Statement on Cabinet meeting - 25 October

26 October 2006

Cabinet met in Cape Town yesterday.

We are pleased to announce that Cabinet has approved the settlement reached
with the Richtersveld community regarding a land dispute between that community
and Alexkor Limited. This community, like many others, had suffered an
injustice when they were forcefully removed from their land to make way for
diamond mining. In terms of this settlement, the state will facilitate an
extraordinary reparation payment of R190 million to the community. The Minister
of Public Enterprises will sign the agreement with the community shortly, which
will include safeguards to ensure that the money is used in a way that meets
the long-term needs of the community.

The meeting was briefed about South Africa's election as a non-permanent
member of the United Nations (UN) Security Council. The government feels
greatly privileged and honoured by this election, accepts this great
responsibility with humility and gratitude, and commits itself to serving the
peoples of Africa, the South and the world at large.

In doing so, we will be guided by our commitment to multi-lateralism as the
best way to meeting the challenges of peace, security, global stability and
development. South Africa will work with the African Union and other regional
organisations in an effort to achieve peace and stability in the continent and
in all regions of the world. We will also continue to work with all members of
the United Nations General Assembly for the reform of the United Nations
system, including the expansion of the Security Council.

Cabinet approved the proposal to create six Regional Electricity
Distributors (REDs) which will be established as public entities under the
auspices of the Electricity Distribution Industry (EDI) Holdings (Ltd). These
entities will be accountable to the Ministry of Minerals and Energy. The next
steps will include the drafting of legislation and business plan for the
establishment of the REDs.

Cabinet received a report on preparations for the Presidential elections due
to take place in the Democratic Republic of Congo on Sunday, 29 October 2006.
South Africans are advised that your observers will again be part of an
international observer mission to help see that the elections are free and
fair. Our government would like to express its full support for the people of
the DRC and hope that they will, once again, turn out in large numbers to
exercise their democratic right to elect a leader of their choice.

The meeting was briefed about the Extraordinary SADC Heads of State Summit
which took place in Johannesburg at the beginning of the week. All the member
states committed themselves to doing all that is necessary to achieve the noble
goal of integrating our economies for the benefit of current and future
generations. The International Relations, Peace and Security (IRPS) cluster
will develop a communication campaign to inform South Africans about the
implications and benefits of this all important initiative.

Cabinet approved a Road Infrastructure Strategic Framework for South Africa.
This framework provides a basis for the upgrade of our road infrastructure,
including the identification of priority corridors, and articulates the roles
and responsibilities of the different spheres of government in the construction
and maintenance of our roads.

The meeting received a report on the FIFA Kick-off Workshop which took place
in Cape Town over the past couple of days, which was attended by the President,
Deputy President and by several Cabinet Ministers.

Cabinet would like to reassure all South Africans that preparations are not
only on track but are also at an advanced stage, and that South Africa will be
ready to host the first African FIFA World Cup, come rain or shine.

The budget allocation of R15 Billion for the 2010 FIFA World Cup effort, as
announced by the Minister Finance yesterday, must inspire all of us to focus
our attention on implementation, implementation, implementation. When the final
whistle is blown at the end of the 2010 World Cup Finals, South Africa will
never be the same again. We will have better roads, better sports fields,
better public transport, better security for all citizens, better soccer
players, and most importantly, a proud and united South Africa, because we
would have done it, together. A South Africa, in which all the soccer fans who
would have attended the World Cup, would want to come back as tourists to
experience our fauna and flora.

All South Africans must do their very best to make sure that we make every
African in the world and every citizen of the world, proud of this nation and
continent, for hosting what must and will be one of the most successful World
Cup finals ever. This is possible.

The meeting noted and supported the proposed Dispensing Fee structure for
Pharmacies as proposed by the Medicine Pricing Committee. The Ministry of
Health will communicate the relevant details in the next week.

Cabinet received a progress report on the initiative led by the Deputy
President to revive and strengthen the Partnership Against HIV/AIDS. A series
of meetings were held with a number of organisations, including the National
Association of People Living with Aids (NAPWA) and Treatment Action Campaign
(TAC), to discuss the challenges that the country faces in the fight against
the pandemic and other opportunistic diseases such tuberculosis (TB). Cabinet
welcomed the fact that significant progress was made in this regard as parties
agreed that the only way we can defeat the pandemic is through
co-operation.

Further, Cabinet resolved that in addition to dealing with the HIV/AIDS
pandemic, we must not lose sight of the other health challenges facing the
country such as TB and other opportunistic diseases. In this regard, the
Department of Health will engage with role-players to coordinate other efforts
to deal with the latest strain of drug-resistant TB and other opportunistic
diseases.

