Pro-poor 1 000 young Municipalities Education entrepreneurs must regain 7 Policies are 9 countrywide to 10 the trust of achieving benefit from the the people results Small Business and Innovation Fund

Vol. 01 Official newspaper of the Parliament of the Republic of Issue 05 2019

LAW OF APPROPRIATION: Appropriation for service delivery to the people.

Procedures and Related critical for the budget process Parliament: Appropriation Matters Act. to be demystified. The budget is about people’s lives, and our Bill will be used to hold Mr Buthelezi said: “The Bill democracy is a participatory proposes to appropriate from one. It cannot be, and it should National Revenue Fund for not be seen to be something government accountable the requirements of the state for the chosen few.” and to prescribe conditions for the spending of funds that Chief among the committee’s During the course of the Appropriation Bill debate, political parties have been withdrawn. For priorities is to ensure that represented in the National Assembly (NA) voiced their favour and service delivery to continue, it there is value for money in disfavour about its course, and the effect it would have on how the is critical that the House today all that government does. passes this Bill. “Economic growth is positively government dispenses its service delivery mandate, related to the revenue. If the writes Abel Mputing. He pointed out that the economy does not perform, do Bill is one of the oversight not expect miracles from the instruments that the South African Revenue Service. The Chairperson of the Portfolio that the Bill is presented diligence and hard work in committee will utilise to hold Although revenue shrinks, Committee on Appropriations, before Parliament. ensuring that they are able the executive accountable. people’s needs do not shrink,” Mr Sifiso Buthelezi, expressed to table the report in the NA The Budget Vote also serves said Mr Buthelezi. his gratitude to the committee He thanked the members within the time prescribed by as a means of advancing for the work it did to ensure of the committee for their the Money Bills Amendment participatory democracy. “It’s The bleak economic situation

PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA www.parliament.gov.za parliamentofrsa 2 INSESSION NEWS

has forced the National in until the African National allows Parliament to amend Furthermore, “there is no The Appropriation Bill Treasury to borrow 4.3% of Congress decided to recall Mr the Money Bills, yet we agree consequence management authorises the allocation of our gross domestic product Zuma.” on much-needed changes for those who are implicated money from the National (GDP), he declared. “The but all our debates end up in mismanagement of funds Revenue Fund (NRF) to various deficit of R215 billion of Furthermore, Mr Joseph said in a talk shop. We rubber and corruption”, he claimed. state institutions to enable GDP must be borrowed. The that the allocation of R17.6 stamp everything tabled “If you find someone else’s its expenditure. This is done committee is both appreciative billion to Eskom without by the Minister of Finance,” hand in your pocket, you react in line with Section 213 of and sympathetic to National conditions “is counter- emphasised Ms Mokause. immediately. But when it the Constitution and Section Treasury and the executive productive”. Eskom, in his comes to someone taking from 26 of the Public Finance in the balancing act they view, should be unbundled, Leader of the the state coffers, there is little Management Act (PFMA), that have to execute under very as should other state-owned Inkatha Freedom or no reaction – and that is a require Parliament to approve trying economic conditions. entities. “State-owned major problem.” any withdrawal of money from The backlog of services and entities that are embedded Party Prince the National Revenue Fund for inequalities was deliberately with corruption and Mangosuthu Adding to the perception allocation and expenditure by created to forever make the maladministration are making Buthelezi said of a lack of consequence state organs. majority of South Africans South Africans poorer and must transparency management, Mr Steven spectators in the economic be restructured.” should underpin Swart of the African Christian The Bill was tabled by the activity of their own country. Democratic Party, alluded Minister of Finance Mr Tito This situation was man-made.” According to Ms Mmabatho government to the fact that a lot has Mboweni in Parliament on Mokause representing the expenditure. This since come out at the Zondo 20 February 2019 as part of A different scenario to our in the NCOP for is “essential in Commission of Inquiry and his Budget Speech. The Bill country’s economic growth woes the Economic Freedom Fighters, ensuring that other commissions, and lapsed after the last sitting was painted by Mr , the Cabinet is too big. “The South Africa those implicated in acts of the National Assembly of of the Democratic Alliance for the money used to pay salaries can of corruption should be the Fifth Parliament, but was Western Cape, who suggested be used to deliver services. The knows exactly prosecuted. “With every day revived in June 2019 following that “income to the state should irony is that we agree on these where its money that passes, it becomes more the establishment of the 6th guide our expenditure”. President matters in our Budget Votes, will be spent”. difficult to reclaim lost billions Parliament and the revised ’s “new dawn” but we consent to the passing What is of concern of rands to corruption. Those cabinet portfolios. is the “admission of guilt that of the Appropriation Bill without to him are “gross implicated must be arrested the government has failed South the smallest amendment to and prosecution must take The reconfiguration of cabinet Africans”. what we agreed on.” amounts of place. Stolen funds must be portfolios resulted in the irregular, fruitless, recovered.” reorgansiation of government He claimed that South Africa’s She further pointed out that it wasteful and departments, including the economic difficulties took root took 10 years for Parliament unauthorised The National Council of establishment of new ones. during former President Jacob to have the powers to amend expenditures Provinces also passed the 2019 This necessitated technical Zuma’s administration. “We the Money Bills, but it does Appropriation Bill following the modifications of various budget started the Stop the Zuma little to utilise them to conduct incurred by National Assembly agreeing to votes and allocations in the Bill campaign in 2009. South Africans effective oversight over the departments year- the Bill at its plenary sitting. tabled in February. from all walks of life joined executive. “The Constitution on-year”.

