houses that were exposed to vandalism and theft 14 FEBRUARY 2012 PAGE: 302 of 447 people benefited in government subsidy houses whereas they were not qualifying r as well as those members of the community that owned more than one house. This showed that there was lack of monitoring in the allocation process. The selling or renting of government subsidy houses was also alarming. The illegal occupation of government subsidy houses in some areas was not acceptable as the rightful owners with title deeds were on the street. This needed to be addressed. Challenges of affordability by the people who live in converted hostels needed to be addressed. Most people are elderly and depend solely on a pension to survive. The policy on the conversion of hostels needed to be reviewed. Meeting at and site visit to Alexandra Renewal Programme (ARP) The delegation was welcomed by Councillor Maseko of Ward 75. Mr J Sithole ARP Chief Executive Officer briefed the delegation on the progress made by the renewal programme. He informed the delegation that: there were 1 229 subsidy houses and 1 695 affordable rental stock in Ext 9 (K206). there were 1 389 RDP (government subsidy) houses in Ext 7. In Eastbank there was a project to construct 520 affordable rental units with solar systems which would be administered by JOSCHO. there were 50 RDP (government subsidy) flats in Malboro Flats. The maintenance of the flats was a challenge. The plan was to convert them into rental stock. there were 96 social housing houses and 286 affordable rental units at M2 Hostel. A contractor who was appointed to finalise the project went bankrupt. 181 units were built in Ext 8. However, conflict arose between the surrounding communities and hostel dwellers. 14 FEBRUARY 2012 PAGE: 303 of 447 Old Alexandra has 350 social houses and is perceived as a violent area. The project manager planned to build 82 temporary relocation units on the nearby vacant land. The challenge is that these hostels have been ignored for several years and the number of people living there has doubled in numbers. Deliberations The delegation was concerned about JOSCHO who seemed to be the only company administering projects. The lack of co-operation by the province in ensuring that the renewal programme was a success would need to be taken forward as the life of ARP was very important and required dedicated resources to be channelled by respective departments as well as the provincial department. The Portfolio Committee would need to engage with the Minister at national level. The lack of resources needs to be addressed and the private sector should play a role. The people who were refusing to relocate were a challenge and ARP needed to have a plan in place as the houses would be vandalised. The lack of funding for such a huge project which was aimed at assisting the poor was condemned by the delegation. Mr Sithole further indicated that ARP was working with all the relevant departments and was trying to assist where possible, and that they were not paying for the services rendered. JOSCHO is a company that works with the City of Johannesburg and argued that it charged better rates than others. The city was also meant to create Alexandra Property Management to assist with ARP projects. ARP was pleased with the work done and the quality of the units developed. ARP was going to operate as a project and not as an extension of the City of Johannesburg. Site visit to Banakekele Hospice 14 FEBRUARY 2012 PAGE: 304 of 447 Banakekele Hospice was the only hospice in Alexandra and had been servicing the surrounding areas since 2001. The hospice was operating in a warehouse and the rental had become too expensive to afford. The hospice had a staff complement of 27 people. Hospice management approached ARP to assist as it was struggling to acquire a building for its operations. ARP assisted the hospice by offering a school building which was vacant. Hospitals and clinics were referring their terminally ill patients to the hospice. The hospice was using a van (bakkie) to pick up the sick, the elderly and the disabled and transport them to the hospice. Hospice management indicated that the school premises were not suitable for such an operation. The hospice had land that needed to be developed, but funding was required. The delegation indicated that the matter would be reported to Parliament for further discussion and referral to other relevant committees. The delegation appreciated the assistance provided by ARP to the hospice. Meeting in Codevco offices Cosmo City was initiated by the Gauteng Department of Housing and the City of Johannesburg in late 1998. Codevco (Basil Read) were appointed as a preferred developer in 2000. After many years of court cases against objections to the development, Basil Read eventually broke ground in January 2005. Cosmo City was the first mixed-use, fully integrated sustainable housing development in South Africa. The mandate given to Basil Read was to develop a human settlement with a sustainable environment to educate communities on how to manage their houses and to develop a nursery to green the area. The Danish government donated solar panels for the area. In 2005, the eradication of three informal 14 FEBRUARY 2012 PAGE: 305 of 447 settlements started with the shacks that were in the river bank. Those who did not qualify for subsidy houses were then given an option of rental accommodation. Various sites were set aside by Codevco among other to business, churches, a school and for a police station. In Cosmo City, the land used to accommodate three informal settlements that were eradicated. The area comprised 60 000 households. A total of 12 500 units have been constructed on 1 105 hectares of land. The challenge was that the EIA took too long and the project required co-operation from all departments. Another challenge was that most of the people on the waiting list did not qualify for the government subsidy. Mention was made of other successful developments around the country. A similar project would be started in Cape Town. Site visit to Cosmo City The delegation had an opportunity to tour the newly-built community centre, low-cost houses, rental accommodation and mortgage bond houses. Cosmo City is a well-structured project that demonstrates integrated settlements. Day 6 (6 August 2010) Meeting with Ekurhuleni Municipality A Member of the Mayoral Council (MMC) welcomed the delegation. She believed that such a visit was an opportunity for the municipality to share the frustrations it faced daily. It was mentioned that a one-day visit was not enough for Ekurhuleni Municipality. She suggested that it would be reasonable to spend a week to oversee the situation in the area. Planning in the municipality takes long as the 14 FEBRUARY 2012 PAGE: 306 of 447 process is undertaken over and over, for example projects as from 1996 to 2005 were still not yet implemented as they have to wait until the other spheres of government directed funds for implementation. In regard to the protests within the municipality, several issues triggered the incidents, such as delays in upgrading the Thokoza hostels which were 60 years old and in a dilapidated state, the chemical toilets that were provided to the communities as well as the alleged unfair allocation of government subsidy houses. However, hostel upgrading has been in the Integrated Development Plans of the municipality for a long time but there was a lack of funds to accomplish the plans. Councillors find themselves in a difficult situation and are traumatised because the communities held them responsible for the delays. The Empilisweni informal settlement development progress was delayed as a result of a Constitutional Court judgment. The housing problem in the municipality was huge. The population in the area constituted 3,7 million with 122 informal settlements and 22 hostels. The number of the backyard dwellers was also extremely huge. The conditions of the hostels are terrible and upgrading of these hostels would costly. The upgrading of the hostel would cost the municipality about R6 billion. Ms E Ngobeni, Project Manager: Gauteng Department of Local Government and Housing, informed the delegation that 40% of land is dolomite to the extent that there was a possibility of demolishing Natalspruit Hospital due to the warning signs of the dolomite. Some parts are wetlands surrounded by lakes and others were privately owned. The municipality reported that the Minister of Human Settlements visited the area a year ago and offered R25 million for the immediate electrification of the hostels. The national department promised to transfer the money. However, at the time of the visit the money had not yet been transferred. To respond to the mounting pressure from the community, the 14 FEBRUARY 2012 PAGE: 307 of 447 municipality decided to scrape its reserves and fund the installation of temporary electrification of hostels at a cost of R12 million. . Backyard dwellers The municipality has set aside R700 million for land acquisition, but delays were caused by agreements between provincial departments and the HDA. The Operation Ziveze project did not assist in resolving housing challenges in the area; hence the waiting list is dated as far back as 1996. Challenges The following challenges were experienced: Ramaphosa – land donated by Iscor and people do not want to move. Mt Everest and kwa Thema – not enough resources to cover 7 000 people, however the area is well looked after Emavangeni kwa Thema - about 1200 people obtain title deeds but no funds to build their houses only 20 units to be constructed. Tswelopele in Ramaphosa and Eden Park - residence have occupied houses illegally In monitoring Bylaws compliance, the municipality does not have reaction unity and private companies required funding. Site visit Harry Gwala informal settlements (Beachfront) 14 FEBRUARY 2012 PAGE: 308 of 447 The delegation visited the area where 1 600 shacks were built close to the dam. The residents of the informal settlement were refusing to move to a safer area and claimed that they would be far from schools and their places of work. Some shacks were built at the edge of the road close to the dam (flooded area). The area is life threatening to communities. The houses that were built for the communities of Beachfront were completed and ready for occupation. The municipality feared that the houses would be vandalised and be the crime zone as houses stood empty for some time. Meeting at and site visit to Mshayazafe Hostel in Thokoza The hostel is in ward 52 and consists of 41 residential blocks with 6 800 tenants. The block is dilapidated to the extent that it will have to be demolished and the site would be converted to community residential units (CRUs). It is also surrounded by informal settlements. The municipality had appointed a contractor to provide maintenance and the department appointed a service provider to conduct pre-planning studies and detail designs in terms of the CRU policy. The temporary electrification has been installed in hostels 1 and 2 in such a manner that the substation and power cables can be re-used in future developments. Feasibility studies in phase 1 have been completed, and in phase 2 the Council for Geoscience has requested additional drilling to determine the dolomite conditions. Community facilitation was ongoing and the relocation plan was finalised. The municipality would develop a temporary relocation plan that should include the moving of 130 communities to temporary relocation units (TRUs) from Buyafuthi Hostel Complex to Thokoza hostels. The plan will outline which hostel will be demolished and where the TRUs will be placed. 14 FEBRUARY 2012 PAGE: 309 of 447 The plan will also list the activities with timeframes and costs. The provision of temporary services and security to the TRUs will also be part of the relocation plan. The municipality had the following challenges: Adverse dolomite conditions; Insufficient funding; Overpopulation in hostels; Determining the future rental amount Very limited TRUs The community informed the delegation that the Minister had visited the area in October 2009 and promised that an amount of R25 million would be transferred by the national department to electrify the hostel but to date the money was not yet received. It was indicated that the Ekurhuleni region has 22 hostels, all in terrible conditions, 122 informal settlements and backyard dwelling was also extremely huge. The land is dolomite, wetlands and most privately owned. The sewer system was in a decaying state. Observations The delegation observed the following: The deteriorating, aging bulk infrastructure was hampering development in the province. In Ivory Park informal settlements (e.g. Mafela 3 and 2) an average of five households occupied a single stand, which included access to a single, shared power point. This compromises the rights of other occupants to access basic services like electricity and further creates challenges for households to manage their budgets. 14 FEBRUARY 2012 PAGE: 310 of 447 Prior to 2004 in Diepsloot, houses were occupied illegally while the rightful owners were still living in informal settlements. Thus far, the province has not addressed the issue or assisted rightful owners to occupy their houses. There were approximately 64 hostels in the province and most of them were in a very poor state. To convert these hostels into community residential units (CRUs) would be a very costly exercise, and current residents who are mostly dependent of social grants would not be able to afford to pay the rent. About 90% of Orange Farm’s challenges were related to sewer connections due to service providers that are alleged to lack capacity. Furthermore, some contractors failed to complete projects. However, the province continued to award contracts to some of those alleged contractors. Access roads were also in a very poor condition. The Banakekele Hospice was hosted in an unused school building and was not suitable for persons in frail care and people with disabilities. The hospice acquired land, but required assistance with future funding for a formal structure and equipment. At Harry Gwala Beachfront approximately 1 600 shacks were situated on a floodplain next to a lagoon. The province allocated 305 new houses for the relocation of residents to a new area. However, residents refused to relocate, arguing that the new site was further away from their places of work and schools. The province was experiencing similar challenges to other provinces in respect of blocked projects, e.g. Kliptown, Lusaka Section in Ivory Park, Orange Farm, etc. However, the province categorically denied the existence of any blocked projects. In Lusaka Section shacks were erected under power lines and residents were exposed to electrical shocks on a daily basis. The situation was so dire that residents could not use metal eating utensils or push a wheelbarrow. 14 FEBRUARY 2012 PAGE: 311 of 447 In Silvertown the province provided residents with temporary relocation units (TRUs) made of corrugated iron. The delegation noted that corrugated iron is not a healthy alternative since it is either too hot during summer or too cold during winter. Alleged fraudulent and corrupt practices in the allocation of houses were raised sharply in all areas visited. Public participation remains a challenge, especially in the dissemination of information which is very inconsistent. The Lack of proper communication between councillors, the city and the province resulted in conflicts between ward councillors and communities. Recommendations The Committee recommends the following: To the Minister of Human Settlements: 1. To commission a special investigation of all human settlements challenges, including sanitation challenges facing the Orange Farm community due to the complexity and extent of the problem. A written progress report on the matter should be submitted to the Committee within three months after its report has been adopted by the House.. 2. To urgently intervene in relation to the Harry Gwala Beachfront informal settlement. The Committee is concerned about the physical safety of residents in the area because of the serious risk of flooding in the event of heavy rains. A written report on the matter should be submitted to the Committee within two months after its report has been adopted by the House.. 14 FEBRUARY 2012 PAGE: 312 of 447 3. To facilitate the policy review that will provide guidance, future strategies and funding strategies for the advancement and enhancement of the Alexandra Renewal Project. A written report on the matter should be submitted to the Committee within three months after its report has been adopted by the House.. 4. To fulfil the commitment made by the Minister to the Ekurhuleni Municipality for the electrification of Thokoza hostels. A written report on the matter should be submitted to the Committee within three months after its report has been adopted by the House. 5. To ensure that the national Department of Human Settlements: 5.1 Give urgent attention to bulk infrastructure in Gauteng by building new reservoirs and by upgrading existing sewer plants and reservoirs. This initiative requires co-operation from various departments. The department should report to back to the Committee in writing within three months after the report has been adopted by the House. 5.2 Initiate a strategy to assist the rightful owners of houses occupied illegally in Diepsloot and other areas by giving those people houses. A written report on the matter should be submitted to the Committee within two months after the report has been adopted by the House. 5.3 Provide an updated report of informal settlements in the Gauteng province and its strategic plans for the eradication and upgrading of such settlements and provide support to the households in Ivory Park by completing the houses that were left unfinished. A written report on the matter should be submitted to the Committee within three months after its report has been adopted by the House. 14 FEBRUARY 2012 5.4 PAGE: 313 of 447 Address the challenges of the Silverton TRUs urgently and attend to the allocation of units to legitimate beneficiaries. Those who cannot be accommodated in the area should be assisted by obtaining accommodation in other areas. A written report on the matter should be submitted to the Committee within three months after its report has been adopted by the House. 5.5 Consider the filling of vacant posts urgently. A written report on the matter should be submitted to the Committee within two months after its report has been adopted by the House. 5.6 Present a Report on Whistle Blowing Policy to the Committee within two months after its report has been adopted by the House. 5.7 Receive the human settlements development programme from the Evaton Municipality and submit it to the Committee within three months after the Committee’s report has been adopted by the House. 5.8 An urgent intervention is required by the three spheres of government to address the challenge of sewage in some of the informal settlements and Orange Farm. The department should submit a written report on the matter to the Committee within three months after the Committee’s report has been adopted by the House. It is recommend that the Portfolio Committee on Rural Development and Land Reform request the Minister of Rural Development and Land Reform: 6. To review policies that governs the issuing of title deeds to accommodate common and customary law. 14 FEBRUARY 2012 PAGE: 314 of 447 7. To consider the provision of family title deeds of pre-1994 housing stock in order to fast-track the transfer of such houses to the present occupants 8. To share the outreach programme initiated by the Registrar of Deeds in the Gauteng province (educating communities about the importance/necessity of being in possession of a title deed) with other provinces and also encourage them to implement the programme. 9. To assist the Ekurhuleni Municipality to access Transnet land which was donated by Iscor. It is also recommending that the Portfolio Committees on Social Development and Health request the Ministers of Social Development and of Health: 10. To provide financial support to the Banakekele Hospice for the construction of a proper facility on already-acquired land. 11. To provide funds to purchase the necessary equipment for the hospice. Report to be considered. CREDA INSERT - T120116e-insert2 – PAGES 28 - 47 3. Report of the Committee on the Auditor-General on the Budget and Strategic Plan of the Auditor-General for the 2012/13 Financial Year, dated 11 November 2011. 14 FEBRUARY 2012 PAGE: 315 of 447 The Committee on the Auditor-General, having considered the Budget and Strategic Plan of the Auditor-General for the 2012/13 financial year, report as follows: 1. INTRODUCTION Section 38 (1) of the Public Audit Act 25 of 2004 (PAA) requires that the affairs of the AuditorGeneral (AG) be conducted in accordance with a business plan and budget prepared by the AGSA for each financial. The budget must include estimates of revenue and expenditure, for the year to which it relates and the basis on which audit fees for the year to which the budget relates. Furthermore, section 38(2) of the PAA requires that the AGSA must at least six months before the start of a financial year submit the budget and business plan referred to in subsection (1) to the Committee on the AuditorGeneral (the Committee). Section 38(3) of the PAA regulates that the Committee as the oversight mechanism must consider the budget and business plan and within two months of receipt thereof submit its recommendations to the Speaker for tabling in the National Assembly (NA) and the National Treasury. The NA established the Committee as an oversight mechanism to monitor the performance of the Auditor-General. The AGSA’s strategic plan and budget forms a significant part of this Committee’s responsibility in meaningfully overseeing the activities of the Office of the Auditor-General. The mandate of the Committee is to assist and protect the AGSA and to ensure the independence, impartiality, dignity and effectiveness of the Auditor-General of South Africa (AGSA). This report aims to highlight the performance targets set for the achievement of the 5 commitments by AGSA and also highlights the projections of revenue and expenditure for the 2012/13 financial year. 14 FEBRUARY 2012 PAGE: 316 of 447 The report also indicates the increase on audit tariffs and the audit directives which were developed by the AGSA for consideration by the Committee. 