Statement on the Cabinet Meeting of 8 August 2012

Cabinet held its ordinary meeting in Cape Town on the 8th of August 2012

1. CURRENT AFFAIRS

1.1 Executive Outreach

Cabinet noted that President Jacob Zuma will on 10 August visit Sweetwaters informal settlement as part of the Presidential Monitoring Programme.

Cabinet also noted that Deputy President Kgalema Motlanthe will on 11 August visit the town of Douglas (Siyancuma Municipality) as part of the War on Poverty campaign. The focus of the visit will be on youth unemployment and related challenges.

1.2 International relations

Cabinet noted that President Jacob Zuma will lead a South African delegation to the 32nd Ordinary Summit of Southern African Development Community (SADC) Heads of State and Government in Maputo, Mozambique from 17 to 18 August 2012.

This year’s Summit marks the 20th year anniversary of the historic signing of the SADC Treaty and Declaration which led to the creation of this regional bloc. This will also be the first Summit after the successful election of the SADC candidate, Minister Nkosazana Dlamini Zuma, as Chair of the African Union Commission.

Cabinet welcomed the recent visit to South Africa by the United States Secretary of State, Ms Hillary Clinton, for the annual South Africa-United States Strategic Dialogue. The Strategic Dialogue reaffirmed that bilateral trade and investment as well as economic diplomacy remains the cornerstone of the relationship between the two countries.

1.3 Text books

The late delivery of text books in Limpopo continues to be of concern to the Cabinet. Cabinet has again reassured the South African public that this matter is receiving its full attention and through the implementation of section 100 1(b) in the province all the required interventions will be made to bring a lasting solution to this matter.

1.4 Women’s Day (9 August)

Cabinet calls on all sectors of society and all South Africans to continue their tributes and programmes in support of women as part of the celebration that this year marks 56 years since the historic women’s march of 1956. The main event was celebrated yesterday at the Union Buildings in Pretoria where the President of the Republic, Mr Jacob Zuma gave the main address .

1.5 Condolence

Cabinet expresses its condolences to the family of the former deputy Minister of Provincial and Local Government, Nomatyala Hangana, who passed away on Friday, 3 August.

Further to the pronouncement by President Jacob Zuma, the former Deputy Minister Hangana was a dedicated and committed campaigner for women's rights and as National Convener, she effectively and visibly led the campaign of 16 Days of Activism Against Violence directed at Women and Children during her tenure in Government.

1.6 Parliamentary matters

On 15 August, a joint sitting of Parliament will convene for the handing over to President Jacob Zuma the National Development Plan and on 16 August the National Assembly will debate the youth wage subsidy.

1.7 Sport and Recreation

Cabinet commends the efforts by Team SA and congratulates the rowing team (Sizwe Ndlovu, Matthew Brittain, John Smith and James Thompson) on winning South Africa’s third gold medal, and once again congratulates Chad le Clos (100m butterfly) on winning silver in his event. Cabinet also commends Oscar Pistorius as the first double amputee to compete in an athletic event at the Olympics.

Cabinet calls on South Africans to continue supporting the Magnificent Friday campaign and all our national teams: Team SA at the Olympics, the Proteas who are touring England as well as the Bokke who will be on a rugby Championship with Australia, New Zealand and Argentina from 18 August to 6 October.

1.8 Square Kilometre Array (SKA) Developments

Cabinet took note of Developments on the SKA project. South Africa and the eight African partner countries have received R120 million from the African Renaissance Fund to construct a network of single dish antennae called the African Very Long Baseline Interferometer (VLBI) Network.

The funding will be utilised to leverage additional funding from global partnerships. The African VLBI Network funding will provide the SKA African partner countries with seed funding to build one radio telescope in each country and grow an expertise base that will participate in the SKA construction, operations and astronomy research.

The SKA African partner countries will meet during September 2012, for the first time since the bid announcement, to develop a joint strategic direction in light of winning the right to host two-thirds of the SKA. In addition the partner countries will craft mechanisms to develop a research programme for the African-European Radio Astronomy Platform. The platform has received support from members of the European Parliament.

1.9 Food prices

Cabinet expressed concern on the escalation of food prices and the impact to the poor. The Minister of Agriculture, Forestry and Fisheries, Ms Tina Joemat-Pettersson will brief the Cabinet in the next meeting.

2 DECISIONS EMANATING FROM THE WORK OF CLUSTERS     

2.1 Copyright Review Commission (CRC) Report

Cabinet noted the Copyright Review Commission Report that will now be released. Cabinet approved the establishment of the Inter-Ministerial Committee (IMC) on Intellectual property (IP) led by the Minister of Trade and Industry.

The IMC will oversee issues related to intellectual property, particularly the implementation of the CRC recommendations to assess the effectiveness of the structure of collecting societies in South Africa, including those that belong to authors, composers, recording companies, musicians/artists and others.

Cabinet also approved an Inter-Departmental Committee to oversee the implementation of the CRC recommendations at the level of Directors-General and Deputy Directors-General.

It was noted that the amendments to the Copyright Act will take place in the next financial year.

2.2 Proposed National Water Resource Strategy 2

Cabinet approved the gazetting of the draft National Water Resource Strategy 2 (NWRS-2) for input and comments.

South Africa potentially has sufficient water resources, but this can only be secured through the effective and timeous implementation of extended and smart water management options which are subject to spatial, economic and physical constraints.