Minister . BUDGET VOTE DEBATES 3 Parliament passes special Appropriation Bill to save Eskom Editor Brent Simons The deepening financial crisis at Eskom has led to the tabling of a special Appropriation Production editor Mava Lukani Bill before the National Assembly in July by the Minister of Finance, Mr Tito Mboweni. This Design and layout undertaking attests to the fact that Eskom is the pulse of our economy, reports Abel Mputing. Angelo Lamour

Copy editors Jane Henshall, Vusumzi Nobadula

Writers Sakhile Mokoena, Abel Mputing, Zizipho Klaas

Photography Mlandeli Puzi, Zwelethemba Kostile

Distribution & subscriptions Jacqueline Zils

Publisher Parliament of the Republic of South Africa

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Section Manager: Publishing and Production Shirley Montsho

Copyright INSESSION is is published by the Information and Content Development Unit of the Parliamentary Communication Services of the Parliament of the Republic of South Africa. In his opening remarks, Mr Eskom financial assistance rating agencies. “The Chief solutions, may likely have a All material published is copyrighted and cannot be Mboweni alluded to this in outside of the above- Restructuring Officer, who will negative systemic impact, as reproduced without the written no uncertain terms. “Eskom mentioned fiscal framework. be appointed shortly, will be Eskom is the largest non-bank permission of the publisher. presents the biggest risk of This seeks the approval for mandated to test these options corporate debt issuer in South EDITORIAL ENQUIRIES the fiscal framework because additional financial support for with the rating agencies to Africa. Any default will result in Telephone 021 403 8738 of its financial problems Eskom of an additional R26 establish what impact each a crisis for the government and E-mail [email protected] and negative impact on the billion in the 2019/20 financial will have on the fiscus, and to some South African banks, Subscriptions economy.” year, and R33 billion in the recommend the appropriate given that Eskom is the largest [email protected] 2020/21 financial year.” one for implementation,” said exposure to some banks and Post PO Box 15, Cape Town, 8000 Mr Mboweni told Members Mr Mboweni. the government.” of the National Assembly According to Mr Mboweni, OUR IDEALS Vision that given Eskom’s strategic apart from the current financial The restructuring will divide He concluded that the An activist and responsive position in the South African assistance, Eskom’s long-term Eskom into three components: government must act boldly people’s Parliament that economy, the government is sustainability hinges on its Generation, Transmission and and precisely to save Eskom improves the quality of life of South Africans and ensures urgently working on stabilising ability to be self-sufficient. Distribution. This will “allow from sinking our economy, for enduring equality in the utility, while developing a “A team of officials, led by strong parts of the business to the implications of that are too our society. Strategic Objectives broad strategy for its future. the Directors-General of the raise funding more cheaply. huge to bear. Strengthening oversight and The current financial problems National Treasury and Public To create higher transparency accountability; enhancing public involvement; facing the utility have exposed Enterprises, has considered across the value chain and “We are tabling this special deepening engagement in it to high levels of liquidity and a number of options as the reduce opportunities for fraud, Bill to ensure the security of international fora; balance sheet risks. solution to the company’s debt corruption and rent-seeking. electricity supply beyond the strengthening cooperative government; challenges in order to ensure To create clear performance medium-term, with significant strengthening legislative capacity. “Without changes to Eskom’s its sustainability,” said Mr incentives in each business and consequences for the economy. BOOK A TOUR business model and financial Mboweni. to reduce systemic risk South To tour Parliament assistance being provided by Africa faces by having one very The frequency of the power Telephone 021 403 2266 the government, the company Coupled with this, Mr Mboweni large entity. shortages has risen in recent E-mail [email protected] will be unable to meet its said the structuring of Eskom years, and government needs financial obligations through operations, an undertaking “Failure to strengthen Eskom’s to act boldly and decisively. We the 2019/20 financial year that will be vested in the Chief balance sheet urgently while are therefore committed to a budget allocation … In effect, Restructuring Officer, will be the government is working significant reform agenda for this special Bill seeks to grant done in collaboration with on long-term sustainable the entity.” 4 INSESSION NEWS ‘Let’s build local government that delivers services to the people’

Giving context to the Department of Cooperate Governance and debate will help us to assess failure to respond to its Traditional Affairs’ Policy Debate in the National Council of Provinces the progress made in achieving recommendations in the past.” government’s policy priorities. For (NCOP), Minister Dr Nkosazana Dlamini-Zuma reminded delegates the mandate of the department We should act that the debate was taking place on the birthday of former President is to develop and monitor the Nelson Mandela, the champion of the Reconstruction and Development implementation of national decisively on the Programme (RDP) which defined the new service delivery mandate of policy and legislation aimed at Auditor-General’s transforming and strengthening the democratic state, reports Abel Mputing. key institutions and mechanisms recommendations, of governance in all three she said, “in spheres of government, to fulfil defence of the its developmental role.” “Thus his name is engraved Dr Dlamini-Zuma underlined instead “focused, efficient and working class and in history as the father of our from the onset that the policy effective, and which has centres While there has been the poor, who are democracy and the architect debate should avoid rhetoric and of excellence that are easily progress made over the last of the RDP programme that rather concentrate on fashioning accessible to the people”. 25 years, Dr Dlamini-Zuma denied services was aimed at addressing the an ideal local government acknowledged that challenges as a result of socio-economic injustices sphere capable of meeting The policy debate is an in local governance persist. inefficiencies and of apartheid through the the service delivery demands opportunity for the department “We particularly note the provision of houses, electricity of all South Africans. The ideal to reflect on its challenges and unpalatable audit outcomes corruption”. and access to clean drinking local government sphere, she opportunities as a custodian and the recommendations water,” she said. continued, is the one that is free of key national policies and of the Auditor-General, Also participating in the from corruption and graft, and is legislation, she said. “This as well as government’s debate, the Chairperson of the BUDGET VOTE DEBATES 5

