The SPEAKER: Hon members, I wish to announce that a vacancy which occurred owing to the passing away of Ms A M Rantsolase has been filled by the nomination of Mr K A Moloto, with effect from 9 November 2010. 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 National Assembly. Hon Chief Whip of the Majority Party, are your members ready?
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Speaker, they are. They are outside waiting to be sworn in.
The SPEAKER: Will two members please accompany the member into the Chamber [Applause.?
Mr Moloto, accompanied by Ms N D Ngcengwane and Ms M L Dunjwa, made and subscribed the oath, and took his seat.
debates the findings of the latest HIV antenatal clinic survey; and comes up with recommendations on how to further reduce the transmission of HIV from HIV-positive mothers to their babies.
That the House debates the consequences to Johannesburg of the failure of government to deal adequately and robustly with the rising acidic water table in the city.
That the House debates the extension of service hours for clinics and community health centres.
That the House debates the consolidated report by the Auditor-General of national and public entities for the period 2009-10, and particularly the many accounting irregularities by public entities contained therein.
That the House debates ways to inform and educate the public, particularly the transport industry, about the rationale behind the pending implementation of the new traffic demerit system that many are opposing.
That the House debates the issues that should inform the much-needed development of a comprehensive migration policy for South Africa.
That this House debates the future of informal settlements in South Africa with a view to finding solutions to the problem of housing the ever-increasing number of people migrating to our cities and towns.
That the House debates the integration of community development workers into the public sector.
That the House debates the incidence of yet another R380 million in irregular and fruitless expenditure incurred by the Road Traffic Management Corporation, RTMC, and the failure of government to deal decisively with errant officials.
Dat die Huis 'n debat voer oor die regering se botsende benadering ten opsigte van die Infraco Company wat deur die regering as openbare onderneming in die lewe geroep is om telekommunikasiedienste aan die gewone verbruiker en die platteland te lewer, maar terselfde tyd, 'n kabinetsbesluit geneem het om nie Infraco Company te lisensieer om hierdie dienste te kan lewer nie.
That the House debates government's conflicting approach with regard to the Infraco Company which has been established by government as a public enterprise to deliver telecommunication services to the ordinary user and rural areas, whilst at the same time taking a cabinet decision not to give the Infraco Company a license to be able to offer these services.
n debat voer oor die korrelbedkernkragreaktor, die PBNR, as openbare onderneming se vermoë om tot Suid-Afrika se energiebehoeftes by te dra, ten spyte daarvan dat die belastingbetaler reeds miljarde rande tot die projek bygedra het; en die uitfasering of die privatisering van hierdie openbare onderneming in sy debatvoering oorweeg.
debates the ability of the pebble bed modular reactor, PBMR, as a public enterprise, to contribute towards South Africa's energy needs, in spite of the taxpayer already having contributed billions of rand to the project; and considers the phasing out or the privatisation of this public enterprise during its debate.
That the House debates the alarming observation by Chief Justice Ngcobo that fundamental flaws exist in the dispensing of justice and reserved judgements in this country.
congratulates William Kentridge on winning this prestigious award and for flying the South African flag high.
wishes all South African Indians a memorable celebration of this event.
calls on all South Africans to practise tolerance and to live together in peace with one another.
congratulates the University of Stellenbosch for the success of its Hope Project, and its contribution to this continental agreement.
welcomes this initiative and believes that once again this is the indication of the confidence the international community has in South Africa as well as in our ability to host big events successfully as shown by our hosting of the FIFA Soccer World Cup.
congratulates Speaker Makinda warmly and encourages her to allow opposition parties to play their role effectively, to give support for meaningful debates on a new constitution and to ensure that the executive is fully accountable in line with modern democratic practices.
in terms of section 2(1) of the Remuneration of Public Office Bearers Act, 1998 (Act No 20 of 1998), and having due regard to the criteria listed in that subsection, determines the salary payable to the President of the Republic of South Africa at two million, three hundred and sixty seven thousand four hundred and sixty six rand (R2,367,466) per annum with effect from 1 April 2010; and in terms of section 2(1) of the said Act, determines the amount of one hundred and twenty thousand rand (R120 000) per annum as that portion of the remuneration of the President to which section 8(1)(d) of the Income Tax Act, 1962, shall apply.
That the House extends the deadline by which the Ad Hoc Committee on Protection of Information Legislation has to report to 28 January 2011.
That the House extends the deadline by which the Ad Hoc Committee on the Commission for Gender Equality (CGE) Forensic Investigation has to report to 28 January 2011.
That the House, subject to the concurrence of the National Council of Provinces, extends the deadline by which the Joint Ad Hoc Committee on the Code of Judicial Conduct and Regulations on Judge's Disclosure of Registrable Interests has to report to 28 January 2011.
Mr D M GUMEDE (ANC): Hon Speaker, the ANC together with all members of the Portfolio Committee on Tourism, notes with shock the senseless killing of a British tourist, Anni Dewani, while on honeymoon with her husband in Cape Town. They were hijacked while taking a drive through Gugulethu to experience the night life in a South African township. We express our sincere condolences to the family and friends of the victim and wish her husband strength and comfort during this very difficult period.
During the World Cup South Africa won the hearts of the world as a destination and as a nation. We cannot allow these animals to destroy this image. We thus urge the people of Gugulethu and the surrounding areas, in partnership with the police, to triple their actions to ensure that these scoundrels are speedily apprehended.
We further appeal to the tourism industry and the public to be vigilant in regard to tourism safety, and to caution visitors not to enter unfamiliar areas, especially at night. Thank you. [Applause.
The LEADER OF THE OPPOSITION (DA): Hon Speaker, yesterday I sent a request to the Speaker calling for an urgent debate to be held in the House today, about the government's plans to make a R20 billion cash injection into the failing parastatal Eskom. This allocation would be made available to Eskom in addition to its recently doubled guaranteed framework of R350 billion. Notwithstanding the Speaker's response declining the request, on the grounds that it did not qualify as a matter of urgent national importance, the Cabinet's vacillation on the source of this additional funding indicates the deep divisions in the executive.
That this announcement was made without prior public consultation and, seemingly, without a detailed financial plan and endorsement by the Minister of Finance by virtue of its not traversing the prescribed Treasury protocols, indicates a blatant disregard for transparency and accountability by the Zuma administration. This is a clear attempt by the ANC government to undermine the basic principles on which our democracy is based.
The DA regards this as a matter of urgent national importance. While the DA absolutely supports the need to secure South Africa's future energy suppliers, Parliament and the public have the right to know why Eskom requires this additional allocation of state funds, and how government plans to finance its R20 billion commitment, especially given that just three months ago the government could not find R4 billion to fund an operational budgetary requirement to meet the public servants' pay rise demands.
The President must demonstrate that his administration is committed to accountability, and make a full disclosure of how the government plans to fund the proposed cash injection into Eskom, and what the exact opportunity cost of this intervention will be to the people of South Africa.
Mr M G P LEKOTA (COPE): Speaker, Cope welcomes with optimism the decision by Britain's auditing watchdog to name those South Africans who took bribes of, reportedly, R1 billion in the arms deal. Today many innocent South Africans walk around with the stigma of association with the Defence acquisition our country entered into. Suspicions that they are perhaps implicated persist. [Interjections.
The SPEAKER: Order! Hon members.
Mr M G P LEKOTA (COPE): It is right and proper that the transgressors should be named and shamed, and then tried and jailed. Their assets and the assets of their colluding spouses, where warranted, should thereafter be seized. The Accountancy and Actuarial Discipline Board of the UK is scrutinising KPMG's confidential records on BAE. It is anticipated that its audit will reveal financial evidence that BAE indeed paid out huge bribes to supply Hawk trainer aircraft and Gripen fighter jets to South Africa for R2,1 billion.
Already a completed investigation in the UK and Liechtenstein points to alleged obscene payments of more than R200 million by BAE. One of our citizens once served in the Department of Defence. Whilst S A Police investigators have been impotent, other investigators abroad are about to blow the lid on some of the alleged 28 politically well-connected individuals who cashed in. The fact that BAE recently settled a £286 million fine for failing to comply with global antibribery rules is evidence that BAE has been using improper influence.
Ms M A MOLEBATSI (ANC): Hon Speaker, on 4 November 2010 the Minister of Police, supported by the department and senior management of the SA Police Service, SAPS, launched Operation Duty Calls, which is a festive season crime-fighting campaign. The operations will include: high police visibility, increased roadblocks, and stop-and-search operations. Police will also execute high-density operations while maintaining visibility at all hot spots.
The ANC supports the drive by the Minister and SAPS to mobilise our force over the period. Let me in advance thank the men and women in the SAPS, who will sacrifice by working over the festive season so that we can spend our time safely with our families. We call upon all citizens of our country to co-operate and work together with our SAPS members to fight crime, particularly during the festive season. Viva, Operation Duty Calls! Viva!
Mr V B NDLOVU (IFP): Mr Speaker, the IFP wishes to express sincere condolences to the friends and family of Shrien Dewani. The IFP trusts that our Police Force are leaving no stone unturned in their efforts to swiftly bring these criminals to justice. We urge all local government sections to take the necessary preventative measures in making sure that all tourists arriving in our country are well informed about which areas are unsafe to travel through.
In this regard, we suggest that general tourist safety information packs be placed on all in-bound flights to South Africa. Heinous crimes such as this have no place in South Africa. We urge the Minister of Police to send a very clear message to the perpetrators of this crime to the effect that no crime will be accepted. They will be caught and they will pay dearly for it. I thank you, Mr Speaker.
Mr L W GREYLING (ID): Speaker, the tragic saga of the Grootvlei and Orkney mines, which were awarded to Aurora Empowerment Systems, represents everything that has to be fought against in South Africa. It is an absolute scandal that this crisis has been allowed to continue for over a year with devastating consequences for the environment and workers' rights. Throughout all of this the ANC has remained quiet, while Aurora Empowerment Systems have been allowed to sow destruction at these mines!
The ID wants to know why there was not proper due diligence in regard to Aurora Empowerment Systems to ensure that they could actually pay for these mines and provide the necessary funding to keep them operating. Due diligence in this case seems only to extend to confirming that President Zuma's nephew and his lawyer, and Mandela's grandson were directors of this company. To add insult to injury, the workers have had to watch as Khulubuse Zuma has engaged in public displays of huge wealth while continuing to insist that he has no money to pay the workers on the mines.
In addition, millions of litres of untreated acid mine water have been pumped daily into the surrounding wetlands, with devastating environmental consequences. It has now also been reported that some union officials are receiving death threats for questioning the role of the liquidator Enver Motala's complicity in this tragedy. This must end. It is high time that the government intervened so as to stop this tragedy from turning into a complete catastrophe. I thank you.
Ms N R BHENGU (ANC): Speaker, on 2 November 2010 the S A National Taxi Association Council, Santaco, unveiled the TR3 Vision 2010 and launched the taxi academy. The TR3 Vision 2010 is about redefining, restructuring and refocusing the taxi industry as a key player in the mainstream of the economy. The taxi academy will provide training to taxi owners, rank managers, taxi drivers and conductors to improve the quality of services provided by the taxi industry to 15 million commuters every day.
The Minister of Transport, Mr Sibusiso Ndebele, attended this event and commended Santaco for demonstrating their understanding of broad-based black economic empowerment and the co-operative development policies of the ANC government. The Department of Transport pledged R5 million towards the taxi academy.
The TR3 Vision 2020 will enable the taxi industry to realise its potential as a true broad-based black economic empowerment sector in transport with multibillion rand financial muscle. The ANC will support efforts by the people to become the masters of their own destiny.
Rev K R J MESHOE (ACDP): Speaker, the ACDP wishes to convey its condolences to the husband and family of Anni Dewani, a British tourist who was killed on Saturday night while on honeymoon with her husband. Our sympathy goes to Mr Dewani and we pray that he will find strength and comfort during this very difficult time.
The ACDP further appeals to the Minister of Tourism and all relevant stakeholders to ensure that it becomes a requirement for tour companies and guides to inform tourists about areas they can and cannot visit at night, so that we do not have a repeat of this unfortunate and tragic event.
We further call on the police to leave no stone unturned until they find the murderers of Anni Dewani and for experienced detectives to be given this case to ensure that the perpetrators are convicted by our courts. A clear message must be sent to criminals out there that the attacking and killing of tourists will not be tolerated. Thank you.
Mr S C MOTAU (DA): Speaker, media reports suggest that the ANC, via its front company, Chancellor House, is benefiting from the national energy crisis again, through its recent purchase of a major Swazi coal mine which is, in turn, apparently set to supply coal to several power plants, including the new Medupi plant. The DA believes that this amounts to a gross conflict of interest. It blurs the lines between party and state, and we once again call on the ANC to shut down Chancellor House.
Chancellor House is a front company that is doing nothing but enrich the ANC and it is doing that through very questionable means. We cannot have a situation where the ANC is able to benefit from an energy crisis of its own making and its insider knowledge of state dealings, in order to bankroll its own party financing and election campaigns.
In April this year, the DA's Chief Whip, Ian Davidson, submitted a Private Members' Bill to ban political parties from tendering and contracting with general government. The Bill seeks to regulate the awarding of government tenders in order to ensure that no business entity in which a political party has an interest can tender with government or parastatals.
This episode only re-emphasises the need for such legislation. Where there is such provision in place in our law, a coal mine owned by an ANC front company will not be permitted to contract with Eskom. I thank you. [Applause.
Mr G LEKGETHO (ANC): Hon Speaker, the ANC welcomes the new development of a potential drug treatment that has the ability to simplify and shorten tuberculosis, TB, treatment to less than six months. Currently, the drug is being tested for effectiveness, safety and tolerability on patients at two centres, the Lung Institute at the University of Cape Town and the TASK Research Centre in Bellville.
If successful, the experimental regimen will offer a shorter, simpler, safer and more affordable treatment option for multidrug-resistant tuberculosis, MDR TB, an emerging global health threat. This is going to be a significant advance for MDR TB patients, who today must take multiple types of drugs - including injectables - daily for up to two years.
The ANC supports and believes that it will assist and bring relief to those who have been compelled to take treatment for longer periods. This new treatment shortens the period of taking the treatment, which is one of the main reasons for patients' defaulting. I thank you. [Applause.
Mr N SINGH (IFP): Hon Speaker, at the end of 2009, correspondence was sent from the Minister of Basic Education, Mrs Angie Motshekga, Member of Parliament, to all Members of Parliament in this House, urging members of the House to visit schools at the beginning of the 2010 academic year.
I duly visited ten schools over a three-day period and submitted a comprehensive report of my findings to the Ministry on 14 April 2010. This report advised the Ministry on issues that required urgent attention at these schools. I further requested in my correspondence feedback from the Ministry on issues that I addressed and the steps to be taken, so that I could conduct follow-up visits towards the end of 2010.
To date, hon Speaker, and despite numerous requests by my office, the Ministry of Education has not even responded to my April correspondence, save for a telephonic call of acknowledgement, let alone effected any changes to the above-mentioned schools as per my request.
I submit that this, Mr Speaker, is administrative and political negligence of the worst kind. I therefore urge the Minister of Education to take immediate disciplinary and corrective action to ensure that instances of negligence such as this do not occur again. Thank you. [Applause.
Mr P D DEXTER (COPE): Speaker, Cope supports the call by the National Union of Mine Workers and Solidarity, for Enver Motala the lead liquidator, who was charged with winding up Pamodzi Mines, to step down because of the social crisis caused at the mines which is a result of his failed efforts.
Cope also supports the demands for Aurora to be taken to the Labour Court for its failure to pay the salaries of its employees for the past 18 months, leaving them utterly stranded. The situation that has developed is an absolute travesty of justice. The government, self-proclaimed champion of the workers and the poor, has done nothing.
Reports suggest that R4 million's worth of pension and provident fund contributions deducted were not paid over to the relevant funds and no pay-as-you-earn or unemployment insurance payments were made to the authorities. Life cover policies were also cancelled as a result of nonpayment of contributions by Aurora.
Both the Department of Labour and the Department of Mineral Resources have failed to act against the company, which is headed by politically connected individuals. Workers have been literally mugged by the employer.
Furthermore, due to the neglect of management, the problem of acid water has been exacerbated in the mines, and assets of the mines have allegedly been stripped and sold off to pay the liquidators. As the government looks the other way, the rich continue to be rich, while the poor workers are left destitute. It's a disgrace, Speaker. [Applause.
Mr J B SIBANYONI (ANC): Hon Speaker, the Law Society of the Northern Provinces is commended for having held its annual general meeting on 13 November 2010 at Pilanesberg, Sun City. The opening session was addressed by the Chief Justice, Mr Sandile Ngcobo. He said that the attacks on the judiciary, either from academics, politicians or political analysts, are a threat to the independence of the judiciary.
At the AGM attorneys who have been practitioners for 50 years in this noble profession, the legal profession, were recognised. The AGM is commended for having grappled with the Legal Practice Bill and the Constitution 18th Amendment Bill in its deliberations.
The Law Society of South Africa has submitted its views to the Department of Justice regarding the Legal Practice Bill. The Justice Committee looks forward to receiving the Law Society of the Northern Provinces' resolutions and its submissions before the above-mentioned Bills are debated in Parliament. These Bills have been prioritised by all interested stakeholders. [Applause.] Thank you, Speaker.
Mr J R B LORIMER (DA): Speaker, provincial governments are given power over traditional communities. That power carries a duty of trust that the best interests of traditional communities will be followed at all times.
There is one instance where that duty of trust is being flagrantly violated. The North West Provincial Government has allowed the situation where the Bapo ba Mogale traditional community faces losing out on a massive business deal that could help lift many of its 35 000 members out of poverty.
The North West Provincial Government has placed the affairs of the community under administration. The administrator's appointment is being challenged in court. In the meantime the premier refuses to act. The community's affairs have been left to stagnate. Community bills are not being paid and decisions involving the administration of the community's wealth are not being taken. One result is that the community may now lose out on being able to increase its share in a potentially lucrative Pandora platinum mine.
The leadership of the community believe officials want to keep control of the community's wealth, so that they can give dodgy contracts to their friends. The DA has appealed directly to the premier, but the premier has not acted. I have written to the Minister, but he has done nothing. I am sorry to see that the Minister is not here - perhaps he's out buying flowers! This begs the question: do these elected officials care about their responsibilities to traditional communities Aren't they bothered by reports of corruption South Africans will draw their own conclusions. They are not likely to be kind. [Applause.?
Umntwana B Z ZULU (ANC): Somlomo, uhulumeni we-African National Congress oholwa ngumhlonishwa uMongameli uMsholozi, usefinyelele nakubantu abahlala ezindaweni zasemakhaya ukubalethela ukukhanya kwentuthuko. Umhlonishwa woMnyango Wezamandla, umhlonishwa uPeters usebenza ngokukhulu ukuzinikela nokuzikhandla ezindaweni zasemakhaya kwaNongoma, lapho esefakele khona ugesi ezigodini eziningi ezahlukeneyo.
Ukwazile ukufakela ugesi imizi eyizi-2569 okumanje ikhanyisa ugesi kule ndawo. Imali uhulumeni aseyifakile ukwenza lo msebenzi omkhulu noncomekayo iyizigidi ezingama-R35. Abantu abaningi abahlezi emakhaya bengasebenzi bakwazile ukuthola amathuba emisebenzi ngenkathi kufakelwa ugesi emakhaya abo. Izingane ezifunda ezikoleni ezikulezi zindawo nazo sezizokwazi ukusebenzisa amakhompyutha ukufundisa izingane ebezingakaze zilithole ithuba lokufundiswa ezobuchwepheshe.
Abantu bayancoma bathi bayakubona okushiwo nguMongameli uMsholozi ukuthi ufuna intuthuko ifinyelele nasezindaweni zasemakhaya. Ukukhanya kufike nohulumeni we-African National Congress kwaNongoma. Imisebenzi yakhe yentuthuko iyabonakala. Inselelo enkulo uMnyango obhekene nayo ukwebiwa kukagesi yilabo abangafuni ukuwukhokhela. Lokhu kukhinyabeza imizamo emikhulu kahulumeni yokuqhubeka afakele ugesi kulabo abasawudingayo. Ngiyabonga Somlomo. (Translation of isiZulu member's statement follows.
Prince B Z ZULU (ANC): Speaker, the government of the African National Congress, which is led by the hon President Msholozi, has also reached out to the people who live in the rural areas to bring them the light of development. The hon Minister of the Department of Energy, hon Peters, has worked with great dedication and commitment in the rural areas of Nongoma, where she has supplied electricity to many districts.
As of now, she has managed to provide electricity to about 2569 households in this area. The government has allocated a sum of R35 million to do this commendable job. Many unemployed people benefited during the electrification of their homes. The children attending schools in these areas will now be able to use computers, and those learners, who have never had the opportunity, will be exposed to technology.
People are appreciating it and are saying that they can now see what the President, Msholozi means when he says that he wants the development to reach the rural areas. The improvement came with the government of the National Congress in Nongoma. Her developmental works are evident. The great challenge faced by the department is the stealing of electricity by those who do not want to pay for it. This hinders the government's great efforts of continuing to supply electricity to those who need it. Thank you, Speaker.
The MINISTER OF ENERGY: Speaker, I rise to thank the hon Zulu for taking the opportunity to raise in the House the matter of the electrification of the area of Nongoma, and also to convey, through him, a message to the entire community of KwaZulu-Natal that we are aware that there are major backlogs in that province, and in particular in the areas around Ulundi and Nongoma, which do not have electricity.
We have plans to continue with the electrification programme. As you know, government set itself the target of ensuring access to electricity for all formal households by 2012 and universal access by 2014. We believe that, with the support of communities and Members of Parliament like him, we will be able to meet the target.
Hon Zulu raised the important point of paying for electricity. I want to indicate that, as members of portfolio committees, you should also help the municipalities to get the necessary amounts of money that they are owed by consumers of electricity like government departments, individuals who can afford it, and industry and businesses.
The challenge we have is that the lack of payment for electricity results in the inability of municipalities to pay Eskom and then Eskom ends up cutting off the supply to communities and to municipalities in particular. The end result is that those unfortunate members of the community who are supposed to have access to free basic electricity cannot have access to it because the total supply has been cut off.
There are quite a number of government departments that owe municipalities and Eskom. Through this House, I would like to make a special appeal to them to pay. You will remember that earlier this year electricity to communities in the Free State was cut off, primarily because of the huge debts that state-owned enterprises, as well as government departments, had to pay to municipalities. I want to say to hon Zulu that we are on track to ensuring that we popularise the need for payments, but we also need your support to ensure that. Thank you. [Applause.
The DEPUTY MINISTER OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT: Speaker, I would like to associate myself with the statement made by the hon Sibanyoni in relation to the annual general meeting, AGM, of the Law Society of the Northern Provinces. I want to say that we agree with the statement made by the Chief Justice at that meeting, that South Africa's courts need to improve efficiency in order to promote access to justice, that the cumulative effect of trial delays is denial of justice, and that we need to re-examine the fundamentals of our justice system.
In that regard, we thank the Law Society of the Northern Provinces, together with the entire organised legal profession, for the very constructive inputs that they have made in the development of the Legal Practice Bill and the Superior Courts Bill. Both pieces of legislation are designed exactly to improve the efficiency of our courts and access to justice.
We would also like to say that we are working together with and in support of the judiciary, led by the Chief Justice, to ensure that this is achieved through the implementation of, amongst others, judicial case management and improved management of our courts generally, as well as embarking upon a review of our civil justice system. I thank you.
The MINISTER OF SCIENCE AND TECHNOLOGY: Hon Speaker, I think we should all join the hon Gumede, the hon Ndlovu and the other hon members who have referred to the tragic murder of the young British tourist who was visiting our country. The killing of any person is a crime and a tragedy. In this particular instance we are saddened that this has dented the positive image that South Africa has accrued in recent months, to which the hon Gumede referred. So, we join all members who have expressed condolences and sadness at this tragic event.
Secondly, with respect to the robust statement by the former Minister of Defence, the hon Lekota, the Leader of Cope, we would all, of course, agree with the hon member that those who have transgressed must be dealt with by the law. But we believe that we would benefit greatly if the hon member who provided robust declarations of no transgression previously would come forward with what he knows so that action can be taken against those who have transgressed. [Applause.
We would agree with the hon member from the Portfolio Committee on Police that indeed we must all support the police in the anticrime campaign that they have launched for the festive season and that all of us should become active supporters of members of the Police Service as they seek to make our country and our communities and streets safer.
On the matter of Eskom and the allocation referred to by the Leader of the DA, I hope, hon Speaker, that you will allow my hon colleague the Minister of Public Enterprises, when he so requests, to make a statement to the House so that this matter can be properly clarified, because I believe that that is what is best to address this matter.
Finally, on the matter of research with respect to TB treatment, which was raised by colleagues from the ANC, this is indeed a very exciting and positive breakthrough. We hope the scientists will be successful in finding a means of treating TB that will assist us to eradicate this blight on many, many communities and members of our society. Thank you. [Applause.
The MINISTER OF ENERGY: Hon Speaker, I wish to apologise for omitting to respond to the statement on the R20 billion guarantee. I want to re-assure members of this House that this is not additional funding, as was indicated by the DA Leader. It is a R20 billion guarantee from government to allow us, Eskom, to raise loans from the market. This will allow for the building of the Kusile Power Plant, and we will therefore be able to bring about the security of the supply of electricity to South African industry and households.
I want to ask, since I know that the DA is not a member of Cabinet and none of them is a Minister, which Ministers were not consulted, because the support that government lent to Eskom through Cabinet was a product of the Department of Public Enterprises, DPE, the National Treasury and the Department of Energy. We co-authored the memo which solicited the support of Cabinet, which was duly given, as reported by the GCIS Director-General last week. So, I just want to put that to rest.
I also want to say that the issues [Interjections.
The SPEAKER: Order! Hon Minister, take your seat. There is a point of order.
The LEADER OF THE OPPOSITION: Hon Speaker, the Minister is asking me a question. Am I entitled to respond to her question about which Ministers were not asked or informed In her response she asked me a question?
The SPEAKER: It is a rhetorical question, hon member. [Laughter.] Continue, hon Minister.
The MINISTER OF ENERGY: I want to say that the issue of the link of Chancellor House to Eskom is like a record that has got stuck, on one note. We believe that that matter has been addressed and there is no way that we can keep on bringing it back. Chancellor House is an independent company that has a right to do business with any entity that they want to [Interjections.
The SPEAKER: Order!
The MINISTER OF ENERGY: and no amount of howling will stop Chancellor House from doing business in this country. [Applause.
The MINISTER OF WOMEN, CHILDREN AND PEOPLE WITH DISABILITIES: Mr Speaker, hon members, we are making this statement against the background of our country's having been affected by a number of shocking incidents of murder, abuse and rape of women and children.
Just this weekend, a woman tourist from the United Kingdom was killed in what is believed to be a hijacking incident in Gugulethu. Over the past few weeks, we visited the scene of the gruesome murder of women and children at Ntshongweni and Marianhill in KwaZulu-Natal. We further visited the family of a young schoolgirl who was raped at her school, allegedly by fellow learners. There is also information about the rape of an 11-year-old child in Cape Town.
We want to express our deepest sympathy to the family of the deceased British citizen, especially her husband, a newlywed, and also to the families of the deceased in Ntshongweni and Marianhill.
We are receiving reports of an increase in the number of children abandoned by their parents. Equally, we are concerned about missing children who might be victims of child trafficking.
All of these incidents require us to approach the 16 Days of Activism for No Violence against Women and Children with much more resolve and determination, in order to mobilise all the people of our country to act against abuse during this time.
The 16 Days of Activism for No Violence against Women and Children is an international initiative endorsed by the United Nations. It takes place annually, beginning on 25 November, which is International Day of No Violence against Women and Children. It runs to 10 December, which is International Human Rights Day. Other key commemorative days during this period include World Aids Day on 1 December and International Day for Persons with Disabilities, which falls on 3 December of every year.
In the Southern African Development Community, SADC, region, the campaign has gained significant momentum through the adoption of the Addendum on the Prevention and Eradication of Violence against Women and Children by the SADC heads of state. Since 1999, our government has run this campaign and, in addition to women, it has included issues relating to violence against children.
This campaign focuses primarily on generating an increased awareness of the negative impact of violence on women and children, as well as on society as a whole. This campaign has served as the main social mobilisation tool against the prevalence of acts of abuse against women and children in South Africa.
Over the past 11 years, the campaign has grown exponentially, making it the second most known government event in South Africa, after the state of the nation address, according to a Government Communication and Information System, GCIS, Tracker Survey. The Tracker Survey also indicates a significant rise from 9% in 2003, to 33% in 2009, in public awareness levels in rural areas.
It is also worth noting that the 16 Days of Activism Campaign is again nominated for this year's Public Sector Excellence Award, which is supported by Avusa, the Brand Leadership Academy and TNS Research Surveys.
The campaign also serves as a catalytic mechanism to support government outcomes on gender equality and the protection of children and other vulnerable groups. The campaign cuts across the five key priorities of government, with a particular focus on crimes committed against women and children.
While the levels of awareness have been increased, we face the reality that child abuse, murder, rape, statutory rape, domestic violence and trafficking of women and children continue to occur at a rate that is unacceptably high.
The latest crime trends report of the SA Police Service for the period April 2009 to March 2010 indicates a decrease of 4,4% in the ratio of sexual offences. There is, however, a concern with regard to increases in the incidence of attempted murder, sexual offences and murder of children in particular. According to various previous analyses pertaining to crimes against children according to age, most of the crimes are committed against children between 15 and 17 years old. However, it is disturbing to notice that there are now a significant number of cases of sexual offences affecting children below the age of 15, including those aged between zero and ten years.
In implementing the campaign this year, we have taken into consideration the outcomes of the Ten Year Social Impact Assessment and the 2009 Stakeholders Summit, where various stakeholders assessed the campaign and made recommendations going forward. This is where we came out with the 365 days plan of action on violence and abuse of women and children.
The corporate image and theme of the campaign has been well established in society and amongst participating stakeholders nationally. It is for this reason that we continue with the theme "Don't look away; act against abuse!"
"Structures of violence: Defining the intersections of militarism and violence against women". We will co-operate with the Departments of International Relations and Cooperation, and Defence and Military Veterans in regard to incorporating this international theme into our programmes and structures and in relation to South African peacekeeping missions and other foreign policy interactions abroad.
