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PIC comes under pressure to disclose

Unlisted investments of PIC queried….

matjilaWhen asked for information on how the Public Investment Corporation (PIC) had invested its funds, Dr  Daniel Matjila, Chief Executive Officer, told parliamentarians that the most he could do, even with ‘listed’ investments, was to give only names. Any terms and condition of any investment agreement could not be made public. On ‘unlisted’ investments, he held back completely.

He was then formally asked by David Maynier (DA) if the PIC had invested, directly or indirectly, any funds in any Gupta-owned enterprise. He was also asked for details of any financial implications upon the Government Employee Pension Fund (GEPF) and other pension fund assets resulting from the dismissal by the President of former Finance Minister Nene.

Confidentiality

Dr Matjila responded that the fund “could not cross the line of disclosing private information” and the members ofPIC logo.2 the Standing Committee on Finance, before whom he was appearing “should not read into his statements any insinuation that the PIC was protecting information.” He noted that he was totally aware of the fact that the PIC was under investigation for passing funds to the ANC and any such idea “was totally false”.

As far as funds to any Gupta owned business was concerned, Dr Matjila replied that the organisation stood by its earlier answers to the media that it had not invested directly in any Gupta owned enterprise. Following this remark, ANC MPs stood by Dr Matjila and told Opposition members that the PIC could not become “entangled” in such questions which were veiled with gossip and insinuation. It was the word “directly” used by Dr Matjila that caused the question.

Sub-judice

yunus carrimThis point was emphasised by Yunus Carrim, Chairman of the Committee, that most of the questions that were concerning Mr David Maynier should only be dealt with after the investigation of the possibility of ANC funding by the PIC had completed its course. He said that Dr Matjila was bound by circumstances to say nothing.

Present at the standing committee meeting was Deputy Minister of Finance, Mcebisi Jonas, who said the reporting process of h a pension fund to the committee should not get side-tracked with politically motivated questions. Maynier had asked this time about the possibility of “indirect” investments by PIC of any Gupta businesses.

On the issue of the effect of the ‘9/12 issue’, as referred to by Dr Matjila when Nhlanhla Nene was fired, he reported that the impact of this event had caused “significant losses” to the PIC portfolio. The GEPF lost R95bn, the Unemployment Insurance Fund lost R7bn and the Compensation Fund had lost R3bn – all managed by PIC and the event had been most worrying.

However, he said that the performance of all the funds had been subsequently excellent in the sense that recovery was achieved quite quickly – in fact “the recovery represented more than all the PIC funds lost within those two days of crisis.”

Information withheld

David Maynier (DA) remarked that funding was still shrouded in mystery and that he was “extremelydavid maynier uncomfortable” that the PIC would give no information at all on the “unlisted” investments of PIC.

Reporting generally, Dr Matjila said the fund had benchmarked itself and its operations compared favourably with “top private sector investment companies”. The GEP Fund “had shown over five years a 14.3% interest factor compared, he said, to a global median of 9.9% and a local investor median of 10.1%.” It had invested approximately R33.9bn in numerous portfolios aimed to drive transformation and create jobs, he said.

He told parliamentarians that the PIC “had invested approximately R33.9bn in numerous portfolios aimed to drive transformation and create jobs.” He said any risk taking was carefully managed and remained on the conservative side. Furthermore, he assured MPs that PIC did not take any risk that could not be “managed”.

Listed investments growing

Dr Matjila said that for all investments, the total allocation was now R400bn and “partners were always sought that would make positive returns”. ‘Listed’ investments in the last five years had grown from R495bn to R892bn recording a growth factor of 12.5% per annum.

vodacom logoThe PIC always held to principle, he said, that there was always a need for BEE compliant businesses to be considered so that it attracted a portion of government expenditure. ‘Unlisted’ investments, nevertheless, had large share of the market holdings, he said, with roughly R55 billion allocated to this form of investment. The total allocation for PIC investments, including GEPF and UIF, was approximately R400bn.

On investment policy, Dr Matjila said that his team liked to look at partnering with other stakeholders that added value and knowledge to make sure that maximum benefits and input from any arrangement were received.

Downstream SMME outlets

On SMME development, Dr Matjila said that PIC was “in discussion with groups such as Spar and Woolworths to ensure that small business was represented in their current growth patterns.” He said it would seem important for PIC to participate further in the Barclays Africa “sell down”. PIC, he noted, had invested in many international and local companies with assets within South Africa “in order to drive economic growth and increase job creation.”

Dr Matjila turned finally to ‘unlisted’ investments and said PIC had a slate of roughly R55bn to work from. Such investments were usually international, he said, and were not necessarily BEE compliant. David Maynier (DA) asked whether the GEP Fund management was “comfortable with the fact that a confidentiality clause existed on so many investments and the fact that disclosure to Parliament was denied.” Some ANC members also mentioned disquiet on this issue. Maynier said he intended to pursue the issue of non-disclosure of “unlisted” investments further.

Previous articles on category subject
Retirement savings subject of treasury probe – ParlyReport
Treasury calls for “Twin Peak System” with two financial bills – ParlyReportSA

 

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Immigrant visa problems dominate debate

sam mototabaNorthern agriculture seen as visa defaulter…….

sent to clients 15 June…..Sam Morotoba, DDG of Public Employment Services, Department of Labour (DOL), told parliamentarians that it was DOL’s view that visa immigration policies for South Africa must involve cutting down on the flow of unskilled immigrants into the country.

From the nature of the debate, it was evident that DOL was more concerned on the creation of jobs for South Africans and not the issue of visa granting to specialist cases, a fact which gained the support of most  MPs.

Sam Morotaba said that amongst the massive inflow of undocumented persons crossing what is some 4,000kms of border there were those that did find work, had no entry visa and were totally exploited in the process. Most of the border was totally “porous”, he said.

More facts emerged during the particular Labour Portfolio Committee meeting when both DOL and the Department of Home Affairs (DOHA) jointly made presentations on immigration policy.   The practical aspects of the issue of work permits to foreigners, normally called “temporary visas” were discussed.

Not asylum seekers

Over 70% of the non-documented labour problem occurred in Limpopo Province, according to DOL figures.    It was also shown that there were approximately 300,000 illegal immigrants in the country at present, whether they were working or not.   Refugees from war and refugees seeking asylum were a completely different issue, Morotaba said, and they represented a much smaller number, .

sa border beit bridgeSpecially conducted “raids” on farms and businesses in the Northern areas and which were carried out by the few inspectorate staff that were available to DOL were frustrated by the advent of the cell-phone.    Messages were simply sent ahead by immigrant employees advising that a “raid” was in progress and workers who had no documentation but wanted the work simply went into hiding.

Some employers told their employees not to come to work when appointments with DOL inspectors were made. “Raids”, in conjunction with South African Police Services,were extremely difficult to undertake unless the matter was serious enough to consider that a possible breach of the law had taken place.

Traffickers

The problem was exacerbated, said Morotaba, by traffickers that postured as labour “sellers” and went from farm to farm offering cheap labour in the form of immigrants without documentation looking for work.    Inspectors had resorted to “raids” on Friday “paydays” and also at night.  Employers were generally unhelpful; gaining access to farms was difficult; and the success rate in finding illegal immigrants was therefore low, said DOL.

Farmers remained the major culprits, it became apparent – an issue which has been the main theme of chairperson Lumka Yengeni of the Portfolio Committee on Labour for a number of years.

DOL said that there were more than five million legal immigrants in the country and the laws of South Africa demanded that all workers be protected, whether illegal or not, in terms of the Constitution. This had to be borne in mind, they said.

Desperate people

However, underpaying desperate people who had no temporary visa and housing them in filthy conditions, was farm labourersquite a different matter and was a contravention of all international principles. This was the issue facing DOL.

Also, some companies and employers simply did not want to test the local market for labour suitability or could not be bothered to try, DOL said, and also probably also wanted to avoid UIF participation, collection and payment and few farmers got involved in the cost of skills training.

Home Affairs briefing

The main agenda of the portfolio committee meeting in question was the subject of the nature of relationships between DOHA and DOL. Also their observations were requested on the current position with regard to delays in issuing visas and DOHA was asked to give a technical explanation of where the visa issuance process was headed.

DOHA was represented Acting Chief Director for Visas, Home Affairs, Modiri Matthews, supported by Ronnie Marhule. Modiri Matthews said his department was mandated by the Immigration Act to deport those unlawfully in the country.

visa stampHe made it clear that the Immigration Act stated that a temporary residence visa could be granted only for the categories of Study, Treaty, Business, Crew, Medical Treatment, Relatives, Work, Retired Persons, Exchange and Asylum.

It was only when a permanent resident permit was issued that the holder was entitled to live in South Africa on a permanent basis, with all the rights and obligations of a citizen except the right to vote and use an SA passport. This was standard in most countries, he said.

Visa classification

There were three kinds of visas – Corporate, General Work Visa and a Business Visa.   Most farming entities and general business fell under the category of corporate visas, where a requested number of foreigners was needed by an employer.

Proof had to be supplied that despite a diligent search, the applicant could not find suitable SA citizens or permanent residents to occupy the positions; the job description had to be given; and it had to be conditional that salary and benefits paid would not be less than standard agreed emoluments.

Home Affairs confirmed that feedback indicated that the current system is too cumbersome due to DHA’s lack of capacity to handle the volume of applications; the fact that “standard operating procedures” within the department were ambiguous; that many officials were insufficiently trained and turnaround around times were too slow.

