Post Cabinet Briefing 11 December 2014
Post Cabinet Briefing 11 December 2014
Post Cabinet Briefing 11 December 2014
From the outset, Cabinet would like to clarify the misperception that President Jacob
Zuma has refused to answer questions in Parliament. Cabinet also noted efforts by
Deputy President Cyril Ramaphosa to interact with political parties in the National
Assembly following chaotic scenes recently.
The Constitution of the Republic of South African stipulates that the President is
accountable to Parliament.
accounting to Parliament. He has been answering written and oral questions posed to
him by the members in both the National Assembly and the National Council of
Provinces (NCOP).
The President went to orally answer questions in the National Assembly on 21 August
2014. Unfortunately Honourable Members disrupted him whilst answering the 3rd of 6
questions posed to him. It is the Honourable Members who, through their own
disrespectful behaviour, who disrupted the President as he was answering questions.
Those who prevented the President from orally answering questions in the National
Assembly have no moral grounds to twist the facts and suddenly claim that it is the
President who does not want to orally reply to Honourable Members' questions. The
National Assembly has since censured those Honourable members who disrupted The
President.
Further, Cabinet is not aware of any Order Paper in the National Assembly which had
scheduled the President to answer oral questions after the disruption of his oral
replies. Therefore it cannot be true that the President has refused to answer questions
in the National Assembly.
Cabinet remains concerned over the disruptive effect the recent power outages are
having on the daily lives of South Africans and its impact on households and businesses
across the country. Cabinet adopted a five-point plan to address the electricity
challenges facing the country. The lack of sufficient capacity to meet the countrys
energy needs remains a challenge and all attempts are being made to ensure that we
overcome the tight energy situation. To meet the countrys future energy requirements
government is implementing an energy mix which comprises of coal, solar, wind, hydro,
gas and nuclear energy. In future biomass, wind power, solar power and hydro-power
will contribute 11.4 Gigawatts of renewable energy to the grid. Since 1994, five million
more households were connected to the grid. In 2004 this increased to 12 million
households. This happened without additional power stations being built. This increase
of households was set off the existing grid. Cabinet has adopted a five point plan.
Today Eskom will sign an MoU with the Strategic Fuel Fund and Transnet Ports
Authority so that the country can be assured of a regular supply of diesel. The focus will
be given to improve the strategic maintenance and operational efficiency to ensure that
the level of efficiency is increased from the 72% currently to the target of 80%. Eskom
will present a detailed finance plan to manage its cash flow beyond 2015. This plan will
be presented to the IMC by December 2014. Simultaneously government will finance
the funding model.
Cogeneration options will be pursued with the sugar paper and pulp industries to
harness waste energy to the extent of 1000 megawatts. There are significant
opportunities for the importation of gas. A coal independent power producer programme
will be launched by the end of January 2015 with generation capacity of 2 500
megawatts. We are therefore appealing to the public to help our country to reduce the
demand of energy which means switching off electricity when not in use. We will have
some relief from the 15th December 2014 when manufacturing and industrial processes
close for the year. A technical team war room for the implementation of the five point
plan is constituted with immediate effect. The five point plan addresses the strain our
electricity system faces. The plan covers:
(I) the interventions that Eskom will undertake in the period over the next 30 days,
(II) harnessing the cogeneration opportunity through the extension of existing
contracts with the private sector;
(III) accelerating the programme for substitution of diesel with gas to fire up the diesel
power plants;
(IV) launching a coal independent power producer programme; and
(V) managing demand through specific interventions within residential dwellings,
public and commercial buildings and municipalities through retrofitting energy
efficient technologies.
Cabinet is concerned about the performance of some of the State-owned companies, in
particular South African Airways (SAA), the South African Post Office and Eskom.
These State-owned entities play a critical developmental role within the South African
economy. The President has assigned the Deputy President Cyril Ramaphosa to
oversee the turnaround of three state-owned companies, namely South African Airways
(SAA), Eskom and the South African Post Office. Working with the relevant Ministries,
the SAA will be transferred from the Department of Public Enterprises to the National
Treasury. The Presidency will closely monitor the implementation of the turnaround
plans of these three critical state-owned companies that are drivers of the economy.
reflection of the deepening bilateral, trade and investment relations between South
Africa and China.