2. STRATEGIC PLAN AND BUDGET OVERVIEW The AGSA has a constitutional mandate and as the Supreme Audit Institution (SAI) of South Africa, promises to strengthen the country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence. The AGSA commits to 5 predetermined measurable objectives in the 2012/13 financial year to discharge its constitutional mandate as a Supreme Audit Institution of the country. These predetermined objectives also centre on the realisation of clean audit outcomes to support the 2014 clean audit initiative for National, Provincial and Local Government. The AGSA as the Supreme Audit Institution (SAI) face the following challenges within the country and in the global arena: The increasing number of government priorities and the achievement of clean audits. Therefore, the AGSA committed to encourage improvement that extends beyond financial accountability; The AGSA also committed to meet international requirements to greater demand from SAIs to provide feed-back on the status of service delivery. The strategic plan and budget of the AGSA also gears to meet this challenge; The AGSA’s budget provides for the discount of the audit fees as the AGSA charges lower audit fees compared to the market rate; and 14 FEBRUARY 2012 PAGE: 317 of 447 Another challenge is the collection of audit fees, in which the adverse economic conditions pose a risk to achieving the recovery costs through timely collection of audit fees. At the same time the AGSA has to discount its audit tariff by R40 million amounting to 1.5 per cent of the annual revenue from the market rate increase of 7.1 per cent in the 2012/13 financial year. 3. PREDETERMINED OBJECTIVES 3.1 Simplicity, clarity and relevance of messages In order to determine where it is going and how it will get to its destination, the AGSA developed a document with goal setting known as the Strategic Plan. The development of goals is a key step in effective strategic planning. These goals are written targets which AGSA commits to achieve in the 2012/13 financial year. The AGSA strategic plan presents the following commitments: Simplicity, clarity and relevance of reports These commitments aim to identify root causes and also make recommendations. The AGSA set a target at 3 points to a 1 to 4 rating scale on clear communication of relevant root causes and recommendations to the AGSA’s stakeholders. The performance indicators of this objective will be the quality of reports, management reports, dashboard reports, general reports or other communication such as presentations, and briefings. Committing to this objective, it is also adherence to fundamental requirement 4 of the International Organisation of Supreme Audit Institutions (INTOSAI) the framework for communicating and promoting the values and benefits of SAIs. INTOSAI requires that SAIs report in a language that is understood by stakeholders and allow the stakeholders act on those reports. 14 FEBRUARY 2012 PAGE: 318 of 447 3.2 Visibility of leadership The AGSA committed to develop stakeholder relationships so as to encourage clean administration. A target is set at 3 points within the scale of 4 points to pursue high quality, value-adding where stakeholder interactions are conducted and intensified. The actual performance will be indicated by providing information through stakeholder interactions on quarterly basis, road-shows and presentation of experience. The AGSA leadership will share the audit outcomes of the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (MFMA) auditees with the legislative arms of government as well as structures such as the Association of Public Accounts Committees (APAC), the South African Local Government Association (SALGA) and the Speakers Forum. In this objective the AGSA observes the fundamental requirement 13 of the INTOSAI which requires that SAIs strengthen communication with stakeholders for better understanding of the SAI’s responsibilities, audit work and results. 3.3 Strengthen human resources In this objective the AGSA promises to have a motivated, high performing and diverse workforce in which aims to achieve the culture index by 3.2 points, leadership index by 3.2 points and employee engagement index by 3.2 points. A target is set at 3.2 points for each index which is within the industry norm of 5 points. The performance indicator will be the results of the conducted survey, focus group interviews and other assessments rated according to the Likert scale of 5 points from 1 to 5. The achievement ascribes to mainly relevant skills and matching competencies, implementation of learning and 14 FEBRUARY 2012 PAGE: 319 of 447 development unit to close knowledge and skills gaps for all employees, executive development, enhancement of the total performance of performance management system, growing own talent through the Trainee Audit Scheme, and deepening public sector insight and knowledge. The AGSA commits to adhere to fundamental requirement 10 of the INTOSAI which requires that SAIs ensure that they have appropriate resources to perform their work in accordance with relevant standards and other requirements. 3.4 Leading by example The AGSA in this objective devotes to continual improvement of the quality and timeliness of the AGSA reports, adherence to standards of excellence for clean administration, maximise the AGSA’s contribution to transformation. Targets were as follows: A target is set at 87 per cent for adherence to all quality standards of audit reports, the performance will be indicated by the results of the quality control assessment; A target is also set at 3 points for adherence to all quality standards of non-audit deliverables which will be indicated on a 4 point rating scale from 1 to 4; A target is set at 100 per cent for complying with the statutory and legislative deadlines for submission of strategic plan and budget, annual report, and general reports; Complying with statutory and legislative deadlines for performance audit and investigation, a target is set at 95 per cent; 14 FEBRUARY 2012 PAGE: 320 of 447 The AGSA also promises to achieve clean audit report which the actual performance will be indicated by an audit report of the independent auditor; For timeliness of regulatory audits a target is set at 90 per cent; The actual performance will be indicated by a project tracking tool; To maximise the AGSA’s contribution to transformation a target is set at 3 points for achieving and identifying the Broad Base Black Economic Empowerment (BBBEE) rating plan. The achievement of this target is attributed to engagement session with all relevant stakeholders on the AGSA’s BBBEE strategy, the Corporate Social Investment (CSI) focusing on rural schools programme, implementation of a high-level 3 year plan on enterprise development, implementation of the BBBEE plan and focusing on preferential procurement employment, management control and skills development; and Committing to this objective the AGSA also adheres to fundamental requirement 11 of the INTOSAI which requires that SAIs adhere to the same appropriate rules and philosophy that SAIs expect from auditees as a minimum to promote good governance. 3.5 Funding The AGSA commits to execute its mandate economically, efficiently and effectively in this objective. A target is set at 2.07 per cent of the revenue for achieving a net surplus. The actual performance will be indicated by the conclusion of the analysis of the income statement at the end of 2012/13 financial year. 14 FEBRUARY 2012 PAGE: 321 of 447 A target is also set at 45 days from voucher date for payment of the AGSA’s creditors. The actual performance of this target will be indicated by the analysed ageing report of creditors. Targets are also set for debt collection in the following categorised manner: Debt collected within 30 days from the national departments, Gauteng and the Western Cape provinces, a target is at 75 to 80 per cent; For debt collected within 30 days from Limpopo and KwaZulu Natal (KZN), a target is set at 65 to 70 per cent; and North West, Free State, Northern Cape, Eastern Cape and Mpumalanga a target is set at 55 to 60 per cent for debt collection within 30 days from the date of invoice. The indication of actual performance will be an analysed ageing report of debtors. A target for occupancy level is set at 85 per cent which will be indicated by the staff occupancy rate report from the PeopleSoft management system. The achievement of funding objective ascribes to interventions to debt collection and improvement of cash flow, generating sufficient surplus, limit the increases in audit tariffs, and evaluating and testing the appropriateness of implementing the planning and budgeting tool in the PeopleSoft Enterprise Resource Planning (PSERP). The predetermined objectives of the AGSA are presumed to be effective because they are specific, measurable, targeted and tied to a deadline. 4. BUDGET The AGSA’s budget is an itemised forecast of income and expenditure for 2012/13 financial year. The main purpose of budgeting is that the AGSA estimates whether it can continue to operate with its 14 FEBRUARY 2012 PAGE: 322 of 447 projected income and expenses. Moreover to determine whether the AGSA will make a surplus or suffer a deficit at the end of the financial year. Section 38(1) of the PAA requires that the affairs of the AGSA must be conducted in accordance with a budget and business plan prepared by the AGSA for each financial year which must include estimates of revenue and expenditure, for the year to which it relates. In order to adhere to the requirements of the section 38(1) of the PAA, the AGSA compiled and attached its budget to the strategic plan for 2012/13 financial year. The AGSA indicates the financial highlights in its budget document as follows: Item Revenue Less: direct audit cost Gross profit Add: other income Less: other expenses Net surplus for 2012/13 financial year Rands 2,226,031 (1,545,969) 680,062 73,546 (707,609) 45,999 14 FEBRUARY 2012 PAGE: 323 of 447 Revenue – is income that the AGSA receives from its audit service, usually from the audit fees. In AGSA’s context revenue includes own hours revenue, and contract work revenue which is projected to R2.2 billion for the 2012/13 financial year. Direct costs – are the expenses that are directly attributed to audit service in the perspective of the AGSA which is projected to R1.5 billion for the 2012/13 financial year. Gross profit – in the AGSA’s context gross profit is a variance between revenue and the cost of providing audit service, before deducting overhead (indirect cost), taxation, and interest payment which is projected to R680 million for the 2012/13 financial year. Other income – is income from the AGSA’s activities other than audit service (audit fees) such as investment interest, foreign exchange gains, and profit from the sale of non-inventory assets which is estimated to R73.5 million in the 2012/13 financial year. Other expenses – are the expenses that are not related to audit service such as interest expense, and administrative expenses which are projected to R707.6 million. Net surplus – is a profit remaining after subtracting the operating expenses, and interest payment which is estimated to R46 million or 2.07 per cent for the 2012/13 financial year. The following upward adjustments on human resource related compensation: Bonus provision amounting to R22.58 million; Leave provision amounting to R2.5 million; Group life cover amounting to R0.5 million; Unemployment Insurance Fund (UIF) amounting to R0.4 million; and 14 FEBRUARY 2012 PAGE: 324 of 447 Long service award amounting to R4.2 million. 5. RECOMMENDED AUDIT TARIFFS Section 23(1) of the PAA requires the AGSA determines the basis for the calculation of audit fees to be recovered from auditees in respect of audits performed by the AGSA, after having consulted the oversight mechanism (the Committee) and the National Treasury. Adhering to section 23(1) of the PAA, the AGSA recommended increase of tariffs rate in its strategic plan for 2012/13 which is calculated based on average staff costs per band and interval, mark up factor and recoverable hours. Despite the fact that the AGSA set a target of 2.07 per cent of revenue to achieve net surplus in 2012/13 the AGSA discounted its tariff rate from 7.1 per cent market rate to 5.6 per cent by 1.5 per cent amounting to R40.5 million. The increase in the average charge rate is determined by salary increase of 8.6 per cent in 2012/13 compared to 8.12 per cent for 2011/12. The 5.6 per cent of audit tariffs adjustment is influenced by the average staff costs per band and interval, mark up factor and recoverable hours. 6. AUDIT DIRECTIVES Section 13(1) of the PAA requires that the AGSA, after consulting the oversight mechanism, must determine: The standards to be applied in performing audits which the AGSA must perform or opts to perform; The nature and scope of such audits; and Procedures for the handling of complaints when performing such audits. 14 FEBRUARY 2012 PAGE: 325 of 447 Section 13(2) of the PAA regulates that in setting standards the AGSA must take into account all relevant factors, including: Best auditing practices, both locally and internationally; and The capacity of the AGSA and the auditing profession to comply with those standards. Section 13(3) of the PAA requires that the AGSA may: Make different determinations on audit standards to be applied, nature and scope of audit, and procedures for the handling of complaints when performing audit for different categories of audits based on recognised best practice; or Issue specific directives on these matters in any specific case. The AGSA attached the General Notice XX of 2011(audit directive document) to the strategic plan for the 2012/13 financial year for consideration by the Committee as required by section 13(1) of the PAA. 7. CONCLUSION The increase on AGSA’s budget and audit tariffs are driven by the cost of upward adjusted targets of predetermined objectives and the vision of AGSA in 2012/13. It should be noted that the AGSA was nominated as a worthy recipient of the prestigious Jorg Kandutsch Award at the XX International Conference of Supreme Audit Institutions (INCOSAI) held in Durban in November 2010. INTOSAI presents the Jorg Kandutsch Award to a SAI that 14 FEBRUARY 2012 PAGE: 326 of 447 distinguishes itself through significant achievements and contributions in the field of public auditing. The Committee congratulates the AGSA on this achievement. 8. RECOMMENDATIONS The Committee makes the following recommendations: That the House approves the Strategic Plan and Budget 2012-2013 of the Auditor-General of South Africa; That the House approves the AGSA Audit tariffs schedule for the 2012/2013 financial year and That the House approves the AGSA Audit directive for the 2012/2013 financial year. Report to be considered. 4. Report of the Committee on the Auditor-General on the Annual Report of the AuditorGeneral for the 2010/11 financial year, dated 11 November 2011. The Committee on the Auditor-General, having considered the Annual Report of the Auditor-General the 2010/2011 financial year, report as follows: 1. INTRODUCTION The Constitution of the Republic of South Africa (Act No. 108 of 1996) requires state institutions supporting democracy to be accountable to the National Assembly (NA), and to report on their activities and the performance of their functions to the Assembly at least once a year. In addition, section 10(1) of the Public Audit Act (PAA) No. 25 of 2004 requires the Auditor-General of South 14 FEBRUARY 2012 PAGE: 327 of 447 Africa (AGSA) to report annually to the National Assembly on his or her activities and the performance of his or her functions. The NA established the Committee on the Auditor-General (the Committee) as an oversight mechanism to monitor the performance of the Auditor-Genera of South Africa. The AGSA’s annual report forms a significant part of this Committee’s responsibility in meaningfully overseeing the performance of AGSA’s Office. The Auditor-General of South Africa is the Supreme Audit Institution of the Country. Section 181 (1) (e) of the Constitution establishes the AGSA as the institution that strengthens constitutional democracy in South Africa. The governing principle vested upon the AGSA by section 181 (2) of the Constitution states that the AGSA is independent, and subject only to the Constitution and the law, and it must be impartial and must exercise its powers and perform its functions without fear, favour or prejudice. Section 4 of the Constitution prescribes that no person or organ of state may interfere with the functioning of the AGSA. Section 181 (5) of the Constitution provides that AGSA is accountable to the National Assembly (NA), and must report on its activities and the performance of its functions to the NA at least once a year. Section 181 (3) of the Constitution requires that one of the organs of state, through legislative and other measures , must assist and protect the AGSA to ensure the independence, impartiality, dignity and effectiveness of the AGSA. Hence, the mandate of the Committee, it stems from section 181 (3) of the Constitution. The mandate of the Committee is to assist and protect the AGSA to ensure its independence, impartiality, dignity and effectiveness. 1.1 Statutory functions of the AGSA The mandate and functions of the AGSA are prescribed in the Constitution. Section 188 (1) of the Constitution states that the AGSA must audit and report on the accounts, financial statements and financial management of all national and provincial state departments and administrations; all 14 FEBRUARY 2012 PAGE: 328 of 447 municipalities, and any of the institutions or accounting entities required by national or provincial legislation to be audited by the AGSA. The AGSA has the additional powers and functions prescribed by national legislation (Public Audit Act 25 of 2004). The Public Audit Act 25 of 2004 (PAA) - gives effect to the provisions of the Constitution which is establishing and assigning functions to the Auditor-General to provide for the auditing of institutions in the public sector; to provide for accountability arrangements of the AGSA; to repeal certain obsolete legislation; and to provide for matters connected therewith. 1.2 Corporate governance structures of the AGSA Corporate governance refers to the process and structures for overseeing the direction and management of the AGSA in order to carry out his or her mandate and objectives effectively. The legislative framework for the governance and accountability systems of the AGSA is set out in the Constitution and the PAA. Governance structures in the context of the AGSA comprise of the Committee, Audit Committee (AC), Executive Committee (EXCO), Remuneration Committee (Remco) and Quality Control Assessment Committee (QCAC). The Committee was established in terms of section 55 (2) (a), and (b) (i) (ii) of the Constitution which prescribes that the NA must provide for mechanism - to ensure that all executive organs of state in the national sphere of government are accountable to it; and to maintain oversight of any organ of state. Therefore, the Committee was established in terms of the constitution and the Rule 208A of the NA. Section 10 (3) of the PAA requires that the NA must provide for a mechanism to maintain oversight over the AGSA in terms of section 55 (2) (b) (ii) of the Constitution. The governance functions of the Committee are indicated as follows: 14 FEBRUARY 2012 PAGE: 329 of 447 The Committee must consult the person recommended in terms of section 193 of the Constitution for appointment as AGSA and make recommendation to the President for the determination of the conditions of employment of that person, including an appropriate salary, allowance and other benefits (Section 7 (1) of the PAA); must maintain oversight over the AGSA. (Section 10 (3) of the PAA); must be consulted by the AGSA before, the AGSA issue a code of conduct for authorised auditors (Section 12 (3) of the PAA); The AGSA must consult the Committee before it determines the standards for audit (Section 13 (1) of the PAA); The AGSA must consult the Committee after the AGSA determined the basis for calculation of audit fee (Section 23 (1) of the PAA); The AGSA after consulting the Committee must appoint a person with appropriate qualifications and experience as the Deputy Auditor-General (Section 31 (1) of the PAA); The AGSA must at least six months before the start of financial year submit its budget and business plan to the Committee for consideration (Section 38 (2) of the PAA); The AGSA must submit the annual report, the financial statements, and the audit report on those statements within six months after the financial year to the Committee and the Speaker of the NA for tabling in the NA (Section 41 (1) of the PAA); 14 FEBRUARY 2012 PAGE: 330 of 447 The AGSA may, after consultation with the National Treasury and by agreement with the Committee, at the end of a financial year, retain for working capital and general reserve requirements, any surplus as reflected in the financial statements or a portion thereof. The portion of a surplus not retained must be paid into the National Revenue Fund (Section 38 (4) of the PAA); and The Committee must annually appoint an independent external auditor to audit the accounts, financial statements, and financial statements, and financial management and performance information of the AGSA (Section 39 of the PAA). Audit Committee – Section 40 (1) of the PAA requires that the DAG must establish an audit committee and appoint its members in consultation with the AGSA. Contemplated in section 43 (3) (b) (ii) of the PAA states that the AGSA must maintain a system of internal audit under the control and direction of an audit committee. The Audit Committee must in the annual report comment on – the effectiveness of internal control; and its evaluation of the AGSA’s annual financial statements; and it may communicate any concerns it may have to the AGSA, external auditor of the AGSA and the Committee (Section 40 (6) (a) and (b) of the PAA). Executive Committee – The PAA gives both the AGSA and the DAG the authority to delegate any power and duty assigned to them to any member of staff. The Executive Committee was established to assist the DAG to manage the business and affairs of the organisation in terms of the delegation of authority as per the AGSA’s management approval framework. The Executive Committee is composed of the DAG as chairperson and the corporate executives, meets on average eight times during the year and holds special meetings at regular intervals. The Executive Committee focuses on 14 FEBRUARY 2012 PAGE: 331 of 447 reviewing and directing the implementation of the AGSA’s business and strategic plans throughout the year. Remuneration Committee – Human resource management and related issues, including terms and conditions of employment, must be dealt with in accordance with generally accepted human resource practice and applicable labour legislation through appropriate management, consultative and, where applicable, negotiation processes. [section 35 of the PAA] Therefore, the AGSA established the Remuneration Committee (Remco) to provide specialised advice on remuneration and related issues. This Committee plays an advisory role and the final decision-making power rests with the AGSA. Remco reviews and makes recommendations on the following issues: General trends and practices regarding employment benefits, including the structuring of conditions of employment and remuneration packages; The framework or broad policy for the remuneration of executive and senior management; Targets and rules for any performance-related pay schemes, whether current or proposed. General Salary increase; and Any other human resource management issue which the AGSA may wish to table for discussion. Note: Remco also advises the Committee on the AGSA’s conditions of employment. 