Media release

Statement on Cabinet meeting of 30 May 2001

30 May 2001

30 May 2001

Cabinet today noted the findings of the report of the consultants on the evaluation of the performance of New Zealand Post International Limited, the strategic management partner in the SA Post Office (SAPO) Limited. It also noted the legal opinion provided to the Board of SA Post Office regarding the possible termination of the strategic management contract, because of problems of non-compliance with the agreement between the two entities.

Cabinet agreed that the Minister of Communications should be authorised to approve the recommendation of SAPO Board to initiate a legal process for the termination of the strategic management contract with New Zealand Post International. Further, an investigation will be carried out into reasons for the non-compliance in accordance with the stipulations of the agreement, and into compensation for any financial losses incurred.

It was also agreed that urgent measures would need to be taken to ensure the financial sustainability of SA Post Office.

Cabinet received and noted the terms of reference of a Task Team to review progress in the implementation of the National Qualifications Framework (NQF). It noted the appointment of Prof J Reddy as chairperson of the Task Team, which would include international advisors.

The meeting approved a Shareholder Compact concept as the best vehicle for management of Government shareholding and interests in all state-owned enterprises. Such compacts would include matters such as dividend policy, tax, capital expenditure programmes and risk management issues. In this regard, Cabinet approved specific Shareholder Compacts for Eskom, Denel and Transnet.

Cabinet approved the following Bills for submission to Parliament:

  • Postal Services Amendment Bill which, among others, allows SAPO to provide for insurance of mail and postal articles;
  • Constitution of the Republic of SA Second Amendment Bill (approved in principle), dealing with the re-definition of the position of Chief Justice and the position of the Head of the Supreme Court of Appeal;
  • Agricultural Debt Management Bill, which rationalises and consolidates different pieces of legislation dealing with agricultural debt;
  • Animal Health Bill to bring earlier legislation in line with the Constitution;
  • Animal Identification Bill providing for a uniform identification system for most farm animals;
  • Veterinary and Para-veterinary Professions Amendment Bill which, inter alia, provides for the setting up of a SA Veterinary Council; and
  • KwaZulu Cane Growers Association Act Repeal Bill, which repeals the relevant Act to ensure uniform industry regulations.

The meeting also approved, in principle, the Education White Paper 6, dealing with special needs education, and underlining the translation into practice of human rights obligations and an inclusive education and training system.

Cabinet reviewed the Imbizo programme of interactive governance and received a report particularly on the visit by the President to the Northern Province. In addition to following up on issues that arose during the visit, Ministers would ensure that this style of governance becomes an integral part of their work.

The meeting noted that the International Conference Commemorating the 50th Anniversary of the 1951 Geneva Refuge Convention would take place in South Africa on 12 and 13 July 2001.

The meeting noted with concern the wide media coverage given to an in loco inspection of a crime scene by a prominent Judge in the Western Cape, prior to the inspection taking place. Given the security implications of such specific instances, it was agreed that measures would need to be taken to avoid a recurrence.

Cabinet noted progress in operationalising the co-ordinated Industrial Strategy for Petroleum, Gas and Petrochemical Sectors. Cabinet endorsed the creation of PetroSA through the merger of Mossgas, Soekor and some assets managed by the Strategic Fuel Fund..

Joel Netshitenzhe
Cell: 082 900 0083

Issued by: Government Communications (GCIS)


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