DTIC on beneficiation and localisation; 1st draft of Quarter 4 DTI & EDD Report; Oversight reports

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Trade, Industry and Competition

19 June 2020
Chairperson: Mr D Nkosi (ANC)
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Meeting Summary

Video: Portfolio Committee on Trade and Industry 19 June 2020

The Committee was briefed on beneficiation and localisation. The Committee also considered the 1st draft of its report on the Quarter 4 DTI & EDD performance. Committee oversight reports were also adopted.

Members heard that South Africa’s comparative advantage in mineral resources had not been leveraged to industrialise the country hence the key policies driving beneficiation were the Mineral Petroleum Resources Development Act (MPRDA), the Mining Charter and the beneficiation strategy. Some of the key challenges the SA minerals sector was facing included increases in the electricity price, increases in the import of mining equipment despite the competitiveness of the local industry, and the decline of research and development. The DTIC was focussing on beginning with platinum fuel cells. The Committee asked why the Department had approved the acquisition of Highveld Steel by ArcelorMittal South Africa (AMSA) in February 2020 as a strategic intervention when it seemed more like collusion to block small competitors in the industry; ‘Why had permits not been issued and what was being done to assist the scrap metal industry’? And ‘Was the diamond refinery component of the Aerotropolis project in Ekurhuleni part of the DTIC beneficiation mandate’? The Committee heard that AMSA had been a good fit to take over Highveld Steel because it had the input material required to continue Highveld Steel’s operation. With regard to the scrap metal industry it was explained to Members that scrap metal dealers were required to offer scrap metal to local buyers first. COVID-19 had created a shortage of scrap metal so buyers had not had time to make offers. Members were pleased to hear that the process of issuing permits has being restarted. With regard to the Aerotropolis project in Ekurhuleni, the Department would follow up on this with the Gauteng Industrial Development Zone and get back to the Committee.

Members were concerned about people not benefiting enough from the country’s minerals and that there were no contingency plans in place to create jobs in the minerals sector. The Members asked the Department to provide details of specific products that were planned to be locally produced, and by what date. Government’s plans to pursue fuel cells and energy storage were outlined to the Committee. The Committee was interested in how the Department planned to subvert job losses as a result of COVID-19. Members were pleased to hear that the key to better integrating black industrialists into value chain was to move towards downstream activities where the barriers to entry were lower. In response to when the DTIC was going to integrate its work with other related departments, Members heard that progress in this regard was slightly delayed because at this stage integration of other departments was not seamless. However Members were assured that all projects and programmes mentioned were collaborative efforts as the DTIC worked closely with the Departments of Science and Innovation, the Department of Public Enterprises, the Department of Transport, as well as the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA).  

The Committee was briefed on localisation with the understanding that local content was a legislative requirement, in line with the 2017 preferential procurement regulations. In addition, organs of state could self-designate certain products and in the context of COVID-19, this meant that face shields, for example, could now be designated. Members asked if the South African Bureau of Standards (SABS) had the necessary capacity to handle the local verification of PPE electronically rather than manually; ‘How far was the Department in the development of new rules regarding border tariffs and unfair trade rules’; whether there was any strategy for the local beneficiation of raw materials; and ‘How could the government protect black industrialists’?

It was explained to Members that the Department was learning that supporting local manufacturing involved other instruments, beyond preferential procurement regulations; export control measures had been introduced as part of the lockdown to ensure that local demand for PPE was met; SABS was involved with monitoring local content and adherence to standards and was now also doing product testing before tender awards;  the Department was learning through PPE procurement was that for localisation to happen different instruments were required; and that there was an instruction note to provide a space for young people to participate in and for black industrialists to produce and supply PPE. Members were keen to find out what impact the African Continental Free Trade Area (AfCFTA) would have on local content requirements when it came into full force. Members heard that the negotiations on public procurement as part of the AfCFTA had been postponed but this would not prevent trade in PPE because as head of the African Union, President Cyril Ramaphosa was coordinating the supply of PPE in Africa. 

Meeting report

The Chairperson asked if there were any comments on the agenda before inviting the Department of Trade, Industry and Competition (DTIC) to deliver its first presentation on beneficiation. He said that he expected to hear about the government’s beneficiation strategy and interventions, including specific projects with their expected outcomes and timelines, and the impact that COVID-19 might have had on their roll-out.

