Hon Speaker, hon Ministers, hon members of the House, comrades and friends, in less than three weeks from today South Africa will once again be the focus of the world. We will be hosting about 20 000 people in Durban from all over the world for the 17th Conference of the Parties to the United Nations Framework Convention on Climate Change, UNFCCC, and the 7th Conference of Parties serving as the Meeting of the Parties, CMP 7, to the Kyoto Protocol.
You will be aware, hon members, that South Africa is participating in this event as a party in the negotiations, and also as the host and president of the conference. Hon Minister Molewa has been leading us in playing the former role, and the Department of International Relations and Co-operation is playing the latter role.
We have, however, established an IMC, or Inter-Ministerial Committee, at the level of the Cabinet to ensure co-ordination and synergy of the two roles, as well as that of hon Minister Manuel, who is representing Africa on the Transitional Committee for the envisaged Green Climate Fund. It was important that we defined the delineation between the roles, as this has in the past caused challenges in COP gatherings elsewhere in the world.
The global awareness of the threat posed by human-induced climate change to our planet and civilisation began in the late 1970s, culminating in the adoption of the UNFCCC, which came into force in 1994, the year of our freedom. This convention established a secretariat based in Bonn, and provided for an annual meeting of parties known as the COP, that is, the Conference of Parties.
The Kyoto Protocol established in terms of the UNFCCC, which was adopted in 1997 and came into force in 2005, commits some developed countries, known as Annex 1 countries, to emission reduction obligations. In terms of this protocol, the first commitment period for these countries expires in 2012. A new commitment period must be negotiated and agreed to if the Kyoto Protocol is to have any relevance in the future, and this is what is at stake in Durban. The Kyoto Protocol also provides for an annual conference of parties. So, what will be taking place in Durban, hon Speaker and members, is the 17th Conference of Parties of the UNFCCC and the 7th Conference of Parties, CMP 7, serving as party members of the Kyoto Protocol.
With South Africa's opening its arms of ubuntu for COP 17/CMP 7, it will be the third time that an African country will host this global climate change event. South Africa follows in the footsteps of Morocco, which hosted COP 7 in Marrakech in 2001, and Kenya, whose capital Nairobi received COP 12/CMP 2 in 2006. Each of the two Cops made a historic contribution to the global climate change negotiations and the implementation of the UNFCCC. While COP 7 with its Marrakech Accords is remembered for having consolidated the definition of the rules in the protocol and setting the stage for the coming into force of this protocol, COP 12/CMP 2 for its part gave birth to a five-year programme of work to provide support to developing countries in the adaptation efforts to climate change, namely the Nairobi Work Plan.
There are other developing countries whose names are synonymous with the UNFCCC climate change negotiations. The most spoken about meeting today in circles of climate change discourse is COP 13/CMP 3, which Indonesia hosted in 2007 and which produced the famous Bali Road Map, whose purpose was to enhance the implementation of the UNFCCC convention on the basis of four pillars, namely mitigation, adaptation, technology and finance. COP 16/CMP 6, which Mexico hosted last year, will be before the negotiators in Durban, as its Cancn Agreements have to be operationalised in Durban.
Today, hon members, we pay tribute to all the countries that have hosted the COP in the past. There are indeed other countries in the North who have hosted this event with distinction, and whose contributions we will always remember for their historic significance. Each of the sixteen COPs and six CMPs that preceded us was an important step on the road to Durban. We will do our best to follow their high standard and stellar example.
Hon members, we have said that COP 17/CMP 7 must be an African COP. By that we mean three things: The conference should be leveraged to advance African issues on sustainable development in general and climate change in particular; it should showcase Africa's success in regard to sustainable development, including our green projects; and it should harvest international partnerships for Africa's green initiatives, especially with respect to mobilising the necessary means of implementation in the form of finance, technology, and capacity-building.
As we prepare for this important global event, we have concentrated our efforts in the main on the following three areas, namely logistics, substance, and build-up, communication and outreach.