14 FEBRUARY 2012 PAGE: 332 of 447 Quality Control Assessment Committee is an internal oversight body that assists the AGSA and DAG to accomplish their responsibilities in implementing a system of quality control in the AGSA. Its mandate stems from the policy on monitoring of quality control to ensure adherence to standards as per section 13 (1) (a) of the PAA, which states that the AGSA, after consulting the Committee, must determine the standards to be applied in performing audits which the AGSA must perform in accordance with section 11 of the PAA. 1.3 Accountability by the AGSA Section 10 (1) of the PAA requires that, the AGSA must annually submit a report to the NA on his or her activities and the performance of his or her functions, including: The standards to be applied to audits as determined in terms of section 13 (1) of the PAA which states that the AGSA, after consulting the oversight mechanism (the Committee). The report of his or her overall control of the AGSA’s administration in terms of section 30 (2); and The annual report, the financial statements and the audit report on those statements in terms of section 41 (1) which prescribes that the Deputy Auditor-General (DAG) must for each financial year prepare an annual report and financial statements, including cash-flow information, which fairly present the state of affairs of the AGSA, including its business, financial results, performance against pre-determined objectives and financial position as at the end of the financial year. 14 FEBRUARY 2012 PAGE: 333 of 447 Section 41 (5) requires that the AGSA must submit the annual report, the financial statements and the audit report on those statements within six months after the financial year to which they relate to the oversight mechanism (the Committee) and to the Speaker for tabling in the NA. The main purpose of this report is to evaluate the AGSA’s performance as part of the Committee’s oversight responsibility and a deepening understanding of key strategic and operational objectives achieved, as set out in the strategic plan and budget of the AGSA. 2. ANALYSIS AND FINDINGS 2.1 Auditor-General’s remarks The AGSA pointed out in his address to the Committee, that the auditing to build public confidence has inspired the AGSA to stay focused and improve its business processes. He further emphasised that the AGSA’s actions are driven by an appetite to realise good governance and clean administration, not only for the benefit of auditors, but for the greater good of the country. The AGSA appreciated the support of government in responding on time to AGSA’s invoices, as this contributed positively to AGSA ability to carry out its mandate independently. The AGSA continue to work with the provincial leadership to resolve the local government debt collection challenges that still remain in some of the provinces. The AGSA highlighted that AGSA’s centenary milestone is yet another testimony to the capacity that has developed over the years to sustain the mission and constitutional mandate of the AGSA with renewed levels of excellence. These are outstanding contributions that gave rise to the nomination of the AGSA as a worthy recipient of the prestigious Jorg Kandutsch Award at XXth International Conference of Supreme Audit Institutions (INCOSAI) in November 2010. The International 14 FEBRUARY 2012 PAGE: 334 of 447 Organisation of Supreme Audit Institutions (INTOSAI) presents this award to a Supreme Audit Institution (SAI) that distinguishes itself through significant achievements and contributions in the field of public auditing. The recipient must have a sound organisational structure and innovative working methods; adhere to INTOSAI’s Strategic Plan; obtain positive results by introducing effective audit systems of public revenues and expenditures; and assist other INTOSAI members. 2.2 Deputy Auditor-General’s Role The Deputy Auditor-General (DAG) is the Accounting Officer in the administration of the AuditorGeneral. (Refer to section 43(1) of the PAA). The DAG in his review report to the Committee stressed that the overall objective of independent audits is to make a difference in the lives of citizens by contributing to trust, efficiency and effectiveness. Therefore, an independent and effective SAI is accordingly a necessary precondition for democracy. Since his appointment in 2007, he has been responsible for the overall performance of AGSA and directly accountable to the AGSA. The DAG appreciated the fact that AGSA’s performance over the past year was exemplary and also acknowledged the support, cooperation and guidance received from AGSA’s oversight structures during the financial year. 2.3 Non-financial performance The non-financial performance in this report is based on measuring actual performance against targets set on the following predetermined objectives as indicated in the AGSA’s strategic plan for 2010/11 financial year: 14 FEBRUARY 2012 PAGE: 335 of 447 2.3.1 Simplicity, clarity, and relevance of message of the AGSA’s reports – committing to this objective adhere to INTOSAI framework for communicating and promoting the value and benefits of Supreme Audit Institutions. For the 2010/11 financial year, the AGSA set a target at 100 per cent to achieve this objective. At the end of the year under review, the AGSA achieved this target by 100 per cent. The achievement is indicated by commitments from different stakeholders, including legislative oversight, the executive, accounting officers and coordinating ministries, to address the root causes of audit outcomes. 2.3.2 Visibility of Leadership – The AGSA committed to fundamental requirement 13 of INTOSAI, as the AGSA promised to improve visibility of its leadership to stakeholders through clear communication. The performance target for the year under review was set at 100 per cent to achieve high-quality, value adding stakeholder interactions. The AGSA achieved the target as promised in the strategic plan for the 2010/11 financial year. The fulfilment of this objective is shown by annual PFMA and MFMA road-shows that the AGSA leadership shared the audit outcomes of PFMA and MFMA audit cycles with both the executive and legislative arms of government as well as structures such as the Association of Public Accounts Committees (APAC), the South African Local Government Association (SALGA) and the Speakers’ Forum. 2.3.3 Leading by example – The AGSA promised to lead by example on matters of risk management, internal controls, transformation and quality and timeliness of the AGSA’s products as encouraged by fundamental requirement 11 of INTOSAI. 14 FEBRUARY 2012 PAGE: 336 of 447 Targets were as follows: A target set was to achieve clean audit report by the AGSA and the clean audit report was achieved. The achievement is proven by an independent assurance on risk management measures, internal and external auditors reviewed the adequacy and effectiveness of the AGSA’s processes, policies and controls. The AGSA’s measures to track audit findings ensured that all corrective actions were implemented timorously, thus reduced the rate of repeating audit findings from internal and external auditors. Another target was set at level 4 rating for achievement of identifying Broad Based Black Economic Empowerment (BBBEE). The target was exceeded as the AGSA achieved level 3 contributions to BBBEE. This achievement is indicated by the certification of Empowerdex which evaluates the contribution to BBBEE. Committing to developmental role in the auditing profession, the AGSA increased its actual spending on private firms by 7 per cent to R543 million, of which 57 per cent was spent on the growth and development of small and medium accounting and auditing firms. Another target was set at 85 per cent on regulatory audit for adhering to quality standards. But the AGSA did not achieve the target as its performance fell to 77 per cent that is below 85 per cent target which was set for the 2010/11 financial year. However, 77 per cent achievement is still above the industry benchmark of 75 per cent. The challenge in achieving the target was the first-time implementation of clarified international standards on auditing, which required new working papers. In addition, municipalities implemented the full Generally Recognised Accounting Practice (GRAP) framework and audited for the first-time on reporting against predetermined objectives. 14 FEBRUARY 2012 PAGE: 337 of 447 Another target was set at 90 per cent for auditing and submission of PFMA reports to comply with statutory and legislative deadlines by the AGSA. The AGSA exceeded the target as achieved 96 per cent of PFMA audit reports within the legislated timeframe. The achievement is evidenced by the completion and submission of PFMA audit reports within two months of receipt of the financial statements by AGSA as required by section 40(2) of the PFMA. A target was also set at 90 per cent for auditing and submission of MFMA audit reports to comply with statutory and legislative deadlines by the AGSA. The AGSA exceeded the target by 7 per cent as completed 97 per cent of MFMA audits within the legislated timeframe. Achievement of this target is indicated by a number of audits that were completed and submitted to the accounting officers within three months of receipt of the municipal financial statements by the AGSA as required by section 126(3) of the MFMA. For investigations a target was set at 95 per cent, but the actual performance fell below at 50 per cent, the target was not achieved. 2.3.4 Strengthen human resources - The AGSA promised in 2010/11 strategic plan to strengthen its human resource strategy, with particular focus on the comprehensive trainee auditor scheme in line with fundamental requirement 10 of INTOSAI for service excellence and quality considerations. The AGSA also planned to attract and retain more women in senior positions and persons with disability across all levels of the organisation. Target was set at 80 per cent of occupancy levels. This target was exceeded as the AGSA achieved 89 per cent. The achievement ascribed mainly to the establishment of a Recruitment Centre of Excellence to deal with scarce skills in the auditing environment, a trainee auditor retention strategy and a 14 FEBRUARY 2012 PAGE: 338 of 447 comprehensive salary benchmarking in the market. Achievement also attributed to increased numbers of audit professionals who passed their final qualifying examinations and completed their practical experience by 73 per cent from the 2009/10 financial year. 2.4 Financial performance With regard to financial performance, the following were noted: 2.4.1 Funding model – Management committed to run the organisation economically, efficiently and effectively and in accordance with laws and regulations to ensure financial sustainability and report publicly on these matters. This commitment adheres to fundamental requirement 8 of transparency and accountability derived from INTOSAI framework for communicating and promoting the value and benefits of SAIs. Furthermore, the following was noted with respect to financial management: Net surplus – a target was set at 4 per cent (R69 million) for the 2010/11 financial year. The target was exceeded by 3.2 per cent as the AGSA achieved 7.2 per cent (R133 million). This is a great achievement compared to R99 million achieved in 2009/10 financial year. Debt collection is still a challenge – the following table indicates major categories of debtors excluding accrual debts that are maturing after 31 March 2011: Auditee Rm Days outstanding National departments 44 13 14 FEBRUARY 2012 PAGE: 339 of 447 Provincial departments 94 27 Local departments 159 204 Statutory bodies 47 91 Total amount R344 Source: The AGSA (2011) The above table highlights that these auditees should have paid the amounts of audit fees that are indicated in the second column before 31 March 2011 as they already overdue by the number of days that are reflected in the last column. Credit payment terms – the AGSA committed to pay its creditors within 45 days in the 2010/11 financial year. The actual performance indicates that the AGSA honoured its creditors within 34 days exceeding the target committed to by 11 days. Given the number of days which audit fees are outstanding, it could be a risk that the AGSA is exposed to run short of cash as the AGSA pays its creditors within 34 days compared to overdue audit fees by 13, 27, 91 and 204 days. 2.4.2 Financial position – the information was extracted from the audited balance sheet (statement of financial position) of the AGSA. The statement of financial position summarises the finances of the AGSA as at the end of the 2010/11 financial year as follows: Item R’000 Non-current assets 76,362 Current assets 717,033 Total assets 793,395 14 FEBRUARY 2012 PAGE: 340 of 447 The non-current assets, of the AGSA include property, plant and equipment owned and leased which their values are stated at cost less accumulated depreciation and adjustment for any impairment (defect) over the estimated useful life as follows: Computer equipment approximately 3 to 6 years; Motor vehicles at 5 years; Furniture and fittings approximately 6 to 15 years; Notebooks about 3 years; Office equipment about 3 years; and Leasehold improvements over the period of the lease. The depreciation charge for each period is recognised in the statement of comprehensive income. Certain items of communication equipment are leased for a period of two years. The average lease amounts to R272, 581 per month in 2011. Certain items of office equipment are leased for a period of three years at the average lease payments of R214, 533. The AGSA has operating leases for all of the premises occupied by its head office and regionally based staff in the major centres of the country. The office premises are leased for periods between two and 13 years. The average lease amounts to R3, 075,588 per month in 2011 and is expected to escalate to between 6.5 percent and 10 percent per annum. 14 FEBRUARY 2012 PAGE: 341 of 447 The AGSA also attained computer software licences (categorised under intangible assets) which are carried at cost less any accumulated amortisation (pay-off) and any impairment losses. Amortisation on cost is provided to write down the intangible assets over their useful lives as follows: Enterprise resource management system – PeopleSoft approximately 14 years; and Other software for the period of 3 years. Current asset is an asset in the balance sheet which can either be converted to cash or used to pay current liabilities within 12 months. It includes cash, cash equivalents, short term investments, receivable and inventory. Equity amounted to R341 143 000 and is the balance after all debts and obligations have been paid off. It includes outstanding debts that can be converted to cash in a short period of time or within a year. Item R’000 Non-current liabilities 82,254 Current liabilities 369,998 Total liabilities 452,252 Total equity and liabilities amounted to R793 395 000. 14 FEBRUARY 2012 PAGE: 342 of 447 2.4.3 Working capital – is the amount of money that an organisation has on hand or it will have in a given year. Working capital is calculated by subtracting current liabilities from current assets as reflected in the audited balance sheet of the AGSA for the 2010/11 financial year. The current liabilities of the AGSA includes the value of trade and other payables, provisions and finance lease obligation for the 2010/11 financial year and subtracted from the current assets which includes the value of trade and other receivables and cash and cash equivalents, calculated as follows: Item Current assets Less: Current liabilities Net current assets R’000 717,033 (369,998) 347,035 The working capital includes managing the relationship between the AGSA’s short-term assets and its short-term liabilities. The objective in calculating the working capital was to determine whether the AGSA is able to continue its operations and that it has sufficient cash flow to satisfy its maturing debt and upcoming operational expenses in the 2011/12 financial year. A positive net current asset indicates that the AGSA will not have difficulty in financing its debts and day-to-day operations. 2.4.4 Comprehensive income – with reference to the audited income statement (statement of financial performance) of the AGSA the purpose is to highlight the financial performance of the AGSA in the 2010/11 financial year as indicated in their income statement and it is summarised as follows: 14 FEBRUARY 2012 Item Revenue Less: Direct audit cost Gross profit Add: Contribution to overheads Total gross profit and contribution to PAGE: 343 of 447 R’000 1,850,432 (1,298,188) 552,244 36,738 588,982 o/heads Less: Indirect cost (502,794) Surplus from operations 86,188 Add: Interest received 56,541 Total surplus from operations and 142,729 interest received Less: Interest paid Net surplus for 2010/11 Source: the AGSA (2011) The total comprehensive income, as at 31 March 2011, was R113 117 000. (9,612) 133,117 14 FEBRUARY 2012 PAGE: 344 of 447 The AGSA rendered the international services in 2010/11 financial year and accumulated 1 per cent of total revenue. This is an achievement due to the fact that the AGSA policy directive requires that service rendered internationally should not exceed 5 per cent of the total revenue. The AGSA recorded R133 million net surpluses as at 31 March 2011. The income statement indicates how much money the AGSA generated and how well is performing. The high operating surplus means the AGSA has effective control of costs. 2.4.5 Statement of changes in equity – the objective of the statement of changes in equity is to demonstrate the movement in balances included in equity. The opening balance which is the closing balance of previous year agrees to the previous year’s (2009/10) audited financial statements. The closing balance for the year under review must also agree to the amounts reflected in the statement of financial position as per the following table: Item General Special Retained Reserve audit earnings/ services (accumulated reserve loss) Rm Rm Rm Opening Total Rm 129,412 4,964 (25,515) 108,861 (25,515) - 25,515 - balance at 1 April 2009 Transfer of accumulated loss to reserves 14 FEBRUARY 2012 PAGE: 345 of 447 Total comprehensive - 99,165 99,165 103,897 4,964 99,165 208,026 - - 133,117 133,117 103,897 4,964 232,282 341,143 - Income for 2009/10 Balance at 31 March 2010 Total comprehensive Income for 2010/11 Balance at 31 March 2011 Source: The AGSA (2011) A fund set aside to finance special investigations or audits for which the AGSA may not be able to recover the cost from a specific auditee. The special audit services reserve amount of R4, 964 has not been increased in the 2010/11 financial year. The AGSA indicated that the former Audit Commission instructed that the reserve should not be increased before further guidance is provided by the Committee which is established in terms of section 55 (b) (ii) of the Constitution. It prescribes that the NA must provide for mechanism to maintain oversight of any organ of State. The AGSA’s current funding model was introduced in April 2009; it has proven to be successful. 14 FEBRUARY 2012 PAGE: 346 of 447 2.5 Financial Risk Financial risk is an umbrella term for any risk associated with any form of financing, including the following: 2.5.1 Foreign exchange risk – the AGSA delivers a small portion of its audit services based on fixed sum contracts in foreign currencies. Trade accounts receivable include receivables of Euro 21,161 in the 2010/11 financial year in respect of services delivered in foreign currencies not hedged by forward exchange contracts. These balances have been translated at the year-end exchange rate of Euro 1 equal to R9.5286 in 2011 and Euro equal to R9.8329 in 2010. Included in the bank balances at 31 March 2011 is an amount of 471,249 USD, in 2010 2,429,484 USD. These balances have been translated at the year-end exchange rate of 1 USD equal to R6.7713 in 2011 and 1 USD equal to R7.3249 in 2010. The AGSA indicated that its policy does not take out forward cover on foreign exchange transactions. 2.5.2 Credit risk – credit risk is also called default risk that is the risk associated with a debtor going into default (not paying as promised). The creditor’s loss of receivables and interest result to decrease in cash flow, and increased the collection costs. The AGSA indicated that financial assets which potentially subject the AGSA to concentrations of credit risk consist principally of cash and short-term deposits which are placed with a financial institution with a short-term deposit credit rating of F-2 as well as with the Public Investment Corporation. 14 FEBRUARY 2012 PAGE: 347 of 447 The Public Investment Corporation is wholly owned by the South African Government and invests fund on behalf of public sector entities based on investment mandates set by each client and approved by the Financial Service Board. Trade receivables are presented net of the allowance for doubtful receivables. Credit risk with respect to trade receivables is limited to some degree to the constitutionally entrenched audit mandate of the AGSA. However, the AGSA has a significant concentration of credit risk with local government. All financial assets are unsecured. The carrying amount of financial assets included in the statement of financial position represents the AGSA’s exposure to credit risk in relation to these assets. Investment in the Public Investment Corporation is governed by the AGSA’s investment strategy which requires 95 per cent of funds to be invested in conservative money market instruments where the initial capital investment is guaranteed and the balance is cash. The analysis of debtors that are 30 days and over for 2011 and 2010 are indicated as follows: R165,558,000 in 2011 and R155,003,000 in 2010 of debtors, comprising 42.4 per cent in 2011 and 41 per cent in 2010 of total debtors in areas; and Local government arrears comprise R123, 953,000 in 2011, and R98, 405,000 in 2010 or 74.9 per cent in 2011, and 63.5 per cent in 2010 of total arrears. 2.5.3 Interest rate risk – the AGSA is also exposed to interest rate risk and effective interest rates on financial instruments include the following: 14 FEBRUARY 2012 PAGE: 348 of 447 Assets – trade and receivables and cash in current accounts and call account in PIC investments and foreign investment. The total financial assets that amounts to R717, 033; and Liabilities – interest bearing borrowings, trade and other payables. The total financial liabilities amount to R333, 972. 2.5.4 Liquidity risk – the AGSA has substantial cash balances at its disposal and minimum long-term debt which limits liquidity risk. Budgets are prepared on an annual basis to ensure liquidity risks are monitored. 3. CONCLUSION The AGSA has substantially achieved its targets in both non-financial and financial performance in the 2010/11 financial year. The independent auditor audited the predetermined objectives and the financial statement of the AGSA and expressed its opinion indicating that both predetermined objectives and the financial statement were fairly presented, in all material respects in accordance with the predetermined criteria and the regulatory requirements. The Audit Committee also expressed appreciation to the AGSA, DAG and management team for their dedication and support in improving the AGSA’s internal control environment. The AGSA subjected itself to review by the Independent Regulatory Board for Auditors (IBRA) for ensuring that developments in auditing, accounting and training take the AGSA’s public sector needs into consideration. Therefore a positive independent opinion confirms that information reported by the AGSA was credible. 