Government discourages taxi industry shutdown
Transport Minister Fikile Mbalula has appealed to the leadership of the taxi industry not to embark on a shutdown on Monday.
“We are convinced that there is no basis for any kind of shutdown, and we appeal to the leadership of the taxi industry to discourage any such actions and give space to ongoing discussions. Our engagements with the leadership of the taxi industry have been cordial and constructive and we do not believe there is basis for acrimony,” Mbalula said on Sunday.
The Minister remarks follow the announcement by the Gauteng Provincial arm of the South African National Taxi Council (SANTACO) of a shutdown as a result of their objection to the Taxi Relief Support announced by government on Friday.
On Sunday, the Minister held a special MINMEC to deliberate on the Taxi Relief Support and the threat of a shutdown by SANTACO in Gauteng.
The meeting was attended by the MECs, Executive Mayors of eThekwini and Ekurhuleni, as well as MMCs from Johannesburg, Cape Town, Nelson Mandela Bay and Buffalo City Metros.
“We find this action rather unfortunate and counterproductive. Resorting to shutting down services as an expression of disagreement with the quantum of the amount the government is offering the industry as relief support, does nothing for the industry,” the Minister said.
He said a service shutdown will not only negatively affect the working class, but will worsen the devastation of the industry.
“The decision to avail R1.135 billion to the taxi industry as relief support was not an easy one. We literally had to scrape the bottom of the barrel to reach this amount, because we believe the taxi industry is deserving of support as the largest mover of our people.
“We must equally appreciate that government has limited resources, which must equally benefit all other sectors,” Mbalula said.
The Minister said none of the relief packages offered by government equate to compensation for losses, but rather limited support to cushion the impact of the COVID-19 pandemic.
“We have taken note of the industry objections to the model we seek to employ to disburse these funds. We have therefore made a commitment to further engage within government on the industry concerns and provide feedback to the industry on Wednesday.
“We have further committed to the industry that the Tuesday meeting will also provide feedback on their proposal for a 100% loading capacity. We will then proceed to issue Directions to formalise the process and to give clear guidance on how individual operators can access the relief benefit,” the Minister said.
The Department of Transport has made a firm commitment of moving towards a funding model that will ensure that the taxi industry is subsidised.
“This is part of the long-term commitment government is making to the industry, which must be underpinned by an accelerated process to formalise this industry. While others see formalisation as a challenge, there is no doubt that it is central to the long-term objectives of sustainable economic growth
“Our collective effort and focus must be on directing resources towards the long-term sustainability of the industry. We reiterate our commitment to introducing subsidy as part of the long-term empowerment model of the taxi industry,” the Minister said.
On Friday, the department announced that the SA Taxi Finance will put a moratorium in place on vehicle repossessions and also extend their initial one-month repayment holiday by a further two-months.
“This is part of the broader interventions we have made in support of the industry, which include providing personal protective equipment (PPE), amongst others,” the Minister said.
Protection of Personal Information Act sections come into effect
The Presidency has announced the commencement of certain sections of the 2013 Protection of Personal Information Act.
The Act, which gives effect to section 14 of the Constitution, provides that everyone has the right to privacy.
“The Act promotes the protection of personal information processed by public and private bodies and seeks to balance the right to privacy against other rights, such as access to information,” said the Presidency in a statement on Monday.
Since 2013, the Act has been put into operation incrementally, with a number of sections of the Act having been implemented in April 2014. Some of these sections include those relating to the establishment of the Information Regulator. The members of the Information Regulator took office on 1 December 2016.
Many of the remaining provisions of the Act could only be put into operation at a later stage, as they require a state of operational readiness for the Information Regulator to assume its powers, functions and duties – in terms of the Act.
Much has since been done in this regard, culminating in the commencement of a number of remaining sections, which has now been proclaimed by the President.
The relevant sections and applicable dates are as follows: sections 2 to 38; sections 55 to 109; section 111, and section 114 (1), (2) and (3) shall commence on 1 July 2020.
Sections 110 and 114(4) shall commence on 30 June 2021.
The sections that will commence on 1 July 2020 are essential parts of the Act and comprise sections that pertain to, amongst others, the conditions for the lawful processing of personal information; the regulation of the processing of special personal information; Codes of Conduct issued by the Information Regulator; procedures for dealing with complaints; provisions regulating direct marketing by means of unsolicited electronic communication, and general enforcement of the Act.
Section 114(1) is of particular importance, as it states that all forms of processing of personal information must, within one year after the commencement of the section, be made to conform to the Act. This means that entities (both in the form of private and public bodies) will have to ensure compliance with the Act by 1 July 2021. However, it stands to reason that private and public bodies should attempt to comply with the provisions of the Act as soon as possible in order to give effect to the rights of individuals.