Select Committee on Cooperate According to the Democratic Ms Visser blamed what she Gauteng provincial delegation Mr Bheki Stofile, reminded Governance and Traditional Alliance’s Ms Carin Visser a termed rampant corruption in echoed the concern over the delegates that municipalities Affairs, Water, Sanitation delegate representing the local government on the lack collapse of municipalities’ have not been able to raise and Human Settlements, Mr North West Province, the reality of enforcement of existing financial management. “The their revenue or achieve self- Thamsanqa Dodovu, said: is that 25 years of democracy instruments to prevent recently released report by sufficiency. “The current reality “We must be frank and candid have been mired by service transgressions. “The Municipal the Auditor-General showed is that municipalities are under about the challenges we are delivery discontent that has Financial Management Act is the scale of collapse in extreme cash flow constraints, faced with. Yes, we have often turn violent, “resulting not enforced and the rule of local government. Out of with the aggregated year made mistakes. We are the in apocalyptic war zones of law not respected or honoured 257 municipalities, only 18 collection of 83.3%, with first to admit that we have destruction on an almost daily by those entrusted to ensure received clean audits in the more than 123 municipalities not delivered as expected and basis in South Africa. Towns compliance with the laws.” 2017/18 financial year. Things with less than 80% collection we have underestimated the are being looted and burnt are getting worse, not better,” levels.” magnitude of our challenges.” down and private properties Mr Kenny Motsamai he warned. vandalised.” representing the Economic “The state of our local Freedom Fighters in the Mr Ezra Mfayela of the Inkatha He further government is a source Freedom Party in the KwaZulu- asserted that the of serious concern. There Natal provincial delegation, “Intergovernmental are no improvements in said the solution to corruption Monitoring, Support the audit outcomes; there in local municipalities is to is poor accountability and adopt a pluralist approach to and Intervention no consequences for poor local government and dissolve Bill, currently performance.” the centralisation of power. mooted, will create “We remain advocates of a predictable Some of the reasons for this the belief that communities gross ineptness and financial are best placed to address framework management transgressions their individual needs and of support to are: “There are numerous challenges. They must not municipalities and supply chain transgressions. simply be informed of the eliminate subjective Municipal Infrastructure Grants decision taken, they must are underspent or poorly spent exercise their citizen power political factors by municipalities, and there through true partnership with being used to is high employment of under- the state, and ultimately justify section 139 qualified managers.” they must control the pace and agenda of development interventions.” Despite all this, Mr Dodovu required in their communities,” said: “Under the leadership of Mr Mfayela asserted. The Bill will also initiate Dr Nkosazana Dlamini-Zuma, early warnings systems that a tried and tested leader, we Also participating in the “will enable appropriate are going to turn the tide. She debate, the National Executive and relevant support from has a track record of Member of the South African national, provincial, to local succeeding in that.” Local Government Association, government”.

These are the people, she merged after the May general added, who migrate to urban elections, Minister Sisulu ‘Urban migration puts areas at the rate of 2.4% per was concerned about people annum, putting pressure on living far from their places infrastructure and creating the of work. “Our people spend pressure on infrastructure backlog in housing provision. huge amounts of money on “We still continue with a transport to take them to development’ skewed development where their places of work. In our the developed parts of the planning, we should urgently country extract cheap labour find land and places to live from the rural areas, further where there is work, and under-developing these areas,” create work where they live, The Minister of Human Settlements, Water During the department’s policy she said. with all amenities that you find and Sanitation, Ms , had the debate, Minister Sisulu told the in the cities. NCOP plenary that South Africa support of permanent delegates to the National The Minister said: “We need is “world-renowned for the to drastically find solutions “Unless we strike some Council of Provinces (NCOP) and the South inequalities in our society and and restructure this apartheid equilibrium, we will continue African Local Government Association (Salga) this is graphically illustrated reality. We need to take to have the problems of when she called for urgent solutions to reverse in the patterns of settlement. infrastructure, houses and jobs decaying, over-utilised and apartheid spatial planning. People flock to Statistics South Africa (Stats SA) to our people where they live overburdened cities and indicates that almost half of our cities looking for jobs, which puts pressure on and revive our rural towns.” decaying, under-utilised and population is living in poverty. under-serviced rural towns. municipal infrastructure and threatens the These are mainly in the rural Tabling budgets for Human The faces of capital might sustainability of smaller towns and rural areas, areas, especially in the Eastern Settlements and Water and have changed over the past writes Sakhile Mokoena. Cape and Limpopo.” Sanitation, which were 25 years, but the modes of 6 INSESSION NEWS

HUMAN SETTLEMENTS: Delivery of houses to the people. production are the same, this amount, R9.417 billion Also participating in the a rising number of households apartheid and to integrate all creating under-development in is appropriated for the debate, African National in need of water and sanitation communities, new residential rural areas and small towns,” infrastructure development Congress delegate for Limpopo services. This, in effect, means areas should be integrated said the Minister. programme under the in the NCOP, Ms Shahidabibi that government needs to with middle-class and affluent Regional Bulk Infrastructure Shaikh, said: “Access to water keep up with a ‘moving residential areas. This, he For the 2019/20 financial Grant (RBIG) and Water and sanitation infrastructure target’.” claimed, would enable all year, the Department of Services Infrastructure Grant and services in South Africa people to gain access to nearby Human Settlements has been (WSIG). The Minister added has improved significantly Ms Shaikh said public and privately owned allocated R33.8 billion. The that the lack of sufficient bulk since 1994, however, an assets, such as schools, health Department of Water and and link infrastructure was increasing number of people in terms of the and safety facilities, transport, Sanitation (DWS) has been constraining provincial housing are migrating to the bigger Millennium shops, recreational facilities allocated R16.4 billion. Of development. metropolitan areas, resulting in Development Goals and places of work. (MDGs) South Africa Economic Freedom Fighters has met its target (KwaZulu-Natal) NOCP for access to safe delegate, Mr Moletsane drinking water with Moletsane, was of the moderate progress view that the budget was insufficient to deal with the in reaching the housing challenges or to sanitation target. address the legacy of centuries The United Nations of colonialism and apartheid. recognised water Representing Salga in the and sanitation as debate, Councillor Xolani human rights in 2010 Sotashe, argued that “Many and has set a goal of disenfranchised communities continue to be denied access access to water and to employment and economic sanitation for all by opportunities by being the year 2030. geographically located far from such opportunities, and Another delegate to the by being structurally excluded NCOP, the Western Cape and from urban landmarks the Democratic Alliance’s, Mr in metropolitan areas, Isaac Sileku suggested that intermediary cities and small to break down the barriers of towns.” BUDGET VOTE DEBATES 7 Pro-poor education policies are achieving results