On logistics, we have an interdepartmental team, including KwaZulu-Natal Province and eThekwini Municipality, leading us in this area. We continue to monitor risks in the area, but in the main we are happy with our state of readiness. You will be aware, hon members, of our website, the logo, and the slogan of the conference, which is "Working together, saving tomorrow today". The 2010 Fifa World Cup experience has prepared our cities for the hosting of events of this magnitude.
On the state of readiness, logistical arrangements for the hosting of the COP 17/CMP 7 conference are now at an advanced stage. The Host Country Agreement was signed in Panama on 3 October 2011. The UNFCCC secretariat is currently relocating to Durban on an incremental basis. The official website, which I've already referred to, is very much alive, and hon members can get more information from there. The Inkosi Albert Luthuli International Convention Centre is the official venue for the conference. Hotel accommodation arrangements for the visiting delegates are at an advanced stage. Assistance required by the least developed countries, LDCs, and the small island developing states, Sids, is receiving priority attention. Transport requirements are detailed in the transport plans. Security plans are at an advanced stage, supported by a detailed implementation plan. All accredited UNFCCC delegates will enjoy free entry visas for this very important meeting, and the media and communication streams are also in place.
Substance is where risk to the success of the conference lies. The COP is a party-led process - parties negotiate from the standpoint of their sovereignty and national interest, which are not always in sync with each other.
The disarticulation of the North-South and developed-developing countries divide comes out sharply in this respect. With each of these "developing" and "developed" country categories are other groupings, each participating in the negotiations to extract concessions that will further what is sometimes conflicting interests.
South Africa is participating in this configuration of forces, through hon Minister Molewa, in the Brazil, South Africa, India and China, Basic, group; the G77 plus China; the African Ministerial Conference on the Environment, Amcen; the African Union's Conference of African Heads of State and Government on Climate Change, CAHOSCC, process; and the Africa Group.
Our approach with the COP presidency followed three phases. Early this year we did the rounds, consulting with all party members, which culminated in the final round at the intersessional negotiations forum in Panama. We think that in all these phases our interaction has paid off and our credibility as the incoming COP presidency remains intact.
Hon members, there are two competing visions of what should come out of the conference in Durban, even though the gap is now beginning to narrow. One vision wants to limit Durban's focus to the operationalisation of what came out of Cancn last year. The other wants Durban to focus on both the Cancn Agreements or outcomes and the finalisation of matters still outstanding from the Bali Road Map.
In this context there are a number of messages we are hearing from the parties, and topping the list is the second commitment period to the Kyoto Protocol, and indeed the operationalisation of what came out of Cancn. The conclusion of issues from the Bali Road Map is still outstanding. Africa has singled out adaptation, adaptation and adaptation as the key highlight of what should come out of Durban. Therefore, in Durban we'll have to work hard to close gaps among the parties on these key issues.
Hon Speaker and members, as mandated by the Cancn Agreements, South Africa as the incoming COP 17/CMP 7 president, earlier undertook a number of informal consultations, which I have already referred to, at the ministerial and negotiator levels. Also, one of the important meetings was the Leaders' Dialogue that took place in New York on the sidelines of the 66th United Nations General Assembly, led by President Zuma and President Caldern of Mexico.
Informal ministerial meetings, which were cohosted by the outgoing presidency of Mexico and me, have paid off very well and have been very positive, because at these meetings Ministers emphasised that there was a gap between the current level of ambition for emission reduction targets and the level required according to science.
The resolution of questions relating to the legal form of the final outcome and the next steps under the Kyoto Protocol need further attention as key elements of the Durban outcome. The dialogue initiated as part of the ministerial segment was considered highly constructive and the incoming COP presidency was encouraged to continue the dialogue, moving towards Durban. As the incoming COP presidency, we continue to make sure that, as I said earlier on, we close up the gaps that we have identified.
