Statement on Cabinet meeting 8 August

8 August 2007

Cabinet held its ordinary meeting in Pretoria this morning, 8 August
2007.

I'm pleased to announce that all our post-Cabinet media briefings are now
available on audio streaming and can be accessed from our website.

Cabinet received a report on the Soweto Monorail Project which was announced
by the Gauteng Provincial Government on 16 May 2007. The meeting noted that
that there were major shortcomings in the process leading to the announcement
of the project. These included lack of consultation with key stakeholders such
as the Minister of Transport, the City of Johannesburg; the taxi industry and
the South African Rail and Commuter Corporation and the fact that no thorough
financial viability study was conducted.

The meeting reiterated that all commuter rail proposals from all spheres of
government, including private sector initiatives, have to be subjected to the
Multi Criteria Matrix Appraisal Framework, as contained in the Consolidated
Passenger Rail Plan which was approved by Cabinet in 2006, and that Ministerial
approval must be obtained prior to finalisation and announcements. Because of
these considerations, Cabinet decided that the Soweto Monorail project will not
proceed at this stage. The Gauteng provincial government has been advised
accordingly.

Cabinet approved the settlement reached with the Richtersveld Community
regarding the land claim against Alexkor and the State for land situated in
Alexander Bay. The Deed of Settlement, which concludes a protracted court case
in which billions of Rands were claimed from the state, was signed in April
2007. This settlement provides for restitution through the transfer of land and
assets from Alexkor to the community and for the compensation of Alexkor by the
State.

The settlement includes, among other things: the transfer of land to the
community by the state and Alexkor; restoration of mineral rights to the
community; establishment of a Pooling Sharing Joint Venture (PSJV), which will
be a joint mining venture between Alexkor and community. In this regard, the
state will capitalise Alexkor to enable it to capitalise the PSJV.

Alexkor's agricultural and mari-cultural assets will be transferred to
provide the community with a basis for future development and wealth creation.
This groundbreaking agreement demonstrates the possibility for broad-based and
sustainable empowerment that exists in the process of land restitution and
community empowerment.

Cabinet noted the raging fires that have engulfed many parts of the country
over past few weeks. The affected provinces are Mpumalanga, KwaZulu-Natal, Free
State, Eastern Cape, Limpopo and Gauteng. These are the worst fires in the
history of our country, and have led to the loss of life and have caused
extensive damage to property, agricultural land and devastated many parts of
the Forestry industry. Although it is too early to quantify the exact damage
caused, the following can be noted:

* 26 deaths have been reported thus far
* over 50 000 hectares of commercial plantations (and a further 18 000 in
Swaziland) and over 200 000 hectares of grazing land have been extensively
damaged
* 4 sawmills and as yet to be determined number of houses and other buildings
have been destroyed
* thousands of jobs have been lost
* loss of foreign revenue
* loss of yet to be determined number of livestock and game species.

At the end of this briefing, the Minister of Water Affairs and Forestry will
convey Cabinet's message to the communities, the non-governmental organisations
(NGOs), civil servants, security forces, disaster management committees and
community leaders who have played a pivotal role during this difficult time.
She will also outline key messages that Cabinet wants to convey to the country
regarding the fires.

Cabinet noted the process by the National Prosecuting Authority to prosecute
members of the apartheid government. The meeting reiterated that this process
is in line with the Truth and Reconciliation Commission recommendation that all
outstanding cases should be investigated and that the law should take its
course. Any suggestion that the state is waging a witch-hunt against any
individual is rejected as baseless.

The meeting noted that the Ministry of Environmental Affairs and Tourism was
in the process of finalising a Tourism Growth Strategy for 2008-2010, which
will also address tourism potential for people with disabilities. The strategy
will be finalised in the coming weeks. Progress on the implementation and
continuous improvement of the revised Environmental Impact Assessment was
noted. Quarterly co-ordinating meetings will be held with provinces to monitor
implementation and address bottlenecks that may arise.

Cabinet approved the draft Nuclear Energy Policy and Strategy for the
Republic of South Africa. The policy deals with issues of security of energy
supply; climate change; greenhouse gas emissions; the need to diversify our
primary energy sources; and creates a framework for safe and secure utilisation
of nuclear energy. The policy will be published for public comment before
finalisation.