We have already had some activities which serve as a build up to the 16 Days of Activism. We had the celebration of National Children's Day in Rustenburg in the North West on 6 November, where we launched the campaign to improve access to sanitary towels for vulnerable and orphaned girls.
Last week, we launched the Disability Awareness Campaign which should also highlight the vulnerability to abuse of women, children and people with disabilities. The campaign will culminate in a Disability Summit to be held in Bloemfontein from 2 to 3 December in order to finalise the process of domesticating the UN Convention on the Rights of Persons with Disabilities.
On 20 November in Daveyton, Gauteng, the Ministry, in partnership with the SA National Aids Council, Sanac, Ekurhuleni Metro and other civil society organisations, will co-ordinate the commemoration of International Men's Day on the twenty-first anniversary of the adoption of the UN Convention on the Rights of the Child.
The key events of the 16 Days of Activism include the media launch that will take place here in Parliament on 23 November 2010. Together with other Ministers, we shall highlight the response to the challenge of the abuse of women and children. We will be outlining our focus of this year's campaign.
The opening event takes place in Khayelitsha, in Cape Town, on 25 November, and will focus on the links between alcohol, substance abuse and the scourge of the abuse of women and children. This event will be addressed by our President, His Excellency, President Jacob Zuma.
From 25 November to 10 December there will be a number of activities focusing on various aspects of the challenge of violence against women and children. A calendar of these events organised by government, civil society and other sectors will be published on our website.
The closing event on 10 December takes place in KwaZulu-Natal, where, we hope, we will be able to relook at the horrible incidents of the murders of innocent families and children in Ntshongweni and Marianhill.
Our focus will be on profiling the whole package of victim support services that government and other partners are implementing to mitigate the impact of violence on women and children.
President Kgalema Motlanthe.
It is therefore my belief that we will be able to take the 16 Days of Activism campaign to even higher levels this year, as we implement the 365 days plan of action adopted after the 10-year review of the campaign last year. Through this plan, we shall address key factors underlying the high prevalence and vicious nature of the recent incidents of violence against women and children.
It is my sincere hope that, as Parliament rises this week, all parliamentarians will use their constituency period to highlight the challenge of abuse of women and children in our communities. Let us use this opportunity to encourage reporting, effective investigation and appropriate interventions against incidents of violence and abuse against women and children.
Let us visit police stations in our constituencies and speak to those in authority to find out their levels of understanding, sensitivity and state of readiness to tackle this scourge that faces our community.
Let me take this opportunity to invite the Members of Parliament, especially men in the House, to participate in the International Men's March on 20 November in Daveyton, Ekurhuleni. It is a very important day on which parents can teach boys, their sons, to respect girls from their formative years. The central message for that day must be that real men don't rape; real men don't beat their wives, and real men don't abuse children.
I therefore hope that we shall ensure that we pass on these messages to our communities, organisations, volunteer groups, traditional leaders, religious leaders and all in our communities, to ensure that we form a formidable army of committed citizens of this country that will speak with one voice and say to the whole country: let us not look away; let us all act against the abuse of women and children.
I would also like to caution some of our journalists and media houses to remember to protect our children. They also have rights; they also have the right to privacy. We want to ask them to protect the children from unnecessary exposure, especially those that have been highly traumatised and are still under age and undergoing counselling because of the brutality of the rape and abuse. We believe that members of the press are also parents and patriots and will therefore put the interests of our children first, before they go out and look for a scoop for the front page.
It is a matter of concern that details of the video which was taken at Jules High School were published in what is tantamount to promoting child pornography in our country. This may have a devastating impact on children who are already traumatized by these occurrences.
In closing, allow me to say that a society that does not respect its women and children is a dysfunctional society. As South Africans, let us declare that we refuse to be part of such a society and that we do care for women and children. Let us all march together, forward against woman and child abuse. Thank you.
Mrs D ROBINSON: Hon Deputy Speaker, Ministers, members and also our special guests in the gallery, Minister, I would like to congratulate you on your appointment to office. I trust that our relationship will be a cordial one and that we will work together in the interests of women, children and persons with disabilities.
I'm convinced that we can put some action to the platitudes that have been uttered in the past year of inaction. Apart from expressing sympathy, we need to see action and change. The Ministry needs real leadership to promote the interests of women, who are still denied the rights that they are guaranteed by our Constitution and the many protocols that have been signed. We will hold the Ministry accountable for implementing a human rights culture, for gender rights are human rights.
A lot of women have improved in many ways but, 16 years into democracy, why do we still need the 16 Days of Activism for No Violence against Women and Children While women rightly celebrate their new freedom, they do not feel liberated or empowered in every sphere of life. In their homes, as wives and daughters, domestic violence against women is far too common. In their neighbourhoods they are vulnerable to rape and attack, and when they turn to the police or to the courts for protection, their concerns are often shrugged off. Many victims of crime point out that they are victimised twice: first by the criminals and then by the criminal justice system?
The much acclaimed Victim's Charter was meant to take care of the needs of all victims, but government is failing to ensure that the rights are upheld. Women do not always have access to the special Family Violence, Child Protection and Sexual Offences Units or victim support rooms.
There is a desperate need for psychologists and social workers at police stations, at courts and in communities to deal with the scourge of rape and abuse of women, children and babies. Not only are the victims traumatised, but also the families who witnessed the atrocities, as well as the police, doctors and nurses who have to deal with the indescribable scenes they have to witness. At eleven o'clock last night I heard of a three-month-old child that had been victimised and abused in the most horrendous way.
we (need) to do much more to reach out to men who are imprisoned by the emotions that society, for whatever reason, has never allowed them to process.
Many of our families are dysfunctional and counsellors are needed. This cannot be left to the NGOs alone, who are already suffering from lack of funding. Government has to take financial responsibility for providing the funds to deal with the problems. So I appeal for more gender-sensitive budgeting.
The lack of maintenance payments is often a trigger for family violence. Why should women have to go to court to beg that fathers pay maintenance for their children The courts are often grossly understaffed, and justice is not served?
I challenge all hon Ministers and members to behave with honesty, to set the example, to pay up and to encourage others to take responsibility for the children that they fathered. In a modern constitution there is no place for patriarchal attitudes that regard women as mere objects to be used at the pleasure of men.
Probably the single most important marker of a country's progress is how it treats its women. If its women have the same education as its men, and are given the same opportunities and status, the country will prosper and advance, but we need to break down the patriarchal attitudes for this to happen.
Finding a way to preserve traditional wisdom while promoting human rights is the challenge of our age.
Those are the words of Helen Zille.
I agree. Don't look away; act against violence! These 16 days serve as an important reminder of how far we still have to go. Let us put words to action. Let us not have T-shirts, let us not have caps, let us have ongoing action. Feasting is not enough; we need to work hard. Thank you. [Applause.
Mrs M A A NJOBE: Hon Deputy Speaker, may I begin by congratulating the Minister hon Lulu Xingwana on her appointment as Minister in the Department of Women, Children and People with Disabilities. We wish her luck and success in her work. [Applause.
Hon Deputy Speaker, once again South Africans and the international community will campaign for 16 days, calling for the elimination of all forms of violence against women.
Violence against women takes many forms: sexual assault, wife beating, prostitution, trafficking, sexual violence, sexual harassment and date rape. Violence against women also takes many other forms such as psychological, emotional and financial abuse, and also intimidation. All are unacceptable violations of human rights. Together they form a huge obstacle to gender equality and genuine human progress.
In South Africa, the sexual violation of children, women in general, women living with HIV/Aids, and lesbians is endemic. This heinous crime does not end there but, in some instances, leads to murder. The latest case is that of the murder of the British bride on honeymoon in South Africa. It's sad. It is very sad.
Women in South Africa are not safe anywhere. Recently, a doctor was gang-raped at her workplace and a schoolgirl was drugged and raped by school pupils. The sad part about the latter incident is that the alleged perpetrators were set free by the police because of questions from her peers about whether it was rape or not, as she was drunk. The question is: How she could not be drunk when she was drugged?
Women are scared to report sexual violence because they will be insulted and victimised in public. Women's rights are under threat and something needs to be done urgently.
Cope believes women have a right to report sexual violence and harassment without fear, no matter who the perpetrator is. It is also critical that women are able to speak out and share their ideas in order to challenge attitudes and beliefs that sustain violence against women.
Cope also calls for action to defend women's rights to freedom of expression and information which are the basic building blocks for women to be able to come together, organise for change, inform public debate, define culture, build safe spaces and end violence against women.
Cope invites all to take action to defend women's rights and the gains that we have made so far. I thank you. [Applause.
Ms S P LEBENYA-NTANZI: Madam Deputy Speaker, the IFP strongly aligns itself with the objectives of the 16 Days of Activism for No Violence against Women and Children campaign. The reason we do this is primarily because, in spite of the wonderful strides we have made as a country in moving away from the horrors of this country's apartheid past, and in spite of the strides we have made in embracing a culture of human rights and democracy, we note with regret that women and our children are still at the receiving end of violence, meted out to them by those who should be protecting them.
Even though this year is the 10th anniversary of this campaign, rampant and unforgivable violence against women and children is indeed a cause for us to hang our heads in shame. We recognise that the objectives of this campaign should not be confined to only 16 days, but should be pursued every day until the battle is won.
The campaign should be viewed as a means of pricking the consciences of our people so that they take up the fight to defeat this ugly phenomenon. We call on all the men and women of our country to join hands in defeating this demon which continues to corrode and blight the very soul of our nation. I thank you, Madam Deputy Speaker. [Applause.
Mrs S U PAULSE: Madam Deputy Speaker, the campaign of 16 Days of Activism for No Violence against Women and Children is a very important period on our events calendar. It proves that we are united with the rest of the world.
Geweld teen vroue en kinders moet tot 'n einde kom. Die OD wil beklemtoon dat dié soort geweld in werklikheid 'n skending van menseregte is. Die demonstrasie ter ondersteuning van vroue in die wêreld is nie genoeg nie, maar ongelukkig is dit die enigste tyd van die jaar wat aan dié saak gewy word. (Translation of Afrikaans paragraph follows.
[Violence against women and children has to end. The ID would like to emphasise that this kind of violence is in fact a violation of human rights. The demonstration in support of women the world over is not enough, but unfortunately this is the only time of the year dedicated to this cause.
Violence against women is not only common but often fatal. It is an extreme manifestation of gender inequality and human rights violation. It is not a South African problem or shortcoming; it is, in fact, a global problem.
Die uitskakeling van alle vorme van geweld teen vroue en kinders moet nie 'n jaarlikse demonstrasie wees nie; dit behoort 'n prioriteit van hierdie regering te wees, omdat 'n groot aantal vroue in die Suid-Afrikaanse nasionale Parlement verteenwoordig word. (Translation of Afrikaans paragraph follows.
[The elimination of all forms of violence against women and children should not be an annual campaign; it ought to be a priority for this government, because a large number of women are represented in the national Parliament of South Africa.
The ID strongly believes that a strategic way to prevent violence is to introduce and enforce laws that protect women. In doing so, there must be no room for tolerance of acts of violence against women and children. I thank you. [Applause.
Mr N M KGANYAGO: Deputy Speaker, the UDM calls on the nation to mobilise in support of this worthy campaign. In my brief time I would like to make two points. Firstly, the UDM expresses its outrage and dismay at the recent brutal killing of a British woman on honeymoon in South Africa. Her death, like the recent Jules High School gang rape incident, emphasises the brutality and violence that women and children face in this country. The men who commit these atrocities must be found and punished. Every such incident must be dealt with swiftly and unequivocally. Enough is enough!
Secondly, this is another year in which this campaign will be conducted without the late hon Cheryl Gillwald at the helm. We would like to make use of this opportunity to salute this activist whose energy and dedication was a driving force behind the establishment and growth of the campaign. We hope that the campaign will continue to grow from strength to strength and serve as a monument for her and many others who are fighting against gender violence. I thank you. [Applause.
Mnr P J GROENEWALD: Agb Adjunkspeaker, dit is met afgryse en skok dat 'n mens in die media moet lees van skoolkinders en skoolmeisies wat verkrag word, en die dade dan gerieflikheidshalwe op video opgeneem word en verkoop word op die internet.
Dit is met afgryse en skok dat 'n mens moet lees van 'n klein baba, Marzaan Kruger, wat wreed deur haar aanvaller sodanig vermik is dat sy breinskade opgedoen het. Dis 'n kind wat nog nie eens kan praat nie; 'n kind wat nie in 'n hofsaak getuienis kan lewer nie.
Ons sê die gemeenskap het siek geword. Die vraag is, wat doen ons as ouers om die voorbeeld te stel en ons kinders reg op te voed Die standpunt van die VF Plus is duidelik. Ons gemeenskap het so siek geword dat, as dit by kinderverkragters en moordenaars kom, ons die terugbring van die doodstraf bepleit, want dit sál werk om ons gemeenskap weer reg te kry. Ek dank u. (Translation of Afrikaans speech follows.?
Mr P J GROENEWALD: Hon Deputy Speaker, it is with shock and horror that one must read in the media of schoolchildren and schoolgirls who are raped and that the rapes are then video-taped and sold on the internet.
It is with shock and horror that one must read of a little baby, Marzaan Kruger, who had been maimed so brutally by her attacker that she was left brain-damaged. This is a child who was too young even to speak; a child who cannot give evidence at a trial.
We are saying that the community has become ill. The question is: What are we as parents doing to set an example and to give our children the correct education The argument of the Freedom Front Plus is very clear. Our community has become so ill that if it comes to the rapists and murderers of children, we are pleading for the reinstitution of the death penalty, because that is the only way to cure our community. I thank you?
Rev K R J MESHOE: Deputy Speaker, the debate on 16 Days of Activism for No Violence against Women and Children today takes place under the shadow of the tragic killing of a newlywed British tourist who was on honeymoon with her husband. The ACDP is concerned that this criminal act may have a negative impact on the number of tourists that we are expecting in our country this year.
We believe that more should be done to stop the unabating sexual assaults and violence against women and children in our country. We also believe that we must move away from 16 days of activism to 365 days of activism against all forms of violence in our country. As the ACDP has stated in the past, it is time for government to move beyond trying to create awareness; it needs to start solving the problem.
If government wants to see results in their fight against violence against women and children, we recommend that the following should also be done. Firstly, they must ensure that minimum sentencing legislation for convicted abusers is applied. Secondly, they must provide courts and personnel to deal speedily with these issues. Lastly, they must provide better training for police, and better forensic services and victim care centres. I thank you. [Applause.
Mr R B BHOOLA: Madam Deputy Speaker, women and children are subjected daily to traumatisation and abuse. The devastating rise of criminal activity is becoming a negative force, destructive to building a caring and peaceful society. Women are, more importantly, involved every day of their lives. They have become victims of barbaric behaviour.
I agree with you, hon Minister, that all the incidents that have been mentioned, including the two rape incidents of the elderly in Chatsworth, are indeed heartbreaking. The perpetrators must face the strong arm of the law. It is incumbent upon all of us, hon members of this House, to ensure the safety, security and protection that are truly desired by all.
The MF says: "Creative communities are progressive communities." We call on all to fight and put an end to physical, social and mental abuse endured by all women and children. The campaign must be intensified throughout the year. I thank you.
Mr K J DIKOBO: Deputy Speaker, the past few weeks have witnessed a rise in the number of incidents of the violation of the rights of children and women. We were shocked by reports of the alleged gang rape of a schoolgirl. Even more shocking were reports that the incident had been videotaped and that her teachers had laughed at her, saying that she deserved it. There were many other reports, including that of the rape of a Bloemfontein doctor.
We are worried that society may gradually get used to such reports and accept the abuse and rape of women as part and parcel of everyday life. That is why Azapo supports the launch of 16 Days of Activism for No Violence against Women and Children, as it will go some way towards resensitising South Africans. Our message to men and young boys is: Real men do not abuse; they protect and love women. Thank you. [Applause.
Ms B N DLULANE: Sekela-somlomo, mandithabathe eli thuba ndivuyisane noNkosazana Xingwana ngokunikwa lo msebenzi umkhulu kangaka wokukhokela eli sebe. Sikho sonke, siza kukuxhasa. [Deputy Speaker, let me take this opportunity to congratulate Ms Xingwana for being given this important task of being the Minister of this department. We are all here and we will support you.
Hon Deputy Speaker and hon members, we are urged this afternoon, as we have been urged for the past 11 years, not to look away, but to act against abuse. For most of the past few weeks the news headlines that have captured the attention of the entire nation have revolved around unspeakable acts of violence against not only women, but also children. The acts of rape committed against helpless old women, young women whose lives are negatively impacted upon, and vulnerable children who are placed under the care of their relatives, unfortunately seem to be the order of the day in our communities.
Hon members do not need to be reminded of the plight of the 12 women who fell victim to a serial rapist in Johannesburg, the two women who were raped in a temple in Chatsworth, Durban, and the girl child who was raped by her grandfather in Balfour, an incident of horror.
What is clearly intolerable is the lack of action by school authorities and teachers who have been made aware of rape, violence and intimidation involving young men and schoolgirls, but have done nothing to stop these evil deeds. We call on our government, civil society and the private sector to take harsh action against the school authorities and teachers who are implicated in these cases, so that we can send a strong, clear message that we shall not tolerate any form of violence and abuse against anyone, especially women and children, who are the most vulnerable members of our society.
A few lessons can be learned from the events of these past few days. Every day we are faced with some form of sexual and physical violence, victimisation, abuse and disrespect directed at women and children, which has the impact of wearing them down. The question we have to ask ourselves is whether or not we as individuals are to blame for perpetrating many of these actions, and how we offer support to those amongst us who are suffering. Related to that, we should be asking ourselves how far we go in celebrating successes achieved by women, especially girl children, as well as how we encourage each other and rally around those amongst us who are striving to achieve something better.
Today, as we prepare ourselves to respond to the call made by the Minister, hon Xingwana, we have to congratulate members of the SA Police Service on the sterling work done by them in apprehending a suspected serial rapist outside Durban on Friday. The SA Police Service were able to achieve this through the assistance of the members of the public who provided information on the alleged serial rapist. The participation of community members can be made possible by, for example, creating neighbourhood watches in all communities.
When putting emphasis on the theme for this year's campaign - which is, "Don't look away; act against abuse!" - all of us are called upon not to watch from the sidelines and do nothing, but to speak out and take a stand. When we hear screams and shouts of abuse around us, we must make it our business to act.
There are many organisations and activists who are selflessly involved in mobilising men to fight violence against women and children. In many instances these men and women are working hard, away from the limelight and with inadequate resources. I will mention only a few of them today, but there is no shortage of information about these organisations and the work that they do.
The Brothers for Life with their slogan "Yenza Kahle" [Do the right thing] send their message to us on television all the time. Sonke Gender Justice who say, "One Man Can" and can be seen during episodes of the soapie Generations on television, is another such organisation. There is also Hearts of Men, whose project is aimed at lifting men out of unemployment and poverty hands-on, and which teaches young men and fathers not to perpetrate violence against women. Last but not least there is the Movement for Good whose rallying philosophy is, "It starts with you."
The role of Parliament and its members, in particular the role and responsibility of male parliamentarians, is of outmost importance in upholding and taking forward the seeds that have been sown by these organisations. Of equal importance are the role and responsibilities of female parliamentarians in speaking out about the abuse of women and children in all spheres of our lives and interactions. The responsibility that must be taken up by all Members of Parliament is also to find ways of strengthening support to men's groups in order to sustain the work that they do.
The activities supporting the 16 Days campaign have been communicated to you today. It is incumbent upon each of us to ensure that we do not remain on the sidelines; that we participate, and even take the lead, in ensuring that the abuse of women and children is completely eradicated during our lifetime. It is our collective responsibility to send out the message that men are capable of loving passionately, respectfully and with sensitivity; that women wish to feel safe in their neighbourhoods and are prepared to build trust between themselves and their partners.
We must commend our government for stepping up and sustaining the 16 Days of Activism for No Violence against Women and Children as an annual campaign. The campaign should not end in December every year, but we should be vigilant and guard against all forms of abuse throughout the year.
We can achieve a lot if we can also direct our attention to the ratification of the Southern African Development Community, SADC, protocol on gender development. South Africa has to ensure that efforts by all communities are supported by the ratification of the protocol without further delay.
In the name of collective action, together we can do more to eradicate the scourge of violence and abuse against women. Enkosi. [Thank you.] [Applause.
The DEPUTY SPEAKER: Hon members, that concludes the party responses to the Minister's statement. We move on to the next item. Permission has been granted to the Minister of Defence and Military Veterans to make a statement on the final report of the Interim National Defence Force Service Commission. I am advised that parties have been made aware of this and will have an opportunity to respond to the statement. Before I call on the Minister, hon members, I want to acknowledge the presence here in the gallery of the Interim National Defence Force Service Commission, led by Judge Bosielo. You are welcome as we receive you here. [Applause.
Mrs J D KILIAN: Madam Deputy Speaker, can I just ask whether the Minister perhaps issued us with a copy of the statement?
The DEPUTY SPEAKER: No, hon member, the Minister is going to make the statement. There is no issuing of the statement.
Mrs J D KILIAN: But, according to the rules, if it was possible she could just present it to our members.
The DEPUTY SPEAKER: No, she did not.
The MINISTER OF DEFENCE AND MILITARY VETERANS: Madam Deputy Speaker, for the benefit of the member of Cope there is a statement available and it can be photocopied and distributed as I speak. Thank you very much.
Madam Deputy Speaker, thank you very much for this opportunity. On 24 August 2010, the Speaker summoned me to his office to discuss the matter of the Report of the Interim National Defence Force Service Commission and he insisted both to me and to the Deputy President as the Leader of Government Business that the finalisation of the report should be done and it should be presented as speedily as possible. I gave my word, as did the Deputy President, that we would comply, and I am now able to confirm that after an initial extension of the period requested and granted to the commission, this morning I had the honour and privilege of receiving the Report of the Interim National Defence Force Service Commission.
It is important at this point to remind ourselves of the purpose or objective of this exercise, and perhaps the best place to start is at the beginning. The concept of the commission owes its existence to the policy intention of my first Budget Vote in 2009, dated 3 July 2009, in this Parliament.
we are considering making a request for a separate dispensation for the Department of Defence that would allow us to creatively deal with our own needs and the specificities (and uniqueness) of the security requirements (of the Defence Force).
I emphasise this, as it is so often deliberately misinterpreted in some circles, fuelled by other corners of the House. The intention to establish the National Defence Force Service Commission was expressed long before the shameful conduct by a small group of ill-disciplined members of the Defence Force at the Union Buildings.
It should be obvious, then, that we were alive to the challenge of addressing the concerns of the S A National Defence Force, SANDF, after years of the hon Lekota's being at its helm, a member here who stands up and pretends that he is perhaps new to these matters. These steps also preceded the whimper from some corners of the opposition benches. They bay and howl at the wind, for no other reason than to preen their wet wings.
The interim commission was established on 9 September 2009, after the Cabinet's approval of the creation of the new dispensation for the Defence Force. The brief of the Interim National Defence Force Service Commission was clear and well spelt out in the terms of reference that they were given.
advise on the regulatory framework for the unique service dispensation; and investigate and provide advice on remuneration and conditions of service of members of the SANDF.
The interim commission was advised to deal with these terms of reference both in the short term, that is, legislation, and in the long term, which is what we have today in the report. The commission dealt with these as three separate terms of reference. Each one is a standalone and very separate from the others. I introduced the commission to the portfolio committee, because the short term aspect, which was the drafting of legislation, needed some kind of co-operation with the portfolio committee.
I want to take this opportunity, therefore, to thank the members of the Interim National Defence Force Service Commission for the sterling work they have done. They have not only criss-crossed the length and breadth of this country, interviewing various stakeholders, but they have also found time to benchmark their work by visiting the United Kingdom, the United States of America, and the Russian Federation in order to learn from other countries the international best practice in a number of issues that have a bearing on us. I trust that in time we will benefit from the lessons and insights derived from these visits. They have done us proud in contributing to the effective and efficient management of the Defence Force as it fulfils its constitutional responsibility.
The work done by the interim commission is outstanding and I commend it. Could the hon member allow hon Groenewald to listen because he is an affected party Their dedication and commitment are clearly shown by their hard work in producing the report that they handed over to me this morning. They gave of their time and energy, despite the fact that most of them were in full-time employment?
It is now my honour and privilege to acknowledge members of the interim commission and use the opportunity to thank them most sincerely for their hard work, commitment, tenacity and single-mindedness in the midst of the noise and attempts to divert them.
The interim commission consists of people of outstanding calibre who have brought a great deal of integrity to the work that they have done. It consists of men and women who have distinguished themselves in their own right in South African society. These members are Judge Bosielo, who is a Judge of the Supreme Court of Appeal; Mr Ismail, who is the Deputy Chairperson; Lieutenant General Moloi, otherwise known as Comrade A; retired Major General Bantu Holomisa whose exploits in the Transkei are very well-known to all of us; Ms Mgabadeli, who is unfortunately not with us here; returning to General Holomisa, we thought that perhaps he might be the best placed person to ensure that we are in the safe hands and the Defence Force does behave; Dr Mokgokong, who was the deputy chairperson of the commission that allowed a hike in our salaries as Members of Parliament; Professor Christie, a well-known Western Cape academic; Mr Ngcakani, the retired Inspector General of Intelligence; Bishop Mpumlwana, the Bishop of the African Episcopal Church, and hon Groenewald, whose attention I've been trying to obtain and who is possibly the longest serving member of the Defence Committee in this House. [Applause.] Thank you very much. I would like on their behalf to acknowledge your applause.
In their handing over of the report this morning, it was touching to hear them say that they did this and for them it was an honour to serve the country. They stressed that the report is the foundation of their observations and should be regarded as work still to be completed by the permanent commission.
Appointing members from such diverse backgrounds allowed us, for the first time in this dispensation, to have a bird's-eye view of the SANDF since 1994. The observations therefore span a period of 15 years. The importance of the commissioners is that they are drawn from disparate backgrounds; two of them are currently members of opposition political parties in this House, showing that the responsibility of the Defence Force cuts across political lines. There was a deliberate effort to include members of the opposition political parties on the interim commission to draw as wide a range of experience as was possible.
It must have been very hard for them to sit here as members of this House and listen to distortions of certain sections of what is purported to be their work, a deliberate distortion of their hard work. The SANDF is a national asset and these members understood that they could effectively contribute while in the opposition to ensuring that our sovereignty is in the hands of people who are looked after.
I would like to say to the Leader of the Opposition, hon Trollip, that when his member stands here to quote selectively on ongoing work in order to create an impression of "time bombs", which exist only in his imagination, then it begs the question where he was when all the changes were happening in the Defence Force. He quoted from a purported report of September last year and brought it here and pretended that he had just unearthed it, as something that was written yesterday. Where was he all this time when all these changes were taking place in the Defence Force?
Together with the interim commission, we worked tirelessly to ensure that there were changes. The most important fact that they established, and what must be established in this House, is that it is possible to be in the opposition to ensure that the governing party is accountable but to do it responsibly, especially when we are dealing with a national asset such as the Defence Force. [Applause.
There are always two choices in life, hon Trollip: you are either part of change or you are working against it. Your member has chosen not to be part of the change but to work against the change. The immense improvements that have occurred in the Defence Force were very ably articulated the other day by the hon Minister Pandor. Next time, instead, of spending his time in newsrooms and feeding the press, perhaps your hon member will be in the House so that he understands and is part of the change. What it has done to him right now, hon Trollip, is that he has defined himself outside the changes that have occurred in the Defence Force. In fact, if I had been in his position, I would have made sure that I claimed credit for the changes that have taken place in the Defence Force. But, very clearly now, for all of South Africa to know, he was sleeping right through these changes as they happened.
The report will now undergo the normal process of being submitted to Cabinet - I've made a request to the President to make sure that it can serve in Cabinet at the earliest possible time. Then it will be handed over to the Speaker of the National Assembly. As I have stated before, Parliament will have an opportunity to read the recommendations emanating from this report. I commend the report.
I would, finally, like to thank those members of the portfolio committee who co-operated with the commission. I'd like to thank the members of the SANDF who made the work of the commission possible. I'd like to thank the Chief of the Defence Force, who made it possible for us to get this report today. Hon Deputy Speaker, thank you very much for this opportunity. [Applause.
Mr D J MAYNIER: Speaker, I was not furnished with a copy of the Minister's statement and for that reason it is difficult to provide a comprehensive response to the announcement in Parliament this afternoon.
However, let me begin by welcoming the announcement made by the hon Minister of Defence and Military Veterans that she has now received a copy of the final report of the Interim National Defence Force Service Commission, and that the report will be fast-tracked through Cabinet and tabled in Parliament at the earliest opportunity. This, I am sure all members of the House will agree, is very welcome news indeed.
I would like to thank Judge Ronnie Bosielo, who headed up the commission, as well as all members of the commission, for their hard work in preparing the final report of the Interim National Defence Force Service Commission.
We also owe a special debt of gratitude to our colleagues, the hon Bantu Holomisa, the hon Hlengiwe Mgabadeli and the hon Pieter Groenewald, who were members of the commission, for their contribution to the final report of the Interim National Defence Force Service Commission. I hope that when we look back, the work of the commission will be a turning point in the history of our Defence Force.
Speaker, the events surrounding the Interim National Defence Force Service Commission triggered an almost unprecedented political battle between the executive and the legislature. Today's announcement goes some way, I believe, toward digging the hon Minister out of the parliamentary quagmire she finds herself bogged down in.
But the whole question of the interim reports of the Interim National Defence Force Service Commission remains. One of the many reasons why the Minister refused to make the interim reports available was that there was no link between the interim reports and the Defence Amendment Bill. But the fact is that there is a link between the interim reports and the Defence Amendment Bill.
The primary objective of the Defence Amendment Bill was to establish a permanent National Defence Force Service Commission. And what does one find when one reads the interim reports One finds that the interim reports themselves recommend the establishment of a permanent National Defence Force Service Commission; several pages of the interim reports are devoted to recommendations covering the appointment, terms of reference, functions, staffing, and reporting responsibilities of the National Defence Force Service Commission. [Interjections.?
The MINISTER OF DEFENCE AND MILITARY VETERANS: Am I allowed to put a point of order?
The DEPUTY SPEAKER: Do you have a point of order, ma'am?
The MINISTER OF DEFENCE AND MILITARY VETERANS: Yes.
The DEPUTY SPEAKER: Hon member, will you sit down please There is a point of order?
