The second parliamentary term spanned for a duration of ten weeks, ending on June 23rd. NCOP representatives are scheduled to have resumed their duties in Parliament on August 1st, while NA MPs will have returned on August 28th. We summarize the key points from this term.
VIEW FROM HOUSE IN MAY 2023
The South African Parliament is focusing on governance and legal frameworks for a free society. Load-shedding has impacted GDP which is hindering the NDP’s vision.
• Urgent rules are needed within the government for the overseeing of any and all future
financial distributions.
• The Department of Health reportedly lacks funding and skilled professionals.
• The Department of Trade announced new investment projects for job creation and increased
output.
• New regulations target corruption within the system by identifying shareholders with more
than 5% of shares.
CABINET AND DEPARTMENT OF MINERAL RESOURCES AND ENERGY (DPMRE)
The DPMRE is progressing towards beneficiating raw materials, including opening a new steel mill in Germiston.
• Public-private partnerships are crucial for achieving local output and commitments of R40 billion by 2024 are projected.
• South Africa aims for R800 billion in global exports and R35 billion in incentives to support business growth.
Government is working towards universal electricity access for poor households through programs like the Transmission Systems Operator – Electricity Regulation Act, RMIPPPP, and REIPPPP.
• The IRP 2019 is being reviewed, with Bid Windows 7 and 8 for renewable energy meanwhile DPMRE seeks licensing system with integrity.
• Mining contributed to GDP and created jobs, while also generating R89 billion in corporate tax.
The DPMRE invested R397 billion in mining and energy sectors, including renewable energy and exploration strategies.
• DPMRE made progress in occupational health and safety, but still needs to achieve ZeroHarm goal. LPG demand doubled, attracting investments in oil and gas.
• Consultations were held with communities to gauge sentiments on oil and gas developments.
The Cabinet approved the merger of IGas, PetroSA, and the Strategic Fuel Fund to form the South African National Petroleum Company (SANPC), which will participate in oil and gas developments.
• Challenges are now being faced from the closure of crude oil refineries, but with careful management instability can be prevented.
The DPMRE’s budget for 2023/24 is R10.7 billion, with a significant portion allocated to implementing the Integrated National Electrification Programme (INEP) through transfers to public entities and municipalities.
• The DPMRE is committed to developing mining and energy sectors, prioritizing occupational health and safety, community engagement, and infrastructure development.
RULING PARTY POLITICS
Deputy President Paul Mashatile has faced criticism for his public displays of personal wealth.
• Reports have revealed that Mashatile owns a multi-million personal residence and is
involved in excessive loans with family members and controversial business figures.
• Mashatile oversaw the Gauteng Partnership Fund as the MEC of Human Settlements and it
has been revealed that companies owned by his son and son-in-law has received an
excessive amount of loans from the GPF during that period.
• These loans were given to Nonkwelo Investments, which in turn funded Legacy Properties,
the owner of the residence where the Deputy President now lives. This raises questions
about whether the funds used to purchase the property came from the loans Mashatile had
to account for during his tenure.
Newly elected president of the ANC Women’s League (ANCWL) Sisisi Tolashe has shown her hand and has vowed to remain a strong ally of President Cyril Ramaphosa.
• This is a sign of the President of the ANC and the country having consolidated is support.
• Just after the ANC WL Conference suspended its business, Tolashe vowed that the ANC WL would “support and rally around” Ramaphosa. This, in spite of ANC factions, business, civil society, and opposition parties having attacked the President for weak political leadership and the maladministration evident in the Phala-Phala saga.
The ANCYL National Conference, which is the first elective conference in 8 years, has been highly anticipated due to the disarray within the party following the presidency of Jacob Zuma. During Zuma’s tenure, the Youth League was improperly directed, leading to internal conflicts. Secretary
General Fikile Mbalula is now facing criticism for his hands-on involvement in the ANCYL National Conference.
·Collen Malatji President
·Phumzile Mgcina Deputy President
·Mntuwoxolo Ngudle Secretary General
·Tsakani Shiviti Deputy Secretary General (New position)
·Zwelo Masilela Treasurer General
The ANC Veterans League had its elective conference in Benoni and expressed disapproval of the party’s decision to go into coalitions with other political parties after the 2024 national elections.
The voting results for leadership of the Veterans League are as follows:
·Snuki Zikalala President
·Mavuso Msimang Deputy President
·Ilva Mackey Langa Secretary General
·Dr Connie September Deputy Secretary General (New position)
·Fazel Randera Treasurer General
OPPOSITION PARTY POLITCS:
The opposition party, Democratic Alliance, threatens investigations and court actions against ANC’s Secretary-General, Fikile Mbalula, for a R3 million home loan.