South African businesses are urged to take advantage of the new economic
opportunities that our relationship with China offers. Last weeks adoption of the
China-South
Africa
5-10
Year
Framework
on
Cooperation
entrenches
implementation of the agreements entered into since the conclusion of the Beijing
Declaration in 2010 and expands on the Comprehensive Strategic Partnership.
1.2. Cabinet lauds the Department of Basic Education, Provincial Education
Departments, principals, teachers and learners for their perseverance as we
conclude another busy academic year.
The Minister of Basic Education Angie Motshekga will announce the outcome of
the 2014 National Senior Certificate (NSC) examinations on 5 January 2015 with
results being released to candidates on 6 January 2015.
Cabinet encourages learners who qualify for higher education studies to explore
all available opportunities. Those learners who have not yet been accepted at an
institution of higher learning at the time of the release of the NSC results should
make use of the Central Applications Clearing House (CACH) service in January
and February 2015. This service makes a register of potential candidates that
meet institutions' minimum admission requirements to all Post-School Education
and Training (PSET) institutions in South Africa. The service also offers career
advice and assists prospective applicants with possible alternatives. The service
can be accessed through the call centre on: 0800 356 635 or through an SMS with
name and identity number to 49200.
1.3. Cabinet welcomes the release of the 2014 Annual National Assessments
(ANA) last week which shows an upward trend in performance of all grades
except Grade 9.
The ANA remain a powerful tool to assess the health of our education system and
where immediate interventions are required as identified for the Grade nine
learners in mathematics.
1.4. Cabinet thanks all South Africans, civil society and the media for their participation
in this years 16 Days of Activism campaign under the theme: Count me in:
Together moving a non-violent South Africa forward.
The call to all South Africans to Count me in seeks to ensure the longevity of
established partnerships by translating our activism during this period into
everyday actions throughout the year so that we can eliminate the scourge of
violence against women and children.
1.5. South Africa will mark National Reconciliation Day on 16 December 2014 under
the theme: Social Cohesion, Reconciliation and National Unity in the 20 Years of
Democracy at the Ncome Museum in the uMzinyathi District Municipality,
KwaZulu-Natal.
1.6. Cabinet conveys its gratitude to all South Africans and the international community
that commemorated the anniversary of the passing of the countrys first
democratically elected President Nelson Mandela on 5 December 2014.
We must stay true to Madibas legacy by continuing his unwavering dedication to
democracy, selflessness, reconciliation, service to humanity and striving for a
better life for all. It is through these values and dedication to the service of
humanity that we remain inspired to become a united and prosperous nation.
2. Key Cabinet decisions
2.1. Cabinet approved that the 2013/14 performance report of the Research and
Development (R&D) Tax Incentive programme be tabled in Parliament.
Government offers R&D tax incentive in terms of Section 11D of the Income Tax
Act, 1962 in order to encourage private sector R&D activities. South Africa offers
150% deduction on approved operational expenditure incurred on R&D activities
and is recognized to be amongst the countries that offer the more generous tax
incentive for R&D.
The incentive which has been in place since November 2006 saw 810 companies
participating, as at February 2014. From 2005/06 to 2012/13 companies reported
an estimated R44.1 billion R&D expenditure, and National Treasury estimated that
just over R3,2 billion was claimed in R&D tax deduction from SARS. 2013/14 saw
44.2% Small and Medium Enterprises (SMEs companies with an annual turnover
of less than R40 million) participating in the R&D tax incentive.
2.2. Cabinet was updated on progress made with the MeerKAT project, the collateral
benefits that have accrued to the local communities and South Africa, and the
international negotiations underway relating to the hosting of the SKA project.
The construction of the MeerKAT telescope the pathfinder to the eventual SKA
is progressing well, with significant opportunities for the local South African
industry. A number of cutting-edge technology developments are being driven by
South Africa, especially in the area of high performance computing. Local
communities in the Northern Cape have also benefitted through the many social
investment partnerships.
On the international front, the hosting agreement, the funding model for the SKA
and the procurement policy are being discussed and finalised. Negotiations are
also continuing on the establishment of an inter-governmental treaty organisation.
Cabinet approved a joint task team between the Ministers of Science and
Technology and Higher Education and Training to identify the required human
resources as well as to ensure that academic and other research institutions are
aligned to the development and needs of the MeerKAT, SKA and similar projects.
Cabinet also approved collaboration between the Ministers of Science and
Technology and Small Business Development should opportunities arise for
empowering and capacitating Small and Medium Enterprises in light of the
potential economic impact.
