Questions and Replies

Reply:

(1) No funding has been allocated to the West Coast Technical and Vocational Education and Training College over the past three financial years.

(2) No site visit was conducted as the organisation has not been funded.

(3) As mentioned above no amount has been transferred to the West Coast Technical and Vocational Education and Training College over the past three financial years.

Reply:

Entity	1(a)	1(b)	1(c)	(i)	(ii)
Companies and Intellectual Property Commission (CIPC)	The Chief Executive Officer post does not exist	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
Companies Tribunal (CT)	The Chief Executive Officer post does not exist	The Chief Financial Officer post does not exist	The Chief Operating Officer post does not exist	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Consumer Commission (NCC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Consumer Tribunal (NCT)	The Chief Executive Officer post does not exist	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Credit Regulator (NCR)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently vacant	The position has been vacant for 1 year 9 months	The vacancy is due to funding constraints
National Empowerment Fund (NEF)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
National Gambling Board (NGB)	The Chief Executive Officer post is currently vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	The position has been vacant since April 2014	The Entity is currently under Administration.
National Lotteries Commission (NLC)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post is currently not vacant	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently vacant	The Chief Operating Officer post is currently not vacant	The post was vacated from 31 March 2017	The incumbent resigned
National Regulator For Compulsory Specifications (NRCS)	The Chief Executive Officer post is currently vacant	The Chief Financial Officer post is currently vacant	The Chief Operating Officer post is currently vacant	CEO – 5 Months CFO – 3 Months COO – Post created but never filled	CEO – Resignation CFO – Resignation COO – Never filled
South African Bureau of Standards (SABS)	The Chief Executive Officer post is currently not vacant	The Chief Financial Officer post is currently not vacant	The Chief Operating Officer post does not exist	Not applicable	Not applicable
South African National Accreditation System (SANAS)	None	None	None	Not applicable	Not applicable

(2) have the vacancies been advertised; if so, (a) were interviews done and (b) on what date will the vacancies be filled;

Entity	2	2(a)	2(b)
Companies and Intellectual Property Commission (CIPC)	Not applicable	Not applicable	Not applicable
Companies Tribunal (CT)	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	Not applicable	Not applicable	Not applicable
National Consumer Commission (NCC)	Not applicable	Not applicable	Not applicable
National Consumer Tribunal (NCT)	Not applicable	Not applicable	Not applicable
National Credit Regulator (NCR)	The vacancy has not been advertised	Not applicable	Not applicable
National Empowerment Fund (NEF)	Not applicable	Not applicable	Not applicable
National Gambling Board (NGB)	The vacany has been advertised	The interviews are not yet done	After proclamation of the National Gambling Amendment Act
National Lotteries Commission (NLC)	Not applicable	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The vacancy has been advertised	Interviews are planned to take place in May 2017	The vacancy is expected to be filled by August 2017
National Regulator For Compulsory Specifications (NRCS)	CEO - post adverstised CFO - Post advertised COO - post not advertised	CEO – Interviews are not yet done CFO – Interviews were done	Relevant processes to address the vacancies are underway
South African Bureau of Standards (SABS)	Not applicable	Not applicable	Not applicable
South African National Accreditation System (SANAS)	Not applicable	Not applicable	Not applicable

(3) (a) what is the total number of persons who are currently employed in the specified positions in an acting capacity, (b) for what period has each person been acting in each position and (c) has any of the specified persons applied for the positions?

Entity	3(a)	3(b)	3(c)
Companies and Intellectual Property Commission (CIPC)	Not applicable	Not applicable	Not applicable
Companies Tribunal (CT)	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	Not applicable	Not applicable	Not applicable
National Consumer Commission (NCC)	Not applicable	Not applicable	Not applicable
National Consumer Tribunal (NCT)	Not applicable	Not applicable	Not applicable
National Credit Regulator (NCR)	No one is acting in the position	Not applicable	Not applicable
National Empowerment Fund (NEF)	Not applicable	Not applicable	Not applicable
National Gambling Board (NGB)	Not applicable	Not applicable	Not applicable
National Lotteries Commission (NLC)	Not applicable	Not applicable	Not applicable
National Metrology Institute of South Africa (NMISA)	The process to appoint an acting Chief Financial Officer is underway, the previous incumbent ‘s last day of employment was on 31 March 2017	Not applicable	Not applicable
National Regulator For Compulsory Specifications (NRCS)	2 people (CEO and CFO)	CEO – 5 Months CFO – 3 Months	Recruitment process not yet finalised
South African Bureau of Standards (SABS)	Not applicable	Not applicable	Not applicable
South African National Accreditation System (SANAS)	Not applicable	Not applicable	Not applicable

 

Reply:

1. With reference to his reply to question 473 on 15 March 2017,

a) Who requested the payments?

In the recent past organised business was fragmented in South Africa and the Department of Trade and Industry was crucial in the facilitation of the merger of the business structures to form Business Unity South Africa (BUSA). The formation was critical to government because it created a platform for government to engage unified business. The Department further committed to fund the BUSA during their establishment period.

Following the split in BUSA in 2011, the Department deemed it necessary to continue the support of organised business in the form of the Black Business Council (BBC) as it was a new formation that carried the interests of its membership that had a direct interest linked to the economic transformation mandate of the Department.

The BBC approached the Department to present areas of collaboration and to request funding for specific projects that relate to the Black Economic Empowerment and the Black Industrialist Programme. Before any considerations for funding were made, the department requested the BBC to present a business plan detailing projects and costing.

The Department assessed the business plan and once satisfied commenced a process of obtaining an approval from National Treasury

in accordance with paragraph 6.3.1 of the Treasury Regulations.

The National Treasury approved the creation of a transfer payment budget line for the BBC within Budget Vote 36 of the Department. It also important to highlight that a transfer payment is defined as an un-requited transaction that differs from the procurement of goods and services and is appropriated separately as per the Appropriations Act.

b) Was there a contract in place?

Following the approval of the transfer payment budget line by National Treasury, the Department entered into a Memorandum of Agreement (MoA) with the BBC.

c) What are the details of the services that the Black Business Council (BBC) delivered? And

The MoA with BBC details the areas of collaboration in respect to the implementation of the Black Industrialists programme. According to the agreement, Projects consist of the Policy Advocacy, Regulatory Framework development, the Resource Centre and the Customer Relations Management component.

Furthermore, the BBC is required to provide reports based on approved yearly project plans. The BBC is further required to provide Audited Financial Statements.

d) What (i) competitive and (ii) open processes were followed in awarding the BBC the specified amount?

The payment to the BBC is an un-requited transaction that differs from the procurement of goods and services. As such, no procurement process is required.

2) Whether the BBC has been audited by (a) his department and/or (b) the Auditor-General; if not, why not in each case; if so, what are the relevant details in each case?

(a) & (b) The department does not perform a separate audit for the transfer payment to the BBC as it is included as part of the annual statutory audit by the Auditor General. Furthermore, in exercising oversight over the transfer payment, an MoA is in place.

 

Reply:

1. Neither the Department nor its Entities participated in the dialogue with the President and thus no amount was spent.

2. Neither the Department nor its Entities participated in the auction of the souvenirs and thus no items were purchased.

Reply:

No services were procured and no payments were made to (a) Mr Mzwanele Manyi, (b) the Progressive Professionals Forum, (c) the Decolonisation Fund.

d(i)(ii)(iii)(iv)(v)(vi)

Over the past 3 years, a transfer payment of R7 million was paid to the Black Business Council as appropriated. The objective of the transfer payment was to strengthen and promote advocacy and the roll-out of the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 and in particular, the Black Industrialist Programme.

Reply:

(a) (b) (c) (d) (i) (aaa) (bbb) (bb) 

Minister Davies

No vehicles were purchased for Minister Davies during the 2014-15 and 2015-16 financial years. New vehicles were purchased in the 2016-17 financial year due to the fact that the existing vehicles had exceeded 120 000 kilometers and were deemed to be in violation of the security regulation and transport policy for Executive Authorities.

Make	Model	Price	Purchase Date
Toyota Fortuner	2016	R625 718.94	28 July 2016
Toyota Fortuner	2016	R623 788.94	28 July 2016

(a) (b) (c) (d) (ii) (aa) (aaa) (bbb) (bb)

Deputy Minister Masina

No vehicles were purchased for Deputy Minister Masina for the 2014-15 financial years. The vehicles below were purchased in the 2015-16 financial year. No other vehicles were purchased after 1 April 2016.