Hon Speaker, key messages that we are getting from this are that the outcome in Durban should be balanced, fair and credible, an outcome which preserves and strengthens the multilateral rules-based response to climate change. The approach in order to reach a balanced, fair and credible outcome in Durban must be informed by the principles that form the basis of the UNFCCC climate change negotiations. These principles include multilateralism, environmental integrity, fairness, common but differentiated responsibility and respective capabilities and equity, and honouring all international commitments and undertakings made in climate change processes.
The Cancn Agreements must be operationalised and the focus for developing countries is, again, on the establishment of the Green Climate Fund. For Durban to be successful, we have to do more than make the Cancn Agreements operational.
Finally, the outcome in Durban has to be adequate to adhere to the principles of environmental integrity, but also to continue to talk to party members to make sure that multilateralism indeed remains key.
Hon Speaker, we will also be focusing on making sure that in Durban we work together with both developed and developing countries to deliver a desirable outcome. We built up an outreach, where we undertook road shows in the country to speak to other sectoral organisations, because climate change negotiations are not just the preserve of governments, but also include the role of the Civil Society Committee, C17, and other stakeholders.
When we hosted the World Summit on Sustainable Development in 2002 and gave the world the Johannesburg Declaration, we demonstrated our commitment to the global struggle for sustainable development. At the end of the month we will do the same again when we host COP 17/CMP 7. Hon members, failure in Durban will affect what will happen in Brazil next year in Rio+20, and in India the following year in the biodiversity meeting. As our leaders emphasised at the India, Brazil and South Africa, Ibsa, summit, the three countries cannot disappoint the world. The success of Durban will be a huge victory for multilateralism. In Durban, our collective muscle as the international community must triumph as we are "working together to save tomorrow today".
One of Africa's great champions of the environment passed on recently. I am referring here to Africa's Nobel laureate, the late Prof Wangari Maathai, whose struggle to save and protect our environment won her respect the world over. One of her many words of wisdom she left with us was, and I quote: "It's the little things citizens do. That's what will make the difference. My little thing is planting trees."
In Durban we must pick up her spear and continue planting trees where Wangari Maathai left off in order to continue working together to save tomorrow today. I thank you for your attention. [Applause.]
Thank you to the Minister of International Relations and Co- operation for her statement on our readiness. I certainly agree that Durban, the city that I come from, is ready to host the approximately 20 000 people that will come to our shores for these important climate negotiations, an annual event which, the Minister has said, has taken place for a number of years across the world, including on two other occasions on the African continent.
Durban is an excellent venue for these negotiations. It has hosted a number of other large negotiation meetings and forums in the past 15 years, including those of the Commonwealth Heads of Government Meeting, CHOGM, the World Aids Conference, and the Non-Aligned Movement. It is capable of hosting this event and, indeed, we will put on a very good show for the 20 000 people who attend the event.
The designation of responsibilities between the various Ministers is exactly right. I am happy that the Minister of International Relations and Co-operation is able to co-ordinate the actual negotiations, freeing up the Minister of Water and Environmental Affairs to conduct the negotiations on South Africa's behalf and to put our country's position during the negotiations.
Indeed, this must be an African Congress of the Parties, COP. The impacts of climate change are going to affect the people of Africa disproportionately. We are not responsible for the historic emissions that are trapped in the atmosphere at this moment; yet the people of Africa are going to have a disproportionate burden foisted upon them. Therefore, it is very important that the question of adaptation is addressed at COP 17 in Durban. Much of the emissions that have already gone up since the Industrial Revolution are trapped, and we have yet to even see the impacts of those emissions on the world.
It is very important that we have a negotiated deal that continues to honour the principle of historic and differentiated responsibility. It is the burden of the developed world to take the big cuts necessary to stabilise the climate. South Africa and other emerging economies deserve the space to continue to grow.
The focus of Durban is going to be on operationalising many of the agreements that came out of Cancn last year; indeed, it is the right thing to do.