14 FEBRUARY 2012 PAGE: 349 of 447 The Committee, having considered the surplus achieved by the AGSA for the 2010/11 financial year, hereby approves the said surplus. 4. RECOMMENDATIONS The Committee makes the following recommendations, that: the South African Local Government Association (SALGA) requests its affiliates to pay all outstanding audit fees owed to the Auditor-General of South Africa (AGSA) within the prescribed period. the AGSA provides the Committee with a detailed analysis on local government debtors including bad debt provisions and total debtors, on a quarterly basis; the AGSA continues with engaging the National Treasury, Cooperative Governance and Traditional Affairs (CoGTA), provincial leadership and non-paying auditees, in the current initiative to improve the collection of audit fees; and the AGSA retains the surpluses achieved of R232 million for the 2009/10 and 2010/11 financial years in order to partially fund current projects. Report to be considered. FRIDAY, 20 JANUARY 2012 ANNOUNCEMENTS 14 FEBRUARY 2012 PAGE: 350 of 447 National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Assent by President in respect of Bills (1) South African Post Office SOC Ltd Bill [B 2D – 2010] – Act No 22 of 2011 (assented to and signed by President on 14 December 2011). TABLINGS National Assembly and National Council of Provinces 1. The Minister of International Relations and Cooperation (a) Partnership Framework Agreement between the Republic of South Africa and United Nations Development Programme, tabled in terms of section 231(3) of the Constitution, 1996. (b) Explanatory Memorandum on the Partnership Framework Agreement between the Republic of South Africa and United Nations Development Programme. 2. The Minister of Police 14 FEBRUARY 2012 (a) PAGE: 351 of 447 Proclamation No 48 published in the Government Gazette No 34608 dated 19 September 2011: Notification by President in respect of entities identified by the United Nations Security Council, made in terms of section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004), tabled in terms of section 26 of the Act. (b) Proclamation No 52 published in the Government Gazette No 34625 dated 22 September 2011: Notification by President in respect of entities identified by the United Nations Security Council, made in terms of section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004), tabled in terms of section 26 of the Act. (c) Proclamation No 53 published in the Government Gazette No 34626 dated 22 September 2011: Notification by President in respect of entities identified by the United Nations Security Council, made in terms of section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004), tabled in terms of section 26 of the Act. (d) Proclamation No 57 published in the Government Gazette No 34660 dated 6 October 2011: Notification by President in respect of entities identified by the United Nations Security Council, made in terms of section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities, 2004 (Act No 33 of 2004), tabled in terms of section 26 of the Act. National Assembly 14 FEBRUARY 2012 1. PAGE: 352 of 447 The Speaker (a) The President of the Republic submitted the following letter dated 15 December 2011 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force Service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the 2011/2012 festive season. EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE This serves to inform the National Assembly that I authorised the employment of Seven Hundred and Sixty Two (762) South African National Defence Force (SANDF) personnel for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the 2011/2012 festive season. This employment is authorised in accordance with the provision of section 201(2)(a) of the Constitution of the Republic of South Africa, l996 read with Section 19 of the Defence Act (Act No 42 of 2002). The employment is for the period 01 November 2011 to 01 January 2012 14 FEBRUARY 2012 PAGE: 353 of 447 I will communicate this report to members of the National Council of Provinces and members of the Joint Standing Committee of defence and wish to request that you bring the contents hereof to the attention of the National Assembly. Yours sincerely signed His Excellency Dr Jacob Gedleyihlekisa Zuma President of the Republic of South Africa (b) The President of the Republic submitted the following letter dated 15 December 2011 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force Service in co-operation with the South African Police Service. EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE This serves to inform the National Assembly that I authorised the employment of One Hundred and One (101) South African National Defence Force (SANDF) personnel for service in co-operation with the South African Police Service to secure the 17th United Nations Framework Convention on Climate Change in Durban. This employment is authorised in accordance with the provisions of section 201(2)(a) of the Constitution of the Republic of South Africa, l996 read with Section 19 of the Defence Act 14 FEBRUARY 2012 PAGE: 354 of 447 (Act No 42 of 2002). The employment was for the period 21 November to 11 December 2011 I will communicate this report to members of the National Council of Provinces and members of the Joint Standing Committee of defence and wish to request that you bring the contents hereof to the attention of the National Assembly. Yours sincerely signed His Excellency Dr Jacob Gedleyihlekisa Zuma President of the Republic of South Africa (c) The President of the Republic submitted the following letter dated 12 December 2011 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force Service in fulfilment of the international obligations of the Republic of South Africa towards the Democratic Republic of the Congo. EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR SERVICE IN FULFILMENT OF THE INTERNATIONAL OBLIGATIONS OF THE REPUBLIC OF SOUTH AFRICA TOWARDS THE DEMOCRATIC REPUBLIC OF THE CONGO 14 FEBRUARY 2012 PAGE: 355 of 447 This serves to inform the National Assembly that I authorised the employment of One Hundred and Four (104) South African National Defence Force (SANDF) personnel to the Democratic Republic of the Congo to assist with the transportation and distribution of ballot papers for the forthcoming Democratic Republic of Congo general elections scheduled for 28 November 2011. This employment is authorised in accordance with the provisions of section 201(2)(c) of the Constitution of the Republic of South Africa, l996. The employment is for the period 23 November to 07 December 2011. I will communicate this report to members of the National Council of Provinces and wish to request that you bring the contents hereof to the attention of the National Assembly. Yours sincerely signed His Excellency Dr Jacob Gedleyihlekisa Zuma President of the Republic of South Africa WEDNESDAY, 25 JANUARY 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces 14 FEBRUARY 2012 PAGE: 356 of 447 The Speaker and the Chairperson 1. Classification of Bills by Joint Tagging Mechanism (JTM) (1) The JTM in terms of Joint Rule 160(6) classified the following Bills as section 75 Bills: (a) General Intelligence Laws Amendment Bill [B 25 – 2011] (National Assembly – sec 75). (b) Defence Amendment Bill [B 26 – 2011] (National Assembly – sec 75). National Assembly The Speaker 1. Introduction of Bill (1) The Minister of Justice and Constitutional Development (a) Sheriffs Amendment Bill [B 2 – 2012] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 34918 of 24 January 2012.] 14 FEBRUARY 2012 PAGE: 357 of 447 Introduction and referral to the Portfolio Committee on Justice and Constitutional Development of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160. In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the JTM within three parliamentary working days. TABLINGS National Assembly and National Council of Provinces 1. The Minister of Finance (a) Government Notice No R. 895 published in Government Gazette No 34714 dated 28 October 2011: Amendment of Air Passenger Tax (APT/4), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (b) Government Notice No R. 939 published in Government Gazette No 34741 dated 8 November 2011: Amendment of Rules (DAR/92), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (c) Government Notice No R. 928 published in Government Gazette No 34735 dated 11 November 2011: Amendment of Schedule No 4 (No 4/344), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 14 FEBRUARY 2012 (d) PAGE: 358 of 447 Government Notice No R. 929 published in Government Gazette No 34735 dated 11 November 2011: Amendment of Schedule No 1 (No 1/1/1431), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (e) Government Notice No R. 995 published in Government Gazette No 34806 dated 2 December 2011: Amendment of Schedule No 1 (No 1/1/1434), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (f) Government Notice No R. 996 published in Government Gazette No 34806 dated 2 December 2011: Amendment of Schedule No 1 (No 1/1/1435), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (g) Government Notice No R. 997 published in Government Gazette No 34806 dated 2 December 2011: Amendment of Schedule No 3 (No 3/678), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (h) Government Notice No R. 1027 published in Government Gazette No 34832 dated 7 December 2011: Exemptions from the application of the Preferential Procurement Regulations, 2011, published in Government Notice No 502 of 8 June 2011, in terms of the Preferential Procurement Policy framework Act, 2000 (Act No 5 of 2000). (i) Government Notice No R. 1035 published in Government Gazette No 34840 dated 15 December 2011: Amendment of Rules (DAR/94), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 14 FEBRUARY 2012 (j) PAGE: 359 of 447 Government Notice No R. 1036 published in Government Gazette No 34840 dated 15 December 2011: Amendment of Schedule No 6 (No 6/679), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (k) Government Notice No R. 1037 published in Government Gazette No 34840 dated 15 December 2011: Amendment of Schedule No 3 (No 3/679), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (l) Government Notice No R. 1038 published in Government Gazette No 34840 dated 15 December 2011: Correction Notice: Amendment of Rules(DAR/95), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (m) Government Notice No R. 1039 published in Government Gazette No 34840 dated 15 December 2011: Amendment of Rules(DAR/93), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (n) Government Notice No R. 1040 published in Government Gazette No 34840 dated 15 December 2011: Amendment of Schedule No 1 (No 1/3B/15), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (o) Government Notice No R. 1058 published in Government Gazette No 34854 dated 21 December 2011: Amendment of Schedule No 2 (No 2/340), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). 14 FEBRUARY 2012 (p) PAGE: 360 of 447 Government Notice No R. 1066 published in Government Gazette No 34859 dated 23 December 2011: Amendment of Schedule No 1 (No 1/1/1436), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (q) Government Notice No R. 1067 published in Government Gazette No 34859 dated 23 December 2011: Amendment of Schedule No 1 (No 1/1/1437), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (r) Government Notice No R. 1068 published in Government Gazette No 34859 dated 23 December 2011: Amendment of Schedule No 2 (No 2/341), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (s) Government Notice No R. 1074 published in Government Gazette No 34859 dated 23 December 2011: Amendment of Rules (DAR/96), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964). (t) Government Notice No R. 1076 published in Government Gazette No 34877 dated 23 December 2011: Amendment: Regulations made under section 70 of the Short-term Insurance Act, 1964 (Act No 53 of 1998). (u) Government Notice No R. 1077 published in Government Gazette No 34877 dated 23 December 2011: Amendment: Regulations made under section 72 of the Long-term Insurance Act, 1964 (Act No 52 of 1998). FRIDAY, 27 JANUARY 2012 14 FEBRUARY 2012 PAGE: 361 of 447 TABLINGS National Assembly 1. The Speaker (a) The President of the Republic submitted the following letter dated 19 January 2012 to the Speaker of the National Assembly, informing members of the Assembly of the employment of the South African National Defence Force for Service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the 2011/2012 festive season: This letter replaces the letter from the President tabled on 20 January 2012. EMPLOYMENT OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR SERVICE IN CO-OPERATION WITH THE SOUTH AFRICAN POLICE SERVICE This serves to inform the National Assembly that I authorised the employment of Seven Hundred and Sixty Two (762) South African National Defence Force personnel for service in co-operation with the South African Police Service in the prevention and combating of crime and maintenance and preservation of law and order within the Republic of South Africa during the 2011/2012 festive season. This employment is authorised in accordance with the provisions of section 201(2)(a) of the Constitution of the Republic of South Africa, l996 read with Section 19 of the Defence Act (Act No 42 of 2002). 14 FEBRUARY 2012 PAGE: 362 of 447 The employment is for the period 01 November 2011 to 31 January 2012 I will communicate this report to members of the National Council of Provinces and members of the Joint Standing Committee of Defence and wish to request that you bring the contents hereof to the attention of the National Assembly. The letter dated 15 December 2011 is hereby revoked. With kind regards signed His Excellency Dr Jacob Gedleyihlekisa Zuma President of the Republic of South Africa COMMITTEE REPORTS National Assembly 1. Report of the Ad Hoc Committee on the filling of vacancies in the Commission on Gender Equality (CGE), dated 26 January 2012: The Ad Hoc Committee on the filling of vacancies in the Commission on Gender Equality, having considered the resolution of the House to identify nine (9) suitable candidates for filling of vacancies in the Commission on Gender Equality, reports as follows: 14 FEBRUARY 2012 PAGE: 363 of 447 The Ad Hoc Committee received 175 nominations. On 11 January 2012, 15 candidates were shortlisted to be interviewed; however one candidate withdrew leaving the Ad Hoc Committee to consider 14 nominations, namely: Ms Thoko Mpumlwana, Ms Joan Lorraine Landrew, Mr Wallace Amos Mgoqi, Ms Nondumiso Maphazi Ranuga, Ms Sylvia Desiree Steven-Maziya, Ms Zandile Mxaku, Ms Janine Hicks, Ms Ndileka Eumera Portia Loyilane, Mr Mfanozelwe Shozi, Ms Nomvuyiso Stofile, Ms Lulama Nare, Dr Yvette Abrahams, Prof Amanda Gouws and Mr Mbuyiselo Albert Botha. After having interviewed the above candidates in an open meeting at Parliament on 25 and 26 January 2012, the Ad Hoc Committee resolved that the House, in accordance with section 193 (5) of the Constitution, 1996, recommends that the following candidates be appointed: 1. Mr Mfanozelwe Shozi 2. Ms Lulama Nare 3. Ms Sylvia Desiree Stevens-Maziya 4. Ms Janine Hicks 5. Ms Ndileka Eumera Portia Loyilane 6. Mr Wallace Amos Mgoqi 7. Ms Nondumiso Maphazi Ranuga 8. Ms Thoko Mpumlwana 9. Prof Amanda Gouws Report to be considered. 14 FEBRUARY 2012 PAGE: 364 of 447 TUESDAY, 31 JANUARY 2012 TABLINGS National Assembly and National Council of Provinces 1. The Speaker and the Chairperson (a) The Strategic Plan and Budget of the Auditor-General of South Africa for 2012-2015 [RP 287-2011]. COMMITTEE REPORTS National Assembly CREDA INSERT - T120131e-insert1 – PAGES 110 - 131 2. REPORT OF THE PORTFOLIO COMMITTEE ON INTERNATIONAL RELATIONS AND COOPERATION ON OUTREACH PROGRAM UNDERTAKEN ON 5 AUGUST 2010 AT THE UNIVERSITY OF CAPE TOWN, DATED 23 FEBRUARY 2011 The Portfolio Committee on International Relations and Cooperation, having undertaken an outreach program in the Western Cape Province with the University of Cape Town as the host, reports as follows: 14 FEBRUARY 2012 1. PAGE: 365 of 447 The Delegation The Committee’s multiparty delegation comprised the following Honourable Members: African National Congress (ANC): Nxesi, Mr TW Koornhof, Dr GW Magau, Ms RK Sunduza, Ms TB Democratic Alliance (DA): Mubu, Mr KS Support Staff The support staff that accompanied the delegation comprised Ms B Ntshanga (Committee Secretary), Ms L Mosala (Content Adviser), Mr M Mashaba (Researcher), and Ms S Goba (Committee Assistant). The Department of International Relations and Cooperation was represented by Mr F Nacerodien, Chief Director North America, and Mr E Kgopa, Parliamentary Liaison Officer. Dr S Zondi, Director: Institute of Global Dialogue, attended as both a presenter and a facilitator of the workshop. 2. Background and introduction In the State of the Nation Address of 2008, President Zuma directed that South African foreign policy be aligned to the country’s domestic priorities. In response, the Department of International Relations and Cooperation (the Department) undertook to align its work in order to contribute to the national 14 FEBRUARY 2012 PAGE: 366 of 447 priorities, and at the same time, it pledged to undertake a process of developing a White Paper on Foreign Policy, and establishing a consultative process with stakeholders in discussions of the foreign policy and national interest. Furthermore, the Department had been criticised around the elitist nature of foreign policy; and in response it rolled out a campaign to reach out to members of the public and involve the people in activities of the Department. The Department has since rolled out its outreach program in the provinces of Limpopo, Free State, Eastern Cape and Mpumalanga. The Committee set out on a mission to find out how the Department was performing with regard to linking foreign policy to national interest and domestic priorities; and whether the public was indeed being engaged and informed of the activities of the Department in furtherance of its public diplomacy program. The Western Cape Province became the second in the series of areas the Committee has set itself in execution of its oversight mandate. The Committee chose to interact with the academia and students of international relations, politics, economics, and law, from the Universities of Stellenbosch, Cape Town and Western Cape. The University of Cape Town offered the venue. In order to achieve its objective in establishing whether foreign policy was being aligned to domestic priorities, the Committee agreed on a strategy informed by four parts, namely; democratic accountability, public diplomacy, what constitutes foreign policy- national interest and intolerance towards foreign nationals. The Committee’s objectives for the outreach programme were based on these elements. Democratic accountability: The Committee sought to establish the role and level of involvement of all relevant sections of society in developing, scrutinising and enhancing the current international relations policy, or foreign policy as it is traditionally known. 14 FEBRUARY 2012 PAGE: 367 of 447 Public diplomacy: This has been a communication medium for Government that is used to inform both the local and international communities on foreign policy and trends that are influential to its general orientation. The Committee sought to examine its effectiveness and impact in the international arena, and whether there was effective engagement with non state actors (business, civil society and general public) in the execution of foreign policy. Foreign policy-national interest: The Committee sought to provide an opportunity for members of the public to make their views known on what they regard as national interest, and whether the public could establish a link between national interest, domestic priorities and foreign policy. The critical issues the Committee sought answers to would be to probe whether in a diverse society like South Africa, could national interest be easy to define. Intolerance towards foreigners: The debate was thought to provide an opportunity and benefit of varying views on how intolerance in its various forms, but particularly towards foreigners of African origin, could be managed in the long term in order to maintain good relations with neighbouring countries. The forum would assist identify some of the causes of xenophobia and propose short and long term ways of handling the situation. The Committee also expected to obtain feedback from the public on the following questions: Whether the Department was fulfilling its mandate of aligning foreign policy to domestic priorities and whether there is a link between national interest, domestic priorities and foreign policy; Whether the Department’s outreach imbizo campaigns were making the necessary impact on their understanding of foreign policy and trends influential to it; 14 FEBRUARY 2012 PAGE: 368 of 447 Whether there was sufficient engagement of non state actors; To what extent the public appreciated international obligations South Africa has abroad (peacekeeping, post conflict reconstruction)? To what extent people feel informed, do they identify with these policies and national programs? Would it be correct to label South Africans as xenophobic and how could the government and people work together to achieve long term solutions? 