The MINISTER OF DEFENCE AND MILITARY VETERANS: Deputy Speaker, on a point of order: The hon member is not allowed to mislead Parliament. The commission was accepted by Cabinet. It has nothing to do with what you are talking about. That is for the record. Cabinet accepted it in August.
The CHIEF WHIP OF THE OPPOSITION: Madam Chair, on a point of order: This is not a point of order.
The DEPUTY SPEAKER: Continue, hon member.
Mr D J MAYNIER: And what does one find when one reads these interim reports This is the clincher! One finds that the interim report itself contains the Defence Amendment Bill?
At some point the hon Minister is going to have to explain how it is that an interim report, which contains a Draft Defence Amendment Bill, is not linked to the Defence Amendment Bill In my view, the hon Minister owes this House an apology - and I choose my words carefully - for not providing all the relevant information to this House. I thank you. [Applause.?
Mna L J TOLO: Mohlomphegi Motlatša Seboledi sa Ngwako, go bolela nnete re a thaba lehono go kwa dipoelo ka bokopana go tšwa go Sehlophatšhomo se se dirilego mmereko. Seo ke nyakago go se laetša ke se, bengbaka. Go na le mangwalo a mararo ao ke a swerego. Lengwalo le lengwe ke la Tona, le lengwe ke la Seboledi gomme le lengwe ke la Bapela. Lengwalo la Tona ga le kwane le la Seboledi. Mo lengwalong la gagwe, Tona o laeditše gore Molaokakanywa wa Phetošo le Lekgotlatšhomo ga di amane. O laeditše gape gore o be a re kgopetše gore re tle re thušane, fela a lemoga gore ga re na bokgoni. Bjale, go bolela nnete Tona o tšea ke maikutlo. Rena re le maloko a ANC a photefolio komiti re be re kwana ka dikgopolo. Yo a bego a re swarišitše bothata kudu ke Tona.
Go ya ka polelo yeo e bolelwago ke mohlomphegi wa DA, Seboledi se ntšhitše lengwalo la go re fetola. Seboledi se laeditše gore ka di31 tša Agostose 2010, Tona o tiišitše gore pego le Molaokakanywa wa Phetošo ga di amane. Bjale, go laetša gore di a amana, ke rena ba re bolela ka tšona.
Rena re le ba Cope re re Tona o swanetše go lemoga gore Kgoro ya tša Tšhireletšo le Bagale ba Sešole ga se ya gagwe a le noši, eupša ke ya rena kamoka ga rena. Re na le maikarabelo go yona kamoka ga rena.
Tona o swanetše go ithuta gore a se tšee ke maikutlo. Ge ke be ke na le sebaka, ke be ke tla bala lengwalo le, bengbaka; o a lwa. Gape re duma gore Tona a lemoge gabotse gore [Tšhwahlelo.] [Nako e fedile.] (Translation of Sepedi speech follows.
Mr L J TOLO: Hon Deputy Speaker, we are glad to hear a brief report from the members of the interim commission. I have three letters with me and they are from the Minister of Defence and Military Veterans, the Speaker and the hon Bapela. The contents of the letter from the Minister do not correspond with the contents of the letter from the Speaker. The Minister indicated in her letter that there is no link between the reports of the interim commission and the Defence Amendment Bill. She further indicated that she wanted us to work together but we could not. We shared the same ideas as ANC members in the portfolio committee. The Minister was the only one who disagreed.
According to the hon member from the DA, the Speaker indicated in his letter that on 31 August 2010, the Minister made it clear that there is no link between the reports of the interim commission and the Defence Amendment Bill. But there is a link between them, hence we are now deliberating on them.
The members of Cope want to make the Minister aware that the Department of Defence and Military Veterans does not belong to her alone but to all of us. We are all responsible for it.
The Minister has to learn to be co-operative. I would read this letter if I had enough time; she denies the link. We want the Minister to be aware that [Interjections.] [Time expired.
Mnu V B NDLOVU: Sekela Somlomo neNdlu ehloniphekile, okokuqala, kufuneka ngithokoze ukuthi umhlonishwa uNgqongqoshe, ukwazile ukuthi azoma lapha azokhuluma ngombiko esingakawucoshi. Kodwa ngoba useshilo ukuthi sizowucosha umbiko ngoba usawudlulisele kuMongameli. Ngiyethemba ukuthi sizowucosha masishane.
Okwesibili, lo mbiko sekukhulunywe kakhulu ngawo, kube kukhuluma abantu abangakaze bawubone. Mina angikaze ngawubona-ke, angifuni ukukhuluma ngento engingakaze ngiyibone.[Ihlombe.] Manje mhlawumbe Somlomo bekungakuhle ukuthi ngelinye ilanga sike sixoxe ngalo mbiko uma sengiwubonile nami, ngoba lokukhuluma lokhu sekwenze ukuthi kube khona umugqa phakathi kukaKhongolose nabe-DA [Uhleko.] bese kuba ngathithi abaphakathi nendawo bakhuluma ngoba bengazi ukuthi bafuna ukuthini.
Kanti okuseqinisweni kukhona la kuthiwa ngokomthetho ungakhulumi ngento ongazange uyibone. Manje bengicela Somlomo, ukuthi lo mbiko njengoba uzothulwa la namhlanje, kusewumlomo nje kaNgqongqoshe. Siyawufuna umbiko uzothulwa ngokusemthethweni ukuze sikwazi ukuxoxa ngawo sesiwufundile. Kulapho-ke la sizokhuluma khona. Angithokoze.[Ihlombe.] (Translation of isiZulu speech follows.
Mr V B NLDOVU: Deputy Speaker and this august House, firstly, I am grateful that the hon Minister managed to come here and speak about the report we have not received yet. But because she said we will be getting the report, as she had forwarded it to the President, I believe we will receive it soon.
Secondly, a lot has been said about this report by the people who have not seen it. I have not seen it; I do not want to talk about something that I have not seen. [Applause.] Speaker, it might be better for us to debate this report some other time once we have received it, because these talks have caused a division between the ANC and the DA [Laughter.] which makes those who are in between look like they do not know what they want to say.
In actual fact, by law one should not talk about something one did not see. My request, Speaker, is that since this report is going to be verbally delivered here today by the Minister, we want the report to be formally delivered so that we can debate it after we have read it. Then we can talk. Thank you. [Applause.
Mr B H HOLOMISA: Deputy Speaker, hon Minister and hon members, it was a privilege to have been invited to render my free services to the interim commission. A special word of thanks goes to my fellow commissioners, and our chairperson Judge Bosielo in particular, for his leadership in the past year. May this report, when it is tabled here, serve as the basis upon which to build a turnaround strategy for the S A National Defence Force, SANDF to restore its image and dignity. This will allow the SANDF to recapture lost ground.
Finally, once this report is adopted, one envisions a process of the Department of Defence, DoD, holding a bosberaad to discuss the report. Out of that we hope that there will be a clear action plan determining who will do what and according to what deadlines. I thank you. [Applause.
Mnr P J GROENEWALD: Agb Adjunkspeaker, die agb Tolo van Cope is korrek as hy sê dat die Suid-Afrikaanse Nasionale Weermag aan ons almal behoort. Dit is ook uit daardie perspektief dat my party besluit het om my beskikbaar te stel om op hierdie kommissie te dien.
Ek wil vir die agb Minister bedank. Ek dink ons kon 'n bydrae maak. Ek wil die Huis verseker dat hierdie verslag 'n objektiewe verslag is, sonder vooroordeel en dit is ook 'n kritiese verslag wat in belang is van al ons lede in die Suid-Afrikaanse Nasionale Weermag.
Ek wil ook van hierdie geleentheid gebruik maak om die voorsitter, regter Bosielo, te bedank en ook vir al die ander kommissielede. Dit was 'n voorreg om saam met hulle op so 'n kommissie te dien en om op te tree in belang van ons mense. Ek wil vir die agb Minister en die Kabinet sê, as u hierdie verslag aanvaar soos hy is en die aanbevelings in die praktyk deurvoer, sal ons 'n professionele en 'n baie beter Suid-Afrikaanse Nasionale Weermag hê. Ek dank u. (Translation of Afrikaans speech follows.
Mr P J GROENEWALD: Hon Deputy Speaker, the hon Tolo of Cope is correct when he says that the South African National Defence Force belongs to all of us. It is also from this perspective that my party decided to release me to serve on this commission.
I would like to thank the hon Minister. I am of the opinion that we were able to make a contribution. I would like to assure the House that this report is an objective report, without prejudice and that it is also a critical report that is to the benefit of all our members in the South African National Defence Force.
I would also like to use this opportunity to thank the chairperson, Judge Bosielo, and all the other members of the commission as well. It was a privilege to serve on such a commission with them and to be able to act in the interests of our people. I would like to say to the hon Minister and the Cabinet, should you accept this report as it stands and carry through the recommendations in practice we would have a professional and a much improved South African National Defence Force. Thank you.
Mr K J DIKOBO: Deputy Speaker, in Azapo's book soldiers do not go on strike or take part in industrial action. If they do, we call it mutiny. The country was shocked to see what some members of the Defence Force did at the Union Buildings. Many people, including the Minister, condemned them and called them names.
As Azapo we know that some of those soldiers previously served in the armed forces of the different components of the liberation movement. They did so without pay and at great risk to personal security and life. They sacrificed their youth and life because of their love for their people and country. They are not greedy or ill-disciplined. They are desperate. They cannot make ends meet. They must be paid living wages and their working conditions must be improved. We owe it to them.
It is our hope and prayer that this report will help us to address the needs of our armed forces so that we can restore their dignity. Thank you very much. [Applause.
Mr S N SWART: Madam Deputy Speaker and hon Minister, the ACDP welcomes the report of the interim commission and we look forward to further engaging with the specific findings and recommendations of this report.
It is, however, significant, as the hon Minister has pointed out, that this commission was intended before the ill-disciplined and unruly action of certain members when they demonstrated outside the Union Buildings. Such persons, we must emphasise, can claim no credit for today's report. We need to make that very clear.
The responsibility of the national defence force must cut across party-political lines. This is clearly illustrated by the fact that members of the opposition served on the commission and we as an opposition party will also contribute as we consider the recommendations of this report. We trust that the recommendations will address the frustrations of serving members concerning benefits, and living and working conditions, and will serve to prevent the further loss of skilled personnel so that we can have a professional SA National Defence Force. I thank you.
Mr M S BOOI: Deputy Speaker, I would like to thank the hon Minister for being able to come back to Parliament and make a presentation on this thorny issue. I must say in earnest that we are floundering in the information that is being thrown around, which is actually a thumb-suck. Sometimes this hurts and demoralises the soldiers, and we don't understand where the report has come from.
In the portfolio committee we were very emphatic that the report had to come through the Ministry, and the Ministry would then present it to Cabinet, and it would come to Parliament. We have never been able to conceptualise how that type of report comes as it does. When it came to our attention that there was a report that was being thrown around in the streets that was when it came to our portfolio committee. That was when unions were saying that there was a report.
Nobody knows the essence and contents of the report. The Speaker directed us, saying that there was no link between the Bill that we had to prepare and what was in the report. He was the only person in Parliament who could give us the confidence in the work that we were doing. We thank the Speaker sincerely for being able to give us direction.
The manner in which you played opposition politics and narrated your stories has nothing to do with the portfolio committee. At no stage did we commit ourselves to what the opposition member always said and explained in the papers, saying that there was a report. In terms of our regulations, performance and how we did our work in the portfolio committee, at no stage did we ever find that link.
You were correct when you said it was a misleading act to come to Parliament and tell us that there was a report, when nothing was ever presented officially to the institution of Parliament. It would be quite a disaster for us as a portfolio committee to say that that report was ever placed. It has always been about gossip and rumours. I can honestly say that none of the rumours and the gossip were correct.
As I stand here on behalf of the portfolio committee to thank the Interim National Defence Force Service Commission for the work that they have done, they and nobody else have ever been able to place the report. Today we have stood again for matters of principle and the following of procedure, that they will come to the institution and present it. They have to come and tell us what is happening.
We have not played at the level of gossip and rumours that have been spread around in regard to the issue. As the portfolio committee, at this particular moment, without listening, narrating and playing to enthusiasms about what the opposition leader said, we feel that the matter stands firm that there is no report. I vouch for what I am saying, and I stand by the oaths that I have taken in Parliament, that there is no report. You will be misleading Parliament by coming to claim that there is a report that has been placed somewhere. It has been rumours.
We told the South African National Defence Union, Sandu, to present the report that they had to us. However, the report that they had was gained by theft. We are saying to the union that the report they had was gained by theft. The portfolio committee agreed that the union had stolen the report from somewhere but it did not know where. As a matter of fact, that is what the records of our portfolio committee say: The union went and stole that report. Who they got it from and what the contents of that report are has never been deliberated before the portfolio committee. Again, it would be misleading to say that that report has ever been presented. Under my leadership, according to my knowledge, no report has ever been presented to the portfolio committee.
It is really misleading to Parliament when an hon member claims things - and tries to lead by all his activities and dancing - that there were links. We have finished the Bill and nobody has ever been able to prove the link and show us what was happening.
Let me thank the interim commission for the good work that they have done, and the commitment that they have shown in the way they have conducted themselves. The members have been able to stick to the mandate that they have been provided with. The level of transparency with which you have conducted this particular development, Minister, has been very valuable. You were the first one to come to Parliament and introduce the mixture of the opposition, our party and different people who would be able to take this responsibility. You have done very well and have been able to keep us informed.
If those members had gone against the discipline that you provided them with when dealing with issues of confidentiality, I must say that hon Holomisa, hon Groenewald and even hon Ntsiki were not able to break that form of discipline. We must really thank them for the way they conducted themselves. Even in times when we were very pressured and we feel that there was the responsibility of trying to confide and tell us what was going on in the report itself, they maintained that discipline. Hon members, we really want to thank you. You have done a very good job. From your own experience you have heard us telling you in the committee that you have had a variety of experiences which have been able to make their way into the report itself. Therefore, we would like to thank you very much.
You know, hon Holomisa, if I can repeat what I said to you at some stage when I met you, your experience is very valuable. Nobody can tell us that you have never gone through building up a defence. We have also told hon Groenewald that his experience has added a lot of value to the report that has come out.
I must say, Minister, we have heard members speaking today and we have had a reflection of the navy from them. People from the navy know it better and are able to tell you the truth about it, show it as in a mirror. One of our members has been trained there. They would have a better understanding of how a navy functions. We have heard a very good presentation from the landward section today. There is the issue of the combat-readiness which never suffices. Those members who are there and are committed to our country have today been able to stand firm and explain to hon members about the conduct and the challenges that the SA National Defence Force, SANDF, is facing in regard to its landward, air force and maritime areas.
Tomorrow we are taking an observation from the Air Force and one from Health. Both sectors and components have an influence on the combat-readiness of the SANDF. They have been able to present to us, unambiguously, the progress that has been made within the SANDF. I thought that hon members would appreciate that type of development because it speaks to our patriotism and how we should conduct ourselves, based on the information regarding the institution which has been provided.
Again, we would like to thank General Door for the way he conducted himself and also the Admiral for being able to give the navy a proper report on how we can look at the institution again. There is a lot of progress that has been made. We are quite confident that the improvements that we have put in place and the commission itself will be able to improve the conduct of the SANDF.
The Interim National Defence Force Service Commission's very experienced people have not come just to play games. They have made it very clear that they are good South Africans and they have taken on other responsibilities outside of their own responsibilities. When the Minister called upon them to come and help with giving South Africans a better view of the type of defence that should be built and the type of capacity that there should be, we must say that they were able to comply with that. They have been able to perform like honourable and professional people, as has been expected of them. Today, it has been able to put the matter that we keep on speculating on to rest.
We have been very, very clear in the portfolio committee, even in the recent past, and we are very emphatic about this, that what one hon member says to the media is not on behalf of the portfolio committee. Most of the time, that person speaks on behalf of himself, and not the institution itself, the portfolio committee. The portfolio committee does not have any other spokesperson. If there are issues that have to be raised and brought to the public, I do it in a very transparent way. I allow the media to participate in the institution and I have never understood at what stage hon members feel that it has to happen in a totally different way.
Nobody has an input in this matter. In the ANC appointments are made. There is no stage when I will come to you and solicit you to tell me what to do, or how our people should be appointed in the organisation. In that regard I am fairly well informed. I am telling you that there has been a misleading of Parliament and the broad public regarding how we handle reports within parliamentary precincts. That failure has been proven again today, even at the stage when the Minister has come and informed the institution about how she has handled the report.
Those things were all said in public, and they have been said quite a lot of times to the different members, in order for them to be able to understand. I must say that that was a failure of our own system. It is when individuals take it upon themselves to think that they are above the system itself. I thank you. [Applause.
Mr H T MAGAMA: Deputy Speaker, the Portfolio Committee on International Relations recommends that the House approve the ratification of the African Charter on Democracy, Elections and Governance.
This is a clear and deliberate decision by the government of the Republic of South Africa to be amongst the countries taking the lead on the continent, demonstrating our commitment to good governance, popular participation, respect for the rule of law and the promotion and protection of human rights.
The charter seeks to entrench and consolidate on the continent a political culture of change of power through the holding of regular elections which are free, fair and transparent, and which are conducted by a competent, independent, impartial, national electoral body. It thus provides for the enhancement of the role of election observation and monitoring in contributing towards the credibility of elections.
South Africa has proudly put in place all the necessary institutions for the effective implementation of this charter. Its ratification, therefore, will confirm our country's resolve to lead by example and encourage fellow African countries to do the same and embrace this instrument. This instrument has the potential to address the political and socioeconomic situation in Africa by deepening peace and security which, by themselves, constitute the necessary preconditions for development, progress and prosperity in Africa. Thank you. [Applause.
Ms S V KALYAN (DA): Deputy Speaker, the African Charter on Democracy, Elections and Governance was adopted at the 8th Ordinary Session of the AU Assembly of member states of the African Union in January 2007.
The charter was developed as part of the AU's emphasis on promoting democracy and good governance in member states. As such, it has the potential to serve as a guide and reference point for sustained and ongoing political reform on the African continent. It also places emphasis on women and youth.
However, it must be ratified by 15 states before it takes effect. In July 2010 only five states had ratified it. South Africa was not one of them, which is most unfortunate.
The Pan-African Parliament, PAP, was given the responsibility through article 45 of the charter to promote it. It was thus decided to launch the "11 Before 2011" campaign in order to get as many countries as possible to ratify it ahead of the AU's Heads of States Summit in 2011.
As the Pan-African Parliament delegate to the Central Africa regional meeting in early September, I undertook to write to the Minister and was delighted when she referred the charter to the portfolio committee. South Africa will be the second Southern African Development Community, SADC, country to ratify the charter after Lesotho. We should have been the first. As the host country of the Pan-African Parliament, we need to lead by example and promote democracy. Nevertheless, we support the charter fully and the next step will be to encourage compliance by the member states.
Accession to the African Charter on Democracy, Elections and Governance approved.
Reports accordingly adopted.
The DEPUTY SPEAKER: Order! I wish to acknowledge the presence in the gallery of Mr Kumar, the Consul General of India in Cape Town to the Republic of South Africa, as well as Mrs Kumar - you are welcome. [Applause.
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, hon members, on this occasion of the 150th anniversary of the arrival of the Indian community in South Africa, it is fitting that we express ourselves on unity in diversity.
When the Indians arrived in the colony of Natal to work on the sugar cane farms they were, in fact, no different from the African people, who were hunted like animals, captured and forcibly transported to the Americas to work on the farms, in households and in the construction industries that produced the great civilisations of Latin and North America.
These Indians, like African slaves and workers in America, came from diverse ethnic and cultural backgrounds, but were united by their spiritual traditions which nourished their self-respect, self-worth and self-esteem, culture of self-help and self-reliance, and a sense of development and progress. These values sustained their human dignity in adversity and aroused the disposition to associate with one another for mutual benefit.
While working as slaves on sugar cane farms and in other industries the Indians, like Africans in the diaspora, rediscovered their spiritual traditions and harnessed them for spiritual growth and development. Thus they conducted their lives according to sound moral and ethical principles, despite the adverse conditions in which they lived and worked. The arrival of Mahatma Gandhi provided them with a spiritual and political leader who enriched all South Africans. We should note, in particular, the principle of nonviolent struggle that Gandhi shared with Martin Luther King Junior.
The social and economic advancement of Indians in South Africa, like that of Africans in the diaspora, proves correct the wise words of our icon, Nelson Rolihlahla Mandela, who said that social transformation cannot be achieved without spiritual transformation. The Indian community built its own temples, schools, mosques and cultural schools, through which they preserved and practised their diverse cultures, religions and languages.
Similarly, Africans in the diaspora rediscovered their heliocentric, that is, sun-centred, spiritual traditions which were taught by the African Sage Khem or Thoth Hermes. They built lodges for the preservation and propagation of their solar culture and religion. They practised this solar culture and religion in the Rosicrucian and Masonic Lodges, which could be traced back to the land of Khem, including ancient Ethiopia and Egypt.
The devotees of Karaism, which is a sun-centred religion or Hermeticism, collaborated with Ethiopian Christians who had seceded from colonial churches and established their own churches and schools. These institutions, like those of the Hindus and Muslims in South Africa, laid the foundations for nation-building and social cohesion in these communities.
The nationalist spirit kindled by these spiritual traditions and the working-class consciousness led to the formation of the Natal Indian Congress in 1894, and the Native Congresses of the four South African colonies at the beginning of the 20th century. It could therefore be said that spiritual traditions and worker consciousness catalysed the formation of nationalist organisations which became motive forces for the liberation of South Africa. The formation of the South African Native National Congress, SANNC, in 1912, renamed the African National Congress in 1923 and the South African Indian Congress, SAIC, was the product of spiritual and worker consciousness. The pact of the three doctors, Xuma, Dadoo and Naicker in the 1940s was the product of these people's movements.
It could be said, therefore, that moral and ethical values have always guided the founders of our nation, such as John Langalibalele Dube, Mahatma Gandhi and Dr Abdullah Abdurahman who founded the African People's Organisation, APO, in 1902. Abdurahman was a coloured nationalist who used the words African and coloured interchangeably to include both black and coloured Africans, thereby transcending present-day discriminatory differentiation between Africans and coloureds which borders on a new form of racism.
The proliferation of incidents of moral degeneration, such as alcoholism, drug addiction, the tragic killing of others including foreign guests, and the abuse of women and children such as drugging and raping of girl children at schools, shows that cohesive nations cannot be built without value systems. Provision of social services including water, electricity, and social grants without a value system underpinning them cannot produce self-respecting, cohesive, caring and sustainable communities. Human development has both spiritual and material aspects.
Politicians alone cannot achieve both; they need partnerships with faith communities, including Hindus, Muslims, Karaites and devotees of African religion who were marginalised under apartheid colonialism.
In our work as public representatives, community workers and leaders we must learn from the Indian community, the African diaspora and the founders of our nation, that social transformation cannot be achieved without spiritual transformation. Regardless of our cultural, religious and linguistic diversity there is a common thread that makes all of us one in diversity.
"Motho ke motho ka batho" is the maxim that says "I am through others" or "I am because we are". This "botho" or "ubuntu" philosophy was first echoed in 1892 by John Langalibalele Dube, a founding President of the ANC, in his public lecture titled, "Upon my Native Land". Dube foretold the birth of a new Africa that would be a spiritual, humane and caring society.
These values were embraced by Dr Pixley ka Isaka Seme in his 1905 oration titled, "The Regeneration of Africa". Seme highlighted the importance of cultural heritage in nation-building, when he called for the creation of a unique civilisation for Africa and Africans. In other words, nation-building and heritage development could not be separated.
In his 1921 public lecture titled, "We are not Political Children", Rev Z R Mahabane, third President of the ANC, observed that Africans had been degraded and dehumanised, and he made the recovery of African humanity a prerequisite for the recovery of the humanity of all South Africans, both black and white. Mahabane planted the seeds of nonracialism which found expression in the Bill of Rights adopted by the ANC in 1923. The opening paragraphs of this Bill of Rights asserted the humanity of African people and demanded their right to participate in the economic life of the country.
It is not surprising that in its 2007 Strategy and Tactics document the ANC observed that the dark night of apartheid had been receding and called for a nonracial, nonsexist, united, democratic and prosperous South Africa, in which the value of every citizen is measured by our common humanity - ubuntu or botho.
The adoption of a resolution for the establishment of a committee on nation-building and heritage by this House is a recognition and acknowledgement by the hon members of the House that Parliament has a major role to play in nation-building and heritage development necessary for social cohesion.
The Muslim Ramadan, the Hindu Diwali festival and the African New Year and Rain-Making ceremonies take place around September and October. All these festivals, though not officially recognised are part of the living heritage of these communities and their celebrations serve to cultivate moral and ethical values within them.
The passage of a host of laws which were racially discriminatory evidenced the danger of separating law and morality. These values of a just and caring society should underpin our social and political order to prevent moral degeneration which manifests itself in, inter alia, corruption and related vices.
The establishment of the Parliamentary Interfaith Council by this Parliament recognises and acknowledges the role that faith communities play in the cultivation of moral and ethical values in our society. This council will provide an interface between Parliament and faith communities to ensure that there is no watertight separation between law and morality.
The strict observance of moral and ethical values within the Indian communities offers great lessons to African communities, especially in townships and informal settlements, who lost their cultural heritage under apartheid colonialism. These values are particularly important, in fact, indispensable, for nation-building and social cohesion. The interaction of all our communities, both black and white, is particularly important, as it affords South Africans opportunities to learn from one another, for mutual understanding, tolerance and respect.
The national conference hosted by the National Heritage Council and the South African Departments of Arts and Culture, Social Development, and Education on 31 August 2010 called for the recognition of Ubuntu Day and resolved to launch a campaign for the restoration of Ubuntu values and principles. Given the deepening moral degeneration in our society, such a campaign is long overdue. It is hoped that all faith communities and civil society in general will partner with government, Parliament and legislatures to run the campaign for moral regeneration and in particular the restoration of ubuntu values and principles.
The African Renaissance and Nepad, falling within the tenth strategic objective of Parliament couched as African renewal, advancement and development, should be an umbrella including a moral regeneration programme driven by government, civil society and, in particular, the interfaith movement.
In this regard, the classical Indian and African cultural heritage, which was suppressed under apartheid, could make a great contribution to nation-building and social cohesion. It is hoped that the new committee on nation-building and heritage development will become a parliamentary mechanism for the realisation of an activist parliament and the African Renaissance renewal, advancement and development of the African continent.
As I conclude, hon Deputy Speaker, let me say that what we can learn from the Muslim and Hindu communities is that values cannot be cultivated by a plethora of charters without the necessary cultural institutions to teach these values and integrate them into school programmes and out-of-school programmes. African communities have a lot to learn from the Muslim madrasah schools and Hindu temple schools. The establishment of African cultural heritage centres along similar lines could contribute to moral regeneration, mutual understanding and tolerance, social inclusivity and development of South African and African identity.
Let us take this opportunity, as the ANC in this House, to send warm fraternal greetings to the Indian community on the occasion of the celebration of the 150th anniversary of their arrival in South Africa. My wish is that they will continue to make valuable contributions to building this nation. Thank you. [Applause.
Mrs S V KALYAN: Deputy Speaker, it is indeed a privilege to participate in the debate to mark the 150th anniversary of the arrival of indentured Indian labourers in South Africa. It is an opportunity to honour the memory of unsung heroes and heroines who through blood, sweat and tears contributed to this country we know as home.
The history of how Indian indenture came about is worth repeating. When slavery was abolished, the British needed a new source of labour. The British, being rather creative with words, came up with the term indenture, which in essence meant slavery.
The indentured labour system was introduced by the British as a substitute for "forced labour and slavery".
The indentured Coolies were half slaves, bound over body and soul by 101 inhuman regulations.
The Immigration Department in Natal published a notice in regard to coolies intending to immigrate to Natal. The notice promised that they would be taken good care of and have clothing, food and medication. They would be paid £5 a year and be indentured for five years, after which they could return to India at their own expense, or after 10 years they would get a free passage.
Sadly, many of these promises did not materialise and the reality is that they were herded like animals into the holds of ships and food and water were strictly rationed. Upon landing in Port Natal, they found their white masters harsh. They worked long hours, lived in tin houses and were flogged regularly.
The first ship to leave India was the SS Belvedere, which had 342 persons on board. The first ship to land in South Africa was the SS Truro, which had 340 persons on board. The SS Truro had 101 Hindus, 78 Malabars, 61 Christians, 16 Muslims, one Marathi and a few Rajputs.
The reason for my giving you the breakdown is to illustrate that once on board, they all had to live and eat together and depend on each other. Coming from a country where the caste system dominated and dictated status, this in itself was a huge culture shock. Muslims had to eat nonhalaal food and Brahmin Hindus had to mix with the Dalits, the untouchables. So, the first lesson that we can learn from the indentured Indians is that irrespective of class or caste, we are all equal and need each other to survive.
What I find quite interesting is that when passenger Indians started to arrive in South Africa, the caste system, based on the regional identities, became firmly entrenched, so much so that the term Kalkatias was given to the North Indians and the term Madrasis was given to the South Indians. There was this unspoken convention that Kalkatias and Madrasis married those of their own caste and intermarriage between the two was frowned upon.
This convention persisted well into the 1980s and I speak from personal experience. I am Hindi-speaking. My mom is Maraj from the Brahmin caste by birth. My dad was a Sonar, which is a jeweller. My husband is Gujarati-speaking. His mother is a Kshatriya or a warrior, and his father is a Darjee or a tailor.
When we wanted to get married, we knew we were going to face some difficulties and, boy, did we! If you think politics is rough, try getting two families from different ethnic groups to agree to a marriage. Fortunately, my dad was a good negotiator and we had a happy ending.
While caste was not an issue for the indentured Indians, the term "coolie" was, and many took umbrage. Kuli, spelt k-u-l-i in Tamil, refers to payment for menial work for persons from the lowest levels in the labour market and without customary rights.
The distinct humanity of the indentured individual was, in a single move, appropriated and eliminated the person collapsed into payment.
In India the word is applied to the lowest class, and regarded as a term of approach. Nowadays, the term is seldom used and, if I hear it, I personally don't take offence. In fact, I sent a tray of eats to my colleague on Diwali Day and he sent me an SMS thanking me and saying he had "flattened the driehoek coolie koekies" first. [Laughter.] I burst out laughing, because I knew he meant well.