The reason for the delay in relation to the commencement of sections 110 and 114(4) – which are to commence on 30 June 2021 – is that these sections pertain to the amendment of laws and the effective transfer of functions of the Promotion of Access to Information Act, 2000 (PAIA) from the South African Human Rights Commission to the Information Regulator. In this regard, the Commission must finalise or conclude its functions referred to in sections 83 and 84 of PAIA and all mechanisms must be in place for the Regulator to take over these functions.
Entities that process personal information must ensure that it is done in a lawful way.
The Act is fundamental in safeguarding persons’ personal information, protecting them against data breaches and theft of personal information.
COVID-19 cases jump to 97 302, with 53 more deaths
The country recorded 4 621 new COVID-19 cases on Sunday, bringing the total number of infections to 97 302.
Meanwhile, there are 53 additional fatalities of which 27 are from Western Cape, 17 from Eastern Cape, eight are from Gauteng and one from KwaZulu-Natal, bringing the death toll to 1 930.
On Saturday, South Africa reached a new daily infections record – with 4 966 cases reported.
According to Health Minister, Dr Zweli Mkhize, the number of recoveries is 51 608, translating to a recovery rate of 53%, while the number mortality rate is 1.98%.
The Western Cape is still the hardest hit province with 51 441 cases, followed by Gauteng with 20 822, Eastern Cape with 15 751 and KwaZulu-Natal with 5 030.
The North West is now sitting at 2 148, Free State 733, Mpumalanga 573, Limpopo 564, Northern Cape 237 and three cases are unknown.
The country conducted 1 328 060 tests since the outbreak of which 34 452 were done in the last 24 hours.
According to the World Health Organisation, there are 8 708 008 cases and 461 715 deaths globally.
President to open inaugural SIDSSA
President Cyril Ramaphosa will on Tuesday open the inaugural Sustainable Infrastructure Development Symposium of South Africa (SIDSSA).
SIDSSA will be hosted virtually and will attract both a national and international audience.
The symposium will be held under the theme, ‘Investing in infrastructure for shared prosperity: now, next and beyond’ and comes at a critical juncture when South Africa charts a course for economic recovery in the post COVID-19 period.
“Government has affirmed that catalytic infrastructure investment can contribute to higher long-term growth, address spatial disparities, transform the economy and create much-needed jobs.
“The infrastructure projects earmarked to revive the economy will focus on the network industries of water, transport, energy and digital infrastructure, as well as sectors with high job absorption capacity, such as human settlements, agriculture and agro-processing,” said the Presidency in a statement.
It said the symposium is a culmination of a vigorous stakeholder consultative process over the past few weeks to mobilise support and cooperation on the revised Infrastructure Investment Plan.
The consultative process with stakeholders across the public and private sector was led by the Minister of Public Works and Infrastructure, Patricia de Lille, and Head of Investment and Infrastructure Office in the Presidency, Dr Kgosientsho Ramokgopa.
The revised plan focuses on partnerships between the public and private sectors for the delivery of sustainable, fit-for-purpose infrastructure.
SIDSSA projects, which will be gazetted after the symposium, have been selected from an initial 177 that underwent a rigorous due diligence process.
The Presidency said the priority projects in the immediate term are those that best support the aims of government, which include creating jobs, alleviating poverty, growing the economy and promoting a better quality life for all citizens.
The selection process culminated in a series of pitch sessions, which afforded project sponsors an audience with over 60 national and international funding institutions. These included multilateral development banks, development finance institutions, asset managers and commercial banks.
In addition to facilitating access to the funding that is needed to implement the projects, the SIDSSA process also seeks to overcome regulatory obstacles to infrastructure roll-out by developing a framework for fast-tracking approval processes and facilitating quicker executive decisions in the short- and medium-term, as well as influencing legislation to support developmental imperatives.
The speakers at SIDSSA are all subject knowledge experts and will provide valuable insights on how to implement the Infrastructure Investment Plan successfully.
All event updates can be found on www.sidssa.org.za.
DPE to oppose SAA liquidation application
The Department of Public Enterprises (DPE) has expressed its intention to oppose an SA Airlink application, which seeks to place South African Airways (SAA) under provisional liquidation.
In a statement on Monday, the department said it was notified of a court application by SA Airlink aimed at interdicting the Business Rescue Practitioners (BRPs) from convening a creditors’ meeting to vote on a business rescue plan for SAA.
The DPE has not been cited as a respondent in the SA Airlink application.
