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TUESDAY, 20 JUNE 2006
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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The House met at 14:00.
House Chairperson Mr G Q M Doidge took the Chair and requested
members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
PRESIDENT THABO MBEKI’S BIRTHDAY
(Draft Resolution)
Mrs R A NDZANGA: Chair, I hereby move without notice:
That the House –
(1) notes that on Sunday, 18 June 2006, President Thabo Mbeki
celebrated his birthday;
(2) further notes the commendable manner in which the President
carries out his duties on behalf of our country and people,
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diligently contributing in the struggle to create a better life
for all; and
(3) wishes the President of the Republic a happy belated birthday
and many more enjoyable moments now and in the future.
[Applause.]
Mr M J ELLIS: Mr Chairman, certainly the DA associates itself with
the motion without notice, but we do have a convention amongst the
Whips that it is the Chief Whip or the Deputy Chief Whip who will in
fact propose those motions on behalf of his or her party. I just
want to draw that to the attention of the Whips, and suggest that
they get their act together again.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): If that matter can be
addressed by the Whips.
The CHIEF WHIP OF THE MAJORITY PARTY: Chair, can I respond, please?
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Can I deal with this point
first, Chief Whip?
I heard you say, Mr Ellis, that there is no objection to the motion.
Agreed to.
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The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please respond, Chief Whip.
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, the tradition of
this organisation called the ANC respects the role of veterans. The
birthday of such an important person befits somebody of the stature
of Ma Ndzanga. Thank you very much. [Applause.]
Mr M J ELLIS: May I respond to that, please, Mr Chairman? Mr
Chairman, we discuss this kind of thing at the Chief Whips’ Forum
and other bodies so often. It is a question of communication. I
would really say to the ANC if they had communicated that to us, we
probably wouldn’t have an objection, but it is always done on their
terms and that is the problem.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): I have already said that
the matter will be raised among yourselves in the Chief Whips’ Forum
and be addressed.
Let us go on to the next motion without notice.
The CHIEF WHIP OF THE MAJORITY PARTY: Perhaps before that, let us
acknowledge the omission of the consultation part. We readily admit
to that.
WORLD REFUGEE DAY
20 JUNE 2006 Page: 4 of 221
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move without
notice:
That the House –
(1) notes that today, 20 June, marks World Refugee Day;
(2) further notes that in celebrating this day, the peoples of the
world commit themselves to redoubling their efforts to foster
peace and friendship amongst all humanity;
(3) realises that more still needs to be done to ensure conditions
of peace and stability in all countries;
(4) recalls that this year also marks the 55th anniversary of the
adoption by the United Nations General Assembly of the
Convention relating to the Status of Refugees in 1951, and
that this convention sets the parameters on how refugees must
be treated and how they should relate to their hosts;
(5) commends our government, security forces, the African Union
and other United Nations agencies on their efforts to secure
peace on the continent; and
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(6) calls on all South Africans to respect human rights and treat
refugees with care and compassion.
Agreed to.
WORLD BLOOD DONOR DAY
(Member’s Statement)
Dr A N LUTHULI (ANC): Chairperson, 14 June has been designated World
Blood Donor Day. The ANC joins the international community in
observing World Blood Donor Day. This day aims to mobilise healthy
individuals to become regular, voluntary, unpaid blood donors, and
calls for commitment from the existing voluntary donors to continue
to donate regularly to enable the blood transfusion services and
partner organisations to provide the highest standards of care at
every stage of the transfusion process.
Every pint of blood an individual person donates saves the life of a
person involved in a car accident, or a person who has undergone
surgery.
We congratulate the SA Blood Transfusion Service on its progress
with transformation. The first matter in this regard is the
appointment of the first woman CEO, Dr Loyiso Mpuntsha. The second
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is the abolition of racial classification of blood donors and
products.
The ANC calls on all our people to join hands in the effort to save
lives by donating blood. Thank you. [Applause.]
CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT
(Member’s Statement)
The LEADER OF THE OPPOSITION: Mr Chairman, the DA is deeply
concerned by reports, which have appeared very recently, of a
catastrophic humanitarian situation developing in Somalia. There is
every indication that a major confrontation is brewing between the
militia run by the so-called Islamic courts and troops loyal to the
transitional government, and there are prospects of an invasion by
neighbouring Ethiopia.
While the DA welcomes the decision to lay the groundwork for a
possible deployment of peacekeeping troops or missions to Somalia,
two critical issues need to be resolved. Firstly, which side of the
conflict has the legitimate right to support from outside forces?
Secondly, given the apparent deep mistrust that the majority of
Somalis have of foreigners, it still needs to be determined whether
a foreign force would serve to heighten or lessen the conflict.
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The South African government should therefore immediately announce
what role, if any, we as a country are to play in the proposed troop
deployment, and how advanced the plans are to deploy an African
Union peacekeeping mission.
I understand that this was discussed by the AU yesterday, and it
would be helpful if Parliament was enlightened by the government as
to the resolutions taken by the AU in this regard. Thank you.
[Applause.]
SOUTH AFRICA’S ECONOMIC GROWTH AND UNEMPLOYMENT RATES
(Member’s Statement)
Prince N E ZULU (IFP): Hon Chairperson, those engaged in the study
of economics have the challenge of advising South Africa why its
economic growth does not generate enough jobs in the market.
All manner of tricks have been tried, and are being tried with even
more vigour, but sufficient jobs do not result from such trials. The
country has a growth rate of between 4% and 5% currently, and the
rate of unemployment remains unchanged, or grows even bigger in some
provinces. Indeed, it is a challenge.
We are left to speculate on many things. Some people speculate that
economic growth is not taking place across all sectors, and
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therefore some sectors carry the burden of providing jobs in
nonperforming sectors. Performing sectors are indeed job creators,
no matter how small they are in numbers, but the types of jobs they
create are those that attract the use of technology, which does not
manifest itself in massive employment. Sometimes such jobs require
highly skilled employees to the extent that foreign skills become
necessary, and the rate of unemployment remains static.
Many challenges can be further advanced in terms of why the
country’s economic growth does not satisfy the job market. It is
said that in the past 20 years there has been low or no
infrastructure investment in the country. If one casts one’s mind
back 20 years, a bleak picture of infrastructure investment reveals
itself.
We ask why it is so. We ask if South Africa needs to be more visible
and have programmes that are more transparent so that those who are
passionate about South Africa’s economic growth translating into
jobs and employment may also put their shoulders to the wheel.
We appreciate the efforts of all stakeholders on the economic front
... [Time expired.]
MTN AND CELL C IMPROVE CELLULAR COMMUNICATION IN EASTERN CAPE
(Member’s Statement)
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Mnu N B FIHLA (ANC): Mhlalingaphambili, kwinkqubo yeembizo
karhulumente oxhuzula imikhala, okhokelwa ngumbutho wesizwe i-ANC,
abantu kwiphondo leMpuma Koloni bathe kutsha nje babika, phakathi
kwezikhalazo zabo, ingxaki yokungakwazi ukusebenzisa oonomyayi babo
kwiindawo abahlala kuzo.
Ngenxa yoko urhulumente uthe wathetha-thethana neenkampani
ezithengisa oonomyayi ukuzikhuthaza ukuba zizame ukuphucula
unxibelelwano ngoonomyayi kule ndawo. Sithetha nje ngoku iinkampani
i-MTN no-Cell C zibhinqele phezulu, izandla zinodaka, ziphucula
unxibelelwano ngoonomyayi kulo mmandla.
Umbutho wesizwe uchulumancile yintsebenziswano ethe yaboniswa zezi
nkampani ukusabela ikhwelo labantu bakuthi, kwaye sikhuthaza nezinye
iinkampani ukuba zizeke mzekweni. Ndiyabulela. [Kwaqhwatywa.]
(Translation of isiXhosa member’s statement follows.)
[Mr N B FIHLA (ANC): Chairperson, during the public hearings of the
ANC-led government recently, people in the Eastern Cape complained,
among other things, about the inability to use cellphones in their
areas.
In order to overcome this problem, the government negotiated with
certain cellphone companies to improve their network coverage in
these areas. Consequently MTN and Cell C are now actively trying to
improve the reception in those areas.
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The ANC is happy about the co-operation shown by these companies in
responding to our people’s call and we encourage other companies to
follow suit. Thank you. [Applause.]]
ACKNOWLEDGEMENT OF PLIGHT OF REFUGEES
(Member’s Statement)
Mr S N SWART (ACDP): Chairperson, the ACDP acknowledges the plight
of refugees globally on World Refugee Day. For many South Africans a
refugee and an illegal immigrant are one and the same. Refugees,
like many foreigners, specifically from other African countries, are
often subjected to the xenophobia that exists in our country. The
ACDP is deeply disturbed by this, considering the fact that so many
other African countries opened their doors to South Africans who
fled their homes during the apartheid era.
The ACDP does not support any illegal entry into South Africa. We
do, however, condemn in the strongest possible terms the ill
treatment of refugees and asylum seekers who have been granted this
status legally by the South African government.
Last year, when the ACDP asked the Minister of Social Development
whether there was a refugee relief fund available to assist
refugees, we were informed that there was in fact such a fund, but
that it was not active because the process of appointing the board
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had taken too long owing to the complexity and dynamics involved
around issues of gender and stakeholder representation, and other
management issues.
The ACDP asks: Is it humane to allow those who are in many cases
escaping a terrible fate by coming to South Africa to be dealt
another blow owing to issues such as representation? The ACDP calls
on the Minister of Social Development to furnish us with further
details as to whether the refugee relief fund is fully operational.
Furthermore, we call on government to do all that is possible to
assist with the plight of those who are destitute owing to war and
other factors in Africa. [Time expired.]
PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES
(Member’s Statement)
Mr V C GORE (ID): Hon Chair, in a major step forward for mobility-
impaired people and wheelchair users in South Africa the Equality
Court in Port Elizabeth has recently ruled that the Minister for
Justice and Constitutional Development and the Minister of Public
Works have unfairly discriminated against people with disabilities
with regard to providing access to buildings.
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In the judgment, the magistrate ordered that the building concerned
become accessible within a specified time period, and that the
national police commissioner and the area commissioner apologise in
writing for their attitude towards people with disabilities.
In a reply to a question posed by the ID in this House on Wednesday,
31 August 2005, the Minister of Safety and Security declared that
the building concerned was accessible to people with disabilities.
The questions that now need to be asked are whether the Minister
deliberately misled this House or was misinformed by his officials,
and how many other police stations that are supposedly accessible to
people with disabilities are in fact not?
This unfortunate situation has highlighted the fact that, in
particular, the Minister for Justice and Constitutional Development,
the Minister of Public Works and the Minister of Safety and Security
are not doing enough with regard to disability discrimination. The
ID therefore calls upon these Ministers and the government to
seriously reconsider their approach towards people with disabilities
and in future to ensure that all public buildings, whether rented or
owned, are fully accessible to people with disabilities. I thank
you.
POOR SERVICE AT MAMELODI HOSPITAL
(Member’s Statement)
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Mr M M S LEKGORO (ANC): Chairperson, the ANC’s parliamentary
constituency office in Mamelodi has in the past few months taken
steps to probe complaints by members of the community about the poor
quality service provided at the Mamelodi hospital.
The parliamentary constituency office found that the service is
indeed not satisfactory in a number of areas, such as attending to
patients that need emergency treatment, especially during the night.
Old age pensioners and other persons of an advanced age have
reported that there are times when they wait in queues for long
hours to have a simple checkup for blood pressure and to get new
prescriptions.
There are reports of repeated occurrences of shortages of medication
that is prescribed by doctors in the same hospital. It is also
apparent that the payment policy of the hospital is implemented
insensitively to the indigent.
We call on the MEC for health in the province and the Mamelodi day
hospital administration to pay urgent attention to this situation.
Our criticism of the hospital does not suggest that everything is
lost; there are many areas in which the hospital provides excellent
service.
We also wish to take this opportunity to commend the national and
provincial health departments for providing resources for the
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expansion of the hospital in question. We believe that that will go
a long way towards dealing with the health challenges in the
community. Thank you. [Applause.]
BAD CONDITION OF PUBLIC ROADS IN NORTH WEST
(Member’s Statement)
Mr I S MFUNDISI (UCDP): Chairperson, much has been said and written
about the poor condition of roads in the country, but the greatest
culprit in this respect is none other than the North West province.
The condition of the N12, especially between Wolmaransstad and
Christiana, leaves much to be desired, to say the least. The Jekyll
and Hyde antics of the national Department of Transport and of the
provincial department do not help the public image of the government
at all. The latter keeps saying that the former is responsible for
the upkeep of the roads, and vice versa.
The UCDP maintains that the legitimate objective of a government is
to do for a community of people whatever they need done, but cannot
do at all in their separate and individual capacities. Roads fall
into this category. A community of people cannot be left to maintain
a public road.
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The number of deaths that have occurred on the N12 in the recent
past, particularly between Wolmaransstad and Bloemhof, is a real
cause for concern. It is simply a matter of time before litigation
is brought against government.
We are aware of claims submitted to the North West provincial
department of transport because of damaged tyres and shock
absorbers. The complete disregard of the Batho Pele call to the
Public Service cannot be countenanced any further. The public needs
good roads to ensure that the economy of the country flourishes.
The UCDP calls on the ANC-led government, in both instances, to live
up to their contract with the people and make them good roads and a
good life, if they are unable to make them better. I thank you.
[Applause.]
PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK
(Member’s Statement)
Mr T D LEE (DA): Chairperson, at the weekend four major opposition
parties represented in this House, the DA, the IFP, the ACDP and the
FF Plus, launched a campaign to end floor-crossing. The campaign was
launched because, firstly, we recognise that floor-crossing in its
current form betrays the wishes of the electorate and lends itself
to bribery and corruption. Secondly, we know that two thirds of
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South Africans are opposed to floor-crossing; and, thirdly, we would
be failing in our duty as public representatives if we ignored the
wishes of the electorate.
We therefore urge every member of this House to support the Private
Member’s Bill that seeks to remove floor-crossing legislation from
the Statute Book. Let us show South Africa that narrow party-
political interests will never supersede the public interest in our
country. I thank you.
PROGRESS ON 2010 FIFA WORLD CUP
(Member’s Statement)
Mr M M DIKGACWI (ANC): Chairperson, the ANC is heartened by the
confidence Fifa and the broad international football community have
displayed towards our country and people. After meeting with the
2010 Local Organising Committee, the Fifa president is quoted as
having said that the event to be hosted by our country in four
years’ time will generate more money than the German World Cup.
He added that he was pleasantly surprised by the amount of work
already done by the LOC. This confirms the information shared with
the House by the Minister of Sport and Recreation that South Africa
has already met most of the deadlines agreed to with Fifa eight
months ahead of time.
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The Chief Executive Officer of the Local Organising Committee, Danny
Jordaan, confirmed that the funding target of R13 billion for the
2010 World Cup, the biggest in Fifa’s history, had already been
reached. Major sponsors of the event have already deposited their
millions into the Fifa bank account to illustrate their confidence
in our ability to organise the event. The event is projected to
create approximately 120 000 temporary and permanent jobs.
The ANC calls on all patriots to roll up their sleeves and intensify
their efforts to make the coming event a memorable one. Thank you.
[Applause.]
JOINT BUDGET COMMITTEE AND EFFECTIVE OVERSIGHT OF GOVERNMENT
SPENDING
(Member’s Statement)
Mr T E VEZI (IFP): Chair, the Joint Budget Committee has a complex
and broad mandate given to it by resolution of Parliament in 2004.
The committee is, among other things, mandated to exercise effective
oversight over state spending on the consolidated budget, aligning
spending outcomes with government priorities and ensuring that there
is value-for-money spending by all government departments.
The IFP welcomes the fact that the committee last year held hearings
on provincial spending on health, housing and education. We all know
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that the provinces’ performance in service delivery is determined,
to a large extent, by their capacity to spend budget allocations. It
is therefore important that the budget committee continues to
monitor and oversee provincial spending in conjunction with the
Select Committee on Finance in the NCOP.
The IFP, however, is very concerned that some of the challenges
facing the committee have not been addressed effectively. Attendance
at the meetings of the committee is poor, and this seems not to be
treated with the seriousness it deserves. This should be rectified
immediately.
We support the move for more interaction with the Portfolio
Committee on Finance and the Select Committee on Finance as there is
no doubt that this will broaden the knowledge base of members to
effectively oversee government spending. I thank you.
LEARNERSHIP PROGRAMMES IN THE WESTERN CAPE
(Member’s Statement)
Mr J D ARENDSE (ANC): Chairperson, the ANC-led government is
committed to programmes to train young people through learnerships
so that they can gain skills and work experience in order for them
to access jobs.
20 JUNE 2006 Page: 19 of 221
The recent initiative taken by the Western Cape government to train
1 000 young people in various skills is one such programme. The
Western Cape government has an amount of R35 million in learnership
programmes. The programme was launched on the eve of the 30th
anniversary of the 1976 student uprising and in Youth Month. The
programme is not only aimed at providing skills but also promises
participants sustainable employment after 18 months of intensive
training.
The ANC urges all South Africans to embark on similar programmes to
give the youth opportunities to make a contribution to our society.
I thank you. [Applause.]
MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA
(Member’s Statement)
Mnr R J KING (DA): Geagte Voorsitter, die agb Minister van
Veiligheid en Sekuriteit begin al meer terugkrabbel na sy skokkende
ontkenning van die misdaadsituasie in Suid-Afrika. Na sy hopelose
onvanpaste optrede in reaksie op toesprake in sy begrotingspos hier,
het hy die volgende dag, steeds betower deur ondeurdagte toejuiging
uit eie geledere, homself herhaal in die Nasionale Raad van
Provinsies.
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Dit was al genoeg bewys dat ons agb Minister hom nie maar net per
ongeluk verspreek het en dalk polities ’n ligte “mistykie” gemaak
het nie, maar dat inderdaad elke woord wat Minister Charles Nqakula
op 1 Junie in die hierdie Raad geuiter het in werklikheid uit sy
hart gekom het en uit ware oortuigings spreek.
Om maar net aan die konsekwensies hiervan te dink laat elke
wetsgehoorsame mens sidder. Ek wil vir die agb Minister sê om nou in
verbystering oor die vloedgolf afgryse en kritiek wat hy ontketen
het terug te deins en met flou grappies oor “just a throwaway
remark” salf te probeer smeer, sal geen mens oortuig nie.
U sal iets dramaties moet doen, Minister, soos ek reeds in die
begrotingspos vir u gesê het. Geen woord wat u verder uiter sal u
politieke bas red of u beeld en politieke geloofwaardigheid kan
herstel nie. Neem asseblief dit wat u sien en hoor en waarneem
ernstig op. Aanvaar dat Suid-Afrika een van die mees gewelddadige
lande ter wêreld is en dat misdaad buite beheer is, en tree
dienooreenkomstig op. Dit is die minste wat wat enige
selfrespekterende land en sy mense met reg van sy Minister van
Veiligheid en Sekuriteit kan verwag. Ek dank u. (Translation of
Afrikaans member’s statement follows.)
[Mr R J KING (DA): Hon Chairperson, the hon Minister of Safety and
Security is increasingly backtracking following his shocking denial
of the crime situation in South Africa. After his highly
20 JUNE 2006 Page: 21 of 221
inappropriate behaviour in reaction to speeches during his Budget
Vote here, and still mesmerised by ill-considered cheering within
his own ranks, he reiterated his statement in the National Council
of Provinces the following day.
That was sufficient proof that our hon Minister suffered no
accidental slip of the tongue and did not perhaps make a slight
political error, but that every word Minister Charles Nqakula
uttered in this House on 1 June did in fact come from his heart and
that it indicated true conviction.
To simply consider the consequences hereof makes every law-abiding
person shudder. I want to tell the hon Minister that to shy away in
bewilderment from the wave of horror and criticism he caused and to
try and be placating with lame jokes about “just a throwaway remark”
will not convince anyone.
You will have to do something dramatic, Minister, as I have already
said to you during the Budget Vote. No word you try to utter
henceforth will save your political skin or restore your image or
political credibility. Please take everything you see and hear and
observe seriously. Accept that South Africa is one of the most
violent countries in the world and that crime is out of control, and
act accordingly. That is the least any self-respecting country and
its people can rightly expect of their Minister of Safety and
Security. I thank you.]
20 JUNE 2006 Page: 22 of 221
NGUNI CATTLE BREEDING PROJECT IN NORTHERN CAPE
(Member’s Statement)
Mrs D G NHLENGETHWA (ANC): Chairperson, the ANC welcomes the
allocation of R4 million by the Industrial Development Corporation
for the establishment of the Nguni cattle breeding project in the
Northern Cape.
The IDC has signed a memorandum of understanding with the Northern
Cape department of agriculture and the University of the Free State
to foster co-operation between the different stakeholders to ensure
the success and sustainability of the project. As part of the
project, a number of communities in the province will receive a
consignment of 10 heifers and two bulls to make up the new class of
the Nguni herd over a period of five years.
The MEC for agriculture and land reform in the Northern Cape,
Comrade Tina Joemat-Pettersson, stated that the introduction of the
Nguni herds presented the province with new economic opportunities
in a sought-after market with an allied clientele.
The ANC believes that this project will stimulate economic growth in
the area and will contribute significantly to creating jobs and
reducing poverty. I thank you.
20 JUNE 2006 Page: 23 of 221
POVERTY ALLEVIATION PROJECT OUTSIDE MAFIKENG
(Member’s Statement)
Mme M J J MATSOMELA (ANC): Re le Mokgatlo wa ANC, re itumelela
kabelo ya R22 million go tsweletsa lenaneo la ditirelo tsa setšhaba
kwa Modimola gaufi le Mafikeng, kwa porofenseng ya Bokone Bophirima.
ANC e ne ya re ka ngwaga wa 2002, fa e ne e keteka dingwaga di le
90, ya tshepisa gore mo dingwageng di le 10 tse di latelang, re
lebile ngwagakgolo wa go nna teng ga lekgotla la rona, re tla
tsepamisa matlho le go oketsa maiteko mo go fokotseng lehuma le
tlala.
Kgosi Ronny Seane Tawana wa Modimola o rile fa a tshwaela a re,
lenaneo le le fokoditse tlala mo motseng wa rona mme le re
tliseditse tshepo le botshelo jo bošwa mo Modimola. Se setla ka go
tlholwa ga ditiro di le 419 mmogo le katiso ya morafe, go fa batho
kitso le bokgoni tseo di neng di se teng. Seno se tlaa ba thusa go
bona ditiro mo isagong.
Re le ANC, re sa boeletsa maikano a rona a go dira le setšhaba sa
etsho, go tiisa dikgolagano gareng ga Maaforika Borwa le go
netefatsa gore batho ba tshwaragane le puso mo go tliseng botshelo
jo bo botoka go botlhe. Ke a leboga. [Legofi.] (Translation of
Setswana member’s statement follows.)
20 JUNE 2006 Page: 24 of 221
[Ms M J J MATSOMELA (ANC): As the ANC, we appreciate the R22 million
fund allocated to complete the public service programmes in Modimola
near Mafikeng in the North West province. In 2002 when the ANC was
celebrating its 90th anniversary, it promised that in the next 10
years it would focus on reducing poverty and hunger.
In his comment, Chief Ronny Seane Tawana of Modimola commended the
programme for reducing hunger and bringing hope and a better life
for all in our village. This was as a result of 419 jobs created
together with training, which gave people knowledge and skills that
are so much needed. This will help them to get employment in the
near future.
As the ANC, we are recommitting ourselves to serve our people, to
strengthen unity among South Africans and to ensure that they work
together with government to ensure a better life for all. Thank you.
[Applause]]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): That was the last statement
we have time for this afternoon.
UNPARLIAMENTARY IMPLICATION
(Ruling)
20 JUNE 2006 Page: 25 of 221
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon members! Mr Gore
in his statement asked the question whether the Minister
deliberately misled the House. The implication that the Minister
deliberately misled the House is not acceptable as it reflects on
the integrity of a member of this House. A word or expression is
equally unparliamentary when it is put in the form of a question. I
therefore request Mr Gore to withdraw the implication that he made
that the Minister deliberately misled the House.
Mr V C GORE: Hon Chair, I withdraw the comment.
JOB CREATION
RESURFACING OF ROADS
REPORT OF THE JOINT BUDGET COMMITTEE
(Minister’s Response)
The MINISTER OF FINANCE: Chair, I would like to respond to three of
the statements, the first being by the hon Prince Zulu, the second
by the member from the UCDP, and the third by the hon Vezi. I’m
sorry, but I didn’t see who it was from the UCDP as I was writing,
so please assist me as we proceed.
Prince Zulu raised the question relating to job creation in the
economy. Firstly, it is very important that we, in the House, never
propagate untruths about the economy, because the economy in the
20 JUNE 2006 Page: 26 of 221
year to September created just over 630 000 new jobs. That growth is
larger than the growth of the population. It is, in fact, slightly
larger than economic growth as well. It is not that the economy is
not creating jobs; it cannot be that there is jobless growth in the
economy. What is an issue is that you are dealing with a huge
backlog coming over a very long period.
The other point that the hon Vezi raised is that not all sectors
will respond equally, and I think that that is correct. But we must
understand that as jobs move from one sector to the other - clothing
and textile jobs are increasingly moving to countries like China and
that is a global phenomenon - we need to be there and ready,
ensuring that we can create jobs in other sectors.
A big, big problem in our economy is that the skills base coming
through the schooling system, after years of neglect, does not allow
for rapid absorption into the economy and that is the big, big
problem that confronts us. That is why Asgisa has such a strong
focus on Jipsa to ensure that we can recruit the skills, but, more
importantly, that we can grow our own skills.
In respect of the second issue, with regard to the road between
Wolmaransstad and Bloemhof, the N12, one of the problems is that
road reconstruction is sometimes held up by all manner of processes.
In the North West of the country generally - and, I think, it would
cover that area, but it would also cover areas even towards Upington
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- there were very heavy rains this year and the number of potholes
has actually increased quite tremendously.
I am advised by the National Roads Agency that the battle that
confronts them is whether it’s worth just resurfacing the road or
whether the road has to be rebuilt, and rebuilding roads requires
that they must go out to tender for design and then for
construction. So sometimes these processes are held up
unnecessarily. We are either going to have those kinds of processes,
for which we can then properly account for public finances, or we
are going to run ourselves into difficulties. It is a timing issue
with some of these things. I think that, very importantly, in that
part of the world, the very heavy rains in March and April of this
year have caused untold havoc to the road infrastructure.
I also appreciate the fact that the hon Vezi responded to the report
of the Joint Budget Committee. Of course I am saddened by his
comments about the poor attendance of members at the Joint Budget
Committee, and let me explain why. If you look at the report of the
Joint Budget Committee and look in particular at the approach of the
Select Committee on Finance, led by the hon Ralane, what is clear is
that Parliament is exercising its oversight role. It says:
We have received your quarterly reports in terms of section 32 of
the PFMA. In the case of the most recent report of the Joint Budget
Committee, it is the third and fourth quarterly reports.
20 JUNE 2006 Page: 28 of 221
It goes on to say:
We are unhappy about the following issues. Kindly explain.
That is Parliament at its very best, exercising its oversight
responsibility. And when members of Parliament are then less than
diligent in the exercise of their responsibilities, I think it
leaves much to be desired. That is something that we clearly must
address, because the legislation gives the power to Parliament,
constructs the bridge for accountability and, if it’s not being
used, we in the executive can stick our hands in our pockets,
whistle and walk away. We plead with Parliament then in the same
spirit as the hon Vezi does: use the power that the legislation
gives you. Thank you, Chair. [Applause.]
CONFLICT IN SOMALIA AND SOUTH AFRICA’S ROLE IN TROOP DEPLOYMENT
(Minister’s Response)
The MINISTER OF DEFENCE: Chairperson, with regard to the matter of
Somalia, I think it is important that we must just remember the
historical context in that this is one of the so-called failed
states that resulted during the closing years of the Cold War.
Following that, the East African region of nations invited a number
of the various formations that were at war with each other inside
20 JUNE 2006 Page: 29 of 221
Somalia to engage in negotiations so that they could build the
foundations to reincorporate and unite the people. That action was
guided by the fact that the OAU and the African Union have persisted
with the approach that colonial boundaries should be maintained
because if one does not stick to them, we could unleash incredible
conflicts everywhere on the continent. So the approach of the
African Union continues to be informed by the idea that there is one
Somalia.