A South African National Aids Council (SANAC) workshop will be held on 31
October 2006 to discuss ways to make the body stronger, more effective and more
representative of all stakeholders.

Cabinet approved the composition of the InterMinisterial Committee (IMC) on
HIV/AIDS. Its members will be the Deputy President (Chairperson) and the
following Ministers: Health; Social Development; Agriculture and Land Affairs;
Education; Provincial and Local Government; The Presidency; Public Service and
Administration; Labour; Arts and Culture; Transport; Correctional Services;
Minerals and Energy; Foreign Affairs; and Public Works; and GCIS. The IMC will
be supported by a technical committee of Directors-General of the respective
departments.

Cabinet noted with deep concern, the incidents of violence in our schools
which have led to injury and death of learners. These incidents, coupled with
the violent crimes that are being committed by bloodthirsty criminals in our
streets, are totally unacceptable and highlight the need for a collective
effort by all South Africans to declare war on crime. The tragic killing of an
infant during an armed robbery in Johannesburg is a clear indication that these
criminals do not value life. The meeting expressed its condolences with
families who have lost their loved ones at the hands of these criminals.
However, the best tribute we can pay to those who have lost their lives, and
their loved ones, is to intensify the fight against crime. Our police services
are working with communities and schools to ensure that our schools become
safer.

Government is and will continue to take the fight to the criminals who must
be made to feel that crime does not pay.

Government accepts that fighting crime is the primary responsibility of the
Police Service and that all the ordinary citizens can do is to support the
police. Measures continue to be put in place to increase the capacity of the
police to fight crime. These measures include the strengthening of our crime
intelligence capabilities, increasing the number of police officers and
transforming the justice system. However, no police services or efforts will
succeed without the involvement of our communities and all sectors of our
society. The police cannot win this war alone. Participation in and
strengthening of Community Policing Forums (CPFs) must become second nature to
all of us. We take this opportunity to pay tribute to all those South Africans
who have participated in the CPFs for many years and continue to do so.

The meeting expressed its full support for the steps announced by the
Council of Education Ministers to address violence in our schools. These
measures include the encouragement of schools to set up Safety Committees,
increased security in schools, the convening of a National Consultative Forum
on school safety, and the formulation of guidelines on random drug testing
within constitutional parameters. Once again, school violence cannot be left to
the educators and the police alone. Parents and communities in general, must
work with our educators and school governing bodies to ensure that we attend
not just to the incidents of violence, but to the causes and circumstances that
lead our learners to resort to violence as a solution to resolve conflict.

Government welcomes the recent call by church leaders for social
mobilisation in the fight against violent crime.

Cabinet noted the reported attacks and killing of Somalis in some provinces.
These attacks have fuelled perceptions of xenophobia by our citizens.
Government condemns any attack on any person, including foreigners, on South
African soil, irrespective of reason or motive. Our freedom was built, among
other things, on the back of many South Africans living in exile in many
countries around the world where we were welcomed with open arms. This
government will not tolerate attacks on any citizens of the world. The meeting
noted that investigations were still on-going to establish other factors, other
than xenophobia, that could be contributing to these senseless attacks.

Cabinet was briefed on the accident at Tautona Mine. The meeting expressed
its concern at the increasing number of accidents in the industry, particularly
in the gold mining sector. Cabinet wishes to convey its condolences to the
families and friends who lost their loved ones in this latest incident.

The Minister of Minerals and Energy will engage with the industry to see
what further steps need to be taken to prevent the loss of life.

A report was given on the occupation of farmland in KwaZulu-Natal by a group
of individuals who are demanding integration into the SANDF. Cabinet expressed
serious concern about this development and noted that the Minister of Defence
will be meeting relevant parties to attend to this matter on an urgent
basis.

A report was given on preparations for the 16 Days of Activism for No
Violence against Women and Children. Women leaders from the Southern African
Development Community (SADC) region and beyond will be participating in the
launch in Limpopo on 25 November 2006. Government calls on all members of the
public to take part in the campaign and to help build the partnership to “Act
Against Abuse”. The long-term goal of this campaign is to change mindsets and
attitudes towards women and children, and to ensure that we treat all our women
and all our children with dignity, love and respect, every single day of the
year.

The following Bills were approved:

* Medical Schemes Amendment Bill approved for public comment
* The Municipal Fiscal Powers and Functions Bill for public comment and
submission to Parliament in 2007
* The South African Airways Bill for submission to Parliament. In 2004, Cabinet
approved the separation of the South African Airways (SAA) from Transnet to
become a separate state-owned enterprise. This bill will create the legal
instrument for the transfer of the entire shareholding of the Shareholding of
Transnet to Government.

Enquiries: Themba Maseko
Cell: 083 645 0810

Issued by: Government Communications (GCIS)
26 October 2006