Briefing by the DTIC on beneficiation
Ms Thandi Phele, Acting Deputy Director-General (DDG): Industrial development, DTIC, explained that South Africa’s comparative advantage in mineral resources had not been leveraged to industrialise the country. Beneficiation was not a new phenomenon in the country. The key policies driving beneficiation were the Mineral Petroleum Resources Development Act (MPRDA), the Mining Charter and the beneficiation strategy.

Dr Umeesha Naidoo, Director: Primary Minerals Processing, DTIC, gave a general situational overview of the South African minerals sector in 2019 and some of the key challenges it was facing, including increases in the electricity price, increases in the import of mining equipment despite the competitiveness of the local industry, and the decline of research and development. She looked at the potential of the re-imagined industrial strategy and the policy interventions to achieve this potential.

Dr Naidoo discussed several areas of beneficiation which the DTIC was focussing on beginning with platinum fuel cells. South Africa had more than 80% of the world’s reserves of platinum and the sector provided 175 000 jobs. Fuel cells were a potential new market for platinum as the demand for catalytic converters decreased with the expected decline in combustion engines. Fuel cell technology had potential for use in rural contexts, telecommunications and transport. She also discussed local battery manufacturing (including a pure nickel sulphate plant supported by the Black Industrialist Programme), manganese, titanium and rare earth element beneficiation, mining equipment imports (which were increasing despite the capability and competitiveness of South African manufacturers), the steel industry, the proposed export tax on scrap metal, and polymer beneficiation. She emphasised that beneficiation could provide enormous competitive advantages throughout the manufacturing sector. It was a long-term project that required government to provide an enabling environment and the private sector to invest for the long haul.

Discussion
Mr M Cuthbert (DA) questioned why the Department had approved the acquisition of Highveld Steel by ArcelorMittal South Africa (AMSA) in February 2020 which had reduced competition in the steel market. AMSA was now shedding jobs. The Department seemed to consider it a strategic intervention but it seemed more like collusion to block small competitors in the industry.

Dr Naidoo replied that AMSA had been a good fit to take over Highveld Steel because it had the input material required to continue Highveld Steel’s operation.

Mr Cuthbert observed that scrap metal permits had not been re-issued since March 2020. ‘Why had permits not been issued and what was being done to assist the scrap metal industry’?

Dr Naidoo explained that scrap metal dealers were required to offer scrap metal to local buyers first. COVID-19 had created a shortage of scrap metal. Buyers had not had time to make offers when the notice had been released by the International Trade Administration Commission (ITAC) and they had asked for an extension. The process of issuing permits was being restarted.

Mr Cuthbert asked about the diamond refinery component of the Aerotropolis project in Ekurhuleni. ‘Was it part of the DTIC beneficiation mandate’? ‘Could the Department provide an indication of how successful it had been’?

Dr Naidoo replied that the Department would follow up on this with the Gauteng Industrial Development Zone and get back to the Committee.

Ms Phele confirmed that the Department would provide a written response on this matter.

Ms Y Yako (EFF) was concerned that people were not benefiting enough from the country’s minerals. Many strategic plans were presented without time-frames. Young people needed to know in order to plan for their futures. The country should have had contingency plans in place to create jobs in the minerals sector. She asked if the Department could provide details of specific products that were planned to be locally produced, and by what date.

Dr Naidoo replied that the government was pursuing fuel cells and energy storage, as these products were expected to see an increase in demand due to greenhouse gas commitments. South Africa was in a good position as it was well-endowed with many of the required minerals.

Ms P Mantashe (ANC) noted with concern that the presentation was silent on the number of jobs their beneficiation programmes would create. It made no mention of whether it would counter the jobs lost in platinum mining in its industrial development zones. COVID-19 was adding to job losses too.

Dr Naidoo replied that the titanium project was expected to create 1300 jobs, the nickel sulphate plant 60 jobs, the vanadium project 700 jobs, and in the mining equipment sector, R1bn of imports replaced with locally manufactured equipment would create 2000 jobs.

Ms Mantashe said that South African companies did not give business to black industrialists. ‘When would South African companies be forced to use local products’?

Ms Phele said that the key to better integrating black industrialists into value chains was to move towards downstream activities where the barriers to entry were lower. Demand was an issue, however.

Ms Mantashe asked when the export of scrap metal would be stopped. It was a valuable resource from which it required less energy to extract metal than ore, and this value was being allowed to leave the country.