Pro-poor government policies, such as the no-fee schools, the National Leaner Transport Policy and the National School Nutrition Programme (NSNP), are playing a significant role in advancing the objectives of the National Development Plan (NDP), said Mr Elleck Nchabeleng, the Chairperson of the Select Committee on Education and Technology, Sports, Arts and Culture, writes Sakhile Mokoena.

Mr Nchabeleng was taking learners are benefiting from schools, so learners have year, as we do our oversight No-fee schools part in the policy debate of the school feeding schemes and to travel long distances to visits across the country”. Department of Basic Education subsidised public transport. schools. Learners arrive at produce the in the National Council of This has contributed to the school tired and do not cope Tabling the department’s R24.5 highest number Provinces (NCOP). The policy increase in school attendance in their studies. As a caring billion budget allocation for the of distinctions, debates that took place in the from 51% in 1994 to 99% government, we developed a 2019/20 financial year, Minister NCOP follow the Budget Vote today,” said Mr Nchabeleng. scholar transport policy that told the NCOP she pointed out, debates that took place in the has come to the rescue of that the country’s education even in gateway National Assembly in June. Another such pro-poor policy multitudes of learners. The system was on the rise. “Our subjects such is the Scholar Transport number of learners who are basic education system is Mr Nchabeleng said the Programme, through which benefiting from the system slowly and surely reclaiming as mathematics, pro-poor policies have been government provides free have increased over the years” its rightful place among the science and effective in advancing the transport to learners who countries and economies of accounting. NDP’s vision for 2030 that live far from schools. “Due Mr Nchabeleng added that similar size and budget. We are “South Africans should have to spatial planning of the “the committee will monitor definitely a system on the rise. Minister Motshekga access to education and old dispensation, some the priorities made by the Clearly the pro-poor policies also announced training of the highest quality, communities do not have department for this financial of the ANC-led government a R256.7 billion characterised by significantly are yielding good results. We improved learning outcomes”. have also noted that more 2019/20 budget provinces are now dedicating allocation for the “The no-fee school policy has resources and support for the nine provincial been very effective as currently progressed learners. We can we have 99.9% learners assure this House that we education in compulsory schooling in will intensify our monitoring departments, an our basic education system. and evaluation mandate, as increase of 6.9% Some of these learners we are enjoined to do so by would not have been able to the National Education Policy from the 2018/19 access education if they were Act, and intervene where it is overall adjusted forced to pay fees, as 90% of desirable for us to do so,” the allocation. public schools have become Minister said. no-fee paying schools, and 8 INSESSION NEWS

‘Social grants should enable self-sufficiency, not dependency’

The Minister of Social Development, Ms , has told the The Minister said her no significant improvement department was in the in basic education. She also National Council of Provinces (NCOP) that while social assistance process of repositioning the accused the government of programmes remain government’s most successful interventions entire basic education sector failing to ensure that education for poverty reduction, social grants alone are insufficient to lift to effectively and speedily is enshrined as a fundamental beneficiaries out of poverty on a sustainable basis, respond to the demands of human right. “The Constitution the “new dawn”. The sector states that the state has an writes Sakhile Mokoena. must be able to implement obligation, through reasonable with speed and effect the measures, to progressively priorities identified, while make education available and addressing the challenges accessible to all South Africans. and weaknesses identified However, 25 years after the within the sector and by the dawn of democracy in South Auditor-General of South Africa. Africa, the government still has “We are cooperating with the not ensured that education is Department of Public Service enshrined as a fundamental and Administration and the human right,” Ms Christians National Treasury in this critical said. work,” she said. “It is unfortunate that despite Minister Motshekga said: “The yearly increases allocated NDP aims for a world-class to this department, no assessment system involving significant improvements have reliable measures of learning been seen.” Furthermore, for every primary school. the department’s annual DELIVERY OF SERVICES: Grants recipients served. We are currently piloting a performance plan did not standardised assessment, prioritise school safety and She added: “This does not in called Systemic Evaluation, does not provide a solution The Minister of Social any way suggest that we do with the aim of finalising its to the problem of violence Development, not want to provide social first cycle in Grades 3, 6 and 9 at schools. She proposed Ms Lindiwe Zulu. assistance, but that we would by June 2020.” the integration of the South prefer to rather have our African Police Service into the beneficiaries graduating out of For the Democratic Alliance education system, adding that the system over time.” in the Northern Cape, a “partnered solution needs Ms Delmaine Christians, to be found to this enormous Supporting her comments claimed that despite the problem compromising about the success of the social yearly increases in budget education every day.” grants, Minister Zulu quoted allocations, there has been studies which she said found that social grants play a crucial role in keeping children, the girl-child in particular, in The Department of Social sustain themselves now and in school. Last year alone, child Development has a duty to the future. support grants beneficiaries ensure food security, alleviate obtained a pass rate of poverty and provide social “This will be fully achieved 78.2% in the National Senior assistance to the vulnerable when every South African Certificate, an increase of 3.1% in our society. However, the is able to reach their full from 2017 academic year. department has been battling potential. I would love to The Department of Social to achieve these goals. see a situation where our Development’s allocation for citizens, especially our young the current financial year is Presenting her department’s people, graduate from the R184 billion and R175 billion of budget vote for debate in social grant system and this amount is a direct transfer the NCOP, the Minister said become self-sufficient, through to social grants beneficiaries. sustainable livelihoods entrepreneurship or other The department will transfer means creating a conducive empowerment programmes R212 million to the National environment for individuals, so as not to overburden the Development Agency (NDA) families and communities to fiscus,” the Minister said. and R7.6 billion to the South enhance their capabilities and BUDGET VOTE DEBATES 9