Make	Model	Price	Purchase Date
BMW X5	2014	R966 112.14	27 November 2015
BMW X5	2015	R900 309.48	22 December 2015

 

Reply:

(a) Reasons for delay in adjudication

In the 2015 Call for Applications, the NLC received approximately 22 000 requests for funding. The NLC is responsible for providing administrative support to the respective Distributing Agencies (DAs) who are entrusted with adjudicating these applications. The administrative leg for this application has been completed and it is still awaiting adjudication by the Charities Distributing Agency (CDA). The current CDA members are part time, and only adjudicate when they are able to sit, which depends on availability of the members.

(b) The application was received on 12 November 2015.

(c) Of the 22000 applications received, Edenvale Child Welfare is the 16931 application in the queue.

Reply:

The matter between NCR v Nedbank was referred to the National Consumer Tribunal on September 2015. Pleadings were due to close on 19 October 2015. The Respondent however, filed for a Condonation application on 22 January 2016 to extend the time period for the filling of its answering affidavit. The NCT is still considering the Application for Condonation which was rendered complete on 02 December 2016. The matter still needs to be set down for pre-hearing after the Condonation ruling is issued. The Tribunal anticipates the Condonation ruling being issued to the parties before the end of February 2017. The pre-hearing will be set down in April 2017 with the hearing set down for June 2017 subject to the availability of both parties.

The matter between NCR v Standard Bank was referred to the National Consumer Tribunal in July 2015. The matter has been set down for a hearing on 26, 27 and 28 July 2017. The judgment may be issued during August 2017.

Reply:

1.  The investigation into Satinsky 128 (Pty) Ltd (Satinsky) was finalised by the NCR. The NCR referred the case to the National Consumer Tribunal in October 2014. The matter has not been finally set down for a hearing, due to incomplete filing initially. In terms of the NCT current records the matter has lapsed and the process to reopen the matter is being initiated.

2. No criminal charges will be pursued. The contravention is not a criminal offense.

3. The matter is still pending at the NCT.

Reply:

(1)(a) The matter was settled between the NCR and ABSA Bank Ltd on the basis that ABSA pay an administrative fine.

(1)(b) A fine of R10 000 000.00 (Ten million Rands) was imposed.

(2)(a) The consumers will benefit as follows – ABSA to:

    (i) Write-off the cost of credit on credit agreements.

   (ii) Restructure repayments for consumers who are currently in arrears.

   (iii) Rescind any civil court judgments against consumers at own cost.

    (iv) Instruct the credit bureaus to remove adverse listings from the credit records of consumers.

(2)(b) ABSA is required to submit to the NCR an audit report confirming compliance with the terms of the agreement and once the audit report is submitted, the NCR will inform the affected consumers.

(3) The alleged contravention is not a criminal offence; therefore no criminal charges were pursued.

 

Reply:

a) There was no virement requested by any organization. In accordance with the PFMA, the dti shifted funds from goods and services to Household: Gifts & Sponsorship line item to cater for the sponsorship requests received.

b) The remainder of the funds has not been used.

c) Regoapele Capital Wealth Engineering submitted a proposal of funding in a form of a donation for the launch of a mobile ICT application at the dti and the request was considered in terms of the sponsorship policy and the premise of potential value and contribution towards the strategic objectives of the dti.

d) Regoapele Capital Wealth Engineering was introduced to the Special Economic Zones & Economic Transformation Division of the dti by Progressive Youth in Business (PYB), who although is indicated as such in the in the adjustment budget, did not receive funding for this project. Regoapele Capital Wealth Engineering was approved and paid R100 000

e) The Public Finance Management Act (PFMA) and the National Treasury Regulations (NTR) provide broad guidelines for managing contributions towards sponsorships and gifts. This policy aims to provide guidelines that dti staff may follow when making donations. The policy is based on the PFMA and aims to support and complement the dti's Fraud Prevention Plan, as well as its code of conduct for government officials. The aim of sponsorship must always be to advance the dti’s aims, as defined in the Estimates of National Expenditure (Vote 32), and the aims of its supportive programmes.

f) The company applied for the donation to cover the launch of the Mobile based Application initiative that will serve as a platform to connect youth led initiatives with government departments, DFIs, JSE listed companies amongst others in providing access to information, technical and expert advice as well as improved access to incentives.

.

Reply:

According to the National Credit Regulator -

The credit providers that offer the loans as stated above and are registered with the NCR are the following:

• Ithala Limited
• Risima Housing Finance Corporation
• VBS Mutual Bank

Reply:

1. The revitalization of the industrial parks was informed by a scoping exercise in 2015 which was followed by a detailed assessment conducted in 2016. Further the dti facilitated a symposium involving all the industrial parks as well as the local councils and provincial representatives. The purpose of the symposium was to strengthen collaboration across all stakeholders including development of future funding models for the sustainability of the Industrial parks. Standard operating procedures for the industrial parks are being developed which will detail amongst other things funding models including the implementation of concessions and rebates. In addition, the development of an investor handbook is underway to be completed by March 2018.

2. An implementation plan was drawn up outlining a phased approach to be followed in revitalizing the industrial parks. This included prioritizing the critical infrastructure needs of the various industrial parks. The first and second phases provide for security and bulk infrastructure upgrades whilst the last two phases will address the investor specific infrastructure needs including top structure upgrades and strengthening the management capacity in the industrial parks. In addition, the dti is supporting the firms located in the industrial parks through the cluster development programme to enhance their competitiveness.

Reply:

1. Yes, there was public participation and consultations with affected stakeholders in the number plate industry.

(a) Participation and consultation took place in the form of meetings with affected stakeholders.

(b) The number plate industry, comprising number plate blankers/manufacturers and embossers participated in the meetings with the SABS. The industry was represented by South African Number Plate Association, the Number Plate Association of South Africa, the Retail Motor Industry Organisation(RMI) and the companies Uniplate, New Number Plate Requisites and ARGA. Meetings were also held with all the provincial transport departments except those of the North West and the Western Cape provinces.

(c) Meetings were held on 8 February 2016, 10 February 2016, 06 April 2016 and 18 April 2016 with the various stakeholders mentioned in (b) above.

2. (a) Number plates are controlled by the existing South African National Standard (SANS) 1116. There are no new national standards being developed to control number plates.

(b) The original specifications that are contained in SANS 1116 can be assessed through the SABS Sales Office in Pretoria and also through the SABS regional offices. These specifications can also be assessed on the SABS online webstore.

(c) Responses to the following sub questions: i, ii and iii and also (d) are all captured in tabular form below.

Summary of tests conducted in 2013/14, 2014/15 and 2015/16

Tests conducted according to SANS 1116-2 and 4	2013/14	2014/15	2015/16	Current failures
License Numbers (characters)			X	X
Setting out characters			X
Color and luminance factors			X
License number and border			X
Graphics			x	X
Workmanship			x
Retro-reflective material			x
Resistance to weathering			x
Resistance to scratching	x	x	x
Resistance to bending	x	x	x
Resistance to impact (applies only to plastic number plates)	x	x	x
Resistance to abrasion (applies to aluminium number plate)	x	x	x
Packing			X	X

Reply:

(a) the dti received a proposal for the development of a Mobile Application from Regoapele Capital Wealth Engineering. During the Adjustment Estimates of National Expenditure, a virement of R200 000.00 was requested with an intention to provide funding towards projects for youth economic empowerment. Of the R200 000.00, R100 000.00 was allocated to Regoapele Capital Wealth Engineering in-line with the dti sponsorship policy. The remaining R100 000.00 will be used for other strategic core functions in-line with the mandate of the dti.

(b) The amount was meant for a Mobile based Application initiative that will serve as a platform to connect youth led initiatives with government departments, DFIs, JSE listed companies amongst others in providing access to information, technical and expert advice as well as improved access to incentives.

(c) the dti policy, process and procedures for sponsorship was followed.

(d) The Executive Director for Regoapele Capital wealth Engineering is Mr O Moshori.

Reply:

No, the backlog of applications for Letters of Authority that are older than 120 calendar days were not eliminated by the deadline of 14 November 2016 that was given to the Parliamentary Portfolio Committee on Trade and Industry;

(a) The complexity of the required skills, human resource and systems interventions to deal with the backlog have taken longer than anticipated.

(b) The backlog on 30 October 2016 was 1615.

(c) The meeting to inform the Parliamentary Portfolio Committee on Trade and Industry on progress is scheduled for 29 November 2016.

(d) The NRCS has taken the following steps to address the backlog as a matter of urgency.

(i) Separation of administrative from technical processes – Progress: The NRCS has developed and implemented administrative and technical evaluation checklists and processes.