The meeting approved the draft Energy Security Master Plan, which elucidates
South Africa's energy security strategy and includes the Integrated Energy
Modelling and Planning Approach. The development of Petronet's New
Multi-Products Pipeline which will help alleviate capacity constraints in the
petroleum supply chain before the 2010 FIFA World Cup was also approved.

Cabinet approved the Harmonised Assessment Tool for Disability Grants and
Free Health Care, to determine eligibility for disability grants and free
health care. The tool will be implemented in phases to allow for the amendment
of relevant legislation and training of health and South African Social
Security Agency (SASSA) staff.

The meeting noted a research studies into the potential of a culture of
dependency on social grants. The studies found that there was no evidence
suggesting a culture of dependence on grants. Further work will be done by the
social cluster to link social grants with poverty alleviation initiatives,
economic activity and other second economy interventions.

The release of the International Monetary Fund's (IMF's) Article IV Report
on the state of the South African economy was noted with particular reference
to the optimism about prospects for growth, rising employment, improvement in
our fiscal position and the support expressed for our economic policies. The
decision by National Treasury not to proceed with the Windfall gains tax on
existing synthetic liquid fuel producers was endorsed.

The meeting noted the plans to celebrate Women's Day on 9 August. Cabinet
calls on South Africans to join hands in celebrating South African Women's Day
in recognition of the historic struggles and sacrifices of South African women,
which helped bring democracy, progress and equal opportunities for all. The
national celebrations in Kimberley and the various provincial celebrations are
part of the national effort to ensure that women continue to build a country
free from poverty and to consolidate the fight against gender-based violence.
These celebrations reaffirm the role of women in advancing our society towards
achieving a better life for all.

Cabinet noted progress made towards eradicating the bucket system by the end
of December 2007. An Action Plan to accelerate the implementation of the bucket
eradication programme was approved to meet the December deadline. The plan will
include closer monitoring by the Department of Water Affairs and Forestry and
the Department of Provincial and Local Government.

The next round of Ministerial briefings on the implementation of the
Programme of Action will take place during the week of the 27th August 2007.
Ministers and other senior government officials will also use that week to
promote the use of African languages by discussing the Programme of Action in
the different African languages radio stations.

The following Bills were also approved:

* South African National Water Resources Infrastructure Agency Limited Bill
(for tabling in Parliament)
* Prevention of and Treatment for Substance Abuse Bill. The Bill will be
published for public comment after further consultation between the departments
of health and social development.
* The Second-Hand Goods Bill for submission to Parliament
* The Housing Development Agency Bill for public comment.

The request from the Minister of Justice and Constitutional Development to
extend the deadline to finalise the repeal of the Black Administration Act of
1927 to 31 December 2008 was approved.

On behalf of all South Africans, Cabinet wishes to express its condolences
to the families and friends of the three students who met their tragic death in
India on 5 August 2007. These students were part of a Joint Initiative on
Priority Skills Acquisition (Jipsa) training programme at the Satyam IT
Academy.

The following appointments were approved:

* Ms X Sibeko as Director-General in the Department of Sports and
Recreation.
* The following were appointed as Deputy Director-General (DDG) in the
Presidency and will be seconded to the New Partnership for Africa's Development
(Nepad) Secretariat; Dr ET Maloka and Mr G Mgidlana.
* Members of the Central Energy Fund Board were also appointed (the list will
be published separately).
* The following were appointed new members of the Board of the Public
Investment Corporation to fill vacancies: General S Nyanda; Ms M Moses; Mr A
Rhoda and Dr D Matjila (Executive).
* The following were appointed to the Board of the Independent Development
Trust: Ms G Downing; Mr M Tom; Mr K Tiya; Ms T Mpulwana; S Chalklen; Ms P
Radebe; Ms T Nkamba-van Wyk; Ms Z Mdhladhla; Mr V Mthintso; K Moletsane; Mr F
Patel and Mr Z Ntsaluba (Department of Public Works)

Enquiries:
Themba Maseko
Government Spokesperson
Cell: 083 645 0810

Issued by: Government Communications (GCIS)
8 August 2007