Now the majority of those formations that were at war signed an
agreement that produced the transitional government in Kenya, and
the AU continues to support that effort. The return therefore of the
transitional government was and is supported by the AU with the
understanding that that transitional government will continue with
the efforts of further uniting and consolidating the nation of
Somalis.
Nevertheless, as in the case of Burundi and in the DRC, there are
always one or two elements that will not be attracted to the idea of
peace, and this is the grouping that has declared a separatist
position of Somaliland. The AU - and we, of course, are bound as
part of the AU - supports the idea of Somalia. Therefore the
transitional government is a body that really deserves our support.
The media may well report ...
20 JUNE 2006 Page: 30 of 221
The HOUSE CHAIRPERSON (Mr G Q M DOIDGE): Hon Minister, I can allow
you a few more seconds’ grace.
The MINISTER OF DEFENCE: Thank you, Chair. This is an education
class and I don’t know what to do with this matter. [Laughter.]
The HOUSE CHAIRPERSON (Mr G Q M DOIDGE): Order! The Minister is
going to continue.
The MINISTER OF DEFENCE: It may well be that reports suggest that
there is an imminent attack and so on. That’s not correct. Ethiopia
is cautiously guarding its eastern borders, but there is no
intention indicated anywhere either in the AU or in the African
Commission that Ethiopia is planning to attack Somalia. In any
event, as supporters with us of the transitional government, they
would find themselves attacking a transitional government that we
are supporting in order to put it in place.
With regard to the position of the SA National Defence Force, South
Africa, as part of SADC and as part of the Peace and Security
Committee of the AU, can only intervene in Somalia that is a
decision of the African Union. We have no independent decision in
terms of this. We don’t act as an unguided missile and just decide
anyhow that we want to go there or whatever. But, indeed, if there
were a call on the AU, the African Standby Force, the SADC brigade,
20 JUNE 2006 Page: 31 of 221
would have to be mobilised to support the efforts of the African
Union to keep peace there.
PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK
PUBLIC BUILDINGS TO BE MADE ACCESSIBLE TO PEOPLE WITH DISABILITIES
MINISTER OF SAFETY AND SECURITY’S COMMENTS ON CRIME IN SOUTH AFRICA
(Minister’s Response)
The MINISTER IN THE PRESIDENCY: Chairperson, first of all with the
hon Lee, let me just say this: It’s always best to listen. The
President of the Republic of South Africa, who is also the President
of the ANC, said in this House that Parliament should discuss the
issue of floor-crossing. Parliament should discuss this issue, but
if you have made up your mind that floor-crossing is a betrayal, and
then say we must support the Private Member’s Bill, it means you
have stopped listening.
So, what would be the point of the ANC engaging you in a discussion
if you have already made up your mind? [Interjections.] So, don’t
make up your mind now. Enter into a discussion. At the end of the
discussion, Parliament will produce a report. Okay? So, don’t betray
your own intelligence. [Interjections.]
On the second point: Mr Gore, I want to agree with you. We do face –
and I say this as the Minister responsible for people with
20 JUNE 2006 Page: 32 of 221
disabilities - a serious challenge with respect to ensuring that
public buildings are more accessible. But, you know what? You
yourself must become more active in the disability movement. Don’t
just sit here in this House. I don’t see you when the disability
movement is active. This is because we can’t do this on our own.
We’ve got to do this in partnership.
Secondly, become more active in the portfolio committee. That is
also set up to deal with these issues, and I don’t see you there
either. So, instead of coming here and raising issues, also use the
processes in Parliament that you have to ensure that all of us work
together to make sure that we stick to government policies with
respect to this particular issue. [Applause.]
Concerning the last question, the Minister of Safety and Security
has said previously and he said so now in an interview again that
when he said what he said, he was referring to three Members of
Parliament. [Interjections.] Just listen. You know what? I don’t
know what your parents do, but how did you grow up? Were you always
so rude to your parents? [Laughter.] So, just listen, okay?
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon, Minister, you
are running out of time.
The MINISTER IN THE PRESIDENCY: Well, you must control them too.
They must not be rude if they want us to answer. [Interjections.]
20 JUNE 2006 Page: 33 of 221
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please proceed, hon
Minister. Order!
Mr W J SEREMANE: Chairperson, I rise on a point of order. Is it
really parliamentary to be mentioning people’s parents here, when
they have nothing to do with this? [Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Please take your seat, hon
Seremane. That’s not a point of order. Hon Minister, could you wrap
up your response?
The MINISTER IN THE PRESIDENCY: I don’t know how he thought he came
into this world. Maybe fell he off a tree if he didn’t have parents.
[Laughter.] [Interjections.] Or maybe somebody bit on an apple and
you came out. [Laughter.] So, the point I’m making ...
[Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order!
[Interjections.] Order! Hon Minister, your time has expired.
The MINISTER IN THE PRESIDENCY: When you joined the DA from the PAC,
did you change politically and ideologically? [Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister, your
time has expired. Order! Just give me a minute, hon Mulder.
20 JUNE 2006 Page: 34 of 221
The MINISTER IN THE PRESIDENCY: No, the last time I said something
to him he never stopped crying.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon Minister Pahad,
your time has expired, Sir. [Laughter.] [Interjections.] Order,
please!
The MINISTER IN THE PRESIDENCY: No, Im going to finish this
statement now and say ...
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon Minister!
[Laughter.]
The MINISTER IN THE PRESIDENCY: Chairperson, thank you very much,
but hon Seremane must explain politically and ideologically how he
made the jump. [Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Order!
[Interjections.] Order, hon members! [Interjections.] Hon members,
let me appeal to you: I could not be heard at all over the intercom
system. It’s ridiculous. Hon Mulder?
Dr C P MULDER: Chairperson, I just wanted to say that, with all due
respect, the Minister was going to react on a very serious matter
with regard to the remarks made by the Minister of Safety and
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Security, and those backbenchers didn’t help us in getting the
answer. We didn’t get it at all. [Interjections.]
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, could you please
ask the hon Seremane to contain himself? He is losing control of
himself. [Laughter.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! No, no! No response.
We are proceeding with responses from the Ministers.
[Interjections.] Order!
PROGRESS ON 2010 FIFA WORLD CUP
PRIVATE MEMBER’S BILL TO REMOVE FLOOR-CROSSING FROM STATUTE BOOK
(Minister’s Response)
The MINISTER OF SPORT AND RECREATION: Chairperson, I wanted to just
reaffirm what was said by the hon member about the need for
ourselves, first and foremost, to do away with the Afropessimism
that continues to be displayed outside these Chambers. We are now
told about a spurious event in term of which Fifa instructed South
Africa to change the names of some stadia.
My last meeting with the president and the secretary of Fifa was on
8 June. There has been no such indication, and there can be no such
indication. Rather, changes regarding the copyrights of hosting the
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World Cup were already agreed to in 2004. These do not include
changing the names of the stadia. So, I only want to urge our
compatriots to begin to show self-confidence, the same confidence
that the world is beginning to have in us.
The SABC started broadcasting in Germany last week already, and you
should have seen the applause of the people in the stadium when they
heard this South African accent. They all rose up in excitement that
South Africa was participating already in the World Cup. [Applause.]
That is the spirit that we want to entrench.
I cannot sit down without agreeing with the Minister in the
Presidency on assisting members of this House as they make up their
minds on floor-crossing. I suppose I am entitled to do that, seeing
that I was the Chief Whip here in 1995 when the idea of floor-
crossing came up, not from this side of the House but from a Private
Member’s Bill sponsored by Mr Eglin of that side of the House. So,
as we come full circle and as we make up our minds on how to deal
with this circle, I thought we should remind ourselves of the
history of floor-crossing. Thank you very much, Chairperson.
[Applause.]
UNPARLIAMENTARY REMARKS MADE DURING SAFETY AND SECURITY BUDGET VOTE
(Ruling)
20 JUNE 2006 Page: 37 of 221
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Before we proceed
with the first motion on the Order Paper, I would like to give the
following ruling. During Declarations of Vote on the Safety and
Security Budget Vote on 13 June, the hon Adv T M Masutha raised a
point of order in regard to remarks made by the hon Mr P J
Groenewald in his contribution on behalf of the FF Plus. The hon
Minister of Education subsequently also rose on a point of order
with regard to Mr Groenewald’s remarks.
I undertook to study the Hansard and return to the House with a
ruling. Having now had the opportunity to study the Hansard, I rule
as follows: Mr Groenewald said in Afrikaans, with reference to the
Minister of Safety and Security:
You are undermining democracy in South Africa, and if you
undermine democracy, you are nothing other than a political
criminal. Your remarks clearly indicate that you are a racist; you
are nothing more than that.
Mr Groenewald then repeats his statement by saying:
I said that the hon Minister is a racist and I stand by that,
because it is the truth.
As correctly pointed out by the hon Minister of Education, there
have been various rulings in this House on calling another member a
20 JUNE 2006 Page: 38 of 221
racist, and it is unparliamentary. As early as 1998, the former
Speaker ruled that it is never parliamentary to call another member
a racist, regardless of the context.
Similarly, the rules prohibit members from casting aspersions on the
integrity of, or imputing improper motives to other members. By
calling the hon Minister a political criminal, Mr Groenewald did
exactly that. Such accusations seriously undermine members in the
performance of their duties and they also undermine the image and
effectiveness of Parliament itself to function as the Constitution
intends.
I now ask Mr Groenewald to withdraw both offensive remarks, namely
that the Minister is a racist and a political criminal. Hon
Groenewald?
Mr P J GROENEWALD: Hon Chair, may I request a fair chance to address
you on this issue? [Interjections.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, I am requesting
a withdrawal from you.
Mnr P J GROENEWALD: Agb Voorsitter, ek wil vanuit die staanspoor sê
ek respekteer die integriteit van die Parlement, soos wat daar van
alle parlementslede verwag word, by uitstek van ’n Minister, om
20 JUNE 2006 Page: 39 of 221
hierdie Huis se integriteit te respekteer. (Translation of Afrikaans
paragraph follows.)
[Mr P J GROENEWALD: Hon Chairperson, from the outset I would like to
say that I respect the integrity of Parliament, as it is expected of
all Members of Parliament, particularly of a Minister, to respect
the integrity of this House.]
The CHIEF WHIP OF THE MAJORITY PARTY: I rise on a point of order,
Chairperson. Please let us not allow an opportunity for a speech.
The member either withdraws or refuses to withdraw.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon Groenewald, I am
requesting you to withdraw the offensive remarks.
Mr P J GROENEWALD: Agb Voorsitter, soos wat u my aangehaal het dat
ek die waarheid gepraat het, staan ek by die waarheid. Ek kan nie
die waarheid terugtrek nie. Ek weier om dit terug te trek. [Hon
Chairperson, as you have quoted me as I spoke the truth, I stand by
the truth. I cannot withdraw the truth. I refuse to withdraw it.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, if you are
refusing to withdraw the remarks, in terms of Rule 51, I ask you to
withdraw from the House. [Interjections.] Order!
The member thereupon withdrew.
20 JUNE 2006 Page: 40 of 221
SUSPENSION OF RULE 253(1) REGARDING SECOND SMALL BUSINESS TAX
AMNESTY AND AMENDMENT OF TAXATION LAWS BILL
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, I move the motion
printed in my name on the Order Paper, as follows:
That Rule 253(1), which provides inter alia that the debate on the
Second Reading of a Bill may not commence before at least three
working days have elapsed since the committee’s report was tabled,
be suspended for the purposes of conducting the Second Reading
debate on Second Small Business Tax Amnesty and Amendment of
Taxation Laws [B 15 – 2006] (National Assembly – sec 75) today.
Agreed to.
SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL
(First Reading debate)
Ms J L FUBBS: Hon Chairperson, hon members of this House, comrades,
colleagues and my fellow countrymen, the Small Business Tax Amnesty
and Amendment of Taxation Laws Bill is more than just any Bill that
we have brought before this House. It is a Bill that deepens our
20 JUNE 2006 Page: 41 of 221
democracy, because it deals directly with the democratisation of the
tax regime.
Further than that, it also deals with the redistribution of the
gains that we have made, because it is only through a fair, a well-
balanced and an equitable taxation system that we are able to gain
and increase our revenues and, in that manner, contribute towards
the development and growth of our economy.
Small businesses play a key role in stimulating economic activity,
job creation and poverty alleviation; indeed, the very general
principles of living standards are improved. So many of our
businesses have been marginalised historically, and so many of them
excluded from the economic mainstream. When we look around at small
houses, at shacks on the streets and on the side of the road, we see
so many small enterprises operating.
This Bill offers people that opportunity, that generous opportunity,
as long as they are not earning, or their turnover does not exceed
R10 million a year, to come back into the greater economic South
Africa from which they have been excluded for so long, because as
long as they are excluded they will not benefit fully within the
economy.
But then there are also those small businesses that have not been
excluded from the mainstream, that operate from the garages of
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suburbs such as where I come from – Sandringham in the Sandton part
of the Johannesburg Metro.
In other parts of the country they operate almost economically
underground, and the reason for their exclusion from the tax system
is one of choice, choosing not to actually contribute to tax. People
who fall into that category I regard as refugees from the human
spirit - attitudinal aliens. They have made themselves attitudinal
aliens from our economic democracy. My appeal to such refugees is:
take the opportunity now to regularise and normalise your taxation.
As I said to begin with, this is the democratising of the tax regime
- it broadens the tax base, it facilitates the normalisation of tax
affairs of small businesses, and it also increases and improves the
culture of tax compliance. A culture of compliance will help us
expand the public purse and so contribute to the redistributive
thrust of the revenue itself.
I know that the main contents of the Bill have received much media
coverage, and indeed in this very House the Minister spoke about the
contribution this Bill would make. What I would like to just talk
about for a moment are the political considerations. The task of
democratising this tax regime has been a major undertaking, which
has been under way for a number of years. This Bill simply seeks to
continue that tax reform with a special focus on small business.
20 JUNE 2006 Page: 43 of 221
Indeed, this is not the first time that amnesty has been offered.
The first time that that was done for those trying to avoid tax
compliance, or those who had no choice due to the historical
situation, was in the case of offshore funds being held illegally.
As you know, what we received in revenue there certainly has
contributed to our redistributive thrust. It was, indeed, highly
successful. But what we also need to do now, of course, when we do
succeed in these measures, is to have the Minister come back and
report to Parliament. Indeed, the Finance committee was very happy
to see that this was not just a conversational commitment, but that
it has been built into the Bill itself.
In fact, the success of the amnesty must be reported to Parliament,
and these details will include the number of applications received,
the number of applications approved and denied, the number of new
taxpayer registrations per type, and all amnesty levies payable. I
think that that indicates, once again, the commitment of the
Minister to parliamentary oversight and the recognition of how much
this leads to accountability.
When one talks and thinks of taxation itself, one is often reminded
of biblical stories about taxation. [Interjections.] That’s right.
Well, I must tell you, through the Chairperson, that the first house
I bought I found out had been used as a church, and I seriously
thought of becoming a member of the cloth so that I could also hold
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out my soup plate for a collection. However, I’ve chosen to earn my
wages in a different manner.
Indeed, it was very interesting to realise that during the biblical
times people then collected taxes for the very purpose of also
trying to improve the quality of people’s lives. However, what
became very seriously a matter of commission was that after the
Napoleonic wars tax was collected largely to defray expenditure of a
military nature. More recently in Britain, tax was largely imposed
to ensure that, indeed, the wealthy retained their income and the
poor or the lower middle classes lost theirs.
The difference in terms of the tax regime in South Africa is that it
does seek to equitably gather the taxes, but also, of course, to
redistribute them. South Africa is a developmental state, and in a
developmental state it is very important that equity and development
go hand in hand.
Another area which we must welcome on the part of the Ministry is
that it sought through wide consultation the views of people on the
ground, in business, in Parliament and in other areas as well. This
led to a series of revisions to ensure that the Small Business Tax
Amnesty and Amendment of Taxation Laws Bill would achieve its goal.
Of course, this is a very generous amnesty. This generous amnesty
actually says, “By the way, even if you have been ducking and diving
20 JUNE 2006 Page: 45 of 221
for several years, we are not going to take that into account. What
we are going to take into account is the last financial year and up
to R10 million turnover.” Secondly, the one-off levy is going to be
cut from 10% to 5% in the Bill itself, and then there will be a
sliding scale.
Now, National Treasury is appealing to all small businesses to come
forward that have found themselves outside the net. But if small
businesses don’t come forward, they can expect the full wrath of the
law in this regard. Taxi owners are also advised to come forward so
that they too can be part of the taxi recapitalisation process.
This tax amnesty is a message of hope that tax continues to be used
as a redistributive instrument for change and, certainly, we accept
that small businesses, the engine of a developmental economy - which
is one in which your core capital is people and, as we know, small
businesses employ more people than larger businesses - can become
and are the engine of South Africa’s economy. The ANC supports this
Bill. Thank you, hon Chairperson. [Applause.]
Dr S M VAN DYK: Agb Speaker, Minister Manuel het ’n
belastingamnestie vir die kleinsakeondernemings in die 2006
begroting aangekondig. Behalwe vir die amptelike voordele, sal dit
ook Statistieke SA se data meer volledig maak vir ekonomiese
beplanning; meebring dat die werklike BBP meer akkuraat bereken
word; duidelikheid oor werkskepping meebring; die Minister se
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fiskale beplanning beter laat sinkroniseer met die ekonomiese
werklikhede en bedrog voorkom waar die werkgewer tans
werknemersbelasting verhaal, maar nie aan die ontvanger oorbetaal
nie.
Die DA wil sekere struikelblokke uitwys wat die goeie bedoelings van
amnestie in die wiele kan ry. Daar is geen direkte
aansporingsmaatreëls vir amnestie-aansoekers nie. Inteendeel, deur
te registreer as ’n belastingpligtige, sal daar ’n onmiddellike las
wees vir die applikant in terme van arbeidswette waaraan voldoen
moet word, wat verdere kostes inhou. Navorsing toon dat die
informele sektor belasting sien as die grootste nadeel van
registrasie en vind 24% van die informele sektor hulleself veiliger
buite die belastingnet.
Die voorskrifte vir amnestie is te akademies en
besigheidsonvriendelik. Indien die volle amnestieheffing nie betaal
word binne ’n gegewe tyd nie, of die applikant nie alle inligting
openbaar of verkeerde inligting verstrek, kan amnestie geweier word.
Dit wil sê ’n amnestie aansoeker wat onervare is met al die
voorskrifte van belastingopgawes kan oortredings per abuis maak, en
dit skrik mense af.
Die amnestietydperk van 1 Augustus vanjaar tot einde Mei volgende
jaar is te kort, omdat dit ’n geruime tyd sal neem voordat die volle
konsekwensies van amnestie by die kleinsakeondernemings sal uitkom.
20 JUNE 2006 Page: 47 of 221
Amnestie-aansoekers het geen kultuur van boekhouding of die nakoming
van belastingprosedures nie en sal hulle ’n administratiewe eenheid
moet skep terwyl dit ook tyd sal neem om dokumentasie en inligting
bymekaar te kry.
Die huidige belastingvoorskrifte vir kleinsakeondernemings is te
tegnies en ingewikkeld, wat ook dien as rede dat baie entiteite tans
nog buite die belastingnet bly. Tyd is nodig vir behoorlike
opvoeding ten opsigte van al die soorte belasting wat uiteindelik
betaal sal moet word.
Die staat onderneem ’n taxi-herkapitaliseringsprogram waar die staat
’n R50 000 slopingstoelaag per taxi verleen, maar om daarvoor te
kwalifiseer moet taxi-eienaars ’n belastingsertifikaat toon. Gegewe
die amnestieheffing en belasting wat dan betaal sal moet word,
tesame met ’n nuwe motorpremie, sal taxi-eienaars eerder buite die
net bly.
Die vraag is ook hoe lank dit gaan neem om amnestie aansoeke te
verwerk. Deur ’n aansoek in te dien word amnestie voorlopig verleen,
maar indien die applikant nie spoedig ’n antwoord ontvang nie, kan
hy die volgende jaar se belastingopgawes weerhou, wat verdere
probleme skep.
Die moontlikheid dat amnestie geweier word kan ook aansoekers
afskrik. Onvolledige aansoeke kan die resultaat wees van onkunde om
20 JUNE 2006 Page: 48 of 221
belastingopgawes behoorlik te voltooi. Indien die ontvanger navrae
rig vir meer inligting, kan amnestie dan geweier word. Dan beteken
dit dat die ontvanger ook vyf vorige jare se uitstaande belasting
kan eis, plus rente, plus boetes, plus nog moontlik strafregtelike
vervolging ook kan instel, en dit skrik mense af.
Gegewe die huidige kleiner winsmarge van kleinsakeondernemings,
behoort geen heffings op die belasbare inkomste van die 2006-jaar
gehef te word as vereiste vir amnestie nie. Die argument dat geen
heffing ander belastingbetalers sal benadeel, hou nie water nie.
Spesiale rekenkundige hulp behoort aan amnestie-aansoekers gegee te
word om die belastingadministrasie te vergemaklik.
Die jongste wysigings wat die Minister verlede week aangekondig het
kan lei tot verwarring. Die wysigings behoort tog duidelik en vinnig
bemark te word om foutiewe aansoek vroegtydig te vermy. Selfs in een
van die Sondagkoerante eergister is verkeerdelik na die
amnestietydperk verwys as 1 April 2004, in plaas van einde Februarie
2005.
Ten slotte, steun die DA die Minister in sy poging om alle
potensiële belastingpligtiges wel uiteindelik in die belastingnet te
kry. Die DA steun die wet. [Applous.] (Translation of Afrikaans
speech follows.)
20 JUNE 2006 Page: 49 of 221
[Dr S M VAN DYK: Hon Speaker, in his Budget Speech of 2006 Minister
Manuel announced a tax amnesty for small businesses. Besides the
official advantages, it will also ensure that the data of Statistics
SA is more complete for economic planning; result in the actual GDP
being determined more accurately; provide more clarity regarding job
creation; result in better synchronization of the Minister’s fiscal
planning with the economic realities, and prevent fraud committed by
the employer who currently deducts tax from the employee but fails
to pay it over to the Receiver.
The DA would like to point out certain obstacles that could hamper
the good intentions of the amnesty. There are no direct incentives
for amnesty seekers. On the contrary, by registering as a taxpayer
there will be an immediate burden on the applicant in terms of the
labour laws which have to be adhered to, which involves further
costs. Research has shown that the informal sector regards tax as
the biggest disadvantage of registering and that 24% of the informal
sector feel safer outside the tax net.
The regulations for amnesty are too academic and business-
unfriendly. If the amnesty levy is not paid in full within the
prescribed period, or the applicant fails to disclose all relevant
information or provides incorrect information, amnesty can be
denied. That means that an amnesty seeker who is inexperienced in
terms of all the regulations regarding tax forms could inadvertently
default, and that drives people away.
20 JUNE 2006 Page: 50 of 221
The amnesty period from 1 August this year to the end of May next
year is too short as it will take a considerable time for the full
ramifications of amnesty to reach small businesses. Amnesty seekers
do not have a culture of bookkeeping or completing tax procedures.
They will have to create an administrative unit, whilst it will also
take time to gather documentation and information.
The current tax regulations for small businesses are far too
technical and complicated, which is another reason why many entities
currently still remain outside the tax net. Time is required for
proper education relating to all the types of taxes to be paid
ultimately.
The state has undertaken the taxi recapitalisation programme in
which the state provides a scrapping fee of R50 000 per taxi, but in
order to qualify for this taxi owners have to produce tax
certificates. Given the amnesty levy and tax that will then have to
be paid, together with a new car premium, taxi owners would rather
stay outside the tax net.
The question is also how long it will take to process the amnesty
applications. By submitting an application, amnesty is granted
provisionally, but unless the applicant receives a speedy reply, he
may withhold the following year’s tax return, which creates further
problems.
20 JUNE 2006 Page: 51 of 221
The possibility that amnesty could be denied, could further scare
off applicants. Incomplete application forms could be the result of
a lack of knowledge with regard to completing tax forms properly. In
the event of the Receiver requesting further information, amnesty
could then be denied. That means that the Receiver can demand
outstanding taxes for the past five years, plus interest, plus
fines, and possibly lay criminal charges as well, and that scares
people off.
Given the current smaller profit margins of small businesses, no tax
should be levied on the taxable income for the year 2006 as a
prerequisite for amnesty. The argument that no levies will
disadvantage other taxpayers, does not hold water. Special
accounting assistance should be given to amnesty seekers in order to
facilitate tax administration.
The latest amendments that were announced by the Minister last week,
could lead to confusion. Surely the amendments should be marketed
explicitly and promptly to prevent erroneous applications timeously.
Even one of the Sunday newspapers two days ago referred in error to
the amnesty date as being 1 April 2004, instead of the end of
February 2005.
In conclusion, the DA supports the Minister in his efforts
eventually to secure all potential taxpayers within the tax net. The
DA supports the Act. [Applause.]]
20 JUNE 2006 Page: 52 of 221
Mr T E VEZI: Madam Deputy Speaker, the main purpose of this Bill is
to provide a small business tax amnesty in respect of the voluntary
disclosure of a failure to comply with the applicable tax laws. The
Bill also amends various tax laws to provide for enactment of
announcements made by the Minister of Finance during his 2006 Budget
Speech.
Many small businesses operating informally were excluded from the
economic mainstream, thus remaining outside of the tax system. These
businesses are now keen to regularise their tax affairs, but an
obstacle is their past noncompliance and the resultant potential tax
liabilities, penalties and interest.
It is the IFP’s wish that there be no problems of violence when the
taxi industry is also drawn into the net. We say this because there
are still unresolved issues in the taxi industry. Our concern is
that while the Minister and his team bring millions into the
coffers, organised crime is also busy drawing money out. The war
against poverty must be waged on all fronts, we agree. Corruption,
as the President has often pointed out, is a very worrying factor.
While we support the President in his peace efforts, we are alarmed
by the number of so-called asylum seekers who are involved in
organised crime in this country. The Department of Home Affairs
needs to be assisted by all Members of Parliament in trying to close
20 JUNE 2006 Page: 53 of 221
the loopholes which are being opened. The IFP supports this Bill. I
thank you. [Time expired.]
Mr A HARDING: Madam Deputy Speaker, the ID believes that this Bill
will go a long way in broadening the tax base, normalising the tax
affairs of small businesses and improving the culture of compliance.
Most of the businesses affected by this Bill operate informally, and
have been historically marginalised and excluded from the economic
mainstream. The ID supports this piece of legislation.
However, we do have some concerns. We believe that the turnover
limit of R10 million should be increased to R14 million to be in
line with the new threshold limit set for business tax relief. This
will result in more businesses claiming amnesty and will ultimately
bring more taxpayers into the tax net.
Another concern we feel must be addressed are the implications in
terms of the Financial Intelligence Centre Act, and we suggest that
a specific Fica exemption be granted as one of the provisions of the
amnesty legislation.
The prohibition of carrying forward losses in previous years is
problematic, considering that many of these businesses operate on
small margins, but we acknowledge that a blanket provision may also
lead to abuse.
20 JUNE 2006 Page: 54 of 221
While many small businesses may be eager to use this opportunity to
regularise their tax affairs, it is true that a lot of them will not
be able to cope with our complex tax legislation. This will increase
their dependence on tax advisers and practitioners, and the
resultant cost of tax compliance will increase their operational
costs.
We also suggest that the returns and the frequency will add to tax
compliance and that the length, relevance and quantity of
information be considered for small businesses. The ID supports this
Bill. Thank you.
Mr S N SWART: Madam Deputy Speaker, hon Minister, the ACDP supported
the tax amnesty for offshore funds held illegally and, similarly,
supports the provisions of this Bill that allows tax evaders to
regularise their tax affairs.
We believe it is long overdue and will bring a large number of tax
offenders into the net, thus increasing the spread of taxpayers.
This, in the long term, should result, we trust, hon Minister, in a
reduction of the tax rates.
