Tag Archive | Ngoako Ramatlhodi

MPRDA Bill to be amended urgently

Some form of compromise….

coal miningIn referring back to Parliament the Mineral and Petroleum Resources Development Amendment Bill (MPRDA) and acknowledging in his State of Nation Address (SONA) that in its present form it could be damaging to South Africa’s investment climate, President Zuma and his cabinet have introduced more certainty to both the mining and oil and gas industries.

At least a year and a half delay was a guess if the suggestion that two replacement Bills were to be drafted separating mineral resources from oil and gas in the light of the fact that both have separate BEE charters.

Certainty needed

However, mineral resources minister Ngoako Ramatlhodi has agreed with mining companies and also the point put forward by Chamber of Mines that the best and fastest way forward to bring certainty to theRoughnecks wrestle pipe on a True Company oil drilling rig outside Watford industry would be to pass the Bill subject to amendments based on a new approach to the mining beneficiation issue and the matter of state “free carry” in any successful gas exploration.

Originally, on an issue raised both in submissions and by opposition parties and, even a couple of ANC MPs, the presidency has also agreed to doubts expressed whether, once signed, the MPRD Act after amendment would pass constitutional muster on the basis of the amending Bill’s passage through Parliament and the process adopted.

Section 79(1) of the Constitution empowers the President to return a Bill to Parliament for reconsideration if reservations about the constitutionality of the Bill prevail.

Mining land

Subsequently pointed out as a further reason for the Bill not beingtrad leaders signed, raised in a presidency statment issued by spokeperson Mac Maharaj, was a concern of cabinet that the Bill had to be processed through the Council of Traditional Leaders.

Parliament passed the Bill all in a rush at the end of March 2014 after much lobbying by ANC whips and despite warnings and constitutional challenges from many parties.  Nearly a year has passed since sending the proposals off for presidential assent.

The subject of the regulatory environment has not even been touched upon or has come up in the debate at this stage.

During the parliamentary recess both the Chamber of Mines and others have complained of sustained uncertainty in their industries and in the investment world.

Two issues emerged almost immediately when the President announced he was delaying his signature. The first issue was a hefty warning from mineral resources minister Ngoako Ramatlhodi who said “the implications for companies that did not meet BEE targets set out in the mining charter would be severe”, inferring that this might eventually affect the granting of mining licences. He raised, once again, the issue of employee shareholding.

“Developmental” metals pricing

Consequently, it still remains somewhat foggy what government policy was in instituting such clauses other than an overall ambition for the state to have more ownership of strategic resources in both industries and the drive by minister of trade and industry, Dr Rob Davies, to assist smaller manufacturing metals industries becoming more viable at the cost of larger industries, therefore creating more jobs, he said.

On the subject of BEE and the two different charters affected, all that has been said officially was a remark by minister Ramatlhodi “We have to satisfy ourselves that the Act meets our broader socio-economic development activities.”

The second issue to emerge after the announcement of the return of the MPRDA to Parliament was further mention by the department of energy of“Operation Phakisa”, the speed-up process as part of a co-ordination exercise with the oil and gas industry to reduce reliance on oil imports.

Fracking and renewables

On a separate issue, further statements by ministers with regard to fracking and speeding of delays in the IPP world with renewables has also emerged, overshadowed by the urgent need of an energy plan from the newly formed energy “war room”.

Whatever happens, both industries should be prepared for another round of public comment, hopefully in the first parliamentary period after the Budget…… minister of finance Nene notably mentioning nothing of nuclear interest in his budget speech.
Other articles in this category or as background
Energy War Room formed to meet crisis – Parly ReportSA
Mineral and Petroleum Resources Bill halted perhaps – ParlyReportSA
Medupi is the key to short term energy crisis – ParlyReportSA

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New SA cabinet

Who for cabinet?…

NAAfter a week of intense speculation, with the swearing in of Members of Parliament, the election of the Speaker and Deputy Speaker of the National Assembly and the re-election of Jacob Zuma as President, followed by a gala inauguration process at Union Buildings, the political and financial world held its breath until the moment arose when the composition of the cabinet was announced over the weekend.

Also in the week previous, the first seating of the National Assembly marked noticeable changes in the hierarchy of the new governing alliance party. Strategic seating arrangements displayed the fact that Cyril Ramaphosa took the conspicuous seat allocated for the Deputy President.  In this sense, the mould was cast for a new period in South Africa’s political history at that point.

Ramphosa ZumaSince his defeat by Thabo Mbeki for status in the ANC, Cyril Ramaphosa, chairman of the Student Christian Movement, former secretary-general of the ANC and first secretary National Union of Mineworkers, was deeply involved in the negotiations that led to Nelson Mandela’s release. His involvement with South Africa’s political development is extensive.  He will now bring to cabinet decisions his twenty years of business experience gained whilst remaining as a political heavyweight in waiting.