The NWRS-2 sets out the strategic direction for water resources management in the country, with a particular focus on priorities and objectives for the period 2013-2017. It provides the framework for the protection, use, development, conservation, management and control of water resources for South Africa, as well as the framework within which water must be managed at catchment level, in defined water management areas.

3 KEY ISSUES FOR NOTING

3.1 Report on the National Water Sector Infrastructure and Investment Framework

Cabinet noted the report on the National Water Sector Infrastructure Investment Framework.

This framework is based on the results of analysis undertaken by the Department of Water Affairs in partnership with the Development Bank of Southern Africa (DBSA). The analysis outlines the capital requirements needed to address gaps within the entire water sector value chain as well as the required funding. Projections for water use and abstractions are based on economic growth and population growth trends to 2031. The framework considers requirements for refurbishment, operations and maintenance of water infrastructure, as well as the construction of new infrastructure. More importantly, the framework addresses not only the infrastructure requirements but also the complete full cycle required for water provision.

3.2 Report on the resolutions of the Presidential B-BBEE Advisory Council Meeting

Cabinet noted the resolutions taken at the Presidential B-BBEE Advisory Council meeting on 3 April 2012.

The Council is an advisory body whose resolutions are tabled in Cabinet for noting or for decision where resolutions taken materially affect policy, the budget, or address the implementation of existing policy.

Highlights of the Council Meeting included:

• The B-BBEE Amendment Bill and Codes of Good Practice: The department of Trade and Industry was applauded for the developments around the Bill as it covered all strategic areas necessary for the promotion of economic transformation. The Council further noted that the Codes will be tabled at Cabinet.
• Preparations for a B-BBEE Summit are underway.
• Update on the Infrastructure Roll-out Plan: presentations were made on the 12 outcomes set by Government and how it can be achieved through infrastructure development. This gave the Council an opportunity to outline how B-BBEE can be enshrined in the infrastructure roll-out plan.

3.3 The South African Law Reform Commission’s (SALRC’s) investigation into statutory law revision (Project 25)

Cabinet noted the progress made in respect of the South African Law Reform Commission’s (SALRC) Project on Statutory Law Revision (Project 25) up to 30 April 2012.

The Minister of Justice and Constitutional Development coordinates and mandates the SALRC to review provisions in the legislative framework that may result in discrimination as defined by section 9 of the Constitution which prohibits any form of unfair discrimination.

The progress report presents the review of the national legislations administered by the various departments for Constitutionality and redundancy and sets out preliminary findings and proposals in a consultation paper. The SALRC develops a report in respect of each department and reflects the comments on the discussion paper.

4 TWO BILLS APPROVED

4.1 Broad-Based Black Economic Empowerment Amendment Bill, 2012

Cabinet approved the introduction of the Broad-Based Black Economic Empowerment (B-BBEE) Amendment Bill, 2012 to Parliament.

The amendments seek to amongst other things:

• Establish the B-BBEE Commission to deal with compliance inbroad-based black economic empowerment;
• Provide for the regulation of verification agencies by the Independent Regulatory Board of Auditors;
• Include the creation of incentive schemes to support black owned and managed enterprises in the strategy for broad-based black economic empowerment;
• Promote compliance by organs of state and public entities and to strengthen the evaluation and monitoring of compliance; and
• Provide for offences and penalties

4.2 Special Economic Zones Bill, 2012

Cabinet approved Special Economic Zones (SEZ) Bill, 2012 for submission to Parliament. Special Economic Zones are designated geographic areas aimed at attracting focussed domestic and foreign investments.

The Bill provides for:

• The designation, development, promotion, operation and management of SEZs;
• The establishment of a SEZ Board;
• The establishment a dedicated SEZ Fund;
• Determination and implementation of incentives for SEZ operators and businesses operating within SEZs
• Regulating the application and issuing of SEZ operator permits to persons wishing to develop and operate a SEZ.
• The suspension or withdrawal of a SEZ operator permits in certain circumstances.

5. CABINET APPOINTMENTS

Cabinet approved the following appointments:

5.1 National Empowerment Fund Board (NEF): Mr Rakesh Garach, Mr Allon Raiz, Ms Zukiswa Ntlangula, Ms Nomalanga Mosala and Ms Angelina Makwetla were appointed Trustees of the NEF Board for a period of three (3) years.

5.2 Ms Gugu Mazibuko as Chief Executive Officer (CEO) of the Council for the Built Environment (CBE).

5.3 Ms Ursula Ntsubane as Chief Executive Officer (CEO) of the Construction Industry Development Board (CIDB).

5.4 Mr Cyril Gamede as Chief Executive Officer of Umgeni Water for a period of five years.

5.5 Cabinet approved the appointment of the following members to the Board of Trustees of the Independent Development Trust (IDT) for a period of four years: Professor Somadoda Fikeni, Mr Moroka Matutle, Mr Zandile Mdhladhla, Mr Mzamo Michael Mlengana, Ms Matshipsana Meriam Molala, Mr Tlhotse Enoch Motswaledi, Ms Nandisile Flavour Thoko Mpumlwana, Dr Thandi Cynthia Ndlovu, Ms Phelisa Nkomo, Mr Rashid Amod Sadeck Patel, Mr Zakhele Alex Tummy Zitha and Dr Kabanyane Gcwalisile Cynthia Zulu.

Enquiries:

Jimmy Manyi (Cabinet Spokesperson)
Tel: 082 379 3454

Issued by: Government Communication and Information System (GCIS)
10 August 2012