The ACDP encourages all small businesses that have not regularised
their tax affairs to make use of the generous provisions of this
amnesty. This is a once-off offer to come clean that should not be
missed. In the words of Rhodes University tax professor, Professor
20 JUNE 2006 Page: 55 of 221
Lester, “with the stroke of the pen, you will be transformed from a
tax leper to a fine, upstanding member of society”. If only it were
that simple to become such an upstanding member of society. However,
at the very least, as far as one’s tax affairs are concerned, one
can become legal and not have to be wary of tax inspectors. The ACDP
will support this Bill. I thank you.
Mr R B BHOOLA: Deputy Speaker, the MF views the small business tax
amnesty as a sure way to bring small businesses in line with Sars
requirements.
The MF hopes that small businesses will seize this opportunity,
instead of facing heavy penalties. This should normalise the tax
compliance culture. We do, however, feel that there are many
businesses that have been registered and face discrepancies, which
they have been penalised for. In all fairness, we suggest amnesty in
this regard too, which will further normalise tax compliance.
In view of the tax amnesty relief, the MF finds all provisions well
devised to administer the process. As a separate unit at Sars will
handle the small business tax amnesty applications, enquiry is
extended into transparency, accountability and oversight of this
process.
20 JUNE 2006 Page: 56 of 221
The amendment of tax laws has been adequately dealt with. The MF
supports the Small Business Tax Amnesty and Amendment of Taxation
Laws Bill.
Mnu S E ASIYA: Sekela Somlomo ohloniphekileyo, baphathiswa
abahloniphekileyo, malungu ale Ndlu ahloniphekileyo nakumaqabane.
Ndibulela elithuba ndilinikiweyo lokwenza le ntetho kule Ndlu
nombandela woxolelo kwirhafu. Olu xolelo kwirhafu lwenzeka kanye
ngethuba apho sibhiyozela iminyaka engama-30 apho amaBhulu asePitoli
agwinta ulutsha eSoweto, kwaMashu, eNew Brighton eBhayi nakwaLanga
ngokunjalo.
Ikomishoni yababuthi berhafu, ngamava ayo okusebenzisana
noosomashishini abakhasayo nabancinci, kufunyaniswe ukuba uninzi
lwabo ababhalisanga okanye abandandalazisanga inkcukacha zabo
malunga nalo mthetho uthiwe thaca kule ndlu. Sibongoza amalungu ale
Ndlu ukuba awamkele lo mthetho njengomthetho ozakwenza oosomashishi
babhalise kwikomishoni ngaphandle kwedyudyu noloyiko lokungena
emgibeni wokujeziswa. Kukho izigrogriso zokuba wakubhalisa
uzakujeziswa kuthinjwe yonke into othe wayizuza ngaphambili. Ndifuna
ukuthi ngamampunge lawo.
Mandigxininise ukuba eli cham alinakuxhanyulwa ngabo baneencwadi
ezisaphengululwayo nezinekhwiniba. Xa ubani enengeniso engama-35
amawaka erandi akazukuhlawula nondancama kwirhafu kweli lizwe. Xa
unengeniso ingaphezu kwama-35 amawaka ubani wohlawula ipesenti
20 JUNE 2006 Page: 57 of 221
ezimbini kwirhafu. Oosomashishini bacelwa ukuba bagxalathelane benze
imitsi yenkawu ukusebenzisa eli thuba.
Esi sisigaba sesibini kuxolelo lwerhafu lusenziwa ngurhulumente
olawulwa yinkongolo. Esokuqala isigaba kwakunikwe ithuba
oosomashishini abarhweba ngaphandle kwemida yeli. Abaninzi
balithabatha eli thuba beza ngaphambili. Lo nto yenza ukuba kubekho
uchatha kwingxowa kazwelonke.
Xa ndiphawula ngerhafu ndifuna ukuthi thaca kwasekuqaleni apha kule
Ndlu ihloniphekileyo ukuba wonke ubani okanye usomashishini
kuyimfuneko ukuba ahlawule irhafu nokuba yeyaluphina uhlobo. Kule
njika langa intetho izakujolisa kuxolelo kwirhafu oluthe lwacetywa
lwathiwa thaca kule ndlu nakwikomiti. Siye sayihla amahlongwane
savumelana ngamxhelo mnye sasamkela isiphakamiso eso.
Abanye oosomashishi ncakasane babephakamisa ukuba lunyuswe oluxolelo
kwirhafu luye kuma kwizigidi zamashumi amawaka erandi. Ikomiti
nesebe kunye nekomishoni yababuthi berhafu sithi le nyhweba yenzelwa
ukuba ixhanyulwe ngoosomashishini abancinci hayi oongxowankulu. Xa
uninzi lwabantu noosomashishi bethobela umthetho bahlawule irhafu
lonto ithi iinkqubo zophuhliso zikarhulumente wesizwe aziyi kusilela
koko ziyakwanda.
Kule veki iphelileyo besibhiyozela umhla we-16 kweyeSilimela 1976. A
baninzi bebezama ukucinga ukuba babesenza ntoni kwaye kwakusenzeka
20 JUNE 2006 Page: 58 of 221
ntoni kanene ngaloo mhla. Ingaba sikhe sathatha umzuzwana sicinga
ngobume berhafu ngela xesha. Ngaloo nyaka irhafu yookopolotyeni
ibingama-43 ekhulwini. Irhafu ebihlawulwa ngabantu abamivuzo
iphezulu ibingama-66 ekhulwini.
Urhulumente okhokhelwa ngumbutho wesizwe i-ANC, ongafuni kujongana
ngezikhondo zamehlo noosomashishini abancinci nabakhulu uye weza
nale nyhweba yoxolelo kwirhafu ukuze kungabikho ngquzulwano phakathi
kwababuthi berhafu nabantu boMzantsi Afrika. Umyalezo kwikomishoni
yalapha ekhaya uthi unondyebo kandlunkulu uyenzile indima yakhe,
ngoku icekwa lilele kuni boosomashishini. Yenzani eyenu indima nize
ngaphambili.
Ikomiti eyongameleyo ithe xa igoca goca isebe nekomishomi kwacaca
mhlophe ukuba kuninzi ekufuneka kwenziwe ukufundisa oosomashishini
ukuze bangaziboni njengabafakwa emgibeni. Ndinethemba lokuba
ikomishoni xa iza kwenza ingxelo kwikomiti iza kucacisa ukuba
ngobani ababasebenzisana nabo kolu xanduva lungaka. Kule mfundiso
kufuneka babone ukuba kuyifuneko kwaye kulilungelo labo ukurhafa
nokungarhafi xa kufanelekile. Umceli mngeni kwikomishoni ngoku
kukhangela ukuba bangaphi na oosomashishini abafuna ukubafaka kulo
mnatha.
Siyikomiti eyongamele eli sebe kufuneka siyakhele umkhanyo le nkqubo
kuba isininzi saba bantu sithetha ngabo ngeli lixa ngabantu
abangazange baye esikolweni sezoshishino kwaye bondla iintsapho zabo
20 JUNE 2006 Page: 59 of 221
abathathi ntweni. Ngokutsho andifuni ngathi ndiyalawula koko ndiyazi
ingathatha ithuba esingangonyaka. Ndiyazi mphathiswa ukuba lo mhlaba
sizakunyathela kuwo uthambile ufuna ubuchule kuchulwe ukunyathela.
Nathi kufuneka sibaze iindlebe sivule amehlo njengekomiti eyongamele
eli sebe. Sibongoza njengombutho wesizwe ukuba le Ndlu ibekekileyo
iwamkele lo mthetho uthiwe catha apha. Enkosi. (Translation of
isiXhosa speech follows.)
[Mr S E ASIYA: Hon Deputy Speaker, hon Ministers, hon members of the
House and comrades, I am grateful for this opportunity I have been
given to present this speech to this House on the issue of tax
amnesty. The tax amnesty came at a time when we commemorated the
30th anniversary of whites from Pretoria brutally killing the youth
from Soweto, KwaMashu, and New Brighton in Port Elizabeth and also
in Langa.
The commission of tax collectors, through its experience of working
closely with small and up-and-coming businessmen, has noticed that
most of them have not registered or have not disclosed their details
according to the Bill that has been presented in this House. We
appeal to the members of this House to support this Bill, as it will
enable businessmen to register with the commission without fear or
the threat of falling into the trap of being penalised. There are
rumours that people will be penalised and have their belongings that
they have collected seized once they register. I want to say that
that is not true.
20 JUNE 2006 Page: 60 of 221
Let me stress that this opportunity cannot be made available to
those whose books are still audited and have qualified reports. If a
person earns R35 000 per annum, that person will not pay even the
minimum tax in this country. If the earnings are more than R35 000
the person will pay 2% towards tax. Businessmen are requested to act
quickly and make use of this opportunity.
This is the second phase of tax amnesty offered by the ANC-led
government. In the first phase the opportunity was given to
businessmen who trade outside the borders of this country. Most of
them grabbed that opportunity and came forward. This contributed
positively to the National Treasury.
When I comment about tax in this honourable House, from the outset I
want to say that it is necessary that every person or businessman is
appropriately required to pay any type of tax required. This
afternoon’s deliberations will focus on the planned tax amnesty
tabled in this House and to the committee. We scrutinised it
thoroughly and unanimously agreed to support the proposal.
Some businessmen even suggested that the ceiling for this tax
amnesty be raised to millions of rands. The committee, department
and the commission of tax collectors say this gesture is extended
only to small businessmen and not to the capitalists. When the
majority of people and businessmen abide by the law and pay tax,
government’s development programme will not fail but will prosper.
20 JUNE 2006 Page: 61 of 221
Last week we were commemorating 16 June 1976. Most people thought of
what were they were doing and what happened on that day. Did we for
a moment think about the nature of tax during those days? During
that year the co-operative tax rate was about 43%. The tax paid by
people with high earnings was about 66%.
The ANC-led government, who do not want to be at loggerheads with
small and big businessmen, provided this golden opportunity of tax
amnesty, so that there should be no conflict between tax collectors
and South African citizens. The message sent by the National
Treasury to the commission is that Treasury has played its role and
that the ball is now in the court of businessmen. Make your mark and
come forward.
When the portfolio committee interrogated the department and the
commission, it became clear that a lot needs to be done to train
businessmen, so that they do not feel that they are being led into a
trap. I hope that when the commission presents its report to the
committee it will indicate the people who co-operated with them in
this huge responsibility. From this lesson they must see that it is
necessary that they pay tax and that it is their right to pay, or
not to pay tax if that is appropriate. The challenge to the
commission is to check how many businessmen they want to bring into
this net.
20 JUNE 2006 Page: 62 of 221
As a portfolio committee in this department, we must carefully
observe this programme because most of the people we are referring
to have no formal education in business and they work to provide
food for their children; they are poor.
I do not want to appear to be making a ruling by saying this, but it
will take about a year. Minister, I know the area we are approaching
is a sensitive one and we need to tread very carefully. We must
listen carefully and be attentive as a portfolio committee in this
department. As the African National Congress, we appeal to the House
to support this Bill presented before us. Thank you.]
The MINISTER OF FINANCE: Thank you very much, Deputy Speaker. I’d
like to thank all the parties for supporting the Small Business Tax
Amnesty and Amendment of Taxation Laws Bill. There are a few issues
that are worth commenting on.
Dankie aan die agb Van Dyk vir die ondersteuning, maar jy doen dit
met so ’n swaar hart. Jy is so treurig oor die steun, maar ons los
dit maar vir nou. [Thank you to the hon Van Dyk for the support, but
you give it with such a heavy heart. You are so lacklustre about the
support, but we’ll leave it there for now.]
In respect of the hon Vezi regarding the taxi industry: clearly, you
are not going to be able to resolve all the issues with the tax
amnesty, but it is a very important start. Hon Harding, the R14-
20 JUNE 2006 Page: 63 of 221
million threshold for small business kicks in in the 2007 year and
the R10 million is in line with the applicable maximum rate in the
year in the question.
In respect of the Financial Intelligence Centre Act, there will be a
waiver for advisers, but I have said before, and it is worth
repeating, that the tax amnesty does not render the evil gains of
criminals lawful. If people have acquired wealth by foul means, you
can’t by a tax amnesty now allow them to regularise their affairs.
They remain outside of the system, and I think it is important to
recognise that those who have broken the law must feel the full
weight of law enforcement, especially those who dispense chemicals
into townships that poison the heads of young people.
Finally, a number of members have spoken to this: clearly, we would
like to be in a position in which all our tax laws were simplified
quite extensively. It is work in progress. It is also important that
we don’t adopt this “ag foeitog” approach [“ah, shame” approach] in
respect of small business.
This is because there is actually a much higher level of
sophistication and savvy than what we give small business credit
for. Some have fallen into a situation now in which their tax
affairs are not in order. But, from our own engagement, I am quite
impressed with the amount of savvy and street wisdom that obtains
20 JUNE 2006 Page: 64 of 221
and I am pretty sure that small businesses will know that it is in
their interests to regularise their affairs.
Thank you very much for the support. We ask that the matter now be
taken to the next stage. Thank you very much, Deputy Speaker.
[Applause.]
Debate concluded.
Bill read a first time.
SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS BILL
(Second Reading debate)
There was no debate.
Bill read a second time.
SECOND SMALL BUSINESS TAX AMNESTY AND AMENDMENT OF TAXATION LAWS
BILL
(Second Reading debate)
There was no debate.
20 JUNE 2006 Page: 65 of 221
Bill read a second time.
THE NEED FOR SOUTH AFRICA TO UNDERGO A SKILLS REVOLUTION IF IT IS TO
MEET THE GOALS OF ASGISA
(Subject for Discussion)
Mr C M LOWE: Thank you, Madam Deputy Speaker.
Professional skills are critically needed as the country moves into
a higher economic gear and one of the most fatal constraints to
shared growth is the lack of skills – nothing short of a skills
revolution will extricate the country from the skills shortage
crisis it faces.
These are the words of the Deputy President, speaking at the launch
of the Joint Initiative for Priority Skills Acquisition on 27 March.
“That fact”, she went on to say, “should be admitted with emphasis”.
The DA welcomes the Deputy President’s refreshing candour,
absolutely concurs with her assessment of the situation and thanks
Parliament for agreeing to debate this important matter this
afternoon.
South Africa needs to undergo a skills revolution if it is to meet
the goals of the Accelerated and Shared Growth Initiative for South
20 JUNE 2006 Page: 66 of 221
Africa. My colleague the hon Van Dyk will speak to the need to
address the current legislated racial bias that prevents thousands
of skilled South Africans from applying for or being placed in those
skilled positions that are currently vacant. Suffice for me to say,
that starting a skills revolution also means stemming the flight of
scarce and crucial skills out of the country and welcoming back
individuals who have left the country because of the fact that
affirmative action quotas prevent them from getting work and
contributing to our country’s economy.
Every skilled position filled results in the creation of eight
further jobs – so if we fill the 500 000 skilled vacancies, we can
create up to 4 million new jobs and be well on our way to meeting
government’s goal of halving unemployment. These skilled individuals
can, in turn, mentor, train and teach the as yet unskilled
employees. Everybody wins.
But to do this with a skills revolution that will truly deliver the
skills and jobs, economic growth must be the non-negotiable priority
above racial preferencing. If we continue along the current path,
racial transformation will continue to occur only among South
Africa’s small elite at the expense of economic growth, jobs and
ultimately the unemployed masses.
Twelve years after the introduction of the RDP, the fundamental
problem remains the same, namely wide-scale unemployment of up to
20 JUNE 2006 Page: 67 of 221
40% of the workforce, with much of it caused by a huge skills
deficit. Recent HSRC skills surveys show that fewer than 40% of
school-leavers currently find jobs.
There have been some successes within the Seta systems, but by and
large they have been an expensive failure. They have not nearly met
their learnership targets and, in the few exceptional Setas where
they have done so, only a very small percentage of learners have
actually gone on to find work. Even with the Minister of Labour’s
intervention in 2004, arising from the extremely poor performance of
the Seta system, the situation has hardly improved.
The DA’s solution to the skills crisis is to make companies and
private-sector bodies, which have the analytical, logical and
managerial ability to develop skills far more effectively than the
Setas, the engine rooms for the skills revolution. The combined
decentralised action of thousands of South African businesses will
result in an economy-wide responsive, efficient training environment
- a true skills revolution. If the entire existing budget for Setas
were channelled into such an initiative, the amount left over would
easily fund a nationwide tax rebate equivalent to one third of
tertiary institution fees for four years of successful study.
Combining such a scheme with a tax deduction of 150% of the first
R2 000 per month of every employee’s salary would create a situation
in which businesses are incentivised not only to employ more
20 JUNE 2006 Page: 68 of 221
workers, but to train and develop them to meet the future skills
needs of the businesses and of South Africa.
Solving a problem of this magnitude also means clearly delineating
responsibilities between the Department of Education and the
Department of Labour. Yet it seems that these two departments have
been involved in a turf war over who has responsibility for what.
And the result has seen schools across the board producing
matriculants who cannot do simple maths or spell. Yet maths and
science are two key subject areas that learners require if we are to
effect a skills revolution.
Concerns raised by Professor Jonathan Jansen, Dean of Education at
the University of Pretoria, echo the very concerns raised by two
Seta CEOs at last month’s Labour portfolio hearings on youth
unemployment, concerns denied and shouted down by some members of
the portfolio committee. They are that the current education
syllabus produces learners who lack the basic skills of reading
thoughtfully, writing accurately and speaking fluently, as well as
the basic ability to work with numbers.
The SA Democratic Teachers Union has come out in full support of
Jansen’s suggestions. I think that the Portfolio Committee on Labour
needs to look at these concerns again and see how this lack of basic
skills makes it extremely difficult, if not impossible, for
20 JUNE 2006 Page: 69 of 221
matriculants to find or create ordinary jobs, never mind highly
skilled positions.
The Deputy President agrees. Last week in Parliament she conceded
that there is still a big gap between the skills taught in schools,
colleges and universities and those required in the workplace.
Again, the DA wishes to acknowledge her frankness and to support her
views.
Employers spend considerable sums giving basic training to
matriculants before they can be given tasks that they should, by
that time, be able to figure out for themselves. Universities
confirm that first-year students, often with good school symbols,
lack the knowledge and skills to meet the educational demands of
higher education, including the inability to do basic library
research, work within a diverse team and solve the sort of problems
they may meet.
This problem of inappropriate education is as bad in the formerly
white schools as it is in the badly equipped black schools, although
in poor schools bad syllabi are compounded by teachers who lack
sufficient knowledge and sporadic school attendance.
In the time left to me at the end of this debate, I shall summarise
and conclude on this very important issue. Thank you. [Applause.]
20 JUNE 2006 Page: 70 of 221
Mr L ZITA: Chairperson and colleagues, over the past 12 years the
ANC-led government has laid the foundation for stable yet
progressive rule. In this decade and beyond, we have surprised even
ourselves on the ability to keep a positive and stable macroeconomic
stance whilst addressing the demands for social protection and the
pursuit of pro-poor policies.
Some might undervalue the importance we ascribed to stability, but
we understood that only in this context would we be able to create
the conditions for sustained social transformation in our society.
Today the public rating of our government is the highest in decades.
Indeed, it is not the fecundity of our imagination speaking when we
say that, to the majority of South Africans across racial and class
divides, there is a palpable feeling that today is better than
yesterday and that tomorrow will even be better.
However, despite these achievements, in areas such as housing,
water, electricity and social protection, a lot still needs to be
done. Our levels of unemployment are narrowly estimated to be at 27%
whilst in an expanded form are estimated to be 40%.
According to the Labour Force Survey in September 2005, over 34% of
those employed were earning under R1 000 per month. Together with
those who were earning between R1 000 and R2 500, they constituted
60% of our labour force. To restate this: 60% of South Africans, the
majority of whom are African, earn less than R2 500 per month.
20 JUNE 2006 Page: 71 of 221
This should be contrasted with the R52 million that Whitey Basson
from Checkers, the R42,7 million that Steve Ross from Edgars and the
R19 million that Phuthuma Nhleko from MTN get every year. Therefore,
we not only have a problem of high unemployment, we also have a
generalised situation of low wages and unacceptable levels of
inequality in our society.
Asgisa talks to this reality. Firstly, Asgisa seeks to address the
causes of this sad situation. You cannot find a solution to a
problem if you have not clearly determined the ailment. The problems
of our economy derive from it being an enclave economy, with a
limited manufacturing base and a limited domestic market dependent
on primary exports, undergirded by the overdetermination of
historically institutionalised racism.
This historically racist and enclave economy, designed for a
minority of South Africans, has failed to meet the needs of a
postapartheid society with unrestricted labour mobility and the
demands of a globalising economy. As a result of this, a number of
binding constraints are evident.
There is a tendency towards volatility of the currency, an expensive
and ineffective national logistics system, a shortage of suitably
skilled labour reinforced by the costs of apartheid geography as
well as barriers to entry, limits to competition and limited new
investment opportunities, with a regulatory environment which
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burdens small and medium-sized enterprises, and challenges in state
organisation, capacity and leadership.
The Accelerated and Shared Growth Initiative for South Africa is
about increasing the pace of growth whilst simultaneously sharing
the basis and the proceeds of that growth. To effect both the
sharing and the growth, the Asgisa programme locates the democratic
state at the helm of an accumulation process that seeks to catalyse
the broader economy on a renewed and sustained wave of investment.
Beyond this objective of investment it seeks to create an enabling
environment that fundamentally improves the conditions for doing
business in South Africa. To effect this, the government seeks to
invest R370 billion over the next three years in electricity,
transport and communications infrastructure.
Beyond this stimulating role, these investments are also designed to
improve the environment of business. There are also specific
sectoral initiatives that the Asgisa programme seeks to focus on.
They include business process outsourcing and tourism in the service
industry. In the manufacturing industry the priority sectors are
biofuels, chemicals, metals and metallurgy; agroprocessing; wood,
pulp and paper; clothing and textiles, and durable consumer goods.
Thirdly, the government seeks to consolidate and have an effect on
the second economy interventions by bridging the links between the
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first and the second economy, as well as strengthening sustainable
livelihoods.
As the ANC we want to underscore the fact that for us the Asgisa
programme has to be the anchor around which every policy of
government and the private sector is measured. Every programme of
government should be evaluated on the extent to which it advances
accelerated and shared growth. From the point of view of Parliament
this will be the angle from which we do our oversight work.
All of these interventions will be unrealisable without the
appropriate skills to realise them. To this extent, we agree as the
ANC with the topic of this debate. Indeed, nothing less than a
revolution will be needed to realise the acquisition of skills.
We endorse Jipsa, the Joint Initiative for Priority Skills
Acquisition. We endorse, in particular, the resoluteness and
creativeness that the government has put into this question. The
attempt to identify in precise terms what skills shortages we have
will go a long way in helping us to solve this challenge.
It is our view that whilst this process should be led by the
government, society should position itself to respond to these
identified sectors. If engineering or IT skills are needed, training
institutions should position themselves to respond to these needs.
To ensure that this societal positioning achieves the desired
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results, measures will have to be pursued to ensure that the skills
that people are trained in are of the appropriate character and
level. There should therefore be appropriate quality control
measures.
We also believe that what we are dealing with here is a moment of
epochal dimensions for our country. Epochal circumstances demand
epochal means. If we have serious skills shortages, why should we
not continue training even in the evenings? Why should we not
recruit enough trainers to ensure that, just like factories that
have to have night shifts to meet greater demands, we also have such
shifts for skills training?
As the ANC we believe it is important that we maintain the momentum
of a plough-back initiative to everyone who has something to offer
with regard to skills. Appropriate incentives should be looked at to
ensure that South Africans outside the country come back. We need to
ensure also that beyond material incentives a volunteer movement for
skills is mobilised. We need to establish, amongst other things, a
register of retired maths teachers who can be mobilised for the
challenge of skills. The same can be said for language teachers,
retired plumbers, electricians, etc. Our society needs to heed the
perennial call of the Congress of South African Students, Cosas,
which says: “Each one teach one.”
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Without undermining development in other African countries, we need
to position our country as a destination of choice for skilled
Africans on the continent and for those in the African diaspora. To
this extent we will have to fight the demon of xenophobia.
More importantly, it will be critical that all levels of government
and their respective business and labour counterparts co-operate in
establishing their localised Asgisa initiatives, including a skills
plan. Every municipality in our country should have the skills and
the resources to effect this.
It is important to indicate to Mr Lowe that it is not correct to
counterpose the need to involve all South Africans in the skills
challenge and the challenge of black economic empowerment and
affirmative action. These things reinforce each other. You cannot
say that one is more important than the other. Yes, we need to
invite people to come and contribute with their skills, but we must
also continue with the challenge of transforming the skills profile
of our society. It cannot be correct that only whites are engineers;
it cannot be correct that only whites are IT operators. We have to
ensure that everyone participates in all the critical skills our
society needs.
Secondly, with regard to the Setas, I think that indeed the Setas
are a challenge and all of us would acknowledge that. More can be
done to ensure that there is convergence between what the Setas are
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offering and what the industry needs. These are challenges that we
need to look at and address.
I would challenge business to come up far more energetically and
decisively to participate in the Seta process to ensure that they
themselves indicate the critical skills that they are missing so
that there is confluence and convergence between the market needs
and the supply of those skills in our society.
Only with this level of mobilisation will we be able to ensure that
the ambitious programme of Asgisa is able to meet the 6% growth rate
and halve unemployment by 2014. I thank you. [Applause.]
Prince N E ZULU: Hon Chairperson, the overriding goal of Asgisa is
to drive the country’s economic growth to sustained levels of 6% per
annum in order to accelerate delivery on absolute needs and broader
social development. This needs to happen faster and better in order
to avoid a future full of uncertainties for South Africa.
By now it is common cause among government, the business sector and
other role-players that South Africa suffers from a dire shortage of
skills in various fields, such as engineering, science and medicine.
To that end, the government launched Jipsa as a short-term measure
to acquire the priority skills the economy needs to expand and grow.
We welcome this move.
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However, Jipsa will only address short-term needs and the country
needs a complete rethink on skills development for the future. There
are many facts about the skill shortage that can be mentioned and I
want to highlight just two. Hon members would be aware that Eskom is
planning a massive expansion programme to increase electricity
supply, which is already under some pressure due to growing demand.
But, two years ago when Eskom looked for 400 qualified engineers in
the electricity field, it could only find 160 such engineers in the
country after a search that lasted more than a year.
The mining industry, one of the most important sectors in the
economy, relies heavily on artisans. But, of the 51 000 artisans in
South Africa, it is expected that about 70% will leave the industry
in the next five to six years due to natural attrition as the
average age is around 54. That means the industry will have to train
between 10 000 and 12 000 artisans every year, but currently there
are only 1 695 learners in artisan training. This paints a very
bleak picture.
These examples show the depth of the skills problem in our country.
But what is even more shocking is the fact that the majority of
learners who come through our school education system are simply not
ready to be taken up into training programmes, learnerships and
higher forms of education, because their basic skills such as
reading, speaking and writing are not up to the mark.
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We can talk about the need for a skills revolution, yes, but what we
really need is an education system that produces learners who
already have the basic skills to enter seamlessly into training
programmes and skills development learnerships.
While we agree that a skills revolution is necessary, the IFP feels
that an education revolution will serve our country’s long-term
interests and economic development more. Thank you.
Mr H B CUPIDO: Chairperson, if a skills revolution will ensure that
poverty and unemployment rates are halved by 2010 or 2014 and that a
6% growth rate will be achieved, it becomes more imperative that all
role-players consistently demonstrate their visible commitment to
such a skills revolution and provide the South African public with
ongoing evidence of measurable results.
The identification of scarce skills is an appropriate place to
start, and this first phase of the Joint Initiative for Priority
Skills Acquisition, or Jipsa, has been proceeding remarkably well.
The logical next step would be to focus on those institutions at
which South Africans can acquire these skills and it is at this
point that some critical issues arise.
By the time our learners reach the tertiary educational level, their
capacity to acquire skills has, to a large extent, already been
shaped by the preceding school years. In recent times, there has
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been a tendency to lower the standards of education in order to
boost pass rates. This lowering of standards significantly impairs
learners’ preparedness for the acquisition of further skills.
A further area of concern is the removal of formalised trade tests
for artisans. The ACDP is of the opinion that the setting of
standards for our technical skills groups must not be adversely
affected by the absence of these trade tests and that integrity must
be maintained in the certification of our artisans.