3. Outline of the process The Committee had a workshop at the University of Cape Town with students and lecturers from the Universities of the Western Cape, Stellenbosch and Cape Town. The workshop provided a platform for intellectual analysis of the current foreign policy initiatives and identified areas where focus was needed in order to deal with trends influential to the foreign policy. In opening the workshop, the Vice Chancellor of the University of Cape Town, Dr Max Price, welcomed the Committee, and expressed appreciation for having been approached to host such a workshop. He went further to commit the institution to continue with the close contact with Parliament and offered to be a resource base for assisting with research and information on various topics as needed. In response, the Chairperson of the Portfolio Committee, Hon Nxesi, expressed his gratitude on behalf of the Committee, for the Universities to have agreed to join in the debate on issues affecting South 14 FEBRUARY 2012 PAGE: 369 of 447 Africa’s activities in the international arena. He explained that, as a follow up to the Department’s outreach program in the different provinces in the country, the Committee was conducting oversight to establish to what extent the communities appreciated the South African foreign policy. The visit was also in response to President Zuma’s directive that foreign policy must talk to domestic priorities. Consequently, the Committee had identified topics to focus on when tackling the questions it needed answered. The following were discussed: 4. Foreign Policy and national interest (South African Foreign Policy since 1994) A number of successes and challenges were identified which contributed to the shaping of the policy during the period in question. It was argued that the demise of apartheid brought about freedom of choice of new policies and friends in the international arena. The greatest challenge was normalisation of relations after decades of isolation and sanctions because of apartheid. Many treaties had to be signed to bring back the country into the rules based world order. The country was recognised for having extraordinary human resource, such as Tata Madiba, Archbishop Tutu, FW de Klerk to name a few, who scaled up the image of the country post-apartheid era. The Truth and Reconciliation Commission showed the country to have a unique moral power, and that experience became an international good practice for other countries to learn from. South Africa was congratulated for openly condemning 2001 terrorist attacks in the US, much as later it criticised the US for its ‘war on terror’ campaign in Irag. As a result, the relations with the US had been fluid as the US became very critical of South Africa’s stand on war on terror. During the Mbeki era, South Africa was commended for being a reformist power, pushing for change in international institutions like the United Nations, World Trade Organisation, and International Monetary Fund; for the recognition of the voices of smaller economies of the world in decisions taken 14 FEBRUARY 2012 PAGE: 370 of 447 in those organisations. However, criticism was directed against pursuing reform, as it was seen as fruitless in the long run. Pursuing the African Agenda for continental unity and maintenance of peace was seen as progressive; the creation of NEPAD positioned South Africa as an agent of African development, however it was felt that the pillars of NEPAD fell apart when US made her developmental assistance conditional on support for her policy on war on terror. African Renaissance as a policy was critically addressed as good to an extend but too ambitious and resulted in South Africa being perceived as jostling for position to be a spokesperson for Africa. When the DRC joined SADC, with perceived support from South Africa, it was seen as having dragged SADC into the Great Lakes/Central Africa issues; Burundi was reported as a successful story for South Africa in conflict resolution. The elitist approach to foreign policy, which was associated with that era, was highly criticised. The workshop recognised the focus on economic diplomacy evident under the Zuma’s Administration, and that there was growing involvement of non-state actors in the conduct of foreign policy. It was however cautioned that the country’s involvement under the India-Brazil-South Africa (IBSA) arrangement was overstretched by a large number of sector specific committees created. It was suggested that in order for the country to have impact in the forum, it could perhaps focus on specific sectors like child labour, trafficking, disarmament. With regard to the advancement of national interest, the Department explained that its interventions in multilateral forums (eg AU, UN, WTO, ILO), though it would initially be informed by domestic priorities, it was also compelled to respond to global trends dictated by globalisation and multilateral movement in the ever changing world order. Recommendations 14 FEBRUARY 2012 PAGE: 371 of 447 At the end of discussions under this topic, the following recommendations were made to the Committee: I. It was felt that in general, the public has little knowledge about the rest of the world, especially the contribution neighbouring countries made towards the liberation of the black majority in the country. Public education was mentioned as key to the much needed public support of the policies, especially foreign policy, advanced by government. It was reported that the media was not reporting on achievements of the policy. II. It was recommended that South Africa should intensify its campaign to rekindle its international identity, as it was perceived as a ‘bully’, and it was reported as creating jealousies towards its endeavours internationally. III. South Africa was seen as the new kid on the bloc, it was involved in a number of projects in Africa, with very little accrued for the benefit of South Africans. IV. The country was reported as having established its power and capacity of handling international events and diligently dealing with the international community from the hosting of the FIFA World Cup, and government was encouraged to ride on the success and strategically position itself in the world stage to advance national interest. V. Public diplomacy strategy should be enhanced, information about the policies and policy positions to be taken or taken in multilateral for a must be communicated and people’s contributions sought. 14 FEBRUARY 2012 PAGE: 372 of 447 VI. It was observed that partnerships under IBSA were characterised with economies on different levels of development. South Africa’s economy was seen as behind those of India and Brazil. In order to make an impact and benefit from the partnership, it was recommended that South Africa should focus on two or three areas of cooperation, like drug or human trafficking, child labour, and make a contribution which will mark its ability and competitiveness in the relationship. VII. The Committee was urged to caution the Department that in conducting foreign policy projects elsewhere in the world, it be responsible and not neglect domestic priorities aimed at enhancing the lives of people in South Africa. 5. Global Governance Under this topic, the discussions were based on the country’s performance in multilateral issues, especially in the United Nations, African Union and in other international platforms where issues of global interest were being discussed. Observations During the discussions that ensued, the workshop made the following observations: a. South Africa has had varying voting patterns in the United Nations, which have created perceptions that the country was not consistent with its stance especially with regard to human rights issues (Zimbabwe, Myanmar, Sudan); 14 FEBRUARY 2012 PAGE: 373 of 447 b. There had been very limited consultative process undertaken by government before communicating a country position in a multilateral forum (not supporting a resolution declaring rape as a weapon of war in Southern Sudan); c. It was suspected that the country seemed to be weary of being embarrassed by the West and that impacted on its steadfastness to maintain the African identity; d. The Committee was commended for taking policy to the people and engaging openly with the academia; e. It was felt that the country portrayed financial fatigue to support the continent; f. Contrary to common misunderstanding, the International Criminal Court does not seek cases to prosecute, cases are referred to it, and the Sudanese issue was referred to the Court by the United Nations Security Council; g. It was recognised that the greatest success also lauded by the international community was the improved approach to HIV/AIDS by the Zuma administration. Recommendations The following recommendations were made for the Committee’s consideration: I. The question of identity must be addressed to curb perceptions emanating from within the continent; 14 FEBRUARY 2012 PAGE: 374 of 447 II. South Africa should be cautious when dealing with the request from the African Union for military presence in Somalia and consider domestic consequences if the country is to be engaged in this conflict. The situation in Somalia was regarded as fluid and there has been no peace to maintain with troops; III. The Committee was urged to impress upon government that the country has to maintain its leading role in human rights issues and avoid controversial voting patterns in the global system; IV. It was argued that when sending troops for peace-keeping missions, relevance to national interest and level of need to despatch boot soldiers as opposed to machinery and other forms of humanitarian assistance be assessed. The defence force was regarded as already overstretched. V. The workshop identified the need for an effective justice system for the continent to identify cases falling under the auspices of the ICC and refer them to the ICC if national jurisdictions do not entertain them; VI. South Africa must use ‘soft power’ to rally support in multilateral issues from other African countries; it should continue to represent the interests of the voiceless; VII. The level of knowledge about and appreciation of other countries’ role in the liberation of South Africa from the apartheid system must be improved. Studies in geography must play a role in foreign policy and public education on policy be improved; VIII. South Africa must not be ashamed to embrace the West where matters of domestic priority need to be addressed. 14 FEBRUARY 2012 PAGE: 375 of 447 6. Xenophobia The phenomenon was regarded by the workshop as neither new nor unique to South Africa. It was agreed that it happened in Asia, Europe and the Middle East. However, in South Africa the tendency has been to show intolerance towards foreigners of African origin. Observations by the workshop a. It was observed that South Africa still had a challenge to recognise that the intolerance has become a reality and decisively deal with it. b. It was further recognised that South Africans were enjoying the fruits of change and democracy because of the contribution and sacrifice from African countries. However, it was admitted that many South Africans remain poor, deprived, frustrated, and they express their anger through service delivery protests. c. Concerns were raised that in some areas political leaders were said to be fuelling xenophobic tendencies, while government isolated the incidents to criminal activity. d. Government was seen as slow in its reaction to the attacks; and not tough enough on perpetrators as a result of which refugees were said to have lost faith in the police to protect them. Recommendations The following recommendations were made to the Committee during the debate on this issue: 14 FEBRUARY 2012 PAGE: 376 of 447 I. Political education was identified as a high priority to make the populace aware of the importance of migration and the role played by the international community during the apartheid era. Government was urged to take the lead and not leave the NGOs to do the campaigns alone; II. Parliament was urged to educate the people on the role of other countries in the liberation struggle; III. Of equal importance was education on the role of migrants in the economic development of the economy in South Africa (in mines, building cities); IV. Parliament must ensure adherence to the Convention on Protection of Refugees by the government as the country is a state party to the same; V. It was advocated that Parliament must highlight the concepts of globalisation and free movement as modern days’ realities; and how xenophobic attacks impact on the African Agenda aspirations. VI. Parliament was urged to encourage the creation of community early warning systems to alert authorities of early signs of intolerance. VII. South Africa has to play its leading role in the economic emancipation of the continent, because it was not perceived as a developing country by the rest of the continent, but as a powerhouse in a poor continent. 7. Public Diplomacy 14 FEBRUARY 2012 PAGE: 377 of 447 Observations by the workshop It was generally agreed that public diplomacy was key to the success of rallying support for foreign policy objectives both at home and abroad. It was reiterated that without a strong public diplomacy strategy, most of the good work being done by the Department will go unnoticed. During discussions, the workshop made the following observations: a. The country’s hard power capabilities were seen as declining. However, the current global shift to multipolar governance, which has opened up space for emerging economies to participate as new actors in global dialogue, should be treated as advantageous for South Africa to engage ‘soft power currency’. b. Global change has propelled the change in power structures across the world, and soft power can translate into leverage. c. It was seen as an advantage that South Africa came into the global forum at the right time, after the cold war. Since 1994, it has been riding on a new democratic wave with a good reputation from the Mandela legacy, good practice from the Truth and Reconciliation Commission, from which it can be trusted as a mediator or bridging gaps between feuding sides. d. The global shift in power has created space for countries to bring their regions on board, and through soft power, South Africa could use soft power to amass support from its region to take regional issues to the global forum. 14 FEBRUARY 2012 PAGE: 378 of 447 e. It was cautioned that economically, South Africa was only a regional power, not in the same league as China, Brazil, India, Russia, but soft power has propelled it to a middle power. In order to survive the alliance, it had to rely on soft power currency. f. It was observed that soft power could diminish easily if not administered cautiously or left untapped. Recommendations The following recommendations were made to the Committee on this topic: I. The conference felt that since 1994, there has been no public diplomacy strategy. The Department had been talking to only the elite, not with the populace in execution of this policy. The example of posting press releases on the website only was cited. The Committee was urged to highlight this concern and that the dissemination of information about foreign policy activities must be made accessible and easily reach every corner of the country. II. Government was urged to participate in education exchange programs and to advocate support for its history, culture and political systems. III. The diaspora must be mobilised as a source for vast experience and economic development. IV. In order to keep momentum of keeping in touch with the populace, officials of the Department should take the lead in holding imbizos informing the people about the activities of the Department. Currently these are led by the Minister personally and her schedule is often very tight. 14 FEBRUARY 2012 PAGE: 379 of 447 V. As a growing power, South Africa has to create a network of CBOs who can be engaged as key drivers for knowledge and understanding of South Africa and its policies. VI. As soft power can diminish quickly, it is important to maintain soft power through aligning foreign policy and domestic priorities. 8. Recommendations by the Committee Having considered the observations and recommendations made by the workshop on various issues presented for discussion, the Committee made the following recommendations to which the Department should submit a progress report within three months of the adoption of the report by the Assembly: i. The Department should enhance the focus on economic diplomacy to effectively respond to the dictates of domestic priorities through forming alliances and economic partnerships with strategic partners. ii. The Department should increase involvement of non-state actors in the conduct of foreign policy to ensure inclusivity in the formulation and conduct of foreign policy. iii. When funding projects in furtherance of the African Agenda abroad, the Department should ensure mutual benefit which will enhance the lives of people in South Africa. iv. The issue of identity should be addressed to curb perceptions emanating from the continent that South Africa is euro-centric. 14 FEBRUARY 2012 v. PAGE: 380 of 447 The Department should maintain a leading role in human rights issues, consult widely and communicate on time the principled voting patterns in the global system. vi. Members of Parliament must be urged to encourage local structures to create community early warning systems to alert authorities of early signs of intolerance towards foreign nationals. vii. The Department should develop a comprehensive public diplomacy strategy and seek input from all sectors of the society. Information about foreign policy activities should be made accessible to ordinary citizens. viii. In order to maintain the necessary momentum of making known the mandate of the Department, the officials therein, as the Minister’s schedule is often very tight, should take the lead in holding imbizos informing the people about the activities of the Department. Report to be considered. WEDNESDAY, 1 FEBRUARY 2012 ANNOUNCEMENTS National Assembly The Speaker 14 FEBRUARY 2012 1. PAGE: 381 of 447 Membership of Assembly (a) The vacancy which occurred in the National Assembly owing to the passing away of Mr L J Tolo, had been filled with effect from 1 December 2011 by the nomination of Mr B M Bhanga. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on International Relations and Cooperation on its Oversight Visits to the International Conference Centre (ICC Durban) and the King Shaka International State Protocol Lounge, Durban, dated 30 November 2011 The Portfolio Committee on International Relations and Cooperation, having undertaken two oversight visits to Durban on 14 November 2011, reports as follows: 1. Delegation The oversight visit comprised a multi-party delegation as follows: African National Congress Mr HT Magama, Chairperson and leader of delegation Ms C September Ms L Jacobus Mr E Sulliman 14 FEBRUARY 2012 PAGE: 382 of 447 Ms RK Magau Ms W Newhoudt-Druchen Mr M Booi Democratic Alliance Mr KS Mubu Mr S Mokgalapa Support staff The support staff that accompanied the delegation was Ms Bulelwa Bottoman (Committee Secretary) and Ms L Mosala (Content Adviser). The Department of International Relations and Cooperation (DIRCO) was represented by Mr Pieter Coetzee (Parliamentary Liaison Officer). 2. Background and introduction The Committee conducted oversight on two major issues: the state of readiness of the venue for hosting the 17th Conference of the Parties (COP17) on Climate Change, the International Convention Centre in Durban (ICC Durban); and the functionality of the State Protocol Lounge at King Shaka International Airport. 2.1 The ICC Durban The Honourable Minister of International Relations and Cooperation, Ms Maite NkoaneMashabane, briefed the Committee of the preparedness and readiness of her department with all the processes in place for hosting the United Nations conference on Climate Change, COP17, in Durban, 28 November to 9 December 2011. This undertaking is in fulfilment of the objective stated in the Department’s Strategic Plan 2010-2013, to deliver a world class and 14 FEBRUARY 2012 PAGE: 383 of 447 truly African COP17. In confirmation of the acceptability of the plans for hosting, the United Nations and the Government of South Africa signed the Host Agreement on 30 September 2011 in Panama. Signing signalled satisfaction and trust on the part of the UN on South Africa to deliver on its promise a deliver a memorable and successful COP17. The Committee then resolved to conduct a verification oversight visit to have an inspection, in loco, on the readiness of the venue for the conference. 3. Outline of the process The Committee’s verification tour of the facilities at the ICC Durban was divided into two major events: the first leg was dedicated to a tour of the conference facility where COP17 will be held; and the second part was the briefing by relevant stakeholders on the preparations for hosting the conference. The stakeholders comprised the management of the City of Durban, the ICC Durban management, Corporate Services branch (DIRCO) and the United Nations representation. Thereafter, the Committee had a walkabout through the State Protocol Lounge at the King Shaka International Airport to establish its functionality. 4. The oversight process in detail ICC Durban – On arrival at the ICC Durban, the Committee’s delegation was met by the municipal manager of the City of Durban, Mr Michael Sutcliffe, who welcomed the delegation to Durban and also to the venue. In his company were the Corporate Services team from the Department namely, Mr A Moodley, Mr P Naidoo and Mr Mthimunye. The Committee was 14 FEBRUARY 2012 PAGE: 384 of 447 then taken on a familiarisation tour by Ms Julie May Ellingson, Chief Executive Officer, ICC Durban. During the tour the Committee delegation noted the following with regard to the readiness of the venue: The site plan of the ICC Durban was approved as compliant to the United Nations’ specifications by the UNFCCC on 17 August 2011. The ICC Durban, as a venue, will be handed over to the UN on 21 November 2011. (Progress report is that the venue was indeed ready and handed over on 21 November 2011). The sheer size of the conference required that temporary structures be built. Bio-degradable material is being used to build partitioning walls at the venue. The venue is divided into three levels: The lower level The lower level is a parking basement; it was being partitioned to host the UN VIP offices, UNFCCC staff offices, media and broadcasting services, country delegates, COP17 Presidency South Africa. The media centre will host 1100 accredited journalists. There were already 194 countries registered for participation and space is reserved for them on commercial basis. 14 FEBRUARY 2012 PAGE: 385 of 447 Security issues have been taken into consideration. There will be 200 South African security police on site; they will be complimented by 65 UN security team and additional security from the ICC Durban. In case of fire or any emergency, there is an escape route connecting the three levels of the conference venue. Fire marshals are on stand-by in case of need. The construction of the temporary units was not yet completed. However, the process of erecting the walls was reported to take 4 days, and the management was convinced the process will be accomplished on schedule. Level 1 The main entrance for country delegations will be located on this level for easy access to the meeting rooms. All meeting rooms will be located on this level. There will be 2 plenary venues from which live video feeds will be relayed or broadcast to the outside world. Temporary units will be constructed which will be utilised for meeting rooms, press conference areas, UN security offices, documents distribution centre, catering, prayer/meditation, medical suites and interpretation booths. All the temporary structures will be air conditioned. The meeting rooms will be able to accommodate a number of people ranging from 20-500 as per the participants’ requirements. Level 2 The various groupings/countries/formations like the G77 & China, Least Developed Countries (LDCs), the Africa Group, the digital media centre and the computer and business centre will be located on this level. 14 FEBRUARY 2012 PAGE: 386 of 447 The temporary structures will be used mostly for groupings or countries’ negotiations, corridor and parliamentary diplomacy sessions on issues of divergence. The Red Zone The UN has demarcated the area between Aliwal Street, up to the Hilton hotel, and Walnut road in the city centre of Durban, exclusively as the UN precinct for the duration of the conference. The registration of delegates will be placed at the park/city gardens. There will be a walkover bridge which will lead the delegates into the ICC Durban exhibition centre, which will have climate response units displaying kiosks local artisans, the African Union Pavilion, the main access point and VIP parking. Authorised demonstrations and side events have been allocated space adjacent to the main venue area. Dedicated transport will collect delegates from the airport at a cost of R130 one way, and collect them daily from hotels to the conference venue and back. The taxi rank on Aliwal Street will be temporarily converted into a pick up and drop-off transport area. Delegates will either walk over to the conference venue or pick up a bicycle ride to the venue. There will be about 500 bicycles for those intending to ride to the ICC Durban. Accredited civil society will be housed at the University of KwaZulu-Natal. There are 1000 non-governmental organisations registered to attend. The Blue line 14 FEBRUARY 2012 PAGE: 387 of 447 The Blue line, which extends to the beach front, has been demarcated by the city of Durban for all side events pertaining to climate change and local tourism attractions. Security will be tight around the city, with lights along the pathways for delegates’ safety and security. 