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TUESDAY, 18 NOVEMBER 2008
____
PROCEEDINGS OF THE NATIONAL ASSEMBLY
____
The House met at 14:03.
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: Order! I wish to announce that the vacancy
that occurred due to Mr K P Motlanthe being elected
President has been filled by the nomination of Mr L M Kgabi
with effect from 14 November 2008 and that the vacancies
caused by the resignations of Ms G J Fraser-Moleketi, Mr A
G H Pahad, Mr M G P Lekota, Ms A T Didiza, Mr A Erwin and
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Ms S P Rwexana have been filled by the nomination, with
effect from 14 November 2008, of Mr E Godongwana, Ms D N
Sikosana, Ms T B Sunduza, Mr P O Moloto, Ms J C MoloiMoropa and Mr X B Mabaso respectively.
In terms of section 48 of the Constitution, members of the
National Assembly must swear or affirm faithfulness to the
Republic and obedience to the Constitution before they
begin to perform their functions in the NA.
I also wish to announce that the vacancy which occurred in
the National Assembly owing to the resignation of Mr T D H
Ramphele, has been filled with effect from 31 October 2008,
by the nomination of Ms T M A Gasebonwe.
I further wish to announce that the vacancies which
occurred in the National Assembly owing to the resignation
of Ms P G Mlambo-Ngcuka, Mr E G Pahad, Mr R Kasrils and Mr
F S Mufamadi, have been filled with effect from 31 October
2008, by the nomination of Ms T M A Gasebonwe, Ms A C
Mashishi, Ms S B Moiloa-Nqodi, Mr F C Fankomo and Ms F J
Wright respectively. The members made and subscribed the
oath or affirmation in my office.
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NOTICES OF MOTION
Mr N SINGH: Madam Speaker, I hereby give notice that, at
the next sitting, I shall move on behalf of the IFP:
That the House notes that -
(1)
the IFP has been a consistent critic of the
ministerial blue lights, which have been a source of
chaos on the provinces’ roads;
(2)
in the latest incident a member of the security unit
of the KZN MEC for Social Development, Meshack
Radebe, has been arrested for shooting at a tyre of
a motorist who failed to move over to a slower lane
of the N3, near Pietermaritzburg, on Saturday,
causing an accident that left eight people injured;
(3)
the IFP believes that MEC Radebe must be held
accountable for this incident;
(4)
the IFP further believes that clear guidelines and
rules now need to be put in place so that this
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unlawful behaviour is stopped before innocent lives
are lost;
(5)
the users of blue lights seem now to have become a
law unto themselves; and
(6)
an urgent debate in Parliament is therefore called
for on this matter.
GLOBAL FINANCIAL CRISIS AFFECTING BOTH DEVELOPED AND
DEVELOPING COUNTRIES ALIKE
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move
without notice:
That the House ...
Mr M J ELLIS: Madam Speaker, there are other motions
without notice before we get to the Order Paper. I wonder
if we could put those first.
The SPEAKER: Yes.
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BARACK OBAMA WINS AMERICAN PRESIDENTIAL ELECTION
(Draft Resolution)
Mr M J ELLIS: Madam Speaker, I move without notice:
That the House –
(1)
notes that Barack Obama was elected the 44th
President of the United States of America on
Tuesday, 4 November 2008;
(2)
further notes that the 2008 US presidential election
saw the highest voter turnout since 1908,
demonstrating how Americans have embraced their
democratic right to have a direct say in the
governance of their country;
(3)
recognises that Barack Obama is the first black
president of the United States, signifying how he
has been able to transcend racial prejudice and also
how the country has overcome injustices of the past
that include slavery and segregation;
18 NOVEMBER 2008
(4)
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acknowledges how this election united Americans from
different races, cultures, religions and age groups,
who all voted for Barack Obama;
(5)
congratulates Barack Obama on his election as US
President and all Americans who voted and who
succeeded in making these US elections an example of
democracy at its best and a model worthy of
emulation across the world; and
(6)
wishes President Obama well for his presidential
term.
Agreed to.
WORLD AIDS DAY
(Draft Resolution)
Ms S V KALYAN: Madam Speaker, I move without notice:
That the House –
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(1)
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notes that Monday, 1 December 2008, is World Aids
Day and marks the 20th anniversary of this
internationally recognised day;
(2)
further notes that the number of people living with
HIV/Aids is continuing to rise in every part of the
world and that there are now around 33 million
people living with HIV/Aids worldwide;
(3)
recognises that South Africa has one of the highest
prevalence of HIV/Aids in the world and around 65%
of Aids-related deaths occur in sub-Saharan Africa;
(4)
further recognises that people living with HIV/Aids
often face discrimination from others due to the
fact that HIV/Aids still carries a social stigma in
our country and that the pandemic has pervaded
every sphere of our society and has left over a
million children orphaned across South Africa;
(5)
acknowledges the selfless role stakeholders in
civil society and in local communities have played
in fighting the enormous social consequences of the
HIV/Aids pandemic in our country;
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(6)
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further acknowledges that education is needed to
prevent an increase in new infections and that all
South Africans, especially our leaders, need to
speak loudly and unambiguously about HIV/Aids; and
(7)
calls on all South Africans to stand together to
fight this pandemic and to support and care for
those whose lives have been ravaged by HIV/Aids.
Agreed to.
GLOBAL FINANCIAL CRISIS AFFECTING BOTH DEVELOPED AND
DEVELOPING COUNTRIES ALIKE
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move
without notice:
That the House –
18 NOVEMBER 2008
(1)
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notes the serious global financial crisis that is
affecting
both
developed
and
developing
economies
across the world with no abatement;
(2)
further
notes
that
the
deteriorating
economic
environment is largely a result of a slowing global
economy
following
trajectory,
a
the
world’s
sustained
low
longest
inflation
growth
and
low
interest rates periods resulting in reckless lending
practices, holding of risky speculative assets and
derivatives,
low
appreciation
of
risk
management
practices and deregulation of the financial sector,
leading to the collapse of the inter-bank lending
system,
withdrawal
curatorships
and
of
a
liquidity
bust
in
short-term
the
bank
international
financial systems;
(3)
further
notes
that,
despite
pursuance
of
a
neo-
liberal agenda, a substantial majority of developed
countries, especially the United States of America,
USA, and the United Kingdom, UK, have embarked on
partial nationalisation of banks as well as some of
the
financial
institutions
that
are
seriously
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affected by the current financial crisis over and
above bailing them out financially;
(4)
recognises
world
that
leaders,
Markets
and
the
meetings
including
World
and
the
Economy,
declarations
Summit
the
on
G-20
of
Financial
meeting
of
Finance Ministers and Governors, and the meeting of
African
Ministers
of
Finance
and
Planning
and
Governors of the Central Banks have conceded to the
call for strong action to be taken to stabilise the
financial system, the use of appropriate fiscal and
monetary
policy
to
stimulate
domestic
demand,
greater macroeconomic co-operation to avoid negative
spillovers,
support
for
emerging
and
developing
markets and the need to ensure the restructuring of
the
International
Monetary
Fund,
IMF,
the
World
Bank, WB, and other Multilateral Development Banks,
MDBs;
(5)
believes that the resolution taken by the recent
119th Inter-Parliamentary Union General Assembly in
Geneva
to
international
the
causes
organise
as
parliamentary
and
effects
soon
as
possible
conference
of
the
to
an
examine
international
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financial crisis on the global economic system and
identify ways of dealing with the consequences of
this crisis, is correct; and
(6) urges the Parliamentary Network on the World Bank,
PNoWB, Conference, which will convene in Paris from
18 to 22 November 2008, to provide leadership as
elected
public
current
crisis
representatives
as
a
matter
and
address
the
of
urgency
in
consultation with the IPU.
Agreed to.
MOTION OF CONDOLENCE
(The late Prof Es’kia Mphahlele)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker I move
without notice:
That the House –
(1) notes with profound sadness the death of Professor
Es’kia Mphahlele on Monday, 27 October 2008;
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(2) further notes that Professor Mphahlele lived out a
career that was emblematic of a whole generation of
writers;
(3) recalls that, together with Lewis Nkosi, they were
leading and towering figures in the Drum generation
of writers that came to prominence in the 1950s in
the magazine of which he was responsible for editing
fiction stories and for which he was also a
political reporter;
(4) further recalls that in 1957 Professor Es’kia
Mphahlele left the country of his birth, South
Africa, and went to live in exile in, amongst
others, countries such as Nigeria, Zambia, Kenya and
the United States of America;
(5) recognises that he has written several books that
depict the life of a black South African, which
include: Down Second Avenue, Africa My Music, Man
Must Live and The Wanderers, to mention but a few;
and
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(6) conveys its condolences to the Mphahlele family, his
friends and the academic fraternity.
Agreed to.
MOTION OF CONDOLENCE
(The late Mrs Vuyiswa “Tiny” Nokwe)
The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move
without notice:
That the House -
(1) notes with sadness the passing away of Mrs Vuyiswa
“Tiny” Nokwe, on 24 October 2008;
(2) recalls that, after her matriculation at Langa High
School in Cape Town, she went to study at the only
tertiary institution in the country at that time
that allowed black students, the University College
of Fort Hare, where she obtained her BSc degree in
1951 and B.Ed in 1952 and that it was while at the
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same institution that she met the love of her life,
Advocate Dumalisile Nokwe;
(3) further recalls that in 1964, together with Manzo,
she left the country of her birth and settled in
Zambia,
where
she
took
up
a
teaching
post
and
quality
of
remained till she returned home;
(4) acknowledges
that
the
outstanding
selfless
dedication
and
willingness
whatever
capacity
was
the
to
hallmark
serve
of
in
this
remarkable lady and freedom fighter, and that she
showed that one could maintain dignity and still be
a fearless fighter; and
(5) conveys its condolences to the Nokwe family and the
African National Congress.
Agreed to.
MOTION OF CONDOLENCE
(The late Mama Miriam Zenzile Makeba)
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The CHIEF WHIP OF THE MAJORITY PARTY: Madam Speaker, I move
the draft resolution printed in my name on the Order Paper,
as follows:
That the House -
(1)
notes with shock and profound sadness the untimely
death of Mama Miriam Zenzile Makeba on Sunday, 9
November 2008;
(2)
further
notes
that
the
Goodwill
Ambassador
for
South Africa died doing what she does best, namely
communicating a positive message through the art of
singing while she was taking part in a concert for
Roberto Saviano, a writer threatened with death by
the Mafia;
(3)
recalls
that
throughout
her
life
Mama
Makeba
communicated a positive message to the world about
the struggle of the people of South Africa and the
certainty
of
victory
over
the
dark
forces
of
apartheid colonialism through the art of song, and
that she was the legendary voice of the African
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continent that remained very strong for democratic
changes;
(4)
recognises that Mama Africa received a Grammy Award
for
Best
Folk
Recording
in
1965
with
Harry
Belafonte for An Evening With Belafonte/Makeba and
that
the
album
was
about
black
South
Africans
living under apartheid, and also that she became
the first black African woman to receive a Grammy
Award,
which
she
shared
with
folk
singer
Harry
Belafonte in 1965; and `
(5)
conveys its condolences to the Makeba family, her
friends and the arts community.
The SPEAKER: Before I give parties an opportunity to
address the motion as introduced by the Chief Whip, I want
to acknowledge the presence of Miriam Makeba’s family in
the gallery, and also that of one outstanding South African
actor and cultural worker, Zakes Mokae, who lived with
Miriam Makeba in the States for many years. They are
present in the Speaker’s bay. Welcome to the House.
[Applause.] Mr Mokae is accompanied by his friends, also
from the States, and his wife, Mandy. Welcome to the House.
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The DEPUTY PRESIDENT: Madam Speaker, may I also start by
welcoming, yet again, and recognising the friends and
family of Miriam Makeba.
Hon members of Parliament and fellow South Africans, I am
honoured to join the millions around the world to
commemorate the living memory of Mama Miriam Zenzile
Makeba. This past weekend at her memorial service, we
joined the multitude of fans of this world-acclaimed icon
to pay our last respects and say: Thank you, Mama Miriam,
for sharing your life with us.
We acknowledge that she has returned to her everlasting
home to watch over us as she did in this world in her
capacity as our mother, sister and story teller in song.
The whole world recognises her stellar achievements in the
world of music in particular and culture in general.
She accomplished a great deal since her debut with
legendary groups like the Manhattan Brothers and the
Skylarks. As the National Heritage Council, NHC, said:
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Our country and the musical world at large have not only
lost an irreplaceable idol but we have lost a cultural
institution all by herself.
She extended the horizons of African musicians and inspired
a whole generation of Afro-pop and Afro-jazz musicians. We
have lost a singer par excellence who used her beautiful
voice of unique rhythmic power to spread a message that
stated simply that injustice anywhere must be challenged
and the struggle for truth must continue. Even in her last
days, she was participating in a concert in Italy for an
Italian journalist whose life had been threatened after
publishing a book critical of the mafia.
Today, we are gathered in this House to remember South
Africa’s Goodwill Ambassador to Africa, to pay homage to a
woman who sacrificed much for us to be free. Her
contributions to our liberation are legendary, as when she
stood at the United Nations in 1963 to decry and denounce a
system of unimaginable dehumanisation to its citizens.
Those of us who were privileged to bask in her glory and
glow in her shadow recall a woman and a sister whose
humility came naturally.
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Mama Miriam was not a pretender to her queenly throne. She
was kind, she was giving and she was there for her
contemporaries who struggled to cope with life in exile.
Mama Miriam’s actions spoke louder than our pronouncements
of her abilities as a caring singer.
In being honoured as South Africa’s first ever Goodwill
Ambassador in March 2001, the former President said that he
recognised and honoured Ms Makeba’s contribution over the
decades in playing a lead role internationally, in the
struggle for the African people’s freedom and their
emancipation from slavery, colonialism and apartheid, and
in the instilling of pride in African history, culture and
civilisation.
Africa has lost a true daughter and patriot to whom it was
unforgivable to be a singer and just entertain without
educating the world about the tragedy of women survivors in
the Democratic Republic of Congo, DRC.
In March this year, she went to the DRC in her capacity as
the Food and Agriculture Organisation Ambassador. She also
expressed concern to us here in South Africa about sexual
violence. Her words ring true for Africa that even though
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women, and I quote, “guarantee the survival of 80% of
households ... they are frequently victims to rape”.
These are not the words of a woman who was only interested
in world fame or becoming rich; she was acquainted with the
sea of poverty, hunger and hopelessness besetting our
families and neighbourhoods. Her life is a message by
itself to all people who aspire to either public office or
celebrity status. Her life says to all of us as public
representatives that such positions carry a responsibility
to those without a voice. Her life says that to be a public
figure is to be selflessly dedicated to the poor, the
marginalised and the vulnerable. Mama Makeba managed to
combine effortlessly her commitment to her craft and art
along with her love for her people, especially young
children.
The accolades she garnered in the five decades she was in
the public spotlight speak to a person who could not sit
idly by when she was told of the abused girl-children, who
did not have a home and people to care for them.
These accolades speak to someone who founded and became a
benefactor to the Makeba Rehabilitation Centre for Girls,
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which opened in 2003 in Midrand. This centre caters for
girls ranging in age from 11 to 17 years, and what is truly
touching about this centre is that these girls come from
dysfunctional families, and some are orphans.
She has done it all and received all known
acknowledgements, from Grammy Awards to a Swedish Polar
Music Prize, as well as the Dag Hammarskjöld Prize for
Peace in 1986, and in 1999 she received the National Order
for Meritorious Service from South Africa.
Her story of triumph in this world does not end here. Mama
Miriam is a woman, a mother, a grandmother and a greatgrandmother who also took up the initiative of developing
continental networks among women from South Africa and West
Africa. In this capacity she set up a Skills Development
Exchange Programme, which is a continent-wide
collaboration.
It is my wish that the younger generation of musicians that
are trustees of her legacy will take up the baton and work
to transform lives of others for the better. This is what
“Mama Africa” has striven to do since she went into exile
in 1959, being a light of inspiration to her fellow
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musicians, lifting up and empowering women and children and
simply being an unparalleled role model to all of us.
It was thus befitting that she was voted 38th in the top
100 poll of Great South Africans in 2004.
I recall her words on the already-mentioned trip to the DRC
this year:
I would like my visit to this country to be an opportunity
to renew and strengthen our commitment and ensure that
innocent victims suffering from hunger have access to the
necessary resources to cultivate their hopes for a better
life.
When I think of Mama Zenzile Makeba, I seem to recall
another heroine, Ms Ella Fitzgerald, when she sang Skylark.
The lyrics to this classical tune are familiar on this
occasion:
Skylark, have you anything to say to me? Is there a meadow
in the mist? Have you seen a valley green with spring?
Where my heart can go a-journeying over the shadows and
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the rain to a blossom-covered land? Oh Skylark, won’t you
lead me there?
I see I have some time, and I wish to share with you some
of the words we listened to at the funeral service on
Saturday.
When the Minister of Arts and Culture addressed the funeral
service, among other things, he referred to the endless
love of music of “Mama Africa”.
She kept telling us that she was retiring. And I think hon
members will remember when she sang to us, some years back,
at one of those beginning-of-the-year concerts. She did
even on that occasion announce that she was retiring. But
look where she died, coming down from a stage, after
singing. She could never get herself to stop singing. I
always say she left beautifully, because she left us after
doing something that was what she enjoyed most in life;
what she did best in life.
I also want to refer to the words of Minister Nkosazana
Dlamini-Zuma, who referred to her generosity. Among stories
she told was a story of how Mama Miriam came across her
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daughter at an airport, and the child had lost her luggage.
Without hesitating, she took out some money and gave it to
her to go and buy clothes for herself. That is why we say
that she was not just a star on stage; she was a beautiful
human being, a mother and a very gentle person.
In working with the Ministry of Foreign Affairs, she cooperated unhesitatingly with the Minister on the many needs
that they had to address, sometimes without having planned
ahead, and she would immediately just offer herself and her
energies to assist in addressing the problems that the
department was faced with.
The speech that touched me most was that of her 13-year-old
great-grandson, who told us that, of course, he ought to
have been calling her “ukhokho” that is great-grandmother,
but he called her “gogo” [grandmother]. He also said that
she was her own person.
She got to America and, of course, any normal human being
would immediately start playing the game according to what
the people around you are doing, but Miriam stayed African;
in the way she carried herself, in the songs that she sang,
the preoccupations that, in fact, informed the content of
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the music. At the end, Lindelani said that we should learn
from her.
I think that that is a great message that we should also
leave in this House today. In the way she lived her life,
the way she loved Africa, and, in fact, became more of an
African than a South African, we should learn from her.
I believe that a better place is where Mama Makeba is at
present.
At her memorial service this past Saturday, I was touched
also by a wonderful rendition of hers of a biblical song,
and I felt that it was a fitting end to a most dignified
life and a most dignified woman. The song I am referring to
is titled When I Die Tomorrow, and I wish to briefly quote
its touching lyrics,
When I die tomorrow, I will say to the Lord, Oh Lord
you’ve been my friend. Thank you, Lord. Oh Lord, I’m your
child, Oh Lord, I am your child.
May her soul rest in peace!
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Thank you.
Mrs D VAN DER WALT: Madam Speaker, `` a larger-than-life
lioness of the struggle and a songstress in whom Africa had
found her voice’’: This is how the publicist, Mark Le Chat,
so aptly paid tribute to Miriam Makeba in his foreword to
her 2004 album, Reflections. As he recounted his presence
in the hot and fevered atmosphere where her arrival was
awaited in a downtown club in Johannesburg in December of
1990, suddenly, he recounts, the room went quiet in a
reverential kind of way as Miriam Makeba stood in the
doorway, clothed in a headdress and robe fashioned from the
gorgeous fabrics of Guinea-regal, yet paradoxically humble.
She was seemingly shy. Yet the owner of a powerful persona
which took your breath away momentarily before the
assembled crowd burst into ululating, applause and tears.
The mark that Miriam Makeba left on the global music scene
and the great service that she has done to both African and
South African music will live on for decades to come.
She remains one of the most important female vocalists to
have emerged out of South Africa. She has rightly been
hailed the Empress of African Song and Mama Africa, not
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only for her prowess as a musician but also for helping to
bring African music to a global audience in the important
decade of the 1960s.
More than five decades after her debut with the Manhattan
Brothers, she continued to play an important role in the
growth of African music on the stages of the world. The
fruits of her musical contribution will live on for decades
to come and nothing will ever be able to relegate it, or
the memory of her gorgeously pitched range and the husky
drift of her voice, to the forgotten annals of music.
But Miriam Makeba’s contribution was not only in terms of
music. Her life was marked consistently by struggle. Born
into poverty, she soon recognised that music was a type of
magic which she could use to uplift herself. But she would
always balance her vocal successes with her outspoken views
about apartheid and racial injustice across the world,
something for which she came to pay a heavy price.
In a regrettable step, the government of South Africa
revoked her citizenship in 1960. This forced her to be a
citizen of the world for the next 30 years, albeit a world
that for the next 30 years was not entirely welcoming,
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since a number of Western governments also became
unsympathetic towards her for her association with the
civil rights movement.
In a lesson to all of us, Miriam Makeba prevailed as a
force of good and a force of musical beauty - her fate in
death being nearly as poetic as her fate in life.
On 9 November 2008, in the moments before her passing, she
was taking part in a concert organised for a social cause,
to support writer Roberto Saviano in his stand against the
Camorra, a mafia-like organisation local to the region of
Campania.
Miriam Makeba has shown herself to be a great South
African. She has distinguished herself as a daughter of
Africa who was proud of her continent and who enlivened
many of its grand steps to liberation. But most
importantly, Miriam Makeba was an outstanding global
citizen who spoke out about injustice everywhere in the
most beautiful songs that will permeate homes, public
spaces and memories for decades to come. Lala kahle, Mama
Africa. [Rest in peace, Mama Africa.] [Applause.]
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The HOUSE CHAIRPERSON (Mr M B Skosana): Thank you, Madam
Speaker, hon Ministers, Deputy Ministers and hon members,
on behalf of the Inkatha Freedom Party and its President,
Prince Mangosuthu Buthelezi, I join the hon members of this
respectable House in expressing our sincere condolences to
the family of the late Miriam Makeba, her friends and all
people of South Africa.
Much has been said about her over the past days: her life,
her music and her friends – some of whom, I understand, are
also here with us - her achievements, her accolades and her
selfless sacrifice in the struggle for South Africa’s
liberation. When one talks about Mr Zakes Mda, then I
remember a play called, Come Home Child.
The demise of Miriam Makeba is a great loss for South
Africa and the world, from all those who were touched by
her dynamic presence and personality to those whose hearts
and souls were charmed by her majestic melody and song.
Indeed, we are all poorer without her. However, we must
derive much solace and comfort in the magnanimous spirit
she left with us. And like Thucydides in her oration of a
funeral, we say:
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For heroes have the whole earth for their tomb; and in
lands far from their own, where the column with its
epitaph declares it, there is enshrined in every breast a
record unwritten with no tablet to preserve it, except
that of the heart.
The people of Italy blessed with the last performance and
song from Miriam Makeba that fateful evening will testify
to their fortune. Miriam Makeba was bequeathed to the world
community at a very tender age. She became South Africa’s
ambassador of goodwill decades before this title was
officially conferred on her by the former President, Mr
Thabo Mbeki.
Persecuted at home with racist draconian laws, Miriam
Makeba amassed exceptional courage to tell the painful
story of the people of South Africa to the United Nations,
presidents, kings, and prime ministers around the world.
Long after the mourning period is over and tears of sorrow
have been gracefully wiped away, long after memorial
services and eulogies have passed, long after the gospel
choirs, symphonies, musicians and bands of all shades have
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ended their renditions, Miriam Makeba’s beautiful song will
remain with us and with the people of the world.
For now, let us be content that the songbird sings no more
for us, but sings with the angels above. May God keep her
soul. Amen. [Applause.]
Mr G T MADIKIZA: Madam Speaker and hon members, the United
Democratic Movement wishes to extend our deepest heartfelt
condolences to the family, friends and colleagues of the
late Miriam Makeba during this time of bereavement.
Mama Africa, as she was affectionately known, attained many
tremendous achievements during her lifespan. She will be
remembered as a person who lived her life to the fullest.
She will also be remembered for her talent, style and
passionate belief in what she was doing, as well as
carrying a message of hope for South Africans during trying
times inside and outside the country.
Her legacy lives on through the accomplishments of her
children and the younger generation who aspire to be
musicians. The youth of today can learn from the discipline
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and respect that Miriam Makeba embraced throughout her
life.
She was rated among the leading proponents of change in
South Africa. We have lost a true role model whose work
will always be remembered. Indeed, hers is a sad loss to
the country and to the continent. May her soul rest in
peace. I thank you. [Applause.]
Mrs P DE LILLE: Madam Speaker, on behalf of the ID, I want
to express our condolences to the family of our sister,
Miriam Makeba. Mama Africa’s contribution towards the
struggle against apartheid can never be overstated. Miriam
Makeba was the daughter of the soil who liberated our
country with her beautiful voice. She appealed to young and
old, and her activism as a singer who sang about real
issues is a hard act for singers of today to follow. We
will forever be indebted to her for the countless times we
were made to feel alive and free by her beautiful voice,
even during oppression.
To her family and millions of fans around the world, I
would like to say, this is not only a time for mourning; it
is also an opportunity to celebrate the contribution of her
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life to our nation. May her soul rest in peace. Thank you.
[Applause.]
Rev K R J MESHOE: Madam Speaker, the ACDP is saddened by
the loss of Mama Africa, Zenzile Miriam Makeba; a great
lady, musician, activist and an ambassador for black people
everywhere, who made famous the phrase, “black is
beautiful.” Her rich voice sang songs that decried
oppression wherever she found it. Her “Click Song” and
“Pata Pata” become international hits, bringing attention
to the plight of black people suffering under apartheid.
She declared that she would sing until the day she died,
which she did, in Italy, in the open air at an antiracism
and anti-Mafia concert.
Mama Africa twice addressed the United Nations, speaking
out against the evils of apartheid, and her fearless
humanitarianism earned her many international awards. She
weathered many storms, including several car accidents, a
plane crash and even cancer, and was as active in her
latter days as if she were still a young girl.
It was heartwarming to hear that at the age of 74, Mama
Makeba insisted on doing a studio interview when she could
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have stayed home and done it over the telephone. It
revealed a woman of much humility despite her immense fame.
The ACDP expresses heartfelt condolences to the family. We
join you, together with people all over the world, in
mourning your great loss. Thank you. [Applause.]
Mr P H K DITSHETELO: Madam Speaker, hon members, the
legendary South African singer, fondly known as Mama
Africa, has passed away. In 1963, her South African
citizenship was revoked after testifying before the United
Nations Congress on the issue of apartheid. She was not
welcome in her own country, but 10 different countries made
Makeba an honorary citizen and they all issued her with
passports.
The South African government’s radio and television refused
to broadcast her songs until 1989. It was only in 1990,
when many long-exiled South Africans returned, that she was
able to return home. We want to honour her today and thank
her for the tremendous sacrifice and contribution she made
by leaving behind her family and still continuing to make
us proud as she used her fame to focus attention on the
abomination of apartheid.
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Re lebogela botshelo ba ga Mama Afrika. O dirile tiro ya
gagwe e e neng e mo tshwanetse, e e neng a e rata. O
tlhokafetse a e dira. A Modimo o nne le ena. Re leboga le
go utlwa botlhoko le bagaabo. A kagiso e nne le bone.
[Legofi.] (Translation of Setswana paragraph follows.)
[We would like to pay tribute to Mama Africa. She played
her part. She was passionate about singing; that is why it
was not surprising that she met her untimely death while
singing. Let the Lord be with her. We celebrate her life
and we would like to convey our condolences to her family.
Let peace be with them. [Applause.]]
Ms S RAJBALLY: Madam Speaker, I cannot express the shock
and dismay I felt when hearing the news of the passing away
of our beloved Mama Africa. The late Miriam Makeba was a
light to our nation and her melodious voice rang out the
sweetness of our people, on being African.
Miriam Makeba, though a great celebrity and loved globally,
did not live unscathed by the apartheid regime. Her return
to South Africa brought back to our people an angel of
light, to whom she was a best friend, a mother and a
sister.
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The MF takes this opportunity to express our deepest
condolences to the family, friends and the entire nation on
the loss of this magnificent artist and an amazing lady,
Miriam Makeba. Miriam, you will always be our angel and as
you “Pata Pata” our hearts, you’ll live in them forever.
God bless you. May you rest in peace. Thank you.
[Applause.]
Dr S E M PHEKO: Madam Speaker, Miriam Zenzile Makeba defied
the circumstances of her birth. She was only 18 days old
when her mother was imprisoned for six months for brewing
African beer. This was illegal according to colonial laws.
Her mother took her with her to jail. Miriam also lost her
father when she was six years old. Childhood was, for
Miriam Makeba, a bundle of despair, but she rose to be a
celebrated musician internationally and earned the title
“Mama Africa”. She was not a politician, but a musician par
excellence. She was sensitive to the national humiliation
of her people. Many of her songs spoke to suffering and
dispossession of her people. She sang ...
Bahleli bonke etilongweni; bahleli bonke kwaNongqongqo.
Yini na ma-Afrika?
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She sang:
Nanku, nanku uSobukwe; nanku, nanku noMandela.
She sang:
Abantwana beAfrika bakhalela izwe labo, elathathwa
ngabamhlophe. Mabawuyeke umhlaba wethu!
She consulted with Johnson Makhathini of the ANC and David
Sibeko of the PAC at the United Nations. She treated all
leaders of our country with respect. She knew that all
freedom fighters of this country were sacrificing for some
noble cause. She gave them equal respect and recognition,
and her speech is testimony to this.
Anyway, death is a necessary end. “It will come when it
will come,” as Shakespeare put it, but in the context of
eschatology, death is a passport to a deathless land beyond
the universe. Mama Africa for now:
Mabawuyeke umhlaba wethu.
We shall sing that song until the objective for which the
liberation struggle was waged is achieved.
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Tsamaya ka kgotso kgabane ya Afrika, re lla le lona he, ba
ha Makeba. Bohle re tseba hore ngwana wa lona e ne e se
moradi wa lona feela, e ne e le moradi wa Afrika, e ne e le
moradi wa rona kaofela. Re a le leboha ka ho mo adima batho
ba Afrika. Ke a leboha. [Mahofi.] (Translation of Sesotho
paragraph follows.)
[Go well, Mama Africa; we sympathise with you, the Makeba
family. We all know that your daughter did not belong to
you alone; she was the daughter of Africa, and she was a
daughter to all of us. We thank you for lending her to the
people of Africa. Thank you. [Applause.]]
Mr L M GREEN: Madam Speaker, the late Miriam Makeba was a
world musical icon. She was a daughter of this soil who
sang her way into the hearts of millions of people, and her
“Click Song” brought melodious joy to all of us. “Pata
Pata”, one of her most famous songs, is a classic and as it
means dance, we believe that such was the influence of her
songs. It brought happiness to our souls.
She will be missed, but she died while doing what she does
best, and that is singing to international audiences. Her
death will be mourned by us all, for she has made her mark
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on the world stage; not only as a singer, but as a
humanitarian activist as well. She made her contribution to
making this world a better place. Her virtues were those of
integrity, respect for others, charity and unselfish
service.
South Africa has over the past few years lost many
excellent artists through death, some naturally, others
through violence. We become poorer in spirit if these icons
are not recognised for what they contribute to the soul of
our nation.
On behalf of the FD, I wish to express our sincere
condolences to the family of Miriam Makeba. May the Lord be
with the family and loved ones of the late Miriam Makeba
during the time of bereavement and may they be consoled
with the knowledge that though she is no longer with us,
her songs and memories will remain in our hearts for