Ms Phele replied that the scrap metal policy was very important. The Department had been trying to curb the export of scrap metal for a long time in order to increase beneficiation and reduce reliance on traditional minerals. This matter has been part of the IPAP since its adoption.

Ms Mantashe asked when the DTIC was going to integrate its work with other related departments. Progress was delayed when the integration of other departments was not seamless.

Dr Naidoo replied that the DTIC worked closely with the Departments of Science and Innovation, the Department of Public Enterprises and the Department of Transport, as well as the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA). All the projects and programmes mentioned were collaborative efforts.

Ms Phele confirmed that DTIC collaborated closely with its sister departments, particularly the Department of Mineral Resources and Energy (DMRE) to determine the best way of using the Mining Charter, MPRDA and the Energy Policy.

Mr D Macpherson (DA) said that nothing in the presentation had changed over the last six years. It contained no new ideas. The only difference was in policy and legislation. The MPRDA and the Mining Charter, which were the policy and legislation underpinning the beneficiation programme, had been rejected by all businesses in the sector because they were not viable, and yet one still wonders why mines were closing down, jobs were being lost and no beneficiation was taking place. The legislation simply did not make it economically viable to do business in the sector. Nothing would change until the MPRDA and the Mining Charter were scrapped. Furthermore, the South African mining sector was simply too small for manufacturers of mining equipment to be competitive. There needed to be a complete reset of legislation and policy and recognition of the realities in South Africa before anything would change. ‘How did the Department plan to rescue the failing mining sector when it was underpinned by bad policy and legislation’?

Dr Naidoo acknowledged the need for policy certainty as well as improved policy and legislative coordination.  This was a key area of focus for the Department. It was also identified in the re-imagined industrial strategy.

Ms Phele added that as officials of the DTIC, they were unable to give a firm answer as to how these issues of policy and legislative coherence would be resolved. The DMRE was engaging with the mining industry and the Minerals Council to find a resolution.

Mr J Mulder (FF+) thanked the Department for the positive document but he agreed with Mr Macpherson that it was not realistic. He asked the DTIC to elaborate on its role in driving beneficiation policy. The information given in the presentation was very basic.

Dr Naidoo replied that its policy levers included designation, black economic empowerment and trade policy support as well as interventions with the South African Revenue Service (SARS) to do with illicit trade and illegal imports.

Mr Mulder asked how state capture had affected the Department’s efforts to promote beneficiation.

Ms Phele said that painful lessons had been learned from state capture, particularly in some of the large public procurement, and there might be things that needed to be looked at in the beneficiation space too. She acknowledged that state capture has crippled the ability of the state to drive and deepen industrial development.

Mr W Thring (ACDP) observed that the presentation gave a figure of $2.5 trillion for the value of South Africa’s mineral reserves, but according to his knowledge it was closer to $5 trillion. In any case, South Africa only accounted for 1% of mineral exploration, and this was an imbalance that needed to be corrected. The comparative advantage given by South Africa’s resource endowment needed to be turned into a competitive advantage however that was as long there was policy and legislative uncertainty, there would be no investment. He said that the country should be looking at beneficiation of the mining equipment value chain. SA had imported $3.5 billion worth of mining equipment between 2009 and 2018. This was inexcusable and showed that there had been poor planning. As long as 20 years ago he had pointed out that beneficiation was not working. The Department had to stop talking about the challenges and start looking at rectifying them. ‘How could we be price-takers in the platinum market when we had 80% of the world’s reserves’? He was also concerned that the presentation did not include any information on the number of jobs that would be created. When oil had been found in one of the Baltic States, the citizens of that country had benefited. ‘How were South African’s benefiting from our huge mineral reserves’? As long as South Africa remained a consumer of other countries’ products rather than a producer, the country would not make headway. He wanted to see a schedule of all the minerals that would be beneficiated and how many jobs would be created.

Mr Thring did not understand the reference to “SSA, greater than 60 million households” in the presentation and asked for clarification.

Dr Naidoo replied that this was the potential for application of fuel cells in rural households in Sub-Saharan Africa.

Mr Thring stressed that research and development would be important if the country was going to see any benefit from the by-products of its huge mineral resources.

Dr Naidoo agreed that research and development was important. The DTIC was working closely with the Department of Science and Innovation (DSI) to bolster research programmes focussed on industrial development and has commercial applications for beneficiation.