The ACDP supports the idea of a skills revolution as the primary
vehicle for accelerated and shared growth. [Time expired.]
Mr M J G MZONDEKI: Chairperson, let me start by sharing with the
members an article that appeared in Enterprise magazine in June
2006. This article on some of the work that is done by the Umsobomvu
Youth Fund is about encouraging young girls and boys to embark on
business.
This article says that that the fund’s Umsobomvu in-school
entrepreneurship programme has inspired a Limpopo-based schoolgirl
to invest her pocket money in a vegetable and fruit business in her
village. This girl, Reneilwe Kabe, 15 years old and a Grade 10 pupil
at Machedi Secondary School in Garankuwa village near Polokwane, was
the winner of a business plan competition held by the Umsobomvu
Youth Fund in collaboration with the Maths Centre and National
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Foundation for Teaching Entrepreneurship. She’s off to New York as
we speak to represent South Africa’s youth at the 26th National
Foundation Annual Programme Partner Retreat Conference. [Applause.]
The entrepreneurship programme was modelled on the NFTE programme,
which was brought to South Africa from the US by Umsobomvu. This
young entrepreneur was introduced to farming by reading her father’s
books on gardening. She uses her pocket money to buy seeds, and her
parents assist her to purchase the fertilisers and pesticides. We
are told that her business is flourishing. Her markets are the
health clinics in the area as well as the pension paypoints. She
says that the aim of her business is to provide the poor rural
community with easier access to fresh fruit and vegetables. She
says, “Starting my own business has brought me closer to health
issues and the importance of healthy food and a balanced diet.”
The article goes on to say that this programme by the Umsobomvu
Youth Fund has also benefited the community. The Umsobomvu programme
manager, Thembisile Khoza, says that the programme has already been
introduced to the Department of Education and is in line with the
national government strategy of outcomes-based education. Khoza
explains that the in-school entrepreneurship programme has begun to
bear fruit for the entire community and not just for children and
teachers.
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I think we can take a few lessons from this in that if all of us
begin to identify these little programmes that are intended at
skilling people from very young ages, I am sure we can go a long way
in meeting some of the challenges that we have. I wish I could see
more young boys and girls getting inspired in the same way that
Reneilwe did. If we did so, I’m sure that many of them would not be
queuing looking for jobs. They would be busy preparing their
recruitment policies. I also wish that Members of Parliament could
identify more of these programmes in order for us to sell more of
them to the rest of the country. I wish Reneilwe every success in
her endeavours.
The report of 2003 on the state of skills in South Africa summarises
the key features of the South African labour market as follows:
unemployment remains the key challenge for transformation for the
South African labour market. It says that providing training
especially to African unemployed youth could enhance their prospects
of accessing the labour market. Such an intervention can also
promote social cohesion and build the skills base from which
accelerated growth and development can be launched.
The proportion of African workers with relatively low educational
levels remains large and should form a focal point in attempts to
link skills development and equity, and my colleague Langa Zita has
alluded to the fact that we need to combine these two. We can’t talk
about skills development and not talk about employment equity.
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The African workers remain underrepresented in certain high-skill
occupations and this should also form a focal point in linking
skills and equity where training can assist and offer a chance for
promotion and mobility in the workplace.
I would like to focus my speech on the role of the employers and the
employees in skills development and training in the workplace. The
Labour Relations Act provides for a workplace forum, which is a
structure that allows for consultation between the employers and the
employees. The forum deals, amongst other things, with the
restructuring of the workplace, including the introduction of new
technology and new work methods, education and training and other
matters of consultation. There is no doubt that when such
restructuring takes place, when new methods are introduced, new
skills are also needed.
The employers have a prerogative to produce a skills audit, which
reflects the skills in that company. The workers must also ensure
that indeed the skills audit is a true reflection of the workplace
and, again, my colleague Langa Zita did say that the workers have a
role to play in ensuring that the skills we are given are the skills
that we indeed need as workers.
I earlier referred to the need for a link between skills development
and equity. The Employment Equity Act provides for a code of good
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practice in the preparation, the implementation and the monitoring
of employment equity plans. The process needs to include proper
communication and awareness in terms of all stakeholders. This
includes the workers and the employers. The unions or the workers
need to ensure that through their representatives the plans indeed
address the inequalities in the workplace.
The ANC believes that through the strengthening of this process
workers can get an opportunity for mobility and promotion. Workers
can be trained and reskilled instead of being retrenched. Programmes
such as the Abet programme need to be properly communicated among
the stakeholders so that concerns, such the cost of training and
loss of production time – again, Comrade Langa Zita did talk about
where we could even extend training after hours - can be discussed
and resolved by all the stakeholders.
I want to talk about the role of employers in assisting new entrants
to acquire work experience. There are good examples of companies
that go out of their way to orientate new graduates who have no
experience and to place them in mentoring programmes for management
positions.
South Africa needs many more such companies so that together we can
reduce the number of graduates on the streets. My personal
experience is that many employers are reluctant to give such
experiential training; they want to have ready-mades. We further
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applaud the government’s commitment to skilling the nation through
various programmes such as the learnerships and apprenticeships.
Again, regarding the problem of the Setas, we appeal to all
stakeholders to deploy people who can add value to the Seta boards,
so that the Setas can function even better. Currently, there is an
outcry that the Seta boards are not strong enough because there is
reluctance by some stakeholders to place their key and senior staff
on these boards. We need strong boards that can influence the work
of the Setas.
The role that is played by Ditsela, which is the Development
Institute for Training, Support and Education for Labour, is highly
appreciated. Ditsela was created to help build the labour movement’s
education and organisational capacity. Hence, we said that we need a
very strong labour movement that can engage with the new challenges
that we all face, especially in the skills area.
Finally, we welcome Jipsa and we would like to quote the Deputy
President during the launch of Jipsa earlier this year. It is
unfortunate that I am quoting from the same book my colleague Lowe
quoted from:
Nothing short of a skills revolution by a nation united will
extricate us from the crisis we face. We are addressing log jams,
some of which are systemic and therefore in some cases entrenched,
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even in the postapartheid South Africa. The systemic nature of
some of our challenges undermines our excellent new policies, at
least in the short term, hence the need for interventions such as
Jipsa to enhance implementation of our policies.
Only if we have a nation that is united in partnership can we
reverse the trend with regard to skills and give our policies a
chance to succeed in the medium to long term.
Thank you, Chairperson. [Applause.]
Mr W D SPIES: Hon Chairperson, according to traditional economic
thought, the country’s most important resources are its mineral
wealth and its infrastructure. This is still true, but as the
information revolution has forced the global economy away from large
infrastructure and resources towards knowledge and skills, skills
are increasingly becoming an important commodity. That is why the
challenge is for any country not only to enable its population to
acquire skills, but also to retain those people once they have
acquired the skills that they need.
Skilled people are therefore any country’s most valuable asset.
Economist Dr Pieter Haasbroek of Barloworld calculated that for
every one professionally skilled person leaving the country, up to
eight job opportunities are taken with him or her. The exodus of
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skilled South Africans is therefore a determining factor in the
current unemployment crisis in the country.
The FF Plus commends the statesmanship, or rather stateswomanship,
displayed by the Deputy President when she accepted the challenge of
our party to have certain skilled and desperate white South Africans
screened and appointed by the Development Bank of Southern Africa.
In this regard, the FF Plus on behalf of Zanda van Rooyen, Esias
Pieterse and Chris van Zyl wishes to thank the Deputy President for
giving them the opportunity to offer their skills towards the
improvement of local government.
But these people are just a drop in the ocean compared to the
hundreds of thousands who have already had to leave the country in
order to earn a living elsewhere. Thank you. [Time expired.]
Mr I S MFUNDISI: Chairperson and hon members, there is a great need
for a philosophical, ideological, educational and psychological
overhaul of the mindset if this country is to ensure that we have
the required skills. Our education system has to be assisted to
transform itself to the point of producing graduates of the new age
of hope who will grapple with the challenges of information
technology. Our universities should revert to internships so that
when graduates leave university they have had first-hand experience
and potential employers have noted them already.
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Affirmative action should be put under the microscope to examine the
extent to which it is doing what it is meant to do in terms of the
Constitution. We have to guard against reversing the evils of the
past as no two wrongs make a right. To mind comes the unpleasant
situation in the Department of Home Affairs in which the accounting
officer, in his own words, admitted that he had no idea whatsoever
what the department was about when he was appointed to the post. The
floundering in the National Intelligence Agency is another example
of people appointed not because there were suitably skilled but
because they had a responsibility to belong to some or other
political party.
The rank-and-file members of the public put it beyond doubt when
they told the President at an imbizo in Namaqualand that placement
in jobs depended on political affiliation and not skills. We hope
that the words of President Mbeki that people should be arrested who
appoint people on the grounds of political correctness and not
ability will ring a bell to revolutionise meeting Asgisa goals. I
thank you. [Time expired.]
Dr S M VAN DYK: Agb Voorsitter, die kern van die debat is baie
eenvoudig: ons het ’n tekort aan geskoolde arbeid in Suid-Afrika,
terwyl die beskikbare geskoolde werkers ook nie die arbeidsmark
betree nie, vanweë regstellende aksie in die openbare sektor en
statutêre voorskrifte vir die privaatsektor. Ek wil dit duidelik
stel dat regstellende aksie nodig is om die ongelykhede van die
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verlede reg te stel, maar die probleem lê by die proses waarmee die
regering dit implementeer en dit bots direk met Minister Manuel se
goeie bedoelings met sy fiskale beleid om die ekonomiese groeikoers
te verhoog.
Regstellende aksie dwing sakeondernemings dat die rassesamestelling
van werkplekke die bevolkingsamestelling moet weerspieël. Dit maak
dat sakeondernemings eenvoudig nie hul produksieprosesse uitbrei nie
of dat hulle arbeid met masjinerie vervang – tot nadeel van
werkskepping.
In die openbare sektor bepaal regeringsbeleid dat regstellende aksie
toegepas word. Produktiwiteit word in die meeste gevalle buite
rekening gelaat en word comrades, vriende en familie aangestel.
Geskooldes van alle rasse word oor die hoof gesien. Baie aansoekers
word met vervalste skool- en nagraadse sertifikate aangestel, maar
die ekonomie is wreed genoeg om ongeskoolde arbeid se swak
produktiwiteit baie gou te openbaar. Daarom lees ons daagliks van
die swak finansiële en administratiewe bestuur van die openbare
departemente op al drie vlakke van regering.
Die gevolg van regstellende aksie, wat die beginsel van gelyke regte
en geleenthede minag, maak dat jong geskoolde arbeid die land
verlaat. Volgens Solidariteit is dit so dat vir elke 1 000
geskooldes wat die land verlaat, word 70 000 ander Suid-Afrikaners
sonder ’n inkomste gelaat. Hierdie emigrasie, tesame met die tekort
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aan ambagsmanne omdat die opleiding so swak is – en die agb Mark
Lowe het daarna verwys – bring mee dat die gemiddelde ouderdom van
’n Suid-Afrikaanse vakman nou 54 jaar is. Wanneer hierdie kundiges
oor ses jaar aftree, gaan Suid-Afrika ’n krisis belewe soos nog
nooit tevore nie en dit kan gevare vir Asgisa inhou.
Die regering moet een ding besef en dit is dat regstellende aksie
nie oornag geïmplementeer kan word nie. Dit moet oor tyd gebeur,
sodat die onderwysstelsel en tersiêre opleidingsinstansies, asook
die proses van indiensopleiding in die werkplek, arbeid beskikbaar
kan stel van ’n hoë standaard. In dié tyd moet die ekonomie sy
bestaande geskoolde arbeid van alle rasse benut, maar die
blindelingse, volgehoue, ongrondwetlike implementering van
regstellende aksie deur die ANC-regering voorkom hierdie proses.
Dan betoog die VF Plus die afgelope week voor die Internasionale
Arbeidsorganisasie van die VN dat net diegene wat na 2 Februarie
1990 gebore is, van regstellende aksie vrygestel moet word. Wat van
al die ander bruin, swart en wit mense wat wil werk en wat voor 1990
gebore is? Die VF Plus vra met ander woorde nou dat net diegene wat
16 jaar en jonger is, van regstellende aksie vrygestel word, maar
studente wat tans die mark betree, is in 1983 en 1984 gebore. Wat
van hulle? Gooi die VF Plus hulle nou weg? Het die VF Plus dan nou
skielik geen gevoel meer vir ander blankes nie? Wil die VF Plus hê
hierdie afgestudeerde studente en die huidige bestaande ouer
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geskoolde wit arbeid wat reeds sedert 1994 deur regstellende aksie
benadeel is, dat hulle dan nou ook die land moet verlaat?
Die DA vra ’n sonsondergang vir die eensydige regstellende aksie
waar alle rassegroepe nie in berekening gebring is nie. Ons moet nou
ophou om nog heeltyd van ’n Nuwe Suid-Afrika te praat, wat daaglikse
voorgesette regstellende aksie vereis. Suid-Afrika is nou twaalf
jaar oud. Suid-Afrika is nie meer nuut nie. Ons is nou ’n gewone
Suid-Afrika en al wat Asgisa nou nodig het, is dat die gewone Suid-
Afrika sy arbeidsmark moet oopmaak vir alle geskooldes van alle
rassegroepe, waar die produktiwiteit van die applikant die maatstaf
moet wees vir sy of haar aanstelling. Ek dank u. [Applous.]
(Translation of Afrikaans speech follows.)
[Dr S M VAN DYK: Hon Chairperson, the core of this debate is very
simple: we have a shortage of skilled labour in South Africa, whilst
the available skilled workers do not enter the labour market because
of affirmative action in the public sector and the statutory
prescripts for the private sector. I want to state clearly that
affirmative action is necessary to address the inequalities of the
past, but the problem lies with the process used by the government
to implement it and it clashes directly with Minister Manuel’s good
intentions with his fiscal policy to improve the economic growth
rate.
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Affirmative action forces business enterprises to reflect the
population composition in their race composition in the workplace.
This results in business enterprises simply not expanding their
production processes or replacing their labour with machinery – to
the detriment of job creation.
Government policy determines that affirmative action be applied in
the public sector. In most cases productivity is not taken into
account and comrades, friends and family are appointed. Skilled
people of all races are ignored. Many applicants are appointed with
falsified school and post-graduate certificates, but the economy is
cruel enough to expose unskilled labour’s poor productivity very
quickly. That is the reason we read daily news reports about poor
financial and administrative management in Public Service
departments at all three tires of government.
The consequence of affirmative action, which disregards the
principle of equal rights and opportunity, is that young skilled
labour is leaving the country. According to Solidarity it is a fact
that for every 1000 skilled labourers leaving the country, 70 000
other South Africans are left without an income. This emigration,
together with the shortage of artisans because the training is so
poor – the hon Mark Lowe referred to this - has resulted in the
average age of a South African craftsman being 54 years. When these
experts retire in six years’ time, South Africa will experience a
crisis as never before and this can pose a danger for Asgisa.
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The government must realise one thing and that is that affirmative
action cannot be implemented overnight. It must be implemented
gradually so that the education system and the tertiary training
institutions, as well as the process of in-service training in the
workplace, can make skilled labour of a high standard available.
During the interim period the economy must utilise the existing
skilled labour force of all races, but the ANC government’s
indiscriminate, sustained, unconstitutional implementation of
affirmative action prevents this process.
Then we have had the FF Plus demonstrating in front of the
International Labour Organisation of the UN this past week, asking
that only those born after 2 February 1990 be exempted from
affirmative action. What about all the other coloured, black and
white people born before 1990 who want to work? In other words, the
FF Plus is asking that only those who are 16 years old and younger
to be exempted from affirmative action. Students entering the market
now were born in 1983 and 1984. What about them? Is the FF Plus just
casting them aside? Does the FF Plus suddenly no longer have pathos
for other whites? Does the FF Plus want these graduates and the
present older skilled white workers who have been prejudiced by
affirmative action since 1994, to also leave the country now?
The DA asks for an end to the one-sided affirmative action in which
all the race groups are not taken into account. We must cease
continuously speaking of a New South Africa that daily requires that
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affirmative action be continued. South Africa is twelve years old
now. South Africa is no longer new. We are now an ordinary South
Africa and what Asgisa now requires is that the ordinary South
Africa open its labour market to all skilled labourers from all
races, where the productivity of the applicant should be the
criterion for his or her appointment. I thank you. [Applause.]]
Mrs L S CHIKUNGA: Chairperson, members of the executive, hon Members
of Parliament, fellow South Africans, it was in 1953 that Dr
Verwoerd said these words:
I just want to remind the hon Members of Parliament that if the
native in South Africa is being taught to expect that he will lead
his adult life under the policy of equal rights, he’s making a big
mistake. The native must not be subject to a school system, which
draws him away from his own community and misleads him by showing
him the green pastures of European society in which he is not
allowed to graze.
With these notorious and immoral words, Dr Verwoerd introduced Bantu
Education to Parliament in 1953 - not in 1994 - which began the era
of the apartheid education system. The shortage of skills and lack
of capacity, therefore, is by no means an accident of history, but
the result of a policy that was planned and approved by the then
parliament and implemented by the apartheid government.
20 JUNE 2006 Page: 94 of 221
It is important to say these things today because, conveniently,
those who then were opposition parties were not heard opposing these
policies. Yet, today, they are clearly heard opposing the policies
of the democratic government and conveniently raising these issues
as if they are this government’s making. We did not hear or see them
opposing apartheid policies, not because we are not capable of doing
so but because they did not oppose them.
Those who opposed apartheid policies were heard and seen. For
instance, women who 50 years ago matched to the Union Buildings in
Pretoria were heard and they were seen. They were women of all races
and from different social backgrounds who made a stand for human
rights. In the petition to Prime Minister Strijdom, those women
declared, “We shall not rest until we have won for our children
their fundamental rights of freedom, justice and security.” And we
heard them.
Indeed, they did not rest. It is on the shoulders of these great and
gallant women of our struggle that we stand. As we confront new
challenges in the struggle for both the emancipation of women and
the economic recovery of our country and continent, we draw
inspiration from them.
The economy of our country has been consistently growing for the
past seven and half years. It is true that sustained economic growth
hinges on the development of skills in South Africa and even on
20 JUNE 2006 Page: 95 of 221
sourcing them abroad. But it is also true that many people,
particularly women and the youth, have not benefited that much from
our growing economy.
When it comes to a lack of skills and capacity, and to poverty,
unemployment and a lack of basic services, women and the youth are
the hard-hit groups. Whilst it is true that generally, in terms of
total enrolment, gender equity has been achieved in the higher
education system in that the proportion of female students has risen
from 43% in 1993 to 52% in 1999, gender equity continues to remain a
problem, particularly in the former technikons where female
enrolment increased from 32% in 1992 to 42% in 1993.
Furthermore, the spread of women students across different programme
areas is still uneven. Female students are clustered in the
humanities but are underrepresented in the sciences, engineering and
technology, and in business and commerce postgraduate programmes.
This probably is the result of less emphasis on gender equity than
on race equity by institutions of higher learning, and it has to be
corrected. In this regard, the National Plan for Higher Education
set out to transform higher education to ensure that universities,
technikons and colleges produce workers who are adequately skilled
to make a difference to the South African economy.
It is further encouraging to note that the government has not only
assessed the challenges but has actually correctly diagnosed them as
20 JUNE 2006 Page: 96 of 221
shortages of skills. Our government has further prescribed treatment
in the name of Asgisa and even Jipsa. The intended effects of Asgisa
as treatment include helping women to play a bigger role in the
economy by helping them to get training and skills; making it easier
for them to get loans to start businesses; helping them to take part
in farming projects and projects such as the production of arts and
crafts; giving them better access to basic services, and getting
more women into the Expanded Public Works Programme.
The Joint Initiative for Priority Skills Acquisition – Jipsa - aims
to identify the urgent skills needed and to effect quick yet
effective solutions. At the launch of Jipsa, the Deputy President
Mrs Mlambo-Ngcuka said: “The most fatal constraint to shared growth
is skills, and it should be noted that skills are not just one of
the constraints facing Asgisa but a potentially fatal constraint.”
Such a statement indicates the seriousness with which the
government, particularly the Office of the Deputy President, views
the issue of the skills shortage. But, in sharp contrast, in 1945 a
Mr J N Le Roux said: “We should not give the native any academic
education. If we do, who is going to do the normal labour in the
community?” This is how they think even today. They dropped the ball
and they are complaining about the way it is bouncing.
Jipsa and Asgisa are not just talk-show programmes. Through the
programme of Jipsa, the Department of Public Works and the
20 JUNE 2006 Page: 97 of 221
Presidency have co-ordinated a programme with regard to the United
Arab Emirates to secure sustainable placement of women in
infrastructure projects. Also, in the hospitality and finance
sectors, offers have been secured for the placement of women - 100
women and unemployed graduates are targeted. These women are poor
and are from poor communities. By the way, Asgisa also aims to
initiate interventions to address deep-seated inequalities and
target the marginalised poor. Another 120 women and youth are being
placed with the Bombela Consortium to be part of the Gautrain
project.
Jipsa also recognises the need for private-sector involvement. In
this regard, the Old Mutual Business School is but one private-
sector body that has joined, basing its project management
curriculum on the Jipsa development programme. The Development Bank
of Southern Africa and Old Mutual also launched the Hluma
Development Local Investment Agency, a multimillion-rand initiative
aimed at facilitating investment projects in marginalised areas of
South Africa. Such initiatives show us the importance of unity as a
nation in pursuit of the goal of a better for all.
In conclusion, as we approach our work as MPs, I believe we need to
pay particular attention to these and other transformation elements
embedded in Asgisa. The ANC is the architect of establishing the
framework for social change. Let us continue to lead this country.
Those who are hysterical need to be watchful if they neglect
20 JUNE 2006 Page: 98 of 221
treatment. Rest assured, one day they will see the light and join
us.
But if they do not join us, they will continue to be reborn purists
who failed to effect change at many points in their privileged lives
in the apartheid South Africa. They failed the people and supported
immoral policies. The ANC led the people to freedom. As women in
South Africa we are encouraged by opportunities suggested by Asgisa
and Jipsa. We believe as women that indeed we must be at the centre
of economic activities. I thank you. [Applause.]
Ms S RAJBALLY: Chairperson, the core drive of Asgisa is to halve
unemployment and poverty by 2014, followed by achieving a 6%
economic growth rate between 2010 and 2014. However, according to
the South African Employment Report released in April, we need to
create 60 000 jobs a month to achieve that. What heightens this
concern is that, according to economists, we are currently only
delivering 30 000 new employees a month.
The MF does, however, support the view that addressing our skills
shortage through local skills development and foreign skills
recruitment is essential to promoting South African economic growth.
We do, however, express our concern regarding xenophobia and the
safety of foreign recruits. We request that avenues be exhausted to
find local skills first to address shortages, and in this regard
20 JUNE 2006 Page: 99 of 221
skills that are considered to be in short supply need to be clearly
identified. These fields needs to be highlighted at tertiary
institutions as potential future careers. Further, we need to
question why these shortages exist and prevent the loopholes from
draining our scarce skills supply.
The MF agrees that we need to undergo a skills revolution to meet
Asgisa’s goals that will liberate South Africa from the shackles of
poverty. Thank you, Chairperson.
Ms L L MABE: Chairperson, I would also like to join those who say
that South Africa needs a skills revolution, a revolution that is
going to ensure that those who were disadvantaged in the past will
have a better life in future. Those who have been disadvantaged in
the past will therefore contribute towards economic growth in a
country and a democracy that we have fought for, a country where we
have ensured that we laid down all our efforts to ensure that our
children and those of us who are still living benefit from all the
achievements.
But I would also like to say: Thank you, Lowe. For the first time I
want to thank you.
An HON MEMBER: The hon Mr Lowe.
Ms L L MABE: It doesn’t matter.
20 JUNE 2006 Page: 100 of 221
The HOUSE CHAIRPERSON (Mr G Q M Doidge): No, hon member. Let us
address each other as “hon”. [Interjections.]
Ms L L MABE: Hon Lowe, thank you. I would like to say thank you
again for bringing this matter to the fore so that people who do not
understand why it is important for us to have affirmative action and
acquire skills and for those who did not have skills to be given
skills, will from now on understand this much better. I hope that in
what you have said, you will also educate your colleague the hon Van
Dyk, but I will come to him at a later stage during my speech.
We have a challenge as South Africa. We have a challenge as
government in that the economic growth we have been experiencing has
developed some employment but only to a certain extent. And it
should be borne in mind that unemployment was very high because
disadvantaged people, the black people, were not given the necessary
skills that are needed to grow the economy. This was not a mistake;
it was a deliberate intention of the past government to ensure that
the majority did not take part actively in the development of the
economy in this country. They were only destined to be in a
bottomless pit with regard to development in this country.
I also wish I could have been there when some of the people were
favoured by the past polices to ensure that they acquired the skills
that they needed when some of us could not have that advantage.
20 JUNE 2006 Page: 101 of 221
I would also like to indicate that the economic growth we have
experienced has, to a limited extent, impacted positively on poor
households. This is because members of these poor households do not
have the necessary skills to enter the economy and participate
actively. It is not because they do not have the will to
participate, but because they do not have the necessary skills.
I would like to say that we want to thank those business partners
that have joined hands with government to ensure that we capacitate
those people that have the will to take part and also to acquire
those skills.
I would also like to say with regard to the public infrastructure
development that government is prepared to roll out and the private-
sector investment programmes, that there is no way that these can be
successful without giving the necessary skills to the majority of
our citizens. Those black people who did not have access to the
necessary skills must get skills in the engineering field to become
artisans, and that they must have on-the-job training. Once they
have gone through further education and training, they must have on-
the-job training to ensure that they gain the necessary experience.
I would also not support those who say that the private sector must
go only for those who have the necessary experience. Where will
somebody get experience if the person does not have on-the-job
training? This is because that is where you get the skills; that’s
20 JUNE 2006 Page: 102 of 221
where you get the experience. Therefore, I want to challenge the
private sector - those of you who have not bought into the idea of
taking on the unemployed graduates – to employ the unemployed
graduates, give them the necessary skills and you will see wonders
in that they will develop within a short space of time.
I would also like to indicate that the Dinaledi programme is a good
one, but it is important that the teachers, those educators, be
trained. Those educators, at the same time, must be willing to be
trained, because you can try to train somebody but that person will
be untrainable if he or she has not changed his or her mind-set.
So it is important that those teachers who are taken for training
must change their mind-set. They must realise that they play a
crucial role in ensuring that we acquire the necessary skills that
we need as a country.
At the same time it is important that those who were advantaged in
the past, those who have skills acquired because of the preferential
treatment of past policies, must ensure that they also change their
attitude. They must ensure that, during mentoring programmes, they
do not do it for the sake of doing it. They must do it with real
commitment, because there is no use doing it just to please
government and to claim or even to charge government as much as they
want to without transferring the necessary skills.
20 JUNE 2006 Page: 103 of 221
We are quite aware that in most of the programmes, or in most of the
projects that government gives to consultants, these people do not
transfer the skills. It is a fact. There are those who do it with
passion, but there are those who want to frustrate the efforts of
government to ensure that people get on-the-job training and
mentoring to acquire the necessary skills. This may be done to
ensure that the same people have the same benefits continually.
I would also like to say that, with urgently needed skills, we fully
agree that those retired, skilled personnel need to be taken on
board. When they are taken on board, as I indicated earlier, they
must be willing to share the experience they have. They must be
willing to share the skills they have, rather than do it for the
sake of doing it and coming back after a few months or going to
another project, feeling that they are indispensable. That should
not be allowed. Nobody is indispensable.
It is important that those people who are retired and who will be
brought to bear must ensure that they share those skills. They must
also remember that they are South Africans. As South Africans, this
is for the development of our country and our economy, from which
their children and grandchildren will benefit.
It is no use saying that the whites who have skills need to continue
to dominate the economy. It does not help, because they are in the
minority. For our economy to grow, it needs the participation of the
20 JUNE 2006 Page: 104 of 221
majority. I would also like to thank the private sector, for
instance KPMG and the DBSA, for what they are doing to assist us in
terms of acquiring the necessary skills we need as a country.
I cannot continue with my speech if I do not indicate that without
the training of women, without the training of the youth who are in
the majority, who have energy ... You know, when you educate a
woman, you educate a nation. If you don’t educate women, if you
don’t give them the necessary skills, who will put food on the table
for the family? This is because most households are led by women.