Speeding things up

Modiri Matthews promised parliamentarians that new electronic systems were in place to ensure a more secure system of interaction between DHA, DOL and Department of Trade and Industry (DTI) – the latter being responsible for issuing the quota or number of visas issued, all of which had expiry dates. The plan envisaged is that once the permission is issued by DTI, for DHA to take 30 days and DOL no more than 8 weeks to process a visa request andvisa with hand DHA to issue or decline.

When asked by MPs whether or not Home Affairs had a tracking system on visas granted but which had expired, whether working or not, Modiri Matthews responded that they had and the number of expired visas currently stood in the area of 30,000, which were on the tracking system.

Waiting period

Present at the meeting were also Ronnie Marhule, Acting Chief Director of Permits and Visas and Phindiwe Mbhele, Director for Corporate Permits and in question time, Angie Loliwe of the ANC complained to them that if the application were with DTI for even only 2 weeks, then the DOL process was added for thirty days and with Home Affairs adding about 8 weeks, there was not really any possibility of waiting less than three months for any one application to be processed at the very best. This was too long, she said.

Both Directors stated that there were “pressure points” mainly related to capacity to deal with the volumes of applications and this mainly affected “corporate” visas to farm workers. They told members of the Labour Committee that they were trying to deal with this, especially where urgent business applications were concerned.

They reminded MPs that with nearly 300,000 illegal immigrants, systems such as an “expired document” process was a time consuming business and DOL “had their work already cut out with the farming situation and inspections.”

One track discussion

Ninety per cent of the meeting time was spent discussing farm labour problems in the light of ANC problems with illegal labour entry to the North. Modiri Matthews said that there were only 11 centres in South Africa handling visa applications. There was a new office in Sandton, Johannesburg, he said, specifically geared to business needs.

To the irritation of some of the ANC members it was confirmed that the offices in East London and Port Elizabeth had been closed.   There was only one office for the whole of KwaZulu-Natal.   However, Matthews said there was was a specific plan to open two new business offices -presumed to be Cape Town and Durban.

Previous articles on category subject
Home Affairs gets tough on expired visas – ParlyReportSA
Home Affairs gives reasons for visa changes – ParlyReportSA
Agri-SA gives views on minimum wage – ParlyReportSA

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International Arbitration Bill to replace BITs

Arbitration Bill gets SA in line with UNCTRAL …..

global trade graphicThe tabling of the International Arbitration Bill in Parliament will see ‘normalisation’ on a number of issues regarding arbitration between foreign companies operating in South Africa. This is if the Department of Trade and Industry (DTI) policy recently expressed in Parliament by Minister of Trade and Industry, Rob Davies, is to be understood.

The Bill, as is the case with all international legal matters, will  be tabled by the Minister of Justice and Constitutional Development according to a government notice recently published.      Not all investors are necessarily impressed however, some preferring state-to-state bilateral trade treaties (BITs).   South Africa is now adopting the broader approach adopted by some international countries, including China.

Allowing arbitration outside of local courts

As far as is understood, as non-legal observers, formal agreement on the allowance on arbitration proceduresarbitration according to agreed procedures between trading parties will be instituted and local court procedures can be avoided if so wished.  The fact that South Africa has also very recently announced the launch of the China Africa Joint Arbitration Centre (CAJAC), “symbolising the deepening economic relationship between China and African economies”, seems to provide a background to the proposed Bill.

The route now to be followed by South Africa, it appears, is one of a number of limited ways that can improve access to justice services for companies doing business outside the country and foreign companies operating in South Africa and this seems to be the basis of DTI thought on the matter.

Down the track

Legal advice is better followed but a draft Bill it would now appear is being concluded in parliamentary terms.

unictral 1Such arbitration methods have terms which are non-country-specific.  In terms of adoption, the standards of ethical conduct devised by the UN trade body, the UN Commission on International Trade Law (UNCTRAL) and its manifesto, according to the background of the draft Bill, have been included.

BITs on way out

International arbitration can then be operated,it is proposed, between companies or individuals in different states usually by including a provision for future disputes in a contract with UNCTRAL. This is the next stage of the DTI’s moves to finalize the policy of discontinuation of bi-lateral trade agreements (BITs) with individual countries. The whole issue is based upon disputes that may arise and the new Bill now before Parliament follows the new route, which may mollify those parties complaining of BITs discontinuation.

More importantly DTI states, it lines South Africa up with the Model Law on International Commercial Arbitration, which has been adopted by UNCTRAL.   This model law is not binding but individual states may adopt such legislation by incorporating it into their own domestic law, which is now proposed.

It is understood that the current legislation could bind South Africa as a UN member of UNCTRAL but the rules to be adopted are a separate issue at the moment and will govern individual companies in any dispute that may arise under the new circumstances.

Again, specialist advice should be sought on this whole subject.

Previous articles on category subject

Protection of Investment Bill finally passed – ParlyReportSA

Changes to Protection of Investment Bill – ParlyReportSA

Promotion and Protection of Investment Bill re-tabled

Promotion and Protection of Investment Bill opens up major row – ParlyReportSA

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Here it comes again…. the Traditional Courts Bill

Dubious motives ……..

justice minister masuthaMinister of Justice Michael Masutha is to re-table once again the Traditional Courts Bill setting up a parallel system of justice in rural areas,  he says.   Minister Masutha was appointed by President Zuma in May 2014 and this same Bill, known to have the President’s wishes behind it, was withdrawn last year in the form it was proposed. It was thought by many to have been scrapped.

Whether this is an election ploy or whether a draft will actually appear from the Ministry of Justice for public comment remains to be seen. Should it appear, in whatever shape and form, it will have to be debated as a Section 76 Bill by all nine provincial legislatures. At least five would have to approve it for the Bill to move forward from the NCOP to the National Assembly.

Gender insensitive

It was said at the time by the media when President Zuma originally withdrew the Bill that it had been proposedtraditional chiefs
as a trade-off with traditional leaders to get rural support. The Bill then was perceived as chauvinistic by many and was certainly frowned up by legal professionals as a distinct attempt to set up two legal systems and was therefore constitutionally unacceptable.

Lulu Xingwana, at that particular time Minister of Women, Children and People with Disabilities, said the proposals “took the issue of women’s rights back into medieval times”. Her ministry was subsequently closed down.

Unexpectedly, the incumbent Minister of Justice, before his 2015/6 budget vote debated just before Parliament went into recess, told a parliamentary media briefing that he intended to re-introduce the Bill as “a priority”. He added. “We are working with representatives from traditional leadership and civil society to take this process forward, with a view to introducing the Bill in June.”

Majority provinces voted against

butheleziDr Mangosuthu Buthelezi, in his capacity as leader of the IFP, said of the old Bill when it was debated by all nine provinces, that five provinces had put in votes to scrap the proposals entirely, two would not make a decision and only two were in favour. Even then, said Mangosuthu Buthelezi, the two in favour did not support all the Bill’s provisions. In the end, he noted, the Bill did not even get past parliamentary committee stage in the NCOP.

“Its demise marked a major victory for rural people who had opposed it”, he said.    Mangosuthu Buthelezi’s view was that the Bill would bring oppression by traditional and unaccountable leaders many of whom were apartheid appointees. “It would have meant also the resuscitation of some of the boundaries of the old Bantustans”, he added.

Four tiers of govt

Chief Buthelezi also noted at the time that the Bill would mean that chiefs would become a fourth tier of government, something the country could ill afford. The Minister of Justice’s next move should be to gazette a draft for public comment.

Previous articles on category subject
President Zuma determined to push Traditional Courts Bill – ParlyReportSA
Zuma goes for traditional support with expropriation – ParlyReportSA

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Parliament closes on sour note

Oversight role threatened…..

editorial…..

We have to admit it was not a happy Parliament that closed on 25 May 2016. Whilst we try to ignore newspaper parliament mandela statuescandals and listen to the more serious debate of those trying to get things right in the interests of the country, it was indeed a troubled Parliament that went into recess.

We have delayed our report to catch the last of the meetings before the election period. Usually, where there is a forthcoming election, whether national or provincial, there are many unreasonable statements from politicians. However, it seems that this time, there are lot more issues and certainly a lot more abrasive statements than usual.

Politics aside

Many such matters have involved the question of relationships with Parliament – the institution that is supposed to stand apart, like the judicial, from political machinations. Separation of these powers is critical to the process of halting a democracy from becoming a dictatorship, so it becomes important not to enter this space. However, quite clearly some members of the Cabinet, even perhaps the Presidency, are trying to by-pass Parliament on the question of oversight.

Although this is strongly denied on every occasion when the subject comes up, it becomes more and more difficult to tell whether government officials are having pressure applied on them when it comes to telling the truth, the whole truth and nothing but the truth to Parliament.

Hence, also it is difficult to discern true government policy in the long term as distinct from Cabinet putting out fires in the short term. We will be glad when this period in South African politics comes to an end, which hopefully it will.

Parliament and its system

Mbete,Baleka sworninIt would seem to us, a fact which is supported by most commentators, that the party list system is one of the culprits in this area – a system a whereby a member of Parliament stays in service, complete with salary and pension, according to his or her adjudged service to the cause.

Secondly, all directors general of government departments are, in most cases, party appointments and currently every chairperson of every committee in Parliament is a member of the ANC Alliance. It is the integrity of that person, therefore, that matters and this, we afraid to say, seems not to be coming through from the Cabinet. Every country gets the government they deserve (Joseph de Maistre).