African Social Security Agency terms of the ever-rising rates of (Sassa) for the administration poverty. She claimed that we of the social assistance are nowhere near alleviating 1 000 young programme. these high levels of poverty, unemployment, inequality and The Minister presented the other social ills. entrepreneurs budget under the theme: “Working together to empower “It is estimated that social communities for sustainable grants will grow to 18,1 million countrywide to livelihoods. The theme is beneficiaries by the end of central to the core mandate March 2022. Social assistance benefit from the of the Social Development is currently budgeted for R175 Sector, whose responsibility billion for 2019/2010 and this is to enable South Africans, includes grants for old age, Small Business and particularly the poor and war veterans, disability, foster vulnerable, to become capable care, care dependency, child and self-reliant participants support, grant-in-aid and social Innovation Fund in their own development relief of distress. and, to secure a better life for themselves. “While it is commendable that we look after the vulnerable Presenting the 2019/20 departmental budget to the NCOP, the Minister The Chairperson of the Select in society, it is extremely of Small Business Development, Ms , spelt out Committee on Health and concerning that so many the department’s objectives for this financial year. One of these is to Social Services, Ms Maurencia people depend on these grants ensure small, medium and micro enterprises (SMMEs) and cooperatives Gillion, said social grants and there seems to be no light must not create dependency at the end of the tunnel in contribute to economic growth, however differences emerged on how to and must be linked to terms of sustainable jobs” she achieve this, writes Abel Mputing. economic activity. People said. must be empowered to take themselves out of poverty. Ms Christians said a solution would be to grow the economy She said the NCOP and the and create jobs. “Without department’s task is to sustainable work you cannot promote the construction of experience real dignity. a socially inclusive society, Without a job you become one that prioritises the reliant on state grants, or DELIVERY OF SERVICES: Grants recipients served. elimination of poverty, on remittances from family inequality, unemployment and members. Without a job you underdevelopment, elements live at the mercy of others, and that undermine the dignity of that is not real freedom, that the people. is not an existence worthy of human dignity.” “We welcome the minister’s approach of Contributing to the budget changing the narrative vote debate, the KwaZulu- that social development Natal delegate to NCOP for the is about disbursements of Economic Freedom Fighters grants. Rather it is about Ms S’lindile Luthuli attributed the development and the high number of people empowerment of our people, on social grants to “failing CREATION OF EMPLOYMENT: Small businesses in action. through the usage of grants. economic policies of the The SMME “sector is primed to of finance is less expensive. The process to access the fund The grant system must link our government”. create employment, especially “We will introduce a blended will be announced soon, and people to economic activity,” for well over two million financing model suitable for there is a threshold of potential she said. “We say that social grants unemployed youth,” according SMMEs and cooperatives. job creation for each entity, she must be doubled with the the Minister Ntshavheni. This model will be introduced said. “These entities must have She also said the department understanding that this is not a over the next three years, a potential to create at least should put mechanisms in long-term solution to poverty. However, Ms Ntshavheni, commencing in the current 10 jobs. This will translate into place to monitor the funds This can only be addressed in warned that to achieve this the financial year.” at least one million jobs when allocated to provinces, non- the long-term through land sector needs to be resourced the programme is successful.” governmental and non-profit and wealth redistribution, sufficiently. “We are fully aware The model will initially fund organisation. The minister economic development and that to achieve these, SMMEs 1 000 young entrepreneurs She admitted, though, that must provide oversight to the industrialisation. But in the and cooperatives must have countrywide. “They will be finance would not be a monies transferred to province. meantime our social grants access to resources such as funded through the Small panacea to all the challenges cannot be so little that people skills, knowledge networks and Business and Innovation Fund. facing the SMMEs. According NCOP delegate for the barely survive off them. finance that will enable them Qualifying start-ups, innovators to her, “strategic public sector Democratic Alliance Ms Where is the dignity in feeding to nurture their innovative and SMMEs will be able to decision-making can redirect Delmaine Christians argued yourself and your child on ideas and businesses.” access matched grant funding up market failure and actively that the country is facing a R430 a month?” she asked. A departmental priority is to R2.5 million per enterprise,” shape new markets while crisis of epic proportions in to make sure that the cost Ms Ntshavheni explained. regulating existing ones.” To 10 INSESSION NEWS