(ii) Develop and piloted risk-based approach - Low Risk: Renewals, Local Manufacturers and Low Risk Application in terms of Products, Companies and Countries - Progress: Implemented RBA on Low Risk Applications, Implemented RBA on Renewal Applications; Medium Risk: Products, Companies and Countries, Progress: Piloting RBA on Medium Risk Applications; High Risk: Products, Companies and Countries; Different approval routes used based on risk classification.

(iii) Human Resources – Progress: LOA approvals section resources have increased from 5 to 7 inspectors; Additional 2 candidate inspectors – Short-listing completed, recruitment process underway; 4 more positions are being created to further increase the staff complement to 13 inspectors. Overtime has also been approved to assist with the reduction in the backlog in the short-term.

Progress is reported to the Director-General bi–weekly through the oversight process led by the Group COO and the Deputy Director General.

(e) the backlog will be eliminated by 31 March 2017.

Reply:

(a) (i) 2014 - 5 LoA’s were issued as follows:-

Date applied              Date Issued          No. of working days

20/10/2013                  2014/1/27                                      74

13/3/2014                    2014/6/14                                       69

12/6/2014                    2014/7/30                                       49

12/6/2014                    2014/7/30                                        49

29/10/2014                  2014/10/29                                    112

(ii) 2015 - 3 LOA’s were issued as follows:-

Date applied           Date Issued            No. of working days

5/8/2014                   2015/6/14                                   225

5/8/2014                   2015/6/14                                   225

5/8/2014                   2015/6/14                                   225

(b) 2016 - No LOA applications were received in this financial year

Reply:

The Liquor Amendment Bill will be submitted to Cabinet in the first quarter of 2017. In terms of the cabinet process, the Socio Economic Impact Assessment System (SEIAS) report must accompany all legislation. Once approved by Cabinet, the SEIAS report will be made available.

Reply:

A socio economic impact assessment (SEIA) was conducted on the final Liquor Policy and approved by Cabinet on 14 September 2016. The SEIA report was submitted to the Cabinet Secretariat.

As the Hon Member is aware, the National Liquor Amendment Bill, 2016 was published for wider consultation. The consultation process ends on 30 November 2016. the dti will review the comments received and will endeavor to conduct a further socio economic impact assessment on the Bill, if required.

Reply:

the dti has allocated R281 million for this programme to date. This money is being used for critical infrastructure upgrades. There are budget constraints, and funding as well as other non-financial support mechanisms are being discussed. The first engagement was held in the form of discussions with stakeholders through a symposium held on 12-13 October 2016 at the DBSA in Midrand. Further engagements with local government and provinces are planned for early next year.

Reply:

1. The Department of Trade and Industry has not received any application for a Special Economic Zone from the Ugu District Municipality in KwaZulu-Natal,

2. There has not been any interaction, formal or informal, between the dti and the Ugu District Municipality or with Ugu South Coast Development Agency.

 

 

Reply:

Since the introduction of the new Special Economic Zones Policy and the introduction of a new package of incentives for SEZ investments; the overall investment performance of South Africa’s special economic zones has improved significantly. For example, total secured investments in the 4 operational IDZs increased from R19, 7 billion at the beginning of the 2016 to R41, 2 billion at the end of October 2016. In addition, the total investment commitments from the not yet operational zones (including the newly designated) stands at over R70 billion. The dti is confident that this improved investment performance of South Africa’s special economic zones will soon translate into a stronger contribution to GDP, value-added exports and employment.

In implementing the SEZ Programme, the dti is aware that continuous learning and innovation have to be, and are; central to our efforts to improve the performance of all special economic zones. Therefore, there are lessons from both the domestic and international experiences in the planning, design, development, management and operations of special economic zones. When the time is right, department will review both the SEZ Policy and its instruments; taking into account all the lessons from both the domestic and international experiences.

However, the dti does not have any intention to introduce a different labour market policy in special economic zones. There are no indications that the current labour market policy has negative impact on the performance of our special economic zones.

 

 

Reply:

(a)(b) (aa) The Department of Trade and Industry received and completed two hundred and fifty five (255) investigations since 1 January 2009 to date. Of the 255 investigations, sixty one (61) related to the Entities of the dti.

Period	the dti Cases	Entity Cases	Total Cases
Jan-Dec 2009	37	17	54
Jan-Dec 2010	49	5	54
Jan-Dec 2011	26	10	36
Jan-Dec 2012	23	5	28
Jan-Dec 2013	20	9	29
Jan-Dec 2014	19	5	24
Jan-Dec 2015	13	7	20
Jan-Oct 2016	7	3	10
Total cases	255

(bb) The subject of the forensic audits varied from conflict of interest, fraud, corruption and bribery, irregular and unauthorised expenditure, procurement irregularities, incentive scheme fraud, and alleged unethical behaviour.

(ccc) Two hundred and forty nine (249) cases relating to the period 01 January 2009 to date have been finalised. Six cases relating to the period 01 January 2016 to date are in progress. Certain investigations were outsourced to Grant Thornton, Nexus Forensics, Ubuntu Business Advisory Services (UBAC) and Gobodo Forensic and Investigative Accounting (GFIA). The majority of investigations were conducted by the in-house forensic audit unit within the Internal Audit Chief Directorate at the dti.

(ii)