Mr Tebogo Makube, Chief Director: Industrial Procurement, DTIC, made some general remarks. He said that the Department had raised the issue of beneficiation as important to resolving some of the country’s economic challenges. The DTIC was not the main Department behind minerals policy, but because of the important linkages, particularly between mining and manufacturing, it was critical that it played a role. 50% of South Africa’s exports were unprocessed minerals. This represented a loss in value and was unsustainable. The country was affected by global declines in demand for certain minerals. To increase local demand, the country had to beneficiate but it took time and was affected by global demand changes. There had been some positive changes, such as an increase in global demand for metals such as palladium and rhodium from the automotive industry. Along with other linkages to the automotive industry such as fuel cells, these minerals represented an opportunity. The Mining Charter put an emphasis on local procurement of mining equipment, notwithstanding the legal challenge to it. The import of mining equipment affected the country’s trade balance as well as the mining sector, and the Department was engaging with the mining sector to identify equipment that could be locally manufactured in order to create jobs and improving the trade balance. The Department wanted to see the country become an exporter of mining equipment as mineral reserves were discovered in more African countries. He thanked the Committee for its input. It would be helpful for the Department to be guided on which policy areas it should amplify in order to address the critical challenges of jobs creation and low economic growth.

Ms Claudy Steyn, Chief Director: Chemicals, Cosmetics, Plastics and Pharmaceuticals, DTIC, made some general comments on the polymer value chain. This was a labour-intensive sector with a very bright future, as plastics had revolutionised car design. The Department was aiming for a 60% local content requirement that would provide a platform to deepen the automotive value chain. Companies such as Sasol were cutting jobs and this would have an impact. The Department was trying to support companies in order to realise the high growth potential of the sector. At the moment the focus was on compounding and components. The Department was also working closely with Sasol on polypropylene beneficiation. One promising project was the substitution of steel washing machine drums with cheaper, lighter polypropylene drums, as had been done in Brazil.

Ms Phele made some further general remarks. She stressed the energy, transport and technological intensity of the early stages of mineral beneficiation. The competitive advantage of local smelters had been eroded over the last ten years due to increasing electricity prices and unstable electricity supply. Electricity pricing was a key tool of industrial policy. The aluminium smelters had been established on the back of very concessionary electricity pricing in a different era, when there had been an abundance of electricity supply. In the wake of COVID-19, the global economy had become very uncertain. Global demand was shrinking and lots of protectionist policies were being implemented, many countries are increasingly re-shoring the manufacturing activities and greater focus on localisation, highlighting that we need to find new areas of growth. As traditional markets shrunk, new opportunities were also opening up, such as the “greening” of the automotive industry. There was also a greater focus on the African continent, as in many mineral value chains South Africa was already manufacturing products that were in demand in developing countries, such as piping and construction materials. This would be done while developing partnerships with other African countries.

Briefing by the DTIC on localisation
Mr Makube explained that “designation” referred to the introduction of a local content requirement on a product. Local content was a legislative requirement, in line with the 2017 preferential procurement regulations. In addition, organs of state could self-designate certain products. In the context of COVID-19, this meant that face shields, for example, could now be designated. He gave an overview of the products that had been designated since 2012/13, noting that wheelie bins had been designated in 2016/17 after the Portfolio Committee had asked the Department to intervene. For some products that were not easy to find the Department was still building supply chains. He provided detail on the precise local requirements of designated products, noting that pharmaceuticals were designated on a tender-by-tender basis to guarantee security of supply and because of global debates around intellectual property rights. He also discussed the local content requirements for Personal Protective Equipment (PPE) in response to COVID-19). Exemptions to these requirements were only granted where local manufacturing capacity did not exist. He looked at some of the barriers to local PPE production and procurement as well as the current state of supply and demand of critical PPE, noting that these numbers were constantly changing. He discussed what the Department was doing to ensure that the supply of PPE was adequate and met local content requirements.

Discussion
Mr S Mbuyane (ANC) thanked Mr Makube for the eye-opening presentation. The President had spoken the day before about resetting policies according to “the new normal”. ‘How far was the Department in the development of new rules regarding border tariffs and unfair trade rules’?

Mr Makube replied that the Department was learning that supporting local manufacturing involved other instruments, beyond preferential procurement regulations. Tariffs were another instrument and it was also necessary to monitor imports. Many countries were imposing tariffs, including the USA, and it was debatable whether it was disregarding the World Trade Organisation (WTO). There were critical engagements with SARS and particular products that posed a threat to local industries were being identified.