Old faces

When the seating in Parliament took place, it appeared at the time that the incumbent minister of trade and industry seemed to haveRob+Davies maintained his influence within the ANC caucus and so it was to be.

tito mboweniWith the status-quo being to some extent maintained, one would therefore not expect any major changes or shifts in terms of policy, regulations and government position of matters related to business, the economy and international relations. The “behind the scenes” withdrawal of Tito Mboweni from parliamentary lists was significant since it had been clearly rumoured that he was tipped for the position of finance minister.

If the election of Baleka Mbete as Speaker and the massive influx of ANC cadres from Luthuli House to the National Assembly areMbete,Baleka swornin anything to go by, we can expect a more controlled environment in Parliament, particularly in the light of a reduced majority and the presence of the EEF.   Such tighter control will be evidenced in the nominations of chairpersons to the various Portfolio Committees.

Also in the past week, National Council of Provinces held its first seating. Unlike the National Assembly, 80% of the members of the NCOP are new to the House. Although this House does not particularly influence national, international and economic trends, one might expect significant changes in terms of committee positions on important issues.

Thandi Modise, former premier of the North West was elected chairperson of the NCOP and who is noted for her open-mindedness and approachability.

 The final choice

neneFinally, in a major cabinet reshuffle, President Zuma, announced his choice of ministers. To the surprise of most. he promoted deputy finance minister Nhlanhla Nene to finance minister, replacing minister Pravin Gordhan. Whether minister Nene was groomed for the position or minister Gordhan, who goes to governance and traditional affairs, is needed to sort out the finances and delivery disciplines in local government, remains to be seen. The appointments are nevertheless surprising.

The size of the cabinet apparently is not an issue with either the President or the ANC Alliance.    Clearly, the issues wracking the allianceanclogo are as important as economic issues and time will tell if the appointments are a consolidation of power or a compromise.

President Zuma also confirmed businessman Cyril Ramaphosa as his Deputy President. Considering Ramaphosa’s background and position, his appointment is expected to be welcomed by investors and the private sector.   As we speculated, Rob Davies is to maintain his position as minister of trade and industry, providing some continuity for the business world despite the fact that sparks never seem to fly in this area. However, DTI can be said to have had some success.

Mining and police

Mining minister, Susan Shabangu, who had been criticised for her handling of the strike in the platinum mines now in its fifth month, wasNgoako Ramatlhodi replaced by Ngoako Ramatlhodi, a former deputy minister in the prison service. Minister Shabangu goes to the new ministry of women, part of the Presidency.

radebeThe National Planning Commission and the ministry of performance, monitoring and evaluation have been merged and will be headed by former Justice Minister, Jeff Radebe, thus becoming part of the triad with the President and Deputy President. The total shake up of the security cluster, mining and energy portfolios could be set to have an significant impact on the five month strike in the platinum belt.

Left of centre

Mzwandile Masina has been appointed deputy minister of trade and industry. If there are to be “radical changes”, as President Zuma Mzwandile Masinaanticipated, this is where changes in B-BBEE might occur. Masina was formerly the national convenor of the ANC Youth League and was recently at the centre of a controversy when referring to NUMSA General Secretary, Irvin Jim, he used bad language.

Should Masina have any hold on policy and regulation, one could witness a significant shift in policy to the left, bearing in mind minister Rob Davies is a member of the SACP.

Electric shock

tina-joemattThe new minister of energy, Ms Tina Joemat-Pettersson, emerging from her fisheries complications and other difficult personal issues under investigation, will have her work cut out to get a grip on the energy picture and will have to rely, hopefully, on the many experts in the department of energy. This is before tackling the complicated issues facing the country in such areas as Eskom sustainability, the petroleum and fuels strategy and ISMO.

The new deputy minister of finance is Mcebisi Jonas, former MEC for economic development and environmental affairs of the Eastern Cape provincial government during which time it could be said that the Eastern Cape did not benefit from his term of office.
This is a disappointing appointment.

Madala Masusku, former Mpumalanga MEC for finance, is another provincial MEC who has made cabinet as deputy minister of economic development in a key position without too much experience.

Mr Policeman

Nkosinathi-NhlekoChief whip of the ANC, Nkosinathi Nhleko, previously deputy minister of labour, seems to have been rewarded for caucusing legislation through at the last minute in Parliament at the close of the fourth Parliament and becomes minister of police, whilst incumbent Nathi Mthethwa slips down to minister Paul Matashile’s position, Pallo Jordan’s old post, at arts and culture, Matashile disappearing from the hierarchy it appears, as did Jordan as well.

Also disappearing is Marthinus van Schalkwyk, whose ministry of tourism goes to Derek Hanekom, moving from the ministry of sciencehanekom and technology.

oliphantOn the labour front, experienced Mildred Oliphant stays where she is and continues to implement the four new labour laws thus providing some sort of continuity.

With so many changes, continuity in the short term is the issue.

Start up time

There is clearly going to be a time gap with so many shuffles and structural changes and it might be months before the whole impetus of the fifth government of South Africa gains traction to deal with the economic and delivery problems facing South Africa.

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