2.3. Cabinet approved for Statistics South Africa to conduct stakeholder
consultations in preparation for the amendment of the Statistics Act, Act 6 of
1999.
Consultations between the organs of state and other relevant organs are
necessary to facilitate the development of the series of data collections needed for
the National Development Plan.
2.4. Cabinet was briefed on the compliance of Members of the Senior Management
Service (SMS) with the Financial Disclosure Framework, which is monitored by
Parliament.
Of the 5 425 SMS members in national departments who were required to submit
their financial disclosures forms for the 2012/13 financial year, the Public Service
Commission (PSC) received 4 413 (81%) by the due date of 31 May 2013.
Cabinet highlights that a culture of zero tolerance for non-compliance should be
entrenched in the day to day functioning of the State.
2.5. Cabinet was briefed on the 2013/2014 audit outcomes of the Public Finance
Management Act (PFMA) compliant institutions and on the tabling status of their
annual reports and financial statements.
There has been an improvement in compliance by institutions on the timeous
tabling of their 2013/2014 annual reports and financial statements. For the year
under review 417 PFMA compliant institutions were required to table their annual
reports and financial statements by 30 September 2014, 379 institutions (91%)
met the deadline which is a 7% improvement from the 353 in the previous year.
Cabinet approved that Accounting Officers and Accounting Authorities submit to
their relevant Executive Authorities corrective steps that would be taken to address
concerns raised in their audit reports.
Cabinet supports the need for Executive Authorities to monitor the progress made
to address concerns raised in Audit Reports and to receive regular updates
thereon.
2.6. Cabinet approved a range of steps to reform the Supply Chain management
(SCM) system. These include: (a) supply chain management performance criteria
to be included in the performance agreements of Accounting Officers as from 1
April 2015; (b) Accounting Officers to conduct a capacity review of SCM staff and
to take remedial action where required; (c) Accounting Officers to brief Executive
Authorities quarterly on the SCM performance in their department, municipalities
or entities.
Cabinet also approved for the Office of the Chief Procurement Officer to
accelerate the SCM reform by modernising the function in the public service. The
Office of the Chief Procurement Officer has embarked on a strategy to simplify,
standardise and automate procurement.
The National Treasury will conduct consultations with the National School of
Government with a view to develop a curriculum on training and standardisation of
professional qualifications.
2.7. Cabinet approved the submission of South Africas Periodic Report (20022013) on the United Nations (UN) International Convention against Torture
and Other Cruel, Inhuman Degrading Treatment or Punishment to the UN
Human Rights Council.
Compilation
and
submission
of
this
report
demonstrates
governments
commitment to the global effort to protect and promote human rights. South Africa
fully complies with the Convention in that it has criminalised torture, and Courts
may now prosecute torture in terms of statute and not common law.
The Report provides South Africa with an opportunity to assess its compliance or
lack thereof with international obligations. The fight against torture is in line with
South Africas key priority of ensuring safer communities which is in line with the
National Development Plan.
2.8. Cabinet noted the draft White Paper on the Police. The 2014 White Paper on
Police emanates from a review of the 1998 White paper on Safety and Security.
The review reassessed how the practice and understanding of crime prevention
has developed in South Africa post 1994.
The White Paper responds to the National Development Plan Vision 2030 by
articulating the need and framework for a professional police service that is skilled,
accountable and community-centered. In addition the police service is required to
operate in an integrated manner within the Criminal Justice System in executing its
constitutional mandate.
2.9. Cabinet approved that the draft Youth Policy 2014-2019 be made available for
public comment. The draft policy is a progression from the first 2009-2014 Youth
the
Border
Control
Operational
Coordinating
Committees
management authority.
of Entry environment and to provide for the expansion of its mandate and
functions to include the air, land (Border Guard) and maritime (Coast Guard)
border environment.
The experiences of the transitional phase (including the pilot) will better inform
the final proposals.
2.15
Cabinet approved the relocation of the lead agency role for the Border
Control Operational Coordinating Committee from the South African Revenue
Service to the Department of Home Affairs.
2.16
2.17
3. Bills
3.1. Cabinet approved publication of the second draft of the Financial Sector
Regulation Bill and its submission to Parliament as well as the release of the
Draft Market Conduct Policy Framework for public comment. The draft
framework will enable the public to be better informed when commenting on the
Bill.
3.1.1.
The Second draft Financial Sector Regulation Bill, 2014 follows comments
received on the first draft which was approved by Cabinet in December 2013.