• They also plan to take similar actions against Deputy President Paul Mashatile for his luxurious lifestyle and association with Edwin Sodi, who faces fraud and corruption charges related to the R255 million asbestos roofing removal project.
• The party filed a complaint alleging State Capture 2.0 involvement with the Office of the Public Protector. ANC members criticized for not addressing Maswanganyi’s failure to appoint PRASA board.
Consequences for betraying public trust:
• #UniteBehind filed complaints against Maswanganyi and five other MPs.
Dr. Dion George of the Democratic Alliance (DA) criticizes the ANC’s proposal to increase taxes for the National Health Insurance (NHI).
• He warns of an unfair burden on taxpayers and a potential tax revolt. The DA has challenged the lack of transparency in the NHI Bill, which could harm the country’s finances, especially with rising living costs. The ANC’s plan to raise taxes would worsen the burden on struggling taxpayers.
The DA has asked NERSA to suspend Eskom’s proposed grid regulations, fearing it will discourage investment in the energy sector.
• They argue that Eskom should encourage private sector participation instead of opposing investors.
• The DA plans to make representations to NERSA, as no economic impact assessment has been done on the regulations.
• They believe asking IPPs to spend more on power generation without guaranteeing grid access hinders independent power generation. Instead, Eskom should focus on encouraging private sector involvement.
PARLIAMENTARY WORK:
CJ ZONDO CRITIQUE HSRC COLLOQUIUM
• Parliament acknowledged its positive response to the Commission’s work, including participating and submitting various reports on its oversight role and holding the Executive accountable.
• The Commission’s report, tabled by the President on October 23, 2022, contained 16 recommendations for Parliament’s role, along with three recommendations for legislation and the Committee on Ethics and Members’ Interests.
LOGB MEETING WITH POLITICAL PARTIES NATIONAL DIALOGUE ON COALITION GOVERNMENTS
• The Deputy President, as the Leader of Government Business in the National Assembly, met with political parties in Parliament to discuss the upcoming National Dialogue on Coalition Governments. This dialogue was scheduled for July and addressed concerns raised in Parliament about the lack of a stable legislative framework for coalition governments, which hampers service delivery.
• The National Dialogue on Coalitions occurred on July 27, 2023, involved all levels of government and parliamentary parties. This inclusive forum aimed to have productive discussions and create a strong legal framework for effective coalition governance in South Africa.
STANDING COMMITTEE ON APPROPRIATIONS (SCOA) – NA PASSES APPROPRIATION BILL
• The SCOA reviewed the Appropriation Bill on 8 June 2023. The National Assembly discussed and approved the 2023/24 bill. It is currently under review by the National Council of Provinces (NCOP).
NCOP PASSES POSTBANK AND FINANCIAL MATTERS AMENDMENT BILLS
• The NCOP passed the South African Postbank Limited Amendment Bill and the Financial Matters Amendment Bill during its hybrid plenary on 20 June 2023.
THE FINANCIAL MATTERS AMENDMENT BILL
The Acts being amended include the Associated Institutions Pensions Fund and Temporary Employees Pension Fund Act, Military Pensions Act, Government Employees Pension Law, Financial and Fiscal Commission Act, Agricultural Development Bank Act, and Auditing Profession Act.
Notable Amendments to FM and GEPF
• The Financial Matters Amendment Bill has been amended to address discrimination against
life partners of military pensioners. The changes will allow life partners to claim benefits
retrospectively.
BILLS APPROVED FOR COMMENT BY CABINET
Draft Marriage Bill of 2022
National Water Resource Infrastructure Agency (NWRIA) Bill of 2022
Divorce Amendment Bill of 2023
The African Renaissance and International Cooperation Fund (ARF) Amendment Bill
BUSINESS:
The South African Revenue Service (SARS) has imposed an excise duty on vaping tobacco products from June 2023.
• SARS Commissioner Kieswetter appointed 3 Deputy Commissioners, including 1 internal candidate and 2 from the business sector.
Tongaat-Hulett creditors have approved a rescue plan for the company’s property arm, while concerns about illicit trading with Russia at Simons Town naval dock are causing public and business worry.
The Minister of Agriculture is optimistic about employment in the agricultural sector but highlights inconsistent electricity supply as a concern.
• Crop yields are projected to be positive, but geopolitical tensions raise worries about food security and trade.
• The Minister intends to expand market access and maintain existing export markets.