All is not as at it appears

It came as a shock to many to learn that what had been listened to in Parliament, such as statements and presentations from directors general and CEOs of utilities or SOEs representing massive structures such as Eskom, PetroSA, Central Energy Fund, Police Services, Defence (and even PIC), that all was not quite, shall we say, totally accurate – even in expensive powerpoint presentations and in long convoluted answers to the Auditor General. The trend has been a painful experience to observe.

The cowboys, such as Lucky Montana of PRASA – now disgraced, were relatively easy to spot. Quite clearly his parliamentary reports were dubious and the presentations he made were an attempt to cover up foolish mistakes and bad management but there had remained a feeling of enthusiasm to succeed in his case. Just somebody in charge who shouldn’t have been.

However, in the case of “pressure coming from the top”, there are the odd stories continually emanating from the energy debate and matters related. These are disquieting, as are matters relating to broadband allocation, the aviation industry and land reform coupled with traditional affairs and matters related to expropriation.

Divided

Aside from the unfortunate chaos in the National Assembly debates, meetings which we attend occasionallyparliament 6 only from a business viewpoint – usually budget issues, the evident atmosphere of dissonance between Cabinet and Treasury is clearly affecting and hindering the parliamentary oversight role and translating itself down to the parliamentary working portfolio committees.

A poor relationship with Treasury badly affects the “engine room” of Parliament and makes a mockery of financial control.

We can only attend, make précis on what is said and report without opinion but we can say, quite honestly in our editorial, that currently we are not impressed by the seemingly cowed body language of the public service on certain issues. Witness the decisions on the output of the SABC and although we do not report on this as it bears no business brief, it somehow manifests a Cabinet gone wrong.

We shall continue to be watchful, particularly in the area of new legislation that affects business and declared changes in government policy.

Previous articles on category subject
Parliament under siege – ParlyReportSA
Shedding light on Eskom – ParlyReportSA
PRASA gets its rail commuter plan started – ParlyReport

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Budget 2016: more on amnesty

 sent to clients 8 April….

Deadline extended for amnesty…..

In the 2016 Budget presentation, which included an amnesty offer on undeclared overseas funds, it was claimedpravingordhan by the main opposition party that that this year’s financial plan may not have been bold enough to avert a downgrade, top of the mind remaining possible future tax hikes, particularly VAT – on which the jury is still out – and the ballooning public service wage bill.

Among the many other points raised in this year’s budget was the remark by Minister of Finance, Pravin Gordhan, that “The principles of honesty and fairness needed to be embraced by all South Africans in order to overcome the challenges.”

The amnesty plan

To follow this up with action, Treasury have made a second offer for all those with undeclared assets abroad to get on the right side of the law without penalties and now have extended even that deadline because more time is often needed for applicants to prepare submissions.

“In acting together”, the Minister said, “we can address declining confidence, the retreat of capital and we can combat emerging patterns of predatory behaviour and corruption.” On this issue, he offered amnesty on undeclared offshore income and assets and another chance of the regularisation of offshore affairs.

Very little reaction occurred in parliamentary benches, possibly because the implications meant little personally but in having had to sweep the floor for further tax revenue inputs, any idea that works is a good one and a “voluntary disclosure programme” (to give it it’s technical name) could raise between R2bn to R4bn, once applied. Clearly also the Minister is looking for more reaction to increase funds resulting in the deadline being moved along the calendar.

Budget papers

budget 2016This offer was included with the usual raft of Bills the Minister tabled before he commenced his Budget speech and a few days later debated by the Standing Committee on Finance. They are “money” Bills and cannot be altered by Parliament, only commented upon.

Gordhan warned in his speech that “in terms of the new global disciplines on exchange of information between countries time was running out for tax dodgers who still have undeclared assets outside South Africa.”

Details

There are a number of conditions of course.

SARS will only include 50% of the total amount used to fund the declared acquisition assets before March 2015 in the taxable income column, as it were, and this will subject to normal tax. All refers to items from March 2010 onwards as taxable income at normal rates. Investment returns prior to March 1 will be exempt. Interest arising from tax debts as a result of the voluntary disclosure will only commence from March 2010.

Bearing in mind that relief is also granted from the appropriate penalties that would have applied and any criminal action not taken, this say experts, is a pretty fair offer. Levies will be applied of between 5% and 10% according to whether the funds from proceeds are repatriated or not, which levy must be paid from outside external funds. On levies generally, there are a number of special conditions according to circumstances.

Not just business

Minister Gordhan made it quite clear that the offer was coming from both the Treasury and the Reserve Bank. He said that deceased estates and beneficiaries of discretionary trusts can participate in the programme if they deem and if they admit that the funds were destined for them. Resident South Africans are included in the amnesty.

The grace period was given originally in the Budget for the period October 1 to March 31 of the current government financial year but in hearings before Parliament later, the Standing Committee on Finance listened to business submissions on the Budget and “recommended” to Treasury that this is impractical given the amount of time it takes to come up with all the necessary information and submit, bearing in mind, as we say, Parliament cannot touch a money Bill. Treasury obviously heard this

Public submissions worked

It was chairperson of the Finance Standing Committee, Yunus Carrim, who pointed this out to Treasury after listening to public submissions, so at least he will find that more applicants will probably be encouraged to submit.
Previous articles on category subject
Budget vote speeches: Out of touch with each other – ParlyReportSA
Minister Nene maps survival route – ParlyReportSA
Parliament votes on 2014 budget – ParlyReportSA

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Broadband allocation on its way

Minister wants BEE ownership in broadband…..

sent to clients 20 March….As if nobody knew already, the Minister of Telecommunications and Postal Services,cwele Dr Siyabonga Cwele, told Parliament that broadband allocation is perhaps the biggest regulatory bottleneck in the South African deployment of wireless technologies.     He said, at the same time, he wants to see Black owned companies have their fair share of allocation.

However, both he or his department (DTPS) and the regulatory body ICASA seem to be at odds on the system needed to allocate the spectrum, particularly in the area of setting aside sufficient spectrum to support Black broadband development and ownership specifically.    The fight to deliver urgently more high-speed bandwidth to South Africans generally is being slowed down it seems by this difference in opinion expressed.

global broad bandPresumably, the delay is all about whose satellites we use – Chinese, Russians or the US accompanied by an intelligence risk – or do we go via the masts owned by the private sector. Minister Cwele probably suspects any such deal with the private sector will not serve black interests in the proper manner. Digging trenches and laying down optic line cannot be any kind of answer.  In telecommunications all is political, rather like the nuclear issue and the similar problems faced by department of energy – the political structure overlays the practical answer.

Dr Cwele has now said the final policy paper is on its way to Cabinet.

One on one

In an extraordinary meeting with the Portfolio Committee on Telecommunications and Postal Services, both parties explained their views with the views of MPs to be added to what has become a national debate dominated to an extent by Minister Cwele’s views.

The background to the impasse is that the Electronic Communications Act empowers the Minister to issue policy directives but ICASA does not necessarily have to accept such. To distill the views of each into a few words is difficult but clearly the driving principle behind Dr. Cwele’s approach is an allocation which favours black transformation in control of spectrum whereas ICASA prefers an allocation more on an “auction” basis, whereby bidders not only name their price but then add their additional contributions to Black upliftment and general social development.

cell phone mast graphicVodacom, MTN, Telkom, Cell C and Neotel have in the past sunk enormous sums into the development of communications structures but the current delays in allocation are, according to reports, hurting the industry but their BEE structures are shallow, say insiders.

Dedicated view

Industry sources said before the meeting “Minister Cwele is seized with the need to transform the sector to ensure meaningful Black participation but spectrum allocation cannot be granted in the same way as the granting of concessionary mining licences, for example, if Black empowerment is the goal.”

The principles of the allocation process as stated by DTPS are indeed noble, as quoted in the relevant draft Policy Paper before Parliament, which state that the aims of the allocation policy are to:

• Promote the effective and efficient management of spectrum to ensure
  agility, flexibility and adaptability in spectrum administration
• Reduce bureaucracy and streamline processes for spectrum assignment
• Support the attainment of the national broadband targets set out in the
  South Africa Connect programme at speeds and in the time frame outlined
• Provide clarity on the treatment of spectrum in instances where demand exceeds supply
• Set aside spectrum for use on an open access basis with joint private sector investment
• Support the provision of, emergency services, safety and security and sector-specific operations

Milder

In the parliamentary debate, Sipho Mjwara, Acting DG, DTPS, was more conciliatory and said the spectrum was a public resource belonging to all people and DTPS had to apply itself on how to deal with this for the benefit of all. Currently the spectrum was operating on a first come, first serve basis but this principle certainly did not benefit all. He said there were “barriers to entry for small companies and artificial monopolies helped little.”

This was followed by comment from the Deputy Minister, Prof Hlengiwe Mkhize, who said it was “more logical” not to shrink away from exercising the mandate of DTPS to follow the NDP on broadband roll out. “The pillars that need to be in place must include those that had previously been excluded”.

Money must talk

Pakamile Pongwana, CEO of ICASA, responded that from an international perspective it was no longer the policy,icasa ceo as had been the case in the past, of getting maximum fees into the fiscus but the needs of complete coverage of the country. It was a combination of coverage and fees, Pongwana said.

Germany had raised money from the spectrum divide, he said, but they had included a proviso that bandwidth would only be released when rural areas had been covered. He added that other countries were already looking at 5G networks while South Africa was still looking at LTE use. “We have to stop playing catch-up”, he said.

War of words

From the debate between all groups, DTPS, ICASA and parliamentarians, it became obvious that there is an ideological battle going on. The industry sees the independence of ICASA as regulator at stake, industry sources say. The Minister said he had looked at the idea of the allocation of “set asides” for high demand spectrum but added “the Department wants the whole pie to be available for all South Africans. We are in a situation where a duopoly owns 80% of the spectrum.”