Municipalities must regain the trust of the people

The Chairperson of the Select Committee on Cooperative Governance and Traditional Affairs, Water and Sanitation and Human address this shortcoming, the race, gender and class barriers, and the best example of Settlements, Mr China Dodovu, told the Small Enterprise Development and are the foundation for this failure is your National Deputy Ministers of the Department of Agency (Seda) will increase future growth of this country. Development Plan (NDP). The Cooperative Governance and Traditional its network in primarily rural How can we simply sit by and NDP projections have up to areas and townships. “For this watch them go?” now remained a pipe dream. Affairs (Cogta) and the North West purpose, Seda will establish The whole NDP idea was based government’s MEC for Local Government eight incubation centres in She also believes that statistics on an annual gross domestic and Human Settlements, that cooperation the under-serviced provinces show that the economy product of 5.4% and during across all levels of government is the first of Free State, Mpumalanga, does not work for the youth, your decade of doing nothing, Limpopo. Northern Cape, North which is an indictment on the we barely grew the economy fundamental strategic tool to ensure they West, Gauteng and Western government. “Insanity is doing past the 1.5 % mark. And meet their constitutionally required mandates, Cape townships.” the same thing repeatedly and despite all the promises made writes Zizipho Klaas. expecting different results,” by capitalists to our President These new facilities and she said. Furthermore, she last year at the job summit, we strategic interventions will claimed that the budget policy are seeing a blood bath of job not overshadow the existing debate and formulation is losses across all sectors of the ones, she said. “We are also dominated by government, economy,” she said. The Deputy Ministers of the Department of Cooperative committed to optimise the big business, and unions, a Governance and Traditional Affairs, Mr and Obed utilisation of our already situation that supports the The ’s Mr Bapela and the MEC for Local Government and Human existing facilities, not only status quo. Ezra Mfayela of the KwaZulu- Settlements, Mr Gordon Kegakilwe, appeared before the to expand our research, but Natal delegation pointed out Select Committee on Cooperative Governance and Traditional to increase the return on She is also of the view that that the department is still Affairs, Water and Sanitation and Human Settlements at government’s investment.” The small businesses should be preoccupied with making plans Parliament recently to brief the committee on the status of the after six years of existence. interventions in the provinces and in the North West province “The President himself said in particular. the rhetoric is over. It can only be an embarrassment that “The support of the committee to Cogta and the municipalities the organisational structure of is non-negotiable,” said Mr Dodovu in welcoming the Deputy this department remains to be Ministers, the MEC and the officials of the national and the approved.” provincial departments of Cooperative Governance and Traditional Affairs. Our thinking should be youth- centred, he said. “They are the Briefing the committee, Mr Tau stressed the importance of ones who are encouraged to support for struggling local municipalities through section strive at school and university, 154 of the Constitution, before the invocation of section 139. only to find out that when they According to him, the invocation of section 139 should be the are finished with their studies, last resort. “Before any step can be taken, the magnitude of no jobs are to be found for the problems faced by a municipality must be established department also plans to adopt exempt from certain black them.” by both the national and the provincial structures of the an SMMEs business index to economic empowerment and government,” he said. track the economic health of labour regulations. Despite his criticism, he SMMEs as an aid to measuring stressed the significance of He attributed the resistance to the intervention by some of the impact of SMME support The Economic Freedom small businesses in eliminating the municipalities to the hasty invocation of section 139. programmes. Fighters’ Ms Poppy Koni poverty, unemployment and He said some of the North West municipalities which resist (Northern Cape delegation), inequality. “SMMEs are critical the interventions have taken the provincial government to Participating in the debate for said the government’s failure and may even go so far as to court, and won. “If necessary steps can be taken before the the Democratic Alliance as a to industrialise has led to play a definitive role in this intervention, there can be no unnecessary tension between delegate for Mpumulanga, poor economic growth. She respect, but there remain these structures of government,” said Mr Tau. Ms Sonja Boshoff claimed blamed neo-liberal economic certain barriers for them to that many highly skilled policies for the current state access finance. The government Making the presentation on interventions, the head of small business owners are of the South African economy. must address such challenges the department, Mr Dan Mashitisho, highlighted political considering leaving South “The neo-liberal order this and look for innovative ways infighting, conflict between top management and councilors, Africa. “They are aged between government has based its to assist small business in fraud and misuse of municipal funds, lack of financial systems 25 and 45 years across the economic policy on is failing overcoming them.” BUDGET VOTE DEBATES 11

SERVICE DELIVERY PROTEST: Refuse strewn in protest. and lack of political leadership usually deploy one person as effect to sections 100 and 139 have contributed in the section 139 of the Constitution. in the municipalities. an administrator instead of as contributing to a legislative same way, but unfortunately sending a resourceful team, vacuum. most provincial departments Most of the interventions are Mr Mashitisho told the resistance from municipal responsible for local characterised by a complete committee that some of councilors and staff and Mr Mashitisho commended government are ill-equipped breakdown in communication the failures of intervention the destruction of pertinent the NCOP for its key role in and allocated far less budget between the local citizens and include weak monitoring information needed by providing objectivity, mediation to fulfil their mandate. As a the municipality. “An incoming systems, no resource allocation the administrator. He also and on-site investigations in result, they are unable to fully administrator needs to regain for the implementation of mentioned the lack of a the fifth parliamentary term. implement the provisions and the trust of the community,” the intervention, provinces regulatory framework to give He said provinces should implications of invocation of said Mr Mashitisho.

At the conclusion of the meeting, Mr Dodovu emphasised that section 154 of the Constitution and section 105-108 of the Municipal Systems Act are preliminary tools for assisting municipalities. He assured the department of the committee’s support and told the Deputy Ministers that the committee will continue visiting struggling municipalities. “We are going to continue engaging with you and continue carrying out our oversight in a manner that improves the delivery of services to the people.” 12 INSESSION NEWS

Committees in brief

The Portfolio Committee on Home Affairs urged the Department of Home Affairs, and the Electoral Commission of South Africa (IEC) to find innovative ways to mitigate against funding pressures that the department and its entities are currently facing. The committee highlighted that funding challenges are a reality for all departments, but also present an opportunity to innovate and find workable solutions to ensure effective service delivery.

The committee welcomed the African Express and Alexkor. announcement by the IEC that it will conduct public hearings “Yes, there are challenges in from August 2019 to conclude state-owned enterprises (SOEs) the regulations necessary to – the balance sheet, debt – but implement the Political Party we have strategies in place. Funding Act as signed into law The South African Airways by President Cyril Ramaphosa. (SAA) has a long-term strategy The committee emphasised the and turnaround plan. The need to conclude the regulation implementation of the plans and process to ensure that the Act is strategies will get SOEs back on implemented. their feet,” he added.

