Hon Speaker, the South African crude oil supply is on a very sound footing, thanks in part to government's policy approach which allowed both public and private sector players to operate in this industry. Recently, we have witnessed increasing diversity in sources of crude oil supply to our country. This is in keeping with the government's energy policy objective of achieving security through a diversity of sources.
A significant quantity of crude oil still comes from the Middle East. However, African countries have been an ever-increasing source of crude oil to South Africa. In 2012 over 40% - that's about 56 million barrels - of our country's crude oil needs were supplied by African countries. In this regard, it was mainly from Nigeria and Angola. Imports from these countries were 23% and 18% respectively. This translates to about 200 000 barrels per day being sourced from within the continent. Of course, this impacts very positively and significantly on intra-African trade.
Turning to Ghana, it is a well-known fact that significant crude oil reserves have been found in Ghana. South Africa believes that there is huge potential for mutual benefit between our two countries in this regard. South Africa can assure Ghana of crude oil demand and we can also get assurance from Ghana as a source of crude oil supply.
Year-to-year figures show that imports from Ghana have already reached 6,8 million barrels, which has increased trade figures between our two countries. Members may recall that we signed a co-operation agreement with Ghana which, among other aspects, facilitates energy co-operation between our two nations. At this stage, Sasol imports more crude oil from Ghana than any other oil company in South Africa. Going forward, we expect that this pattern will change due to increased co-operation between South Africa, Ghana, Nigeria and Angola.I thank you for your attention.
Speaker, thank you, Deputy President, for the response. As the IFP, we welcome your efforts on behalf of government to source supplies from new oil markets in order to maintain our growing economy and energy demand.
There is no doubt that our energy stability has been put in a precarious situation by the American sanctions on Iranian oil. You did indicate that our supply is on a sound footing. But as much as that is so, I think we also have to look at the price that we pay for crude oil. The price that we pay for crude oil in relation to the rand-dollar exchange rate puts a lot of pressure on ordinary citizens of this country. When the price of fuel goes up, the cost of food, transport, etc goes up. Many manufacturing costs also go up. That is an area that we also have to look at.
It is to that end that we would like to know whether the Ghana negotiations have produced positive results. As you have indicated, there are positive results. Are they sustainable in the long term for us to be able to source crude oil from countries other than Iran, so that we can benefit the citizens of our country?
Hon Singh, yes, indeed, the policy of government and our approach is to diversify our sources so that we don't put all our eggs in one basket, so to speak. Of course, as we improve relations with source countries, that also guarantees us security of supply. We even have possibilities in South-South countries such as Venezuela. I know that our colleagues at PetroSA have also been looking in that direction to try and diversify our source as much as possible.
The rand-dollar exchange rate is a difficulty. It adds to the vicissitudes of the price and it creates difficulties for the economy as a whole. There is no doubt that once PetroSA begins to own blocks and begins to pump, we can fill up our reserve capacity with crude oil. This will also assist in regulating the price and protecting consumers from these vicissitudes.
Hon Speaker, Hon Deputy President, the issue of the security of oil supply is obviously an issue of extreme importance to our country. It is not only about securing crude supply, though, but also about managing price risk through the securing of bilateral agreements with oil- producing countries.
In that regard, can you confirm that we didn't in fact secure this year's bilateral agreement with Ghana by the cut-off date, which could lead to us having to pay more for that amount of crude oil on the open market? If so, how would we avoid this situation occurring again in the future?
In addition, why is it that a large percentage of our strategic fuel stock is, in fact, Basra crude oil, which is incompatible with our refinery requirements? Its price has also recently dropped, representing a significant loss to our country. What will therefore be done to remedy this particular situation?
Hon Greyling, as we speak, over 60% of our fuel is sourced from Saudi Arabia and Iran. As you know, we have difficulties with Iran. You source crude oil according to the configuration of the refineries that you have. Basra oil is more suited to the refineries in our country at the moment.
We have to continue that work of diversifying. Also, there are plans in the pipeline to construct a new refinery so that we can also treat much heavier oil than Basra oil. Basra oil is the best because it also enables the production of jet fuel very easily. I don't think we have more room to manoeuvre there, because we depend on the quality of the crude oil that we source and Basra oil seems to be the lightest of them all. [Applause.]