generations to come. May the soul of Miriam Makeba rest in
peace. Thank you. [Applause.]
Debate concluded.
Motion agreed to.
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MOTION OF CONDOLENCE
(The late Mr B Nair)
The CHIEF WHIP OF THE MAJORITY PARTY:
That the House -
(1)
notes with profound sadness the passing away of Mr
Billy Nair on 23 October 2008;
(2)
recalls
that
Mr
Nair
committed
his
life
to
the
cause of freedom, peace and democracy and that he
joined the Natal Indian Youth Congress in 1949,
became its Secretary in 1950 and later joined the
Natal
Indian
Congress
and
that
he
was
also
a
volunteer in the 1952 Defiance Campaign and served
on
the
first
executive
committee
of
the
South
African Congress of Trade Unions;
(3)
further recalls that Mr Nair was active in Umkhonto
weSizwe from its establishment on 16 December 1961
and in 1963 was charged with sabotage and received
a
20-year
sentence,
which
he
served
on
Robben
18 NOVEMBER 2008
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Island and that Mr Nair had also been a member of
the
national
Democratic
South
executive
Front,
African
the
committee
Central
Communist
of
the
Committee
Party,
the
United
of
the
National
Executive Committee of the ANC and in 1994 became a
Member of Parliament until 2004;
(4)
acknowledges the momentous role played by Mr Nair
towards the birth of
a nonracial, nonsexist
and
democratic South Africa, as well as his immense
contribution in the reconstruction and development
of our country; and
(5)
conveys
its condolences to the Nair family, the
African
National
Congress
and
the
South
African
Communist Party.
Agreed to.
The SPEAKER: The condolences will be conveyed to the Nair
family, the African National Congress, and the South
African Communist Party.
CONCERN ABOUT GLOBAL FINANCIAL CRISIS
18 NOVEMBER 2008
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(Member’s Statement)
Mr T J BONHOMME (ANC): Madam Speaker, on the statement of
the global financial crisis, the African National Congress
has observed, with great concern, the current global
financial crisis that has affected, and is still seriously
affecting both developed and developing economies across
the board with no abatement.
The epicentre of this extremely grave financial market
crisis is the USA. South Africa’s financial sector has
borne up relatively well and for several reasons including,
as it is widely acknowledged, the remaining exchange
control measures.
But the global economic crisis will certainly impact upon
South Africa’s economic growth prospects over the next
years and pose challenges for job creation and other
development goals. The global crisis will also impact upon
the persisting systematic points of vulnerability: currency
volatility, the current account, and the inflationary
pressures.
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Despite the advocacy of the neoliberal agenda, a
substantial majority of developed countries, especially the
United States and United Kingdom, have embarked on partial
nationalisation of the banks, as well as some of the
financial institutions that experienced the current
financial crisis, over and above bailing them out
financially.
The African National Congress-led government continues to
work for changes at the World Trade Organisation, the
International Monetary Fund and the World Bank and thus
mandate government to prioritise efforts to fight poverty
and to build the economies of developing countries; to work
to make multilateral institutions more accountable to the
people of the South; to work to strengthen the United
Nations and specialised economic agencies and promote
greater coherence between the different multilateral
agencies. I thank you, Madam Speaker.
RELAUNCH OF DEMOCRATIC ALLIANCE
(Member’s Statement)
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The LEADER OF THE OPPOSITION (DA): Chairperson, may I also
express my condolences to the family of Miriam Makeba, whom
I first heard in concert in Berlin in 1969.
The relaunch of the Democratic Alliance signals a new
promise and a new approach: a promise that we can turn
South Africa into a society in which everyone has a fair
chance at achieving their dreams, irrespective of the
circumstances of their birth, and a renewed determination
to address the injustices and to transcend the racial
divisions of our country’s past for the benefit of all the
people of South Africa.
It melds our core philosophy of an open opportunity-driven
society for all with our historic quest to promote and
defend the Constitution and our democracy.
One nation, one future: the security of all our children,
women and men, a market economy appropriately regulated and
focused on creating jobs, and a welfare safety net for
those who cannot provide for themselves. We now express
each of these concerns as an integrated part of our new
identity.
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This step signals the DA’s confidence as a party that
speaks to the needs of the people with real policy
alternatives. Most importantly, our new identity shows we
are a party of government and not just opposition – a
winning party that will prove its governing mettle after
the next election. ANC, beware. [Interjections.]
WELCOMING OF DELEGATION FROM REPUBLIC OF KENYA
The HOUSE CHAIRPERSON (Mr A C Nel): Hon members, before I
give the IFP an opportunity, could I recognise the presence
in the gallery of a delegation from the parliament of the
Republic of Kenya, led by the hon Fred Kapondi Chesebe.
Welcome to Parliament. [Applause.]
INTERVENTION IN KWAZULU-NATAL IN TERMS OF SECTION 100 OF
CONSTITUTION
(Member’s Statement)
Mr H J BEKKER (IFP): Chairperson, whilst the rest of South
Africa, and the world for that matter, are trying to be
financially prudent, the overspending of departments in the
KwaZulu-Natal government has meant that the intervention of
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National Treasury is needed to keep government services
going.
In his presentation to the provincial legislature finance
committee, the KwaZulu-Natal head of treasury said that 11
out of the 16 departments were currently overspending.
Overexpenditure for the 2009 year is now at R2,1 billion,
with the health department alone overspending by R1,5
billion. This mismanagement and the irresponsible actions
of these departments mean that service delivery, which is
already slow, is going to be hampered even further,
resulting in inconvenience and suffering for the many
people whom they are meant to be helping.
It is obvious that there is a lack of leadership and
management, and that the current management cannot deliver
and provide the necessary services to the people of
KwaZulu-Natal. It is with this in mind that we call upon
the Minister of Finance to intervene directly in terms of
section 100 of the Constitution. I thank you.
REGISTRATION OF VOTERS
(Member’s Statement)
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Mr W M SKHOSANA (ANC): Chairperson, the ANC welcomes the
efforts demonstrated by all South African patriots in
defending the democratic gains of all the people and
advancing towards a society in which the government is
freely chosen by the people. The IEC set aside the weekend
of 8 and 9 November 2008 as voter registration weekend.
A total number of 1 648 189 new registrations were
received, whilst another 1 752 596 currently registered
persons applied for registration in new voting districts
following the change of addresses. A further 293 871
reregistered in their same voting districts, these having
already registered previously. The total number of recorded
visits to the registration stations came to about 3 694
656.
The drive has far surpassed the expectations of the IEC and
we are all delighted to see a successful weekend drive to
register new voters, especially the youth, who represent
the majority of the weekend registration actively at about
77,9%. The IEC says: “We are proud to say that this was our
most successful registration since 2000.”
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However, there have been some challenges that cropped up
during the registration relating to the setting up of the
some voting districts and opening time. We urge the IEC
to attend to these challenges. The ANC urges all registered
voters to participate in their millions in the elections of
2009 and renew the democratic mandate of the ANC. I thank
you. [Applause.]
ALLEGED CORRUPTION AT SAA SENIOR MANAGEMENT LEVEL
(Member’s Statement)
Ms N C NKABINDE (UDM): Thank you, Chairperson. The UDM
notes that the SAA finds itself, once again, embroiled in a
scandal. This time, the Sunday Times claims that the CEO
has been involved in breaking the company policy by
reinstating Voyager miles to a person supposedly employed
to investigate corruption in the SAA.
It is nonsensical to commit corruption in pursuit of
fighting corruption. If this were an isolated incident of
dubious management at the SAA it would have been cause for
concern. The SAA has not seen a year go by in the past
decade without management and financial woes. In the past
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few years this House has bailed out the SAA to the tune of
billions of rands.
It is especially galling for the thousands of workers who
have lost their jobs during the SAA’s restructuring and the
many workers who still face retrenchment, to witness the
excess and the unpunished transgressions of senior
management. Whilst thousands of workers are uncertain about
their future, the man at the top is paid a fortune despite
wasting the resources of the company. The UDM calls on the
board of SAA to act immediately on these latest
allegations. I thank you.
TEENAGE PREGNANCIES
(Member’s Statement)
Mrs P DE LILLE (ID): Chairperson, may I use this
opportunity to congratulate you on your appointment as the
chairperson. As we enter the 16 days of activism against
women and children abuse, the issue of teenage pregnancies
must be dealt with. But it cannot be dealt with through
knee-jerk reactions and solutions that put the sole
responsibility and blame on teenage girls.
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The ANC’s President’s comments that pregnant teenage girls
must be sent to boarding schools perpetuate the patriarchal
and sexist values in our society. Why is it that girls and
women have to bear the responsibility alone? What about the
responsibility of the boys and men? Why are we not
confronting the power relations within our society that are
leading to girls being victimised while men refuse to take
responsibility for their actions?
The ID believes that we need real solutions to the many
social problems afflicting our society. Real leadership
means standing up for what is right rather than mouthing of
the rhetoric that simply entrenches the values that need to
be challenged in our society. Thank you.
EDUCATION SUMMIT IN GUGULETHU
(Member’s Statement)
Ms N M MDAKA (ANC): Chairperson, the Gugulethu
parliamentary constituency office, in partnership with the
metro central education district and other stakeholders,
held a successful two-day educational summit on Friday, 24
and Saturday, 25 October at the Ekhwezi Community Centre.
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The summit was an initiative of the Gugulethu parliamentary
constituency office, after visiting and consulting with
schools as part of a fact-finding exercise through
readiness earlier this year.
The primary focus of the summit was to look at various
challenges facing schools in Gugulethu, ranging from poor
matric results, school vandalism, crime, teenage pregnancy,
lack of recreational facilities in schools, drug abuse,
etc.
The summit was attended by various local stakeholders,
including the MP deployed into the area, Ms Ramakaba-Lesiea
and the MEC for education, Mr Yousuf Gabru, in order to
engage these challenges and come up with solutions. Some of
the resolutions taken were: the formation of the Gugulethu
education forum, that education should not be treated as a
government matter alone but in partnership with
communities, and that the summit should be held annually in
order to check the progress made on the summit resolutions.
The ANC is committed to the principle of building a caring
society. I thank you.
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THE STRUGGLE OF INDIANS
(Member’s Statement)
Ms S RAJBALLY (MF): Chairperson, I would first like to
congratulate you on achieving your seat. I’m not going to
call you Deputy Speaker.
Chairperson, 148 years ago, the ships Bulverde and Tyrol
left Calcutta and Madras for South Africa, bringing onto
our shores Indians who were indentured to do manual labour.
Today, I stand here requesting all to recognise the
struggle of these people and the great contribution Indians
have made to the development of South Africa.
Under a segregated system Indians too bore the brunt of the
apartheid regime and, together with the other victims of
the system, fought for the freedom of our people. We
applaud all who share this heritage by realising the value
of every person in South Africa. We encourage unity and so
stimulate our ability to address our country’s challenges.
Thank you.
CONSTRAINTS ON OPERATION OF SCOPA
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(Member’s Statement)
Mr E W TRENT: I hope the Minister of Finance will listen,
since he’s in the House.
If the Democratic Alliance becomes the government of South
Africa, we will ensure that Parliament plays its oversight
function effectively and well. It is for this reason that
we agree, Chairperson, with what you said this morning,
seven hours ago, at the Auditor-General’s briefing, namely
that this Parliament must leave a firm foundation which the
next Parliament will be able to build upon, when it comes
to oversight.
Sadly, this legacy will not be achieved because of the way
in which the Standing Committee on Public Accounts, Scopa,
was stopped from attending to its affairs because of narrow
party-political considerations. Scopa’s responsibility is
critical. It is to oversee prudent spending on the part of
public persons to ensure that the executive remains
accountable to South Africa and to the taxpayers.
The fact that the ANC pays lip service to oversight and
accountability is vividly demonstrated by the fact that
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Scopa will - out of a total of 248 departments,
constitutional institutions and entities - only consider
the reports of four departments and entities this year scarcely one per cent. Even the resolutions of these four
will probably never reach the National Assembly because
they will only come next year.
We believe, in fact, that the public hearings for tomorrow
and Friday are a total waste of resources. When the DA
proposed that the Scopa should be given permission to sit
during the constituency period, we were blocked by the ANC
majority in the committee. To them, I suppose, sorting out
the ANC’s internal political problems, clearly, took
precedence over our government departments’ oversight.
On 23 October 2008, I wrote to the Speaker and to this day
I haven’t heard a ruling from her about why we can’t sit
during constituency periods.
The HOUSE CHAIRPERSON (Mr A C Nel): Hon member, I’ve
audited your time. It has expired. Thank you.
PROVISION OF HOUSING
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(Member’s Statement)
Mr D C MABENA (ANC): Chairperson, the democratic
government, led by the African National Congress, together
with our people, works tirelessly to ensure that people can
live where they choose to be decently housed and to bring
up their families in comfort and security.
The Gauteng Provincial Government, led by the ANC, has in
the past five years made progress in providing our people
with housing, thus restoring dignity to those who live in
poor communities.
In the current financial year alone, the Gauteng Provincial
Government has provided the poor people with 64 000 houses
- far exceeding the target of 58 000 they set for
themselves for the current financial year, ending in March
2009. This has resulted in 318 000 people having proper
shelter and enjoying security of tenure for the first time
in their lives.
The ANC endorses the principle that all South Africans have
a right to a secure place in which to live in peace and
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dignity. We believe that housing is a human right. Thank
you.
DRUG ABUSE IN SCHOOLS
(Member’s Statement)
Dr R RABINOWITZ (IFP): Chairperson, the IFP notes with
concern the increasing gangsterism in the Western Cape,
fuelled by the drug intake, especially tik. Drugs are
freely available in schools to children and teachers say
the drug abuse is out of control in some schools.
We are equally concerned that the social fabric is so
fractured in many schools that there is no hierarchy of
discipline between violent students and the police.
Parents, teachers, headmasters and mistresses, and student
leaders have lost control and play no role.
We have made excellent progress in providing
antiretrovirals for pregnant women and the newborn. But we
appear to be bringing children into a world where they are
condemned before birth. We have removed special courts to
deal with children and replaced them with special
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provisions in all courts. Yet, even prosecutors are
disturbed by the lack of support for children and young
raped girls in their courts.
As politicians we may talk glibly of moral regeneration
but, clearly, we seed our society with the wrong values and
we have undermined authority. It is our freedoms that have
inadvertently done this. Our goal should be to create a
harmonious society. But when we fail to do this, as it
appears that we have, we need more urgent and creative
solutions from the Minister of Education and the Minister
of Justice. Therefore, we are looking to you to act
urgently in these regards. Thank you.
COMMUNITY PARTICIPATION IN FIGHTING CRIME
(Member’s Statement)
Mrs D M MOROBI (ANC): Chairperson, the ANC has long
recognised that the police service and government agencies
cannot fight crime alone. In meeting this challenge, they
require the involvement and active participation of all
communities and all sections of society.
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The Gauteng Provincial Government, led by the ANC, embarked
on a campaign focussing specifically on what they term the
“trio crimes.” These are residential, business and vehicle
robberies. Since the start of the campaign in July this
year, 1 333 suspects have been arrested. The campaign
focuses on identifying, tracing, arresting and effectively
prosecuting as many perpetrators as possible while closing
the space for criminals to operate in the province.
The national struggle for freedom led by the ANC was a
critical overarching vehicle to bring about peace, security
and stability to our society. In dealing with issues of
crime, the movement proceeded from the premise that a
rising quality of life also meant an improvement in the
safety and security of citizens wherever they might be.
Thank you.
SHODDY WORKMANSHIP IN MOGOBA COMMUNITY
(Member’s Statement)
Ms J A SEMPLE (DA): Chairperson, the shoddy workmanship of
the toilets being built in Mogoba settlement near
Putfontein in Ekurhuleni is an absolute disgrace. The
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summer rains in Gauteng have barely begun. But by the
registration weekend, about 38 toilets had actually fallen
down. Most are so badly built, and the foundations are so
shallow that there are cracks all around the base. The
toilets lean dangerously at a 45º angle.
This past week has seen continuous rain. More of the
toilets will have fallen down as we speak. It is highly
unlikely that they will still be standing, never mind being
usable, in a year’s time.
Trenches are dug, left open and unmarked. There is no
electricity. So, it is difficult to see the deep open pits.
A member of the community has already fallen into one of
these trenches. He broke his pelvis and subsequently died.
Before some arrogant ANC Minister accuses me of cheap
politicking, I have the pictures to prove it. I have seen
this complete disregard for human life and safety with my
own eyes.
Apart from the shocking waste of taxpayers’ money and the
fact that the contractor should be fired, the democratic
process and the community’s participation are completely
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disregarded. Where is the ANC ward councillor, and what is
the highly acclaimed Community Development Worker doing? DA
members are ignored at ward committee meetings. They are
beaten up and their shacks are burnt down when they try to
raise these issues. The ANC had better wake up and improve
service delivery, otherwise they will be in for a big
surprise at next year’s election. The community is not
prepared to put up with bad service and useless public
representatives. The voters will make their voices heard
through the ballot box.
ALEXANDRA CONSTITUENCY OFFICE ON HOUSING
(Member’s Statement)
Ms S D MOTUBATSE-HOUNKPATIN (ANC): Chairperson, I rise here
on behalf of the Alexandra constituency office.
The Alexandra community held a workshop recently
discussing, among other things, the Constitution of the
Republic and economic rights. There was special focus on
the right to housing. The community looked at the Freedom
Charter once more, which talks about housing security and
comfort. They appreciate the work done by our government in
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housing delivery, and they committed themselves to fighting
corruption in the housing delivery system.
However, the community wishes to strengthen the part of
security as enshrined in the Freedom Charter. They request
that a system of documentation be put in place, especially
with regard to RDP housing, so that there can be a list of
all the people who are the dependants of the registered
tenant. They believe this will strengthen the security
against unscrupulous people who like to buy houses or take
houses if the registered tenant dies or passes on. So, the
request is that there should be a registration of tenants.
This does not imply reinstating or bringing back the permit
system as it was in the 50s and 60s or before our
democracy. We should have a register that will allow all
the people to have security as they live in their houses. I
thank you. [Applause.]
AVAILABILITY OF SPORTS FACILITIES TO ALL SOUTH AFRICANS
(Member’s Statement)
Ms M M NTULI (ANC): Chairperson, the ANC believes that
sport and recreation are integral parts of reconstructing
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and developing a healthier society. Accessibility and
affordability of sport to all South Africans, including
those in rural areas, the young and the elderly, must be
realised immediately.
The ANC-led government is constantly broadening access to
sports facilities, particularly to the poor. At this point,
our government is building a sports and recreation facility
in the area of Meshweshwe in KwaZulu-Natal. This sports
facility is expected to be completed in December 2008. It
will have the following facilities: ablution, change rooms,
palisade fencing, grassed football pitch, concrete
grandstands and combo courts. This year alone, our
government has built 50 sports facilities throughout the
province, particularly in rural areas. These developments
have also facilitated the transfer of skills in areas like
sports fields grass planting, drainage and irrigation
erection, fencing and bricklaying.
The ANC believes that it is important to ensure that sports
and recreation facilities are available to all South
Africans, regardless of race, creed or gender. Thank you.
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INTERVENTION IN KWAZULU-NATAL IN TERMS OF SECTION 100 OF
CONSTITUTION
CONSTRAINTS ON OPERATION OF SCOPA
(Minister’s Response)
The MINISTER OF FINANCE: Chairperson, the statement made by
the hon Bonhomme is a subject of the Ministerial statement
and discussion immediately hereafter, so I think we should
just leave the response to that. The hon Bekker suggested
that we should impose section 100. He did not say which
part of section 100 in respect of KwaZulu-Natal should be
imposed. Wherever we view section 100(1)(a), we have
observed the requirements of Chapter 2 of the Constitution,
which requires co-operative governance. It has always been
done co-operatively.
We have a brand new Member of Parliament today who was once
an MEC in some province where section 100(1)(a) was
applied. He would be able to attest the fact that it was
co-operative. In the context of the Department of Health in
KwaZulu-Natal, the key issue that is driving the cost is
the Occupational Specific Dispensation which is been
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applied in respect of nursing staff. It is a matter which
we are very conscious of. We have discussed it at some
length with both the MECs of Finance and of Health. This
matter is going to be resolved. It’s not as though there is
carelessness or anything. I think that in respect of the
Occupation Specific Dispensation, OSD, it is entirely
circumstantial.
The hon Trent did himself a great disservice because he
started on the wrong footing. There is a greater chance of
chickens growing teeth and than of the DA becoming the
government in this country any time soon [Laughter.]
Because he did himself such a disservice it was a preamble,
and everything else had to fall away. But we observed the
issues. I think that the hon Godi, who at last count was
not a member of the ANC, and who is the Chairperson of
Scopa, is probably in a better position to speak, because
we have no ability to do that on behalf of Scopa. I thank
you.
AVAILABILITY OF SPORTS FACILITIES TO ALL SOUTH AFRICANS
(Minister’s Response)
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The MINISTER OF SPORT AND RECREATION: Chairperson, we would
like to thank the hon Ntuli for the remarks that she made.
We would like to point out that that was not happening in
only one province. It was happening throughout the country
in a much smaller way than we would have wanted it to
happen. For that reason the discussions between the
Minister for Provincial and Local Government and me are at
an advanced stage.
We thought that with the return of the Municipal
Infrastructure Grants to the department, we would be able
to move much faster. This is so, because although this
government is wielding power, it does so in a very hostile
environment, because the legacies of the past stubbornly
continued to haunt our society and our communities. Unless
the balance of forces around the finances and the resources
changes, our communities will be expected to wait a little
longer, and this would be undesirable.
The little bit that we did, by way of providing kit for
poor children - black and white - and by providing travelabroad opportunities for those who showed talent, as
selected by their federations, makes a bigger difference in
the lives of our children. Even though the playing
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facilities were not sophisticated, they offered our
children something that made it possible for them to be
exposed or to expose their talents to the talent scouts and
develop their skills.
We are looking forward to a further partnership with the
private sector, which is showing great interest, because we
must continue to initiate partnerships in this environment.
They are showing great interest in assisting, especially
where MECs like those in KwaZulu-Natal are overzealous. We
encourage that overzealousness in insisting on social
responsibilities from those who are receiving money from
the government to build other facilities. We are not going
to compete with housing or schools and clinics, but
nevertheless, we should get something from our social
partners. I thank you.
EDUCATION SUMMIT IN GUGULETHU
ALEXANDRA CONSTITUENCY OFFICE ON HOUSING
(Minister’s Response)
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The MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION:
Chairperson, we commend the role of the parliamentary
constituency offices to engage the organs of people’s
government and broader civil society on issues of service
delivery and societal development.
The Gugulethu and Alexandra statements presented this
afternoon were examples of active roles that Members of
Parliament – in fact all public representatives - might
play. As a Department of Public Service and Administration,
we created a unit that is going to interact with Parliament
so that we follow up on the issues that communities raise,
as contained in members’ constituency reports. We would
like to encourage members to do their work, so that on
those issues that need follow-up, we would be there to
assist that they are followed up on.
Hi endlelo leri ha tshemba leswaku hi ri Palamende ya
Rixaka ya Swifundzhankulu na le ka timasipala hi nga swi
kota ku humelerisa pfhumba ra hina ra Batho Pele loko hi
kota ku hlangana na vayimeri va tiko na mintlawa ya vaakitiko hinkwayo, hi kanerisana no burisana na vona hi timhaka
ta vukorhokeri bya tiko. Swi na nkoka leswaku hi endla
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sweswo hikuva xidemokirasi xa hina xi vula tano. Inkomu.
(Translation of Xitsonga paragraph follows.)
[In this way we believe that, as the National Council of
Provinces and municipalities, we can make the Batho Pele
campaign a success if we meet with the national
representatives and community groups to plan and discuss
matters around service delivery. It is important to do it
in this way because this is a democratic expectation. Thank
you.]
ALLEGED CORRUPTION AT SAA SENIOR MANAGEMENT LEVEL
(Minister’s Response)
The MINISTER FOR PUBLIC ENTERPRISES: Chairperson, I am
responding to the comments on SAA. I would like to say that
indeed the reports in the media about SAA are worrying.
Therefore, I would like to assure the House that we are
going to follow up and address any problems that we might
have with the SAA.
The HOUSE CHAIRPERSON (Mr A C Nel): No! Are our nation’s
hands in safe hands? [Laughter.]
COMMUNITY PARTICIPATION IN FIGHTING CRIME
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(Minister’s Response)
The MINISTER OF SAFETY AND SECURITY: Chairperson, I want to
commend the hon D M Morobi on her statement. Her statement
is underpinned by the need of strengthening partnerships in
our communities as a contribution to fight crime and create
more stable and safer communities.
I must say that owing to what she said, I think we should
take this opportunity to thank South Africans from
different walks of life. To date, on this call of
partnership, we have met a number of people together with
their traditional leaders, who have their own suggestions
on how to strengthen our communities by partnering with
government to fight crime.
Regarding Business Against Crime, a pilot project was
launched last week which aims to strengthen this
partnership as we come together with the private security
companies as well. We have had a hand in this, and there
have been some contributions from religious leaders who
have come to the fore and said they also want to be
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counted, and they have given some suggestions insofar as
that is concerned.
In the past few weeks, we have been calling everyone,
including those who are in the journalistic fraternity, to
assist in this fight against crime because if we do this
and strengthen our community structures in their different
forms, be they community policing fora, community safety
fora, neighbourhood watches, business watches, street
committees - all of them - we would be able to reap the
fruits, as the hon member has alluded to here, of
apprehending suspects. Thank you very much. [Applause.]
EDUCATION SUMMIT IN GUGULETHU
(Minister’s Response)
UNGQONGQOSHE WEZEMFUNDO: Sihlalo, ngifuna ukuqala ngokuthi
ngibonge kakhulu uQabane umama uRamakaba-Lesiea ngokuthatha
umsebenzi weANC ophuma kwiziphakamiso zasePolokwane awenze
ukuthi kube umsebenzi wehhovisi lakhe laseGugulethu.
Sivumelene ukuthi imfundo sizoyibeka phambili kakhulu kwiANC nanokuthi sizosebenzisana nabazali, nabantwana kanye
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nothisha ezikoleni ukuze abantwana bonke babone ukuthi
imfundo yabo siyayilungisa futhi bathole imfundo enhle
kakhulu. Ngiyambonga-ke umama uRamakaba -Lesiea ngomsebenzi
wakhe eGugulethu. (Translation of isiZulu paragraphs
follows.)
[The MINISTER OF EDUCATION: Chairperson, I would like to
start by saying thank you very much to Comrade RamakabaLesiea for taking the Polokwane resolutions of the African
National Congress and making them part and parcel of her
Gugulethu constituency schedule.
We agreed as the ANC that we are going to make education a
priority. We further agreed that we are also going to work
together with parents, learners and teachers in schools so
that all learners can realise that we are making their
education better so that they can get good quality
education. I therefore thank hon Ramakaba-Lesiea for her
sterling work in Gugulethu.]
Ke a go leboga mmê. Ke a itse gore o motho yo o tshwarang
thipa ka fa bogaleng. O itse tiro e e tshwanetseng gore re
e dire. Fa re ne re dumalana kwa Polokwane re ne re sa
dumalane fela gore re kwale dilo tse dintle mo dipampiring,
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re dumalane ka gonne re batla go bona tshweetso ya rona ya
go dira. Ke a go leboga e bile ke batla gore tiro ya gago e
gole. Fa e le gore o tlhoka thuso ya rona, re tla go thusa.
Re tla leka go dirisana le wena le go go thusa ka tiro e
ntle e o e dirang.
Ka kgang e ya bana ba ba dirisang diritibatsi le bojalwa mo
dikolong, re tshwanetse go oketsa tiro e re e dirang. Re
dira tiro e ntsi go fedisa tiriso ya dilo tse di maswe tse
mo dikolong tsa rona, mme potso e re batlang go e botsa IFP
ke gore, rona re le baemedi mo Palamenteng re dira eng?
Rona re le batsadi fa re bona bana ba rona ba tsena mo
mathateng a, re dira eng? A re bua le bana ba rona kwa gae?
Fa go ne go siame kwa gae, o ne o ka se fitlhele ngwana a
dira dilo tse. Ga re a tshwanela go lebisa dilo tsotlhe kwa
lefapheng la thuto. A re faneng matsogo, re dirisane.
Motsadi, ngwana, morutabana le mongwe le mongwe yo o nnang
mo gae, rotlhe re dirisanye go lwantsha mathata otlhe a. Ke
a leboga. [Legofi.] (Translation of Setswana paragraphs
follows.)
[Thank you, Madam. I know you will act in the best
interests of the situation. The resolutions we took in
Polokwane were not just good on paper, but as a policy
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document to guide our implementation. I thank you and I
would like to wish you everything of the best in your
endeavour. We pledge to offer our help. We promise to work
together with you in your undertakings.
We must do something about the children who do drugs and
use alcohol at school. We are doing a lot to try and put a
stop to their involvement in these bad things but the
question I want to ask the IFP is: What are they doing as
representatives in Parliament and as parents? Do we talk to
our children? If all was well at home, a child would not
have been exposed to such things. We should not make it the
responsibility of the Department of Education to do
everything. Let us join hands to work together. A parent, a
child, an educator and everyone at home, let us face these
problems together. I thank you. [Applause.]]
THE GLOBAL ECONOMIC CRISIS
(Statement)
The MINISTER OF FINANCE: Chairperson and hon members, the
global economy is presently living through its deepest
crisis since the Great Depression of 1929. Around the world,
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people’s representatives like us are engaging with the
impact of this crisis on their respective mandates. I want
to express sincere appreciation for this opportunity to
address the National Assembly on what we know about the
crisis. Earlier today we had an opportunity to discuss these
matters in great detail with the members of the Portfolio
Committee on Finance. Important as those discussions were
found to be, we recognise that the challenges before us
cannot be confined to one or other portfolio committee. The
nature of the challenges is such that they affect the very
fundamentals of all of our work – the crisis indeed gnaws at
the contract that we have with the people of South Africa;
indeed it compels us all to ask about our ability to
contribute to a deep and durable democracy that will lift
millions of our people out of a life of grinding poverty.
First and foremost, this is a crisis of the developed world.
Loose credit extension in the years since the dot-com bubble
burst in 2001 and large fiscal deficits in the USA have
increased the debt of households and governments alike.
These debt levels have become unsustainable. The popping of
these bubbles has had, and will continue to have, a large
global impact.
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Many countries not at the centre of the current turmoil will
suffer terribly and tragically. As firms in developed
countries strive to repair their balance sheets, they tend
to sell everything and repatriate resources back to their
home base. This has implications for us, as it has for many
emerging economies, despite the fact that the epicentre of
this crisis does not lie within our shores. The depreciation
of our currency, the rand, in line with many other emerging
market currencies is testimony to these developments. Of
particular concern is Africa. Strong rates of growth in
recent years are at risk, as commodity prices fall and
countries are forced to pay back capital. These fears pose
the risk that there will be greater demands for protection
from fearful populations and, less benignly, cynical
adventurers. This is the state of the world, and it cannot
be allowed to continue.
If we look at recent events, we recognise that the causes of
all this can only be paraphrased here today. Over the years,
banks purchased vast quantities of loans used for house
purchases in the United States. As interest rates were
increased in 2006 and 2007 in that country, many of those
debtors began to default, putting at risk the value of all
the housing loans. This uncertainty has resulted in the