Nevertheless, despite all the hardships, the indentured Indians endured, and they made their impact on the production of sugar, or "white gold" as it was then referred to.
Coolie Immigration after several years experience is deemed more essential to our prosperity than ever. We certainly could not have boasted that our sugar exports increased four-fold in one year (sic).
Gandhi's memorable ejection from a first-class train is well known and I won't dwell on it, but I would be failing in my duty if I did not focus on his other roles. While in South Africa, he picked up that proposed legislation in Natal in 1894 that would deregister Indians as voters. He gathered 10 000 signatures and forwarded the petition to Lord Ripon, Secretary of State for the Colonies in London, and the law was disallowed.
In August 1894, he got hold of the passenger Indians to found the Natal Indian Congress, which was the first organised challenge to the racist status quo. In 1896, Natal passed the Immigration Restriction Bill and the Dealers' Licence Bill, which effectively denied trading rights to all Indians.
Gandhi's persistence managed to reduce the residential tax for Indians, who chose to remain as free labourers in the colony on expiry of their contract from a punitive £25 to £3.
When he went back to India to fetch his family, he wrote a pamphlet called The Indian Franchise - an Appeal. His intention was to inform the world about the sufferings of Indians in South Africa. The government of Port Natal went berserk and proceeded with legislation to exclude Indians from trading. The Europeans threatened to push every Indian into the sea. In 1913, the Immigrants Regulation Bill classified Indians as prohibited immigrants and they were limited to Natal.
Ghandi published a newspaper called the Indian Opinion. Without this newspaper, the Satyagraha movement would not have been possible. Ghandi's grandson, Satish Dhupelia, says that were Ghandi alive today, he would personally have led the campaign against the Protection of Information Bill, which seeks to curb media freedom.
In 1913 a court judgement ordered that all marriages, except those done according to Christian rites were nullified in South Africa. It reduced the rank of an Indian wife to that of a concubine and the children were deprived of the right to inherit.
This incensed the Indian indentured women and galvanised them into action. Thousands from Natal went to the Transvaal to hold protest meetings. They were arrested, because they had crossed the borders without a permit. Valliammai, a 16-year-old died in detention.
Their sacrifice was not in vain and resulted in the £3 tax being abolished by the Indian Relief Act of 1914 and Hindu and Muslim marriages were also recognised. Today we commemorate their hardships, relive their history, and acknowledge our roots but, at the same time, we claim our space and rights as South Africans.
What lessons can we learn from the indentured Indians Eighty percent chose to remain in South Africa after their indenture was finished. Despite their atrocious conditions and hardships, the strong spirit of determination to succeed prevailed. They built places of worship and schools which still stand as monuments, a testimony to them, and which benefit all of us today. Ghandi said?
We can learn a lot from our Indian brothers and sisters' invaluable contribution to South Africa.
We have gained comfort from their pain and suffering.
One hundred and fifty years later no South African Indian should have any doubts about their identity. We are South Africans. I am a third generation South African of Indian origin. I live in a country where democracy prevails and I can celebrate my mutual identity with freedom. I am proud of my culture and religion and I'm regarded as an equal citizen. As a South African Indian, I have a duty to preserve and protect our age-old sacred cultural, moral and religious values.
On behalf of the DA, I would like to wish all my Muslim friends Eid Mubarak. We all have a link to that first Indian indentured labourer who came to South Africa or, as he is referred to, Coolie No 1, Devaram, and we walk proudly in their footsteps.
Man is made by his belief. As he believes, so he is. [Applause.
Mr M G P LEKOTA: Madam Deputy Speaker, I'm on a weak footing on this subject of celebrating the Indian community in South Africa because of the province from which I come and its history with this community. I'm glad to say, though, that I happily join in with others, knowing that all of us have been part of the struggle that made the Free State also the home of the Indian community, like all others.
Some 150 years ago the first Indian indentured labourers landed on the shores of our country. They were brought to this country because Africans, the original indigenous Africans of this country, were resisting working on the sugar cane fields of Natal as it was known at that time. As a result of this resistance, the subcontinent of India, which had already been subjected to British rule, made it possible for Indians to be imported here as indentured labourers.
It's an interesting bird's-eye view to see that wherever there was resistance to enforced labour, the colonial rulers of our country visited other parts of the world and brought labour here, such as from the East Indies to the Western Cape, or from China to strengthen the working force in the Gauteng gold mines.
We celebrate this particular community - the Indian community - today, and we have to look closely at the contribution they made to our history, and not only to the industrialisation of the country, as elements of labour here. At the same time they immediately joined in the struggle for equality of status - for rights like everybody else. That is particularly important because in 1860, with the founding of the All India Congress - what was then called in India the Indian Congress - the struggle against British imperialism in India started. They brought this to the shores of South Africa, and, in fact, this led directly [Interjections.] - I'm not as small-minded as that. We are celebrating South Africa and we are celebrating the communities here. It has nothing to do with the little things that there are here; it has to do with the value of what the community has done, and I will address that issue.
We want to say that we own this country, its history over the centuries, and we would be less South African if we thought that there were certain parts of the history of this country which belonged only to some and not to all of us - South Africa is for all of us and it will always be so. If anything, that is the kind of South Africa we want to build, a South Africa that is for all of us, in which everybody is South African.
The fact that we may hold different views on this, that or the other does not change that reality. Therefore, I say with pride that the Indian South Africans who arrived at that time made history for all of us. They set a timetable and a programme that has made all of us the product of this country.
So, when they formed the Natal Indian Congress in 1894, they pointed the way to the struggle in the future of a South Africa that was quickly becoming a capitalist society, in which our own great grandparents from the Transkei, the Free State and the North of this country were moving towards Johannesburg to the mines, and to Kimberley. It was Africa's labour force. The working class of South Africa was taking root.
As that was happening, South Africa's urban centres were developing, the townships of Sophiatown and others, which led to the forming of Soweto. The townships of Durban led to uMlazi and with the establishment of those townships South Africa was growing. The township of Chatsworth and others were born as a general movement of the development of the working class in our country. At that time, none of the present political organisations were there, not then. Therefore, we say that if we are to celebrate in full, we must recognise the contributions made by these communities across decades and centuries.
As we began the last century, the 20th century, just after 1910 we saw the Indian community struggling to cross into the Transvaal against a vicious, backward Republic of Afrikaners that did not want them to settle there. A consequence of this was that at Volksrus in 1913 little Valliammai, at the age of 13, was killed as part of that struggle to move into the Transvaal. That explains that it was the success of that struggle that led to the situation that we have today, a settled, very powerful part of the Indian community in the Transvaal.
It's a sad thing that happened in the Free State - there was not sufficient economic development to lure them there in large numbers. It's also a shame that for so long a province like that sustained legislation that denied them the right to make the Free State their home.
We must see both the good things and the backward things that we did to each other in our history, and we must be ashamed that some of the things were done in that way. I say with pride that if the death of little Valliammai inspired the struggle, it was to be reignited much later in 1976 with the death of a little child of 13 years, Hector Pieterson. It was history repeating itself, in different circumstances but at same time generally driving in the same direction.
So, we can take pride in the fact that all of us made equal contributions, and spilled our blood for the same cause. By the way, at the founding of the first liberation organisation in Africa, the African National Congress, an argument arose as to what it was to be called. The delegates who were at that meeting argued from various angles, but they said that the name, whatever it was, had to include the word "congress" because they were so inspired by the performance of the Natal Indian Congress that they wanted an organisation that would be capable of doing what the Natal Indian Congress had already demonstrated, which was positive. That is the history of our country.
The DEPUTY SPEAKER: Hon Lekota, as this is very important political education, I've given you two minutes extra already.
Mr M G P LEKOTA: Madam Deputy Speaker, I would like to fast-forward in history because I want to say that the Indian [Interjections.
The DEPUTY SPEAKER: Order!
Mr M G P LEKOTA: I would like to say that the contribution of the Indian community in our country was not limited only to struggle issues. The Indian cuisine that has now become part of and characteristic of our culture came with them.
In the area of sport, the Indian community has made incredible history. I want to recall that fact in regard to sports such as hockey and golf. Let me remind you of this, and this Parliament must take note of it. In 1964 Sewsunker "Papwa" Sewgolum, a self-taught Indian who did not hold a golf stick according to what was taught in academies and so on, competed against Gary Player and others, and he beat them! But, let me tell you something that all of us must be ashamed of. When he won and the prizes were to be given out, because of the Separate Amenities Act he was not allowed to go into the club to receive his trophy; he was made to stand outside and it was raining. He was given his trophy there in the rain, with somebody holding an umbrella over him! But, he had won the championship! I see that we honour Gary Player, who was honoured by the old order; fine, I also honour him. But I do think that we must honour Papwa Sewgolum for the example he set our country. I thank you, but I say, "Halala [Congratulations], the Indian community! Halala! [Congratulations!]" [Applause.
The DEPUTY SPEAKER: Halala! [Congratulations!] Thank you, hon members. No, hon member, I took into account the fact that hon Lekota has been here since August. Since this is the last week, he really wants to put in everything for this term now! So please excuse him. [Laughter.
Mr M J ELLIS: Madam Deputy Speaker, I think the hon Lekota has taught us all a lesson though, that if we want extra time we have to talk very loudly into the microphone and you get to give us extra time! [Laughter.
The DEPUTY SPEAKER: You won't succeed in doing that!
Mr N SINGH: Deputy Speaker, I think hon Lekota certainly scored a hole-in-one with his last suggestion. [Laughter.
Hon Deputy Speaker, it is a great honour for me to pay tribute today to the first Indians to arrive on South African shores exactly 150 years ago, on 16 November 1860. Amongst those I honour today is my grandfather who, as a 23-year-old, arrived on South Africa's shores from North India on 14 April 1897, when he disembarked from a ship called the SS Umzinto. Ironically, uMzinto is still in the area where I reside today.
The contribution of my grandfather and the many other Indian migrants between 1860 and 1911 is well documented but, I fear, the contribution of the Indian community to our country has not yet been fully assessed and not fully appreciated.
Amongst our country's unsung heroes and heroines are undoubtedly the first pilgrims from India who landed on our shores on board the SS Truro. The Indian migrants came searching for greener pastures, but for many these were the sugar cane fields of KwaZulu-Natal. My grandfather too found employment in this industry, and as a young man made a living working for a sugar cane company in Port Shepstone.
History records that from the many trials and tribulations of the Indian migrants emerged as many triumphs, and a sense of purpose too. Indian people lived cheek by jowl with their African brothers and sisters until 1966, when the Group Areas Act, which separated all South Africans, came into effect.
But, this did not dampen the fighting spirit of the Indian people. It was the South African Indian community who invested their originally very scarce resources in the education of their children and the upliftment of their social and economic conditions, so that each subsequent generation could surpass their father's one, not only in terms of economic prosperity, but also in terms of education, knowledge and awareness. This led to the establishment of almost 400 community-built schools, mainly in KwaZulu-Natal.
Deputy Speaker, the arrival of our Indian brothers and sisters in South Africa also led to a powerful relationship between India and South Africa. Today, we laud the role of India in shaping the political landscape of South Africa. India has left indelible imprints on the human race over the course of centuries. Today, India is not only a rising 21st century superpower, but the pace of change in the world's largest democracy, with its vibrant and open society, is simply inspiring.
History records that we - South Africa and India - share a common past. Both of our countries were subjected to occupation by British imperialists, and our hardships and experiences during our colonial periods bear striking resemblances. I am proud that South Africa and India's special relationship was forged in the struggle against racial oppression and discrimination.
But, despite the commendable relationship between our two countries, the fact remains that, 150 years after the arrival of the first Indians to our shores, many challenges still remain for South Africa's Indian community.
The perception that all Indian people are rich businessmen and women is false, and has created, in my opinion, the myth that there are no poor Indians in South Africa. This is simply not true. A quick tour around KwaZulu-Natal, in particular, will reveal that some of the poorest inhabitants of KwaZulu-Natal are, in fact, people of Indian origin. It is with this in mind that I believe that there is an urgent need for government and NGOs to do more to assist those communities to access housing and other basic services.
In addition, clearly not enough has been done to preserve and honour the culture, religion and traditions of the Indian community. But, our constitutional imperatives are a great step forward. Currently, the state broadcaster - and I'm glad that the Minister of Communication will be participating in this debate - only flights 102 TV programmes of interest to the community per week, while there has been no concerted effort on the part of government to promote Eastern languages. More schools, for example, could offer Eastern languages as part of the curriculum. The issue of equal job opportunities for young graduates is also a matter of concern.
It is my firm belief that it is important that we take advantage of this moment in history to ensure the lasting and sustainable legacy of the community. There have been many calls for national monuments like at Curries Fountain in Durban and the Durban market, similar to the Afrikaner Voortrekker Monument.
Professor Ashwin Desai, an author, suggests that such a centre, like a memory bank or culture centre, should be constructed to bring together into a central place a collection of photographs and artefacts of the history of South Africans of Indian descent. Sadly, the only centre in Durban, the Durban Documentation Centre, was closed down recently.
Curry and rice and bunny chows are today two of KwaZulu-Natal's, and indeed South Africa's, most favourite dishes, but the legacy of the Indian community of South Africa is far greater than that of food alone. South Africans of Indian descent have greatly enriched our nation, especially so the province of KwaZulu-Natal.
Simply and plainly put, without the blood, sweat, suffering and toil of the people of the Truro and the many more Indians who followed them, South Africa would not be what it is today and would not enjoy the levels of prosperity, development and stability which we now have, and which, albeit far below our intended goals and aspirations, are nonetheless superior to those enjoyed anywhere else in sub-Saharan Africa.
I also want to wish members of the Muslim community Eid Mubarak for tomorrow.
We all know that when you speak to an Indian he says, "Nothing for nothing," because nothing does come for nothing. I stand here today as a proud South African of the IFP, and also as a person who is proud of my heritage, roots and culture. Thank you very much, Deputy Speaker. [Applause.
Mr J J MC GLUWA: Deputy Speaker, as we gather today to celebrate the arrival of Indians in South Africa 150 years ago, allow me to pay tribute to the contributions made by the Indian community to all forms of our nation's development.
On this day 150 years ago, Indians arrived on the shores of Durban in various ships. They were brought here for the sole purpose of working as slaves on the sugar cane fields of KwaZulu-Natal.
I doubt that their colonial masters had any idea that within a short space of time the very slaves they had imported would become wise and successful business people. Less than three decades later, many Indians ventured out from being cane cutters to being cane growers. Soon, several Indian slaves were successful entrepreneurs in their neighbourhoods. Many of the slaves had the option of returning to their motherland, but instead they remained behind and joined the fight against oppression with their fellow South Africans.
We are especially proud of the role that Indians played in the freedom of our nation. Under the guidance of Mahatma Gandhi, through peaceful protest, they helped change the face of our nation through nonviolent demonstrations.
From the early 1900s onwards the Indian community recognised the evils of apartheid rule and the impact that the inequality was having on their fellow African brothers. It is for this reason that they stood side by side with them in the fight against racial oppression and inequality.
The formation of the Indian Congress was a turning point in this struggle, as the fight against the apartheid regime gathered more support from the international community. But, whilst this formation was Indian in identity, they remain to this very day proudly South African.
On behalf of the ID, I wish to congratulate all Indians in South Africa on the role they played in transforming our country, and the ongoing contribution they make to the development of our nation. I thank you. [Applause.
Mr S Z NTAPANE: Hon Deputy Speaker and hon members, the UDM joins the rest of the House in paying tribute to the Indian people who arrived on our shores 150 years ago.
Since the arrival of those first indentured labourers, they have left an indelible mark on the shape of our history. There can be no denying that people of Indian origin have been inextricably linked to the growth of our country. They have witnessed and experienced the years of colonial rule and the subsequent rise and fall of apartheid.
In that time their identity was reduced to a question of race without regard to the richness of diversity among themselves. During those decades, being an Indian meant being nonwhite and nonblack. This arbitrary and immoral racial classification was the cause of endless suffering and injustice. The former regime also mastered the art of divide and rule and sought to inflame racial animosity between Indian people and people from other racial and cultural groups.
Happily, those days are now behind us. Indian people played a very significant role in bringing about democracy. For instance, one of India's greatest statesmen, Mahatma Gandhi, spent time in South Africa and experienced our oppression at first hand.
Today, we can proudly celebrate the far-reaching role that the descendants of those first indentured labourers have played, not only in politics, but also in sport, culture, medicine, arts and industry. They have been active contributors to the South African nation. We salute their contribution. Without them our rainbow nation would be distinctly less bright and colourful. Thank you, hon Deputy Speaker.
Dr C P MULDER: Hon Deputy Speaker, I believe that if you had given the hon Lekota a further fifteen minutes, he would probably have also lectured us on the founding of another congress. [Laughter.] But he couldn't get to that point. Thank you, therefore. [Laughter.
On behalf of the FF Plus, I would also like to extend a word of congratulations and thanks to our compatriots of Indian origin and descent who are South African citizens for the role that they have played over many years.
I think it is also correct that we look at history from a different angle. Even though it is true that a large majority, or the bulk, of Indians came in 1860, it is also true that it is said that the first person of Indian descent arrived in 1657. This was a lady known as Mooi Ansiela. She was born in north-west India, and arrived with Pieter Kemp on board one of the ships called the Amersfoort. She was an employee or a slave of Jan van Riebeeck. In 1668 she was made a free burgher and she was then allowed to do whatever she wanted in regard to her slavery.
It is also interesting to note that slavery and the whole thing that happened here was in 1860. In the two Boer Republics slavery was abolished in 1854 in terms of their constitutions.
Now, the Chief Whip referred to the whole issue of unity and diversity, and I have also listened to what our colleagues have said today. I remember something from when I was a child. I was brought up on the West Rand in Gauteng, and I remember many Sunday afternoons in the early 1960s when there was not much to do. We would get into our cars and drive to have a look at the beautiful double-storey houses in Azaadville where our Indian compatriots were living.
Today things are different. Today Indians are in terms of the Employment Equity Act and affirmative action considered as black. Things have changed, but the important point I would like to make is this: No minority in a plural society will ever in the long-term survive by claiming credentials through supporting the majority in that sense. What we need in South Africa in terms of the constitutional dispensation is the recognition of the rights of different communities in terms of their cultural and linguistic heritage, and to make provision for that in our constitutional dispensation. That is where your future will lie, not in trying to suck up to any majority, regardless of who that majority may be. Thank you.
Mr S N SWART: Madam Deputy Speaker, the ACDP joins in celebrating the 150th anniversary of the arrival of the Indian community in South Africa, beginning in 1860 with approximately 152 000 [Interjections.] - if I've got time. It began in 1860 with approximately 152 000 Indians coming to Natal between that year and 1911.
Many were made outrageous promises about luxurious living conditions and a better life, whilst others were physically abducted and placed on board ships. Families were torn apart through this process and, as indicated by previous speakers, a five-year contract was offered, renewable after five years with a sweetener of a return ticket.
The conditions on these ships were deplorable, with many succumbing to diseases that spread. When they arrived here, they were subject to a physical examination in a manner very similar to how cattle were examined before they were purchased.
There were no schools, churches or temples in place to allow some degree of normality in their daily existence. Ironically, the first Indian couple that stepped onto South African soil were a Christian couple by the name of Mr and Mrs Devaram.
From humble beginnings the South African Indian community has progressed to a point where, despite small numbers, they are playing a leading role in the sociopolitical and economic life of South Africa. This, against the background of being discriminated against by whites who perceived them as an economic threat during apartheid. Regrettably, the current policy of affirmative action is perceived by many Indians as a means of marginalising them in favour of other previously disadvantaged persons.
How did they then succeed It was by implementing a simple yet highly effective ethos under which they lived, namely a strong focus on education and a solid family value system. This we should all learn from?
The ACDP acknowledges the significant contribution that the South African Indian community has made to the country. They brought colour, spice and dance to South Africa that, it is argued, cannot be replicated by anyone else in the world, except possibly by Indians in India itself.
We in South Africa owe a similar vote of gratitude to the South African Indian community who are first and foremost loyal and dedicated South Africans. I thank you.
Mrs F HAJAIG: Deputy Speaker, comrades and colleagues, the following text is a salute to all women who fought valiantly in our struggle for liberation, and to celebrate the outstanding freedom fighters, especially women of Indian ancestry, who have inspired us with their bravery and commitment in the fight for justice and peace.
Today commemorates the 150-year anniversary of Indians' arriving on South African soil. The first Indians from Madras arrived on the ship the SS Truro on 16 November 1860. On 4 October 1860, the ship SS Belvedere had left Calcutta with 310 passengers. Great Britain had introduced a new system of slavery in the form of indenture to serve the needs of its developing colonial economies. Famine in the north-western province of India contributed to 17 899 people emigrating from Calcutta. On account of severe famine in South India, 428 000 people left from Madras. Between 1860 and 1911, some 152 184 indentured labourers from across India came to South Africa.
The Indians signed a ludicrous statement of contract.
not £10 [Interjections.] it was 10 shillings ... [Interjections.]...
concluding with 14 shillings for the fifth year.
Many died on board the ships due to harsh, unsatisfactory conditions, and those who arrived worked as cheap labour and lived in inhumane conditions completely controlled by their employers.
Later, in the 1870s, the free Indians or so-called "passenger Indians" who paid their own passage to Natal, the majority of whom came from Gujarat as traders, artisans and workers, arrived.
For Indians, the laws treated them as migrants, and it was the intention of the law to discourage them from staying longer in South Africa. One measure was that the colonial government did not provide any schooling for Indian children.
Mohandas Karamchand Gandhi - the Mahatma - a young lawyer educated in India and England, arrived in 1893 to start work in Pretoria on a lawsuit. During his journey from Durban to Pretoria, a white passenger complained about sharing a compartment with an Indian. He was asked to go to the third-class compartment. He refused to do so and was forcibly and unceremoniously thrown out of the train in Pietermaritzburg.
In 1894, a year after Gandhi arrived in South Africa, the Natal Indian Congress, NIC, was founded. Numerous discriminatory laws, harsh taxation and unbearable conditions experienced by both free and indentured Indians continued. The NIC's aim of satyagraha was to improve the rights of Indians in South Africa and to end the practice of indentured labour. The Transvaal Indian Congress, TIC, and Cape Indian Congress, CIC, were later formed. Three years later, in 1919, the South African Indian Congress was born.
The British government rushed the Franchise Bill through Parliament in 1898, followed by two more Bills aimed at passenger Indians, the Immigration Restriction Bill and the Dealers' Licences Bill, curbing migration and trading. The white community obviously saw them as a threat. In 1906, the Transvaal government passed a law making it compulsory for Indians over 8 years of age, children, to carry a pass bearing their thumbprint. This caused outrage among the Indian population. By the end of January 1908, 2 000 Asians had been arrested for failing to register. Eventually Gandhi and the leader of the Chinese population in South Africa, a Mr Leung Quinn, reached an agreement with Jan Smuts, the Transvaal Colonial Secretary, whereby the Act would be repealed if everyone registered voluntarily, but Smuts denied any promises made to Gandhi and, on his way to the Registration Office, was duly assaulted.
Gandhi and members of the NIC and TIC were in and out of prison on an ongoing basis as they led campaigns against unjust laws. In less than a month, 300 Hindus, Muslims, Parsis and Christians became members. Sohrab Rustomjee, Ahmed Cachalia, Ebrahim Asvat, Mohamed Nagdee, Mr P K Naidoo and numerous other leaders were imprisoned. In 1913, Thumbi Naidoo succeeded in mobilising about 5 000 miners to down tools to protest against the â¤3 tax imposed on them.
Unfortunately I have only four minutes left and I would like to recognise the role of Indian women. I would quickly like to say that little is known of their role in the Indian resistance movements, for example, as they fought alongside the men to change the course of history. Only recently did the Indian government honour a young 16-year-old martyr, Valliammai Munuswamy Mudliar for her role as a first-generation freedom fighter alongside Gandhiji, as Mr Lekota, who has left, has said.
Although Indian women have always played an important role in social and communal life, much of their work in households and in their families, supporting their men and children, was unrecognised. It was Gandhi who fought for this dramatic change in the role and status of women in South Africa and India when, at his request, they came out in large numbers from the shelter of their homes. Indian women first embraced the struggle in 1913 by way of an open invitation from the satyagraha association to join men in retaliation for the Searle Judgment which invalidated all non-Christian marriages. All Hindu, Muslim and Zoroastrian marriages were declared null and void. This meant that all Indian married women in South Africa were reduced to the status of concubines while the children were classified illegitimate and deprived of all rights of inheritance, property assets and legal claims.
This was a hugely emotive cause; the very honour of Indian womanhood had been insulted. By engaging in these activities, women broke out of their traditional boundaries and challenged the images of the passive and docile Indian woman and other issues such as the onerous permit system and immigration laws, that is, prohibition of Indians' moving from province to province. It was not so long ago that Indians were not allowed to stay over in the Orange Free State. I remember Chief Justice Ismail Mohammed of the Constitutional Court was not allowed to sleep over while working on a judgement in Bloemfontein.
In the 1920s and 1930s Indian women confined their work to culture and charitable work, but by the beginning of the 1940s, confronted by changing social and economic conditions, Indian women became politically motivated. Both professional and working-class women began to take an active interest in politics. A comparative assessment by the government's Social and Economic Council revealed that 70,6% of Indians, 38,2% of coloureds, 24,8% of Africans and 5,2% of white families were living below the poverty line. That means that 70,6% of Indians as compared to 5,2% of white families lived below the poverty line.
A large number of working-class households were dependent on female breadwinners. During the war, the Communist Party of South Africa, CPSA, sought to mobilise women around food supplies. In 1946, 1 000 Indian demonstrators led by the CPSA engaged in protest marches against food controllers and black marketeers in Durban. Trade union activity also served as a polarising agent as Indian women, especially Hindu and Tamil women, were mainly employed in the clothing, textile and food industries. For example, Rahima Moosa and Fatima Seedat entered politics through their jobs with the food and canning industry. Dr Goonam and Ms H Naidoo, together with NIC members, mediated with management and contracted concessions for Indian workers.
The struggle in India resulted in the imprisonment of Kasturba Gandhi, Sarojini Naidu, Vijaya Lakshmi Pandit and Meera Ben. These women served as role models for activists such as Zainab Asvat, Dr Goonam, Zohra Bhyat, Manuben Sita, Mrs Amina Pahad, Mrs Zubeida Patel, Ms Badat, Mrs R Jinn, Mrs Chella Chetty, Mrs Pillay, Mrs Pather, Mrs Nair, and the list goes on.
The Passive Resistance Campaign 1946 to 1948 involved women from different socioeconomic, religious and linguistic groups. The women who assumed leadership roles in most instances were educated and wealthy, came from politically active families and were victims of racial and gender discrimination. They were in the main predominantly Gujarati-speaking Hindus and Muslims. In Natal, the majority of resisters were Tamil and Telugu-speaking Hindus, mainly descendents of indentured labourers.
Mrs Rathamoney Padayachee was elected the secretary for the 1946 Women's Action Committee Thank you. [Time expired.] [Applause.
Mr R B BHOOLA: Deputy Speaker, the celebration of 150 years of our history has for the first time highlighted for other communities the struggles, the sacrifices and the massacres of indentured labourers. We must not make the mistake of looking only at people after Mahatma Gandhi, because there were other great heroes and heroines of the struggle.
I would like South Africa to know that for 101 years in this country the policy of successive white governments was: "Coolies, go back to India!" In 1961 HF Verwoerd had the courage to stand up in Parliament and say that that policy had been abandoned and that the Indians were now part of the permanent population of South Africa.
One should look at the concerns of the minorities, the concerns of the Indian community. The manner in which policies are applied is hurting them, yet they are South Africans. What we undoubtedly require is Madiba's definition of blacks, meaning Africans, coloureds and Indians. The Indian community are hurt and they are wounded.
What we require is the assurance of the hon President of our country to the Indian community that we will be treated as equal citizens within the spirit of the Constitution, which grants every citizen equality. The time has now arrived for a drastic change in the policies relating to equality and affirmative action. They should be replaced by another formula where there can be the levelling of the playing fields. There is no sense in telling the Prime Minister of India that Indians have made enormous contributions to the country, and that we were doing well, when we are treated as second-class citizens. Stand up in this Chamber and put Dr Verwoerd to shame!
As we continue to commemorate this historic event, let us never forget the incredible contributions that the Indian indentured labourers made in every facet of life.
Happiness is when what you think, what you say, and what you do are in harmony.
The true strength of an Indian is not derived from his physical form, but from his inner spirit. Today let us all commit ourselves to delivering our people from the shackles of poverty, irrespective of race, colour and creed, and march forward with courage, conviction and determination. I thank you and also wish the Muslim community Eid Mubarak for tomorrow. [Applause.
The DEPUTY SPEAKER: I would like to say that we should notice that the hon Bhoola is the only hon member who is always on the dot. If he is given two minutes, it is going to be two minutes or less. Thank you, hon Bhoola. [Applause.
Mr K J DIKOBO: Madam Deputy Speaker, the history and record of the indentured labourers of Indian origin in South Africa are a classic example of how people can defy the odds and rise above their circumstances. Their story can only be compared to that of the Africans who were captured and transported across the Atlantic, and sold as slaves in the Americas.
The comparison is relevant because in our view the difference between indentured labour and slavery is insignificant. Of course, as we tell this story, we are saying very little about those who could have perished on the way, and we think there were many. Those who brought them to South Africa had possibly hoped that they would forever be drawers of water and hewers of wood.
Azapo says they defied the odds, because they have become part and parcel of South Africa. Many of them identified themselves with the oppressed during the struggle for liberation. They rejected the pseudo freedom of the tricameral system, and fought for true and genuine freedom. We thank God that despite the intentions of those who transported them across the seas, we now have successful business people, lawyers, doctors, teachers, sports persons, and so on.
We are paying tribute to them for the role that they have played in bringing about democracy in South Africa. If we had the time and space, we would mention some of them by name. I am paying tribute to one of my political mentors, the late Cde Strini Moodley. We are looking forward to a day when we will refer to these patriots just as South Africans, without any reference to where they came from, just as we do not refer to others as South Africans of German, Dutch, English or Italian descent. Thank you. [Applause.