Ms Phele added that certain provisions of the ITA Act to ensure that the local demand of PPE are met. The export control measures had been introduced as part of the national disaster management process. Exports of masks, sanitisers and certain medicines are controlled. Some of these measures had been revised (Minister issued an amended publication on 11 June 2020) as we have learned during this period. For example, the lists of medicines to be controlled had been shortened to focus of relevant medicines that can assist the efforts to fight the pandemic and reduce the administrative burden on the Department and ITAC. The Department is looking at cloth masks as an export opportunity. A duty rebate facility was also introduced to enable importation of critical supplies duty free while local industrial capacity was being developed. As of 31 May 2020, some PPE products have been removed from this facility as we have been able to ramp-up local production and build stocks to meet the growing local demand. 

Mr Mbuyane asked if the South African Bureau of Standards (SABS) had the necessary capacity to handle the local verification of PPE electronically rather than manually. The SABS had been experiencing challenges with information and communication technology.

Mr Makube replied that SABS was involved with monitoring local content and adherence to standards and was now also doing product testing before tender awards.

Ms Phele added that while SABS was the agency responsible for local content verification, COVID-19 and the lockdown had interrupted its work. In the last budget cycle the Department had tried to take over some of the responsibility for verification from SABS.

Mr Mbuyane asked whether there was any strategy for the local beneficiation of raw materials. He was also concerned that beneficiation and local content requirements had verifiable benefits for local people in terms of jobs. ‘How could the government protect black industrialists’?

Ms N Motaung (ANC) asked if there was a breakdown of women and young people who had been given opportunities to supply PPE. ‘What measures had been taken to help them meet demand’? ‘Where were these opportunities advertised’?

Mr Makube said that weekly meetings were being held to ensure that local manufacturers were supported. The Black Industrialists Programme was government policy. What the Department was learning through PPE procurement was that for localisation to happen different instruments were required. The issue of tariffs had to consider in protecting the SA market. There was a need to diversify suppliers. The country’s ports of entry had to be protected and what comes in had to be monitored. The Bureau of Standards was also doing some testing of the products. There was an instruction note to provide a space for young people to participate in and for black industrialists to produce and supply PPE. There had been an advert by the South African Local Government Association (SALGA) as well as the UNDP calling on small and medium manufacturers to apply for funding, while the IDC was also looking at funding applications. The need for PPE would be ongoing, so the more suppliers there were the better.

Ms Phele added that the Department had done a lot of work on the supply side of PPEs. She requested the portfolio committee support and assistance (delete: had a role to play) on the demand side. Public Procurement (delete: was always) is a very decentralised function (delete: process), in PPE space a significant procurement is done by provincial health departments and treasuries, and therefore we do not always have visibility on the awards and whether the local content requirements are indeed adhered to. (delete: , and) she asked for support from the Committee in providing oversight to ensure (delete: in ensuring) that orders for PPE found their way to local manufacturers. She also highlighted that there is also significant Procurement of PPE (delete: was) taking place in the private sector, as various sectors are returning to work and have to implement protocols to protect the health and safety of the workers. (delete: as well as the public sector and) the Department was working with Proudly South Africa has created (to create) a portal for all suppliers, particularly small and township suppliers. 

Mr Cuthbert asked what impact the African Continental Free Trade Area (AfCFTA) would have on local content requirements when it came into full force.

Mr Makube replied that the negotiations on public procurement as part of the AfCFTA had been postponed. This would not prevent trade in PPE. As head of the African Union, President Cyril Ramaphosa was coordinating the supply of PPE in Africa.

Ms Phele added that there were interesting continental developments taking place through the Southern African Development Community (SADC) and the African Union (AU), looking at ways to coordinate the supply of PPE and leverage the continental demand.


Mr Cuthbert appreciated that local PPE producers were being protected during the pandemic, but businesses that he had put in touch with government had received no feedback.

Mr Cuthbert asked whether the “prams” that were being used to transport patients in rural areas of the Eastern Cape had been checked for local content, and whether due diligence had been done before they were procured.

Mr Makube replied that these prams were not designated for local production.

Ms J Hermans (ANC) asked what penalties were imposed on institutions, including government institutions that used the ongoing crisis to procure supplies offshore. If local industries were not supported, the economy would not recover.

Mr Makube replied that there were engagements with provinces to make sure that they implemented the law.

Ms Hermans observed that the pandemic had shown that South Africa was a net importer of pharmaceutical products. ‘What could be done to ensure that local production of pharmaceuticals increased’?