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share prices of financial and nonfinancial companies
falling, affecting lending operations between the banks.
Financial institutions involved in property, such as
Northern Rock in the UK, failed, while other institutions
experienced increasingly large losses on their investments
in the housing markets. Losses of $200 billion were
predicted in the early days of the crisis. Estimated losses
now stand at an estimated $1.4 trillion, according to the
IMF. Central banks in advanced economies responded by
announcing co-ordinated action to address short-term funding
markets, establishing temporary currency swap arrangements,
and injecting liquidity into the markets. Sovereign wealth
funds were tapped for funding for UBS, Morgan Stanley and
Merrill Lynch and interest rates have been cut sharply.
These actions did little to stem the tide, however.
Investment banks in the US failed, such as Lehman Brothers,
were bought for a song at $2 a share – that was Bear Stearns
- or changed their regulatory stripes to access a deposit
base, and this happened in the case of both Goldman Sachs
and Morgan Stanley. Official support from the US Treasury
and the Federal Reserve to the insurance company AIG now
exceeds $150 billion. Governments have committed about $4
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trillion of support to financial systems around the world.
About $661 billion of write-downs and losses have been
acknowledged so far.
The signs of the spreading economic malaise are abundant. In
the quarter to September 2007, Volvo Trucks sold about
42 000 truck units. In the same period this year, the
quarter to September, they sold just 175. The cost of dry
bulk shipping charter rates as it appears on the Baltic
Index, plunged by 71,9% in October. Whatever ships you want,
they’re available, the costs have dropped. Suddenly, the
world is a very different place. General Motors’ share price
has fallen 88% this year, to $3 a share, which is the lowest
price for a General Motors’ share since 1946. GM, Chrysler
and Ford, the giants of Detroit, have requested a bailout of
some $25 billion as car sales in the US dropped 32% compared
to the same period last year.
The world’s equity markets have declined precipitously.
Since 1 October this year the US Dow Jones Industrial
Average has fallen by about 36%. Brazil’s Bovespa has
dropped by 45%. Russia’s RTS Index has declined by 71%. Our
JSE All Share Index has fallen by roughly 30%.
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One of the great sources of ballast in the world economy has
been the rapid growth of China, which has contributed on
average 20% of the world’s growth in the last 5 years. With
a gigantic population and rapid economic growth, China has
been both a great importer of raw materials and commodities
from the rest of the world and a great exporter too. China’s
demand for commodities contributed to the commodity price
boom the world experienced over the past 6 years.
But China has its own challenges. Each year China must
create 10 million net new jobs to absorb new entrants into
the labour market and people who move from the rural into
the urban areas. The most recent indications suggest that
growth in China has begun to moderate, resulting in lower
imports and putting downward pressure on commodity prices.
Chinese GDP growth slowed to 9% in the 3rd quarter of this
year, from 11,9% last year and 11,6% in 2006. The IMF
forecasts Chinese growth next year will be down to 8,3%.
Commodity prices have responded quickly. The price of
platinum has dropped 47% since 1 January this year. Gold
prices have fallen by over 13% and oil prices by 31%. Coal
prices remain 40% higher than they were in January, but have
declined by 31% since 1 October this year. Falling prices
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for oil and other commodities and the major outflows of
capital from emerging markets in the middle of October
signalled that we have entered a new phase of the crisis.
Economic conditions have deteriorated worldwide. Despite
this, the global economy will continue to grow in 2009, with
all of the growth deriving from developing economies.
World output will fall from 50% in 2007 to 3,7% in 2008 and
to 2,2% next year. Advanced economies’ GDP growth at 1,4%
this year will fall to minus 0,3% next year. African growth
is expected at 5,2% for this year and 4,7% for 2009. Against
this backdrop it is important that we take a view of all of
these events on the South African economy.
Commodity price changes alone have an ambiguous effect on
South Africa, but we should be under no illusions about the
fact that our economy will suffer along with the rest of the
world. The financial crisis is giving way to a real economy
slowdown. Some countries will bear the full brunt of both
the financial crisis, as lending and borrowing has come to a
halt, and the economic crisis. Exports and imports will
fall.
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In South Africa we have experienced at least part of the
financial shock. Our exchange rate has depreciated sharply
and the prices of our equities and bonds have fallen far.
Yet our sound and well-regulated banking system is not
dependent on foreign lines of credit and our exposure to
toxic assets has been nearly nonexistent. Some firms with
extensive international operations have seen losses, but
even these have been small, relatively speaking. Our public
debt levels are low and our level of foreign currency debt
is even lower. This helps to lower our vulnerability to
financial shocks.
Global economic weakness in trade and investment, however,
will have more far-reaching effects. Declining commodity
prices and lower growth in major trading partners will lower
demand for South African exports and reduce the income we
derive from them.
Only one part of our challenge is to ensure an appropriate
short-term response. In the long term, we need to ensure
that our firms and our people are more productive, more
export-oriented, and with higher saving and investment. We
need to be able to achieve much higher economic growth rates
with a sustainable current account.
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It is becoming clear, however, that at least in the mediumterm, our aspirations for more rapid economic growth and our
capacity unfortunately do not match.
Our policies have been appropriate to our macroeconomic
challenges in recent years. We have set a monetary framework
that targets a low and stable rate of inflation over the
long term. As a small economy, we can expect that inflation
will sometimes fall outside the target, and we have
experienced such an occurrence this year and last from
sharply rising food and oil prices, but we are not alone in
this – nearly all countries have missed their implicit or
explicit inflation targets over this period. What matters is
that we have a framework that is flexible enough to ensure
that we achieve low inflation over time and with due regard
for economic growth. The economic and social costs of a
prolonged period of high inflation or deflation caused by
wayward or ill-conceived monetary policies cannot and should
not be tolerated by a democratic society.
On the fiscal side, we have endeavoured since 2005 to raise
saving in the economy and create fiscal space. We did this
for two reasons: One was to offset the negative effects of
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rapidly growing domestic demand on inflation and the
competitiveness of the economy; the other was to create
financial saving to expand demand, should economic growth
fall sharply.
Now we can prudently maintain a healthy growth rate in
government spending while keeping public borrowing modest
and sustaining low long-term interest rates. As growth
slows, however, it is likely to become more difficult to
maintain a positive government saving rate. Continuing to
focus spending on capital and public infrastructure helps to
keep saving up, and so we have opted to continue to
emphasise our public infrastructure commitments, the
expansion of our energy production capability, and to ensure
readiness for the World Cup, among others.
A good track record in financing investment in human capital
in health, education and skills development will also be
maintained. These commitments will help to raise the
economy’s growth rate in the present as investment spending
is maintained, and in the future contribute to rising
potential growth of the economy. Closing the gap between the
6% economic growth rates we aspire to and the realities of
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slower growth we are now experiencing, requires a renewed
effort to reform our economy.
Reform is needed to propel investment. The purchases of
South African bonds and equities by foreigners accounted for
almost half of South Africa’s financing needs between 2002
and 2007. About $20 billion per year, that’s roughly R200
billion at today’s exchange rate, is needed to finance our
current account deficit. So, as people make these calls for
new exchange controls and for isolating South Africa, we
need to remember that that gap in financing our investment
is in the order of R200 billion a year. If we impose harsh
measures on foreigners, we won’t get that money and then we
will have to slow down growth. Continuing to attract foreign
investment implies the need to maintain confidence in our
macroeconomic policies and to raise the growth rate of the
economy.
There is no shortage of good and bad ideas. Our task is to
find the good ones and move forward with the policy
articulation and implementation. Raising the cost of
economic activity and restricting our ability to trade is
obviously not the right path for our country. We live in a
world where our domestic industries, such as the domestic
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auto or metals industries, are intimately and irrevocably
linked to the rest of the world. The indiscriminate
dispensing of cash to firms that lobby for help will also
not raise incomes and create jobs. We have made financing
available for industrial policy. It is time that
economically sensible plans are articulated for public
review and support.
Our focus on government’s contribution to reducing the costs
of economic activity and expanding infrastructure needs to
be matched by investment and productivity growth in the
private sector. There is room for policy adjustment in a
range of sectors to facilitate investment in new businesses
and growth in employment, particularly in network
industries. New power generation, greater responsiveness to
environmental needs, expanding our access to advanced
telecommunications, the redevelopment of water and transport
infrastructure, among other things, imply fertile ground for
public and private partnership and new economic activity.
Let us be clear, the global crisis enjoins us to take
forward our efforts if we intend to permanently reduce
unemployment, increase incomes, and lower poverty. Our
macroeconomic policies are sufficiently flexible to address
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a prolonged economic downturn, as demonstrated in the shift
to a fiscal deficit in the Medium-Term Budget Policy
Statement. We have a good understanding of what the
international community is doing to combat economic
weakness, and we understand the need to address our own
local economic challenges.
Our domestic efforts to address the global economic crisis
need to find external resonance in the reform of the
international financial architecture, in the reform of the
multilateral institutions, and in the renewal of global
commitment to mutual accountability. A co-ordinated
international approach to the financial sector is obviously
also needed.
The international financial and economic crisis is in large
part about the failures of national and cross-border
regulatory regimes in assessing and managing the risks
building up in financial institutions and systems. In Sao
Paolo and in Washington, at the G20, we discussed how to
address these problems in a durable and credible way in
coming months. On a national basis, it was noted that policy
frameworks need to maintain fiscal sustainability. There is
little gain to be had from a new massive build-up of
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imbalances. We cannot allow a crisis caused by a rise in
debt and cheap credit to be followed in 10 years’ time with
another crisis caused by the same thing.
To make headway, Ministers of Finance and Central Bank
Governors have been asked to look at a range of issues in
the financial markets, with deadlines set for next year.
Particular attention needs to be placed on sound regulatory
policies and the application of standards for accounting,
auditing and transparency. Each country will therefore have
to adopt its national plan, based on the common principles
for reform. We will each have to assess to what extent both
our fiscal and monetary policies support the internationally
agreed principles. More importantly, we will need to ensure
better co-ordination and co-operation, not only between our
own financial regulators, but between our regulators and
those of other countries, particularly in regulating
financial institutions that operate in more than one
country. I will be convening a meeting of all our financial
regulators, as well as the SA Reserve Bank and National
Treasury, to ensure that as South Africa we give effect to
the common principles for reform, and to facilitate our full
participation in global standard-setting institutions and
the Financial Stability Forum.
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In conclusion, we have the good fortune of being able to
stand on the shoulders of those who have preceded us, and so
we understand much about what has gone wrong in the world
economy and what is required to deal with it. The effects,
however, will be with us for the foreseeable future, and so
we need to think carefully about how we reach our own
domestic economic goals in this new environment. Our
macroeconomic framework is sound and, because of the choices
we have made in the past, we have the resources and policy
space to set an appropriate response to the evolving
economic downturn. We need, however, to address the
microeconomic and regulatory constraints to more rapid
economic growth. This implies a renewed social dialogue, one
part of which will be the development of a national approach
to financial markets regulation and reform, but addressing
our long-term growth and employment challenges requires a
broadening of that dialogue. Much needs to be done to
achieve our aspirations. Those aspirations are of a country
that has shed a history of poverty. When looking at the
issues in the global financial crisis at the moment, it is
important to remind ourselves continuously of what we are
doing here as Members of Parliament and what is in the
nature of our contract with the people. Thank you very much.
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Mr S J F MARAIS: Chairperson, by now everybody is aware of
the effects of global economic turmoil on our economy. The
statement by the Minister and this debate confirms the
seriousness of its current and potential effects on South
Africa.
It is expected that this crisis will pass, given the nature
of economic cycles. The role of government must be an
attempt to smooth this cycle. A fiscal discipline and a
prudent policy approach are essential in weathering the
storm at our front door.
Die huidige fiskale beleid, waarby die inflasieteikens
ingesluit word, het bygedra tot ons vermoë om die wêreld se
ekonomiese krisis relatief goed te kon hanteer, tot so `n
mate dat ons nie in `n resessie verval het nie; ondanks die
feit dat daar sekere aspekte daarvan in sommige bedrywe
aanwesig is. Ekonomiese aksieplanne waartoe die regering en
al die rolspelers verbind behoort te wees, is noodsaaklik.
Die President het in `n antwoord op `n vraag van my
gereageer dat die Nywerheidsontwikkelingsbeleid genoegsame
stukrag sal gee om nie net vaste buitelandse beleggings te
lok, maar ook om Suid-Afrika se uitvoerbedryf so te
stimuleer dat ons minder afhanklik van
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portefeuljebeleggings sal wees om die tekort op die
betalingsbalans te finansier. Ons weet dit het nie
gerealiseer nie. (Translation of Afrikaans paragraph
follows.)
[The current fiscal policy, which includes the inflation
targets, contributed to our ability to cope relatively well
with the global economic crisis, to the extent that we were
not plunged into a recession, despite the fact that certain
aspects thereof are present in some industries. Economic
plans of action, to which government and all the roleplayers should be committed, are essential. In reply to one
of my questions, the President responded that the
Industrial Development Policy would provide sufficient
drive not only to attract foreign investments, but also to
stimulate South Africa’s export industry in such a way that
we would be less dependent on portfolio investments to
finance the deficit on the balance of payment. We know this
did not materialise.]
What is firstly required from us is to assure that we have
an FDI policy that would attract FDIs for employment-driven
production and with a focus on exports implemented so as to
stimulate the employment and capacity-building in South
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Africa with incentives to the performing employers. These
will increase employment and wealth creation and savings;
increase the foreign capital earnings and reserves; improve
the currency volatility and stability and decrease the
dependency on state grants.
Secondly, initiate public-private partnerships, and not
increased central control by government; and thirdly, all
need to support and promote a prudent fiscal policy that
will best assist in establishing investors’ confidence and
sentiments and all must refrain from statements that will
damage these objectives.
In Sake-Rapport van Sondag 16 November is gewaarsku teen
ondeurdagte ekonomiese beleidsuitlatings deur politici wat
beleggersvertroue, werksgeleenthede en werksekerheid
ernstig in gevaar stel. Daar word gewys daarop dat die
onsekerheid oor die ANC se toekomstige ekonomiese
beleidsrigting van die redes is waarom ons soewereine
kredietgradering afwaarts aangepas is en waarom buitelandse
beleggers hulle geld onttrek as gevolg van risiko
verskansingsoptredes. Hoewel dit gegrond mag wees op
sentimente en persepsies, bewys dit dat die noodsaaklikheid
dat die ekonomiese beleid nou gesteun moet word en behoort
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veral die ANC-woordvoerders en hulle alliansievennote
dieselfde beleidsuitsprake te maak en nie `n indruk van die
teendeel te skep nie. Voorsitter, ons moet die vermoë toon
om die uitdaging vir ekonomiese krisis nou en in die
toekoms met `n doelgerigte ekonomiese beleid die hoof te
bied en behoort die Minister se beleidsinisiatiewe gesteun
te word. Ek dank u. (Translation of Afrikaans paragraph
follows.)
[The Sake-Rapport of Sunday 16 November 2008 warned against
rash economic policy statements by politicians that would
endanger investor confidence, job opportunities and job
security. It is noted that the uncertainty regarding the
ANC’s future economic policy trends is one of the reasons
why our sovereign credit grading was adjusted negatively
and why foreign investors are withdrawing their money due
to risk-entrenching behaviour. Although this could be based
on sentiment and perceptions, it proves that the necessity
of the economic policy should be supported now. ANCspokespersons and their alliance partners ought to make the
same policy statements and not create the impression of the
contrary. Chairperson, we must demonstrate the ability to
deal with the challenge of an economic crisis through a
purposeful economic policy, now and in the future, and the
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Minister’s policy initiatives should be supported. I thank
you.]
Mr N SINGH: Chairperson, congratulations on your
appointment to the high chair. I hope it is secured. The
meltdown of global financial markets has left the world in
crisis, with some of the most prosperous countries even
facing recession, and we heard that from the hon Minister.
We, in the developing and emerging economies, have also
been harshly affected by this crisis, even though we were
not directly involved with the dealings which led to this
untenable situation. But such is the nature of
globalisation.
To say that South Africa is removed from these troubles,
would be very naïve and uninformed. With our integration
into the global economy, we are affected by international
events and movements in the global markets. The volatility
of the rand against the currencies of our major trading
partners, as well as the increase, and then the sharp
decline in the prices of the commodities which we are
exporting, are just some examples of how connected the
global environment is and the effect that it has on people
in South Africa.
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The gloomy economic state in which we now find ourselves
has put a serious damper on our growth targets and will
influence our economic and developmental plans, as well as
have a detrimental effect on efforts to combat poverty and
unemployment.
This, Chairperson and members, is worrying, considering the
slow progress that has been made in combating poverty and
creating employment over the years. Innovative plans and
strategies are needed if we are to try and limit the
suffering that this will have on the poorest members of our
society, who will no doubt be the harshest affected by this
crisis. We are, however, glad that the Minister of Finance
has reassured the South African public that the banking
system and financial institutions can weather the current
financial crisis.
An interesting feature of the economic turmoil is the
development of relationships and the interactions between
governments and the private sector in trying to overcome
this crisis. These relationships are very important, and
here in South Africa government, the private sector and
labour must interact honestly and closely with each other
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to ensure that we do overcome this crisis with the least
amount of damage.
In conclusion, we hope that there will not be any
fundamental changes to the ANC's economic policies in the
long term as a result of pressure from its alliance
partners. And I say long-term because of the principle that
they will be a majority party, but the indications are that
it will not be so. Reassurances are needed in this
uncertain climate if we are to comfort current investors
and to attract new foreign investors. Thank you. [Time
expired.] [Applause.]
Mr J BICI: Chairperson and hon members, it is an
unfortunate fact that we as a country have little impact in
averting the global financial crisis, even though the
actions of irresponsible bankers far from our shores will
surely affect us too.
Global economic turmoil leads to capital flights, the
effects of which we have already seen amply demonstrated on
the Johannesburg Stock Exchange, JSE, in the past two
months.
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In times of international risk-aversion, a developing
country such as ours can ill-afford creating policy
uncertainty, but unfortunately the ANC alliance partners
seem less concerned with this, and more concerned with
stamping their ideological mark on the ANC and the future
government. Thank you.
Mr L W GREYLING: Chairperson, the ID believes that in order
to minimise the ripple effect of the global financial
crisis on our economy, we must implement a more relaxed
monetary policy that will ease down our interest rates.
South Africa has largely been sheltered from the direct
impacts of the crisis. However, we are already being
affected by the accompanying slump in commodity prices, as
well as the economic slowdown in our export markets.
We in the ID believe that it remains imperative that we
also introduce a fiscal stimulus package that invests in
our dire infrastructure and human capacity needs.
The thunder will pass, Minister, but we must ensure that we
make the necessary investments now so that we can take full
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advantage of economic upswing when it finally does come.
Thank you.
Mr S N SWART: Chairperson, the ACDP wishes to thank the
Minister for his comprehensive briefing on the global
economic crisis and his Treasury’s role in addressing that
from a South African perspective.
There can be no doubt that whilst we will weather the
global economic storm, we will continue to experience
spill-over effects such as currency volatility, high
inflation, slowing economic growth and sell-offs on our
equity markets.
However, prudent fiscal and monetary policy has shielded us
to a large degree and our economy is resilient enough. Our
regulatory framework is strong enough to weather the
storms.
We, as the ACDP, also welcome the G20 meeting that took
place this weekend and we are looking forward to studying
our national plan, which will form part of the G20’s action
plan aimed at restoring global economic growth and
reforming financial systems.
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The sad aspect of this crisis is that people living in
poverty are and will continue to be hardest hit by the
financial crisis. This situation in our view is grossly
unfair and cannot be allowed to continue, and it must be
addressed in the international forums. Thank you.
Ms S RAJBALLY: Chairperson, it is without question that
every economy has been severely hampered by the rand-dollar
situation and that local inflation by no means creates any
alleviation. It is a matter that the MF strongly feels
about that global countries have to address and be united
in their attempts to resolve.
As a new South Africa we have been in the infancy stages of
addressing our nation’s challenges, of which poverty is our
greatest, and the global economic crisis has certainly not
served to assist us in this plight.
We are concerned as to whether things will turn around and
stabilise or descend into greater disaster, leaving our
people at an even greater disadvantage.
In view of the recent G20 meeting, the MF supports the
submission made by our hon President. We further feel that
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the First World countries have a crucial role to play in
ensuring that some relief is offered to the Third World
countries.
The MF feels that if we can urge relief in respect of
Africa’s foreign debt, this will certainly assist us in the
era of crisis and aid the fight against poverty. Thank you.
Mr L M GREEN: Chairperson, the FD commends the Minister of
Finance on his thorough briefing on the global economic
crisis. In his thought-provoking book, The End of History
and the Last Man, Francis Fukuyama illustrates that a
capitalist system features as the most accepted economic
system of the future.
However, we have seen that capitalism without an
accountability regime framework in place has the potential
to destabilise nations at great financial costs. The global
economic crisis is a warning that when the wealth of the
world resides in the hands of a few nations, a crisis
occurs and the rest of the world faces the risk of national
instability and insecurity.
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There is clearly a need for a new economic dispensation. A
new economic value system is needed to move away from
business as usual.
In conclusion, the FD commends the Minister of Finance for
the austere macroeconomic policy over the past 10 years.
Had it been any different, we would have been drowned by
this global crisis. I thank you.
Mr K A MOLOTO: Recently, I was listening to the testimony
of the Chairman of the Federal Reserve System, Ben
Bernanke, before one of the committees of the US Congress,
requesting the Congress to approve the $700 billion rescue
package.
One congressman said the following to Chairman Bernanke:
"Wall Street had a party, got drunk and broke chairs.
American citizens were not invited to the party and now
they are expected to pay for the damages caused by Wall
Street." The analogy was simple and reflected great
frustration at the way events unfolded.
We are living in very difficult times. The financial press
is replete with information on bank failures, bailouts,
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plunging stock markets and threats of global recession.
These are very disturbing developments and raise serious
concerns among all citizens of the world.
Therefore, it is crucial that we understand the origins of
this crisis and its current manifestation so as to be able
to appreciate its likely impact on the South African
economy. The global economic crisis we are facing today has
been caused mainly by a combination of deregulation and low
interest rates in the US.
Joseph Stieglitz explains it better. He says the following:
“After the collapse of the technology bubble, the economy
needed a stimulus. But the Bush tax cuts didn't provide
much stimulus to the economy. He further points out that
instead, this put the burden of keeping the economy going
on the Fed and it responded by flooding the economy with
liquidity.”
Of course, under normal circumstances, the economy would
have grown, but as Stieglitz had pointed out, the economy
was already overinvested and so the extra money wasn’t put
to productive use. Instead, the consequent low interest
rates and easy access to funds, in Stieglitz’s words,
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encouraged reckless lending. The infamous interest only, no
down payment, no documentation supply mortgages fuelled the
current global crisis.
Financial innovation and deregulation have introduced
complex financial structures and instruments.
Securitisation and derivatives are at the heart of this
financial innovation. Securitisation simply means the
pooling together of loans and selling such repackaged loans
to other investors. Home loans, credit card receivables and
automobile loans were securitised. This process involves a
lot of players.
Let me briefly explain this process and the role of
different players with a view to illuminating the course
traversed in the development of this crisis.
A classic securitisation process works in the following
manner: A potential homeowner approaches a bank or mortgage
broker to get a loan to buy a house. The bank would provide
the loan to the applicant and sell the repackaged loan to a
Special Purpose Vehicle. The loan is permanently removed
from the bank's balance sheet and the potential risk is
transferred to other investors. The Special Purpose Vehicle
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would then sell bonds to different types of investors. The
bonds held by these investors are expected to be serviced
by monthly bond repayments made by homeowners.
The asset-backed securities unravelled negatively when
interest rates increased and homeowners were unable to be
refinanced at more favourable interest rates as expected.
Three fundamental problems arose immediately from this type
of originate-to-distribute transactions. Firstly, the bank
or mortgage brokers earn a fee for originating loans, and
the more loans generated, the bigger the origination fee
earned. That can serve to be a perverse incentive to
disregard all established practices of risk management and
adequate screening of clients. This resulted in a lot of
so-called sub-prime clients getting loans without
undergoing a thorough credit check or verification.
Secondly, the credit rating agencies misled investors by
rating these subprime-backed bonds as triple A, thus
implying that they are of good quality and low risk. The
reality is that we all now know that that information was
incorrect and misleading. Issues of conflict of interest
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arose in the majority of these cases. The rating agencies
were paid by the issuers of these bonds.
Wall Street, on the other hand, assisted in selling these
toxic assets or mortgages around the world. When the truth
finally came out about the true nature of these bonds and
their values, there was panic in the market. Banks refused
to lend to each other in the interbank market as they
attempted to avoid contamination. Short selling of bank
shares, as a result of such negative market information,
compounded the problem. Wall Street has created a serious
credit crisis with far-reaching implications for the
financing of the real economy.
The announcement of rescue packages and provision of
liquidity to these financial institutions was an attempt to
reduce the interbank rate. However, the problem of the
interbank market still persists. Credit is not flowing to
households and corporate sectors.
The impacts of the activities of Wall Street are now
seriously working their way through the main streets.
People are losing houses in the US and consumer spending
has dropped significantly. Businesses in the US are unable
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to finance productive activity and struggling to obtain
short-term financing for payrolls. Workers are being
retrenched.
This is a global environment in which South Africa is
finding itself. South Africa can take comfort in the fact
that its banking system is not exposed to these toxic
assets and our banking system is rated among the best. The
bank of international settlements considers the Bond
Exchange of South Africa to be highly liquid, more so than
even some of the developed countries. It is much easier and
quicker to buy and sell bonds in South Africa. South
African capital markets are well developed and matured.
We should also take comfort in the fact that our foreign
debt is minimal and a lot of it has long-term maturity. The
public finances are in good shape. We are on course to
undertake major infrastructural developments. The
industrial tax incentives contained in this year's budget
would assist in building our industrial capacity and create
sustainable jobs in the long term.
The storm will pass and we are definitely poised to achieve
great things. Of course, there will be a bit of pain when
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we go through the storm. We will ride through this storm
with conviction, but we are poised to achieve great things
in the long term.
As a Christian, I have been taught never to focus on the
storm lest I sink due to fear. Focusing on the storm breeds
immense fear and obscures the bigger picture.
Focusing narrowly on the current price of platinum is
counterproductive. Mining is also a long-term business
venture, which requires a long-term view.
I am also encouraged by the words of Roger Baxter, the
chief economist of the Chamber of Mines, who had the
following to say, “Mining is a long-term game where one
doesn’t simply stop activities for a year and come back.”
Auto sales in the US and Europe might be experiencing
serious reductions, but the fact of the matter is that this
storm will pass.
It is very important that South African companies should
take a long-term view. Our massive infrastructural
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development projects will boost our export capacity in the
long term.
There is no time to focus on boom and bust. When the storm
settles, only long-term visionaries will gain a competitive
edge.
In conclusion, allow me to congratulate the hon Nene on his
appointment as the Deputy Minister of Finance. I know he
will do well. I have always valued his guidance and
leadership in the ANC study group and the portfolio
committee. Thank you. [Applause.]
Debate concluded.
MEDIUM-TERM BUDGET POLICY STATEMENT
(Consideration of Report of Joint Budget Committee)
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I
move:
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That the Report be adopted.
Motion agreed to.
Report accordingly adopted.
MEDIUM-TERM BUDGET POLICY STATEMENT
(Consideration of Report of Portfolio Committee on Finance)
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I
move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.
MEDIUM-TERM BUDGET POLICY STATEMENT
(Debate)
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Mr B A MNGUNI: Hon Chairperson, hon Ministers and
colleagues, we debate this Medium-Term Policy Statement,
not as a mini budget, as it is sometimes referred to,
amidst the turmoil of financial crisis that has a great
potential for global economic meltdown and recession in one
of the biggest economies in the world, the USA.
The Medium-Term Policy Statement provides the framework
within which the 2009 budget is to be drafted, including
indicative figures for two succeeding years. It gives an
indication of government’s assessment of the state of the
economy; fiscal framework; budget priorities; and the
division of revenue between national, provincial and local
governments.
We have been informed by the Minister after the policy
statement was tabled, that the South African economy will
remain unscathed by the financial crisis that is wreaking
havoc in developed countries, which might be least expected
to have such a phenomenon, due to their advanced and
sophisticated financial systems and best world practices.
It has been said that our economy’s resilience to these
financial woes is due to tough decisions that were taken a
couple of years earlier on macro-economic policy, banking
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regulation, gradual exchange control liberalisation,
introduction of inflation targeting and the countercyclical approach to fiscal policy.
Accordingly, these economic factors have not only shielded
us from the financial contagion effects, but have also made
us benefit from the economic global environment that is
prevailing. However, despite these fundamentals being in
place, National Treasury has made a point that the global
financial crisis will indeed affect the trajectory of our
economy.
During public hearings on policy statement, the group
economist of Sanlam, Mr Jac Laubscher, pointed out that the
global financial crisis is indicative of a recession.
According to Mr Laubscher, developed countries are said to
be going through a recession, which would be characterised