The MINISTER OF COMMUNICATIONS: Thank you, Madam Deputy Speaker. Hon members, I think the debate today is indeed an historic moment for us. I listened carefully to the responses of the various political parties, and it is outstanding how all of us have come together with a common view in celebrating this historic moment of the 150th anniversary of the arrival of the Indian indentured labour in South Africa. I was struck by the absence of any attempt by the political parties to use this debate to score political points. They have rather paid tribute to the common recognition that all our people are giving to this historic event.
I must say that I was rather surprised that the hon Bhoola from the MF still tried to be a bit of a tiger by bringing in a little bit of politics, when he made comments about the feelings of the Indian people towards the policies of the ruling party, which I did not think was quite true.
The last speaker referred to Strini Moodley and I am reminded of what Strini experienced when he was sitting on the beach in Durban and dipping his feet into the sea, alongside his friend Steve Biko. A white constable came up to Strini and said, "Hey you, what do you think you are doing Don't you know this beach is reserved for whites" Strini looked at Steve Biko and then said, "Steve, tell him - he doesn't know." The policeman looked very puzzled and asked Steve what Strini was talking about. Steve said, "Well, don't you know that this is the Indian Ocean" [Laughter.?
Sumit Chakravartty, in a foreword to a book called Gandhiji's vision of a free South Africa - a collection of articles by Enuga Reddy - said that the establishment of a nonracial, democratic government in South Africa under the leadership of Nelson Mandela - the vision of Gandhi - in a spirit of reconciliation remained a binding source of strength and an inspiration to all South African people.
If we look into the future, is it not a heritage we have to leave to posterity, that all the different races commingle and produce a civilisation that perhaps the world has not yet seen?
In paying a special tribute to the historic contribution of Gandhi and his vision for the future of humanity, President Mandela said in September 1992 that Gandhi was a South African and his memory deserved to be cherished then and in post-apartheid South Africa. We must never lose sight of the fact that the Gandhian philosophy may be a key to human survival in the 21st century.
Connecting Gandhi's contribution to national developments in South Africa, Gandhi repeatedly emphasised until the end of his life that he was both an Indian and a South African. He did not consider himself as belonging to Indian South Africans alone, but to all South Africans. He asserted without any trace of ambiguity that the spirit of Gandhi lived not only in the hearts of Indians struggling against racism and for a nonviolent democratic society, but also in those of Nelson Mandela, Oliver Tambo, Archbishop Tutu, the Rev Beyers Naudé and indeed many others.
Indians of South Africa claim that they have given me to you. I accept that claim. It is perfectly true that whatever service I have been able to render to India, comes from South Africa.
Despite being born in India he, Gandhi, was certainly made in South Africa.
Another feature of the special significance of his influence was the friendship that emerged between Mahatma Gandhi and the Rev John Langalibalele Dube, who was to become the first President General of the ANC. Both men were involved in work for their communities; Gandhi founded the Natal Indian Congress and Rev Dube founded the Natal Native Congress, which was the precursor of the ANC.
Many historians have argued that this friendship and collaboration inspired the joint co-operation between Indians and Africans in the years of the freedom struggle that followed. History also gives credit to the outstanding contribution of Dr Yusuf Dadoo, who focused his attention on the building of an alliance of Indians and Africans as the basis for the widest unity of the people against racism. Dr Dadoo became an architect of the unity of all oppressed people in the struggle to end racist tyranny, so much so that the ANC honoured him in 1955 with the award of the decoration of Isitwalandwe/Seaparankoe.
In his recent state of the nation address, President Zuma stated that our country would mark the 150th anniversary of the arrival of Indians. He affirmed that the celebration provided an opportunity to recognise the important contribution of the Indian community in the fields of business, labour, science, sports, religion and culture, and the achievement and consolidation of our democracy.
From humble beginnings as cane cutters in the sugar cane fields in KwaZulu-Natal to a significant presence in virtually every economic facet of human lives, the Indian community have made an outstanding contribution to the evolution of our democratic society. Today, the sugar industry in South Africa ranks as one of the major manufacturers of sugar and sugar by-products.
Whilst South Africa can boast that it is perhaps with humility, people of Indian origin can also boast of the fact that their labour pioneered this industry. Today, as we celebrate, we also recognise the very perilous circumstances that these pioneers from India faced. So, when we look at the economy today and the sugar industry, viewed against the background of the conditions of work, one sometimes does get angry, but by celebrating their arrival we salute them for having made the contributions that they did even though they lived under circumstances which were like slavery.
One can also not discount the role played by indentured labourers of Indian origin in the transport sector in Natal. Their labour, together with British technology, successfully built the railway network that we have today inherited in our country.
It is in the coal mines and the sugar fields that the seed of modern day trade unionism was born in South Africa. Indian workers formed their own unions, mainly in the sugar industry, and by the 1930s gravitated towards the SA Communist Party. Nonracial industrial unions were formed in the late 1930s with largely Indian leadership. In some ways it is not without significance that Harry Naidoo, the trade unionist, was about the first trade unionist to unionise African workers in the sugar industry.
In 1952, when the Group Areas Act was passed, it was designed to break both the economic and social fabric of people of Indian origin. Notwithstanding all of this, among several activities, the Indian leadership became a central part of evolving the resistance movement in unity with African people and other democrats.
In 1955 the Indian leadership, together with the community, made their mark at Kliptown in their participation in the development of the Freedom Charter at the Congress of the People. Today their presence is evidenced in significant numbers in the professional and commercial stratums in society. They have had significant achievements in the medical, legal and education fields and the Public Service, and indeed in academia. The significance far outweighs their numbers in relation to the size of the population.
They built in the spirit of the pioneers, who built their own churches, schools, temples, mosques and churches, and in the spirit of sacrifice and service. They are also respected and admired for their exceptional entrepreneurial energy and enterprise, and for always being ready to take the gap first.
The history of South Africa's liberation struggle documents the outstanding contributions made by many Indian compatriots to the freedom struggle. Names such as Yusuf Dadoo, Monty Naicker, Dr Goonam, Ahmed Kathrada, George Sewpersadh, Billy Nair, MJ Naidoo and Mewa Ramgobin stand out. In the ANC, the SA Community Party and uMkhonto weSizwe names such as Mac Maharaj, Essop and Aziz Pahad, Laloo Chiba and Ebrahim Ebrahim stand out as legends for the contribution that they have made.
Today, as we mull over the struggles and tribulations of Indians in South Africa, the insights bring home the poignancy of their enslaved exile. Torn from their moorings, through sheer depth of hardship and diligence they put down new roots, turned barren land verdant and metamorphosed into loyal and abiding nationals of their country of adoption.
Indians growing up in Africa have had a rich and challenging life of immigration, indenture and struggle politics. I am a product of this heritage. My forefathers came from the South of India, having left behind a way of life, relations, culture, cuisine, music, language, religion and rich ethic tradition. When Indians left India's shores, mainly for economic reasons, either as indentured labourers or passenger traders, they brought along with them a fearless determination to succeed and take on the character of the country of their adoption while retaining their religious and cultural roots.
I am a living example of this testimony of a proud heritage that my forefathers built for me 150 years ago with their blood, their sweat and their tears. And out of their toil I emerged, having metamorphosed from various historical designations of coolie, ikula, iNdiya, Asiatic, Indian, charra to the pinnacle of my new identity as a fully-fledged South African. [Applause.
I am a unique creation, unlike my counterparts in the rest of Africa. I have a proud heritage of tilling the soil, picking up the garbage, planting the vegetables, sweeping the streets, selling fruit and vegetables in the marketplace, waiting at tables in hotels, working in the coal mines, selling newspapers and driving buses.
Though a victim of apartheid, I have a proud heritage of fighting for justice and being in the vanguard against oppressive regimes with the higher-order principle of nonviolence. Now, after four generations, I can proudly say: Mother Africa has defined me, embraced me and moulded me into this unique product aptly described as "conceived in India but made in South Africa". [Applause.
The annual recommendations of the Independent Commission for the Remuneration of Public Office Bearers in respect of the salaries, allowances and benefits of public office bearers for the fiscal year commencing 1 April 2010 were submitted to Parliament on 11 November 2010 in accordance with section 8(5) of the Independent Commission for the Remuneration of Public Office Bearers Act, 1997 (No 92 of 1997), along with recommendations on the pension and pension benefits of former President K P Motlanthe in terms of section 2(5)(a) of the Remuneration of Public Office Bearers Act, 1998 (No 20 of 1998).
At the request of the Minister of Police, in a letter dated 1 November 2010, the Independent Complaints Directorate Annual Report for 2009-10 [RP243-2010], tabled on 30 September 2010 (ATC, p 2900), is hereby replaced with a reprinted report [RP243-2010] submitted on 13 October 2010, along with Erratum submitted on 5 November 2010.
Referred to the Portfolio Committee on Police for consideration and report.
General Notice No 991 published in Government Gazette No 33660 dated 15 October 2010: Codes of Good Practice on Broad Based Black Economic Empowerment: Invitation to submit comments: Black Economic Empowerment Act , 2003 (Act No 53 of 2003).
Government Notice No R.924 published in Government Gazette No 33615 dated 15 October 2010: Regulations in terms of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).
Government Notice No 898 published in Government Gazette No 33621 dated 11 October 2010: Determination of threshold in terms of the Consumer Protection Act, 2008 (Act No 68 of 2008).
General Notice No 917 published in Government Gazette No 33581 dated 23 September 2010: Notice to defer the general effective date in terms of the Consumer Protection Act, 2008 (Act No 68 of 2008).
General Notice No 827 published in Government Gazette No 33559 dated 16 September 2010: Amendment: For written comments in terms of the National Gambling Act, 2004 (Act No 7 of 2004).
General Notice No 799 published in Government Gazette No 33459 dated 18 August 2010: Notice in terms of section 23 of the Counterfeit Goods Act, 1997 (Act No 37 of 1997).
General Notice No 800 published in Government Gazette No 33459 dated 18 August 2010: Notice in terms of section 23 (1) and (2) of the Counterfeit Goods Act, 1997 (Act No 37 of 1997).
Report of the Public Service Commission (PSC) on the Key Drivers of Citizen Satisfaction with Public Service Delivery: Pilot Report 2009/2010 - April 2010 [RP 123-2010].
The Portfolio Committee on Home Affairs, having considered the subject of the South African Citizenship Amendment Bill [B 17B - 2010] (National Assembly - sec 75) and proposed amendments of the National Council of Provinces (Announcements, Tablings and Committee Reports, 3 November 2010, page 3662) referred to it, reports the Bill with amendments [B 17 C - 2010].
The Budgetary Review and Recommendation Report of the Portfolio Committee on Economic Development on the performance of the Economic Development Department for the 2009/10 financial year, dated 02 November 2010.
The Economic Development Department (EDD) was formally established on 7 July 2009, following the President of the Republic of South Africa's, Mr Jacob Zuma, announcement of a new structure for national government. The President stated on 10 May 2009 that "Cabine has been re-organised to achieve better alignment between the structure, our electoral mandate and the developmental challenges that need to receive immediate attention from government".
During the Presidency Vote on 24 June 2009, the President stated: "The Economic Development portfolio will have a strong domestic focus and will address, amongst others, matters of macro and micro-economic development planning." The new Department is, therefore, part of a new configuration of government that centres on the four inter-connected areas of policy-development, planning, effective implementation and continuous monitoring and evaluation.
The Department will be responsible to develop economic policy with a broad, cross-cutting focus so that macro and micro-economic policy reinforce each other and are both aligned to the electoral mandate. The Department will also be responsible for economic development planning and will work collegially with other departments to ensure coordination around a programme that places decent work at the centre of government's economic policies in order to secure better employment outcomes.
The Mandate of the Committee, including the Provision of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No.
According to Section 5 of the Money Bills Amendment Procedure and Related Matters Act, the National Assembly, through its committees, must annually assess the performance of each national department. Committees must submit an annual Budgetary Review and Recommendations Reports (BRRRs) for each national department that falls under its oversight responsibilities for tabling in the National Assembly.
These reports should be considered by the Committee on Appropriations when it is considering and reporting on the Medium Term Budget Policy Statement (MTBPS) to the House.
Annual Report briefings, in terms of Section 65 of the Public Finance Management Act, No.
First and Second Quarter Performance Report (2010/11) briefings by the EDD.
Following the pronouncement of responsibilities of the Economic Development Department by the President, the mandate of Economic Development includes economic policy development as well as economic planning functions.
The aim of the Economic Development Department is to promote economic development through participatory, coherent and coordinated economic policy and planning for the benefit of all South Africans.
contribute to efforts that ensure coherence between the economic policies and plans of the state and state entities on the one hand, and the government's political and economic objectives and mandate on the other; and promote government's ability to achieve its goals of advancing economic development with decent work opportunities.
Four critical programmes determine the work of the Department.
The purpose of this programme is to co-ordinate and renders an effective, efficient, strategic support and administrative service to the Minister, Deputy Minister, Director-General, the EDD and its agencies.
engage with civil society and manage their contributions to policies for economic development; and conduct economic policy research that informs the formulation of appropriate economic policies.
The purpose of this programme is to develop economic planning proposals for consideration by Cabinet and for submission to the National Planning Commission to be incorporated in the wider national plan.
contributing to the coordination and coherence between macro and micro economic policies.
contributing to the work of other departments that are participating in African and regional institutions, international economic agencies and multilateral institutions; and building economic opportunities including the job creation potential of green economic activities.
The purpose of this programme is to promote social dialogue in order to foster economic development.
develop the capacity of the social partners to engage in social dialogue, including at sectoral and workplace level; and enhance productivity, entrepreneurship and innovation.
Administration - The purpose of this programme is to co-ordinate and render an effective, efficient, strategic support and administrative service to the Minister, Deputy Minister, Director-General, the EDD and its agencies.
Economic Development: Planning and Coordination - The purpose of this programme is to develop economic planning proposals for consideration by Cabinet and for submission to the National Planning Commission to be incorporated in the wider national plan.
Economic Development and Dialogue - The purpose of this programme is to promote social dialogue in order to foster economic development.
As an entirely new department formed after the 2009 elections, there was no budget in place for EDD in May 2009 and the DTI established a division within their financial systems for EDD. This division within the DTI, was allocated a budget of R29 million for the remainder of the financial year and the DTI was reimbursed for the expenditure it has already incurred. It was agreed with National Treasury that the DTI Director-General be the Accounting Officer for these funds for the 2009/10 financial year. EDD's transactions are reflected in the DTI's Annual Financial Statements.
In addition to expenditure of R16.654 million incurred and paid for during the 2009/10 financial year, commitments were made for expenditure on capital assets amounting to R1.107 million. The total of expenditure and commitments for 2009/10 was R17.761 million or 61.24% of the adjusted budget allocation.
Commitments represent goods and services that have been ordered, but not delivered and paid for at the reporting date. This amount of R1.107 million was not recognised in the statement of financial position as a liability or as expenditure for 2009/10 because the annual financial statements are prepared on a cash basis of accounting, but are however included as part of the disclosure notes.
The Minister of Economic Development, Mr Ebrahim Patel, presented the Annual Report 2009/10 to the committee, which is the first Annual Report of the Department, since its establishment in May 2009. The Annual Report 2009/10 outlines the setting up of a new department of government, the work and activities it undertook between May 2009 and March 2010.
EDD was accounted for as a division within the Department of Trade & Industry (DTI), with an allocated budget of R29m.
The Annual Report 2009/10 included the following work and activities undertaken by the EDD from May 2009 to March 2010.
As it was a new Ministry, it was necessary for the Ministry to establish a basic infrastructure and staff support immediately after taking office. Accommodation was secured on the DTI Campus, Pretoria. A process of rapidly procuring furniture, telephones and office equipment was undertaken. Basic office supplies were also purchased for the new Ministry.
Office accommodation was also secured in the Parliamentary precinct at 120 Plein Street. The Ministry appointed an Establishment Manager for the remainder of the financial year.
Work on the Strategic Plan of the department started in June 2009. The final draft was completed in September 2009. The draft informed the organisational structure and the medium term expenditure framework (MTEF) budget of the Department. The Strategic Plan was tabled in Parliament on 03 March 2010 as required by Parliament in accordance with the Money Bills Amendment Procedure and Related Matters Act, 2009.
The Minister held consultations with colleagues regarding the agencies that should report to EDD in view of its mandate. It was subsequently agreed that six (6) agencies should be transferred from the DTI to the EDD: three regulatory bodies (The Competition Commission, the Competition Tribunal and the International Trade and Administration Commission (ITAC) and three development finance institutions (the Industrial Development Corporation (IDC), Khula Enterprise Finance Limited (Khula) and the South African Micro-finance Apex Fund (Samaf)).
On 10 December 2009, the Minister for Public Service and Administration determined, in terms of section 3(4) (b) of the Public Service Act, 1994, that the oversight functions relating to these entities be transferred from the DTI to EDD with effect from April 2010, subject to the transfer of the relevant legislation from the Minister of Trade & Industry to the Minister of Economic Development in terms of section 97 of the Constitution of the RSA, 1996.
Much of the EDD's work during the period under review was addressing South Africa's response to the global economic crisis. In July 2009, the Minister of Economic Development was requested to convene and chair the Leadership Team of business, labour, community and government representatives that was created in the Framework.
One of the instruments to deal with the challenges of the recession was the National Jobs Fund, which is utilized to finance a Training Layoff scheme to support companies experiencing weakening demand for their products, by providing an alternative to retrenchments. A sum of R2, 4b was drawn from the Unemployment Insurance Fund (UIF) and the National Skills Fund to pay allowances to workers on special training schemes. A further R500 million was committed by a consortium of SETAs to pay for the costs of funding the training offered under the scheme.
The second instrument was a Fund for companies in distress as result of the crisis. The money was made available through the Industrial Development Corporation.
The third instrument was a development bond placed by the IDC with the UIF, of R2b.
A range of measures to combat customs fraud were also introduced.
The Competition Commission launched investigations into collusive practices on food prices.
This Chapter set out seven workstreams, which included: The Leadership Team's work in response to the recession; Policy Platform of the global economic crisis; KwaZulu-Ntal Platform on Rural Development; Policy Platform on income inequality; Next Economy National Dialogue; Engagement in Nedlac and the Ministerial roundtable with the pharmaceutical industry.
EDD has coordinated government work on a new growth path. The following three workstreams sum up the work to date.
Research and policy work - Research towards the new growth path commenced in 2009. A framework for the growth path was developed, the approach was adopted of identifying key "job drivers" in the economy, i.e. sectors with a high employment potential. Research was undertaken in these areas and initial estimates on the numbers of jobs that could be realised were made. EDD consolidated this research into a draft Growth Path document.
Workshops and policy sessions - Following the broad conceptual work on the growth path, EDD hosted a number of Departmental workshops and consultations to draw in external expertise and tap into the work that has been done elsewhere. A workshop focusing on the exchange rate was held on 7 December, which identified a range of interventions used by governments across the world to address exchange-range competitiveness challenges. The EDD also conducted workshops with the IDC on the Growth Path, which identified areas of data and research, and considered the outcome of IDC work sources of new job growth.
Processes in the Economic Cluster and within government - the EDD worked closely with the Economic Cluster in developing key issues in the growth path.
Economic Development MinMEC - On 11 August 2009, the first Economic Development MinMEC was held with 6 provincial MECs and their Head of Departments. The MECs tabled their provincial priorities, challenges and opportunities. The meeting agreed to convene an economic development symposium.
The Economic Cluster Research Forum - EDD co-hosted a research forum on 30 September 2009 to encourage greater research cooperation amongst provincial and national economic development departments.
MinMEC Symposuim - A MinMEC economic development symposium was held over 16-17 November 2009 in Pretoria.
Presidency Budget Vote - the Minister participated in the Presidency Budget Vote debate on 24 June 2009 and spoke on international economic relations.
Global economic crisis - Due to the keen interest in the progress in responding to the international economic crisis, the Minister addressed the National Assembly on 20 August 2009.
Budget Vote No. 27 - Minister Patel made his first Budget Vote address to the National Assembly on 23 March 2010.
During the period under review, the Department's work on international matters largely focused on policy development, particularly on regional economic integration. In addition, bilateral meetings were held with Ministerial counterparts on bilateral visits to SA, ambassadors from a number of countries and representatives of international economic institutions and organizations. The Minister launched the Employment Creation Fund during the European Union/South African bilateral Summit.
Expenditure in the first six months of 2010/11 is R 171.003 million or 40.9% of the main appropriation of R 418 million for the year as a whole. Spending is marginally below the norm due to the high vacancy rate associated with the start up and initiation of operations in the new department.
Table 2 above indicates Programme 1 (Administration), from a budget of R 44,802 million, Year to Date (YTD) expenditure as at 30 September is at R 14.490 or 32.3% of the budget. The spending is below the 50% norm by 17.7% due to slow spending arising out of the current vacancy rate.
The expenditure of programme 2 (Economic Policy Development) (Table 3, above) amounts to R700 000 or 3.9% of the budget of R 18.150 million, which is much less than the main appropriation budget. Slow spending in this Programme is largely informed by the rate at which posts are filled because EDD is in its first year of operation.
The actual spending of programme 3 (Economic Planning and Coordination) (Table 4, above) indicates that from a budget of R 344.401 million, a year to date expenditure for programme 3 is R 155.813 million or 45.2% of the budget.
There is no spending to date for programme 4 (Economic Development and Dialogue) (Table 5) from a budget of R 11.243 million. The under spending here is also caused by reasons that officials in the Branch of Economic Development and Dialogue have been erroneously paid under Programme 1. This will be corrected by correcting Persal allocations and effecting journals.
The departmental revenue collection in the first six months of 2010/11 is R 67.659 million or 29% of the estimated revenue of R 230 million for the year as a whole. There is no comparison with mid-year revenue collections in 2009/10 since EDD is currently in its first financial year of operation as a budget vote. The main revenue generator for the department is fines from penalties from the Competition Commission.
EDD was accounted for as a division within the Department of Trade & Industry (DTI), with an allocated budget of R29m. The Auditor-General's Report, on these funds was thus included in the financial statements of the DTI.
The Department did not appear before the Committee on Public Accounts.
The committee interacted with the entities on their Annual Reports 2009/10.
The Competition Commission is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the Government of South Africa empowered to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy.
AG's Report - The Competition Commission received an unqualified Auditor-General's Report for the 5th consecutive year.
Investigating cases brought by the public - Members of the public may approach the Competition Commission if they suspect that there might be collusion in any sector, where the Commission will investigate and a decision have to be made whether to pursue with the case or not. The Commissioner can also initiate cases (pro-actively).
Processes of Appeal against the decision of the Tribunal - There are 3 processes of Appeal against the decision of the Tribunal: First the Tribunal Appeal Court, then the Supreme Court of Appeal and then the Constitutional Court.
Budgets of the Commission (2009 and 2010) - In 2009, the Commission received a government grant of R44m and in 2010, R80m.
Fines/penalties paid by companies - The fines/penalties which the companies pay are not reflected in the financial statements of the Commission. The fines/penalties go to the national fiscus.
Fee income amounts - Fee income amounted to R50m in 2009, and R30m in 2010.
Financial planning by the Commission: The Commission were initially ambitious in their planning, where more funding was requested from Treasury, but the result was that they received less than what they requested.
The Competition Tribunal has jurisdiction throughout South Africa and adjudicates competition matters in accordance with the Competition Act (Act 89 of 1998). It is subject to the Constitution and the law and acts independently.
grant an exemption from a relevant provision of the Act authorise a merger, with or without conditions, or prohibit a merger adjudicate in relation to any conduct prohibited in terms of the Act by determining whether prohibited conduct has occurred, and if so, impose a remedy provided for in the Act grant an order for costs.
Disabled employees: The Tribunal does not currently employ any person with disability.
Staff promotion - there have been instances where staff (especially Case Managers) was successful in applying for higher positions at for example the Competition Commission. Staff generally gain initial experience at the Tribunal and then they move on to more senior positions at the Commission.
Fruitless and wasteful expenditure of R3 368 - according to the Tribunal, the South African Revenue Service (SARS) indicated that the Tribunal owed them the amount for a PAYE shortfall in March 2007. According to the Tribunal they paid this amount in April 2007 and therefore disputed the liability. The Tribunal expects this liability to be reversed.
International Trade Administration Commission of South Africa (ITAC) was established through an Act of Parliament, the International Trade Administration Act 71 of 2002, which came into force on 1 June 2003.
The aim of ITAC, as stated in the Act, is to foster economic growth and development in order to raise incomes and promote investment and employment in South Africa and within the Common Customs Union Area by establishing an efficient and effective system for the administration of international trade subject to this Act and the Southern African Customs Union (SACU) Agreement. The core functions are: customs tariff investigations; trade remedies; and import and export control.
Aluminium investigations - It is a review of tariffs, which has arisen from IPAP 1, who identified intermediate inputs which included aluminium with regard to a review by ITAC, with a view of reducing the costs for downstream value added goods. A recommendation was made to the Minister and the duties were reduced. After this, producers came back to ITAC indicating that some of the raw materials had to be imported, which has then increased their input costs. The investigation had to be reviewed and ITAC is at an advance stage to make a recommendation to the Minister.
Import permit for vehicles - Import permits are for second hand vehicles and no permits is issued for new vehicles. Permits are also issued for vehicles which are utilized by people with disabilities.
Struggling Textile and Clothing industry - one of the problems is the under valuation of imported clothing and textiles, which erodes the tariff protection. Tariff protection for clothing has recently been increased from 40 - 45%, fabrics extended to 22%. There is a unit within SARS that deals with under-invoicing.
Replacement of the Textile and Clothing Incentive Development Plan (TCIDP) - the TCIDP has been replaced by the Production Incentive Scheme, which is part of the DTI strategy, which is in full implementation including skilling and upgrading.
Promotion of local goods produced - where there is domestic production, especially downstream there are tariffs. Domestic production is supported with tariffs.
Relationship with SARS - Once a recommendation is made by ITAC to the Minister of Trade and Industry, the Minister requests the Minister of Finance to implement. The implementation is performed by SARS. SARS and ITAC also work very closely on import and export permits.
Skills of employees - in order to perform the functions at ITAC you need to gain the necessary experience within ITAC itself, and the tertiary institutions will not be in a position to offer this.
Investigation on wheat and sugar - An investigation was performed which resulted in the protection of domestic producers, especially the farmers.
ITAC's link with IPAP II - IPAP II states that ITAC must continue to conduct applications for selective tariff increases or decreases. ITAC therefore takes a developmental approach to tariffs. Where the focus is on the outcomes e.g. domestic production, employment, international competitiveness etc.
Investigation on tyres from China - ITAC did undertake an investigation into the issue of tyres from China. No evidence was found of dumping and injury. ITAC was challenged by tyre manufacturers in the High Court, where the manufacturers were successful, but ITAC appealed which was granted.
Exceeding targets for export and import permits - the reason for exceeding the target is because it is based on historical data. ITAC under estimated, because there were more applications then expected.
Irregular expenditure - The irregular expenditure amount is R155 000 and the amount (loss to fraud) directly related to the official, is R12 000. The official was on suspension for 6 months while the investigation was conducted.
Surplus of R4.3m in 2008/9 - Interest received was initially budgeted conservatively, but R1.5m was received as interest and another big driver of this surplus was the fact that at the start of that financial year there was a staff compliment of 130 and at the end of the financial year 114.
The Industrial Development Corporation of South Africa Ltd (IDC) is a self-financing, national Development Finance Institution (DFI). It was established in 1940 to promote economic growth and industrial development in South Africa. The mandate of the IDC, includes the rest of the African continent and they are active throughout the entire region. They operate in a broad spectrum of industries and with their specialized knowledge and experience; they are able to offer valid and appropriate financial assistance to a wide variety of individuals and companies.
People's reluctance to invest - people are reluctant to invest in businesses during the recession. If the country wants to be competitive, it would need to invest on best practices and bet processes.
UIF Development Bond - The IDC borrows money from various sources of which the UIF is one and the rates that the IDC is paying in relation to these loans is lower than the markets.
Progress on the Joulle project - The Joulle project is still in its development phase, where the prototype has been produced. The IDC has however not taken a decision to invest on a commercial scale. The IDC is still in the process of assessing the risks and exploring the possibilities of partnerships. If the IDC finds that the project is not viable, that it would "walk away" from the project.
Investments in bio-fuel - The IDC's approach are one that underlines non-competitiveness with the food industry.
IDC's role in steel pricing - The IDC is a minority shareholder in ArcellorMittal, with the result that it has little influence as these decisions are taken by the majority shareholder.
Automotive components - last year the main focus on components was on survival. There are however signs that the in terms of motor assembly plants are moving in the direct direction, where there is an upswing and where the IDC is in the process of funding a number of local manufacturers.
Developments at Coega - Coega did not develop as expected. The IDC does not deal with industrial development zones (IDZs). One of the core projects of Coega was the Aluminium Smelter, but due to the electricity crisis the project had to be canned. The IDC is however looking at other investments in the region. Coega would need more critical mass in order to be successful as an IDZ.
Funding to companies in distress - The uptake of the funding is below the expectations of the IDC, with R1.4 billion approved of the R6.1 billion allocated for the period to March 2011. Twenty eight (28) companies in distress has been assisted by the IDC.
Advocacy campaign regarding funding to companies in distress - The IDC had several interviews in a variety of media; it also had a number of workshops, and 20 of these were held with the relevant sectors.
Investments in the rest of Africa - according to the IDC there is an increased demand and the target was exceeded due to the projects, which required large capital investments, for example the sugar plant in Tanzania.
IDC's percentage of the 500 000 jobs to be created - The IDC was responsible for 8% of the 500 000 jobs to be created. Within this number the IDC only focused on long term employment and not on short term employment.
Bonuses to staff - Bonus offered to staff costs in 2009/10 is much lower than what was expected and this affected the figures.
The committee noted that more time to scrutinize the Annual Report of the IDC should be made as there are still outstanding issues to be discussed with them. A follow-up meeting need to be scheduled with IDC.
Khula Enterprise Finance Ltd (Khula) is dedicated to the development and sustainability of small businesses in South Africa. A leader in its field, it has a proud history of more than 13 years' service of involvement in the rapidly growing and economically vital, small and medium enterprise (SME) sector.
The company is a wholesale finance institution which operates across the public and private sectors, through a network of channels to supply much-needed funding to small business. Khula's channels include South Africa's leading commercial banks, retail financial institutions, specialist funds and joint ventures. Its primary aim is to bridge the "funding gap" in the SME market not addressed by commercial financial institutions.