Hon Speaker, hon Deputy President, as you would remember, during apartheid there was investment to establish the Sasol we have today. Is it not about time that the government seeks to invest in similar initiatives to lessen the challenges that we face? In particular, I refer to earth gas in fine sand, which seems to be in abundance in South Africa. I thank you.
Hon Ngonyama, yes, indeed, Sasol still has the Public Investment Corporation as one of its major shareholders. But as you know, it also plays in the international space and it is now expanding to North America. They are making a huge investment there and we hope that they will continue to contribute to the Treasury through taxes and dividends.
Scientists tell us that we should follow the American example of extracting shale gas and that it would be a game changer in terms of our economy. Environmentalists who are concerned about the pristine condition of the Karoo are telling us that we may be inviting the wrath of the gods and cosmos if we did that. These are ongoing debates.
The Department of Mineral Resources is the lead Ministry in terms of examining the prospects of harvesting shale gas economically. We are told that it would indeed impact very positively on our economy and make energy cheaper and more affordable.
Speaker, I just want to ask why we don't improve our refineries if we wanted to cut down. The most expensive thing here in South Africa is petrol. Wherever you go, it takes petrol. Petrol impacts on everything - bread or anything else. If we increase the petrol price tomorrow, you must know that everything will go up in price. Why don't we improve our refineries and make sure that we invest more in Sasol to make sure that they improve their refineries? Thank you.
I think this is not only dependent on the improvement of refineries but also, and equally so, it is dependent on the strength of our economy. If we strengthen our economy enough to get to a point where the rand strengthens - say, equal to the dollar - these things would be much easier and affordable. It would not be that costly for petrol consumers in South Africa.
Of course, there are others in the economy who would argue that a strong rand is not good for our economy. It depends on whether you are an exporter or an importer. We are an importer of liquid fuel and we are caught up in that bind, but we have got to do everything in our power to try to keep the price of petrol as affordable as possible by a number of interventions, including through PetroSA.
If it owns blocks of petrol and we have our own refineries, it may be possible to stabilise the price of petrol. At the moment, as I said, in the main the biggest push behind the petrol price is the strength of the rand. The rand has to be strong, and the same with the economy. We need to try to strengthen the economy and therefore the rand.
Progress made in relation to sanctioning of Ministers who violate Executive Ethics Code
11. Mrs J D Kilian (Cope) asked the Deputy President: (1) Whether, with reference to the President's letter to Parliament dated 26 August 2010 relating to sanctioning of Ministers who violate the Executive Ethics Code (details furnished), Cabinet has received any progress reports on the implementation of the Public Protector's recommendations; if not, what is the position in this regard; if so,
(2) whether Cabinet has established a deadline for approving the final report on the matter; if not, why not; if so, what are the relevant details? NO2434E
Hon Speaker and hon members, after the President's letter of 26 August 2010, Cabinet further discussed the Public Protector's recommendations at its meeting on 24 November 2010.
The Cabinet decided at its meeting on 24 November 2010 that the guidelines in the Executive Members' Ethics Act, Act 82 of 1998, and the Executive Members' Ethics Code be subjected to an ongoing review, with the aim of simplifying its prescripts and application.
At its meeting on 20 April 2011, Cabinet approved that an Executive Members' Ethics Amendment Bill should be published for public comment. The Bill and the invitation to comment were published in the Government Gazette, No 34276 of 6 May 2011, as well as on the website of the Department of Justice and Constitutional Development.
After the process of consultation, a new draft of the Executive Members' Ethics Amendment Bill was submitted to Cabinet by the Minister of Justice and Constitutional Development at its meeting on 12 October 2011. In this instance Cabinet, after intensive discussions, referred the matter back to the Governance and Administration cluster committees for further consideration. The matter, which goes to the core of the doctrine of the separation of powers, has been further canvassed with various stakeholders through the executive arm of the state.
