ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

1. 
   Banks Amendment Bill, 2014, submitted by the Minister of Finance.
   

2. 
   Financial and Fiscal Commission Amendment Bill, 2014, submitted by the Minister of Finance.
   

Referred to the Standing Committee on Finance and the Select Committee on Finance.

1. 
   The Minister of Finance
   

1. 
   Banks Amendment Bill [B 17 – 2014] (National Assembly – proposed sec 75) [Explanatory summary of Bill and prior notice of its introduction published in Government Gazette No 38247 of 25 November 2014.]
   

Introduction and referral to the Standing Committee on Finance of the National Assembly, as well as referral to the Joint Tagging Mechanism (JTM) for classification in terms of Joint Rule 160.

1. 
   Report and Financial Statements of the Council for Debt Collectors for 2012-13, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2012-13.
   

1. 
   2014 Third Quarterly Report of the National Conventional Arms Control Committee (NCACC), tabled in terms of section 23(1)(c) of the National Conventional Arms Control Act, 2002 (Act No 41 of 2002).
   

1. 
   The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 75 Bill:
   

1. 
   Auditing Profession Amendment Bill [B 15 – 2014] (National Assembly – sec 75).
   

1. 
   Membership of Committees
   

The following changes to Committee membership have been made:

1. 
   Democratic Alliance:
   

2. 
   Inkatha Freedom Party
   

Appointed: Msimang, Mr CT

Appointed: Msimang, Mr CT

Appointed: Msimang, Mr CT [ALTERNATE]

2. 
   Government Notice No 636, published in Government Gazette No 37915, dated 22 August 2014: Exemption: Zastrovect Investment Proprietary Limited, in terms of the Public Finance Management Act, 1999 (Act No 1 of 1999).
   

3. 
   Government Notice No R.632, published in Government Gazette No 37916, dated 22 August 2014: Amendment of Schedule No. 1 (No 1/1/1493) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
   

4. 
   Government Notice No R.633, published in Government Gazette No 37916, dated 22 August 2014: Amendment of Schedule No. 1 (No 1/1/1494) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
   

5. 
   Government Notice No R.639, published in Government Gazette No 36780, dated 30 August 2014: Amendment of Rules (DAR/125) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
   

6. 
   Government Notice No R.640, published in Government Gazette No 36780, dated 30 August 2014: Amendment of Schedule No. 1 (No 1/1/1494) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
   

7. 
   Government Notice No R.659, published in Government Gazette No 37959, dated 5 September 2014: Amendment of Schedule No. 1 (No 1/1/1495) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
   

8. 
   Government Notice No R. 667, published in Government Gazette No 37959, dated 5 September 2014: Determination of amounts for purposes of the Military Pensions Act, in terms of the Military Pensions Act, 1976 (Act No 84 of 1976).
   

9. 
   Government Notice No 707, published in Government Gazette No 37979, dated 12 September 2014: Exemption in terms of section 92: Centre for Public Service Innovation, in terms of section 91 of the Public Finance Management Act, 1999 (Act No 1 of 1999).
   
10. 
    Government Notice No 708, published in Government Gazette No 37979, dated 12 September 2014: Exemption in terms of section 92: Municipal Infrastructure Support Agency, in terms of section 91 of the Public Finance Management Act, 1999 (Act No 1 of 1999).
    

11. 
    Government Notice No R.743, published in Government Gazette No 38027, dated 26 September 2014: Amendment of Schedule No. 1 (No 1/1/1496) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
    

12. 
    Government Notice No R.771, published in Government Gazette No 38052, dated 3 October 2014: Amendment of Schedule No. 1 (No 1/1/1498) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
    

13. 
    Government Notice No R.774, published in Government Gazette No 38060, dated 10 October 2014: Amendment of Schedule No. 1 (No 1/1/1499) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
    

14. 
    Government Notice No R.781, published in Government Gazette No 38082, dated 10 October 2014: Amendment of Schedule No. 1 (No 1/1/1500) in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
    

1. 
   Government Notice No R.840, published in Government Gazette No 38139, dated 29 October 2014: Designation of correctional facility in terms of section 159B(2) of the Act: Amendment of Government Notice No. R.941 of 10 November 2011, in terms of the Criminal Procedure Act, 1977 (Act No 51 of 1977).
   