(ii) ENTITY	(aa) Name	(bb) Subject matter	(cc) Dates of conclusion	(a) Internal	(b) External
NRCS
	1. Investigation into possible conflict of interest	Investigation into possible conflict of interest	March 2013	-	External
	2. Investigation report into the taxed bill of costs	Investigation report into the taxed bill of costs	June 2014	Internal	-
	3. Preliminary Investigation to determine compliance with the NRCS subsistence and travel policy	Preliminary Investigation to determine compliance with the NRCS subsistence and travel policy	June 2014	Internal	-
	4. Preliminary investigation report into staff concerns	Preliminary investigation report into staff concerns	Feb 2016	Internal	-
	5. Independent assessment on recruitment and selection process	Independent assessment on recruitment and selection process	Sept 2015	Internal	-
	6. Investigation towards costs relating to services rendered	Investigation towards costs relating to services rendered	Aug 2014	Internal	-
	7. Investigation into the matters relating to technical specialist	investigation into the matters relating to technical specialist	March 2015 In Progress	-	External
	8. Preliminary-investigation report into the matter of the approval of audit payment	Preliminary-investigation report into the matter of the approval of audit payment	Sept 2015	Internal	-
	9. Preliminary Investigation of the allegations relating to the electrotechnical inspector	Preliminary Investigation of the allegations relating to the electrotechnical inspector	April 2015	Internal	-
	10. Independent assessment on an appointment	independent assessment on an appointment	May 2016	Internal	-
	11. Industry trading without LOA	Industry trading without LOA	Oct 2015 In progress	-	External
	12. Inspector disclosure of confidential information	Inspector disclosure of confidential information	Jan 2016 In progress	-	External
	13. Industry defrauding NRCS with regard to testing of weighbridges	Industry defrauding NRCS with regard to testing of weighbridges	Feb 2016 In progress	-	External
	14. Products not complying with NRCS Compulsory Specifications	Products not complying with NRCS Compulsory Specifications	March 2016 In progress	-	External
	15. Alleged corruption / unethical behavior by inspector	Alleged corruption / unethical behavior by inspector	Sept 2015 In progress	-	External
	16. Investigation of two members of staff	Investigation of two members of staff	Aug 2015	-	External
	17. Grant Thornton Report- JDE Fraud Case	Grant Thornton Report- JDE Fraud Case	May 2012 Follow up being made with SAPS with regard to prosecution and arrest of suspect. Currently await SAPS	-	External
	18. Provision of forensic investigation services in relation to the allegations of irregularities and mismanagement at NRCS	Provision of forensic investigation services in relation to the allegations of irregularities and mismanagement at NRCS	March 2013	-	External
	19. Investigation of possible irregularities with regard to procurement practices in the corporate services department of the NRCS	Investigation of possible irregularities with regard to procurement practices in the corporate services department of the NRCS	March 2010	-	External
	20. Forensic Investigations into alleged irregularities in the tendering process at NRCS	Forensic Investigations into alleged irregularities in the tendering process at NRCS	February 2011	-	External
	21. Forensic Investigation into allegations of irregularities	Investigation into allegations of irregularities	January 2011	-	External
	22. Investigation into donor funding	Investigation into donor funding	November 2015	-	External
NMISA, ECIC, NCC, CT and NCT
	NIL	-	-	-	-
NEF
	1. Investigation into possible fraudulent payments	Staff member of a NEF funded entity made certain fraudulent payments into accounts	May 2015	Internal	-
	2. Facilities	Staff member extorting payments/services from a service provider	April 2014	Internal	-
	3. Forensic investigation into various allegations made by an anonymous whistle-blower	Allegations of improper conduct and irregularities relating to decisions made by the organisation and some of its employees	November 2013	-	External
	4. Allegations of misconduct by a staff member	Review of allegations of improper/unlawful sms sent to a client.	September 2011	-	External
	5. Corruption & misconduct by two employees	Irregularities concerning allegations relating to two staff members	August 2011	-	External
	6. Corruption & misconduct by an employee	Allegations regarding certain unethical behaviour by an employee	June 2011	-	External
NCR
	1. Allegations of misconduct levelled against a Senior Manager	Breach of National Treasury Regulations, specifically with regards to supply chain management; Fraud; Misrepresentation; non-compliance with procurement policy; conflict of interest; gross negligence in the performance of duties	November 2011	-	External
	2. Allegations of misconduct	Corruption, racism, nepotism, unethical conduct and inappropriate relations with a service provider	February 2013	-	External
SANAS
	Investigation into possible fraud	Fraudulent bank account details	September 2014	-	External
NGB
	1. Unauthorised Amendments to a tender document	Investigation into unauthorised changes effected to a tender document	August 2014	Internal	-
	2. Conflict of interest	Unauthorised work conducted by an official within the NGB that was not disclosed and/or approved by the NGB	September 2014	Internal	-
NLC
	1. Corporate Business Insight Awareness cc report	Technical Surveillance Countermeasures Urgency and sensitivity - as recommended by SARS	August 2012	-	External
	2. Fraud unit reports	Beneficiary related alleged fraud investigations.	July, August	Internal	-
	3. Ens Forensics & Ra Russel Adviser report	Forensic Investigation of the leak and Destruction of Confidential Documents	August 2013	-	External
	4. Nexus reports	Beneficiary related forensic investigation.	December 2013	-	External
	5. Sizwe Ntsaluba Gobodo( SNG) reports	Beneficiary related forensic investigation.	November 2013	-	External
	6. Kwinana reports	Beneficiary related forensic investigation	November 2013	-	External
	7. Gobodo Forensic Investigative Accounting(GFIA) report	Beneficiary related forensic investigation	April 2013	-	External
	8. KPMG reports	Beneficiary related forensic investigation	June 2013	-	External
	9. Fraud unit reports	Beneficiary related alleged fraud investigations.	July, August 2013	Internal	-
	10. Nexus reports	Beneficiary related forensic investigation	April 2014	-	External
	11. Nexus report	Forensic report on conflict of interest between beneficiary and junior staff member Conflict of interest between beneficiary and junior staff member Beneficiary related forensic investigation.	September 2014 September 2014 August2014	-	External
	12. Kwinana report	Beneficiary related forensic investigation	January ,February, April 2014	-	External
	13. Sizwe Ntsaluba Gobodo( SNG) reports	Beneficiary related forensic investigation	April, March, May 2014	-	External
	14. Gobodo Forensic Investigative Accounting(GFIA) report	Forensic report on conflict of interest between beneficiary and junior staff member	April 2014	-	External
	15. KPMG reports	Beneficiary related forensic investigation	April, May, June 2014	-	External
	16. Fraud unit reports	Beneficiary related forensic investigation	Jan to Dec 2014	Internal	-
	17. Sizwe Ntsaluba report	Beneficiary related forensic investigation	July2015	-	External
	18. Forensic unit reports	Beneficiary related forensic investigation	February-December 2015	Internal	-
	19. Gobodo Forensic Investigative Accounting(GFIA) report	Beneficiary related forensic investigation	April 2015	-	External
	20. Nexus reports	Beneficiary related forensic investigation	April 2015	-	External
	21. Forensic unit report	Beneficiary related forensic investigation	January 2016 to date	Internal	-
	22. Sam Ledwaba attorneys report	Forensic investigation on a key management staff member received from the Hotline	June 2016	-	External
SABS
	1. Investigation on the alleged loss of documents at the SABS	An investigation into the alleged loss of documents at the SABS premises.	August 2016	-	External
	2. Investigation on the alleged misconduct and non-adherence to the SABS policies	An investigation into the alleged appointment of suppliers without following SABS policies and procedures regarding contract management	July 2016	-	External
	3. Investigation on the process followed pertaining to the renewal/re-issue of permits to one of the SABS client	An investigation into the alleged lack of due diligence by SABS staff members when issuing SABS permit to the client.	September 2015	-	External
	4. Investigation on the allegations of bribery and manipulation of data results	Investigation into allegation of bribery and manipulation of data results or test reports	February 2015	-	External
	5. Investigation into allegations of unethical conduct	Investigation on the alleged unethical conduct by one of the SABS employees	February 2015	-	External
	6. Investigation into possible fraud in the procurement practices at the SABS	Investigation into allegations of possible fraud regarding suppliers registrations process	May 2013	-	External
	7. Investigation on the allegations of conflict of interest at the SABS.	Investigation conducted into the alleged conflict of interest and corporate governance	July 2013	-	External
	8. Investigation on the alleged manipulation of supplier bank accounts	Investigation into fraudulent activities by SABS staff member.	December 2011	-	External
CIPC
	Investigation launched by the dti	Investigation into possible procurement irregularities	Sub Judice	-	External

Reply:

According to the information received from National Lotteries Commission (NLC) and the dti: CCRD -

The Consumer and Corporate Regulation Division together with the NLC have never funded the Cultural and Creative Industries Federation of South Africa (CCIFSA), as a result

(1) Not applicable.

(2) Not applicable.

(3) Not applicable.

According to the information received from National Lotteries Commission (NLC) and the dti: CCRD -

The Consumer and Corporate Regulation Division together with the NLC have never funded the Cultural and Creative Industries Federation of South Africa (CCIFSA), as a result

(1) Not applicable.

(2) Not applicable.

(3) Not applicable.

Reply:

(a) An Acting CEO; Advocate Edward Mamadisi, from the Legal Services section of the dti, has been appointed and commenced duties on Monday 17th October. Advocate Mamadisi will be supported by staff from within the dti and the process will be the subject of an oversight process led by the Group COO and the Deputy Director General; Industrial Development Division.

(b) Based on a thorough assessment of the backlog of applications; existing capacity and operational constraints a target date for dealing with the backlog will be ascertained and communicated, if it is at variance with the date given to the Parliamentary Portfolio Committee on Trade and Industry.

Reply:

(a)(i) Chief Financial Officer

The qualifications for the Chief Financial Officer are Bachelor of Commerce and Honours Bachelor of Accounting Science.

(a)(ii) acting Chief Financial Officer

There is currently no acting CFO within the Department

(b)(i) Directors-General

The qualifications for the Director-General are Baccalaureus Lurisprudenciae, Honours Baccalaureus Artium Degree and Master’s Degree in Economics.

(b)(ii) acting Directors-General

There is currently no acting Director-General within the Department

Reply:

(i) (aa) (bb) (aaa) (bbb)

No spending was recorded in the department on advertising with the Africa News Network Channel or with the South African Broadcasting Corporation’s television channels in the 2015-16 financial year and from 1 April 2016 to date.

(ii) (bb) (aaa) (bbb)

The spending on advertising with the South African Broadcasting Corporation’s radio stations was R511 382.91 in the 2015-16 financial year and R659 226 from 1 April 2016 to date related to key areas of the dti’s work programme.

(iii) (aa) (bb) (aaa) (bbb)

No spending was recorded in the department on advertising with the national commercial radio stations, television channels and community television channels in the 2015-16 financial year and from 1 April 2016 to date.

(iv) (bb) (aaa) (bbb)

The spending on advertising on community radio stations for the 2015-16 financial year was R388 787 and R1 772 419.33 from 1 April 2016 to date on advertising campaigns.

Response from the Entities

ENTITY	QUESTIONS	RESPONSES
NLC	(i) Africa News Network 7 channel	-
	(ii) SA Broadcasting Corporation	(aaa) 2015-16 fy	(bbb)
	(aa) television channels	R900 000.00	R1 193 607.36
	(bb) radio stations	R6076288.60	R887583.07
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	R994790.00	R117 655.00
NEF	(i) Africa News Network 7 channel	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	-
	(iii) national commercial radio stations	R901 867.68
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	R28 096.50	R7 200.00
ECIC	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation	(aaa)	(bbb)
	(aa) television channels	-	-
	(bb) radio stations	R78 156.00	R52 104.00
	(iii) national commercial radio stations	R333 606.00
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
SABS	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
NGB	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	R141,684.90
NCT	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation	(aaa)	(bbb)
	(aa) television channels	-	-
	(bb) radio stations	-	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
SANAS	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	-
	(iii) national commercial radio stations and	R37 962.00
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
NRCS	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	R472 701.00
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
CT	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-
	(bb) radio stations	-
	(iii) national commercial radio stations	R122 586.07
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
NCC	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	R2 110 719.48
	(bb) radio stations	R1 513 511.26
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-
CIPC	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-	-
	(bb) radio stations	-	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	R463 879.68	-
	(bb) radio stations	-	-
NCR	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-	-
	(bb) radio stations	-	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	R33 610.00	R502 321.88
NMISA	(i) Africa News Network 7 channel	(aaa)	(bbb)
		-	-
	(ii) SA Broadcasting Corporation
	(aa) television channels	-	-
	(bb) radio stations	-	-
	(iii) national commercial radio stations	-
	(iv) community	(aaa) 2015-16 fy	(bbb) since 1 April 2016
	(aa) television	-	-
	(bb) radio stations	-	-

Reply:

(a) A total number of 22 projects have been approved under the Black Industrialist programme between the dti and the participating Development Finance Institutions (DFIs). In terms of the dti’s grant funding for Black Industrialists (BIs), 9 Black Industrialists projects have been supported for their investments in assets.