However Pongwana concluded, “The allocation of spectrum was the country’s policy choice and the assignment would be by the Regulator and be in line with procedures. While there was long term licensee allocation there was short term spectrum allocation and the Department wanted to give certainty to licensees.”

Money, money, money

moneyOn the question of infrastructure spend, DDG for ICT Infrastructure in the DTPS, summarised government views in the meeting when he said that in a country like South Africa with infrastructure and access gaps, the question had to be asked whether the country wanted to raise money as its main goal. He said it was more about service and reaching all South Africans as part of the NDP but in an equitable manner.”

Whether it would be for free or go to the highest bidder were questions the DTPS was considering as it looked at all approaches. It would probably not be for free, he said, but there had to be a compromise where small companies are not at the mercy of big companies “because of market power relations.”

The Minister concluded that all in DTPS were listening to the views of the public and industry.

Ministerial clusters.

The next step before submission of the new Spectrum Policy to Cabinet during March was to consult with the particular clusters as part of the ICT Policy White Paper procedure. Once the Spectrum Policy had been approved by Cabinet and gazetted as part of the ICT White Paper, ICASA could proceed with the licensing process on the agreed basis.
Previous articles on category subject
Lack of skills hampering broadband rollout – ParlyReportSA
Overhaul of broadband policy underway – ParlyReportSA

Posted in BEE, Communications, Facebook and Twitter, Finance, economic, LinkedIn, Public utilities, Special Recent Posts, Trade & Industry0 Comments

MPRDA Bill returned to National House of Leaders

Some sort of movement on MPRDA at last……..

sent to clients 18 March…..In a parliamentary document recently published it is shown that the Mineral and Petroleumcoal mining Resources Development Amendment (MPRDA) Bill has been sent on a token trip through the National House of Traditional Leaders for comment in thirty days and then to be returned to the Portfolio Committee on Mineral Resources.

This is probably for some temporary major changes to be made to the Bill after debate until such time as two new Bills, one for the mining industry and one for the oil and gas industry, are drafted in time to come.     No doubt this movement was initiated as the result of the recent meeting between President Zuma and business leaders.

The extraordinary affair of the MPRDA has been going on since the first draft of the Bill was published for comment in December 2012 regulating extensively the exploitation of minerals and resources and the legal movement and transfer of resource rights.    Both industries have their own and very different BEE charters and the single Bill deals with both and many empowerment factors.

Core issues


Two issues
of note were that in the new Bill as originally proposed the Minister was to form a new “entity” which will “promote onshore and offshore exploration for and production of petroleum” and which will also “receive, store, maintain, interpret, add value to, evaluate, disseminate or deal in all geological or geophysical information” relating to petroleum and gas exploration matters.

Secondly, sections 80 and 84 of the anchor Act were to be amended to provide for State participation in any successful minerals and gas/oil development exercises carried out by the private sector, the Bill providing for a State right to free carried interest in all such exploration and production rights.
Specific details regarding the extent of the “free carry” were to be published in a government gazette, a figure of 20%susan shabangu being bandied about at the time.   “We are on the path of changing the mining and petroleum industry in South Africa, whether you like it or not,” said Mineral Resources Minister Susan Shabangu earlier in 2014.

Strong views

Accompanied by a public outcry and strongly worded objections from private industry, foreign companies and other institutions, the Bill reached Parliament virtually unchanged.    Again, brought up before the Portfolio Committee on Mineral Resources in public hearings, were strong objections from Opposition MPs and institutionalised industry, neither of whom minced their words, describing the Bill, in one case, as a “self-destruction tool of South Africa’s investment climate.”

Nevertheless, the ANC Alliance continued on their course and the Bill was hammered through in a rush at the end of the parliamentary term, the ANC summonsing through its whip sufficient numbers.

In the background, as the Bill went through Parliament, was the fact that the Department of Mineral Resources and the Department of Energy were only just completing their split apart. Crossed wires were the order of the day.

Nothing happened

Since that date the Bill has sat in limbo; a new Mineral Resources Minister Ngoako Ramatlhodi Ngoako Ramatlhodiagreeing shortly after with the with mining companies and the Chamber of Mines that the best and fastest way forward to bring certainty to the mining and oil drilling industry would be to pass the Bill subject to amendments based on a new approach to the mining beneficiation issue.

Secondly, the matter of state “free carry” could be dropped.

At the time it was guessed that at least a year and a half would be the delay if two replacement Bills were to be drafted, separating mineral resources from oil and gas in the light of the fact that both have separate and very different BEE charters. The quicker alternative to bring some certainty was that temporary amendments to the existing Bill should be made.

Despite this, the Bill has just stuck right there, in the President’s office, until recently, now moving back togas exploration sea Parliament because, as is suspected, business leaders in their recent discussions with President Zuma must have drawn his attention to the continuing lack of lack of certainty in both industries because of unknown legislative changes about to occur and an apparent inability by Cabinet to give clear policy leads.

So where are we?

So as far as the MPRDA Bill is concerned, there is movement in the goods sidings but whether any train is about to start on a journey can only be known when a meeting is scheduled by the Portfolio Committee on Mineral Resources. Yet another minister is the train driver.

Previous articles on category subject

 

 

 

 

 

 

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US schedules AGOA trade checkups

Feature article sent to clients 10 March….. 

AGOA trade agreement qualified…….. 

For the first time in the case of all African countries, theusa sa logo AGOA trade rules under the agreement for South Africa will be subject to a regular “out of cycle review” by the US. Normally any such agreement holds for ten years without review but the US wishes to check regularly that in South Africa the “quid pro quo” is being adhered to.

Parliament has been the scene for a number of briefings both on trade and international relations in the last two weeks and AGOA has been top of the list.

Also to emerge is the fact that one of the driving factors behind South Africa’s insistence on partnering with Brazil, Russia, India, China to form the BRICS trading bloc appears to be a fear of become totally reliant on trade agreements with any one country and particularly USA, in the case of the AGOA agreement.

This is despite the fact that the EU remains South Africa’s main trading partner, followed by the US.

The full monty

nomaindia mfekethoIn a briefing to the Portfolio Committee on International Relations a full team appeared from the Department of International Relations (DIRCO) headed by Deputy Minister Noamindia Mefeketu, together with Dave Malcomson, Chief Director of Regional Organisations; Ms Yoliswa Maya, Deputy Director General, Americas, Europe and the Caribbean; and Mr Arnold Lyle, Counsellor for DIRCO on the USA on agreements with BRICS, China and Pacific Rim countries.

In attendance for some of the time was Minister of International Relations, Maite Nkoana-Matshabane and a broad picture emerged of South Africa’s international trade policy, particularly with reference to the AGOA and how South Africa arrived at what most consider a favourable outcome.

Too many strings

Nkoana MatshabaneMinister Nkoana-Matshabane prefaced the meeting by saying the developing world had been borrowers from the IMF and the World Bank with conditions attached to loans “so stringent that they would never be able to develop.” South Africa, she believed, “was part of a progressive movement to find alternative funding sources and different trading partners.”

Relationships with the USA have emerged time and time again and, when pushed at the end of the briefing, the Minister, when asked by Opposition members in the case of the AGOA who needed it most, she replied “Perhaps SA needed the trade with the US more than they needed SA’s trade”. However, she was insistent that the country needed at the same time to find other trading partners to avoid being pressurized.

“If the AGOA had lapsed it might have been terrible at first with the job losses and we would have gone through some very bad times. But we would have overcome this. As a result of this event, we have learnt that the threat in terms of our own priorities will always exist”, the Minister said. “South Africa must now see itself as the priority and therefore look for other opportunities”, she concluded.

Going the BRICS route

Starting with a briefing on BRICS, DIRCO’s Dave Malcomson said the BRICS agreementdave malcomson backed up
the African Union programme for “continental infrastructure programmes” and from a domestic dimension, “all participants faced similar developmental challenges which needed infrastructure build programmes.”

The New Development Bank (NDB) had been launched with headquarters in Shanghai for the moment, subject to Contingent Reserve Arrangement (CRA) funding which South Africa had contributed to, the CRA funding being referred to in Minister Gordhan’s Budget presentation. He asked parliamentarians to note that despite a bad start with all BRICS countries experiencing lower growth, the combined GDP of BRICS was “likely to exceed that of the US by 2020, if not sooner”.

The NDB was expected to approve its first projects in April 2016. Malcomson referred to a “Host Country Agreement” between SA and the NDB which would be finalised soon. He also said that in place was an equal shareholding agreement with other BRICS countries in the NDB.

There was also to be a board of governors for policy issues; a governance board of directors; and the NDB would have initially 100 positions – the first presidency being from India; the CEO coming from China; the CFO (ex-Minister Nene?…ed.) being from South Africa; and with Brazil handling the position of risk CEO.

Sino summit

On Chinese relationships, following a successful summit staged in Johannesburg by South Africa in December last year with 48 heads of state attending, the Forum on China-Africa Cooperation (FOCAC) established a line for R60bn for development in Africa. Trade discussions between SA and China were extensively being built upon, said DIRCO’s Arnold Lyle.

iora logoAs far Indian Ocean Rim Association (IORA) was concerned, this was heavily linked to Operation Phakisa and the development of oceanic trade possibilities. IORA was focused on fisheries and aquaculture; renewable ocean energy; seaport and shipping development; seabed exploration and minerals, marine biotechnology and research and development. Tourism was also included.