1. 
   Petition from residents of Mookgopong, Limpopo, requesting improved delivery of municipal services, submitted in terms of Rule 312 (Ms D van der Walt).
   

1. 
   REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL REPORT 2013/14 OF THE NATIONAL SKILLS FUND (NSF) AND NATIONAL SKILLS AUTHORITY (NSA), DATED 19 NOVEMBER 2014
   

The Portfolio Committee on Higher Education, having met with the National Skills Fund and National Skills Authority, reports as follows:

The Portfolio Committee convened a meeting with the NSF and NSA on 29 October 2014 to consider their Annual Report 2013/14. This report provides a brief summary of the presentations made by the NSF and NSA including observations and recommendations made by members.

The National Skills Fund (NSF) was established in terms of section 27 of the Skills Development Act of 1998 specifically to; fund identified projects in the National Skills Development Strategy (NSDS) as national priorities, fund projects related to the achievement of the purpose of the Act as the Director-General determines and to administer the fund within the prescribed limit as regulated from time to time. The NSF is funded primarily from 20% of levies collected from eligible employers in terms of the Skills Development Levies Act. This funding is used primarily to fund projects, pay the South African Revue Service (SARS) for the costs of collecting levies from employers and to pay for the administration cost of NSF. The Director-General of the Department of Higher Education and Training is the accounting Authority of the NSF and is mandated to control the Fund, keep proper records of the Fund and prepare its annual financial statements.

Mr A Kabingesi: Committee Secretary, Ms M Modiba: Content Advisor, Ms T Majone: Committee Assistant, Mr L Komle: Researcher and Ms N Magazi: Executive Secretary.

Mr Z Mvalo: Acting Deputy Director-General Skills Development, Mr T Tredoux: Chief Financial Officer (CFO), Mr F Toefy: Chief Director, Ms N Rasmeni: Parliamentary Liaison Officer Office (PLO) of the Minister, Ms P Sekgobela: PLO Office of the DG, Mr S Mlangeni: PLO Office of the Deputy Minister and Ms B November: Intern Office of the Deputy Minister.

Mr E Mashabane: Director, Mr W Minnie: Chief Financial Officer, Ms S Theron: Director and Ms K Hlongwane: Director Provincial Operations.

Mr E Majadibodu: Chairperson, Mr T Mashangoane and Ms S Mangubewa: Deputy Director.

Ms N Mafahla: Audit Supervisor, Ms C Smit: Manager

Mr D Stupan: Director CNC Advocacy and Ms N Maponopono: Monitor Parliamentary Monitoring Group (PMG).

Mr W Minnie: CFO led the presentation which highlighted the following key issues:

Mr T Mashangoane: Director led the presentation which highlighted the following key issues:

The following formed part of the observations:

• 
  The Portfolio Committee commended the entity’s key achievement in funding the national skills development priorities as identified in the NSDS III, National Growth Path, Industrial Policy Action Plan (IPAP) 2013/14-2015/16, and Medium Term Strategic Framework 2009-2014. The funding of infrastructure development for the post-school education and training institutions to expand access and success to education and training was also commended, though the delay in the building of the TVET College campuses was not well received.
  
• 
  The Portfolio Committee was seriously concerned that 60% of vacancies at the entity were not yet filled and this inadequate capacity might impact on project monitoring and evaluation given the increase in the number of projects that have committed funds.
  
• 
  It was raised with concern that the Annual Report 2013/14 of the entity was inaccurate in relation to its financial statements and the targets for the period under review were unreliable and vague.
  
• 
  Inaccurate and untimely financial and performance reporting resulting in non-compliance with laws and regulations was highlighted as serious concern that need to be addressed by the entity.
  
• 
  The Portfolio Committee noted with concern that the NSF is not a legal persona.
  
• 
  It was raised with concern that though the Skills Development Act provided for the discretion of the Minister and the Director-General on funding of some projects, there was a need for objectivity.
  
• 
  The Portfolio Committee was concerned that though the NSF was listed as a Schedule 3A Public Entity in 2012, it relied on the Department’s supply chain management policies, Information and Communication Technology (ICT) systems, Human Resource Policies and other policies.
  