by two successive quarters of negative growth, while
developing countries would be characterised by growth
recession – there would still be positive growth, at a much
lower rate.
The International Monetary Fund forecasts global growth of
3% in 2009. According to its own definition, any economic
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growth that is less than 3% would be classified as a
recession. The political implications for governance
structures globally, are less revenue for policy
implementation. Coming closer to home, National Treasury
has stated that the global financial crisis would have
implications for the domestic economy. Therefore, the
growth trajectory that has been attenuated would have farreaching implications for the country’s revenue as the
corporate profits would have also dipped in the process.
The resultant domino effects of these events might
culminate in a situation where a better life for all is not
realised at the expected time of delivery for the majority
of the people, as compared to what we have committed
ourselves to. We are less likely to escape the damage that
would be done in the real economy by this phenomenon. There
is a looming mass retrenchment in the mining sector, due to
a massive drop in the prices of tradable resources.
One has to take solace from the fact that the Federation of
Unions of South Africa, Fedusa, also acknowledged the
context within which the 2008 Medium-Term Policy Statement
was tabled, stating that the challenges from the fiscal
side for the next three years was to counteract the adverse
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effect of the external factors, including banking and
credit crises in developed countries. This brings to light
the fact that at least unions and, by inference, the
general public, do understand and appreciate the global
economic conditions the country is faced with.
As stated in the portfolio committee report, Fedusa pointed
out that in the light of the global challenges ahead,
special attention needs to be paid in South Africa to
lifting the rate of national savings, as this is necessary
in order to construct a more expropriated economy and to
create a more labour-intensive growth trajectory. The
National Treasury pointed out that investment growth is
going to remain the key driver of growth over the medium
term.
In support of other commentators at the hearings, Business
Unity South Africa, Busa, raised a concern that demanddriven growth was not sustainable and that it was critical
to focus on unlocking supply-side growth. Accordingly, Busa
pointed out that government infrastructure investment
programmes should provide the necessary supply-side
stimulation to the economy.
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The monetary policy could not do much to prevent supplyside shocks, such as oil and food price increases, from
having first-round effects on inflation. The monetary
policy committee had to be mindful of the impact of these
shocks of inflation expectations and of the need to act
against the emergence of generalised inflation pressures.
Inflation has breached the upper limits since April 2007.
According to the National Treasury, the exchange rate
volatility may result in higher inflation in the short
term, but falling oil prices and lower food costs would
help to bring inflation back to the 3% to 6% target range.
As stated in the report, the expected movement of the
Consumer Price Index, CPI, towards the target range is
partly as a result of the introduction from January 2009 of
a new target measure of inflation in the form of headline
Consumer Price Index for all urban areas.
The committee has previously been informed that the current
account deficit poses no threat to financial stability and
the economy as there were enough capital inflows to finance
it. Accordingly, surplus capital inflows fully financed
current account deficit for the first half of 2008. It has
been expected to be the average of 8,3% over the Medium-
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Term Policy Statement. As stated in the policy statement,
the gradual increase of the current account deficit is a
reflection of South Africa’s mismatch between savings and
investment.
According to Laubscher, portfolio inflows, commonly known
as hot money, move swiftly around the world, seeking to
return by trading in stocks, bonds, and currencies. He
further stated that the current global financial
circumstances and the way of financing the current account
deficit may be a workable solution.
Finally, the policy statement states that sound
macroeconomic management will stand South Africa in good
stead in the period ahead, cushioning the economy and
households against shock and providing a platform for longterm growth. The ANC’s economic policy has always been
forward-looking, and aimed at improving the lives of
ordinary citizens. It is through the vision, the dedication
of the ANC leadership and cadreship in political office,
and the civil service that the country stands shoulder-high
amongst its peers on the global economic stage. I thank
you.
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WELCOMING OF VISITORS FROM CZECH REPUBLIC
The HOUSE CHAIRPERSON (Mr M B Skosana): Thank you, hon
member. Before I call the next speaker, I was informed that
in the gallery we have visitors who are members of the
delegation of the Committee on Constitutional and Legal
Affairs, of the Chamber of Deputies of the Parliament of
the Czech Republic. We would like to recognise them.
[Applause.]
Mr S J F MARAIS: Chairperson, as we know the Medium-Term
Budget Policy Statement, MTBPS, which the Minister of
Finance tabled on 21 October 2008, is not a mid-year budget
as commonly known, but importantly provides the framework
on which the 2009 budget is to be constructed. It is also
the obligation of the National Treasury in terms of section
28 of the Public Finance Management Act to annually table a
multiyear budget projection for revenue, expenditure and
key economic projections. In this process, it gives an
indication of government’s assessment of the state of the
economy, the fiscal framework, the budget priorities and
the division of revenue between national, provincial and
local governments.
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The analysis of the current economic crisis indicates that
the global economic downturn will certainly have negative
effects on the South African economic growth and
development. As part of the global economic village, our
economy will get a cold when major economies sneeze, and
our medium-term economic outlook must reflect a policy to
best weather these economic storms.
In this regard the DA is pleased that the Minister has
stuck to his well-known and prudent fiscal policy regime
and the 2008 budget announcements which contain pragmatic
elements to provide for social welfare and educational
needs, but also that it must reassure investors that not
only will their investments be safe over the medium-term
but that South Africa can offer a better return on the
investments than other emerging markets.
In order to effectively reassure investors and to
positively influence their sentiments, it will be required
from government and the ANC alliance not to make negative
economic statements and create unrealistic expectations.
This will not only jeopardise the investor’s confidence and
sentiments, but also the task of the Ministry of Finance in
support of the prudent fiscal policy regime and to attract
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enough foreign investments to fund the growing deficit on
the balance of payments.
Our economic policy outlook must incorporate the realities
of the current global economic climate relative to our
domestic developmental, social investment and other
economic needs. Investors’ perceptions and sentiments
reflect their expectations of future risk and potential
returns on the investments in relation to other alternative
options.
Negative sentiments will influence, amongst others, the
credit rating of South Africa, as we’ve just experienced.
This can have a major influence on the cost of foreign
borrowings, which again can fuel domestic inflation
expectations. This can also threaten the economic growth
outlook and eventually employment and work security.
Van die belangrikste uitdagings wat ons die hoof móét kan
bied om te verseker dat ons steeds ekonomiese groei in die
toekoms kan ervaar, sluit in: groei in veral buitelandse
vastekapitaalinvesterings; die stimulering van groei via
die aanbodkant van die ekonomie; die bevordering van
uitvoer- en werkskeppende groei in veral die
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vervaardigings- en produksiesektore - dit sal die druk op
die groeiende betalingsbalans verlig, wat al reeds neig na
9% van BBP, en verder sal dit ook ons kwesbare
afhanklikheid van portefeuljebeleggings verminder – die
liberalisering van arbeidswetgewing, juis met die doel om
groter indiensname en kapasiteitbou aan te moedig, wat sal
lei tot ’n afname in armoede; die verdere liberalisering
van ons belastingbedeling, veral ten opsigte van klein en
mediumgrootte ondernemings, waar die grootste potensiaal
vir indiensname gesetel is; ’n verdere verlaging in
huishoudelike skuld, wat verwag word teen 1,6% in 2009,
asook huishoudelike verbruik, wat teen 2009 voorsien word
om teen 2,8% te groei, wat grootliks die gevolg is van die
verhoging in rentekoerse, en brandstof-, voedsel- en
elektrisiteitspryse.
Die aangepaste fiskale besteding sal die begrote surplus
verander na ’n aangepaste tekort van minder as 2%, wat
binne perke is, gegewe die huidige ekonomiese klimaat.
Die DA besef dat die ekonomiese realiteite, pragmatisme en
omstandighede deeglik in aanmerking geneem moet word met
die beoordeling van die ekonomiese beleidsaankondiging.
Volgens ons mening het die Minister en die Nasionale
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Tesourie alle faktore deeglik in aanmerking geneem, en
hoewel die DA sekere klemverskille sou aanmoedig, steun ons
minister Manuel se aankondigings en sal ons met groot
verwagting uitsien na die begrotingsaankondiging van 2009.
Ek dank u. [Tyd verstreke.] (Translation of Afrikaans
paragraphs follows.)
[Some of the most important challenges that we have to make
a stand against in order to ensure that we can still
experience future economic growth, include: growth in
foreign fixed capital investments in particular; the
stimulation of growth via the supply side of the economy;
the advancement of export and job-creating growth in the
manufacturing and production sectors in particular – this
will lessen the pressure on the growing balance of
payments, which is already heading towards 9% of GDP, and
will furthermore also decrease our vulnerable dependence on
portfolio investments – the liberalisation of labour
legislation, precisely with the aim of encouraging greater
employment and capacity building, which will lead to a
decrease in poverty; the further liberalisation of our tax
dispensation, in particular with regard to small and medium
enterprises, where the greatest potential for employment
exists; a further decrease in household debt, which is
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expected at 1,6% in 2009, as well as household consumption,
which is expected to grow at 2,8% in 2009, which is largely
the result of the increase in interest rates, and the price
of petrol, food and electricity.
The adjusted fiscal spending will change the budgeted
surplus to an adjusted deficit of less than 2%, which is
within bounds, given the current economic climate.
The DA realises that the economic realities, pragmatism and
circumstances must be carefully taken into account with the
evaluation of the economic policy announcement. In our
opinion the Minister and the national Treasury took all the
factors carefully into account, and although the DA would
encourage certain differences in emphasis, we support
Minister Manuel’s announcement and look forward to the
budget announcement of 2009 with great expectation. I thank
you. [Time expired.]]
Mr N SINGH: Chairperson, I would also like to take this
opportunity to congratulate hon Nene on his appointment and
commend him on the excellent manner in which he chaired our
meetings.
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The failure to create the jobs needed to meet the demands
of our growing population, as well as the failure to
eradicate poverty and to make real inroads into rural
development, is very worrying and is a huge obstacle to our
development and prosperity.
The current economic slowdown will exacerbate these
problems and make it even more difficult for the poor to
escape their lives of poverty. We in the IFP believe that a
strong focus on microeconomic policies and the removal of
impediments to job creation in the labour market is vital
if we are to overcome these problems and attract the
investment needed to take us into a higher growth level.
We also need to harness the entrepreneurial spirit of our
people and make it easier for them to start up and operate
their own businesses, and this would also mean having
access to finance. We therefore reiterate our proposal that
an urgent forum, comprising government, business and
representatives of the labour unions, be convened to
discuss these important issues.
The IFP was encouraged by and agrees with the comments made
by the hon Minister of Finance regarding the need to look
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at our labour market policy if we are to achieve our
employment targets. The commitment to increase spending on
infrastructure is not only welcomed but also necessary to
increase growth and development.
It is, however, important that this infrastructure spending
be focused on the long-term growth and developmental needs
of our country and not just on the 2010 World Cup. While
this event is important and will provide a major boost to
our economy and development, and must thus be well
supported, we must look beyond 2010 when considering the
infrastructural needs of our country.
In the statement there is also a contingency reserve of R36
billion for unforeseen and unavoidable events. While we
agree with this, we believe that there should be more
clarity on what constitutes an unforeseen and unavoidable
event. If it is the disaster that has occurred recently in
KwaZulu-Natal in the Molweni area, if it is what has
happened in the Western Cape, and if there is need for
timeous intervention and funding, then we will support this
wholeheartedly. Just to indicate, there is a main road in
KwaZulu-Natal, R102, near where I live, that has been
inoperable for two years as a result of flood damage.
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Even if we do formulate the best and most innovative plans
and provide the necessary funding, we will not improve the
lives of many who are still suffering as a result of fiscal
indiscipline that is so obvious in some provinces and
municipalities, should it continue. Taxpayers have to get
value for money and for every rand that the taxpayer puts
in, we must get one rand’s value. Needless to say, our taxcollection system is about the best in the world, with them
collecting hundreds of billions.
In conclusion, I would like to reiterate the
recommendations stated in the committee report that time
for public engagement on the MTBPS was far too short. While
this engagement was very constructive and informative, we
hope that there is more time for engagement in the future.
Thank you.
Mr J BICI: Chairperson, hon members, the reality of the
budget process is that it is not realistic or
constitutionally possible to effect any major budgetary
shifts midstream through the budget cycle. Another
constraint that cannot be overlooked is that the current
executive is an interim structure which will be careful not
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to impose policy or budgetary imperatives on the incoming
executive that the ANC expects to elect in the 2009 polls.
There is also a further need for making no sudden policy
shifts, since the global markets are in turmoil and
developing countries like South Africa are threatened with
a flight of foreign capital. It is a pity that whilst the
MTBPS pursues this objective, the SACP and Cosatu are
saying the opposite. In this context the UDM expected a
budget statement that holds the course with no real
changes.
The UDM would like to see a clearer budgetary commitment to
stimulating the economy with a view to job creation, as
well as bigger cash injections for the fight against crime
and to improve the salaries and working conditions of
teachers, nurses and other government workers. Thank you.
Mr L W GREYLING: Chairperson, the ID welcomes the more
expansionary stance that is being taken in this year’s
Medium-Term Budget Policy Statement. It is now clear that
the global financial crisis will have a negative effect on
our economic growth prospects and, in particular, our
commodity exports.
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It is in times like these that the corporate sector reverts
to a survivalist mode and that the government needs to step
in with a fiscal stimulus package. We must use the stimulus
package to address our most obvious constraints to
sustainable economic growth, namely inadequate education
and skills, physical infrastructure and a competitive and
productive environment for industry and economic service
development.
When it comes to infrastructure spend, the ID has noted the
concern in your policy statement that our current
infrastructure is heavily import-intensive. What we really
need to do is focus on how we can stimulate the local
industrial base and create employment for South Africans.
In particular, Eskom intends spending R700 billion on
nuclear plants which will be built by a foreign company
with very little linkages to our local industry.
The ID believes that we should rather be looking to invest
money in renewable energy, the vast majority of which can
be built by local industries. This would, in turn, create
thousands of jobs for our people. It is these types of
initiatives that need to be employed during this difficult
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period to ensure that we improve our manufacturing base and
create the maximum number of jobs for each rand that the
government spends
It is one thing to put aside money for infrastructure
spend, but spending it is a different thing altogether. In
this regard the ID is extremely concerned that the very
departments entrusted with the task of building
infrastructure are the same departments that are guilty of
continual underspending on their budgets.
The ID maintains that we now need a government that can
spend its money as effectively as it collects it. Thank
you.
Ms L L MABE: Chairperson, the last Medium-Term Budget
Policy Statement report presented is the last of the Third
Parliament and it reflects on the road ahead for the next
Parliament, on issues that it should take up to accelerate
the work done by this Parliament. So, we need to remember
that this is the last one for this Parliament in order to
prepare the next Parliament to take up issues that affect
our people.
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The economic slowdown and the projected decline in revenue
may require changes in the medium-term budget proposals and
we must be prepared, as Parliament, when those changes are
proposed by the next leadership. This in turn will place
greater importance on domestic policies, with the need to
ensure that funds are directed at those sectors and
programmes which have the greatest impact on the lives of
South Africans, and this is quoted from our report on the
MTBPS.
This MTBPS makes provision for enhancing medium-term
priorities, although not to a large extent. Generally, the
committee welcomes and supports the statement, but there
are some issues that need to be taken on board by
government. I will reflect on some of the priorities and my
colleague, hon Schneeman, will do the same with the
remaining priorities.
One of them is to improve the provision of health services.
Health is central to the lives of our people. We welcome
the funding for the National Health Insurance System and
appeal to government to put sustainable plans in place and
financial support for its proper implementation. As funds
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are allocated there should be a proper implementation plan
so that as Parliament, as the portfolio committee and the
Joint Budget Committee, we can follow up on whether the
plan is implemented or not. As we interacted with the Human
Sciences Research Council prior to the presentation of the
statement, they indicated that 60% of maternal deaths are
due to treatable diseases.
Fa 60% ya dintsho tse di tlhagelelang tsa bommê fa ba
belega di tlisiwa ke malwetsi a a alafegang. Se, se raya
gore go na le phoso mo Lefapheng la Boitekanelo. Phoso e,
rona re le Palamente, jaaka re tlhophilwe ke batlhophi re
tshwanetse go e baakanya, gore bomme fa ba belega ba seka
ba tlhola ba tlhokafala mmogo le bana ba bona, mo go sa
tlhokegeng teng.
Ke rata gore ke bowe gape ke re ee, ke nnete go na le
tswelelopele e e dirilweng mo go fokotseng dintsho tsa
bommê le bana ka nako ya pelegi. Fela, jaaka fa ke bua, re
tlhoka go itse gore lefapha le tlile go dira eng gore e re
fa re bua ka madi a re a ba neelang re bo re itse sentle
gore bana ba, jaaka re le bommê mo Palamenteng, re bone
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gore ba a phela ka gore ke bona ba re lebeletseng bokamoso
mo go bona. (Translation of Setswana paragraphs follows.)
[When 60% of maternal deaths are due to treatable diseases,
this means there is something wrong in the Department of
Health. We as Parliament, elected by the people, have to
rectify this mistake so that when women give birth they do
not lose their lives and babies unnecessarily.
Again, I would like to agree that it is true that there
have been developments aimed at reducing maternal and
infants’ death. But now, as I speak, we need to know what
the department is planning to do so that when we discuss
the funds allocated to them, we as women in Parliament make
sure that these infants survive, because they are the
future.]
Although we support the allocation of more financial
resources to health, we also want to see an improvement in
the supply chain management. We are very concerned as a
committee that you will, for example, find that a hospital
in Kimberley procures from companies in Gauteng. Why such a
distance for waste disposal? How can it procure from
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Gauteng? How can linen be washed and cleaned in Gauteng?
That is not fair to our people and we therefore say
procurement must also be done from local companies, so that
local economic development can be realised. [Applause.]
We also say that as medication is procured, it must be on
time, and not always at the 11th hour or at the end of the
financial year; we expect medicine to be available because
money is made available for it.
On crime prevention and security we always say, even as we
did last year during the MTBPS, that the cluster should
have an integrated approach so that Correctional Services,
Justice and the police know what one another are doing, so
that their approaches can be enhanced to ensure that crime
is reduced, but we have discovered that this is not the
case.
We welcome the fact that more financial support will
increase the number of specialised police personnel, but
they should be accompanied by a visible decrease in the
level of crime. As we employ more police, crime must also
decrease; as we employ more police, we need to have more
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detectives, who can prepare convincing statements that can
stand the test of time in court because we want more people
to be convicted and sentenced to jail.
At the same time, as I talk about jail, it’s our concern as
the Joint Budget Committee that in 2002, the former
President, Comrade Thabo Mbeki, announced that six prisons
would be constructed. Unfortunately, the statement says
there’ll be six more new prisons. We tried to interrogate
it and communicated with the Department of Correctional
Services to ensure that the six announced in 2002 are not
the six that are supposed to be new. Unfortunately, there
was no response. We also say that, as the department, as we
welcome funding proposals for those six new prisons, the
correctional services must give the portfolio committee and
the Joint Budget Committee an implementation plan of how
those prisons would be constructed and completed.
On rural development and agrarian reform, we say that
agrarian reform is central to the policy of this government
and there’s no way we can move away from it because we want
to alleviate poverty, we also want to ensure that there is
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food security. As a developmental state, we must have food
security.
We interacted with the Department of Land Affairs and
Agriculture because last year we raised a concern that they
did not work hand in hand. At least now they have convinced
us that they’ve started to work together. The challenge is
that we expect Land Affairs to speed up processes to meet
the 2014 target. Last year, they were not convincing. They
did not show that they could achieve that plan. There were
some technicalities that cropped up but we still stick to
that 2014 target.
I also want to say that the reason we are concerned about
agrarian reform is the fact that agriculture employs more
people. As we support it, we must also ensure that more
people are employed and not machinery, because there is a
tendency to move towards using more machinery. There is a
tendency of ensuring that, instead of taking up their
responsibility of providing more food, people would rather
opt for game farming. We questioned it during our
interaction with the department.
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With respect to industrial reform, initiatives that
government has in place must be balanced between promotion
of competitiveness and protection of the existing
industries. For instance, the textile industry is dying and
efforts that are there to assist the motor industry must
also be used for these textile and clothing industries to
ensure they survive because these are the main employers in
that sector. Therefore, there must be a broader sustainable
industrial strategy, which as a developmental state must be
prioritised. Remember, we produce natural resources and
they must be used to ensure that we develop more industries
to create more employment. We welcome the new face of the
Expanded Public Works Programme that is intended to
transfer skills, but also create longer-term employment.
We’ve been concerned that employment created was shortterm.
I can’t leave out state-owned enterprises. Our view is that
they must work together with government on developmental
objectives. They can’t work parallel to what government is
doing. There must be that integration to ensure that they
support our developmental initiatives.
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Before I complete, we emphasise, as a committee, that coordinated and integrated planning is paramount, whether
it’s in the justice and security cluster or in the economic
or social sector. An integrated planning approach is very
important. Departments must stop working in silos. This is
one government; all departments have to work together.
Finally, I want to thank all the departments, including the
Human Sciences Research Council and the Public Service
Commission, because they gave us information when we
interacted with them, which we used when we called
departments to appear before us.
Rra, ke a go leboga. Re le ANC le tshegetsa puo e. Rare,
... [Chairperson, thank you. The ANC supports this Budget
Vote. We say ...]
... phambili ngomzabalazo, phambili! [... forward with the
struggle, forward!]
Mr S N SWART: Chairperson, amidst radically altered
political and economic conditions, the ACDP welcomes the
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hon Minister of Finance’s assurance that, whilst there is
global financial turmoil, the thunder will pass and we will
weather the storm. The medium-term statement provided the
much-needed assurance that government’s prudent fiscal and
monetary policy that has shielded South Africa from the
global financial crisis affecting other emerging markets
will not be altered.
The crisis will, however, result in a slowdown in our
economic growth. This will result in decreased job
opportunities, rising prices, reduced exports and reduced
taxes that would have been collected. This was factored
into the policy statement with lower economic growth
forecasts and revenue estimates.
Whilst there was huge pressure for more popular spending,
thankfully no radical shifts in monetary and fiscal policy
were announced. This would have sent the wrong message to
foreign investors, already jittery due to the financial
crisis.
In this regard, the ACDP appeals to left-leaning Members of
Parliament to tone down calls for major shifts in economic
policy. This, particularly, in light of the fact that the
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financial crisis has already jeopardised South Africa’s
foreign capital inflows. We cannot afford to further
destabilise the economy by political posturing,
particularly, in the run-up to next year’s elections.
Our large current account deficit that is financed by
speculative short-term capital inflows would also be
affected and is also an area of concern that was addressed.
Whilst this deficit remains our Achilles heel, the
country’s low debt ratio, large cash holdings, and
significant foreign exchange reserves in the region of
$32 billion will serve to cushion the economy during this
global meltdown.
The ACDP supports the limited increases in public spending
in the amount of R170,8 billion over three years that was
announced. We particularly welcome the focus of the policy
statement to include the enhancement of the quality of
education, improving health care, fighting crime,
delivering housing, water, electricity, sanitation and
addressing poverty.
We would like to touch on the issue relating to the credit
ratings. It is regrettable that our rating has been reduced
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from “stable” to “negative”. Surely, as South Africa we are
the victims in this whole situation and as the ACDP we
share the views expressed by Treasury about the credit
rating of Fitch and Spoor, which is not supported by our
recent history and overlooks certain material facts about
current macroeconomic and fiscal frameworks. We cannot
allow ourselves to be negatively affected by this credit
rating – as I’ve mentioned, we are the victims – and,
surely, these are the issues that have to be addressed when
looking at the global financial institutions.
In general, the ACDP will, however, conclude by saying that
we support the Medium-Term Statement and believe that tough
fiscal and monetary decisions will be taken to enable us to
weather the storm. I thank you.
Ms S RAJBALLY: Chairperson, the global crisis has the
developed world and the developing world in limbo, while
economists may see some light for a developing country such
as South Africa, even though at a slower rate of growth.
The Minority Front cannot contain its concerns when we look
at the volume of people affected by the scourge of poverty,
unemployment and minimal service.
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Even though a low growth figure is a bit positive, it is
the reality of the exceedingly high cost of living and the
cost to poverty-stricken families of getting by today, that
we really need to take into consideration. The inflation
rate of 11% has earned an 11% wage increase.
People are battling to sustain even more from a small
income. This is the sore reality of our current economic
climate and, certainly, there should be fiscal issues to
cushion it. The hon Minister of Finance has rightly
described it as a financial storm.
The MF hopes that the additional allocation of R170,8
billion over the next Medium-Term Expenditure Framework,
MTEF, shall address many of our challenges and sustain
effective growth even in these trying times. While tax
revenues do not look as grim, we are certain that the hon
Minister and his brilliant team shall, by next year’s
budget, have devised some relief.
The MF acknowledges that the National Treasury has had to
change its growth forecasts, reducing the gross domestic
product expectations with all its uncertainty. We need to
earnestly examine the situation so as to reduce external
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vulnerability. The MF, however, notes the efforts to
increase investment and employment to stimulate higher
economic growth.
We thank the hon Minister and his able team for putting the
band aids where we need them. The MF hopes that our
strategy shall sustain effective economic growth and rather
assist in bringing poverty down. The MF supports the
Medium-Term Budget Policy Statement. I thank you.
Mr G D SCHNEEMANN: Chairperson, the spending projections
contained in the Medium-Term Budget Policy Statement
continue to build on the commitments which the ANC has made
to create work and fight poverty and to make local
government work well.
It also sets up the context and direction of policy, which
enables departments to plan and budget for the next three
years. If departments are able to do this, there should be
no reason for underexpenditure and not meeting targets.
These spending projections determined by this ANC-led
government move us closer towards achieving the goals and
objectives of the Freedom Charter. They also clearly
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demonstrate the continued commitment of the ANC to the
Freedom Charter and ensure that the aspirations of those
gathered in Kliptown on 26 June 1955 are realised.
We in the ANC join those who were in Kliptown in 1955 when
they said: “And we pledge ourselves to strive together,
sparing neither strength nor courage, until the democratic
changes here set out have been won.”
In particular, allocations are made which strengthen the
following clauses of the Freedom Charter: “The land shall
be shared amongst those who work on it.” This is
demonstrated through the policy priority which government
has placed on the redistribution of land and its
implementation, which has been emphasised by the Joint
Budget Committee: “The doors of learning and culture shall
be opened”. No-fee schools are being expanded, new schools
are being built and old infrastructure continues to be
upgraded. “There shall be houses, security and comfort”.
Over 2,6 million houses have been built.
We have no doubt that our government continues to put the
people of South Africa first and prioritises spending that
will create a better life for all. The Joint Budget
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Committee held hearings on the Medium-Term Budget Policy
Statement, MTBPS, and interacted with the Department of
Housing, the Department of Transport and the Department of
Education, as well as the Human Sciences Research Council.
Spending on housing over the MTEF period will see R44,7
billion allocated through the Integrated Housing and Human
Settlement Grant. The Joint Budget Committee, JBC, welcomes
the increased allocation and is confident that this will
help to accelerate housing delivery and a reduction in the
housing backlog.
However, there will have to be greater co-ordination
between all relevant departments so that as housing
projects are planned, so too is the necessary
infrastructure such as police stations, schools, clinics
and recreational facilities. This means that departments
must talk to each other, plan and budget together. The days
of working with a silo approach must come to an end.
A point of concern is whether sufficient funds are
allocated towards the eradication of informal settlements
by 2014. The Department of Housing indicated that with
current allocations over the MTEF, they may not be able to
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meet this target. Together with the National Treasury, they
will need to prioritise both financially and in terms of
human resources to ensure that this target is met.
With the continued rise in the cost of building materials,
more emphasis should be placed on using alternative
construction methods such as those which have been
showcased that the Eric Morobi Housing Innovation Hub in
Tshwane. Many of these methods provide a house which is
cheaper to construct, bigger in size and of sound quality.
The increased allocations for school infrastructure, which
will improve existing facilities with priority to the
provision of libraries, sports fields, laboratories, Grade
R classrooms and infrastructure for learners with special
needs, are welcomed.
Funding should not only be provided for the provision of
facilities but must also provide the resources so that
these facilities achieve the results which they are meant
to. Well-resourced libraries will help to improve the
reading skills and knowledge of our children. Sports
equipment will help to produce sports stars of the future.
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Laboratories with the correct equipment will produce
scientists.
One of the disturbing facts presented to the JBC during its
interaction with the Department of Education, the
Department of Health and the Human Sciences Research
Council was the number of schools and clinics without
access to sanitation and water despite considerable
achievements having been made in the provision of these
services.
Tomorrow is World Sanitation Day, but children in 1 532
schools, or six percent of our schools, will have to wait
to celebrate. Therefore, the JBC calls on all related
departments to work together to ensure that by the end of
the 2009-10 financial year no school or clinic should be
without sanitation.
The Medium-Term Budget Policy Statement provides funding
for promoting energy efficiency and investment in renewable
energy sources. Serious and urgent consideration should be
given to the use of alternative forms of energy such as
solar power in those schools and clinics which do not have