IORA was primarily led by India, Australia, Indonesia and South Africa, with countries such as the UAE also involved. South Africa would lead IORA for 2017- 2019, strategic objectives being the “blue economy” and maritime peace and security sustainable development. There were considerable synergies, Malcomson said, and he quoted skills training of artisans in ship building as an example.

In answer to questions, he said the main difference between FOCAC and BRICS was that FOCAC was focused as a unit on the African continent whereas in the case of BRICS, South Africa was the representative for the African continent.

AGOA specifically

motor vehicle plantMeanwhile, the importance of AGOA was still evident and emphasised when a summation of was made to MPs by Yoliswa Maya of DIRCO. She pointed to the fact that the AGOA created over 62,000 jobs in SA and 100,000 jobs in the US. In 2014, 21% of SA’s exports to the US were exported under AGOA whilst 16% was under the EU’s “Generalised Scheme of Preferences” (GSP), which allows developing country exporters to pay sometimes less or sometimes no duties on their exports to the EU.

SA’s exports classified as purely under the AGOA amounted to $1.75bn whilst the country exported over R23bn worth of vehicles to the US in 2014, which supported some 30 000 jobs in Port Elizabeth and the Gauteng Province. SA also exported agricultural products to the US worth $175m, which represented 2.1% of SA’s total exports to the US. For the period January to November 2015, SA enjoyed a trade surplus of R2.3bn. Ms Maya did not compare figures with the EU or individual EU countries.

Debate

Responses from the Chairperson of the International Relations Committee Moses Masango and othermoses masango 2 ANC MPs seemed to be “playing to the gallery” of Ministers throughout the meeting. At one point Chair Masango said that the ANC-led government and the DIRCO team should be congratulated for making the BRICS and NDP bank “a reality” bearing in mind that, in his opinion, the International Monetary Fund and the World Bank mainly funded infrastructure projects “to keep colonialism alive in Africa”.

This seemed to reflect a growing belief amongst ANC members that the USA was interfering in SA political affairs and Masango remarked that “like the Roman and the British Empires, the American Empire hoped to achieve the same economically”. He said the question had to be asked what China, India and the US actually wanted in Africa. He said that South Africa had to be cautious.

The standard of debate was uplifted when the implications for SA were elaborated upon by Ms Maya of DIRCO when she said as far as the AGOA agreement was concerned, President Barack Obama issued a notice of suspension on the 11 January 2016 and a deadline of 15 March 2016 was set for imports of US poultry to be duty free into otherwise duty free access for South African agricultural products was to happen.

The rest of the story was well known, she said, and chicken products were about the go into the retail trade with meat products still to arrive. President Obama’s concurrence appeared to be a formality.

Between the lines

However, Deputy Minister Mfeketu said the US was “increasingly advocating for a post-AGOA trade relationship with Africa as a whole on a Free Trade Agreement basis” and US trade representatives were to submit a report to the US Congress in June 2016 regarding future trade relationships between Africa and the US.

The Deputy Minister said that South Africa was not short of poultry, had not asked for it and said the US appeared to have decided that if conditions were not met regarding poultry and certain meats, any other benefits would cease.

Other responses

Santos Kalyan of the DA said DIRCO were in fact saying that “that the US was beating SA with a big stick”. However, she pointed out that the Minister of Trade and Industry, Mr Rob Davies, had signed the

courtesy iol

courtesy iol

agreement and therefore South Africa had entered into the agreement willingly in its own overall interests.

She asked DIRCO whether in their view the US was having problems with South Africa’s trade policies and international policies. Ms Maya admitted that the US was also in disagreement with Private Security Industry Bill and Intellectual Property Bills and said that the US also “had some problems with BBBEE”.

Mr D Bergman (DA said “ The truth of the matter was that if SA lost the AGOA because of this issue then SA would lose out.” Deputy Minister Mfeketu conceded that DIRCO agreed that South Africa needed to trade with the US more than the other way around. She repeated the fact that South Africa had accordingly to look for other opportunities.

Free trade agreements

DIRCO concluded that during a meeting of the African Ministers of Trade at the Africa-US AGOAFlorizelleLiser Conference in August last year, Department of Trade and Industry (DTI) had indicated that SA is not ready to enter into a Free Trade Agreement (FTA) yet with the USA and will consult with business and labour before formulating. Already the Assistant US Trade Representative for Africa, Ms Florizelle Liser, has visited SA to consult with the DTI and various other stakeholders on this view.

Previous articles on category subject
Plenty in the way of AGOA agreement – ParlyReportSA
EU and AGOA still important to SA, says govt – ParlyReportSA
AGOA : Parliament this week 3 Nov 2015 – ParlyReportSA
Private Security Industry Bill comes closer – ParlyReportSA
SACU trade split is EU bullying, says Minister Davies – ParlyReport

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E-tolling: OUTA takes it to Parliament

Committee unsympathetic to OUTA…

sent to clients 20 February…. Tough words were used in Parliament when the Opposition to Urban Tolling Alliance (OUTA, now called Organisation Uniting against Tax Abuse) presented its views on e-tolling twayne duvenageo the Parliamentary Portfolio Committee on Transport, particularly of the idea to fund SANRAL of of the fuel levy.  In the end Wayne Duvenage, OUTA Chairperson, was told by the Committee that the only way forward was that OUTA and the SA National Road Agency (SANRAL) get together and negotiate a compromise.

The view of ANC members was perhaps more clearly demonstrated by one MP who stated that the user-pays system had to be retained, since the poor could not afford the costs of freeway development being absorbed into the fuel levy, as was proposed by OUTA.

She explained quite simply that if you could afford a car licence and petrol in the first place, one must pay for e-tolls, otherwise the e-tolling would be added to the price of sugar and soap through the fuel levy because of distribution costs. At the time, members were not aware of the forthcoming fuel levy increase in the Budget.

No either, or…

Whilst ANC members agreed with OUTA that the Gauteng e-toll scheme as currently imposed had not been a great success, it was considered unlikely that Parliament would even consider halting the programme as such and would not encourage a switch to levy funding. A way of making e-tolling a success had to be found, they said.

The main platform of OUTA’s complaints was the issue of poor public engagement and an “arrogant imposition” of the programme which had been badly thought out, they said.    Wayne Duvenage claimed that the argument that an increase in road levies would hurt the poor was hypocritical since government has themselves had increased the fuel levy by 92% over 8 years.

Free ride

OUTA held that e-tolls amounted to extortion and the fact that none of the 46,000 exempt Gauteng taxis had fitted e-tags suggested that the scheme was being shunned, even when free.

nazir alliThey reminded MPs that the High Court had set aside the interdict granted to SANRAL that further discussions had to take place before e-tolling commenced on the basis that SANRAL could start but a door had to be left open for a collateral challenge from society. This was now the case.

OUTA complained also that and that there were no adequate alternatives to easing congestion as required and that the Competition Commission had found the relevant construction companies guilty of collusion.     Yet earlier, SANRAL had claimed that there was nothing untoward about construction costs before the Commission’s findings. MPs said they wanted to know more about this and there would be a follow up by Parliament.

Compliant motorists double penalised

Currently, Duvenage said, compliance stood at about 9%, which was vastly unfair to those paying. (This meeting took place before it was discovered that in all likelihood the remaining 91% had the slate of outstanding fines wiped clean).

Duvenage warned that coupling licence renewals with e-tolling compliance “was an invitation for public resistance” e-toll gantryand not encouraged by OUTA since it would destroy the basis of the AARTO Act and the foundation of road governance.

OUTA called for the e-toll principle be halted in practice overall and that an “exit strategy” be planned for existing contracts.      OUTA was reminded by Chairperson Ramakatla that the Commission of Enquiry into e-tolling had not advised that the user-pay principle be discarded. The response from OUTA to the chair that it was not the right tax mechanism to be used and was also unfair. Users were already paying for road use through fuel levies and taxes.

Talking only route

M de Freitas (DA) said it seemed at the time likely that Gauteng as a Province would oppose e-tolling and to head off the licence fees confrontation, OUTA and SANRAL had to appear at the same meeting and talk of compromise to avoid this happening. Such a confrontation would be disastrous for the country at a difficult time.

OUTA defended themselves by saying that they did not support anarchy and had not stated ever that they were in agreement with e-tolling, their argument being that it was not the right mechanism at all, so it would difficult to find a compromise on e-tolling as a programme.

OUTA said the system used was not a “boom down” system but a straight drive through and “the long-distance model had to be separated from the e-tolling model.”
Wayne Duvenage added he never went as far as Mpumalanga but the e-toll system charged him for freeway building in that part of the world. However, he said, he was already paying for un-tolled Mpumalanga roads through his normal tax, in fact any roads.

Fuel levy out of equation

Chairperson Ramakatla told OUTA that although agreement had been expressed that people had to pay for road use, the OUTA response seemed to be saying something else and their argument that there had to be sole reliance on the fuel levy was not acceptable.

If there was something wrong with the e-tolling system in their view they should make suggestions how to get it right but the fuel levy option was clearly out.

Whilst OUTA had submitted that there was a lack of consultation in 2007, and this was probably true, he said, the lack of consultation was later corrected and that argument no longer applied and this should be borne in mind if a resolution to the problem was to be found by stakeholders.

He said that Parliament would decide on its view on the e-toll issue in further debate.