However, the big question which will be on everyone's mind is whether there will be a second commitment period under the Kyoto Protocol - the Kyoto Protocol first commitment period ends at the end of December next year. This is going to be exceptionally difficult for the South African negotiators to achieve. Indeed, this is about national interest, and although our negotiators may do their best, there is not much we can do in this regard. Many countries, including Japan, Canada and Russia, have no interest in a second commitment period under the Kyoto Protocol. Therefore, it is very important that we keep the negotiations alive, and that we salvage the most important instruments under the Kyoto Protocol so that flexible mechanisms like the Clean Development Mechanism are still able to survive, even if there is no second commitment period under the Kyoto Protocol.
In some sense there is going to be a political deal in Durban, and that is something that we must certainly fight for, bearing in mind that our principal negotiating position is that there must be a second commitment period under the Kyoto Protocol.
I think South Africa will be a very good host. There is much that we can bring to these negotiations. We as a country negotiated ourselves out of years of oppression. We must bring this to bear on these negotiations and remind other countries of the world, particularly developed countries, of the moral imperative to come up with a fair, balanced and credible climate change outcome. I thank you. [Applause.]
House Chair, the world will again be watching South Africa in anticipation when we host the seventeenth session of the Conference of the Parties, COP, in a little over two weeks. This specific conference will shape the future of the global climate change regime and hopefully voice Africa's concerns. It is therefore of the utmost importance that we stand out above the rest in the way we do things when we host this conference.
Climate change is a multilateral and global issue. It should therefore be addressed in a co-operative manner to ensure that a more viable and long- term climate change approach originates from the conference. The extensive involvement of the global community and business, as well as nongovernmental organisations, is of paramount importance.
While there remains a North-South divide regarding the unlikely second commitment to the Kyoto Protocol, South Africa can pursue debate around vital issues that will include all countries' committing to furthering the global fight against climate change. It is most important to voice Africa's concerns and to include those who are most vulnerable.
South Africa will be entering the negotiations as the host nation and therefore as a leader. Previous lessons learned from the COP meetings should be taken into account. While it is an exciting time being the host nation of a major international gathering, the time post the conference is most vital. This will be the time for government to lead South Africa into a more rigorous fight against the effects of climate change and to further educate all South Africans regarding the issue.
Cope has confidence that we will be successful in hosting another major international event. We wish the negotiating team, the Minister of International Relations and Co-operation, and the Minister of Water and Environmental Affairs, the best in this important endeavour. Make us proud! Thank you very much. [Applause.]
Chairperson, I wish to thank the hon Minister of International Relations and Co-operation for her statement, and must say that I draw much confidence from same regarding our country's logistical readiness to host the upcoming COP 17 Climate Change Conference. I am sure that this conference will be an absolute success.
South Africa is now perfectly poised upon the world stage to assume a leadership role in the fight against climate change. It is no coincidence either that we have been given one of the toughest COP conferences to host, as the world knows very well that South Africa is a veritable crucible in which miracles can and do occur.
It is in this spirit that the IFP wishes all participants a safe, productive and, ultimately, very successful 17th Conference of the Parties. I say this in memory of Prof Wangari Maathai. I thank you. [Applause.]
Chairperson, I have no doubt that as a country we are ready to host COP 17 and that we will put on a great event for the thousands of people who will be descending on Durban. I certainly hope and trust that I won't be proven wrong.
The real question, however, is whether the world is ready for COP 17, and on that front I have less faith.
This will be the fifth COP that I have attended over the past decade and, unfortunately, they have not left me inspired with a sense that the international community is resolute in its commitment to avoiding dangerous climate change.
Minister, your position as President of the COP is an unenviable one, as I believe that we have reached a stalemate in many of the most pressing issues facing these negotiations.
As an African COP though, I believe that we cannot compromise on the overriding message, namely that we want to see a legally binding commitment that will see real reductions in the greenhouse gases that threaten the livelihoods of so many people on this continent. It is time for the world to truly hear the voice of Africa on this issue. I thank you. [Applause.]