After recent discussions between the Presidency and the Ministry of Justice and Constitutional Development, agreement was reached on an amended draft of the Executive Members' Ethics Code to be brought to Cabinet during the course of September this year. Once Cabinet has sufficiently applied its collective mind to the draft amendments, a refined Executive Members' Ethics Code will be submitted to Parliament for consideration.
Speaker, I believe that the Deputy President will forgive us if we on this side of the House believe that government is not serious about rooting out corruption, particularly corruption in the executive, and that they are ignoring key findings and recommendations by the Public Protector to ensure accountability and clean administration by the executive.
Yesterday this Parliament gave a former Minister a slap on the wrist for a very serious breach of the Executive Members' Ethics Code. It could do no more, because at this stage the Executive Members' Ethics Act lacks the teeth to do more. It does not have any further consequences for Ministers who have been found to be in breach of the ethics code.
Therefore, the question arises: What is this government going to do? Can we ask the Deputy President whether he, as head of government business, will undertake, in this House today, to see to it that amendments to the Executive Members' Ethics Act will be tabled and processed in Parliament before the 2014 elections so as to give it real teeth and to make sure that there are consequences for breaches? If not, why not? [Time expired.]
Thank you very much, hon Killian. As I stated, the refined code is to be submitted and enriched by Cabinet during its sitting in the month of September, which is next month. Following that process, it will then be submitted to Parliament for consideration. So, I am talking here about a very tight timeline, because Cabinet expects to enrich the product that will be submitted to or tabled to Cabinet next month.
Mhlalingaphambili, mkhuluwa, ngexesha esasizithathela umbuso ngenkani, mandulo phaya kooMatanzima nooSigcawu, into esayibonayo nesayibukelayo yeyokuba eminye imigaqo yezopolitiko yiyo ebangela ukuba abanye aBaphathiswa beKhabhinethi babesengxakini, njengalo ebelila apha izolo.
Ndicebisa ngolu hlobo ke ... (Translation of isiXhosa paragraph follows.)
[Mr B H HOLOMISA: Chairperson, my brother, back in the day when we were forcefully reclaiming the government from the former Presidents of Transkei, Mr K D Matanzima and Ms S Sigcawu, what we noticed and experienced was that some political guidelines were actually the reason why some of the Cabinet Ministers find themselves in trouble, like the one who was crying here yesterday.
My advice is as follows.]
We need to restore the powers of the accounting officers - that is the directors-general - and those of the political heads because ...
... zidlala indima yokongamela ukuze kupheliswe into yokuba inkampani isuke iye kwi-ofisi yoMphathiswa igaye inkxaso yoMphathiswa zize ezinye ezifake iziniki-maxabiso zinikwe amanqaku asezantsi, njengale ngxelo ndandiyithe thaca kuNxamalala kunye nani ngoDina Pule owanika umyalelo kwelaa sebe. Mayipheliswe into yokuba uMphathiswa ibe nguye oxelela abalawuli-jikelele nabalawuli abaziintloko naye wonke omnye umntu kwisebe ukuba mazinikwe bani na iziniki-maxabiso. Ngolo hlobo siya kuphuma kule ngxaki. Akukho mfuneko yokuba kwenziwe umthetho-sihlomelo. Makukhutshwe umyalelo oya kuBaphathiswa beKhabhinethi bonke wokuba ingabi ngabo abathatha izigqibo zokuba yeyiphi inkampani emayifumane isiniki-maxabiso. Ngolo hlobo, awusayi kuphinde ubone uMphathiswa osengxakini.
USEKELA MONGAMELI: Hayi, siyalibulela eli cebo silinikwa nguNjengele, enyanisweni. (Translation of isiXhosa paragraphs follows.)
[... they are responsible for the oversight, which will enable us to do away with the tendency of a company just approaching the Minister to support their tender bid and thereby getting first preference over others, as stated in the report that I tabled to the President and the members about hon Dina Pule who gave an instruction for that in her department. The conduct where a Minister is the one who tells the director-general and directors and others involved in the department as to who must be awarded a tender must come to an end. In so doing, we would not have this problem. There is no reason for an amendment Bill. A directive must be sent to all the Cabinet Ministers that they must not interfere with the process of choosing the company which is going to be awarded a tender. By so doing, there would be no Minister who will find himself/herself in trouble.]