Khula's existence since being established - since Khula's inception it disbursed R2,5 billion. In 2002 the loan book was R34m and in 2010 it grew to R640m. Bad debt stood at R40% in 2002 and in 2002 it declined to 12%. The institution grew but maintained risk at an acceptable level.
Mentorship provided by Khula - Khula emphasised that the mentorship provided will be intensified, where mentorship will become critical with the loans provided. Khula has an agreement with Seda, with regard to pre-loans and once these loans are approved Khula will assist.
Footprint of Khula - A Memorandum of Understanding has been signed with Seda, since they have a bigger footprint than Khula. The Post Office is also a possible partner in order to extend Khula's footprint throughout the country.
Implementation of Khula Direct - The Business Plan for Khula Direct was approved in 2008 and in 2009, the modelling and design was developed as well as the implementation plan. It is envisaged that Khula Direct will be rolled-out at the beginning of next year.
Recovery of debts ('Bad debts") - According to Khula, "bad debts" is a market wide challenge, and the global economic crisis contributed to this and when making loans available, it is a systemic risk that Khula have to take.
Khula's relationship with Retail Financial Institutions (RFIs) - Khula acknowledged that the relationship with RFIs need to be reinforced. Khula have developed a booklet which have been distributed country wide, which informs members of the public on how to access funds for SMEs. Khula reiterated that it was established as a wholesale financier, which means it does not lend directly but where it lends money to intermediaries, who in turn lend money to businesses. It is exactly for this reason that the implementation of Khula Direct is fundamental, where they will have a greater impact on SME development in the country.
Meetings of the audit committee - the committee met four (4) times during the period under review (in accordance with the PFMA).
The South African Micro-finance Apex Fund (Samaf) is a wholesale fund that distributes its funds through Retail Financial Intermediaries (RFIs). The term "financial intermediary" refers to a wide range of Financial Institutions dedicated to the provision of small scale financial services to the Enterprising and working poor households. It includes Non Governmental Organizations (NGOs), Savings and Credit Cooperatives (SACCOs), Financial Services Co-operatives (FSCs), Co-operative Banks, private commercial banks, and non-bank financial institutions (MFIs).
Report of the Auditor-General - Samaf received a qualified report from the Auditor-General. The basis for the qualified report referred to: A number of journals were passed during the system implementation process; and. Management failed to provide sufficient and appropriate explanation to substantiate journals.
Credibility of the information provided - Samaf acknowledged that certain information needed a survey mechanism, which was lacking, and that certain information was not credible, but they noted that they are in the process of putting systems in place to rectify and address these issues.
Comments by the Auditor-General's report - On the Management letter, Samaf created a matrix where employees are responsible for their actions on a monthly basis. They expect improvements after this intervention and assured members that they will have an unqualified report.
Irregular expenditure by employee - the irregular expenditure occurred when an employee went outside of the tender processes to procure, but highlighted that the specific employee was unaware of the correct procedures to be followed.
Material impairments as a write-off - The material impairments were a provision and not a write-off.
Capacity building of institutions - Capacity building of institutions, by Samaf, will be fundamental in the sustainability and viability of these institutions.
Appointment of 14 interns - Samaf intends employing 14 interns who will assist with administration work.
Revised Human Resource structure proposed - Samaf have reviewed their current structure and new one has been developed which is awaiting approval and one of the reason for the reviewing of the structure is because provinces need additional staff.
Legal action against intermediaries to recover debt - Legal action has been taken by Samaf against intermediaries to recover debt owed to Samaf, but Samaf acknowledged that if they do go the legal route to recover money owed, that it will certainly be to the disadvantage of institutions, as this will lead to the closing down of some of them.
Information gathering from Financial Intermediaries (FIs) - Gathering the necessary information from FIs remains a challenge for Samaf.
Risk Management Audit - The Risk Management Audit function is management by an external service provider, whose services has been terminated and this function now resides in the office of the CEO.
Skills and competencies of the Samaf staff - the initial staffing of the agency was people who had good social skills but lacked the necessary financial and developmental skills. Samaf is in the process of implementing Project Bokomoto to improve the competencies of staff.
Lack of support to institutions in the poorer provinces - Some of the institutions might be in a particular province, they had distribution channels in the other provinces e.g. Marang, which is based in Gauteng is also present in 6 other provinces.
Committee's view on the presentation document - The committee felt that the report had to interpretable, supported by reliable evidence, that there should be no incongruent information, and that Samaf must go back and rework the document, where a follow-up meeting will be scheduled.
Public awareness of the mechanisms implemented, as agreed to in the "Framework agreement" remains a concern.
Many companies and businesses are unaware of the existence of the Training labour lay-off scheme and the funding to companies in distress provided for by the IDC.
While conducting its oversight visits the committee noted that there was little or no coordination between the funding to companies in distress (as provided by the IDC) and the labour lay-off scheme.
Members of the public (especially the poorer provinces) are unaware of the existence of Khula and Samaf as development finance institutions.
There is a lack of monitoring and evaluation by the IDC, Khula and Samaf to institutions/companies it provided funding to.
Capacity building initiatives by Samaf and Khula will be imperative for the sustainability and viability of SMMEs.
The Competition Commission still relies to heavily on applications received by the public and other stakeholders to investigate issues of possible collusion.
The Competition Commission lacks the necessary capacity to perform its mandate optimally.
Members of the public are unaware of the work and outcomes of cases by the Competition Commission.
Cooperation and coordination between the Competition Commission and the Competition Tribunal and other stakeholders will be critical if the Commission is to work efficiently.
The cumbersome process of applying for funding from the DFIs, remains an obstacle for funding to broader communities.
The public lacks the necessary information relating to the activities of the Competition Commission and the International Trade Administration Commission of SA (ITAC).
Tender-rigging remains a challenge.
There are signs that provinces are endeavouring to align their Provincial Growth and Development Strategies (PGDSs) with that of the national plans.
There is a lack of coordination and cooperation between the Provincial Department of Economic Development and municipalities on the development of the Provincial Growth and Development Strategies (PGDSs) and the Local Economic Development plans (LEDs), respectively.
The establishment and creation of viable cooperatives will be fundamental in eradicating poverty and creating jobs.
Khula's impact will be greater once Khula Direct is implemented.
The recapitalisation of Khula Direct will be critical.
Coordination and cooperation between the different DFIs is imperative for poverty alleviation.
The presence and existence of Khula and Samaf in the local areas is vital for economic development.
Khula Direct will be implemented initially as a pilot.
The EDD is experiencing challenges with regard to the roll-out of their official website.
It takes the EDD 3-4 months to fill a position. The committee is of the view that this period is too long.
The financial performance of the department (for the 1st and 2nd quarter) is a concern to the committee.
The Green Economy is a sector which will provide jobs to the poorest of the poor, e.g. waste recycling.
The EDD is working with the National Treasury on the revision of the Preferential Procurement Policy Framework Act.
EDD will underspend this financial year.
EDD will lead policy issues on e.g. the Green Economy and the Second Economy.
A media statement was made on Tuesday, 26 October 2010 on the Framework for the New Growth Path.
Information between the EDD and IDC are skewed. Members are concerned that there might be a communication gap between the two as information between them does not correlate.
Working relations with the MECs and Provincial Departments of Economic Development is unfolding very positively.
With regard to agricultural and rural development, the EDD is working closely with the Department of Rural Development, where many jobs to be created in this sector will be in the second economy, according to the EDD.
The committee commended the EDD for not utilizing consultants on a large scale.
The EDD has developed a dashboard of indicators for measuring the performance of entities.
Initial research was undertaken by the EDD on a Cooperatives strategy, where engagements were held with National Treasury and further consultations with the DTI and the International Labour Organisation (ILO).
A MOU was drafted with an academic institution to develop a policy and monitoring tool relating to the Cooperatives strategy.
The Committee is mindful that the department did not have Strategic Plan and Budget Vote for the period under review. The first Strategic Plan and Budget Vote of the newly established Department of Economic were tabled in Parliament during March 2010.
The Committee is however satisfied with the progress and development to date regarding the work and activities of the EDD during this period, taking into consideration the lack of human resources within the department. The committee is of the view that the staffing of the department must be priority area for the department.
The committee is concerned about underspending in the 1st and 2nd Quarterly Performance Reports, due to the non-filling of vacancies, which resulted in some of the programmes not spending at all.
The possible expansion of the Green Economy should not unnecessary impact negatively on jobs in the sectors of the economy that can be categorised as carbon intensive.
Focus should not only be on the impact by individuals and households, but on big industry that have a major impact on the carbon emissions.
A major focus of the Green Economy should be towards development and job creation whilst preserving the economy.
The role of Research and Development (R&D) should be to develop technology that will enable/gear towards accelerated economic growth, employment creation and development of our people especially the working class and the poor.
There is a necessity for the Economic Development Department (EDD) and the entities to ensure that information flows to the various levels of society and stakeholders.
The advocacy campaign of the IDC, relating to its funding to companies in distress should be strengthened and reinforced in all provinces.
There is a necessity for Khula and Samaf to be located in all areas, especially rural areas.
The Department and its entities should fill vacancies as a matter of urgency in order to fulfil their mandate as required.
The recruitment processes (3-4 months) of the department are too time consuming, and should be reduced to be able to meet indicative timeframes.
The department must ensure that coordination and cooperation among the three spheres of government to be prioritised relating to the alignment of the national plans with that of the Provincial Growth and Development Strategies (PGDSs) and the Local Economic Development plans (LEDs).
The department should ensure the integration of its programmes is prioritised.
Better coordination and cooperation must be fostered among all the entities of EDD.
The department should ensure that interdepartmental cooperation and coordination is addressed, as this will be critical relating to the achievement of the Competition Commission's mandate.
The department should ensure that the activities performed by the DFIs are duplicated, in other words activities must be streamlined on their specific areas of focus.
The department should ensure that appropriate measures are put in place to ensure that there is no underspending by the end of financial year 2010/11.
Development Finance Institutions should allocate more funds to focus on the establishment of cooperatives in the various provinces.
The department, in conjunction with the IDC should examine lowering the cost of funding, specifically the interest rates charged to companies.
The department should ensure that programmes, as set out in its Strategic Plan, be adequately funded.
The department should assist and guide Khula with regard to the recapitalisation of the Khula Direct model.
The department should ensure that transfers to entities are fully spent towards its allocated purpose.
Development Finance Institutions should ensure that the disbursement of funds is biased towards the poorer provinces in order to ensure equity in the distribution thereof (balance should be struck between the richer and poorer provinces).
Those companies funded should be monitored and assisted with mentoring and coaching programmes.
The dashboard of indicators developed by the EDD should be simplified.
DFIs should relax the bureaucratic processes associated with funding application criteria in order to enable broader access.
The EDD with the DTI, through the IDC, should address the high steel prices.
The EDD should assist in ensuring that the IDC remain within its primary mandate, i.e. industrial development with a major focus on rural and urban areas.
Geoscience Amendment Bill [B 12B - 2010] (National Assembly - sec 75).
Division of Revenue Amendment Bill [B 35 - 2010] (National Assembly - sec 76).
The Adjustments Appropriation Bill [B34-2010] is hereby referred to the Standing Committee on Appropriations in terms of section 12(19) of the Money Bills Amendment Procedure and Related Matters Act, 2009 (Act No 9 of 2009).
Draft notice and schedule determining the rate, with effect from 1 April 2010, at which salaries, allowances and benefits are payable to Constitutional Court Judges and Judges annually, for approval by Parliament in terms of section 2(4) of the Judges' Remuneration and Conditions of Employment Act, 2001 (Act No 47 of 2001).
Draft notice and schedule determining the rate, with effect from 1 April 2010, at which salaries, allowances and benefits are payable to magistrates annually, for approval by Parliament in terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of 1993).
Referred to the Portfolio Committee on Justice and Constitutional Development and the Select Committee on Security and Constitutional Development for consideration and report.
Report and Financial Statements of the Council for Debt Collectors for 2009-2010, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-2010.
Proclamation No R.54 published in Government Gazette No 33576 dated 17 September 2010: Commencement in terms of the Reform of Customary Law of Succession and Regulation of Related Matters Act, 2009 (Act No 11 of 2009).
Proclamation No R.57 published in Government Gazette No 33605 dated 1 October 2010: Commencement in terms of the Criminal Procedure Amendment Act, 2008 (Act No 65 of 2008).
Government Notice No R.868 published in Government Gazette No 33605 dated 1 October 2010: Designation of correctional facilities in terms of the Criminal Procedure Act, 1977 (Act No 51of 1977).
General Notice No 800 published in Government Gazette No 33459 dated 18 August 2010: Notice in terms of section 23 (1) and (2) in terms of the Counterfeit Goods Act, 1997 (Act No 37 of 1997).
Proclamation No R.45 published in Government Gazette No 33550 dated 10 September 2010: Commencement of sections 10, 13, 14, 15 and 16 of the Act in terms of the Judicial Matters Amendment Act, 2008 (Act No 66 of 2008).
Report and Financial Statements of the Government Employees Pension Fund for 2009-2010, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2009-2010.
Public Protector Report No 22 of 2010-11 on an investigation into complaints relating to misconduct and maladministration in connection with the affairs of the Commission for Gender Equality.
Referred to the Ad Hoc Committee on the Commission for Gender Equality Forensic Investigation for consideration and report.
The Minister of Finance (the Minister) tabled the 2010 Medium Term Budget Policy Statement (MTBPS) before Parliament on 27 October 2010. In tabling the MTBPS, the Minister met his obligation under section 28 of the Public Finance Management Act 1 of 1999 (PFMA) that requires the Minister to table multi-year budget projections for revenue, expenditure and key macro-economic projections on an annual basis. In addition to that, the Minister also met his obligation under section 6(1) of the Money Bills Amendment Procedure and Related Matters Act 9 of 2009 (henceforth referred to as the Money Bills Act) that requires the Minister to submit to Parliament the MTBPS.
According to section 6(5) of the Money Bills Act, the Standing Committee on Finance and Select Committee on Finance (the Committees) must 30 days after the tabling of MTBPS report to the National Assembly (NA) and the National Council of Provinces (NCOP), respectively, on the proposed fiscal framework for the next three financial years. In line with section 6(2), the Committees report on a revised fiscal framework for the 2010/2011 financial year and the proposed fiscal framework for the following three years; and an explanation of the macro-economic and fiscal policy position, the macroeconomic projections and the assumptions underpinning the fiscal framework.
Following the tabling of the 2010 MTBPS and the engagement with the Minister, the Committees held hearings on 10 and 11 November 2010, receiving submissions from a panel of economists, organised labour and organised business. This report reflects the main themes emerging from the engagement with the Minister, economists, organised labour and organised business. This report includes two main sections, namely: Economic Outlook and Policy, and Fiscal Trends and Policy. The former section gives an overview of economic outlook and policy with specific reference to key macro-economic indicators within the context of the current global economic environment. The latter section provides details of fiscal policy over the Medium Term Expenditure Framework (MTEF) with specific reference to the fiscal stance adopted by government.
Basically, the 2010 MTBPS provides an account of current trends in the economy, the medium-term outlook, overview of macroeconomic and fiscal considerations, and a summary of government's spending plans for the period ahead. The MTBPS therefore sets out Government's spending plans for the next three fiscal years, based on certain macroeconomic assumptions. In doing so, there is usually a wide range of aspects to be taken into account. The 2010 MTBPS covered six broad themes, namely: economic assumptions, fiscal framework, spending priorities, division of revenue, changes to conditional grants and the mid-term report on spending.
In order to meet the developmental needs of South Africa a new economic growth path needs to be developed in consultation with all social partners across several frontiers; which includes education, skills development, national health insurance, land and agrarian reform, residential settlements and urban renewal, environment management, infrastructure investment and maintenance, enterprise development, and public sector service delivery. However, before the implementation, there will be a need for some ground work to be done in the public sector and private sector in terms of coordinating public policy and market regulations. The 2010 MTBPS indicated the need to raise the economy onto a more labour intensive method to create jobs across the board. The economic growth does not assist the economy when there are less job opportunities being created. This means that the policy debate goes beyond the macroeconomic and financial challenges to include the social component.
The 2010 MTBPS outlines the macroeconomic, fiscal and public expenditure dimensions of the proposed development path. It emphasised the need for the increase on infrastructure investment spending for faster growth and to reduce the budget deficit over the next period. The discipline in financial management in the public sector and improved education, health, and other infrastructure programmes is crucial.
Improved service delivery is of great importance and this can only be possible through good financial management, control systems, good governance, proper budgeting and well managed contractors to deliver the agreed output or targets.
Crucial issues to be addressed during this MTEF period include how to increase job-creating growth. Other issues are promoting appropriate budget balance and to deal with capital flows and the resultant appreciation of the rand.
The 2010 MTBPS re-affirms the important role of the private sector in growth and employment creation. While social grants provide an important safety net for about a quarter of the population, South Africa's long-term prosperity depends on more people being drawn into work. The private sector accounts for 75 per cent of all economic activity and a slightly higher share of employment, and will remain the primary driver for job creation. The public sector plays a complementary role in this process. Alongside a range of initiatives to increase training and skills development, specific government interventions to raise employment include an expanded public works program and a youth job imitative.
National Treasury reports that gross domestic product (GDP) growth is expected to moderate in the second half of the 2010/11 financial year. The 2010 MTBPS indicates that, although the economy has gained strength since the budget was tabled at the beginning of the 2010/11 financial year, the growth outlook has so far improved. This is evident from the new projected economic growth, which is expected to be between 3 to 3.5 per cent in the 2011 calendar year. The recovery in revenue and moderate growth in public spending is expected to decrease the fiscal deficit. For example, the estimated deficit of 5.3 per cent of GDP projected for the 2010/11 financial year is projected to decline to 3 per cent in the 2013/14 financial year. The 2010 MTBPS also projects that government debt will stabilise to 40 per cent of GDP by the 2015 calendar year. It was also noted that expenditure has increased by R67 billion relative to the baseline over the Medium Term Expenditure Framework (MTEF). This increase in expenditure has been informed by the 12 outcome policy priorities which include education, health, infrastructure, and job creation.
Inflation is expected to remain below 6 per cent over the Medium Term Expenditure Framework (MTEF) while private investment and employment recover gradually. Business Unity South Africa (BUSA) agrees that inflation forecasts with headline Consumer Price Index (CPI) inflation is expected to remain below 6 per cent over the next three years are realistic, but indicated that it remains essential to successfully anchor inflationary expectations. According to BUSA, lower inflation presents an opportunity for the use of monetary policy to further support economic activity. According to BUSA, growth prospects are expected to be driven by household consumption and gross fixed capital formation and will undoubtedly be assisted by lower inflation.
The 2010 MTBPS indicates that sustained exchange rate appreciation will lead to unbalanced growth, widening the current account deficit and increasing the economy's vulnerability to shocks. Table 1 (below) summarises the key macroeconomic projections inclusive of 2007 and 2013 calendar years.
South Africa experienced a decline in gross domestic product of 1.8 per cent in 2009, and a loss of employment estimated close to a million jobs. This was a severe deterioration, despite a continued expansion in government infrastructure spending and the countercyclical monetary and fiscal policy response.
Higher commodity prices have contributed to a somewhat more buoyant recovery in the 2010 calendar year than was anticipated at the beginning of the 2010 calendar year during the National Budget in February 2010. Households have started to spend again as interest rates declined together with lower inflation.
According to the Federation of Trade Unions of South Africa (FEDUSA), the 2010 MTBPS had to address a wide range of factors, ranging from the need to re-balance the economy after the deep recession, global developments and the need to make some inroads to mass unemployment and poverty. FEDUSA points out that, to this list, the urgent need to improve service delivery and to eradicate corruption and fraud must be added.
Tourism and selected services sectors.
The Minister of Finance highlighted that the new growth path provides the basis for coordinated policies and programmes across the state, and reinvigorated dialogue and cooperation among social partners.
According to the Minister of Finance, South Africa needs to promote more rapid job creation through a broad range of policy initiatives to achieve the country's developmental aims.
The underlying all of the above, improvements in public service delivery will depend on better financial management, good governance and disciplined pursuit of agreed service delivery outputs and targets.
BUSA believes that the 2010 MTBPS provided important guidance on macroeconomic policy direction. BUSA welcomes the signals that the new growth path will be aligned to the existing framework and vice versa. Furthermore, BUSA believes that greater attention must be given to address underlying competitiveness issues and that reducing the cost of doing business is supportive of the new growth path, which is probably the least expensive approach to unlocking South Africa's long term growth potential.
The Chief Economist at the Efficient Financial Holdings, Mr Dawie Roodt, points out that despite a rather healthy fiscal stance, significant changes in certain variables can be expected over the next few years. The new growth path will require huge amounts of money and, although the fiscal deficit is likely to remain within acceptable levels, huge expenditure requirements by the parastatals will add significantly to the state debt burden. Expenditure by parastatals is under the line, items which are not included in the deficit, but which are included in state debt. The 2010 MTBPS expects state debt relative to GDP to top 40 per cent by 2014, significantly higher than now but a lot lower than that of many other economies.
FEDUSA indicates that South Africa's present economic growth trajectory cannot meet the country's employment needs. Faster growth is required over an extended period of time to significantly increase labour absorption, reduce high unemployment and achieve a more equitable distribution of income. FEDUSA welcomes the attention given to the serious socio-economic problem of unemployment through the proposed new growth path. According to FEDUSA, previous programs such as the Reconstruction and Development Programme (RDP), Growth Employment and Redistribution (GEAR) and Accelerated and Shared Growth Initiative of South Africa (ASGISA) had this as their primary goal. The current strategies and programs contained in the budget already contain elements of the proposed new growth path.
The National Union of Mineworkers of South Africa (NUMSA) supports the call for a new growth path that will place employment at the centre of government's economic policy. The People's Budget Coalition (PBC) points out that the new growth path must be supported by policies that create and retain decent work, together with the eradication of poverty and inequality.
The Institute for Democracy in South Africa (IDASA) is of the view that the 2010 MTBPS does not contain much more detail on the so-called new growth path intended to create five million jobs over the next ten years, thus reducing the unemployment rate from approximately 25 per cent to approximately 15 per cent by 2014.
Fiscal policy guides government's decisions about revenue, spending and borrowing. South Africa's fiscal policy enables government to deliver on its developmental mandate by providing resources in a manner that is sustainable and that reinforces the stability of the economy.
National Treasury reported that the consolidated government deficit is projected to recover from 6.3 per cent of GDP in the 2010/11 financial year to 3.2 per cent by the 2013/14 financial year. The recovery will be driven by the strong uptake in revenue and the stabilisation in non-interest spending. Growth in expenditure will need to moderate as debt service costs increase over the MTEF. The counter-cyclical fiscal policy will aim to grow revenues while gradually reducing non-interest stimulus spending. It is important to keep the fiscal trajectory on a sustainable path while meeting growth expectations.
Table 2 (below) summarises the consolidated government fiscal framework inclusive of 2007/08- 2013/14 financial years.
The Minister of Finance indicates that, as the world economy recovers from the global crisis, there is considerable debate about how quickly governments should be closing their budget deficits. It is argued that the recovery will be held back if governments cut expenditure too quickly, while others point to the potentially devastating effects of fiscal default.
FEDUSA commends government on its fiscal stance during and after the recession. South Africa's counter-cyclical policy is designed to steady the economy and to protect core social and economic programs from undue volatility. Before the recession, government saved revenue and had a small balance surplus. During the recession, government ran a deficit so to maintain its spending. In this way, government moderated the impact of the business cycle and raised long-term growth.
FEDUSA further points out that as the economy's growth rate increases, the rate of growth in government spending will have to be reduced. While the higher fiscal deficit was the appropriate counter-cyclical response during the downturn, government will have to reduce the level of borrowing in the years ahead. As the economy recovers, government will tighten its stance to avoid pushing up interest rates and crowding out private-sector investment. It also follows that during the 2010 MTBPS period, monetary policy will bear the brunt in efforts to maintain inflation within the target range of 3 to 6 per cent.
BUSA welcomes the announcement that the budget deficit is expected to be narrowed to approximately 3 per cent of GDP by the 2013/14 financial year, and stabilisation of government debt at about 40 per cent of GDP in the 2015/16 financial year. BUSA believes that the 2010 MTBPS has broadly struck the right balance between fiscal consolidation and being growth-friendly.
IDASA is of the view that the 2010 MTBPS as presented is fairly conservative and that the South African budget policy in response to the recession consists broadly of maintaining pre-recession public expenditure commitments in the face of likely declining tax revenue. According to IDASA, it is necessary that the budget deficit and consequent borrowing requirements are permitted to increase. In other words, budget policy is becoming fairly counter-cyclical through the use of automatic stabiliser of tax revenue fluctuation.
The PBC indicates that the budget deficit is projected to narrow, as National Treasury moderates government spending in order to stabilize public debt at approximately 40 per cent by the 2015/16 financial year. This will not assist in speeding the recovery and stemming the tide of job losses. The budget deficit is projected to be 3.2 per cent by the 2013/14 financial year. The structural budget deficit, which takes out cyclical effects, is projected to be 3 per cent.
The 2010 MTBPS indicates that the net capital inflows to South Africa have risen strongly over the last two years, reaching 5.5 per cent of GDP in the first half of 2010 compared with 4.7 per cent in 2009 as a whole.
As contained in the 2010 MTBPS, the rand has appreciated by 7.5 per cent against the United States (US) dollar since December 2009, and by 6.1 per cent against a trade-weighted basket of currencies. Because South Africa has higher inflation than its major trading partners, the real effective rand exchange rate, which reflects losses or gains in competitiveness, is now approximately 12 per cent above its average level for the past decade.
National Treasury reported that due to international factors, capital flows were driven to emerging markets causing the rand to strengthen. The real exchange rate is 12 per cent above its 10 year average. Chile has a similar degree of overvaluation, but Brazil on the other hand is much more stretched.
National Treasury and the South African Reserve Bank (SARB) will continue to purchase foreign exchange reserves. SARB will sterilise inflows associated with foreign direct investment inflows using foreign exchange swaps.
Prudential framework for foreign investment by private and public pension funds, including the Government Employees Pension Fund (GEPF).
BUSA reported that they support the commitment to a flexible exchange rate management regime and believes that 'leaning against the wind' is the least costly option in dealing with the volatility of the rand. This approach, combined with reserve accumulation and exchange control reform can further alleviate the pressures on the rand.
According to the Chief Economist at the Industrial Development Corporation, Mr Lumkile Mondi, potential favourables to exchange rate management includes the increase in price competitiveness of exports, at least temporarily (bearing in mind the progressive erosion of such competitiveness depending on inflationary impact). This could lead to increased export market penetration, assuming there is appropriate demand. If price competitiveness and stability are sustained, it could lead to progressive recapturing of foreign markets and securing new external customer bases.
Local market could be regained if price competitiveness and stability is sustained. Exchange rate management could provide positive implications for the bottom line of commodity exporters whose external sales are denominated in foreign currencies, while operational costs are rand-based. Foreign tourism earnings could be increased as a weaker rand raises South Africa's attractiveness. Mr Lumkile Mondi pointed out that these factors could increase local production, employment gains, higher investment propensity and job gains.
Mr Lumkile Mondi further indicates that exchange rate management could contribute to higher dividend receipts (in rand terms) from South African investments abroad and potentially enhances the wealth effect for South African holders of offshore assets. Positive fiscal implications include potentially higher tax revenues due to increased economic activity, improved corporate returns and higher household incomes through employment gains. Implications of the Balance of Payments may be positive if export demand recovers substantially and significant import substitution is realised.
As indicated by Mr Lumkile Mondi, exchange rate management creates uncertainty over potential impact of intervention in terms of desired outcomes and their sustainability. The cost of interventions is dependent on the choice of instruments, while an abrupt unwinding of substantial speculative positions could have a destabilising effect, at least in the short-term, but effects could be long-lasting if investors' perceptions are unfavourable.
Considering South Africa's low savings propensity and its dependency on foreign capital inflows to finance its current account deficit and funding requirements, negative perceptions may have serious adverse repercussions. The timing of interventions is critical in order to minimise unintended consequences, for example, a negative impact on the cost of investment-related imports, while exports may not recover sufficiently due to weak global demand.
Exchange rate management could lead to a potential higher inflation environment (via imported inflation, especially input costs such as fuel and food items), with negative implications for interest rates, investment activity, employment, general cost of living and domestic consumption demand. FEDUSA asserts that the increased capital inflows and resultant appreciation of the rand is partly a result of a positive interest rate differential, but also a result of South Africa's relatively favourable fiscal position.
Although Government has opted for an exchange control relief as the main focus area, FEDUSA is of the opinion that this leaves the option open for tax measures. In normal times, a tax on capital flows may lead to less capital flows to South Africa. FEDUSA is therefore of the opinion that the exchange control relief is the right option under the current circumstances. The PBC indicates that as emerging market exchange rates appreciate, they suck in imports from advanced economies and struggle to expand their export markets. The massive trade deficits that exchange rate appreciation will generate for countries in the South Africa will constitute the basis for advanced economies to exit of the crisis. The PBC is also of the view that financing long-term investment, using short-term capital inflows, will create a massive imbalance in the national balance sheet, thus maturity mismatches will result, and high interest rates will be required to keep these mismatches away from binding.
While BUSA supports the view that international cooperation is needed to achieve a more stable international financial environment, the PBC argues that short-term capital inflows must be taxed because they place the level of the exchange rate in a manner that is inconsistent with the requirements of industrial development.
Mr Lumkile Mondi advised Government not to interfere with the prevailing exchange rate management policy as the cost of the intervention could be high and the desired outcomes of a proposed intervention may not materialise as observed in Brazil and other emerging economies. Mr Mondi suggested that the Government's long-term strategy should be to develop the infrastructure of the entire Southern African region, both to improve access to regional resources and to develop a local market to pick up slack left by the lack of growth in the US and Europe. Mr Mondi further cautioned that instead of fighting the Rand's relative strength, South Africa should use the opportunity to import the capital components necessary to underpin growth in the region, such as railway engines and infrastructure components.
Budget revenue is the amount of revenue available to the fiscus to finance expenditure after taking into account tax revenue, other revenue and transfers to other members of the Southern African Customs Union (SACU). Tax revenue is the largest contributor to budget revenue. Tax revenue is highly cyclical because taxes are levied on economic activity. This means that, if the economy is performing well, more tax revenue will be collected and vice versa.
South Africa's spending programmes have to be paid for. It is therefore reassuring to be able to note that the improved economic performance has contributed to a projected increase of R31 billion in tax revenue for the 2010/11 financial year, by comparison with an estimate during the 2010 National Budget in February 2010.