“The department is also aware of plans by the National Union of Metalworkers of South Africa (NUMSA) and the South African Airways Cabin Crew Association (SACCA) to interdict the creditor’s meeting through the courts,” the department said.
It said SA Airlink contends that there is no reasonable prospect of rescuing SAA.
“As we approach the final week to either endorse or reject the business rescue plan by the BRPs, it is disturbing that a competitor of SAA, which is 100% privately owned, as well as two labour unions, who should be acting in the best interest of their members, are seeking to destroy SAA by forcing a liquidation through the courts. The question is, why? Is this really in the interest of SAA workers or the fiscus?” the department questioned.
The BRPs have scheduled a creditors’ meeting for 25 June 2020 to vote on the business rescue plan. Should NUMSA and SACCA launch an application to stop the creditors’ meeting, DPE will oppose the application.
Government, as the sole shareholder of SAA, supports the business rescue plan where it results in a viable, sustainable and competitive airline that provides integrated domestic, regional and international flight services.
It further supports the provisions of the Companies Act, which prescribes that the primary function of a business rescue process is to develop and implement a rescue plan, with the view of fundamentally restructuring the business affairs and other liabilities of a company in distress, in a manner which maximises the likelihood for it to continue to exist on a solvent basis.
For this reason, said the department, government has made funds available to the BRPs to the tune of R5.5 billion to augment the revenue of SAA, so as to develop a detailed business rescue plan, to consult with creditors, other affected stakeholders like employees, the shareholder and the board and management of the company under business rescue.
“Government is committed to supporting a competitive, viable and sustainable national airline and wishes to engage constructively towards the national interest objective of such an airline in a constrained fiscal environment, taking into account the impact of the COVID-19 pandemic on this situation,” DPE said.
Measures to address structural economic constraints
President Cyril Ramaphosa says as the country repairs the damage caused by the Coronavirus pandemic, government will be implementing measures to address structural economic constraints.
The President was responding to oral questions from the National Assembly on Thursday.
He said that even before the Coronavirus pandemic, South Africa’s economy has been experiencing low growth over a number of years.
“The pandemic has exposed some of the structural fault lines in our economy, including the vulnerability of small businesses and those in the informal economy.
“Therefore, as we repair the damage caused by the pandemic, we will be implementing measures to address the key structural constraints in the economy.
“These include the mismatch between skills produced and the new skills required in a 21st century economy, and the spatial patterns of development that keep millions of workers far away from workplaces,” he said.
The President said government will also need to address the reality of a poorly-developed small and medium business sector within an economy that has large concentration of market share and ownership in too few hands.
He said there was a need to provide access to capital for many young entrepreneurs, women-owned enterprises and black industrialists.
“As we rebuild the economy after Coronavirus, we will speed up structural reforms that can unleash enterprise and capitalise on the digital economy and the larger markets that are possible through the African Continental Free Trade Area.”
He said steps have already been taken in a number of areas to address these challenges.
This includes industry masterplans that have been developed in sectors such as automobile manufacturing, clothing and textiles, poultry production and the sugar industry, as well as reforms in energy policy and the decision to release spectrum in the market.
“If we are to achieve an inclusive economy, we need to deal with the historical injustices in relation to land ownership, access and use.
“Expediting land reform for a more productive economy without weakening our fiscal position will require, among other things, a social compact between the State and private landowners on how to release more land.
“The initiative by Anglo American to donate land to the State is an indication of what is possible if we share a common vision as a country.
“Another example is the PALS [Partnership in Agricultural Land Solutions] initiative in the Witzenberg valley, where commercial farmers have been working with local communities and farm workers to promote land reform.
“Government is working with the agricultural industry to develop a sector plan, which will focus on growth areas such as the livestock, wool and grain industries.”
The President said recent auctions have highlighted livestock wealth among black farmers, which indicates that an inclusive, targeted initiative has the potential to transform the livestock value chain.
He also said that the release of State-owned land and post-settlement support has commenced.
“Over 100 000 hectares have already been allocated to successful beneficiaries, and the intention is to release all the remaining 700 000 hectares by the end of the financial year.
“Transformation must be pursued with greater vigour so that we have more equitable outcomes and a greater number of jobs.
“Above all, building a more inclusive economy will enhance longer-term growth, productivity and development for all South Africans,” he said.
Scientific advice, consultations informed easing of lockdown
President Cyril Ramaphosa says government relied on scientific advice, consultations and the experience of other countries when it made the decision to gradually ease lockdown.
The President said this when he fielded oral questions from members of the National Assembly during a hybrid question and answer session on Thursday.