No, indeed, we thank the General for this advice.]
Accounting officers are protected against unlawful instructions or directives and ...
... uninzi lwawo xa luthandabuza ukuba lo myalelo awukho semthethweni ayamxelela uMphathiswa njengentloko yezopolitiko ukuba ayisayi kulunga loo nto. Ngokuchubekileyo aye amcele uMphathiswa ukuba awubhale phantsi loo myalelo ingabi yinto ethethwa ngomlomo ukuze kubekho into ebhalwe phantsi neza kugcinwa ukuze inike ubungqina. Kusetyenzwa ngolo hlobo, mkhuluwa wam. Enkosi. (Translation of isiXhosa paragraph follows.)
[... a lot of them, when in doubt about the legitimacy of this instruction, inform the Minister as the political head that this is not going to materialise. They ask the Minister, in a more professional manner, to write the said instruction down so that it can be recorded and archived as proof instead of having it only verbally. That is the way of doing things, my brother. Thank you.]
Hon member, you might find that the microphone works better when it is on. [Laughter.]
Sihlalo ohloniphekile, kuSekela Mongameli, inkinga yabantu abaphethe amandla, abadlala ngawo, umdlavuza ohlasele zonke izindlela zokubusa emhlabeni. Yingakho njengamanje sikhuluma nje uNdunankulu waseNtaliyane u-Berlusconi utholakale enecala enkantolo; kusasa ubaba uBo Xilai owayeyimeya nonobhala wenhlangano yezepolitiki e-Chongqing naye uya enkantolo ngenxa yendaba yokuthi weqa imingcele yokuphatha kwakhe; kanjalo nalaphaya eKenya izakhamizi zalwa zamasha, zilwela ukuthi abaphathi noma abamele umphakathi baziholela amaholo kakhulu futhi banemihlomulo eminingi kakhulu.
Thina siyathokozo kakhulu lapha eNingizimu Afrika ukuthi sinabo-Chapter 9 institutions lapho uMvikeli woMphakathi ekwazi ukukhuluma nabaphathi enze neziphakamiso uma izinto zingahambi kahle. Siyathokoza ukuthi umbuso we-ANC uyazithobela zonke iziphakamiso ezivela kuma-Chapter 9 institutions. Yingakho njengoba sikhuluma nje sibona wona umbuso uzoshintsha i-Executive Members Code of Ethics kodwa into engizwisa ubuhlungu ukuthi amaLungu aleli Phalamende akhomba ukuthi abaphathi ukuthi ... [Kwaphela isikhathi.] [Ubuwelewele.] (Translation of isiZulu paragraphs follows.)
[Mr B A RADEBE: Hon Chairperson, Deputy President, the problem with the people in power, those who abuse it, is a common problem in all management areas in the world. That is why, as we speak, Premier Berlusconi in Italy has been found guilty by a court of law; tomorrow Mr Bo Xilai, the former mayor and secretary to the political party at Chongqing is also going to appear before a court for overstepping boundaries whilst he was in power; and in Kenya the community fought and marched against high salaries and the many benefits given to administrators and public representatives.
We are very glad that here, in South Africa, we have Chapter 9 institutions in respect of which the Public Protector is able to speak to the leaders and to make recommendations when things are not going well. We are glad that the ANC government adheres to the recommendations made by these Chapter 9 institutions. That is why, as we speak, we see the state reviewing the Executive Members' Code of Ethics, but what worries me is that the members of this Parliament says that leaders...[Time expired.] [Interjections.]]
Order! Hon members, order!
Hayi, ndivumelana nalo ilungu elihloniphekileyo. [No, I do agree with the hon member.]
Hon Deputy President, in your response you indicated a process in which Cabinet has sent this back more than once. Therefore, the process is going back and forth. The question is: How much confidence can we have in the executive when it is being both player and referee in a matter which, in fact, is of consequence to their actions? The question is: Have you considered speeding up the process to defer this to an independent body so that we can satisfy ourselves that the system of checks and balances is not compromised and that the executive is not both a player and a referee in a matter that concerns itself?