Total tax revenue is expected to amount to R679 billion in the 2010/11 financial year (25.3 per cent of GDP). A strong increase in value added tax (VAT) proceeds has been recorded, partly attributed to increased consumer demand, but also because of lower capital investment and the associated reduction in VAT refunds. Customs duty collections have improved, mainly as a result of higher vehicle and component imports. For the period ahead, tax revenue is expected to average about 26 per cent of GDP that is still somewhat below the levels recorded before the recession.
IDASA indicated that, although tax revenue performed slightly better in the 2010/11 financial year than anticipated and is set to continue doing so over the medium-term, the actual recovery of tax revenue levels to pre-recession levels will take considerable time. The overruns of this fiscal year largely reflect a highly cautious 2010 Budget, which did not make the mistake of assuming things would turn out much better than they did.
According to the 2010 MTBPS, the fiscal stance targets a combination of revenue and expenditure that will enable government to pay for existing programmes while reinforcing the sustainability of the public finances over the following three years.
BUSA welcomes the announcement that the budget deficit is expected to be narrowed to approximately 3 per cent of GDP by the 2013/14 financial year, and stabilisation of Government debt at approximately 40 per cent of GDP in the 2015/16 financial year. BUSA believes that the 2010 MTBPS has broadly struck the right balance between fiscal consolidation and being growth-friendly. However, the overall public-sector borrowing requirement needs to be managed carefully and that huge borrowing programmes by both Eskom and Transnet do not jeopardise long term borrowing costs for the country.
It is noted in the 2010 MTBPS that real non-interest government expenditure per person has doubled over the past eight years, which was made possible by buoyant growth and revenue, and the declining share of debt service costs in GDP. Government spending on infrastructure and social assistance continued to expand strongly during the economic downturn in 2008 and 2009 calendar years. Expenditure growth will be slower over the period ahead, averaging real growth of approximately 3 per cent per year.
A recovery in tax revenue from 24.4 per cent of GDP in the 2009/10 financial year to 26.
A rise in government debt-service costs from 7.5 per cent of expenditure in the 2010/11 financial year to 9.6 per cent by the 2013/14 financial year.
Table 3 (below) provides a summary of total government debt inclusive of 2007/08 and 2013/14 financial years.
Until recently, the constitutionally-required legislation setting out the procedure for Parliament to amend the budget has been enacted as the Money Bills Amendment procedure and Related Matters Act, 2009.
Most commentators welcomed the emphasis in both the unveiling of the new growth path and the 2010 MTBPS on the importance of partnerships. However, some indicated that the 2010 MTBPS did not contain much more detail on the new growth path which is intended to create five million jobs over the next ten years, thus reducing the unemployment rate from approximately 25 per cent to approximately 15 per cent by the 2014 calendar year. This is not surprising, given that the detail still needs to be worked out and other stakeholders be consulted.
Fiscal and monetary measures are being taken in response to the present strength of the Rand. However, some commentators cautioned Government not to interfere with the prevailing exchange rate management policy as the cost of the intervention could be high and the desired outcomes of a proposed intervention may not materialise.
In the context of the current economic and social challenges and that of a small open economy integrated to the global marketplace, a commitment to a prudent macroeconomic framework is crucial. Prudent fiscal management over years assisted South Africa to ride the tide of the deep recession. It helped the country to continue with its expenditure plans and, in the process, to act in a counter-cyclical way. However, fiscal policy alone cannot be expected to successfully address South Africa's challenges. Whilst macroeconomic policy can go a long way in creating a favourable macro-economic environment, it is important that successful implementation of the micro-level programmes and projects generate tangible outcomes.
The clarification of Government's stance on certain key macroeconomic issues provides a degree of certainty and predictability, and will further support both consumer and business confidence. The details of the new growth path were not included in this year's MTBPS, although many of the proposed aspects are already part and parcel of the MTEF. The debates and consultations which will generate greater detail on a new growth path will be an important opportunity to consider alternatives and to secure broad ownership of a truly developmental framework.
The Committees and most commentators commended the Minister of Finance on a balanced approach that was followed in the 2010 MTBPS.
11.1 The Minister of Finance should provide details on how National Treasury will supplement the proposed New Growth Path to Parliament. These details to form part of the 2011 National Budget in February 2011.
11.2 The Minister of Finance considers providing details on how the State plans to design and fund the much-needed universal health care system. This information may be included in the 2011 National Budget in February 2011.
11.3 The Minister of Finance provides more and updated details on how South Africa is dealing with an appreciating Rand. This information to be included in the 2011 National Budget in February 2011.
11.4 The Minister of Finance should provide the Committee with details on proposals to address corruption in the public financial system.
11.5 The Minister of Finance should provide the Committee with a progress report on the proposed wage subsidy as promised in March 2010.
11.6 The Minister of Finance should provide the Committee with further details on promoting small businesses.
Table 4 (below) contains a list of people who made oral and/or written submissions before the Committees, some in their personal capacity.
Mr. Pravin J. Gordhan
Mr. Nhlanhla Nene
Mr. Lesetja. Kganyago
Mr. Kenneth Brown
Mr. Andrew Donaldson
Mr. Dawie Roodt
Mr. Coenraad Bezuidenhout
Mr. Sidney Kgara
Mr. Woody Aroun
Mr. Dennis George
Mr. Len Verwey
The written submissions by the above-mentioned organisations are available on request from the Committee Secretariat.
BUSA, (2010), Medium Term Budget Policy Statement: Presentation to the portfolio Committee on Finance, Cape Town, 10 November 2010.
COSATU, (2010), COSATU Expectations on the Medium Term Budget policy Statement, Cape Town, dated 10 November, 2010.
George, D. (2010), Powerpoint presentation on FEDUSA 2010 Medium Term Budget Policy Statement Comments. The Joint Portfolio Committee on Finance, dated 11 November 2010.
George, D. (2010), FEDUSA Submission on the 2010 Medium Term Budget Policy Statement, Cape Town, 11 November 2010.
Gordhan, P. (2010), Medium Term Budget Policy Statement 2010's Speech, Parliament of RSA, Cape Town, 27 October 2010.
IDASA, (2010), Perspectives on the 2010 MTBPS. A Presentation to the Finance Committees, Cape Town, 11 November 2010.
Mondi, L. (2010), Impact of reforming exchange rate system on economic policy & broader policies: Some thoughts. A presentation to the Standing Committee on Finance and Select Committee on Finance, dated 10 November 2010.
National Treasury, (2010) Medium Term Budget Policy Statement, Pretoria: Government Printers.
National Treasury, (2010), Medium Term Budget Policy Statement: Presentation to Parliament, Cape Town, 28 October 2010.
NUMSA, (2010), Submission to the Joint Meeting of the Standing Committee on Finance & Select Committee on Finance, (National Assembly and National Council of Provinces): The Treasury and SARB are failing to manage our economy to promote growth and development- we need much lower interest rates and tighter exchange controls!
PBC, (2010), Submission of the Peoples Budget Coalition to the Standing Committee on Finance and Select Committee on Finance on the Medium Term Budget Policy Statement, dated 10 November 2010.
Roodt, D. (2010), The new Keynesian world and the MTBPS. A Presentation to the Standing Committee on Finance and Select Committee on Finance, dated 10 November 2010.
Verwey, L.; T. Dlamini, S. Durham, J Sylvester, and M. Zamisa, (2010), The 2010 Medium-Term Budget Policy Statement: Determining the limits of the possible: A closer look at the 2010 MTBPS. PIMS Budget paper 8, Idasa.
0n 8 February 2010, the Regional Court President of the Limpopo Province informed the Commission that Mr Rambau, a regional magistrate at Polokwane, had been arrested for corruption on 5 February 2010. Mr Rambau was arrested together with the prosecutor and an attorney. It is alleged that Mr Rambau, the prosecutor and the attorney arranged the outcome of a trial by pre-determining the sentence for financial reward.
Mr Rambau and his co-accused appeared in the Musina District Court on 8 February 2010 on charges of corruption. The matter was set down for 11 to 13 October 2010.
On 8 February 2010, the Ethics Division of the Magistrates Commission informed Mr Rambau in writing that the Commission was contemplating recommending that he be provisionally suspended from office, pending the outcome of an investigation into his fitness to hold office. He was requested to show cause, in writing, why such a decision should not be taken.
At its meeting held on 26 August 2010, the Commission, having considered Mr Rambau's response, resolved to advise the Minster to provisionally suspend Mr Rambau from office in terms of section 13(3)(a) of the Act. The Commission is of the view that that the charges against Mr Rambau are of such a serious nature as to make it inappropriate for him to continue to perform the functions of a Magistrate while the allegations are being investigated. The Commission is of the view that the alleged conduct by MR Rambau s of such a serious nature that it would justify his removal from office if he were found guilty of the misconduct charges preferred against him.
In light of the above, the Minster decided to provisionally suspend Mr Rambau from office pending the outcome of an investigation into his fitness to hold office of a Magistrate.
Having considered the report on the provisional suspension of Magistrate FR Rambau, the Committee recommends that the National Assembly confirms the provisional suspension.
Mr Skrenya is a Magistrate and Judicial Head at Cala. On 5 August 2009 the Director of Public Prosecutions: Transkei directed that Mr Skrenya be prosecuted on a charge of fraud.
On 18 September 2009, Mr Skrenya appeared in the Cala District Court. The criminal case was postponed on various occasions and was remanded to 21 and 22 September 2010 for trial. The criminal charge flow from misrepresentations that Mr Skrenya made to his sub-cluster head, Mr Mthimkulu: On 24 April, Mr Skrenya claimed he used his private vehicle on an official trip from Cala to Dordrecht and submitted a claim for a transport allowance but, in fact, he used a government vehicle. He was, therefore, not entitled to submit any claim for travelling allowance.
A preliminary investigation conducted into other complaints filed against Mr Skrenya found prima facie evidence that, on 12 May 2009, he irregularly refused to adhere to a request by the Prosecutor to withdraw a criminal charge against an accused before a plea was tendered, meru moto postponed the case to 30 June 2009 and ordered that the accused be kept in custody. This decision was later set aside by the High Court on special review. His conduct resulted in the Minster of Justice and Constitutional Development being sued for damages. It is further alleged that Mr Skrenya held a criminal court which was not properly constituted and the he postponed various criminal cases in chambers in the absence of the prosecutor.
On 26 October 2009, the Commission informed Mr Skrenya that it was contemplating recommending that he be provisionally suspended from office pending the outcome of an investigation into his fitness to hold office. He was requested to show cause why the decision should not be taken. In his response, he indicated that there was no need to provisionally suspend him as there was no possibility of him interfering with the criminal and misconduct investigations. He further indicated that he never at any stage had the intention to defraud the State of any money. He was of the view that the complaints were levelled against him because his sub-cluster head "is pregnant with hatred towards him".
On 26 August 2010, the Commission, having considered Mr Skrenya's response, resolved to advise the Minister to provisionally suspend him from office in terms of section 13(3)(a) of the Act.
The Commission is of the view that the alleged misconduct against Mr Skrenya is of such a serious nature as to make it inappropriate for him to perform the functions of a magistrate while the allegations are being investigated. It would be inappropriate for a judicial officer, appearing as an accused before a court of law on a charge of fraud to still sit on the Bench.
The Committee expressed its dissatisfaction at the amount of time taken by the Commission to finalise the matter.
Having considered the Report on the provisional suspension of Magistrate L Skrenya, the Committee recommends that the National Assembly confirm the provisional suspension.
Mr Morake is a Magistrate and Judicial Head at Lichtenburg. Several complaints were lodged with the Magistrates Commission against Mr Morake.
Attorneys Ranamane Phungo Inc alleged that Mr Morake had personally called their client into his office and instructed her to vacate the property she was occupying. This instruction was given to her although there was no eviction application before the court; no eviction order had been made by the court; nor had she consented to vacate the property.
The Provincial Head of the South African Police Detective Service, North West, requested that the Commission investigate a complaint made by one of its members against Mr Morake. The member was the Investigating Officer (IO) in a stock theft matter and had arrested a suspect in the case in Lichtenburg. The suspect was charged, appeared before the Lichtenburg Magistrate's Court and the matter was remanded. The IO alleges that a week prior to the remand date he was contacted by Mr Morake and ordered to appear before him at his office. Mr Morake threatened to issue a warrant for his arrest if he failed to do so. The IO complied with the instruction and attended the meeting. The accused was also present at the meeting. Mr Morake asked the IO if he would assist the accused. The IO refused. He later stated that he found the conduct of Mr Morake unusual and threatening.
A complaint was received from Legal and Tax Services (Pty) Ltd (a legal expense insurance company) through the Chief Magistrate of the North West Administrative Region. It is alleged that Legal and Tax Services had paid Mr Morake R950 to assist their client to secure a loan. Mr Morake failed to secure the loan. They requested that the payment be refunded.
In another incident, it was alleged that Mr Morake contacted a businessman, Mr Shohag and ordered him to see Mr Morake at his office. Mr Shohag was threatened with arrest if he failed to attend the meeting. Mr Shohag initially ignored the instruction but was later visited by three police officers who informed him that his employee had a problem with him and he had to go and see Mr Morake about this issue. Subsequently Mr Shohag and his two partners went to see Mr Morake at his office as instructed. Mr Shohag's employee was also present. Mr Morake forced Mr Shohag to sign an agreement that he (Mr Shohag) would conduct business with his employee. Mr Morake threatened Mr Shohag with deportation back to Bangladesh if he failed to follow the instructions. Mr Shohag later obtained an interdict against Mr Morake and reported the incident to the SAPS Organised Crime Unit.
On 13 July 2007, Mr Morake appeared in the Lichtenburg District Court on three charges of theft. The matter was postponed to 18 October 2010 for judgment.
Mr Morake became involved in a dispute involving the payment of arrears in respect of electricity in the amount of R 1 173. He order a woman involved in the matter to come to his office with her husband. The other party was also present during the meeting. Mr Morake insisted that the woman pay the outstanding amount to him personally rather than to the municipality. He threatened to lock her in jail if she did not comply with his instructions. A few days later she paid him the money on the understanding that he would pay the money to the other party in the dispute. Weeks later she was summoned to the Small Claims Court for payment of the amount of R1 173. The other party had not received the money. When she followed up with Mr Morake he made various excuses and finally stated that somebody had taken the money from his office.
On 10 February 2010, the Magistrates Commission informed Mr Morake in writing that the Commission was contemplating recommending that he be provisionally suspended from office pending the outcome of an investigation into his fitness to hold office. He was requested to show why the decision should not be taken.
On 26 August 2010, the Commission, having considered Mr Morake's response received on 25 February 2010, resolved to advise the Minster to again provisionally suspend Mr Morake from office in terms of section 13(3)(a) of the Act. The Commission is of the view that the existing evidence against Mr Morake is of such a serious nature as to make it inappropriate for him to perform the functions of a magistrate while the allegations are being investigated. It would be inappropriate for a judicial officer, appearing as an accused before a court of law in charges of theft, emanating from complaints within the district he is serving, to sit on the Bench.
The Commission holds the view that the existing evidence against Mr Morake is of such a serious nature that it would justify his removal from office should he be found guilty of the misconduct charges preferred against him.
Having considered the Report on the provisional suspension of Magistrate IWOM Morake, the Committee recommends that the National Assembly confirm the provisional suspension.
Mr Chauke appeared before the Specialised Commercial Crime Court on a charge of theft of a number of containers from Vitamine Laboratories on 18 September 2004.
On 8 November 2007, Mr Chauke, his wife and son were convicted of contravening section 37 of the General Laws Amendment Act 62 of 1955. They were all sentenced to 12 months imprisonment, suspended for a period of 5 years on condition that they are not again convicted of contravening section 37 of the Act during the period of suspension.
The Minister, on the advice of the Magistrates Commission, provisionally suspended Mr Chauke from office with effect from 5 February 2010. The suspension was recommended based on three charges of misconduct namely, the criminal conviction above; contravening the Regulations for Judicial Officers in the Lower Courts, 1994; and contravening the Code of Conduct for Magistrates. The suspension was confirmed by both Houses of Parliament on 1 and 4 June 2010, respectively.
On 20 November 2007, Mr Chauke's attorneys advised the Commission that they were instructed to appeal against his criminal conviction. The appeal was heard on 15 June 2010. Mr Chauke's conviction and sentence were set aside. The Commission, after studying the judgement, decided not to proceed with the misconduct charge based on the criminal charge.
The Commission proceeded with a misconduct inquiry in respect of the remaining two charges of misconduct. It was alleged that during the period October 2002 to July 2004, during and after official office hours, Mr Chauke retained and forwarded e-mails to other persons containing explicit pornographic material on and from a computer supplied to him by the Department of Justice and Constitutional Development for the exclusive use in the execution of his official duties as a magistrate. It was also alleged that he used the computer to access internet sites containing explicit pornographic or obscene material.
After considering the evidence placed before him at the inquiry, the Presiding Officer found Mr Chauke guilty in respect of failing to act at all times in a manner which upholds and promotes the good name, dignity and esteem of the office of a magistrate and the administration of justice. He was acquitted on the other count in that it was duplication. The Presiding Officer postponed the imposition of a sanction for a period of 12 months on certain conditions in terms of regulation 26(17)(a) of the Regulations for Judicial Officers in the Lower Courts, 1994.
Since the criminal conviction of theft, which formed the basis of Mr Chauke's provisional suspension, has been set aside by the High Court, Mr Chauke's further provisional suspension is not justified. The nature and seriousness of the charge of misconduct on which he was found guilty does not warrant his provisional suspension either, and the sentence imposed does not impact on his fitness to hold office.
As the basis for Mr Chauke's provisional suspension fell away, there is no reason to uphold his provisional suspension.
Having considered the report on the lifting of the provisional suspension of Magistrate MK Chauke, the Committee recommends that the National Assembly confirms the lifting of the provisional suspension.
On 9 October 2006, 28 August 2007 and again 23 November 2009, Mr Jassiem wrote to the Magistrates Commission for approval to run his practice as an attorney while permanently appointed as a Magistrate.
At its meetings held on 23 August 2007, the Commission resolved not to approve Mr Jassiem's request to be allowed to practise as an attorney. The Judicial Head of the Administrative Region was informed of the Commission's resolution on 12 September 2007 and was asked to inform Mr Jassiem accordingly.
It appears that Mr Jassiem was duly notified of the Commission's resolution. The Commission has, however, noted with concern that Mr Jassiem is apparently still practising as an attorney and that he is therefore deliberately in defiance of a decision by the Commission that he not allowed to practise as an attorney while holding the office of Magistrate.
Mr Jassiem ceased practising as an attorney on 9 October 2000 but recommenced to practise for own account as MN Jassiem and Associates from 1 November 2006.
He is the sole partner in the firm.
There are no other practitioners at the firm and that he personally applied for a Fidelity Fund Certificate for 2007, 2008, 2009 and 2010.
He is in possession of a 2010 Fidelity Fund Certificate and that he submitted an unqualified trust account audit for the period ending 28 February 2009 for MN Jassiem and Associates.
After considering the contents of the affidavit and further correspondence received from the Cape Law Society, the Chairperson of the Commission directed the Secretariat to request Mr Jassiem to give reasons why he should not be charged with misconduct for deliberately defying a decision taken by the Commission on 23 August 2007. The Commission wrote to Mr Jassiem on 12 November 2009.
Mr Jassiem was charged with misconduct on 11 December 2009. The misconduct inquiry commenced on 26 April 2010. He elected to conduct his own defence.
Although Mr Jassiem initially pleaded guilty to the main charge, his plea was altered to one of not guilty as he indicated that he never ran any practice as an attorney but was doing conveyancing and estate administration.
In his judgment, the Presiding Officer found Mr Jassiem dishonest: He had misled the Cape Law Society indicating in writing on 8 October 2006 that he had the Commission's permission to practise as an attorney. He had also misled his Judicial Head of Office and his conduct showed lack of integrity as an officer of the court.
After considering all the evidence presented before him, the Presiding Officer found Mr Jassiem guilty of misconduct on the main count and recommended that he be removed from office in terms of regulation of 26(17)(b) of the Regulations for Judicial Officers in the Lower Courts, 1994. The findings show Mr Jassiem's lack of integrity and honesty and that he is, therefore, unsuited to hold the office of a Magistrate. Mr Jassiem was given an opportunity to furnish the Commission with written representations in respect of the sanction recommended by the Presiding Officer.
At its meeting held on 26 August 2010, the Commission, having considered relevant documents as required in terms of regulation 26(22) read with regulation 26(19) of the Regulations for Judicial Officers in Lower Courts, 1994, the Commission resolved to accept the findings of the Presiding Officer and to recommend to the Minister of Justice and Constitutional Development to remove Mr Jassiem from office on the grounds of misconduct in terms of section 13(4)(a)(i) of the Magistrates Act, 1993.
Having considered the report on the suspension of Magistrate MN Jassiem, the Committee recommends that the National Assembly confirms the suspension.
The Minister, on the advice of the Magistrates Commission, provisionally suspended Mr Prinsloo from office with effect from 3 February 2010. The provisional suspension was confirmed by both Houses of Parliament on 1 and 4 June 2010, respectively.
The Commission's investigation confirmed that Ms S C van Wyk,, a female clerk employed at the Ermelo Magistrate's Office, had filed ten complaints against Mr Prinsloo. It was alleged that Mr Prinsloo, during the period 18 April 2008 to 5 May 2008, had on ten different occasions conducted himself in an unbecoming and embarrassing manner towards Ms van Wyk.
The misconduct inquiry against Mr Prinsloo commenced on 29 April 2010 and was finally concluded on 26 July 2010. Mr Prinsloo admitted to guilt on 10 charges of misconduct against him. The Presiding Officer found Mr Prinsloo guilty of misconduct as charged.
Afte considering all the evidence placed before him in mitigation, the Presiding Officer found that Mr Prinsloo's misconduct, although very serious, did not justify a sanction of removal from office. The Presiding Officer ordered that Mr Prinsloo be cautioned and reprimanded by the Chairperson of the Magistrates Commission and the Cluster Head within a month from the imposition of sanction. Mr Prinsloo was further ordered to tender a written apology to the complainant within seven days of the reprimand.. On 12 August 2010, Mr Prinsloo appeared before the Chairperson and the Cluster Head and was formally cautioned and reprimanded. Subsequently, he also tendered a written apology to the complainant.
As the Presiding Officer did not recommend that Mr Prinsloo be removed from office, as contemplated in section 13 of the Magistrates Act, No. 90 of 1993, his provisional suspension from office is no longer justified and there is no basis to uphold his provisional suspension.
Having considered the report on the lifting of the provisional suspension of Magistrate Prinsloo, the Committee recommends that the National Assembly confirms the lifting of the provisional suspension.
The Portfolio Committee on Home Affairs, having considered the subject of the Births and Deaths Registration Amendment Bill [B 18 B - 2010] (National Assembly - sec 75) and proposed amendments of the National Council of Provinces(Announcements, Tablings and Committee Reports, 3 November 2010, page 3662) referred to it, reports the Bill with amendments [B 18 C - 2010].
The Minister of Finance tabled the Medium Term Budget Policy Statement (MTBPS) on 27 October 2010, outlining the budget priorities of government for the medium term estimates. The MTBPS was tabled together with the Adjustments Appropriation Bill [B34 - 2010] and the Division of Revenue Amendment Bill [B35 - 2010] in Parliament. The Adjustments Appropriation Bill [B34 - 2010] was referred to the Standing Committee on Appropriations and the Standing Committee on Finance to consider and report, in accordance with their respective mandates as outlined in the Money Bills Amendment Procedure and Related Matters Act 9 of 2009.
Department of Communications.
According to National Treasury the spending for the first six months this year has increased by R26.4 billion when compared to previous year's expenditure in the same period. The adjusted amount of R6.2 billion was for salaries and housing allowances. An amount of R2.33 billion was adjusted for national government while R3.81 billion was adjusted for provincial government. Even though the 2010/11 national expenditure has improved for the first six months when compared to the 2009/10 financial year in the same period, some departments have spent less than 50 per cent of their budgets for the first six months and have submitted requests for their budgets to be adjusted due to unforeseeable and unavoidable expenditures and roll-overs. Although the Committee supports these adjustments it has noted that most of the unavoidable and unforeseeable expenditure was mainly due to the salary adjustments and housing allowances instead of policy priorities both at the national and provincial government spheres. Affected departments in this regard include Health (48.9 per cent), Water Affairs (37.7 per cent), Statistics South Africa (30.4 per cent), Trade and Industry (36.8 per cent), Rural Development (38.0 per cent), Home Affairs (35.4 per cent), Public Works (37.7 per cent), Communication (26.2 per cent) and Art and culture (44.3 per cent). The Committee is concerned about this state of affairs which is an indication of poor planning. Some of these Departments are the key pillars of the Medium Term Strategic Framework of government Priorities.
The Medium Term Budget Policy Statement indicated that the revised baseline allocations have been prepared taking into account the carry through costs of the 2010 salary improvements, higher costs of municipal rates and service charges, identified savings and reprioritisation proposals. In the 2010/11 financial year the overall increase amounts to R7.3 billion while a R67 billion increase can be seen over the Medium Term Expenditure Framework. The table below shows that an amount of R22.1 billion has been set aside for policy priorities over the MTEF period, proposed wage bill of R26.3 billion as well as adjustment to baseline of R40.8 billion. The Committee supports the adjustment allocations, however it has noted that the proposed wage bill over the MTEF is much higher than the amount allocated for policy reserves due to the inflationary wage settlement. This is a cause for concern. The Committee has noted that some of the departments have not yet filled their vacant positions, but have instead shifted the funds that were budgeted for vacant posts to other programmes. The proposed wage bill seems to be escalating when compared to the allocation for policy priorities. This means that fewer funds are being allocated for development and implementation of programmes, and will thus have a negative impact on the quality and completion of capital projects.
driving a more comprehensive rural development strategy; and intensifying the fight against crime and corruption.
These priorities are supported by a government strategy which includes the shifting of resources to labour intensive sectors of the economy. Furthermore, government will strive to improve State performance with specific regard to the delivery of services to the poor. In light of the current budget pressures, the Committee is of the view that limited resources should be utilised to produce maximum output, without compromising the quality of services.
The Medium Term Budget Policy Statement for 2010 has outlined the macroeconomic assumptions, fiscal and public expenditure dimensions of proposed development path. It emphasised the need for the increased infrastructure investment spending to faster growth and to reduce budget deficit over the next period. The estimated reduction of 4.1 per cent of the budget deficit for the 2010/11 which is projected to improve to 3 per cent of the GDP by 2013/14 financial year is noted. The government's outcome approach which provides framework for enhanced monitoring of service delivery including guidelines for results driven performance that forms part of the basis of ministerial performance agreements as well as related service delivery agreements is a step in the right direction. It was noted that the expenditure has increased by R67 billion relative to baseline over the Medium Term Expenditure Framework which is informed by the 12 outcome policy priorities which include education, health, infrastructure, and job creation.
The Committee believes that capital projects are the backbones of job creation which is part of policy priorities. However, the Committee remains concerned that the unspent funds amounted to R12.4 billion which was budgeted for capital projects in 2009/10 financial year. The Committee has noted, nonetheless, the new approach adopted by government which seeks to address weaknesses in budgeting and planning in such projects. The Committee identified a number of weaknesses and challenges in the area of procurement and supply chain management, and has since made recommendations in regards to this. Therefore, the interdepartmental team and proposed scrutiny of non governmental agencies and other accounts which is informed by these findings is one step in the right direction. In support of the job creation process, the Committee believes that such areas in government need to be monitored and evaluated since these are the key drivers of the capital projects procurement. The delays and termination of tenders due to irregularities is completely unacceptable as it hampers the levels of job creation and service delivery.
The Department of Water Affairs reported that to date it has created about 26 331 job opportunities through the Working for Water Programme. While the Departmental budget has been adjusted from R7.9 billion to R8.2 billion the Department has only spent 37. 7 per cent in the first six months, part of the adjustment was R35.6 million received from other adjustments. The Committee was concerned about the level of virements and shiftings of 36.7 per cent which exceeded the 8 per cent permitted by the Public Finance Management Act. As provided for in the PFMA, virements exceeding this threshold have to be approved by Parliament. Failure to attain Parliamentary approval will lead to the Auditor General reporting this as an unauthorised expenditure. The Department has reported an under expenditure in the first six months of 37.7 per cent. The Department of Water Affairs indicated that the under expenditure was due to the late submission of invoices by the Department of Public Works (DPW), unspent funds of Change Journey and Master Systems Plan (MSP), unspent funds allocated to replace Masibambane, regional bulk infrastructure: legal issues around Nandoni Dam project, delay in signing of Memorandum of Agreement by Municipalities, delay in submission of invoices by service providers.
The budget of the Department of Arts and Culture has been slightly adjusted from R2.40 billion to R2.44 billion. The Department has only spent 44.3 per cent in the first six months of 2010/11. Part of the adjustment was a R12 million roll over for 2010 FIFA World Cup and R18.6 million for Investing in Culture projects. The Department indicated that some 2010 World Cup projects were not finalised in March 2010 due to the fact that the event was in June 2010. Therefore the Department had to utilise its 2010/11 budget to finance these projects. The R12 million roll over will be utilised to supplement the budget for operational costs, legal fees, machinery rental, audit fees and SITA account which has been inadequately funded. An amount of R3.9 million was added for higher personnel remuneration increase which includes housing allowances.
The Committee was concerned about the lack of spending in the Investor to Culture project hence it is the view of the Committee that such projects are instrumental in the creation of jobs and poverty alleviation. The Department also indicated that an amount of R18.6 million could not be spent due to the investigation that was still being conducted in the Investor to Culture project which was aimed at verifying the legitimacy of various projects. The Committee needed more clarity on the R100 million expenditure which was used to maintain playhouses. The Department reported that it is responsible for all the playhouses which are located in various provinces. The Committee acknowledged the progress made thus far and also indicated that programmes such as EPWP, Working for Water, Working for Energy incentives need to be well supported and ensure that all provinces are spending their allocations according to planned targets in order to expand the levels of job creation.