SA CUSTOMS UNION 8TH SUMMIT – 29 JUNE 2023 – ESWATINI
• The Summit emphasized SACU Member States’ collaboration in addressing economic challenges caused by global developments. It commended the Council for implementing the SACU Strategic Plan approved in June 2022.
• The Summit completed an Operational Plan to guide its implementation, outlining projects related to trade digitalisation, risk management, compliance, and infrastructure development.
• Member States will prioritize ready-to-implement projects in industries like meat, leather, fruits, textiles, and pharmaceuticals. A Task Team has been formed to assess the production of fertilizers, agro-chemicals, and seeds. All SACU Member States have ratified the AfCFTA Agreement with a 90% tariff reduction over ten years.
• The Council held a Ministerial Retreat to strengthen SACU institutions for successful implementation of the Strategic Plan. StatsSA released GDP figures on 6 June 2023.
• Despite a 0.4% growth, the economy is stagnant and sluggish due to load shedding. SouthAfrica’s investment spending needs to double to achieve elevated and inclusive growth.
• Manufacturing, transport, and construction drove small growth, with the manufacturingsector growing by 1.5% and contributing 0.2% to GDP. The finance, real estate, and businesssector also grew by 0.6%. Low growth dims hopes for the poor, risking further contraction and worsening living conditions during winter.
• The South African workplace lacks transformation despite 30 years since the first democratic election, with white males holding 62% of management positions. Marginalization of women, people with disabilities, and slow pace concerns the Minister of Employment. The 15th BRICS Summit in South Africa will discuss the future of emerging economies, but Putin won’t attend due to war crime accusations.
• The Democratic Alliance has accused Putin of war crimes and abducting Ukrainian children, invoking the International Criminal Court’s directive against him. The official opposition party has even attempted to arrest Putin, adding to the issue of his presence at the summit. Agreements made at this summit will impact global economic development. President Ramaphosa will release a statement addressing key issues and related foreign policy matters
before the BRICS Summit.
ESKOM AND LOADSHEDDING:
Minister of Electricity, Kgosientsho Ramokgopa, initially claimed success in addressing load shedding but the optimistic statements proved to be empty promises. Load shedding resumed with severe consequences for families, workers, and the economy, causing uncertainty and frustration. Eskom faces challenges in refurbishing generation units.
• Delays in Koeberg plant’s life-extension project disrupt energy generation.
• Oversight conducted by Ramokgopa at the Koeberg nuclear power plant has revealed significant delays in the life-extension project, causing further disruptions in energy generation. Ramokgopa is investigating these delays to prevent a potential audit of Koeberg’s nuclear safety.
G7 legal challenge hinders renewable energy plans.
• The legal dispute between Eskom and G7 over grid access rules strains Eskom’s renewable
energy resupply plans. G7 seeks fair access for independent power suppliers.
Eskom’s biggest risk of grid collapse is on the transmission side, not generation. Plans for transmission development face financing issues.
• The President is reviewing a bill to solve Eskom’s debt, with two key components: writing off R184 billion and taking over the loan portfolio of R70 billion in 2025/26. The bill aims to address Eskom’s debt by writing off a portion and taking over its loans. However, Eskom cannot borrow more funds and must find alternative ways to tackle the challenge. The grid development plan involves seeking liquidity from the private sector while retaining
ownership and system control. South Africa has sufficient capacity for coal power stations but needs additional capacity for renewable energy sources.
LATEST DEVELOPMENTS – POWER CRISIS – KARPOWERSHIP SA DFFE APPROVAL
Karpowership, a company involved in the RMIPPPP contracts, has received news from the Department of Forestry, Fisheries and the Environment (DFFE) regarding the dismissal of appeals from environmental groups.
• These appeals were challenging the condonation granted by the department for the late submission of Karpowership’s final environmental impact assessment report (EIA) in Richards Bay.
The RMIPPPP contracts awarded to Karpowership have been surrounded by controversy and legal challenges.
• Concerns have been raised about the cost and duration of the projects, as well as their potential environmental impact. To address these concerns, Karpowership has been engaging in discussions with Transnet National Port Authority to find a new location for its
power ships to be moored at the Port of Ngqura (Coega).
In response to these developments in the environmental approval processes, Desmond D’Sa of South Durban Community Environmental Alliance said they maintain their position that the deal with Karpowership must be scrapped. Electricity minister Kgosientsho Ramokgopa, whose ministerial powers include the authority to determine new generation capacity and emergency power procurement, has been vocal in his support for the power ships, but he believes the term of the contracts should be drastically reduced.
• He has made it clear that emergency power procurement deals should not be for more than
three to five years