Yes, indeed, that is why the right product will be submitted to Parliament, because the executive cannot adopt the code of ethics. It will contribute to it and enrich it. Thereafter, it will be submitted to Parliament for consideration and adoption.
South Africa's current relations with Egypt
12. Mr H T Magama (ANC) asked the Deputy President:
1) What relations does South Africa have with Egypt at the moment; 2) is the Government, (a) on its own and/or (b) through the African Union, involved in helping Egypt return to normality; if so, how, in each case; if not, in each case,
(3) does the Government intend to play a role in this regard? NO2440E
Hon Speaker, hon members, South Africa re-established diplomatic relations with Egypt in 1990, and both countries are important members of the African Union. On 4 July 2013, a day after the removal of President Morsi, our Department of International Relations and Co-operation called on the Egyptian Ambassador to express South Africa's concern at the unconstitutional removal of its elected President.
South Africa, consistent with the Constitutive Act of the African Union and its instruments, opposes all forms of unconstitutional change of government. South Africa continues to be guided by the AU Peace and Security Council and the AU High-Level Panel for Egypt.
We are informed that the AU remains engaged with all parties to the conflict in Egypt to find a sustainable resolution to the present political crisis in that country. The Minister of International Relations and Co- operation has met with the Envoy of the Interim President, Ambassador Ibrahim Ali Hassan, on 24 July 2013. The Minister informed Ambassador Hassan that South Africa has not and will not depart from its support for the legitimate aspirationS of the Egyptian people. I thank you for your attention.
Speaker, we want to acknowledge the principled position South Africa and the AU took on the matter of the unconstitutional change of government. We further want to commend the AU and our own country for their swift action in leading the international community on this matter.
However, we want to express our concern on the matter of the more than 900 people who have died in violent clashes in Egypt. They were mostly killed by their own government and, of course, there was the resultant destruction of property and churches, and so on. We use this opportunity to call on the South African government, and through it on the AU, to continue to be seized with the matter of Egypt and to help find a solution for Egypt to these lasting problems and for its return to democracy.
Hon Speaker, I think there is a resonance between the sentiments expressed here by hon members and the position of the government.
Hon Speaker, hon Deputy President, the ACDP agrees with the stance of the AU not to support military coup d'etats on the continent nor the military governments set up as a result, as seen in Egypt. Yes, the ACDP also joins the voices of reason throughout the world and condemns the killing of some 900 civilians in the military take-over in Egypt. In the same vein, Deputy President, the ACDP condemns the violence against Christians in Egypt, allegedly at the hands of the members of the Muslim Brotherhood, who are said to have killed innocent Christians and destroyed and burned down churches and Christian businesses.
The question to the Deputy President is what intervention the South African government has made or proposed, diplomatically, to halt the killing of citizens, both Muslim and Christian, and to prevent the destruction of property, whether they belong to Christians or Muslims, in Egypt?
Hon Speaker, as South Africa we are working through the AU High-Level Panel, which has been mandated by the AU to engage with all affected sectors of the Egyptian population in trying to bring about a de-escalation of tensions and bringing about peace in Egypt.
Hon Speaker, hon Deputy President, I just want to be clear in my mind: Are we explicitly saying that the government of South Africa is not recognising the current military regime in Egypt? I just want to be very clear on that.
Our Constitution is consistent with that of the AU, which does not recognise the military regime. However, as I indicated, the AU High-level Panel has to engage with the military regime because it currently constitutes the state.
Speaker, in light of the Deputy President's response that South Africa does not recognise the current Egyptian military regime, why, then, do we have the Egyptian Embassy in this country if we do not recognise that current regime?
Well, as I said, the Minister was engaging the Special Envoy of the Interim President of Egypt for the exchange of notes and also to communicate to them the stance and position of our government. Once a coup d'etat happens in any country, it takes a while, because the situation will be very much in flux in that country. And it will take a while for those relations to be severed completely. So, the building and the staff will still be there. We also still have our presence in Egypt - our embassy is still there.
I thank the hon Deputy President. Just for the record, only four supplementary questions are allowed and that includes the person who asked the original question. We have done just that. That concludes questions to the Deputy President. [Applause.]