Previous articles on category subject
Bumpy road for e-tolling Bill continues – ParlyReportSA
Transport Laws Bill on e-tolling amended – ParlyReport
Parliament says Transport Bill on e-tolling will go forward
Transport Laws Bill enabling e-tolling tabled – …

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Protected Disclosures Bill: employer to be involved

New Protected Disclosures Bill ups protection….

sent to clients 21 January……The Portfolio Committee on Justice and Constitutional Affairs will shortly be debating the recently tabled Protected Disclosures Amendment Bill which proposes a duty or responsibwhisleblower policyility on employers to explain and inform employees on the procedures for dealing with a whistle-blower’s disclosure and consequent issues surrounding.

The new Bill also makes it a clear requirement that employees should be informed by the employer that they are “entitled to exercise certain remedies if they are subjected to an occupational detriment as a result of having made protected disclosures”. Clearly, intimidation of the whistle blower is still the object of concern and still an issue.

The term “occupational detriment” is now to encompass any potential “detrimental behaviour suffered by those who previously fell outside of the scope of the Act”. It is also proposed that the definition of “disclosure” be amended.

Definition to include “workers”

An important feature of the new Bill is that the definition of a whistle-blower is also extended to in include “workers” rather than just employees. This therefore includes a person who has “worked” on the premises, i.e. to ensure that independent contractors, consultants, agents and persons working or who have worked for the State are included.

The Bill also seeks to re-define the expression “occupational detriment” to include an employee or worker being subjected to any civil claim for the alleged breach of a duty of confidentiality or a confidentiality agreement arising out of the disclosure of a criminal offence.

A clause states that if “occupational detriment derived from disclosure is proved in a court of law, employers will have to pay compensation or damages to the employee or worker.” Whistle blowers will be excused from criminal justice, it seems.

Law reform overview 

The Mlaw booksinister states in the objectives of the new The Protected Disclosures Amendment Bill, now to be debated in Parliament, that the changes emanate from the South African Law Reform Commission’s report on protected disclosures. The Bill will “empower employees to approach the court for relief in the face of detrimental behaviour shown towards them by employers” and “employees and workers will also be immune from civil and criminal liability flowing from a disclosure that reveals criminal activity.”

False whistle-blowing

However, it is to be noted that in reverse, as it were, should an employee knowingly or believing the information not to be true, disclose false information they will be guilty of an offence and on conviction is liable to a fine or to imprisonment for a period not exceeding two years or both.

The draft of the current Bill was published by the Minister for public comment in July last year, the purpose of the Act itself being to set down the procedure for disclosing unlawful behaviour in the workplace by both private and public sector employees and how such disclosure is to be protected.
Previous articles on category subject
Protected Disclosures Act: More whistleblower cover – ParlyReportSA

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Home Affairs gets tough on expired visas

Fines for expired visas not working…

sent to clients 21 Jan…  Now that Parliament has resumed it will not be long before for the Portfolio Committee on Homevisa rules Affairs  considers public comment and input on amendments to the Immigration Act re-defining what the Department of Home Affairs (DHA) terms as “inadequate sanction on foreign persons who remain in South Africa after their visas have expired”.

The Committee is responding to the fact that it is the Minister’s opinion that fines on foreigners who overstay their welcome were not serving as a sufficient deterrent to cease the regular practice of non-residents to continue their stay beyond the expiry date of their visa.

Troublesome clause

Section 30 of the 2002 Immigration Act has already been amended a couple of times regarding either the wording itself, which has not stood up in court, or, in the opinion of the DHA is now insufficient in itself as a deterrent to the practice.

The wording of the last amendment had led to various interpretations and to quote the government gazette on the issue, “some holding the view that a foreigner must overstay a number of times to be declared undesirable while others hold the view that one instance of overstaying would result in a declaration of undesirable.”

Another way

visa with handThe issue has now been approached in a different manner, which as far as can be established would deny the holder ever returning to SA unless agreed to by the Minister. The proposed changes amend the anchor Act so that foreigners who overstay after the expiry of their visas do not qualify for a port of entry visa, a visa, admission into South Africa or a permanent resident permit during the relevant prescribed period.

This would seem to establish that the offending foreigner has no status as a visa holder at all when it expires and that person immediately becomes an undesirable entrant by definition as any conditions of entry no longer apply. The implications of being declared an undesirable entrant under these circumstances will be debated.

Written comment expired

Once any comments are received, such will be part of a debate as to whether the amending Bill should be accepted as it stands, any amendments agreed upon made, voted upon and passed to the National Assembly for “reading”. Written comment addressed to Parliament was stated as being until 20 January 2016. Whether any hearings were agreed upon is awaited.
Previous articles on category subject
Home Affairs gives reasons for visa changes – ParlyReportSA
Home Affairs fails on most targets – ParlyReportSA

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Further labour law changes proposed

New labour law on male parental leave…. 

sent to clients 20 Dec…….Cheryllin Dudley MP, an ACDP parliamentarian, has introduced a Private Member’s Bill to Parliament proposingcheryllin dudley amendment to SA labour laws on the general issues of parental issues; adoption of the child and proposals to allow parental leave to both parents with a list of benefits.

Public comment expired on 25 December and being a private members Bill, the invitation came from Parliament and specifically the Secretary to the Portfolio Committee on Labour, for comment. The Bill is entitled the Labour Laws Amendment Bill, a name which is bound to attract attention

MPs themselves are allowed to propose legislation direct to Parliament without reference to the particular government department affected. The Speaker of the House has, by procedure, assented to the tabling of this Bill.

Happier families

Bill seeks to amend the Basic Conditions of Employment Act, 1997, so as to provide for parental, adoption and commissioning parental leave to employees; to provide that a collective agreement may not reduce an employee’s entitlement to parental, adoption or commissioning parental leave and amend the Unemployment Insurance Act. It also provides for the right to claim leave and parental benefits from the Unemployment Insurance Fund.

The issue applying parental leave to “all parents” is obviously proposed in order to include a wider definition to those providing male parental care in terms of leave. The issue of gay adoptive relationships is not included in the actual wording (nor would an ACDP member suggest this) but the purpose of the Bill is apparently not selective as to whom the parents are but rather to significantly expand the recognition of parenthood in general at the workplace.

Family values first

mum dad and babyIn an explanatory memorandum attached to the draft Labour Laws Amendment Bill, the proponent explains that the Bill is primarily trying to get paternity leave legislated as part of its “policy on family values”, which stresses the importance of fathers in families.

It is proposed that any couple can decide which partner takes the 10 days of parental leave and which one takes a standardised two and a half months, cutting this down from four months as allowed under the Basic Employment Act.

One assumes, therefore, that the ACDP, has skirted the issue of gay relationships by accommodating the issue by proposing that all paternity leave would apply to all relationships in a heterosexual relationship but apply equally to one of the partners in a same-sex civil union.

The Bill will go through the normal legislative process, the Department of Labour’s submission therefore being a critical one during parliamentary hearings to be called in due course.

Labour in turmoil

No doubt COSATU and PIC will be more awake to making submissions than was in the case of the Financial Sector Regulations Bill (Twin Peaks) which vitally affected labour conditions insofar as government service and private sector on retirement funds, annuities and pensions, the Act now being signed and claimed as “sneaked” through – as if a change recommended in the 2014/5 Budget could possibly have been.  

Go to http://parlyreportsa.co.za/finance-economic/tax-legislation-for-parliamentary-debate/ for this subject, now in national debate, having passed through the parliamentary arena.

Previous articles on labour category subject
Deliberations reaching final stage on labour laws – ParlyReportSA
Labour Relations Act changes passed – ParlyReportSA
Labour committee ignores strikes – ParlyReportSA
Labour : nobody at top biting the bullet – ParlyReportSA

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Minister Brown wants utility shareholder management 

Shareholder Management Bill could kill cosy jobs…. 

sent  to clients 20 Dec…..Public Enterprises Minister, Lynne Brown, reports that she is to introduce, as aLynne Browndraft, the Shareholder Management Bill as part of a plan to introduce more leadership ability and some form of continuity for the state owned enterprises (SOCs) under her control. This includes Eskom, Transnet, Denel, SA Express, Alexkor and Safcol.

Maybe start of something big.

Whilst troubled SAA is now an independent, falling under National Treasury for the moment. Providing President Zuma makes no more changes, Minister Pravin Gordhan is set to sort out National Treasury itself and challenge the management style of his old stomping ground, SARS.. How much come out of the Cabinet Lekgotla is critical.

The problem children

PetroSA logoMeanwhile, PetroSA is in real deep water, the entity falling under Central Energy Fund (CEF) and which reports itself to Department and Energy (DOE). But at least the PetroSA problem is now in the open with somebody obviously having to take over the reins and sort the mess out, probably CEF itself.

Oddly enough there are people in CEF who know exactly what the problem is but once again politicians pushed experts in the wrong direction, it appears.

In addition, the Passenger Rail Association (PRASA) is very much on the slippery slope and, together with SANRAL, both present highly contentious transport issues, are now in the hands of to untangle

Public Enterprises comes to the party.

Minister of Public Enterprises, Lynne Brown appears to be getting the senior management of her portfolio undereskom control and whilst there could possibly be power supply problems at Eskom she says, because “machines can break down unexpectedly”, the leadership is there, as is the case with Denel.

Minister Brown recently reported at an AmCham meeting in Cape Town that there are around seven hundred SOCs, an extraordinary fact, but bearing in mind the fact that South Africa is reputed to have the largest head count in public service per population count, this would appear quite probable.

On the road again

With Deputy President Cyril Ramaphosa chairing an Integrated Marketing Committee, which will hopefully designate which entities should remain SOCs and those which should be absorbed back into their relevant departments, there appears some hope with regard to containing the ballooning public service machine which has characterised President Zuma’s presidency.