(b) The 9 incentivised Black industrialists projects include the following:

Baynes Transformers, K9 Pet Foods, Naledi Rail Engineering, Nciba Grain Group, Carbon Klean, Kenako Medical, Polybox Enterprise, Thaleka Manufacturing Services, and Maneli Pets

(c) The above mentioned companies are Black owned and managed entities. They have not taken equity from any existing companies. Only two Black Industrialists acquisitions were financed by a DFI to acquire 100% ownership of ABARDARE (Pty) Ltd and Machinery and Cutting Services Company.

(d) One DFI supported two Black Industrialists acquisitions to the value of R67 million and R12 million has been dispersed.

(e) The terms and conditions for equity transactions are concluded between the DFIs and their respective clients. In general, all funding for acquisitions are in a form of a preference share to the BI companies which then subscribe for ordinary shares in the target companies. The preference shares are payable based on the free cash flows of the target companies up to 10 years.

(f) The approved projects support 1000 jobs in the economy.

Reply:

1. (a) The total number of Letters of Authority (LOA) that are in backlog at the NRCS as at 30 June 2016 are 1170 out of a total of 3605 handled during this period, resulting in 2435 approvals.

(b) The detailed breakdown of the specified backlog in LOA per industry sector as of 30 June 2016 is 15 for the Automotive sector, 39 for the Chemical, Materials and Mechanicals sector, 1116 for the electro-technical sector and zero for gaming equipment and type approvals in legal metrology.

(c) The average waiting period for a LOA to be issued is 156 days.

(2) The Performance Agreement of the CEO has been forwarded to the Chairperson of the Portfolio Committee on 14 September 2016.

Reply:

(a) The department spent a total of R2 763 194.97 towards its participation in the Commission.

(b) This amount entails fees paid towards securing external services for the provision of legal advice to the dti inclusive of the drafting of witness statements. However these external services were later terminated and the department utilised in house legal services. The internal legal service working in conjunction with the Office of the State Attorney provided the legal support until the conclusion of the Commission of Inquiry into Allegations of Fraud, Corruption, Impropriety or Irregularity in the Strategic Defence Procurement Packages. This move was a significant cost saving to the department.

Reply:

1. Response from CIPC

(a) and (b) In order for the CIPC to confirm the above, the name and registration number of the two entities to whom the casino licence was awarded (owners of the Gold Reef City Casino Gambling Licence), needs to be provided. Full content of the entity file The South African Apartheid Museum at Freedom Park was provided but for completeness is provided again (Annexure A).

(c) It should be noted that even if an entity has been deregistered or dissolved, the CIPC will still retain the entity history and information as at the date of deregistration or dissolution.

1. Response from NLC.

The National Lotteries Commission (NLC), formerly known as National Lotteries Board, confirms that it received an application on 24.11.2004 from The SA Apartheid Museum at Freedom Park, with the registration number 2001/019108/08. There is no reflection of Gold Reef City Casino Gambling Licence in the application form (FORM 03/1).

  (a) and (b) n/a

  (c) In terms of the proof of registration submitted, that reflects the company registration number reflected in application pack, the directors of The SA Apartheid Museum at Freedom are as follows:

• Kim Feinberg
• Christopher Kroese
• Solomon Krok
• Christopher Martin Till
• Richard Thabo Moloko
• Lesego Wa Lesego
• Sidney Abromowitch

2. whether, with reference to a summation of all the facts on his version through the CIPC, which reveals the existence of two companies sharing Unique Company Registration Number: 2001/019108/08 and sharing date of incorporation: 14 August 2001, one of these companies, the SA Apartheid Museum, enjoys the benefit of public funds in the amount of R1,585,000 received from the NLB after submission of a statutory declaration by Mr Christopher Till, when applying for funding in November 2004; if so, can he, (a) in consultation with officials of the NLC, who were named in previous replies, provide the National Assembly with non-confidential information of SA Apartheid Museum under Project Number: 18052 regarding the Constitution of SA Apartheid Museum and the Registration Certificate and Memorandums, (b) confirm that all applicants are advised to read the rules before applying for funds and that one of those rules stipulates that the three referee's given in any application must be independent of the applicant and (c) in consultation with officials of CIPC who were named in previous replies, provide the National Assembly with each of the two CM5 Name Reservation Forms, that with payment of a fee, are a prerequisite to registration of the memorandum of a company;

2. Response from CIPC

According to the CIPC register, there is only one entity with registration number 2001/019108/08, namely The South African Apartheid Museum at Freedom Park NPC. The question regarding whether the company can apply for funding, can only be answered by the National Lottery Board that issues such funding. See NLC response 2 on page 3.

It should be noted that according to the CIPC electronic workflow system, two name reservations were submitted. The first on 10/04/2001 which was only valid for two months from date of reservation and therefore lapsed before the entity registration could occur. The lapsing of the name reservation resulted in the second name reservation being submitted on 07/06/2001 and reserved on 11/06/2001. The South African Apartheid Museum at Freedom Park NPC was subsequently registered on 14/08/2001.

(a) and (b) Kindly raise this question, with the NLC since the CIPC cannot confirm what information regarding the entity was submitted to them.

(c) As stated above, there is only one entity on the CIPC register with the name The South African Apartheid Museum at Freedom Park NPC with registration number 2001/019108/08. All information regarding the registration of the The South African Apartheid Museum at Freedom Park NPC was provided previously, but for completeness is provided again (Annexure A).

2. Response from NLC.

A grant of R1, 585,000.00 was allocated to The SA Apartheid Museum at Freedom Park into Nedbank as follows:

• Name of account: SA Apartheid Museum
• Payments:
  • R600, 000.00 on 08.09.2006;
  • R585, 000.00 on 01.07.2011; and
  • R400, 000.00 on 18.08.2016.

(a) The scanned copy of the submitted proof of registration and founding documents are in the possession of the NLC and can be made available if the writer follows the processes as outlined in the NLC’s policy for access to information, or if specifically requested by the Minister of Trade and Industry.

(b) In terms of the application form, FORM 03/1, submitted on 24.11.2004, applicants are requested to “Please give the names, positions and telephone numbers of three credible referees from the community in support of your application e.g. police commissioner, religious leader, local councillor, etc.”

The referees were provided in application #18052, however, the names have not been included because information relating to the application for grants in considered confidential in terms of the 2001 Regulations (Gazette No 7013, 22 February 2001 – See attached, clause 08: Security of Information) (Annexure B)

(c) n/a

(3) whether, in consultation with officials of CIPC who were named in previous replies, he has found that the specified officials are unable to provide the two CM5 Name Reservation Forms; if so, can he have them categorically state that as a fact?NW1742

3. Response from CIPC

The CIPC does not have the requested CM5 form in its records.

Reply:

(a) (i) The value of trade between South Africa and the Kingdom of Norway in the nominal terms for the financial year 1994-1995 was R581, 697,918.

(ii) The value of trade between South Africa and the Kingdom of Norway in the nominal terms for the financial year 2015-2016 was R2 710 584 082.

(b) (i) The value of trade between South Africa and the Kingdom of Norway in the real terms for the financial year 1994-1995 was R529, 634, 816.

(ii) The value of trade between South Africa and the Kingdom of Norway in the real terms for the financial year 2015-2016 was R2, 467, 981 501.

Reply:

(a)(i)

The department spending on advertising for the 2015/16 financial year was R21 million. This comprised mainly of expenditure for marketing and promoting the dti in newspapers, radio stations and on television.

(b)(i)

The department has budgeted R32 million for advertising in the 2016/17 financial year. This comprises mainly of projected expenditure for marketing the dti products and offerings. Advertisements may also be placed for recruitment and tenders.