access to conventional forms of electricity.
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The National Student Financial Aid Scheme has been an
effective policy measure, with many students being able to
further their studies. Continuous evaluation is required
from the Department of Education to ensure that the
intended target groups do indeed receive this much-needed
funding. The employment of more teachers will not only
reduce learner or educator ratios, but will also improve
the quality of learning, teaching and results. The
establishment of a unit to evaluate school and teacher
performance is welcomed, although it is not clear what
funding will be provided, and more clarity will be required
in this regard.
The JBC was informed that one of the contributors to
absenteeism in certain high schools is transport problems.
There is a need to clarify who is best placed and
responsible to perform this function. The school nutrition
programme provides much-needed sustenance, and often the
only form of sustenance, to learners and is to be extended
to all secondary schools in quintiles one, two and three;
more work needs to be done to ensure that sufficient budget
allocations are made.
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Significant allocations are made for the provision of
public transport infrastructure, although much of these
funds will go to 2010 Fifa World Cup host cities. It is
important to ensure that our people experience the benefit
of safe, affordable and reliable public transport.
Throughout the hearings and in fact over the past four
years, an area that has become increasingly evident to the
JBC is that there is insufficient interdepartmental coordination, co-operation, planning and budgeting.
Underexpenditure is often related to poor planning and
budgeting.
We therefore fully support the recent alliance economic
statement on the need for a high-level planning, evaluation
and monitoring capacity in government and a proposed
planning commission which would ensure the alignment of all
work of government departments.
The Freedom Charter belongs to all South Africans who
embrace it. I would call on all South Africans to register
to vote in 2009 and join the ANC in realising the dreams
and hopes of all the people who gathered in Kliptown in
1955. Together with the ANC, we will create a better life
for all South Africans. I thank you.
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Mr L M GREEN: Chairperson, the Federation of Democrats
welcomes and supports the Medium-Term Budget Policy
Statement. We have all been warned that global economic
growth will be sluggish for several years. The market has
become very volatile, and foreign investors will not be
kind to emerging markets, as we have seen when investors
recently took more than R8 billion out of the country.
The Minister of Finance has predicted that we have to
downscale our growth rate to around 3% over the next few
years. The current global financial crisis was brought
about by the policies of the developed countries. The time
has come for a review of current global market imbalances.
If Germany, Japan, and other First World economies are
facing a recession and shedding jobs every day, we must
thank God that we can still talk of a 3% growth.
To access global funds, it has always been prescribed that
emerging markets must tighten their belts by introducing
austere fiscal measures to contain overspending. However,
when financial crises strike the richer nations, who
themselves ignored the fiscal discipline demanded by them
for smaller, developing economies, developing nations,
despite their sound fiscal policies, continue to lose out
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from accessing funds as the rich countries bail out only
their own financial sectors and at the expense of
development in emerging markets.
South Africans need to be sheltered from the fallout of the
current global financial crisis. As the Minister has stated
in his speech, the crisis will be with us for a number of
years still, since we have a situation where the rich have
become richer and the poor have become poorer before the
current crisis. The impact of the global financial crisis
will be even more critically experienced amongst the
poorest of the poor. I thank you.
Dr D T GEORGE: Chairperson, the Medium-Term Budget Policy
Statement provides a snapshot of deteriorating economic
conditions within which our economy needs to compete.
Two significant events occurred in 2007 which are impacting
on our economic performance. In August 2007 credit markets
froze when trust between banking counterparties broke down.
This resulted in a liquidity crisis in the international
financial markets and fallouts in real economies across the
world.
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A decline in global consumption and the withdrawal of
investor capital from our emerging market will further
enlarge our current account deficit and impact on the value
of our currency. Hedge funds are offloading many of their
assets, including gold, causing the price to fall along
with other commodities. This is unusual, given that the
gold price usually increases during economic turmoil, to
our benefit.
In December 2007 events at Polokwane highlighted concern
over future economic policy. Uncertainty over policy
continuity has increased perceived risk and calls for
unworkable policy shifts have frightened market
participants. Proposals to position government at the
centre of our economy have eroded confidence in our
sustainability and demonstrate our vulnerability to
experimentation with failed economic systems.
Our economic prospects have deteriorated substantially in
the past eight months. Macroeconomic projections indicate
the extent to which South Africans will feel the brunt of
the economic downturn. Fitch and Standard and Poors have
downgraded their economic outlook for South Africa from
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stable to negative. This makes the cost of credit even more
expensive.
The role of government is to help ensure that the downturn
is shallow and short. Government needs to stimulate the
economy without dominating or commanding it. It needs to
intervene through effective fiscal policy, and we broadly
support its approach. Fortunately, our banking system does
not require rescue, so attention can be applied to three
immediate needs: preventing job losses, providing a safety
net for the vulnerable and accelerating job creation. This
can be achieved through improving the ease of doing
business; simplifying the tax regime; providing incentives
to business, especially small and medium enterprises, to
retain its work force; implementing a wage subsidy and
income support; addressing uncompetitive labour laws; and
accelerating public-private partnerships.
There appears to be a broad consensus that developed
economies are heading for recession, and developing
economies for slower growth. Our economy needs to be
perceived as a stable and secure investment destination.
Our fiscal stance, to date, has promoted that objective.
Through appropriate interventions, the downturn can become
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less painful and our fundamentals can be improved to
accelerate the upturn when it inevitably comes. Thank you.
Ms N R MOKOTO: Good afternoon, Chairperson, members, and
people in the gallery, the debate on the Medium-Term Budget
Policy Statement has come at a very critical stage of the
economic developments around the world.
In that case, very serious reviews and considerations have
to be taken in order to place our economy on a platform to
better respond to the current challenges facing the world
as a whole. Our government has been very proactive and,
through the strong supportive measures centred on policies
and relevant institutions, it has, to a certain extent,
assisted in cushioning the economy from the global
pressures of volatility.
Chairperson, during the past 14 years, government has
gradually and effectively strengthened its fiscal position
whilst, at the same time, it has ensured stability in the
public finances. It has, therefore, been able to support
sustainable economic growth through the increase in public
spending on key priorities like boosting the investment in
infrastructure and social and economic development.
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Whilst we appreciate the proactive approach of government,
especially of National Treasury in the choices they have
made for us, we are also mindful of the fact that it also
calls for prudent action on our part as citizens, stateowned enterprises, government departments, and the private
sector. We must heed the call to improve our culture of
saving and to reduce debt and reckless consumption,
particularly as we go into the festive season, as this will
further cushion us from the harsher effects of global
volatility.
For the past five years, government’s fiscal position has
been adjusted to respond to cyclical factors, and last year
a budget balance was introduced which also allowed for a
budget surplus. The advantage was that government better
positioned itself to increase social spending on major
priorities.
For the coming year, it has been projected that there has
been a weakening in the structural budget balance, mainly
due to high expenditure. The state-owned enterprises are
also playing a strong-arm, or bigger role, in driving this
investment. At the same time, revenue trends also reflect
moderation. The buoyancy of the recent years has
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dissipated, giving effect to reduced gross tax revenue as a
percentage of gross domestic product, GDP. Much of this
decline represents a natural reduction in cyclical
components of revenue as economic growth and commodity
prices retreat from relatively high price levels and, as
the economy begins to pick up in 2010, revenue collection
and prices will also stabilise.
For several years our government has been able to reinforce
the progressive character of the tax system. The factors
behind this strong revenue performance included legislative
changes to broaden the tax base, to reduce loopholes, and
to create a more efficient revenue service. Through both
policy reforms and improved administration, government has
increased the efficiency, fairness and progressiveness of
our tax system whilst reducing the impact of high marginal
tax rates.
South Africa’s main sources of tax have been income tax,
VAT and corporate income tax. Improved revenue
administration and a growing economy have enabled our
government to make significant tax reforms over the past
decade. The current tax reforms that are under way include
the replacement of the Secondary Tax on Companies with a
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dividend tax. It is proposed that the general fuel levy
should be shared with metropolitan municipalities and
further tax instruments are being suggested for the
municipalities.
With regard to personal income tax, the 2009 Budget will
again provide relief for individuals to compensate for the
effects of inflation. The nett results of these reforms
include rate reduction, adjustments to brackets, base
broadening in the form of capital gains tax, closing of
various loopholes, and improved enforcement. It is apparent
that a considerable erosion of the company tax base
occurred when the rate was 40%, while a broadening of the
tax base, higher growth, and improved compliance efforts
have resulted in significant increases in this revenue
category since 2001.
Hon members, the VAT zero rating is widely talked about –
that is, whilst zero rating of basic foods and paraffin is
intended to assist the poor, higher-income households also
benefit from this concession. It is our view that most of
the cases ... The ANC supports the statement. Thank you.
[Time expired.]
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The MINISTER OF FINANCE: Siyabonga kakhulu; Sihlalo,
ngaphambili! [Thank you very much, Chairperson!]
I would like to thank the Joint Budget Committee for the
work they have done on the Medium-Term Budget Policy
Statement, because, as is evident from the report published
in the ATC today, and also from the contributions of
members here this afternoon, the committee set about its
task to produce a diligent and detailed process. I think it
is remarkable that Parliament’s oversight is as strong as
it is, and I hope the hon Trent is aware of this.
I think that the broad message that we built the MediumTerm Budget Policy Statement around, which was focused on
the storm and the fact that it will pass, has been well
received by members here.
The report reflects the complexity of the present economic
circumstances. I think it is also important, as reflected
in the earlier discussion, that since the tabling of the
Medium-Term Budget Policy Statement on 21 October, global
circumstances have actually deteriorated somewhat, although
we have had a series of meetings that have allowed us to
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explore options for a turnaround, along with a number of
other countries.
I would like to concur that there is broad agreement on the
key budget priorities over the next three years. These are:
education, health, fighting crime, investing in built
environment infrastructure and improving rural livelihoods.
We appreciate that Parliament broadly supports the division
of revenue among the three spheres because this decision is
a critical decision, ensuring that government’s priorities
are funded, and that subnational governments have the
resources to deliver on government’s priorities.
One of the issues we clearly have to give attention to now
is to improve on the alignment between the three spheres of
government, especially in those areas where we have
concurrent powers, and part of the work that we are
exploring is the estimates of national expenditure that
will in fact construct such an alignment and ensure that
parliamentary oversight over a function, and not just a
function in a sphere, might be considerably improved.
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The Joint Budget Committee makes ten recommendations, as
published in the ATC. I would like to concur with each of
these recommendations, and I undertake to share this with
my colleagues in the executive, especially in those areas
where better alignment is called for between different
functions: education, water, etc. I will communicate this
with my colleagues and ensure that by the time we return in
February with the Budget, these issues have been taken
account of, and, very importantly, that we can reflect on
these issues also in the measurable objectives in the
estimates of national expenditure.
In respect of co-ordination and the measurable objectives,
a series of several intergovernmental forums have been set
up to improve on co-operation between the three spheres and
also within a sphere, but Parliament also has a role to
play in this regard. Raising it here, as the Joint Budget
Committee does in its report published in the ATC, is
important but there needs to be constant follow-up, and I
hope that, even beyond the elections, this will be part of
the way in which the oversight of Parliament is undertaken.
Secondly, departments compose their measurable objectives
as part of their strategic plans and table them for
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scrutiny here in Parliament. I’d like to agree with the
point that the very excitable hon Trent made earlier. It is
not frequently that we recall what you said, Mr Trent, so
let’s celebrate that today! [Interjections.] Parliament has
not actually looked at annual reports this year. Now, if
you haven’t looked at the annual report, how are committees
then prepared to engage with strategic plans going forward?
I just happen to be of the view that it is a major
omission, because the fundamental purpose of parliamentary
oversight over the work of the executive then does not
receive the necessary attention.
So beyond the report as published in the ATC, and knowing
that departments have published measurable objectives,
Parliament needs to know that departments actually stick to
what they made the commitments for. There is a kind of
contract about what the money will buy, and that oversight
function is a function best performed by Parliament.
Lastly, despite the gloomy international economic outlook,
because of the tough decisions we took earlier on, we will
be able to finance our spending plans over the next three
years. We have the fiscal space to protect spending on
infrastructure and social services, because it is these
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investments that will ensure that we grow faster when
indeed the storm has abated.
The Budget that will be tabled in February will take
account of the recommendations and views of the committee,
and we will endeavour to continue engaging with these
issues that the report raises way beyond the Budget on 11
February next year.
Thank you very much, Chair. [Applause.]
INTELLECTUAL PROPERTY RIGHTS FROM PUBLICLY FINANCED
RESEARCH AND DEVELOPMENT BILL
(Consideration of Bill)
Mr G G OLIPHANT: Chairperson, Ministers and Deputy
Ministers present here, let me also congratulate the newly
appointed Ministers and Deputy Ministers who are here and
those who are not here. I also greet the Chairpersons and
deputies behind us, as well as the Chief Whip and Deputy
Chief Whip of the Majority Party. Welcome to all the new
members who joined Parliament today and on the other days.
[Applause.]
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Today we are dealing with some amendments that arose from a
Bill that we debated here in Parliament. We are happy to
report that the Portfolio Committee on Science and
Technology met on 24 October 2008 and adopted unanimously
amendments that the National Council of Provinces proposed
for our consideration, relating to the Intellectual
Property Rights from Publicly Financed Research and
Development Bill. The Bill was approved by the National
Assembly on 21 August 2008 and sent to the NCOP for
concurrence.
The two amendments proposed are of a technical nature and
essentially clarify that choice, in respect of intellectual
property emanating from publicly financed research and
development, shall be owned by the recipient. Where the
recipient prefers not to retain ownership of the
intellectual property or not to obtain statutory protection
thereof, that choice must be made in accordance with the
regulations and any guidelines published in Nipmo, the
National Intellectual Property Management Office, by notice
in the Gazette or other provisions applying in this regard.
Secondly, the Bill addresses the right of intellectual
property creators in institutions to benefit-sharing. For
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instance, intellectual property creators at an institution
and their heirs are granted a specific right to a portion
of revenue that accrues to that institution.
What we are saying is that if you are a creator at an
institution that receives some royalties relating to this
intellectual property, you or your heirs must benefit from
that. There is a legal criterion that facilitates this. So,
I’m not going to get into the details, because we have
debated this law before.
The committee was satisfied that the omission and/or
corrections suggested by the NCOP do not change the
substance of the Bill as approved by the National Assembly.
To illustrate the critical importance of this piece of
legislation in relation to economic growth and
competitiveness, let me just repeat some examples that we
gave at the CSIR, Council for Scientific and Industrial
Research, conference held yesterday – and it continues
today – as achievements. The CSIR that we are talking about
is funded by the public and boasts many achievements of
technological excellence and innovation. Amongst these is,
for instance, the Heavy Vehicle Simulator, which is a
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mobile laboratory that allows engineers to assess the
performance of new road designs using accelerated testing
techniques.
This scientific tool for measuring scientific competence
optimises the structural design of roads and minimises the
life cycle cost of the road. The CSIR, for instance,
informed us that the United States of America and China
have adopted this world-class system to develop
infrastructure in their own economies.
Deputy Minister Hanekom will be happy to know about the
lithium battery technology that is used in many power tools
or devices. Soon, it is expected that this technology will
also be deployed in battery-powered motor vehicles.
Although South Africa does not have a battery cell
manufacturing industry, our country has recently announced
its plans to develop a battery car. A prototype car was
recently announced at the Paris Motor Show. The fact that
CSIR has key patents in the lithium battery field provides
us the freedom to operate and establish a battery cell or
battery-manufactured operation.
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There are many examples; another excellent example of our
research excellence is the Bioartificial Liver Support
System that is intended to extend the lives of patients
suffering from acute liver failure - and the list is long.
Regarding the last example I gave, Ntate Mokoena, what
science will do to assist you when you have this condition
is to drain all the blood out of your body and pump into
you a lot of oxygen so that you remain alive. It will also
purify the blood and try and treat some conditions in your
liver. That is what it is able to do. The marvels of modern
science! Our country is at the cutting edge of this
technology.
People die owing to the condition of liver failure.
Transplants are expensive and it’s also very difficult to
get liver donors and so on. So, we are excited that the
next Parliament has the prospect of overseeing some of
these pieces of legislation - this one and the others that
we adopted during the course of this year.
Let me wish all political parties a peaceful election
campaign, all members a restful season and, obviously, an
overwhelming victory for the ANC in the next election.
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Mr J P I BLANCHÉ: Mr Chairman, may I ask the member a
question?
The HOUSE CHAIRPERSON (Mr M B Skosana): Well, you still
have time, hon Oliphant. Will you take a question?
Mr G G OLIPHANT: I shall, Chairperson. Go ahead, sir.
Mr J P I BLANCHÉ: Now that Mr Lekota and Mr Shilowa have
left the ANC, is there any intellectual property left in
the ANC?
The HOUSE CHAIRPERSON (Mr M B Skosana): You wanted a
question.
Mr G G OLIPHANT: I was hoping for a much more intelligent
question than that. [Interjections.] No, no, no! I shall
not say that any ...
The HOUSE CHAIRPERSON (Mr M B Skosana): Please, hon member,
you offered to answer the question!
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Mr G G OLIPHANT: I shall not say anything about our former
comrades. They are just lost, that’s all. Basically, like
the President of the ANC, Jacob Zuma, said ...
The HOUSE CHAIRPERSON (Mr M B Skosana): Hon member, your
time has expired. I need to rescue you now. [Laughter.]
The hon Oliphant started off by welcoming me, even though
I’ve been in the Chair for a whole year. I don’t know
whether the hon member is bidding me farewell; you don’t
know these things. Maybe he knows something that I don’t.
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I
move that the Bill, as amended, be passed.
Agreed to.
Bill, as amended, accordingly passed.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON EDUCATION
– STRATEGIC WORKSHOP
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CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON EDUCATION
- OVERSIGHT VISIT TO VAAL UNIVERSITY OF TECHNOLOGY
Prof S M MAYATULA: Chairperson, I will start off by
congratulating two members who were part of the compilation
of this report and who have left us. These are very
important reports. What I need to do first is to indicate
where to find this in the ATC, because I am not going to go
through what is contained in it. The first one relates to
the workshop we had at Gordon’s Bay as a portfolio
committee; the second one relates to our visit to the Vaal
University of Technology.
I want to start off by congratulating two members of the
portfolio committee who have left us. They were part of the
process when we were dealing with these things. I am
referring to hon Matsomela, who has since been promoted to
the position of Chairperson of the Portfolio Committee on
Public Service and Administration. [Applause.] I am also
referring to Adv Gaum, who has since been promoted to the
position of Deputy Minister in the Department of Education.
[Applause.] As a committee we do pride ourselves on
exporting leaders to different areas - Deputy Ministers,
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Ministers and chairpersons of committees. So we hope that
they are going to fare well in their new lives.
On the workshop of the portfolio committee held at Gordon’s
Bay on 9 to 11 March, I want to again acknowledge, in
particular, hon Ben Mthembu in his absence. Hon Ben Mthembu
was a driving force behind this programme and he had a real
passion for quality of education. Unfortunately, he has
also left the committee. In particular, what we did in that
workshop was to invite people from outside. We invited Prof
Christie to deal in particular on thinking outside the box
regarding issues about general education. We also invited
Prof De la Rey again to come from outside and deal with
issues on higher education.
I would really appreciate it if people who are not part of
the committee could go to the ATC dated 27 August, 2008. It
was good to hear Prof Christie again indicating the
achievements of this government. Let me just read a few
achievements Prof Christie, from the Cape Peninsula
University of Technology, mentioned in the first decade:
More equitable distribution of state resources, for example
no-fee schools; and the redesigning and restructuring of
the system of education. She was happy with the increased
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access to our schools, the improvement in school
provisioning, moving towards the achievement of education
for all. She was also able to go through some of the
challenges that are facing us. She referred to the quality
of education, how our children are failing at international
tests for reading, writing and arithmetic. If I cross over
to Prof De la Rey, she was able to bring a SWOT analysis
about our higher education, looking at what the strengths,
weaknesses, opportunities and threats are - and again it
was a breath of fresh air to see somebody from outside. In
the same workshop we were able to get first-hand
information from our comrade, hon Bapela, regarding the new
model of oversight. As a committee we were really happy to
ask: What does it tell us? I wish this could also be taken
to other committees, because this is a very important model
that is going to assist us. In that workshop we were even
able to plan ahead up to and including 2011, so this is
kind of a Bible and basis we are going to be using to see
how we are going to take education forward. Let me put that
aside.
When it comes to our visit to the Vaal University of
Technology, we had to go there because of the turmoil, the
strife and the strike, and because we got letters from
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different stakeholders. If one reads this report you can
see how we were able to get the different stakeholders,
unions, the teachers and management to share how they feel
about their university. During the presentation from all
stakeholders, one could sense the mistrust. In 2006 the
rector of that university was dismissed. He is still
appealing. The new rector came and one could sense that
these two stakeholders, the management and other different
stakeholders, did not see eye to eye. They are not working
together and the new management has not, as yet, been
accepted. What we could read was that there was a sense of
fear. Different structures are fearful of victimisation.
They say if you stand and say anything as a structure,
chances are you are going to be dismissed.
We tried to reason with the management that our democracy
allows us to think whatever way we want to think and it is
very important to accommodate everybody. So we did make
some recommendations and, again, if one were to read this
report, you can see that it is an objective report, taking
all sides into account and indicating the state of affairs
in that university. On behalf of the portfolio committee, I
propose that these reports be adopted.
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The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I
move that the reports be adopted.
Agreed to.
Reports accordingly adopted.
CONSIDERATION OF TWENTY-SEVENTH REPORT OF STANDING
COMMITTEE ON PUBLIC ACCOUNTS – HOUSING SUBSIDIES TO
MUNICIPAL EMPLOYEES AND ADMINISTRATION OF LOW-COST HOUSING
BY CERTAIN PROVINCIAL HOUSING DEPARTMENTS
CONSIDERATION OF TWENTY-EIGHTH REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – INDEPENDENT COMPLAINTS DIRECTORATE
(ICD)
CONSIDERATION OF TWENTY-NINTH REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – INKANKALA WATER BOARD
CONSIDERATION OF THIRTIETH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS – MAGALIES WATER BOARD
CONSIDERATION OF THIRTY-FIRST REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – NAMAKWA WATER BOARD
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CONSIDERATION OF THIRTY-SECOND REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – BUSHBUCKRIDGE WATER BOARD
CONSIDERATION OF THIRTY-THIRD REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – CONSTRUCTION EDUCATION AND TRAINING
AUTHORITY
CONSIDERATION OF THIRTY-FOURTH REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – DEPARTMENT OF HEALTH AND WELFARE
SECTOR EDUCATION AND TRAINING AUTHORITY (HWSETA)
CONSIDERATION OF THIRTY-FIFTH REPORT OF STANDING COMMITTEE
ON PUBLIC ACCOUNTS – LOCAL GOVERNMENT SECTOR EDUCATION AND
TRAINING AUTHORITY
Mr N T GODI: Thank you very much, Chairperson. As you
indicated, the nine reports that we are tabling relate to
the Auditor-General’s report on housing subsidies to
municipal employees and administration of low-cost housing
projects by certain provincial departments. The report
deals with the challenges that we identified as well as the
recommendations that we have made to improve and ensure
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that this kind of maladministration, blended with corrupt
practices, does not re-occur.
The second report is the annual report of the Independent
Complaints Directorate, which is a qualified audit. The
major issues of concern relate to weakness in internal
controls and a lack of monitoring, which is a product of a
high vacancy rate, including the fact that that entity does
not have a permanent head or director. And, I think this is
the third year.
The other four reports relate to the Water Boards such as
the Inkangala, Magalies, Namakwa and Bushbuckridge water
boards, who have all received qualified audits. If one
looks at the challenges that face these entities which
perform a very important and critical role in the rural
areas, one finds that they are similar. There is a lack of
audit committees or internal audit, a lack of segregation
of duties, a lack of fraud prevention plans, and general
weakness in the internal control processes. We are calling
on the Department of Water Affairs and Forestry to heavily
intervene to ensure that these institutions are
sufficiently capacitated to discharge their
responsibilities to our people.
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The last three reports are the reports of the Setas. We
have the Construction and Education and Training Authority,
which for quite some time has not been showing any signs of
improvement, as a disclaimer. There are serious control
weaknesses and skills shortages.
We have questioned why the Minister has not yet intervened
because it appeared that things were merely moving from bad
to worse with no prospect of improvement. And if one looks
at the current public small parcel explosive detection
system, Speds, amongst the various stakeholders it does
indicate a Seta that is experiencing serious problems.
The same thing applies to the Health and Welfare Seta. It
also had a disclaimer of audit opinion indicating a
complete breakdown in the state of affairs. The last one is
the Local Government Seta, which has a qualified audit
opinion. But, if one looks at the reports of these three
Setas there are basically the same challenges. They are
governance issues; lack of internal controls and proper
monitoring systems.
I am convinced, as hon members and comrades will have seen
in the reports, that we as a committee have made firm
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proposals in terms of what needs to be done. It remains for
our colleagues in the Portfolio Committee on Labour to
assist us in terms of the inner monitoring of the
challenges that are there, as well as the executive. Some
of these administrative challenges persist to a point where
they certainly become political challenges where the
executive needs to intervene to ensure that corrective
measures are taken, especially as recommended by
Parliament. I thank you. [Applause.]
Mr T R MOFOKENG: Thank you, Chairperson. I think the
chairperson covered enough when he spoke about
qualifications, be they adverse, disclaimers or qualified
audits. Those are the normal terms which are used in
transactions of books – when you qualify books. On
qualifications, when people get qualified they should not
think that they are qualified to be promoted. They are
qualified to be dismissed. [Laughter.]
Disclaimer means that there was no talk – the CEO could not
even know whether he was coming or going. Therefore the
opinion from the auditors has to be a disclaimer. It is in
such thing that when he gives emphasis of matter it shows
problems. Let me express myself on the reports of
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provincial housing departments and the Independent
Complaints Directorate.
Chairperson, when the representatives of our people met at
Kliptown in 1955, to chart together a vision of our country
as expressed in the Freedom Charter, they included a clause
that says: “There shall be houses, security and comfort!”
They went further to say: “All people shall have the right
to live where they choose, be decently housed, and to bring
up their families in comfort and security.”
Section 26 of the Constitution states that: “Everyone has
the right to have access to adequate housing.” The state
must ensure the progressive realisation of this right.
According to the Department of Housing, over 2,3 million
houses have been constructed under the government housing
subsidy scheme, from April 1994 to March 2007. Whilst this
has gone some way towards fulfilling the aims of both the
Freedom Charter and our country’s Constitution, we have to
admit that more still needs to be done.
It is our duty as Scopa to ensure effective monitoring of
those tasked with realising the noble aspirations of our
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people. Additionally, we should always remember that the
financial reports that we analyse affect human beings.
Building defects were identified in 737 of the 970 houses
inspected by the audit team. The defects included, amongst
others, the following: walls and foundations were severely
cracked; gaps between the outside walls and the roofs;
roofs of houses were leaking; general basic services were
either not installed or not connected to the bulk supply.
So, this confuses us, and we don’t know whether there are
any inspectors. Really, if you undertake quality control
and go to inspect, you then ask yourself, how is it that a
house that was not even built more than two years ago,
starts cracking? These are the problems that we seem to be
facing.
When the audit was conducted, the following provinces were
covered: Free State, Gauteng, KwaZulu-Natal, Limpopo,
Mpumalanga and the Western Cape. The criteria which need to
be met for eligibility include marital status, residency,
age, monthly household income, whether previous benefits
have been received from government funds, or whether it is
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a first-time property owner. Those are some of the things
that are needed.
With regard to the Independent Complaints Directorate, for
the 2006-07 financial year, a qualified audit opinion was
expressed by the Auditor-General on the financial
statements of the ICD. Before elaborating on the details of
the audit report, it is important that we remind ourselves
of the crucial responsibility that has been entrusted to
the ICD.
Section 53(2) of the South African Police Act stipulates
that the Independent Complaints Directorate may, upon
receipt of a complaint, investigate any misconduct or
offence allegedly committed by a member; investigate any
death in police custody or as a result of police action;
and may investigate any matter referred to the directorate
by the Minister or a member of the executive council.
It is disappointing, therefore, that the ICD did not have a
full staff complement, whilst it had to deal with an
increase in complaints. The Auditor-General reported that
out of 535 approved positions only 231 had been filled in
the 2006-07 financial year. Due to critical management
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positions being vacant, policies and procedures were not
properly monitored to detect and prevent noncompliance.
This can only negatively affect the work of the ICD, and
unduly prejudice those the directorate is meant to serve.
The Standing Committee on Public Accounts therefore
recommends that the accounting officer reassesses the
organisational structure, and requests more funding from
National Treasury, if needed, to ensure that the entity
delivers on its mandate.
Secondly, the Auditor-General reported the following
shortcomings with regard to fixed assets: The valuation of
assets amounting to R29 319 000, including adjustments of