“In deciding on when to begin the gradual and systematic easing of the lockdown, government was guided by the views of the scientists, the experience of other countries and wide-ranging consultations.
“It also took into account the economic and social disruption caused by the lockdown, and the devastating impact it was having on people’s incomes and livelihoods,” he said.
EFF leader Julius Malema had asked the President if the decision to ease lockdown from alert level 5 to level 4 and then level 3 within a short space of time was informed by scientific evidence and if he had been lobbied by any persons to ease lockdown for business operations to resume.
The President said in providing guidance, the Ministerial Advisory Committee used the level of community transmission as the basis for determining the state of the pandemic in the country.
He said that at that time, the proportion of Coronavirus tests that were positive had been consistently low for a long time and had remained in a narrow range of 1.5% to 3.5% for several weeks in all parts of the country except in the Western Cape.
“In arriving at this decision, due consideration was given to the criteria suggested by the World Health Organisation for countries to transition from lockdown to re-opening of normal social activities,” the President said.
These criteria used considered a number of factors:
– Firstly, that disease transmission is under control;
– Secondly, that health systems are able to ‘detect, test, isolate and treat every case and trace every contact’;
– Thirdly, that hot spot risks are minimised in vulnerable places, such as nursing homes;
– Fourthly, that schools, workplaces and other essential places have established preventive measures;
– Fifthly, that the risk of importing new cases ‘can be managed’; and,
– Lastly, that communities are fully educated, engaged and empowered to live under a new normal.
The President said in an advisory to the Minister, the Ministerial Advisory Committee noted that some of the World Health Organisation (WHO) criteria may not be appropriate for South Africa.
Unlike several other countries, South Africa deliberately implemented a lockdown early in the progression of the disease as a strategy to delay transmission.
“We did this knowing that we would not be able to bring transmission under control by the time we had to ease the lockdown, but that it would give us the time we needed to strengthen our health system and put a comprehensive public health response in place.
“The WHO has supported South Africa in this approach.”
The President said in considering the transition from alert level 5 to alert level 4 and, subsequently, to alert level 3, he had engaged with numerous stakeholders including business, labour, community representatives, political party leaders, premiers, mayors, traditional leaders and the religious sector among others, as part of government’s consultation process.
“As the National Coronavirus Command Council, we remain committed to consult widely with diverse stakeholders in taking decisions that will both protect the lives of our people and support their livelihoods.”
Programme to bring informal economy into the mainstream
President Cyril Ramaphosa says the Coronavirus pandemic has helped government in the implementation of a programme aimed at bringing the informal economy into the mainstream.
The President said this when he fielded oral questions from members of the National Assembly during a hybrid question and answer session on Thursday.
He said just before the Coronavirus outbreak, Cabinet approved the Township and Rural Entrepreneurship Programme.
“This programme is aimed at putting township and rural enterprises at the centre of economic growth.
“According to research commissioned by the Department of Small Business Development, the informal sector has a central role in the South African economy, as it accounts for 18% of total employment and contributes towards the livelihoods of millions of people.
“The pandemic has assisted the implementation of this critical intervention, which seeks to bring marginalised people and areas into the mainstream economy,” he said.
Responding to questions, the President said as part of government’s package of responses to the pandemic, government has been providing financial and non-financial assistance to the informal sector to cushion workers from the economic effects of COVID-19.
Government has also taken measures to support households that rely on income from informal businesses by topping up social grants over a six month period and introducing a special COVID-19 grant of R350 a month over six months for unemployed people.
“Financial assistance to informal businesses has taken the form of grants, loans and credit facilities that informal businesses can access to sustain their livelihoods.
“The non-financial interventions include business development support services that help informal businesses to improve their business management capabilities.
“This will assist informal businesses, should they wish, to make the transition to micro, small and medium-sized businesses in the formal sector,” the President said.
The interventions would make it easier for informal businesses to benefit from government incentives, SMME programmes and procurement opportunities.
The President said the Department of Small Business Development has introduced programmes targeted at specific sub-sectors of the informal economy.
He said over the next three years, the programmes aim to support 100 000 spaza shops and general dealers, 50 000 artisanry businesses, 15 000 hairdressers, beauticians and other personal care businesses, 50 000 vegetable street vendors and butcheries, and 10 000 informal restaurants.
“Other programmes include the Small Scale Automotive Aftermarket Support Scheme to support 5 000 informal businesses over 12 months, and the Bakeries and Confectioneries Support Programme, targeting 3 500 businesses over 12 months.
“Some of these programmes have already been implemented and are gaining traction.