Hon members, there are too many members standing around in the passages having conversations. Could I ask those members to take their seats, please?
Chairperson and hon members, COP 17 could have been used more effectively as a rallying point to create awareness and educate South Africans about the dangers of climate change. We need to make sure that beyond the COP 17 our policies are adequately integrated to mitigate the effects of climate change.
The position of the developed countries on climate change is well documented. In this regard, this debate cannot be separated from the politics of the global economy which are characterised by duplicity and a lack of consensus on the modus operandi for the protection of intellectual property rights.
Given this lack of consensus among the stakeholders at the World Trade Organisation on trade policy issues, it is unlikely that there will be any international climate change policy agreements now and in the future. However, we wish our team success during the negotiations. Thank you.
The DEPUTY MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES: Chairperson, South Africa's constructive role in the multilateral arena will be put to the test as the host of COP 17. Moreover, South Africa will have to succeed in playing a double role during COP 17. On the one hand there is the objective role of chairing this important event. On the other hand, there is the fact that we should use this event to highlight the impact of climate change, specifically on South Africa, but also on the African continent, which has been the hardest hit by climate change effects.
In Copenhagen South Africa made certain commitments. "Practise what you preach" is a well known saying. The COP 17 platform will provide South Africa with an opportunity to successfully showcase the implementation of its own green initiatives. We must be able to show our future plans to implement, nationally, appropriate mitigation actions, which must result in the reduction of emissions by 34% by 2020 and by 42% in 2025.
By vorige COP-byeenkomste was daar geen verwysing in die finale besluite na die rol van landbou nie, hetsy in die bevordering of die bekamping van klimaatverandering nie. As ek my ander hoed as Adjunkminister van Landbou opsit, is dit belangrik dat die byeenkoms in Suid-Afrika in sy finale besluit die landbou moet inkorporeer en daarmee saam die verskille tussen die ontwikkelende en ontwikkelde lande uitwys, en ook dan die verskil wys in terme van voedselsekerheid en ontwikkeling in hierdie gevalle. Ek dank u. (Translation of Afrikaans paragraph follows.)
[In the final resolutions at previous COP meetings no reference was made to the role of agriculture, neither in the promotion nor in the combating of climate change. Wearing my other hat, as Deputy Minister of Agriculture, it is important that the meeting in South Africa should, in its final resolution, incorporate agriculture and along with it refer to the differences between developing and developed countries, and also point to the difference in terms of food security and development in these cases. I thank you.]
Chair, the ACDP notes the Minister's assurances that COP 17 is on track and we hope that COP 17 will be successful in every way.
At the heart of this COP 17 agenda, as I understand it, is the need for an extended commitment to the Kyoto Protocol. This will be an important interim legal instrument while a new instrument is developed and agreed to by participating countries.
South Africa, we agree, needs to be committed to advancing a common African position at the conference.
Clearly it is every country's responsibility to adapt in response to the effects of climate change. Mitigating these effects, or ensuring that the effects of climate change are less severe, and that the negative impact on human and natural systems is minimal, however, requires a global response. The effects of action or inaction may not be obvious in the short term, but will impact significantly on future generations.
South Africa's commitment to emission reduction and carbon budgets is impressive, but will require sustained effort and co-operation from all spheres, including individual citizens, in choosing eco-friendly lifestyles and habits.
We congratulate you, hon Minister, on your election as president of COP - a big challenge! We have full confidence that you will do an excellent job and wish you everything of the best in fulfilling the function. Thank you. [Applause.]
Hon Chairperson, the much anticipated conference is here. In his 2010 state of the nation address, the hon President committed government to ensuring that the country's environmental assets and natural resources would be valued, protected and continually enhanced. When the world descends on Durban, in the beautiful kingdom of KwaZulu-Natal, South Africa's government has the chance to lead and to ensure an important aspect, that this continent, which is vulnerable to the effects of climate change, will benefit abundantly.
Tourism must seize the opportunity to market our country in the global arena. We are glad that we have been given the green light.