5. Briefing by the stakeholders After the tour of the ICC Durban venue, the Committee was afforded a briefing with regard to logistics for hosting by different relevant stakeholders as follows: Presentation by Corporate Services DIRCO The Department reported that the estimated cost of the conference is R499 million. A budget for hosting exists, and there have been contributions from both the UN and the EU towards the running costs. A shortfall of R10 million has been detected and Treasury has been consulted on the possibility of overspending by the same amount. However, police services have agreed to cater for own needs. Protocol services for VIPs who will attend the conference were reported to be in place both at the airport and the venue of the conference. The Department further explained that the demands of the UN for hosting were huge, in order to maintain the required standards for a conference of this magnitude. There is an agreed conference menu, detailing agreed standards and prices of services and selected items. The costs of services are kept at minimum to protect the delegates from unscrupulous vendors and businesses. The Committee delegation raised pertinent questions relating to the hosting of the conference and sought assurances that there will be legacy projects left for the people in the aftermath of 14 FEBRUARY 2012 PAGE: 388 of 447 the conference; security will be adequate to handle any eventuality including surprise demonstrations; cost of the conference will be kept at minimum. The integrated stakeholders reassured the Committee delegation that in actual figures of COP17 were kept at cost below that of hosting the World Summit on Sustainable Development (WSSD) in 2002. The service providers will also be monitored to keep the agreed service charter. The security sector will maintain a visible presence, the police will have foot patrols and streets and pathways will be well lit. Police will allow authorised activity by the accredited civil society; however, contingency plans are in place to handle surprise demonstrations. Other spin-offs from hosting has been the upgrading of ICT systems at rural schools around Durban; the city’s integrated transport system launched for the conference will continue operating between buses, taxis and bicycles between the railway station and city centre. Legacy issues were taken into consideration in that all the contractors of temporary structures in the ICC Durban are South African companies; the Wi-Fi network installed in the ICC Durban for the conference, will remain behind as a property of the conference venue; trees have been planted throughout the country as a way of minimising carbon dioxide in the atmosphere; the city of Durban has embarked on carbon neutral projects which will remain with the local communities long after COP17. Tourism facilities stand to benefit a lot in that the bed and breakfast facilities have been taken on board with a requirement for certain standards. The relevant stakeholders and the Department expressed their commitment to deliver an African COP which will project a good image of South Africa to the world. Everything possible will be done to achieve this. 14 FEBRUARY 2012 PAGE: 389 of 447 The United Nations representative in attendance in the briefing expressed its satisfaction to the commitment the South African government has on delivering a successful United Nations conference on climate change. The fact that Parliament as another sphere of government has interest to ensure that indeed all systems are according to the plan for hosting, was a much appreciated gesture and a source for comfort on the part of the United Nations. The signing of a Host Agreement with the Government of South Africa was a confirmation of trust, contentment and demonstration of confidence that indeed South Africa will carry the mandate to its logical success. 6. Pronouncements by the Committee In the light of the extensive briefing, the Committee made the following pronouncements to the effect that: a. Indeed South Africa must deliver a well planned, well managed and dignified 17th Conference of the Parties on Climate Change on the African soil. The good image of South Africa in hosting major conferences will be maintained. b. Cost will be kept at a minimum, while not compromising the quality of the conference services. c. The remaining construction of temporary units must be completed and the ICC Durban as a venue handed over to the United Nations on the set date of 21 November 2011. d. A lasting legacy must be left behind after the conference for the people of South Africa to reap the benefits of hosting, and that the conference will also have positive spin-offs for local communities. Related legacy projects must be prioritised. 14 FEBRUARY 2012 PAGE: 390 of 447 e. Security must be enough and well geared for security requirements requisite of the magnitude of the conference. The security services must be ready to tackle surprise demonstrations that may disrupt the conference. The city must be kept safe and friendly to the delegates. f. Tourism facilities must be monitored to keep the costs of services at a bear minimum as agreed. g. The local beneficiation projects must be created and remain with the local communities around the city which hosted the conference. h. Stakeholders involved in the hosting of the conference must remain integrated for the duration of the conference to avoid communication breakdown as highlighted by the city of Durban that integration of relevant stakeholders started very late. 7. Conclusions on the ICC Durban In the light of the briefings and discussions that followed during the tour of the ICC Durban, the Committee delegation came to a conclusion that the country is ready to deliver on time the venue over to the United Nations and hold a successful African Conference of the Parties to the United Nations conference on climate change. 8. The State Protocol Lounge at King Shaka International Airport 8.1 Background and introduction South Africa is a state party to the Vienna Conventions on Diplomatic and Consular Relations 1963, and it is also a party to the UN Convention on Privileges and Immunities 1946. In a 14 FEBRUARY 2012 PAGE: 391 of 447 nutshell, these instruments set international standards or guidelines within which diplomatic immunities and privileges can be afforded other countries during normal diplomatic interaction. This extends to courtesies that are offered a category of individuals befitting to receive such, and the practice differ from country to country depending on its customs. Branch State Protocol within DIRCO regulates and is responsible for the welfare of diplomatic communities in the Republic in accordance with international best practice. State Protocol is also responsible for incoming and outgoing state visits, intergovernmental and provincial protocol services, state ceremonies, managing presidential and State Protocol lounges (SPLs), operated at international airports in the country to mention but a few. The lounges play a major role in furtherance of public diplomacy principles. Travellers are all aware of the hassle and pressure associated with travel through airports. The consequence of this is that the international community established a practice to facilitate departures and arrivals of dignitaries through or into other states through airports. Requisite immunities and privileges are extended to the deserving dignitaries on arrival and departure at airports of host countries to ensure comfort, security, a good first impression about the country and its people, the seriousness with which relations with such countries are taken, and many more reasons. Before the kickoff in South Africa of the FIFA World Cup 2010, the Minister of International Relations and Cooperation reported to the Committee that all State Protocol lounges, including the newly built State Protocol Lounge at the King Shaka International were fully functional. It has been, therefore, the considered view of the Committee to ascertain the state of functionality 14 FEBRUARY 2012 PAGE: 392 of 447 of all SPLs and to ensure that ‘branding’ of the country in furtherance of the public diplomacy concept is given the necessary prominence. 9. The Committee observations during visit Since there was no formal introduction and guide through the facility, on its own the Committee noted the following: a. There was a visible designation sign identifying the facility as a State Protocol Lounge. b. The lounge portrayed the strong, imposing image and leading role South Africa has assumed internationally. It is a true reflection of a PROUDLY South African welcome. c. It embodied the UBUNTU principles that can be easily related to by foreign visitors. d. There were official portraits of the president and relevant ministers. e. There was a clear display of national emblems, mission statement, compliments and complaints’ channel. f. The lounges have comfortable seating, though not complemented with light refreshments, fresh fruit, both alcoholic and non-alcoholic drinks. To release the stress of long flights, they are equipped with showers. g. It could not be established whether there is Internet WI-FI connection, newspapers and magazines in various languages. 14 FEBRUARY 2012 PAGE: 393 of 447 h. There was no information whether catering is complementary or a small fee is charged to recover costs. i. There was no information as to the categories of VIPs assisted through the lounges, and the form of assistance is offered VIPs. j. It could not be established whether there was an information kit on South Africa. The short encounter with VIPs should be used to achieve ‘branding’ for South Africa as a country. k. The lounge’s interior is partitioned for privacy in case of more than one delegation. l. It could not be established if there is good cooperation with airport security and national security (police, intelligence) on VIP issues; nor a visitor’s book to record statistics of VIPs handled through the lounge. m. There is ample designated VIP parking and for VIPs’ personal vehicles. n. Personnel must be visible, and easily identifiable with uniforms; they must distinguish themselves by being professional, courteous, diligent, patient, good communicators and have good interpersonal skills, show etiquette and be a good image and ambassadors for the country. They must be seamless in their operation in relation to dignitaries. However, they were very busy. 14 FEBRUARY 2012 PAGE: 394 of 447 o. The lounge facilities are not yet up to the standard where they can make it user friendly. Many items are still not in place and the ambience is not welcoming as a result. 10. Conclusions on the State Protocol Lounge In light of the number of things which still need to be done to improve the functionality of the Lounge; the Committee deduced that more effort is needed to enhance the usability of the facility. Since the protocol officers were preoccupied with transfers to the main terminal, the result was the divided/inadequate attention to the Committee on its verification mission. The Committee members even had to leave the Lounge early as the place was not user-friendly as yet. The Committee appreciated the practical experience of being offered courtesies on departure to the next destination. FRIDAY, 3 FEBRUARY 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Classification of Bill by Joint Tagging Mechanism (JTM) (1) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75 Bill: (a) Sheriffs Amendment Bill [B 2 – 2012] (National Assembly – sec 75). 14 FEBRUARY 2012 PAGE: 395 of 447 MONDAY, 6 FEBRUARY 2012 COMMITTEE REPORTS National Assembly 1. PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION REPORT ON ITS OVERSIGHT VISIT TO VARIOUS ENITITES DURING JULY AND AUGUST 2011, AS ADOPTED ON THE 30 NOVEMBER 2011 1. INTRODUCTION The Portfolio Committee on Public Service and Administration undertook an oversight visit during the period 25- 28 July and 2-4 August 2011. The purpose of the visit was to conduct oversight of the administration of various entities that play an important role in the functioning of the South African Public Service. The institutions visited were: The Public Service Coordinating Bargaining Council, The Department of Public Service and Administration The Centre for Public Service Innovation The Public Service Commission and The Public Protector All entities gave an overview of their operations and administration. The delegation conducted a walkabout at their offices in order to interact with staff and to see the conditions they work under. 14 FEBRUARY 2012 PAGE: 396 of 447 The Committee also participated in the Public Service Commission’s consultation process for the revision of its monitoring and evaluation process. The Committee met for the first time with the Public Service Co-ordinating Bargaining Council and the Public Protector. The oversight was seen as a continuation of the Committee’s oversight visits of 2009 and 2010, during which the committee conducted oversight of Thusong Service Centres and Community Development Workers; the State Information Technology Agency and the Public Administration Leadership and Management Academy. The report is divided into three sections. The first section provides a brief overview of each entity visited. The second section contains the findings per entity. The third section consists of the conclusions and the recommendations for the oversight visit. 2. DELEGATION The oversight visit was split over two weeks, and the delegations that participated in each week’s oversight activities were: 25-28 July 2011: Hon. JC Moloi-Moropa, Chairperson and Leader of the delegation (ANC) Hon. MC Mohale, MP (ANC) Hon. L Suka, MP (ANC) Hon. H Van Schalkwyk, MP (DA) Hon. CT Msimang, MP (IFP) 14 FEBRUARY 2012 PAGE: 397 of 447 2-4 August 2011: Hon. JC Moloi-Moropa, Chairperson and Leader of the delegation (ANC) Hon. JM Maluleke, MP (ANC) Hon. MC Mohale, MP (ANC) Hon. E Nyekemba, MP (ANC) Hon. L Suka, MP (ANC) Hon. AJ Williams, MP (MP) Hon. A Dreyer, MP (DA) Hon. H Van Schalkwyk, MP (DA) Hon. CT Msimang, MP (IFP) 3. OVERVIEW OF ENTITIES VISITED DURING THE OVERSIGHT VISIT 3.1 PUBLIC SERVICE CO-ORDINATING BARGAININIG COUNCIL The Labour Relations Act, establishes the Public Service Co-ordinating Bargaining Council (PSCBC) as the bargaining council for the Public Service as a whole. It has the power to establish bargaining councils for any sector within the Public Service that it may so designate in terms of Section 37 of the Labour Relations Act. This is in response to section 27 of the Constitution, Act 108 of 1996, which confers upon citizens the right to fair labour practices, to organise and bargain collectively and gives workers the right to strike for the purposes of collective bargaining. The two purposes of the PSCBC are collective bargaining and dispute management for the Public Service. Section 213 of the Labour Relations Act defines "public service" as the national departments, provincial administrations, provincial departments and organisational components contemplated in 14 FEBRUARY 2012 PAGE: 398 of 447 section 7(2) of the Public Service Act, 1994 (promulgated by Proclamation No. 103 of 1994), but excluding(a) the members of the South African National Defence Force; (b) the National Intelligence Agency; and (c) the South African Secret Service. 3.1.1 Purpose 1 of the PSCBC: Collective Bargaining The total number of public servants that fall within the PSCBC’s scope is 1,3 million. The PSCBC has four sector councils established. They are: 1. Safety and Security Sectoral Bargaining Council (SSSBC), 2. Education Labour relations Council (ELRC), 3. Public Health and Social Development Sector Bargaining Council (PHSDSBC), and 4. General Public Services Sectoral Bargaining Council (GPSBC). The jurisdiction of the SSSBC is employees in the South African Police Service, while the ELRC has jurisdiction over educators employed in national and provincial Departments of Education. The scope of the PHSDSB is employees in national and provincial health and welfare departments and other defined employees. The GPSBC has jurisdiction over all employees in the scope of the PSCBC that are outside the scope of the other three sectoral councils. The sector councils are self-funded and independently established. The PSCBC also has provincial co-ordinating bargaining councils established that focus specifically on collective bargaining and disputes that are provincial in scope. The provincial structures of three of 14 FEBRUARY 2012 PAGE: 399 of 447 the sector councils, the GPSBC, ELRC and the PHSDSBC, are indirectly linked to the provincial coordinating bargaining councils. In order for a union to obtain PSCBC membership and to belong to one of the sectoral councils, it is required to have more than 50 000 members. The eight unions represented on the PSCBC are: 1. South African Democratic Teachers Union (SADTU) 2. National Education, Health and Allied Workers Union (NEHAWU) 3. Police and Prisons Civil Rights Union (POPCRU) 4. Democratic Nursing organization of SA (DENOSA) 5. Public Service Association (PSA) 6. Health and Other Services Personnel Trade Union of South Africa (HOSPERSA) 7. National Professional Teachers Organisation of South Africa (NAPTOSA) 8. South African Police Union (SAPU) There were five representatives from each of the eight unions that form part of the PSCBC. In total, Labour is represented by forty representatives; while Government’s representatives match the number of representatives from Labour. Some of the common agenda items that the PSCBC has hosted collective bargaining on were: Pensions restructuring Reconfiguration of Departments Performance Management and development System Implementation of resolution 3 of 2009 Implementation of ‘No work, No pay’ , and 14 FEBRUARY 2012 PAGE: 400 of 447 Provincial Policies. 3.1.2 Purpose 2 of the PSCBC: Dispute Management The PSCBC receives many disputes referred to it, but it is only able to resolve disputes which fall within its jurisdiction. Its jurisdiction is determined by from under which Executive authority a dispute originates. In order to determine whether a matter is referred to the national bargaining council, the sector council or one of the regional councils decides on how many of the sectors and regional councils a matter concerns. In terms of its dispute management function, the PSCBC has dispute panelists spread across all provinces of South Africa, with the largest concentration in the Gauteng Province, where the national offices of the PSCBC are based. There have been 5 064 disputes lodged and referred during 2010/2011, which is a 4% increase in the number of disputes referred to the PSCBC during 2009/10. If one compares the number of disputes received for 2010/2011 with the 1,3 million public servants the PSCBC has jurisdiction over, one can deduce that only 0.38% of the public servants lodged disputes with the PSCBC. The table below gives a breakdown of the number of disputes referred to the Councils from April 2010 – March 2011: Councils Number of % of total Transferred by ‘Out of cases cases the CCMA to Jurisdiction referred the PSCBC ‘before any 14 FEBRUARY 2012 PAGE: 401 of 447 process undertaken PSCBC 666 13% 5 128 ELRC 531 10% 8 137 GPSSBC 2282 46% 24 165 PHSDSBC 823 16% 13 80 SSSBC 762 15% 10 14 Total 5064 100% 60 524 The highest numbers of disputes received were from the following: National Departments – 48% Gauteng Province – 10 % Western Cape Province – 8% Free State Province – 8% KwaZulu Natal - 8% The highest number of disputes referred to the PSCBC is from individuals. The most popular matters that disputes were raised about were: Unfair conduct, promotion, demotion, probation, training, 14 FEBRUARY 2012 benefits, dismissal related to misconduct, and interpretation and application of collective agreements. PAGE: 402 of 447 3.1.3 Governance of the PSCBC In terms of the PSCBC’s governance matters, each council consists of an independent Chairperson, two Vice-Chairpersons elected from the representatives from the employer and Labour, respectively. The General Secretary is the secretariat of the council. Other structures that are established as substructures of a council are the financial committee, the audit committee, chambers and task teams. The representatives on PSCBC and the sector councils are fairly representative of the South African population, both in terms of demographics and gender representivity. The PSCBC and its councils are funded from levies collected from members. It charges each public servant under its jurisdiction a levy as follows: PSCBC R1 ELRC R10 PHSDSBC R2 GPSSBC R4 SSSBC R2, The PSCBC is self-funded, in that its operational costs are covered from members’ subscription fees. Government matches what members pay. The employer pays 50% of the levy and the remaining 50% is deducted from public servants. Levies made up 87% of the PSCBC’s income for 2010/2011. The total income for 2010/2011 was R14, 366,967. The total expenditure for the PSCBC during 2010/11 14 FEBRUARY 2012 PAGE: 403 of 447 was R16,450,269. There was a shortfall in levy income of R -2,083,302, which was covered from savings the PSCBC had built up over time. Some of the PSCBC’s strategic objectives for 2011/12 include: to review structures and strengthening processes of collective bargaining in the Public Service so as to ensure improved delivery of services; to monitor, evaluate and ensure compliance to collective agreements; to develop and implement a dispute prevention strategy that will encompass capacity building of stakeholders and enhancement of the dispute resolution procedure; to enhance good governance with the development and implementation of a risk management strategy, effective performance management of the organization and an investment in human capital development; and to refine and enhance the liaison, marketing and communication strategy so as to develop an organizational brand, nationally and internationally. The delegation undertook a tour of the offices and interacted with staff. 