Hands off appointments

An essential element of Minister Lynne Brown’s plan is to remove the appointment to the boards of the entities under her domain away from Ministers, including herself, to a shareholder management team that creates a leadership operational plan for all SOCs and appoints, through due process, a tightly run appointment system.
A brave proposition indeed but it does indicate that Minister Brown is her own person.

Whilst the proposals might look like state control, in fact it is a clear signal that government may have heard the message that the current system of Ministers appointing board members is not working and is one of the reasons leading to what the auditor general calls “useless and wasteful expenditure”.

On the drawing board

The Shareholder Management Bill, Minister Brown said subsequently in Johannesburg, will first need a concept paper (perhaps she means a White Paper) and such could be released after the Cabinet Lekgotla in February, with an intention of introducing such as system by the end of 2016.

Minister Brown said that she herself as a Minister would therefore be excluded from making appointments in her own SOCs for a start. Perhaps this system can be applied to all forty-seven government departments and agencies, suggested a questioner bu the Minister would not be drawn into matters outside of her brief.

Leadership needed

During the same address, she added that Eskom was “not out of the woods” yet and there was still not sufficientlyne brown 2 electricity to facilitate economic growth but this would change. Minister Brown said none of the entities under her control “would be approaching the National Treasury with begging bowls.”

One small step

No doubt, as far as confirmation of an appointment is concerned, the Minister involved will still have to “approve” any selection decision by the independent team of specialists but it is worth watching the outcome of the debate on the shortly-to-be tabled Broadcasting Bill, if only to see if the appointment of inept senior appointments can be halted or reversed.

What has come out of the Eskom, PRASA and PetroSA issues is that a person who has no right to be in a position of leadership, or worse one who has supplied fraudulent qualifications, leads to frustration and anger by those with genuine skills and high academic qualifications lower down the ladder and at the coalface.

This is in the space of government service where technical skills are located and badly needed and it is hoped that Minister Lynne Brown has more of these “eureka” moments.

Previous articles on category subject
PetroSA on the rocks for R14.5bn – ParlyReportSA
Central Energy Fund slowly gets its house in order – ParlyReport
Shedding light on Eskom – ParlyReportSA

Posted in Electricity, Facebook and Twitter, LinkedIn, Public utilities, Special Recent Posts, Transport0 Comments

BEE : Black Industrialist Policy ready to go

DTI with further Black industrialist plan…..

The Black Industrialist Policy is now in place engineered by the Department of Trade and Industry (DTI andBEE image approved by Parliament. It was submitted to Cabinet by Trade and Industry Minister, Dr Rob Davies and approved in early November. The purpose of the policy, the Cabinet says, is to focus on growth and competitiveness of Black-owned enterprises.

The plan is designed to “facilitate the meaningful participation of Black-owned and managed companies within industry” and is another extension to DTI’s Industrial Action Plan (IPAP). It extends, Minister Davies says, the NDP and President Zuma’s nine-point plan laid out in the 2015 State of Nation Address.

More Black control, more money

The scheme offers a cost sharing grant with the DTI, ranging from 30% to 50% to approved entities to a maximum of R50m. The value of the grant in terms of any proposal will depend on the level of Black ownership and management control and must be for capital investment and other support measures such as working capital.

Minister Davies said in his media briefing relayed on the parliamentary precinct that a number of private banks have already approached DTI prepared to partner with government on such an initiative. He said the idea was “to unlock the industrial potential that exists within Black-owned and managed businesses through deliberate, targeted and well-defined financial and non-financial interventions.”

DTI, he said, particularly wanted to “speed up the entry of Black industrialists to enter strategic and targeted industrial sectors and value chains.” According to Minister Davies, South Africa will not be able to industrialise to maximise growth “unless it simultaneously includes the Black industrialist on a sustainable basis.”

It all comes back to manufacturing

Rob-DaviesDavies said that the only route for future of the economy was to build the manufacturing sector and the inclusion of the black industrialists had to be encouraged. The DTI has earmarked R1bn of seed capital to assist the Black industrialists to raise the necessary equity required to access the private sector/banking market to access debt funding. This capital would be complemented by funding from developmental finance institutions.

He added that while incentivising the inclusion of the Black industrialists in the manufacturing sector, the parties involved “needed to be committed, willing to take risks and be willing to look for long-term returns and not short-term rents.”

” This policy proposes focused efforts to facilitate inclusion and participation of Black industrialists in manufacturing activities, with an understanding that more equal societies tend to grow faster than those that are unequal,” said the Minister.

Previous articles on category subject
SA’s economic woes not BEE, says DTI – ParlyReportSA
25.1% is maximum BEE control, says DTI – ParlyReportSA
DTI does flip flop on BEE codes – ParlyReportSA

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Overall energy strategy still not there

Feature article………….

DOE energy strategy in need of lead 

From closing parliamentary meeting….sent clients dec 15….   South Africa’s energy strategy problem is as much about connection as it is about the integration of supply resources, said Dr WolseyDr Wolsey Barnard Barnard, acting DG of the Department of Energy (DOE), when briefing the parliamentary select committee on DOE’s annual performance before Parliament closed in 2015

Of all the problems facing South Africa on the energy front, probably the most critical is the lack of engineering resources facing South Africa at municipal and local level, negatively affecting economic development and consumer supply, he told parliamentarians.

He particularly referred in his address to the fact that the main problem being encountered in the energy supply domain was the quality of proposals submitted by municipalities for supply development in their areas.     In many cases, he said, the entities involved totally lacked the technical skills and capacity to execute and manage projects and there was also, in many cases, a lack of accountability with reports not being signed off correctly and in some cases technical issues not resolved before the project started.

Doing the simple things first

Despite all the queries from Opposition members on major issues such as fuel regulation matters; nuclear development and the tendering processes; the independent power producer situation with clean energy connection problems and issues surrounding strategic fuel stocks; again and again (DOE) emphasised that nothing was possible until South Africa developed its skills in the area of energy (electricity) connections.

electricity townshipsThe quality of delivery in this area was “extremely poor”, Dr Barnard said, inferring that without satisfactory delivery of energy the burning issues of supply became somewhat academic. Localised development at the “small end” of the energy chain had to be developed, he said. This lack of skills was exacerbated by the “slow delivery of projects by municipalities and by Eskom in particular”, he said.

Eskom  in areas not covered by local government.

Dr Barnard said that there was a lack of accountability on reports provided; poor expenditure by most municipalities evident from the amount of times roll overs were called for and high vacancy rates in municipalities. Consequently, he said, the overall Integrated National Electrification Programme (INEP) was producing slow delivery of electrification projects requested of both local government and Eskom against the targets shown to MPs.

In probably the last meeting of the present Parliament before its recess, DOE spoke more frankly than has been heard for some time on the subject of its short, medium and long term energy solutions, including a few answers on the problems faced.

Frank answers

DOE explained it had six programmes focus which were outlined as the various areas of nuclear energy; energy efficiency programmes; solar, wind and hydro energy supply; petroleum and fuel energy issues, regulations and development electrification with its supply and demand issues.

DOE specifically mentioned that the Inga Treaty on hydro-power had come into force in the light of theinga fact that conditions to ratify the long term agreement between SA and DRC were satisfied and commercial regulations could begin in order to procure power. This would change the future of energy of solutions. This was a long terms issue but targets for the year on negotiations had been met.

Opposition members were particularly angry that a debate could not take place of nuclear issues and whether South Africa was to procure reactors or not. It was suggested by the Chair that maybe the outcome of COP21 might have given more clarity but MPs maintained that to make a decision DOE, as well as the Cabinet, “must know the numbers involved”.

DOE maintained silence on the issue saying as before that enumerating bid details would destroy the process. It was assumed by the committee at that stage that the then Minister of Finance must be grappling with the issue but MPs wanted an explanation to back up President Zuma’s State of the Nation address on nuclear issues, complaining that nobody in Parliament had seen sight of Energy Minister Joemat-Pettersson nor heard a thing on the issue.

Full team minus nuclear

Present from DOE, in addition to Dr Wolsey Barnard, Deputy DG and Projects and Programmes were Ms Yvonne Chetty, Chief Financial Officer; DG Maqubela, DG of Petroleum Regulations and DG Lloyd Ganta, Governance and Compliance.

On solar energy, DOE said some 92 contracts had been signed in terms of the IPP programmes. Forty of them were now operating producing some 2.2 megawatts of energy at a “cheap rate” when on line and solar germanythe grid being supplied but it became more expensive when not being taken up. Dr Barnard explained that South Africa was not like Germany which was connected to a larger EU “mega” grid in Europe where it both received and supplied electricity.

SA’s system, he said was rather a “one-way supplier”, solar energy being made available only when needed by the grid. But as SA grew economically, things would change.

He commented that the new solar energy station in Upington had not yet been completed but shortly it would not only be supplying energy “when the sun was shining” but, importantly, be able to stored energy for later use. This made sense with the purpose of the IPP programme, he said.

The big failure

On the issue of the PetroSA impairment of R14.5bn, subject raising again the temperature in the meeting, DG Lloyd Ganta of DOE explained that the PetroSA impairment had happened mainly for two reasons.
The first was that PetroSA had made a loss in Ghana to the value of R2.7bn, primarily, he said, due to the fluctuations in the price of oil, the price falling from $110 per barrel to $50 at the time shortly after their entry and at the point of the end of the first quarter.

Project IkwheziThe second reason was due to losses at Project Ikwhezi (offsea to Mossgas) where volumes of gas extracted were far lower than expectation, the venture having started in 2011. At the end of the 2014/5 financial year, only 10% of the expected gas had been realised. When parliamentarians asked what the new direction was therefore to be, the answer received was that engineers were looking at the possibility of fracking at sea to increase the disappointing inputs.