The MF is also glad of the Minister's assurance that everything is ready, which adds value to the fact that South Africa will be hosting this most successful conference on the global threat, COP 17.
In regard to readiness, the MF cherishes the hope that the resolutions coming out of COP 17 will be implemented as the goals and objectives in the strategic and performance plans of every government department. They should take the lead, as the issues of climate change and carbon emissions at the household level must be dealt with to pave the way for a successful, bright and living tomorrow, as Africa is the continent hardest hit by climate change. Thank you.
House Chairperson, hon Minister and hon members, let me take this opportunity to thank the Minister for her statement on our country's preparedness to host this august event and the progress made in that regard. In less than a month, we will be hosting the world in Durban to deliberate on what I regard as matters of life and death. This conference and meeting of parties are as much about climate change as they are about the future growth and development trajectory of the world, in particular that of the least developed nations and developing states. As repeated many times before, this will not be an easy Conference of the Parties.
The conference takes place when the world is facing, amongst other things, dire economic conditions, which are, of course, crystallised in occurrences in Greece, Spain and so on. Despite these difficulties, we must remain firm in our conviction that it is our responsibility to protect Mother Earth, and we must act now.
I concur with the Minister when she said it was clear that it was the end of the line for some of these pressing issues. We cannot delay any longer. During the World Economic Forum on Africa conference that was held in Cape Town in May 2011, President Zuma characterised this dilemma in the following manner when he said:
We have to be firm about who is responsible.
As a global community, we have no alternative but to respond to the challenges of climate change; we cannot wait, we need to act now.
The thing we have to be very firm about is, where are the problems and who is responsible for delaying us moving forward so that we can focus on those who are finding it very difficult. Of course, the problem is always the differing interests that come into play when we have to take very serious decisions. We need to persuade those who are finding it very difficult. For the sake of humanity, I think we need to take very concrete decisions. We are different. The common thing is that we are all being threatened. We have to react and act and contribute in different ways.
All of us have different capacities, different contributions to make - some of us would have no contribution to make.
In executing its constitutional mandate of exercising oversight and scrutiny over government action through its Portfolio Committee on International Relations and Co-operation, Parliament received briefings from the Minister and her department about our country's readiness to host the 17th Conference of the Parties, COP 17. We understand that the single most important task of the President of COP is to facilitate an ambitious and balanced outcome.
In spite of the cynicism of some people predicting that Durban will be the death and burial of the Kyoto Protocol, I have news for them - South Africa has never hosted a failed event, never in the past. Indeed, we remain confident that countries will raise their level of ambition in respect of the outcomes of Durban, and that focus will be placed not only on the implementation of the Cancn Agreements, but also, as the Minister has elucidated, on the fact that those elements that were left out at Cancn will be brought back to the negotiating table.
It is common cause that African and developing countries are deeply committed to seeing finality in regard to the second commitment period to the Kyoto Protocol. Africa is also keen on tracking progress in regard to the setup of the Transitional Committee and the establishment of the Green Climate Fund. In this regard, the matter of governance and institutional arrangements should, as a matter of course and principle, be addressed in such a way as to ensure accessibility and an equal voice for small and developing countries.
Furthermore, we draw inspiration from the concluding statement of the Minister and incoming President of COP, following the pre-COP ministerial meeting that was held in Stellenbosch in October of this year. She said:
All parties appear to be in agreement that the outcome in Durban should be balanced, fair, and credible, that it should preserve and strengthen the multilateral rules-based system and its response to climate change. The approach to reach a balanced, fair and credible outcome in Durban must be informed by the principles that form the basis of the United Nations Framework Convention on Climate Change negotiations. These principles include multilateralism, environmental integrity, fairness based on the principle of common but differentiated responsibility and respective capabilities, equity and honouring of all international commitments and undertakings made in the climate change process ...