R7 093 000, could not be verified due to inadequate
documentation. Assets were not always bar-coded, and assets
valued less than R5 000 are not supposed to be included in
the register according to the regulations of the auditors
and the Treasury.
The committee recommends that the accounting officer
ensures that an appropriate document management system is
implemented to control all source documentation and ensure
that accurate reconciliation is done; that assets are
recorded and bar-coded; and that there is compliance with
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the National Treasury prescript which requires that assets
with a value of less than R5 000 should not be listed as
capital assets in the financial statements.
Thirdly, the following control weaknesses were identified
with regard to leave benefits: Leave forms were not
properly filled in, resulting in them not being properly
captured on PERSAL; leave forms were not always completed
and approved before staff went on leave.
Hon members, I think this is a problem that we are having
in most of the departments. You find that a CEO is
suspended for almost two years with no case going on, and
in certain departments there would be an acting CEO – for
the whole two years. The first CEO is suspended with full
pay. Now, this is unbecoming behaviour. If somebody goes
for two years and gets fully paid while suspended with no
hearing, then one is surprised as to what is really going
on.
That is why I say, let us try to be serious and assist each
other. I appeal to the Ministers and their Deputy Ministers
– Scopa has more than 35 Ministers. It is the only
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committee that has so many Ministers, but none of these 35
Ministers have attended Scopa’s meeting.
They have never been in a study group of Scopa. So, I have
now come to the level of a Whip in exposing the Ministers
in this House. Because where we are supposed to discuss
these, in the study group, they are not there. Now, where
should we plan and discuss these things? You really cannot
pump out money and then just leave. I am talking here about
R29 319 000, which I am now proposing that this House
accept as a loss, and forget about the R29 million which
got lost. This is what we have always said.
Today we are proposing and putting forward that hon members
should accept the loss of R29 319 000 to go down the drain
and accept this report. Therefore, the report should be
accepted with such a loss of an amount, and it’s not for
the first time. Thank you.
Mr J J M STEPHENS: Chairperson, I must immediately thank the
hon Mofokeng for what he said here today, because he has
underlined an extremely important point about Minister’s
non-attendance at Scopa. The DA has asked for that to
happen a number of times, yet it never did. We are
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extremely happy that such a view is now also being
supported from the ANC benches. It would be a marvellous
development if on each occasion that we call departments to
the committee we would have both the departments and the
Ministers present.
The Committee on Public Accounts called four water boards
to appear before it to deal with the findings of the
Auditor-General regarding their finances. It is deeply
disturbing to note the complete inability of these boards
to function at acceptable standards. The Magalies Water
Board, for example, is one of the biggest of its kind in
the country. Yet it lacks properly developed policies and
procedures to comply with generally accepted practices and
applicable legislation. It must be stressed that no
acceptable explanation could be put forward by the board’s
representatives at the meeting for the lack of, for
example, an operational audit section.
It must be said that it was still better than other boards,
such as the Inkankala and Namakwa Water Boards, which both
totally lacked an audit committee, and the Bushbuckridge
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Water Board, which, despite having such a committee, at
least nominally, had no internal audit done at all during
the previous year. In all cases the committee’s report now
before Parliament demanded a progress report within 60 days
of the adoption of the report by this House.
These results are illustrating the importance of the
oversight work that Parliament does through its Committee
on Public Accounts. I am so glad that the hon Minister of
Finance also raised the whole question of oversight. But
therein lies a concern, because Scopa does not have the
ability to deal fully and effectively with all the followup reports and investigations that would be required to
complete the job. On a previous occasion in this House, I
have requested that portfolio committees should follow-up
on the work done by Scopa. I know that some of them did,
but they were unfortunately a minority.
It would not be an overstatement to suggest that the
oversight work done by Scopa was the most important work of
Parliament as far as oversight was concerned. The AuditorGeneral’s work would all be in vain, were it not for the
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fact that Parliament, through Scopa, takes up his findings
and holds the departments and entities to account. This
work was absolutely essential for the effective functioning
of the nation as a delivery vehicle for the people. It was
not a luxury but a necessity. The work was essential and
must carry on despite whatever else was happening.
This is why we are perturbed by the present state of
affairs, as was pointed out by my colleague hon Trent in
his member’s statement. Scopa’s work must be continued,
despite an impending election. The affairs and the best
interests of the nation cannot be deserted and abandoned
because members have to get themselves re-elected. We have
been entrusted to look after the affairs of our people. The
trust is sacrosanct - we dare not violate it.
The seriousness of the challenge faced by our democracy is
illustrated by the fact that for the 2007-08 year, the
Auditor-General gave only five departments clean audit
reports. Nine departments received qualified reports and
had had them for six consecutive years. About 11 others had
emphasis of matter and other matters cluttering their
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reports - one department of state and one entity received
total disclaimers of opinion.
It is true that elections are important. They are important
for democracy to function. But nothing, not even elections,
could be allowed to cause a discontinuation of good
governance. Both are essential for a successful democracy.
I would appeal to Madam Speaker and to all the Whips of all
the parties in Parliament, to arrange matters in such a way
that it never happens again that Scopa’s work gets
interrupted and discontinued as in the present case.
The work that is not done now could not be done later. What
is not done this year is not going to be done at all,
because after the elections the new financial year will be
upon us. I thank you. [Time expired.] [Applause.]
Mr H J BEKKER: Chairperson, the Report of the Standing
Committee on Public Accounts before us for consideration
today highlights some of the weaknesses of the institutions
that are meant to be working for the people of South Africa
in the improvement of their lives. A common theme among the
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reports of the various water boards considered, was the
inadequacy with regard to internal audit controls.
In most instances, there were no audit committees in place
and no internal audits were performed in the year under
review. However, realities should also be faced considering
Namaqualand, for instance, where enormous distances of
water pipelines are supposed to be maintained, but where
there are very few customers or consumers, because of the
sparsely populated area. The Department of Water Affairs
should, in this case, give more money to them.
The audit of the six provincial housing departments, which
focused on municipal employees who should not have received
a subsidy or who should have received a reduced subsidy,
identified some very worrying shortcomings with regard to
the administration of subsidy applications, as well as the
administration of housing projects. Some of these include:
Municipal employees submitting outdated and misrepresented
information on their subsidy applications. Here we are
talking of outright fraud and self-enrichment. Why are
these employees not fired? There is no way in which you
could be tolerant of that. This government is too tolerant
of fraud. Regarding the inadequate management measures for
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the safekeeping of completed application forms, or the fact
that these have not been kept in safe custody, was this
done on purpose to conceal fraud or mismanagement? I am
asked that question.
The reply we got from the Director-General was that there
was a lack of capacity. Imagine the capacity that is needed
by the person who is doing the filing. If the person is
taught for one week, he or she would know how to file. The
ownership of houses has not been transferred to the
beneficiaries, although payments have been made to
developers. Building defects in respect of 737 of 970
houses inspected imply that 75% of the houses turned out by
the Department of Housing are defective. We are not going
to tolerate that. The correctness of payment made to
developers could not always be verified as the departments
could not provide supporting documents indicating payments
for construction of houses.
Had there been colluding between the tenderers and the
municipal employees, considering that so many people have
fought so hard and waited for so long for houses, and that
some were even forced to live in makeshift houses in bad
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condition, that is simply unacceptable. I thank you. [Time
expired.] [Applause.]
Ms S RAJBALLY: Chairperson, in report 27 great concerns are
expressed over the affairs of the Department of Housing,
which the MF wants to address in the light of the
recommendations made by the Standing Committee on Public
Accounts, Scopa, and monitored by them.
Report 28 has made it clear that the Independent Complaints
Directorate, ICD, needs to address the shortfall in
vacancies and leadership.
Further, the policy concerns expressed in report 30 on the
Magalies Water Board need to be given serious
consideration, and similarly the management of the Namakwa
Water Board in report 31 needs attention so that they may
realise their mandate. Report 32 seems to have picked up a
similar loophole in Bushbuckridge Water Board regarding
which the MF express the same sentiments.
Recommendations made by Scopa on the remaining reports,
equally, require earnest attention.
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The MF reiterates the importance for us to govern the
system of transparency, to encourage accountability, and
Scopa is the leading drive force in ensuring that this is
upheld in the area of public accounts. Thank you,
Chairperson.
Mr D M GUMEDE: Chairperson and hon members, on the occasion
of the 10th Anniversary of the Association of Public
Accounts Committees, the former Speaker of the National
Assembly, Dr Frene Ginwala, said:
The struggle against apartheid was not simply about the
right to vote, important as it is. It was also about a new
kind of society, about new values which we have embodied
in our Constitution; values such as equality, nonsexism,
accountability, responsiveness, openness, transparency and
a just administration.
These values are the basis for our governance and the
context within which we view our country’s government and
its entities.
Having said that, I shall start with the Inkangala Water
Board – and I shall deal with Orders numbers 9 to 15 on the
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Order Paper. In this entity, there was no audit committee,
there was no internal audit and there was noncompliance
with the Water Services Act - they had a qualified report
as a result. The committee recommends that they have to
correct this within 60 days and report back.
The next entity was the Magalies Water Board, which also
has a qualified audit opinion for the 2006-07 financial
year. They have no internal audit, they lack all controls,
and a fraud prevention plan was developed and not
implemented. The annual report went on to say that
transactions had no supporting documentation and there was
a lack of appropriate policies and procedures.
The committee recommended that the internal audit section
should be fully operational. Monitoring controls should be
put in place and reconciliations should be made.
The Standing Committee on Public Accounts requested that
progress reports be sent to Parliament within 30 days. That
is a progress report.
For the Namakwa Water Board, problems were of a similar
nature and they did not have a Chief Executive Officer,
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CEO, as well. They were also required to report on their
progress within 60 days.
The Bushbuckridge Water Board had the same problems but, on
top of that, the municipalities that were served by the
Bushbuckridge Water Board owed the board a large amount.
The board had to recover R644 651 million that was
irregularly paid in the 2003-04 financial year, and they
had inefficient recording keeping. The committee has
recommended that this be corrected and a progress report be
sent to Parliament within 60 days of the consideration of
that report by Parliament.
We request that management should enforce the relevant laws
and regulations. What has to be clear to all of us is that
if there are no controls, then there are leakages like
theft, fraud and waste, which in turn lead to less
delivery; and in these instances it will eventually mean
that the communities supplied by these water boards may
eventually have no water. Let us remember that where there
is pure water there is life and where water is contaminated
it can be deadly. And this depends on how we exercise our
controls.
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We have experienced and survived Eskom blackouts, and they
were bad. The same experience with water will surely be
more devastating, if not deadly.
Focusing on the Skills, Education and Training Authorities,
Setas, under the Department of Labour, which are listed as
Orders number 13, 14 and 15 in our Order Paper, we start
with the Construction Education and Training Authority
and
continue up to the Local Government Sector Education and
Training Authority, which is number 15.
The problems in the Setas include a lack of leadership;
that is, they have periods of time without a CEO, and some
of them without Chief Financial Officers, CFOs, which then
causes a lack of leadership.
Over and above this, these entities were found to be
lacking in capacity and also lacking in skills, which
resulted in poor governance and which has also resulted in
the irregular awarding of tenders worth R14 million, among
others. This resulted from ineffective internal auditing
and their audit committees were less effective and
furthermore irregular in the issuing of tenders, and a
disregard for applicable laws was experienced in these
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departments as a result of a lack of leadership, a lack of
capacity, a lack of skills and noncompliance with
regulations.
The committee requests support from the relevant portfolio
committees and Parliament.
In conclusion, let me quote John Rohn.
To be successful you don’t have to do extraordinary
things. Just do ordinary things extraordinarily well.
The Public Finance Management Act, PFMA, and the laws of
our motherland do not require extraordinary effort or
extraordinary intelligence. They do not require
extraordinary expertise that is not there. They simply ask
of us to do what we can, and to do it as we ought to. This
will make us realise the dreams of our forebears at
Kliptown when they adopted the Freedom Charter.
Looking at the performance of a number of departments and
the number of public entities of which the majority where
not qualified, not well-managed and not well-governed, that
journey was a dream begun by the Freedom Charter. We,
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indeed, shall get it right. Thank you very much, hon
Chairperson.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I
move:
That the reports be adopted.
Motion agreed to.
Reports accordingly adopted.
The House adjourned at 18:24.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
FRIDAY, 24 OCTOBER 2008
ANNOUNCEMENTS
National Assembly
The Speaker
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1. Membership of Committees
(a)
Ms. M J J Matsomela has been elected as Chairperson of the Portfolio
Committee on Public Service and Administration with effect from 24
October 2008.
COMMITTEE REPORTS
National Assembly
1.
Report of the Portfolio Committee on Science and Technology on the Intellectual
Property Rights Bill from Publicly Financed Research and Development Bill
[B46B – 2008], (National Assemby – sec 75), dated 24 October 2008.
The Portfolio Committee on Science and Technology, having considered the
Intellectual Property Rights from Publicly Financed Research and
Development Bill [B 46B – 2008], (National Assembly – sec 75), and the
amendments proposed by the National Council of Provinces (Announcements,
Tablings and Committee Reports, 04 September 2008, p 1668 - 1669), referred to
the Committee, reports the Bill with amendments [B46C – 2008].
FRIDAY, 31 OCTOBER 2008
18 NOVEMBER 2008
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ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Assent by President in respect of Bills
(1)
Judicial Service Commission Amendment Bill [B 50B – 2007] – Act No 20
of 2008 (assented to and signed by President on 22 October 2008).
(2)
Air Services Licensing Amendment Bill [B 25B – 2008] – Act No 21 of
2008 (assented to and signed by President on 22 October 2008).
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a) Report and Financial Statements of the Government Employees Pension Fund
(GEPF) for 2007-2008, including the Report of the Independent Auditors on
the Financial Statements for 2007-2008 [RP 148-2008].
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(b) Report and Financial Statements of the Reconstruction and Development
Programme Fund for 2007-2008, including the Report of the Auditor-General
on the Financial Statements for 2007-2008 [RP 269-2008].
(c) National Treasury – Consolidated Financial Information for the year ended 31
March 2008 [RP 268-2008].
(d) Draft Regulations issued under Section 75B of the Income Tax Act, 1962 (Act
No 58 of 1962) prescribing administrative penalties in respect of noncompliance.
2.
The Minister of Communications
(a)
Report and Financial Statements of the Independent Communications
Authority of South Africa for 2007-2008, including the Report of the AuditorGeneral on the Financial Statements and Performance Information for 20072008 [RP 239-2008].
3.
The Minister of Environmental Affairs and Tourism
(a)
Government Notice No 949 published in Government Gazette No 31380 dated
5 September 2008: Declaration of intention to propose extensions to and
exclusions from, and a buffer zone for the fossil hominid sites of Sterkfontein,
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Swartkrans, Kromdraai and the environs (Cradle of Humankind), in term of
the National Environmental Management: Protected Areas Act, 2003 (Act No
57 of 2003).
(b)
General Notice No 1138 published in Government Gazette No 31415 dated 15
September 2008: Second Edition Environmental Implementation and
Management Plan (EIMP) – March 2008.
(c)
Government Notice No 1054 published in Government Gazette No 31461
dated 3 October 2008: Declaration of Land to be part of Augrabies Falls
National Park, in terms of the National Environmental Management: Protected
Areas Act, 2003 (Act No 57 of 2003).
(d)
Government Notice No 1055 published in Government Gazette No 31461
dated 3 October 2008: Declaration of Land to be part of Agulhas National
Park, in terms of the National Environmental Management: Protected Areas
Act, 2003 (Act No 57 of 2003).
(e)
Government Notice No 1056 published in Government Gazette No 31461
dated 3 October 2008: Declaration of Land to be part of Mapungubwe
National Park, in terms of the National Environmental Management: Protected
Areas Act, 2003 (Act No 57 of 2003).
18 NOVEMBER 2008
(f)
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Government Notice No 1057 published in Government Gazette No 31461
dated 3 October 2008: Declaration of Land to be part of Namaqua National
Park, in terms of the National Environmental Management: Protected Areas
Act, 2003 (Act No 57 of 2003).
(g)
Government Notice No 1058 published in Government Gazette No 31461
dated 3 October 2008: Declaration of Land to be part of Marakele National
Park, in terms of the National Environmental Management: Protected Areas
Act, 2003 (Act No 57 of 2003).
(h)
General Notice No 1264 published in Government Gazette No 31495 dated 6
October 2008: Submission of names of persons fit to be appointed to serve as
members of the South African Tourism Board, in terms of the Tourism Act,
1993 (Act No 72 of 1993).
(i)
Government Notice No 1108 published in Government Gazette No 31516
dated 17 October 2008: Regulations on the Stilbaai Marine Protected Area, in
terms of the Marine Living Resources Act, 1998 (Act No 18 of 1998).
(j)
Government Notice No 1109 published in Government Gazette No 31517
dated 17 October 2008: Notice declaring the Stilbaai Marine Protected Area
under section 43 to be a marine protected area, in terms of the Marine Living
Resources Act, 1998 (Act No 18 of 1998).
18 NOVEMBER 2008
(k)
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Government Notice No 1110 published in Government Gazette No 31517
dated 17 October 2008: Draft notice of fees payable in respect of applications
for, and the issuing or granting of rights, permits and licences, in terms of
section 25 of the Marine Living Resources Act, 1998 (Act No 18 of 1998) for
recreational scuba diving in the Maputaland and St Lucia Marine Protected
Areas; and in the Stilbaai and proposed Border Region Marine Protected Area
upon declaration.
4.
The Minister of Trade and Industry
(a)
Government Notice No 732 published in Government Gazette No 31226 dated
4 July 2008: Guidelines for the sub-programme Enterprise Investment
Programme (Manufacturing Investment Programme).
(b)
Government Notice No 733 published in Government Gazette No 31226 dated
4 July 2008: Guidelines for the sub-programme Enterprise Investment
Programme (Tourism Support Programme).
(c)
Government Notice No 758 published in Government Gazette No 31232 dated
18 July 2008: Accounting Officer – profession whose members qualify in
terms of section 60: Chartered Institute of Business Management, in terms of
the Close Corporation Act, 1984 (Act No 69 of 1984).
18 NOVEMBER 2008
(d)
Page 198 of 292
Government Notice No 772 published in Government Gazette No 31247 dated
18 July 2008: Incorporation of an external company as a company in the
Republic of South Africa: Rocsi Holdings (Pty) Ltd, in terms of the
Companies Act, 1973 (Act No 61 of 1973).
(e)
Government Notice No 836 published in Government Gazette No 31301 dated
8 August 2008: Standards matters, in terms of Standards Act, 1993 (Act No
29 of 1993).
(f)
Government Notice No 924 published in Government Gazette No 31371 dated
29 August 2008: Media, Advertising and Communication M (MAC) Sector
Charter on Black Economic Empowerment, in terms of Broad-Based Black
Economic Empowerment Act, 2003 (Act No 53 of 2003).
(g)
Government Notice No 957 published in Government Gazette No 31402 dated
5 September 2008: Incorporation of an external company as a company in the
Republic of South Africa: HIS (PTY) LTD, in terms of Companies Act, 1973
(Act No 61 of 1973).
(h)
Government Notice No 66 published in Government Gazette No 31443 dated
26 September 2008: Standards matters, in terms of Standards Act, 1993 (Act
No 29 of 1993).
18 NOVEMBER 2008
5.
Page 199 of 292
The Minister of Water Affairs and Forestry
(a)
Report and Financial Statements of Inkomati Catchment Management Agency
for 2007-2008, including the Report of the Independent Auditors on the
Financial Statements for 2007-2008 [RP 138-2008].
National Assembly
1.
The Speaker
(a)
Letter from the Minister of Arts and Culture dated 29 October 2008, to the
Speaker of the National Assembly explaining the delay in the tabling of the
Annual Reports of the Arts, Culture and Heritage Institutions for 2007-2008.
In terms of section 65(1)(a) of the above-mentioned Act the Annual Reports
and Financial Statements, and the Audit Reports on those Statements of the
Arts, Culture and Heritage Institutions listed below were tabled late or have
not been tabled.
National Arts Council (NAC)
The Audit for 2007/08 was completed timeously and the Audit Report
submitted to the NAC Council by 31 July 2008.
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The Draft Annual Report was subsequently completed but due to a
misunderstanding in respect of the timeframes allowed for the completion of
the Report, the Foreword by the new Chairperson of Council was received
late.
This delayed the printing process and the Annual Report only forwarded to the
Department in late September 2008 and was tabled in Parliament on 10
October 2008.
Robben Island Museum
The RIM Council suspended three senior employees in January 2008
including the CEO and CFO pending the outcome of a forensic investigation
into possible mismanagement of the institution.
Consequently the Audit was delayed and the Audit report for 2007/08 only
issued on 26 September 2008.
In the light of the above-mentioned situation RIM has not been in a position to
submit their Annual Report for 2007/08 for tabling in Parliament.
Yours sincerely
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signed
Z PALLO JORDAN
MINISTER
(b)
Letter from the Minister of Communications dated 28 October 2008, to the
Speaker of the National Assembly explaining the delay in the tabling of the
Annual Reports of the Independent Complaints Directorate (ICASA) for
2007-2008.
In terms of section 65 of the Public Finance Management Act of 1999 as
amended, I hereby table the ICASA 2007/2008 Annual Report.
I wish to apologise for the late tabling of the ICASA 2007/08 Annual Report.
The reason for the delay was due to unforeseen internal procurement
processes within ICASA. This further impacted on the delay in the printing of
the annual report.
Yours sincerely
signed
IVY MATSEPE-CASABURRI, MP
MINISTER
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MONDAY, 3 NOVEMBER 2008
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Withdrawal of Bills
The Minister for Intelligence Services withdrew the following Bills on 30 October
2008:
(1)
Protection of Information Bill [B 28 - 2008] (National Assembly - sec 75).
(2)
Intelligence Services Amendment Bill [B 37 - 2008] (National Assembly sec 75).
(3)
National Strategic Intelligence Amendment Bill [B 38 – 2008] (National
Assembly - sec 75).
TABLINGS
18 NOVEMBER 2008
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National Assembly
The Speaker
1.
Submission of Private Member's Legislative Proposals
The following private member's legislative proposals were submitted to the Speaker
on 16 October 2008 in accordance with Rule 234:
(a)
Legislative proposal on the establishment of a feed-in tariff to finance the
use of renewable energy (Dr R Rabinowitz)
(b)
Legislative proposal on outlawing the use of transfats in food prepared for
sale to the public (Dr R Rabinowitz)
Referred to the Committee on Private Members’ Legislative Proposals and
Special Petitions for consideration and report.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
18 NOVEMBER 2008
1.
Page 204 of 292
Report of the Mediation Committee on the Mandating Procedures of Provinces
Bill [B8B – 2007] and [B8D – 2007] (National Council of Provinces – sec 76(2)),
dated 22 October 2008:
The Mediation Committee, having considered the Mandating Procedures of
Provinces Bill [B8B – 2007] and [B8D – 2007] (National Council of Provinces –
sec 76(2)), as well as the papers referred to it, reports that it has agreed to a new
version of the Bill [B8F – 2007].
WEDNESDAY, 5 NOVEMBER 2008
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Assent by President in respect of Bills
(1) Social Housing Bill [B 29D – 2007] – Act No 16 of 2008 (assented to and
signed by President on 1 November 2008).
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(2) Insurance Laws Amendment Bill [B 26B – 2008] – Act No 27 of 2008
(assented to and signed by President on 1 November 2008).
(3)
Jurisdiction of Regional Courts Amendment Bill [B 48D – 2007] – Act No
31 of 2008 (assented to and signed by President on 1 November 2008).
National Assembly
The Speaker
1.
Membership of Assembly
(a) The vacancy which occurred in the National Assembly owing to the resignation
of Mr T D H Ramphele with effect from 1 October 2006, has been filled with
effect from 31 October 2008 by the nomination of Ms T M A Gasebonwe.
(b) The vacancy which occurred in the National Assembly owing to the resignation
of Ms P G Mlambo-Ngcuka with effect from 25 September 2008, has been
filled with effect from 31 October 2008 by the nomination of Ms A C Mashishi.
(c) The vacancy which occurred in the National Assembly owing to the resignation
of Mr E G Pahad with effect from 25 September 2008, has been filled with
effect from 31 October 2008 by the nomination of Ms S B Moiloa-Nqodi.
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(d) The vacancy which occurred in the National Assembly owing to the resignation
of Mr R Kasrils with effect from 25 September 2008, has been filled with effect
from 31 October 2008 by the nomination of Mr F C Fankomo.
(e) The vacancy which occurred in the National Assembly owing to the resignation
of Mr F S Mufamadi with effect from 25 September 2008, has been filled with
effect from 31 October 2008 by the nomination of Ms F J Wright.
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Finance
(a) Proclamation No 42 published in Government Gazette No 31525 dated 20
October 2008: Commencement of the Diamond Export Levy Act, 2007 (Act
No 15 of 2007) and section 21 of the Diamond Export Levy (Administration)
Act, 2007 (Act No 14 of 2007).
(b) Government Notice No R1140 published in Government Gazette No 31529
dated 23 October 2008: Amendment of Schedule No 1 (No 1/1/1365), in
terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
18 NOVEMBER 2008
2.
Page 207 of 292
The Minister of Trade and Industry
(a) Government Notice No 1021 published in Government Gazette No 31443
dated 26 September 2008: Standards matters, in terms of the Standards Act,
1993 (Act No 29 of 1993).
Please Note: The above item replaces item 4(h) under Tablings of the
Announcements, Tablings and Committee Reports of 31 October 2008, as
published on page 2031.
3.
The Minister of Minerals and Energy
(a) Report of the Mine Health and Safety Inspectorate for 2007-2008 [RP 2612008].
National Assembly
1.
The Speaker
(a) Letter from the Minister of Water Affairs and Forestry, dated 29 October
2008, to the Speaker of the National Assembly, in terms of section 65(2)(a) of
the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the
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delay in the tabling of the Annual Report of the Inkomati Catchment
Management Agency for 2007-2008.
TABLING OF ANNUAL REPORT: INKOMATI CATCHMENT
MANAGEMENT AGENCY 2007/8
In terms of section 55(1)(d) of the Public Finance Management Act, 1999
(Act No 1 of 1999) [the Act], public entities must submit within five months
of the end of their financial year their Annual Report and Financial Statements
to the Executive Authority (in this case the Minister of Water Affairs and
Forestry), for scrutiny. Within one month after receipt of the report and
financial statements it must be submitted for tabling in Parliament in terms of
section 65(1)(a) of the Act.
The Inkomati Board submitted 500 Copies of the Annual Report and Financial
Statements within the prescribed period however; these copies were delivered
to an official of the Department who has subsequently left the Department,
resulting in the late approval process for the tabling.
This is the first catchment management agency established and protocols and
communication lines are still not ideal. These issues are being urgently
addressed by the Department.
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In terms of section 65(2)(a) of the mentioned Act, the Minister must, upon
failure to table the Annual Report and Financial Statements within six months
of the end of the financial year, table a written explanation in Parliament to
give reasons why the Report was not tabled. I trust that the reason for the
delay is clear and in future, the Department will ensure that the catchment
management agency will submit on time and follow communication protocols.
The Annual Report of Inkomati Catchment Management Agency Water will
mow be tabled in Parliament.
Yours sincerely
signed
MRS L B HENDRICKS MP
MINISTER OF WATER AFFAIRS AND FORESTRY
THURSDAY, 7 NOVEMBER 2008
TABLINGS
National Assembly
1.
The Speaker
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(1) Submission of Private Member's Legislative Proposals
The following private member's legislative proposals were submitted to the
Speaker on 20 June 2008 in accordance with Rule 234:
(a) Legislative proposal to repeal the Diocesan College Council,
Rondebosch Act, No 11 of 1891 (Cape of Good Hope) (P A Gerber)
(b) Legislative proposal to repeal the Natal Ecclesiastical Properties and
Trust Act, No 9 of 1910 (Natal) (P A Gerber)
Referred to the Committee on Private Members’ Legislative Proposals and
Special Petitions.
(2)
Papers tabled
(a)
Report and Financial Statements of the Special Investigating Unit (SIU)
for 2007-2008, including the Report of the Auditor-General on the
Financial Statements and Performance Information for 2007-2008 [RP
214-2008].
18 NOVEMBER 2008
(b)
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Letter from the Minister of Housing dated 30 September 2008, to the
Speaker of the National Assembly explaining the delay in the tabling of
the Annual Reports of Thubelisha Homes for 2007-2008.
NON-COMPLIANCE WITH SECTION 55(d) OF THE PUBLIC
FINANCE MANAGEMENT ACT (PFMA) WITH REGARD TO
THE ANNUAL REPORT OF THUBELISHA
Please find enclosed copy of a self-explanatory letter received from the
Accounting Officer of Thubelisha, which serves to inform you of the
non compliance with section 55(d) of the Public Finance Management
Act 1 of 1999 (PFMA) by Thubelisha, a public entity under the control
of the Department of Housing, for your noting.
The Accounting Officer is confirming that the Annual Report of
Thubelisha ca not be tabled before 30 September 2008 due to the noncompletion of its audit.
Yours sincerely
L N Sisulu, MP
Minister of Housing
TUESDAY, 11 NOVEMBER 2008
18 NOVEMBER 2008
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ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Bills passed by Houses – to be submitted to President for assent
(1)
Bills passed by National Council of Provinces on 11 November 2008:
(a) Consumer Protection Bill [B 19D – 2008] (National Council of
Provinces – sec 76(2)).
(b) National Conventional Arms Control Amendment Bill [B 45B – 2008]
(National Assembly – sec 75).
(c) Higher Education Amendment Bill [B 34 – 2008] (National Assembly
– sec 75).
National Assembly
The Speaker
18 NOVEMBER 2008
1.
Page 213 of 292
Message from National Council of Provinces to National Assembly in respect
of Bills passed by Council and returned to Assembly
(1)
Bills amended by National Council of Provinces and returned for concurrence
on 11 November 2008:
(a)
National Environmental Management Amendment Bill [B 36D –
2007] (National Assembly – sec 76(1)).
The Bill has been referred to the Portfolio Committee on
Environmental Affairs and Tourism of the National Assembly.
(b)
National Qualifications Framework Bill [B 33D – 2008] (National
Assembly – sec 76(1)).
(c)
General and Further Education and Training Quality Assurance
Amendment Bill [B 35D – 2008] (National Assembly – sec 76(1)).
The Bills have been referred to the Portfolio Committee on Education
of the National Assembly.
18 NOVEMBER 2008
(2)
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Bills, subject to proposed amendments, passed by National Council of
Provinces on 11 November 2008 and returned for consideration of Council’s
proposed amendments:
(a) Provision of Land and Assistance Amendment Bill [B 40B – 2008]
(National Assembly – sec 75) (for proposed amendments, see
Announcements, Tablings and Committee Reports, 22 October 2008, p
1975).
The Bill has been referred to the Portfolio Committee on Agriculture
and Land Affairs of the National Assembly for a report on the
amendments proposed by the Council.
(b) Mine Health and Safety Amendment Bill [B 54B – 2008] (National
Assembly – sec 75) (for proposed amendments, see Announcements,
Tablings and Committee Reports, 24 October 2008, p 2023).
(c) National Radioactive Waste Disposal Institute Bill [B 41B – 2008]
(National Assembly – sec 75) (introduced as National Radioactive
Waste Management Agency Bill [B 41 – 2008] (for proposed
amendments, see Announcements, Tablings and Committee Reports, 17
October 2008, p 1921).
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The Bills have been referred to the Portfolio Committee on Minerals
and Energy of the National Assembly for a report on the amendments
proposed by the Council.
COMMITTEE REPORTS
National Assembly
1. Twenty-Seventh Report of the Standing Committee on Public Accounts on the report
of the Auditor-General on Housing Subsidies to Municipal Employees and the
Administration of Low-Cost Housing Projects by certain Provincial Housing
Departments, dated 21 October 2008.
1. BACKGROUND
On the 31st of March 2008, a transversal performance audit at six provincial
housing departments was approved. The audit focused on municipal employees
who should not have received a subsidy or who should have received a reduced
subsidy as a result of their employment and income status.
The following provinces were covered by the audit:

