Weekly Political and Economic Review 23 April 2021 1. Policy
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Weekly Political and Economic Review 23 April 2021 1. Policy/Legislative Updates 1.1. Compensation for Occupational Injuries and Diseases Amendment Bill (COIDA) − On 20 April, the Portfolio Committee on Employment and Labour started its 3-day public hearings on the Compensation for Occupational Injuries and Diseases Amendment Bill (COIDA), first introduced to Parliament in September 2020; − The amendment Bill seeks to: o Extend the coverage for occupational injuries and diseases to previously excluded vulnerable workers, as well as improvement of compensation benefits to employees; o Align the Compensation for Occupational Injuries and Diseases Act with the requirements of other legislation and to remove ambiguities on some of the act’s provisions; o Empower the National Economic Development and Labour Council to nominate members of the Board, who may then be appointed by the Minister of Employment and Labour to represent the interests of organised businesses, organised labour and the state; o Provide for the term of office of a board member to be limited to two terms as well as providing for the disqualification from membership of the board members, resignations and removal from office; o Introduce rehabilitation, reintegration and return to work in order to address the tendency of some employers to dismiss employees on the basis of occupational injuries or diseases; − The Bill has come under criticism from numerous organisations, particularly Section 43 of the Bill, which deals with the reopening of claims after the expiry of two years from the date of accident; − The South African Medical Association (SAMA) said the clause would have a catastrophic impact on injured workers, doctors and other healthcare professionals if left unchanged; − SAMA’s Dr Angelique Coetzee said the clause meant medical practitioners could no longer use their medical claims as surety for payment in any manner, placing immense administrative, financial and legal pressure on the medical sector, and placing injured workers at a disadvantage; − The National Employers Association of South Africa (NEASA), stated that Section 43 would disadvantage employees the most and would lead to new beneficiaries being excluded from quality healthcare since the current system cannot cope as it is; − NEASA also expressed concern over the possible removal of third party administrators from the system, the quality of healthcare for employees, the death of businesses associated with third parties and the delay in payments to medical practitioners. 1.2. Local Government: Municipal Systems Amendment Bill − On 22 April, the Gauteng Legislature’s Portfolio Committee on Cooperative Governance and Traditional Affairs (CoGTA) and Human Settlements began public hearings on the Local Government: Municipal Systems Amendment Bill; − The Bill concerns the hiring of municipal managers and managers directly accountable to the municipal managers; − The Bill seeks to: o Make further provision for the appointment of municipal managers and managers directly accountable to municipal managers, as well as providing for procedures and competency criteria for these appointments; o Determine timeframes within which performance agreements of municipal managers and managers accountable to them must be concluded; o Require employment contracts and performance agreements of municipal managers and other managers to be consistent with the Local Government: Municipality Systems Act and regulations made by the Minister; − The Corruption Watch’s Kavisha Pillay has criticised the bill for not including the principles of public participation and transparency since local government should encourage community involvement in matters of local government; − The Pan Africanist Congress of Azania (PAC) expressed support for the Bill, saying it will assist in professionalising the sector. 1.3. Annual Policy Benefit Escalations Regarding the Demarcation Regulations − On 21 April, Finance Minister Tito Mboweni published the Annual Policy Benefit Escalations regarding the Demarcation Regulations; − These are regulated under Section 72 of the Long-term insurance Act (LTIA) and Section 70 of the Short-term Insurance Act (STIA); − National Treasury stated that the regulations specify which types of contracts are regulated under the LTIA and STIA, due to accident and health policies respectively being excluded from the Medical Schemes Act; − According to Treasury, escalation of the policy benefits will take place each year for as long as regulation 7.2(2), with the dates and rate of escalation, provides for automatic escalation; − Following queries from providers regarding the current escalated policy benefits, Treasury decided to publish the amounts annually to maintain clarity on escalated policy benefits. 2. COVID-19 Updates 2.1. Online Registration Open to the Public − On 16 April, the government officially launched the COVID-19 vaccine online registration for the public as part of the Department of Health’s preparation for phase 2 of the vaccine rollout; − Health Minister Zweli Mkhize announced that the Electronic Vaccination Data System (EVDS) would be available to the general public and that all citizens aged 60 years and above were invited to register for vaccination; − Mkhize commented that this would be the first time in the country’s democratic history that a major public health campaign would be supported by one digital system for all citizens; − There will be no distinction between private and state healthcare users, except that private healthcare users will need to share their medical aid details; − The system will assign a vaccination site closest to citizens’ homes or workplaces and not on whether a particular site is a public or private facility; − Mkhize added that the department would use smartphones and petrol donated by various organisations and companies to send teams out to help vulnerable citizens without access to digital technology, including the elderly, the homeless and those living in deep rural areas difficult to reach; − Government will soon announce a WhatsApp service to assist the process. 2.2. J&J Sisonke vaccination programme to be lifted − On 22 April, President Cyril Ramaphosa’s cabinet welcomed the South African Health Products Regulatory Authority’s (SAHPRA) recommendation to lift the suspension of the Johnson & Johnson (J&J) vaccination programme as long as certain conditions are met; − The conditions include, but are not limited to, strengthened screening and monitoring of participants who are at high risk of a blood clotting disorder; − This follows the precautionary suspension of the rollout two weeks ago due to concerns over a very small number of patients in the US reporting adverse side effects leading to extremely rare blood clots after receiving the jab; − Khumbudzo Ntshavheni, Acting Minister in the Presidency, announced that viewed data confirmed that South Africa had not experienced any blood clots with the already vaccinated healthcare workers; − Ntshavheni added that scientists would continue to monitor all South Africans as and when they were vaccinated. 3. Local Government Elections Date Announced − On 21 April, President Cyril Ramaphosa announced that the 2021 local government elections will take place on 21 October; − The Minister of Cooperative Governance and Traditional Affairs is set to follow necessary legal processes to proclaim the date and undertake other requirements; − The Independent Electoral Commission (IEC) announced that it would be introducing new management voting devices to be used in elections; − The devices will prevent voters from casting more than one vote, capturing voters’ address and verifying them against their respective wards, serving as an online real-time voter’s roll; − The IEC saw its budget cut by R35 million due COVID-19, but IEC Chief Executive Officer (CEO) Sy Mamabolo stated he believes the cut will not affect the commission’s work; − Mamabolo added that, due to the budget cut, the IEC would hold only one voter registration weekend as opposed to the usual two; − The Democratic Alliance (DA) has embraced development, stating they were ready to bring about real change to all South Africans and deliver governments that the country deserves; − The Economic Freedom Fighters (EFF) on the other hand had previously called for the elections to be postponed until 2024, as 2021 elections would deprive opposition parties of an opportunity to freely and fairly campaign due to COVID-19 restrictions. 4. Zondo Commission 4.1. Minister of Mineral Resources and Energy Gwede Mantashe − On 14 and 19 April, Minister of Mineral Resources and Energy and African National Congress (ANC) Chairperson Gwede Mantashe testified at the Zondo Commission; − Manatashe testified about cadre deployment, parliamentary oversight and the ANC’s role in portfolio committees, telling the Commission it was the Secretary-General’s role to ensure that members of parliament voted for positions supported by the party; − In 2018, former Minister of Public Enterprises, Barbara Hogan testified at the Commission, alleging that the ANC’s deployment committee staffed the public service and state-owned entities (SOEs) with ANC cadres; − The ANC has further faced accusations of forcing members to toe the party line, even when it meant making decisions against their conscience; − Mantashe maintained that the ANC had a deployment policy and not cadre deployment, explaining that the ANC’s deployment committee only recommended cadres but that it did not guarantee the placement