Climate change is as much the responsibility of Parliament as it is the responsibility of government, civil society and business. It is our collective responsibility to ensure that, in regard to the environment, we make our contribution to the fight against climate change and its consequent devastating effects on those small island states and least developed countries that are most vulnerable to the effects of climate change.
Agb lede, die debat oor klimaatsverandering is inderdaad die storie van oorlewing vir die hele mensdom. Dit vereis van ons om nou die moeilikste besluite te neem. [Hon members, the debate on climate change is indeed the story of survival for the whole of mankind. It demands from us now to take the most difficult decisions.]
It is in this regard that we are encouraged by Parliament's own plans, such as the greening of Parliament, waste minimisation, and reducing our usage of paper with a view to creating a paperless environment. Furthermore, in an attempt to contribute to the broader climate change debate and build a broad constellation of forces around the country's position towards COP 17, Parliament held a consultative seminar on climate change just two weeks ago. It was attended by various stakeholders, ranging from religious bodies, and business and civil society, to provincial and local government.
The challenge for us today, as legislators and representatives of our people, is to ensure that the climate change debate is nuanced in such a way that it finds resonance with our people. Up until this point the debates that have been taking place around this climate change matter, crucial as they may have been, have always been somewhat technical and aloof, removed from the ordinary people.
As such, it is our responsibility as legislators and as Parliament to ensure that as a matter of urgency we make climate change everybody's concern, because it is indeed everybody's business. This is in order for us to have a significant impact on the public discourse and influence our collective and individual behaviour. I thank you. [Applause.]
Debate concluded.
Consideration of report of joint committee on ethics and members' interests
The Chief Whip of the Majority Party: Chairperson, I move:
That the Report be referred back to the Joint Committee on Ethics and Members' Interests for reconsideration and report as soon as possible.
Motion agreed to.
Consideration of Budgetary Review and Recommendation Report of Portfolio Committee - Public Enterprises on performance of department of public enterprises for 2010-11 financial year
Chairperson and hon members, it is my privilege to introduce this report to the House on behalf of the Portfolio Committee on Public Enterprises. I am happy to say that the Department of Public Enterprises is one of only three national departments that have consistently received an unqualified audit opinion from the Auditor-General for a number of years in succession, and has again done so.
For the first six months of the current financial year, from 1 April to 30 September this year, the department managed to sustain its excellent financial management performance. This is a great achievement for the department - an indication of good managerial skills on the part of management and also a reflection of strong financial management systems and internal controls that are effective and efficient.
The portfolio committee urged the department to ensure that it sustains this performance and suggested, in line with the request from the office of the Auditor-General, that the department should share these successful strategies with other government departments.
The Department of Public Enterprises acts as a shareholder of very important state-owned companies, including Eskom, Transnet, SA Airways, SA Express, Denel, Safcol, Broadband Infraco and Alexkor. These state-owned enterprises, SOEs, fulfil an important role in contributing to the developmental state, including developing skills and creating jobs.
The portfolio committee resolved to undertake a visit to the head office of the Department of Public Enterprises to familiarise itself with the operations and oversight mechanisms that the department has put in place to ensure shareholder management responsibility over state-owned companies. As a matter of fact, we will visit before the end of the fourth term.
In conclusion, the following recommendations have been made: Firstly, the Standing Committee on Public Accounts should consider paying more attention to fruitless and wasteful expenditure reported in the annual reports of state-owned companies, especially the irregular expenditure of R8,3 billion and fruitless and wasteful expenditure of R36 million reported at Transnet.
Secondly, the Department of Public Enterprises should finalise the report, with recommendations, on executive remuneration in state-owned companies.
Thirdly, the department should provide the portfolio committee with shareholder compacts of state-owned companies, to enhance the oversight work of the portfolio committee.
I present the Budgetary Review and the Recommendation Report of the Portfolio Committee on Public Enterprises to the National Assembly for adoption. I thank you. [Applause.]
There was no debate.
The Chief Whip of the Majority Party: Hon Chairperson, I move:
That the Report be adopted.
Motion agreed to.
Report accordingly adopted.