The joint meeting of The Select Committee on the Standing and Select Public Enterprises and Committees on Appropriations Communications heard was briefed by the Deputy from the Minister of Public Minister of the department, Mr Enterprises, Mr , process, as law-enforcement Appropriation Bill. Contained Dr , assured the , on progress that the department is closely agencies are pursuing cases in this report, is the proposed committee that the National amendments tabled by the Health Insurance (NHI) Bill Minister of Finance, Mr Tito is on its way to becoming a Mboweni, on 25 June 2019. reality. The committee asked The amendments include Mr about departmental monitoring Mboweni’s authorisation of the mechanisms over the R17.652 billion to Eskom on 2 money that is allocated and April 2019. This authorisation transferred by the department was done through section to the provinces as conditional 16 (1) of the Public Finance grants, so that such funds are Management Act (PFMA) as a used effectively to improve result of a delay in accessing patients’ lives. In addition, the planned cash injection the committee questioned from the China Development the monitoring of NGOs that Bank, which resulted in Eskom receive funding from the not being able to meet its department. Some committee financial obligations. members suggested that these organisations should be In processing the Bill, the invited to appear before the committee acknowledged the committee. challenges facing Eskom and OVERSIGHT: Committee meeting. the importance of not allowing In an another development, with stabilising governance at monitoring SOEs’ financial against those implicated. Eskom to fail, but registered its the Chairperson of the various entities. Mr Masualle told and operational performance displeasure over the Minister’s committee, Dr Sibongiseni the committee that new boards through weekly and monthly The Standing Committee authorisation. Dhlomo, has welcomed the have been established at Eskom, monitoring. He said the on Appropriations has The Portfolio Committee on signing of the Presidential Safcol, Denel, Transnet, South recovery of stolen money is in adopted its report on the 2019 Health. The Minister of Health, Health Compact. “The Health OVERSIGHT 13

action, especially considering that the lives of our people are at stake and that these actions can result in diseases. Punitive action should be taken against anybody who intentionally pollutes our water resources,” said Mr Dodovu.

“The pollution of rivers and dams also presents a fiscal threat,” Mr Dodovu continued, “as municipalities are forced to redirect scarce financial resources towards purification of the water to ensure that it is of acceptable drinking quality. This in turn robs municipalities of the ability to meet other service delivery requirements, which is unfair to residents.”

The Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour has revived the process of processing the National Gambling Amendment Bill.

The Chairperson of the Committee, Mr Mandla Rayi, said ACCOUNTABILITY: Committee meeting. various challenges resulted in the Bill not being

Compact is a commitment by workers and better resources,” legal services, where the Provinces (NCOP). The two finalised in the government to deliver better said Dr Dhlomo. committees were advised committees agreed that the fifth Parliament. healthcare services to all South that it is not for Parliament advocates will be given 10 “Three provinces, Africans,” said Dr Dhlomo. A joint meeting of the to reopen the inquiry into working days to make written Portfolio Committee on the fitness of Adv Jiba and representations to the NA all of which have The Health Compact was Justice and Correctional Adv Mrwebi to hold office. An and NCOP. Furthermore, the metros, objected signed by the President at Services and of the Select inquiry into the matter has committees will deliberate to the Bill. One George Mukhari Academic Committee on Security and already been concluded by the separately on the matter. Hospital’s Nursing College in Justice met to consider the Mokgoro Commission. province abstained Ga-Rankuwa. “The healthcare removal of Adv Nomgcobo The Chairperson of the Select and two supported sector needs a lot of support Jiba and Adv Lawrence Mrwebi Parliament’s legal services Committee on Cooperative it. Mandates were to build capacity so as to from the National Prosecuting briefed the committees on Governance, Traditional provide efficient healthcare Authority (NPA). procedural issues governing Affairs, Human Settlements, not received from services, and this can be done The committees received legal the National Assembly (NA) Water and Sanitation, Mr the rest of the by ensuring more healthcare advice from the parliamentary and the National Council of China Dodovu, has welcomed provinces. That has the announcement of an investigation into a private never occurred in company that has been the history of the dumping raw sewage into National Council of the Dam. Pollution of dams and other sources Provinces,” he said. of clean drinking water is a concern that must be On reflection, it was agreed addressed with urgency. to begin the process afresh. The Department of Trade and “It is extremely concerning Industry re-tabled the Bill and when a private business is said it supported the decision REPORT UNDER SCRUTINY: Committee meeting. caught doing such a despicable to begin again. 14 INSESSION NEWS

YOU STRIKE A WOMAN, YOU STRIKE A ROCK: Protest action. Gender-based violence undermines the gains of our hard-earned Democracy: Parliament’s Presiding Officers

Parliament’s Presiding Officers, National Assembly Speaker Ms and National equal pay for equal work; Council of Provinces Chairperson Mr , joined the nation in saluting the women equal rights in relation to property, marriage and and girl children of South Africa for their resilience, courage and tenacity as the nation marked children; and the removal of all Women’s Day. laws and customs that denied women such equality.

Last year, Parliament hosted “We continue to be inspired non-racial, prosperous and free pass laws, as well as 25 years Charter. the Women’s Charter Review by the unwavering and bold South Africa,” the Presiding of freedom and democracy in Conference as part of a resolve by this country’s Officers noted. South Africa. 2019 also marks The Charter, amongst national conversation to review women and girl children 65 years since the founding other things, called for the the Women’s Charter through towards the elimination of This year marks the 63th conference of the Federation of enfranchisement of men and sustained dialogue and any form of injustice, to bring anniversary of the 1956 South African Women, which women of all races; for equal interactive discussions with about a non-sexist, united, Women’s March against the adopted the 1954 Women’s opportunities in employment; women across the country. WOMEN’S DAY 15