3.2 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION The amended Public Service Act of 1996 enables the Minister of Public Service and Administration to establish norms and standards relating to: - 14 FEBRUARY 2012 PAGE: 404 of 447 The functions of the public service; The organizational structures and establishments of departments and other organisational and governance arrangements in the Public Service; The conditions of service and other employment practices for employees; Labour relations in the Public Service; Health and wellness of employees; Information management in the Public Service; Electronic government (i.e. the use of information and communication technologies in the Public Service to improve rendering of services); Integrity, ethics, conduct and anti-corruption in the Public Service; and Transformation, reform, innovation and any other matter to improve the effectiveness and efficiency of the Public Service and its service delivery to the public. The Minister of Public Service and Administration, and by extension the Department of Public Service and Administration (DPSA), is responsible for Government’s delivery agreement for outcome 12: An efficient, effective and development-orientated Public Service and an empowered, fair and inclusive citizenship. The Delivery agreement for outcome 12 includes the following: Service Delivery Quality and Access o User satisfaction survey o Access o Responsivenss o Value for money (unit cost) Human Resource Management and Development 14 FEBRUARY 2012 PAGE: 405 of 447 o Performance development, performance agreements and assessments o Recruitment, retention and career pathing o Discipline o Hr Planning, skills development and cadre development Business processes, systems, decision rights and accountability o PERSAL functionality o Decision and delegation rights o Organisational design o Business processes Corruption tackled effectively o Anti-corruption o Enforcement monitoring and evaluation measures The DPSA has six programmes. A brief overview is provided below. 3.2.1 Programme 1: Administration The purpose of the administration programme is to provide co-ordinated strategic and administration support services to enable the Ministry and the Department to deliver on their mandates. The components of the first Administration programme include the Ministry, Deputy Ministry, Corporate Resource Management, Strategic Management, Integrated Planning and Programme Management, Finance, Legal Services and Internal Audit and Risk Management. 14 FEBRUARY 2012 PAGE: 406 of 447 The strategic initiatives for 2011/12 are to: train DPSA staff as chairpersons and investigation officers to facilitate the promotion of sound labour practices; implement an efficient and effective Supply Chain Management and Asset management policy; conduct Fraud Prevention Training and awareness workshops in the department; revise the Public Service Regulations; produce and submit 2011-12 strategic and annual performance plans of the Department to Parliament and National Treasury; and compile quarterly reports on the implementation of the delivery agreement for outcome 12 to Cabinet. 3.2.2 Programme 2: Human Resource Management and Development (HRM&D) The purpose of the second programme is to develop, implement and monitor Human Resource Management policies in the Public Service. It consists of the following components: Human Resource Development, Human Resource Planning, Practices and Performance, Diversity Management, Integrated Financial Management Service, Employee Health and Wellness. The strategic objectives for 2011/12 are to: 14 FEBRUARY 2012 PAGE: 407 of 447 modernise and enhance effectiveness of government financial systems by developing the module of the Integrated Financial Management System (IFMS); provide information on skills in the Public Service in relation to job; requirements to contribute towards addressing skills gaps in the Public Service; review and revise the Performance Management and Development System (PMDS) through a strategic framework; monitor the implementation of gender, disability and youth frameworks by all departments; and increase the number of government departments implementing Employment Health and Wellness policies from 40 in 2010/11 by an additional 40 per year. 3.2.3 Programme 3: Labour Relations and Remuneration Management (LR& RM) The purpose of the third programme is to develop, implement and maintain labour relations and compensation policies and ensure co-ordinated engagement with organized labour. The third programme consists of the following components: Remuneration and Market analysis, Conditions of Service, Labour Relations and Negotiations. The strategic objectives for 2011/12 are to: conduct a comprehensive personnel expenditure review for the Public Service; 14 FEBRUARY 2012 PAGE: 408 of 447 review the remuneration Policy for the Public Service; conduct an impact assessment of the occupation specific dispensation (OSDs); align remuneration and conditions of service between the Public Service and local government; establish efficient management of annual and sick leave in the Public Service; and Finalise negotiations on salaries and other matters of mutual interest emanating from the DPSA’;s mandate in 2011/12. 3.2.4 Programme 4: Public Sector Information and Communication Technology Management The purpose of the fourth programme is to promote and manage the use of ICT in the design and delivery of citizen-centered services; and ensure that IT services support the continual improvement in the cost, quality, access, responsiveness and speed of service delivery to citizens, business and stakeholders by the Public Service. The fourth programme contains the following components: E-Government, ICT policy and Planning, and ICT Infrastructure and Operations. The strategic objectives for this programme for 2011/12 are to: connect 125 Thusong Service Centres by March 2012; complete connectivity blueprint and bandwidth strategies for connecting schools, libraries, clinics and municipalities during the next three years; implement a Next Generation e-Government platform within the next three years; develop common IT standards and principles for government; develop and adopt an IT security policy by March 2012; and develop and IT Security Governance Framework by March 2012. 14 FEBRUARY 2012 PAGE: 409 of 447 3.2.5 Programme 5: Service Delivery and Organisational Transformation (SDOT) The purpose of the fifth programme is to promote a service delivery and organizational transformation framework and engage in interventions and partnerships to promote efficient and effective service delivery. The fifth programme consists of the following components: Service Delivery Planning, Service Delivery Improvement Mechanisms, Organisational Development of the Public Sector, Community Development Participation, Change Management and Integrated Access Mechanism. The strategic objectives for 2011/2012 are to: develop a methodology on business Process Quality Management and Unit Costing for the departments of Health and Education; implement the National Knowledge Management Framework and establish service delivery forums; finalise the strategic framework on managing organizational change and service delivery implementation; improve service delivery and Senior Management Services’ (SMS) competency through development and implementation of the revised Khaedu management strategy; and 14 FEBRUARY 2012 PAGE: 410 of 447 contribute towards the improvement of service delivery competency in the Public Service by providing training on Batho Pele principles over the Medium-Term Expenditure Framework. 3.2.6 Programme 6: Governance and International Relations (Gov and IR) The purpose of programme six is to improve the governance of public administration through integration of the Public Service, fighting corruption, monitoring and evaluation as well as advancing the Public Service agenda at national, regional and international levels. The sixth programme has the following programmes: Integrity and Ethics Management, International and African Affairs, Monitoring and Evaluation, African Peer Review Mechanism (APRM), Integrated Public Administration Reforms. The strategic objectives for 2011/2012 are to: tackle corruption in the Public Service and monitor compliance with national and international anti-corruption instruments; implement the APRM national framework through submission of annual progress reports to the AU and Cabinet; monitor and evaluate public sector programmes, policies and projects to ensure accountability and transparency; contribute to the African and international Agenda through the implementation of the Continental Governance and Public Administration Programme; and 14 FEBRUARY 2012 PAGE: 411 of 447 drive and co-ordinate the national public sector integration programme by facilitating the development of a legislative framework. 3.2.7 Presentation on the Salary Negotiations of 2010 It was highlighted that the salary bill for the Public Service was a concern for National Treasury since it had doubled since 2005. The growth in the salary bill was attributed to the growth in personnel, occupations specific dispensation, higher-than-inflation salary adjustments and improvements in the conditions of service, such as the inclusion of a housing allowance. At the start of the salary negotiations, the following positions were held: Labour: an 11% salary increase, back-dated to April 2010; an increase in the housing allowance of R1650 and the equalization of the medical aid subsidy of open medical aid schemes with Government Employees Medical Aid Scheme (GEMS). The Employer i.e. the DPSA: a 5.2% increase, with an implementation date of the 1 July 2010. The housing allowance was to be discussed as separate to the salary negotiations, and the subsidy to GEMS would not be equalized for open medical aid schemes. On the 9 June a dispute was declared by Labour. The positions of both parties were follows during the dispute: 14 FEBRUARY 2012 PAGE: 412 of 447 Labour: the salary increase to be reduced to 8.6%, back-dated to 1 April 2010, with the housing allowance decreased to R1000; and the equalization of the medical scheme contributions maintained. The Employer i.e. the DPSA: the salary increase to be increased to 5.3% and subsequently 6.5%, with the implementation date maintained at the 1 July 2010, while the housing allowance was be considered at R620, and the contribution of the state to open medical aid schemes not to be extended. Conciliation was set for the 18 June 2010, but on 29 June, the arbitrator issued a certificate that confirmed the dispute as unresolved. The PSA and COSATU embarked on protest actions from 29 – 30 July and 10 August, respectively. A full-blown strike was declared on the 16 August and lasted for three weeks. The strike was suspended on the 09 September 2010. A National Joint Operations Committee was established to manage the strike. The Committee consisted of the representatives from the following entities: South African National Defence force South African Police Services National Intelligence Agency Department of Public Service and Administration Department of Justice and Constitutional Development Government Communications and Information System 14 FEBRUARY 2012 PAGE: 413 of 447 The sectors of government that suffered the most severe effects of the strike were Education, Health, Justice and Constitutional Development (courts); and Home Affairs (ports of entry). On the 31 August 2010, the employer tabled a revised offer, which contained the following terms: Salary adjustment of 7.5% for the financial year 2010/11 with effect from 01 July 2010 Housing allowance: increased from R500 to R800 per month with effect from the 01 July 2010. In terms of the ‘No-Work-No-Pay’ rule, a total of R4,3 billion was recovered /deducted from salaries and wages of public servants that participated in the strike. A total of 373 complaints were laid against employees, 610 arrests were made, with 286 cases still under investigation. 3.3 CENTRE FOR PUBLIC SERVICE INNOVATION The Centre of Public Service Innovation (CPSI) was established in 2001 by the Minister for Public Service and Administration. In 2008 it became the first Government component, as listed in the amended Public Service Act, 2007. In its new governance form, it continued to operate as part of the portfolio of the Minister for Public Service and Administration. The strategic orientation of the CPSI is located in the need to improve the effectiveness and efficiency of the systems, structures and processes of public administration by entrenching a culture and practice of innovation in the public sector. It does this through: 14 FEBRUARY 2012 PAGE: 414 of 447 supporting the creation of institutional conditions and structures within public sector for fostering innovation; unearthing, encouraging, rewarding and showcasing innovation in the public sector preparing business cases for and piloting of various technological and non-technological innovative solutions through strategic partnerships; and establishing local, regional, and international networks and partnerships in order to share information and to remain at the cutting edge of innovation. The CPSI is organised into four work-streams. The work streams are: 3.3.1 Programme 1: Programme Management The purpose of Programme Management is to ensure the overall administration and governance of the CPSI, in line with the applicable acts, regulations and shared services arrangement with the DPSA. This is achieved through: Overall project co-ordination; Co-ordination of all project and back-office duties related to the Executive Director; Provision of an effective and efficient back-office support service (office management) to the CPSI as guided by the relevant regulations and shared services arrangement with the DPSA; 14 FEBRUARY 2012 PAGE: 415 of 447 Coordination of activities around statutory reporting and information management; Coordination and operationalising of the shared-services agreement (MoU) with the DPSA; and Developing and implementing internal policies. The Programme Management Office (PMO) ensures that the administrative load on the other work streams is minimized by functioning as a focal point for all financial management, procurement and human-resource-management-related activities. 3.3.2 Programme 2: Research and Development (R&D) The purpose of the R&D work-stream is to investigate and recommend sustainable models and solutions to the Public Service for innovative service delivery. This is achieved through analyzing challenges and exploring suitable solutions and models that could inform innovative service delivery. This stream also proposes monitoring and evaluation measures for effective implementation and records innovative projects in all spheres of government for publication and possible replication. 3.3.3 Programme 3: Solution Support and Incubation (SSI) The SSI work-stream is responsible for driving the testing and piloting of innovative solutions in partnership with stakeholders and for customizing or adapting of both local and global solutions to local service delivery challenges. This unit facilitates the creation, adaptation, piloting, demonstrating and mainstreaming of innovative solutions within the public sector. A key element of the unit’s work 14 FEBRUARY 2012 PAGE: 416 of 447 is to provide a platform, in the form of multi-media innovation and implement innovative solutions to service delivery challenges. 3.3.4 Programme 4: Enabling Environment (EE) The CPSI believes that, for innovation to be successfully applied, the work environment should be conducive to creative thinking, with sufficient support and opportunities to innovate. This unit is thus tasked with creating and sustaining an enabling environment which entrenches a culture and practice of innovation in the public sector. This is achieved through: co-ordinating innovation knowledge platforms and products as well as rigorous awareness campaigns on the importance of innovation in the public sector; rewarding innovative practices and projects; and ensuring regional, continental and international access to, and sharing of innovative practices and lessons. Some of the CPSI’s ongoing programmes are: The Annual Public Sector Innovation awards, Public Sector Innovation Conference, CPSI Innovation Journal, Capacity building for innovation in the public service, UNPAN Portal, and the 14 FEBRUARY 2012 PAGE: 417 of 447 Multi-media Innovation Centre Some of the successes of the CPSI are: Hosting the fourth Public Sector Innovation Conference hosted from the 31 August – 1 September 2010. Hosting the 8th annual, innovation awards ceremony in November 2010 Publishing and broadly disseminating the second and third editions of the Public Sector Innovation Journal Ideas that work Piloting the assistive device for visually impaired teachers in 2010; and hand-over of the project to the Department of Education. The awarding of two awards to South Africa by the United Nations in September 2010 for the contribution to the UNPAN Portal. 3.3.5 Governance The CPSI’s budget constituted 3.6% of the voted funds for the Department of Public Service and Administration. The CPSI has been, in terms of the provision of goods and services, allocated resources for an organisation consisting of five staff members, based on its structure as a Section 21 entity. 14 FEBRUARY 2012 PAGE: 418 of 447 The CPSI indicated that its research capacity should be strengthened in order for the organisation to be able to conduct more ‘in-depth’ investigations of persistent service delivery challenges, with the aim of finding or generating innovative solutions to address those challenges. The projected budget per over the medium term as per programme is: 2011/12 2012/13 2013/14 (R- Thousands) R R R CEO (including 6345 6552 7039 2627 2732 2935 Solution Support 2917 3033 3257 2959 3540 3800 14848 15857 17031 PMO) Research and Development and Incubation Enabling Environment Total 3.4 PUBLIC SERVICE COMMISSION The Public Service Commission (PSC) derives its mandate from sections 195 and 196 of the Constitution, 1996 and the Public Service Commission Act, 1997. It is an independent and impartial body, created to promote the values and principles contained in Section 195(1) of the Constitution throughout the Public Service, as contained in section 195(2) of Constitution, 1996. It also has the 14 FEBRUARY 2012 PAGE: 419 of 447 power to investigate, monitor and evaluate the Human resource practices of the Public Service and make recommendations to the executive in accordance with adherence to section 195 (1) of the Constitution. The PSC must report at least once a year to Parliament. The PSC conducted a review on its Monitoring and Evaluation system workshop with the delegation. The workshop focused on progress made thus far in monitoring and evaluating the performance of government departments, as per set performance standards, in line with section 195(1) of the Constitution, 1996. It was explained that the Monitoring and Evaluation system in place measured compliance with the nine values in Section 195 of the Constitution, 1996. The assessment of departments consisted of set assessment indicators; indicators are broken up to five performance standards. The evaluators collect evidence in a department on the standards and the department would then be scored against the standard. 3.5 PUBLIC PROTECTOR The Public Protector is a constitutionally established, independent body, who is appointed by the President, in terms of Section 181 of the Constitution, 1996. Section 182(1)(a) of the Constitution mandates the Public Protector to investigate any conduct in state affairs, or in the public administration in any sphere of government, that is alleged or suspected to be improper or result in any impropriety or prejudice. There are twenty walk-in offices of the Public Protector across the country. Any matter over which the Public Protector has jurisdiction, may be reported to or lodged as a complaint with the Public Protector. The investigations that the Public Protector could conduct ranges from maladministration, undue delay in service, discourteous behavior, improper conduct to fraud and corruption. 14 FEBRUARY 2012 PAGE: 420 of 447 The Office of the Public Protector has undertaken to: be trusted and accessible to all persons and communities; provide prompt remedial action; and ensure that promotion of good governance in the conduct of all state affairs be maintained. A priority of the Public Protector for 2011/12 was broadening ‘access’ through outreach, education and communication programmes. It was explained that the organisation needed to reach out to people and ensure that there existed a particular level of comprehension in respect of the work done by the organisation. SECTION TWO: FINDINGS PER ENTITY 4. FINDINGS 4.1 PUBLIC SERVICE CO-ORDINATING BARGAININIG COUNCIL The understanding of what constituted the Public Service by the PSCBC differed from the understanding held by the Committee. As such, it was highlighted that the PSCBC only dealt with bargaining for provincial and national government. The only essential services that a bargaining sector/ council was established for was the Police, yet the PSCBC had the power to establish bargaining councils for any sector in the Public Service. 14 FEBRUARY 2012 PAGE: 421 of 447 Local Government’s bargaining is done through the South African Local Government Association (SALGA), while national and provincial legislatures, as organs of state, do not have bargaining councils. It was not clear why the local sphere of government was excluded. Furthermore, Police is an essential service, as are legislators, yet all three spheres of government and organs of state are governed by the principles set out in Section 195 of the Constitution, and the PSCBC is empowered by the Labour Relations Act. No mechanism has been established to resolve disputes between Ministers and Director-Generals. It is believed that staff in the national and provincial legislatures, heads of departments and municipal workers should enjoy the same protection of labour legislation, as they form part of the Public Service, as outlined in the Constitution, and should be protected by section 27 of the Constitution, 1996. The PSCBC indicated that they would be open to hosting the negotiations earlier in the year, perhaps before government budgets were decided upon for the following year, or before Parliament has passed the budget votes. A multi-term agreement could also be a possibility, but it was cautioned that there was no obligation on either of the negotiating parties to stick to a multi-year agreement. The operating costs of the PSCBC were exceeding the levies received and collected. The PSCBC should look at increasing their levies for the general Public Service Coordinating Bargaining Council, as some of the sub-councils established are able to charge a larger levy to members. 