Most households depend on women. We can go anywhere, but the fact of
the matter is that our economy is dependent on the youth and on the
women. So let us give these two groups the necessary support and
training.
I would also like to say that unemployed graduates need to take it
upon themselves to take training offered to them seriously. I know
that in some areas when these people are trained, they do not have
the passion to go through that training. It is just a waste. We
understand fully that it might be because they have been unemployed
for quite a long time. But I say, never despair. Never despair,
regardless of how long you have been unemployed. Undergo that
training, benefit from of it and then you will contribute towards
economic growth.
20 JUNE 2006 Page: 105 of 221
I would also like to say that all these things that are frustrating
government efforts to ensure that those who were disadvantaged have
access to the economy are the baggage of the past. Given the type of
education that we have received, the type of education which my
colleagues on the left supported with passion, I expect that right
now they should support the efforts that government is undertaking
with passion, because they are the ones who contributed to the mess
that we find ourselves in as a country.
I would also like to respond to the hon Mfundisi. Hon Mfundisi,
remember when you said that appointments were made on the basis of
political correctness? Don’t forget that during the Mangope regime,
that is what you were excelling in. Don’t forget that. For your
information, government appoints people on merit and qualifications,
not the way you did, as brothers and sisters and as a family.
Hon Van Dyk: representivity is important. There is no way that the
economy can continue being dominated by whites. We are in the
majority, and we must be represented in the economy as the majority.
I would also like to remind you that when you say that there is poor
financial management, yes, you are correct. There is poor financial
management in the departments. Where does it emanate from? It
emanates from the policies that you supported in the past. The
government of the ANC is working hard to ensure that it addresses
those problems that it inherited from you people.
20 JUNE 2006 Page: 106 of 221
I’d like to also say that financial management is a challenge for
government and a challenge for Parliament. That is why we have a
problem with underspending. That is why we have a problem with
overexpenditure. But government must still be committed to ensuring
that we develop those skills. Those artisans you referred to as
being around 54 years old ...
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Hon member, your time has
expired.
Ms L L MABE: I thought that I had 20 seconds left.
The HOUSE CHAIRPERSON (Mr G Q M Doidge): You are on minus 21
seconds.
Ms L L MABE: Thank you. [Applause.]
The HOUSE CHAIRPERSON (Mr G Q M Doidge): Good try, hon member.
Mr C M LOWE: Thank you very much, Chairperson. I’d like to thank
everybody for participating and for the contributions that they have
made in the debate this afternoon.
Perhaps in future debates - and I hope that they will be on this
very important topic - we could have the Deputy President and the
Ministers of Labour and Education present. I know they are all very
20 JUNE 2006 Page: 107 of 221
busy people, but I think this sort of issue needs their input and
certainly their attention.
I’d also just very briefly like to respond to the hon Chikunga to
say while it is important, Ma’am, that we honour the past, we can’t
continue to live in it. I’m even young enough to have been born
after Verwoerd and Strijdom had died. The democratic Ministry of
Education has been around for 12 years. I think we have to
realistically look up and face the problems in the Education
department and deal with them and stop blaming the past.
A skills revolution, by its very definition, therefore has to
include a change in the way we currently racialise our skilled jobs,
but also has to include a serious and focused national debate on
what is worth learning in schools and how schools should be teaching
these subjects which are meaningful, so that pupils leave school
with the ability to read well, to analyse what they have read, to
write effectively and to speak from a logical perception. Hopefully,
that national debate has started here today and the DA intends to
contribute fully to it. We all have to win in this debate.
Four things that government can do immediately to address the skills
crisis are to identify priority-scarce skills and exempt them from
the employment equity requirements, as I have mentioned. Secondly,
we need to set up a development fund to address the shortage in
qualified teachers and graduates schooled in mathematical and
20 JUNE 2006 Page: 108 of 221
natural sciences. Thirdly, I have talked about scrapping the
wasteful and ineffective Seta bureaucracies and making regulated
demand-based skills development in education attractive to employers
through tax incentives. Fourthly, we need to simplify the process
and reduce the timeframes for work permit applications and approvals
for skilled foreigners wanting to work in South Africa.
By the Deputy President’s own reasoning, unless the skills
bottleneck is unblocked, the battle against poverty and unemployment
cannot be won. The DA is ready to stand shoulder to shoulder with
government in tackling our skills crisis and facing down
unemployment and poverty, but it will mean facing up to unpopular
truths, making hard choices and introducing radical solutions, but
it can and must be done. We cannot fail. Thank you. [Time expired.]
[Applause.]
Debate concluded.
CONSIDERATION OF FIRST REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS – INGONYAMA TRUST BOARD
CONSIDERATION OF THIRD REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS – DEPARTMENT OF HOME AFFAIRS
CONSIDERATION OF FOURTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - STATE INFORMATION TECHNOLOGY AGENCY (PTY) LTD (SITA)
20 JUNE 2006 Page: 109 of 221
CONSIDERATION OF FIFTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - TRADE AND INVESTMENT SOUTH AFRICA
CONSIDERATION OF SIXTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - SOUTH AFRICAN NATIONAL ACCREDITATION SYSTEM (SANAS)
CONSIDERATION OF SEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - SOUTH AFRICAN BROADCASTING CORPORATION
CONSIDERATION OF EIGHTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - ONDERSTEPOORT BIOLOGICAL PRODUCTS LTD
CONSIDERATION OF NINTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA
LIMITED
CONSIDERATION OF TENTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - GODISA TRUST
CONSIDERATION OF ELEVENTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - FINANCIAL SERVICES BOARD
CONSIDERATION OF TWELFTH REPORT OF STANDING COMMITTEE ON PUBLIC
ACCOUNTS - DEVELOPMENT BANK OF SOUTHERN AFRICA
20 JUNE 2006 Page: 110 of 221
CONSIDERATION OF THIRTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - AIRPORTS COMPANY SOUTH AFRICA LTD (ACSA)
CONSIDERATION OF FOURTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - ACCOUNTING STANDARDS BOARD (ASB)
CONSIDERATION OF FIFTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - NATIONAL AGRICULTURAL MARKETING COUNCIL
CONSIDERATION OF SIXTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - GREATER ST LUCIA WETLAND PARK
CONSIDERATION OF SEVENTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE
(SANB)
CONSIDERATION OF EIGHTEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - EXPORT CREDIT INSURANCE CORPORATION OF SOUTH
AFRICA LIMITED (ECIC)
CONSIDERATION OF NINETEENTH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - COMPETITION TRIBUNAL
CONSIDERATION OF TWENTIETH REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - SOUTH AFRICAN NATIONAL PARKS
20 JUNE 2006 Page: 111 of 221
CONSIDERATION OF TWENTY-FIRST REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - SOUTH AFRICAN BUREAU OF STANDARDS (SABS)
CONSIDERATION OF TWENTY-SECOND REPORT OF STANDING COMMITTEE ON
PUBLIC ACCOUNTS - SOUTH AFRICAN TOURISM
Mr N T GODI: Chairperson, comrades and hon members, it is my
singular honour and pleasure to once more present before the House a
set of reports adopted and recommended by the Standing Committee on
Public Accounts. I must indicate that we have not departed from the
Scopa tradition of working by consensus and these 22 reports were
adopted unanimously.
I must also express my gratitude to my Scopa colleagues, the staff
and the Office of the Auditor-General for the amount of effort they
put into our huge workload. I only wish the House could appreciate
more and better the heavy responsibility it has placed on their
shoulders.
Be that as it may, let me point out that the reports we are asking
the House to adopt can be put into three categories. The first
category is the annual report of the committee. The report contains
a summary of the committee’s activities for the past year. It is
about its general oversight activities, including hearings that were
20 JUNE 2006 Page: 112 of 221
held - 16 in total; the training workshop organised by the
Association of Public Accounts Committees, Apac; and the Apac
conference held in the North West.
The committee also undertook a study tour to Mozambique and was
invited to the conference of the Australasian Council of Public
Accounts Committees. We are satisfied, as Scopa, that the report
correctly reflects on our activities for the year and that these
activities fell within the scope of our mandate.
The challenges for Scopa, however, remain the need to cover a
greater volume of work, to strengthen the qualitative aspect of its
work, to ensure follow-ups on recommendations and to have a high
impact. In order for all the above to be realised, there is an
urgent yearning for the capacitation of Scopa, viz we need more
staff and our committee members need support staff individually.
The second category consists of those entities and departments whose
financial management and administration have so far not lived up to
the expectations of the Public Finance Management Act and National
Treasury regulations. We are referring here to the first report on
the Ingonyama Trust Board, the third report on the Department of
Home Affairs, and the fourth report, which is on the State
Information Technology Agency. These entities and department have a
range of inadequacies identified in their financial reports that do
20 JUNE 2006 Page: 113 of 221
not assist the objectives of financial accountability, rules-based
administration and proper service delivery.
Beyond the observations that Scopa has made, which are actually an
indictment, we have also made specific and tough recommendations
which, when adopted by the House, will have to be responded to by
the said entities and department.
We are happy to stress to the House that National Treasury has made
it an obligation for departments or entities to include in their
annual financial reports a paragraph on Scopa resolutions, in which
a department explains what it has done to respond to the Scopa
resolutions. Therefore the resolutions we are taking here are not in
vain or for their own sake.
The third category is of reports from the fifth to the twenty-second
report. These are reports whose financial audits are clean and have
nothing substantive to be concerned or worried about. We wish to
congratulate these entities on adhering to the Public Finance
Management Act and National Treasury regulations in their financial
management and administration. We hope that future audits will be
equally unqualified. We also hope that others will emulate their
good example.
As we present these reports to the House, we also want to stress
Scopa’s commitment to its oversight mandate despite the massive
20 JUNE 2006 Page: 114 of 221
underresourcing of the committee. The laws that we pass in this
House must be implemented to the letter by all officials and the
House must express itself unequivocally in instances of
transgression.
The aspirations and rights of our people to quality service delivery
cannot be subverted by indifference and perversion of the laws that
we pass in this House. I thank you, Chairperson. [Applause.]
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move
that the reports be adopted.
Motion agreed to.
Reports accordingly adopted.
CONSIDERATION OF REPORT OF STANDING COMMITTEE ON PUBLIC ACCOUNTS -
ANNUAL REPORT (JANUARY TO DECEMBER 2005)
There was no debate.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move
that the report be adopted.
20 JUNE 2006 Page: 115 of 221
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - DEPARTMENTAL
EXPENDITURE FOR THE SECOND AND THIRD QUARTERS OF 2005-06 FINANCIAL
YEAR – JULY TO DECEMBER 2005
CONSIDERATION OF REPORT OF JOINT BUDGET COMMITTEE - ANNUAL REPORT OF
JOINT BUDGET COMMITTEE
Ms L L MABE: Hon Chairperson, hon members, I would like to present
the report of the Joint Budget Committee for the year, and the
second and third quarter reports of departments.
I would like to start by indicating that the Joint Budget Committee
was constituted by a resolution of 2003 and was only convened at the
end of 2004. It also became a long process to develop a strategic
plan over the third term of Parliament and this was completed only
at the end of 2005. To some people’s minds, the Joint Budget
Committee is still a young committee. That is true. But, being a
young committee, it is faced with serious challenges and it cannot
relax because that it is still young and wait to develop. It must
grow in leaps and bounds, regardless of its age.
20 JUNE 2006 Page: 116 of 221
Amongst the goals of the Joint Budget Committee is that there must
be a review of annual expenditure reports for effective and
efficient spending by departments. These are very important
objectives in the work of the Joint Budget Committee. Also, the
committee must provide meaningful recommendations aimed at improving
government spending by engaging the executive effectively in a
dialogue in terms of expenditure in various departments.
The basic principle is that Parliament’s role in the budget should
not disrupt the integrity of the budget or the integrity of the
expenditure system. But Parliament must play an oversight role – the
departments must be accountable to Parliament for the fact that
Parliament votes on the budgets that go to those departments.
As a result, this Parliament has taken it upon its shoulders to do
rigorous oversight this term in terms of service delivery, and a
priority for Parliament is that we must ensure that we have proper
and effective oversight over the departments. We must also monitor
their spending, and that is the responsibility of the Joint Budget
Committee. It will take on that task diligently and with passion.
I would also like to say that spending in departments is not as
expected. We have sufficient financial resources as government, but
spending is still lacking. For example, during the second quarter of
the 2005-06 financial year government departments fell behind in
current and capital spending. Capital spending was at 29,5% and
20 JUNE 2006 Page: 117 of 221
current spending was at 43,8%. The question is: why should this be
the case? Is it because we have a shortage of skills in those
fields? That is a question we need to answer as members.
But that does not mean that spending should not be done as expected.
We expect that spending should be done. At the same time it should
be done not for the sake of doing it, but to ensure that we deliver
the necessary service to the people.
Some departments are low spenders, and I do not want to delve much
into that. Let us take Agriculture, for example. Agriculture is
there to ensure that the poor in the rural areas get access to basic
stuff, which is food, and to ensure that the rural poor get access
to the economy. If Agriculture does not spend, then what? That
therefore says something wrong is being done to those people who are
poor, who are looking to government to ensure that their lives
become better on a daily basis. And the issue is, as members we need
to challenge the Departments of Land Affairs and Agriculture. Why
are they not spending, when that money is supposed to go to the
rural areas to develop people?
At the same time, there are some high spenders. But when we look at
the high spenders, we must also check the following: high spending
on what? Are they just spending because it is the end of the
financial year, or is it because it is the third quarter and that is
why they are spending? There should be consistent spending
20 JUNE 2006 Page: 118 of 221
throughout all four quarters of the year. If people have done their
homework, that would be the case, but if they haven’t during the
first and second quarters, as is reflected in our report, there will
be underspending. These matters will be elaborated on by my
colleague, the hon Dambuza.
I would also like to refer to the lowest spenders on transfer
payments – provincial and local government departments. When there
is low-level spending on transfer payments, that tells us that local
government is suffering as it does not get money. If local
government does not get money, who will ensure that services are
delivered to the people? Where will local government get money from
if the national departments are not transferring money or funds?
That is a challenge we need to follow up: why funds are not
transferred on time, rather than making local government a dumping
ground of money allocated to various departments.
The Department of Arts and Culture is a low-level spender on
transfer payments. The monies that must go to agencies that promote
culture and art do not get there on time. That is why they spend in
such a low-level way. As the Portfolio Committee on Arts and
Culture, we need to challenge them. Why are they not transferring
those funds to various institutions?
With regard to capital spending, one of the lowest spenders was
Minerals and Energy at 5%. I don’t want to elaborate on that one.
20 JUNE 2006 Page: 119 of 221
I’d like to move to the third quarter. With regard to the third
quarter, spending on capital funding was, as usual and as in
previous years, very low. We say that we want to roll out
infrastructure. If spending on capital is not sufficient, how are we
going to roll out infrastructure? We need to make departments
account for why they are not spending on infrastructure.
At the same time, I have indicated that Land Affairs is one of the
lowest spenders. Land Affairs is responsible for ensuring that land
restitution becomes a success. If they do not spend, how will it be
a success? This is because we expect that 2014 there will be a great
margin - that the majority of blacks have access to land. So Land
Affairs must spend in terms of ensuring that land restitution
becomes a success.
One of the challenges we face as a committee is the absence of
dedicated members and dual membership of NCOP members in that they
are members of the select committee and the Joint Budget Committee.
When we have to convene our meetings it becomes a problem because
the same people have to attend meetings of two different committees.
Another challenge we face is the frequent restructuring of
committees: today it is this member, but after three or four months
it is another member. That member has been moved to another
committee, and after two or three months again there is a new
membership. That makes stability a problem in the committee.
20 JUNE 2006 Page: 120 of 221
The other thing is the absence of a dedicated researcher. I am happy
that at last Parliament has appointed a researcher for the Joint
Budget Committee. But we suffered when the researcher was deployed
to the Pan-African Parliament. We do want to thank Parliament for
appointing that researcher.
Also, there is the fact that we want to regularise our relationship
with Scopa and the portfolio committees and select committees so
that as the Joint Budget Committee we can inform various portfolio
committees in terms of spending in their departments long before the
Auditor-General comes with a report. This means that on a continual
basis portfolio committees will follow up on policy implementation
through budgeting, and it is our intention to have that interaction.
There must be that close working relationship between the Joint
Budget Committee, Scopa, the portfolio committees and the select
committees. I am just challenging them in that when we go to them
and request that we have joint meetings, they must be willing to
share information. Thank you very much, Chairperson. [Time expired.]
[Applause.]
Dr S M VAN DYK: Chairperson, the report of the Joint Budget
Committee on departmental expenditure makes for depressing reading.
The budget committee discovered that departmental expenditure is
decreasing gradually and that there is more underspending than there
was in previous financial years. Total underexpenditure increased
20 JUNE 2006 Page: 121 of 221
from R3,6 billion in the 2004-05 financial year to R5,4 billion in
the 2005-06 financial year.
The Auditor-General’s reports too are often disheartening. The
Auditor-General discovered that national departments were guilty of
R37,3 million in unauthorised and R46,3 million in fruitless,
wasteful and irregular expenditure in the 2004-05 financial year.
As far as departments are concerned, they have been faced with a
budgetary reform process since 1994. Two fundamental changes have
taken place in the budgetary process, namely the introduction of
zero-based budgeting and, secondly, the introduction of the MTEF.
Zero-based budgeting has forced departments to critically review
performance, and to motivate for allocations based on proven past
delivery. The MTEF has introduced stability in the budgetary process
and has enabled departments to plan with longer-term strategies in
mind.
But government has realised that it needs to build on these
achievements, and in order to realise the desired efficiency in
Public Service delivery they gave birth to the Public Finance
Management Act. The implementation of the first phase of the Act
focuses on the basics of financial management.
Maar, Speaker, die Ouditeur-generaal het nou bevind dat departemente
nog net tot ’n mindere mate aan die vereistes van die wet op
20 JUNE 2006 Page: 122 of 221
effektiewe finansiële bestuur voldoen. [But, Speaker, the Auditor-
General has now found that departments comply only to a lesser
extent with the requirements of the law that deals with effective
financial management.]
The second phase of the Public Finance Management Act focuses on
best practice financial management. In this regard, I refer to the
generally recognised accounting practice of converting from a cash
basis of accounting to the accrual basis.
Tans is een van die grootste probleme by staatsdepartemente juis die
kontantbasis van begroting waar sekere departemente nie die werklike
stand van uitgawes aan die Ouditeur-generaal voorhou nie. Baie
uitgawes word steeds aangegaan deur departemente wie se begrotings
uitgeput is, om welke rede ookal, voor die einde van die finansiële
jaar en dan word die skuld net eenvoudig oorgedra na die volgende
boekjaar wat met die nuwe begroting betaal word, asof die dienste
ook eers in die nuwe boekjaar gelewer sou wees. In die verlede het
die SAPD, byvoorbeeld, al tot R400 miljoen se ou skuld sodoende
ongesiens oorgerol na die volgende jaar toe.
Hierdie toedrag van sake beteken dat klein sakeondernemings wat
dienste lewer aan departemente nie betyds betaal word nie en sukkel
om hulle werkers se insetkostes te betaal, en gevolglik om te
oorleef. En dit werk direk in op die goeie bedoelings van Asgisa.
20 JUNE 2006 Page: 123 of 221
Met die “accrual basis” van rekenkundigheid sal die uitgawes reeds
as ’n las beskou word wanneer die diens gelewer is, al is die
rekening nog nie betaal nie en sal bogenoemde wanpraktyke in hierdie
verband voorkom word.
Dit word verwelkom dat die begrotingskomitee aangetoon het dat hy
die toedrag van sake by departemente onder die soeklig gaan plaas
ter beskerming van sakeondernemings en ter wille van
verantwoordelike departementele finansiële bestuur. Die DA steun
hierdie verslag. Dankie. (Translation of Afrikaans paragraphs
follows.)
[At present one of the biggest problems experience in at government
departments is indeed the cash basis of budgeting where certain
departments do not reflect the true state of expenditure to the
Auditor-General. Numerous expenses are still incurred by departments
who have exhausted their budgets, for whatever reason, before the
end of the financial year and then the debt is simply rolled over to
the following financial year to be paid from the new budget, as
though the services will also be rendered in the new financial year.
In the past the SAPS has, for example, rolled over up to R400
million’s old debt, unobserved, to the following year.
This state of affairs means that smaller enterprises that deliver
services to departments are not paid on time and they battle to pay
20 JUNE 2006 Page: 124 of 221
their employees’ input costs, and consequently to survive. And this
is directly contrary to the good intentions of Asgisa.
With the accrual basis of accounting the expenditure will already be
reflected as a liability when the service is rendered, even if the
account had not been paid and in this way the above malpractices
will be prevented.
It is to be welcomed that the budget committee has indicated that it
will place this state of affairs at departments in the spotlight to
protect business enterprises and in the pursuit of responsible
departmental financial management. The DA supports this report.
Thank you.]
Mr S N SWART: Chairperson, hon ... Well, there’s no Minister here.
The ACDP notes that the Joint Budget Committee has a wide-ranging
and complex mandate, which includes monitoring, on a regular basis,
monthly published actual revenue and expenditure per department.
We also note that the committee held meetings with every department,
including the financially challenged Home Affairs. The question then
arises as to how the committee missed the very serious financial
irregularities in this department, notwithstanding various warning
signals issued previously by the Auditor-General and various reports
of the Standing Committee on Public Accounts, Scopa. One can also
20 JUNE 2006 Page: 125 of 221
ask the question: Why didn’t the Joint Budget Committee recommend
Treasury intervention, as the Minister has now done?
We do, however, appreciate that the committee is in a developmental
phase and has to meet various challenges. It is an almost impossible
task to monitor the monthly expenditure of all government
departments, amongst the committee’s various other tasks. It is,
therefore, imperative that we, in our portfolio committees, should
also regularly monitor the monthly expenditure of our departments.
The ACDP will support this report. I thank you. [Time expired.]
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Swart, did you say that
there was no Minister in the House?
Mr S N SWART: No, this Minister.
The HOUSE CHAIRPERSON (Ms C-S Botha): That particular Minister?
Thank you.
Ms B N DAMBUZA: Chairperson, members of the executive, hon members
...
... okwam, ngale njikalanga, kukugxila nje kumba wenkcitho-mali
ngamasebe karhulumente kunye namaphondo kwisigaba sonyaka
ophelileyo. [... my duty this afternoon is to dwell upon the issue
of expenditure by government departments and provinces last year.]
20 JUNE 2006 Page: 126 of 221
In pursuit of its monitoring and oversight mandate, the Joint Budget
Committee is guided by a range of national policy and legislative
frameworks, including the Constitution, in terms of which budget
processes are required to promote transparency, accountability and
effective economic and efficient public-sector expenditure control;
the Public Finance Management Act, by means of section 32 reports -
monthly, quarterly and annually - and the terms of reference of the
committee itself, which put an emphasis on the committee to practise
its oversight over actual expenditure in the implementation phase.
In terms of National Treasury regulations, departments are required
to have spent 50% of their budget by the third quarter. However,
various observations have been made in this regard. National
expenditure performance indicates that by the end of the second
quarter of the past financial year departments had spent an average
of 47,5%, with the Department of Education being the highest spender
at 75,18%, followed by the Department of Social Development.
The Departments of Agriculture and Land Affairs have been identified
as the lowest spenders, followed by Statistics SA. By the end of the
third quarter, reports indicated that there was an increase in
overall expenditure to about 70,47%, with the Department of
Education being the highest at 91,9%. The Sport and Recreation
department was the lowest spender, with a record of 24,67%.
20 JUNE 2006 Page: 127 of 221
In terms of current expenditure, departments’ overall expenditure
was about 67,77% at the end of the third quarter, with the
Department of Arts and Culture being the highest spender at 106,52%,
and the Department of Sport and Recreation being the lowest spender
at 40,17%.
The overall average transfers were 72,49%, with the Department of
Correctional Services at 151,18% in the third quarter, and the
Public Service Commission being the lowest at 0,5%. Overall average
capital expenditure stands at 54,33%.
Departments with the highest overall capital expenditure included
Parliament, spending 210,37% by the third quarter, followed by the
Science and Technology department at 186,83%, Agriculture and Land
Affairs at 158%, Social Development at 142% and Public Service and
Administration at 133,47%.
The departments with the lowest overall capital expenditure at the
end of the third quarter were Defence at 0,00%, Arts and Culture at
1,72%, Sport and Recreation at 12,01%, Minerals and Energy at 16,33%
and Transport at 17,35%.
Generally, departments had spent a significant portion of their
budgets by the end of the third quarter. It is also important to
highlight that the Department of Communications significantly
improved its expenditure trends over the past financial year.
20 JUNE 2006 Page: 128 of 221
Abaninzi baya kukhumbula ukuba kunyaka ophelileyo eli sebe belibizwa
qho ukuba lize kuvela phambi kwekomiti. Yiyo loo nto siye sabona
ukuba masilincome xa libonakalisa inkqubela-phambili. (Translation
of isiXhosa paragraph follows.)
[Many will remember that last year this department was regularly
called to appear before the committee. That is the reason we have
considered it necessary to congratulate this department when it
shows improvement.]
In conclusion, in order to respond to a call by the hon President in
his state of the nation address, it is important to register that
the Budget plays a pivotal role in achieving broad government
objectives such as the eradication of poverty, and development.
Therefore, the committee has resolved to strengthen its monitoring
and oversight functions to ensure that departments’ expenditure
promotes and improves the livelihood of citizens, and stimulates
economic growth and development. The ANC supports the report. Thank
you. [Time expired.] [Applause.]
Mr R B BHOOLA: Chairperson, in view of the departmental expenditure
report of the second and third quarters of 2005-06, the MF is
pleased that the departments have spent a significant portion of
their budgets. With 47,50% having been spent by end of the second
quarter, indications show an intention to deliver.
20 JUNE 2006 Page: 129 of 221
We are pleased with the Department of Education, which spearheaded
spending in that quarter with 75,18% of its budget. Further, as the
third quarter concluded, overall spending was at 70,47%. We view
expenditure for 2005-06 as fairly consistent. The MF does, however,
express concern regarding underspending and roll-overs.
Concerning the annual report of the Joint Budget Committee, we are
pleased with it but we would like to stress the importance of
oversight visits that we hope will be embarked upon this year. The
MF supports the reports.
Mr S L DITHEBE: Deputy Chair, thank you very much for this
opportunity to address the House. In fact, in trying to do so I have
realised that I have left part of my speech behind. [Interjections.]
It is indeed a very short speech. I think I have left it behind.
I would like to say with regard to the report of the Joint Budget
Committee - despite the strident voices we hear every time from this
side, which strident voices say that by virtue of its majority the
ANC will always sing the praises of the executive and ignore those
very uncomfortable areas in so far as the oversight by Parliament of
the executive is concerned – that the support of this report by all
parties today is itself evidence to the effect that the ANC will not
shy away from exposing difficulties wherever they are found and does
not see any contradiction in playing that role and, in fact, giving
credit where it is due.
20 JUNE 2006 Page: 130 of 221
This is, in fact, what the ANC is doing today. That the chairperson
of the Joint Budget Committee can stand in front of this House and
talk about the most uncomfortable trends in expenditure in various
departments and, at the same time, where these departments have done
well, credit them, is in fact proof of what I have said earlier.
I must say that because June 16 was celebrated only a few days ago,
we must not forget that this month is still celebrated as Youth
Month. I would like to paraphrase Nicaraguan poet, revolutionary and
priest Carlos Castaneda, who said that we must always think of those
who died because we are where we are today because of their
sacrifices. In fact, our Constitution calls on us to honour those
who suffered and sacrificed in order for us to have the sweet
freedom and dignity we enjoy as a people today.
As we think of those who died, we must ask whether we are increasing
the availability of life-sustaining goods and services like health,
food, protection, shelter and other things. We must ask whether we
are raising the standard of living generally for everybody. I have
no doubt that many of us will answer in the affirmative, but I would
like to add that many challenges still abound. These challenges
include the Department of Education, which has been spending its
resources well recently, but is nonetheless confronted with vexing
situations of the kind contained in the report of the SA Human
Rights Commission, despite all the good intentions to utilise these
resources economically, efficiently and effectively.