The aim of the Bill is to make the financial sector safer by implementing the
twin peaks regulatory system, which is a comprehensive and complete system
for regulating the financial sector, prioritising the customer and protecting their
funds.
The twin peaks approach to financial regulation underpins a comprehensive
regulatory system, with two aims: (a) to strengthen the financial stability and
soundness of financial institutions by creating a dedicated Prudential Authority
(within the South African Reserve Bank) and (b) to protect financial customers
and ensure that they are treated fairly by financial institutions by creating a
dedicated Financial Sector Conduct Authority, which also supervises how
financial services conduct their business.
The Bill will provide the Financial Sector Conduct Authority and the Prudential
Authority jurisdiction over all financial institutions and provide them with a
range of supervisory tools to fulfil their mandates.
This goes beyond two regulators as it sets up an underlying and harmonised
system of licensing, supervision, enforcement, customer complaints (including
ombuds), appeal mechanism (tribunal) and consumer advice and education.
3.1.2.
3.4. Cabinet
approved
submission
of
the
Performing
Animals
Protection
Cabinet reiterates that traffic officials will have a zero tolerance approach to
lawlessness on our roads during this festive season. We urge all road users to
adhere to the speed limit; ensure vehicles are roadworthy; not to drive intoxicated
and to wear safety belts. Pedestrians are urged to ensure that when using the
roads they do not endanger their well-being or that of motorists.
Government will play its part by leading a range of campaigns such as Healthy
Lifestyles and Arrive Alive in a bid to partner with communities to promote
responsible and safe behaviour.
4.3. Cabinet is saddened by the tragic killing of South African teacher Pierre Korkie
who was in Yemen as well as that of Werner Groenewald, and his two children,
Rode and Jean-Pierre who died in an attack in Afghanistan. Cabinet conveys its
condolences to their families and friends.
4.5
The work to identify the remaining 11 South Africans who died tragically in the
Nigerian building collapse continues and government is intensifying efforts to
ensure their remains are brought home without undue delay.
4.6
Cabinet conveys its condolences to the Gigaba family on the loss of their father,
Reverend Jabulani Gigaba. He was the father to the Minister of Home Affairs, Mr
Malusi Gigaba. Cabinet also conveys its condolences to the family and friends of
Sisi Mabe, who was the Speaker of the Free State Legislature.
4.7
Cabinet congratulates the national soccer team Bafana Bafana and coach
Ephraim Shakes Mashaba on qualifying for the Africa Cup of Nation 2015 in
Equatorial Guinea which begins on 17 January 2015, and calls on all South
Africans to support the national team as they fly our flag high.
4.8
Cabinet noted the launch of the Human Settlements Youth Brigade on 1-2
December 2014 by the Departments of Human Settlements, Small Business
Development, and the National Youth Development Agency (NYDA) at the
National Human Settlements Youth Summit.
The Summit deliberated on the empowerment programmes of the departments
targeting young people and how they can participate in the delivery of houses. At
the end of the Summit all stakeholders signed the National Human Settlements
Youth Accord which serves as a statement of intent towards creating a holistic and
5. Upcoming events
5.1
On 12 December 2014, the President of South Sudan, His Excellency Salva Kiir
Mayardit will pay an official visit to South Africa where he will be hosted by
President Jacob Zuma in Cape Town.
6. Appointments
Cabinet approved the following appointments subject to the verification of
qualifications and the relevant clearance:
6.1. To the Council for Scientific and Industrial Research Board:
a) Dr Ramatsemela Masango (Chairperson);
b) Prof Thokozani Majozi;
c) Prof Mamokgethi Phakeng;
d) Dr Philip Hugh Goyns;
e) Dr Ayanda Noah;
f) Dr Antonio Llobell;
g) Ms Phindile Baleni;
h) Adv Ghandi Badela;
i) Mrs Mokgadi Maseko; and
j) Mr Joel Netshitenzhe.
6.2. To the Air Services Licensing Council:
a) Dr. Malindi Neluheni (Chairperson);
b) Ms. Kenosi Selane (Vice Chairperson);
c) Adv. Frans Johannes van der Westhuizen;
d) Mr. Bheki Innocent Dladla; and
e) Ms. Sibongile Rejoyce Sambo.
6.8
g)
Conclusion
Cabinet would like to wish everyone happy holidays and lets come back energized in
2015 collectively ensure we deliver on the mandate of the government. Together, we
move South Africa forward.