Free State

Gauteng

KwaZulu-Natal
18 NOVEMBER 2008

Limpopo

Mpumalanga

Western Cape
Page 216 of 292
There were a number of criteria which needed to be met for eligibility. Those
included aspects such as marital status, residency, age, monthly household
income, whether previous benefits had been received from Government funds,
and whether it was a first time property owner.
The following shortcomings were identified with regard to the administration of
subsidy applications:
a. municipal employees misrepresented their income on the application forms
and supplied outdated information to the provincial housing departments;
b. the subsidy application forms were not always provided to the AuditorGeneral as the provincial housing departments did not have adequate
management measures which ensured the safe keeping of completed subsidy
application forms.
The following shortcomings relate to housing projects administration:
a. Numerous instances were identified where the ownership of houses was not
transferred to the beneficiaries although payments had been made to
developers for completing the top structures;
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b. Provincial housing departments could not provide the Auditor-General with
all the supporting documentation indicating payments made to developers for
the construction of low-cost houses. Therefore, the correctness of payments
made to developers could not always be verified;
c. Building defects were identified in 737 of the 970 houses inspected by the
audit team. The defects included, amongst others: walls and foundations were
severely cracked, gaps between the outside walls and the roofs, roofs of
houses which were leaking, general basic services were either not installed or
not connected to the bulk supply, etc.
The Committee recommends that provincial housing departments should
introduce improved measures to ensure that:
a. applicants submit adequate proof of income and updated payslips;
b. applicants submit supporting documentation regarding spouses and
dependents;
c. affidavits must accompany application forms;
d. there is collaboration with municipalities where applicants are employed with
a view of instituting disciplinary action against municipal employees who
made false affidavits, and legal action should be considered accordingly;
e. measures are instituted to ensure the safe keeping of completed subsidy
application forms;
f. where properties were allocated to individuals who should have been
disqualified as a result of their household income, consideration should be
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given to give those properties to qualifying applicants and that forensic
investigations into corruption and collusion are conducted;
g. contracts with developers include retention and penalty clauses to ensure that
contractors will forfeit money for bad workmanship;
h. disciplinary actions are taken against inspectors who certified on inspection
certificates that top structures had been successfully completed by developers
when the general condition of the houses was poor and unsatisfactory; and
i. there is integration of their database with that of SARS to verify eligibility
through PAYE information.
3.
CONCLUSION
The Committee expressed its dissatisfaction with the progress made by the Department of
Housing to correct deficiencies identified by the special audit. The Committee further
requests the National Department of Housing and the provincial housing departments to
ensure that corrective measures are implemented to rectify the shortcomings identified.
SCOPA should monitor the above recommendations on an ongoing basis and that regular
progress reports are submitted to the Committee, the first of which should be six months
after the adoption of the report by the National Assembly.
Report to be considered.
2. Twenty-Eighth Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor General on the Financial Statements of the
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Independent Complaints Directorate (ICD) for the year ending 31 March 2007, dated
21 October 2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditor-General on the financial
statements of the Independent Complaints Directorate (ICD) for the financial year
ending 31 March 2007.
For the 2006/07 financial year a qualified audit opinion was expressed by the
Auditor-General on the financial statements of the ICD. SCOPA, therefore, requests
the Accounting Officer to urgently address the following:
1. Fixed Assets
The Auditor-General reported the following shortcomings with regard to fixed assets:
a. The valuation of the assets amounting to R29 319 000, including adjustments of R7
093 000 could not be verified due to inadequate documentation;
b. assets were not always bar-coded; and
c. assets valued less than R5,000 (minor items) which were not supposed to be
included in the asset register were included.
The Committee recommends that the Accounting Officer ensures that:
a. an appropriate document management system is implemented to control all source
documentation and ensure that accurate reconciliation is done;
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b. assets are recorded and bar-coded;
c. there is compliance with the National Treasury prescript which requires that assets
with a value of less than R5000 should not be listed as capital assets in the financial
statements.
2. Vacancies
The Auditor-General reported that out of 535 approved positions only 231 were funded
for in the 2006-07 financial year. Due to critical management positions being vacant,
policies and procedures were not properly monitored to detect and prevent noncompliance.
The Committee recommends that the Accounting Officer reassesses the organisational
structure, and requests more funding from National Treasury to ensure that the entity
delivers on its mandate.
3. Leave Benefits
The following control weaknesses were identified:
a. leave forms were not properly filed, resulting in them not being properly captured
on PERSAL; and
b. leave forms were not always completed and approved before staff went on leave.
The Committee recommends that the Accounting Officer ensures compliance with human
resources policies and guidelines.
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4. Conclusion
The Committee noted with concern the internal controls as reported by the AuditorGeneral and requests that the issue of leadership and key vacant positions are addressed
as a matter of urgency to ensure the efficient operation of the entity. Reports on progress
made with regard to issues identified should be forwarded to the Committee within 60
days after the adoption of this report by the National Assembly.
Report to be considered.
3. Twenty-Ninth Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor General on the Financial Statements of the
Inkankala Water Board for the financial year ending 31 June 2007, dated 21 October
2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditor General on the
financial statements of the Inkankala Water Board for the financial year ending 31
June 2007.
For the 2006/07 financial year a qualified audit opinion was expressed by the
Auditors on the financial statements of the Board.
The Auditors reported the following shortcomings:
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a. there was no audit committee;
b. no internal audit was performed during the year under review;
c. essential controls such as segregation of duties was not complied with; and
d. there was non-compliance with the PFMA and Water Services Act.
The Committee recommends that the Accounting Officer urgently ensures that:
a. an audit committee and an internal audit section are put in place, and
b. there is compliance with relevant rules and regulations.
Conclusion
The Committee further requests the Department of Water Affairs and Forestry to
intervene in ensuring that there is stability within the Board and that an updated
report on all problems identified, are forwarded to the Committee within 60 days
after the adoption of this report by the National Assembly.
Report to be considered.
4.
Thirtieth Report of the Standing Committee on Public Accounts on the Annual Report
and the Report of the Auditor -General on the financial statements of the Magalies
Water Board for the financial year ending 31 June 2007, dated 21 October 2008
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The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditors on the financial
statements of the Magalies Water Board for the financial year ending 31 June 2007.
For the 2006/07 financial year a qualified audit opinion was expressed by the
Auditors on the financial statements of the Board.
The Auditor-General reported the following shortcomings:
a.
an internal audit section was not fully operational;
b.
monitoring and control within the Board did not function properly;
c.
a fraud prevention plan was developed but not implemented; and
d.
due to a lack of approved policies and procedures, transactions were not
supported with documentation.
The Committee therefore recommends that the Accounting Officer ensures that:
a.
the internal audit section of the Board is fully operational;
b.
monitoring controls are put in place, particularly with regard to reconciliations
and ensuring that building contracts and projects are managed effectively; and
c.
a fraud prevention policy is developed, and implemented, and that policies and
procedures are approved as a matter of urgency
Conclusion
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The Committee noted with concern the state of internal controls in the entity and
requests the Board to ensure that policies and procedures are developed, approved and
monitored to ensure compliance to applicable regulations. An updated report on the
progress regarding the issues raised, must be forwarded to the Committee within 60
days after the adoption of this report by the National Assembly.
Report to be considered.
5. Thirty-First Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor General on the Financial Statements of the
Namakwa Water Board for the financial year ending 31 June 2007, dated 21 October
2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditors on the financial
statements of the Namakwa Water Board for the financial year ending 31 June 2007.
For the 2006/07 financial year an unqualified audit opinion was expressed by the
Auditors on the financial statements of the Board.
The Auditors reported the following shortcomings:
a.
there was no audit committee;
b.
no internal audit was performed during the year under review;
c.
essential controls such as segregation of duties was not complied with;
d.
the Board does not have a CEO; and
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e.
Page 225 of 292
the Board will not be able to repay the loan from the Development Bank of
Southern Africa.
The Committee recommends that the Accounting Officer urgently ensures that:
a.
an Audit Committee and an internal audit section are put in place; and
b.
staff with suitable skills and experience are appointed.
Conclusion
The Committee requests that the Department of Water Affairs and Forestry intervene in
ensuring stability within the Board so that the Board can realise its mandate. The
Committee requests a report on the issues identified to be submitted within 60 days of the
adoption of this report by the National Assembly.
Report to be considered.
6. Thirty-Second Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor General on the financial statements of the
Bushbuckridge Water Board for the financial year ending 31 June 2007, dated 21
October 2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditors on the financial
statements of the Bushbuckridge Water Board for the financial year ending 31 June
2007.
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For the 2006/07 financial year a qualified audit opinion was expressed by the
Auditors on the financial statements of the Board.
The Auditors reported the following shortcomings:
a. no internal audit was performed during the year under review;
b. the municipalities were not paying the money owed to the Board;
c. forensic investigations concluded that an amount of R644 651 was irregularly
paid during the 2003/04 financial year, that amount has still not been recovered;
and
d. the internal control environment regarding safe keeping of records was inefficient.
The Committee recommends that the Accounting Officer urgently ensures that:
a. an internal audit section is put in place;
b. the Board, with the Department of Water Affairs and Forestry and all the role
players, address the matter of non payment of water by the municipality;
c. the Board reports to Parliament on progress with regard to the forensic
investigation within 60 days of the adoption this report by the National Assembly;
and
d. policies and procedures are documented and complied with.
Conclusion
The Committee requests that the Department of Water Affairs and Forestry to
intervenes and ensure that there is stability within the Board so that the Board can
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realise its mandate and that the Committee be provided with a progress report within
60 days of the adoption of this report by the National Assembly.
Report to be considered.
7. Thirty-Third Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor-General on the financial statements of the
Construction Education and Training Authority for the financial year ending 31
March 2007, dated 21 October 2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered
evidence on the Annual Report and the Report of the Auditor-General on the financial
statements of the Construction Education and Training Authority (CETA), for the
year ended 31 March 2007.
The Committee noted the disclaimer audit opinion expressed by the Auditor-General.
The Committee raised its concerns on the following matters and reports as follows:
1. Capacity and skill
The report highlighted that the Chief Financial Officer resigned in February 2006. A
new Chief Financial Officer was appointed in April 2006. The Chief Executive
Officer was suspended and a new Chief Executive Officer was appointed in March
2008.
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The Committee is concerned about the lack of skills and the significant control
weaknesses identified.
The Committee recommends that the Accounting Authority ensures that:
a) improvements of human resource control policies and procedures are
implemented and that recruited staff meet the required standards;
b) salaries of senior management staff should be market related;
c) the reasons for staff turnover are reviewed, and strategies are established and
implemented to eliminate the problems encountered;
d) the Chief Financial Officer and financial staff receive training; and
e) feedback is given to the Committee on the departmental action plan to address
the high vacancy rate.
2. Governance issues
The Committee noted the following shortcomings:
a) internal control policies and procedures were not developed for the National
Skills Fund;
b) there was lack of systems and controls due to various policies not developed;
c) there was no supporting documentation provided for commitments disclosed to
the value of R35 047 million for projects which have already expired, as well as
for contingent assets amounting to R12 982 million;
d) non compliance with applicable legislation; and
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e) double payments to service providers and other control weaknesses over
learnership disbursements and administration.
The Committee recommends that the Accounting Authority ensures that:
a) management establishes monitoring controls that prevent and detect errors on the
annual financial statements;
b) reconciliation of total commitments, as well as contingent assets, are provided to
the auditors, together with relevant supporting documentation;
c) the outcomes are evaluated and legal opinion with regards to rights and
obligations are obtained. Correction of prior year adjustments errors are made in
terms of Generally Recognised Accounting Practice;
d) mandatory grant payments are made quarterly;
e) evaluation of governance and risk environment as well as development and
implementation of policy to govern the environment are done; and
f) an update on forensic investigation regarding the suspension of the Chief
Executive Officer is provided.
The Committee requests the Accounting Officer to provide a progress report on all the
abovementioned issues within 60 days after the adoption of this report by the National
Assembly.
Report to be considered
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8. Thirty-Fourth Report of the Standing Committee on Public Accounts on the Annual
Report and the Report of the Auditor-General on the financial statements of the
Department of Health and Welfare Sector Education and Training Authority
(HWSETA) for the financial year ending 31 March 2007, dated 21 October 2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered evidence
on the Annual Report and the Report of the Auditor-General on the financial statements
of the Health and Welfare Sector Education and Training Authority (HWSETA), for the
year ended 31 March 2007.
The Committee noted the disclaimer audit opinion expressed by the Auditor-General.
However, the Committee raised its concerns on the following matters and reports as
follows:
Capacity and skill
The Committee noted the following:
a. the previous Chief Executive Officer and Chief Financial Officer were suspended
in June 2006 and both resigned in August 2006;
b. a new Chief Executive Officer was appointed in December 2006 but was
suspended in June 2007 and dismissed in July 2007;
c. no Chief Financial Officer appointment was made for the remainder of 2007;
d. the Chairperson of the Board resigned on 31 March 2007; and
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e. a new Chairperson of the Board resigned on 30 November 2007 and another
Chairperson was appointed on 24 January 2008.
The Committee recommends that the Accounting Authority ensures that:
a. all errors that occurred due to a lack of capacity and skills are corrected;
b. appropriate training is provided to all employees especially in finance; and
c. management institutes adequate monitoring controls to ensure that all transactions
are correctly recorded in the financial statements before they are submitted for
audit purposes.
Governance
The annual report highlighted the following:
a. an amount of R14 million irregular expenditure was disclosed for non-compliance
with the supply chain management and payments made in contravention of the
Skills Development Amendment (SDA) regulation on mandatory grants;
b. no reliance placed on the work of the internal audit committee as there was no
internal audit function for the first six months of the financial year;
c. representation in the Accounting Authority was not equal between employer and
employee organisations in accordance with the Skills Development Amendment
Act (SDA) 13(3)iii;
d. the human resource plan was not approved by the Executive;
e. non-compliance with applicable legislation; and
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f. significant reliance was placed on voluntarily contributed government levies of
R22 million, the absence of which would compromise the normal day-to-day
running expenses and cause the HWSETA to exceed the legal limit on
administrative expenditure.
The Committee recommends that the Accounting Authority ensures that:
a. management implements monitoring controls verifying that payments for
mandatory grants are made only if Work Place Skills Plan (WSP) and Annual
Training Report were submitted on time;
b. management considers the effect of government levies not being received and
develops a strategy to ensure that the entity remains a going concern;
c. HWSETA has an internal audit function and that it performs in terms of its
mandate throughout the year;
d. employees are charged with governance design and implementing controls to
ensure that the board members of HWSETA are at all times representative of
employees and employers on an equal basis;
e.
there is revision and/or drafting of appropriate policies and procedures; and
f. tenders and awards are advertised in the Government Tender Bulletin
The Committee requests the Accounting Officer to provide a progress report on all the
abovementioned issues within 60 days after the adoption of this report by the National
Assembly.
Report to be considered.
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9. Thirty-Fifth Report of the Standing Committee on Public Accounts on the Annual Report
and the Report of the Auditor-General on the financial statements of the Local
Government Sector Education Training Authority for the financial year ending 31 March
2007, dated 21 October 2008.
The Standing Committee on Public Accounts (SCOPA) heard and considered evidence on
the Annual Report and the Report of the Auditor-General on the financial statements of the
Local Government Sector Education and Training Authority (LGSETA), for the year ended
31 March 2007.
The Committee noted the qualified audit opinion expressed by the Auditor-General. The
Committee specifically raised concerns on the following matters and therefore reports as
follows:
1. Governance issues
The annual report highlighted the following:
a. ineffective internal audit function and audit committee;
b. no contracts for the Board (Accounting Authority) stating acceptance of their
responsibilities;
c. supply chain management framework has not been implemented and this issue
has been highlighted in the reports of the past three years;
d. non-compliance with applicable legislation;
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e. LGSETA invested in an endowment policy, however, the life insured by the
policy is that of the former financial manager who resigned in April 2007; and
f. objectives disclosed as per the strategic plan were not specific enough to address
the overall target as set by the National Skills Development Strategy.
The Committee recommends that the Accounting Authority ensures that:
a. .proper policies and procedures are implemented as a matter of urgency to ensure
control over investments;
b. an adequate supply chain management framework is approved by the Board;
c. quarterly internal audit reports are produced and implemented;
d. audit committee meets at least twice a year and ensures sufficient numbers attend to
obtain the necessary quorum;
e. LGSETA, in consultation with the Department of Labour, establishes specific SETA
targets that would result in achieving the overall targets; and
f. only performance objectives/information that are in line with the strategic plan are
approved.
2. Capacity and skills shortage
For the past two years, the position of the Chief Financial Officer had not been
established in LGSETA and its responsibilities had not been assigned as required by
Treasury Regulation.
18 NOVEMBER 2008
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The vacancy of a Chief Financial Officer and financial manager resulted to:
a. Financial statements submitted for audit purposes required significant material
adjustments.
b. Adequate explanations and documentation to support the provision of levy income
could not be provided.
c. Accounts receivable and accounts payable were being netted off in contravention of
Generally Recognised Accounting Practice.
d. Material irregular expenditure of R5,2 million relating to mandatory grants paid to
employers in contravention of the Skills Development Amendment(SDA) regulation.
e. There was non-compliance with applicable legislation.
The Committee recommends that the Accounting Authority ensures that:
a.
a Chief Financial Officer is appointed and delegated the responsibility;
b.
all errors that occurred due to lack of capacity and skills are corrected;
c.
appropriate training is provided to all employees especially in finance;
d. revised and/or drafts of appropriate policies and procedures in accordance with
accounting standards are made;
e. management implements monitoring controls to ensure that payments for mandatory
grants are made only if the Work Place Skills Plan (WSP) and Annual Training
Report (ATR) were submitted on time ; and
f. management implements monitoring controls to prevent irregular expenditure and
establish a system to record those that have been incurred.
18 NOVEMBER 2008
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The Committee requests the Accounting Officer to provide Parliament with a progress
report on all the abovementioned issues within 60 days after the adoption of this report
by the National Assembly.
Report to be considered
10.
Report of the Portfolio Committee on Trade and Industry on the Companies Bill
[B61B- 2008] (National Assembly – sec 75), dated 6 November 2008:
The Portfolio Committee on Trade and Industry, having considered the subject of
the Companies Bill [B61B – 2008] (National Assembly – sec 75), and the
proposed amendments of the National Council of Provinces (Announcements,
Tablings and Committee Reports, 17 October 2008, p 1918), reports the Bill with
amendments [B61C – 2008].
WEDNESDAY, 12 NOVEMBER 2008
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Bills passed by Houses – to be submitted to President for assent
18 NOVEMBER 2008
(1)
Page 237 of 292
Bill passed by National Council of Provinces on 12 November 2008:
(a)
National Railway Safety Regulator Amendment Bill [B 32B – 2008]
(National Assembly – sec 76(1)).
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)
Bills amended by National Council of Provinces and returned for concurrence
on 12 November 2008:
(a)
Tobacco Products Control Amendment Bill [B 7D – 2008] (National
Assembly – sec 76(1)).
The Bill has been referred to the Portfolio Committee on Health of the
National Assembly.
(b)
Second-Hand Goods Bill [B 2D – 2008] (National Assembly – sec
76(1)).
18 NOVEMBER 2008
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The Bill has been referred to the Portfolio Committee on Safety and
Security of the National Assembly.
(c)
Prevention of and Treatment for Substance Abuse Bill [B 12D –
2008] (National Assembly – sec 76(1)).
The Bill has been referred to the Portfolio Committee on Social
Development of the National Assembly.
(2)
Bill, subject to proposed amendments, passed by National Council of
Provinces on 12 November 2008 and returned for consideration of Council’s
proposed amendments:
(a)
Medicines and Related Substances Amendment Bill [B 44B – 2008]
(National Assembly – sec 75) (for proposed amendments, see
Announcements, Tablings and Committee Reports, 23 October 2008, p
2017).
The Bill has been referred to the Portfolio Committee on Health of the
National Assembly for a report on the amendments proposed by the
Council.
TABLINGS
18 NOVEMBER 2008
Page 239 of 292
National Assembly
The Speaker
(1)
Amending Draft Notice and Schedule submitted in terms of section 2(4) of
the Judges Remuneration and Conditions of Employment Act, 2001 (Act
No 47 of 2001), determining the rate at which salaries are payable to
Constitutional Court judges and judges annually, with effect from 1 April
2008, for approval by Parliament.
Referred to the Portfolio Committee on Justice and Constitutional
Development for consideration and report.
COMMITTEE REPORTS
National Assembly
CREDA INSERT REPORT - T081112e-insert1 – PAGES 2074-2081
THURSDAY, 13 NOVEMBER 2008
ANNOUNCEMENTS
18 NOVEMBER 2008
Page 240 of 292
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Bills passed by Houses—to be submitted to President for assent
(1)
Bills passed by National Council of Provinces on 13 November 2008:
(a)
Methodist Church of Southern Africa (Private) Act Repeal Bill
[B 68—2008] (National Assembly—sec 75).
(b)
Dutch Reformed Churches Union Act Repeal Bill [B 69—2008]
(National Assembly—sec 75).
(c)
The Apostolic Faith Mission of South Africa (Private) Act Repeal
Bill [B 71B ⟩
(d)
Adjustments Appropriation Bill [B 76—2008] (National
Assembly—sec 77).
(e)
Eskom Subordinated Loan Special Appropriation (2008/09—
2010/11 Financial Years) Bill [B 77—2008] (National Assembly—
sec 77).
(f)
Finance Bill [B 78—2008] (National Assembly—sec 77).
(g)
Government Employees Pension Fund (Condonation of
Interrupted Service) Bill [B 79—2008] (National Assembly—sec
77).
18 NOVEMBER 2008
(h)
Page 241 of 292
Revenue Laws Amendment Bill [B 80—2008] (National
Assembly—sec 77).
(i)
Revenue Laws Second Amendment Bill [B 81—2008] (National
Assembly—sec 75).
TABLINGS
National Assembly
1.
The Speaker
(a)
Reply by the Minister of Water Affairs and Forestry to recommendations
in the Report of the Portfolio Committee on Water Affairs and Forestry
(Hearings on the Strategic Plan and Budget Vote 34: Department of
Water Affairs and Forestry), as adopted by the House on 10 June 2008.
Referred to the Portfolio Committee on Water Affairs and Forestry.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
CREDA INSERT REPORTS - T081113e-insert1 – PAGES 2090-2135.
FRIDAY, 14 NOVEMBER 2008
18 NOVEMBER 2008
Page 242 of 292
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Assent by President in respect of Bills
(1) Correctional Services Amendment Bill [B 32F – 2007] – Act No 25 of 2008
(assented to and signed by President on 8 November 2008).
COMMITTEE REPORTS
National Assembly and National Council of Provinces
1.
REPORT TO THE JOINT COMMITTEE ON ETHICS AND MEMBERS’
INTERESTS ON THE FINDINGS OF THE AUDITOR GENERAL WITH
RESPECT TO THE AUDIT OF THE DISCLOSURE OF INTERESTS BY
MEMBERS
On 13 November 2008 the Joint Committee on Ethics and Members’ Interests met
at Room V227 Old Assembly Building to consider the report of the Auditor
General on the alleged non-disclosure by Members of Parliament.
18 NOVEMBER 2008
Page 243 of 292
Present
Chairperson: Landers, LT (ANC)
National Assembly
De Lille, P (ID)
Gxowa, NB (ANC)
Delport, JT (DA)
Njobe, MAA (ANC)
Dudley, C (ACDP)
Rajbally, S (MF)
Gumede, DM (ANC)
Seaton, SA (IFP)
National Council of Provinces
Dlulane, BN (ANC)
Oliphant, M (ANC)
Matlanyane, H (ANC)
Ralane, TS (ANC)
Moseki, AL (ANC)
Apologies
National Assembly
Baloyi MR (ANC)
Nwamita Shilubana TLP (ANC)
Radebe BA (ANC)
Ditshetelo, PHK (UCDP)
National Council of Provinces
Ntwanambi ND (ANC)
Tolo BJ (ANC)
18 NOVEMBER 2008
Page 244 of 292
Staff
Adhikarie Z, Mahomed F, Isaacs F
The Auditor General conducted an investigation on the completeness of the
Register of Members’ Interests as part of the 2007 financial audit of Parliament.
As a result they submitted details of fourteen Members who had allegedly not
disclosed.
In terms of the procedure, correspondence was sent to the Members on the 30 July
2008 to seek their responses to the allegations.
The report details the companies that the Members have allegedly not disclosed; it
outlines the Members responses, as well as the findings with recommendations as
to sanctions where appropriate.
In findings related to resignations from companies and close corporations, it was
noted that the process to effect resignations are not solely in the control of the
person concerned. The procedures at Company and Intellectual Property Rights
Organisation (CIPRO) require that signatures of other
partners/membership/directors are required to finalise resignations. The
consequence of this is that after an individual has resigned from a company or a
close corporation they are dependent on other parties to effect the change. It is for
this reason that Members have been given the benefit of the doubt, where they
indicated that they have resigned.
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In considering penalty, in respect of dormant companies it is noted that the
Committee made numerous efforts to assist Members to fully comply with the
disclosure requirements of the Code. Arrangements were made with CIPRO to
avail their services which allowed an individual Member to check his/her
disclosure details. About 300 Members participated in this process of checking.
Note 3 on the disclosure of interests form specifies that dormant companies must
be disclosed. It is further noted that the Joint Committee on Ethics and Members’
Interests have in numerous reports adopted by the National Assembly and the
National Council of Provinces, resolved that Members must disclose dormant
companies.
Abram, S Mr
It is alleged that the Member did not disclose the following:
Company Information
Closeprops 169 Registration number 2005/088057/23
Closeprops 170 Registration number 2005/088053/23
Ithute Tswelopele Solution Registration number 2000/0209072/07
Members’ response
Mr Abram responded that Closeprops 169 and 170 are property holding Close
Corporations in which he has 50% interests, these properties were disclosed.
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Mr Abram indicates that he had resigned from Ithute Tswelopele Solution and is
trying to establish why the resignation was not affected.
Findings
There is no breach of the Code with respect to Closeprops 169 and Closeprops
170 as these companies were disclosed in the land and property section of the
Register of Members Interests. The Member is advised that the full name of the
Close Corporation must be included in the Register.
With regard to Ithute Tswelopele that as he had resigned there is no breach of the
Code of Conduct. The Committee agreed that Mr Abram must ensure that the
resignation is rectified with CIPRO.
Bonhomme, TJ Mr
It is alleged that the Member did not disclose the following:
Company Information
Newlands Mashu Community Development Centre Registration number
1995/003138/08
Member’s response
In his response Mr Bonhomme indicated the Newlands Mashu Community
Development Centre is also known as the Kwa Mashu Newlands Permaculture
Centre which was disclosed.
18 NOVEMBER 2008
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Finding
There is no breach of the Code of Conduct for Members of Parliament as the
interest was disclosed.
Holomisa, GBH Mr
It is alleged that the Member did not disclose the following:
Company Information
Amalgum Investments Twenty
Registration number 2003/015387/07
Beat the Clock Investment
Registration number 2006/034220/07
Ebaleni Property Holdings
Registration number 2006/031986/07
Holomisa Investments
Registration number 2000/006258/23
Members’ response
In his response Mr Holomisa indicated that he had disclosed Amalgam
Investments and Holomisa Holdings in the category shares and financial interests.
Ebaleni Property Holdings and Beat the Clock Investments are new interests and
had been disclosed in his 2008 declaration.
Finding
There is no breach of the Code.
Maluleka, HP Mr
18 NOVEMBER 2008
Page 248 of 292
It is alleged that the Member did not disclose the following:
Company Information
Bay View Trading 20 Registration number 2006/177896/23
Members’ response
In his response Mr Maluleka indicated that the company is dormant and
apologized for the omission.
Finding
Mr Maluleka has not fully disclosed, as required and is in breach of the Code.
Sanction
It is noted that the company is dormant. In similar cases the Joint Committee
recommended that Members be issued with a fine.
The Committee therefore recommends that the penalty is a fine of R500 for the
non-disclosure of directorship in a company.
Mashiane, ML Ms
It is alleged that the Member did not disclose the following:
18 NOVEMBER 2008
Page 249 of 292
Company Information
Mabopane Community Services Organisation Registration number 1997/003926
Members’ response
Ms Mashiane in her response said that the Mabopane Community Service
Organisation is a not for profit organisation which need not be disclosed.
Accordingly there is no breach of the Code of Conduct for Members of
Parliament.
Matsomela, MJ Ms
It is alleged that the Member did not disclose the following:
Company Information
Jeids Five Marketing Registration number 1997/046999/23
Members’ response
In her response Ms Matsomela indicated that the company has been dormant since
inception and that she will follow up and would advise the Committee
accordingly.
Finding
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Ms Matsomela has not fully disclosed, and is in breach of the Code of Conduct
for Members of Parliament.
Sanction
It is noted that the company is dormant. In similar cases the Joint Committee
recommended that Members be issued with a fine.
The Committee therefore recommends that the penalty is a fine of R500 for the
non-disclosure of directorship in a company.
Mentor, VMP Ms
It is alleged that the Member did not disclose the following:
Company Information
Vakazi Holdings Registration number 2003/004864/06
Member’s response
Ms Mentor has indicated that she had resigned from the company six months after
she was appointed as director. She had formally resigned and asked the company
to remove her as director.
Finding
18 NOVEMBER 2008
Page 251 of 292
There is no breach as Ms Mentor had resigned, She must ensure that her
resignation is finalized at CIPRO.
Mlangeni, A Mr
It is alleged that the Member did not disclose the following:
Company Information
Centers’ for Community Development
Registration number 1993/000070/08
Havtoohav Investments
Registration number 2004/029269/07
Ndiza Empowerment Technology
Registration number 2000/017077/07
Orlyfunt Holdings
Registration number 2003/014960/07
Orlyfunt Strategic Investments
Registration number 2004/030159/07
Pacific Height Investments
Registration number 2006/039622/07
Inkwenkwezi Gold
Registration number 2004/002172/07
Comorant Investments 22
Registration number 2004/002172/07
Member’s response
In his response Mr Mlangeni indicated that the Centers’ for Community
Development was placed under provisional liquidation, the company was formed
to assist veterans of the struggle and is an article 21 company. He had derived no
benefit from it.
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Mr Mlangeni resigned from Ndiza and Crowned Comorant.
In a further response Mr Mlangeni apologised for his non-disclosure. He said that
Orlyfunt Strategic Investments and Orlyfunt Holdings are subsidiaries of Matodzi
which he had disclosed. He concedes that he should have disclosed the entities.
He said that he had agreed to the directorships in Havtohave Investments and
Inkwenkwezi Gold but these entities never “took off”.
Mr Mlangeni also submitted an affidavit from Mr TR Jones of Pacific Heights, in
which Mr Jones states that he had not informed Mr Mlangeni when the company
was registered.
Findings
There is no breach in respect of the Centers’’ for Community Development, as
this is a not for profit organisation and it need not be disclosed in terms of the
Code of Conduct..
In respect of Pacific Heights, the company was established in 2007, the period of
the audit was for the 2007 year, this together with the affidavit from Mr Jones
shows that this may have been an omission, Mr Mlangeni should be given the
benefit in this regard.
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Mr Mlangeni is in breach for the non-disclosure of Orlyfunt Strategic Investments
and Orlyfunt Holdings, Havtohave Investments and Inkwenkwezi Gold
Penalty
It is recommended that Mr Mlangeni be fined R500 per entity for the nondisclosure of directorships in Orlyfunt Strategic Investments and Orlyfunt
Holdings, Havtohave Investments and Inkwenkwezi Gold, a total fine of R2000
is recommended.
Ngcengwane, ND Ms
It is alleged that the Member did not disclose the following:
Company Information
Mfingwana Projects Enterprises
Registration number 2002/053090/23
African Pearl Trading 17
Registration number 2005/060146/23
MMDZ Trading Enterprises
Registration number 2006/208148/23
Pathway to Educational Achievement
Registration number 1998/013884/08
Vathisa Vuthela Technologies
Registration number 2005/060933/23
Just us Women Business Enterprise
Registration number 2003/067822/23
Mahlanga Business Enterprises
Registration number 2004/063705/23
Mountain Hill Property
Registration number 2002/097108/23
18 NOVEMBER 2008
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Member’s response
In her response Ms Ngcengwane indicated that:
Mfingwana is active but currently dormant.
She has no recall of African Pearl Trading and intends resigning.
MMDZ is an active enterprise.
She has resigned from Pathway for Educational Achievement
Vathisa Vuthela Technologies has not taken off and she has no contact with her
business partner.
Just us Women Business Enterprises – she has resigned from the company.
Mahlanga Business Enterprises, she has no recall of this company and would like
to resign from this company.
Mountain Hill Property, she intends resigning from this company.
Findings
The Committee gives Ms Ngcengwane the benefit of the doubt regarding her
resignation for Pathway for Education Achievement and Just Us Women Business
Enterprise and therefore finds that there is no breach in this regard. She must
ensure that the resignations are finalized at CIPRO.
In respect of non-disclosure of the following companies, Mfingwana Projects
Enterprises, Vathisa Vuthela Technologies, Mountain Hill Property and MMDZ
Trading Enterprises, the Committee finds that Ms Ngcengwane is in breach of the
Code of Conduct for the non disclosure of directorships.
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With respect to African Pearl Trading 17 and Mahlanga Business Enterprises, the
Registrar obtained the copies of the Close Corporations founding documents
which Ms Ngcengwane had signed.
Penalty
With respect of Mfingwana Projects Enterprises, Vathisa Vuthela Technologies,
Mahlanga Business Enterprises, Mountain Hill Property, African Pearl Trading,
the Committee notes that these companies are dormant and subsequently finds
that the Members must be fined R500 for each non disclosure, R2500 in for the
dormant companies.
With respect to MMDZ Trading Enterprises which is currently trading. It is noted
that the company was established in 2006 and that Ms Ngcengwane had disclosed
in 2008. The Committee recommends that Ms Ngcengwane be fined R1 000 for
the non disclosure of this company.
The total recommended penalty is R3500.
Ntuli, SB Mr
It is alleged that the Member did not disclose the following:
Company Information
18 NOVEMBER 2008
Page 256 of 292
Bensat Construction
Registration number 1998/023522/23
Modern Era Construction and Projects
Registration number 2006/001900/23
Siphiwe Montessori School
Registration number 1996/009654/08
Member’s response
In his response Mr Ntuli has indicated that his business partner in Bensat
Construction passed away a few years ago. The Company has been dormant
since. He indicated that he has no knowledge of Modern Era Construction
Projects. Mr Ntuli said that he resigned from Siphiwe Montessori School which is
now closed.
Finding
The Registrar obtained copies of the founding statement for Modern Era
Construction. Mr Ntuli was asked to verify his signature on the documents of
Modern Era Construction; he indicated verbally that the signature is not his, but
has not submitted a written response despite numerous requests from the Office of
the Registrar.
Mr Ntuli was afforded ample opportunity to respond, his failure to do so leaves
the Committee no choice as it must base its findings on the bases of the signatures
on the forms. The Committee finds that Mr Ntuli is in breach of the Code of
Conduct for the non-disclosure of directorships. in respect of Modern Era
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Constructio. He conceded that he was aware of Bensat Construction and is
therefore also in breach in this regard.
Penalty
As both these companies are dormant it is recommended that Mr Ntuli be fined
R500 per entity, a total fine of R1000.
Nzimade, LPM Mr
Company Information
CBR Education and training for
Registrationumber:2001/006621/08
Empowerment
Eyathu Sonke Drives Training
Registration number 2001/051404/23
Secretariat of the African Decade
Registration number 2003/027026/08
of persons with Disabilities
Member’s response
That CBR Education and Training for Empowerment are non-profit organizations.
Mr Nzimande indicated that Eyathu Sonke is dormant.
Findings
Mr Nzimande has breached the Code of Conduct for the non-disclosure of his
directorships in Eyathu Sonke Driving School.
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Secretariat of the African Decade of Persons with Disabilities and CBR Education
and Training for Empowerment are not for profit organizations, accordingly
Mr Nzimande is not in breach of this respect.
Penalty
Eyathu Sonke is dormant; the Committee recommended a fine of R500.
Ramotsamai, CMP Ms
Company Information
Full Swing Trading 530
Registration number 2005/028722/23
Member’s response
Ms Ramotsamai has indicated that she was under the impression that she had
resigned from this company.
Finding
Ms Ramotsamai should be given the benefit of the doubt with regard to her
resignation from the company. Ms Ramotsamai must ensure that her resignation
is finalized at CIPRO. Accordingly there is no breach of the Code of Conduct.
Smith, VG, Mr
Company Information
Nambiti Nextwave Consulting
Registration number 2003/012765/07
Euro Blitz 48
Registration number 2002/012907/07
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Hlanganani Investment
Registration number 2001/001423/07
Leshema Finance Management
Registration number 1994/041151/23
Services
Member’s response
In his response Mr Smith indicated that he had resigned from Nambiti Nextwave.
Euro Blitz trades as Qulemar (Pty) Ltd and has been disclosed. The record shows
that he has resigned from Hlanganani. Leshema Finance is a dormant company.
Findings
There is no breach with regard to Nambiti Nextwave, Euro Blitz and Hlanganani
Investment. In respect of Leshema Finance, Mr Smith is in breach of the Code.
Mr Smith must ensure that his resignation from Nambiti Nextwave is finalized.
Penalty
It is noted that Leshema Finance is dormant; it is recommended that he be fined
R500.
Woods, GG Mr
Company Information
Berg Street Three Properties
Registration number 1985/011149/23
Imbenge Group
Registration number 1997/001649/07
Imbenge Properties
Registration number 1997/001145/07
18 NOVEMBER 2008
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Member’s response
Mr Woods indicated that he was of the view that Berg Street Properties was
deregistered. He indicated that he has no recall of the Imbenge Group and
Imbenge Properties.
The Registrar obtained the founding documents for Imbenge Group and Imbenge
Properties from CIPRO these show that Mr Woods did not sign the founding
documents.
The Auditors listed on the founding documents indicated that they did not have
any documents for the companies.
Findings
It is recommended that Mr Woods be given the benefit of the doubt with regard to
Berg Street Properties. As there is not evidence to indicate that Mr Woods
consented to being appointed as a director for Imbenge Group and Imbenge
Properties.
Accordingly there is no breach of the Code of Conduct. Mr Woods must ensure
that he advises CIPRO and removes himself from the companies concerned.
The Committee adopted the report unanimously.
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Report to be considered.
2.
REPORT OF THE JOINT COMMITTEE ON ETHICS AND
MEMBERS’ INTERESTS ON THE COMPLAINT AGAINST
MINISTER BMN BALFOUR.
On 13 November 2008 the Joint Committee on Ethics and Members’
Interests met at room V227 Old Assembly Building to consider the complaint
against Minister BMN Balfour.
Present:
Mr L Landers Chairperson
National Assembly
De Lille, P
Gxowa, NB (ANC)
Delport, JT (DA)
Njobe, MAA (ANC)
Dudley, C (ACDP)
Rajbally, S (MF)
Gumede, DM (ANC)
Seaton, SA (IFP)
National Council of Provinces
18 NOVEMBER 2008
PAGE: 262 of 292
Dlulane, BN
Matlanyane, H
Moseki, AL
Oliphant, M
Ralane, TS
Apologies
National Assembly
Baloyi MR (ANC)
Nwamita Shilubana TLP (ANC)
Radebe BA (ANC)
Ditshetelo, PHK (UCDP)
National Council of Provinces
Ntwanambi ND (ANC)
Tolo BJ (ANC)
Staff
Adhikarie Z, Mahomed F, Isaacs F
The Joint Committee on Ethics and Members’ Interests received a complaint which
referred to a payment allegedly made by Kgwerano Financial Services for a
Volkswagen Touareg.5.0 V10. It is alleged that the Minister had failed to declare
payment by Kgwerano as required by the Code of Conduct for Members of Parliament
18 NOVEMBER 2008
PAGE: 263 of 292
The Code of Conduct for Members of Parliament stipulate in terms of paragraph 8(f)
and (g) which require that Members must disclose:
(f) Gifts and hospitality:
(i)
A description and the value and source of a gift with a value in excess of R1500;
(ii) a description and the value of gifts from a single source which
cumulatively exceed the value of R1500 in any calendar year; and
(iii) hospitality intended as a gift in kind.
(g) Benefits:
(i)
The nature and source of any other benefit of a material nature; and
(ii) the value of that benefit.
The Committee considered the information provided by:

The complainant,

The response by Minister Balfour which included documents such as the lease
agreement for the vehicle, statements of the account, his personal bank
statements, and a supporting letter from the bank,