Response from the Entities

Entity	(a)(ii)	(b)(ii)
Companies and Intellectual Property Commission (CIPC)	R 586 000.00	R 16 600 000.00
Export Credit Insurance Corporation (ECIC)	R 5 512 000.00	R 6 550 000.00
National Credit Regulator (NCR)	R 1 607 603.00	R 3 950 000.00
National Consumer Tribunal (NCT)	R 89 850.35	R 80 000.00
National Empowerment Fund (NEF)	R 7 106 591.00	R 9 834 642.00
National Gambling Board (NGB)	R 61 396.02	R 55 000.00
National Lotteries Commission (NLC)	R 43 000 000.00	R 23 000 000.00
National Metrology Institute of South Africa (NMISA)	R 585 441.90	R 1 554 000.00
National Regulator For Compulsory Specifications (NRCS)	R 5 023 486. 00	R 6 122 454.00
South African Bureau of Standards (SABS)	R 150 000.00	R 6 917 100.00
South African National Accreditation System (SANAS)	R 110 623.00	R 130 000.00
National Consumer Commission (NCC)	R 3 859 990.28	R 1 989 000.00
Companies Tribunal (CT)	R 875 206.00	R 887 950.00

Reply:

(1) (a) (i)(ii)(iii) (b)

the dti was not approached by any political party for any form of funding in the 2013-14; 2014-15; 2015-16 and since April 2016.

(2)(a) (i) (ii) (iii) (b)

The department has not provided any form of funding to any political party in the 2013-14; 2014-15; 2015-16 and since April 2016.

Reply:

All programmes specifically targeting small enterprise development administered by the dti were transferred to the Department of Small Business Development in 2014. In carrying out its mandate to broaden economic participation, the dti encourages other businesses to do business with small business in the implementation of programmes such as the BBBEE codes of good practice, local procurement and export support.

Response from the Entities

Only the four entities listed here under provide support to small business.

Entity	b(i)	b(ii)	(aa)	(bb)	(cc)
Companies and Intellectual Property Commission (CIPC)	The CIPC does not run any development programmes for small business	The CIPC does not run any development programmes for co-operatives	Not applicable	Not applicable	Not applicable
Export Credit Insurance Corporation (ECIC)	The ECIC does run development programmes for small business	The ECIC does not run any development programmes for co-operatives	ECIC is runing an enterprise and supplier development programme for its suppliers since 2014. The development offered was that of SME related training.	R14m	At this current stage the number of sustained jobs is 133 as reported by the SMEs. ECIC have no indication of how many jobs will be created in 2016/17 FY. It is however anticipated that as the SMEs grow they will create more jobs.
National Empowerment Fund (NEF)	The NEF does run development programmes for small business	The NEF does run development programmes for co-operatives	The NEF provide financial and non-financial support through its two funds namely iMbewu Fund (iMbewu) and Rural and Community Development Fund (RCDF)	iMbewu – R346m RCDF – R150m	iMbewu – 2 700 RCDF – 1200
National Metrology Institute of South Africa (NMISA)	The NMISA does run development programmes for small business	The NMISA does run development programmes for co-operatives	NMISA has a dedicated programme to assist SMEs to understand Technical Infrastructure issues in their organisations and to measure the level of impact quality infrastructure (QI) has on their specific business. A Measurement Toolkit is used to both train the SMEs in QI and to gauge the level of intervention needed. Focused intervention is then performed with specific SMEs (and Cooperatives).	R1,6m	NMISA has no mechanism to determine the number of jobs created through this activity. If internationally developed guidelines are used to convert investment in QI into job creation, the activity supports approximately 7 000 jobs.
South African Bureau of Standards (SABS)	The SABS does run development programmes for small business	The SABS does run development programmes for co-operatives	Certification and Testing - The SABS work with SME’s in the development and implementation of quality management system, testing of product and certification.	Funding is provided by the various provincial departments and agencies such as SEDA	Direct impact on jobs is estimated by funding agencies themselves
			Design and Innovation interventions - The SABS Design Institute provides development and support to entrepreneurs and SMME using design thinking and methodologies to improve competitiveness.	Funding for these activities is also provided by various government agencies and departments.	Direct impact on jobs is estimated by funding agencies themselves

Reply:

1. (a) The Legal Metrology Act, Act 9 of 2014 is an improvement on the Trade Metrology Act, Act 77 of 1973. The Act expands trade metrology to the legal metrology domain for trade, health care and the environment amongst others, which were previously excluded from appropriate administrative control.

(b) In circumstances where standards have not been developed yet, for any metrology instrument, the CEO of the NRCS, in consultation with the user, may set interim requirements and conditions for the use of such an instrument until such time that relevant standards are developed.

2. (a) The Act makes provision for specified metrology instruments to be used in the absence of specified standards according to the stipulated process outlined above.

(b) The interpretation of the Department of Trade and Industry is that revenue generated in circumstances where there is not yet a standard, is legally permissible.

3. Section 18(1) of the Legal Metrology Act 9 of 2014 confers powers to the NRCS to take appropriate action against a defaulting party who has utilized an instrument, product or service that does not conform to legal metrology technical regulations (standards). The Act allows the NRCS to direct in writing any non-compliant instrument, product or service to be brought into compliance with the relevant standards, failing which the instrument or product may be confiscated, destroyed or returned to the country of origin.

4. Section 17(1) of the Legal Metrology Act, 9 of 2014 states that no person may import, manufacture, sell or supply a measuring instrument or product, or render a service, to which a legal metrology technical regulation applies. Costs incurred by the National Regulator for the confiscation, destruction of non-compliant measuring instrument, product or service may be recovered from the person using such measuring instrument or product, or rendering such service.

Reply:

1. (a) The Legal Metrology Act, Act 9 of 2014 is an improvement on the Trade Metrology Act, Act 77 of 1973. The Act expands trade metrology to the legal metrology domain for trade, health care and the environment amongst others, which were previously excluded from appropriate administrative control.

(b) In circumstances where standards have not been developed yet, for any metrology instrument, the CEO of the NRCS, in consultation with the user, may set interim requirements and conditions for the use of such an instrument until such time that relevant standards are developed.

2. (a) The Act makes provision for specified metrology instruments to be used in the absence of specified standards according to the stipulated process outlined above.

(b) The interpretation of the Department of Trade and Industry is that revenue generated in circumstances where there is not yet a standard, is legally permissible.

3. Section 18(1) of the Legal Metrology Act 9 of 2014 confers powers to the NRCS to take appropriate action against a defaulting party who has utilized an instrument, product or service that does not conform to legal metrology technical regulations (standards). The Act allows the NRCS to direct in writing any non-compliant instrument, product or service to be brought into compliance with the relevant standards, failing which the instrument or product may be confiscated, destroyed or returned to the country of origin.

4. Section 17(1) of the Legal Metrology Act, 9 of 2014 states that no person may import, manufacture, sell or supply a measuring instrument or product, or render a service, to which a legal metrology technical regulation applies. Costs incurred by the National Regulator for the confiscation, destruction of non-compliant measuring instrument, product or service may be recovered from the person using such measuring instrument or product, or rendering such service.

Reply:

The requested information relates to a period that spans 11 years, which exceeds the period that the NEF stores records of the nature requested once audited. In terms of National Treasury Regulations, the NEF is required to keep records containing the requested information for a maximum period of 5 years.

It is therefore not possible at this point in time to respond comprehensively to the question as this is an onerous task by virtue of the considerable time that has lapsed since appointment of the CEO in 2005. Over the last few years the NEF has responded to similar questions relating to its CEO from the DA and has provided all necessary information as that related to information which was within its possession. We would also like to bring the Hon. Bagraim’s attention to the fact that the Hon. McPherson asked a similar question about the CEO of the NEF on 15 April 2016 and the NEF has provided responses thereto.

It is therefore regrettable that the NEF has had to contend with this volume and frequency of questions that relate to the same matter as this distracts valuable care and attention from the core business of the NEF. The latest request might necessitate the appointment of an external service provider to review NEF records and compile the report required by Hon. Bagraim.

Reply:

The forensic report has been released to relevent role players for their attention and action.