The financial reports from Ms Chetty of DOE confirmed the numbers in financial terms making up the loss,

Dependent on oil price

Acting DG Tseliso Maqubela then stressed that nothing could not change the fact that South Africa was an oil importing country but the country was attempting to follow the direction of and promises made on cleaner fuels and it had been decided to continue with the East coast extraction.

In terms of the NDP, DOE said that South Africa clearly needed another refinery for liquid fuels but

refinery

engen durban refinery

whilst an estimated figure of R53bn had been attached to the issue some time ago for the financing of such, the issue of upgrading existing plant had not been resolved with stakeholders.

Oil companies, he commented, had said that if the government were not to pay for this in part, especially in the light of fuel specification requirements also required to meet cleaner fuel targets set by international agreements signed by SA, the motorist would have to foot the bill as the country could not import clean fuel as such to meet all demand.

More refining capacity

“A balance has to be found with industry and a deal struck”, he said, the problem being that the motorist was at the end of the fuel chain and such a call would affect the economy. He said that possibly the refinery issue could be approached in a phased manner and at perhaps a lower cost.

In the meanwhile, cleaner fuels were a reality and already some traders had applied to the DoE for licenses to construct import facilities, one in Durban and one in Cape Town.

If traders were to bring in large quantities of clean fuels, he said, this would represent a complete change in the petroleum sector and an energy task team, made up of government and main stakeholders was at present putting together a full report on cleaner fuels and a strategy for the future.

LPG a problem

lpgThe Liquid Petroleum Gas (LPG) situation was different, he said, since in this area there was not enough production and import storage facilities and it was a question of short supply therefore to the market – a problem especially in winter.

Both propane and butane, the main constituents of LPG are used in the refining process in the far more complicated process of straight petroleum fuel production and with the economies of scale that have to apply to South Africa, this resulted in a high market gate price and insufficient quantities, he said.

Unfortunately, LPG was becoming very much the energy source of preference with householders,especially poorer homes, hence the pressure on government to find some way of introducing LPG on an a far larger scale and at a lesser price. The impression was given that LPG “got the short straw” in terms of production output numbers.

Nuclear non-starter

Again when the subject came round to nuclear matters, no officials present from DOE were in a position to answer MPs questions on why eight nuclear power stations should be necessary, if nuclear was indeed a necessity at all, and whether the affordability had been looked at properly – the chairman again suggesting that the matter be put off until reappearance of the Minister of Energy in the New Year.

Gas on back-burner, as usual

Finally, on questions of gas and fracking, DG Tseliso Maqubela said that government “was takingmozambique pipeline a conservative approach” inasmuch that any pipeline from Northern Mozambique to South Africa was not under consideration but that plans were afoot to expand existing pipelines from that territory in the South.

On fracking, as most knew he said, a strategic environmental assessment had been commissioned, basic regulations published and also the question of waterless fracking was a possibility, now being investigated.
Previous articles on category subject
MPs attack DPE on energy communications – ParlyReportSA
Eskom goes to the brink with energy – ParlyReportSA
South Africa at energy crossroads: DOE speaks out – ParlyReport
Gas undoubtedly on energy back burner – ParlyReportSA
SA aware of over-dependence on Middle East, says DOE – ParlyReportSA

Posted in Electricity, Energy, Facebook and Twitter, Fuel,oil,renewables, LinkedIn, Mining, beneficiation, Public utilities, Special Recent Posts, Trade & Industry, Transport0 Comments

Expropriation Bill tops parliamentary agenda

Expropriation Bill to be voted on ….

Sent to clients 4 January….The Expropriation Bill is now carried over into this year’s first parliamentary termcronin2 because of the earlier strike of parliamentary workers, still not fully resolved. The Bill originally provided for the “expropriation of property for a public purpose or in the public interest, subject to just and equitable compensation.”

What defines “a public purpose”, “property” and “the public interest” have been the subject of five weeks of hearings and debate in the Portfolio Committee of Public Works. Reference to the Constitution has been constantly made.

The Bill, considerably refined in some aspects, is expected to be passed quite early in the new parliamentary year as part of a personal determined drive by Deputy Minister of Public Works, Jeremy Cronin.

Behind the Bill

Minister Cronin has attended each and every portfolio committee debate, all the hearings and responded for the most part to Opposition questioning and the rejection, to varying degrees, to changes of some of the proposals contained in the Bill and accommodating others.

The State Law Advisor and various parliamentary legal advisors have been attending all meetings since their advice was constantly being sought during discussions in the clause-by-clause debates.

A major issue to be debated was whether this Bill could be “trumped” by BEE legislation, a trumping proposal for BEE legislation to trump other legislation having being proposed in different forums. It appears that this is now the case.

The Bill has achieved a “B” version – in other words there being so many amendments that the entire Bill has had to be re-printed and tabled, this now being the version parliamentarians are working from.

Luthuli House query

The fact that the expression “subject to just and equitable compensation” was removed by the ANC from the long title of the “B” version of the Bill has led many Opposition members to suspect the motives of the ANC in supporting many of the amendments made during the closing passage of the Bill. This issue will probably be the first to be debated when Parliament re-opens.

Until now, Deputy Minister Cronin has been going to extreme measures to explain that the main purpose of the Bill is to assist Eskom in its drive to equip the utility with the tools to enable it to connect more grid lines to under supplied industrial areas. However, the recent change has re-established a lack of trust by opposition members, particularly those representing the farming lobby, that this is really the policy behind the Bill.

Previous articles on category subject
Expropriation Bill grinds on – ParlyReportSA
Expropriation Bill phrases could be re-drafted – ParlyReportSA
Zuma goes for traditional support with expropriation – ParlyReportSA

Posted in Land,Agriculture, LinkedIn, public works, Special Recent Posts, Trade & Industry0 Comments

Special cabinet statement might correct damage to SA

Editorial…..

At last, a sensible special cabinet statement……

Sent to clients 15 Jan…On 13 January, a Special Cabinet Statement was issued and, as compared to previous irregular missives, the word “special” indicated some hope.   Instead of just containing the usual reasons for having to rejoice on certain public holidays, details of the passing of MK operatives and certain Bills approved, the latest document was full of economic facts and financial fiscal information placing a positive spin on the current economic gloom. At last, an acknowledgement that there is a hand on the tiller.

Clearly there has been a palace revolution, if only in this sphere alone.

As the Cabinet Lekgotla is planned, Parliament also prepares to receive it’s parliamentarians all fresh from the respective political party get-to-gethers. A lot has changed since they all parted company and quite likely a lot more is to change before MPs gather for their first meetings.

No doubt the EFF will try to make a circus out of things but nevertheless the show will go on.    However, EFF or not, it is becoming more and more difficult to sort out between political comment, which is not our focus, and the mechanics of State policy and its direction, oversight on financial issues and legislative alerts that affect business and industry.

Bad four days

Rob-DaviesRed lights are flashing in all camps, not least of which is the fact that it is difficult to tell who did the most damage to South African markets – China or President Zuma. In parliamentary terms, the Portfolio Committee on Trade and Industry seems determined to stand by SACP Minister of Trade Industry, Dr Rob Davies, in all matters dealing with BEE and trade agreements- as does DTI itself – and the Public Works Portfolio Committee seems unable to wear down SACP Minister, Jeremy Cronin, on issues regarding the Expropriation Bill.

Similarly, Lumka Yengeni’s Portfolio Committee on Labour Committee has no hope of a good outcome when it ordered, in the last session, an end to the shambles and confusion in Minister Mildred Oliphant’s Department of Labour, another Kwa-Zulu appointee of President Jacob Zuma.

Always a problem

Finally, despite some excellent MPs from all parties sitting in the Portfolio Committee on Energy, the vague report backs made to them by Department of Energy is leading to a sense of frustration in that particular Portfolio Committee which is not effective either as a result. In the area of good communications, Minister of Energy, Tina Joemat-Pettersson can only be described as a menace.

The good news is that stalwart ANC Joanmariae Fubbs remains Chairperson of the Trade and Industry Portfolio Committee  and holds the ship steady with her disciplines. SACP executive Yunus Carrim stays as Chairperson of the Standing Committee on Finance and one wonders if he will see eye to eye in view of his ideologies with Minister Pravin Gordhan.

Overlooked as well

A Jacob Zuma appointee, Ebrahim Patel of COSATU fame but a hard worker and very leftist, remains Minister ofebrahim patel Economic Affairs but even he was overlooked for Minister of Finance when the President came up with name of David van Rooyen, who, to be quite frank, we had great difficulty in recalling his presence in Parliament over the last few months. A close shave but costly.

Back onto legislation. Whatever happened to the Private Security Industry Bill nobody knows but one hopes that the President was not using it to play silly games with the Obama administration on the AGOA issue. Maybe it gets discussed at the Lekgotla. Maybe not.

Politics ahead of economics 

In the meanwhile, one hopes that the message is got through at the Cabinet Lekgotla that what the President says vitally affects each one of his citizens and that that the private and personal politics being played out at the moment are particularly damaging to the business of Parliament and its relationship with commerce and industry.

Just as importantly, there has to be a better understanding in government departments when reporting to Parliament why business institutions need clarity of policy to gain investment confidence.

opening parliamentParliament is an important and independent tool of democracy in the fight against autocracy but so many departments seem more in awe of the auditor general than they are of the need for answers to parliamentary questioning and attempts to get the truth.

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