The Department of Transport on the Public Office Bearers Motor Scheme,

a signed affidavit by a director of Kgwerano Financial Services,

The Committee also received a signed affidavit from Mr Litton on behalf of
Wesbank
In making its findings the Committee the Committee noted the signed affidavit from
Mr Litton of Wesbank Head of Risk, in which he confirms the following under oath:
18 NOVEMBER 2008
PAGE: 264 of 292
1. The Minister Balfour entered into a lease agreement with Kgwerano Asset
Finance a division of First Rand Bank Limited on 21 February 2006 for the
lease of a new Volkswagen Touareg 5.0 V10 TDI TIP.
2. The vehicle matched the details contained in the invoice from Northcliff
Volkswagen.
3. The original contract term of the vehicle was extended, and in terms of bank
procedures a new contract number was allocated.
4. He confirms that they did not finance two vehicles and the contracts relate to
the Volkswagen Touareg 5.0 V10.
5. Wesbank draws regular monthly instalments from Minister Balfour from his
personal bank account for payment of the motor vehicle.
6. In supplementary affidavit Mr Litton responds to the allegation of a settlement
letter, he explains that a settlement letter is sent out when one account is
closed. In this instance the first account was closed to reschedule the payments,
he confirms that there was no lump sum payment.
Findings
In light of the above the Committee found unanimously that the allegation that the
Minister received a gift in the form of a payment for his motor vehicle was not
substantiated, consequently there is no breach of the Code.
Report to be considered.
1.
Report of the Joint Budget Committee on the Medium-Term Budget Policy Statement, dated
12 November 2008.
18 NOVEMBER 2008
PAGE: 265 of 292
The Joint Budget Committee, having considered the Medium-Term Budget Policy Statement
(MTBPS) referred to it, reports as follows:
INTRODUCTION
The Medium-Term Budget Policy Statement (MTBPS) comes at a time of severe turbulence in the
global economy. This is the last MTBPS to be introduced in the Third Parliament. The economic
slowdown and projected decline in revenue may require changes in medium-term budget proposals.
This in turn will place greater importance on domestic policies, with the need to ensure that funds are
directed at those sectors and programmes which have the greatest impact on the lives of South
Africans.
The Committee once again agreed to focus on selected sectors and departments: those expected to be
prioritized over the medium-term or those that have experienced specific budgeting and performance
challenges. These are reflected on in the report. In preparing for the MTBPS, the Committee drew on a
range of submissions including government’s “Towards A Fifteen Year Review”, and reports of the
Auditor-General (AG) and the Financial and Fiscal Commission (FFC). The Human Science Research
Council (HSRC) and the Public Service Commission (PSC) were also invited to present on relevant
research and findings.
In keeping with Committee practices, Members of relevant portfolio and select committees were
invited to participate in proceedings. The participation of sector committees remains fundamental to
Parliament’s engagement with the MTBPS as they are able to bring detailed knowledge of
departmental policies and practices to deliberations.
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This report is divided into three sections. The first reflects on the broad medium-term priorities, the
second focuses on specific sectors and departments while the third sets out the Committee’s
recommendations.
BUDGET PRIORITIES AND THE DIVISION OF REVENUE
The downturn in the global economy and various domestic constraints are expected to curtail South
Africa’s economy initially, with growth anticipated to slow to around 3 per cent in 2009, before rising
to 4.3 per cent by 2011. Revisions to tax policy and a shift in the budget balance allow for the
expansion of the fiscus and support for government’s priorities despite the slowdown in growth.
The challenges in implementing concurrent functions have, at times, led to serious misalignment
between policies and resource allocations, and between allocations and outputs. The Committee
welcomes the proposed reforms in the local government equitable share formula, in order to take
greater account of fiscal constraints in poor municipalities.
The Committee supports the additional R170.8 billion proposed in the MTBPS for the Medium-Term
Expenditure Framework (MTEF) partially to offset the effects of higher inflation on salaries, social
grants, fuel and capital projects. There will also be a tranche of R60 billion made to Eskom.
The MTBPS reflects a continuing emphasis on employment creation and poverty alleviation. Specific
medium-term budget priorities, as presented, include:

Enhancing the quality of education;

Improving the provision of health care, particularly for the poor, to reduce infant, child and
maternal mortality rates;
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
Reducing the levels of crime and enhancing citizen safety;

Expanding the built environment to improve public transportation and meet universal access
targets in housing, water, electricity and sanitation; and

Decreasing rural poverty by taking steps to raise rural incomes and improve livelihoods by
extending access to land and support for emerging farmers.
PUBLIC SPENDING PRIORITIES
Enhancing the Quality of Education
Education is central to overcoming poverty and inequality. The MTBPS proposes additional funding
for the sector through an upward adjustment to the provincial equitable share, to accommodate the
extension of no-fee schools, and a further R4 billion to support the National School Nutritional
Programme (NSNP). Government has also indicated it will step up funding for school infrastructure
and enhance safety and security. A new conditional grant for the recapitalization of technical high
schools is also envisaged.
The Committee agrees that attention should be given to quality teacher training. Greater attention
should also be given to technical training to address the needs of the economy. Early Childhood
Development (ECD) and adult education are further priorities. A co-ordinated approach to ECD is
particularly significant as it provides an opportunity to reverse long-term trends in the sector. There is
also an urgent need to address the backlogs in school infrastructure, including overcrowding and
access to basic services such as water and sanitation, and to ensure that all funds allocated are
effectively and efficiently utilised.
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The Committee has taken note of challenges with specific education programmes, including disparities
with the implementation of the no-fees policy and the NSNP. The Department of Education (DoE)
should therefore develop and enforce specific guidelines to achieve better outcomes.
While progress has been recorded in expanding education opportunities, international comparisons
confirm that the sector is under-performing, and that allocated resources are not producing the desired
outcomes. As acknowledged in government’s Fifteen Year Review, “the quality of services leaves
much to be desired….This has much to do with management and service culture in the actual units
(schools and hospitals).”
Improving the Provision of Health Services
The health sector continues to face a number of acute challenges including access to primary health
care and the fight against HIV/AIDS and Tuberculosis. Progress in reducing maternal and infant
mortality has also been slow. As highlighted by the HSRC, around 60 per cent of maternal deaths are
due to treatable diseases. A severe shortage of health professionals and inadequate infrastructure has
compounded these difficulties. Funding for the health services currently accounts for 3.4 per cent of
GDP and 11.8 per cent of consolidated government expenditure.
The MTBPS indicates that further resources will be made available for phased-in salary adjustments
associated with the occupation-specific dispensation (OSD), as well as for new medicines and
treatments. Additions to conditional grants total R1.8 billion over the next three years, mostly to
support the HIV and AIDS grant and hospital revitalization. The Committee has taken account of
various proposed reforms, including the establishment of a National Health Insurance System (NHI),
which will require financial support and an effective implementation plan. The NHI will ensure that all
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citizens will have equitable access to health services and thereby promote socio-economic
development.
While further financial support will be required to reinforce health services, emphasis must also be
given to improving management, training and information systems within the sector. Salary
adjustments must be accompanied by improvements in overall working conditions. Steps must also be
taken to ensure that there is sufficient capacity to drive government’s HIV/AIDS programmes.
Deficiencies with procurement, waste management and response times for emergency services are
further concerns. All these matters will require dedicated attention. In overcoming these challenges,
the Committee believes there is a need to identify best practices in better performing health facilities
and replicate these throughout the sector.
Crime Prevention and Security
Departments in the justice and protection services have not worked together optimally to achieve their
objectives. The Committee therefore welcomes the decision to revamp the criminal justice system as
announced in 2008. This is expected to result in enhanced integration, co-operation and improved
performance, although progress with this initiative should be carefully monitored.
To alleviate shortcomings in the police services, especially over visible policing and investigative
capacity, an amount of R6.5 billion was allocated to Department of Safety and Security (DSS) over the
medium-term. The MTBPS suggests that further support will be directed at increasing the number of
specialized police personnel and improving information and management systems. Additional
resources and more personnel should correspond to a marked decrease in the crime rate.
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Delays in the adjudication process remain among the most serious constraints to the justice system.
According to the 2008 Estimates of National Expenditure (ENE), the aim is to reduce the backlog in
court cases by 5 per cent each year over the MTEF period. While the Committee has noted an
improvement in financial management within the DoJCD, with a reduced level of under-expenditure in
2007/08 compared to previous years, further attention is needed to ensure that allocated funds translate
into progressively improved performance. The linkages between the department’s strategic plan and
budget may require further refinement in this respect.
Overcrowding within the prison system has been a long-standing problem, which has negatively
affected the ability of the Department of Correctional Service (DCS) to rehabilitate offenders. To
alleviate overcrowding, the budget allocated an additional R2.9 billion to the DCS, mostly for the
construction of prisons. The Committee finds it unacceptable that the construction of prisons, as
previously announced in the State of the Nation Address in 2002, have yet to be completed.
Furthermore, the six prisons as stated in the MTBPS do not appear to be new projects. Clarity must be
provided by the Department.
Ultimately, the ability of the justice and protection services to achieve the desired outcomes depends,
to a large extent, on the level of inter-departmental co-ordination and information sharing. This
extends to departments such as Home Affairs, Transport and traffic enforcement in the case of events
such as the 2010 Soccer World Cup.
The Committee believes that the performance of the justice and protection services should be closely
scrutinized to ensure that Parliament is in a strong position to assess budget proposals against outputs
and outcomes, and ultimately ensure value-for-money.
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Expanding the Built Environment
Public infrastructure and capital investment are necessary for sustained growth, employment creation
and the hosting of a successful 2010 World Cup. Much of the investment is earmarked for the built
environment, specifically for low-cost housing, public transport, electrification programmes, health
facilities, schools, water and sanitation. The Committee welcomes the fact that capital expenditure is
set to reach 11 per cent growth by 2011/12. The MTBPS proposes additional funds for a number of
key grants and programmes including R4.1 billion for the infrastructure grant to provinces and R4.3
billion to municipalities. As previously emphasised, it is critical that funds earmarked for national
priorities such as bulk infrastructure are spent for their intended purposes.
The Committee supports the additional funds proposed in the MTBPS for housing and community
development although it notes that the Department of Housing (DoH) has acknowledged that these
resources will be insufficient to meet the target of eradicating informal settlements by 2014. As
highlighted by the Committee in previous reports and underlined in the MTBPS, shortcomings in
planning, capacity and intergovernmental co-ordination continue to hamper the delivery of quality
houses.
Additional resources must be complemented by measures to improve administrative efficiency and
reporting systems. All housing units should comply with the norms and standard as prescribed in the
Breaking New Ground Strategy. Innovation and alternative construction methods are also needed to
mitigate rising construction costs. The Committee has expressed concern that the DoH did not appear
to have made provision for an allocation for the Housing Development Agency.
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Efficient transport systems are pivotal for economic growth and the 2010 Soccer World Cup. The
Committee welcomes the recognition by government that access to integrated public transport should
be prioritized. Notwithstanding this, budgeting and organizational challenges such as vacancies, a
shortage of technical skills and deficiencies in monitoring and co-ordination continue to pose
challenges. The current allocation for taxi-recapitalization is insufficient and the Committee supports
the position that this should be reviewed by the Department of Transport (DoT). Government needs to
re-establish rail networks especially in rural areas. In addition, the process of shifting freight from road
to rail should be accelerated as this will reduce both the costs of road maintenance and improve
transport efficiency for rural and urban communities. The proposed allocation of funds in the MTBPS
to upgrade ports should assist in improving logistics.
The Committee concurs with the recommendations of the Financial and Fiscal Commission (FFC),
specifically that the process of classifying roads should be finalized, and that the location of the
responsibility for the provision of learner transport should be clarified. The Committee has also
identified serious deficiencies with the funding model for the Road Accident Fund (RAF). Urgent
reform is needed to stabilize the fund before 2010.
Clean water and sanitation are essential for socio-economic upliftment. While considerable progress
has been made in expanding water services and sanitation, the Committee believes that the
departments of Water Affairs and Forestry (DWAF) and Education should work towards halving the
number of schools and clinics without water. It is unacceptable that there is under-expenditure while
there are still more than a thousand schools without access to safe water. It is incumbent on DWAF
and other departments to ensure that no school or clinic is without toilets by the end of the first year of
the MTEF.
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Although the MTBPS has allocated an indicative R3.1 billion for bulk water infrastructure over the
next three years, the Committee’s injunction to the respective departments is that they ensure
integrated planning and co-ordination to ensure that these resources are effectively and efficiently used
as planned.
In addition, the Committee remains concerned about the maintenance of public facilities, particularly
schools, hospitals, police stations and correctional centres. Co-ordinated efforts are required between
the Department of Public Works (DPW) and other departments and entities to address the evident
challenges in this regard.
Rural Development and Agrarian Reform
Agrarian and land reform are integral to government’s rural development, poverty alleviation and food
security strategies. As food security is vital the Committee urges that departmental capacity be
increased and the vacancy rate be reduced. It is essential that resources are properly aligned and that
post-settlement support is significantly improved so that the productivity of the agricultural sector can
be increased. The Committee notes the new approach developed by the Department of Land Affairs
(DoLA) to achieve an affordable and sustainable land reform which includes the development of new
financial measures, human resource programmes and relevant products. The Committee urges the
department to accelerate land redistribution and reform.
Industrial Development and Employment Creation
Sustainable economic growth and industrial development is directly linked to a sustainable energy
policy and strategies and is essential for government to accelerate employment creation and reduce
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poverty by 2014 and beyond. While the Committee largely agrees with the various industrial policy
initiatives, the Committee urges government to ensure that such initiatives are balanced with the need
to promote competitiveness and protect existing industries such as textiles and clothing industries.
Government support must be carefully targeted and ultimately create sustainable industries.
The Committee welcomes the new phase of the Expanded Public Works Programme (EPWP) which is
intended to develop and transfer skills and create longer-term employment. The implementation of this
programme needs to be carefully monitored.
Accelerating skills development must be in alignment with the prescripts of a developmental state.
Together with the financial support for EPWP and SETAS, attention should be given to refining the
programmes, curricula and operations of these initiatives in order to meet market demands. The
Committee has taken account of progress with the Joint Initiative on Priority Skills Development
(JIPSA) and urges all social partners to invest in this initiative.
The State-Owned Enterprises (SOEs) are key partners in industrial development and the public
infrastructure build programme. Despite the expanding role of the SOEs in the economy, the
Committee maintains that there is a need to review these enterprises to enhance their contribution to
the developmental state and ensure that state funds are effectively utilized. In particular, efforts are
needed to ensure SOE projects are closely aligned with government’s priorities and that they are more
closely monitored by the various oversight authorities.
RECOMMENDATIONS
Based on its observations, the Committee recommends the following:
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1.
PAGE: 275 of 292
Co-ordinated and integrated planning is paramount. It is essential that national, provincial and
local development plans are closely aligned. Such measures must be implemented both
vertically, between the spheres of government, and horizontally, within and between clusters and
departments. To ensure co-ordinated planning, government should consider setting cross-cutting
performance indicators for the respective departments.
2.
Further steps should be taken to ensure that funds allocated through equitable shares and the
various grants are utilized for their intended purposes and fulfil national priorities.
3.
The Committee previously called on departments and entities to ensure there is a stronger
correlation between human resources plans and budgets, and to develop innovative recruitment
and mentorship programmes, as well as measures to safeguard against the loss of institutional
memory.
4.
Government should prioritize training for specialized, managerial and administrative skills in the
public service, for example, in education, health, trade and police services. In addition,
government should reopen specialized institutions like nursing and teaching colleges.
5.
Given the inadequate maintenance of many public facilities, government should enhance coordination and monitoring, especially between the Department of Public Works (DPW) and other
departments and entities.
6.
Further measures are required to address the evident weaknesses and lack of overall coordination in government procurement processes. For example, departments should procure
certain services from local communities.
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7.
PAGE: 276 of 292
Noting the existing agreement between the departments of Health and Defence to make
hospitals more accessible, the Committee recommends that this be expanded to provide
emergency services.
8
The Department of Housing should provide a detailed plan on how it intends to eradicate
informal settlements in specific areas.
9.
The deficiencies in the funding model for the Road Accident Fund (RAF) should be urgently
addressed. The Department of Transport should report to the Committee on measures taken and
the timetable for implementation.
10.
The departments of Water Affairs and Forestry, Education and Health should work together to
halve the number of schools and clinics without access to safe water and sanitation by the end
of the first year of the MTEF.
The Committee would like to thank the Public Service Commission and Human Science Research
Council for their contribution. Finally, the Committee would like to extend its appreciation to all those
who participated in the proceedings and contributed to the compilation of the report including the
research team and secretariat.
Report to be considered.
“Annexure”: Submissions and Presentations
18 NOVEMBER 2008
National Departments
Agriculture
Education
Health
Housing
Land Affairs
National Treasury
Transport
Water Affairs and Forestry
Research Organizations
Public Service Commission
Human Science Research Council
Other Submissions
J Laubscher: Sanlam
G Ballim: Standard Bank
D Roodt: Efficient Group
Federation of Unions of South Africa (FEDUSA)
People’s Budget Campaign
PAGE: 277 of 292
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National Assembly
1.
Report of the Portfolio Committee on Foreign Affairs on the study tour to Western Sahara and
Algeria, dated 20 August 2008.
The Portfolio Committee on Foreign Affairs having been invited to attend the commemoration of the
35th Anniversary of the launching of the armed struggle in Western Sahara on the 20 May 2008, and
proceeded to undertake a study tour to Algeria from 24-26 May 2008, reports as follows:
PURPOSE
The Portfolio Committee on Foreign Affairs undertook a study tour which coincided with the
Commemoration of the 35th Anniversary of the launching of the armed struggle against the Spanish
colonialism on the 20 May 2008.
Due to the briefing by the South African Ambassador it was necessary to go directly to Western
Sahara where celebrations were taking place. This trip took part of the delegation about 5 days and the
remaining two members of the delegation missed the flight to the destination. The celebration took
place at two places, the Smara and Tifariti settlement camps.
The Committee then proceeded to undertake a study tour to Algeria in order to meet with the Algerian
Parliamentary Committee on Foreign Affairs as well as the Speaker of the Algerian Parliament to
discuss and improve the inter-parliamentary relations between the two countries.
DELEGATION
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The delegation comprised of Dr Albertina Luthuli (leader of delegation), Mr Patrick Sibande, Mr
Sipho Siboza, Mr Joseph Seremane and Ms Dineo Martin (Committee Secretary)
FINDINGS
There was a high level composition of international representatives in attendance from several
countries, official delegations, civil society, non-governmental, pressure and interest groups mainly
from the Western Europe, these included: African Union (Commissioner of Social Affairs), Algerian,
Angola. Tanzania, Nigeria, Namibia, Mauritania, Ethiopia, Lesotho, Cuba, Bolivia, Venezuela, Iran,
Italy, Spain, Brazil and Palestinian Liberation Organisation (PLO).
Demonstrations at Smara refugee camp
On the 18 May 2008, the Saharawi Prime Minister Mr Abdelkader Taleb Oumar welcomed and
thanked the delegates for their continued support of the Saharawi people in their sacrifice to gain
freedom and independence. He indicated that they will continue to engage Morocco until they achieve
their independence.
The celebrations included the following participants:

Saharawi Union of Women

School Parades

Children of Sarahawi – young and older

Military Parades
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The themes emanating from all the activities shown clearly the determination to fight for freedom and
independence.
Address by H.E. Mr Mohamed Abdelaziz, Secretary-General of the Frente POLISARIO and
President of the Saharawi Republic
The President began his speech by emphasising that the occasion was to commemorate the launch of a
heroic and long struggle for liberation by the Saharawi people, and that the event was taking place in
one of the liberated zones of the Saharawi Republic. He recalled the heroic resistance of the Zemla
uprising of 1970 which gave birth to the inevitable launch of the struggle for self-determination under
the Frente POLISARIO on 20th May 1973.
The President stated that the struggle for self-determination of the Saharawi people continued despite
persistent attempts by the Government of Morocco, to intimidate abuse and undermine ordinary
Saharawi people through torture, detention and forced disappearances. In spite of such harsh treatment,
the resolve and determination of the Saharawi people has remained steadfast throughout the years.
Naming Morocco as the occupying power, President Abdelaziz used the occasion to among other
things, called upon the international community to intervene, and urge Morocco to release Saharawi
prisoners of conscience, account for more than 500 civilians that have disappeared and the release of
150 prisoners of war. Concomitant to this, the President called upon the international community, to
mandate MINURSO to protect, observe and report on human rights violations in Western Sahara. He
criticised the continued existence of the “Moroccan Wall”, which stands at 2500 kilometres in length,
which not only divides the Saharawi people but results in huge human suffering due to landmines and
anti-personnel mines planted along the wall.
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The President’s speech re-iterated that the dispute over Western Sahara is a conflict between
colonialism, injustice and tyranny, pursued by Morocco, on the one hand, and the international legality
and respect for the principles of the United Nations (UN) Charter on the other hand. As such, the UN
and the rest of the international community, is duty-bound to defend international legality and support
the cause of the Saharawi people in their pursuit for self-determination and to denounce colonialism
that still persist into the 21st century. Historically, with the adoption of the UN-OAU Settlement Plan,
the Frente POLISARIO has spared no effort in the struggle for a just and lasting solution in Western
Sahara.
Accordingly, the President used the occasion to renew Frente POLISARIO’s commitment towards
finding a solution based on the respect for the principles of the UN Charter and any counter attempt,
which seeks to override the legitimate rights of the Saharawi people, will not succeed. While
remaining critical of the positions of Morocco that undermine the rights of the Saharawi people, he
commended the positive stances taken by some Moroccan parties that respect these rights and further
urged the Moroccan people to co-operate with the Frente POLISARIO in order to find mutual solution
to the crisis on the basis of international law.
While expressing his gratitude for the support from the Government of Spain, the President used the
occasion to remind Spain of the need to take clear positions in support of self-determination in line
with its moral and legal responsibility towards the Saharawi people. The President expressed his
gratitude for the support and solidarity that the Frente POLISARIO has enjoyed from African
Governments such as Algeria and South Africa as well as Latin American Governments such as Cuba,
Venezuela and Brazil. He also appreciated the solidarity expressed by liberation movements from
Africa, among others, the African National Congress (ANC), the Chama Cha Mapindouzi (CCM) of
Tanzania and the South-West African People’s Organisation (SWAPO) of Namibia. He regarded the
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continued supports of these fraternal organisations and Governments as confirmation to the statement
made by the South African President H.E. Thabo Mbeki that ”the freedom of Africa will be incomplete
until Western Sahara has been decolonised”.
Destruction of landmines
Western Sahara is considered to be one of the most heavily land –mine affected regions in the world.
After years of colonial and post-colonial conflict, land-mines and unexploded ordnance (UXO) litter
the landscape.
Estimates on the number of mines in Western Sahara range from 200,000 to ten million. The exact
number and distribution of explosive remnants in the territory is not known, making the determination
of resources needed to address the problem a matter of guess work.
On the 21 May 2008, the delegates witnessed the destruction of 2000 landmines and other explosive
remnants of war (including cluster munitions). The Saharawi Arab Democratic Republic (SADR) in
conjunction with Landmine Action, a United Kingdom based non-governmental organisation executed
this task.
Since 2005, the SADR and the Landmine Action have been responsible for humanitarian de-mining
activities on the east of the berm. Funding had been received from the government of the Federal
Republic of Germany and the Princess of Wales Trust.
Messages of support from the Foreign Delegates
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Messages of support and solidarity from foreign delegates, included the following:
We resolve that:

the respect for the principle of the decolonisation and legitimate right of self-determination of
the Saharawi Arab Democratic Republic, with the inclusion of the option of independence;

the centrality of the principle of international legality in the resolution of the conflict in the
Western Sahara;

the respect of human rights, especially in the occupied areas of the SADR as recommended by
the UN High Commissioner for Human Rights;

the immediate removal of the ‘Wall of Shame’ separating the Saharawi territory, which
contains millions of landmines, including antipersonnel mines;

pressure should be brought on Spain to fulfil its historical, judicial and moral responsibility
with respect to its former colony of Western Sahara and

call on the international community (especially the United Nations) to fulfil its obligations with
regard to the inalienable right to self-determination and decolonisation of the Western Sahara.
South Africa reaffirmed its support for the U N Resolutions 1754 and 1783 calling on parties to
negotiate with the view of reaching a solution that guarantees the Saharawi people, their inalienable
rights and self-determination. The U S and France should help in speeding up the process of the
Western Sahara.
The occasion was concluded by the final declaration calling on the international community, especially
U N, to fulfill its obligations with regard to the peoples inalienable rights, self determination and the
decolonization of the Western Sahara.
Prime Minister address to South African delegates
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The Prime Minister of the Saharawi Republic, Mr Abdelkader Taleb Omar met with the delegation
from South Africa. Prime Minister Omar thanked the support received from the delegates of South
Africa and promise that Saharawi government would never forget the support and courage given by
the government and people of South Africa.
He observed that the POLISARIO Front had always been inspired by the heroic struggle for liberation
of South Africa, under the leadership of the African National Congress, the oldest Liberation
Movement on the Continent, led by great leaders such as President Nelson Mandela and the late Oliver
Tambo.
He further stated that when the time comes for Africa to receive a permanent seat in the UN Security
Council, it should certainly be offered to South Africa, given its commitment to peace, security,
stability and development of the Continent. The POLISARIO Front and Saharawi people will surely
support such decision.
The Prime Minister extended his warm regards to President Thabo Mbeki and Foreign Minister
Nkosazana Dlamini-Zuma.
Meeting with H.E Mr Maqethuka, South African Ambassador to Algeria
On the 24th May the delegation met with the South African Ambassador to Algeria, Mr Maqethuka.
The Ambassador outlined the programmes that the South African government will be assisting the
Saharawi with:

South Africa will sponsor a programme to assist with unplugging of landmines. Donations will
be in the form of vehicles;
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
South African Embassy was in touch with the Saharawi people from time to time;

South Africa is treating Saharawi embassy as a separate mission from Algeria and

There is a budget to deal with issues of health and sport.
On Algeria, the Ambassador indicated that there were good political and economic relations between
the two countries.
Meeting with the Foreign Affairs Committee and the Speaker of Parliament in Algeria
On the 28th May the delegation met with Members of the Algerian Portfolio Committee on Foreign
Affairs. It was indicated that the Algerian government regards South Africa as its brother state. The
same Committee previously met with Ms Baleka Mbete, Speaker of South African Parliament and Mr
Job Sithole, Chairperson of the Portfolio Committee on Foreign Affairs in November 2007.
It was said that South Africa and Algeria have a good working relationship but that it can be developed
more at a multilateral level. As the founding members of NEPAD, both countries have contributed
positively towards the independence of the Continent.
There were women who fought for liberation in Algeria but they were still in prisons. It was
acknowledged that, although South African democracy was still young, there was a large
representation of women in Parliament compared to Algeria.
In responding to concerns whether there was any policy or working plan on illegal immigrants, it was
emphasised that South Africa was against any country that used terror to attack other countries. South
Africa was somehow still battling with the definition of terrorism. South Africa does not promote
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housing people in refugee camps whether they were in the country legally or illegally. They all get
integrated into the South African society.
The Speaker of the Algerian Parliament indicated that the relations between the two Parliaments were
growing, taking into cognisance the visits that have already taken place and those that were on the
way.
Conclusion
The South African delegation had the privilege of meeting the President, Prime Minister, Foreign
Affairs Committee and the Speaker of both Algeria and Western Sahara. The culmination of these
courtesy calls took the form of expression of appreciation to the presence of the South African
delegation and the continuance of the support which South Africa was giving them. The Saharawi
people further encouraged South Africa to continue spearheading the solidarity critically sought by
them in their struggle for freedom and independence.
Observations

The Saharawi people under the leadership of the POLISARIO Front are prepared to resort to
the armed struggle if the current negotiations do not yield their desired outcome of
decolonisation and self-determination that will lead to independence.

The younger generation that grew up during the cease-fire are increasingly becoming
disillusioned and impatient. They are prepared to take up arms any given moment. Such
position is largely influenced by the resolution of the 2007 POLISARIO Front Conference,
where the leadership was tasked to consider the merits of resuming the armed struggle
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
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There exists a need for the popularisation of the struggle for decolonisation of Western Sahara
in the Continent and beyond.

There was almost a total absence of the media from Africa in the South of Sahara, including
South Africa, which has an international television channel dedicated to Africa news.

Women and children were seen spending their days without doing anything constructive.

There were no sporting or entertaining facilities and Members observed boredom, especially
amongst the children.

Camp situation has taken effect on all the people in the camps and it made the situation very
painful to observe.

Men were either truckers or in the army.

International community were also assisting with donations.

The delay in negotiations took too long and failure in reaching an agreement is frustrating.

There were no proper sanitary facilities.

There were many health problems like dust allergies and teeth infections.

Health facilities were not easily accessible.

There were those who feel that talks with Morocco were not taking them anywhere.

Despite all hardships, the Saharawi people both young and old, men and women remain warm,
dignified and committed to their cause, as their slogan proclaims: ‘Freedom or Martyrdom’.
Recommendations
The Committee recommends that:

pressure should be put on Spain to discharge its duties of ensuring the smooth process of
decolonisation of the Western Sahara;

both South Africa and Algeria should work together to resolve the problems in the Western
Sahara;
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
trade links between South Africa, Western Sahara and Algeria should be strengthened;

Parliamentary relations in the form of visits should be encouraged between South Africa,
Western Sahara and Algeria;

South African Missions in the European Union, especially Madrid, Paris, Brussels, the Hague
and Rome should enhance the lobby for the decolonisation of the Western Sahara and work
closely with the civil society/social movements that are sympathetic to the struggle of the
POLISARIO Front;

there is a need to engage the South African Broadcasting Corporation (SABC) to ensure that its
reporters cover the issues concerning the Western Sahara, at a given interval, including those
journalists posted abroad; and

the forthcoming Summit of the African Diaspora, to be held in South Africa, should be utilised
to invigorate and consolidate the support of the progressive international solidarity movement,
social movements and the civil society organisations for the just cause of the Saharawi people.
Report to be considered.
2.
Report of the Portfolio Committee on Public Service and Administration on the nomination of
National Public Service Commissioners, dated 14 November 2008:
Parliament is obligated, in terms of Section 4(1) of the Public Service Commission Act, 1997 (Act No.
46 of 1997) to nominate National Commissioners to serve on the Public Service Commission. The
nomination of the Public Service Commissioners was referred to the Portfolio Committee on Public
Service and Administration, on the 29 August 2008, for consideration and report.
18 NOVEMBER 2008
PAGE: 289 of 292
The Committee advertised for three positions of National Public Service Commissioners on the 05
September 2008. The Committee received 218 applications. A multi-party sub-committee of the
Committee was elected to conduct the short-listing and interviews for the Committee. The following
candidates were short-listed and interviewed on the 12th and 13th November 2008:
1. Mr. G P Bogatsu,
2. Mr. V Clapper
3. Mr. M J Malahlela
4. Ms. N J Mxakato-Diseko
5. Ms. S S Nkosi
6. Ms. M J Ralefatane
7. Ms. S Rohan
8. Mr. M Solari
9. Ms. R Udit
10. Mr. D Van Wyk
The sub-committee gave due consideration to candidates’ qualifications, experience, gender, disability,
age and race during the process. The sub-committee reported its findings to the Portfolio Committee.
The Portfolio Committee deliberated and consequently recommends the following persons for
appointment as National Public Service Commissioners:
1. Ms. N J Mxakato-Diseko
2. Mr. M J Malahlela
3. Ms. S S Nkosi
18 NOVEMBER 2008
PAGE: 290 of 292
In the event that any of the above candidates is not available to serve on the Commission; the
Committee recommends that the following candidates, in the order that they appear below, be
considered for appointment:
1. Mr. G P Bogatsu
2. Mr. D Van Wyk
Report to be considered.
MONDAY, 17 NOVEMBER 2008
COMMITTEE REPORTS
National Assembly
CREDA INSERT REPORTS - TO81117e-insert1 – PAGES 2175-2189.
TUESDAY, 18 NOVEMBER 2008
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1.
Bills passed by Houses – to be submitted to President for assent
18 NOVEMBER 2008
(1)
PAGE: 291 of 292
Bill passed by National Assembly on 18 November 2008:
(a) Intellectual Property Rights from Publicly Financed Research and
Development Bill [B 46D – 2008] (National Assembly – sec 75).
TABLINGS
National Assembly and National Council of Provinces
1.
The Minister of Arts and Culture
(a)
Report and Financial Statements of Vote 13 – Department of Arts and Culture for 20072008, including the Report of the Auditor-General on the Financial Statements and
Performance Information of Vote 13 for 2007-2008.
2.
The Minister of Water Affairs and Forestry
(a)
Report and Financial Statements of Amatola Water for the year ended 30 June 2008,
including the Report of the Independent Auditors on the Financial Statements for the
year ended 30 June 2008.
(b)
Report and Financial Statements of Umgeni Water for the year ended 30 June 2008,
including the Report of the Independent Auditors on the Financial Statements for the
year ended 30 June 2008.
National Assembly
18 NOVEMBER 2008
1.
PAGE: 292 of 292
The Speaker
(a)
Report of the Public Service Commission (PSC) on the Monitoring Fact Sheet on
Complaints Lodged with the Public Service Commission during the 2007/2008
Financial Year – July 2008 [RP 197-2008].
(b)
Report of the Public Service Commission (PSC) on the Founding Document on
Organisational Performance Assessment in the Public Service – September 2008 [RP
263-2008].
(c)
Report of the Public Service Commission (PSC) on the Consolidated Report on
Inspection of Service Delivery Sites: Department of Education - September 2008 [RP
174-2008].
(d)
First Report of the Rules Committee of the National Assembly, 2008:
CREDA INSERT - T081118e-insert1 – PAGES 2206-2211
COMMITTEE REPORTS
National Assembly
CREDA INSERT REPORTS - T081118e-insert2 – PAGES 2213-2260.