Ms Steyn explained that security of supply was crucial for pharmaceuticals, especially since South Africa had a very heavy burden of diseases. The country needed to ensure an adequate and affordable supply in the public and private sector. South Africa does not produce the raw materials and does not currently have the technology and capability to produce the majority of the Active Pharmaceutical Ingredients (APIs). There was an opportunity, however, to make inroads, especially in the production of certain APIs based on the current demand of the pharmaceuticals. 

Ms Swasthi Soomaroo, Director: Pharmaceutical and Medical Services, DTIC, added that the Department the volatility of the rand affected the cost of the raw materials that South Africa procured, and the country also did not have the manufacturing scale of India or China. Along with other Departments, DTIC was investing in an innovation cluster to research processes that could compensate for the country’s disadvantage of scale. She said the platforms were in place to locally manufacture a great number of products. Competing with the likes of India and China remained the biggest challenge.

Mr Thring suggested that the designation of fire trucks could be extended to include other emergency vehicles such as ambulances.

Mr Makube replied that work was being done to expand local content requirements in the automotive sector. The possibility of local content requirements for vehicles being procured by government was also being looked at. The feasibility of including ambulances would be looked into.

Mr Thring said that photovoltaic power systems should be installed on all government buildings. He had visited an industrial park which had installed photovoltaic panels on the buildings but had been told that they could not use them without various certificates. The legislation needed to assist businesses and not be a hindrance in this regard.

Mr Thring asked whether rail coaches could be included as a designated product.

Mr Makube explained that coaches were designated. They fell under the category of rolling stock.

Ms Motaung asked why KN95 and N95 masks had been designated for local content, given that these masks were not produced in South Africa. In the local content it was shown that young people and women were supposed to have been given the opportunity to supply these products. ‘What measures were taken to assist women to meet the demand?’

Ms Elaine Smith, Director: Clothing and Textiles, DTIC, replied that KN95 was a Chinese standard and N95 was an American standard. FFP2 was the equivalent European Union (EU) standard, and these masks were being produced by a number of local manufacturers. If a supplier of KN95 and N95 masks was to tender to a public institution for these products to be imported, an exemption would not be granted as they would be side-stepping the local content requirements

Closing the discussion, the Chairperson said that he hoped “made in South Africa” became a marker of quality. He thanked the Department for its input.

Consideration of the Committee Report on the Fourth Quarter Financial and Non-Financial Performance of the DTIC and Economic Development

Mr Andre Hermans, Committee Secretary, said that concluding remarks on the Report had been received from the ANC regarding:

- The impact of COVID-19 on some performance targets;
- The Youth Employment Service programme;
- The non-achievement of job creation targets;
- The reasons for the non-publication of a new Industrial Policy Action Plan (IPAP);
- COVID-19 small business assistance;
- The reasons for underspending on certain programmes;
- The publication of regulations; and
- The progress on scrap metal export regulations.

There were no comments from Committee Members and there were no recommendations to be considered.

Mr Hermans said that a final draft of the Report would be tabled for formal consideration the next week.

Consideration of the Oversight Reports to Gauteng and Western Cape

Gauteng Oversight Report

Some technical and grammatical changes to the Gauteng Oversight Report had been received from the National Regulator of Compulsory Specifications. The Report was adopted with these changes.

The Gauteng Oversight Report was adopted with amendments.

Western Cape Oversight Report
Mr Mbuyane recalled that the Committee had raised the lack of ventilation and air conditioning at Rise Uniforms as an issue, and asked for this to be reflected in the Western Cape Oversight Report. The Report was adopted with this addition.

The Western Cape Oversight Report was adopted with amendments.

Committee business
Ms Hermans proposed that this agenda item be postponed.

The Chairperson agreed. He said he would circulate the programming information that was going to be discussed.

Mr Cuthbert wanted to understand the Chairperson’s response to the Management Committee meeting the previous week. He drew attention to two text messages he had received and shared this with the Chairperson which levelled all sorts of baseless accusations against Committee Members. He had also shared a National Lotteries Commission (NLC) newsletter which listed a large proportion of the beneficiaries of the COVID-19 fund. He asked ‘Why had they not been able to provide the Committee with this information’?

Mr Mbuyane suggested that these issues raised by Mr Cuthbert be dealt with formally.

The Chairperson said that the Management Committee would reconsider some issues. They would bring them to the Committee for engagement.

The meeting was adjourned.

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