• 
  In relation to achievement of targets, the Portfolio Committee was concerned with the under-achievement in the targets set for the period under review.
  
• 
  Given the financial reserves that are managed by the entity, the Portfolio Committee was concerned with inadequate record and information management system for financial and performance reporting.
  
• 
  The Portfolio Committee was of the view that the entity should contribute more in funding needy students in universities and Technical and Vocational Education and Training (TVET) Colleges to supplement the current National Student Financial Aid Scheme (NSFAS) budget shortfall.
  
• 
  It was noted with concern that though the NSF operated as a disbursement agency, the tracking of learners or beneficiaries for its projects was solely outsourced to the institutions which received the NSF grants. Furthermore, NSF could not account on the progression of the beneficiaries or learners funded.
  
• 
  The Portfolio Committee commended the Department for the new SETA grant regulations which would allow unspent SETA surpluses to be re-directed to the NSF for other priority projects.
  

5.2 National Skills Authority

• 
  The Portfolio Committee was seriously concerned with the delays in the appointment of the new board of the NSA by the Minister.
  
• 
  It was noted with concern that the NSA did not have adequate financial reporting though it received funds from the NSF and Department.
  

The meeting with the NSF and NSA provided members with insight into the activities and functions of these entities. The NSF is an important role player in the funding of skills development projects and other priorities that are meant to develop and uplift the livelihoods of the country’s citizens. The Fund’s disbursement towards skills development of R3.1 billion during the year under review was commendable and it benefited 77 000 learners for training. The listing of the NSF as a public entity presented the organisation with challenges since it was a directorate located within DHET. The entity did not have adequate capacity at the time of its listing to operate independently from the DHET and a service provider had to be appointed to assist with setting up of the organisation. Unfortunately, there were delays in the appointment of the service provider and this impacted negatively on achievements of targets planned. Nevertheless, the entity reported that it has a transformation project called “Siyaphambili” which will be completed by 2016. Through this project, the entity has identified action plans to deal with all its challenges and to develop its way forward.

The Portfolio Committee recommends to the Minister to consider the following:

• 
  The delinking process of the NSF from the DHET should be fast tracked;
  
• 
  The Minister should consider the review of the Skills Development Act to make the NSF a legal persona;
  
• 
  The entity should develop an action plan to respond to all the findings raised by the AG in the 2013/14 Annual Report;
  
• 
  The filling of vacant posts should be prioritised to improve monitoring and evaluation of skills development projects;
  
• 
  Reprioritisation of funds from unspent historically accumulated reserves and the uncommitted funds from SETAs’ discretionary funds should be facilitated to cover the NSFAS budget shortfall for higher education institutions, in particular the student historic debt;
  
• 
  The entity should develop clear performance indicators to track and report on the success of learners in the funded skills development projects; and
  
• 
  The Department should fast track the building of the TVET College campuses.
  

7.2 National Skills Authority

• 
  The research capacity of the Authority should be expanded.
  

Report to be considered.

2. 
   REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING ON THE ANNUAL REPORT 2013/14 OF THE LOCAL GOVERNMENT SECTOR EDUCATION AND TRAINING AUTHORITY (LGSETA) AND SERVICES SECTOR EDUCATION AND TRAINING AUTHORITY (SSETA), DATED 19 NOVEMBER 2014
   

The Portfolio Committee on Higher Education on Training, having met with the LGSETA and SSETA, reports as follows:

The Portfolio Committee convened a meeting with the LGSETA and Services SETA on 05 November 2014 to consider their Annual Report 2013/14. This report accounts for work done by the Committee during assessment of the annual performance of the LGSETA and SSETA. The report further makes financial and non-financial recommendations for consideration by the Minister of Higher Education and Training.

The LGSETA and Services SETA were established in terms of the Skills Development Act No. 97 of 1998 with the mandate to promote skills development for the local government and services sector respectively. The Minister of Higher Education and Training relicensed the SETAs for the five years period from 1 April 2011 to 31 March 2016, to operate within the skills development framework articulated in the National Skills Development Strategy (NSDS) III framework and other policies and strategies. The SETAs are public entities that fall under Schedule 3A of the Public Finance Management Act, No 1 of 1999 and they are funded through the 1 percent levy income paid by employers to the South African Revenue Services (SARS).