Question 9: Mr B Skosana (IFP) to ask the Deputy President:
1. With reference to the government's call for the transformation of the Bretton Woods Institutions, what specific institutions were referred to?
2. What specific transformation is required of these institutions?
3. What is envisaged to be the financial and economic impact of such transformation on the poor developing nations of the world?
4. Whether the government is required to reciprocate the transformation of these institutions by simultaneously transforming its current economic system; if not, why not; if so, what are the relevant details?
Reply:
1. Honourable Skosana,
The call for transformation refers directly to the World Bank Group and the International Monetary Fund which were established as specialised agencies of the United Nations in 1944.
2. The reforms that South Africa is calling for relates mainly to the following areas:
Review of the quota shares:
This call is aimed at realigning the quota shares held by countries to reflect current global realities. The realignment would result in countries with higher gross domestic products (GDPs) having more shares, thus changing their relative weight in the institutions.
Improving the governance systems to enhance the voice of developing countries
The aim in this regard is to increase representation of developing countries in the Boards, and increase diversity at management and staff levels.
3. The transformation we are calling for is likely to improve the financial and economic conditions of developing countries. Already, some reforms were agreed to at the Leaders Summit in Pittsburgh in September 2009 regarding the quota shifts of five percent at the International Monetary Fund (IMF) and three percent at the World Bank. A quota shift to developing countries gives us as a group more voting power and additional resources to draw from, as each countrys voting power and access to financing is determined by its quota share.
We have also secured agreement on increased representation in decision-making bodies such as the IMF's International Monetary and Financial Committee and the World Bank's Development Committee. This gives developing countries an opportunity to exercise greater influence on global economic, financial and development governance.
4. No member country of the World Bank or the IMF, including South Africa, is required to change its economic policies and systems as a result of transformation at these institutions. The planned reforms will impact on South Africa's quota shares, which are expected to be realigned accordingly as under-represented countries get more shares. South Africa will, however, have an increased voice as reforms are implemented.
I thank you.
Question 10: Mrs P de Lille (ID) to ask the Deputy President:
Whether you attended a certain a meeting (details furnished) that was called by the President to which the chief executive officer of a certain company (details furnished) was invited; if so, (a) what were the reasons for the meeting and (b) what was outcome of the meeting?
Reply
The Honourable Member should be aware that information regarding whether the Deputy President held a meeting with a person and if he did, what was discussed at the meeting is not usually provided in answers to Parliamentary Questions. This is done in order to ensure the confidentiality of the meetings that the Deputy President has.
However, notwithstanding this, I would like to inform this House that I have already instructed my legal representatives to demand a retraction from the Financial Mail as the allegations contained in their article are devoid of any truth. I was unaware of the ITWeb article that contains similar allegations until this question was tabled and I have now instructed my legal representatives to follow the same course of action in this regard.
I thank you.
Question 11: Mr Fransman (ANC) to ask the Deputy President:
Whether the government has any plans to collaborate with civil society to instil patriotism, nation-building and a sense of respect for the unsung heroes who contributed in liberating South Africa; if not, why not; what plans?
Reply
Honourable Member, one of the ways in which government is endeavouring to instil patriotism, nation-building and a sense of respect for the unsung heroes and heroines who contributed in liberating South Africa is through the National Legacy Projects of the Department of Arts and Culture. These projects specifically support the development of new commemorative structures in the form of museums and monuments such as the Freedom Park Museum that consists of a memorial, interactive museum and a garden of remembrance.
The gardens of remembrance coherently narrate the trajectory of our humanity, survival and strive for freedom and dignity. It reminds us of our struggle for land and resources. It reminds us of how these struggles have shaped our economic, political, socio-cultural and historical landscape as a nation.
The Freedom Park memorial facilitates a communal process of commemorating the pain and celebrating the victories of the past. The Wall of Names that accommodates 120 000 names, currently has 75 000 names of fallen heroes and heroines inscribed on it. The Eternal Flame, comprises a circular wall within which is nestled a flame surrounded by water. This flame symbolises eternity, and therefore the monument pays tribute to the eternal remembrance of the heroes, both male and female who perished without their names being recorded.
By preserving the memory of the fallen victims of previous wars, slavery, colonialism, racism and by honouring the heroes and heroines of the apartheid struggle we are essentially strengthening our unity as a nation. We are acknowledging our heritage, and this Park is a reflection of the sacrificial achievements of our nation thus ensuring that our children never forget those who gave their lives so that we could have our rights, freedom and social and cultural diversity.
Civil society, comprising ordinary South Africans, political organisations, civil society groups and community organisations played a role in the memorial in particular in identifying the names of the fallen heroes and heroines.
However, more can be done particularly at a local level, provincial and municipal in commemorating our unsung heroes and heroines. It is important however that we use this process to build unity and to commemorate a shared history of which we are all a part.
I thank you.
Question 12
The Leader of the Official Opposition (DA) to ask the Deputy President:
Whether, in light of his statement (details furnished) that it does not make economic or ethical sense for the Government to be spendthrift with its financial management in the face of the recession, members of the Cabinet who have spent exorbitant amounts of money on purchasing vehicles will be requested to return these vehicles; if not, why not; if so, what are the relevant details?
Reply
I stand by my statement that at a time of economic crisis, when finances are under pressure, we all need to be careful about our expenses. Major commitments of government have to be considered very carefully in the light of current economic conditions and the condition of the poor and the unemployed.
To my knowledge, the vehicles purchased by members of Cabinet were all undertaken within the regulations set by the Ministerial Handbook which sets out the benefits and privileges applicable to members of Cabinet, Provincial Executive Councils and Presiding Officers of Parliament and Provincial Legislatures. While some may hold the view that certain of the purchases were inappropriate in current circumstances, these purchases were in fact planned and budgeted for.
The purchases were not unethical in that they were not illegal or underhand. For these reasons, we do not intend to request the return of the vehicles. In any event as the Honourable Leader of the Opposition is aware, a used car has far less resale value than a new car, so returning the cars and buying cheaper ones would result in significant losses. While it may sound good it is not particularly practical.
On 29 July this year, Cabinet agreed that a task team be constituted to prepare recommendations on developing measures for fiscal prudence with specific reference to curbing wasteful expenditure, establishing cost cutting measures and reviewing procurement practices. Furthermore, that consideration is given to the possible adjustment of the existing guidelines for purchasing official vehicles for Political Office Bearers as reflected in the Ministerial Handbook. This task team will report back to Cabinet in due course.
I thank you.
Issued by: The Presidency
21 October 2009