The expenditure of the Department of Trade and Industry at end September was 36.8 of the adjustment appropriation of R6.2 million for the year as a whole. In comparison to the mid-year expenditure in 2009/10, the expenditure in the first six months of 2010/11 decreased by 25.2 percent. The Department of Trade and Industry also reported on a number of enterprise investment project that were supposed to create jobs such as the East London industrial development zone which created higher than the estimate for the year. Due to the economic crisis some projects slowed down in this regard than estimated such as the Richards Bay industrial development zone. Creation of decent employment through inclusive economic growth was better than anticipated 230 projects where implemented, compared to the projected 275 for the year. The total value of investment and export credits programme has already reached its target to create 19 000 jobs for the year.
The Department of Communication was also invited to be part of the MTBPS process due to its under expenditure of 26 per cent in the first six months of the 2010/11 financial year. The Committee was concerned at the lack of cooperation and unprofessionalism showed by the Department upon being invited to appear before it. This was seen as a clear indication that the Department undermines Parliament and its processes. The Committee invited the Department to a public hearing on the Adjustments Appropriation Bill but the Department could not honour the invitation. When the Acting Chief Financial Officer (CFO) appeared before the Committee, the Committee expressed it's displeasure at the appearance of the CFO instead of the Acting Directors General as the Accounting Officer of the Department. The Committee indicated that this would limit its engagement in seeking clarity on crucial issues which the Acting CFO might not be able to account on as he is not the Accounting Officer. No letter of apology was received from the Acting DG for not being able to attend the hearing.
The expenditure of the Department as at end September was at a concerning figure of 26 per cent In comparison with the mid-year expenditure in 2009/10, the Department had spent 31 per cent which was also an under expenditure. In the current financial year this became even worse since it has decreased by 5 percent when compared to the previous financial year. According to the department the reasons that led to under spending were mainly due to capacity constraints, delays in the implementation of certain projects, reshuffling and backlogs in the Department. However, the Department is convinced that with the reconstitution of the Department and the appointment of the Acting General-Director things are going to improve.
During its oversight the Committee discovered that more jobs can be created in the EPWP, through innovativeness and making sure that labour intensive programme is a condition of the contract between the Department in question and the contractor. The Committee also welcomes a new economic growth path which is aimed to create job opportunities particularly for young people. The Committee welcomes the proposed assessment for youth employment projects and incentive scheme which will be operating through tax system which aims to encourage the employment of youth in businesses as well as in the non governmental sectors. The MTBPS outlined the allocation of R1 billion for 2011/12 and R2 billion for 2012/13 and R3 billion for 2013/14 which is aimed at supporting projects that demonstrate a potential of cost effective job creation over the MTEF.
Despite the number of jobs that have been created in various areas, the Committee remains concern about the level of virements and shifting of funds which could have contributed towards creating more job opportunities.
The Health Sector Delivery Agreement aims to reduce infant and maternal mortality rate, reduce child mortality to 30-40 per 1000 births over the medium term and also make further progress in preventing and controlling HIV/AIDS. However, the mid term report of the Department of Health indicated that severe staff shortages in forensic chemistry laboratories have led to backlogs and targets not being met in this regard. Furthermore the Department acknowledged that the delays in the filling of vacant posts in the National Department of Health have lowered the accreditation process, though the audits tools have been completed and piloted. However the Department must have a programme in place to respond to this challenge as well as to meet the targets and Millennium Development Goals by 2014.
While the Millennium Development Goal (MDG) 5 reported that there has been an improvement in the antenatal care coverage and usage of modern contraceptive method maternal mortality is still amongst the challenges. The MDG6 reported that HIV prevalence has been stable and there seems to be a decline between the ages of 15- 24 years old from 10 to 8.5 per cent in 2008. Millennium Development Goals 4 acknowledges the fact that the infant and child mortality rate is unacceptably high in South Africa compared to international levels. The committee supports the interventions such as immunisations, prevention from mother to child HIV infection which has been undertaken by the Department of Health. This will assist to reduce child mortality, enhance nutrition and primary health care. The Committee supports the proposed spending which will focus on improving the monitoring of women and infants after child birth, upgrading support and training paediatric and maternal workers in district hospitals.
However, when the Committee raised concerns about the increase in the impact of HIV on infant and child mortality. The Department indicated that there has been a high level of inaccurate reporting on such matters done by different organisations which brings a lot of confusion in the society. Furthermore, the Department indicated that the infant and child mortality cannot be treated in the isolation of morbidity. While the Committee was concerned about this level of inconsistency and inaccurate information, it advised the Department to bring all of these organisations under one roof to come up with the most relevant and accurate statistics. The Committee supports the initiative taken by provincial health departments to remedy and improve their financial management. The Committee welcomes the agreement on the Occupation Specific Dispensation (OSD) reached between the Department and 40 health therapeutic groups to retain most critical and skilled health staff and the prioritisation of filling important vacant posts.
It is noted that though the department has under-spent in the first six months, the budget of the department has been adjusted from R21.4 billion to R21.6 billion an amount of R146 million was adjusted to its budget which includes R49.6 million from roll-overs and R105 million from unforeseeable and unavoidable expenditure. This also includes an amount of R9.7 million which was adjusted for increased remuneration on personnel and housing subsidies for certain programmes. The Department made virements and shifting of R6.1 million or 1.4 per cent, this movement of funds was mainly done in order to strengthen service delivery on programmes 1 and 3. The Department and treasury indicated that most of the shifting and virements were done from the savings made due to the reduction on consultants and special services in the 2010 FIFA World Cup expenditure. While the Committee has noted the movement of funds and under spending of the department in the first six months, during its oversight the Committee identified a number of challenges this include the non availability of mobile or immobile clinics in some areas, usage of mud structures as clinics, prepaid electricity and solar panels of which some of these require maintenance and repairs yet it was not clear whose responsibility it is to maintain this facility.
The Committee welcomes the additional amount of R1.5 billion to Comprehensive HIV and Aids programme as well as R7.3 billion which was added to the provincial equitable share to address the priority issues in 2010/11. The Committee supports the introduction of Health National Insurance Scheme (NHI) which is going to be phased in by 2012/13 financial year. This programmes aims to improve and bring about the universal access to health facilities for all South Africa whether reach or poor. While the Committee appreciates the progress that have been made with regards to the Hospital Revitalisation programme but it was concern about the slow pace and under performance of this programme in other provinces.
Most of the challenges facing the education system include substantial backlogs in buildings and facilities, insufficient number of qualified teachers, poor school management and high absenteeism among students. The funding of R40 billion to provinces in the baseline to eradicate unsafe school buildings is welcomed and the committee will monitor the performance of such allocations. During its oversight visit undertaken in August 2010, the Committee found that, some provinces were under spending on certain conditional grants particularly those that are earmarked for school infrastructure. The under-spending persisted despite the high level of inappropriate structures including mud schools.
The Committee's concern is that this culture compromises the dignity and safety of the learners and hampers the delivery of basic services such as water and electricity. The proposed national assessment in literacy and numeracy for all grade 3 and 6 learners which will be conducted as part of the long term exercise to benchmark and raise educational level is a step in the right direction. While the learner work books and teacher lesson plans for literacy and numeracy for grade R to grade 6 will be provided in the beginning of 2011, the Committee is still concerned whether or not appropriate measures have been taken by the Department of Basic Education to avoid delays in the distribution of workbooks which occurred in the current financial year resulting in the cancellation of the tender.
The proposed partnership between the Department of Basic Education and the Development Bank of Southern Africa to support educational infrastructure is welcomed. The Committee has noted the proposal to increase the number of fully qualified teachers which will be supported through the Funza Lusaka Bursary Programme. The Committee supports the additional R5.4 billion which is aimed at the implementation of the Occupation Specific Dispensation (OSD) for the next three years. Although the Committee supports this allocation for the baseline, it remains concerned about the under expenditure by the Department of Basic Education during the first six months of the 2010/11 financial year.
The Committee noted that the Department has received a R1 million roll over and an adjustment amount of R4.7 million which was divided almost to all programmes. An additional R6.9 million was for the higher personnel remuneration and housing subsidy allowance and an amount of R1.9 million was transferred for the function shifted to the Department of Higher Education and Training for an annual contribution to the Common Wealth of Learning. The Department has spent 45.9 per cent in the first six months of 2010/11 financial year.
The mid-year performance report of the Department of Basic Education indicated that the Department has exceeded its target of new 6000 learners enrolled for Kha Ri Gude mass literacy campaign in the first six months. The Kha Ri Gude campaign aims to improve the basic literacy and numeracy levels of adults. The Department managed to achieve 2000 more new learners; this was due to savings made in the production of learner and educator support materials and the costs of stationery which allowed more learners to be accommodated in the programme. The report also indicated that the number of learners had exceeded the yearly estimate which ranged between 480 000 and 486 000 as a results of more learners being enrolled.
The proposed improvement and expansion of University and Further Education and Training enrolment is a step in the right direction. This will assist in addressing the misalignment between the needs of the labour market and the education provided by institutions. Even though the Department has spent 72.3 per cent in the first six months, the Committee noted that the majority of this expenditure went to the transfer budget which was earmarked for NSFAS, Further Education and Training (FET) colleges and funds for the establishment of the new Department. The Committee's view is that there is need to ensure that the FET colleges are properly utilised and enjoy the same kind of prominence as universities do.
Land Reform and Agricultural Development have a considerable potential to contribute to rural development, job creation, poverty alleviation, food production and redressing the past dispossession of land. It is the Committees view that the Department of Rural Development is not the only department which can fast track rural development. The complexity of rural development requires a number of Departments to come on board such as Agriculture, Energy, Public works, Water Affairs, Social Development, Cooperative Governance and Traditional Affairs, Trade and Industry, Economic Development, Education, Health and Transport. The role of Department of Rural Development is to coordinate such programmes.
The Committee has noted the additional funding to address the 7000 outstanding land claims. It also noted the new model which is going to be piloted aimed at supporting emerging farmers in partnership with the Land Bank. The Committee supports the proposed additional funding for provinces to improve the quality of extension services which is offered to newly settled farmers. While the Committee supports all these interventions, it is its view that a lot still need to be done to drive a more comprehensive rural development programme. While the 2010/11 MTBPS has made a number of interventions, it seemed not to be suggesting an intervention relating to challenges identified during the implementation of Land Assistance Act in the land reform programme.
The Land Assistance Act No 126 of 1993, makes provision for emerging farmers to be assisted in order to further their agricultural aspirations as well as change land ownership in the country through Land Redistribution Programme by Government. The Act is often misused for corrupt purposes by way of sub-divisions and the resale of subdivided land and illegal evictions.
The Annual Performance Plan (APP) indicates that the strategic priorities of the Department of Police are to combat crime to ensure that all people are safe. Whilst there has been a decrease in crime in general in the first quarter 2010/11 in some areas such as contact related crime, property related crime, and detection, the rate of crime has increased. Irrespective of the progress made to reduce the crime rate in certain areas, levels of crime are still unacceptably high in South Africa. It is well understood that the Annual Performance Plan (APP) of the Police was revised after the revision of the Estimate of National Expenditure 2010. The main focus of the Crime Prevention Programme is precisely to reduce crime levels specifically of the trio crimes and crime against women and children as well as the implementation of a comprehensive crime prevention strategy which will be focusing on reducing illegal firearms.
It is the view of the Committee that the reduction of crime mainly depends on members of the Police response and visibility together with the involvement of society at large. In its annual report, the Department of Police indicated that part of the challenges the Department is facing include the court case backlog, prisons overcrowding, high proportion of violent crime, as well as high rate of recidivism. The Committee supports an additional funding over the MTEF which seeks to expand detective services, crime intelligence and crime prevention particularly in local stations and the proposed increase of Police members from 200 660 to 203 025 by 2014/15. Part of the capacity expansion over the MTEF, will be to increase the Special Investigation Unit (SIU) to 650 members by 2013/14 to fight corruption. The Committees welcomes this move since the fight against crime and corruption is one of the government priorities for five years.
The budget of the South African Police Service (SAPS) has been adjusted from R52.5 billion to R53.5 billion for the 2010/11 financial year. Therefore the total additional budget amounts to R973 million from other adjustments. This amount has been added precisely to address the issue of increase in remuneration packages and housing subsidy for various programmes, visible policing being the highest. Even though the Committee supports the adjustment but it is still concerned that the department had only spent 46 per cent in the first six months of 2010/11. This level of under expenditure is attributed to the slow spending on Information Technology Service which is rendered by SITA.
Furthermore, the slow spending was also attributed to delays in procurement processes such as the awarding of six tenders by the SITA for Integrated Justice Services Programme (IJSP) in the first six months. The 2009/10 Annual Report of the Department of Police has highlighted some of the challenges that the Department is faced with. These include the lack of control systems within the area of supply chain management, especially the management and controls of assets. The Committee is concerned about this state of affairs since the larger portion of the budget is largely dominated by current payments which accounts for R49.3 billion. Part of this figure goes to goods and services and to capital assets. To this end the Committee is of the view that urgent action needs to be taken by the Department to address these supply chain management issues.
Although the Committee did not engage with the Department of Police, the Annual Report of the Department indicates a high level of expenditure under goods and services which is dominated by consultants, contractors, agencies or outsourced services. This is indicative of the lack of capacity. This level of expenditure has increased from R1.22 billion in 2008/09 to R1.44 billion in 2009/10. Of note is that the largest portion of this amount was for contractors (R622 million in 2008/09 to R816 million in 2009/10). The second largest expenditure was for agencies and other outsourced services which increased from R497 million in 2008/09 to R516 million in 2009/10. Payments for infrastructure and planning consultants increased from R3.4 million in 2008/09 to R5.3 million in 2009/10. The Committee is concerned about the utilisation of financial resources on consultants instead of the Department building its own internal capacity thereby creating more job opportunities. This higher level of expenditure on consultants is an indication that consultants are used both for policy work and even for functions which SAPS is supposed to have in its in-house capacity.
The Committee remained concerned about the capital work project which took longer than expected particularly the building of Inanda and Esikhawini police stations. According to the Annual Report of the South African Police Service, the Department of Public Works was responsible for these projects and the costs of these projects ended up escalating higher than the projected budgets. It is the view of the Committee that in order for the priorities of government to be achieved, these priorities need to be clarified and prioritised by all stakeholders during the budgeting and planning stage. It is also the view of the Committee that planning for the priority areas of government should be taken more seriously and can not be treated in the same manner as none prioritised areas. Reporting, transparency and accountability in these areas should be enhanced at all spheres of government so that problems and challenges are identified and addressed accordingly.
The Committee found that there is a clear persistence of the non compliance with the provision of section 43 of the Public Finance Management Act which allows the Departments to make virements or shiftings of not more than 8 per cent. In the first six months of 2010/11 financial year the following departments have shifted and vired more than 8 per cent which then needs to be approved by Parliament: the departments of Water Affairs, Trade and Industry, Rural Development, Statistics South Africa, Arts and Culture, Higher Education, Correctional Services, Defence, Human Settlement, Science and Technology, and Tourism.
Subsection (b) of Section 43 of the PFMA does not allow the money which is earmarked for transfers to be shifted to defray current payments. The Committee found that the departments of Art and Culture, Defence and Water Affairs in shifting their funds have not complied with this provision of the PFMA since some of their transfer budgets were shifted to defray current payments.
Subsection (c) of section 43 does not allow the utilisation of capital budget to defray current payments. The Committee found that, contrary to this provision, the following departments have defrayed current payments through capital budgets: International Relations and Cooperation, Statistics South Africa, Higher Education, Correctional Services, Defence, Rural Development and Land Reform, Water Affairs.
The Committee established that the delays in the completion of two Police stations (Inanda and Esikhawini) by Department of Public Works has led to escalated costs of building these stations when compared to the initially projected costs.
Most of the adjustments have been made to accommodate the increased remuneration of employees, housing subsidies and roll-overs. The Committee also found that most of the shiftings and virements were done from budgeted vacant posts under the guise that departments are saving instead of under spending.
The under expenditure in the Department of Health was due to delays in finalising wage agreements, accruals amounts still to be paid, Capital expenditure funding being reviewed to address the turnaround strategy and the lack of spending on the Hospital Revitalisation programme in some provinces such as Mpumalanga, KwaZulu-Natal, Free State and Eastern Cape.
The Standing Committee on Appropriations, having considered the adjustments Appropriations and heard comments from identified stakeholders, recommends the House approves the adjustments Appropriation Bill [B34 - 2010] (National Assembly - section 77) without amendments.
That the National Treasury should monitor compliance with section 43 of the PFMA and report its findings to Parliament.
The Department of Health should expedite the implementation of the Hospital Revitalisation programme so as to improve the level of availability, affordability and accessibility of health facilities for TB, HIV and AIDS, and other diseases.
The Standing Committee on Appropriations agrees to the Adjustments Appropriations Bill [B34 - 2010] (National Assembly - section 77) without amendments.
The Minister of Finance tabled the Medium Term Budget Policy Statement (MTBPS) on 27 October 2010, outlining the budget priorities of government for the medium term estimates. The MTBPS was tabled together with the Adjustments Appropriation Bill and the Division of Revenue Amendment Bill in Parliament. The MTBPS was referred to the Standing and Select Committees on Appropriations (the Committees) to consider and report, in accordance with their respective mandates as outlined in the Money Bills Amendment Procedures and Related Matters Act No. 9 of 2009.
the proposed division of revenue between the spheres of government and between arms of government within a sphere for the next three years; and the proposed substantial adjustments to conditional grants to provinces and local government, if any.
This is the second MTBPS introduced in the Fourth Parliament particularly after the introduction of the Money Bills Amendment Procedures and Related Matters Act No. 9 of 2009. The MTBPS provides the framework within which each sphere has to then prepare detailed budgets. The Money Bill Amendment Procedures and Related Matters Act affords Parliament an opportunity to make recommendations and changes to the fiscal framework and the Division of Revenue. While Parliament is required to make recommendations, it is important for Parliament to take into account inputs from other stakeholders such as civil society, labour, businesses, Chapter 9 institutions and others. Through the 2010 Medium Term Budget Policy Statement, it was indicated that South Africa needs to forge a new growth path to focus on its own specific transformation challenges which include the structural of wealth, ownership and control of resources, options for empowerment and broadening participation in the economy, access to land and, improving public education and health.
The total allocations to national departments decreased by R7.0 billion, allocation to provinces increased by R4.1 billion and allocations to local government increased by R0.3 billion.
The Standing and Select Committees on Appropriations jointly invited the National Department of Cooperative Governance (DCoG), South African Local Government Associations (SALGA), Financial and Fiscal Commission (FFC), Human Science Research Council (HSRC) to comment on the MTBPS as they were considered strategic in the implementation of policy priorities. The MTBPS Hearings took place on the 2nd and 3rd November 2010.
The Financial and Fiscal Commission (FFC) highlighted the potential risks to the moderate economic growth projections for the South African economy, which include: interruptions in the global recovery, exchange rate volatility, human resource needs and the proposed fiscal austerity/consolidation framework over the medium-term.
The FFC indicated that for the South African economy to grow faster; a more inclusive economic growth strategy that is multi-faceted is required in its approach. The strategy should focus on poverty alleviation, the labour absorption capacity of the economy, the productivity of public expenditure (i.e. quality improvements in access to social services), accelerated implementation of approved infrastructure projects and increased spending on maintenance and rehabilitation and the rooting out of corruption in all sectors of economy. The FFC requested that more detail be provided in relation to the economic policy direction of government which frames the fiscal environment in which the intergovernmental fiscal relations system must operate for effective Commission engagement.
The FFC raised concerns with respect to the downward revisions of agriculture and health spending over the medium term, particularly in light of the fact that these sectors contribute positively to economic growth and form part of the identified 12 national priority outcomes. The FFC further raised concerns about lack of consultation by some government departments when making financial decisions as per Section 1(3) (1) of the Financial and Fiscal Commission Amendment Act No 25 of 2003.
The FFC noted that national government's share of the Division of Revenue declines over the 2010/11 Medium Term Expenditure Framework (MTEF), whereas the provincial and local government shares increases over the same period. The FFC submitted that the current formula for determining the Local Equitable Share (LES) may be unconstitutional in respect of the Revenue-Raising Component (RRC). Furthermore, the FFC cautioned against potential negative effects on middle income municipalities resulting from the government's approach to focus on targeted funding for poorer municipalities to the detriment of middle income municipalities.
The FFC also indicated that the biggest expenditure challenge in the provincial government is the rising personnel spending compared to other spending items that lead to growth and development. With respect to the local government sphere, the FFC said that the biggest expenditure challenges are the poor performance against conditional grants (particularly infrastructure) highlighted by rollovers amounting to R1.8 billion in the 2010 / 2011 financial year.
Expanded Public Works Programme (EPWP) Incentive Grant for Infrastructure - The FFC noted low level of spending from this grant. The FFC is of the view that more effective reporting of EPWP projects will allow municipalities to access this incentive grant.
The Committee asked the FFC to elaborate what it meant by the unconstitutionality of the revenue raising component of the local equitable share formula. The FFC explained that the unconstitutionality of the LES formula refers to the current practice whereby deductions or additions to municipalities' equitable share are based on actual revenue collection figures, which disregards the municipality's capacity to collect revenue and the degree of effort made by the municipality to collect all revenues owed. The FFC advised that this is in contravention of the Constitution. Hence, the FFC recommends that the LES formula should contain a revenue-raising capacity variable.
The Department of Cooperative Governance (DCoG) provided the Appropriations Committees with an overview of key focus areas and budget priorities over the 2011 MTEF that will contribute to the national priority outcome 9: "A responsible, accountable, effective and efficient local government system". Key strategies and programmes proposed by the Department for the 2011 MTEF include: a differentiated approach to supporting local government (i.e. covering aspects of finance, services and labour), propose a single window of coordination, support to municipal finance and administration capability, propose a refined ward committee model to deepen democracy, improved support to human settlements outcomes, implementation of the community work programme and accelerated access to basic services.
An additional allocation of R16.
An additional allocation of R26.3 billion over the 2011 MTEF to the BIF is requested on the basis of unlocking the delivery of reticulation services by funding bulk infrastructure and procuring well located land towards addressing backlogs in order to ensure universal access to basic services.
An additional allocation of R4.2 billion over the 2011 MTEF to the LGES is requested on the basis of complementing the institutional component of the LGES by funding critical skills in municipalities, prioritising water and sanitation over the MTEF in order to build long-term municipal institutional capacity through the proposed reconfigured Municipal Systems Improvement Grant (MSIG) into the Local Government Institutional and Systems Support Grant (LGISSG).
The DCoG further submitted that additional funding has also been requested for the following departmental programmes: Special Purpose Vehicle, Disaster Management, and the Implementation of the Masters Systems Plan for National Disaster Management Plan, Municipal Infrastructure Audit, Local Government Turnaround Strategy and the Township Renewal Programme.
The DCoG has identified a lack of cooperation and coordination between the three spheres of government as a risk and will attempt to mitigate the risk by proposing that the SPV be a single window for coordination among the three spheres of government. However, the proposed model still awaits cabinet's approval.
The South African Local Government Association (SALGA) indicated that the economic recovery was a welcome sign for local government. However, SALGA also cautioned that the economic recovery bears pressure on demand for quality municipal services and hence the ability of municipal services to support the expansion of productivity within local industries and the sustainability of key economic sectors operating within municipal boundaries.
SALGA further recommended a comprehensive review of the local government fiscal framework to address amongst others, the limited vertical share.
The vertical share of local government meets the increasing demand for municipal services.
Furthermore, this should be coupled with efforts to build the capacity of weaker municipalities to spend efficiently and effectively.
A concern was raised as to whether the proposed minor adjustments to the local government equitable share (LGES) formula to allocate more funding towards poorer municipalities are substantive enough to address institutional challenges, such as: the need to appoint skilled personnel to manage finances, human resources, service delivery functions and core administration functions. In addition the availability of credible data on key variables relating to the socio-economic demographic and spatial profiles of municipalities need to be addressed not only to update the data underpinning the LGES formula, but also a more fundamental review of the structure of the formula itself.
Increase funding for the water services operating subsidy grant to assist municipalities struggling with refurbishment and maintenance.
Since infrastructure funding remains a challenge; it was argued that there should be an explicit link between municipal infrastructure grant (MIG) allocations and LES allocations especially in smaller municipalities. Funding should be set aside through MIG or outside for the funding of refurbishment and upgrade of existing infrastructure in smaller and poorer municipalities. SALGA welcomed the envisaged devolvement of the housing and public transport functions to cities and the increase in the Devolution of Property Rates Grant.
The Committees on Appropriations raised a concern as to the perceived lack of support provided by SALGA with respect to capacitating municipalities. SALGA responded that in support of municipalities they are partnering with universities who are service providers to strengthen the capacity of financial management, for example University of Witwatersrand is offering a course in financial management, expenditure and oversight. Furthermore, SALGA reported that they are reviewing the possibility of electing a permanent member to the National Council of Provinces (NCOP) to provide support to the Committees concerning local government matters.
Furthermore, the Committees on Appropriations sought clarity on the impact of the new demarcations and SALGA reported that there are 382 new wards in the country which will have a huge financial burden to the government particularly in Johannesburg where there are more than 60 new wards. This also implies the increase in the number of councillors which increases the amount allocated in respect of the institutional component of equitable share which funds the payments of councillors.
The Human Science Research Council (HSRC) applauds the Appropriations Committees and the Ministry of Finance for enabling public engagement with the national budget priority setting and decision making processes. Further, it applauds efforts to chart a new inclusive growth path that serves as an agenda for collective action.
It gives due attention to rural development, youth employment, the Industrial Policy Action Plan and the Community Works Programme.
The HSRC noted the insufficiency of progress with respect to broad education, health and economic indicators. The HSRC recommend that investment in these broad areas targeted for priority need to be further specified. With respect to Education, the challenge is how and where to intervene, in order to break the cycle of the education and development trap. Substantial investments in early learning, through reception year and foundation phase of schools are critical to breaking the stagnation of low performance scores.
The Aids epidemic is stabilising, however intensive efforts are still required. The 3rd national HIV prevalence, incidence and communication survey (2008) revealed a number of positive trends. A decline in the HIV prevalence in the teenage population (15-19 years) has been observed, as well as a decline in mother-to-child infections. However, HIV infection risks remain high in the country, with women aged between 25 and 29 years continuing to record very high levels of HIV infection.
In respect of economic growth, the HSRC noted the importance of a knowledge economy. A knowledge economy contributes to the growth of an economy. South Africa scores are low in respect of the knowledge economy index and the number of full time equivalent researchers per 1 000 people compared to its counterparts. Furthermore, there has been slow uptake of the Research and Development (R&D) tax incentive by the private sector and to what extent has the requisite institutional reforms and actions to support the incentive regime been implemented by government. Hence, the HSRC calls for the government to continue to prioritise R&D and monitor and evaluate programmes that has to deliver on R & D outcomes.
The HSRC, furthermore placed emphasis on the need for research information to inform medium term expenditure decisions, with concern being raised as to whether national data collection needs in the areas of health and education are receiving sufficient allocations from national funding. The HSRC proposes a new national health survey (i.e. South African National Health and Nutrition Examination Survey [SANHANES]) that will provide real-time annual monitoring of the health status of the nation and fill the current gap in national health surveys. Furthermore, proposes accessibility modelling (that will identify access norms and standards, demand for services, service infrastructure supply etc.) and strategic use of Geographic Information Systems (GIS) capabilities for spatial optimisation of services, resulting in improved service delivery.
The HSRC commends the acknowledgement in the MTBPS of procurement and tender fraud which is currently under investigation and the efforts of the Inter-Ministerial Committee on Anti-Corruption in its efforts to address inefficiencies in, and improving the effectiveness of public management. The HSRC also proposes a closer examination of the nature and scope of service delivery protests to avoid future conflicts with communities and facilitate implementation, given the imminent increases in tariffs and user charges.
What conditionalities could be attached to social welfare grants?
What is the optimal percentage share of GDP that need to be invested in R&D activities?
What comparative studies has the HSRC undertaken in relation to the economic growth potential of cities?
The HSRC responded that government has been proactive by intervening in critical areas such as curriculum and teacher/educator training to bring about positive outcomes. The HSRC indicated that it would provide empirical evidence of factors affecting educational outcomes.
The HSRC explained that the prevalence indicator could be misleading as it does not reflect the positive trends, such as the fact that HIV/Aids patients are living longer as a result of anti-retroviral treatment and more people are becoming aware of their HIV/Aids status. Prevalence is measured according to the number of new HIV incidents reported and the mortality rate of HIV infected people or Aids patients. The HSRC indicated that in the Western Cape, TB forms part the Burden of Disease Programme, whereby HIV/Aids and TB are diagnosed and treated together. This has resulted in cost savings and improved diagnosis and treatment of HIV/Aids and TB. The HSRC were of the opinion that the Western Cape model could possibly be implemented across the country.
Conditionality in respect of the proposed youth employment grant could be that the individual should show proof of actively seeking for work in order to qualify for the grant.
The HRSC reported that R&D as percentage share of GDP has declined, despite government committing to 1 per cent of GDP, Currently the R&D as percentage share of GDP is 0.93 per cent. The HRSC recommends an optimal percentage share of 1.5 per cent of GDP.
The HRSC reported that it forms part of a research group that is reviewing and assessing the socio-economic status of cities. Findings are that the economic performance of cities have benefited the country as a whole and have been the drivers of employment creation. On the other hand, it has placed greater demand on cities infrastructure and service delivery, resulting in greater pressure on the cities finances. Hence, the HRSC cautions the government and recommends a more balanced approach in investment and the distribution of investment between rural and urban areas.
The Committee established that the 2010 MTBPS made more budget provision for the wage bill. Concerns were raised about the increase in the wage bill due to the higher inflationary wage settlement.
Although Section 1(3) (1) of the Financial and Fiscal Commission Act (2003), as amended, provides for a Commission to act as a consultative body and make recommendations to organs of state in all spheres of government on financial and fiscal matters, the Financial and Fiscal Commission alluded, during the hearings on the 2010 MTBPS, to the fact that there has been a lack of consultation between the Department of Cooperative Governance and the Commission.
The Committee established that there was a lack of expenditure on conditional grants which has led to a roll-over of R1.8 billion in the 2010/11 financial year. It is the view of the Committee that these grants are very instrumental in the infrastructure development and job creation and should therefore be spent appropriately.
The Committee established that technical and vocational education system is one of the areas which contribute towards economic development and job creation.
The Committee established that there is a lack of consultation by government departments with regards to section 1(3)(1) of the Financial and Fiscal Commission Act.
That the House adopts the 2010 Medium Tern Budget Policy Statement.