20 JUNE 2006 Page: 131 of 221
The Departments of Sport and Recreation, Land Affairs and
Agriculture are some of the culprits who must be strongly cajoled
into spending their allocated budgets, as has been mentioned by the
chairperson and other speakers. The lessons we draw from this
experience is that Parliament is endowed with immense powers to
scrutinise and oversee executive action.
The National Treasury has asked Parliament to debate the research
paper that I have here and that is called “Guideline for Legislative
Oversight Through Annual Reports”. Perhaps we might realise that we
do not as yet need powers to amend the budget. I know that there
might be very strong arguments in support of that, but I think
proposals and information that we are familiar with already that are
contained in here will make us realise that we not exercising those
powers as well as we should.
We shall continue to deepen our oversight work as the Joint Budget
Committee and work synergistically and nonantagonistically with
sector portfolio structures in this institution.
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon member, your time has
expired.
Mr S L DITHEBE: In this age of hope, as we work and yearn for the
soul of the new nation, we shall always think of those who died,
even from these hallowed Chambers. I thank you. [Applause.]
20 JUNE 2006 Page: 132 of 221
Debate concluded.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chair, we move that the
Reports be adopted.
Motion agreed to.
Reports accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL
SERVICES - VISIT TO PRISONS IN NORTHERN CAPE
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON CORRECTIONAL
SERVICES - VISIT TO DURBAN-WESTVILLE CORRECTIONAL CENTRE IN KWAZULU-
NATAL
Mr D V BLOEM: Chairperson, Minister, Members of Parliament, the
phrase “overcrowding in Correctional Services” has become almost
part and parcel of the uniform of this department.
There is a view out there that one of the main causes of
overcrowding is the minimum sentence. Some people are arguing that
we must do away with the legislation in this regard. I don’t think
so. It is not true that this minimum sentence causes overcrowding.
20 JUNE 2006 Page: 133 of 221
Let’s go to the heart of overcrowding. The problem is awaiting-trial
inmates. Let me argue further. Why do we have people sitting in
prison awaiting trial for as long as seven years before they can
appear before a magistrate or a judge? A recent example is a young
lady who has been sitting in Pollsmoor prison. She has been sitting
there for three years waiting to appear in court. She was 17 years
old when she was arrested, and she is now 20 years old. That is the
problem with regard to overcrowding, not the minimum sentence.
We are sitting with 50 000 awaiting-trial prisoners in our prisons.
When we visited Durban-Westville prison in KwaZulu-Natal we found
that, there alone, we had 5 000 prisoners awaiting trial.
The report on our visit to the Northern Cape is a bit different from
other reports. In the conclusion of the report we say that we are
very impressed with the good communication channels between all the
role-players in the criminal justice cluster in this province. This
is the only way to address the problem of overcrowding in our
prisons. In all five towns, from Kimberley to Upington, everybody is
working together and looking for solutions to this problem:
magistrates, police, prosecutors, legal aid boards and NGOs - all of
them are involved.
We know that there will always be challenges, and I want to mention
some of these. They are danger allowance, recruitment of new
20 JUNE 2006 Page: 134 of 221
members, the morale of staff, lack of females in management
positions, and the high number of people filling acting positions.
Let me deal with one of these challenges, and that is recruitment.
In Kimberley and Upington we held izimbizo. People, especially the
youth, complained about the process of applying for employment in
the department. They said that some of them filled in forms every
time vacancies were advertised, but that they were not short-listed.
They claim that some people apply only once and are successful. They
want to know what criteria are being used to select these people. We
must give urgent attention to this concern, because people are
raising this problem all over and not only in these two towns.
The committee visited Durban-Westville prison and found that the
biggest problem there was overcrowding, as I said earlier on.
Overcrowding ranges from 131% in the youth centre to 228% in Medium
B alone. A very serious challenge in this prison is the high number
of HIV/Aids cases. Aids is prevalent amongst the majority of
inmates.
Regarding the inmate tracking system that was installed earlier last
year, it is of great concern to the committee that the equipment got
lost. That equipment consisted of 8 292 tags worth R7 million. The
problem has not been addressed as this loss was reported in February
last year. The total cost of this contract amounts to R28 million.
20 JUNE 2006 Page: 135 of 221
Under very difficult circumstances the staff of the department are
doing their best and are always willing to give their best. I want
to tell members of this House that we have very loyal, dedicated and
honest members in this department. There are only a handful of
corrupt and rotten apples.
On behalf of the committee, I want to thank Commissioner Mti, the
regional commissioner of the Northern Cape Mr Modise, and the area
commissioner of KwaZulu-Natal Mr Manana, for the good work that they
are doing in this area. It is an honour for me to present these two
reports to the House.
Let me deal with an issue regarding the privileges of inmates. I
have said many a time that we must really look at the privileges. We
can’t have murderers, criminals and rapists enjoying the very same
privileges as all other inmates in prison. We must take them and say
to them, as the Minister said last week when two criminals were
arrested that had escaped from Middledrift prison, that they are
going to spend the rest of their lives in Kokstad. I fully support
you, Minister. We must show these people that we are sick and tired
of escapes and of threats to our law-abiding citizens.
Minister, in some of these prisons these inmates think that they are
free. They want to control members, law-abiding citizens who have
done nothing wrong. They are there to dictate. Even if a member is
responding, they are going to be charged. I think we must really
20 JUNE 2006 Page: 136 of 221
address that. Many of the members complain and say that these
inmates now have “better privileges than us”. Minister, we must
address these things.
These people have committed serious crimes outside. When they land
up in prison, they think that they will, all of a sudden, know the
Constitution and their rights in prison, because they are sitting
there with a Constitution. They say, “this and that are my rights”.
That is nonsense.
We must think first. We are not going to interfere with their
constitutional rights, but we must take away some of their
privileges. They can’t sit and watch television and have a nice time
in prison. It must be taken away. They must feel that they have done
something wrong. [Interjections.] You are next. We are going to put
you in jail and you are not going to talk like this. You are going
to be very ... [Inaudible.] ... in prison. We are going to deal with
you. [Interjections.]
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, your time has
expired, on that note.
Mr M J ELLIS: Madam Chair ...
Mr D V BLOEM: No. There are still 20 seconds. I can see the clock,
Chairperson. Let me deal with Mr Ellis.
20 JUNE 2006 Page: 137 of 221
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Bloem, I am in the Chair
here and you will speak through me. If I have decided that your time
has expired, it has expired.
Mr D V BLOEM: I thank you very much, Chairperson. [Applause.]
Mr M J ELLIS: Madam Chair, does that mean that my point of order
falls away?
The HOUSE CHAIRPERSON (Ms C-S Botha): It does. Thank you.
Mr M J ELLIS: I am sure I stood up before he actually had finished.
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Deputy Chief Whip, please
say that again.
Mr M J ELLIS: I said that I’m sure I stood to give a point of order
before he had finished.
The HOUSE CHAIRPERSON (Ms C-S Botha): You certainly did. But I
hastened the end of his speech. So it was my decision to stop the
speech, and you spoke after I had told him to stop.
Mr M J ELLIS: Well, I think you did us a favour by ending his
speech, Madam Chair. So I will sit down. [Laughter.]
20 JUNE 2006 Page: 138 of 221
Mr W P DOMAN: Hon Chairperson, Minister, members, on behalf of my
bench-mate the hon James Selfe, I want to apologise that the DA was
unfortunately unable to attend the oversight visit to the Northern
Cape, but participated in the three-day visit to the Durban-
Westville Correctional Centre.
Durban-Westville is a vast complex, consisting of five prisons,
accommodating about 12 500 inmates, which is roughly double its
capacity.
The overcrowding leads to a number of problems. The staff are
overworked and stressed, the environment in which they work is very
dangerous, caseloads are impossibly large, and the lack of physical
space and the shortage of professional staff inhibit opportunities
for rehabilitation.
There are other problems too. The lack of promotion opportunities
and the absence of subsidised housing lead to staff demotivation.
But other problems pale into insignificance measured against the
reality of overcrowding.
As usual, overcrowding is everyone’s problem and therefore also no
one’s problem. The committee heard that the diversion programmes
were problematic, owing to the absence of information about previous
convictions, while the magistrates reported that they had never
received applications in terms of section 287(4) of the Criminal
20 JUNE 2006 Page: 139 of 221
Procedure Act to convert sentences into those of correctional
supervision.
It is very frustrating when Parliament establishes mechanisms to
release inmates in a controlled and responsible way, but these
mechanisms are ignored or rendered useless.
More worrying still was the situation around the inmate tracking
system. This is an excellent system – in theory. Each inmate wears
an electronic tag, which allows the staff to determine who is in the
facility without having to do a roll call, and whether the right
inmate is in the right part of the facility at the right time. This,
of course, depends on the system working.
When the committee visited Medium A in which the system has been
installed, the system was not working terribly well. It was unable
to show tell members of the committee who was in a particular
section. Moreover, and I must repeat what the hon Bloem said, a
total of 8 292 tags valued at some R7 million were lost during the
implementation period of this project.
Despite having commenced in November 2004, the system has not been
fully implemented. It seems as if some staff members have actively
resisted or even sabotaged the implementation. If true, this is a
scandalous situation that the public accounts committee should
investigate thoroughly.
20 JUNE 2006 Page: 140 of 221
The most tragic aspect of the visit was listening to nurses describe
the challenges they face in dealing with the large number of Aids-
infected inmates. Huge problems are encountered in rolling out ARVs
in the prison environment, while many people who ought to be
released on medical discharges cannot be released because their
families will not accept them or because the judges are unwilling to
grant the applications.
The committee, however, should be congratulated on the active way in
which it tackles its oversight responsibilities. The DA supports the
report and the recommendations.
Maar aangesien die besoek al verlede jaar plaasgevind het, is ons
teleurgesteld dat die aanbevelings nie intussen ten volle ingestel
is nie. Die departement sal hieraan moet aandag gee. [Tyd
verstreke.] [Applous.] (Translation of Afrikaans paragraph follows.)
[But considering that the visit already took place last year, we are
disappointed that the recommendations have not yet been fully
implemented. The department will have to attend to this. [Time
expired.] [Applause.]]
Mrs S A SEATON: Madam Chair, hon members, the IFP supports the
report of the portfolio committee on its oversight visits to prisons
in the Northern Cape in October 2005 and to the Durban-Westville
Correctional Centre in KwaZulu-Natal in March 2006. We fully align
20 JUNE 2006 Page: 141 of 221
ourselves with the concerns expressed in these reports and support
the recommendations as well.
I share the concerns of Mr Bloem with regard to the overcrowding,
but I unfortunately do not have the time to go into it. But,
certainly, our staff have tremendously trying conditions to work
under, and I think we need to just say to them that we do support
them and we do understand.
I was also unfortunately unable to attend the Northern Cape visit
but did attend the Durban-Westville one. As far as the Durban-
Westville Correctional Centre is concerned, the IFP shares the
frustration of the committee particularly with regard to the
implementation of the inmate tracking system and the centre where it
is merely used for identification purposes - that’s all that it’s
being used for. It is hugely problematic that lost equipment, as
we’ve heard, amounted to some R7 million, and that the matter had
not been addressed for a long time after it had been reported.
The biggest shock, however, was that we were informed that the
inmate tracking system was functional, but this was not the case, as
we’ve already heard from Mr Doman, when the committee visited the
database room at the centre. The IFP therefore wholly supports the
committee’s insistence that the department must please come back and
report to us within three months after today’s adoption of the
report.
20 JUNE 2006 Page: 142 of 221
In conclusion, I wish to raise a concern that the committee’s report
on the visit to the Northern Cape, which took place in October last
year, is only now being considered by this House. This is far too
long and we need to ensure that our reports are dealt with
timeously. The IFP does support the reports and the recommendations.
I thank you.
Mr S N SWART: Deputy Chair, the ACDP shares the concerns regarding
the high numbers of awaiting-trial prisoners who do not pose a
danger to society, but who cannot afford the relatively low bail
amount, in question, which may be as little as R100. Overcrowding
remains a problem, as has been pointed out, and is the root cause of
health problems and the spread of diseases such as tuberculosis and
HIV/Aids.
The ACDP also raised our concerns regarding the capacity problems
experienced by community corrections. We note that complaints were
raised by officials in the Northern Cape about a lack of staff and
vehicles which, according to officials, hampers their ability to
monitor parolees and probationers effectively.
However, hon Minister, there is good news. We particularly welcome
the restorative justice activities at various prisons, which create
or build a better relationship between the offender and the
aggrieved party. A highlight, mentioned in one report, was the
handing over of a house that was built by inmates to a victim of
20 JUNE 2006 Page: 143 of 221
crime. To the department we say well done in that regard. The ACDP
will support these reports. I thank you.
Ms S RAJBALLY: Chairperson, Minister, in view of the portfolio
committee’s report regarding their visit to prisons in the Northern
Cape, the MF seeks that the Northern Cape and Free State be
separated as correctional service regions and that each be given a
suitable budget to address the sector’s needs. The overcrowding of
prisons, minimal resources, staff constraints and minimal funding
appear to be the key problems in these prisons.
We are pleased to note that there is good communication between all
components of the criminal justice cluster in this region. We call
for the challenge to be addressed through better funding. Further,
we call on the SA Police Service in these regions to clamp down on
offenders in terms of gangsterism, rape and murder.
As for the correctional facility in Durban-Westville, similar
constraints of serious overcrowding, minimal resources and staff
shortages are noted. These need to be addressed earnestly if we are
to deliver South Africa from its scary crime infestation. We would
appreciate some input on this facility’s expenditure traits to
analyse how to address its shortfalls. The MF supports the report.
Thank you. [Time expired.]
20 JUNE 2006 Page: 144 of 221
Mr L M GREEN: Chairperson, the FD commends the chairperson as well
as all the members of the Correctional Services committee who
undertook the trips to both the Northern Cape and KwaZulu-Natal,
visiting several prisons in these provinces. The detailed reports
are evidence of much hard work done. Well done!
The FD is particularly encouraged by the restorative justice
activities at the Kuruman Correctional Centre, especially the good
example set by the inmates of this centre in building a house for a
victim of crime in this area.
We would like to encourage the Minister and the Department of
Correctional Services to continue to explore creative ways to
increase restorative justice activities.
The FD supports all the recommendations in this report, especially
the one that says that no person shall be kept in prison longer than
the time allocated in his or her sentence. It is criminal to keep
people in prison if they have served their time, especially if we
note that the report says that the Northern Cape prisons have 173%
occupancy. The FD supports this report. I thank you.
Mr E T XOLO: Deputy Chairperson, the visit to the prisons in Durban-
Westville and the Northern Cape was informed by the need to have an
insight of prison situations as part of the committee’s ongoing
20 JUNE 2006 Page: 145 of 221
oversight. As revealed in the reports, there are challenges and
achievements in the sphere of imprisonment.
It is proper to say that in line with ANC policies the Department of
Correctional Services is committed to rehabilitation programmes. The
reports show that various programmes rendered are informed by the
diverse needs of different offenders. Some of the cases in both
prisons are dealt with through restorative justice in terms of which
the victim and the offenders are allowed to resolve disputes through
negotiations facilitated by a professional officer. These approaches
should be informed by the need to reduce the backlog and take into
account the nature of crimes and the ages of the offenders in order
to reduce overcrowding.
Ngakolunye uhlangothi, imibiko yalo Mnyango isisibonise isidingo
esikhulu sokubambisana nomphakathi ekuhleleni ukuthi kube khona
izinhlelo ezenziwayo, ikakhulu uma kukhona abazokhululwa ejele,
ukuze kungabe kusenzeka ukuthi bazithole sebebuyela ejele futhi.
Lezi zinhlelo zenzelwa ukuthi bemukeleke kahle emphakathini.
Olunye uhlangothi lugxile ekuthini lokho isiboshwa esikufunde
sisesejele, okunjengomsebemzi wezandla nemfundo yolwazi, sikwazi
ukuphila ngakho; nokuthi abamabhizinisi bakwazi ukuqasha labo
abakade beboshiwe, noma bazakhele owabo umsebenzi bangabheki ukuba
wokhamisa ngithele. Ngokwenza kanjalo labo bantu baba ngamalunga
20 JUNE 2006 Page: 146 of 221
omphakathi ophilayo nowethembekile. (Translation of isiZulu
paragraphs follows.)
[On the other hand, the reports of this department show that there
is a huge need to collaborate with the public in planning programmes
to be put in place, particularly if there are inmates who are due to
be released from prison, so that they don’t return to prison. These
programmes are undertaken to make sure that they are reintegrated
with the community.
The other part is focusing on what an inmate has learned while in
prison, which is craft skills and skills knowledge and to be able to
earn a living with such skills. Businesspeople would be able to
employ such ex-inmates or they can open their own businesses and
avoid being beggars. By so doing, these people can be members of a
loyal and good society.]
All forms of discrimination against offenders should not be allowed.
It is noted in both reports on the visited prisons that the HIV/Aids
pandemic is on the rise. In this regard, the deaths of ill inmates
in prison should be avoided as stated in the Correctional Services
Act, Act 111 of 1998. This calls for more professional staff in
order to assess health-related matters, make appropriate
recommendations and take preventive measures.
20 JUNE 2006 Page: 147 of 221
In conclusion, it is noticeable in the reports that holistic
approaches are of vital importance to ensuring the success of
rehabilitation goals. This requires the involvement of the
community, business, police members, NGOs, judicial officers and
even the Department of Social Development.
Above all, recommendations made by the portfolio committee should be
implemented and there should be a follow-up visit resulting from
previous visits. This will ensure that visits do not just take place
for their own sake, but that a proper process is put in place for
the future. The ANC supports this report. I thank you. [Applause.]
The MINISTER OF CORRECTIONAL SERVICES: Chairperson, hon members, I
must first of all thank the portfolio committee. We do appreciate
the oversight work of the portfolio committee, which greatly assists
us in fulfilling our mandate. It is very ably led by the hon Dennis
Bloem. Thank you to him and all the members of the portfolio
committee. There are always fireworks when my chairperson comes to
this podium. There are also fireworks when he goes to the prisons on
visits, because my officials know that he won’t take anything lying
down. He’ll make sure that things get moving.
What you have done today as Members of Parliament is that you have
actually contributed to an operation we have in Correctional
Services called Operation Masibambisane. As you’ll be going out to
the different areas where you live, please continue visiting our
20 JUNE 2006 Page: 148 of 221
centres and make sure that as you visit our centres you follow up on
some of the things that are in these two reports. It’s always very
heartening to hear members say, “I tried to visit or I visited this
centre.”
I’ve just been talking to Mawa Ramgobin about restorative justice. I
didn’t know that he was so interested in it. He came to talk to me
about it. So, when you hear it mentioned here, you must know that
lots of people are involved and want to help. Judy Chalmers also
approached – she wants to visit a prison in her constituency. I
really appreciate that kind of approach in which our members go out
- Mr Mlangeni - to visit these centres. Xa bebona wena isithwalandwe
[When they see you as a man of great deeds] and having known what
prison life is like, they will gain some insight into what they can
come out with in prison, particularly the juveniles. [Applause.]
Let me quickly go through some of the issues. With regard to the
inmate checking system in Durban-Westville, I would like to assure
the committee that the problems around this system are being
attended to with more vigour now. We’ve identified the culprits who
sabotaged the system by stealing those 8 292 tracking tags or
gadgets at the Durban Westville Correctional Centre, and they are
facing disciplinary action.
The pilot programme is still going on, because we want to make a
success of it, and it can then go to other centres. All the gadgets
20 JUNE 2006 Page: 149 of 221
were recovered and we’re now dealing with the thugs who stole those
gadgets. [Applause.]
In terms of professionals – nurses, psychologists and other
professionals we have spoken about - the underlying problem with
regard to this in our centres is the issue of remuneration. It’s
very difficult because we’ve got to deal with other departments in
terms of their remuneration. This is a matter that we’ve decided to
prioritise during this financial year so that we attract the best
skilled professionals to our centres.
The recruitment drive is aimed at ensuring that the centres that
have a dire shortage of such professionals are taken care of. We’re
also reviewing their salary packages so that we are able to retain
them within the department.
There are rehabilitation problems in our centres, and it is
compulsory - I’ve taken that decision - for all juveniles to attend
rehabilitation programmes. If they do not, they then get penalties.
So, regarding the privileges that you were talking about that we
should take away, chairperson, please help me so that we can do
those things. Take away those privileges.
No offenders are going to tell us what to do. We did not collect
them from the streets. We didn’t invite them to come to where they
are now. They committed crimes. So we should treat them as such -
20 JUNE 2006 Page: 150 of 221
without being inhumane, without stripping them of their dignity,
without taking away any of their constitutional rights, but they
should know who is who in the zoo. [Applause.]
As stated previously, the department is currently in the process of
conducting an HIV and Aids prevalence survey and we do hope that
when we finish that we can bring those statistics here to the House
and let the House know what the situation is in terms of HIV and
Aids.
Meanwhile, other comprehensive HIV and Aids treatment initiatives,
which we are conducting jointly with the Department of Health, are
proceeding. These include further accreditation of three
correctional centres. Three of our centres have been accredited as
ARV sites in addition to Grootvlei in the Free State and Qalakabusha
in Pietermaritzburg.
Regarding the release of terminally ill inmates, I have publicly
stated that we are considering the release of terminally ill inmates
so that their welfare could be better taken care of by their
relatives. Those without relatives to take care of them could be
placed in government health care centres so that they can go home
or, if they are going to die, they can at least die in dignity and
not behind bars. We have relayed this matter to the Parole Review
Board and to the National Council of Correctional Services, which is
helping me.
20 JUNE 2006 Page: 151 of 221
We are improving our internal communications. We are also looking at
the staff morale. That is why we had internal promotions this year
to try to lift the morale of our staff members, and we will continue
doing so, even this year. We took them from Grade 3 to Grade 2 and
then to Grade 1. We will start some time this year from Grade 1
upward, and try to get them promoted. [Applause.]
I just want to say one thing about recruitment. It has been a
problem. The Jali commission, which we spoke about today – this
document - has indicated that we need to outsource our recruitment
drive because our members interfere with that. We’ve done exactly
that. We have two companies that are doing that. But I can assure
members of one thing: it still takes a long time to get to the stage
at which you get all the information you want, because of the
numbers of people who apply to Correctional Services – who want to
work for us.
With regard to overcrowding, Nicro had a workshop during the past
two days, a colloquium, where our lovely Deputy Minister
participated in that programme. She assisted in that colloquium,
which sat for two days. Our new Acting Judge, Judge Nathan Erasmus,
also participated, and we are hoping to get good things from that
process.
Lastly, we are overhauling community corrections. It needs a total
overhaul. I’m sitting on the Chief Deputy Commissioner for
20 JUNE 2006 Page: 152 of 221
Correctional Services, Tebogo Motseki, to make sure that we overhaul
community corrections so that judges can have confidence in
community corrections and then divert those that don’t deserve to be
in prison into that system. We need to make that system a good one.
[Applause.]
Separate regions? Not yet. We still are restructuring a lot of
things, so we cannot go into anything about separate regions at the
moment because we are still building capacity.
I must, as I stand here, thank the former Minister because he
started the Jali commission. He went to the President. I must thank
him for that, and it has come out with good recommendations. We will
try to really look at those recommendations and make sure that we
apply them - recommendations that the portfolio committee has made
on these two reports, and I’ve read the reports. We will, as a
department, make sure that we stick to whatever recommendations you
have given us. Please do not get tired of calling us to the
portfolio committee to report on the work that we do. We don’t feel
bad about that. Actually, to me, that is operation Masibambisane.
[Applause.]
The HOUSE CHAIRPERSON (Ms C-S Botha): Hon Minister, will you please
take your seat. Hon member?
20 JUNE 2006 Page: 153 of 221
Mr A M MPONTSHANE: Hon Chair, can we as the IFP acknowledge that
compliment from the Minister?
The HOUSE CHAIRPERSON (Ms C-S Botha): Well, you have done so. Thank
you. Hon Minister?
The MINISTER OF CORRECTIONAL SERVICES: Well, hon Ben belongs to the
IFP. So, it stands to reason that you can take that compliment for
yourselves.
I also want to thank the members of staff all over the country, and
to thank the senior management of the department who help when these
visits take place, who go with the team and make sure that they are
part of the team and know the problems that we have. Correctional
Services is not an easy department – it does not need a softy to try
to run it; it needs a bastard. Thank you. [Applause.]
Debate concluded.
The DEPUTY CHIEF WHIP OF THE MAJORITY PARTY: Chairperson, we move
that the reports be noted, and in saying that we want to make it
clear that it’s not for any disagreement with what is in the reports
or the recommendations. I think we’ve indicated that we also fully
support those recommendations. But the problem with the time-lag has
been alluded to in the debate, and we feel that there would be
20 JUNE 2006 Page: 154 of 221
technical problems in adopting the reports as opposed to noting
them. That’s the only reason we move that they be noted. Thank you.
Motion agreed to.
Reports accordingly noted.
CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF
SECTION 231(2) OF THE CONSTITUTION - CONVENTION ON INTERNATIONAL
INTERESTS IN MOBILE EQUIPMENT
CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT IN TERMS OF
SECTION 231(2) OF THE CONSTITUTION -
CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL
CARRIAGE BY AIR
There was no debate.
Convention on International Interests in Mobile Equipment and
Convention for the Unification of Certain Rules for International
Carriage by Air approved.
The House adjourned at 17:42.
__________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
20 JUNE 2006 Page: 155 of 221
THURSDAY, 15 JUNE 2006
CREDA PLEASE INSERT REPORT- Insert T060615E-insert – PAGES 1429-1441
MONDAY, 19 JUNE 2006
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Classification of Bills by Joint Tagging Mechanism:
(1) The Joint Tagging Mechanism on 19 June 2006 in terms of Joint Rule 160(6) classified the
following Bill as a money Bill:
(a) Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B 14 –
2006] (National Assembly – sec 77).
(2) The Joint Tagging Mechanism on 19 June 2006 in terms of Joint Rule 160(3) classified the
following Bill as a section 75 Bill:
20 JUNE 2006 Page: 156 of 221
(a) Second Small Business Tax Amnesty and Amendment of Taxation Laws Bill [B
15 – 2006] (National Assembly – sec 75).
National Assembly
1. Referral to Committees of papers tabled
1. The following paper is referred to the Portfolio Committee on Home Affairs for
consideration and report. The Report of the Auditor-General on the Financial Statements is
referred to the Standing Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Vote 4 – Department of Home Affairs for 2004-
2005, including the Report of the Auditor-General on the Financial Statements for
2004-2005 [RP 53-2006].
2. The following paper is referred to the Portfolio Committee on Justice and Constitutional
Development:
(a) A report in terms of section 9(5)(b) of the Magistrates’ Courts Act, 1944 (Act No 32
of 1944), a list containing information with regard to vacancies in the offices of
magistrates which have remained unfilled for a continuous period exceeding three
months as on 31 March 2006.
20 JUNE 2006 Page: 157 of 221
3. The following paper is referred to the Portfolio Committee on Justice and Constitutional
Development, the Portfolio Committee on Safety and Security and the Joint Standing
Committee on Intelligence:
(a) Proclamation No R67 published in Government Gazette No 28282 dated 29
November 2006: Commencement of sections 40 and 62(6) of the Regulation of
Interception of Communications and Provision of Communication-Related
Information Act, 2002 (Act No 70 of 2002): Amendment of Proclamation.
4. The following paper is referred to the Portfolio Committee on Science and Technology
for consideration:
(a) The Corporate Strategy of the Department of Science and Technology for (2006/7)
2005/6 to 2008/9.
5. The following paper is referred to the Portfolio Committee on Public Service and
Administration for consideration:
(a) Report of the Public Service Commission (PSC) on the State of the Public Service for
2006 [RP 39-2006].
6. The following papers are referred to the Portfolio Committee on Safety and Security:
20 JUNE 2006 Page: 158 of 221
(a) Report of the Independent Complaints Directorate (ICD) for January 2004 to
December 2004, in terms of section 18(5)(c) of the Domestic Violence Act, 1998 (Act
No 115 of 1998) [RP 209-2004].
(b) Report of the Independent Complaints Directorate (ICD) for January 2005 to
December 2005, in terms of section 18(5)(c) of the Domestic Violence Act, 1998 (Act
No 116 of 1998) [RP 56-2006].