“Through these programmes, which prioritise black-owned, youth-owned and female-owned SMMEs, thousands of jobs have been saved and a significant number of SMMEs have been kept in business.”
AU launches online platform for COVID-19 supplies
President Cyril Ramaphosa says a new continental online platform will help African countries to access critical medical supplies needed to fight the COVID-19 pandemic.
The President, in his capacity as the Chairperson of the African Union, said this when he launched the Africa Medical Supplies Platform on Thursday evening.
“Through this platform, we will address shortages and security of supply, ensure price competitiveness and transparency in procurement, reduce logistical delays, simplify payment processes and provide a common platform where governments can access services from quality and certified suppliers.
“Think of it as the Amazon, the Alibaba or even the eBay of Coronavirus resources on the African continent, made in Africa by Africans, the fundamental difference being that on this platform, the buyer is not an individual but governments,” he said.
The Africa Medical Supplies Platform, developed in partnership with African Export-Import Bank (Afreximbank), is a non-profit initiative launched by the African Union as an immediate, integrated and practical response to the COIVD-19 pandemic.
The online platform was developed under the leadership of African Union Special Envoy, Strive Masiyiwa, and powered by Janngo, on behalf of the African Union’s Africa Centres for Disease Control and Prevention (Africa CDC).
Afreximbank will facilitate payments, while logistics partners, including African national carriers and global freight forwarders, will expedite delivery.
A strong emphasis is also placed on showcasing and funding ‘Made in Africa’ manufacturers of medical equipment, with relevant certification.
Afreximbank brought to bear its $3 billion Pandemic Trade Impact Mitigation Facility (PATIMFA), of which $200 million has been reserved to support food production, as well as the manufacture of and trade in medical equipment and supplies.
Countries to get competitive prices by cutting out the middle man
Launching the platform in a virtual media briefing, the President said countries will be able to source supplies directly from manufacturers in both the necessary quantities and at competitive prices.
“Once a vaccine is available, it too will be added to this portal, in line with our stated commitment to ensuring there is equitable access to any form of lifesaving medication.
“Resources will be secured by governments on a quota basis determined by, among other things, vulnerability level.
“The benefits of resource pooling in such a manner are innumerable.”
He said countries will have ready access to an online marketplace at the click of a button, as opposed to the onerous and time-consuming process of scouring the globe to procure these medical supplies.
The President said connecting manufacturers and suppliers with governments directly removes the ‘middle man’ in supply chain processes that far too often become the doorway through which corrupt practices, like price inflation and ‘agent management fees’, enter.
“By pooling the needs of the continent, we manage to achieve quantities of scale and present suppliers with a large and assured market.
“Finally, and arguably most importantly, with this platform, we are laying another building block towards the African Continental Free Trade Area, whose launch has been delayed by the pandemic,” he said.
SA has capacity to deal with corruption: President
President Cyril Ramaphosa says the country has sufficient law enforcement agencies to deal with corruption.
The President said this when he fielded oral questions from members of the National Assembly during a hybrid question and answer session on Thursday.
Inkatha Freedom Party (IFP) chief whip Narend Singh had asked President Ramaphosa if the billions of rands allocated for government spending in response to COVID-19 presented an opportunity for corruption and criminal elements, and whether he saw it important to establish a new Chapter 9 institution to deal with grand scale corruption.
“There are sufficient law enforcement agencies to deal with incidents of corruption.
“These include institutions like the National Prosecuting Authority (NPA), the Directorate for Priority Crime Investigation (Hawks) in the SA Police Service (SAPS) and the Special Investigating Unit,” he said.
The President said the Office of the Auditor General and the Financial Intelligence Centre also play important roles in detecting instances of corruption.
The office of the Auditor General will be taking additional measures, including proactive auditing, to ensure the proper use of COVID-19 funding.
“We have also established the NPA’s Investigating Directorate to focus on corruption cases arising from the Zondo Commission of Inquiry into State Capture and other commissions.
“We also have a progressive legislative framework for addressing the escalating number of investigations, prosecution and trial of serious forms of corruption.”
This, the President said, includes the Prevention of Organised Crime Act and the Prevention and Combating of Corrupt Activities Act.
“I am advised that the Justice, Crime Prevention and Security Cluster is undertaking work to revamp the criminal justice system, which will include the strengthening of the governance arrangements, intelligence-driven and prosecution-led investigations and mechanisms for the recovery of ill-gotten proceeds.
“We therefore take the view that the establishment of a new independent Chapter 9 institution to focus on grand corruption may not be necessary at this stage.
“However, we should continue to consider all available options to ensure that we eradicate corruption across society,” said the President.