Reply:

Response:

Questions 1 and 2

QUESTION 1 a)	QUESTION 1 (b)(i)	QUESTION 1 (b)(ii)	QUESTION 1 (b)(iii)	QUESTION 1 (c)	QUESTION 1(d)	QUESTION 1 (e)	QUESTION 2
Nine (9) Officials were suspended with full pay	R 6, 653 082,68	The Names of the officials cannot be disclosed	Project Manager	Forgery and misrepresentation	07/07/2015	R 96 232.87	Finalised.
			Chief Director	Victimisation of staff, unfair treatment and abuse of power	09/07/2013	R 2 081 006.63	Finalised.
			Chief Director	Breach of sabattical contract/ Absence from work without permission	22/02/2016	R 199 549.68	Finalised.
			Director	Bribery and conflict of interests	03/12/2013	R 1 912 773.82	Finalised.
			Deputy Director	Fraud	23/07/2015	R 132 702.16	Finalised.
			Deputy Director	Misrepresentation and dishonesty	01/04/2015	R 753 367.75	Finalised.
			Assistant Director	Bribery and conflict of interests	03/12/2013	R 1 112 049.11	Finalised.
			Assistant Director	Corruption	24/10/2014	R 194 966.07	Finalised.
			Trade and Industry Advisor	Misrepresentation	02/11/2015	R 170 434.59	Disciplinary Enquiry in progress.

Reply:

Response

1. and (2) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

 

Reply:

(1) According to the response received from the CIPC:

(a)(i) CIPRO did not have a procedure to transmit information to SARS but CIPC have done that since 2014.

(ii) The Special Power of Attorney and the certification of incorporation are attached for your further perusal.

(b) The CIPC does not have the CM 5 form in its records.

(c) The CM3 and Special Power of Attorney and Certification of Incorporation are attached hereto and marked as “Annex A, B and C” respectively.

(2) According to the response received from the NLC:

The NLC can confirm that applications received, processed and adjudicated by the NLC all are from the SA Apartheid Museum.

(a) There has been no investigation by the Compliance Division on the SA Apartheid Museum or on the fraudulent diversion of funds.

(b) Yes, the application received was from the SA Apartheid Museum. All supporting information bears such name.

(3) (a) According to the response received from the NLC, yes.

(b)(i), (ii), (iii) and (c) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(4) (a) and (b) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(5) According to the information received from the CIPC, the CIPC indicated that the CM5 was included in its attachments in the previous response. When responding to the follow-up question and upon request of the CM5, it indicated that it does not have it in its records.

According to the information received from the NLC, there was no correction and/or an indication to expunge the original information provided. However, after receipt of its response and the telephonic conversation requesting further information with regard to question 1153(5)(b)(i), it confirmed that there was no adjudication which took place in 2008 for SA Apartheid Museum.

According to the information received from the NGB, the GGB is an independent entity and it is not in a position to respond on its behalf. It recommends that the Honourable Member source information directly from the Gauteng Gambling Board.

(5) According to the information received from the CIPC, the CIPC indicated that the CM5 was included in its attachments in the previous response. When responding to the follow-up question and upon request of the CM5, it indicated that it does not have it in its records.

According to the information received from the NLC, there was no correction and/or an indication to expunge the original information provided. However, after receipt of its response and the telephonic conversation requesting further information with regard to question 1153(5)(b)(i), it confirmed that there was no adjudication which took place in 2008 for SA Apartheid Museum.

According to the information received from the NGB, the GGB is an independent entity and it is not in a position to respond on its behalf. It recommends that the Honourable Member source information directly from the Gauteng Gambling Board.

Reply:

(1) and (2) The GGB is an independent entity which does not account to the dti as the national department. Therefore it is recommended that the Honourable Member source information directly from the Gauteng Gambling Board.

(3) (a) According to the response received from the CIPC, these two company names are not registered on the CIPC’s database.

(b) Information regarding incorporation of companies is best sourced from the CIPC.

(4) According to the response received from the NLC:

(a)(i) The Section 21 Company Registration Number is given as 2001/019108/08.

(ii) The bank account named in the application was SA Apartheid Museum.

(b) In light of the above naturally, any allocated funding will be paid into the account of the applicant/beneficiary as per the application form.

(5) According to the information received from the NLC:

(a) Three Payments were made to the SA Apartheid Museum as follows –

Tranche Amount

1. R600,000.00

2. R585,000.00

3. R400,000.00

All payments are disclosed in the NLC Annual Reports which can be located on our website: www.nlcsa.org.za

(b)(i) SA Apartheid Museum applied for grant funding during 2004 and tranches were paid as indicated above. In 2008 the NLC migrated information from Grant Management System (GMS) 1 to GMS 2. When the migration was done, certain information was corrupted in that applications adjudicated in 2004, 2005, and 2006 gave an impression that they were adjudicated in 2008 whereas there was no such adjudication of SA Apartheid Museum in 2008.

(ii) The Annual Financial Statements of the SA Apartheid Museum for financial years 2001, 2002 and 2003 were submitted with the original application on 24 November 2004.

(c) The project number for the application received by the NLC of the SA Apartheid Museum on 24 November 2004 is 18052.

Reply:

1 c) and d) the dti is not providing any incentives specific for the Industrial Parks.

(2) The Industrial Parks are owned and operated by Agencies that fall under the provincial government. These Agencies manage the industrial parks including the collection of revenue, the provision of services and maintenance of the parks. Each Industrial Park has its own management structure. The table below provides details of the respective agencies and the human resources for the management of the Industrial Park. (See Annexure “A”)

Annexure “A”

INDUSTRIAL PARKS MANAGEMENT STRUCTURE

INDUSTRIAL PARK	PROVINCE	Managed By:	Organisational structure
Vulindlela Industrial Heights King Sabata Dalindyebo Municipality	Eastern Cape	Eastern Cape Development Corporation (ECDC)	Head Properties Administrator Personal assistant Senior Manager Facilities Senior Manager Property Investment and Development Senior Manager Property Management. Manger rentals and collections
Queendustria Chris Hani Development Agency	Eastern Cape	Chris Hani Development Agency	Executive Manager Operations Project administrator Chief Investment Officer Business Development manager Project Manager Social Facilitator Finance and Admin Manger
Isithebe Ithala Bank	KwaZulu-Natal	Ithala Bank	Ithala CEO Properties Executive Divisional Manager -Property Management Divisional Manager -Facilities Management Divisional Manager - Asset Management.
Botshabelo Free State Development Corporation (FDC)	Free State	Free State Development Corporation (FDC)	FDC CEO Executive Director – Core Operations Properties and Facilities Manager District Property Manager
Babelegi North West Development Agency (NWDA)	North West	North West Development Corporation (NWDC)	Area Manager Admin Officer 3 X Tenant Coordinators 1x Maintenance Supervisor 2x Handymen 2x Assistant Handymen 2x Gardeners 1x Refreshment officer
Seshego Limpopo Development maintenance Agency (LEDA)	Limpopo	Limpopo Economic Development Agency	Executive Manager Industrialization Head: Land &Property Development Regional Manager Facilities Manager Electrician Leasing Officer Rental Controller Office Admin

Reply:

Some officials have on occasion participated in meetings where the highlighted individuals have been present, including business related events, conferences and business delgations. For example, during a State Visit to India, officials met with Mr Ajay Gupta as part of the engagement with business. On another occasion, officials engaged with Messrs Ajay and Atul Gupta during the BRICS Summit in March 2013. On a different occasion, an offical interacted with Mr Atul Gupta at an ICT Steering Committee tasked to deal with the ICT Policy review under the Department of Communications and Postal Services. All of these interactions were conducted as part of the dti’s stakeholder engagement process on core area work.

the dti Marketing team have interacted with The New Age (TNA) officials for media buying purposes like any other print media house.

The advertising team procured advertising space based on advertising plans for various campaigns.

The companies cited above have not participated in any of the dti investment schemes.

Response from the Entities

No Entities apart from the NEF have interacted with the Guptas, as Ms Philisiwe Mthethwa served on the Board of Afripalm Resources with Mr Atul Gupta and resigned from this board in 2010.