7. The following paper is referred to the Portfolio Committee on Environmental Affairs
and Tourism for consideration:
(a) Strategic Plan of the Department of Environmental Affairs and Tourism for 1 April
2005 to 31 March 2010, 2006/07 Review.
8. The following paper is referred to the Portfolio Committee on Provincial and Local
Government for consideration:
(a) Medium Term Performance Plan of the Department of Provincial and Local
Government for 2006 to 2009.
9. The following paper is referred to the Portfolio Committee on Public Enterprises for
consideration:
(a) Strategic Plan of the Department of Public Enterprises for 2006.
20 JUNE 2006 Page: 159 of 221
10. The following paper is referred to the Portfolio Committee on Minerals and Energy for
consideration and report. The Report of the Auditor-General on the Financial Statements is
referred to the Standing Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Mineral Technology (Mintek) for 2004-2005,
including the Report f the Auditor-General on the Financial Statements for 2004-2005
[RP 58-2005].
11. The following paper is referred to the Portfolio Committee on Finance and the Portfolio
Committee on Provincial and Local Government:
(a) Government Notice No 362 published in Government Gazette No 28740 dated 13
April 2006: Publication of Local Government allocations and frameworks, in terms of
the Division of Revenue Act, 2006 (Act No 2 of 2006).
12. The following papers are referred to the Portfolio Committee on Finance and the
Portfolio Committee on Labour:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Learnership
Training System Programme, tabled in terms of section 231(3) of the Constitution,
1996.
20 JUNE 2006 Page: 160 of 221
(b) Explanatory Memorandum on the Exchange of Letters between the Government of
the Republic of South Africa and the Government of the Federal Republic of
Germany concerning the Project: Learnership Training System Programme.
(c) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Skills
Development Strategy Initiative (SDSI), tabled in terms of section 231(3) of the
Constitution, 1996.
(d) Explanatory Memorandum on the Exchange of Letters between the Government of
the Republic of South Africa and the Government of the Federal Republic of
Germany concerning the Project: Skills Development Strategy Initiative (SDSI).
13. The following papers are referred to the Portfolio Committee on Finance, the Portfolio
Committee on Public Service and Administration and the Portfolio Committee on
Justice and Constitutional Development:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Legislative
Drafting Programme, tabled in terms of section 231(3) of the Constitution, 1996.
(b) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning the Project: Legislative Drafting Programme.
20 JUNE 2006 Page: 161 of 221
14. The following papers are referred to the Portfolio Committee on Finance, the Portfolio
Committee on Provincial and Local Government and the Portfolio Committee Foreign
Affairs:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Mpumalanga
Rural Development Programme, tabled in terms of section 231(3) of the Constitution,
1996.
(b) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning the Project: Mpumalanga Rural Development Programme.
15. The following papers are referred to the Portfolio Committee on Finance, the Portfolio
Committee on Safety and Security and the Portfolio Committee on Science and
Technology:
(a) Agreement between the Government of the Kingdom of Belgium and the Government
of the Republic of South Africa on Technology-Aided Distance Self Learning in the
South African Police Service, tabled in terms of section 231(3) of the Constitution,
1996.
20 JUNE 2006 Page: 162 of 221
(b) Explanatory Memorandum on the Agreement between the Government of the Kingdom
of Belgium and the Government of the Republic of South Africa on Technology-Aided
Distance Self Learning in the South African Police Service.
16. The following papers are referred to the Portfolio Committee on Provincial and Local
Government for consideration:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Technology
Diffusion through Technikons, tabled in terms of section 231(3) of the Constitution,
1996.
(b) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning the Project: Technology Diffusion through Technikons.
17. The following papers are referred to the Portfolio Committee on Finance, the Portfolio
Committee on Foreign Affairs and the Joint Monitoring Committee on the
Improvement of Quality of Life and Status of Children, Youth and Disabled Persons:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Peace and
Development Project, tabled in terms of section 231(3) of the Constitution, 1996.
20 JUNE 2006 Page: 163 of 221
(b) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning the Project: Peace and Development Project.
(c) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning Financial Cooperation in
2005, tabled in terms of section 231(3) of the Constitution, 1996.
(d) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning Financial Cooperation in 2005.
18. The following papers are referred to the Portfolio Committee on Finance and the
Portfolio Committee on Trade and Industry:
(a) Exchange of Letters between the Government of the Republic of South Africa and the
Government of the Federal Republic of Germany concerning the Project: Programme to
Develop Markets for Business Development Services, tabled in terms of section 231(3)
of the Constitution, 1996.
(b) Explanatory Memorandum on the Exchange of Letters between the Government of the
Republic of South Africa and the Government of the Federal Republic of Germany
concerning the Project: Programme to Develop Markets for Business Development
Services.
20 JUNE 2006 Page: 164 of 221
19. The following paper is referred to the Portfolio Committee on Agriculture and Land
Affairs for consideration and report:
(a) Report and Financial Statements of the Commission on Restitution of Land Rights for
2005-2006 [RP 54-2006].
20. The following paper is referred to the Standing Committee on the Auditor-General for
consideration and report:
(a) Activity Report of the Auditor-General for 2004-2005 [RP 231-2005].
21. The following papers are referred to the Portfolio Committee on Education:
(a) Government Notice No 540 published in Government Gazette No 28719 dated 10
April 2006: Call for written submissions from stakeholder bodies and members of the
public on the draft policy document: An addendum to the policy document, the
National Certificate: A qualification at Level 4 on the National Qualifications
Framework (NQF), regarding learners with special needs, in terms of the National
Education Policy Act, 1996 (Act No 27 of 1996).
(b) Government Notice No 603 published in Government Gazette No 28806 dated 8 May
2006: Call for comment on the Further Education and Training Colleges Bill, 2006.
20 JUNE 2006 Page: 165 of 221
(c) Government Notice No 265 published in Government Gazette No 28657 dated 24
March 2006: Calling for the nomination of persons to serve as members on the
Second Umalusi Council for General and Further Education and Training Quality
Assurance for the period 8 June 2006 until 7 June 2010, in terms of the Act, 2001
(Act No 58 of 2001).
(d) Government Notice No 593 published in Government Gazette No 28790 dated 3 May
2006: National policy regarding further education and training programmes: Approval
of Modern Greek as an additional subject to be listed in the National Curriculum
Statement: Grades 10-12 (General), in terms of the National Policy Act, 1996 (Act No
27 of 1996) and the South African Schools Act, 1996 (Act No 84 of 1996).
22. The following papers are referred to the Portfolio Committee on Environmental Affairs
and Tourism:
(a) Government Notice No 385 published in Government Gazette No 28753 dated 21
April 2006: Regulations in terms of Chapter 5, made in terms of the National
Environmental Management Act, 1998 (Act No 107 of 1998).
(b) Government Notice No 597 published in Government Gazette No 28803 dated 5 May
2006: Draft Regulations relating to listed threatened or protected species, made in
terms of the National Environmental Management: Biodiversity Act, 2004 (Act No 10
of 2004).
20 JUNE 2006 Page: 166 of 221
(c) Government Notice No 598 published in Government Gazette No 28803 dated 5 May
2006: Draft national norms and standards for the regulation of the hunting industry in
South Africa, made in terms of the National Environmental Management:
Biodiversity Act, 2004 (Act No 10 of 2004).
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Transport
(1) Report and Financial Statements of the Road Accident Fund (RAF) for 2004-2005,
including the Report of the Auditor-General on the Financial Statements for 2004-2005 [RP
34-2006].
COMMITTEE REPORTS
National Assembly
1. Report of the Portfolio Committee on Finance on the Second Small Business Tax Amnesty and
Amendment of Taxation Laws Bill [B 15 – 2006] (National Assembly – sec 75), dated 14 June
2006:
The Portfolio Committee on Finance, having considered the subject of the Second Small
Business Tax Amnesty and Amendment of Taxation Laws Bill [B15 – 2006] (National
20 JUNE 2006 Page: 167 of 221
Assembly – sec 75), referred to it, and classified by the Joint Tagging Mechanism as a section
75 Bill, reports the Bill without amendment.
2. Report of the Portfolio Committee on Finance on the Small Business Tax Amnesty and
Amendment of Taxation Laws Bill [B 14 – 2006] (National Assembly – sec 77), dated 14 June
2006:
The Portfolio Committee on Finance, having considered and examined the Small Business Tax
Amnesty and Amendment of Taxation Laws Bill, [B14 – 2006] (National Assembly – sec 77),
referred to it, and classified by the Joint Tagging Mechanism as a Money Bill, reports that it
has agreed to the Bill.
3. Twenty-Third Report of Standing Committee on Public Accounts: Water Research
Commission, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Water Research
Commission for the year ended 31 March 2005, tabled in Parliament and referred to it, reports
as follows:
2. AUDIT OPINION
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The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Water Research Commission is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
4. Twenty-Fourth Report of Standing Committee on Public Accounts: Umalusi Council for
Quality Assurance, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Umalusi Council for
Quality Assurance for the year ended 31 March 2005, tabled in Parliament and referred to it,
reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
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3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Umalusi Council for Quality Assurance is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
5. Twenty-Fifth Report of Standing Committee on Public Accounts: Sedibeng Water Board
Qwaqwa, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Sedibeng Water Board
Qwaqwa for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as
follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
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The Committee is of the view that no further interaction with the Accounting Authority of the
Sedibeng Water Board Qwaqwa is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
6. Twenty-Sixth Report of Standing Committee on Public Accounts: State President Fund, dated
15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the State President Fund for the
year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
State President Fund is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
20 JUNE 2006 Page: 171 of 221
7. Twenty-Seventh Report of Standing Committee on Public Accounts: South African Institute
for Drug Free Sport, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the South African Institute For
Drug-Free Sport for the year ended 31 March 2005, tabled in Parliament and referred to it,
reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
South African Institute For Drug-Free Sport is necessary for the financial year under
review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
8. Twenty-Eighth Report of Standing Committee on Public Accounts: Refugee Relief Fund,
dated 15 March 2006:
20 JUNE 2006 Page: 172 of 221
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Refugee Relief Fund for the
year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Refugee Relief Fund is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
9. Twenty-Ninth Report of Standing Committee on Public Accounts: Umngeni Water Board,
dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Umngeni Water Board for
the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
20 JUNE 2006 Page: 173 of 221
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Umngeni Water Board is necessary for the financial year under review..
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
10. Thirtieth Report of Standing Committee on Public Accounts: Trans-Caledon Tunnel
Authority, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Trans-Caledon Tunnel
Authority for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as
follows:
2. AUDIT OPINION
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The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Trans-Caledon Tunnel Authority is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
11. Thirty-First Report of Standing Committee on Public Accounts, Social Relief Fund, dated 15
March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Social Relief Fund for the
year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
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The Committee is of the view that no further interaction with the Accounting Authority of the
Social Relief Fund is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
12. Thirty-Second Report of Standing Committee on Public Accounts: South African National
Accreditation System, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the South African National
Accreditation System for the year ended 31 March 2005, tabled in Parliament and referred to
it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
South African National Accreditation System is necessary for the financial year under
review.
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The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
13. Thirty-Third Report of Standing Committee on Public Accounts: Rand Water Board, dated
15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Rand Water Board for the
year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Rand Water Board is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
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14. Thirty-Fourth Report of Standing Committee on Public Accounts: Rural Housing Loan
Fund, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Rural Housing Loan Fund
for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Rural Housing Loan Fund is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
15. Thirty-Fifth Report of Standing Committee on Public Accounts: Magalies Water Board,
dated 15 March 2006:
1. INTRODUCTION
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The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Magalies Water Board for
the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Magalies Water Board is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
16. Thirty-Sixth Report of Standing Committee on Public Accounts: Namaqua Water Board,
dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Namaqua Water Board for
the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
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The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Namaqua Water Board is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
17. Thirty-Seventh Report of Standing Committee on Public Accounts: Overberg Water Board,
dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the Overberg Water Board for
the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
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3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
Overberg Water Board is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
18. Thirty-Eighth Report of Standing Committee on Public Accounts: CHIETA, dated 15 March
2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the CHIETA for the year ended
31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
3. GENERAL MATTERS
The Committee finds it totally unacceptable that CHIETA did not respond to Parliament’s
resolution of 2004.
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The Committee further requests CHIETA to supply a thorough explanation why the 60 days
deadline was not met.
4. CONCLUSION
The Committee is of the view that, except for the aspects highlighted above; no further
interaction with the Accounting Authority of the CHIETA is necessary for the financial year
under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
19. Thirty-Ninth Report of Standing Committee on Public Accounts: National Home Builders
Registration Council, dated 15 March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the National Home Builders
Registration Council for the year ended 31 March 2005, tabled in Parliament and referred to
it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will be equally unqualified.
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3. CONCLUSION
The Committee is of the view that no further interaction with the Accounting Authority of the
National Home Builders Registration Council is necessary for the financial year under
review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
20. Fortieth Report of Standing Committee on Public Accounts: FOODBEV SETA, dated 15
March 2006:
1. INTRODUCTION
The Standing Committee on Public Accounts, having considered the Annual Report and the
Report of the Auditor-General on the Financial Statements of the FOODBEV SETA for the
year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:
2. AUDIT OPINION
The Committee noted the unqualified audit opinion expressed by the Auditor-General, and
trusts that future audit opinions will equally unqualified.
3. GENERAL MATTERS
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The Committee finds it totally unacceptable that FOODBEV did not respond to Parliament’s
resolution of 2004.
The Committee further requests FOODBEV to supply a thorough explanation why the 60 days
deadline was not met.
4. CONCLUSION
The Committee is of the view that, except for the aspects highlighted above; no further
interaction with the Accounting Authority of the FOODBEV SETA is necessary for the
financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor General.
21. Report of the Portfolio Committee on Foreign Affairs on the Principles and Guidelines
Governing Democratic Elections and Standards and Norms for Elections, dated 13 June
2006:
1. SADC PRINCIPLES AND GUIDELINES GOVERNING DEMOCRATIC
ELECTIONS
The Southern African Development Community (SADC) Principles and Guidelines for Elections
were adopted in Mauritius in 2004. They govern the conduct of elections in SADC member
countries with an aim of enhancing transparency, credibility of elections, democratic governance to
make sure that elections are free and fair and to create an environment in which elections result are
20 JUNE 2006 Page: 184 of 221
accepted by those who are participating in the election. The main body of the principles and
guidelines include inter alia the following:
Full participation of the citizens in the political process during elections.
Freedom of association.
Political tolerance.
Regular interval for elections as provided for in the country constitution.
Equal opportunity for all political parties to access State media.
Equal opportunity to exercise the right to vote and be voted for.
Independence of the judiciary.
Impartiality of electoral institutions and voter education.
The principles are developed with an intention of encouraging the adherence to broad human rights
principles and norms, which would create an environment of peace and political stability. They are
not binding to any state or government, but are voluntary for all member countries. Thus, their
implementation solely resides with the individual government or country and in compliance with
the election standards and/or constitution of that country.
2. SADC NORMS AND STANDARDS FOR ELECTIONS
The SADC Norms and Standards for Elections are based on the Organisation of African Unity
(OAU) or African Union Declaration on the Principles Governing Democratic Elections in Africa
that was adopted at the 38th Ordinary Session of the Assembly of Heads of State and Government
in 2002. They are also designed in accordance with the Universal Declaration of Human Rights.
The main aspects of the norms and standards are the following:
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(a) The recognition that proper elections should include a process in which voters are
registered to vote and have a right to be voted for.
(b) Voting would be secret.
(c) Individuals have a right to freedom of association and free to express themselves during
elections.
(d) Adherence to multi-party democracy.
(e) Political parties must be treated equally, and have a fair share of resources distributed
by government for the purpose of elections.
(f) Equal access to State media by both the ruling and the opposition parties.
(g) Establishment of an Independent Electoral Commission for the preparation and conduct
of elections.
(h) Transparent and Democratic Election process.
(i) Free and Fair Elections.
(j) Voter education.
(k) Political tolerance during election campaigns.
(l) Independent Judicial System in the form of courts to deal with election offences,
appeals and petitions and post elections legal issues.
The norms and standards seek to establish a regional barometer for elections in member countries.
They also aim at buttressing the human rights standards of member countries in line with the AU
and UN declarations and protocols.
3. RECOMMENDATIONS
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The following are recommendations arising from consideration of the above facts and issues
relating to the SADC Principles and Norms and Standards:
(a) The SADC principles and norms and standards must be harmonised as opposed to
having two sets of analogous election guidelines.
(b) The central pillar should be to foster the application of one single elections barometer
for member countries.
(c) Parliament must adopt both the SADC principles and norms and standards as outlined
with the proviso that they will be harmonised.
The Committee feels that there are no necessities to change our current norms and there’s no need
for these to be harmonised with other election principles.
There is a call for SADC to have one election observation-monitoring tool.
Report to be considered.
22. Report of the Portfolio Committee on Foreign Affairs on the Comoros Presidential Elections:
SA Observer Team, dated 12 June 2006:
1. INTRODUCTION
Within the framework of the national reconciliation process coordinated by the AU and in
response to the request of the Comorian authority, the international community deployed
observers to assess the conduct of the Presidential Elections of 14 May 2006 in the
Comoros.
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In pursuance of the Peace and Security Council decision taken at its 47th Session held in
Addis Ababa, Ethiopia on 21 March 2006, the Peace and Security Council requested the
African Union Commission to coordinate the efforts of the AU partners in the Comoros in
order to facilitate the smooth holding of the election process.
South Africa and the African Union (AU) have been pivotal in securing the first round of
elections (Primaries). This task emanates from the engagement by President Mbeki as well
as Minister Dlamini Zuma in her capacity as Chairperson of the Countries of the Region
on the Comoros.
In terms of the Union Constitution of Comoros, the position of President rotates every 4
years amongst the three Islands (Grand Comoros, Moheli and Anjouan).
2. COMPOSITION DELIGATION
A delegation of 10 members, consisting of five MPs, namely, Mr. DJ Sithole, Ms. M Maunye, Ms.
A Van Wyk, Mr. P Smith, Mr. A Steyn and Mr. F Kgodumo of the Youth Commission, Mr. A
Mali of the South African chapter of ECOSSOC and officials of DFA (Department of Foreign
Affairs), Amb. C Seleka, Mr. S Mhlana and Ms. M Kekana arrived on the 23 April 2006 in the
Comoros.
3. PROGRAMME
Ambassador Mabeta of South Africa introduced the delegation to Minister Madeira, the
Political head of AMISEC and
Ambassador Mouraad of the AU,
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The Military leadership of AMISEC, Col Sibanyoni and Col Schoeman.
The delegation was briefed on the general political situation in the Comoros and the
expectations of AMISEC given the weaknesses discussed in the body of this report.
3.1 MEETINGS WITH STAKEHOLDERS
1. Union President, Mr. Azali Asoumani
2. Minister of Foreign Affairs
3. President of Grand Comoros, Mr. Abdou Soule Elbak
4. President of Moheli, Mr. Faull
5. President of Anjouan, Mr. Mohamed Bacar
6. Candidates, AA Sambi , M Djannfari and I Halidi
7. The Constitutional Court
8. International Community
9. All three Island CIECs (Comoros Island Elections Commissions) and the CNEC (Comoros
National Elections Commissions).
4. RESULT OF THE PRIMARY ELECTIONS, 16 APRIL 2006, IN ANJOUAN
On 16 May 2006, Primaries were held with 13 Presidential candidates from Anjouan contesting the
elections. The Primaries determine the top three candidates that then contest the National President
Elections. The result of the Primaries on Anjouan was:
A Sambi 26%
M Djaanfari 14.44%
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I Halidi 14.30%
4.1. Evaluation of the 1st Round of Primary Elections in Anjouan 16/04/06
Irregularities were noted in the following voting stations:
i) Nyumakele Region
-Voting Station of Ongojou 1
-Voting Station of Mirondroni
ii) Sima Region
-Voting Station of Nindri
-Voting Station of Nindri 2
Delays in the delivery of election material was noted as one of the critical weaknesses of
CNEC as the late arrival of material resulted in NyuMakhele region’s voting stations opening
as late as 13h00. Due to the late opening and other delays, some stations were allowed to go
beyond the 18:00 closing time.
Sudden changing of polling station presidents resulted in voters in the affected areas refusing
to vote.
The International Community and AMISEC were also criticized. It was noted that AMISEC
personnel were not in every voting station despite explanations that the Military was
efficiently deployed and that they were mobile to deal with any difficulties within 10 minutes.
The expectation remained that AMISEC are required to be placed at every poling venue.
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AMISEC was specifically pressured to take over the elections from the CNEC, as people felt
nervous with the performance of the electoral body.
It was noted that electoral officials in Anjouan gave in to political pressure and flaunted
CNEC procedures.
The delegation was briefed about attempts from a certain section of the political spectrum of
the Comoros, arguing for the annulment of the elections due to perceived irregularities in the
above mentioned regions and voting stations. All three Island CIECs raised a concern
regarding the non payment or late payment of accounts from the side of CNEC.
During the first week of the delegation’s visit in the Comoros, several events took place on the
Island of Moheli that had the potential to create uncertainty on the ground. The first was
related to a march by the military and the second with a strike action at the Island’s harbor.
Both these issues were addressed with the relevant role-players and steps were agreed upon to
address the situation and ensure that no repetition of it takes place.
4.2. Corrective steps to remedy the identified weakness for the upcoming 2nd round of Union
Presidential elections
A workshop was held with CNEC, all three CIECs, IEC, Observers and AMISEC leadership
to work through identified problems and agree on corrective actions to be taken and to
allocate specific responsibilities to individuals and bodies.
The following recommendations came out from the workshop:
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Increase the Military Component of AMISEC,
Increase Civilian Observers and improve their visibility,
Appointment of Voting Station Staff to be done in time,
IEC to train all election Staff,
All election material to be dispatched in time by CIEC with AMISEC securing the
material,
Preparations of material to all voting stations to also be done in time,
IEC and Observers be deployed in time,
Arrangements are made between UNDP, CNEC and the three CIECs to address the late
payment of accounts and to ensure that it does not happen again.
5. ELECTION DAY
Preliminary results of the Presidential Elections of 14 May 2006.
The preliminary results for the Presidential elections held on 14 May 2006, was issued on 16 May
2006 by the Minister of Interior, who is also in charge of the elections. The Constitutional Court
will issue the official announcement of the results no later than Thursday, 18 May 2006.
The following are the summarised preliminary results for the autonomous island of Grande
Comoros, Anjouan and Moheli:
Candidate Grande Moheli Anjuoan Total
Comoros
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Sambi 64,35% 74,72% 45,70% 58,28%
Halidi 29,50% 17,86% 27,65% 28,01%
Djaafari 6,15% 8,43% 26,65% 13,72%
6. POST ELECTIONS
The AU and International observers issued a statement on 16 May 2006 declaring the
elections free, fair and transparent. The SA/AU observers were deployed to the three
islands to cover all the 624 voting stations. Three members were deployed in Moheli,
five members in Anjouan and five members in Grand Comoros.
Other observers come from the Francophone, Arab League, UNDP, Indian Ocean
Commission, France, China and the USA.
The voting process was conducted smoothly in almost all voting stations. There were
isolated incidents of intimidation against some electoral officials and attempts to
fraudulently cast votes by using forged ballot papers. The general observation from all
observers was that there were no acts of violence and that the general conduct of the
Comorian people was commendable.
Errors on the voters roll were noted. One voter card number was used for up to five
different voters and this opened the voters roll to manipulation.
The SOMA agreement tasked AMISEC with the responsibility of distributing the voting
material to all voting stations. Voting started slightly late in some of the voting stations,
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with a few voting stations opening very late due to inaccessibility and late delivery of
materials.
In all voting stations were officials, party agents for each candidate and a member of the
AMISEC. It is important to note that certain voting stations had no AMISEC presence
but a contingency plan was devised whereby AMISEC patrolled around these areas.
AMISEC was also tasked with the rollback of all voting material including envelopes
with the results, for each island, destined for the Constitutional Court.
7. GENERAL OBSERVATIONS
Daily meetings were held between members of AMISEC, CNEC and the international
community to discuss matters regarding election preparations and to overcome
anticipated problems that might arise during the elections.
Training of electoral staff was minimal due to poor logistical planning.
Lack of Professionalism and poor communication was noted in some members of the
IEC.
The question of how South Africa’s Institutions relate to each other when they are on
deployments outside the country must be discussed. The approach adopted on the
deployment of extra troops from RSA to the Comoros is a critical point in hand. The
military informed all stakeholders in the Comoros and international community about the
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850 troops to be deployed by RSA just before the elections. It was the view of the RSA
Diplomats that the matter was best placed between the AU and the RSA Capital and it
should not be discussed in the AMISEC planning meetings. This view was not shared by
AMISEC and the matter became a source of tension.
The SABC was on the ground and they were unable to be assisted effectively by the
AMISEC Media office. However, with the arrival of the Beeld journalist it was a
different case. She was picked up and dropped at the airport by AMISEC and exclusive
interviews were arranged for her.
AMISEC Political Head, Mr. Madeira and IEC expert, Mr Steve Ngwenya confused the
role of observers. In their view the IEC will be responsible for the deployment of AU,
SA and other observers. They wanted observers to roll out and roll back voting materials
and that observers should, together with supervisors, do trouble shooting during Election
Day. After intense debate it was agreed that observers should be allowed to observe
elections as per the normal guiding principles of observations.
8. RECOMMENDATIONS
Need to financially capacitate CNEC and CIEC’s to be able to independently perform
their duties in future.
Intensive training and skills transfer to CNEC and CIEC’s.
Restructuring and depolarization of CNEC and CIEC’s and the Constitutional Court.
South Africa to consider assisting in the retraining of the Comoros Security forces.
Reevaluation of the voter roll and Voters Cards and the improvement of its management.
The AU mandate to be clearly spelt out to the Observers special envoys.
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The SA DFA needs to clarify its responsibilities to the South African Observer Teams.
The Institutional relationship to be clarified and streamlined, (this relates to behavior
that has the potential to undermine the Diplomatic representatives of RSA, not
limited to this mission).
Institutional mandates in any mission to be communicated clearly to all involved so as to
avoid the problems noted above.
23. Report of the Portfolio Committee on Foreign Affairs on the South African Parliament
delegation to the 19th Plenary Assembly of the Southern African Development Community -
Parliamentary Forum, dated 13 June 2006:
1. INTRODUCTION
The 19th Plenary Assembly of the Southern African Development Community-Parliamentary
Forum (SADC-PF) took place in Gaborone, Botswana from 8 to 17 December 2005. The theme of
the Plenary Assembly was, ― Redefining Strategic Priorities of the SADC Parliamentary Forum to
Mainstream Parliamentary Dimensions to Regional Integration‖. The following Members of
Parliament (MP’s) represented the Parliament of South Africa at the Plenary:
The Hon. F Hajaig, MP (Head of the Delegation)
The Hon. Mr E Sogoni, MP
The Hon. Mr W J Seremane, MP
The Hon. D J Sithole, MP
Two Support Staff, Ms L D Lenzie (legal advisor) and Mr J Mokoena (researcher), assisted
the delegation.
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The Presiding Officers and representatives of the following twelve (12) of the thirteen member
Parliaments of the Southern African Development Community Parliamentary Forum attended the
Committee meetings and Plenary Sessions, viz.:
Angola Mozambique
Botswana Namibia
Democratic Republic of Congo South Africa
Lesotho Swaziland
Malawi Zambia
Mauritius Zimbabwe
The Parliament of the United Republic of Tanzania was not represented as it was dissolved
pending the outcome of the Presidential and Parliamentary elections that were taking place in the
country.
2. OPENING SESSION
The following dignitaries addressed the opening session:
The Speaker of the National Assembly of Botswana, the Honourable Patrick Balopi (MP).
The Chairperson of the SADC-PF and Speaker of the Zambian Parliament, the Honourable
Amusaa Mwanamwambwa (MP).
The President of the Republic of Botswana and Chairperson of the Southern African
Development Community (SADC), His Excellency Mr Festus Gontebanye Mogae.
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The Speaker of the National Assembly of the Kingdom of Swaziland, the Honourable
S’gayoyo Magongo (MP).