our democracy and freedom Some of the key legislation enables greater sensitivity and against gender-based violence promoting the interests of vigour in the advancement and discrimination. We owe women passed by Parliament of women’s issues through it to a better tomorrow since 1994 include laws oversight, law-making and and future generations to against discrimination and public engagement. inculcate values of responsible inequality (the Promotion of citizenship and Ubuntu Equality and Prevention of From 124 women Members amongst boy children, in Unfair Discrimination Act), of Parliament in the first particular. and against violence and democratic Parliament of harassment (the Domestic 1994 to 1999, the number of As the highest oversight Violence Act and the Criminal women MPs now significantly and law-making body in Law Amendment Act). increased to 201 in the current the country, Parliament will Parliament has also passed parliamentary term. Out of continue to use its powers laws protecting the rights of the 54 countries in Africa, enshrined in the Constitution to women, such as reproductive the South African Parliament abolish practices and acts that health (the Choice on is ranked third in women’s discriminate against women, Termination of Pregnancy representation after Rwanda devalue their humanity and Act) and customary law (the and Namibia, while globally harm them. Recognition of Customary the Inter-Parliamentary Union Marriages Act). places South Africa in 10th Through legislative place out of 193 countries. interventions, Parliament will It goes without saying that the continue to protect women and battle against discrimination Although there is still so much girl children while holding the and harmful practices against to be achieved, the gains in executive to account regarding women also requires women women’s representation in the implementation of laws to fill key positions of power the national legislature over and policies promoting their in all spheres of society. The the years is a clear indication interests. continuing increase in women’s that Parliament takes women’s representation in Parliament issues seriously.

On Women’s Day, gender-based violence. South Africa can never claim to be the nation must free if children and women reflect deeply continue to die at the hands of on progress men and boys, most of whom share close relationships with achieved in 25 them,” the presiding officers years of democracy, said. particularly in the Gender-based violence areas of women’s undermines the gains of our empowerment, hard-earned democracy and gender the sacrifices of gallant women activists, such as those who mainstreaming, confronted the nerve centre of equality and the apartheid evil and brutality in abolition of any 1956. All of us must serve as active citizens who, within our discriminatory homes and communities, work practices and abuse daily to squeeze out of our society all the perpetrators of against women. violence and discrimination.

“As we mark this historically Men, boys, husbands and significant day, our country brothers have a significant unfortunately continues to role to play in safeguarding be plagued by the scourge of 16 MANDELA DAY Members of Parliament reach out to four schools on the Cape Flats in honour of Madiba

through acts of kindness in our way of emulating Mandela’s neighborhoods, to take our values that he held dear in country forward,” they said. his heart than to alleviate the plight of young children. That, Members of Parliament and he would have loved and parliamentary staff spent appreciated.” their 67 minutes in honour of Madiba this year at four Handing over 200 pairs of schools around Cape Town, shoes, a computer combo namely Mseki Primary School projector and sanitary towels, in Gugulethu, Montague’s at Enkanini Primary School in Gift Primary School in Grassy Khayelitsha, the Chief Whip of Park, Enkanini Primary School the African National Congress in Khayelitsha and Cavalliera in the National Assembly, Ms Primary School in Kraaifontein. Pammy Majodina, said they were at the school in response The programme entailed to the spirit of love for children engagement with educators of former President Nelson and learners, a handover of Mandela. gifts that included projectors, shoes and sanitary towels, Ms Majodina encouraged the among other things. Members learners to commit themselves of Parliament (MPs) also to their education and to do so distributed educational in the name of Tata Mandela. 67 MINUTES OF SERVICE: Mandela Day service. material on the work of “You are the future of this Parliament to learners to country. You are the future relations; the promotion and Parliament to pursue the ethos Parliament joined increase public awareness of representatives of the future protection of human rights; and the ideals of a caring, Parliament. citizens and future presidents,” South Africa and the reconciliation; gender equality responsive and activist society said Ms Majodina. world in observing and the rights of children and that spares neither strength The Deputy Chairperson of the other vulnerable groups; the nor effort to build a socially the Nelson Mandela National Council of Provinces Ms Zukiswa Ncitha, who is the fight against poverty; and the just world order. International Day on (NCOP), Ms Silvia Lucas, led permanent delegate to the promotion of social justice. the delegation to Cavalleria National Council of Provinces 18 July 2019, the day It also acknowledges his “As South Africa marks 25 Primary School in Kraaifontein, and who was among the the founding President contribution to the struggle for years since the democratic where MPs donated school parliamentary delegation, democracy internationally, and breakthrough of 1994, with would have turned shoes, a compujector from the said Mandela Day is crucial the promotion of a culture of President Mandela as the 101. MTN Foundation and sanitary and promotes the spirit of peace throughout the world. founding President of a towels. She said the choice commitment to serve. “We free and democratic nation, of schools was based on the are inculcating the culture Parliament urged all South we must unite behind a fact that Tata Mandela loved of care as envisaged in the Tata Madiba’s birthday was Africans to undertake positive, common goal of intensifying children. “There is no better principles of ubuntu. This is unanimously declared the selfless, individual or team fundamental change, including what President Mandela would Nelson Mandela International actions to donate at least 67 have left as his legacy,” Ms Day, commonly known as minutes of their time in service Ncitha said. Mandela Day, by the United to their communities to change Nations (UN) General Assembly the world around them. Mr , who is in 2009. the Chairperson of the Standing The Presiding Officers of Committee on Public Accounts, This year’s celebration marked Parliament, led by the National told the learners about the a decade since the UN Assembly Speaker, Ms Thandi importance of the values of declaration. The UN resolution Modise, and National Council freedom, unity and patriotism recognises Tata Mandela’s of Provinces Chairperson, Mr for which Tata Mandela stood. values and his dedication Amos Masondo, stressed that “We are proud of the life of to the service of humanity Mandela Day provides an Tata Madiba and his sacrifice,” in conflict resolution; race opportunity for recommitting said Mr Hlengwa.