Reply:

Official in questiom	1(a)	1(b)	2(a)	2(b)	2(c)	2(d)
Ms Philisiwe Mthethwa	Seven (07)	Three (03)	Domestic: R52 954.18 International R99 576.72	Domestic: R25 544. 13 International: R89 637.54	Domestic: R4 772.10 International: R0.00	Domestic: R0.00 International: R49 938.91

(3) (a) what (i) class of travel and (ii) star hotel was used by the specified person in each case, (b) what was the purpose of each specified trip and (c) what was the length of stay in each specified case?NW1235E

Official in questiom	3(a)(i)	3(a)(ii)	3(b)	3(c)
Ms Philisiwe Mthethwa	Business Class	It varies based on affordability and availability at the time	DOMESTIC National Budget Vote Addressing Africa Investor conference on co-investment opportunities in partnership with NEF funded black industrialists. Addressing stakeholders and the media at the launch of the Paardevlei hospital, built by NEF-funded company, BusaMed Attended UCT MCom Development Finance Forum: Presidential Forum on development finance with the theme Empowering Africans: Role of Development Finance Meeting with officials from Department of Rural and Land Reforms; Meeting with officials from Department of Labour Meeting with Hon. Minister Davies, Hon. Deputy Minister Masina, DG October; Attended Parliamentary Briefing on the NEF's 2nd Quarter financial and non-financial report; Stakeholder meeting with MEC for Health in KZN Dr Sibongiseni Dhlomo to discuss assistance by the NEF to black people who are awarded hospital licenses by the department. This was as a result of a worrying trend identified by the NEF whereby the department of Health awards licences to black people who end up selling the licenses to white owned companies because they do not have capital to commercialise such licences. The outcome of this meeting was that the NEF supported a broad based group in further participating in a commercial hospital enterprise and the parties agreed to do more work on the issue of awarding of licenses. Attended the State of the Nation address and meetings with various stakeholders to discuss NEF projects Attended the National Budget Vote, meeting Minister Gugile Nkwinti to present the NEF’s portfolio of Rural and Community Development projects, requesting intervention of the Department in some of the projects; discuss collaboration between the Department and the NEF Rural and Community Development Fund in the implementation of projects, discuss NEF involvement in Department’s 50/50 project. The meeting resulted in the NEF and the Department collaborating in supporting rural community development around the country. The NEF also assisted in conducting due diligence investigations and structuring of land acquisition projects by the department Meeting with Minister Mildred Oliphant to discuss the large-scale retrenchments facing the country as a result of prevalent economic conditions: Discuss NEF proposed interventions to reduce the impact of retrenchments and to assist people who will be affected with funding and non-financial support for small business opportunities; Discuss potential involvement of the Department and its agencies (e.g. the UIF in supporting such SME’s) The meeting resulted in further engagements between NEF, the Department and UIF for the benefit of unemployed and retrenched people in the country. Attended Parliamentary Briefing on the NEF's 3rd quarter financial and non-financial report. INTERNATIONAL At the invitation of the South African Government participated in the Outward Mission and business forum “Invest in Senegal” in June 2015, where the CEO delivered presentations to highlight some of South Africa’s milestones for industrial, infrastructure and manufacturing projects. The Senegalese Government hosted the business forum as part of efforts to strengthen bilateral economic relations and to promote Intra-African trade and economic integration between the two countries. The forum also provided a platform for the presentation of flagship projects that are aimed at attracting South African investors and SADC countries into the Senegalese market, which could potentially present prospects for export-oriented NEF investees. The CEO of the NEF was also invited specifically because of her proficiency in the French language. The conference was attended by several Senegalese Cabinet Ministers and well over 250 participants comprising Senegalese entrepreneurs 3) (b) (ii) Deauville, France Following the request by the organisers of the Women’s Forum Global Meeting 2015, which took place in October 2015 in Deauville, France, Ms Mthethwa successfully mobilized the participation of women leaders from across South Africa's private sector in order to chart a path for global inclusive growth and for building the future with women’s vision, together with counterparts from different parts of the world. Ms Mthethwa subsequently led a team of South African businesswomen to the conference, which brings together leaders from all over the world from business, government, academia and from across civil society in order to mainstream gender across all spheres of human endeavour, and to propel women’s participation in the business world. While in Deauville the CEO addressed, as a key note speaker, a business luncheon hosted by the South African Ambassador to France on the sidelines of the conference targeting key economic players from different sectors among the participating countries and companies for the purpose of mobilizing potential partners for the NEF’s black industrialist projects and for South Africa’s broader national economic interests. Following engagements with the leadership of the organizing body, the CEO succeeded in securing agreement for South Africa to host a conference for one of the annual meetings of the WOMEN’S FORUM in 2017, a milestone which is expected to have important multiplier benefits for the domestic economy. 3) (b) (iii) Paris, France The CEO met with officials of Areva in order to resuscitate the Junior Manager Development Programme (JMDP). In partnership with the Chamber of Commerce and Industry of Paris (CCIP) and Agence Française de Développement (AFD), the NEF ensured successful implementation of the Programme between 2010 and 2011, which saw 96 South African Junior Managers from different sectors of the economy, completing six-week experiential training with leading companies in France. This began with a 2-week training seminar at a CCIP associated business school in Paris. The aim was to reinforce managerial skills, negotiation strategy, team building, and dynamics, as well as to facilitate the managers’ integration into their host companies by providing them with tools to understand the French and European business and cultural context. This was then followed up by a 4-week internship at French host companies, which were identified specific to the sector from which the participant had been selected in South Africa. The sectors prioritized for skills development were government, energy, infrastructure, finance, information and communication technology, Business Process Outsourcing (BPO), aerospace and agro processing. Following this important milestone, the NEF is keen to reintroduce the programme and the discussions with Areva were for that purpose. 3) (b) (iv) ) Paris, France The CEO’s engagement in France was also with Axonia Partners, the number 1 adviser worldwide in terms of the number of African private equity funds raised. They also advise top General Partners from the US and Europe in their fundraising endeavours, and the engagement with Axonia was in pursuit of the mobilization of investments to commercialise the NEF’s portfolio of strategic industrial projects valued at R27 billion with an employment-creation potential of 80 000 jobs.	14 Business days 10 Business days

Reply:

The dti Internal Audit unit conducted an investigation and did not obtain evidence to support the allegations of corruption in the Cooperative Incentive Scheme. The letter with relevant information was sent to Mr Chance on the 16th January 2016.

Reply:

(1)(a) Although the Coega IDZ was designated in 2002, it only began receiving investments in 2006. This was largely due to the fact that it took longer to set up the IDZ and also that some of the earmarked investments never materialised. Accordingly, the number of companies that have invested in the Coega IDZ in each year since its opening is as follows:

Year	Number of investors
2006	2
2007	1
2008	4
2009	2
2010	6
2011	1 plus 1 expansion
2012	3
2013	5 plus 1 expansion
2014	4
2015	4
TOTAL	33

(1)(b) Number of persons employed by each company:

The Coega IDZ has a total of 33 operational investments resulting in a total of 7 174 direct jobs in the zone. The average number of direct jobs per investment stands at 224,2 jobs per investment project. The lowest number of jobs in a single investment project is 9; while the largest number of jobs created in a single investment project is 1 783. (See Annexure “A” for ease of reference)

(1)(c) Value of investments

The Coega IDZ has a total of 33 operational investments resulting in a total investment value of over R6,4 billion. The biggest single investment in the zone is R3, 5 billion, while the smallest single investment is R5 million. The average value of investment per investment project currently stands at R183, 5 million.

(1)(d) Details of incentives offered to each company

According to our records, only 12 companies in the Coega IDZ received incentives from the dti and the details are as follows: (See Annexure A)

Company	MCEP	EIP	BPS	AIS
Agni Steels		R9, 473, 700.00
FAW				R 54,663,648.00
DCD WindTowers		R6, 442, 354.00
Coega Dairy		R13,784,340.00
Cape Concentrates		R6, 322, 266.00
Grupo Antolin		R7, 638, 991.00
Famous Brands	R1, 078, 256.00
WNS			R 87,293,326.00
Faurecia		R11,757,623.00		R 7, 971, 800.00
Rehau				R 49,883,773.00
Benteler				R17,715, 213.00
Inergy				R1, 771, 259.00
Q-Plus				R1, 181, 605.00

(2)(a) Number of direct jobs created at Coega IDZ during (aa) 2011-12, (bb) 2012-13, (cc) 2013-14, (dd) 2014-15 and (ee) 2015-16 financial years and (ii) since 1 April 2016 is as follows:

Year	Number of Direct Jobs
2011	1 138
2012	510
2013	1 154
2014	667
2015	152
TOTAL	3 621

(2)(b) Number of indirect jobs created at Coega IDZ during (aa) 2011-12, (bb) 2012-13, (cc) 2013-14, (dd) 2014-15 and (ee) 2015-16 financial years and (ii) since 1 April 2016?

The number of indirect jobs created through the Coega IDZ investments since 2011 is not available, as the department still has to commission an impact study of the SEZ Programme since 2011.

Reply:

The department received an application that was assessed by the Agro Processing sector desk for the establishment of Canola Oil value chain in the Eastern Cape. The project did not meet the criteria for any incentive programme, therefore it was not considered.

Reply:

In terms of the rules applicable to Members of the Executive and Members of Parliament, Ministers have to disclose their Financial and/or business interests to both Parliament and the Presidency in compliance with the applicable ethics code. All financial interests of the member and family are disclosed annually. The Minister has always complied with these requirements.

Minister Davies has no interests in any businesses and none of the members of his family has had any business dealings with Government. The Minister is a Director of the Institute of African Alternatives, a non-profit organisation, for which he receives no remuneration.