2.1. Welcoming Address by the host Speaker, the Hon Patrick Balopi
The host Speaker, the Hon P. Balopi welcomed delegates to Gaborone, Botswana. The Speaker
highlighted the historical commitment of Botswana to the ideals of SADC as evidenced by the
precursor to SADC, the Southern African Development Coordinating Conference (SADCC), which
was conceived in Botswana. Botswana first hosted the plenary assembly in March 1998 when the
Forum was still very much in its infancy and shortly after the election of its first executive
committee in Cape Town in 1997. The active participation of the Parliament of Botswana in the
work of SADC-PF is a contribution that the country makes to the region and the African continent.
The continued contribution of Botswana Members of Parliament in the Parliamentary Forum is
immense with most of them holding positions in the Executive and Standing Committees. In
September 2005, Botswana hosted a SADC-PF regional seminar on Electoral System Design. The
government of Botswana is committed to the historical mission of SADC-PF.
2.2. Welcoming Address by the Chairperson of SADC-PF, the Hon. Amusaa
Mwanamwambwa
In his address to the opening session, the Chairperson of the Parliamentary Forum stressed the need
for closer co-operation and collective decision-making on matters that affect citizens of the region.
He emphasised the importance of Parliamentarians to participate in regional politics, development
and integration, which could be enhanced by the creation of a SADC Parliament. It was pointed out
that the 19th Plenary Assembly would, among other issues, develop a new Five-Year Strategic
Plan. The Chairperson congratulated SADC Heads of State and Government for raising the
20 JUNE 2006 Page: 198 of 221
threshold of women representation in decision-making structures, increasing it from 30% to 50% in
line with the African Union’s target.
The SADC-PF will contribute towards the realisation of the goals envisioned in the Regional
Indicative Strategic Development Plan (RISDP), as adopted in Tanzania. Through the proposed
SADC Parliament, the objectives and plans of SADC can easily transcend national boundaries of
countries. The Heads of State and Government, in approving the establishment of the SADC-PF
foresaw the Forum as a nucleus of a future regional Parliament, unfortunately the role of
parliamentarians in regional co-operation and integration remain undefined. The envisaged role of
a SADC Parliament is primarily that of bringing parliamentary dimension to regional co-operation
and integration.
The coming into being of the Pan-African Parliament (PAP) in 2004 is a welcomed development
and regional Parliamentary Forums are necessary for the PAP to fulfil its functions as outlined in
its establishing protocol. The Chairperson of SADC must built consensus around the idea of
establishing a SADC Parliament as a way of completing the building of a SADC community with
all its constituent components, the Executive, Legislature and the Judiciary.
The Chairperson thanked the Botswana government for hosting the 19th Plenary Assembly of the
Forum and for the generous hospitality extended to delegates. He also thanked His Excellency,
President Mogae for accepting the invitation to officially open the Plenary Assembly.
2.3. Address by the President of Botswana, His Excellency Mr. Festus Gontebanye Mogae
20 JUNE 2006 Page: 199 of 221
In his address, the President of Botswana acknowledged the valuable role played by the SADC
Parliamentary Forum over the years in building regional consensus and capacity. He appreciated
the role played by the Forum in setting benchmarks for the promotion of gender equality, fighting
against HIV and AIDS, and observing elections in SADC member countries. It was noted that
SADC Election Observation Missions will benefit from the Forum’s experience in observing
elections and thus, closer cooperation is necessary.
The President noted that at the time when the SADC-PF was established in 1997, it was not
considered necessary to establish a fully-fledged regional Parliament. The President assured the
Plenary Assembly that the proposal to establish a SADC Parliament would receive careful
consideration. The President also noted that Parliamentarians have a role to play in the RISDP and
the Strategic Indicative Plan of the Organ on Defence, Politics and Security Co-operation among
other SADC declarations and protocols.
2.4. Vote of thanks by the Speaker of the National Assembly of Swaziland, the Hon. S’gayoyo
Magongo
The Speaker of the National Assembly of the Kingdom of Swaziland, the Hon S’gayoyo Magongo
thanked the President of Botswana for his address to the Plenary Assembly and his election to the
chairpersonship of SADC. In his address, the Speaker posed key questions for consideration and
noted that the Region is at a time where co-operation at regional level must necessarily give way to
competition. He called upon the Legislative and Executive arms of government to work
cooperatively and not to the exclusion of the other in order to improve the socio-economic,
cultural, and political situation of the people.
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The Speaker suggested that the Southern African Development Community (SADC) must ask
itself the following questions:
What difference has it (SADC) made to the lives of women?
Has SADC made any difference to the status of women in the society?
What concerns do the children have in making it to a university?
What difference will SADC make to the people of the region?
What is it that will make people to be proud of being citizens of the region?
What are the necessary facets of a fully integrated Southern African Development
Community?
On behalf of SADC-PF, the Speaker suggested that, during the tenure of the President of
Botswana, as the Chairperson of SADC, there will be co-operation between the Executive and the
Legislative arms of government and this would be enhanced in order to achieve regional co-
operation and integration.
3. EXECUTIVE COMMITTEE MEETINGS – KEY ISSUES
3.1 Report of the Legal Sub-Committee
The Legal Sub-Committee met and considered the credentials of delegates to the 19th Plenary
Assembly, as prescribed in Article 6 (3) of the Constitution of SADC Parliamentary Forum. The
Committee made the following observations and reported that:
(a) The Parliament of Tanzania was not represented, due to the pending general elections
that were taking place in the country.
20 JUNE 2006 Page: 201 of 221
(b) An apology had been received from the Parliament of South Africa, whose Speaker is
currently leading the African Union (AU) Election Observer mission in Tanzania.
(c) Namibia did not have a member from the opposition.
(d) Parliaments of Lesotho, Mauritius and South Africa did not have representatives of their
respective National Women’s Parliamentary Caucuses, due to the following:
The Committee also noted that the Chairperson of the Lesotho National Women’s Parliamentary
Caucus is currently leading the SADC Parliamentary Forum Election Observation Mission in
Tanzania. It further noted that, Mauritius is yet to constitute a National Women’s Parliamentary
Caucus following the elections in July 2005, while South Africa sent an apology on behalf of the
Chairperson of the Country’s Women’s Parliamentary Caucus.
It was noted that, most Parliaments had at least one-third representation of women and members
from ruling and opposition parties in their delegations.
In addition, the Executive Committee adopted a report of the Legal Sub-Committee relating to
Guidelines for Elections of Chairpersons of Standing Committees. The elections will be conducted
in terms of the 2003 electoral process, which requires that:
(a) Signed nominations for candidates should be submitted to the Secretary-General a day
before the day of elections.
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(b) Names of duly nominated candidates should be publicized to committee members the
day before elections.
(c) In electing office bearers, consideration should be made to gender equity and geographic
spread of Member Parliaments.
(d) Election shall be by secret ballot.
(e) Outcome of elections would be subject to ratification by the Plenary Assembly.
3.2 Report of the Chairperson
The Chairperson reported on the following issues:
The Office of the Chairperson made courtesy calls to the Heads of State and Government of
Namibia, Botswana, Malawi and Zimbabwe.
The courtesy call to the Namibian Head of State took place on the 14th July 2005.
The courtesy call on the Head of State of Malawi took place on 22 July 2005 under the
leadership of the Hon Duke Lefhoko, Vice Chairperson of SADC-PF.
The courtesy call delegation to meet the Head of State of Botswana included the
Chairperson, Vice Chairperson (Speaker of the National Assembly of Botswana) and
members of SADC-PF in Botswana.
The courtesy visit to President Robert Mugabe of Zimbabwe was carried out in terms of a
decision made at the 17th Plenary Assembly and 18th Plenary Assembly.
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The main purpose of the courtesy calls was for SADC-PF to be more inclusive by involving
parliamentarians in its structures and programmes.
During the visits, the Parliamentary Forum requested the Heads of State and Government to
consider establishing the SADC Parliament under article 9 (1) of the Treaty, which
establishes core organs of SADC.
The establishment of the SADC Parliament would allow Members of Parliaments to be
involved in SADC matters through a formalised legislative arm of SADC.
During the courtesy calls, the Presidents of Namibia and Malawi expressed support for the
establishment of SADC Parliament, of which the Presidents of South Africa and Zambia
had already expressed support for the establishment of a SADC Parliament.
The Heads of State and Government of Mauritius, Angola, Tanzania, and DRC were not
visited.
The Vice-Chairperson of SADC-PF also paid a courtesy visit to the Hon Prof Ali Nouhoum
Diallo, Speaker of the Economic Community of Western African States (ECOWAS)
Parliament in which it was agreed that the two bodies will work together.
3.3 Report of the Secretary-General
The report highlighted the following key points:
The institutional development, preparatory work on the development of a new Five-Year
Strategic Plan, support to policy organs, relations with SADC, networking and participation
at international parliamentary conferences.
The actual implementation of the activities which are expected to be hosted by the different
member parliaments will be subject to consultation with the respective Parliaments to
address issues of cost sharing, sitting calendars and local expectations, and other issues.
20 JUNE 2006 Page: 204 of 221
The following are some of the issues that should be considered for incorporation in the
work plan:
(i) Knowledge and information sharing and capacity building initiatives on
parliamentary reforms to enhance the independence and financial autonomy of
Parliamentary Forum.
(ii) Engagement with the PAP processes, including SADC caucus in the PAP.
(iii) Conscientisation of National Parliaments on the work of SADC-PF and the
establishment of permanent feedback mechanisms between parliamentary forum
and national Parliaments.
3.4 Report of the Treasurer
The following key points were made:
The Committee noted that the audit for the financial statements for the year ended 31st
March 2005 was conducted in July 2005.
The Committee congratulated the Office of the Secretary General for this record.
The Committee also noted the management accounts reported on the results for the six
months ended 30th September 2005 with budget figures representing that period and that the
budget needed rationalisation.
The audited donor funded programmes, accountability statements provided in the report
were noted and the Office of the Secretary General was congratulated for the good
performance and auditors’ opinion.
20 JUNE 2006 Page: 205 of 221
The Executive Committee considered the application for bank overdraft and Internet
banking facilities, which was agreed to and concluded with the Forum bankers, Nedbank
Namibia Limited.
The Forum has an overdraft access of up to N$500 000.
The arrangements regarding Internet banking facilities will be extended to the second
bankers of the Forum, Standard Bank.
Only nine out of the thirteen member Parliaments paid their annual mandatory
contributions.
The member Parliaments that are outstanding in their contribution should pay soonest.
The increment of annual mandatory contribution per member Parliament of R850 000 will
take effect from 1st April 2006.
The staff compliment in the Office of the Secretary General has been increased with diverse
nationalities and addressed the gender question through new staff recruitment.
In August 2005, the Executive Committee reviewed the threshold of R2 000 000 for the
purchase of the Secretary General’s new residence to R2 500 000 to accommodate transfer
costs and other costs.
The new residence of the Secretary General was acquired at R2 340 000, including transfer
costs realising a saving of R160 000 on the approved budget of R2 500 000 and the
Secretary General has taken occupation of the residence.
The old residence of the Secretary General was renovated to increase its market value from
R1 500 000 to 1 775 000 and estate agents have been commissioned to sell the property.
The preparations for the 10th Anniversary of the SADC-PF in July 2006 are underway and
the Treasurer should constitute and head a committee to consider activities for the
anniversary celebrations.
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The Committee should include representatives of the host country and the Clerk of the
Country hosting the headquarters and the Clerk of the Country that will host the 20 th
Plenary Assembly.
All member Parliaments shall participate in the financing of the activities of the 10th
Anniversary.
4. STANDING COMMITTEES
4.1 Committee on Democracy, Gender and Conflict Resolution/Peace-building
The Committee considered the proposed new name of the Committee and agreed that it will,
henceforth be, the Committee on Democratisation, Governance and Gender Equality. The Draft
Strategic Plan for the next five years 2006-2010 was also adopted, aimed at the following strategic
objectives:
(i) Effective implementation of regional integration programmes.
(ii) Improving institutions of democratic governance in the SADC region.
(iii) Increased Professional performance.
(iv) Strategic partnerships and alliances established for parliamentary cooperation.
The following Programme Areas for the Committee were adopted:
(i) Elections and Electoral Systems: This will include elections observation in order to keep a
watching brief on the proper conduct of elections.
(ii) Gender: The adoption of protocols to accelerate gender equality in SADC
20 JUNE 2006 Page: 207 of 221
(iii) Strengthening Institutions of Democracy and Good Governance: working with institutions
of civil society, political parties, and anti-corruption bureaus in order to strengthen their
capacities.
(iv) Developing Best Practice and Policy Frameworks through Parliaments: such practices should
also be aimed at mitigating and combating HIV and AIDS.
4.2 Committee on Inter-parliamentary Co-operation
The Committee acknowledged the observer status of the Forum in Inter-Parliamentary Union (IPU)
and Commonwealth Parliamentary Association (CPA) as a desired achievement. It also
acknowledged the collaborative mechanisms that have been established with New Partnership for
Africa’s Development (NEPAD) and Association of West European Parliamentarians for Africa
(AWEPA).
The Secretariat was mandated to ensure that reports on Inter-Parliamentary co-operation activities
are circulated to all member parliaments quarterly. It was agreed that Members attending SADC-
PF meeting must present summary reports of the meeting to be discussed by their Parliaments.
The Committee noted the need to increase advocacy work in individual Parliaments in order to
increase awareness of the Forum’s activities. The Committee also acknowledge the Forum’s
newsletter as a tool of information sharing.
With regard to the Parliamentary Leadership Centre (PLC) Contributions, the Committee
encouraged Members to appeal to their Parliaments to pay the contribution, as this is a requirement
by the donor, the Africa Capacity Building Foundation (ACBF). The Committee raised concern on
20 JUNE 2006 Page: 208 of 221
the recommendation that three members of the Committee be part of the Leadership Centre –
Advisory Board but the Executive Committee approved only two (2).
The committee recommended that the Chairperson of the Forum be part of the PLC Advisory
Board since the committee will be responsible for the PLC. It also acknowledged that the Strategic
Plan was well tailored, but raised concern over capacity to realistically implement the programmes
suggested. It also received a submission from the Southern African Development Community
Organisation of Public Accounts Committee (SADCOPAC) for the structure to be made part of
SADC-PF. SADCOPAC is a body of Parliamentarians of the SADC region. The Committee
recommended that SADCOPAC’s request to be part of the Forum be submitted to the Plenary
Assembly.
4.3 Committee on Regional Integration
The key issues, which were noted and discussed by the committee included:
Visa restrictions:
o Bilateral negotiations regarding eliminations of Visa requirements among SADC
Member States has resulted in the scrapping of Visa restrictions between Swaziland and
Mozambique, and between Angola and Namibia.
o It was also noted that Visa negotiations between some of the SADC Member States
were continuing.
o The treatment of Members of Parliament at South African Airports has not improved
and this needs to be addressed.
20 JUNE 2006 Page: 209 of 221
New Strategic Plan, 2006 – 2010:
o The Committee considered the Draft Strategic Plan including its terms of reference and
objectives.
o It resolved that the strategic plan be adopted.
SADC Protocol:
o The Committee welcomed the SADC Protocol on the Facilitation of Free Movement of
Persons.
o It proposed that a workshop be convened to discuss the protocol as an instrument to
facilitate regional integration.
Relationship between SADC and SADC-PF
o The Committee recommended that SADC pronounce itself on the relationship between
the Forum and SADC and the status of the Forum thereto.
o The Committee’s view was that the pronouncement will help clarify the issue of a
regional Parliament and regional integration.
o The election observation instruments by SADC and SADC-PF should be synchronised.
o The Committee recommended a mechanism to include issues of SADC, SADC-PF and
PAP in the school curriculum across the region.
Transboundary Natural Resources Management (TNRM) Initiatives:
o The Committee noted the TNRM meetings that took place in Angola, Namibia and
Zambia.
o The Committee recommended that information on transboundary projects be shared
among member Parliaments and that the TNRM initiatives be put on the Regional
Cooperation and Integration agenda.
RISDP, NEPAD and Millennium Development Goals
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o The Committee has noted the submission by the Honourable Gamboa to integrate the
Regional Indicative Strategic Development Plan (RISDP), New Partnership for Africa’s
Development (NEPAD) and the Millennium Development Goals (MDG’s) into its
agenda
o The Committee approved the integration of RISDP, NEPAD and MDGs as proposed
since this will guide the committee’s development and integration agenda.
Poverty in the region
o Majority of the people in the SADC region live below the poverty datum line surviving
on US$1 per day.
o The Committee proposed that poverty be a standing agenda item on its agenda.
o Further recommended that SADC should rely on its internal resources instead of foreign
assistance when dealing with poverty.
4.4 Committee on HIV and AIDS
The Committee made the following key points:
The Committee considered country presentations on the role that parliamentarians and
governments play in addressing HIV and AIDS.
The Committee noted that Namibia has failed in two consecutive years to present a
country presentation.
The country presentations focused on progress made by countries
The Committee noted the following:
20 JUNE 2006 Page: 211 of 221
o The Secretariat did not keep contact with the Chairperson of the Committee on
matters pertaining to activities and decisions that need to be taken on behalf of
the Committee.
o Food and nutrition are critical to people living with HIV and AIDS
o The efficiency of stand-alone HIV and AIDS Portfolio Committees in relation to
infectious diseases in the region.
o The Forum has repackaged material with support from the United States Agency
for International Development (USAID) Namibia in the form of fact sheet.
o A handbook on HIV and AIDS, Gender, Human Rights for Members of
Parliament has been developed and will be validated by Member Parliaments
before going to press.
The Committee agreed to the following:
o HIV and AIDS should be dealt with together with other infectious diseases.
o The interplay between HIV and AIDS, Tuberculosis and malaria should come
out clearly in the Strategic Plan.
o The handbook on HIV and AIDS, Gender and Human Rights be circulated to
members of the Committee for validation
o The Forum and SADC should work closely to synchronise a regional response to
the pandemic and regional programmes.
o The Committee recommended that the Executive be lobbied to strengthen cross
border HIV and AIDS, Malaria and Tuberculosis programmes and activities.
o The Committee also resolved that the consultant develops an HIV and AIDS
Action Plan based on the Strategic Plan objectives and other relevant documents.
4.5 Committee on the Regional Women’s Parliamentary Caucus
20 JUNE 2006 Page: 212 of 221
The Regional Women’s Parliamentary Caucus (RWPC) made the following key points:
One of the objectives of the SADC-PF Regional Women’s Parliamentary Caucus mandate
is to advocate and influence the participation and representation of women in elective
political and decision making positions, including advocacy and lobbying.
The objective of the RWPC advocacy and lobbying in Zambia is to influence political
parties and a broad range of stakeholders to put in place mechanisms that will increase
women’s representation in the Zambian Parliament to at least have 30% women.
The lobbying and advocacy mission to Zambia was conducted from the 5-19 August 2005.
The lobbying and advocacy mission was undertaken in terms of the SADC Declaration on
Gender Development and Norms and Standards for Elections in the SADC region.
The SADC Declaration commits SADC countries to the achievement of at least 30% (this
threshold has been increased) representation in positions of power and decision-making by
the year 2005.
In terms of the African Union (AU) Constitutive Act and Declaration and the August 2005
SADC Summit resolution, SADC countries are now expected to achieve 50-50
representations of women and men.
The Committee resolved to actively promote the 50% representation of women at
parliamentary level.
The RWPC assessment and stakeholders consultations reveal that Norms and Standards for
Elections in the SADC region was the reference document that informed the review of
electoral laws.
The RWPC was concerned that most parties claim to have incorporated the SADC
Declaration principles but this was not visible.
20 JUNE 2006 Page: 213 of 221
The Committee recommended the following:
(a) Awareness campaign about the importance of women’s political participation and
representation at all levels of power and decision-making.
(b) Effective implementation and evaluation systems to track down progress on
women’s empowerment in all spheres.
(c) Capacity development for women.
(d) Political parties to implement stated commitments on achieving gender equality
and institute intra-party democratic processes to review the mainstreaming of
gender equality.
5. PLENARY SESSIONS – KEY ISSUES
5.1 Thematic Session of the Plenary Assembly
The following presentations were made in line with the 19th Plenary Session theme‖ ―Redefining
Strategic Priorities of the SADC Parliamentary Forum to mainstream parliamentary Dimensions to
Regional Integration‖.
5.1.1 Address by the Deputy Executive Secretary of SADC, Engineer Joao Samuel Caholo
The address of the Deputy Executive Secretary covered progress and challenges in the region.
According to the Deputy Executive Secretary, In 2004, real Growth Domestic Product (GDP) of
the SADC region grew at the rate of 4.1% as compared to 3.2% in 2003. It was also observed that
average economic growth of the region was below the average economic growth of the continent
over the same period. This economic growth was due among other factors, peace and political
20 JUNE 2006 Page: 214 of 221
stability obtained in the region, sound macro-economic reforms in the SADC member countries.
According to crop production vulnerability assessment conducted in April/May 2005, 9.7 million
SADC citizens will require food assistance.
The challenges facing the region include inter alia, peace and political stability in the Democratic
Republic of the Congo, poverty, food insecurity, HIV and the AIDS pandemic, low rate of
investment, and gender inequalities.
5.1.2 Presentation by Professor Max Essex of the Harvard School of Public Health
The presentation covered progress made in the development of vaccines and other interventions in
Southern Africa. It recognised the need to conduct multiple trials with modern designs,
international cooperation and regional expertise will be critical in this regard. The presenter
advised that modern behavioural change is important to avoid the spread of the pandemic. An
emphasis was placed on the provision of anti-retroviral drugs to those infected. It was also
emphasised that Parliaments must be committed to fighting the spread of HIV and AIDS through
legislative interventions and sharing of best practices.
5.1.3 Draft Strategic Plan for the Southern African Development Community Parliamentary
Forum: 2006-2010
The Plenary Assembly reiterated its commitment to continue lobbying for the establishment of the
SADC Parliament to foster regional cooperation and integration. The Plenary also agreed to
develop mechanisms to deal with SADC matters, to facilitate monitoring and evaluation of the
budget and programmes of SADC. A call was made for the acceleration of Intra-African trade to
mitigate the unfavourable terms of the World Trade Organisation (WTO).
20 JUNE 2006 Page: 215 of 221
In addition, the Plenary Session approved the Parliamentary Leadership Centre and its work plan
including the advisory board.
The Plenary adopted the vision and mission of SADC-PF which were amended to read:
Vision: ‖A delivery focused, people centred institution that accelerates and promotes
parliamentary participation in regional decision making for the benefit of the citizens of
SADC‖.
Mission: ―To facilitate strategic partnerships within the SADC region, promote information
sharing, initiate and implement projects that enhance regional integration and promote
effective and professional parliamentary practice‖.
The Plenary Assembly also adopted the SADC-PF organisational structure as proposed by the
executive committee.
The following four (4) strategic objectives contained in the draft strategic plan were adopted.
These objectives are:
(a) Improved institutions of democratic governance in the SADC region.
(b) Effective implementation of Regional Integration Programme.
(c) Increased professional performance of Members of Parliament and parliamentary staff
under the Parliamentary Leadership Centre (PLC).
(d) Strategic Partnership and Alliances Established for Parliamentary cooperation.
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5.2 Policy Session of the Plenary Assembly
The Plenary Assembly also dealt with the following key issues:
The Plenary endorsed the PLC Advisory Board to be chaired by the Secretary General
and will include members of the Forum.
Country Reports
Countries presented written reports highlighting progress in dealing with issues that the Forum has
decided upon, covering the following issues:
o The SADC principles and guidelines for democratic elections and women
representation.
o Support for Women’s Parliamentary Caucus.
o The implementation of the SADC Parliamentary Forum Norms and Standards for
elections.
o Ratification of SADC protocols, treaties and legal instruments for purposes of regional
integration and cooperation.
o Steps taken to deal with the HIV and AIDS, including prevention and the fight against
the pandemic.
o Cooperation and participation in the Pan African Parliament activities and the African
Union and the New Partnership for Africa’s Development.
HIV and AIDS:
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o The Plenary Assembly approved a Plan of Action for national Parliaments to address
the continued increase in the rates of HIV infections.
o The Plan covered prevention, treatment, discrimination, cultural practices and the Care
of Orphans and Vulnerable Children.
Action Plan
o The Plenary adopted a work plan for January-December 2006, which included inter
alia, programmes on electoral reforms, norms and standards, the parliamentary
leadership centre, advocacy and lobbying, gender issues, and women representation,
poverty reduction and HIV and AIDS, peace and stability and site visits.
Future Plenary Sessions:
o The 20th Plenary Session will be held in Maputo, Mozambique, in June 2006.
o South Africa has been requested to host the 21st plenary session late in 2006.
TUESDAY, 20 JUNE 2006
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Assent by President in respect of Bill
(1) Children’s Bill [B 70D – 2003] – Act No 38 of 2005 (assented to and signed by
President on 8 June 2006).
20 JUNE 2006 Page: 218 of 221
2. Fast-tracking of Bill
(1) The Joint Subcommittee of the Joint Programme Committee on 20 June 2006 took the
following decision:
That—
(1) noting South Africa's international commitment to adopt special legislative
measures regarding the 2010 FIFA World Cup within specified timeframes;
(2) further noting that the 2010 FIFA World Cup South Africa Special Measures
Bill [B 13–2006] which was introduced on 6 June 2006 is to be split into
separate section 75 and section 76 Bills;
(3) in accordance with Joint Rule 216(2) the two Bills upon receipt be fast-tracked
by shortening any period within which any step in the legislative process
relating to the Bills has to be completed, but subject to public participation in
the process of the consideration of the Bills, in order for the Bills to be passed
by both Houses before 31 August 2006;
(4) for this purpose the relevant NA and NCOP committees confer on the Bills;
and
(5) the National Assembly committee finalises its consideration of the Bills by 31
July 2006 and the NCOP committee reports formally on both Bills in time for
the approved deadline to be met by Parliament.
(2) In terms of Joint Rule 216(4) this decision must be tabled in both Houses for
ratification.
3. Bill returned to Executive
20 JUNE 2006 Page: 219 of 221
(1) On 20 June 2006 the Speaker and the Deputy Chairperson, after consultation, referred the
2010 FIFA World Cup South Africa Special Measures Bill [B 13 – 2006], introduced in
the National Assembly as a section 75 Bill on 6 June 2006, back to the Minister of Sport
and Recreation, as it contains both section 75 and section 76 provisions.
4. Reintroduction of Bill
(1) The Minister of Sport and Recreation
2010 FIFA World Cup South Africa Special Measures Bill [B 13 – 2006 (Reintroduced)]
(National Assembly – sec 75) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 28593 of 10 March 2006.]
Reintroduction and referral to the Portfolio Committee on Sport and Recreation of the
National Assembly, as well as referral to the JTM for classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted to the
Joint Tagging Mechanism (JTM) within three parliamentary working days.
5. Introduction of Bill
(1) The Minister of Sport and Recreation
(a) Second 2010 FIFA World Cup South Africa Special Measures Bill [B 16 – 2006]
(National Assembly – sec 76) [Explanatory summary of Bill and prior notice of its
introduction published in Government Gazette No 28593 of 10 March 2006.]
20 JUNE 2006 Page: 220 of 221
Introduction and referral to the Portfolio Committee on Sport and Recreation of the
National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for
classification in terms of Joint Rule 160.
In terms of Joint Rule 154 written views on the classification of the Bill may be submitted
to the JTM within three parliamentary working days.
COMMITTEE REPORTS
National Assembly and National Council of Provinces
1. Report of the Mediation Committee on the Older Persons Bill [B 68B and B68D – 2003]
(National Council of Provinces – sec 76), dated 14 June 2006:
The Mediation Committee, having considered the Older Persons Bill [B68B and B68D –
2003] (National Council of Provinces – sec 76), as well as the papers referred to it, reports
that it has agreed to a new version of the Bill [B68F – 2003 (Reprint)].
The Committee notes with concern the technical errors that occurred in the processing and
preparation of the printed version of the Bill in the National Assembly. The Committee
recommends that the Presiding Officers investigate the reasons for the technical errors, and
report to the Joint Rules Committee on measures to be put in place to avoid similar errors in
future.
20 JUNE 2006 Page: 221 of 221
National Assembly
CREDA PLEASE INSERT REPORT - Insert - T060620E-insert1 – PAGES 1507-1516
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