4.2 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION It was concerning that staff of the Department remained in acting positions for long periods of time. This arrangement was temporary, and posed a challenge to the quality of work they produced in that 14 FEBRUARY 2012 PAGE: 422 of 447 acting capacity, as they could not be assessed on it. Furthermore, it was against the priorities of government to fill vacancies, and create jobs. It was highlighted that matter should be taken up with Minister of Public Service and Administration, as he should be setting the example for the rest of the Public Service with practices in the Department that he was directly responsible for. The decision taken by the Minister of Public Service not to negotiate through the media was appreciated. It was difficult for the Department to keep record of school teachers that taught during the strike of 2010. There was a process under way to train regional officers involved in keeping records in order to get them involved in record-keeping of non-striking public servants during future strikes. For an open medical aid scheme, the maximum subsidy provided was R1 014, whereas, with GEMS, the subsidy provided was R2 600 for four people. GEMS was well marketed in the Public Service; with the state providing a better subsidy for GEMS than the other medical aid schemes. It was important to note that the state and members were represented on GEMS board. This ensured that the state and members would remain priorities for GEMS. Neither the state nor public servants enjoyed the same level of focus and say in the private medical aid schemes. An example of how GEMS was looking after the interests of the state was the monitoring of the use of medical aid benefits in order to verify sick leave taken by public servants in specific departments. This was in order to monitor the abuse of sick leave by public servants, especially in government departments where there is high risk or exposure to stress that can result in depression, anxiety, and alcoholism. The Department was working with GEMS to monitor the situation. A commission was set up to evaluate public servants that could be classified as providing essential services. It was also highlighted that the Labour Relations Act was outdated. 14 FEBRUARY 2012 PAGE: 423 of 447 The overview of the Departments’ intentions and structure was informative, but it was not clear how the Department was to penetrate rural areas, especially with ICT services. ICT systems in hospitals were not connected to each other, which hampered efficient and effective service delivery to patients. Various Occupational Specific Dispensations (OSDs) were implemented, with the only ones outstanding being for occupational therapists in the Department of Health. There were some people that expected that they would receive salary increases, but they did not qualify. Most provinces’ challenges were resolved. The only province where challenges are still expected is KwaZulu-Natal. There was a guide on sanctions, which presented a uniform set of sanctions to be implemented across the Public Service, but the challenge was that the Department was not responsible for discipline in some other departments. Its authority extended only to providing a guide. The disciplinary procedures for officials that have allegations of corruption against them should be completed; even if such officials leave the Department. 4.3 CENTRE FOR PUBLIC SERVICE INNOVATION The delegation took a tour around the innovation centre, which consisted of several interactive computer systems. The purpose was to get an explanation of the work of the CPSI, the red-tape project that they had undertaken, and the correctional services lessons of best practices. The delegation also learnt of the Limpopo perma-culture school feeding scheme that the CPSI had piloted. The programme was replicated in the Helen Joseph Hospital, where psychiatric and HIV/AIDS patients took care of the gardens. The perma-culture feeding scheme was also replicated in 14 FEBRUARY 2012 PAGE: 424 of 447 old age homes. Innovation desks are being implemented in provinces and municipal offices in the metros. It was highlighted during the presentation that the CPSI had embarked on a project to reduce the number of vacancies in hospitals. Persons on social grants were approached and trained. The CPSI contributed to South Africa being the second highest contributor to the UNPAN portal. CPSI has been tasked with submitting the SADC’s contributions to the portal. CPSI is partnering with Public Administration Leadership and Management Academy (PALAMA) for PALAMA’s Executive Development training. Here,the CPSI is responsible for the Innovation module. The CEO has separate staff from the Minister, but the staff of CPSI is seen as part of the DPSA’s staff complement. This poses challenges for the recruitment of staff for the CPSI. There is an allocated budget for staff for the DPSA, and, once that budget is exhausted by the department, the CPSI cannot recruit staff to perform its tasks. Although this poses a grave challenge to CPSI, it has led to many of the staff currently seconded to the CPSI, being multi-skilled during their employ at the CPSI. The non-registration of CPSI as a government component poses challenges to the independence of the CPSI, since it is still seen as part of the DPSA. The CPSI indicated that it required approximately R5 million to recruit middle management and project managers. However, since the CPSI is not registered as a government component, the accounting authority for the CPSI’s funds is the Director-General for the Department of Public Service and Administration and this causes difficulties. Most of the projects implemented and replicated were biased towards rural areas. There was a challenge of how the CPSI budgeted for pilot projects, since if the pilot project was a failure, it could 14 FEBRUARY 2012 PAGE: 425 of 447 be seen as fruitless and wasteful expenditure. This motivated the CPSI to seek out donors for their more risky pilot projects. The CPSI has established a relationship with State Information Technology Agency (SITA) and the Department of Science and Technology. The workload of the CPSI poses a problem for its small staff complement and budget. It is understood that the matter of CPSI being registered as a Government Component was being considered by National Treasury, which would transmit its views to the legal services unit of DPSA. It was not clear whether the successful projects presented to the delegation would be rolled out throughout South Africa. 4.4 PUBLIC SERVICE COMMISSION It was concerning that the PSC, as a constitutionally independent entity, still had its budget allocated and accounted for by the Minister for Public Service and Administration, despite the Committee having raised this concern in two previous Committee budget vote reports. The Committee was informed that majority of Head of Departments (HODs) had not signed their performance agreements. It was reported that only two HODs had signed their agreements at the national level for the 2009/10 performance cycle. This led to Ministers being unable to hold HODs accountable for their work. The PSC is unable to have a dedicated research unit, which is due to budgetary constraints. The PSC reported that it had phased out the unit, so that it might focus primarily on grievances. This is in line with the requirements of the grievance rules. 14 FEBRUARY 2012 PAGE: 426 of 447 It was commendable to note that, in instances where the PSC had dealt with grievances, investigations had been conducted and recommendations had been made. Recommendations made by the PSC were implemented by the relevant departments. In instances where HODs did not co-operate with the investigations, warrants of arrest had been issued. The Committee appreciated the manner in which the PSC runs its National Anti-Corruption Hotline, which operated for twenty-four hours per day. It was reported that the hotline service was conducted and managed in eleven official languages. The service had been outsourced. The monitoring and evaluation system was commendable, as it was based on evidence of performance as per set standards. When recommendations are made, the Committee was informed, Commissioners themselves go to departments to ascertain whether they are implemented.. Cases of poor service delivery were due to poor planning. Departments embarked on projects on which they had not consulted the affected community. This resulted in a serious challenge to the effective delivery of services. There was a general consensus that an informed citizen participated with ease in the programmes of government. 4.5 PUBLIC PROTECTOR It concerned the Committee that there were about 16 000 complaints processed for the 2011/12 financial year; yet only a mere 40 had resulted in reports. The shortage of staff exacerbated the problem, as it was reported that the current staff complement consisted of only 275 employees. 14 FEBRUARY 2012 PAGE: 427 of 447 The Committee heard that the work of the Public Protector was often made difficult by organs of state that refused to co-operate during investigations. Investigators worked under extreme pressure, as they were often required to report within thirty days on cases being investigated. The Office of the Public Protector used also still used manual filing, although it was explained that a case management system was in place, but needed further development and funding. The Office of Public Protector had, as of 31 March 2011, reported a deficit of about R12 million. This was of major concern to the Committee. There was a need for more financial resources to be directed to the Office of the Public Protector. The capacity to investigate cases was hampered due to shortage of staff. The Office of the Public Protector was meant to be accessible to the public, but the Head Office was not clearly signposted in the roads surrounding it. SECTION THREE 5. CONCLUSIONS 5.1 PUBLIC SERVICE CO-ORDINATING BARGAININIG COUNCIL The current running costs of the PSCBC exceeded its income received from public servants’ levies. Legislators of South Africa as a sector, being classified as performing essential services, required the attention of the PSCBC. It was also concluded that the streamlining of the Public Service wage negotiations would also require the attention of the PSCBC, as the costs of strikes had devastating effects on the economy of South Africa. 14 FEBRUARY 2012 5.2 PAGE: 428 of 447 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION The operations of the DPSA were seemingly efficient, with a lean staff complement formulating and monitoring policies for human resource management for the Public Service. However, if staff were to act in vacant positions for extended periods, it placed the Department under pressure to perform the same amount of functions, with fewer staff. 5.3 CENTRE FOR PUBLIC SERVICE INNOVATION The Centre for Public Service Innovation was established to foster innovation in the Public Service. It was established under the Public Service Amendment Act of 2007, yet the CPSI is still struggling to register as a government component. Once it is established as such, it can be run independently of the Department of Public Service and Administration. Its strategic report shows that a large proportion of the vote funds go to Administration; yet, it only has a small staff complement, with several interns employed. In total, the staff complement is less than a division/branch under a Deputy DirectorGeneral within the Department of Public Service and Administration. The CPSI’s flagship project is the Public Service Innovation Awards, which recognize innovators in the Public Service. In light of the number of people employed and their outputs, it seems as if the CPSI is running an efficient operation. However, it is not clear how much its office space costs to rent. 5.4 PUBLIC SERVICE COMMISSION The Public Service Commission was pleased to hosts the Committee at its offices, as it was the first time the Committee had visited the offices of the PSC. The Workshop on the review of their 14 FEBRUARY 2012 PAGE: 429 of 447 monitoring and evaluation processes resonated with the Committee, as it had recommended that the PSC should report on the implementation of section 195 of the Constitution for all entities mentioned in section 195(2). This is in line with the recommendations of the Committee’s report on the PSC’s State of the Public Service Report 2010. The operations seemed to be run efficiently, but the Information Communication Technology (ICT) services required bolstering. SITA could be consulted on the ICT support for the PSC. 5.5 PUBLIC PROTECTOR It was the Committee’s first time to visit the Offices of the Public Protector. It was difficult to find the building without road-signs indicating where the offices were. There was a strong-room for the keeping of all the hard copies of files safe. However, its systems could be digitaliized. The library was empty and the Committee feels that the Office of the Public Protector could use the Parliamentary BRRR process to motivate for more funding. 6. RECOMMENDATIONS The Portfolio Committee, having duly reported on its oversight visit for 2011, recommends the following: 6.1 PUBLIC SERVICE COORDINATING BARGAININIG COUNCIL The period in the year that negotiations take place should be reconsidered. It is recommended that Labour and Government reach agreement on the salary levels before departmental budgets are signed 14 FEBRUARY 2012 PAGE: 430 of 447 off by National Treasury. However, this recommendation requires further discussion by the parties involved. A bargaining council should be created for the national and provincial legislators of South Africa, in order to ensure that public servants working within legislators are also protected by the labour laws of South Africa. 6.2 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION The Minister of Public Service and Administration should report to the Committee on the progress made with filling of vacancies that exist within the Department of Public Service and Administration. 6.3 CENTRE FOR PUBLIC SERVICE INNOVATION The CPSI should, through the Minister of Public Service and Administration, resolve their establishment as a government component as soon as possible. A report should be submitted to Parliament on the progress made in this regard six months from adoption of this report by the National Assembly. 6.4 PUBLIC SERVICE COMMISSION 6.4.1 The Budget of the Commission had always been a separate vote until the 2010/11 financial year. The budget of the Public Service Commission should be removed from the Budget Vote 12 for 2012/13. 14 FEBRUARY 2012 6.4.2 PAGE: 431 of 447 The Commission should issue a directive that all HODs ought to sign their performance agreements by a particular date provided. The HODs and Executive Authorities who fail to adhere to the directive should be reported to Parliament a month after the date specified by the Public Service Commission for signing has expired. 6.5 PUBLIC PROTECTOR 6.5.1 The Office of the Public Protector must make use of the Budgetary Review and Recommendation Reports (BRRR) process of Parliament to receive more funding. In this respect, it should make direct representations to the PC on Justice and Constitutional Development for it to recommend that this Office receive a greater allocation from the Department of Justice and Constitutional Development. Report to be considered WEDNESDAY, 8 FEBRUARY 2012 ANNOUNCEMENTS National Assembly The Speaker 1. Membership of Committees 14 FEBRUARY 2012 PAGE: 432 of 447 The following members have been nominated by their parties to serve on the Ad Hoc Committee on the General Intelligence Laws Amendment Bill. African National Congress Burgess, Mr C Fihla, Mr B Mgabadeli, Mr H Maake, Mr J Williams-De Bruyn, Mrs S Thibedi, Mr J Bhengu, Mr F Alternate Maziya, Mr A Sonto, Mr M Abrams, Mr S Jacobus, Mr L Democratic Alliance Maynier, Mr D Stubbe, Mr D Congress of the People 14 FEBRUARY 2012 PAGE: 433 of 447 Ramatlakane, Mr L Inkatha Freedom Party Msimang, Prof CT The following changes to Committee membership have been made by the Democratic Alliance: Portfolio Committee on Labour Discharged: George, Mr B Ollis, Mr I Appointed: Motau, Mr S Van der Westhuizen, Mr A Portfolio Committee on Agriculture, Forestry and Fisheries Discharged: Bosman, Dr L Du Toit, Mr D Appointed: Steyn, Mrs A Van Dalen, Mr P Portfolio Committee on Transport 14 FEBRUARY 2012 Discharged: De Freitas, Mr M Farrow, Mr S Appointed: Ollis, Mr I Terblanche, Mrs J Portfolio Committee on International Relations and Co-operation Discharged: Mokgalapa, Mr S Mubu, Mr K Stubbe, Mr D Appointed: Davidson, Mr I Eloff, Mr B Portfolio Committee on Arts and Culture Discharged: Duncan, Mrs P Loriet, Prof A Appointed: Van Den Berg, Mr N Van Schalkwyk, Dr HC Committee on Public Accounts PAGE: 434 of 447 14 FEBRUARY 2012 Discharged: Dreyer, Ms A Appointed: George, Dr D Rabie, Dr P Standing Committee on Finance Discharged: George, Dr D Marais, Mr SJF Appointed: Harris, Mr T Ross, Mr D Portfolio Committee on Trade and Industry Discharged: Harris, Mr T Smalle, Mr J Appointed: Hill-Lewis, Mr G James, Dr W Portfolio Committee on Public Services and Administration Discharged: Hill-Lewis, Mr G Van Schalkwyk, Dr HC PAGE: 435 of 447 14 FEBRUARY 2012 Appointed: Du Toit, Mr D Marais, Mr SJF Portfolio Committee on Basic Education Discharged: James, Dr W Appointed: Lovemore, Mrs A Portfolio Committee on Higher Education and Training Discharged: Kloppers-Lourens, Dr J Van der Westhuizen, Mr A Appointed: Bosman, Dr L Loriet, Prof A Portfolio Committee on Social Development Discharged: Kopane, Mrs P Lamoela, Mrs H Appointed: More, Ms E Waters, Mr M PAGE: 436 of 447 14 FEBRUARY 2012 PAGE: 437 of 447 Portfolio Committee on Tourism Discharged: Krumbock, Mr G Terblanche, Mrs J Appointed: Farrow, Mr S Portfolio Committee on Co-operative Government and Traditional Affairs Discharged: Lorimer, Mr J Wenger, Mrs M Appointed: George, Mr B Steenhuisen, Mr J Portfolio Committee on Home Affairs Discharged: Lovemore, Mrs A Appointed: De Freitas, Mr M Portfolio Committee on Mineral Resources Discharged: Marais, Mr E 14 FEBRUARY 2012 Appointed: Lorimer, Mr J Portfolio Committee on Communications Discharged: Michael, Mrs N Van Den Berg, Mr N Appointed: Shinn, Ms M Steyn, Mr A Portfolio Committee on Health Discharged: More, Ms E Discharged: Waters, Mr M Appointed: Kopane, Mrs P Robinson, Mrs D Portfolio Committee on Energy Discharged: Motau, Mr S Appointed: Smalle, Mr J Portfolio Committee on Economic Development PAGE: 438 of 447 14 FEBRUARY 2012 Discharged: Rabie, Dr P Appointed: Krumbock, Mr G PAGE: 439 of 447 Mubu, Mr K Portfolio Committee on Public Works Discharged: Rabotapi, Mr W Steenhuisen, Mr J Appointed: Dreyer, Ms A Swathe, Mr M Portfolio Committee on Women, Children and People with Disabilities Discharged: Robinson, Mrs D Appointed: Lamoela, Mrs H More, Ms E Waters, Mr M Portfolio Committee on Science and Technology Discharged: Shinn, Ms M Appointed: Kloppers-Lourens, Dr J 14 FEBRUARY 2012 Van Dyk, Dr M Portfolio Committee on Rural Development and Land Reform Discharged: Steyn, Mrs A Appointed: Trollip, Mr A Van Der Linde, Mr J Portfolio Committee on Human Settlements Discharged: Steyn, Mr A Appointed: Duncan, Mrs P Mokgalapa, Mr S Portfolio Committee on Police Discharged: Swathe, Mr M Appointed: Stubbe, Mr D Standing Committee on Appropriations Appointed: Mubu, Mr K PAGE: 440 of 447 14 FEBRUARY 2012 Portfolio Committee on Public Enterprises Discharged: Van Dalen, Mr P Van Dyk, Dr M Appointed: Marais, Mr E Michael, Mrs N Portfolio Committee on Sport and Recreation Discharged: Van Der Linde, Mr J Appointed: Rabotapi, Mr W Portfolio Committee on Defence and Military Veterans Appointed: Esau, Mr S Portfolio Committee on Correctional Services Appointed: Max, Adv L Joint Standing Committee on Intelligence Appointed: Max, Adv L PAGE: 441 of 447 14 FEBRUARY 2012 PAGE: 442 of 447 Portfolio Committee on Water and Environmental Affairs Appointed: 2. Wenger, Mrs M Referral to Committees of papers tabled (1) The following paper is referred to the Portfolio Committee on Co-operative Governance and Traditional Affairs for consideration and to the Portfolio Committee on Public Service and Administration: (a) Report of the Public Service Commission on the Assessment of Recruitment and Selection Practices in respect of Section 57 Managers and Municipal Managers – March 2011 [RP64-2011]. (2) The following paper is referred to the Portfolio Committee on Public Service and Administration for consideration: (a) Report of the Public Service Commission (PSC) on the Trend Analysis on Complaints Lodged with the Public Service Commission: 2005/06 – 2009/10 Financial Years – March 2011 [RP65-2011]. (3) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development: (a) Proclamation No R58 published in Government Gazette No 34677 dated 12 October 2011: Referral of matters to existing special investigating unit and special tribunal: 14 FEBRUARY 2012 PAGE: 443 of 447 Kopanong Local Municipality, in terms of section 2(2) of the Special Investigating Units and Special Tribunals Act, 1996 (Act No 74 of 1996). (b) Proclamation No R59 published in Government Gazette No 34713 dated 28 October 2011: Commencement of section 1 of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008): Highveld Ridge. (4) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs for consideration. 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 Rand Water 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 Overberg Water 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 Amatola Water for 2010-11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11. 14 FEBRUARY 2012 (d) PAGE: 444 of 447 Report and Financial Statements of Umgeni Water 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 Pelladrift Water Board for 2010- 11, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2010-11. TABLINGS National Assembly and National Council of Provinces 1. The Minister of Home Affairs (a) Agreement between the Government of the Republic of South Africa and the Ministry of interior of the Republic of Cuba regarding technical support, tabled in terms of section 231(3) of the Constitution, 1996. COMMITTEE REPORTS National Assembly 1. Report of the Portfolio Committee on Further Education and Training Colleges Amendment Bill [B13D – 2011] (National Assembly – sec 76 (1)), dated 7 February 2012: 14 FEBRUARY 2012 PAGE: 445 of 447 The Portfolio Committee on Higher Education and Training, having considered the subject of the Further Education and Training Colleges Amendment Bill [B13D – 11], amended by the National Council of Provinces and referred to the committee, reports that it has agreed to the Bill. Report to be considered FRIDAY, 10 FEBRUARY 2012 ANNOUNCEMENTS National Assembly and National Council of Provinces The Speaker and the Chairperson 1. Classification of Bill by Joint Tagging Mechanism (JTM) (1) The JTM, in terms of Joint Rule 160(6), classified the Traditional Courts Bill [B 1 – 2012], introduced in the National Council of Provinces, as a section 76 Bill and as a Bill falling within the ambit of section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No 41 of 2003). 2. Draft Bills submitted in terms of Joint Rule 159 (1) National Environmental Management Laws Amendment Bill, submitted by the Minister of Water and Environmental Affairs. 14 FEBRUARY 2012 PAGE: 446 of 447 Referred to the Portfolio Committee on Water and Environmental Affairs and the Select Committee on Land and Environmental Affairs. (2) Judicial Matters First Amendment Bill, submitted by the Minister of Justice and Constitutional Development. Referred to the Portfolio Committee on Justice and Constitutional Development and the Select Committee on Security and Constitutional Development. (3) Credit Rating Services Bill, submitted by the Minister of Finance. Referred to the Standing Committee on Finance and the Select Committee on Finance. (4) Financial Markets Bill, submitted by the Minister of Finance. Referred to the Standing Committee on Finance and the Select Committee on Finance. TUESDAY, 14 FEBRUARY 2012 ANNOUNCEMENTS National Assembly The Speaker 1. Appointment of Assembly Whips 14 FEBRUARY 2012 PAGE: 447 of 447 The following members had been appointed as whips of the African National Congress in the National Assembly with effect from 1 December 2011: Mr L Suka Ms A van Wyk Mr D D van Rooyen